Wednesday, October 29, 2008

Safest Place For Investing Money


What is the first place, to invest the money? This issue is problematic because there is no definitive answer. Everyone wants a safe place to invest money, but in reality no such organization. I'll explain.

First, what are the most frequent, as can invest? Before I am on safer places, money, we need a glimpse of the possibilities. Typically, the man suggested, the stock market, real estate, CDs, savings accounts, the mattress and first as places to invest money. But these options are they really safe?

I begin by the Exchange. The Russian stock market is one of the possibilities. Why the stock market is not the first place to invest money is that the market is nothing more than buying a piece of paper, which may be something natural food for their foreign exchange for shares. Whatever the pieces of paper that can be influenced by events, or the low resolution of their value. If a company in bankruptcy, all information technology deposit of shares worth anything. If you purchased "shares" of potatoes a hidden cache of billions of potatoes were discovered, the inventory would sky rocket and demand decreasing, which would devalue your "actions" clearly. And so on. Many risks are generally very small and can vary by market and investment. The point is that the market is probably not the first place to invest money because they suffer more risk that the value of your investment, because some of the potentially unforeseen situation.

I as if it were real estate? Properties happens, my personal favorite. The positive potential of real estate in relation to its risk is phenomenal. But the problem is whether or not the Real Estate First, invest money. No, of course, is not. Why? Real Estate is unpredictable and uncontrollable similar risks. It is possible to buy a house and then discover it was then on a toxic dump site and see your left to watch as the decline in property value on almost anything directly in front of your eyes. The property also could suffer irreparable harm fire or collapse after an earthquake. What happens if a drug dealer moves and turn your rent in a house methods? Each one of these scenarios could be zero from your investment faster than you can blink. Each of these simple uncontrollable Properties not make the first place to invest money.

So what about CD? Certificates of deposit are generally in the public as one of the safest places to invest the money. People think in general, CDs are safe because they are really like a loan to a bank. And because we, as a general rule, banks think very stable, loans money would be so good. But the truth is that banks are, just like businesses. Like companies, banks bankrupt and can not swallow them all the money they had in their possession. This means that if a bank was to hide elements while you buried your money in a CD, you can lose everything, even the return on investment of 3%. A good thing, on CD, though, is that you assure you. Insurance is on the CD is the first place to invest money. But there is still more to read.

Let us look on savings accounts to come. Savings accounts are like CDs, because in the background, as well as lending to a bank with a promise that you are not your account at below a certain level. But, again, acting for the Bank triggered, it has your money. The main reason can be considered a savings account is more secure because the money is more liquid.

Finally, we have to ensure that your money under the mattress. The problem is that you vulnerable to theft, fire or more. But the real problem here is inflation. Inflation slowly eats your savings. If inflation averaged 3% per year, the purchasing power of your money is 3% per year. This means that in 33 years, your money is worthless.

What does all this mean? There is no safer place to invest money. All you can invest in leads with it a threat. How risky is an investment is something you can measure you need. would be fair to your cash erosion at 3% per year each year, more risky than renting a financial institution to lend you? Is frightening natural disasters, risks for investments in real estate and watch your money continues to double every 5 years? These are questions you can not answer you need.

So what is the first place, to invest the money? This issue is something you have to respond. And yes, I ask you, what is the first place to invest money for YOU?

1 comment:

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