Penny Wise, Pound Foolish!!!
Yes, that’s true. If you’ve been thinking that investing pennies (via investment banking) would fetch pound and make you a wise investor, it’s too late now.
Rather the trends have been changing over last decade, which now surely makes “Penny Wise” as TRUE. Instead of investing Pound at a place considering it to be safe. Even senior investment banking advisors have started to advise to invest in small amounts in different sources instead of investing in a single best performing option.
Market keeps fluctuating all the time. As per the studies lately, market is mostly unpredictable and in no way can anyone assure you of as how much exact returns you will get, but they always use past 6 to 12 months data of company’s growth and the dividends declared in last 2 to 3 quarters.
The best advise for investment banking is to listen to all options and wait for next quarterly dividend to get released. You must analyze atleast past 10 quarterly dividend declarations and only buy / invest after the quarterly dividend declaration and release to its investors. A very basic reason and trend observed is that during that period the NAV (Net Asset Value) of that company is at lowest and is thus the best time o buy / invest in it.
Understanding The NAV, What is NAV & How Is It Calculated in Investment Banking Process?
You must also invest making sure that the returns should be tax free. This will help when you start getting the returns, you should not have any botheration of filing it in your tax returns.
Once you have decided in investing in one or more companies, you must study their past performance. You should be prepared to continue your investment banking strategy for long term. By saying long term, we recommend you to consider a minimum tenure of 3 to 5 years. This tenure, of course, can be extended to any number based upon your regular income and earnings.
Practically, this could be a wise investment. Once it starts giving your returns to fund your monthly basic cost of living. For example if your monthly living expenses are $1000, you should wait till your quarterly reach approx $3000. You must not take this figure to be a hypothetical, but is extremely practical in long term. Starting to get such returns, you must initially opt in for dividend re-investment, this helps you to increase your basic funding amount and automatically buy more units over the period of time until they reach your goal of $3000 per quarter.
For better results and smart investment banking, you should always consult the investment advisors from at-least 2 to 3 banks. This long term investment could be over and above & also act as your pension funds. You will receive in long term to sustain your living without depending on anyone or any job.
To make it work better, you must plan this 2 ways, one for yourself and other for your spouse. The individual returns will help you stay independent. A collective returns will not only help you get the basic earnings to live. This will also give additional benefits of income that you can use to plan your vacations.