What Makes a Good Investment?

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10/9/2020

What Makes a Good Investment? | Kristian Finfrock | Investment & Tax Planning

a What Makes a Good Investment? by Kristian Finfrock | Oct 8, 2020 | Investment Planning, Kristian Finfrock, Tax Planning

It’s obvious that a good investment creates pro t but there is more to investing than that. Investing is an extremely reliable way to reach nancial goals. It’s more than buying safe investments, but how you balance your di erent investments. To make successful investments, you should begin to focus on timing, strategy, and risk management. Everything might not go as planned at rst, but going in prepared with an idea of what pro t you’re looking for will help. The following are some characteristics of a good investment. Value A good investment is bought at a good price. Overpaying puts you and your money at a high disadvantage. The price you pay for investments should correlate with the growth assumptions. Behavioral nance is an aspect of nancial markets that has shown that investors tend to be biased. Investors should use outrageous prices as an opportunity to invest in lower o ers. Good investments should have a very low chance of losing out of the https://kristianfinfrock.org/what-makes-a-good-investment/

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10/9/2020

What Makes a Good Investment? | Kristian Finfrock | Investment & Tax Planning

amount that was initially invested. It’s common for every investor to run into a price that they’re willing to pay because they believe it will grow in the long run. It’s important to remember that there’s no right price for a good investment. Understand the Investment The same investment made by a corporate manager may not be the best investment for a retail investor. If you’re having a hard time understanding how your investment will grow then you should begin to reevaluate somethings. Risks come with almost all investment decisions, so understanding what you’re investing in will help you. Consider investing in di erent sectors to build your professional portfolio. Being diversi ed and knowledgeable in investing can lead to many successes. Generates Income The best investments are those that generate a steady continuous yield. A yield gives investors a passive income that proves that there is pro t. You can generate income from stocks, rental income, properties, and so much more. This can become a waiting game as assets can increase in value over time. For example, property value increases during times when housing is limited and in higher demand. Companies also go up in value when they increase in capacity and reinvest in pro ts. It’s important to remember that when the stock market has increased this doesn’t mean all companies have. Securities o ered through Kalos Capital, Inc. and Investment Advisory Services o ered through Kalos Management, Inc., both at 11525 Park Woods Circle, Alpharetta, GA 30005, (678) 3561100. Retirement Income Strategies is not an a liate or subsidiary of Kalos Capital, Inc. or Kalos Management, Inc.

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