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An Ideal Investment - Part 3By Margaret Ntifo
We reviwed High Return, Minimal Risk and Low Maintenance in Part One of this article.
Part Two continue with Fees & Commissions and Easy Access. The final part of this series covers the folowing:
Maximum Flexibility
The best strategy for investing is to invest a percentage of your income on a regular basis, usually monthly. Choosing to invest a minimum of a tenth of your income is a voluntary decision. Hence, it seems meaningless to enter into rigid agreements or contracts that commit you to forced regular savings!
It is important that your investment is responsive to your needs. Your aim is to maintain control of your own money as much as possible and have flexible access to it at all times without penalties. You should be able to transfer your investments if you are not completely satisfied with your initial choice, again without unreasonable charges.
Always retain the control, initiative and decision-making on your own money. It is easy to set up your investments yourself. It is faster and involves less paperwork than delegating it to an advisor who may be limited in the choice of financial products his company offers, or unduly influenced by more profitable commissions relating to particular investments, which may not necessarily be in your favour.
The last thing you want is to hand your valuably earned money to someone else and the control that goes with it. Investing can be simple, and you will learn a lot as you go on. Find your self a mentor or a wealth coach who knows about investing in the Stockmarket, read a lot and take control of your money. It is easier, it is faster and you will be guaranteed to choose your ideal investment.
Tax Efficiency
You cannot avoid paying tax on the returns of your investment, but you can minimise the effects of tax on your investments. Usually, the money you save and invest has already been taxed at source, which means you have already paid tax on it as part of your salary.
Once your savings are invested, you will pay little or no tax for many years. This is great and will allow your investment to grow without undue drawbacks. When you finally come to draw funds out of your investment, you could be liable to capital gains tax and/or income tax.
In the beginning, you do not need to concern yourself overly about tax implications until your fund has reached a significant amount. There are legal strategies to minimise tax effects on your investments. When necessary, find a good tax advisor before withdrawing your investments. You can also read about it yourself.
Follow these guidelines and you are in for a winner!
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Copyright Margaret Ntifo - she is a Wealth & Prosperity Coach, a Speaker and author of 'The Money, Wealth and Prosperity' E-Program and 'The Dairy of an African Princess...'
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