If you want your investments to be successful, you need to set a few goals. Without your goals, how do you know what you are investing for? Your goals will not only give you motivation, but they will help you assess if you are heading on the correct investment path.
By setting investment goals, you are defining why you are investing. You are establishing a time frame for your investments. By doing this, you are able to see what investments are appropriate for your goals. You are also able to check the progress of your investments to make sure that they are on track towards your investment goals.
Most people have two major investment goals. They want to have enough money to send their children to college and they are looking for a comfortable retirement in the future.
While the college educations will come before retirement, you shouldn’t put off saving for retirement until last. And you shouldn’t use your retirement investments for college costs. There are options for college costs, such as student loans, while retirement options are limited.
If an employer-sponsored retirement plan, such as a 401(k), is available to you, you need to be taking advantage of it. Contribute as much as possible to your plan. If you employer matches part of your contribution, it is basically free money for your future.
However, you will also need additional investments in order to have a comfortable retirement, and to meet additional goals.
Sit down and look at your goals. We will consider that you have the two main goals — college educations and retirement. You need to look at each goal and ask yourself some questions. Can you expect any financial aid? Are student loans an option? Will the student work? Are grants and scholarships possible? These answers could lower the amount of money you would need to work towards in your education investments. Look at where you currently are and how much time you have left. How much more will you need?
The closer you get to paying for college, the more conservative your investments should become. If you have your college money invested in the stock market, you should begin pulling it out at least five years before your child’s freshman year. You should look for investments with less risk during this time, such as bonds, CDs or savings accounts.
Now look at your retirement fund. How much time do you have left? How much are you currently contributing to it monthly? I know that you are probably dedicating a large chunk of your savings towards your college education goals, but you can’t forget about retirement. If you can, fund both goals.
When you have to fund more than one major financial goal, it helps to be extra diligent about your spending habits. You need to make your money decisions wisely. It may be that you need to avoid large expenditures that are not necessary. Your house needing a new roof is unavoidable. But a new plasma TV for your home isn’t necessary right now. That money could go a long way towards achieving both of your goals. If you are in control of your spending, it is easier to reach your goals.
And it works both ways, oddly enough. Having goals gives you a reason to control your spending. Your investments have direction and purpose. You know how much you will need and when you will need it.
Having more than one goal just means that you need to work a little bit harder. Conflicts may occur, but by managing your goals and investments, you can work them out.
December 3rd, 2010
posted in Money Investment
Small loans industry in the United States shows an increasing growth every year. The loan givers have been lobbying a lot to make payday lending can be practiced. On the other hand, the opponents of the small lending industry make lobby to disallow high cost loans in order to protect customers.
In the United States, given state law, payday loan is regulated and legal in 37 states but it is either not feasible or illegal in 13 states. The 13 states that prohibit the small loans are Arkansas, Connecticut, New Hampshire, New Jersey, Maryland New York, North Carolina, Massachusetts, Pennsylvania, Vermont, Georgia, Maine, and West Virginia. Most states forbid the interest rates that beyond certain APR. They are called the usury laws. In some states, some payday loan giver can successfully get around the usury laws because of their relationship with nationality-chartered banks.
To make usury laws effective, the laws should include the fees of all loans as part of the interest. If not, the payday loan givers can claim a low interest rate even though they charge high amount of fees. In the United States, the state laws usually preclude charging of other fees that are not expressly permitted. In addition the disclosure of all fees is required by the federal Truth in Lending Act.
December 3rd, 2010
posted in Money Investment
Ask anyone in the finance industry what they think is the No.1 most important rule for a successful investment strategy? I bet they’ll say “DIVERSIFY!” In other words, spread your risk.
“Don’t put all your eggs in one basket” is another way of summing it up. Leave all your money invested in the one place and you are headed for disaster.
A diverse investment portfolio will bring you (a) higher returns, and (b) protection against volatile markets – in other words, if one of your investments is doing badly, you’ll still have lots of other investments to balance it out.
So how do you spread your risk? The first important step is to spread your money across different investment types, such as Shares, Property and Cash.
The next step is to Spread Your Risk within each of these categories. For example, if you invest in Shares you would invest in various companies and various industries rather than putting all your money into one company. Although a company might seem like a “sure thing”, even the most well-known and seemingly profitable businesses can go broke. Even an industry that seems fail-safe, could be badly affected by new taxes, mismanagement, supply issues or the occasional wrath of mother nature.
Let’s take another example. If you are lucky enough to be buying your second investment property, would you buy in the same suburb as your first property?
Imagine your first property was a Unit in Brisbane and you’ve made good money on the investment – you would be tempted to buy in Brisbane again and make the same money, right? But this may not be the best way to go. The market has changed. Perhaps you bought at a good time? Perhaps the property was a bargain? Regardless of all this, you should be thinking about spreading your risk.
Buy a property in a different State. Do some research and find out what areas are predicted to experience huge growth (try to focus on Capital Cities, which are almost always the safest investment). Also consider switching from a Unit to a Townhouse or free-standing house. This is how you spread your risk.
The same principle applies when you look at Managed Funds. Consider investing with more than one Fund Manager and spreading your money across different funds, e.g. International Shares Fund (very high risk – possibility of very high returns), Australian Shares Fund (high risk – possibility of high returns), Growth Fund (Low/Medium Risk – possibility of average returns).
Calculate each investment as a percentage of your total investments. For example, you might invest 40% in the highest risk funds, 40% in medium risk funds and 20% in the low risk funds.
Look closely at the Product Disclosure Statement (PDS) before you make any decisions and if you are dealing with broker or a representative of the Fund Manager, don’t allow them to sign you up on the spot. Take the PDS home and read it thoroughly. Take the time to compare various funds before you make a decision.
Just don’t leave it too long – the worst investment mistake anyone can make is to do nothing.
December 2nd, 2010
posted in Money Investment
Are you looking for some inside information on Investments? Here’s an up-to-date report from Investments experts who should know. Once you begin to move beyond basic background information, you begin to realize that there’s more to Investments than you may have first thought.
We grew up in world in which the news about the failure of Social Security is almost as constant as the news about the failure HMOs. We all know that it is unlikely that many people who are currently contributing to social security will ever see the money we’ve invested into the program. At least these funds are probably not coming back to darken our doors. This means we need to find alternatives and end our reliance on the government for a comfortable retirement that doesn’t appear to be in the wood works.
For this reason we are seeing more and more people in the twenty and thirty something generation taking matters into their own hands and investing not only for their retirements and the days when we can no longer work but also for those days when things happen and we need to fix broken houses, buy new cars, or pay hefty insurance deductibles for medical care. There are many reasons we choose to invest and very few that would ever be considered the wrong reason. The question remains, because there are so many out there who are not yet investing, with so many reasons to invest, are you ready to invest?
Here are a few situations in which if you don’t think you are ready to invest you may need to revisit your opinions and decide that ready or not, you need to invest. If you have children and a job that doesn’t offer a pension plan or matching retirement fund then it is probably a good idea to invest on your own. Even if you don’t have corporate provisions for contributions you have alternatives such as Roth IRAs that will give you a tax break for investing some of your money and helping to plan for your own retirement.
If you have children that will someday need dental work, medical services, and/or college educations it is about time that you began those savings plans. Yet again there are tax deferred and tax fee options that are available and having this money invested ahead of time can save you so much money later on that it is worth making a few sacrifices along the way to secure the future of your children.
If you want to give your daughter the wedding of her dreams then you absolutely need to begin preparing, saving, planning, and investing about 10 years before she’s born. Weddings are expensive and if you are going to go the dream wedding route you need to be saving some serious money in order to give her that fairy tale.
Finally, if you want your retirement to be a nice comfortable existence and not to be spent in your future daughter-in-law’s broom closet you need to be ready today to begin investing in your future retirement. Time is short, life expectancies are longer than ever, and the costs of living are continuing to rise at alarming rates. If you’re not ready to invest you need to figure out why and fix the problem so that you can be ready to invest and soon.
Investing in your financial future is the greatest gift you can give yourself by far. If you aren’t sure where to begin or how, perhaps it’s time to seek the services of a qualified financial advisor. His advice may prove invaluable and may give you a much more comfortable future than you would have ever imagined left to your own devices. Knowing enough about Investments to make solid, informed choices cuts down on the fear factor. If you apply what you’ve just learned about Investments, you should have nothing to worry about.
December 1st, 2010
posted in Money Investment
Consulting a financial expert for money management
It is always prudent to consult a financial expert to advice you on the benefits of various options to preserve your money and to make it grow. He will know best and will give you the most efficient suggestions. There are various aspects on the growth of your money either if it is a short term investment or a long term one. He would be able to tell you what the returns would finally be and which are the most profitable ones to undertake. So to make money you have to find the right sources.
Some options to ensure money growth
It is a known fact that if you save regularly and invest it wisely you will have a substantial amount when you finally retire. If you have some surplus funds and want to invest it for a short term you could invest it in stocks but if you have a long term goal, then real estate would be a better choice. Another option is to buy equity shares which will help you to make money.
Wise investments
Saving money regularly and then making wise investments will definitely be a very wise function and you will end up benefiting in many ways with this combination and make money. A financial expert will tell you how to invest your money and what are the good options where your money will grow to the maximum and increase rapidly.
These are all options for making your money grow with the right investments; however there are ways of making money through business ventures which can give you quick returns also. Money invested in a wise business venture will get you much more money in a shorter period than if you have to leave it as an investment for a certain period of time before you reap your harvest. This is a faster option to make money.
