Personal Finance - A Quick Introduction to Three Money Generating Instruments

Most people when asked today are either floundering in debt or asset rich and cash poor. This is because most of the funds and the plans that people invest in are usually capital appreciation instruments. This means you money due to the difference in the buying and selling price of the instrument can make. So while you are invested in instruments, not much to do except dividends, either once or twice a year spent.
This article will also introduce you to three common cash-generating tools that can help such cash for your investment portfolio to generate.
REITs also known as Real Estate Investment Trusts are basically instruments that allow individuals to get out of the rental income from the premises after the management companies deduct their operating costs to manage the properties. A stream of income Yields may vary between classes of objects and you buy the shares of REITs and part of the rental income. Spend time looking at the return of the REIT and its properties portfolio to decide whether the REIT is for you to invest in. Avoid REITs with a high management fees since its not in your best interest.
Forex Managed Accounts are another income stream if you are not in the Forex Trading yourself. Some banks and large financial institutions have Forex traders trading on your behalf and they can give you every month certain fixed monthly returns. Look for companies that have good money management strategies and look before investing in these companies. Return to some of their But that said in Forex risk comes with great reward so consider Forex Managed Accounts a possible alternative investment.
Oil Trusts work as real estate investment trusts, except that the amount you get depends on the price of oil. You are basically sharing the oil proceeds with the oilfield and every month they calculate the price of oil sold and you are a part of that. This means that you will earn in a month in which the oil price is high. More So the best time to invest in these more exotic investments if the price of oil is low and you can buy at a lower price. More shares of the oil field
Finally, are not all gloom and invest in the country. Spend some time searching and shopping around for cash-generating investment to balance your investment money from so you will not end asset rich and income poor. Even better, take your capital gained from your other instruments and insert it into real good of your own and generate even more money to spend each month. Take massive action today and achieve your financial future sooner rather than later!
Copyright © 2006 Joel Teo. All rights reserved. (You can use this product with the following author information with live links only publish in its entirety.)

No comments:

Post a Comment