You want to invest money in bonds in 2011 and earmark $10,000 to earn higher interest than your bank offers. Your best bond investment would be a bond fund because here you get diversification and professional management... for a price. Before you call a financial planner and rush into things, it's best to know where to invest to get the best bond fund for your money.
If you invest $10,000 in the wrong bond fund in 2011 you could lose money in 4 different ways. First, up-front sales charges could eat up a few hundred dollars. Second, yearly fund expenses could cost you money every year to the tune of a couple hundred. Third, you could be talked into putting money into a risky bond fund. Fourth, even the best bond fund could lose money in 2011 and beyond. The first 3 money mistakes can easily be avoided.
Let's start with the money basics. People invest in a bond fund to earn greater interest income, not to make their money grow. That's what a stock fund is for. In the prevailing interest rate environment don't expect more than 5% a year in interest income (dividends) for 2011 from even the best bond fund. We'll describe the best fund later. For now focus on the 5% (or less) you might earn and the cost of investing mentioned above. A 3% to 4% sales charge and expenses of 1% to 2% the first year means that you give back your interest income for 2011. There is NO good reason to do this.
Now let's look at the third way to lose money. Why would a securities salesman who calls himself a financial planner talk you into a riskier bond fund? He wants your money so he can make a commission. If he talks 7% or 8% vs. 3% or 4%... you are more likely to invest money with him and not pay attention to what it is costing you to invest. There are basically two ways you can earn significantly higher interest income in a bond fund, and both increase your risk. One, you can sacrifice quality. Two, you can go with a long-term fund that holds debt securities with average maturities of 20 years or more.
When you combine both lower quality and long-term maturities you get the best bond fund yields, or highest interest income potential. You also get more risk than you probably bargained for. Low quality increases the likelihood of default: interest and principal payments may not be paid by some of the issues in the bond portfolio. Long-term issues that mature in 20 or more years are the biggest risk in today's low interest rate environment. When you invest money in a long-term bond fund you will live with higher "interest rate risk" than the best bond fund for 2011 has.
Here's how to picture interest rate risk. A bond fund holds hundreds of debt securities and each pays a fixed interest income that never changes for the life of the security. Upon maturity interest payments stop and the owner (in this case the fund you invest money in) is paid back the principal that was borrowed. Now picture what happens to the value of these debt securities (that trade in the market like stocks do) when interest rates in general zoom upward. The price or value FALLS to adjust for the fact that higher rates are now available elsewhere. That's interest rate risk and it applies to all marketable debt securities.
If you invest money in a fund that holds short-term maturities you won't be greatly affected. But a bond fund that holds 20 or 25 year maturities will get clobbered when interest rates rise significantly. It's got low interest rates locked in for many years, and the price (value) of their holdings will fall to adjust for this. If you have your $10,000 invested with them, you lose money. This is not the place to invest money in 2011, with interest rates near all-time lows.
Here's where to invest money: the best bond fund for 2011 and beyond. You'll cut costs, which directly increases the money you make and keep. You'll also lower your risk. Some major no-load fund companies offer NO sales charges AND low yearly expenses. To get the best fund for you money put your $10,000 in a BOND INDEX FUND, where your total cost to invest can be less than ?% a year. To keep risk moderate while earning a respectable interest income go with a medium to high quality fund that invests in corporate bonds. Go intermediate-term, with an average maturity of 5 to 7 years.
Where do you find all of the above? Go to the websites of the largest no-load fund companies: Vanguard, Fidelity, and T Rowe Price. What exactly do you want to invest your money in? The best bond fund for 2011, which is: A no-load, medium to high quality, intermediate-term, BOND INDEX FUND. When ready to invest just call the fund company of your choice toll-free and explain that you have $10,000 to invest in the above fund. They'll gladly help you invest your money, and will give you good service in the future as well.
A retired financial planner, James Leitz has an MBA (finance) and 35 years of investing experience. For 20 years he advised individual investors, working directly with them helping them to reach their financial goals.
Jim is the author of a complete investor guide, Invest Informed, designed for average investors or would-be investors of all levels of financial background and experience. To learn more about investments and investing and his new financial guide go to http://www.investinformed.com.
Many times, people will hesitate to go into forex trading because traditionally, it carries a lot of risk. True, there is a lot of software that will give you all the information and even do your trades for you, but hesitation continues to exists because people still lose money using this kind of software. Forex Bullet Proof though, comes with a difference. It is a guarantee that if you put x amount of money in, you will get x+1 at the very least.
You can call it automated money making. Its main difference from all others is that it has automatic adjustment to avoid losses. Most of the time in forex trading, you have to be on the look-out, to see how the market is doing and if things look like they are going to take a plunge, you then have to make adjustments yourself. The problem is, you're not even sure if you're making adjustments in the right direction. You are simply moving to avoid oncoming risk. With Forex Bullet proof, you don't have to worry about that any more. It works just like a broker, only for a one time fee and much faster. Immediately there are changes in the market, it will cut your lot size and reallocate to where there are gains and then return the lots once the market is back to normal.
It operates in the major currencies, EUR/USD and USD/JPY, and because the spreads on these currencies are usually low because of their popularity, it always works to the user's advantage.
Its easy to install, it will never give you a margin call, it works during market hours and not between them as most other forex robots do and it requires a low initial investment - all you need is about $450. It's also easy to set up, and you get great support from the software manufacturers.
Forex Bullet Proof will cost you $147, and for that you will get the handbook on how it works, tips and lessons on the best way to trade as well as video tutorials. What's the proof that it works? If you buy it and it doesn't make you a dime in 60 days, all you need to do is ask for your refund, and no questions asked, you will get your money back. Who said it's not easy to get rich?
Diamond Kiang is a professional products reviewer, who has spent the last 3 years of his life reviewing top products in the market. He works with top product creators to reveal the best products to global the internet market.
Corporate Bonds are bonds issued by Corporate organizations to fund their business. They have a fixed tenure. They give a good of interest depending on the company. They are not governed by the Reserve Bank of India and hence provide no security. However they are rated by various Rating Agencies that rate them as per the stability of the company that issues them. The ratings are as follows:
Ratings: A A A, AA, AA+, AA-,A+,A, A-,BBB+ etc are different types of ratings assigned to the bonds. They are in general rated from excellent to poor. A bond issued by the T A T A Group of India can have a good rating.
Risks:
- The rate of interest may fluctuate depending upon the change in government policies.
-They can't be converted into cash easily as they can't be sold like shares in secondary markets.
-They are subjected to inflation.
-They are subjected to policy change on Tax Structure.
- They are not governed by RBI and hence they offer no protection if a company issuing them goes bankrupt.
-Investors can't get loans against them as they are not governed by RBI.
Benefits:
Most corporate bonds coming from good companies with good ratings provide greater rate of interest than bank fixed deposits. But it is essential to see that the bonds are rated in a proper manner.
T A T A Motors, T A T A Steel, L & T have all got their bonds in the market and they are of the highest category. Thus if invested properly and with caution and information, these bonds are a good bet for the future.
Suddhadeb Chakraborti.
Today, many financial advisers are advocates of investing for the long run. To me, this can be harmful and this article will now tell you why this is the case.
