Know Your Investment Risk & Return

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That is, when the target of our investment goes up, then the risk of our investments will also go up. Or when there is a product that offers a return on investment (return) is high enough, then certainly the product contains the risk of “hidden” that maybe we do not understand or know.

Although this is often touted, but still people who wonder about a product or even an investment scheme. The phenomenon became Rich was later made ​​a lot of blind people, aka rational disturbed when faced with offers of investment products that promise a very high yield.

Being rich is a dream of all people, let alone get rich quickly. Unfortunately it will never be taught by a Financial Planner. In the process of Financial Planning is good and right is done by a professional financial planner, then a client will be creating a book Plan in accordance with their financial goals and will be asked to allocate funds and continue to increase their investments each month.

It takes perseverance and discipline to always be able to do this every month for years. For the majority of Indonesian people who want this instant all felt old and a waste of time. So many people looking for short cuts to increase the investment to 50% and some even want to 100% in a short time through investment schemes. That is why investment scheme also remains rife and many casualties.

Playing with the risks and consequences that will be accepted is quite heavy. If there is an investment strategy that can deliver up to 50% or 100% it stands to reason that the risk would be worth that we have the potential to lose our funds 50% to 100%. The question is if we have only a savings of $ 1,000 which we invest with the hope of getting the 50%, well when we succeed and our investment rose 50% to $ 1,500 if this will change our lifestyle. Maybe so little, maybe we’ll buy a new HP or a walk with the family. But not necessarily make us rich and become a millionaire right?.

Excellent investment if we are up 50% but as I mentioned above could be increased by 50% if the investment we too can also be down 50%. Well now I am behind the scenario, the question is if we go down a minimum investment of 50% what happens? When we fund our only we invest in high-risk, down from $ 1,000 million to just $ 500, whether it will change our lives? Of course it will feel heavy for us. Chances are we have to work overtime or seeking additional income so that we can save more to cover our losses. How much time do we need to regain the loss of $ 500 million? Are hard work and extra work is worth the results we get when we gain 50%?.

Therefore, carefully consider again if we want to get greedy in investing. Do not be tempted with investment schemes that give the lure of lucrative and consequently the results are often misleading. Use common sense and always remember that the higher the investment returns we expect the higher the potential risks to these investments.


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