Online Stock Trading Tips

You are reading this post because you want to protect your asset value from inflation. OK let’s suggest the best ways. The very first step is to closely examine the trend of your country inflation rate. For example, in the Philippines; the inflation rate is around 4%.

The next step is to examine the current rate in each of your investments. For example, your bank savings accounts, your money invested in government bonds, etc. are considered your investment vehicles. Each of these investment vehicles has its own rate of return. The rate of return for most investments is fixed. For example, bank has around 3% maximum return for its time deposit account and less than 1% for most ordinary savings account. Government bonds has around 5% to 6% rate of return while real estate rate of return changes.

The third step is to check what investments are affected severely by inflation. This is very simple to check, if the rate of return is equal or less than the inflation rate then the value of your investment will decrease over time. If the rate of return of your investment is just 0.5% to 1% over the current inflation rate, the value of your investment will not grow and will simply break even. The primary reasons why 0.5% to 1% above inflation is still not considered to be good rate of return are taxes imposed in your profits. You still need to pay taxes on the profit of your investments. After paying the taxes, there is no net return left that you can use.

The fourth step is to determine where you can transfer those investments affected severely by inflation so that you can profit substantially from your investments. Here are the best alternatives that worth trying:
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Almost everyone is planning to be rich someday. Yet there are only VERY few that manage to become millionaires before the age of 30 despite a LOT of people on that age bracket got high paying jobs and income. Where the problem does lies? The root cause is identifying “needs” and “wants” in life. IT HAS NOTHING TO DO WITH HOW MUCH YOU EARN. One of the biggest misconceptions of being rich is associating wealth with material things, the physical things that you want your neighbours, friends and relatives could see in your home. In fact these material things are your BIGGEST ENEMY on your way to richness.

It is true that the truly rich are buying assets while the rest are buying liabilities. “Assets” are type of things you can possess that can produce income ON THEIR OWN without further and steady manipulation. Meanwhile “liabilities” are type of things that just cost you money if you owned it. It does not produce income DIRECTLY by itself. Identifying what are assets and liabilities helps everyone decide what SHOULD BE their needs and wants in their path to richness. Since assets can produce money on their own without further exerting effort, these things should be put on your NEEDS list. Below are great examples of assets that any person with reasonable income could acquire:
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