The purpose of this investment can be a very simple thing, but it could also very grandiose. money we invest is not stagnant, but continues to flourish.
Well, so your investment is more focused, financial planners often recommend that you set your investment goals before you actually invest. The investment objective must be clearly formulated, including the period of time. For example: "I want to buy a house worth USD 50 million in five years." If the investment objectives is clear, you just find the most appropriate investment instruments to achieve the investment objective.
In addition to its existing investment objectives, secondly, we also need money to invest because we are always exposed to inflation. As long as there is inflation or rising prices, value for money will always degenerate. Well, for our money is not eroded the value of inflation, we must make an investment.
Ideally, of course, we must look for an investment instrument that can provide higher returns than inflation. That way, the value of our money will always grow.
Therefore, experts in the bank deposit rate does not enter the category of investment. Because, after tax, deposit interest is generally not able to cover inflation. This is different from stocks, bonds, mutual funds, or properties that often can beat inflation.
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