The three best ways to invest for my future includes the purchase of shares in different companies, saving in the money market and government retirement scheme, and establishing a business. Shares will be bought after a thorough investigation of the financial performance of the company. This will ensure that I invest in a company with a high chance of growth. The amount set for this investment will be divided among different companies from different industries. This will be one form of diversifying this investment to reduce risks when one industry is experiencing a financial crisis. Saving in the money market is selected as one form of investment since it is easy to liquidate this money. Money market investment also has a higher interest rate compared to bank saving. This will ensure that one can get money easily in case of a major life issue and that I enjoy high interest compared to bank saving.
Joining the retirement scheme will ensure that I guarantee to survive in my old age, despite changes that may happen in my other investment. Money invested in shares can be lost in case the company is unable to grow as anticipated. Establishing a business provides a better way to generate daily earnings, even in old age or after retirements. If employed, this will be a better way of generating extra income that I can use in other forms of investment, such as investing in real estate; rentals, among other permanent investments that are likely to bring passive income in the future. The main essence is to create investment portfolios that are likely too high gains and sustainable income in the future.
Most Confident Way to Invest in the Future
All forms of investment have an absolute magnitude of risk. However, there are some investments with bearable risks, though with little investment returns. These are forms of investments that I have more confidence since losing the principal amount is low. The investment that I feel most confident venturing into for my future is a government retirement scheme where the confidence is at 95% and money market savings where confidence is at 90%. The two forms of savings have minimal risks and hence high chances of saving the principle value or the initial investment. Many in the past have used the government retirement scheme and has been of great benefit to the majority in the country. Such investments are always insured and highly regulated. I have great confidence that money put in the government retirement scheme will be available upon maturity and will act as my primary income source in the future. Money saved in the money market is insured. This means in a situation where the money market company collapses. Savers will be able to get their principal investment, even in a situation where the interest is lost. This increases my confidence in money market investment than others.
Most Challenging Form of Investment
The most challenging form of investment among my three future investments scheme is a business. Unlike the other two that are passive investments, establishing a business will need personal input. This is the investment with the highest risk, and it will require that I have business management skills, to be able to grow the business to the point of generating profit. I will also need to develop means to manage the business to control risks and make it stand during severe external crises. Unlike other investments where I will only focus on looking at the final results, I will need to be involved in the means to attain satisfying final results in this investment. To overcome some of these challenges, I will need to establish my business in a field that I understand best. I will also need to do thorough research about the business establishment in my area of preferences. I may also need to hire employees that are well trained in business management and risk control in this particular field. Using professionals may reduce the risk of suffering losses and create better opportunities for taking advantage of opportunities when they arise. This will increase the chances of gaining from this investment in the future.
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