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Digg it UP - The Three Types of Investing
One of the wholesale video games niche edifying points that start-up small businesses ask themselves when starting there retail or wholesale business is: Do I need to establish a net 30 contract for a wholesale games business? One of the recent questions related was submitted- the answer was simple. There is no straightforward infinite answer for such case.Today depending on your state, country and numerous state laws that regulate e-commerce- you should need a business license or the well known dealer re-selling certification license or p
For example if you are a property developer there is a huge variety of possible developments that you could design and build on a particular piece of land. Amongst that huge set of possibilities there are also a huge range of potential outcomes ranging from high profit to huge loss and including all the points in between.
The advantages of creative investing are that it has the highest profit potential and the highest degree of control and flexibility. The disadvantages are that it requires the highest degree of knowledge, usually involves borrowing large sums of money and al
Your most profitable online business opportunity is hidden in your well loved hobby and basically stuff that you love to do.There is no denying the fact that you will tend to do very well whenever the subject at hand is something that is close to your heart. You will tend to be very good at it and you will usually possess the skills required to turn that hobby into a serious cash generating opportunity and your most profitable online business.Blogs or web logs as they were called in their earlier days have made it very easy for peop
Let's have a look at the three broad categories of investing and look at the advantages and disadvantages of each.
Passive Investing
Passive investing is when you put the investment decision making into the hands of someone else, ideally an expert investment manager.
The advantages of passive investment are that you are not required to have any investment expertise and you don't have to invest your time, only your money. The disadvantages are that firstly you have relinquished your control over your money and secondly the returns for these types of investment are usually uninspiring.
Common examples of passive investing are savings accounts, government bonds, property trusts and mutual funds. Most people invest for their retirement under some form of passive investment that usually has special tax concessions which vary from country to country.
Active Investing
With active investing you take an active role in managing the investment. This form of investing could have a long term focus such as a buy and hold share portfolio or it could be a short term focus such as futures trading.
To do well in active investing you need to have considerable knowledge of the investment vehicle or vehicles that you are using. You also need to understand the basic principles such as when to collect profits, when to cut losses and how to analyze the market. You also need the emotional strength to apply these strategies as required (this is often the most difficult aspect of active investing).
The advantages of active investing are that you have greater control over your investment than you do with passive investing and the potential for profit is theoretically higher. The disadvantages are that you need to invest time in acquiring knowledge and skills and in managing your investments and also that the potential for loss is also generally far greater than in passive investing.
Common examples of active investments are share, options, futures, and currency trading, buy and hold share portfolio building, buy and hold residential or commercial property, and property trading.
Creative Investing
With creative investing you actually change the investment in some way that is designed to manufacture profit. This form of investment requires a lot of skill and experience but if you have that skill and experience then you can create huge profits by being able to visualize what your investment could be once you have applied your imagination to it. For this reason creative investing is often described as turning thought into money.
For example if you are a property developer there is a huge variety of possible developments that you could design and build on a particular piece of land. Amongst that huge set of possibilities there are also a huge range of potential outcomes ranging from high profit to huge loss and including all the points in between.
The advantages of creative investing are that it has the highest profit potential and the highest degree of control and flexibility. The disadvantages are that it requires the highest degree of knowledge, usually involves borrowing large sums of money and als
Myspace can help us in many ways. But most of us are satisfied with making a good-looking profile. We can develop new friendships and make existing friendships stronger with proper commenting on myspace. Let me tell you how.Birthday graphic comments- on your myspace profile, you get a list of coming birthdays. Do you send a comment a day before that to all the friends? Most of us send a belated comment. That is bad. Why not select a nice looking graphic and comment with that? It takes a minute to open your friends profile and add comment.
Common examples of passive investing are savings accounts, government bonds, property trusts and mutual funds. Most people invest for their retirement under some form of passive investment that usually has special tax concessions which vary from country to country.
Active Investing
With active investing you take an active role in managing the investment. This form of investing could have a long term focus such as a buy and hold share portfolio or it could be a short term focus such as futures trading.
To do well in active investing you need to have considerable knowledge of the investment vehicle or vehicles that you are using. You also need to understand the basic principles such as when to collect profits, when to cut losses and how to analyze the market. You also need the emotional strength to apply these strategies as required (this is often the most difficult aspect of active investing).
The advantages of active investing are that you have greater control over your investment than you do with passive investing and the potential for profit is theoretically higher. The disadvantages are that you need to invest time in acquiring knowledge and skills and in managing your investments and also that the potential for loss is also generally far greater than in passive investing.
Common examples of active investments are share, options, futures, and currency trading, buy and hold share portfolio building, buy and hold residential or commercial property, and property trading.
Creative Investing
With creative investing you actually change the investment in some way that is designed to manufacture profit. This form of investment requires a lot of skill and experience but if you have that skill and experience then you can create huge profits by being able to visualize what your investment could be once you have applied your imagination to it. For this reason creative investing is often described as turning thought into money.
