We would all like to make more money in the investment market and increase our net worth. Here is some investment advice, four tips to improve your investments in 2012.
Step 1: Focus on your goals. It is always important to have a set of clearly defined goals for investments so you know where you are going and when you get there. You should write down your goal and set a timeline to achieve it. If you are looking for a long term investment with solid returns then something called Tax Liens could be interesting to you. If you have a shorter term strategy and require immediate returns then other investments should be looked at. It is always good to remember that shorter term and high return almost always equate with high risk.
Tax Lien investing allows for some very handsome returns without the normally associated high risks. Once you have your investment goals in place you can chose the correct investment strategy for you.
Step 2: Map out Your Investment Strategy. Once you know what your goal is and you’ve decided on your investment vehicle, then it’s helpful to map out a strategy. What exactly will you invest in? Where will you invest? How often will you need to add to your investment?
If (like me) part of your investment strategy includes tax lien then you will need to decide which state or states you invest in. Most states have set times when you can invest and you can use this information along with the date of maturity to invest, collect your money and re-invest the subsequent profits.
Step 3: Stick to your strategy. It is important that once you have decided on your strategy that you stick to it. Many people get caught up in the latest investment craze or even get bored with their current investment strategy. Dont do this as you need to stick to your strategy until you have reached your goals.
If you dont stick with your investment strategy then you will find yourself investing in the latest get rich quick investment scheme. Remember if something seems to good to be true it most probably is. If you have worked on an investment strategy then you need to give it some time to show the results that you expect. Give your strategy a reasonable amount of time to get the returns that you have anticipated.
Step 4: Reinvest Your Profits.When I had tax liens redeem there was always something to spend the money on, bills, college tuition for one of my kids, or taxes to pay on real estate. But for your money to grow, you need to re-invest your profit. Spend the capital investment if you need to, but take your profit and reinvest it as soon as you have the opportunity.
Reinvesting returns with tax liens is easy as you can do this through a self directed IRA and this gives you investments with before tax money. If you do this you can be sure that all the returns will be re-invested and you will not be tempted to spend the profits on some other item.