The article by Ameriprise financial institute states that the goal of any investor is to minimize losses and maximize profits. It further states that investment and business management involves various risks that may occur from time to time. However, the article does not mention the types of risks that may occur in the course of business. Furthermore, it states that individuals should save enough income for their retirement benefits, mortgages and funds to cater for their health at old age. Ominously, it fails to elucidate health insurance that is known to be the most important constituent of the business risk management scheme.
However, the article provides a good elucidation of how invested money grows with time. It advises individuals to invest their monies in long-term projects since it will be compounded on the long-term basis and the interests earned will be overwhelming. It provides hypothetical examples to illustrate the point. Outrageously, it ignores the taxes paid on investment yet it is clear that the government levies the taxes as a way of raising its revenues. It further indicates that past performances do not indicate future performance. However, it advises investors to endure short-term suffering if they want to reap heavily in from future investments.
Additionally, individuals should consider owning properties whose value appreciate with time. Investors must consider the liquidity of any investment before committing their funds into it. The article fails to elucidate on the ideas of IRR (internal rate of return), TVM (time value of money) and the effects of PV on investments. This concepts have a significant effect on nay investment and must, therefore, be considered when making financial and management decisions. It flaws basic principles by assuming that the value of money keeps constant. However, it is still a great article to read especially for potential investors.
Work Cited
Ameriprise financial institute. "Successful Investing | Ameriprise Financial." Ameriprise.com. N.p., n.d. Web. 6 Feb. 2014. http://www.ameriprise.com/budgeting-investing/financial-planning-articles/investing-guide/sucessful-investing.asp