One reason why financial consultants advise people to invest for the long term is because they want your money. As many of you know, most of them mainly sell investments for a living, instead of living off their investments. Because of this very fact, to secure their income, they have to preach and convince you about the benefits of investing for the long run because only with this, they get your money on a regular and systematic basis.
In addition, this also allows them to hoard your money for as long as possible, giving them many chances to do what they want with while giving you as little as possible of your money back. This allows these financial predators to gain control of your money legally.
To me, such accumulation of money is addictive because you would always want to accumulate more. However, as you accumulate more, you become more afraid of spending it as you now have more to lose. Ever wondered why people never stop saving though they are already affluent enough?
Also, accumulation is a scarcity mindset as people who fall prey to it tend to think that there is always not enough. However, in actual fact, there is already enough for everyone and it is actually time for people to use their accumulated resources well rather than saving up more of it. Here, by accumulating money, you are letting more of it stagnate and to make things worse, money can depreciate in value as inflation rises.
Hence, instead of accumulating money from investing in the long term, I believe more in the utilization of money. Utilizing money is putting it to work and using it to provide services to ourselves and others instead of accumulating it and putting it into 'safe' investments.
Moreover, it also means taking action to seek financial freedom, not waiting for it. Knowing this, more people will be educated on the importance of using money productively so that they can benefit now and forever.
To do this, you must know your dreams, aspirations and life purposes. Subsequently, aim to achieve them by using your resources and growing them to a new level. All these can only be done when you create value.
Here, value creation is important because it is the cause while money is the effect. In contrast, many people tend to focus on money which is the fruit when they ought to concentrate on the root (value), accounting for the fact that they don't attain success early.
In conclusion, after exploring why we shouldn't be in investments for the long haul and knowing the power of utilization, I believe readers have understood why only few people get rich. Now, armed with this piece of knowledge, take action to create your wealth!
About The Author:
Ong Xun Xiang invites you to visit http://electricalpowersaver.blogspot.com/ if you want to enjoy big savings in your electricity bills. Cutting unnecessary expenses away from your bills is definitely a good investment as it creates more money available to work for you. Do you believe in offering others free money or in using them for your own good? The decision is in you!
To expand your capacity for electricity usage by up to 35%, visit http://electricalpowersaver.blogspot.com/ today!
So let's deal with some background first. Active funds have a fund manager who actively chooses the investments which the fund will own, based on the mandate he or she is given. The manager's aim is usually to out-perform the benchmark that the fund is based on - whether that is UK or emerging market equities, fixed interest investments, or anything else.
Passive funds, on the other hand, do not have a manager making choices, since the aim of a passive fund is, generally, to perform just like the index or benchmark. So a passive fund might simply own the same shares as those which make up the index, and in the same proportions. The FTSE 100 is a good example. Then you are (more or less) guaranteed to behave like the index (although there is normally some "tracking error").
Without active management, passive funds are cheaper to run, so the charges to the investor are lower. Proponents of passive funds will say that they are better since the average active fund does not, in fact, out-perform its benchmark over the long term. And so the lower charges mean a better longer term return from passive funds.
So where does that leave the investor trying to decide where to put their money? The answer is that it depends how you intend to invest. As independent financial advisers, Prime Time Financial's view is that both have their place. If you are making the fund choices yourself without a great deal of knowledge, or you intend to "invest and forget", then a passive fund is more likely to be the best approach for you.
But with expert knowledge and regular reviews of your investments (whether you do that yourself or use a financial adviser) you will not be investing in an "average" fund. That means you have a good chance of doing better than a passive fund which simply emulates a benchmark or index.
But you do have to make sure that the extra performance is sufficient to cover the higher costs, including of course any financial advice fees. Our analysis suggests that with typical fund charges and advice fees, an active fund needs to out-perform its index by something like 1.6% to 1.9% every year to provide a better return than a passive fund.
About the Author
Peter Lawrence is an Independent Financial Adviser with Prime Time Financial based in Fleet, Hampshire. He specialises in advising over-50s on all aspects of finances including retirement planning, investments, equity release, and estate planning (Inheritance Tax).
Keep your finances in good shape - sign up for our email newsletter at http://www.primetimefinancial.co.uk.
Prime Time Financial is a trading style of Keystone Financial Ltd which is authorised and regulated by the Financial Services Authority.
It is going to be up to you to learn how to identify bad sources of financial information. Today with the bookstore, the Internet, and TV bombarding you with different advertisements all about money, is very difficult to identify which source of information is reliable and which is not. Learning the difference between the two can and will save you lots and lots of money over your lifetime.
There have been many different books written about how to save money, make money, in which insurance is the best by. I will not name names, but there are some books that advise you to only purchase disability insurance if you are in bad health. If you think about this for a minute, it makes sense. You would probably ask yourself, why would I want to spend money on insurance if I don't have to? There is one part that you did not think about and probably missed.
What insurance company is going to issue you a disability policy when you are unhealthy or injured? I personally do not think insurance companies are in business to help people, they are in business to make money. If you look at it from a business standpoint, how much money will an insurance company make if they issue an already disabled person a disability policy? This does not make sense and is not good business practice.
When it comes to investing in the stock market, there are hundreds, if not thousands of different options out there. People are on the radio, television, and the Internet screaming about how you can make wonderful returns if you go with them. Which do you choose?
With so many different options, a good place to start might be asking your friends. You also need to sit down and ask yourself, what kind of returns do I want? Do I want five or 10% annually? Am I willing to put up more risk to earn 20 or 30% per year? Your returns in the stock market are endless and are only limited to what you choose. Some people can tolerate risk more then others, this is where you must be honest with yourself and who you are. Money is not worth losing sleep over each and every night here it
When it comes to the stock market, any and everything is possible. You may be much more likely to get a steady five or 10% return on your money each year, but there are people that make full-time incomes and see returns much more than 300% per year. Many of these people can prove their returns. You must decide what is right for you and your money. Take some time to research everything from insurance to investing in the market. If you want to make sure your money is safe, you will not leave this to chance.
Darius has been writing online now for a while and has many different interests. You can check out his websites at Korean Contact Lenses and Contact Lenses Australia
Two major topics discussed in the Reserve Bank's 39-page September Monetary Policy Statement (MPS) are inflation and interest rates. In June, the Bank forecasted inflation to be 4.5% this year. The latest forecast from the Bank expects inflation to be 0.7% lower at 3.8%. Additionally, the Bank's 2011 inflation forecast has been reduced from 2.9% to 2.4%.
The lower inflation forecasts are not out of the blue given the lower economic growth projections announced by the Reserve Bank. Factors attributable to the muted inflation pressures include: weaker consumer demand, basically non-existent lending growth, unemployment figures at over 5%, reductions in house prices and deleveraging.
The Bank stated that it will 'look through' the impact on inflation as a result of the increase in GST, the Emissions Trading Scheme, plus other related tax changes. The Bank forecasts that an additional 2.7% will be added to inflation as a result of these former factors, with the Consumer Price Index crowning at 4.8% in June 2011. Taking aside these factors, the underlying inflation rate would be 2.1%.
