5 Understanding Before Starting an Investment

5 Understanding Before Starting an Investment,- Investment is a very important thing for every individual with it we have a 'guarantee' in the future but we must remember that an investment is passive income means we can not immediately
receive instant results. Investment also has a big enough risk because we have to choose which one is best for us in the future so as not to fail. some types of investment among others are short, medium and long term investment. But now
people prefer to think long term investments in the hope that their old days can be used for many things such as children's education, business opening and so on. 

As already mentioned above this investment also has this risk is something that will always exist in every way an investment.

Therefore, to avoid the risk of excess need to know the basic principles of investment. For those of you who want to start investing must know a sentence "hard first just get results" so If we decide to invest means we must understand that some percent of the money we receive today is money for the next days. Also, Invest your funds into something you understand. In this investment you as a person who will invest your money would be afraid if your money disappeared in vain because you wrongly invest your money into something that you do not understand that can cause failure therefore make sure you understand and understand where your money will invested. There are also things you should be aware of and understand before starting an investment to get the best results among others.

1# Investment Objective

expecting a good profit in the future for our second investment as well as to curb inflation. If we do not invest our money / funds, then the value of our money will be smaller. Therefore to make an investment everyone would expect a good result of the inflation is running. 
So the conclusion is that the main purpose of investment is to earn profits in the future and anticipate inflationary pressures.

2# Investment Term

When talking about the length of time in the investment there are two long-term and short-term investments. If we want to start investing to buy a land next year then we can invest in the short term. While want to try to prepare for the needs in the old days later then we do is an investment in the long term. For the short term can use investments such as deposits because these investments provide investment returns in the short term (less than 2 years). To expect better return on investment, then use long-term investments like the stock market.

3# Risk

"How can we know tomorrow the price of gold rises or falls, next week the price of gold rises or falls, next month the price of gold will rise or fall?" Meaning never know what we will gain or even a loss at the time of investment. So this is the intended risk, the greater the profit we want to achieve the greater the risk we will receive.

4# Liquidity

Liquidity is a convenience that can be converted into cash or easy to refinance. Liquidity should be in line with the objectives of an investment. If the purpose of your investment is to purchase a motorcycle then this liquidity is necessary because this liquidity is used for short-term investments. For example, deposits are more easily monetized or liquidated than land or property investments. Why is it like that? Because the value of financial assets more easily measured in accordance with the value already in the securities. But the value on real assets will be much more difficult to measure because people will bid on real assets sold so that there will be bargaining to find the right price.

5# Tax

Tax is a policy that needs to be considered in starting a government-regulated investment. The result of the investment we plant will be taxed not from the point but from the results we have invested.

The tax for investment in Indonesia is also approximately 20%. Doing Calculations and looking at the size of a tax before starting investment is the right thing. This means "an investor must know and think in advance how the tax from the profits that can be obtained from the investment and in comparison of the taxes that will be imposed on the investment results. 
This calculation will help an investor to think about the time of his investment whether the short-term or long term after seeing the net investment results after tax.