Whilst this article has a very US based focus, the principles are worth
considering
You can begin
building wealth today by opening an investment program account, create a solid
financial foundation, and reach your financial goals for your family in a
manageable and affordable way. Your goals might include saving for your
children's college education, a first or second home, your senior years, and
funding a Roth I.R.A.
Investment programs
may offer stocks, bonds, mutual funds, bond funds, and exchange-traded funds
(E.T.F.'s) with emphasis on earnings, industry sectors, ratings, dividend
yields, performance, risk factors, and growth positions.
These affordable
and manageable investment programs allow you to purchase incrementally with a
specific dollar investment on a regular weekly, bi-weekly, or monthly cycle.
They are ideal for the beginning investor and the seasoned investor. Each
program has specific requirements, such as minimum dollar investments, and
related fees.
The fees are
normally lower in this type of investment trading program. Another benefit is
the ability to purchase incremental shares vs. single stock shares with a
minimum purchase that is generally higher than a program such as this.
Perhaps your
favorite new stock is selling for $59.75 per share and your regular investment
amount is $250.00 per month, your purchase would result in 4.184 partial shares
minus investment/trading fees charged. Each month with your regular investment,
the stock price may change and the number of shares will adjust accordingly.
The best way to
build your wealth is through dollar-cost-averaging by purchasing stocks on a
regular cycle. The number of stock shares is larger at a lower stock price,
while you may have fewer shares at a higher price. Your purchases take
advantage of the lower market cycles over time.
With regular stock
investments, you can grow wealth quickly and take advantage of dividend gifts
throughout the year. You are accumulating more wealth as your portfolio
increases in value due to the larger volume of shares owned. Then you receive
more dividends on the previous dividends reinvested and added to the stock you
already own.
You need to
reinvest all of your dividends and leave your investments to grow; it is the
only way to have your investments work for you and to build your wealth.
You can diversify
your investments with stocks in different industry sectors such as
computers/technology, healthcare, industrial, energy, financial, services,
capital goods, aerospace, basic materials, services, construction, utilities,
transportation, retail/wholesale, consumer, and auto/tires/trucks. You can
balance the cyclic risk of under-performing sectors by including diverse
sectors in your portfolio.
My small portfolio,
which I opened ten years ago, is a self-directed stock investment program and a
Roth I.R.A. where I purchased stocks in different industry sectors. I monitor
the stocks and their news regularly while I have enjoyed stock splits with a
consistent 20-26% annual portfolio growth. If any stock is underperforming over
time (it happens), I sell it, research new stocks, and invest in them.
I rebalance my
entire portfolio in both investments annually in January. I review each stock
on a ten-year, five-year, one-year, and six-month analysis on the program
website. I also review the dividend yields, income growth, and company news. I
like dividends! All of these factors are important in my stock evaluation
whether to maintain or sell a stock.
If you want to
build wealth, you need to do your homework and research your stocks, funds,
etc. unless you hire a professional to assist you or use the financial advisors
within your investment program.
There is an
enormous volume of investment information available through investment firms,
banks, and financial advisors that will assist you in making informed
decisions.
There are a number
of investment publications and financial experts on TV, on podcasts, and on
websites offering market analysis and advice.
All investments are
subject to market fluctuations and the value of your investments may rise or
fall based on world, political, business, and market conditions. There are not
any guarantees.
The best investment
program is one in which you feel comfortable with these factors and you can
rest knowing your investment plan is working for you without causing worry and
stress. Dependent on your age, investment needs, and financial ability, you can
find a wealth-building plan today that maximizes your financial position and
meets the financial goals and needs for your family.
Please visit my
website and sign up for my Dawn to Dusk Blog at http://www.DawnToDuskEnterprises.com. Visit my Fuzzy and Romeo Adventures
page on my website http://dawntoduskenterprises.com/fuzzy-and-romeo-adventures/ and find my new children's book
- Fuzzy and Romeo Adventures - The Mysterious Intruder - a dog adventure story.
Also available on Amazon.com as a Kindle book. Thank you!
Article
Source: http://EzineArticles.com/expert/Dawn_Marie_Carlson/2184863
