How to start an investment?

For some people starting an Investment is more complicated than rocket science, as they continue to be perturbed, by complex investment jargon and unscrupulous investment advisers and bankers.

Beginners in particular find the investments very confusing, having to choose from various options like Stock market, Bonds, Mutual funds, ETFs, IPOs, Commodities, Insurance, Saving Plans, Money back policies, and Alternative Investments…

How to Invest?

The Internet and the Media are making things more difficult for the beginners, literally drowning them with information, without the essential supply of oxygen, which in this case would be the unbiased ideas of practical application.

For a novice investor, investing can be very intimidating. Having said that I’ am not discouraging you, because everyone who is doing great with his investments now, was once struggling, everyone who is now a top investor, was once naive and perturbed.

Quoting Brian Tracy, one of my favorite success gurus; Quote “Everybody who is at the font of the buffet line of life started at the back of the line.

Now here is the question: How do you get to the front of the buffet line of life, where all the good stuff is waiting for you? The answer is simple. It consists of two key steps: First, get in line! Second, stay in line!

It is absolutely amazing the number of people who want to get to the front of the buffet line of life, who admire or envy the people who are already up there enjoying the best that life has to offer, but they don’t get up and get in line themselves. They don’t realize that life, like a buffet, is self-serve.”Unquote.

So the key learning is to take the first step, as the Nike slogan says ” Just do it”

How do I start?

The best thing you can do when you are starting to invest is is to develop a habit of disciplined saving and regular investment, instead of waiting for the right time, or brooding over for ever on the perfect investment strategy.

Your savings however small does not matter, what matters the most is the decision to save regularly and invest the savings.

If you are a beginner and you feel that you need a little help in setting up an investment, don’t wait just call me on +97155-7701792 or click here to arrange a meeting with me.

I am not saying here, that you should start an investment, completely oblivious or ignorant, to the facts and figures, but be careful and take an informed decision on your investment.

A regular savings plan usually called as a Systematic Investment Plan(SIP)from reputed companies like Zurich International Life, Generali, Metlife Alico, Friends Provident are the best options for both beginners and experts of the investment world.

Make time your best buddy

The longer your funds are invested, the bigger your investment grows into. The long term return on Mutual Funds, Stocks and Bonds, have always been positive, hence you don’t have to worry too much, on the inherent market risks.

Given a choice for Retirement savings, would you choose a 15 years investment plan or a 30 years investment plan?

Now let’s compare the following investment choices of Susan, Bill and Chris towards their Retirement;

Susan is 25 years old, and she invests $ 5,000 for 10 years towards her retirement and remains invested till her retirement age of 65 (Total Investment $ 50,000)

Bill is 35 years old and he invests $ 5,000 for 35 years till his retirement age of 65 (Total Investment $ 150,000)

Chris is 25 years old, and he invests $ 5,000 for 40 years till his retirement age of 65 (Total investment $ 200,000)

Susan in-spite of investing the least, has largely benefited by the Power of Compounding, retiring with a bigger retirement kitty than Bill, who although invested a higher amount had to retire with lesser funds than Susan.

Chris on the other hand, has the biggest retirement saving, as he started early, and continued to save and invest throughout his earning life, enabling him to afford a better retirement than Susan and Bill.

The difference  between Susan and Bill is a staggering $189,000, inspite of Susan, having invested $ 100,000 less than Bill.  By starting 10 years earlier than Bill, Susan gave her investment more time to grow, more compounding cycles. . The lesson learnt is “Starting late on investing is very costly”

Getting started is what is important. If you sit around forever waiting to perfect your investment style, you’ll never get started and miss out on the power of compounding over the years.

Click The Power of Compounding – Learn how it multiplies your Money  to view an amazing video.

THE LONGER YOU DELAY THE LESS LIKELY YOU WILL START

Each year that you delay in getting your investment started, puts you behind your retirement run rate. As in One-day Cricket if you are chasing a steep target, you cannot wait for the slog overs to start scoring, you have to keep the score board ticking with the ones and twos, and an occasional boundary. Every year which goes past without investing, will put more pressure on you and at some point you are more likely to give up the chase.

Even if you are playing from behind, getting started to invest at any time is a wise decision.

So what are you waiting for, call me now on +97155-7701792 or click here to arrange a meeting with me, to get your investment started….

Click  Retirement Planning in UAE – Infographic to view useful statistics on Retirement Planning in UAE

5 Comments

  1. Very useful information. Thanks for sharing.

    Reply
    • Amrita,

      Many thanks for stopping by blog and leaving a comment.

      Visited your blog earlier this week, great thoughts, keep up the good work.

      Do come back for more useful information on Financial Planning, and share the articles with your network.

      Thanks again and best regards,

      Damodhar

      Reply
  2. Hi
    The article mentions about products such as Zurich, Generali, etc. But as far as I know these are for very long term and liquidity is not there. May be liquidable but will need to pay huge charges.
    Do you know of any other products providing return 5 to 10% and liquidable.

    Reply
    • Jijoy,

      Many thanks for dropping by my blog, and for your interest in knowing about investments which offer, a stable return and liquidity.

      There are many options available, like Vision, a regular savings plan with Generali. If you choose a 5 years premium payment term, the lock in period is only 3.6 months. All premiums paid in excess of 3.60 months, are available to be withdrawn any time, of the plan.

      You can also look a a lumpsum investments, which offers liquidity upto 90 % of your investment, at any point of time.

      While these products offer liquidity, it is recommended that you continue these plans, to the original term selected in-order to avail benefits planned for, in line with your goals.

      If you are a resident of UAE, we can meet to discuss further on this, please call me on +97155-7701792, or write to me on damodhar,mata@nexusadvice.com.

      If you are not a resident of UAE, we can interact via email or skype.

      Trust I have answered your question, to your satisfaction.

      best regards,

      Damodhar

      Reply
  3. Hey I know this is off topic but I was wondering if you knew
    of any widgets I could add to my blog that automatically tweet my newest twitter updates.
    I’ve been looking for a plug-in like this for quite some time and was hoping maybe you would have some experience with something like this.

    Please let me know if you run into anything. I truly enjoy reading your blog and I look forward to your new updates.

    Reply

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