It is important to note the following stern warning delivered by the Bank in the September MPS. If the factors mentioned above begin to influence individuals' behaviour, then the Bank will move quickly to increase interest rates. Price setting will be monitored, as will wage negotiations and surveys of inflationary expectations to gauge if there is evidence that the bump in inflation is becoming 'ingrained'. If this is the case, it can be expected that fast and material increases in the Official Cash Rate (OCR) will follow.
Regarding interest rates, the theme is the same as with economic growth and inflation - 'lower for longer'. Unlike the June MPS, the Bank now expects interest rates to rise a lot more slowly. This links back to the Banks cuts to GDP and inflation estimates. The June MPS forecasted interest rates to rise 3.1 % over the next two years, up from the then current level of 3.0% to 6.1% by the end of 2012.
According to the September MPS, the Bank now estimates interest rates to rise by only half as much. 90-day bank bills are forecast to increase from their current 3.2% to be 4.1% in December 2011 - an increase of just 1.4%.
If you have a floating mortgage, this reduction in the increase of estimated interest rates will be good news. Although, as the Bank does point out in the September MPS, it expects to increase the OCR over the next few years, the pace and extent of these increases will be lower than forecast in the June MPS.
This is a modified article from Mark Lister. To read the complete article visit www.craigsip.com. Craigs Investment Partners Limited (formerly ABN Amro Craigs.) is an NZX Firm that was established in 1984. It is one of New Zealand's largest and most established investment advisory firms. Talk to us about www.craigsip.com Fixed Interest today.
When investing it is essential that you have a goal and a strategy to help you reach that goal. This means you should always start by looking at your goals. This in turn will determine the sort of investment portfolio you need to create in order to achieve a well balanced investment portfolio.
There are many types of investments to choose from and if you don't do your research and assess your goals it can quickly become confusing. This is where your goals, your tolerance to risk and your investment style all combine to create your strategy.
Understanding your risk tolerance and your investment style will help you to make wise investment choices. The main investment styles will tie into your risk tolerance and these are defensive, conservative, moderate (also known as balanced), mildly aggressive (or growth) and aggressive which takes you through the investment spectrum of low to high risk.
Naturally your financial goals will help establish the style of investing you use. If you are in your twenties and saving for retirement you can afford to use an aggressive style of investment because of the length of time until you require the funds. You will have a number of years to recover from any negative market declines.
However if you are saving to buy a home in the next year or two, your approach would be to use a conservative style. You need to match your goals with your style.
Whether you are investing in a conservative portfolio or a more aggressive one you need to diversify your investments. While a conservative strategy designed for a short-term home purchase should not include shares you should still diversify within your portfolio. This means spreading investment among several short-term money market providers.
Diversifying your longer-term investments should include various shares in different industries. It should include purchasing bonds, investing in money markets and in property. These are known as the assets classes. The key to diversification is to invest in several different asset classes and not just one.
It is your risk tolerance that will indicate the percentage you apply to each area of asset class. As a guide a balanced investor (middle of the road) is generally 50 percent in growth assets such as equities and 50 percent in income assets such as bonds.
In conclusion deciding on the style of investment strategy you will use is determined by your financial goals and your risk tolerance. Regardless of the type of investing you do, you should carefully research the investment and gain all the facts. Whatever style you choose never invest all your money in only one investment, diversify for a well balanced investment portfolio.
Lyn Bell has been in the finance industry for more than 30 years and is a Certified Financial Planner. She has helped many clients achieve their financial goals. Sign up to get Lyn's free newsletter SoundFinance News and receive a free gift.
Please note this article does not contain specific advice and is for information/education purposes.
A disclosure statement is available free on request.
For some of you, the title of this article might have raised interrogation. After all, how can anyone compare an insurance company business model to an option writing strategy? On a philosophical standpoint, however, there is a similarity.
The insurance company
When an insurance company insures your car or your home, it collects the premium you pay in exchange of assuming the related risk. By selling insurance to a range of clients, it disseminates its total risk while collecting more premiums. And the more risk a client represents, the higher the premium.
As you know, most insurance companies are profitable and have been around for a long time. We assume this business model is probably sound.
The option seller
What is option writing? It's collecting a premium in exchange of a market risk exposure. On that basis, insurance companies and option writers do have something in common.
Furthermore, the option seller can manage his risk, comparably to the insurance company. Here are a few insights on how:
? Choosing the strike price: it determines the premium received for the risk involved. The higher the premium, the higher the risk. Just like the insurance company collecting more premiums to riskier clients.
? Technical analysis:an essential tool providing better odds to a winning trade.
? Time decay:as an option approaches its expiry date without being in the money, its time value declines because the probability of that option being profitable (in the money) is reduced. For the option seller, time decay is a friend.
? Rolling options positions:When confronted with big upside or downside swings in the market, chances are the option seller might incur more a challenging trading environment. Rolling options may differ this risk. Rolling means moving the strike price of the option to a more suitable level for the trader. Most rolling positions are done in the front month. If near expiry, rolling to a different strike price of the front month will ensure benefiting from a higher time value. Therefore, rolling an option position when important market swings occur may be a good strategy. Since markets have a tendency to retrace their path after a few weeks of oversold or overbought levels, rolling can become a useful tool to improve risk management for the trader.
These four examples demonstrated the risks involved in options writing can be managed trough different alternatives. Just like insurance companies use their own methods of managing their risk.
Conclusion
When writing options, the premium collected in exchange of a market risk exposure is comparable, in some ways, to an insurance company assuming risk for a premium. From a philosophical standpoint, the two approaches are similar. The next time somebody asks you what is option writing, use the insurance company metaphor. It might simplify a concept too often associated with complexity.
At TradetoGain.com, we believe that trading options can give an edge to the overall performance of investors. We also want to educate and expand options trading knowledge to improve your trading skills. Our focus remains on removing emotions from the investment process. Our 10 year performance has shown interesting results. Log on to our website to find out more http://tradetogain.com/returns/
If you have never invested money and you do not know how to start, there is no reason to feel intimidated.
It is actually very easy, but there are several steps to make sure things go smoothly.
The first step is to search online for "discount broker".
There is a long list of companies that include Vanguard, Schwab, ThinkorSwim, TradeKing, Fidelity and Scottrade.
Any of these well-known companies is good for beginners.
Steps to Follow
1. Select an investment company. Then look to see how much the company charges to invest in mutual funds. If a company offers its own fund, there should be no charge to invest in that particular fund. Fidelity, for example, will not charge if you put your money in a Fidelity fund, nor does Vanguard charge to invest in its fund. Some companies, also, do not charge for ETFs.
2. Ask about the minimum investment required by the company. For investors who enroll in their automatic transfer program, some companies waive the initial minimum investment.
3. Look at checking and saving account options and decide which account will be used for the investment money.
4. One option is to set up automatic transfers and have a designated amount transferred from the bank account directly to the investment company at regular intervals.
5. Another alternative is to send a check or manually transfer money from the bank directly to the investment account. This method is less reliable because it requires more discipline, and it is easy to FORGET, STOP, or AVOID. Automatic transfers are a much better way to invest. You will, also, become wealthier with this strategy.
6. Forms for all of these transactions can be found on the website of the company, or they can be obtained from a company representative.
