You might have heard people sing their praises about investing, but you don’t tend to hear so much about the negatives that can follow it. Maybe not even the risks, but the factors that are involved that aren’t generally discussed. Investing is a really rewarding path to go down, there’s absolutely no denying that. But, what people don’t tell you about investing, is the information that you need to know the most. Investing is arguably one of the best and worst things that you can do for your finances, and we want to make sure it’s the best, rather than the later. If you’re about to head down the route of investing, follow this guide to find out some of the things that you might not already know.
The Tax On Returns
So, you’ve invested thousands in whatever your investment idea was. You’ve waited for what might feel like years to try and get a return, and finally!!! One comes through. But, did you ever stop and think about the tax on that return. All of the sudden the tax-free money you invested, becomes taxed, and if your return was fruitful, you best be prepared to get taxed a lot! So, what you need to do is check out things such as the betterment returns by year, to see if different investment companies can get you a higher return, even after tax. Because we know for a fact that a lot of investment companies you might go through (if you have chosen to do it that way) will have failed to mention that the glorious return they promise will be taxed. But, such is life, and you can’t escape the fact that you will have tax to pay. All you can do is try and make the most money so that the tax you pay doesn’t seem like such a bite on the bum!
The Stress Of It All
Your vision might be clouded at the minute at the possibility of making endless money. But, outside of investing, you have a life to lead. You have mouths to feed, you have your business, and soon your life will be added with more stress. You won’t realise how much pressure it’ll put on you until you actually start doing it, so we highly advise that you weigh up the risk here. If things are going good, a lot of that stress will slip away. But, it’s when things start going slightly bad that you have to start worrying.
It’s obviously going to get addicting. If you’re making so much money without having to hardly lift a finger, then yes, it’s going to get addicting. Things like Forex trading are the worst. Most of it is done on your phone, so can, therefore, be done from anywhere in the world. The result of which can lead to you being glued to your phone, and it can go as far as to actually rule your life! Try and stick to investment options that are really hands-off, and ones where a company perhaps does it for you. That way you won’t be so addicted!