Business plan for investing in PAMM-accounts: a step towards a decent financial future

Thinking about a decent future, many people do not even think about the fact that it is unlikely to be possible without proper financial planning. Some, in the old way, pin their hopes on the fact that the state will provide them with a decent pension, and someone, like an ostrich, hides his head in the sand, trying not to think about it and living only for today. Nevertheless, in conditions of unstable economic situation and having already had the example of freezing of pension savings by the state, the issue of independent provision of their financial future is becoming more and more urgent.

One of the ways to passive income is investing in PAMM accountsYou can't do without a clear plan. Only the presence of a competent investment plan will allow you to correctly calculate the amount of the monthly contribution and help you choose the timing of investment. So what indicators should be considered when making an investment plan for PAMM-accounts?

The purpose of investing in PAMM

The main thing to decide is the purpose of investing in PAMM account. It is on this goal that the other indicators will depend. If the goal of investment is the accumulation of a decent pension, it makes sense to consider for investment PAMM-accounts, which have low risks and average yield. If the goal is not so global, you can consider shorter investment terms and increased risk levels.

The volume of your investments

To calculate the optimal amount of investment in a PAMM account, you need to determine the amount of free funds remaining each month. That is, from the amount of all monthly income to subtract the amount of all expenses. It is necessary to take into account the availability of a certain "untouchable" amount, a kind of financial cushion, in case of force majeure: illness, job loss, etc.

Desired level of profitability of PAMM account

Advertising persistently shows us that by investing in PAMM-accounts you can earn 100% a month from the amount invested and even more. As practice shows, such PAMM-accounts exist, but on such "fiction" is better not to orient. Of course, the yield, which shows the PAMM-accounts, exceeds the yield of bank deposits, but it is better to choose a PAMM-account with an annual yield of 50-120%.

Risk level of investment

The level of risk when investing in a PAMM-account directly depends on the level of profitability. We will not dwell on this, but it is necessary to note a very important point for the investment plan, namely the protection against risks. Most importantly, the funds that you intend to invest in PAMM-accounts must be solely your own. Under the impression of high returns, some people take out a loan, hoping to pay it off at the expense of the profits. However, even with a competent diversificationThe level of risk would be too high, so such a plan is unlikely to be feasible.

Despite the simplicity, investing in a PAMM account, if it is not a momentary hobby "game of money", is a serious and responsible step, in which an important role in ensuring a decent financial future plays an investment plan.

With the practical experience of investing in PAMM accounts you can read in this article:
Investing in PAMM accounts in practice: creating a portfolio on 500$