How do you calculate your required investment?

[Starmix]

Do you calculate your required investment or do it only through your imagination, speculation, and assumption? To determine how much you need to invest to generate enough interest income, you need to know your target annual income and the average interest rate you expect to earn. I understand that we have different ways to calculate our required investment it's also best to consider the ways others do to have a consensus understanding and limit. Share yours.

 

[Springtime]

I have a budget on how much I invest in certain stocks. The dividends I receive is beyond my control because it depends on the profitability of the business.

 

[Starmix]

That's good you have control of your budget in investment.You're safe on that strategy. It's good to always calculate our budget.

 

[Suba]

Everyone has different financial capabilities in investing, and not all types of investment instruments promise fixed and regular returns, because there is a possibility that the issuer will fail or go bankrupt. There are also types of investment instruments that rely on changes in market prices, such as crypto and several types of stocks. If you want fixed and regular returns so that it is easy to predict and calculate ROI, then it would be a good idea for you to invest in government bonds, deposits, blue chip shares, preferred shares.

 

[Starmix]

Everyone has different financial capabilities in investing, and not all types of investment instruments promise fixed and regular returns, because there is a possibility that the issuer will fail or go bankrupt. There are also types of investment instruments that rely on changes in market prices, such as crypto and several types of stocks. If you want fixed and regular returns so that it is easy to predict and calculate ROI, then it would be a good idea for you to invest in government bonds, deposits, blue chip shares, preferred shares.

I agree with you, it is because we have different styles and ways to assess our investment. Most investor wants to keep on calculating their supposed profit,lol.

 

[Suba]

I agree with you, it is because we have different styles and ways to assess our investment. Most investor wants to keep on calculating their supposed profit,lol.

If most investors want to calculate their expected profit, but how do they do it, what is the formula, if they invest in general shares, there is no guarantee that they will get dividends every period, after all share prices are uncertain, even though they can only predict future share prices, but how? if the issuer fails to make a profit.

 

[Starmix]

If most investors want to calculate their expected profit, but how do they do it, what is the formula, if they invest in general shares, there is no guarantee that they will get dividends every period, after all share prices are uncertain, even though they can only predict future share prices, but how? if the issuer fails to make a profit.

Other investors might invest on something tangible, the one they can calculate based on their speculations. Like my nephew, he invests in buying and selling .