New Year Resolution # 4: Invest wherein expenses are low

Trading costs such as commissions, fees, and taxes should be taken into consideration before investing. These expenses are likely to eat up a major amount from your returns. This happens due to the lesser rate of inflation. With stocks and bonds, the risk of losing some or all of your savings is higher and you end up losing your returns too. This can be easily avoided by making a wise choice.

New Year Resolution # 5: Manage risks related to investments

Every investment platform bears some risks. In some investments, risks may or may not be major, but having a clear perspective of the various important risks is vital for taking calculated risks. Sometimes it involves the possibility of getting lower returns than expected, or not receiving any return at all, or even not getting your invested amount back. There are different types of investments such as Business risk, liquidity risk, inflation risk, political risk and many more. It is important to carefully review and understand of each of its kind and act accordingly.

New Year Resolution # 6: You are never too cool for school

Before investing it is good to do some research and consult an expert. Just because you have a lot of money to venture into a business or in other ground, it doesn’t mean that you should just start investing. Take your time and do some research, read some books, blogs, websites, and forums and get to know what investors do to get successful.

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