A business consultant
If you start a business consultancy firm you will be able to have several wealthy clients at the same time and your earning will definitely be at a high with the commissions and retainers that they would have to pay you. However, for this you will have to have the basic qualifications required for this kind of a profile. This is a job profile where you can make money.
Real estate and property
Dealing in buying and selling of real estate and property is a very lucrative option as the price of real-estate is always escalating. Your involvement with this sector could be as an investor as an agent or as a builder. However, all have their share of profit in various degrees and are ready to make money at any time.
Opt for what you are comfortable with
It is always best to choose an option that you are comfortable with and what you can deal with easily. You should be able to understand the factors and not always look to experts for every little bit of advice. If you do some research on the different aspect of how to make money, you will be able to get a lot of insight into all theses issues.
November 30th, 2010
posted in Money Investment
One of the best ways of generating a passive stream of income is by trading on the stock market. The allure and mystique of stock investing keeps many new investors from taking the plunge. This is unfortunate. Many people start a small investment businesses that start building wealth instantly.
There is no real trick. There is no secrets. It is just a matter of mathematics. If you can follow patterns, are artistic, or are good at organizing then you should be able to follow the patterns and make money investing. Yes, there are pitfalls the uninitiated will fall in. And yes, those who do not follow the proven formulas, and do their homework, will end up losing money. But, this does not need to be the case.
The Investor
The word investing means ‘managing your resources so you can preserve your buying power and generate income.’ One you decide to ‘work’ as an investor, and you realize that it is a job as opposed to a hobby, then you’ll find yourself far ahead of the pack.
The first step is to sit down with a blank piece of paper and define your goals. Be as critical as you can. Write down where you are now, including your debts. Calculate how much money you spend in a year on interest. Take a good look. If the average American paid down their credit card and overdraft debts they could generate more than $5000 a year in saved income.
Next, ask yourself where you want to be in 10 and 20 years. Each of these charts should be on their own page. Do not try to combine them.
The trick is to do this when you are not under pressure or stressed.
Now, create a 10 and 20 year projection of the ‘lowest’ stage you want to be. This is the bare minimum lifestyle you want to be. Once you have this you can calculate the maximum and the minimum you need to earn each year.
Most people reach this stage and quit. The amount looks impossible. They may need an extra $20 000 a year, or more to reach their goals. But, remember that investing builds like a snowball. For argument sake, let’s say the new investor may start with $5000 and turn it into $8000 in the first year. But they will earn $12000 in the second year. That will turn into $20 000, $30 000, $50 000. Within ten years the investor may have a half million dollar portfolio that generates far more than they ever dreamed.
Most new investors skip this step. It has nothing to do with investing.
They want to start trading ‘right now.’ This is a mistake. The charts above will give you an idea of the risk level you need to take. Each time you make a purchase you will stop and ask yourself ‘is a vacation the best long-term investment for my money.’ They may decide to drive their car one more year before trading it in. The investor might decide to avoid luxuries for two or three years to ‘build their portfolio.’
This exercise has another benefit. It will teach the mindset followed by stock brokers and help new investors choose stocks like a pro.
The Investment Broker
The next step is to determine what type of investments fit your goals.
High risk investments can earn money fast, but it can also lose money.
How long will it take you to recover the loss? Some investors are good with investing for 5 – 10 years and patiently waiting to sell. Others cannot handle the suspense. They want to see the ‘fruits of their labors’ grow almost weekly.
The risk and recovery period will play a significant roll in the stocks chosen. Today’s investors are also starting to take a social and environmental look at their investments.
Once you have a good idea which types of stocks you want, it is time to find a broker. The cost should be the first consideration. The type of trading should be the second.
The Strategy
There are a few good strategies out there. They are not secrets. You do not need to pay a guru $3000 and join their secret group to learn how to invest. These strategies are followed by everyone from ‘floor traders’ to the hobby investor playing from their computer.
Once you have a goal, a good broker, and a strategy, you can start investing without fear.
November 29th, 2010
posted in Money Investment
These days when there are simply too many avenues for investing, there really is much confusion when picking up an investment instrument. If you are looking for a lucrative opportunity for growing capital, you should nevertheless consider trust deed investing. Truly, a trust deed investment is yielding better investment results for investors to enjoy. This is the main reason why more and more investors are turning to invest in such secured lending activities.
If you are wondering why too many experts are recommending trust deed investing, you should take a look at the main factor that would push any investor to do so. A trust deed investment is facilitating better and faster growth of capital. Why is that so? First of all, it should be noted that any investor can expect higher yield from a trust deed investment because basically, the interest rates implemented are far higher. If you are a borrower, you may dispel the idea of taking a loan from a trust deed because of the higher interest rate compared to what banks offered. But if you are an investor, that is the main reason why you should stick to a trust deed investment.
Being an investor, it should always be your goal to make your investment accrue a greater interest at a shorter period of time. If you would simply deposit and keep your money in a bank account, you would have to wait unproductively before you feel any significance in interest rate advantage. But if you would rely and entrust your money into trust deed investing, you would realize that indeed, your money is worth a lot more potential. Depending on how your trust deed works, your trust deed investment could attain its maximum earning potential.
Trust deed investing is not only ensuring higher interest on your money investment. You can always be sure about the safety and security of your trust deed investment. That is because to begin with, a trust deed is a secured investment, meaning, there is always an assurance that your money would be in good hands. Borrowers are required to surrender titles of land of properties as securities or collaterals in their loans. Thus, when such borrowers falter to return loans on maturity dates, the trust deed would have the option and the power to takeover and liquidate the title surrendered. That way, you can make sure your trust deed investment would return to your hands no matter what.
These days when people are more than ever requiring much amount of money at the fastest process, trust deeds are becoming more in demand. And because of that, you can be sure your trust deed investment would always be profitable and highly lucrative. Trust deed investing is truly one of the soundest investment schemes around these days.
November 28th, 2010
posted in Money Investment
In my previous article, I started with PPC-advertising. Take really good time in investigating PPC-advertising by teaming up with people or your company. The number one tool is to find keywords that attract more valuable traffic to your website. That is a money-investment. Then actually starting with PPC-advertising is depending on so many different ways that it’s too difficult to give an exact amount about monthly investments for PPC.
When you decide to write articles, it’s a free way to advertise. But to leverage your time in article writing, you can choose for a tool that can submit your articles to many publishers. Write one article, submit it and you will see your articles going to different publishers in one click. This is a great and a must have tool if you decide article marketing. Combined with the keywordstool and this article submitter, you have a powerful combination. Monthly payment is about $40.00.
Are you looking for a quality, free source of advertising to explode your online home business? Look no further than Craigslist. It’s a free source, but if you want to use it for mass marketing (and you should), you have to have software to leverage your time and energy again. The software I use is costing me a one time fee of almost $100.00. Then you need time-investment to make emailaccounts, headlines and ad copy for the advertisements. Also you have to purchase “Hide my IP” software. This tool I use is costing me about $60.00 per month.
If you look my articles in ‘investing in making money online’, I hope you get the picture. When you have little money to invest in marketing your product and/or service, there are some free ways to do it. Time-investment in free advertising is huge, the money-investment is low. The more you want to leverage yourself, the more you have to invest in software and tools.
So, a resume for money investments in marketing:
* Buy your own domains, about $ 10.00 a year.
* Software for creating your webpages, autoresponders and much more, about $50.00 a month.
* Keywordstool that attracts more valuable traffic, about $60.00 a month
* Article submitter software, about $40.00 a month
* Software for posting ads on Craigslist, about $100.00 one time fee.
* Software to hide your IP for Craigslist, about $60.00 a month.
By only using these features stated, your money investment is monthly more then $200.00, not to mention PPC-advertising, monthly autoshipments and one time fees.
And now, the most important thing. The ROI (Return On Investment) is much higher. You can make a lot of money when you only are using these tools I explained. Take some months to investigate, go to the specified forums and I know that you too will succeed in the home based business.
November 27th, 2010
posted in Money Investment
Normal 0
Investing Online is a popular topic currently, but online investments can easily swallow your head very fast in unpredictable market without knowing the other side of the coin.
There are many types of online investments that can surely prove significance to you but are there certain constraints. The popularity of online investment is rising & falling but it still has its importance. It can lead you to towards hell if implemented without right knowledge. You can brighten your financial future by investing online, but it is risky too.
If you are not confident enough about your thorough knowledge in online investment then you must start a Blog or a forum and you can also earn money from it by talking about the stock market indirectly without playing in the market. You can start collecting ideas and tips from reputed financial websites as well. In straight forward way, the advise is don’t make an debut in the market unless you are ready and confident enough to play the bad game.
Another idea: Gather the information, suggestions and ideas about online investment and then begin trading. You should be aware of some tips of stock market before investing. When you are risking your own money, you must understand the market and its tactics. Mutual Fund is a great online money investing idea with low risk and it has shown marvelous returns in the past. If you want to go for equity market that is enough risky, you should appoint a broker or relationship manager who can guide you and make your invested money worth.
The most important thing in online investment is you should do it because you enjoy, not because it is for maintaining component to your life. Investing in share market is always recommended as side business and not main business. There are also certain benefit of online investment, the major one is it can be done any time of any day.
When we talk about personal investment, the vast Internet activities have changed the scenario. Certain Investment clubs runs educational campaigns in-group and offers collaboration opportunities for personal investment. The current situation is you can comfortably place an order to buy or sell items by clicking from your personal computer at home. With the arrival of advanced technologies Online Investment is a great way for ordinary man to make a living from home. It is sad that many people are not aware of the fact that online investment is safe. The reason behind it is less number of people knows how to earn money smartly from it.
