Author: Al Thomas
Source: articleage.com
The recent criminal fiasco in the mutual fund industry is being used by Wall Street to persuade investors that market timing is a bad thing. The late trading by Janus, Bank America and several other well known mutual funds is falsely being called market timing.Wall Street, better known as Maul Street to most investors, does not want to you to find out about market timing. The reason is very simple. If you learn to sell you might take your funds and do something intelligent with them.First let's understand, Mutual FundBest Mutual Fund Investment, what market timing is. Very simply it is a proven method that gives signals to buy and another signal to sell. Many of these methods are associated with stocks and mutual funds yet there are those that signal overall market conditions. We are on the verge of another sell signal for the general market and several market timers have already given those signals to sell. There are many excellent systems and they all beat the Wall Street lie of Buy and Hold. The key to all market profits is selling not buying.The criminal acts of the mutual funds had nothing to do with this method. The hedge fund managers knew the stock holdings of the mutual funds in question and AFTER the market closed companies would make announcements of their earnings, new products approved by the FDA, legal actions, etc. that would definitely impact upon the stock price the NEXT day. If it was good news the fund would allow big money players to place their orders after all official trading stopped. That's 4:00PM New York time.The fund price might be $20 per share, but depending upon the amount of stock in their portfolio it might make the settlement price the next day as much as 5% higher. That doesn't seem like much, but if you had shown a purchase of 10 million dollars on the close that day and sold it out the next day you would have a profit of $500,000. That is money removed from the fund that belongs to the shareholders. This is NOT timing. This is fraud and the, Best Mutual Fund Investment, parties should not only repay all those stolen monies to the fund, but should also see jail time and be banned from the industry for life.If you want to find out more about market timing type in 'market timing' on your computer and do a search. There are scores of them, but you must do your due diligence to be sure that what they are telling you is true. Always ask for references. Make them prove what they say. Don't bother to ask your broker as he will tell you the Wall Street lie that it doesn't work.Because of the precarious nature of this market I encourage you to look into this NOW.Al Thomas' book, "If It Doesn't Go Up, Don't BuyIt!" has helped thousands of people make moneyand keep their profits with his simple 2-stepmethod. Read the first chapter athttp://www.mutualfundmagic.com and discover why he's the man that Wall Streetdoes not want you to know.Copyright 2005al@mutualfundstrategy.com; 1-888-345-7870
Wednesday, September 30, 2009
Tuesday, September 29, 2009
Saving For Retirement - To Retire Comfortably You Need To Do The Following!
Author: Sacha Tarkovsky
Source: download
Do it properly! Although this is an obvious statement, most people when saving for retirement don't know how to do it properly.They make errors that cost them and cost them big time. They can't retire in comfort and this is not the minority - this is the majority!Problems we all face Are:Keep in mind, the state won't help you much, medical costs are soaring and people are living longer.Unless you are saving for retirement properly, you won't enjoy your golden years and of course you should - You have worked hard all your life!Let's face it - if you have worked hard all your life enjoying your "golden years" should be your right.Lets look at some common mistakes people make when saving for retirement and how if you don't make the same mistakes, you can enjoy the comfort and lifestyle you deserve.Common mistakesHere are some common mistakes that people make when saving for retirement:1. Mutual funds and stocks can make you richWell let's look at the facts.If you are saving for retirement you can expect maybe 10% annually compounded and taking into account inflation that's not much.Even more worrying is 90% of funds cannot even do this!They lose, or provide single digit gains that are eaten up by inflation.Why do people invest in mutual funds?Most of the time they are taken in by the sales hype and this does not match the reality.2. Don't take risks when Upside is limited & downside, Mutual FundBest Mutual Fund Investment, is more!If you are going to save for retirement your better off in a fixed interest fund - same upside and less downside.Check the facts:Ask any mutual company for an average performance of ALL funds under management. You won't get it, but if you could you have losses across the board.Forget the sales patter!When a fund performs great - when it fails they launch a new one.They don't care if you make money or not, they have their commission so why do they care? They don't.2. Alternative Investments for growthOK great lets when saving for retirement trade alternative investments:Like currencies, futures, options or hedge funds.A warning - Keep in mind the risk reward:90% of investors lose in these investments and that's the lot!Consider saving for retirement in a hedge fund. Most are secretive and unregulated so you cant see what they do. They are not obliged to give you performance of all funds under management and most blow up!This means losses of 50% or more in most cases ...Don't believe they lose? Check the statistics. Hedge funds sound fantastic in theory, but the reality is very different.3. When you get close to retirement you cant take risksWhy? Quite simply if you are saving for retirement you can take losses early on as you have time to recover, when you get close to using your fund you cant.You have spent years building it and it needs to kept intact.Don't take risks in the last few years. The odds are you can't won't make it back quickly enough! Use low risk investments..4. High return and low riskWe all want this!We want this at anytime but when saving for retirement it's essential.We ALL want our money to work hard and produce above average gains with little downside risk, but is it possible?The answer is yes!5. The best low risk investmentsWhen saving for retirement, you will hear it time and time again..Property is the best investment and it is a good one, but there is one that compares that's cheaper and growth potential is the same, if not more.When saving for retirement lets look at land. Here we will give you one example, but there are many, Best Mutual Fund Investment, more. Just check these statistics out and your mutual fund manager will weep with envy!Land is a simple investment and is the secret of the world's wealthiest investors:Let's consider Costa Rica. You can by land at 70% less than in the US and there is a huge property boom going on and land is at a premium and that means huge growth potential.Quite simply, Americans are buying Costa Rica properties in record numbers to get second and retirement homes at cheaper prices and their only 3 hours from the US!What does this mean, if you are saving for retirement? It means big gains and low risk:50 - 100% gains per annum are being made with low risk ( prices don't tend to fall here in land they simply stay static and rise quickly) is this better than your mutual fund? No contest!You want good returns and low risk when saving for retirement and land investment gives you this.We don't have room to tell you how cheap it is, how tax efficient it is, how easy it is to do and why this boom will continue but check the facts for yourself.If you want to save for retirement, land is the ideal vehicle and you should consider itFor more FREE info including a free report on how to invest in land for huge potential gains with low risk visit http://www.net-planet.org/costarica.php
Source: download
Do it properly! Although this is an obvious statement, most people when saving for retirement don't know how to do it properly.They make errors that cost them and cost them big time. They can't retire in comfort and this is not the minority - this is the majority!Problems we all face Are:Keep in mind, the state won't help you much, medical costs are soaring and people are living longer.Unless you are saving for retirement properly, you won't enjoy your golden years and of course you should - You have worked hard all your life!Let's face it - if you have worked hard all your life enjoying your "golden years" should be your right.Lets look at some common mistakes people make when saving for retirement and how if you don't make the same mistakes, you can enjoy the comfort and lifestyle you deserve.Common mistakesHere are some common mistakes that people make when saving for retirement:1. Mutual funds and stocks can make you richWell let's look at the facts.If you are saving for retirement you can expect maybe 10% annually compounded and taking into account inflation that's not much.Even more worrying is 90% of funds cannot even do this!They lose, or provide single digit gains that are eaten up by inflation.Why do people invest in mutual funds?Most of the time they are taken in by the sales hype and this does not match the reality.2. Don't take risks when Upside is limited & downside, Mutual FundBest Mutual Fund Investment, is more!If you are going to save for retirement your better off in a fixed interest fund - same upside and less downside.Check the facts:Ask any mutual company for an average performance of ALL funds under management. You won't get it, but if you could you have losses across the board.Forget the sales patter!When a fund performs great - when it fails they launch a new one.They don't care if you make money or not, they have their commission so why do they care? They don't.2. Alternative Investments for growthOK great lets when saving for retirement trade alternative investments:Like currencies, futures, options or hedge funds.A warning - Keep in mind the risk reward:90% of investors lose in these investments and that's the lot!Consider saving for retirement in a hedge fund. Most are secretive and unregulated so you cant see what they do. They are not obliged to give you performance of all funds under management and most blow up!This means losses of 50% or more in most cases ...Don't believe they lose? Check the statistics. Hedge funds sound fantastic in theory, but the reality is very different.3. When you get close to retirement you cant take risksWhy? Quite simply if you are saving for retirement you can take losses early on as you have time to recover, when you get close to using your fund you cant.You have spent years building it and it needs to kept intact.Don't take risks in the last few years. The odds are you can't won't make it back quickly enough! Use low risk investments..4. High return and low riskWe all want this!We want this at anytime but when saving for retirement it's essential.We ALL want our money to work hard and produce above average gains with little downside risk, but is it possible?The answer is yes!5. The best low risk investmentsWhen saving for retirement, you will hear it time and time again..Property is the best investment and it is a good one, but there is one that compares that's cheaper and growth potential is the same, if not more.When saving for retirement lets look at land. Here we will give you one example, but there are many, Best Mutual Fund Investment, more. Just check these statistics out and your mutual fund manager will weep with envy!Land is a simple investment and is the secret of the world's wealthiest investors:Let's consider Costa Rica. You can by land at 70% less than in the US and there is a huge property boom going on and land is at a premium and that means huge growth potential.Quite simply, Americans are buying Costa Rica properties in record numbers to get second and retirement homes at cheaper prices and their only 3 hours from the US!What does this mean, if you are saving for retirement? It means big gains and low risk:50 - 100% gains per annum are being made with low risk ( prices don't tend to fall here in land they simply stay static and rise quickly) is this better than your mutual fund? No contest!You want good returns and low risk when saving for retirement and land investment gives you this.We don't have room to tell you how cheap it is, how tax efficient it is, how easy it is to do and why this boom will continue but check the facts for yourself.If you want to save for retirement, land is the ideal vehicle and you should consider itFor more FREE info including a free report on how to invest in land for huge potential gains with low risk visit http://www.net-planet.org/costarica.php
Monday, September 28, 2009
Building Wealth Slowly - Using the Power of Compound Interest to Build Wealth
Author: Richard Boettner
Source: ezinearticles.com
Many people think it is hard to become wealthy. It all depends on how you define it, doesn't it? If you think of wealth as having loads of money, in the millions, then yes, it may be hard, Best Mutual Fund Investment, to become wealthy for you. If on the other hand you think of wealth as having enough money to pay the bills and your money is invested wisely, and in a diverse manner, so that it makes you more money, then the answer is, no, it is not hard to be wealthy.Assume you are just out of college, have a job with an income that allows you to pay your bills with a little left over. If you were to put a $150 a month into an IRA that grows at 8% a year, you will have about $605,000 at age 65. A 10% a year return on compound growth is about what you should expect if the money were invested in a no-load S&P 500 Index Fund. To some that may seem like a lot, but it really isn't, remember inflation eats away at any investment at a rate of 3 to 4% a year, as do mutual fund fees.In the example above, for about $35 a week or $5.00 a day you would be on your way to being a millionaire. If you chose to live a little more frugal, you could easily save between $8.00 to $10.00 a day, or $56 to $70 a week. Saving $8 a day will result in $953,555 by age 65, and at $10 a day results in an investment growing to $1.19 million.If you contributed the full amount of $5,000 a year to your retirement account you would have $1.48 million. That's only about $14.00 a day and you could have a small fortune. If you decide to live without some expenses: using credit cards, extravagances, daily lattes, invested your pocket change (about $30 a month), bought used cars instead of new, you could actually save well over $2 million before retirement.Just remember, always invest your money diversely: stocks, mutual funds, high yield savings accounts, CD's, Mutual Funds, bonds, T-bills, so on, your money may not grow as fast as if it were invested in only one slightly more risky high paying interest account. Remember, time and the power of compound interest are on your side. The younger you are and you would like to build wealth, do whatever you have to scrape together, Mutual FundBest Mutual Fund Investment, your investment contributions. Every day you procrastinate is another day your money is not working for you.Consider that most people are spending their lives paying to borrow other people's money. If you save and invest, other people will be paying you to use your money. It's a lot more fun to see your money working for you building wealth.The older you get the harder it gets to grow your money slowly. If you wait until you are 32 to put away $4,000 a year at 10%, you would only have about $975,000 by 65. At 42, you would only be able to accumulate about $350,000 by 65. As you can see, your wealth diminishes the later you begin investing because it is not able to rely on compound interest to work for you.The moral of the story, start investing today, invest often, and as much as you can. Also, every dollar you spend is not invested, so live a frugal and more wealthy life.
