You do not need a broker’s license if you are contemplating stock investing. But you do need a stockbroker to handle the transactions and a basic understanding of how the stock market works.
There are two ways used in to stock investing. The first is trading stocks on the stock exchange floor. For many people this brings up a mental picture of this chaotic scene of people running around yelling into phones.
The reality is, regardless of how much of a chaos it seems, stock market trading on the exchange floor is very organized. The other method is you can trade electronically which is done at your computer.
Not long ago investing was easy. There were few places you could invest and if you had money you wanted to invest, you left it to the professional stock brokers. However, deregulation of the financial markets has changed all this. In the past 20 years new investment products have been launched, changes have been made to the tax systems and retirement plans which have altered the attractiveness of many investment products.
Up to about 20 years ago, share investing was purely in the domain of the wealthy. For most people it was difficult to trade in overseas stock exchanges, there were no such thing as cash management trusts, installment warrants, exchange traded options, dividend imputation, reset preference shares and endowment warrants – to name a few. Now about 50% of investors are “mums and dads” investors who either own shares directly or in managed funds. Unfortunately, in recent years many investors have been “burnt” because they did not understand the risks of investing in financial markets.
Governments around the world have made it clear that it is important for people to take control of their own financial futures. The sustainability of government funded pensions is under pressure. If you do not save and invest, you will suffer a significant decline in your retirement living standard. The average life expectancy is about 80 years, so if you retire at 60 years of age, the savings you have accumulated in the 40 years of your working life will need to fund your retirement of 20 years or more.
Real estate investing is one of the most attractive ways of making good money (that is if you do it correct). Moreover, real estate investing is also a lot of fun. A lot of people practice real estate investing as their core profession and, in fact, make a lot of money that way.
Real estate investing is really an art and, like any art, it takes time to master the art of real estate investing. The key, of course, is to buy at a lower price and sell at higher price and make a profit even after paying all the costs involved in the two (buy/sell) transactions.
Generally, people are of the opinion that real estate investing makes sense only when the rates are on the rise. However, real estate investing for profits is possible just about any time (and as I just said, real estate investing is an art). Here is a list of tricks that can make real estate investing profitable for you:
Similar to other forms of investment, real estate also has its own share of ups and downs. But, of late, it has been receiving bad publicity. Many people consider investing in single family homes as a better option than apartments, shopping centers, office buildings or raw land. It is essential to know a little about investment in single family homes, before you jump into making an investment. It is important to know about the kind of problems that can arise in a particular area. For example, if you buy a house in an area which is flood prone, the tenants to whom you rent the house can sue you.
In case such a situation arises, you are likely to end up losing the house. Besides, you should also know about the property value in a locality. In case many houses are being built up in a particular area, it signifies that the property value of the house is likely to go up. So, it is important that you check on the demand of real estate properties in a particular area before making an investment in single family homes. In addition, you should also know about the kinds of homes that can be difficult to resell or rent out. More often than not, homes with two or less bedrooms are difficult to rent or resell.
Investing in single family homes offers a number of benefits over apartments or other types of buildings. Some of the advantages are as follows:
Most people’s beliefs about investing are very tenuous. There are, of course, people who are very passionate about investing. They don’t view investing as some esoteric subject, but rather as a field intimately connected to the human behavior they observe in their everyday lives.
For everyone else, however, beliefs about investing come in the form of passive knowledge. The tendency is simply to accumulate an inventory of conventional dictums. Investing beliefs are formed much the way a student prepares for a test. If the subject of investing were as simple as a third grade spelling bee, this wouldn’t be a problem.
But, investing is a far more complex subject. That isn’t to say it is necessarily a difficult subject. For some, it is relatively easy. But, it is never simple. An investor can not analyze relationships with the certitude and precision a physicist can. The investor is concerned with human phenomena, which are necessarily complex phenomena.