The bottom line is: there are numerous effective ways to make money by investing online, but the only thing needed is confidence, thorough knowledge and make sure to limit your focus to just one key area during online investment. It is rightly said don’t become “Jack of all trades, master of none”. There are many websites that give online investing ideas, hence do thorough research, focus your efforts on decided area and start smartly acting today.
November 26th, 2010
posted in Money Investment
First of all, What is a 401(k) I will try and give you a shortened version. A 401(k) is an employer sponsored retirement plan run under section 401(k) of the Internal Revenue Code. A 401(k) lets an employee save for retirement, and at the same time defers taxes on his savings and the earnings associated with them, until he retires. One thing worth mentioning is the capability to have a self directed 401(k). Though this sounds quite like a self directed IRA it is not. There is still limits to what you can invest in with a 401(k). Some companies put limits on what portions you can put into the self directed part of the plan.
For instance the company might allow a quarter of the account to go into the self directed part of the plan, and the remainder has to go into the standard 401(k). This cuts down on your control of your own money, and makes things more complex than they need to be. As well all 401(k) plans are tied to your employers corporation, the corporation may make changes unfavorable to the 401(k) holders, they, the corporation may change plans etc.
I will tell you a little story about a lady who was about forty, and her money was in a 401(k). She asked her employer about investing 401(k) money in real estate, but her boss told her she could only invest 25% of her savings in a self directed 401(k). She never bothered after that, as her employer had her money invested mainly in the companies stock. Well one year, her 401(k) lost 10% and that was that, she spat the dummy. She rolled over her 401(k) into a self directed IRA, and started investing in real estate, she hasn’t looked back. She told me, she wished she had changed over a lot sooner.
If you are thinking of investing 401(k) money in real estate, rolling your 401(k) over to a self directed IRA is preferable, because then you can choose who is to be the custodian of your account. You can invest your money in real estate. or whatever else you desire, as long as you follow the IRA rules, you can invest in almost anything you like. You can buy houses, apartments, you can lease equipment out, you can invest in Tax liens from the county, you can invest in so much more with a self directed IRA. Self directed IRAs are better as they allow you to retain full control of the money in your account.
A mistake commonly made by first time real estate investors, is buying property in the wrong location. Given the huge amount of property on the market, it is not hard to understand why some people end up buying in the wrong location. A first time investor can hardly be expected to know where all the choice locations are. Another mistake first time investors are likely to make, is simply paying too much for a property. Inexperience and a volatile market place have oft made many a strong man cry.
If this sounds too complicated or just too much trouble there is a simpler more TURNKEY approach to investing in real estate or rolling a 401(k) over, go to the url at the bottom of this article and thenceforth to my website, there you will find more information.
November 25th, 2010
posted in Money Investment
American investments for foreign investors can be a lucrative and profitable financial venture. Even when global economies are suffering and not doing well, there still are many investment opportunities to make money in American investments within the USA. The United States is still a world economic power for investing and it’s smart for investors living outside the United States to consider investment projects within the American borders.
For many years, investors all over the world have invested in many other countries investment projects and the opportunities are still there. International Investments are still a good idea for many and allot of times, their may be tax benefits and other features of an investment that can be good for investors.
International investing for investors living outside the USA can make lots of money and can be a great investment idea. For example, Real Estate projects are available for investors that can make them an excellent profit. Investors may not realize that Real Estate projects can bring in excellent monthly profits from 12-18% dividends. In these type of American based investment projects, the international and global investor can invest their money in a large community or business project or residential development investments and then they can have their profit or monthly dividends automatically direct deposited into their savings account. America is still a viable and worthy place to invest your money. Investing overseas is a term relative to which side of the ocean your on. If you live outside the United States and are interested in investing in the USA, you should look at all the options available. There are other types of investment projects available such as Trust Deeds. These can be solid investments also and just as lucrative as Real Estate investing in America. Again, the advantages can be many and for those investors not living in the United States, it can be a smart place to put your money to make more money. International investments are something to consider now and in the future.I did a search for “american investments for international investors” and one company that came up was EQlibrium Investments at http://www.eqlibrium.com/ & http://www.eqlibrium.com/international-investments.asp
November 24th, 2010
posted in Money Investment
Real estate investing is easy. That’s what all those tv reality shows would have you believe. But in reality, real estate investing is risky business. And like most investments, the riskier, the higher the return. It’s true that the returns on investment are incredible for the savvy real estate investor. If you do your homework properly, a little cash and some sweat will buy you a property that can be flipped for a healthy profit. However, there are many that have lost lots of money in real estate investments because they were not careful in planning stage. There is a very steep learning curve for those starting in real estate investing. Here are some things to keep in mind before you get started on your journey. The first investment you should make is that of time. Take your time to determine what are your financial goals and the time frame in which you want to achieve them. Remember to be realistic. With the current real estate market, chances are you will not become a millionaire in six flips. Today, more than ever before, the beginner investor can get burned and lose a lot of money in the process. Just like with any business venture, you should write down a business plan. Determine how much time and financial commitment you are willing to give to this business. Make a five year plan with detailed goals, particularly for the first year. Review this plan after six months and again two years later. This will help you stay on track. Your financial commitment is a crucial element of that business plan. Estimate how much money you have to invest. This amount will differ if your first investment is your primary residence or a flip property. If you only have limited capital, say $10,000, then your best option may be to buy a home for yourself to renovate and sell within a year or two or to buy a quick flip ‘fixer upper’. In some places, you can get financing for a second property with no money down as long as you have good credit and money for the closing costs. This is a risky proposition because the lending costs will be high. You would have to buy and sell quickly, and the real estate market would need to be in an upward climb. You should be mindful of the legal and tax consequences of this type of financing for your investment. The alternative would be a regular mortgage or private financing where the loan would cover the cost of the purchase and maybe some of the renovations. Your homework on the property and the market will be extremely important because you stand to lose big. You will be legally responsible for the whole amount of the loan if something goes wrong. Another important aspect of your business plan will be to determine what level of risk you are comfortable with. Be honest with yourself and write down how much risk you are realistically willing to take. If you are normally very careful with your investment and try to always protect your capital, don’t try to get into high risk real estate investments. Another important aspect of your plan will be to decide how much time you are willing to commit to this. Will you be doing the renovations yourself or supervising contractors? Now would be a good time to start establishing relationships with lenders and contractors. Learn about the market in the area you are looking to invest. Familiarize yourself with the contracts, insurance, tax impacts and legal requirements of real estate investing. With some careful planning and homework, you too can generate a healthy additional income from real estate investing. You may even be able to make it a full time job. Real estate investment is one of the highest paying investment there is. Look at it as an adventure. Be willing to learn and make mistakes and you too can make money investing in real estate.
November 22nd, 2010
posted in Money Investment
Most of us are not aware of it, but the safest and best prospect during these times of economic crisis is real estate money. We may falsely believe that real estate money is risky because of the debacle and the stagnation that prevails in the real estate industry. However, if we do our homework and study the ins and outs of investment opportunities, real estate money will come out better than most other investment options like the stock market.
What seems to be ironic about the situation we are in right now is the financial woes of others are opening up a lot of opportunities for our real estate money. Seasoned investors are on the look out for some of the best buys in the real estate market. This could only mean the more we see further deterioration of the real estate industry; real estate money becomes even more attractive to investors.
Elements of a Good Real Estate Money Prospects
Failing in the present economic crisis, real estate investments remain as one of the most attractive and safest form of investment options. This type of investment is characterized by reliable and increased earning potential.
Real estate money is an option for those who can and plan to stay for a long haul. Real estate will yield dividends in terms of increased real market value of the property. The element of real estate money is as real as taxes we have to pay every year!
What is important, however, is to look for the best real estate investment properties available for your present capacity. The key to success is to look for prime property that can be bought at a price that is much lower than its fair market value. A completed purchase would immediately result to large profits for the buyer. Another issue to consider is the reason for buying a real estate property. An investor should be able to answer whether he is buying a property for him to keep or to sell. If one intends to keep the property either for rental or for personal use, then he should include in the equation aspects relating to cost of repair and maintenance.
On the other hand, if one intends to hold on to the property on an interim basis, the related cost may be minimal as repairs required in order to restore the property in good condition for immediate re-sale. This may not be as big as when you would like to keep the property on a long term basis.
While looking for some good opportunities for our real estate money, we should also weigh the risks of all the options being considered. It would be a shame in pursuing an investment choice considered as risky. The factors to consider should include the location, the overall physical condition of the property and the method used to purchase the real estate property.
Finally, once you are about to close on a good real estate money investment, you must have in place a good and realistic investment exit plan. This plan should cover all possibilities by providing the safety nets for all the related risks of your investment options.
November 21st, 2010
posted in Money Investment
The time value of money concept is fundamental to all financial transactions and is a key precept in the discount buy. Capitalizing on this concept is the easiest way to make money. Using this financial concept can change your current economic picture and give you a bright financial retirement future.
The time value of money compares the value of a dollar today with the value
of that dollar in the future, whether it is six months, two years, or twenty
years from now.
The principle states that the value of a dollar received today is worth more than
a dollar received in the future. Compared to the buying power of a dollar today,
a future dollar won’t be able to buy as much because of the coming inflation created
by government overspending. The impact of inflation becomes more significant when
you increase the amount of time and money involved.
CREATING WEALTH FOR RETIREMENT WITH DISCOUNT BUYING
The following chart shows the future value of $1000 at different inflation
rates over time.
Compound Interest
We can use the same principle of the time value of money to work for us
to counter inflation. We do this through earning interest on our money at
a higher rate than the inflation rate. This principle works the same way when
you use it to make your money grow, and is the easiest way to make money.
