The Increase in Rating Investment Impact Both Good and Bad
Academics and business practitioners says that the increase in investment rating Indonesia give effect of good and bad for business in the country.
“The increase in investment grade Indonesia gave negative and positive impacts for the entrepreneur in Indonesia,” he told reporters after the launch of the Hoe and the book of one thousand To the island of Buru.
According to the rating, the increase was Kasali gives a positive impact because of the prestige or world view on the economy and in particular for the investment climate in Indonesia rises.
“Second positive flow of funds would be a lot coming into Indonesia but please see this flow of funds to avoid the risk of investor who wear due to the” rating “that they avoid the risk,” said Kasali.
But there are other things Kasali explains that must be anticipated about the small medium enterprises (SMES) would have difficulty getting employees because with the influx of foreign investment and labor struggles would be great.
“So the possibility of Indonesia in 2013 will have competition to get employees. The investment will go up and manufacturing would rise but there was no supply of manpower because most of them work abroad into the workforce, “said Rhenald Indonesia.
Earlier on Wednesday (18/1) of the international rating agency Moody’s Investors Service raised the rating of Indonesia to a level worthy of investment–Baa3–.
Moody’s rating was due to see rate anticipation over the Government’s financial balance sheets still in line to the reference in the ranking of Baa.
In addition the Institute considers Indonesia can keep the economic growth of external examinations in addition to being able to make policy and the safeguarding of media finance risks.
Healthy banking and was able to overcome the economic pressure also became the top ranking for Moody’s assessment of Indonesia
The Primacy Of Capital Market
The Primacy Of Capital Market
The economic crisis of 2008 actually could have been avoided if the flow of funds to spur supply housing sector using the instrument-based financial stocks and/or bonds. Not to rely on the means of derivatives. Both the stock and bond instruments have advantages, i.e. in terms of transparency. Whereas the instruments do not yet have a standard raw derivatives in terms of transparency. Similarly, the rules applied in the world capital market and bond market so tight, so everything works under the law or
In addition, the level of efficiency and productivity of the housing sector that was built through the market mechanism is much better and more secure than other markets. Consequently, the pool of funds from the capital markets are really creating a sufficient economies of scale. Thus, a banking capital markets use the funds effectively for the construction of the housing sector is not only going to produce an efficient source of funding but also able to give a very broad impact follow-up.
Other advantages of the construction of the housing sector-based capital markets is no terpsichorean in capital and production factors in the effectiveness of the use of capital thus increasingly effective and efficient. An almost homogeneous price conditions could be kept and maintained in the housing market-based capital market.
Here’s what could avoid the housing industry from economic bubble or bubble. It supported again by the Konstantine between house prices and the stock price of the property sector. Antisepsis condition can occur when the stock price drop property does not run with the price of the property itself so that it requires intervention to prevent the occurrence of the condition of the market bubble.
Kahneman and Tversky (1974) reminds will risk in trading shares of transferability. Kahneman is finally getting the Nobel Prize in Economics. Stock trading in fact is the personification of the theory of Capital Asset Pricing Model (CAPM) where risk can be defined as the risk of the individual and systemic risk. Kahneman has finally received the Nobel Prize in Economics.
Housing Authority of China, for example, try applying the upper limit of the price of the House. That step is necessary when the economy of the people in the country – as seen from the per capita income — not yet in a position to take off as said by Rostow. Or when the lack of income per capita is also very wide. That’s what’s forgotten by the authorities of housing in the United States.
Understand Cashflow Management
- Understand Cashflow Management
Cashflow or cash flow is the flow of money that flows from the us to earn money, save it, expand it, and remove it by regularly, wisdom and discipline.
Knowledge will be required to finance cashflow known our families will not be garbled breaking loose and tracked. There is an interesting phrase “no matter your finances are an important deficit, You know where loss of investment money.” Let’s discuss cashflow diagram as follows:
- Income
Earnings (income) is an activity that aims to put money/property. Usually the income can be obtained from the two activities, namely Salaries and investment.
The salary earned from our status as an employee/employer/professional/consultant. In a family’s salary was to be gained by husband and wife are working.
The results obtained from the Investment activity in developing our money/property in various ways. There are a few ways I can invest the deposits, Shares, Property, business results, mutual funds, bonds, etc.
Well, all our income is usually stored in the form of cash or bank/ATM.