Source: ezinearticles.com
Many people think it is hard to become wealthy. It all depends on how you define it, doesn't it? If you think of wealth as having loads of money, in the millions, then yes, it may be hard, Best Mutual Fund Investment, to become wealthy for you. If on the other hand you think of wealth as having enough money to pay the bills and your money is invested wisely, and in a diverse manner, so that it makes you more money, then the answer is, no, it is not hard to be wealthy.Assume you are just out of college, have a job with an income that allows you to pay your bills with a little left over. If you were to put a $150 a month into an IRA that grows at 8% a year, you will have about $605,000 at age 65. A 10% a year return on compound growth is about what you should expect if the money were invested in a no-load S&P 500 Index Fund. To some that may seem like a lot, but it really isn't, remember inflation eats away at any investment at a rate of 3 to 4% a year, as do mutual fund fees.In the example above, for about $35 a week or $5.00 a day you would be on your way to being a millionaire. If you chose to live a little more frugal, you could easily save between $8.00 to $10.00 a day, or $56 to $70 a week. Saving $8 a day will result in $953,555 by age 65, and at $10 a day results in an investment growing to $1.19 million.If you contributed the full amount of $5,000 a year to your retirement account you would have $1.48 million. That's only about $14.00 a day and you could have a small fortune. If you decide to live without some expenses: using credit cards, extravagances, daily lattes, invested your pocket change (about $30 a month), bought used cars instead of new, you could actually save well over $2 million before retirement.Just remember, always invest your money diversely: stocks, mutual funds, high yield savings accounts, CD's, Mutual Funds, bonds, T-bills, so on, your money may not grow as fast as if it were invested in only one slightly more risky high paying interest account. Remember, time and the power of compound interest are on your side. The younger you are and you would like to build wealth, do whatever you have to scrape together, Mutual FundBest Mutual Fund Investment, your investment contributions. Every day you procrastinate is another day your money is not working for you.Consider that most people are spending their lives paying to borrow other people's money. If you save and invest, other people will be paying you to use your money. It's a lot more fun to see your money working for you building wealth.The older you get the harder it gets to grow your money slowly. If you wait until you are 32 to put away $4,000 a year at 10%, you would only have about $975,000 by 65. At 42, you would only be able to accumulate about $350,000 by 65. As you can see, your wealth diminishes the later you begin investing because it is not able to rely on compound interest to work for you.The moral of the story, start investing today, invest often, and as much as you can. Also, every dollar you spend is not invested, so live a frugal and more wealthy life.
After many exhaustive hours of research I released my book, Recession Survival Guide. It is fully researched and documented, with references. The goal is to educate people not only why the financial melt down happened, but also what they can do for themselves. It puts all the knowledge they need right in their hands.
Recession Survival Guide
recessionsurvival.richardboettner.com
Sunday, September 27, 2009
What Have You Done For Me Lately?
Author: Al Thomas
Source: download
Don't you love those ads in the paper and on TV saying how much their mutual fund has made over the past 3, 5 and 10 years? I get all choked up. Hind sight is always 20/20. If Mr. Investor had known that he would be in clover today, BUT ..It seems that during the past few months, in fact for more than a year 90% of all mutual funds are lucky to be even. Even. Even doesn't cut it so what can an investor do when the market starts down as it has been doing lately? The Dow Jones Industrial Average has lost 500, Best Mutual Fund Investment, points. What if it drops like it did in 2000 when the NASDAQ lost 78% of it value and 7 trillion (yes, that's a T) dollars.Will your broker call you to tell you to sell? Did he tell you that last time? According to statistics less than 2% of Wall Street recommendations in that bear market were to sell. Is the tune going to change this time? Hardly. You are on your own again. Either you take charge or you will lose your money.Some people run to Morningstar for mutual fund recommendations. If you will look at their 5-Star Mutual Funds you will see they sank into the slime along with all the others. Morningstar follows the Wall Street line so you can't rely on them.Who can you rely upon to protect your investments?One person.YOU!Don't tell me you can't do it because you don't know enough. Obviously any blind hog could have found more acorns in the years 2000 to 2003 than your broker.The first consideration is protection of what you have now. If the fund you bought at $20 went to $40 would you be happy if it went back to $20? Not really. So you have to decide right now how much you are willing to give back. One of the basic rules of thumb is 10% from its highest closing price. If it drops below $36 sell it because you don't know how far "down" is. This is protection against a major loss. If investors will look at the history of the funds they own they will see that a 50% loss is common and that means the investor would have to earn 100% to make up for that loss. Fund managers usually aren't that smart.The professionals let the market tell them when to get in and more importantly when to get out. The great secret of the stock market is not buying. It is selling. Investors who have an exit strategy are those who end up with big money. There are many good exit methods, but they must be put into place and acted upon when the appropriate time, Mutual FundBest Mutual Fund Investment, occurs.There are many good long term investment plans and all of them have periods when the best investment is cash.Al Thomas' book, "If It Doesn't Go Up, Don't Buy It!" has helped thousands of people make money and keep their profits with his simple 2-step method. Read the first chapter at http://www.mutualfundmagic.com and discover why he's the man that Wall Street does not want you to know.Copyright 2006 All rights reserved
Source: download
Don't you love those ads in the paper and on TV saying how much their mutual fund has made over the past 3, 5 and 10 years? I get all choked up. Hind sight is always 20/20. If Mr. Investor had known that he would be in clover today, BUT ..It seems that during the past few months, in fact for more than a year 90% of all mutual funds are lucky to be even. Even. Even doesn't cut it so what can an investor do when the market starts down as it has been doing lately? The Dow Jones Industrial Average has lost 500, Best Mutual Fund Investment, points. What if it drops like it did in 2000 when the NASDAQ lost 78% of it value and 7 trillion (yes, that's a T) dollars.Will your broker call you to tell you to sell? Did he tell you that last time? According to statistics less than 2% of Wall Street recommendations in that bear market were to sell. Is the tune going to change this time? Hardly. You are on your own again. Either you take charge or you will lose your money.Some people run to Morningstar for mutual fund recommendations. If you will look at their 5-Star Mutual Funds you will see they sank into the slime along with all the others. Morningstar follows the Wall Street line so you can't rely on them.Who can you rely upon to protect your investments?One person.YOU!Don't tell me you can't do it because you don't know enough. Obviously any blind hog could have found more acorns in the years 2000 to 2003 than your broker.The first consideration is protection of what you have now. If the fund you bought at $20 went to $40 would you be happy if it went back to $20? Not really. So you have to decide right now how much you are willing to give back. One of the basic rules of thumb is 10% from its highest closing price. If it drops below $36 sell it because you don't know how far "down" is. This is protection against a major loss. If investors will look at the history of the funds they own they will see that a 50% loss is common and that means the investor would have to earn 100% to make up for that loss. Fund managers usually aren't that smart.The professionals let the market tell them when to get in and more importantly when to get out. The great secret of the stock market is not buying. It is selling. Investors who have an exit strategy are those who end up with big money. There are many good exit methods, but they must be put into place and acted upon when the appropriate time, Mutual FundBest Mutual Fund Investment, occurs.There are many good long term investment plans and all of them have periods when the best investment is cash.Al Thomas' book, "If It Doesn't Go Up, Don't Buy It!" has helped thousands of people make money and keep their profits with his simple 2-step method. Read the first chapter at http://www.mutualfundmagic.com and discover why he's the man that Wall Street does not want you to know.Copyright 2006 All rights reserved
Mutual Fund Investments - Investing and Making Money
Author: Bryan Burbank
Source: ezinearticles.com
There are many opportunities when investing in mutual funds. If you do not have a lot of time to research specific stocks then let somebody else do it for you. When you purchase this type of investment a fund manager will handle researching and investing in specific stocks for you. There are, Mutual FundBest Mutual Fund Investment, a large number of mutual funds that you can invest in so you want to do a little research to see which one fits your needs the best. Basically a mutual fund is a combination of stocks in one portfolio that is handled by a manager. The benefit is you do not have to research individual stocks yourself.A mutual fund is a great way to invest in the stock market but let somebody else handle the research side of it for you. Before making your initial investment you want to check and see what the mutual funds investment objective is. Also it's a good idea to see what their track record is over the past five years. Once you have found a mutual fund that you feel comfortable with you should invest with confidence that you will be making a great investment. It is important to remember that with this type of investment there are always ups and downs in the market so you have to determine if you are in it for the short-term for the long haul.Remember that investing, Best Mutual Fund Investment, in mutual funds can be a very profitable way to make money. It is important that you do your research before choosing which fund you want to invest in. There are many options available to you so make sure you check out the fund's past performance over the last five or 10 years.A mutual fund is a great way to invest in many stocks in a certain sector so that you hedge your bet and make a lot of money.
Source: ezinearticles.com
There are many opportunities when investing in mutual funds. If you do not have a lot of time to research specific stocks then let somebody else do it for you. When you purchase this type of investment a fund manager will handle researching and investing in specific stocks for you. There are, Mutual FundBest Mutual Fund Investment, a large number of mutual funds that you can invest in so you want to do a little research to see which one fits your needs the best. Basically a mutual fund is a combination of stocks in one portfolio that is handled by a manager. The benefit is you do not have to research individual stocks yourself.A mutual fund is a great way to invest in the stock market but let somebody else handle the research side of it for you. Before making your initial investment you want to check and see what the mutual funds investment objective is. Also it's a good idea to see what their track record is over the past five years. Once you have found a mutual fund that you feel comfortable with you should invest with confidence that you will be making a great investment. It is important to remember that with this type of investment there are always ups and downs in the market so you have to determine if you are in it for the short-term for the long haul.Remember that investing, Best Mutual Fund Investment, in mutual funds can be a very profitable way to make money. It is important that you do your research before choosing which fund you want to invest in. There are many options available to you so make sure you check out the fund's past performance over the last five or 10 years.A mutual fund is a great way to invest in many stocks in a certain sector so that you hedge your bet and make a lot of money.
How to: Trade Mutual Funds.
You Can: Get Rich Trading.
Bryan Burbank is an expert in the field of Finances and Investing in Stocks.
