How_Money_Works_-_The_Facts_Visually_Explained

162 163 PERSONAL FINANCE Investments for income PERSONAL FINANCE Investments for income “ Risk comes from not knowing what you’r ...

How it works Investors buy shares for two main reasons. The first is in anticipation of the share price going up in value, meani ...

165164 Can a company afford the dividends it promises? By comparing a company’s profit with the amount it pays in dividends over ...

Earning income from savings Putting money into savings accounts and fixed-term deposits is low risk, making them safer options f ...

166 167 PERSONAL FINANCE Investments for income How it works Savings accounts and fixed-term deposits traditionally provide a gu ...

How it works When an investor puts money into a managed fund, their cash is pooled with money from other investors. An investmen ...

168 169 PERSONAL FINANCE Investments for income Buying a fund Managing a fund Registration Fund managers should be listed with t ...

Rental income from property Potentially one of the most lucrative investments for generating income, property can also be risky ...

170 171 How it works Buying property to let has become a popular choice for investment in many parts of the world thanks to low ...

Life assurance How it works Although the two terms are sometimes used interchangeably, life assurance is different from life ins ...

172 173 Whole of life This policy provides cover for the holder’s entire lifetime with no set term, guaranteeing a lump sum at w ...

Wealth-building investments The purpose of investing is either to generate an income (to provide for retirement for example), or ...

174 175 PERSONAL FINANCE Wealth-building investments 7−9% the average annual gain made by a stock portfolio since WWII ANTIQUES ...

How it works Unlike many other investments, such as buying shares or bonds, investors do not need to come up with the full sum t ...

176 177 PERSONAL FINANCE Wealth-building investments Save Build a good team Specialize in a type Buy Research Look at budget Mai ...

INVESTING IN PROPERTY Buying and selling for profit Knowing when to buy and sell is the key to amassing wealth through property. ...

178 179 PERSONAL FINANCE Wealth-building investments THE 18-YEAR REAL-ESTATE CYCLE The idea that ups and downs in the real-estat ...

Home equity The amount of equity in a home is a measure of a property’s value. It is the realizable amount an owner could expect ...

180 181 Marke t (^) va lue PERSONAL FINANCE Wealth-building investments Negative equity If the value of a property falls, genera ...

Shares How to buy shares Investing in the stock market can be a good way for individuals to build their wealth. There are a numb ...