The concept of growing money is called compounding. You take a certain
amount of money, invest it, earn a return on the investment, and then reinvest
your initial investment amount and earnings over a period of time. You keep
turning the money over and as this base amount grows, so does the amount
it earns in interest. This is illustrated in the following chart.
Year Amount Interest Total Value of
Invested Earned Investment
Another money growth concept is the Rule of 72. The Rule of 72 is a
shortcut used in the financial industry to determine how long it will take to
double your money. All you do is divide the number 72 by the interest rate
you’ll be earning. If you invest one thousand dollars today at 12 percent,
you would discover, after dividing 72 by 12, that it will take six years to
double your money.
A similar principal is the rule of 112. This rule determines how many years
it will take to triple your money. At a 6% interest rate, you will triple your
investment in a little over 18 ½ years, at 12% it would triple in roughly 9
years, and at 18% it would triple in 6 years.
The time value of money is crucial to the discount buy business because in
this industry, deals revolve around the concept of paying cash today to
receive cash in the future, definitely the easiest way to make money.
November 20th, 2010
posted in Money Investment
Deferring taxes on your income is an investment strategy in which income taxes are paid at a later date for money invested now. The benefit of tax deferral is that it provides more money for you to invest now.
For example, you are able to deduct $1000 from your taxable income this year and invest it into an interest bearing account, and in return, this deduction allows you to pay approximately $200 less in income taxes for the current year. You now have $200 more than if you had not invested
the $1000. If you add the $200 you deferred in taxes to the $1000 you have already invested, you now have $1200 growing in your investment.
Another type of tax deferral used by investors is the deferment of taxes paid on interest earned. The dollars invested have already been taxed, but any interest earned is tax free.
Investment Vehicles
Tax deferred accounts shelter your money from taxes until you begin making withdrawals in the later part of your life, when you’re likely to be in a lower tax bracket. The type of investment vehicles best for you depends on your situation.
One available plan is the 401 (k). This vehicle is available only through employers who offer the plan. It allows you to make tax-deductible contributions that grow tax deferred until you withdraw them. Depending on your particular plan, your 401(k) plan may come with a bonus. Some employers match your contributions. You could make 25%-100% on your money instantly if your employer offers matching funds.
A 401 (k) allows you to contribute much more per year than many of the other retirement plans. You can contribute up to $9,500 to your 401 (k) per year and your employer can contribute up to $30,000 per year. You can also have your bonuses issued as 401 (k) contributions to build your retirement wealth even faster. If you ever leave your employer or wish to have more freedom with your 401 (k) investments, you can always rollover the assets in your account into an IRA.
A 401 (K) may work for a beginner at investing, someone who does not know how to invest in stocks or which are the best stocks to invest in.
Another type of plan offered by an employer is the 403 (b). This plan is for public school and non-profit organization employees and it is tax deductible and tax deferred. You can contribute up to $9,500 of your annual gross income each year to this plan.
With 403 (b) plans, beware of a few cautions. Your contributions are generally invested in a tax-sheltered annuity, which may have heavy sales charges and low guaranteed rates.
Anyone with earned income, and the non-working spouse of anyone with earned income, can open up their own IRA and contribute up to $2000 a year. Your accrued earnings are not taxed until you begin withdrawing money from the account. However, withdrawals cannot be made without penalty before age 59 ½. Even if your contributions do not qualify for a tax deduction, your earnings are still tax deferred.
November 19th, 2010
posted in Money Investment
If you want to make money, investing in the stock market is a very great way to achieve it. Try the penny stocks system. Most people think that this method is very risky, but if you know what to do, you will definitely get a great money return. When you invest below 2 dollars, that is considered as penny stocks. For beginners, investing in newer companies is better than investing in established and bigger ones. Shares of some bigger companies are less expensive because of the problems they have. Instead of putting your money here, invest it in companies that are growing. This gives you more chance of making more money. Here are some points to remember in finding the best companies where you can have your penny stocks. First, study and evaluate the industry where the company belongs. Ask yourself, is this industry rising and growing? Can the new company emerge from the competition or the competition too tight for the company to grow? By this, you will know if the industry can make the company successful. Next, you have to have an overview and background about their management, the people and management style. It is also important to know the products they offer to customers. Are their products possessed edge or just the same over other companies in the industry. Do they have strategies so people will turn to them? It is very important to look for a company that produces exclusive products or those that will really be patronized by people. Know their financial status. It is natural for new companies to have a zero profit at first, especially in the times when they are just making their name in the industry. What is important is to see improvements over a time, a few months after or a year. Having an uptrend is a very good sign. Always gather news about the company. You can have information over the internet or newspaper and use those for analysis. Investing in the stock market requires wise planning and decision. You can invest under common or preferred stocks. But for some with big amount of money, they will definitely choose to be on top list, such as to invest as creditors or bond holders. Either way, by right background study and analysis over companies and industries, you will make big money when you invest in the right company. Investing always comes with risk so before putting your money in stocks, be sure to know the risks you may embrace. There are some tricks in the stock market. Sometimes, the share goes up even the trend goes down, or the other way around. So it is very important to always be updated on the latest news about the stock market and stock exchange. You can pull out your money when the stock is up and invest it to other companies. Or you just let it there until the stock goes higher. Proper timing is important and you should learn how to do it by reading books on stocks or just by reading stories of the successful investors, how they made it and their tips.
November 18th, 2010
posted in Money Investment
Affiliate Marketing is an online marketing technique to provide real work at home jobs. It has been associated with many different names; Bum Marketing; Article Marketing; Internet Marketing, Online Marketing and if you are new to the world of the internet, you need to identify the difference between what differentiates a scheme to take your money as opposed to a legitimate Business Internet Money Online Opportunity to make you money?
I am going to identify programs you will need to clearly understand in order to avoid the pitfall of being asked for money to make money. These pipe dream schemes are more numerous than the legitimate programs out there like Affiliate Marketing. To become an Affiliate Marketer quickly and effectively I give links to 2 resources that provide blueprints to the methodology or processes for making money online this way. However, before you try these legitimate blueprints to make money online be aware, and I hope not already painfully so, of several of the pipe dream schemes that are out there:
(1) The Get Rich Quick Scheme. Easily spotted because they ask for a lot of money to teach you how to make money. They sound too good to be true. Your intuition will alert you to the fact they are not legitimate. They use the guise that they are giving you a bargain. One program listed a savings of over $23,000 dollars if you simply invested $597 dollars today. Sure…
(2) The Ponzi Scheme. We all have seen recently how painful this type scheme bilked multi-millionaires out of money by the master mind Bernard Madoff. The Ponzi scheme is out and out fabrication or lie that a legitimate business is behind an offering using false documentation and products to deceive the consumer. This can be done so effectively that even the rich can be taken for millions. Be sure that who you are dealing with is legitimate!
(3) The Matrix Scheme, Elevator Scheme, Escalator Scheme or Ladder Scheme. These are schemes involving the exchange of money for a product. But you will not get the product but given an opportunity for a side bonus of being added to a waiting list for a product of greater value. Ultimately you paid for a product and get nothing waiting for the better product. Pretty sneaky and beware.
(4) The Paid-For Opportunity Scheme. The “Paid for” is work of some kind that you are paid for. In this age of the computer, it can be simply doing web page hits or surveys. They can even appear to be legitimate and you might get $.50 for a 3 hour survey or $.05 for 1,000 clicks on a web site. Sounds pretty profitable, huh?
(5) The Internet Pyramid Scheme. In 2003, The FTC disclosed what it called an internet-based pyramid scheme. Customers would pay a registration fee to join a program and purchase a package of goods and services. The company offered “significant commissions” to consumers who purchased and resold the package. The FTC determined that the company’s program was instead a pyramid scheme because it did not disclose that most consumers’ money would be kept, and that the company gave participants material that allowed them to scam others. What people will do for money?
(6) The HYIP Scheme. The High-Yield Investment Program (HYIP) scheme is a type of Ponzi scheme. It is an investment scam that promises an unsustainably (unbelieveably) high return on investment by paying previous investors with the money invested by newcomers. You will have to pay money to get money. Beware. They will appear legitimate saying you will get returns of 100 to 500%. Honest ones usually invest your money in such things as commodities, financial instruments, offshore stocks, and other investment programs that can return, maybe up to 3% daily, if all things are going in the investments favor. A far cry from 100 to 500%!
(7) The Payment Randomizer Scheme. This is the newest earn money fast on the Internet schemes that claims you do nothing but collect money. Upon your initially signing up for between $1 to $20 you get a user id that will be associated with a button on the page that randomly, when the next person clicks on it, may pay you money. The page or website will demonstrate enormous cash making opportunities based upon your initial investment. It’s just pure gambling with very little return on your investment. Who is making all the money? The founder’s of the sites who are charging the initial fees. You’d be better off doing (4) above.
The famous entrepreneur and founder of Ringling Brothers and Barnum & Bailey circus, P.T. Barnum was quoted as saying, “There’s a sucker born every minute.” Don’t be that sucker, but research legitimate business internet money online opportunities like Affiliate Marketing and you will eventually be successful.
November 17th, 2010
posted in Money Investment
Most times, you will need a professional body, an individual or a mutual fund investment firm to handle your money matters. The reason why you would need their services is because, they have experience and technical know how on handling investments. These people come in hardy when you do not have the time or the expertise to manage your portfolio of bonds, shares or money securities. Its actually a cheap way for an individual investor to hire the services of fund manager to handle, monitor and grow money.
