Short Term Investments
“Numerous people find short term investments to be a risky deal, says Laurent Carrier, a Financial Retirement Planner. Since financial investments of any kind require a fair amount of speculative measures for relatively bigger returns,” “However due to the fact that most people do not have the understanding about what to purchase and when, many people stray away from making the decisions themselves and want to leave this in the hands of someone else.”
Investments are mainly divided into three categories, which are:
- Short Term Investments
- Middle Term Investments
- Long Term Investments
Short-term Investments
“Short-term financial investments,” says Carrier, “are those kinds of investments, which are made for a very brief duration; in a fiscal year such investments can be produced a day to eleven months of that fiscal year.”
The significant monetary investment tools for short-term investments are
- Stock market
- Derivatives market
- Commodity market
- Currency market
- Bond Market
- Bullion Trading
- Short term shared funds financial investments
- Systematic investment strategies
- Short term Deposits with banks
- Recurring deposit plans
- Institutional deposit schemes
- Money landing
One can invest in the above for short-term from one day to less than a year of any particular , nevertheless it is not a necessary condition that one can not invest for longer duration in these tools. Bulk of the short-term financial investment tools are speculative and hence yield high however might result in a loss as well if not invested correctly.
Middle Term Investments
“Middle Term Investments are produced in a period of more than one year however unto three years,” comments Laurent Carrier. “These financial investments are normally made for conserving taxes and the yield on such financial investments is usually ensured.”
These investments are not as dangerous as a number of short-term financial investments are. The majority of middle-term financial investment tools are different plans drifted for facilities development by organizations and federal governments under strict regulative guidelines of federal government or regulatory authority that protects the interest of investor.
Below is the list of monetary investment tools for middle term investment.
- Tax excused Government bonds or mutual fund or tax saving investment plans floated by Governing body or city government like local tax exempted funds
- Corporate Bonds
- Unit Investment trusts
- Market Linked Tax conserving Insurance plans
- Tax saving mutual fund schemes
- Treasury and agency instruments or Government securities (GSECs).
- Bank Deposits.
- Investment in stocks (Debentures).
“Middle-term financial investments tools unlike a number of short-term investment tools are much safer and yield substantial earnings,” says Carrier. These financial investments can be called as risk free investments and are least speculative, rarely there is any chance of loss in these financial investment tools and the majority of them are highly protected financial investments.
Long Term Investments
Long Term Investments are those, which are produced a period of more than 3 years, and they are prepared till retired age also. Taking capital gains and risk cover elements into consideration, which supply strong structure of monetary self-dependency in retired age and platform for beneficiaries, makes these investments. Apart from low tax on capital gains long term investments likewise have other tax advantages.
Long-term financial investment tools are.
- Real Estate Investments.
- Annuities.
- Life Insurance.
- Long term deposits with government bodies.
- Long term deposits in bonds.
- Capital financial investments in business sector or in any protected company in form of possession.
“Long-term investment tools are common for everyone irrespective of monetary class nevertheless; financial investments and return go through one’s financial capacity,” says Laurent Carrier.
Financial planning plays an important role in one’s life as it offers clear picture of one’s position and the tactical instructions in which one is going on and it is the only mode to prepare oneself from those events which will inevitably occur in one’s life, irrespective of whether one prepare for with them or not. Intelligent investors understand the importance of financial planning initially and start to work on cost savings prior to investing which enable them to produce surplus cash and start planning strategically.
These financial investments are generally made for conserving taxes and the yield on such financial investments is usually guaranteed. These investments are not as dangerous as many of short-term investments are. The bulk of middle-term monetary investment tools are various plans drifted for facilities development by institutions and governments under stringent regulative standards of federal government or regulative authority that safeguards the interest of financier.
Taking capital gains and risk cover aspects into consideration, which offer solid structure of monetary self-dependency in retired age and platform for successors, makes these investments. “Apart from low tax on capital gains, long term financial investments likewise have other tax advantages,” comments Carrier. “When looking at financial investments, it’s also wise to discuss these with a tax specialist to understand which opportunities provide the best tax savings.”
ABOUT LAURENT CARRIER
For over 40 years, Laurent Carrier combines his knowledge, vision, and experience to empower clients to implement Retirement Planning Strategies. As a featured speaker Laurent shares his proven process for creating a retirement income plan. His extensive experience as a now-former financial advisor allows Laurent to give peace of mind and confidence to help make retirement a closer reality. For more information, visit his website at https://laurentcarrier-retirementplanner.com/