7. For each fund, be sure to list the percentage of of money deposited on the automatic transfer form or investment deposit form. For example, 65% to stocks, 15% to bonds, and 20% to market cash fund.
When you make automated transfers, you are increasing your chances of reaching your goals.
A good way to make sure the money is available to invest is to have it transferred immediately after receiving a pay check.
This will ensure there is money available and that it goes directly into the investment account.
Hold on... I've got one more secret to tell you about investing,... buy-and-hold is broken! My clients' accounts made new equity highs this year while most people were still recovering from the bear market of 2008. Want to know this powerful investing secret? Get your FREE copy of 'Buy-and-Hold Sucks Market Timing Rules' at SimpleVesting ( http://www.simplevesting.com )
For an intending entrepreneur, especially one who is planning to start his own business take off and grow, life insurance is a policy he may consider buying. The reason is that life insurance goes beyond the primary reason to protect ones dependent against the loss of your income or services, (death settlement); it also helps a person to plan for his future. Of course, life insurance has various products with savings and investment targets.
To many, insurance is about paying a regular premium to the insurance company in order to get compensation whenever a loss occurs. But aside from this, insurance could be a viable means of making money, especially through investment in some insurance products.
A key peculiarity of investment - linked insurance products is that they help the policy holder to save for the purpose of investment. Some other characteristics of such products include allowing the policy holder to get interest on his savings; giving him access to loan to financial counseling as well as compensation for his dependents, if he dies before the policy matures. An investment-focused insurance policy helps to cultivate a savings habit in person, while motivating him to focus on his set plans.
These policies are provided by life and composite insurance companies. As expected, they usually have different benefits attached to them.
However, it is advisable, any individual, who wants to achieve a target (which could be an investment plan or a project), to get a flexible investment plan policy. A flexible investment plan is a long-term investment plan policy (of 10 years span, for instance), but with highly competitive guaranteed compound interest rates. The policy also includes a sizable guaranteed death benefit and is available to anyone under the of 55.
I noted that the product provides for the payment of additional contributions at any time within the policy term. At maturity, the policy owner can be allowed an option of extending the policy contract, if he wants.
Interestingly, the insurance company will support the dependants of policy owner with sizable, in-built life coverage, if he dies within the early years of the policy.
By this, the investment policy is well structured to protect the living and alleviate the suffering of the dependents of the dead. Besides, the policy can be pledged as collateral security to raise a loan.
The best way to analyze the amount of life insurance you want is to take the following three steps:
Compute the financial need
List the everyday expenditure that will have to be covered by your loved ones once you die. Think about the one time operating cost that occurs immediately ahead of and after a death. The major monetary cost of your premature death is the loss of your income. How many years did you plan to support your loved ones? How much will everyday expenditure decrease because you are no longer there work out the capital available to meet those needs If you have considerable savings or other assets, you may choose to plan on using these funds to cover part of the monetary need. Subtract these resources from the financial need calculated above to determine how much life insurance you should purchase. Now that you've recognized the monetary need that will exist on your death and the resources available, you can shut the gap among the two with life insurance. Shop around and compare prices and coverage's carefully.
It's significant to appraisal your need for life insurance periodically as your position change. Having another child or buying a new home could prompt a need to buy more life insurance. For more update visit http://thelucrativesearch.blogspot.com/2010/10/improve-your-investment-profile-with.html
Investors seeking ongoing income from equities need to consider international stocks. Although much has been written about the lucrative dividend yields paid on domestic equities, there are several key benefits to holding international securities, especially equities that pay dividends. Here are three of those benefits:
1) Geographic diversification. Holding equities outside of the US allows the investor to enjoy the risk-reducing benefits of diversification. For instance, in 2007 when domestic markets lost roughly 10.5% (based on the returns recorded on the S&P 500), emerging markets gained 18.5% (as measured by the returns of the MSCI Emerging Markets Free Index). In other words, investors are not as closely married to the success or failures of a specific economy when they diversify.
2) Better yield. Although yields on domestic equities are attractive right now, the yields paid on securities that trade on international markets are actually more attractive than many people could imagine. As reported by Morningstar, there are six other regions of the world that pay better yields than the US. These markets include Australia, the UK, Europe (outside of the UK), Latin America, Canada and Asia (outside of Japan).
3) Better growth potential for the overall portfolios. Coincidentally, many of these international equity markets not only pay better dividend yields on average but they have outperformed the domestic markets on a Year to Date basis. This makes holding global equities more appealing from a growth and capital appreciation perspective as well.
Given the allure of better diversification, better dividend yields and better growth prospects, ensuring that any given portfolio holds global or international equities seems like a portfolio requirement rather than an option that is reserved only for the most risky investments. However, many dividend-seeking investors who are also risk averse can create a properly diversified portfolio. On the other hand, it is reasonable for investors to be afraid of the risks that many of these markets pose (such as the high-flying Latin American markets or Asian markets). To accommodate for those risks, investors need to ensure a proper asset mix. In other words, investing in these international markets in moderation.
As always, seeking the advice and recommendations from a qualified financial planner or adviser in your area will help you achieve the right balance within your portfolio without creating a situation where there is more unwarranted risk than necessary. Because while risks make sense in most cases, managing it makes more sense, further underlining the need to seek and implement geographic diversification.
--> Interested in Dividend Funds? Visit MutualFundSite.org to find out more about these types of funds.
With more than 17 years of financial services experience, Chris is a regular contributor to the Mutual Fund Site. As well, he writes about Traditional Top Mattresses at QMattresses.com.
Silver prices are pushing the known limits, today. Overnight, there was a big boost to the spot price, which took it to nearly 27 fiat dollars. As for the other side of the equation, the dollar index is pushing the limits to the downside as it sinks to below 76. It looks like the Fed's commitment to continue buying the government's paper promises with the funny money is having the desired effect. The bright side of this is that when an ounce of silver is worth as much as what they have borrowed from the Chinese government, they can pay them off with one solitary silver round. The Chinese government is not the only entity that has bought promises from our government, however. They are merely the entity that seems to be buying the most.
Before the government, for which we citizens are ultimately responsible, will get to pay off this debt with one piece of silver, there will be some tantrums thrown, and when people with large, nasty weapons throw tantrums, it can get messy. Other entities, including those Americans that thought they were rich with a fortune stashed away in bank accounts and stock certificates, will be throwing tantrums right along with them. Many of them even own some of those promises from our government. The two-fold promises that many Americans purchase are called bonds and notes. They are actually promises to pay a certain amount of promises. Actually, the Federal Reserve note that we call the dollar is merely a paper promise.
Some think that rapidly devaluing the promises that have already been made is a good thing. They think that devaluing the government debt will allow them to pay less. They may be surprised to know that this does not only mean that the value of the amount owed will be reduced but that the government can get away with borrowing more upon promises of a percentage of our paychecks. The more shameful part of all of this is that not only our paychecks will be applied to these promises. It will linger for many generations to come. Those of later generations that come to the labor market will be expected to pay for the money that is being borrowed and spent, today.
