What Is The Way To Achieve A Predictable Income Return?
When people invest, they want to earn profits at certain rates and consistently. They try to make money by investing in any field or working. However, earning income and making profits in investment markets is not always easy. Especially when it comes to investments, there is also a significant risk of experiencing losses along with earning profits. Therefore, it is not possible to say that an investment is completely predictable. A type of investment that is predicted to rise today and emerges with analysis may experience price decreases due to global developments. Therefore, it is possible to experience losses while seeking returns. This situation is a fundamental and natural issue in investment. Many investments and money markets today offer significant return opportunities. However, which transactions will be made, at which stage to enter and exit, and through which instruments the investment will be conducted, vary according to investment preferences when investing in markets. In this sense, it is very difficult to say that the investment markets provide a predictable income return. This situation in markets and investments can be a significant source of concern and stress for many people. Because some people cannot tolerate losing and seeing their money disappear. Therefore, people generally tend to focus on income sources that do not carry any risk.
When investing in markets, the target prices and analyses of an investment instrument may align with your goals. However, the future predicted prices and returns of investment instruments are fundamentally based on estimations. The future targets of investment instruments are determined by taking the state of sectors and global developments in investment markets into account. However, target prices do not always materialize as desired. In fact, price decreases can be observed within the targeted time frame, even though price increases are expected. This situation particularly indicates negative global developments or the emergence of new developments within a sector.
It is impossible to provide a certain return and promise success at specific time intervals because there is fundamental uncertainty in the world and markets. As an investor, I believe that anyone who promises a return and claims to achieve success at certain time intervals is lying because what they say cannot go beyond a prediction. Of course, there are many scientific studies and analyses that can be conducted in this field. However, it should not be forgotten that these analyses and studies are the results of an evaluation. Despite this uncertainty in the investment markets, significant potential returns can be achieved. Financial instruments that provide predictable income can help you earn sufficient returns within appropriate time periods. With these financial instruments, you can achieve your returns without being affected by changes or fluctuations in the markets. These instruments have different features and structures. Using these financial instruments, you can obtain a predictable income.
Generating Predictable Income Through Dividend Investments
Investing in stocks and stock markets always targets high prices in the future. However, it may not always be possible to reach these targets, even if an investment tool aims for high prices. When evaluating stocks, it is important to consider the sectors involved. A sector may have significant potential globally and nationally in the future, making a stock a potentially valuable investment in the near future. However, it is not accurate to say that any stock or market will constantly rise. Stocks and markets can enter a downward trend just as easily as they can enter an upward trend. Therefore, it is not possible to predict a reliable income from investing in any stock or market. However, one important aspect of stocks and markets is dividend investing. Dividend investments have a predictable income potential that differs from that of stocks. Companies that consistently make profits and share them with their shareholders distribute dividends at regular intervals.
Companies distributing dividends are crucial for individuals seeking predictable income. Through dividend investments, one can generate regular income by simply receiving dividends without considering price fluctuations. There are many stocks worldwide that distribute dividends, and many investors create portfolios based on different time intervals of dividend payouts. Due to the varying times when sectors and companies distribute dividends, investors can create a basket of dividend-paying stocks and receive income almost every month, similar to receiving a salary. Thus, it can be said that dividend investment provides a predictable income stream. However, companies and stocks can cease to pay dividends over time, particularly if there are issues related to the company or debts. Nevertheless, we can observe that dividend-paying companies that have already established themselves in the stock market typically continue to pay dividends without any issues. In this regard, dividend investment is predictable in many aspects.
Generating Returns With Deposit Interest
Earning predictable returns through dividend investing and deposit interest is among the most fundamental ways to generate passive income. In fact, I can say that earning income through deposit interest is more secure than dividend investing because the company in which you invest may go bankrupt or decide not to pay dividends. Therefore, using deposit interest as one of the basic methods to turn your capital and savings into passive income is a viable option. The amount of income you can earn with deposit interest is predictable. However, the amount of income you can earn through deposit interest is directly proportional to the country’s conditions and interest rates. It is easier to earn income through deposit interest in a country where interest rates are high. However, there are not many advantages to earning income through deposit interest in a country where interest rates are low. One of the most significant opportunities provided by deposit interest is that the deposited amount and the interest earned are completely guaranteed. It is impossible to suffer any deductions or losses through deposit interest. By using deposit interest, you can predict with certainty how much income you will earn over a specific time period. These time periods can be intervals such as a year, a month, or three months.
It is possible to create a predictable income stream with deposit interest rates. However, while investment markets and other instruments offer many different potentials over time, this is not the case with deposit interest rates. Deposit interest rates allow you to earn returns based on predetermined rates, but this depends on the agreement you make with the financial institution. For example, you can enter into an interest rate agreement for a certain period of time that will provide a 10% return. However, during that time period, an investment instrument or stock can experience a 500% increase. To participate in such an increase and make an investment, significant risk must be taken. With deposit interest rates, however, you earn a predetermined return without any risk or loss. The resulting income may not be significant in a country where inflation is high. Therefore, when earning income with deposit interest rates, you must be sure to evaluate all conditions and investment instruments.
See you in the next post,
Anil UZUN