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.