The ominous and literal meaning to the word "currency is that the actual value changes, continually, and silver prices reflect how many fiat dollars it costs, currently; it does and will change. Currency has a current value, and the future value will be less. That is the trick of fiat currency. One unit of fiat currency is a written promise to pay whatever the promise is worth when it is redeemed with the promises losing value, continually. To keep from losing all of the value of the promises, they must be redeemed immediately! The rate at which promise-holders immediately redeem their promises without holding on to them is referred to as the velocity of money, and as this increases, the faster the promises lose value and the silver prices rise.
About The Author:
G. D. Hanson invites you to browse other articles for a better idea of the quality of writing offered on the Content Manager website for a price between $.03 and $.05 per word, generally. When you use the services offered on the web site, your satisfaction is guaranteed.
To inquire about article writing services via email: ( click here )
(c) Copyright - G. D. Hanson. All Rights Reserved Worldwide.
So many people now have been looking for property investment to build their portfolio and taking advantage of current global economic market. Due to recession nowadays, some have got no choice but to sell their house fast as they could not afford their monthly payment for their property. There are 2.47 million unemployed which according to statistics is the highest level in 16 years of which 821,000 have been so for 12 or more months. More so, in every 3.78 minutes someone is being declared bankrupt or insolvent. One property is repossessed every 14 minutes. The internet has now been the quickest way to reach the investors and the sellers. And it all begins with the property details completed on the website form and the lead is created.
There are investors who would prefer to see the photos of the property rather than going to see it. Two reasons for that is: One, time for them is precious and two, they wanted to act fast and they have the skills in finding out by looking at the pictures and by the use of internet would reveal whether the property is worth buying or not. It is true that it is not always necessary to visit the property before investing in it. Some are using the power of internet to get all the information they need and would get reports about the property and what it is really worth from its past to present value.
There are also cases where the investor is too far away from the location of the property and there is no way he can get there as soon as he pleases. As they say, time is money and why would you travel a hundred miles where you can get the picture via email in a few seconds? You can visit and check the property out some other time if you like.
However, there are advantages and disadvantages if you do not visit the property yourself before buying. One of the disadvantages is: there may be some work to do in the property; say, boiler is not working, maybe the gutter is falling apart, etc., in which has not mentioned by the seller. In this case, the investor needs to add up extra cost in order to take a new tenant in. And of course, one of the advantages for not visiting the property is that you save time and money for fuel costs. Also, you can confirm to the seller if you are interested to buy as quickly as you can as soon as you see the photos of the property. Normally, the seller would send photos of each room of his property including its garden and parking, if available.
You need to verify the income before making an offer. Use the internet to study the market prices and do not get so excited. Make a smart decision with all the information you have got. Check on the expenses and once you have come up with the net operating income figure, check it again and then you are ready to make an offer. Bear in mind to always think numbers as these numbers can bring you financial freedom before you know it.
We, at http://ehousesale.co.uk are connecting the sellers and investors and we provide a win-win and tailor-made solutions to anyone who needs our help. We complete the house sale in 25 days. The writer is a Professional Property Investor, and is looking forward to becoming financially free with the help of his family members who are now also involved in the property business. His website http://www.ehousesale.co.uk helps the seller finds the best solution to sell his property fast.
In order to give the reader of this article the background on a scam and the steps and precautions that could have been taken to guard ones self against fraud I've created a case study using passed frauds as examples. One television show that showcases scams of all sorts is American Greed, which airs on CNBC. In this article I've included a synopsis of a scam profiled in an episode of American Greedand how the investors could have conducted due diligence on the opportunity being presented in order to raise red flags.
Year: Early 2000's
Fraud Amount: 5.5 million dollars.
Number of people defrauded: 70
Perpetrators:
Joseph Medawar had some minor success as a Hollywood movie producer, but his next production would make him famous as a scam artist.
Scam:
Medawar billed himself as a movie producer who was looking for investors in his latest TV series named D.H.S. that will profile real incidents from the files of the Department of Homeland Security. He claimed to have 26 episodes that were all in some stage of production that both FOX and HBO were competing for the right to purchase the episodes.
In 2003 Medawar showed the trailer to congressman Dana Rohrabacher of California. In order to help the producers in making the television series as real as possible, Rohrabacher introduces Medawar to government officials in the Department of Homeland Security. He was able to have his picture taken with these government officials and other members of congress. Through his attendance at various fundraising dinners he was eventually meet and have his photo taken with President Bush. Medawar plastered these photos on his website in order to increase the legitimacy of his business deal.
He showed potential investors the trailer created as part of the "pilot movie." It turns out that the trailer was really just snippets stolen from other movies edited together to make it look as if it were actual footage filmed as part of the finished TV series. Investors were able to purchase stock in his company, Steeple Entertainment, for one dollar per share telling them that the company was about to "go public."
Medawar then went to small Southern California churches to claiming that his series had a religious message and that it will run on faith-based television networks. One church member took a $57,000 equity loan on her Watts home where she had raised 13 children in order to invest in Medawar's "movie." When her investment wasn't returned in the promised time, she couldn't keep up the payments on her home and eventually lost her home. She laments the fact that she won't be spending Thanksgiving or Christmas with her family at their home. In all, Medawar bilked 3 million from unsuspecting churches and parishioners.
Another investor who heard about the "opportunity" from a colleague at work, took out a second mortgage on his home for over $100,000 in order to purchase the $1 shares of stock. He said that he expected that once Steeple Entertainment had their IPO (initial public offering) he'd be able to sell for $40/share.
Financial Pornography Due Diligence:
The potential investors could have contacted the California State Securities division asking if Steeple Entertainment had notified the State to sell securities in the State of California or if they had ever heard of Joseph Medawar. The investors could have hired a private investigator who may have dug up the fact that Medawar had been cited for stock fraud in another company in 2001.
An understanding of the Securities Laws would have given investors a red flag that only accredited investors are allowed to invest in many pre-IPO stocks. While it may be difficult for the general public to obtain this kind of access, one FBI agent spoke with several investment banks who said that they had never worked with Medawar or Steeple Entertainment for the purposes of taking it public.
Ryan Windley authored the ebook, "Don't Let Financial Pornography Leave You Naked Simple Steps to Investigate Your Next Investment Opportunity". It is Ryan's hope this book will allow anyone who has unknowingly been propositioned by a scam artist the ability to take a deep breath, read the book, and make a wise decision about the investment opportunity being presented. You can learn these simple steps by going to http://www.stopfinancialpornography.com
When investing, you should be able to explain to a child what is your plan, how much do you expect to win, how much do you expect to lose and when will you close the trade. If you can do that, then it will be way easier to explain to your broker what your plan is. Determine beforehand how much you want to win and then get out when you get there. By the way, if you haven't sill read "The Zurich Axioms", then I highly recommend you to do it so. It has some valuable and important information that you will use now and probably in all aspects of your life, not just investments.
Trading is not and it should not be complicated
Trading and investing is not complicated; or at least it does not have to be. Many times, brokers and investors make it more complicated, at least as far as you can tell, so that way you give it up before you even start and give to them all your money and responsibility in managing it. That is exactly what they have wanted you to do. They need to survive and to earn their money. They live out of commissions, so the more money they have with them, the more they will earn. But you in the other hand might lose.