Saturday, September 26, 2009
Online Electronic Day Trading -- 3 Basic Tips
Author: Ben Ehinger
Source: download
Are you ready to start day trading online? Online electronic day trading is becoming more and more popular and there is a lot of money to be made day trading. Are you ready to begin trading online and making money? Here are my 3 basic online electronic day trading tips.Day trading tip #1 - Balance your portfolio.I know, Best Mutual Fund Investment, you have probably heard this over and over again. It is very true though. You must have a balanced portfolio. You need to think about the money you are going to be making today and the money you are going to want to make in the long future.Balance your portfolio by using mutual funds, currency trading, stocks, and bonds. Use both short term and long term investing. It is a good thing to have a few long term investments with large stable companies that split on a regular basis.Day trading tip #2 - Don't be, Mutual FundBest Mutual Fund Investment, afraid to take a few chancesMost successful day traders have taken a few losses here and there, but they are not afraid to take a chance. Even if you take a loss every once in a while the gains you can experience when you take a chance will outweigh your losses.Day trading tip #3 - Do your research and know your investmentsIn order to take chances and make smart investments you should always do full research of the companies you are investing in. Look into their past, present, and their future plans. You need to know what you are investing in and what type of management team the company has.Use these three tips, that I have given you to start making money day trading. Remember to always be studying the market and the companies you want to invest in. The better you know your investments and possible investments, the better your decisions will be, and the more money you will make.Are you ready to start making money day trading? Do you want to invest some of your money in stocks, bonds, currency, and mutual funds? Go to the following website for more information.http://www.ready-repair-my-credit.com/forex.htm
Source: download
Are you ready to start day trading online? Online electronic day trading is becoming more and more popular and there is a lot of money to be made day trading. Are you ready to begin trading online and making money? Here are my 3 basic online electronic day trading tips.Day trading tip #1 - Balance your portfolio.I know, Best Mutual Fund Investment, you have probably heard this over and over again. It is very true though. You must have a balanced portfolio. You need to think about the money you are going to be making today and the money you are going to want to make in the long future.Balance your portfolio by using mutual funds, currency trading, stocks, and bonds. Use both short term and long term investing. It is a good thing to have a few long term investments with large stable companies that split on a regular basis.Day trading tip #2 - Don't be, Mutual FundBest Mutual Fund Investment, afraid to take a few chancesMost successful day traders have taken a few losses here and there, but they are not afraid to take a chance. Even if you take a loss every once in a while the gains you can experience when you take a chance will outweigh your losses.Day trading tip #3 - Do your research and know your investmentsIn order to take chances and make smart investments you should always do full research of the companies you are investing in. Look into their past, present, and their future plans. You need to know what you are investing in and what type of management team the company has.Use these three tips, that I have given you to start making money day trading. Remember to always be studying the market and the companies you want to invest in. The better you know your investments and possible investments, the better your decisions will be, and the more money you will make.Are you ready to start making money day trading? Do you want to invest some of your money in stocks, bonds, currency, and mutual funds? Go to the following website for more information.http://www.ready-repair-my-credit.com/forex.htm
Prospering with Mutual Funds: How anyone can Afford an Investment Advisor
Author: Ulli G. Niemann
Source: free-articles
Recently I was invited to appear on a live CNNfn television show to discuss my article How to evaluate Load vs, Best Mutual Fund Investment, . No Load Mutual Funds. (You can read that article on my website http://www.successful-investment.com/articles21.htm)As the producer and I were working out the logistics of my appearance, she mentioned in passing that most people can't afford an investment advisor.While that wasn't the time or place for me to discuss this, I realized that many people might have a similar misconception. Had conditions allowed, I would have pointed out the following to her.There are only two ways an individual can invest in mutual funds: Selecting and investing themselves or using outside help. If they use outside help they'll have a couple of choices again: A commissioned salesperson (broker, financial planner or Registered Representative) or a fee-based investment advisor. Most people don't know the difference and often start with a broker who charges about 6% commission off the top to purchase a mutual fund. The fund is usually from a limited selection of fund families the broker has a relationship with. He, of course, would never recommend a no load fund or an exchange traded fund (ETF), since it is not in his best interest -- although it might be in yours.Having a fee-based investment professional handling your portfolio will get you as close as possible to receiving advice that is based on nothing but the advisor's best knowledge and evaluation of the market. They advise only what they consider top performing funds since sales commission is not a consideration and does not create any conflict of interest for them. But, how can you "afford" an advisor? First off, the advisor's fee is usually in the range of 1% to 3% per year depending on portfolio size. This amount is billed in advance on a pro-rated quarterly basis and charged directly to your investment account. This creates an initial savings right off the bat.Most fee-based advisors offer complete service as far as your portfolio is concerned. That means that they don't simply sell you a mutual fund and disappear until you call again. Since investors evaluate advisors based on the performance of their portfolio, advisors are keenly interested in maximizing your bottom line. In the long run, your gain should outweigh their fee.Many advisors utilize an investment discipline or methodology that keeps you not only invested during upswings in the market, but also in the appropriate funds for the current economic environment. For example, at one time, tech funds were hot. Now, generally, they're not. An advisor watching market trends could have been able to assist you in avoiding the bursting bubble. (In fact, my clients were advised to pull out of the market and into the safety of money markets in October, 2000, just before the market plummeted. What they didn't lose because of this will more than cover my fees for the rest of their lives!)Most advisors don't have lengthy agreements and you usually can cancel by giving 2 weeks notice. The advisor never has access to your money because he is affiliated with a custodian who handles the money, the monthly statements and fulfills the proper legal reporting requirements. With this arrangement an advisor can actually save you money. How? 1. The advisor will use only no load funds. Because of his affiliation with a custodian (often a major brokerage firm), he'll have access to some 10,000 mutual funds, not just to one or two fund families as most commissioned brokers do. This allows him to pick the best available, which potentially means a higher return for his clients.2. At times there are superior load funds available, especially in the international arena. I have used a couple of those in my own practice because they were available to me as load waived funds and my clients got the advantage without paying a sales commission.3. Custodians many times also offer Advisor only funds. These are usually high performing mutual funds where the fund family wishes, for whatever reason, to deal only with investment professionals, so they set high minimum dollar requirements.Such was the case in my practice during our most recent buy signal (4/29/03). I purchased the NAMCX fund, which was only available to advisors through my custodian. This fund rewarded us with a cool 47% over the following five months. Most independent investors would not have had access, Mutual FundBest Mutual Fund Investment, to such a fund on their own.Keep in mind that markets fluctuate and starting with an advisor in the middle of a downturn will not likely yield high profits at first. However, over time, an advisor will most likely produce results better than what you would reasonably expect yourself to do, even with the advisor's modest fee. Choosing the right advisor and watching how your portfolio performs with their advice will almost always prove that it doesn't cost you to have an investment advisor, it pays.Ulli Niemann is an investment advisor and has written about methodical approaches to investing for over 10 years. Heavoided the bear market of 2000 and has helped countless people make better investment decisions. Subscribe to hisfree newsletter: www.successful-investment.com
Source: free-articles
Recently I was invited to appear on a live CNNfn television show to discuss my article How to evaluate Load vs, Best Mutual Fund Investment, . No Load Mutual Funds. (You can read that article on my website http://www.successful-investment.com/articles21.htm)As the producer and I were working out the logistics of my appearance, she mentioned in passing that most people can't afford an investment advisor.While that wasn't the time or place for me to discuss this, I realized that many people might have a similar misconception. Had conditions allowed, I would have pointed out the following to her.There are only two ways an individual can invest in mutual funds: Selecting and investing themselves or using outside help. If they use outside help they'll have a couple of choices again: A commissioned salesperson (broker, financial planner or Registered Representative) or a fee-based investment advisor. Most people don't know the difference and often start with a broker who charges about 6% commission off the top to purchase a mutual fund. The fund is usually from a limited selection of fund families the broker has a relationship with. He, of course, would never recommend a no load fund or an exchange traded fund (ETF), since it is not in his best interest -- although it might be in yours.Having a fee-based investment professional handling your portfolio will get you as close as possible to receiving advice that is based on nothing but the advisor's best knowledge and evaluation of the market. They advise only what they consider top performing funds since sales commission is not a consideration and does not create any conflict of interest for them. But, how can you "afford" an advisor? First off, the advisor's fee is usually in the range of 1% to 3% per year depending on portfolio size. This amount is billed in advance on a pro-rated quarterly basis and charged directly to your investment account. This creates an initial savings right off the bat.Most fee-based advisors offer complete service as far as your portfolio is concerned. That means that they don't simply sell you a mutual fund and disappear until you call again. Since investors evaluate advisors based on the performance of their portfolio, advisors are keenly interested in maximizing your bottom line. In the long run, your gain should outweigh their fee.Many advisors utilize an investment discipline or methodology that keeps you not only invested during upswings in the market, but also in the appropriate funds for the current economic environment. For example, at one time, tech funds were hot. Now, generally, they're not. An advisor watching market trends could have been able to assist you in avoiding the bursting bubble. (In fact, my clients were advised to pull out of the market and into the safety of money markets in October, 2000, just before the market plummeted. What they didn't lose because of this will more than cover my fees for the rest of their lives!)Most advisors don't have lengthy agreements and you usually can cancel by giving 2 weeks notice. The advisor never has access to your money because he is affiliated with a custodian who handles the money, the monthly statements and fulfills the proper legal reporting requirements. With this arrangement an advisor can actually save you money. How? 1. The advisor will use only no load funds. Because of his affiliation with a custodian (often a major brokerage firm), he'll have access to some 10,000 mutual funds, not just to one or two fund families as most commissioned brokers do. This allows him to pick the best available, which potentially means a higher return for his clients.2. At times there are superior load funds available, especially in the international arena. I have used a couple of those in my own practice because they were available to me as load waived funds and my clients got the advantage without paying a sales commission.3. Custodians many times also offer Advisor only funds. These are usually high performing mutual funds where the fund family wishes, for whatever reason, to deal only with investment professionals, so they set high minimum dollar requirements.Such was the case in my practice during our most recent buy signal (4/29/03). I purchased the NAMCX fund, which was only available to advisors through my custodian. This fund rewarded us with a cool 47% over the following five months. Most independent investors would not have had access, Mutual FundBest Mutual Fund Investment, to such a fund on their own.Keep in mind that markets fluctuate and starting with an advisor in the middle of a downturn will not likely yield high profits at first. However, over time, an advisor will most likely produce results better than what you would reasonably expect yourself to do, even with the advisor's modest fee. Choosing the right advisor and watching how your portfolio performs with their advice will almost always prove that it doesn't cost you to have an investment advisor, it pays.Ulli Niemann is an investment advisor and has written about methodical approaches to investing for over 10 years. Heavoided the bear market of 2000 and has helped countless people make better investment decisions. Subscribe to hisfree newsletter: www.successful-investment.com
Friday, September 25, 2009
CRSP data fuels Reverse Stocks media discussion
Author: Anonymous
Source: free-articles
(Chicago, Illinois, November 2002) In an article published by Jon Swarz, CRSP stock data suggests that more tech companies are pursuing reverse stock splits, at higher ratios, to artificially inflate prices.The article, "Tech firms try reverse splits to lift stocks" was featured on the front page of Money, USA Today. Please refer to the article for a more detailed review about the reverse stock debate.http://www.usatoday.com/money/markets/us/2002-10-14-reverse_x.htmCRSP, the Center for Research in Securities prices is a financial research center at the University of Chicago, Graduate, Best Mutual Fund Investment, School of Business that creates and maintains premier historical US databases of stock (Nasdaq, AMEX, NYSE),indice, bond and mutual fund securities. These databases are used by leaders in academic and corporate communities for financial, economic, and accounting research.CRSP Products include:Standard Subscription ProductsCRSP US Stock Databases CRSP US Indices Database CRSP/COMPUSTAT Merged Database (CCM) CRSP Survivor Bias-Free US Mutual Fund Database CRSP US Treasury Databases Other ProductsProxy graphs for 10K SEC filing Monthly cap-based reports Custom data sets and extractions A number of factors make the CRSP products unique:CRSP US Stock DatabasesCRSP's unique and permanent security and company identifiers, PERMNO and PERMCO, enable uninterrupted time series analysis. This is because corporate actions, including name changes and merger activity, have been tracked over time and therefore an accurate history is available for research purposes.The Stock history dates back to 1925 on a month-end basis and 1962 on a daily basis. The database includes corporate actions, dividends, price, volume, return and shares outstanding data.CRSP/COMPUSTAT, Mutual FundBest Mutual Fund Investment, Merged Database (CCM)CRSP Link allows descriptive data such as price, delisting and distribution information in CRSP's stock data files to be retrieved concurrently with income statement, balance sheet, cash flow, and supplemental data from COMPUSTAT's fundamental data files. The data is for active and inactive stocks in the respective databases.CRSP Link maps CRSP's permanent, unique identifiers, PERMNO (permanent issue identification number) and PERMCO (permanent company identification number), with COMPUSTAT's permanent, unique company identifier,GVKEY making concurrent data retrieval possible. CRSP Survivor Bias Free US Mutual Fund DatabaseThe CRSP Survivor-Bias Free US Mutual Fund Database includes dead (delisted) funds that are traditionally removed from other mutual fund databases. The CRSP database allows researchers to create performance benchmarks free of survivorship bias by including both dead and surviving funds.CRSP US Treasury DatabasesThis database comprises historical descriptive information and market data for over 1.5 million end-of-day price observations for 3,200 issues since June 14,1961, and over 101,500 prices for 5,100 month-end issues since 1925.A major attraction of the monthly treasury database is supplemental files that include the Fama treasury bill term structures files, the Fama maturity portfolio returns file, the Fama-Bliss discount bonds file, the risk free rates fileCap-Based ProductThe Cap-Based Product comprises reports based on the CRSP Cap-Based Portfolio Index. The universe used to create the deciles includes NYSE, AMEX and NASDAQ market securities (excluding American Depositary Receipts) with breakpoints set by the NYSE Market Capitalization.Reports include the Monthly Results Reports, the Quarterly Results Reports and the Historical Report.Proxy ProductThe Proxy Product is a total return performance graph, with data, for 10K SEC filings. CEO's, auditors, attorneys and accountants use these to demonstrate peer performance when they submit their Edgar filings with the SEC. The product is also offered to academics to illustrate these requirements to their students.Custom DatasetsAcademic and Corporate researchers may require information tailored to their specific need. Custom data sets are available upon request.
