by: Satish Budhrani
Many find investments to be a risky deal not because investments of any kind require fair amount of speculative measures for comparatively larger returns, but because they lack the knowledge about what to invest in and when.
Investments, irrespective of financial class of a human are mainly divided into three categories, which are
1) Short Term Investments
2) Middle Term Investments
3) Long Term Investments
Short Term Investments
Short Term investments are those kinds of investments, which are made for a very short period; in a financial year such investments can be made for a day to eleven months of that financial year.
The major financial investment tools for short-term investments are
1) Stock market
2) Derivatives market
3) Commodity market
4) Currency market
5) Bond Market
6) Bullion Trading
7) Short term mutual funds investments
8) Systematic investment plans
9) Short term Deposits with banks
10) Recurring deposit schemes
11) Institutional deposit schemes
12) Money landing
One can investment in the above for short term from one day to less than an year of any particular fiscal year, however it is not a mandatory condition that one cannot invest for longer period in these tools. Majority of the short-term investment tools are speculative and hence yield high but may result in a loss as well if not invested properly.
Middle Term Investments
Middle Term Investments are made for a period of more than one year but unto three years. These investments are generally made for saving taxes and the yield on such investments is usually guaranteed. These investments are not as risky as many of short-term investments are. The majority of middle-term financial investment tools are different schemes floated for infrastructure development by institutions and governments under strict regulatory guidelines of government or regulatory authority that protects the interest of investor.
Below is the list of financial investment tools for middle term investment.
1) Tax exempted Government bonds or bond funds or tax saving investment schemes floated by Governing body or local government like municipal tax exempted funds
2) Corporate Bonds
3) Unit Investment trusts
4) Market Linked Tax saving Insurance plans
5) Tax saving mutual fund schemes
6) Treasury and agency instruments or Government securities (GSECs)
7) Bank Deposits
8) Investment in stocks (Debentures)
Middle-term investments tools unlike many of short-term investment tools are much safe and yield considerable profit. These investments can be called as risk free investments and are least speculative, seldom there is any chance of loss in these investment tools and most of them are highly secured investments.
Long Term Investments
Long Term Investments are those, which are made for a period of more than three years, and they are planned till retired age as well. Taking capital gains and risk cover factors into consideration, which provide solid foundation of financial self-dependency in retired age and platform for heirs, makes these investments. Apart from low tax on capital gains long term investments also have other tax benefits.
Long-term investment tools are
1) Real Estate Investments
2) Annuities
3) Life Insurance
4) Long term deposits with government bodies
5) Long term deposits in bonds
6) Capital investments in corporate sector or in any secured business in form of asset
Long-term investment tools are common for everybody irrespective of financial class however; investments and return are subject to one?s financial capacity.
Financial planning plays a vital role in one?s life as it gives clear picture of one?s position and the strategic direction in which one is going ahead and it is the only mode to prepare oneself from those events which will inevitably occur in ones life irrespective of whether one anticipate with them or not.
Intelligent investors realize the importance of financial planning first and begin to work on savings before investing which enable them to generate surplus cash and start planning strategically.
About The Author
Satish Budhrani is an expert in Investment and Portfolio Management and writes regularly on latest trends in the investment arena. For more investment advice, visit his blog at http://investmentfordummies.blogspot.com/.
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Long Term Care Insurance From A Solid Provider
Long Term Care Insurance From A Solid Provider
by: Ivon T. Hughes
Blue Cross Blue Shield of Michigan will start a new company that will offer long term care insurance policies beginning in July 2006 and concentrate on providing long-term care services to individuals.
The individual policies would include coverage for assisted living and nursing care but there would be no group coverage products available.
CHRONIC ILLNESSES CAN BE COVERED BY LONG TERM CARE INSURANCE
Unlike traditional medical insurance coverage, long term care coverage helps patients address chronic illnesses and disabilities that employer policies and Medicare don't cover. They usually include meals and help with daily activities such as bathing and getting dressed. This will help protect them as the average cost of nursing home care is more than $50,000 a year, according to the AARP.
U.S. Census data suggest that the population of people 65 and older will...
Long Term Care Insurance From A Solid Provider
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Types of Life Insurance
Types of Life Insurance
by: Mike Bell
If you are considering purchasing life insurance, an overview of the available types should prove helpful. This article will briefly discuss the difference between whole and term life insurance, as well as some variations on whole life insurance.
The easiest way to understand the difference between whole life insurance and term life insurance is to look at what is meant by their names. When you purchase whole life insurance, you are covering your "whole" life - as long as you own the policy, it will pay a benefit when you die. What that benefit is depends on the value of the policy at the time of your death, but you own the policy even if you are no longer making payments on it. Whole life also accumulates a cash value on a tax-deferred basis. In addition, whole life can pay dividends throughout the life of the policy.
Term life insurance, on the other hand, is purchased for a certain term, or period....
Types of Life Insurance
Term life insurance > Types of Life Insurance
Life Insurance
Life Insurance
by: Gary Tallon
The life insurance market in the UK is extremely competitive. Over the last 5 - 10 years more and more insurance companies have been entering the life insurance market providing consumers with a huge range of life insurance products to go after. Even the big supermarkets like Tesco, Sainsbury and Asda now offer cheap life insurance products, often using their own brand goods as advertising space to get their message across to their legions of customers.
Such is the level of competition, a basic term life insurance policy can now cost as little as ?5 per month for a young and healthy non-smoker. Life insurance costs though will vary significantly depending upon age, lifestyle and occupation. They will also vary between different life insurance providers, as not all providers evaluate the risk of the life to be insured in the same way.