Take your profits too soon
So, to avoid that, you should take the matter in your own hands and do all the hard work yourself. You might even have some fun while doing it (at first I thought it was a pain in the ass, but after a while I realized I just love it! There is a thin line between love and hate and that applies to your financial investments in the same way). One of the most important aspects is to define where you want to get and when you get there, GET OUT! Do not strive for more. Do not think "I might stay a bit longer". That kind of thought may make you lose your hard earned money.
Taking your profit too soon is one of the most important lessons you will have to learn in order to be successful at this game. Sometimes it will appear that you should have stayed longer with that trade and you know it all along! But our mind can fool us some times. You do not realize it, but taking your profit too soon maybe has saved you tons of other times, but you took it for granted and didn't even realize it! So, take your profits always too soon and do not be ashamed in doing it so.
Wiles Neles is a proud contributing author and writes articles on several subjects. You can check out some other websites of his interest at wwjd wristbands and also international tool boxes.
For an intending entrepreneur, especially one who is planning to start his own business take off and grow, life insurance is a policy he may consider buying. The reason is that life insurance goes beyond the primary reason to protect ones dependent against the loss of your income or services, (death settlement); it also helps a person to plan for his future. Of course, life insurance has various products with savings and investment targets.
To many, insurance is about paying a regular premium to the insurance company in order to get compensation whenever a loss occurs. But aside from this, insurance could be a viable means of making money, especially through investment in some insurance products.
A key peculiarity of investment - linked insurance products is that they help the policy holder to save for the purpose of investment. Some other characteristics of such products include allowing the policy holder to get interest on his savings; giving him access to loan to financial counseling as well as compensation for his dependents, if he dies before the policy matures. An investment-focused insurance policy helps to cultivate a savings habit in person, while motivating him to focus on his set plans.
These policies are provided by life and composite insurance companies. As expected, they usually have different benefits attached to them.
However, it is advisable, any individual, who wants to achieve a target (which could be an investment plan or a project), to get a flexible investment plan policy. A flexible investment plan is a long-term investment plan policy (of 10 years span, for instance), but with highly competitive guaranteed compound interest rates. The policy also includes a sizable guaranteed death benefit and is available to anyone under the of 55.
I noted that the product provides for the payment of additional contributions at any time within the policy term. At maturity, the policy owner can be allowed an option of extending the policy contract, if he wants.
Interestingly, the insurance company will support the dependants of policy owner with sizable, in-built life coverage, if he dies within the early years of the policy.
By this, the investment policy is well structured to protect the living and alleviate the suffering of the dependents of the dead. Besides, the policy can be pledged as collateral security to raise a loan.
The best way to analyze the amount of life insurance you want is to take the following three steps:
Compute the financial need
List the everyday expenditure that will have to be covered by your loved ones once you die. Think about the one time operating cost that occurs immediately ahead of and after a death. The major monetary cost of your premature death is the loss of your income. How many years did you plan to support your loved ones? How much will everyday expenditure decrease because you are no longer there work out the capital available to meet those needs If you have considerable savings or other assets, you may choose to plan on using these funds to cover part of the monetary need. Subtract these resources from the financial need calculated above to determine how much life insurance you should purchase. Now that you've recognized the monetary need that will exist on your death and the resources available, you can shut the gap among the two with life insurance. Shop around and compare prices and coverage's carefully.
It's significant to appraisal your need for life insurance periodically as your position change. Having another child or buying a new home could prompt a need to buy more life insurance. For more update visit http://thelucrativesearch.blogspot.com/2010/10/improve-your-investment-profile-with.html
You have received an offer letter from one of the reputed company. There are many terms mentioned in the offer letter and it is not quite easy to understand them. It is difficult to find a person who has not faced this problem in their career. The reason is basically the jargon used by the recruiters while issuing the offer letters and most of us do not understand it.
But few things you should know before accepting an offer letter. What are these terms - Basic Salary, Gross Salary, Net Salary, and Cost to company
Basic Salary
It is the pay that you get without considering any other benefits such as PF, medical premium and other allowances. This is a part of fixed compensation and does not change.
Gross Salary
It is the pay that you get in monetary terms. It includes basic salary, bonus, allowances, and overtime income. It does not include non monetary benefits like training cost, retirals, gratuity etc. Gross Salary is computed before tax is deducted.
Net Salary
This is the amount which is credited to your account every month. Every employee always considers the Net Salary or in hand salary or take home salary, the most important aspect in employee compensation. Always check with your recruiter what will be your net salary or in hand salary.
Cost to Company
Cost to Company is the total cost incurred by an organization is spending towards their employee including the Salary, Perquisites, benefits, training, retirals, Contributions made by the company, gratuity etc. In a nut shell, CTC is monetary benefits + non monetary benefits.
Now that you are aware of these terms, ensure to double check the Basic Salary, Gross Salary, Net Salary, and Cost to company mentioned in the offer letter before accepting employment.
Ishita Sharma has rich experience in the field of investments. She writes articles on investments and also reviews investment related articles. For more information on various investments visit - http://www.investmentbazar.com
Many investors have been financially devastated due to the economic downturn in the United States. Some say that the United States is in the worst condition that it has been since the great depression. It's easy to get discouraged and bury your money in the backyard or under a mattress but what you should really be doing is looking for cheap investments and there are plenty to be found during this financial downturn.
One thing that surprises me is that many investors don't realize what a huge opportunity a recession can be to strengthen an investment portfolio. It is true that you may have lost some money in your portfolio but the smart investors realize that the economy will recover and overtime, your investment portfolio will recover as well. If you are smart about your investment strategies, you will look at this as an opportunity to purchase a lot of investments at great prices. You can purchase real estate right now for far below fair market value in many parts of the United States. If you're smart enough to do this, you stand to make tremendous gains on your initial investments.
Those who look back at the history of the economy in the U.S. will realize that there are many times when the economy did very well and many times when the economy did very poorly. Regardless of these economic challenges that the country has faced, one thing that was virtually constant was that land values continue to appreciate over the long term faster than inflation. This is the key to being successful in the investment world. If you can find investments that continually outperform inflation, you'll make money.
Hopefully you are positioned to take advantage of these amazing opportunities to purchase land while it is undervalued. If you do, you stand to make a significant profit by selling your property when the economy recovers. There are even more gains to be made if you hold it for the long-term and watch it appreciate.
One of the best ways to find cheap land is to look for land for sale by owner. Oregon is one market where there is a lot of cheap land for sale right now. If you want to make money buying and selling real estate, you really should look into Oregon land for sale.
Isobel Gibbons has been tinkering with motor vehicles, bikes and cars for many years and enjoys writing about her experiences with Buy Land. She also likes to pass on timely information of how to get the best out your Motoring needs and news in the industry, to her friends and readers on her website Motortroll.
Most casual stock market investors do not pay too much attention to the current price of the various different commodities such as oil, gold and copper, for example. However these current prices can have a major bearing on the value of the main stock market indices.
Just take a look at the FTSE 100 companies, for instance. This is a weighted index meaning that the companies with the largest market capitalisation such as BP, Vodafone, Glaxosmithkline have more of an impact on the value of the FTSE 100 than the smaller ones.