As an individual investor on your own, you may not manage to invest in a variety of investment bonds or shares because of the documentation requirements and the need to monitor the price changes constantly, unless you have devoted your time for that only. A mutual fund investment firm will invest your money in a variety of investment portfolios, such that, a loss in one is spread across the stocks that have gains.
A Mutual fund firm buys and sells large amounts of securities and bonds at a time. This has the benefits of economies of scale, since they qualify for volume discounts, reducing commission, transaction and accountants charges. An individual handling one security every time would have to pay considerable charges against his savings, since every transaction is treated independently thereby lowering his profits.
Mutual funds come in hardy to those investors who do not have large sums of money. These people can invest in small amounts, ranging from $100 to $1000. You do not have to wait long periods of time to accumulate enough money to buy a round lot of a stock i.e the normal trading unit of a security entity, usually 100 shares of stock. This arrangement also comes in hardy to those in formal employment and can only manage to make small monthly contributions.
Once an individual decides to withdraw the money invested, the procedures involved are easy and you can get your money back immediately. This goes to prove that mutual funds are one of the most liquid securities in the market today. These securities are easily converted from bonds to actual money without any loss of value.
November 16th, 2010
posted in Money Investment
As you’ll know, the main global stock markets have been VERY volatile over the last 12 months or so.
And it’s likely that you have money invested in one or more of several investment vehicles:
ISAs
Personal Pensions
Self Invested Personal Pensions
Life company funds
Unit Trusts
Open Ended Investment Companies
Investment Trusts
For example, if you have capital invested in ISAs and personal pensions, you may well have your money invested in up to 20 separate investment funds.
Knowing how much risk your overall portfolio (not just the individual funds) is subject to is a crucial part of investing.
It’s not good enough just to know how the funds may have performed in the past – this just tells you part of the story.
What you need to know is:
what is the volatility of the overall portfolio?
does this suit the amount of risk you’re comfortable with?
and, does it suit the amount of risk you NEED to take?
So, the first step is to find out how much of your capital you would be prepared to see fall in value before you took any action, positive or negative.
This is your risk tolerance.
For example, if you have £100,000 invested and you don’t need access to the money for 20 years, you may well be prepared to see a fluctuation of up to 25% in any given year.
Next, you need to know what the volatility of each fund is. This may also be referred to as ‘standard deviation’. This one factor will indicate how risky the fund is.
As an example, if a fund has achieved an average annual growth figure of 11%, you may well want a piece of the action. However, if the volatility factor is 22, then the fund’s range of performance in any given year is:
33% (11+22)
minus 11%
This may well be too much risk to bear.
Once you know the volatility, you need to link it back to the impact that the loss of capital would have on your short, medium and long term financial plan. You may find that even if you lost 50% of your capital, you would still achieve your income goals in retirement and any other goals.
By knowing this one factor alone, you may well end up making a different decision than you would have done (with your invested capital).
I know we’ve looked at the negative here – the reverse may also happen and the higher volatility could mean that you end up with a higher amount of money than you would have done.
The Financial Tips Bottom Line
I hope you’ve grasped the point – there’s SO much more to investing your money than by simply picking a few investment funds based on their past performance.
Find out how much risk you are REALLY taking with your invested capital. It’s a logical thing to do as you had to earn the money in the first place, so surely it deserves to work as hard and efficiently for you as possible?
November 15th, 2010
posted in Money Investment
Do Mutual Fund Managers vote on proxies contained by their portfolio?It seems that on the proxy of every stock I own nearby is a resolution to approve yet another mega-perk for the top executives. I earn a comfortable income, but these guys earn in smaller…Do Roth IRA returns count as income?Suppose the Roth IRA contribution salary define holds at $100,000 or near it for a while. Eventually, the worth of my portfolio my grow to one million. In a bull flea market, I could easily brand $350,000…Do the returns of ETF’s such as SPY include the dividends the underlying stocks settle?Would the return of SPY more closely mirror the performance of the S&P 500 or the S&P 500 Total Return?Do we in recent times forget the failure when it comes to the rich?For every Donald Trump, Bill Gates, Warren Buffet, and Robert Kirosaki, there are hundreds of thousands of folks who tried to get rich and ruined. It’s natural test.Do Yahoo mutual fund charts use price or on the same wavelength price?Many mutual fund charts seem to drop approaching a rock in December when means gains are compensated. It makes comparisons beside other funds difficult. How do Yahoo charts work?Do you believe this is possible?The minimum investment is $100… and the maximum investment is $25,000. Here is what it looks like next to just a $1,000 investment… re-deposited & (kept in) next to 160.2% earned interest every 60 days within a 60…Do you consider investing contained by the stock souk is a virtuous financial move within charge to set free money?I am trying to save money for my my adjectives, my retirement. I am 23 and I want to do it while I am young.Do you construe that we are to hand the bottom of the stock open market, or do we hold deeply to budge since we hit bottom?I am still investing, but I don’t like seeing what I do enjoy in the souk keep going down respectively…Do you deliberate that National Storm government is a flawless stock? symbol NSMG?This is a stock that is nominated in the pink sheets but it seem like a virtuous play. It always go up when there are storms because they are a building company…Do you estimate Google have hit bottom?I think Google have pretty much levelled out for the recent past month and is going to make a bound… I think I will pick it up if it drops down to around $410 again subsequent week. What…Do you expect the Xerium Technologies, Inc (XRM) will bounce stern former the $1 discoloration?Does anyone have any thoughts or investments beside this company? What is the future of XRM? Good time to investDo you give attention to that the recession of the stock souk is almost end?Thanks for the answers.Do you hold any proposal for a rookie investor?I would like to start investing my money, what company would you reccomend to someone simply starting out. I’m pretty sure I couldnt do it on my own, but at the same time I…Do you know of a site where on earth I can determine appeal of mature silver coins?I’ve inherited a backpack full and am trying to determine there plus. Any suggestions on how to go roughly speaking doing this. Thanks in finance!Do you necessitate a license to post a newsletter w/stock recommendation?and charge for the service. Are any minimum credentials needed or can you just post a sign within front of your door (or Website).Do you presume I should step ahead and buy the franchise?It’s a cheap franchise of an advertising company. Start-up $ is not a problem. I will be buying the rights to supply in a demanding city, and publish ad’s with the said companies editorial. …Do you reason this is a flawless theory?I’d like to buy the rights to get rid of advertising/distribute papers in an nouns with a population of 200k. It’d own editorials and graphics provided by the company, I’d a short time ago have to trade space…Does a funds bond accure interest monthly or just at parenthood?Lets say I want to put 100 dollars within a 7 month savings bond (a) 4.28 the current rate. With monthly accumulate intrest you gain 34.09. If you take 100*.0428 you gain…Does anybody see where on earth jcpenney’s adjectives is?THere estimated earnings per share have dropped from 80 cents to 50 cents per share quarterly. I think it have solely to do with near cheapness and there dead loss to have mediocre help that…Does anyone bar me get the impression that investing contained by Ford Motor Company, right in a minute, is a smart belief?Ford is poised to expand in both India and South Africa and stock prices are at an adjectives time low. Any investment gurus…Does anyone devise cde is going to run up? anytime soon?i bought this stock at 4.89 and now it is at 3.88 if anyone owns or know a lot around this stock and what it is doing please help.! should i get rid…Does anyone enjoy money invested next to Sharebuilder.com?If so, do you need closely of money to start investing online? Not necessarily to gain a lot of money, but more for the experience…where on earth would you recommend starting at for someone trying to get into…Does anyone enjoy sharebuilder? if so, how accurate are the Stock Ratings they pass?So i recently started investing surrounded by the stock market. i am going through sharebuilder.com, and be wondering how accurate are the stock ratings that are given? there be a couple of…Does anyone hold any opinion or thoughts on the current situation near Clear Channel and their buy out?I guess only respond if you are decipherable with the most modern developments or are a CCU share holder yourself.Does anyone know any websites.?Australian websites that are Chinese(language- chinese) about Australian financial things.Does anyone know of a company specifically childish and growing and pays dividends?I am writing a research paper for my Wall Street class, and requirement a young, growing company that pays dividends (less than 5 year olds I guess). I own to compare it to…Does anyone know of some polite, cheap Australian shares I could buy that look to bestow me illustrious returns?I’ve already got $500 (I know it’s not much, but I’ve solely got a apathetic job) investing in GOG shares and I’ll hold another $500 available to…Does anyone know roughly stocks?can anyone explain to me how to buy stocks, sell out and get profit. in other words, im not interested contained by becoming some type of lifetime invester, just looking for a track to make apposite quick money (if THAT is…Does anyone know the good point of a 1928 silver card – facade good point $1.00?…or a $2.00 bill dated 1976? Thank you!Does anyone know this company ? buy go or hold?OSTE – Osteotech U.S. Patent Office Confirms Validity of Osteotech’s U.S. Patent No. 5,676,146 Osteotech, Inc. provides Osteo-Biologic solutions to surgeons and patients for the repair of the musculoskeletal system. It operates within… More Investment and Investing Q&A Please visit : invfaq.com
November 14th, 2010
posted in Money Investment
HYIP stands for high yield investment program. There is definitely intrinsic risk involved in these programs. You should definitely be aware of the risks when looking for a good way to make money online. Other risky ventures in this area are Forex trading, online gambling and the Stock exchange. There are ways to find the best HYIP sites and programs to minimize risk factors.
Allocating your assets is a great way to protect yourself in the event that you sign up for a program that is a scam, or if you happen to lose money in one of your investments. This is also called diversification and has been used for years by people who are investors and traders in stocks.
Making sure to research many websites and HYIP programs is also a necessity if you are to be sure of the legitimacy of any investments and ways to make money online.