For example if you are a property developer there is a huge variety of possible developments that you could design and build on a particular piece of land. Amongst that huge set of possibilities there are also a huge range of potential outcomes ranging from high profit to huge loss and including all the points in between.
The advantages of creative investing are that it has the highest profit potential and the highest degree of control and flexibility. The disadvantages are that it requires the highest degree of knowledge, usually involves borrowing large sums of money and al
This past weekend I learned the importance of not flying solo in your business activities. I took a weekend off to spend time with one of my sons, and we traveled to a small British Columbia town called Cranbrook to watch our hockey team from Calgary take on the Kootenay Ice. Hockey is a long time escape from reality for me, especially when it involves getting out of town for an overnight trip.This trip is still going as I write this article, almost 24 hours after we should have been back home. I ran into some car trouble, and for safet
To do well in active investing you need to have considerable knowledge of the investment vehicle or vehicles that you are using. You also need to understand the basic principles such as when to collect profits, when to cut losses and how to analyze the market. You also need the emotional strength to apply these strategies as required (this is often the most difficult aspect of active investing).
The advantages of active investing are that you have greater control over your investment than you do with passive investing and the potential for profit is theoretically higher. The disadvantages are that you need to invest time in acquiring knowledge and skills and in managing your investments and also that the potential for loss is also generally far greater than in passive investing.
Common examples of active investments are share, options, futures, and currency trading, buy and hold share portfolio building, buy and hold residential or commercial property, and property trading.
Creative Investing
With creative investing you actually change the investment in some way that is designed to manufacture profit. This form of investment requires a lot of skill and experience but if you have that skill and experience then you can create huge profits by being able to visualize what your investment could be once you have applied your imagination to it. For this reason creative investing is often described as turning thought into money.
For example if you are a property developer there is a huge variety of possible developments that you could design and build on a particular piece of land. Amongst that huge set of possibilities there are also a huge range of potential outcomes ranging from high profit to huge loss and including all the points in between.
The advantages of creative investing are that it has the highest profit potential and the highest degree of control and flexibility. The disadvantages are that it requires the highest degree of knowledge, usually involves borrowing large sums of money and al
Who would expect that watching a fifty year celebration for Larry King would get me thinking about the attributes of great coaches, sales professionals, clients, consultants, you name it. The other night while watching Larry being interviewed by Katie Couric, Katie asked Larry what makes a great guest. His response got me thinking. Larry said they have PASSION; they are able to clearly ARTICULATE what they do; they have a CHIP ON THEIR SHOULDER and they have a SENSE OF HUMOUR.Larry named a few examples, such as Frank Sinatra, who had a
Common examples of active investments are share, options, futures, and currency trading, buy and hold share portfolio building, buy and hold residential or commercial property, and property trading.
Creative Investing
With creative investing you actually change the investment in some way that is designed to manufacture profit. This form of investment requires a lot of skill and experience but if you have that skill and experience then you can create huge profits by being able to visualize what your investment could be once you have applied your imagination to it. For this reason creative investing is often described as turning thought into money.
For example if you are a property developer there is a huge variety of possible developments that you could design and build on a particular piece of land. Amongst that huge set of possibilities there are also a huge range of potential outcomes ranging from high profit to huge loss and including all the points in between.
The advantages of creative investing are that it has the highest profit potential and the highest degree of control and flexibility. The disadvantages are that it requires the highest degree of knowledge, usually involves borrowing large sums of money and al
TAX-FREE COMPOUNDINGContributions inside a Roth IRA can grow and compound each year in your investment portfolio on a tax-free basis. This cannot be said for investments within a 401k plan or traditional IRA, which only experience tax-deferred growth compounding. At some point in time the investments held within 401k and IRA plans will have to pay the tax man.TAX-FREE EARNINGS applied your imagination to it. For this reason creative investing is often described as turning thought into money.
For example if you are a property developer there is a huge variety of possible developments that you could design and build on a particular piece of land. Amongst that huge set of possibilities there are also a huge range of potential outcomes ranging from high profit to huge loss and including all the points in between.
The advantages of creative investing are that it has the highest profit potential and the highest degree of control and flexibility. The disadvantages are that it requires the highest degree of knowledge, usually involves borrowing large sums of money and also has a huge potential for large losses if you get it wrong.
Common examples of creative investments are property development, property renovation, business renovation and new product development and marketing.
When you are deciding which of these three broad categories best suits you need to consider your knowledge and experience, your strengths and weaknesses, your access to resources, including time and money, and in particular you need to consider your personality including your time management skills, decision making skills, tolerance for risk and your self discipline.
There are of course many expert consultants to help you in each field and many sources of knowledge and experience to tap into.
I hope that this article was useful in helping you see where the various types of investments fit into the scheme of things.
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