You will see that the company with the highest market capitalisation is BP, whose share price is obviously heavily influenced by the price of crude oil. At the time of writing you also have BHP Billiton, Rio Tinto, Anglo American and Xstrata at 9, 11, 20 and 21 respectively in the list of FTSE 100 companies. These are all mining companies whose share price is determined to a large extent by the price of the various commodities.
At the moment the price of various commodities including copper, gold, lead, nickel and silver are all trading at very high levels on both a yearly and historical basis. As a result the share prices of the major mining companies have been driven higher because they obviously make more money selling these commodities when the price is higher.
The knock-on effect of this is that the FTSE 100, which includes many of these mining companies, and indeed is heavily influenced by them because they all have significant market capitalisation values, has been driven higher as a result of this. At the time of writing you have mining stocks attempting to make new highs, and the FTSE 100 close to making new highs as well.
If commodity prices were to drop sharply, you would undoubtedly see the value of both the individual mining stocks and the FTSE 100 as a whole fall sharply as well because they are very closely correlated.
So the point I want to get across in this article is that it is very important that you keep your eye on commodity prices because they have a major impact on the main stock market indices. When commodity prices are high, the main stock market will also generally be trading at high levels as well, whilst the reverse is true when commodity prices are at very low levels. For long term investors the bargains are to be had when commodity prices are low, but that seems a long way off at the moment.
Click here to read a review of Stock Trading Nitty Gritty, the new training course that teaches you how to successfully trade individual stocks.
"Tax", this word can give one sleepless night when the time to pay the taxes are up and the appropriate savings are not done to enjoy the tax benefits. Taxes saving schemes come off as saviors under such circumstances. For people who come under taxable income, to calculate payable tax, slab rates of the current year given by the Indian Budget are used. Based on these rates, the payable tax as per the category the person falls into is calculated. Of this payable income, a particular percentage is slotted for savings. If this savings are conducive with the tax deduction clauses than the amount saved can be deducted from the sum total of the payable tax.
As per the slab rates given by the Indian Budget for the year 2010-2011, the tax rates are categorized as male (below 65), female (below 65) and senior citizens. For male below 65 years, tax rates are as follows: Income up to Rs 160,000 which is the basic exemption limit the tax rate is nil, from 160,000 up to 300,000 its 10%, from 300,000- 500,000 its 20% and above 500000 its 30%. For women below 65, income up to 190,000 tax rate is nil, from 190,000 up to 300,000 its 10%, 300,000-500,000 its 20% and above 500,000 its 30%. For senior citizens, the basic exemption limit is Rs 240,000, tax rate for income from 240,000 - 300,000 is 10%, from 300,000 - 500,000 is 20% and above 500000 is 30%.
As per the above stated categories, every category is entitled to a certain amount as saving. For example, if the amount that can be saved per annum is 100,000 than this amount can be deducted from the taxable income provided the savings are as per the tax deduction clauses. As per Indian Budget 2010-2011, the section 80C deductions have been relaxed, if the tax deduction is with respect to life insurance premiums, the deduction sum is limited to 200,000 and the deduction is applicable only if the premiums are paid, if the contribution is in the for of public provident fund or contribution to some national saving schemes. Under section 80D Medical insurance policies are included. Home loans and education loans are also included in the deductions if the necessary terms and conditions are fulfilled.
One can save tax by deductions made on investments. These investments include investments with monthly income scheme of the post office, savings in bond, mutual funds, with banking institutions, authorities working for planning and development of cities etc. There are few incomes which are exempted from tax deductions for example agricultural income, profits shared by partners etc. Once tax planning is well executed, the tax deductions can be rightly filed.
Tax benefit can be considered as another tax saving scheme which allows the tax payer a deduction on tax on the basis of the benefit of some other entity. For example a tax payer can opt for energy tax credits which are applicable when the tax payer chooses to use energy efficient systems in his home and this benefits the environment (another entity) by reducing the demand of fuel.
With so many options available, sleepless nights can be avoided by choosing the right tax saving schemes after a thorough knowledge of what kind of savings help to reduce tax liabilities. Since taxes are paid on a yearly basis, tax planning becomes an important criterion in the process of saving the huge amount that a person is entitled to.
For more information please visit - Tax saving structure
In this world of inflation, many individuals are facing financial crisis. Therefore, it is prudent to have an option of alternative investments which will act as a security measure. These investments will provide a safety net in case you are losing money on regular investments, such as property. You can safeguard yourselves because you never know what the future holds.
It is always best to have alternatives in life because it ensures that you don't get bogged down by calamities. These types of are always beneficial but it may be that there are some conditions attached to them which can cause problems. You will have to familiarize yourself with the important aspects of these investments. If you are aware of your options you will know what is best for you and what to avoid in the case of things that can lead to loss.
There is no stability in stock markets as they are full of ups and downs. There are so many precautions to be taken because if you don't invest properly then you will have to face the repercussions. It is important to safeguard yourself by expanding your investments. There are many ways to diversify your investments and these steps are essential as there have been many types in the past which have performed poorly.
They help you in recovering your financial losses which have been giving you a bad credit score. There are also many wrong steps that can be taken that are often done due to haste. If your past record of loss in your business is leading you to consider buying buy bonds and stocks then you need to reconsider this option. You will always be at risk if you do not take the right move tactfully in business. This is basically because you think by adding certain things to your budget it will help in enhancing your financial position.
Alternative investments can be a part of your business strategy but do not let them overpower your entire policy. There are lots of people who are not aware of the balanced use of it. There are a few disadvantages; the major disadvantage is the lack of liquidity in the market which could even cause more problems to your position. If you are unaware of the details about these things then you could be subjecting yourself to further serious implications. This disadvantage is worth noting as insufficient data usually proves to be a liability to your business.
To conclude, if you are looking for alternative investments then you will be required to know what the essential investments are. These investments must be capable of keeping you in a good position in business. Alternative investments have to be chosen carefully. It is very important that you ensure that your cash flow will be constant if you manage them in the correct manner.
Sue Mitchell is a leading name amongst the writers of Promotional Items, has got handsome exposure to a wide variety of topics, feel free to contact her to discuss her knowledge about alternative investment
For young people, INVESTMENT is such a big word to understand. "What would that do to make us HAPPY?"
Well, "Yuppies" usually take this for granted, or in some cases, they consider this, but not something URGENT. Investment is all about URGENCY, if the opportunity is there, you cannot just let it pass and decide whenever because you are definitely losing what it offers best. But what can we expect from them? They are near sighted when it comes to future visions, and they set their goals on a short term basis. We really couldn't blame them on this, this is where maturity comes in.
Young professionals, who are relatively earning if not sufficient more than enough to support their needs, are the ones who needs the most guidance from adults, or mentors, most especially when it comes to financial discipline. This may come out as a very serious topic to discuss, but nonetheless, important, and time is of most consideration.
There are lots of ways to start this kind of financial management training, and you can start as early as the kid understands currency. Let me share you a personal story of mine, how i started to learn the importance of money and how hard it is earned.
When i was 10 years old, my mom started to teach me how to earn money,but of course she didn't force me to go scrub the floors or whatever. One morning, She started cooking hot dogs on buns and burgers, and while wrapping she said,"darling, i believe its time you should help me earn money, bring these yummy food to school and when its your snack time, go sell it to your friends." She was smiling while saying this, though clueless, i was cooperative. So without worrying much of being humiliated, as soon as the bell rang, i took out my sandwiches and started asking my friends if they want to buy from me. Going home, i ran to my mom and hugged her tightly and handed her all the money.
