We earn some
money from our job, service, profession or
business etc. The amount which we save from our earnings, is invested for getting some returns, for our future use. There are many modes of investments, with different conditions, periods & returns. Investment is a complex subject, & it requires lot of wisdom (& luck too) to see that, losses are minimum & gains are maximum. This book in its twelve Chapters, & financial check lists in the Appendix, covers various aspects of this difficult subject, in a simple manner. The main modes discussed are, certificates of deposits, money
market funds, stocks, utility stocks, mutual funds, fixed rate annuities, bonds & high yield bonds etc.
In one of the important Chapters, the author discusses as to how, we should make the right mix, i.e. the best combination of various modes for our portfolio. Final investment decisions must be taken by us. However, we may get advice from the experts, & also learn from books & magazines etc. Financial
planning is a must, so that we can look for prospects of investment, taking into account inflation, taxes etc. To prepare a financial plan, we have to fix our goals at the stage of say 20 years, objectives of portfolio, make a record of the current holdings, expectations of inflation, tax bracket & the level of risk we want to take. Then with each individual investment, we can project its future
value after 20 years, & then get total final portfolio value. Goals should be listed in order of priority & converted to dollar figures, & then we should arrive at the figure of annual
savings to be made by us. We have to design our strategy, taking into account our present holdings, & considering diversification, repositioning our investments, having more annual savings, planning for a later retirement or reducing expectations at the time of retirement. We should plan such that, our holdings do not attract taxes, as far as possible. With the discipline of savings & living within our means, we can increase our annual savings. With an extended retirement, our present investment will get more time for growing further, substantially. We have to know that, there is no risk free investment any where. It is not advisable to maintain status-quo. It is better to plan, implement, monitor & correct the course of action(s). Its regular progressing along with the investment adviser is advisable. If position improves substantially, we may take more risks, for increasing returns on our investments. This book provides necessary information for those, who are
investing for the first time, & also for those who already have some experience in it. This book shows as to how, when & where to invest, to maximize the returns along with adequate safety. It is a good guide book for all those who are desirous of investing.
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