What are the strategies for financial planning

Simple strategies for your financial planning


04.06.20 17:30
fondscheck.de

Bad Marienberg (www.fondscheck.de) - When you think of financial planning, you usually think of the bank advisor. However, is this the only and right way at all? The topic of financial planning may look complicated at first glance, but at second glance it is quite possible to master it without the bank advisor. So how do you take your financial planning into your own hands in order to invest money as profitably as possible? In the following, we would like to provide you with a few simple strategies that will enable you to get started quickly with this topic.

What investments are available to me?


They still exist, the classic forms of investment: savings accounts, overnight deposits or fixed-term deposits. In times of low interest rates, however, my money is slowly being eaten up by inflation and negative interest rates with this type of investment. Better alternatives are securities such as bonds (fixed-income bonds) or shares (listed company shares), funds (e.g. equity funds or real estate funds), but also tangible assets such as gold or real estate. There are also new ways of investing money, e.g. crowd investing in real estate or companies, robo advisors or social trading. It is generally worthwhile to think outside the box when it comes to the individual products. Online casinos, for example, are becoming increasingly popular among the population. Their products have been getting better and more diverse for years and are therefore enjoying great popularity with an ever-growing customer base. Just have a look at Austriacasino.com. You will quickly understand that one of the companies managed there may offer a higher return than a Lufthansa or VW share, but is still an equally safe form of investment. The list of investments could certainly be deepened, but that would make the whole thing more complicated than it actually is. In order to find the best type of investment for you personally and a strategy tailored to your personal circumstances, you should think about a few basic things.

The most important investment principles


First of all, you need to set your goal. Would you like to invest in your retirement provision, in a special purchase, in your studies or just to build up your wealth? Without a clearly defined goal, they cannot set a clearly defined path. Once you have defined your goal, you should think about your investment horizon. Sometimes this is already predetermined by your goal, but sometimes not. When answering the question about the investment horizon, you need to be aware that three key factors determine any investment: security, liquidity and return. The safer and more liquid the investment, the less return it generates (e.g. overnight money). Conversely, a high return is associated with compromises in terms of liquidity (e.g. fixed-term deposits) or security (e.g. shares). They then have to determine an amount that they do not need for living and can therefore invest. The amount is crucial when looking for the right investment product. Next, don't underestimate one important factor: costs and fees. In general, the following applies: the longer the investment, the cheaper it will be. Then they need to go deep inside and think about their risk tolerance. Here you have to be brutally honest with yourself. Finally, you should try to spread the risk. Find out about different investment products, compare different investment products and only invest if you really understand the product! (04.06.2020 / fc / n / s)