Overview of the Investments Sector
Businesses that offer financial investments provide products and services for
investment or money deposits. Investments cover every asset class (from houses,
to shares or savings). Investing is a risky procedure and that a return on one’s
money is not a foregone conclusion. There are complex terminology and regulatory
structures. Always seek professional independent financial advice. The most
common types of investments are as follows...
Any consistent payment that has a fixed total amount each year is known as an
Annuity. There are different forms of Annuities. A life annuity is taken
out to provide guaranteed payments for the duration of a person’s life. An
annuity that is infinite is called perpetuity. Tax Sheltered Investments
are different ways in which a taxable income can be reduced such as an offshore
company. Many people question the legality of a tax shelter whilst others
embrace them for obvious reasons!
Providing for loved ones and dependants, a person may decide to contact a
specialist provider regarding Retired Annuities and Pension or
Individual Retirement Accounts. These products help to provide an investor
with a sufficient retirement income and/or funeral plan. An annuity allows for a
person to change their pension into a regular form of income that is sufficient
enough for them to live on. The advantage of an annuity is that it guarantees
your income and will not be affected by fluctuations within the stock market,
but the negative is that once you have bought an annuity, you cannot surrender
it or change it for a better deal. That is why it is so important to plan
carefully and seek expert advice within this field.
A good way to find a reputable advisor is to browse an online business directory
to find business listings of IFA agents and
companies. These may offer local contacts, information on services and
reviews and testimonials relating to their services. Tied Agents are tied
to a service or company and enter into an agreement. This agreement specifies
exclusivity with regards to particular products that they either advise upon or
sell such as particular investments and commodities. They are linked to a
specific provider and cannot offer independent advice.
Real Estate Investments and Real Estate Investment Trusts or REITs
are a form of security that can be bought and sold in the same way as stocks and
shares on the stock market. For investors wishing to get a huge return on their
initial purchase, they should consider a type of REIT. There are Equity REITs
and potential clients can expect to earn a regular income from renting their
properties whereas a Mortgage REIT are primarily investment and owner-based;
whereupon investors and companies lend money in order for their clients to
obtain mortgages on properties and any revenue earned comes directly from the
interest of the mortgage loan.
Commercial Real Estate Financing specialists can offer a
personalised service to their
clients relating to every aspect of Commercial property, lending and finance.
When someone acquires a commercial mortgage is usually secured by commercial
property; this could be a shopping development, a housing complex or office
building. From June 2013, figures show that there were approximately $3.1
trillion outstanding commercial and multifamily mortgages in the U.S and half of
these were held by banks.
An Investment Guide is an excellent way to source what could be
beneficial to a person, regarding finance and making investments as well as
advising of any potential risks. Research and Analysis of the stock
market as well as Stocks and Bonds and Money Market Funds (these
are typical ‘safe investment’ funds that are low-risk but also low-return
investments.) For serious investors who are not afraid of risk-taking, then they
might consider Commodities and Futures as a way of making huge returns
but invariably also losing vast sums of money. For instance, someone wants to
deal in Minerals or Oil and Gas Investments and decides to buy x
amount of barrels, because of the high fluctuations within this industry, even a
small difference in commodity price could prove disastrous.
Specialists, who can be engaged to offer their services within the Investment
industry, can be sourced on an online business directory by looking under
Online Brokers and Securities Trading. It is important that a
potential client or investor checks out the market properly before enlisting the
services of an online trading platform. They need to think about costs involved
and the type of investments and commodities they deal in as this can incur extra
costs and fees for adding different specifications to the initial service they
offer. For example, derivatives are complicated trade products and require
costly warrants, whereas equity trades are relatively simple types of trade.
Securities are any type of financial instrument that equates to a stock or bond.
It represents financial value and may be bought or sold accordingly.
SRI or Socially Responsible Investments are any form of eco-conscious
investing relating to sustainable or ethical investment. They aim to promote
healthy and moral investments that are not damaging to the environment and don’t
affect livelihoods whilst avoiding any businesses that deal in immoral practises
or deal in products that are harmful to living things and the environment.