- Expenditure
Spending means all activities that result in our money is reduced. From the diagram we can see an awful lot of need for spending on our families. So when it is not regulated properly then would make family finances to be chaotic and chronic if it could be headed to the brink of bankruptcy.
In General a family have some expenses such as household spending, Debt Repayments, insurance premiums, the Housekeeper, the child Needs, transportation, Taxes, Tithes/Entertainment/Recreation, social activities, Fashion, and so on.
When we look at all this time, the error is often done by most families are only deals with income derived from salaries that is constantly being drained to cover its expenditure. angat is a bit of our families who are starting to investment activities as a source of income for his family. But if we are diligently performing investment, then the result of the investment actually can cover all sorts of our spending is, in fact can be much greater than the salary we receive during this time.
The explanation above is an ideal conditions which are to be achieved by each family. When your family is currently still rely entirely on the flow of income from salaries every month, then it’s time for a little by little the money You set aside so that it could make a new revenue stream that comes from Investments.
Productive Assets and Financial Innovation
Productive assets
Another example of financial innovation is to have as many assets consumptive than productive assets. Have you seen the merchant who lived in a Shop house, where the bottom floor is used for trade, while the upper floors used as a residence?
That is, a place of business and residential into one. In other words, the merchant houses are not just houses, but has become a productive asset that can generate money, aka the place to do business. What about you? Perhaps you have the house for more than one. And you do not live in the house every month instead drain your pockets because it must pay the cost of electricity and other maintenance costs. In fact, housing conditions continued to decline due to aging and so forth. Concretely, some houses you have not only not productive, but instead become a burden. Therefore, the house must underproduction, in the sense of providing an income, such as leased to another party.
In addition to the house, try to see again those resources you have. Pay attention to whether the asset is an asset just as consumptive, or a mere tool to maintain prestige, or is quite productive. If you have gold jewelry whose value increases, the jewels belonging to the productive assets that can increase your wealth. So also with paintings whose value could be increased. In summary, productive assets are assets that have investment value.
Financial innovation can also be done by way of selection of appropriate investment. Understanding the right investment here is how to send your money “work” for you. So, money making money. How do I? Do the active investment.
Investment is active on a regular basis to select and evaluate investments that have been done. In capital markets, for example, some people buy stock, then keep holding it in a long time, with the hope of obtaining dividends and capital gains. It’s not wrong. However, in this period, could have held the stock price decline in price. Among those who hold these shares may not care or even sell it for fear that stock prices will further decline.
The Money to Make Money
Investment is one of the most effective way to achieve financial prosperity. In fact, through investment, a person can send money “work”. So, the money to make money. You’re not looking for money, either as workers or entrepreneurs.
That is why someone who should be setting aside some fixed income fixed income to invest that in the future, when in question does not work anymore, still have an income through investment returns. It is the ideal situation investing.
However, in reality, the investment could also make a person lose the prosperity that has been owned. How so? Yes, because the investment also has a dark side associated with personality (personality) a person. Therefore, this paper will discuss some of the dark side so that you avoid the problem in investing.
First, the yield of the trap. There are a thousand and one choice of investment, both in financial markets and real sector. From the sensible to the insane. But for some people, which is used as the indicator is a large yield. That is, if the investment promises lucrative profits, many people who would be interested. In fact, the yield must be accompanied by a big risk too great.
Therefore, in investing, which should be seen not offer investment returns, but how the target return on investment that you want to earn. By custom, if you can earn investment returns twice the rate of inflation, it is considered good. Concretely, if the rate of inflation of 7 percent per year, return on investment of 14-15 percent per year has been very adequate.
Second, the “greed” investment. You would never hear someone who has suddenly become wealthy through stock investments, but then suddenly all become poor again. Why? Only one answer, ie greedy. When a person invests his chosen stocks and shares already reaping capital gains, is likely to begin to be interested in other stocks, which do not necessarily have a good fundamental performance. Other stocks that move was triggered by the price because of market sentiment or ‘fried’ “by dealer stock.
How to achieve this middle-class status
The ability to get health care is another important destination for middle class families. As well as education, health care costs currently higher. Drugs, therapies or other treatments that must be followed when a family member suffering from severe illness, would be met. It’s no secret that many families into debt involved because they have to finance the cost of care to hundreds as well. To prevent this from happening, many young families are now taking an investment such as health insurance.