Divide and Diversify
Spreading the contents of your financial portfolio over many areas is known as diversification. This simply means that you do not put all of your money into one scheme, thus lessening the chance of losing a lot or all of your money invested. Here are some of the risks to consider in diversifying your make online money profile:
Knowing that there are risks in any investment program is one of the best ideas to keep in mind when diversifying in order to make money online. Using different HYIPs with different average investment amounts across your portfolio minimizes money losing risks. You are likely to gain more in the trusted HYIPs that you already use to make online money. Diversification among the old and new HYIP sites will help minimize risks and most likely get higher yields when you are looking to make money online.
November 13th, 2010
posted in Money Investment
Investing in mutual funds is considered one of the safest options. Today, a large number of people are engaged in investing their money in them. Many financial experts believe that if you are a fist time investor then a mutual fund is good for you. It is a simple and hassle-free way to start accumulation of your capitals at low risk.Popularity Reasons* One of the biggest benefits and popularity reasons of the mutual funds is that a person who does not have much money may able to invest in a mutual fund. Most mutual funds require a minimum of $1000-$2000 for the initial investment.* The second reason of their popularity is that you may select thousands variety of mutual funds and may easily get information on this matter. Many magazines or newspaper provide expert views regarding this matter, so it is very easy to get detailed information about their authenticity.* The initial investing of a mutual fund is very low, so it allows people to continue their deposition and give opportunities to pay for other investments or issues like loans and medical expenses.* Like the stock market stocks, these fund values are not changing frequently. So, you do not need to keep an eye on the regular updates of your mutual fund.* A mutual fund gives compound interest. If you have fixed your money for about 10, 20, or 30 years in a mutual fund, it will give you high returns.* The diversification has made this online investment plan more popular among masses. It is a risk management technique which implies that your money is in a safe place. In this investing plan, the collected money invests in different countries stocks. It refers the idea that your country stocks are either increasing or decreasing, it will not effect the increasing rate of your mutual fund. So, the chances of low interest rates are very rare. * These funds allow its investors to choose different sectors to invest their money. If you are interested in banking sector, it allows you to invest your money in this sector without any hassle. According to financial expert’s point of view, choosing the real estate sector for mutual fund is good and safe. They think the future of this sector is bright.However, investing in a mutual fund is not very tough task. You can take help of an expert broker. He will teach you the rules and regulations to invest in this plan. Many online financial companies are ready to give any type of financial assistance, you may also take help from these companies.
November 12th, 2010
posted in Money Investment
As a new real estate investor, when you begin researching information on real estate investing for beginners, you’ll find that there are a lot of gurus and mentors out there looking to sell you high priced information. You’ll also find plenty of chatter-boxes at local real estate investing forums and other watering holes that will share (brag?) all day long about their investing trials and tribulations, especially if they have tenants or rehabs. (Those types of projects tend to be fraught with problems, something that can scare beginner real estate investors off – when maybe it should be attracting them!) You can also find some excellent offline resources at the library, bookstore and your local investor club. Maybe you’ll even find someone who’s out in the trenches on a regular basis and is willing to take you out on the streets to show you some of his properties.
What you won’t find as often, especially for free, is a coherent, executable business plan detailing what it takes to get going with real estate investing as a beginner.
What you really need is a handbook entitled: Real Estate Investing For Beginners that lays everything out for you A to Z, with what to do at every step along the way.
Unfortunately, putting together a super and useful reference like that is time consuming and you have to consider that a) If someone is already making money investing in real estate, her time is valuable, and b) if she’s going to invest her valuable time in putting together a real estate investing guide for beginners, she’s got to have an angle.
That’s an excellent thing to keep in mind – everyone in the real estate investing education industry seems to have an angle. They are directly incentivized to make you feel that real estate investing is easy, you can do it, and if you just part with some money, they will give you the handbook with all the answers.
BEWARE: If you can’t figure out how they’re getting paid, you’re missing something… Everyone wants to get paid in this business.
Well, I hate to tell you… I don’t have that comprehensive handbook for you either.
That’s the bad news.
The good news is that I can give you some very important words of wisdom that helped me when I was getting started in real estate investing as a beginner. (And I started right out of college without a good job or anything, so don’t think it can’t be done.)
Real Estate Investing Observations – What Every Real Estate Investing Beginner Needs To Know:
1) You will have to trade time or money to get what you want in real estate. You can’t get something for nothing, so even if you buy an expensive course to get someone else’s experience and shave years off your learning curve, you’ll still HAVE a learning curve. Plus, you’ll need to find leads, and that type of marketing takes (you guessed it) time and/or money.
2) Leverage cuts both ways. When the market is going up, leverage can be a great ally in helping you acquire more property with less of your own money. However, when the market is soft or declining, as also happens with real estate market cycles, having a lot of leverage can put you “upside down” on your equity and cash flow – a very risky situation. Protect yourself by “making your money when you buy” and passing up those “skinny” deals.
3) It’s all about NEGOTIATING with the motivated sellers. A lot of courses make you believe that if you find the motivated sellers, you can just pluck up the deals like daisies in the orchard. That’s almost true. Whether you’re working in commercial or residential real estate, you’ll get much better deals when you negotiate with a motivated seller. However, the key is that you must NEGOTIATE. You have to make offers that will work for you and engage the sellers in conversation. Very rarely will the buildings be lying these listed for 50 cents on the dollar (if they are, they’ll be snapped up by other investors). You have to find sellers that you think may be motivated and offer them your low cash offer or terms offer in order to see if they’re willing to work with you. Engage them in the conversation by making lots of offers, and NEGOTIATING with the ones that are motivated.
4) Figure out your rate of return. Sometimes, when you don’t have a deal, it’s easy to think “any” deal would be good. However, sometimes the best deals are the ones you PASS on – you “make” your money by saving yourself from some expensive mistakes. Don’t waste time on property that doesn’t make sense when you run the numbers. Don’t get emotionally attached just because someone says they’re motivated or willing to work out terms with you. Run the numbers. Always focus on the numbers.
5) You get paid for solving problems. This is a business with a lot of problems. Sellers can get very emotional, or have a lot of financial trouble, at the time that you’ll be working with them. That’s stressful for anyone, especially when the transfer of a large asset like a house, apartment building or office/retail center is involved. Realize that you may go through some challenging emotions of your own. That’s natural. If you can hold it together and survive the up-and-down roller coaster, you should do okay.
No one says real estate is easy unless they have a course to sell you. It can offer some great returns, but there’s a reason not everyone goes after them. Not every property is a winner and finding and acquiring the winners can be a challenge. However, if you are committed to making your real estate investments work for you, then focus on getting yourself educated and staying in for the long run.
November 11th, 2010
posted in Money Investment
Residential real estate investing is a business activity that has waxed and waned in popularity dramatically over the last few years. Ironically, there always seem to be a lot of people jumping on board with investments like stock, gold, and real estate when the market’s going up, and jumping OFF the wagon and pursuing other activities once the market’s slumping. In a way that’s human nature, but it also means a lot of real estate investors are leaving money on the table.
By understanding the dynamics of your residential real estate investment marketplace, and acting in opposition to the rest of the market, you can often make more money, as long as you also stick to the real estate investing fundamentals.
Real estate investing, whether you’re buying residential or commercial property, is not a get-rich-quick scenario. Sure you can make some fast cash flipping houses, if that’s your bag, but that is a full time business activity, not a passive, long term investment. The word “investment” implies that you are committed to the activity for the long haul. Often, that’s just what it takes to make money in real estate.
So, while the pundits are crying about the residential real estate market slump, and the speculators are wondering if this is the bottom, let us return to the fundamentals of residential real estate investing, and learn how to make money investing in real estate for the long term, in good markets, as well as bad.
A Return To The Fundamentals of Residential Real Estate Investing
When real estate is going up, up, up, investing in real estate can seem easy. All ships rise with a rising tide, and even if you’ve bought a deal with no equity and no cash flow, you can still make money if you’re in the right place at the right time.
However, it’s hard to time the market without a lot of research and market knowledge. A better strategy is to make sure you understand the four profit centers for residential real estate investing, and make sure your next residential real estate investment deal takes ALL of these into account.
Any residential real estate investing deal that stands up under the scrutiny of this fundamentals-oriented lens, should keep your real estate portfolio and your pocketbook healthy, whether the residential real estate investing market goes up, down or sideways. However, if you can use the real estate market trends to give you a boost, that’s fair, too. The key is not to rely on any one “strategy” to try to give you outsized gains. Be realistic with your expectations and stick to the fundamentals. Buy property you can afford and plan to stay invested for the long haul.
November 10th, 2010
posted in Money Investment
With the experience of recession in the recent past, people have become more and more cautious with their investment plan and think twice before investing anywhere. People are trying to invest their money where it is safe and secure and very few these days are ready to take any chance with their hard earned money. Investment firms in DC are a helping hand for those who are residing in those areas. They have experts to help them invest and make money.
People are moving towards property and other such type of investments to make sure that their money remains safe and even increases to make their future secure. Investment firms in DC even join hands with your small business; they raise capital by issuing and selling securities. They can be considered as an ideal partner for your business.
It’s in one’s own hand to decide and select investment firms in DC and have a secure business or investment. These firms are available to provide their expert comments and knowledge and advices you where to invest and what amount of investment would be fine.
While you are making a selection on investment firms in DC, you need to keep certain points in mind. You your self should have sufficient knowledge about the investment and then should contact an investment firm to understand the process well. Make sure you lay down your ideas and expectations well and choose the one which can help your business grow today and in future too.
Make sure the advisors you are dealing with are confident and have good knowledge of subject and should be able to bring funds through company’s IPO.