Source: free-articles
(Chicago, Illinois, November 2002) In an article published by Jon Swarz, CRSP stock data suggests that more tech companies are pursuing reverse stock splits, at higher ratios, to artificially inflate prices.The article, "Tech firms try reverse splits to lift stocks" was featured on the front page of Money, USA Today. Please refer to the article for a more detailed review about the reverse stock debate.http://www.usatoday.com/money/markets/us/2002-10-14-reverse_x.htmCRSP, the Center for Research in Securities prices is a financial research center at the University of Chicago, Graduate, Best Mutual Fund Investment, School of Business that creates and maintains premier historical US databases of stock (Nasdaq, AMEX, NYSE),indice, bond and mutual fund securities. These databases are used by leaders in academic and corporate communities for financial, economic, and accounting research.CRSP Products include:Standard Subscription ProductsCRSP US Stock Databases CRSP US Indices Database CRSP/COMPUSTAT Merged Database (CCM) CRSP Survivor Bias-Free US Mutual Fund Database CRSP US Treasury Databases Other ProductsProxy graphs for 10K SEC filing Monthly cap-based reports Custom data sets and extractions A number of factors make the CRSP products unique:CRSP US Stock DatabasesCRSP's unique and permanent security and company identifiers, PERMNO and PERMCO, enable uninterrupted time series analysis. This is because corporate actions, including name changes and merger activity, have been tracked over time and therefore an accurate history is available for research purposes.The Stock history dates back to 1925 on a month-end basis and 1962 on a daily basis. The database includes corporate actions, dividends, price, volume, return and shares outstanding data.CRSP/COMPUSTAT, Mutual FundBest Mutual Fund Investment, Merged Database (CCM)CRSP Link allows descriptive data such as price, delisting and distribution information in CRSP's stock data files to be retrieved concurrently with income statement, balance sheet, cash flow, and supplemental data from COMPUSTAT's fundamental data files. The data is for active and inactive stocks in the respective databases.CRSP Link maps CRSP's permanent, unique identifiers, PERMNO (permanent issue identification number) and PERMCO (permanent company identification number), with COMPUSTAT's permanent, unique company identifier,GVKEY making concurrent data retrieval possible. CRSP Survivor Bias Free US Mutual Fund DatabaseThe CRSP Survivor-Bias Free US Mutual Fund Database includes dead (delisted) funds that are traditionally removed from other mutual fund databases. The CRSP database allows researchers to create performance benchmarks free of survivorship bias by including both dead and surviving funds.CRSP US Treasury DatabasesThis database comprises historical descriptive information and market data for over 1.5 million end-of-day price observations for 3,200 issues since June 14,1961, and over 101,500 prices for 5,100 month-end issues since 1925.A major attraction of the monthly treasury database is supplemental files that include the Fama treasury bill term structures files, the Fama maturity portfolio returns file, the Fama-Bliss discount bonds file, the risk free rates fileCap-Based ProductThe Cap-Based Product comprises reports based on the CRSP Cap-Based Portfolio Index. The universe used to create the deciles includes NYSE, AMEX and NASDAQ market securities (excluding American Depositary Receipts) with breakpoints set by the NYSE Market Capitalization.Reports include the Monthly Results Reports, the Quarterly Results Reports and the Historical Report.Proxy ProductThe Proxy Product is a total return performance graph, with data, for 10K SEC filings. CEO's, auditors, attorneys and accountants use these to demonstrate peer performance when they submit their Edgar filings with the SEC. The product is also offered to academics to illustrate these requirements to their students.Custom DatasetsAcademic and Corporate researchers may require information tailored to their specific need. Custom data sets are available upon request.
Inertia Syndrome
Author: Al Thomas
Source: articleage.com
When it comes to buying a stock or mutual fund most people act pretty quickly. There are some who will take the time to get a report from Morningstar (it is worthless) or get reports from their broker (also worthless) or even do a search on the Internet (if you know what you are doing). When your broker says "buy" you buy and when a friend gives you a "tip" you buy.Any fool can buy. It is the wise man who knows how to sell. One of the old masters of the market Bernard Baruch used to say, "I sell too soon", but he died a multimillionaire.There is a reason folks are slow to sell. They fall in love with their position and know all the reasons why they should hold on. "My broker said it will come back". And pigs can fly.With all these symptoms that have turned into syndrome diseases like acid reflux for which there is one of those purple pills to cure you in a hurry. When you buy a stock or mutual fund that doesn't go up or, worse yet, goes down we need one of those purple pills. People have contracted Inertia Syndrome.The symptoms are terrible. Each day as you look on the financial page of your paper and see your stock has gone down another point your stomach begins to act up and you need one of those pills. You keep putting off going to the doctor (broker) to tell him to sell so your symptoms will go away, but you don't. Things continue to get worse and worse until your money is almost all gone. Then you decide to sell. By then it is too late. What should you have done?When it comes to your health you can change your diet and stop eating all those lovely sweet gooies that have no nutrition. When you own a stock like that and you lose sleep the best thing to do is to get rid of it. Maybe you have a profit and you are seeing it disappear. There is a way to relieve yourself.Most people don't know when to sell so the best thing to do is have the market tell you. It is very easy. The first rule for making money in the, Mutual FundBest Mutual Fund Investment, market is to cut your losses, Best Mutual Fund Investment, short. As soon as you buy any stock or fund you must decide how much you are willing to risk. Five percent? Ten percent. Fifteen percent? That number should be calculated from the closing high of the move or never lower than where you bought it. If you paid $50 per share your risk should be no more than $5.00 per share.To overcome Inertia Syndrome put the medicine in play as soon as you buy your position by using an Open Stop Loss Order. By limiting your risk you will never have a really bad belly ache.Al Thomas' book, "If It Doesn't Go Up, Don't BuyIt!" has helped thousands of people make moneyand keep their profits with his simple 2-stepmethod. Read the first chapter athttp://www.mutualfundmagic.com and discover why he's the man that Wall Streetdoes not want you to know.Copyright 2005
Source: articleage.com
When it comes to buying a stock or mutual fund most people act pretty quickly. There are some who will take the time to get a report from Morningstar (it is worthless) or get reports from their broker (also worthless) or even do a search on the Internet (if you know what you are doing). When your broker says "buy" you buy and when a friend gives you a "tip" you buy.Any fool can buy. It is the wise man who knows how to sell. One of the old masters of the market Bernard Baruch used to say, "I sell too soon", but he died a multimillionaire.There is a reason folks are slow to sell. They fall in love with their position and know all the reasons why they should hold on. "My broker said it will come back". And pigs can fly.With all these symptoms that have turned into syndrome diseases like acid reflux for which there is one of those purple pills to cure you in a hurry. When you buy a stock or mutual fund that doesn't go up or, worse yet, goes down we need one of those purple pills. People have contracted Inertia Syndrome.The symptoms are terrible. Each day as you look on the financial page of your paper and see your stock has gone down another point your stomach begins to act up and you need one of those pills. You keep putting off going to the doctor (broker) to tell him to sell so your symptoms will go away, but you don't. Things continue to get worse and worse until your money is almost all gone. Then you decide to sell. By then it is too late. What should you have done?When it comes to your health you can change your diet and stop eating all those lovely sweet gooies that have no nutrition. When you own a stock like that and you lose sleep the best thing to do is to get rid of it. Maybe you have a profit and you are seeing it disappear. There is a way to relieve yourself.Most people don't know when to sell so the best thing to do is have the market tell you. It is very easy. The first rule for making money in the, Mutual FundBest Mutual Fund Investment, market is to cut your losses, Best Mutual Fund Investment, short. As soon as you buy any stock or fund you must decide how much you are willing to risk. Five percent? Ten percent. Fifteen percent? That number should be calculated from the closing high of the move or never lower than where you bought it. If you paid $50 per share your risk should be no more than $5.00 per share.To overcome Inertia Syndrome put the medicine in play as soon as you buy your position by using an Open Stop Loss Order. By limiting your risk you will never have a really bad belly ache.Al Thomas' book, "If It Doesn't Go Up, Don't BuyIt!" has helped thousands of people make moneyand keep their profits with his simple 2-stepmethod. Read the first chapter athttp://www.mutualfundmagic.com and discover why he's the man that Wall Streetdoes not want you to know.Copyright 2005
Some General Facts About Mutual Funds
Author: Laura Macavoy
Source: ezinearticles.com
Rather than making an investment in a single concern, it is advisable to split that amount into 3 or 4 parts so you can minimize the risks . For a lot of investors the method of diversification includes making an investment in both hedge funds and stocks, Best Mutual Fund Investment, .The sensible act would be to learn all you can about both sorts of investments and find your ideal balance between the two. All hedge funds charge a management fee, this is the base for their operation. It is advisable to look for retirement funds that charge less than two percent. Morningstar Rating: This is the rating the retirement fund was given due to its previous performance compared to its peers.Whilst previous performance isn't a warranty of future performance, it's a rather helpful indicator in helping you decide if you need to trust your cash to this hedge fund or not. Remember though that the retirement funds performance will mostly be a consequence of the funds chief chief. If the chief changes, then looking to the previous performance of the fund is rather meaningless. Net Assets : This is how much cash the hedge fund manages. The good thing about a bigger mutual fund is that they occasionally charge lower charges due to efficiencies of scale. This implies that the retirement fund is invested in a wide selection of stocks.Depending on your wish, you can opt to invest with a retirement fund that covers the entire market or with a fund that concentrates on 1 or 2 industries.Retirement funds can be extraordinarily, Mutual FundBest Mutual Fund Investment, convenient for the financier since the fund does all of the record keeping. Your hedge fund will offer you all of the forms you must file your taxes. In addition, several may offer perks like the facility to write checks against the cash market fund. This is the rationale why many folks are lured to take a position in retirement funds.