* Family Vacations
Able to plan a family vacation every year at this time also become the benchmark middle-class family. Indicates that a family vacation quite able to distance themselves a break from work, and focus to please themselves and their families. Again, the choice of destination showed different abilities. The further purpose , the more prosperous the culprit. Creating a special savings for a family vacation is also an achievement in itself, you know.
How to achieve this middle-class status?
Achieve or maintain a middle class lifestyle is definitely a challenge, but there are proactive steps to help realize this dream come true. In addition to many families now rely on savings from two incomes, budgeting is also an important agenda. Understanding how you spend money every month can help you determine the exact composition of the standard you want to adjust.
The next important step is planning. Does the child will enter public school or private school? Should get a scholarship?
Looking for jobs, open businesses, or invest, also be other ways to help achieve this lifestyle. Even the well-being of families is often caused by investments made over the years. Although you do not intend to take advantage of these investments to supplement current income, investment remains important because it can force you to save money.
Using Other People’s Money
Using Other People’s Money “Other People’s Money”
One of the most interesting from an investment in property is that the system created in such a way that allows you to use other people’s money to finance your investment. This is one of the most important concepts that can make you be more wealthy than any other investment.
On the other investment types, the large amount of investment is determined by how much you are willing and able to pay with cash. So to buy another investment you pay cash with the assumption balls using your own money. We take the example of investment in the stock market. To buy shares then you have to pay cash entirely from the transaction, unless you do the actual margin trading is very risky. So is investing in bonds, mutual funds, deposits and savings in the bank, gold and valuable art collections, all of them requires cash payment in full.
Investing in property is not the case, you can just pay for his house down payment of 10% to 30% of the price of his house in order to have the goods then the rest can be financed from the loan to the bank. Never mind the banks, even the developer itself was willing to provide relief payment installments for the payment of advances for purchase of goods.
The opportunity to use other people’s money materialized in the form of financing is referred to as leverage, or ability to multiply things. For example, on the first day you managed to get a home loan with an advance payment of USD 30 million, the Day of the same direct your cash assets increased to Rp 100 million. By using the investment house financing could be doubled in two ways. First, the more money invested the more likely other people’s money or financing that you can get, for example with the money of Rp 30 million, then you can only buy shares up to Rp 30 million. But with the same amount of money if invested in property, then you can buy a house worth Rp 100 million. Where is your house down payment sebasar USD 30 million, then the bank finance the remaining amount of USD 70 million, then you become the owner of a building for Rp 100 million. Is not that number more than 3 time or 300% double
Invests in investment funds guaranteed
If you thought more than once in the possibility of multiply your savings without arriesgarlos, here i have the solution…Precisely i am speaking of investment funds guaranteed. The investment funds guaranteed arise in the year 1994 as a result of a battle between banks to retain money. The great benefit from these investment funds is that they are funds that guarantee up to 90 percent of the main investment, in addition to its profitability.
Its liquidity is restricted in basis to the warranty period as the case. The disadvantages of this type of funds is that they are funds in the medium and long-term, so that it is not recommended withdraw investment before the period, because if this happens, it must be to pay a kind of fine of cancellation. Of this type of funds, the ones that are recommended are those who do not pass for 5 years, because what interests that are offered, will be on the basis of the current situation and future prospects.
With all this, invite you decide once and for all, to invest your savings in investment funds. I guarantee that are the best choice that you will find if you want increase your savings and in addition, ensure your investment 90 per cent, so it is almost impossible to arrive in losing money.
Angels: venture capitalists and partnerships
Angel investors are individuals who use their own capital. Usually have a small amount to invest in business and are difficult to locate or identify as not advertise their investments or belong to organized groups. Angel investors usually invest close to where they live. Are generally located through personal contacts or family members. They can also be service professionals (lawyers, accountants, etc), former suppliers, childhood friends, etc. Not recommend seeking this type of investors with agencies or with press notices or other advertising. The type of relationship with this type of investor is very special and personal, so the initial contact must be for personal references for the safety of both parties.
The venture capital funds invest only in companies with a high probability of a high return on investment. Getting these funds is quite difficult as you select few of the thousands of applications received each year, its inverisiones are high, over U.S. $ 1,000,000. The funds managed by managers who are not always able to make quick decisions and the funds usually come from investment funds.