Personl Wealth Essay Example | Topics and Well Written Essays - 2750 words

Personl Wealth - Essay Example > Creating personal wealth is not necessarily a complex process if one establishes the primary objectives like future personal commitments and desired retirement benefits. Thereafter, it is important to identify suitable financial vehicles that align current and future market factors with the expected outcomes besides evaluating the risk accompanying each investment opportunity. I feel that the easiest way to generate personal wealth that can take care of my retirement needs would be to invest a percentage (say 5%-10%) of my monthly salary in an reputed and long-running pension fund that has a good track record of performance. Otherwise, it is also useful to invest a part of monthly income in long-term certificates of deposit (CDs) that offer a stable return during the investment period. Direct investment in low-risk bonds or equity markets is also possible although this would demand extensive knowledge of the relevant markets. The option of investing in real estate must also be cons idered. Investing in this sector is relatively simple, straightforward and perhaps most practical n terms of building some personal wealth. While real estate markets do have their own inherent risks (like the recent housing market crash due to the financial crisis in the United States), (include author) argues that the market has the best capability to appreciate over the years and yield good returns over the years. As mentioned earlier, investing personal savings in the financial markets is more risky and requires active involvement of the investor through trading, purchasing options to hedge the risk etc., which require knowledge and experience to generate results besides resulting in further expenditures (broker commissions, minimum margins etc.). The best way to invest in these markets is to obtain the services of a brokerage firm that has a good history of providing positive, stable and cost-effective returns to its customers. Project Resources 1. Bold (2009). The Bold Truth Ab out Investing: Ten Commandments for Building Personal Wealth. New York: Ten Speed Press. Mutual Funds expert, Adam Bold, discusses a ten step approach to personal finance that help both experienced and novice investors understand the financial markets and take effective stock of their investments. This book is focused primarily on investing in mutual funds. 2. Hallman (2009). Private Wealth Management: The Complete Reference for the Personal Financial Planner. Chicago: McGraw Hill. This book discusses various strategies and techniques associated with personal finance that deal with some of the latest challenges facing investors. Chapters on cash flow analysis, interest accumulation, common & alternative investments and asset protection plan shed simple but important insights into some of the areas the beginner investors must understand in order to realize profitable returns. 3. Horan (2008). Private Wealth: Wealth Management in Practice. Chicago: John Wiley. Developed by the CFA ins titute, this book provides latest information on asset allocation, taxation, lifecycle modeling and investment management for small investors. This book considers various human parameters that allow investors to devise customized investment plans and strategies. 4. Reuvid (2006). Handbook of personal wealth management. New York: Kogan Page. This book targets high net-worth individuals who seek to maximize returns from their wealth and advises them about personal and commercial investment products. Besides discussing many such