Investment Tips 1 - Diversify your investments. Bascially, don't put all of your eggs in one basket. By spreading out your investments, you protect yourself in case one investment doesn't work out. Don't put more than five percent of your assets into an unproven or unregulated investment.

Investment Tips 2 - INVEST IN STOCKS FIRST! Overtime, stocks out perform Bonds, CDs (and other cash investments) and Real Estate. Stocks have an average return of about 10% yearly, where the other investments return on average 5-7% per year.

Investment Tips 3 - Tax Advantages of Stocks: If you hold a stock for more than a year, your profits (when you choose to sell) are taxed at long-term capital gains rate of 15% instead of your standard tax rate. Money you make from interest in a savings account or CD is taxed at your regular tax rate, which can be as high as 35%.

Investment Tips 4 - Risk of Stocks: As we are all acutely aware right now, the stock market can vary wildly. If you invest in a stock, your investment can literally go to zero if that company goes out of business. However, if you are properly diversified in your stock portfolio, the risks associated with the stock market are not that bad. Over the long run, the stock market will go back up. Nevertheless, the risks with stocks will always be higher than a guaranteed return with a CD or government treasury.

Investment Tips 5 - To be a true investor, you invest for the long term and you don’t panic when markets fall. If you want to invest for the short term, you should use a bank term deposit or a money market account rather than an investment in the equity markets.

Gifts for Bankers

Investment Tips 6 - Investing on a regular basis is a good strategy in volatile markets, even though during these times you may not think so. If markets rise, your investment improves in value. If markets fall, you get more for your money, and you’ll benefit when markets go up again. This is known as rand-cost averaging.

Investment Tips 7 - Always have an emergency cash fund. Ideally, the fund should be equal to three months’ income. This way you will not have to cash in investments at an inopportune time or take out a high-interest loan if you are suddenly landed with a major expense.

Investment Tips 8 - The best investment you can make is to repay debt. Interest rates are usually high. By paying off debt, you get one of the best returns available, tax-free.

Investment Tips 9 - SECOND OPINIONS! - When you are advised to invest in something, always do a bit of research of your own. Get a second opinion and use the internet.

Investment Tips 10 - If you are trading shares for short-term gain, you are not an investor, you’re a gambler. Don’t be surprised when you make a loss.

Investment Tips 11 - It is "time in the market" and not "timing the market" that counts. Don’t try to time markets or sectors of markets. Few people get rich from doing this and most have lost money. The best way to get rich is to take time to select an investment product that has properly diversified underlying investments, and then to stick with it for the long term. Most people make the basic error of buying into an investment when it is at the peak of its performance and then selling out when its value has dropped.

Investment Tips 12 - If an investment product is too complicated to understand, avoid it. It does not mean you are stupid. It simply means that the product provider and/or financial adviser are trying to baffle you.

Investment Tips 13 - In a down economy, put your money in a CD for 6 months instead of a savings account. This way you can lock it in. In a savings account the interest can fluctuate.

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