Investment Strategy
Because investing is not a sure thing in most cases, it is much like a game – you don’t know the outcome until the game has been played and a winner has been declared. Anytime you play almost any type of game, you have a strategy. Investing isn’t any different – you need an investment strategy.
An investment strategy is basically a plan for investing your money in various types of investments that will help you meet your financial goals in a specific amount of time. Each type of investment contains individual investments that you must choose from. A clothing store sells clothes – but those clothes consist of shirts, pants, dresses, skirts, undergarments, etc. The stock market is a type of investment, but it contains different types of stocks, which all contain different companies that you can invest in.
If you haven’t done your research, it can quickly become very confusing – simply because there are so many different types of investments and individual investments to choose from. This is where your strategy, combined with your risk tolerance and investment style all come into play.
If you are new to investments, work closely with a financial planner before making any investments. They will help you develop an investment strategy that will not only fall within the bounds of your risk tolerance and your investment style, but will also help you achieve your financial goals.
Never invest money without having a goal and a strategy for reaching that goal! This is essential. Nobody hands their money over to anyone without knowing what that money is being used for and when they will get it back! If you don’t have a goal, a plan, or a strategy, that is essentially what you are doing! Always start with a goal and a strategy for reaching that goal!
Categories: Investment Tags: Investment, Investment Strategy, Strategy
Determine Your Risk Tolerance
Each individual has a risk tolerance that should not be ignored. Any good stock broker or financial planner knows this, and they should make the effort to help you determine what your risk tolerance is. Then, they should work with you to find investments that do not exceed your risk tolerance.
Determining one’s risk tolerance involves several different things. First, you need to know how much money you have to invest, and what your investment and financial goals are.
For instance, if you plan to retire in ten years, and you’ve not saved a single penny towards that end, you need to have a high risk tolerance – because you will need to do some aggressive – risky – investing in order to reach your financial goal.
On the other side of the coin, if you are in your early twenties and you want to start investing for your retirement, your risk tolerance will be low. You can afford to watch your money grow slowly over time.
Realize of course, that your need for a high risk tolerance or your need for a low risk tolerance really has no bearing on how you feel about risk. Again, there is a lot in determining your tolerance.
For instance, if you invested in the stock market and you watched the movement of that stock daily and saw that it was dropping slightly, what would you do?
Would you sell out or would you let your money ride? If you have a low tolerance for risk, you would want to sell out… if you have a high tolerance, you would let your money ride and see what happens. This is not based on what your financial goals are. This tolerance is based on how you feel about your money!
Again, a good financial planner or stock broker should help you determine the level of risk that you are comfortable with, and help you choose your investments accordingly.
Your risk tolerance should be based on what your financial goals are and how you feel about the possibility of losing your money. It’s all tied in together.
Categories: Admin Note Tags: Business, Risk Tolerance
Effective and Efficient Relationships
Relationships of all kinds are often perceived as very delicate things, that require extra effort to maintain. However, a relationship can also be something that can provide security and can also be long lasting despite many trials.
Building an effective and lasting relationships is a necessity for several reasons. For example in a group or organization, the well being of the people depends on how efficient and effective that group or organization works.
The group or organization is also dependent on how the members work well with the management.
An ineffective group or organization can really be very frustrating. An effective group or organization can also ask so much on their members, that sometimes the members would be having no life outside the walls of the area where they work or sacrifice the other aspects of their life just to meet deadlines. For an organization or group with this kind of scenario, relationships can be stressed or suffer from breakdown.
People or other entities who depend on these groups or organization also suffer.
Society is defined as a web of relationships, which requires all parties to work and contribute their share in order to achieve a common goal. Having a relationship that is good, where cooperation and respect are manifested, can make society work better. In this way each member works for the good of the whole and towards achieving a common goal. This can only be attained with effective and efficient relationships.
Understanding the other parties’ feeling and position creates an effective and efficient relationship. The easiest method to understand what is important to another party is to ask them what they want and listen to what they have to say. When the other party realizes this, they would feel the importance given to them
Effective and efficient relationships require parties to openly express their feelings and positions on all matters pertinent on the relationship. Assuming that the other party understands our needs and give us when we need it without asking for it is not a good practice.
Respect is the key to relationship. In order to create a more effective relationship, parties should treat each other with respect. We can show respect just by listening to the other party and by trying sincerely to understand how they function. You can also show respect to other parties by confirming that they are doing everything they can.
The opposite of respect is quick forming of judgements based on unfounded facts and prejudice.
Respect is the very foundation for a great relationship. This also means respecting yourself and respecting others.
Another key area in forming an effective relationship is to tackle differences of the other party directly. Differences between parties or people are quite interesting. For example in a conversation where each party listens to the other party, you may observe that each is having two different perspectives.
Work towards a win-win solution for both parties.
This can be done when at least one party acknowledges that the relationship is important. That party would then exert more time, effort and energy to understand the other party’s needs and deal with it to get it out of the way. Should they fail, it is comforting for that party to know that they tried.
Effectively listening and no pre-judging. This is important if parties are to understand each other.
Informal discussions are conducive for parties. They bring out issues and concerns comfortably. They also feel more relaxed making them think more clearly.
Developing an atmosphere where the other party can express their feelings when they need to.
When parties fail to express whatever is on their mind or their feelings, it can get in the way of building an effective relationship.
Parties should be aware that certain things exist naturally but should be controlled in any dealings in any relationship. Human nature is one. Some of these things found in a relationship also include a history of stereotyping or mistrust, blaming the other person or party for a strained relationship, excluding the other party’s feelings when focusing on a task, no clear and defined objectives, roles and expectations of each party in a relationship is also unclear.
Relationships are important to anyone, addressing issues and problems right away is a must to further improve the relationship. As they say ‘No man is an Island’.
Categories: Admin Note Tags: Relationships