Shopping around for life insurance
The best way to get good value...
Life Insurance
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How Much Can You Save On Your Car Insurance?
How Much Can You Save On Your Car Insurance?
by: Derek Gardner
It costs a lot to get car insurance. No one would argue on that. Without one it would cost you more to drive if you had an accident. Still, you don't want to pay too much for it. So how can you save money on your car insurance premium?
Check several insurance companies. Don?t fall for the headline that says they got the best insurance deal in town. Find out for yourself by shopping around. It would be to your advantage to compare at least 3 quotes.
Find out how the prospective company is doing financially. Does the company have any complaints against them? What is their reputation for customer service? A good indicator of this could be seen on your initial visit. For example, did they take time to answer your questions or did they try to cut you off fast? Taking note of these things could save you some regrets later on.
Check insurance costs for the car you intend to buy....
How Much Can You Save On Your Car Insurance?
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Insurance Claims
Insurance Claims
by: Alan Jason Smith
When you are involved in an accident insurance claims may not be the first thoughts on your mind. However, there are some procedures you should follow in order to preserve your right to file an insurance claim. This may be anything from hail damage to a stolen vehicle and does not refer solely to car accidents.
The first thing you want to do is prevention. Most insurance claims can be prevented even before the incident occurs. For instance, to prevent auto accident?s be cautious and think about taking a defensive driving course. To prevent stolen vehicle insurance claims, keep you vehicle locked up and parked in a secure place. To prevent damage from the forces of nature do not travel in bad weather and keep your car in a covered parkway. There are many ways to prevent yourself from incurring loss. Most ideas are just common sense. However, for more information contact your insurance agent for ideas on...
Insurance Claims
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Business Insurance
Business Insurance
by: Joseph Kenny
There is no denying the fact that success of a business depends on the hard work of the team but one disaster can wipe out your efforts and bring down the profits to dust. So, to avoid such an instance, you need to insure your business, whether it is a small enterprise or a large corporation.
There are insurance companies, which have policies that combine protection for all major property and liability risks in one package. You can also opt for separate coverage. Such a policy is called a business owners? policy (BOP). Larger companies may purchase a commercial package policy.
BOPs include property insurance for buildings and equipments owned by the company. If there is any loss of income due to disruption of operation and business because of accidents like fire, it can be covered under the Business Interruption Insurance.
There are liabilities, which cover the company's legal responsibility...
Business Insurance
Term life insurance > Business Insurance
Life Insurance Providing Little Protection from Terrorism
Life Insurance Providing Little Protection from Terrorism
by: Richard Green
Recent statements by the City of London Police Commissioner James Hart that future terrorist attacks in London?s financial centre are, "a matter of when, rather than if", will increase already serious concerns over issues of personal and business financial protection.
Mr Hart?s statement pointed out that, "if you want to hurt the government, hurt people at the same time, and you want to cause maximum disruption...where better to hit than at the financial centre?"
Mr Hart also echoed a report by the insurer Axa which warned that just under 50% of small firms do not have a plan in place to ensure that their business could survive should they be hit by an emergency or disaster.
Axa highlighted that many businesses, especially in the South East danger zone, are not even covered against general risks such as fire and flood, which have a much greater...
Term life insurance > Life Insurance Providing Little Protection from Terrorism
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How to Fix Your Lifted Jeep Cherokee?s ?Death Wobble?
How to Fix Your Lifted Jeep Cherokee?s ?Death Wobble?
by: Nathaniel Long
If you drive a Jeep Cherokee or Grand Cherokee and are considering a suspension lift, you may want to think twice. Unfortunately, I was forced to learn this the hard way. I bought a brand new 2001 Jeep Cherokee a couple years ago, and almost immediately stacked on Pro Comp?s 3? lift kit with some 32 x 11.50 r 15 Super Swamper TSL tires. After a couple months of good riding, I started to...
toyo tires How to Fix Your Lifted Jeep Cherokee?s ?Death Wobble? Term life insurance Investments - Short Term or Long Term?
Term life insurance > How to Fix Your Lifted Jeep Cherokee?s ?Death Wobble?
Use Geothermal heat To Save Money On Your Household Heating Bills
Use Geothermal heat To Save Money On Your Household Heating Bills
by: Tony Luck
We are all looking for the cheapest electricity and natural gas prices, after all the less we spend on our fuel bills the more we have left over for the pleasures in life. So how attractive would it be to heat your home for free? It is possible by using geothermal energy.
The Queen of England is planning to cut energy bills at Buckingham Palace for centuries to come by creating...
lake tahoe Use Geothermal heat To Save Money On Your Household Heating Bills Term life insurance
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BMW M: Not Just Another Sports Car
BMW M: Not Just Another Sports Car
by: Shane Morgay
What is a sports car? There have already been quite a few personal definitions to what a sports car sounds to them. However, for most people, a sports car is a BMW.
BMW now adds up yet another product to their still growing family of vehicles. And right now, the new addition is the 2006 BMW M. It is a roadster. And it just goes to show that BMW meant business for this car. Its past shows a colorful BMW...
BMW M: Not Just Another Sports Car cooper tires
Term life insurance > BMW M: Not Just Another Sports Car
Why Fruit Baskets Make A Good Gift
Why Fruit Baskets Make A Good Gift
by: Bill B. Carmel
If you are at a loss when it comes to the perfect gift for that hard-to-shop-for friend, family member, or neighbor, or are trying to find a suitable gift for a colleague or client, consider a fruit basket. Fruit baskets make excellent gifts, especially for those individuals who have everything. Instead of giving a monetary gift or gift card that lacks personality, consider choosing a fruit basket that includes...
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