Life is always in need of money, but somehow many of which missed an investment opportunity to live in the future. One thing that is really is future life investment for your child. Lots of parents who thought the investment for children ends so their children leave home. This estimate gives rise to the existence of the benefits and risks in the community about future life investment for children. This time I am here will tell you something different. Open insights and learning investment are starting early.
Be sure to plan your engagement, wedding and your grandchildren. Because this is the best way you help their children’s future. There is nothing better than giving your child the opportunity to reach for something that they dream of. No matter how much the magnitude of your attention to childhood, so too should you do when they’ve been great.
Future investment is a financial freedom plan. Raising your child from any form of financial concern is something that is priceless for them. That’s where our success as parents. See happy preclude, rejoice, and appreciate the small things in their lives. Your income is currently a relatively small making the emergence of a confusion of how to run the investment for children. From small things that need consideration between the benefits and risks before investing the future for children.
The benefits and risks of future life investment
Future investment is currently very dependent on the amount of money we invested. Because of the lifestyle and how to invest for the future is very easy to do and very profitable.
Future investment gains
1. Very easy to do
Today do a great investment for the future is very easy to do if we have enough money. Because in reality, the money will be working alone. You just need to invest your money, then money will be working alone. This is an advantage for us if you want to make an investment in the future.
If you want your money to start working for you, it’s time to invest learning. Everyone has different needs and different circumstances but it does not mean it will remove your desire to learn to invest for the future. Here are some of the pros and cons of investing you need to consider. Just maybe, after knowing the goodness of evil as well as investment to do that, you need to speak to a financial adviser before deciding to invest your money.
2. anyone can do, whether rich, poor, or people who don’t have enough money
Whoever you are, you’re rich or you’re poor, you could just make an investment for the future if you have a high desire in investing. If you are a person who has a lot of money, you don’t have to think about anything else anymore. You just think of the risk will be borne. If you are someone who is poor, learn to invest from a small value. The longer your money will grow up to be a lot of money.
3. Generate considerable profits.
When someone knows the enormous profits, only investment, and business that can provide it all. As an example of saving up for long periods of time at a bank. The amount of money that we have could have been reduced, why? because every month will cut administrative costs, debit cards (ATM) and more. A different story if you invest your money, your money will be more.as examples of investments that give you an advantage 5% per month, while we old, that money will be so how?
4. Lighten the load and responsibility towards children
Planned investments for the future will help us alleviate the financial burden when our child grows up. starting from the purposes of school fees, health, preclude, and others.
Future investment risks
Every investment certainly has Risks that we have to consider. Although there are several types of risks involved in the investment of the future, investors should familiarize themselves with the risks it.
1. Credit risk
Credit risk is the risk arising as a result of failure to meet its counterparty, in anticipation of the bank’s credit risk should pay attention to the types of debt, Diversification in geographic areas and the types of industries that are financed, collateral policies and so on. and the most important is the rule or standard in credit control. This is the risk that the company will do a default payment of proceeds of bonds or debenture or bank or financial institution will default on the deposit.
2. Liquidity risk
Investors should look at these risks better. because of this risk depends on the type of investment of the future that we do. the liquidity of the market against the goods or shares in the market sometimes erratic. Sometimes the market which was a good run now could be the road available. This is the risk of being charged on the transaction due to lack of investors in the market either due to issues of quality or price. For example, there may not be enough transactions in certain stocks because of the number of shares of tradeable. Or maybe there wasn’t a lot of transactions in the real estate market because the prices tend to be at a higher level so that investors chose to sit waiting and watching until the price is really good.
3. Inflation risk
This is the risk that future investments will not produce the desired rate of return due to higher price levels. Higher inflation goes down, what is known as the real return on the investment.
“The individual must identify the appropriate to negotiate investment risk. For example, life insurance, with a company that invested in products that will be in demand in the market. Like paper, investment and other Office equipment. This will eliminate the risk of credit for most stocks. “