Vladimir Tingue — Factors Need to Consider While Investing

What is your investment goal?

First, ask yourself: what are your financial goals? Why are you investing? How much money will you need in future and when?

After knowing what is the meaning of investment, people invest for various reasons. Some common goals include:

• to buy a house or car
• for your child’s university education
• to raise a business
• for your retirement, etc.

Vladimir Tingue might have brilliant business ideas and would want to see them come true. You have the option of getting business loans in that case, but it’s important to have a sound business proposal to make an impression on the bank or financial institution.

Generally, most people invest in keeping retirement in mind. Many western countries have pension plans for people after retirement, or you can invest your money in a pension fund, but these schemes are becoming less attractive due to inflation. But there is no such plan in India, and that is why it is very important to keep retirement in mind.

If you have a pension available at your retirement, it is important to consider whether that is enough for the lifestyle you want to live in?

Keeping this in mind, it is important that you:

• Clarify your financial goals (and the amount of money it takes to achieve those goals).
• Choose a time frame to achieve those goals
• Once you have a goal and a time limit, you can calculate whether you need to set sufficient funds to achieve your goal, either per month or per year (taking into account the expected rate of return ) How much money is required to be invested.
• In many cases, long-term goals are easy to achieve. The reason for this is the power of compounding (which we discussed earlier). The power of compounding appears by a few percentage points after a long time. Therefore, both extended time and high rate of return can potentially give you similar results. This is what makes investing interesting and appropriate for different goals.

How much can you invest?

Vladimir Tingue says being an entrepreneur has allowed me to create a career that didn’t even exist before I made it up.

Everyone has their own starting point. Depending on one’s current spending habits, one might find 5–10% impossible.

So to understand a good starting point, start tracking your current expenses so that you know where you can make the cut. Do you have subscriptions that you never use? Are you eating outside instead of cooking at home? Do you have a habit of buying things you don’t need?

Identifying these habits and cutting down on them can help release the funds you need to reach your investment goals.

How much investment risk are you willing to accept?

Risk tolerance, or risk-taking ability, is a very important point when discussing how to invest. It usually depends on factors such as your current income, savings, expenses, financial obligations (like paying off a mortgage), whether or not you have financial dependents. And do you have appropriate life and health insurance?

An unmarried man who works full-time, and is saving money to buy a home, will have higher risk tolerance. They will reduce expenses, and they will invest the remaining income. Because they do not have any responsibility, those markets will be willing to take more risk and put their money in Dao.

Conversely, if there is someone who is the sole earner of his family he will have a lot of financial obligations. This means that their risk tolerance will be very low. For them, this is a very big issue. If something goes wrong, not only do they have no additional income, but the lives of many people are dependent on their income. For this reason, they will probably invest a lesser amount so that they will always have some emergency cash in hand.

Investment deadlines can also affect risk tolerance, as we discussed earlier. While financial markets grow over time, short term shortages and accidents occur. If you have a few years before you need the funds, you can expose your portfolio to high-risk, high-return investment options. Younger generations who have several decades before reaching their retirement may probably take more risks. A high-risk, high-return investment strategy would involve stocks and crypto CFDs.

As you age, your strategy may change to lower risk, work return profile. The currency and commodity markets are highly liquid and are more suitable for traders between the ages of 30 and 40 years. This can also be a time when you choose to reduce your stock holdings. Remember, there is no set formula here; It all depends on your current finances, your long term financial goals and your risk tolerance.

A person who is investing with a time frame of 30 years can wait and enjoy cumulative gains over time. And someone who is investing with a target of 5 years, might want to choose a ‘safe’ investment. Both of these cannot be expected to increase in value equally.

If you are concerned about investment risk, one of the best ways to test trading is to open a demo trading account. With a demo account, you can use live market data and use real trading and investment platforms risk-free. Instead of investing your own money, you will have a virtual account balance to see how you invest and how it grows!