Source: ezinearticles.com
Rather than making an investment in a single concern, it is advisable to split that amount into 3 or 4 parts so you can minimize the risks . For a lot of investors the method of diversification includes making an investment in both hedge funds and stocks, Best Mutual Fund Investment, .The sensible act would be to learn all you can about both sorts of investments and find your ideal balance between the two. All hedge funds charge a management fee, this is the base for their operation. It is advisable to look for retirement funds that charge less than two percent. Morningstar Rating: This is the rating the retirement fund was given due to its previous performance compared to its peers.Whilst previous performance isn't a warranty of future performance, it's a rather helpful indicator in helping you decide if you need to trust your cash to this hedge fund or not. Remember though that the retirement funds performance will mostly be a consequence of the funds chief chief. If the chief changes, then looking to the previous performance of the fund is rather meaningless. Net Assets : This is how much cash the hedge fund manages. The good thing about a bigger mutual fund is that they occasionally charge lower charges due to efficiencies of scale. This implies that the retirement fund is invested in a wide selection of stocks.Depending on your wish, you can opt to invest with a retirement fund that covers the entire market or with a fund that concentrates on 1 or 2 industries.Retirement funds can be extraordinarily, Mutual FundBest Mutual Fund Investment, convenient for the financier since the fund does all of the record keeping. Your hedge fund will offer you all of the forms you must file your taxes. In addition, several may offer perks like the facility to write checks against the cash market fund. This is the rationale why many folks are lured to take a position in retirement funds.
Laura Macavoy has been an avid investor for decades. She has vigorously researched market trends and does thorough research on any company she invests in. Laura had made over a million dollars within her first 2 years of investing. If you are interested in more from Laura Macavoy click The Young Investors Guide
Thursday, September 24, 2009
Money Market Funds
Author: Martin Lukac
Source: articleage.com
Money Market Mutual Funds (MMF) are offered by banks, brokerages and mutual fund companies. Many people who sell stock place their proceeds in a MMF until they decide where to reinvest their money. But these accounts are excellent places to save money for an emergency fund or for other short-term goals.No matter where you open a MMF, the accounts are not FDIC insured, so there is a slight risk associated. They often offer better interest rates than basic bank money market accounts.The reason that the risk with MMFs is so minimal is that they are highly regulated. The money in the fund is invested in very safe, short-term debt securities such as certificates of deposits and U.S. Treasury bills. The goal of the fund is to maintain a share price of $1. There is no guarantee that the fund will maintain its share price, however, consumers haven't lost any money in these funds.You, Best Mutual Fund Investment, will pay a fee called the expense ratio. This fee helps to pay the cost of someone to oversee the fund and manage the investments in it. The expense ratio has already been deducted from the advertised yield. It is important to look for a fund with a low expense ratio. Vanguard has a reputation for charging low fees. For example, if their expense ratio is at .30%, then you can expect the industry average to be at .50%. You want to avoid funds that charge above the industry average. You can look in the fund prospectus or on many Web sites to find expense ratio information.There are two types of money market funds: taxable and tax-free. The taxable funds will usually pay a higher yield, but they aren't for everyone. You can use a tax-equivalent yield formula to see which fund will give you the best overall return.Most money market funds have a minimum dollar amount. They will allow you to write checks and make electronic transfers. Federal regulation limit electronic, telephone and preauthorized transactions to six per month, with only three by check, draft of debit card. Some institutions, Mutual FundBest Mutual Fund Investment, may impose a fee if you have a certain amount of withdrawals beyond your account minimum balance.Martin Lukac, represents http://www.RateEmpire.com and http://www.1AmericanFinancial.com, a finance web-company specializing in real estate/mortgage market. We specialize in daily updates, rate predictions, mortgage rates and more. Find low home loan mortgage interest rates from hundreds of mortgage companies!
Source: articleage.com
Money Market Mutual Funds (MMF) are offered by banks, brokerages and mutual fund companies. Many people who sell stock place their proceeds in a MMF until they decide where to reinvest their money. But these accounts are excellent places to save money for an emergency fund or for other short-term goals.No matter where you open a MMF, the accounts are not FDIC insured, so there is a slight risk associated. They often offer better interest rates than basic bank money market accounts.The reason that the risk with MMFs is so minimal is that they are highly regulated. The money in the fund is invested in very safe, short-term debt securities such as certificates of deposits and U.S. Treasury bills. The goal of the fund is to maintain a share price of $1. There is no guarantee that the fund will maintain its share price, however, consumers haven't lost any money in these funds.You, Best Mutual Fund Investment, will pay a fee called the expense ratio. This fee helps to pay the cost of someone to oversee the fund and manage the investments in it. The expense ratio has already been deducted from the advertised yield. It is important to look for a fund with a low expense ratio. Vanguard has a reputation for charging low fees. For example, if their expense ratio is at .30%, then you can expect the industry average to be at .50%. You want to avoid funds that charge above the industry average. You can look in the fund prospectus or on many Web sites to find expense ratio information.There are two types of money market funds: taxable and tax-free. The taxable funds will usually pay a higher yield, but they aren't for everyone. You can use a tax-equivalent yield formula to see which fund will give you the best overall return.Most money market funds have a minimum dollar amount. They will allow you to write checks and make electronic transfers. Federal regulation limit electronic, telephone and preauthorized transactions to six per month, with only three by check, draft of debit card. Some institutions, Mutual FundBest Mutual Fund Investment, may impose a fee if you have a certain amount of withdrawals beyond your account minimum balance.Martin Lukac, represents http://www.RateEmpire.com and http://www.1AmericanFinancial.com, a finance web-company specializing in real estate/mortgage market. We specialize in daily updates, rate predictions, mortgage rates and more. Find low home loan mortgage interest rates from hundreds of mortgage companies!
Wednesday, September 23, 2009
How Preparing a Personal Budget Helps You Save More
Author: Shweta Misra
Source: ezinearticles.com
The biggest challenge many of us face about investments is finding enough surplus funds. Most of the time we are engrossed in balancing our income and expenses. Drawing up a personal budget allows you to take control of your spending and find enough money to save and invest for vacations, retirement and your children's education.We, Mutual FundBest Mutual Fund Investment, can save some money even if a major portion of our income go in servicing various debts - home loan, personal loan EMIs or for that matter Credit Card bills - we have accumulated. As Warren Buffet advises, you need first set aside money for investments before thinking about spending it. You don't need a million to start investing. You can start with a humble sum of Rs.500 per month and see it grow. After all contributing small sums of money regularlyto Systematic Investment Plans.Why do you need, Best Mutual Fund Investment, a personalbudget?The personal budget helps us plan our income and expenses better and create scope for that little something that we can save or invest. You can choose from a verity of online tools or can use a simple Excel sheet for managing your income and expenses. All you need to do is to record them on a regular basis. This will not only help you monitor your expenses but will also help you in identifying your wasteful expenditure creating the much needed surplus forinvesting.If you do not prepare a personal budget, well, nothing much will happen but you would not be in a position to meet your long term financial goals. Even if your income rise in future, it is likely that your expenses will outpace your income. This way you will always be on your toes to manage your income and expenses. That surplus money for investment will always remain anillusion.How to start a personalbudget?Personal budgeting is not a single hour or day process. Time is the major element that helps people to identify all necessaryrequirements.You need to be clear about your goals and need to create funds for meeting them. The objective with which you start a personal budget is very important to design a budgeting pattern that suits yourrequirements.If you are struggling to meet your expenses from your sources of income, the objective of your budget is to find ways to generate enough surplus for investment. For this try to fix a cap for each type of expenditure that you incur. Cut down your incidental expenditure and find ways to minimize others. This will be a difficult task at the beginning but your efforts will start giving fruits by generating a surplus out of the fixed corpus. Set your self a target to save 10-15 per cent of your monthly income every month.If you already have a surplus income after meeting your monthly and annual financial commitments, you may still want to minimize your unnecessary expenditure and start generating a larger surplus. Your target now should be increase your monthly saving potential to 20-35 per cent of your monthly income. Here is when you can start allocating your surplus funds to work for your long term goals.Allocate 70-80 percent of your surplus for long term investments (investments with a time horizon of 5 to 10 years) and balance 20-30 per cent to short term contingency funds. While money in your bank account and bank fixed deposits could be good to serve your short term objectives, for better realization of your overall financial goals you may need to deploy your funds to long term investment instruments such as a Mutual Fund or a Retirement Pension fund. This will help you prepare a solid foundation for your retirement as explained in our earlier article Retirement Planning - Start now, Save more, Retire richConclusionDrawing up a personal budget is the first step that you can take to fulfill your long term financial goals. Over the years, as your ability to save improves you can make an effort to allocate a higher percentage of your income towards investments. This will accelerate your progress to achieve the long term target you set foryourself.
