Investment 101 for Young Professionals


Thinking of future revenue that does not rely on one’s career should be started as earliest as possible. Investment works like a tree. When you plant the tree in the right place with right care, you can reap what you sow in the form of profits.

The ideal age for a professional to start investing is as soon as in his/her 20s. Mistakes and unfortunate events of investment show its impacts after approximately five years. Now, let us discuss an imagined case, where a 25 years old office worker decides to invest in a startup. Five years later, the start-up goes bankrupt, but because the person is in his/her 30, which is still a productive age, he/she has a second chance.

In this writing, we are going to learn what are the fundamental factors that a young professional should consider before deciding to invest his/her capital.

Stock-market can be a safe playground

Stock marketStock market investment can be safe and assuring. But of course, it depends on whether you know how the stock market works and the risk of your goal. Nothing is safe when you are shooting blind.

There are two risks that you must understand before buying a stock. First, it is the systematic risk. This risk affects the whole stock market system. When the whole market is down, yours is also down. But there is the recovery cycle to this disheartening economy phenomenon. The second risk is the unsystematic risk, which is heavily affected by the performance of the company you are investing in.

The great depression was the example of systematic risk, while the low sale of a start-up product is the example of unsystematic risk. Both risks can be calculated, and forethought, but those skills require clever reading and profiling.

Investing in property is definitely a must

propertyOnce you have made enough money to apply for a mortgage, do it. And if you do not have any plans to create a family anytime soon, prefer the commercial property instead of the private one.

Commercial property can bring you passive income, especially when it is in a strategic location with high traffic of visitors. You do not need to be bothered with retirement plan if you have enough commercial property.

But to claim for firm legal ownership, you might need more than a healthy deal. Consider hiring an estate attorney, whose law practice is specialized in real estate business. A property agent can only provide you with fast documents and easy negotiation, but they cannot handle the legal risks that might appear in the future.

An estate attorney is also the best partner to consult your property investment plan because the commercial tax can be quite a trouble.
Be an open mind investor and take all of the nourishing information you can get, especially the legal-related information, and do not hesitate when the chance and the momentum is good.

Never rely heavily on one investment

Locked InvestmentAllocating all the budgets you have on one form of investment seems to show determination and dedication. But in reality, it is very dangerous. No credible financial gurus have ever suggested their clients to invest just in one place. Because once it fails, you will lose everything.

Therefore, playing on the stock market while still having passive income from the commercial property sounds like the wisest way to invest.