The options for investing our savings are continually increasing, yet every single investment vehicle can be easily categorized according to three fundamental characteristics - safety, income and growth - which also correspond to types of investor objectives. While it is possible for an investor to have more than one of these objectives, the success of one must come at the expense of others. Let's examine these three types of objectives, the investments that are used to achieve them and the ways in which investors can incorporate them in devising a strategy.
Safety
Perhaps there is truth to the axiom that there is no such thing as a completely safe and secure investment. Yet we can get close to ultimate safety for our investment funds through the purchase of government-issued securities in stable economic systems, or through the purchase of the highest quality corporate bonds issued by the economy's top companies. Such securities are arguably the best means of preserving principal while receiving a specified rate of return.
The safest investments are usually found in the money market and include such securities as Treasury bills (T-bills), certificates of deposit (CD), commercial paper or bankers' acceptance slips; or in the fixed income (bond) market in the form of municipal and other government bonds, and in corporate bonds. The securities listed above are ordered according to the typical spectrum of increasing risk and, in turn, increasing potential yield. To compensate for their higher risk, corporate bonds return a greater yield than T-bills. (For more insight on treasuries, read Buy Treasuries Directly From The Fed.)
It is important to realize that there's an enormous range of relative risk within the bond market. At one end are government and high-grade corporate bonds, which are considered some of the safest investments around; at the other end are junk bonds, which have a lower investment grade and may have more risk than some of the more speculative stocks. In other words, it's incorrect to think that corporate bonds are always safe, but most instruments from the money market can be considered very safe.
Income
The safest investments are also the ones that are likely to have the lowest rate of income return, or yield. Investors must inevitably sacrifice a degree of safety if they want to increase their yields. This is the inverse relationship between safety and yield: as yield increases, safety generally goes down, and vice versa.
In order to increase their rate of investment return and take on risk above that of money market instruments or government bonds, investors may choose to purchase corporate bonds or preferred shares with lower investment ratings. Investment grade bonds rated at A or AA are slightly riskier than AAA bonds, but presumably also offer a higher income return than AAA bonds. Similarly, BBB rated bonds can be thought to carry medium risk but offer less potential income than junk bonds, which offer the highest potential bond yields available, but at the highest possible risk. Junk bonds are the most likely to default.
Most investors, even the most conservative-minded ones, want some level of income generation in their portfolios, even if it's just to keep up with the economy's rate of inflation. But maximizing income return can be an overarching principle for a portfolio, especially for individuals who require a fixed sum from their portfolio every month. A retired person who requires a certain amount of money every month is well served by holding reasonably safe assets that provide funds over and above other income-generating assets, such as pension plans, for example.
Että siitä kapitaan! toivoopi Ei-Konneveden Emäntä! Tä! Kyykkyyn jo käy!
Safety
Perhaps there is truth to the axiom that there is no such thing as a completely safe and secure investment. Yet we can get close to ultimate safety for our investment funds through the purchase of government-issued securities in stable economic systems, or through the purchase of the highest quality corporate bonds issued by the economy's top companies. Such securities are arguably the best means of preserving principal while receiving a specified rate of return.
The safest investments are usually found in the money market and include such securities as Treasury bills (T-bills), certificates of deposit (CD), commercial paper or bankers' acceptance slips; or in the fixed income (bond) market in the form of municipal and other government bonds, and in corporate bonds. The securities listed above are ordered according to the typical spectrum of increasing risk and, in turn, increasing potential yield. To compensate for their higher risk, corporate bonds return a greater yield than T-bills. (For more insight on treasuries, read Buy Treasuries Directly From The Fed.)
It is important to realize that there's an enormous range of relative risk within the bond market. At one end are government and high-grade corporate bonds, which are considered some of the safest investments around; at the other end are junk bonds, which have a lower investment grade and may have more risk than some of the more speculative stocks. In other words, it's incorrect to think that corporate bonds are always safe, but most instruments from the money market can be considered very safe.
Income
The safest investments are also the ones that are likely to have the lowest rate of income return, or yield. Investors must inevitably sacrifice a degree of safety if they want to increase their yields. This is the inverse relationship between safety and yield: as yield increases, safety generally goes down, and vice versa.
In order to increase their rate of investment return and take on risk above that of money market instruments or government bonds, investors may choose to purchase corporate bonds or preferred shares with lower investment ratings. Investment grade bonds rated at A or AA are slightly riskier than AAA bonds, but presumably also offer a higher income return than AAA bonds. Similarly, BBB rated bonds can be thought to carry medium risk but offer less potential income than junk bonds, which offer the highest potential bond yields available, but at the highest possible risk. Junk bonds are the most likely to default.
Most investors, even the most conservative-minded ones, want some level of income generation in their portfolios, even if it's just to keep up with the economy's rate of inflation. But maximizing income return can be an overarching principle for a portfolio, especially for individuals who require a fixed sum from their portfolio every month. A retired person who requires a certain amount of money every month is well served by holding reasonably safe assets that provide funds over and above other income-generating assets, such as pension plans, for example.
Että siitä kapitaan! toivoopi Ei-Konneveden Emäntä! Tä! Kyykkyyn jo käy!
Vastaukset 4
Vanhimmat
...näihin kirjoituksiin?
http://www.investopedia.com/articles/basics/04/032604.asp
...ja halu SPÄMMÄTÄ!
Kehotan muitakin spämmäystaitoisia (se vaatiikin suurta taitoa) pitämään huikeilla jutuilla capitaa hengissä! Eipä juuri asiallisia argumentteja tästä leiristä kuitenkaan irtoa.
KVFmäntä oli petturi, lopetti aikoinaan kirjoittelun asiasta! Mutta juu, Onnellinen sijoittaja asuu pääni sisällä...
Pyydän, jatkakaa uljasta perinnettäni. Pitää kohta poistua muualle tiedotustehtäviin. toivoopi ei-KonneVedeNN emänTÄ?
saitko alkuperäiseltä kirjoittajalta luvan kopioida hänen artikkeliaan tänne? Rikot hänen tekijänoikeuksiaan aika pahasti. Lisäksi, mahdoitko ymmärtää mitään artikkelin sisällöstä? Liittyykö se jotenkin teihin säälittäviin WC-hörhöihin?
Verkostomarkkinonti on pääsääntöisesti huijausta, mutta erittäin tuottoisaa vetäjille. Riskit ovat pienet ja tuotot voivat olla valtavia. Moni toki menettää rahansa, mutta mität siitä? Se on elämää. Vahvimmat ja röyhkeimmät pärjäävät.
Sijoita sinäkin byramidisysteemeihin, jos pääset alussa mukaan, voittosi ovat huikeat. Jos taas tule mukaan liian myöhään, on riski hävitä. Mutta rahoituslaitokista saa aina lisää lainaa, joten kovin huonosti ei voi käydä.
Tule siis sinäkin mukaan vaikkapa valuuttakauppa-systeemeihin ja ole menestyjä. On turha piilotella rahojaan patjan alle, siellä ne eivät kasva korkoa. Ole ylpäe sijoittaja sinäkin.
Jotenkin noin... vapaasti suomennettuna ja lyhennettynä. Onhan siinä asiaa, on.