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Wednesday, 26 October 2011

Where Do I Put My Money so it's Safe?

About Investment

This question has become increasingly difficult to answer, because when you thought it was only a matter of finding someone you can trust to make your money safe, think again.  It is about how and where you invest your money.
How to Invest
It’s seems to make life a whole lot easier to work with an investment broker.  But wait, it’s your money, you need to become more involved.  You may still work with a broker whose connections and knowledge of what is going on in the market could be very useful for you.  You however should follow the leads your broker gives you and:
  • Do your own due diligence to verify the “opportunities” that exist – DON’T BE HASTY.
  • If it seems too good to be true – IT IS.
  • Learn to do what the broker does and – INVEST FOR YOURSELF. 
  • Know the difference between investing and speculating; between researching decisions and doing guess work – ALWAYS INVEST. 
  • Also, if you don’t quite understand what is happening, don’t take someone’s word for it – DO NOT INVEST.

Where to Invest

We’ve established that it is important to know the organization you are going to invest in.  But existing organizations are not the only outlets for investment.  You may also establish your own business, in which case you will need to know the industry.  Knowledge of the industry is also critical in investing in existing businesses as well.  The challenge with investing in businesses that you do not own is a reduced ability to affect outcomes.  Operating your own business affords you greater autonomy and increases your ability to influence outcomes.  But with all your best efforts life is an inescapable risk.  The good news though is that risk levels can be lowered.  Here are some tips of where to invest:

  • Invest where you can exert most influence. 
  • Invest where there are tangible assets, this usually means that manufacturing is more than likely taking place, which is critical to growing an economy.  But more critically from a safety of your investment point of view, tangible assets can be sold to recover investment funds.  Additionally, you are better able to recognize when something is going wrong.
  • When the assets are mostly intangible you want to make sure that your influence level is really high.  Influence is also necessary when the tangible asset base is heavy, but not as critical as in the other case.
  • Target procuring assets that tend to appreciate (real estate, gold, etc.).
  •  Stay away from money changing hands corporations – this is playing Russian roulette with your hard earned funds.
  • Invest in yourself. Equip yourself with skills that can be employed for your financial gain.
  • Consistently return a faithful tithe and give a liberal offering each time.  The blessings will follow, and you will enjoy maximum security (financial and otherwise). Mal. 3: 10-12; Matt 6:19, 20.
Remember, investing is a long term undertaking, be prepared to wait.  If it is happening too quickly, then you need to be scared, especially when the evidence is as it appears on paper.  The Bible warns against lending your money and charging usury (interest) on it.  Deuteronomy 23:19.  Modest interests on funds are a balancing out of inflation.  When interest rates are way high however, then an imbalance is occurring.  God’s blessings are very likely not on it.  Don’t be greedy.  Stay away.  A word to the wise….