The investment or business advisor should be trustworthy with sound knowledge. He or she is there to make your business flourish; hence his advises are very important however, it’s your business so make sure you voice your opinion and ideas. The communication between both of you should be very clear so that both of you are on the same page.
Do ask all the questions that are there in your mind before deciding on one firm. Clear all your inhibitions and make clarifications if something is troubling you. Keep the future in mind while making a decision. You would start the business in small which will have its own specific requirements but surely it would grow with time and the business needs would change, your partner should be the one who can meet your current and future needs effectively.
It’s a computer age; everything is done with one click. Choose an investment firm in DC that even offers online services. You can keep a track of your business by checking your accounts as per your wish and time with the availability of online facility. This will make sure you are well aware of the investment or business and nothing would come as a surprise to you.
One should always inquire well before choosing an investment firm in DC. Don’t be hesitant in asking for their track record and successes. It may not ensure growth to your investment or business but will surely give you an idea if the firm is well established one and can generate money for you or not. There are ample of firms existing in DC with their own track records and success. But you have to choose the one which suits your purpose the best.
November 9th, 2010
posted in Money Investment
If you are looking for a list of companies with highly profitable portfolio offering best High Yield Investment Programs on one platform, MoneyDice.com serves all your purposes. The company offers the best services in investment apart from expert advices on financial aspects.
MoneyDice.com is known as the best portal for the listings of High Yield Investment programs in the online market. The companies listed on the portal have impressive portfolio and highly experienced professionals. Some of the companies listed on the website include Prince Fund Ltd, Orbis Trends, Fenix Trust, Eigeline Network and many ranked and unranked companies.
Many first time investors are stuck by numerous build-ups about various investment offers. MoneyDice.com helps these new investors to navigate through the offers and settle down for a confident and safe investment with high chances of gaining return on investment.
HYIP offers interested investors to invest with them in order to get huge returns on their investment. The money invested in these programs is used in industries and stocks to get potential huge returns. Most of the money is directed to the metal industry and into technology but these programs do not depend solely on any particular industry. The more diversified they are, the more chances of heavy return on investments.
The listings on MoneyDice are well researched and measured before they are presented to the investors. MoneyDice details out about how the money invested by the investor is used and how the High Yield Investment Program is performing on the profit measures. It offers a listing of Top 10 most profitable and most popular companies dealing in online investment. These lists help the potential investors to decide which company to invest with based on each company’s performance, profit ratio and popularity hits.
The web portal depicting the minimum and maximum investment amount under various HYIP schemes and the interest on the investments renders a detailed analysis of the listed companies. The portal also offers the latest news about the companies and their earnings along with a profit graph. If there are any chances of failure of any program, the investors will get to know through MoneyDice. It brings into notice many profitable programs for the investors.
HYIPs usually possess great degree of uncertainty as they could be introduced in the market as disguised scams by many investment companies. MoneyDice.com helps the investors by advising them on their financial insecurities and keeps a regular check on the companies it is listing on its portal.
MoneyDice.com allows its visitors to leave their votes regarding the listed companies and shows the rating status as very good, good, bad and very bad in order to help the potential investors to choose the right and best offer for them to make money online.
HYIPs can give the investors benefits or emaciate their investment. The right advices from experts goes a long way in helping the investors choose wisely for their hard earned money. Online investment of money can scare some investors off. This is when MoneyDice.com offers sufficient information about the programs and knowledge about the potential benefits and risks to help the investors feel secure while investing.
November 8th, 2010
posted in Money Investment
“Galaxies
NASA reports that galaxies are speeding away from Earth at 90,000 miles a second. What do you suppose they know that we don’t?” – From Bob Phillips’, “The Best of the Good Clean Jokes.”
What is the best investment mix for the last quarter of 2010? This article reveals the best stock strategy for you. Historically, the stock market goes down in September and October during a midterm election year. Move investment money from cash and bonds back into the stock market gradually over this period of time. Historically once elections are over, the stock market rallies from November into the first or second quarter of the following year. Your goal is to have a majority of money in the stock market by the end of October 2010. At the latest, you want your investment move in place before 2011.
In order to maximize your stock market investment returns, place your investment money in companies that shall appreciate faster than the general stock market. Personally, I use a momentum trading strategy. I pick a basket of seven stocks that have the best 26-week total return (stock appreciation). Stocks in this class are statistically proven to move higher over a short period of time, a month or two. Once these stocks fall from the top of the list to position 15 or lower, replace them with others at the top of the list. Do this investment rotation every month. You must execute this strategy with fanatical obedience to the rules. This takes the emotion out of your investment decisions. There are many other types of momentum trading strategies. Try the one I use as well as others.
I caution investors with no momentum-trading experience, that this investment strategy is a financial roller coaster ride. However, once a momentum trading strategy is discovered and mastered, it is a lucrative way to make money. To be successful with momentum trading, you must first develop an appetite for risk but not gambling. Next you hedge your investment by balancing your portfolio’s stock and cash positions. Use changes in the S&P 500 stock index to know when to do this, see The S&P 500 Yardstick.
If you are new to momentum trading, start off with a few promising investment strategies as a financially tiny part of your portfolio. Of course, you can trade the strategies on paper without any investment. Personally, I pay much more attention when I have real money invested. Check each investment strategy against the other. Next, check the best strategies against the S&P 500 index. Look for strategies that lose less money than the S&P 500 on downtrends and make more money than the S&P 500 on up trends. At the very least, the up trend minus the downtrend must be better than the S&P 500 movement over the same time to justify the effort. As you gain confidence in a strategy, increase its size proportionately in your portfolio.
Finally, take action immediately. The Bulls are already pushing the market higher in anticipation for a year-end rally. Balanced against this is economic uncertainty. History is only a rough guide for the future. The best way to handle the situation is by moving small amounts of money every week until you hit your target percentages and date well before the end of 2010. Make each investment move the same amount and do not try to guess the stock market ups and downs. Investors call this investment technique “dollar cost averaging”. This goes a long way in taking the gambling out of investing!
“Enough Said
A certain man had a great reputation for always catching his limit of fish. Everyone wanted to know his secret. One day the game warden asked to go along to see where he was fishing.
The man and the game warden got into a boat and rowed to the middle of a nearby lake. The fishermen threw over an anchor, and then reached into a paper bag he pulled out a stick of dynamite, lit a match to the fuse, and tossed it into the lake. There was a huge explosion and several fish floated to the surface.
The game warden was irate. He yelled, “You can’t do that! It’s against the law!”
The fisherman then reached into the sack and pulled out another stick of dynamite. He lit the fuse and then threw it into the lap of the game warden. As he did this he asked, “Are you going to talk or fish?” – From Bob Phillips’, “The Best of the Good Clean Jokes”
November 7th, 2010
posted in Money Investment
Because of the number of discounted properties in the market today, the number of people getting into the real estate investing game is steadily increasing. Many investors are lured into real estate investing with the prospect of high earning returns and increased tax benefits. If you want to make money investing in real estate, now is the time to acquire discounted properties that have attractive qualities and ensure viable income opportunities.
In order to create wealth with real estate investing, you have to establish long terms goals and tailor your investment strategies over the long term. If you purchase investment property, you will need to invest for income today and anticipate appreciation in the future. With this strategy, you will have your short terms needs met with the income that the property is currently generating, plus you have the potential to increase your net worth over time because of the appreciation. This strategy is used regularly by experienced real estate investors looking to make more money over time through real estate investing.
In addition to the income and appreciation generated through the real estate, investors will also enjoy many tax advantages that are associated with owning an investment property. Now tax advantages can vary depending on what type of property you purchase, therefore, before engaging in any transaction, you consult with a tax professional to see what types of taxes benefits you can claim with a property before you actually acquire it.
Another method to make more money through real estate investing is to purchase properties at a heavily discounted price and then resell them for a higher price. This strategy is known as “flipping” and promises high returns. You should always take into account the timing of the purchase and the market conditions as you will not want to hold on to property for too long because your expenses would gradually eat into your profits. As a savvy investor, you should have a back-up plan and should always be prepared to hold on to a property as a landlord, if you are unable to sell the property quickly.
There are numerous ways to make more money in the real estate business. The tax advantages, equity appreciation, and income derived from investment properties are just a few ways to make money in real estate. The profit potential in real estate investing is very attractive and it’s no wonder why many aspiring investors enter into the real estate business with the intention to make more money. If you intentions are the some, then you might be in the right place because real estate is definitely a industry where you can make more money.
Hopefully this article has been of help to you. If you have questions, please feel free to leave a comment in the section below.
November 6th, 2010
posted in Money Investment
The task of raising money for a business is not as difficult asmost people seem to think. This is especially true when you havean idea that can make you and your backers rich. Actually,there’s more money available for new business ventures than thereare good business ideas.
A very important rule of the game to learn: Any time you want toraise money, your first move should be to put together a properprospectus.
This prospectus should include a resume of your background, youreducation, training, experience and any other personal qualitiesthat might be counted as an asset to your potential success. It’salso a good idea to list the various loans you’ve had in thepast, what they were for, and your history in paying them off.
You’ll have to explain in detail how the money you want is goingto be used. If it’s for an existing business, you’ll need aprofit and loss record for at least the preceding six months, anda plan showing how this additional money will produce greaterprofits. If it’s a new business, you’ll have to show yourproposed business plan, your marketing research and projectedcosts, as well as anticipated income figures, with a summary foreach year, over at least a three year period.
It’ll be advantageous to you to base your cost estimates high,and your income projections on minimal returns. This will enableyou to “ride through” those extreme “ups and downs” inherent inany beginning business. You should also describe what makes yourbusiness unique—how it differs form your competition and theopportunities for expansion or secondary products.
