Enjoy this yet another guest post from Bill Achola. This post is little less controversial than earlier post from Bill, reasons why I’ll not leave my Fortunes to my kids, this is about investment choices, enjoy the post!
Are you too old to invest? Or is there any age that is too old for investing money?
I believe not.
Investing and building your wealth does not recognize any age limits but it recognize the level of doing it.
Well, in this blog post we’ll talk how you can invest 50k for your Retirement into Individual Account and how you can invest in companies before they go fully into IPO and I can guarantee that once you implement what we’ll talk about, the sky will be the limit.
But before you decide on investing for your retirement, there’re some questions that you need to ask yourself otherwise you’ll end up with unstable investment.
- Why do I need to invest?
- Who do I need a safe retirement?
- How will I achieve my dreams?
- How much money do I need?
- Why do I need to invest for long-term?
These are some of the powerful objective questions that you need to write them down and act on them in a safe way.
Why Invest for Retirement
Well, life is a challenging process and there are a lot of things that happens within our family sector and as an individual. If you’re a parent basically the major reason to invest is to pay for your home mortgage or to pay for your kid’s college
For an individual it might be for paying student loan or to save for a wedding.
These are factors that drive our financial decision to invest. There’s no bad thing like retiring without solid investment, it’s just like being a beggar on the street.
Planning Takes Time.
If you take your time and plan it well, I can assure you that you’ll start to see the real benefits of investing. Planning is very critical to your success and it’s amazing how many people do not plan out how they are going to attack something.
Your First Option
Once you’ve decided on investing whatever amount you’ve, your first option would be to open an individual retirement account.
IRA is a powerful investment account that can really safeguard your investment portfolio and the reason why am advocating for IRA it’s because it’s a safe investment that can make you grow your 50k and beyond. As I said earlier IRA and any other investment portfolio do not recognize age or your profession, you just need to open an IRA.
Time to Roll
The second option that I really care about and I really advocating, is that you must fully fund your individual retirement account and select the DRIP Plan Option. PERIOD.
Why DRIP Plan Option
- It has low rate of commissions
- Its long-term investment
- It’s one of the best strategies on Wall Street
- Its highly recommended by top brokers
- They are inexpensive and easy to start.
If you’re a new investor and you want to invest in the IRA, I’d vouch that you go with Drip Plan Option for better reliability and long-term profits.
Alternatively, you can Call Fidelity Investments and they will guide you on how to invest the 50k within your individual retirement account.
What Next after Selecting your Option?
The third step that I’d advise you to is to purchase stock shares within you’re your DRIP Plan Option. This is one of the techniques that are being used by many Blue Chip companies to invest the money.
You can purchase shares of Bank of America with as little as 1 share in most cases unlike investing directly without Drip Plan Option. If you’re a beginner, this option will really benefit you a lot.
What about if the Market is Down?
When you realize that the market is unfavorable, kindly do not abandon your investment task just because the price of the funds are lower. Make sure you plan your investment better so as to avoid challenges when investing in future and I can assure you that you can get most return on my money.
Let’s Turn the Engine
Have you ever tried investing in IPO (Initial Public Offer)?
Yes or no.
I want to talk about how you can invest in a company before it goes for an IPO. Most people invest in companies after it has been fully mandated for an IPO, but for you to profit better and invest wisely I’d advise you to invest in the Pre-IPO Investing.
Here’s my Secret
Monitor Your Investments
Michael Egan is a wealthy man. But he should be wealthier. Egan founded and then sold Alamo Rent-a-Car for a reported $625 million. He then made a great PRE-IPO investment, purchasing a 61% equity stake in theglobe.com, which subsequently went public and then, at one point, rose in value to over 10 times its IPO price.
However, his successes made him overconfident; and he quickly starting investing in several early stage companies. Moreover, he didn’t focus on these companies and failed to invest time meeting with the management teams and monitoring them. Virtually all of these unmonitored investments failed.
Private companies do not undergo the same scrutiny that public companies do. There are no quarterly reports. There are no watchdogs.
In addition, the real progress of small, closely-held companies is extremely difficult to monitor and measure. Communications between private company management and their investors too often is mostly of a promotional form — with investors rarely getting a balanced review of the growth and profitability challenges of the companies.
Therefore, investors in these companies must keep in contact with the CEOs to understand their progress and ensure that their focus does not veer off course. They must set specific milestones and follow-up if the companies do not achieve them.
Over to You.
If you follow what we’ve discussed both in investing in Individual Retirement Account and Pre-IPO, you’ll defiantly seed results, NO DOUBT ABOUT. If you feel the post has helped you, kindly share the content to your social network, blogs and forums and lastly leave your comments below for intensive discussion.
About the Author: If you need more tips on investing and making more money, then kindly connect with Bill Achola via Google Plus and you’ll your life with Him.