My mom handed me some change with a smile and said, "honey, this is what you earned from our business."
I never enjoyed business so much, that in a very young age, i continued selling buns and added new more products and this went on till i was in college. My mom never gave me more than what i need. She gives me allowances just enough for a week. And as part of her training, aside from the money i am earning from our small business, she finally decided to hand me my full weeks allowance and let me budget it for myself. It was exciting at first, having that much money on hand, but thinking of how it will last me my week is hard. Canteens are temptations and as i was growing, there seems to be more things that i wanted than needed. Yet, with my moms guidance, i was able to save for Christmas and for things i want to buy without asking from them. When i reached college, nothing changed but just got better, i started helping my mom earning for my tuition fee. Believe it or not, i earned that much to pay for my school.
I knew since then, my future will always have "sales" in it and most importantly, "saving and investment."
Having financial responsibilities early in life, regardless if its circumstantial or by choice, makes a person better in life. Financial responsibilities teaches us to make priorities and focus more on whats needed. One of the things that financial responsibilities imparts is the knowledge and openness on the idea of what "INVESTMENT" is all about. Being a young professional, perceptions of the future is quite blurred by unnecessary expenses and seemingly important "financial burdens." I have learned from a very good mentor of mine, from a book he gave me to read, it talks about the differences between, spending, saving and investing. Having my first job and knowing the basics of money management, my perception of it is just SAVE and SAVE and SAVE. Which is by the way not a bad idea at all. But i was quite in a clueless state for a while after finishing the book and realizing, i could have been doing it the wrong way. Being young and having been to my 2nd job at that time, i was pretty much convinced that saving was the best plan of action. And that book indeed opened my eyes to a much better option, which is "INVESTMENT."
Life is all about risk right? But those risks serves as your doors to better opportunities in life. The hardest and toughest roads offer the best finish lines. So you have to start altering your psyche and have a very significant paradigm shift. You have to entertain the thought that no good or better things will come your way if you keep on staying behind the lines, waiting for opportunities to come. Investment, is putting your hard earned money where it would grow. Well, this doesn't come as easy, of course, for your money to grow, it has to be somewhere, where there are risks. Again, risks are equivalent to opportunities whether you win or lose, you just have to have properly guided decision making in investment, to make sure you are indeed making a good one. And one of the best ingredient of investment, is TIME. If you want opportunities coming your way faster, you have to act faster. Investment's key partner is TIME.
I might be too young to be talking about investment and its fundamentals, but I guess being young and talking about it will somehow awaken the hearts and mind of young people like me who are struggling financially. I've done a very good job starting it early on, the moment i realized its impact in my family's life and mine.
Please wait for detailed tips on investments and how to make one on my next article.
for wise investments check this website:
When investing it is common practice to diversify your portfolio to minimize risk. It is almost impossible to predict how financial markets will perform and each asset class (such as cash, bonds, property and shares) has their own business cycle. By diversifying your investments you can take advantage of the 'ups' while restricting the 'downs'.
Diversifying a portfolio means investing in different asset classes as well as investing in a number of securities within each of the asset classes. In the share category your strategy would be to hold a number of different companies as well as including overseas shares. Those companies would also represent different industries as they will also have their own business cycle.
The basis for diversification is that even if one or two of your investments go bad, you will have plenty of others providing you peace of mind and avoid losing it all.
Not only does diversification help to protect your funds it also helps to smooth returns. A portfolio with only one share is likely to have returns that fluctuate wildly, while a portfolio that holds a range of other shares and asset classes will have more reliable and less volatile returns.
Diversification only reduces and does not eliminate risk. Most of the time shares move together so the only true way to diversify your share or property portfolio is to also hold funds in cash and in bonds as these assets usually perform at different times of the market cycle.
All investments are subject to risk, some more than others. The more you diversify the more likely you are to reduce this threat. If you had all of your money in just one share and that company you invested in didn't perform you would make a loss. However if you have spread your money across different types of investments you have a better chance of including some investments that will perform.
Remember that while lowering the threat of total loss of the investor; diversification does not lower the possibility of the underlying investments suffering a loss. Risk is a matter of market trends, economic trends, currency trends, and other factors. Unfortunately we have all seen the effects of these factors over the last few years of the credit crunch. Once thought to be 'risk free', Sovereign risk has over recent times caused ripples of fear among investors.
There is no way that an investor can reduce the risk of securities themselves but diversify your portfolio to minimize risk and you will be better off.
Lyn Bell has been in the finance industry for more than 30 years and is a Certified Financial Planner. She has helped many clients achieve their financial goals. Sign up to get Lyn's free newsletter SoundFinance News and receive a free gift.
Please note this article does not contain specific advice and is for information/education purposes.
A disclosure statement is available free on request.
You might be looking for guaranteed returns while you are planning to invest in any kind of investment option, isn't it? Of course, Yes. We need some sort of guarantee or assurance for our hard earned money, before investing it anywhere. Then, what is your thought about an investment where you indeed get better guaranteed returns with less risks associated with it. Would like to know more about it, then scroll down the article below.
Guaranteed returns vary from low to high return ones and there are few aspects or risks associated to it. Let's glance at the four main elements of any guaranteed returns investment program.
1. Minimum guarantee- this is only the thing where many people scratch their minds. Most of them just guarantee the principal amount you invest and nothing else. The thing is that there is no risk of downfall or losing your principal sum. Whether you gain more on it or no; depends completely on your fate.
2. Participation rate- do you think you are sanctioned to most of the market returns, or only a few of it? The answer to this generally is based on a particular investment option; hence, it is important to get hold of it precisely.
3. Maximum return- some of these plans do possess maximum returns annually. It depends on the status of the stock market. If it happens that its situation boosts additionally enough, you reward is then not limited to anything. But do pray that the reverse never happens.
4. Term- term is the time period in years. It is the duration in which you are locked into the agreement. It can be for varied length periods; however the particular policies have particular time periods defined for them.
If you expect to have any sort of security or stability for your funds invested, then it is advisable that you should go for guaranteed investment options. You need to value the money you earn and so this is the most preferred alternative of most of the investors. Guaranteed returns on investment are becoming highly popular day by day amongst the investors all over the world. This is so, because the ones who have been facing great downfalls in their investment strategies are no longer in a condition to take additional risks for themselves as well as their family.
There are numerous options available in the market. The thing is that you need to study each one carefully, find out the merits and demerits of them and make a brief comparison of all the different alternatives available. This will help you to weight down the different investment options accordingly and show you a pathway for your investment strategy.
If you want to know more in regards to guaranteed returns, then cash value life insurance can guide you further, better. However, it is advisable to go invest in more than one option at a time rather than investing your sum all in one option only.
Enjoy your guaranteed returns by investing good investment policies.
Did you know that there are secure investment alternatives outside of the market?
I put together a free video that reveals a 200 year old financial tool that banks and Wall Street have been trying to keep secret from you. Visit my website here for the details: http://secureinvestmentsecrets.com.