Source: ezinearticles.com
The biggest challenge many of us face about investments is finding enough surplus funds. Most of the time we are engrossed in balancing our income and expenses. Drawing up a personal budget allows you to take control of your spending and find enough money to save and invest for vacations, retirement and your children's education.We, Mutual FundBest Mutual Fund Investment, can save some money even if a major portion of our income go in servicing various debts - home loan, personal loan EMIs or for that matter Credit Card bills - we have accumulated. As Warren Buffet advises, you need first set aside money for investments before thinking about spending it. You don't need a million to start investing. You can start with a humble sum of Rs.500 per month and see it grow. After all contributing small sums of money regularlyto Systematic Investment Plans.Why do you need, Best Mutual Fund Investment, a personalbudget?The personal budget helps us plan our income and expenses better and create scope for that little something that we can save or invest. You can choose from a verity of online tools or can use a simple Excel sheet for managing your income and expenses. All you need to do is to record them on a regular basis. This will not only help you monitor your expenses but will also help you in identifying your wasteful expenditure creating the much needed surplus forinvesting.If you do not prepare a personal budget, well, nothing much will happen but you would not be in a position to meet your long term financial goals. Even if your income rise in future, it is likely that your expenses will outpace your income. This way you will always be on your toes to manage your income and expenses. That surplus money for investment will always remain anillusion.How to start a personalbudget?Personal budgeting is not a single hour or day process. Time is the major element that helps people to identify all necessaryrequirements.You need to be clear about your goals and need to create funds for meeting them. The objective with which you start a personal budget is very important to design a budgeting pattern that suits yourrequirements.If you are struggling to meet your expenses from your sources of income, the objective of your budget is to find ways to generate enough surplus for investment. For this try to fix a cap for each type of expenditure that you incur. Cut down your incidental expenditure and find ways to minimize others. This will be a difficult task at the beginning but your efforts will start giving fruits by generating a surplus out of the fixed corpus. Set your self a target to save 10-15 per cent of your monthly income every month.If you already have a surplus income after meeting your monthly and annual financial commitments, you may still want to minimize your unnecessary expenditure and start generating a larger surplus. Your target now should be increase your monthly saving potential to 20-35 per cent of your monthly income. Here is when you can start allocating your surplus funds to work for your long term goals.Allocate 70-80 percent of your surplus for long term investments (investments with a time horizon of 5 to 10 years) and balance 20-30 per cent to short term contingency funds. While money in your bank account and bank fixed deposits could be good to serve your short term objectives, for better realization of your overall financial goals you may need to deploy your funds to long term investment instruments such as a Mutual Fund or a Retirement Pension fund. This will help you prepare a solid foundation for your retirement as explained in our earlier article Retirement Planning - Start now, Save more, Retire richConclusionDrawing up a personal budget is the first step that you can take to fulfill your long term financial goals. Over the years, as your ability to save improves you can make an effort to allocate a higher percentage of your income towards investments. This will accelerate your progress to achieve the long term target you set foryourself.
Shweta is Co-Founder of Personal Finance Blog that provides expert advice on Money Management, Financial Planning, Investment, Insurance, Loans and Personal Wealth Management to effectively manage your personal money.
For more articles on Personal Finance, please go to PersonalMoney.in
Online Investing Basics
Author: Adam Masterson -
Source: articledashboard.com
A lot of smart individuals would like the risk and thrill of picking their own stocks and funds on the stock market. These people are often day traders and need to have access to viewing each stock in their portfolio 24 hours a day, 7 days a week. Online brokerages can for this reason be very useful.First of all, with an online firm they leverage technology to help them do their job. As such, less paper and people get between you and your stocks, so you pay less commission. You are responsible for choosing your investments. Before choosing an online brokerage firm, research all of the costs associated with the firm. Remember to look for more than just the lowest commission fee per trade. Many online brokerage firms with slightly higher commission fees actually offer more tools and research capabilities for their investors. If a higher commission fee is matched by extra investor support the additional cost may be well worth it. Also take note of the minimum balance requirements and maintenance fees. Sometimes firms with lower commission fees make up the difference with a higher required minimum balance.There are a few key factors that make an online brokerage firm trustworthy and professional. Good brokerage sites offer glossaries of financial and investment terms to help their investors. There may also have free and unlimited access to news and research from third- party sources to help investors make better decisions. A telephone number for customer assistance is also a desirable feature. Of course, keep in mind that the customer service department can only help with the mechanics of the online brokerage site. They aren't there to help you choose stocks or offer investment advice.If you like the convenience of investing online, there are several brokerages to choose from. Two of the most well known discount online brokerages are Ameritrade and ShareBuilder; please note that there are many other options available.With Ameritrade, there is a minimum balance requirement of $1000. With that balance, you can open an individual account. There is a quarterly maintenance fee of $15, but only if the account has less than $2000 of liquidation value. The fee will be waived if a minimum of four trades have been made within a six- month window. The fee can also be waived if the account is an IRA, rather than an account for stock investing.Market orders for stock are charged a $10. 99 commission fee by Ameritrade. Limit orders are also charged a $10. 99 commission fee. Commissions for mutual funds are $17. 99 for buying and selling no- loan funds. For buying a load mutual fund there are no fees charged. A load mutual fund is the term used when there is a fee charged by the mutual fund manager. For those who want a riskier option, Ameritrade also offers margin accounts (borrowing loans) and short accounts (borrowing securities).Ameritrade has many brick and mortar branches around the country if you prefer to walk into a branch rather than conduct your business online. This allows investors to have the flexibility of having both an online and a walk- in brokerage.Many programs have options for investors to toggle on or off depending on their, Mutual FundBest Mutual Fund Investment, personal preferences. These services allows investors to build varied portfolios in almost 5,000 different stocks and funds. You can also buy and sell in real- time. Investors instruct the system in how much they want to invest, and have complete control over when the investments are made and that companies they invest in. The system works by allowing the investor, Best Mutual Fund Investment, to specify a dollar amount to be deducted from their checking or savings account on a monthly or weekly basis. In this way, you can do lightning fast trades, and in a market that can change quickly being able to do that is crucial.
Source: articledashboard.com
A lot of smart individuals would like the risk and thrill of picking their own stocks and funds on the stock market. These people are often day traders and need to have access to viewing each stock in their portfolio 24 hours a day, 7 days a week. Online brokerages can for this reason be very useful.First of all, with an online firm they leverage technology to help them do their job. As such, less paper and people get between you and your stocks, so you pay less commission. You are responsible for choosing your investments. Before choosing an online brokerage firm, research all of the costs associated with the firm. Remember to look for more than just the lowest commission fee per trade. Many online brokerage firms with slightly higher commission fees actually offer more tools and research capabilities for their investors. If a higher commission fee is matched by extra investor support the additional cost may be well worth it. Also take note of the minimum balance requirements and maintenance fees. Sometimes firms with lower commission fees make up the difference with a higher required minimum balance.There are a few key factors that make an online brokerage firm trustworthy and professional. Good brokerage sites offer glossaries of financial and investment terms to help their investors. There may also have free and unlimited access to news and research from third- party sources to help investors make better decisions. A telephone number for customer assistance is also a desirable feature. Of course, keep in mind that the customer service department can only help with the mechanics of the online brokerage site. They aren't there to help you choose stocks or offer investment advice.If you like the convenience of investing online, there are several brokerages to choose from. Two of the most well known discount online brokerages are Ameritrade and ShareBuilder; please note that there are many other options available.With Ameritrade, there is a minimum balance requirement of $1000. With that balance, you can open an individual account. There is a quarterly maintenance fee of $15, but only if the account has less than $2000 of liquidation value. The fee will be waived if a minimum of four trades have been made within a six- month window. The fee can also be waived if the account is an IRA, rather than an account for stock investing.Market orders for stock are charged a $10. 99 commission fee by Ameritrade. Limit orders are also charged a $10. 99 commission fee. Commissions for mutual funds are $17. 99 for buying and selling no- loan funds. For buying a load mutual fund there are no fees charged. A load mutual fund is the term used when there is a fee charged by the mutual fund manager. For those who want a riskier option, Ameritrade also offers margin accounts (borrowing loans) and short accounts (borrowing securities).Ameritrade has many brick and mortar branches around the country if you prefer to walk into a branch rather than conduct your business online. This allows investors to have the flexibility of having both an online and a walk- in brokerage.Many programs have options for investors to toggle on or off depending on their, Mutual FundBest Mutual Fund Investment, personal preferences. These services allows investors to build varied portfolios in almost 5,000 different stocks and funds. You can also buy and sell in real- time. Investors instruct the system in how much they want to invest, and have complete control over when the investments are made and that companies they invest in. The system works by allowing the investor, Best Mutual Fund Investment, to specify a dollar amount to be deducted from their checking or savings account on a monthly or weekly basis. In this way, you can do lightning fast trades, and in a market that can change quickly being able to do that is crucial.
Thinking About Rolling Your 401K Plan Into an IRA?
Author: Debra L. Dragon
Source: ezinearticles.com
As more people are experiencing losses in their 401K plans, many are wondering if they would do better to roll that money into an IRA. Many financial experts believe rolling a 401K plan into an IRA helps maximize your returns - especially during a period when you've been losing money due to the declining economy. If you are thinking about moving your 401K funds into an IRA, here are the four things you must consider to help you make the decision to change:401K Plans are Controlled By Your EmployerWhat many people don't realize is that 401K plans are controlled by your employer. They're going to select investment venues that will benefit the company - and probably benefit the company more than it benefits the individual investors. Many people decide to move their 401K money into an IRA simply because they want to choose their own investments and have more control in order to maximize their returns.IRAs Give Varied Investment OptionsA 401K plan is limited to stocks and mutual funds which are chosen by the employer running the plan, Best Mutual Fund Investment, . If you open a self-directed IRA, you have more options as far as what you might invest in. Self-directed IRAs allow investments in real estate, business partnerships or franchises, gas and oil fields, tax liens, and private equity among others. If you're not big on the idea of having to follow the market to make wise investment decisions, the fixed-rate IRA allows you to earn a guaranteed return on your investment, without the risk of losing your contributions.More Opportunities to Maximize Your Return with IRAsMany people move their 401K retirement funds into an IRA in order to invest in real estate. If you're new to investing in real estate, it would be wise to find financial advisors or companies that specialize in real estate investing to help you. Some companies will guarantee that you double your returns (or they'll pay you the difference); which helps eliminate your risks. If you're looking to study self-directed IRA options yourself in order to make all your own investment decisions, you might roll your 401K funds into a fixed-rate IRA while you're studying, to ensure you don't lose any more money than you already have.IRAs Put You in the Driver's SeatThere are a few 401K plans that are labeled "self-directed", but they are not as flexible as a self-directed IRA. Many employers offering a self-directed 401K plan only allow a portion of all of your investments to be self-directed. Even self-directed 401K plans allow the employer, Mutual FundBest Mutual Fund Investment, to change companies or investment options whenever they want - and you don't have any say in the matter. When you save for retirement in self-directed IRAs, you can make decisions regarding your investments at any time, with help from the account custodian you've selected.Most people find they are able to maximize their investment returns by rolling their standard 401K plan into an IRA. Whether you roll your retirement fund into a self-directed IRA that enables more variety investments, or a fixed-rate IRA that guarantees you won't lose your contribution - IRAs offer more flexibility and control over your retirement fund.