This prospectus will have to state precisely what you’re offeringthe investor in return for the use of his money. He’ll want toknow the percentage of interest you’re willing to pay, andwhether monthly, quarterly or on an annual basis. Are youoffering a certain percentage of the profits? A percentage of thebusiness? A seat on your board of directories?
An investor uses his money to make more money. He wants to makeas much as he can, regardless whether it’s short term or longterm deal. In order to attract him, interest him, and persuadehim to “put up” the money you need, you’ll not only have to offerhim an opportunity for big profits, but you’ll have to spell itout in detail, and further, back up your claims with proof fromyour marketing research.
Venture investors are usually quite familiar with “high risk”proposals, yet they all want to minimize that risk as much aspossible. Therefore, your prospectus should include a listing ofyour business and personal assets with documentation—usuallycopies of your tax returns for the past three years or more. Yourprospective investor may not know anything about you or yourbusiness, but if he wants to know, he can pick up his telephoneand know everything there is to know within 24 hours. The pointhere is, don’t ever try to “con” a potential investor. Be honestwith him. Lay all the facts on the table for him. In most cases,if you’ve got a good idea and you’ve done your homework properly,and “interested investor” will understand your position and offermore help than you dared to ask.
When you have your prospectus prepared, know how much money youwant, exactly how it will be used, and how you intend to repayit, you’re ready to start looking for investors.
As simple as it seems, one of the easiest ways of raising moneyis by advertising in a newspaper or a national publicationfeaturing such ads. Your ad should state the amount of money youwant–always ask for more money than you have room fornegotiating. Your ad should also state the type of businessinvolved ( to separate the curious from the truly interested),and the kind of return you’re promising on the investment.
Take a page from the party plan merchandisers. Set up a party andinvite your friends over. Explain your business plan, the profitpotential, and how much you need. Give them each a copy of yourprospectus and ask that they pledge a thousand dollars as anon-participating partner in your business. Check with thecurrent tax regulations. You may be allowed up to 25 partners inSub Chapter S enterprises, opening the door for anyone to gathera group of friends around himself with something to offer them inreturn for their assistance in capitalizing his business.
You can also issue and sell up to $300,000 worth of stock in yourcompany without going through the Federal Trade Commission.You’ll need the help of an attorney to do this, however, and ofcourse a good tax accountant as well wouldn’t hurt.
It’s always a good idea to have an attorney and an accountanthelp you make up your business prospectus. As you explain yourplan to them, and ask for their advice, casually ask them ifthey’d mind letting you know of, or steer your way any potentialinvestors they might happen to meet. Do the same with yourbanker. Give him a copy of your prospectus and ask him if he’dlook it over and offer any suggestions for improving it, and ofcourse, let you know of any potential investors. In either case,it’s always a good idea to let them know you’re willing to pay a”finder’s fee” if you can be directed to the right investor.
Professional people such as doctors and dentists are known tohave a tendency to join occupational investment groups. The nexttime you talk with your doctor or dentist, give him a prospectusand explain your plan. He may want to invest on his own orperhaps set up an appointment for you to talk with the manager ofhis investment group. Either way, you win because when you’relooking for money, it’s essential that you get the word out asmany potential investors as possible.
Don’t overlook the possibilities of the Small Business InvestmentCompanies in your area. Look them up in your telephone book under”Investment Services.” These companies exist for the sole purposeof lending money to businesses which they feel have a good chanceof making money. In many instances, they trade their help for asmall interest in your company.
http://business-olipolus.blogspot.com/
Many states have Business Development Commissions whose goal isto assist in the establishment and growth of new businesses. Notonly do they offer favorable taxes and business expertise, mostalso offer money or facilities to help a new business getstarted. Your Chamber of Commerce is the place to check forfurther information of this idea.
Industrial banks are usually much more amenable to makingbusiness loans than regular banks, so be sure to check out theseinstitutions in your area. insurance companies are prime sourcesof long term business capital, but each company varies itspolicies regarding the type of business it will consider. Checkyour local agent for the name and address of the person tocontact. It’s also quite possible to get the directories ofanother company to invest in your business. Look for a companythat can benefit from your product or service. Also, be sure tocheck at your public library for available foundation grants.These can be the final answer to all your money needs if yourbusiness is perceived to be related to the objectives andactivities of the foundation.
Finally, there’s the Money broker or Finder. These are the peoplewho take your prospectus and circulate it with various knownlenders or investors. They always require an up-front or retainerfee, and there’s no way they can guarantee to get you the loan orthe money you want.
There are many very good money brokers, and there are some thatare not so good. They all take a percentage of the gross amountthat’s finally procured for your needs. The important thing is tocheck them out fully; find out about the successful loans orinvestment plans they’re arranged, and what kind of investorcontacts they have—all of this before you put up any frontmoney or pay any retainer fees.
There are many ways to raise money—from staging garage sales toselling stocks. Don’t make the mistake of thinking that the onlyplace you can find the money you need is through the bank orfinance company.
Start thinking about the idea of inviting investors to share inyour business as silent partners. Think about the idea ofobtaining financing for a primary business by arranging financingfor another business that will support the start-up,establishment and developing of the primary business. Considerthe feasibility of merging with a company that’s alreadyorganized, and with facilities that are compatible or related toyour needs. Give some thought to the possibilities of getting thepeople supplying your production equipment to co-sign the loanyou need for start-up capital.
Remember, there are thousands upon thousands of ways to obtainbusiness start-up capital. This is truly the age of creativefinancing.
Disregard the stories you hear of “tight money,” and start makingphone calls, talking to people, and making appointments todiscuss your plans with the people who have money invest. There’smore money now than there’s ever been for a new businessinvestment. The problem is that most beginning “businessbuilders” don’t know what to believe or which way to turn forhelp. They tend to believe the stories of “tight money,” and theyset aside their plans for a business of their own until a timewhen start-up money might be easier to find.
The truth is this: Now is the time to make your move. Now is thetime to act. the person with a truly viable business plan, anddetermination to succeed, will make use of every possible ideathat can be imagined. And the ideas I’ve suggested here shouldserve as just a few of the unlimited sources of monetary helpavailable and waiting for you!
November 5th, 2010
posted in Money Investment
Investment advice is usually geared toward those with thousands, or at least $1,000 to invest, in addition to the standard three-to-six-months salary socked away in a savings account.
Most of us know how important it is to supplement our retirement with additional investment in traditional taxable investment accounts. Simply maxing out your IRA contributions and putting away 6% of your paycheck into the employer’s 401(k) just may not do it, but not everyone has the thousands that most investment advice requires.Here is a plan developed with the ultra-small investor in mind. It takes just $100, every month for a year.Should You Invest?
First, it is important to prioritize your financial concerns. If you have high-interest credit card debt, do not invest until you are debt free. While it is possible to make more money investing than you are losing on finance charges, it is highly unlikely. Your money is best spent lowering credit card balances.
Also, if you have no cash savings, you should consider putting this plan off until you have savings equal to at least three months’ salary.
Finally, if you would be devastated if you lost all of the money you invested, you should probably stay away from directly investing. While not likely if you are conservative, it is possible to lose all or some of the money you invest, no matter what the security.Start Investing With Just $1001. Open a brokerage account with a low-cost online broker. It’s important that you’re not paying more than $5 per trade, because that’s money that will be coming out of your investment. Also, make sure that the broker you choose has no minimum account balance, or fees will eat up your entire balance. For more about discount stock brokers you can visit our broker comparison chart.2. Fund your account. This is where you send your first $100 to the broker via check, wire transfer, or ACH transfer. I recommend ACH transfer, which is like an electronic check, because a check will take a few weeks to process and a wire transfer is too costly for investing such a small amount.3. Make your first investment.
What you invest in is, of course very important, and professional investment advice is too expensive if you’re only investing $100. But studies have shown that the best returns come from widely diverse portfolios.
Now, you can’t easily have a widely diverse portfolio with $100, since that won’t even get you one share of Google (GOOG) or Toyota (TM). But Exchange Traded Funds (ETFs) make it easy to invest a small amount of money in a wide variety of securities, because they are shares in a larger pool of securities. The Vanguard Total Stock Market VIPER (VTI) tracks over 6,000 U.S. stocks, and it’s like investing your first $100 in the entire U.S. stock market. The iShares MSCI-EAFE (EFA) invests in stocks from Europe, Australia and Asia. The iShares Lehman Aggregate Bond (AGG) tracks the Lehman Brothers Aggregate Bond Index, and it’s like investing your $100 in the entire bond market.
If, after three months, you have put $100 into each of these funds, you will have a well-diversified portfolio that should withstand most of the market’s fluctuations. Losses in any particular sector of the stock market should be offset by gains in other areas of the market. Add to it each month, never investing less than $100 at a time, and you should see the value of your account grow just as the stock market does.
There are many ETFs to choose from and they are getting more diverse, including junk bond and commodities funds. Personally I would stay away from them until there’s at least $1,000 in stock and traditional bond ETFs, since the majority of your portfolio should include traditional investments, not alternative investments.
As you watch your investment grow (and then pull back, and then grow again) you should learn more about asset allocation and portfolio diversification, which are the keys to investment success. The more diverse your investments, the more you will be able to withstand volatile markets when stocks dip.
Finally, when the total value of your investment reaches $10,000, you should consider seeking professional investment advice and transferring your holdings to traditional mutual funds, which are a bit easier to manage, but typically have higher investment minimums.
November 4th, 2010
posted in Money Investment
« Older Entries
