Smart Ways to Achieve Investment Objective

Who does not want to invest? Almost everyone would want to reap the benefits of the investment, which meet the various needs in the future. 

Financial need who want financed it, commonly referred to as an investment destination. And each person has a unique investment objectives. Examples of the many so-called investment objectives such as children's education fund. Another popular investment purposes such as buying a house. 

Usually, set a goal of this investment is not a difficult task. Most people would want to be when asked his wish in the future. But not all can design, let alone run a plan to achieve its investment objectives. 

Well, the first step to make sure you can achieve the investment objective is to conduct a self-assessment. The purpose of this self-assessment is a measure of how prepared you to be an investor. Make no mistake, the readiness to invest is not determined by the value of the funds that you have today. 

Rudiyanto, Head of Operations & Business Development of PT Panin Asset Management said, the size of readiness to become an investor is financially sound. Definition financially healthy it is to have a positive cash flow. 

Furthermore, how healthy we are financially able to be measured by using various financial ratios. Someone who does a financial check-up means to compare the ratio of which he obtained with the average value of this ratio. 

If the ratio of people that have the same, or even better, than the standard ratio, he recently called "financially healthy" and ready to become an investor. 

There are four commonly used measuring tools in the financial check-up, the percentage of consumer debt, mortgage ratio, the ratio of emergency funds and cost to income ratio. 

What is meant here include consumer debt credit card debt and unsecured loans. Standard percentage of consumer debt is 0 per cent. This means that, before investing, you are required to pay off all existing consumer debt. For whatever reason, have consumer debt makes people not financially sound, and does not deserve to be an investor. 

There are calculations that justify why you should be free of consumer debt can enjoy the sweetness of the fruit before investing. "High yield investment, say 20 percent to 25 percent, does not matter anymore, if you are still exposed to interest consumer debt, which is between 30 percent to 40 percent," said Lisa Soemarto, independent financial planners of Akbar's Financial Check Up (AFC ). 

The ratio is the total monthly mortgage payments divided by total fixed income every month. Installments that should be included in this ratio as installment purchase of a home, apartment, car or motorcycle. To be perceived as financially healthy, a person must have a high ratio of the monthly installment of 30 percent. 

Emergency fund ratio is the total liquid assets divided by total fixed cost per month. Total liquid assets such as cash, savings, time deposits, demand deposits and money market mutual funds. 

Total monthly fixed costs are all expenses that are fixed every month as rent, electricity, food and drink, children's school fees, transportation costs and other fixed costs that can not be saved anymore. The standard ratio is 6 times of emergency funds for their single status, and 12 times for those who are married. 

Finally, the ratio of cost to income derived from dividing the total monthly fixed costs with fixed monthly revenue. The standard ratio is less than 1 means that a healthy lifestyle is a lifestyle in which all expenditures that are fixed can be covered from the revenues that are also fixed. 

Well, if this ratio is more than 1, it means you need to adjust your lifestyle. There is a way that can be taken, namely to increase fixed income or expenses that are lower still. 

The concept of time 

If the check-up results show you are already financially sound, means you are able to get into the design phase of the investment plan. 

Rudiyanto suggests, the use of the SMART concept when developing investment plans. SMART is an acronym for Specific, Measurable, Attainable, Realistic, Time Bound popular as general management concepts to achieve a goal. 

In investment planning, which is intended to establish the specific investment objectives clear. For example, pay for children's education in universities in the country, in the course of medicine. 

Means the stage is being measurable achievement objectives can be quantified. For example, there must be a determination of the value to be invested per period, such as per month. Alternatively, there is a target value at a certain time. 

Attainable and realistic relate to one another. Not much different from the literal meaning, attainable, requires us to develop a plan that can be achieved. So, setting goals in the future inevitably have adapted to the conditions in the present. 

Realistic concept suggests the same thing. He can be used when we chose investment instruments to achieve the goal. Realistically could also mean you have to understand a little more about the concept of the Time Value of Money, aka the time value of money, current investment plan. The concept of time value of money was divided into the present value or the value of money in the present, and the future value alias value in the future. 

The present value in everyday life is useful when we calculate the load installment loans. Future Value being suitable for calculating the value of assets in the future. For example, we want to know how much we value the balance of savings deposits, after saving a few dollars over the years. 

Being, time bound requires that we include the time dimension in investment planning. When will the goal be reached? Of course, it can not be separated from the well when rolling investment plan. "The timing is necessary that you have the motivation," said Lisa. 

Investment plan that you have worked on it carefully, will also be in vain if you are not consistent to run it. Well, the easiest strategy to remain focused in achieving the investment objective is to do cost averaging. Strategy that puts money in the same value, consistently each period, say, per month, especially suitable for those who choose mutual funds as an investment instrument.

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