Source: ezinearticles.com
As more people are experiencing losses in their 401K plans, many are wondering if they would do better to roll that money into an IRA. Many financial experts believe rolling a 401K plan into an IRA helps maximize your returns - especially during a period when you've been losing money due to the declining economy. If you are thinking about moving your 401K funds into an IRA, here are the four things you must consider to help you make the decision to change:401K Plans are Controlled By Your EmployerWhat many people don't realize is that 401K plans are controlled by your employer. They're going to select investment venues that will benefit the company - and probably benefit the company more than it benefits the individual investors. Many people decide to move their 401K money into an IRA simply because they want to choose their own investments and have more control in order to maximize their returns.IRAs Give Varied Investment OptionsA 401K plan is limited to stocks and mutual funds which are chosen by the employer running the plan, Best Mutual Fund Investment, . If you open a self-directed IRA, you have more options as far as what you might invest in. Self-directed IRAs allow investments in real estate, business partnerships or franchises, gas and oil fields, tax liens, and private equity among others. If you're not big on the idea of having to follow the market to make wise investment decisions, the fixed-rate IRA allows you to earn a guaranteed return on your investment, without the risk of losing your contributions.More Opportunities to Maximize Your Return with IRAsMany people move their 401K retirement funds into an IRA in order to invest in real estate. If you're new to investing in real estate, it would be wise to find financial advisors or companies that specialize in real estate investing to help you. Some companies will guarantee that you double your returns (or they'll pay you the difference); which helps eliminate your risks. If you're looking to study self-directed IRA options yourself in order to make all your own investment decisions, you might roll your 401K funds into a fixed-rate IRA while you're studying, to ensure you don't lose any more money than you already have.IRAs Put You in the Driver's SeatThere are a few 401K plans that are labeled "self-directed", but they are not as flexible as a self-directed IRA. Many employers offering a self-directed 401K plan only allow a portion of all of your investments to be self-directed. Even self-directed 401K plans allow the employer, Mutual FundBest Mutual Fund Investment, to change companies or investment options whenever they want - and you don't have any say in the matter. When you save for retirement in self-directed IRAs, you can make decisions regarding your investments at any time, with help from the account custodian you've selected.Most people find they are able to maximize their investment returns by rolling their standard 401K plan into an IRA. Whether you roll your retirement fund into a self-directed IRA that enables more variety investments, or a fixed-rate IRA that guarantees you won't lose your contribution - IRAs offer more flexibility and control over your retirement fund.
Debra Dragon is a freelance writer for http://www.DepositAccounts.com
She writes about how to make your money work better for you through various deposit accounts, including savings accounts, interest checking accounts, IRAs, and money market funds.
Tuesday, September 22, 2009
Stock Investing: Why the Individual Often Has an Advantage Over the "Pros"
Author: David Van Knapp
Source: download
Famed investor Peter Lynch said, "...the amateur investor has numerous built-in
advantages that, if exploited, should result in his or her outperforming the experts,
and also the market in general."
Many people believe that an individual cannot beat the market. They think that they cannot, over long periods of time, generate better returns than the market itself, nor outperform professional money managers who, after all, do this for a living.
But Lynch was right. Many individuals can and do beat the market and the experts. Let's see why the individual investor actually has certain advantages over the pros.
First, as an individual investor, you run your own shop. Unlike many professional money managers, no boss is telling you to be fully invested. If, during bad market conditions, cash is the best place for your ''stock money,'' you can keep it in cash and no one will fire you. You can wait for the right price or for other conditions you may require. You can even get out of the market entirely for awhile. You decide what to do with your capital. You are your own fiduciary.
Second, the amount of money you have to invest is small compared to, say, mutual funds. Many mutual funds own unattractive stocks. They do so because they have so much money to invest. So the fund managers go through their first tier of good ideas and on to their second tier, and maybe even into their third. Their fund's charter may require diversification across a broad range of stocks or investment in illogical sectors. You, on the other hand, can keep your holdings concentrated in your best opportunities.
Third, you can control expenses better. You can buy and sell using the cheapest brokeragethe execution of stock trades, after all, is a commodity service. Why pay $100 or $20 per trade when you can get it done for $10 or $7 or even less? Plus, as your own boss, you don't have to pay management fees, ''wrap'' fees, or marketing expenses, none of which help returns. All of the information you need to invest intelligently is readily available, and it is free. So you don't have to pay for analysisyou do it yourself.
Fourth, you will (of course) keep your own best interests in mind. Sad to say, at many mutual funds, the primary mission is to attract more investors and grow the fund. Incentives are set that way. Your incentive, in contrast, is to take care of your money. Nobody will ever manage your money better than you will. Nobody cares more, and nobody understands you better, Mutual FundBest Mutual Fund Investment, .
Fifth, you control taxable events. Until a stock is sold, no taxable event takes place. Capital gains (or losses) are just on paper. Mutual fund shareholders own shares in the fund but not in the individual stocks that the fund owns. Therefore they are at the mercy of sell decisions made by the fund's managers. A mutual fund can generate taxable gains even though the fund itself declines in value. This happens all the time, when the fund sells some stocks at a profit but does not offset those gains by selling other stocks with losses. So the fund has net profits on its trades even if the total asset value of the fund is lower overall. The net trading profits (by law) are passed through to the fund's owners. Those unfortunate souls are left with a tax bill even if their investment is worth less than before. By contrast, if you own individual, Best Mutual Fund Investment, stocks, you are in sole control of selling decisions and the attendant tax consequences.
Finally, you don't have to worry about ''style drift.'' For example, the rules for a small-company mutual fund may force the fund's manager to sell a stock if its market size exceeds a certain limit. That's what its prospectus promises its investors. But that growth is just what you are looking for! You want your small companies to succeed and become large companies. You don't want to sell those stocks, you want to keep them as long as they are performing well.
Peter Lynch had it right. He understood that the individual stock owner holds some cards that the professionals only wish they had. If the cards are played right, the individual can surpass both the pros and the market.
If you would like to learn about a comprehensive stock investment approach that you can use to capitalize on your personal advantages in the stock market, please consider purchasing ''Sensible Stock Investing: How to Pick, Value, and Manage Stocks.'' Visit http://www.SensibleStocks.com to learn about the best stock investment guide for individuals.
You are encouraged to reproduce this article or any portion of it. If you do so, you must include the title, author, and the following Web site address: http://www.SensibleStocks.com
Source: download
Famed investor Peter Lynch said, "...the amateur investor has numerous built-in
advantages that, if exploited, should result in his or her outperforming the experts,
and also the market in general."
Many people believe that an individual cannot beat the market. They think that they cannot, over long periods of time, generate better returns than the market itself, nor outperform professional money managers who, after all, do this for a living.
But Lynch was right. Many individuals can and do beat the market and the experts. Let's see why the individual investor actually has certain advantages over the pros.
First, as an individual investor, you run your own shop. Unlike many professional money managers, no boss is telling you to be fully invested. If, during bad market conditions, cash is the best place for your ''stock money,'' you can keep it in cash and no one will fire you. You can wait for the right price or for other conditions you may require. You can even get out of the market entirely for awhile. You decide what to do with your capital. You are your own fiduciary.
Second, the amount of money you have to invest is small compared to, say, mutual funds. Many mutual funds own unattractive stocks. They do so because they have so much money to invest. So the fund managers go through their first tier of good ideas and on to their second tier, and maybe even into their third. Their fund's charter may require diversification across a broad range of stocks or investment in illogical sectors. You, on the other hand, can keep your holdings concentrated in your best opportunities.
Third, you can control expenses better. You can buy and sell using the cheapest brokeragethe execution of stock trades, after all, is a commodity service. Why pay $100 or $20 per trade when you can get it done for $10 or $7 or even less? Plus, as your own boss, you don't have to pay management fees, ''wrap'' fees, or marketing expenses, none of which help returns. All of the information you need to invest intelligently is readily available, and it is free. So you don't have to pay for analysisyou do it yourself.
Fourth, you will (of course) keep your own best interests in mind. Sad to say, at many mutual funds, the primary mission is to attract more investors and grow the fund. Incentives are set that way. Your incentive, in contrast, is to take care of your money. Nobody will ever manage your money better than you will. Nobody cares more, and nobody understands you better, Mutual FundBest Mutual Fund Investment, .
Fifth, you control taxable events. Until a stock is sold, no taxable event takes place. Capital gains (or losses) are just on paper. Mutual fund shareholders own shares in the fund but not in the individual stocks that the fund owns. Therefore they are at the mercy of sell decisions made by the fund's managers. A mutual fund can generate taxable gains even though the fund itself declines in value. This happens all the time, when the fund sells some stocks at a profit but does not offset those gains by selling other stocks with losses. So the fund has net profits on its trades even if the total asset value of the fund is lower overall. The net trading profits (by law) are passed through to the fund's owners. Those unfortunate souls are left with a tax bill even if their investment is worth less than before. By contrast, if you own individual, Best Mutual Fund Investment, stocks, you are in sole control of selling decisions and the attendant tax consequences.
Finally, you don't have to worry about ''style drift.'' For example, the rules for a small-company mutual fund may force the fund's manager to sell a stock if its market size exceeds a certain limit. That's what its prospectus promises its investors. But that growth is just what you are looking for! You want your small companies to succeed and become large companies. You don't want to sell those stocks, you want to keep them as long as they are performing well.
Peter Lynch had it right. He understood that the individual stock owner holds some cards that the professionals only wish they had. If the cards are played right, the individual can surpass both the pros and the market.
If you would like to learn about a comprehensive stock investment approach that you can use to capitalize on your personal advantages in the stock market, please consider purchasing ''Sensible Stock Investing: How to Pick, Value, and Manage Stocks.'' Visit http://www.SensibleStocks.com to learn about the best stock investment guide for individuals.
You are encouraged to reproduce this article or any portion of it. If you do so, you must include the title, author, and the following Web site address: http://www.SensibleStocks.com
Roth IRA Strategies
Author: Britt Gillette
Source: ezinearticles.com
Once you understand the basic fundamentals of a Roth IRA Basics, you need to choose a Roth IRA investment strategy which is suitable to your financial position as well as your tolerance for risk. Take note of the latter part of that last sentence - "suitable to your financial position as well as your tolerance for risk." Don't choose an investment strategy which calls for you to contribute $100 per month to your Roth IRA if you have delinquent bills or no savings. Make sure you have at least six months of living expenses tucked away before you begin committing to a long-term investment strategy. Also, don't make any long-term investments which will cause you to lose sleep at night. If you're scared silly by the prospect of losing everything in the stock market, avoid a lot of unwarranted stress by simply not investing in the stock market to begin with.
In this article, we'll cover three (3) primary, non-exclusive investment strategies:
1) Investing in your own area of expertise
2) Investing in managed funds
3) Investing in individual stocks
These strategies are non-exclusive because you can engage in one, all three, or any combination of the three as you see fit. But in most cases, at least one of these strategies will apply to you.
Choosing Your Roth IRA Investment Vehicle(s)
There's an almost countless array investment vehicles you can hold in your Roth IRA, such as:
a) Common Stocks
b) Bonds
c) Mutual Funds
d) Certificates of Deposit (CDs)
e) Exchange Traded Funds (ETFs)
f) Money Market Accounts
g) Savings Accounts
h) Treasury Inflation Protected Securities (TIPs)
i) Real Estate Investment Trusts (REITs)
j) Platinum, Gold, and Silver Coins
Some things you can't hold in a Roth IRA include:
a) Collectibles (Priceless art, classic autos, antiques, stamps, etc.)
b) Cash Value Life Insurance
In a nutshell, this covers your list of investment options for a Roth IRA. Take a good look, then continue reading.
Your Comfort Level
To decide what to invest in and how, you should start by asking yourself a series of questions. For instance, are you already familiar with the stock market? Do you have a certain level of comfort investing in one asset class over another? Perhaps you have an intimate familiarity with commodities due to your current job and you think this gives you special insight, Mutual FundBest Mutual Fund Investment, into the world of commodity investing.
Whatever your reasons for being more comfortable with one asset class over another, it's generally a good idea to stick with what you know best.
Your Roth IRA Financial Goals
Regardless of your familiarity with an asset class, you need to make sure the one you choose can realistically help you meet your financial goals. For instance, if a comfortable retirement requires that you receive a 6% annual compound rate of return on your investment portfolio, then you probably don't want to invest everything in U.S. Treasuries yielding 2% annually - even if you consider yourself an ultra-conservative investor. Take a look at some Roth IRA calculators to help determine the annual rate-of-return you need to achieve.
Remember, your Roth IRA is a long-term commitment. If you want to grow your savings into a large nest egg by retirement, you need to do more than simply receive a return of a few percentage points per year. You need to receive a return of a few percentage points per year plus inflation. This is a key point to remember, because if your investment returns can't outpace inflation, then your investment principal will become worth less and less over time. You want it to be more and more!
Historically, the best inflation-beating, Best Mutual Fund Investment, financial returns can be found in one place: the stock market.
Strategy #1 - Investing In Your Own Area Of Expertise
But if the stock market is not one of your desired investment vehicles, feel free to go about doing your own thing, make sure you keep an eye on fees and other costs which can eat into your Roth IRA returns.
For the rest of you who are still interested in investing in the stock market, we're just beginning, so keep on reading.
Investing In The Stock Market
As a general rule, you can only invest in the stock market in one of two ways:
1) You can pay someone to manage your stock market investments
2) You can choose your own individual stock market investments
You should only choose method #2 if you're dedicated to investing the time and energy necessary to properly inform yourself on your investment options. So let's take a look at those options.
Strategy #2 - Investing In Managed Funds
When it comes to paying someone to manage your stock market investments for you, you generally have two options - mutual funds and index funds.
Mutual Funds - Mutual funds are actively-managed investment pools with multiple investors which are managed by an investment professional. Most mutual funds have a stated goal or an investment theme denoting the focus of their investment strategy. For instance, a "large cap" mutual fund will focus its investments on the largest publicly traded companies as measured by market capitalization, while a "small cap" mutual fund will focus its investments on the smaller publicly traded companies as measured by market capitalization. Mutual funds charge management fees (and sometimes other fees) depending on the individual fund.
Index Funds - Index funds are non-actively managed investment pools which attempt to mimic the investment performance of a market index such as the Dow Jones Industrial Average or the S&P 500. By definition, index funds won't consistently beat the market averages they mirror, but they also shouldn't under perform them either. Another benefit of index funds is that the fees they charge are generally much lower than those of actively managed mutual funds.
Strategy #3 - Investing In Individual Stocks
For those who think they can select a stock portfolio which consistently beats the market averages as well as the returns of actively managed funds, investing in individual stocks may be the choice for you. Just remember, this is not a decision to be made lightly. Making your own individual investment decisions in regard to individual stocks takes a lot of time and effort and the returns you generate need to consistently beat the market averages for the invested time and effort to be worth your while.
Consistently beating the market averages is an elusive goal for mutual fund managers who must contend with numerous restrictions, such as government-enforced restrictions on portfolio diversification, institutional demands for short-term success, and untimely shareholder redemptions. But with the proper time, effort, and emotional control, beating the market averages is an obtainable goal for most individual investors.
Before choosing Strategy #3, make sure you can answer "yes" to each of the following questions:
Are you willing to invest the time and energy to research your own investments?
Do you understand, or are you willing to learn, the basic concepts of the stock market?
Do you understand, or are you willing to learn, the basic concepts of running a business?
Do you understand, or are you willing to learn, the basic concepts of evaluating the worth of a business?
Do you have the emotional control and power of conviction to follow through on your decisions?
Do you have the emotional control to do nothing when the situation demands it?
If you can answer "yes" to each of these questions, then you're ready to move on and learn more about making your own individual stock investment decisions. Choose the strategy you're most comfortable with, and begin investing in your Roth IRA today!
Source: ezinearticles.com
Once you understand the basic fundamentals of a Roth IRA Basics, you need to choose a Roth IRA investment strategy which is suitable to your financial position as well as your tolerance for risk. Take note of the latter part of that last sentence - "suitable to your financial position as well as your tolerance for risk." Don't choose an investment strategy which calls for you to contribute $100 per month to your Roth IRA if you have delinquent bills or no savings. Make sure you have at least six months of living expenses tucked away before you begin committing to a long-term investment strategy. Also, don't make any long-term investments which will cause you to lose sleep at night. If you're scared silly by the prospect of losing everything in the stock market, avoid a lot of unwarranted stress by simply not investing in the stock market to begin with.
In this article, we'll cover three (3) primary, non-exclusive investment strategies:
1) Investing in your own area of expertise
2) Investing in managed funds
3) Investing in individual stocks
These strategies are non-exclusive because you can engage in one, all three, or any combination of the three as you see fit. But in most cases, at least one of these strategies will apply to you.
Choosing Your Roth IRA Investment Vehicle(s)
There's an almost countless array investment vehicles you can hold in your Roth IRA, such as:
a) Common Stocks
b) Bonds
c) Mutual Funds
d) Certificates of Deposit (CDs)
e) Exchange Traded Funds (ETFs)
f) Money Market Accounts
g) Savings Accounts
h) Treasury Inflation Protected Securities (TIPs)
i) Real Estate Investment Trusts (REITs)
j) Platinum, Gold, and Silver Coins
Some things you can't hold in a Roth IRA include:
a) Collectibles (Priceless art, classic autos, antiques, stamps, etc.)
b) Cash Value Life Insurance
In a nutshell, this covers your list of investment options for a Roth IRA. Take a good look, then continue reading.
Your Comfort Level
To decide what to invest in and how, you should start by asking yourself a series of questions. For instance, are you already familiar with the stock market? Do you have a certain level of comfort investing in one asset class over another? Perhaps you have an intimate familiarity with commodities due to your current job and you think this gives you special insight, Mutual FundBest Mutual Fund Investment, into the world of commodity investing.
Whatever your reasons for being more comfortable with one asset class over another, it's generally a good idea to stick with what you know best.
Your Roth IRA Financial Goals
Regardless of your familiarity with an asset class, you need to make sure the one you choose can realistically help you meet your financial goals. For instance, if a comfortable retirement requires that you receive a 6% annual compound rate of return on your investment portfolio, then you probably don't want to invest everything in U.S. Treasuries yielding 2% annually - even if you consider yourself an ultra-conservative investor. Take a look at some Roth IRA calculators to help determine the annual rate-of-return you need to achieve.
Remember, your Roth IRA is a long-term commitment. If you want to grow your savings into a large nest egg by retirement, you need to do more than simply receive a return of a few percentage points per year. You need to receive a return of a few percentage points per year plus inflation. This is a key point to remember, because if your investment returns can't outpace inflation, then your investment principal will become worth less and less over time. You want it to be more and more!
Historically, the best inflation-beating, Best Mutual Fund Investment, financial returns can be found in one place: the stock market.
Strategy #1 - Investing In Your Own Area Of Expertise
But if the stock market is not one of your desired investment vehicles, feel free to go about doing your own thing, make sure you keep an eye on fees and other costs which can eat into your Roth IRA returns.
For the rest of you who are still interested in investing in the stock market, we're just beginning, so keep on reading.
Investing In The Stock Market
As a general rule, you can only invest in the stock market in one of two ways:
1) You can pay someone to manage your stock market investments
2) You can choose your own individual stock market investments
You should only choose method #2 if you're dedicated to investing the time and energy necessary to properly inform yourself on your investment options. So let's take a look at those options.
Strategy #2 - Investing In Managed Funds
When it comes to paying someone to manage your stock market investments for you, you generally have two options - mutual funds and index funds.
Mutual Funds - Mutual funds are actively-managed investment pools with multiple investors which are managed by an investment professional. Most mutual funds have a stated goal or an investment theme denoting the focus of their investment strategy. For instance, a "large cap" mutual fund will focus its investments on the largest publicly traded companies as measured by market capitalization, while a "small cap" mutual fund will focus its investments on the smaller publicly traded companies as measured by market capitalization. Mutual funds charge management fees (and sometimes other fees) depending on the individual fund.
Index Funds - Index funds are non-actively managed investment pools which attempt to mimic the investment performance of a market index such as the Dow Jones Industrial Average or the S&P 500. By definition, index funds won't consistently beat the market averages they mirror, but they also shouldn't under perform them either. Another benefit of index funds is that the fees they charge are generally much lower than those of actively managed mutual funds.
Strategy #3 - Investing In Individual Stocks
For those who think they can select a stock portfolio which consistently beats the market averages as well as the returns of actively managed funds, investing in individual stocks may be the choice for you. Just remember, this is not a decision to be made lightly. Making your own individual investment decisions in regard to individual stocks takes a lot of time and effort and the returns you generate need to consistently beat the market averages for the invested time and effort to be worth your while.
Consistently beating the market averages is an elusive goal for mutual fund managers who must contend with numerous restrictions, such as government-enforced restrictions on portfolio diversification, institutional demands for short-term success, and untimely shareholder redemptions. But with the proper time, effort, and emotional control, beating the market averages is an obtainable goal for most individual investors.
Before choosing Strategy #3, make sure you can answer "yes" to each of the following questions:
Are you willing to invest the time and energy to research your own investments?
Do you understand, or are you willing to learn, the basic concepts of the stock market?
Do you understand, or are you willing to learn, the basic concepts of running a business?
Do you understand, or are you willing to learn, the basic concepts of evaluating the worth of a business?
Do you have the emotional control and power of conviction to follow through on your decisions?
Do you have the emotional control to do nothing when the situation demands it?
If you can answer "yes" to each of these questions, then you're ready to move on and learn more about making your own individual stock investment decisions. Choose the strategy you're most comfortable with, and begin investing in your Roth IRA today!
About the Author
Britt Gillette is the founder of Your-Roth-IRA.com, a personal financial website focused on Roth IRAs. Visit Your-Roth-IRA.com to read more articles about Roth IRA strategies and other Roth IRA tips.
Monday, September 21, 2009
Eighteen Month Old New Yorker Funding Her Own Future Education
Author: Anonymous
Source: free-articles
June 16, 2004 -- In an effort to fund his childs future education, Robert Criscuolo, of Staten Island, New York took an unconventional yet innovative approach. He, Best Mutual Fund Investment,, Mutual FundBest Mutual Fund Investment, turned to the World Wide Web and set up a series of online businesses for his daughter, Sabrina Ann Criscuolo, now 18 months old.
Sabrinas website www.youngestentrepreneur.com sells a wide array of merchandise and promotes business opportunities that have been carefully selected for quality and value.
Sabrinas website offers exceptional values on products such as beautiful fresh cut flowers, childrens toys and gifts, internet based business opportunities and much more. (Even an acre of land on the Moon!)
The site is constantly updated, so please remember to check back often to see what new products have been added.
Robert calls his daughter Sabrina "The Youngest Entrepreneur in America", hence the website name "www.YoungestEntrepreneur.com".
Sabrinas father Robert commented, "In recent times, the conventional means of funding a childs future education via stocks, mutual funds, Bank CD's, have not only become risky but have also not produced the greatest returns over time." "That's why I decided to be innovative and take a different approach."
All profits from the sale of merchandise from Sabrina's website will go towards her future education.
Source: free-articles
June 16, 2004 -- In an effort to fund his childs future education, Robert Criscuolo, of Staten Island, New York took an unconventional yet innovative approach. He, Best Mutual Fund Investment,, Mutual FundBest Mutual Fund Investment, turned to the World Wide Web and set up a series of online businesses for his daughter, Sabrina Ann Criscuolo, now 18 months old.
Sabrinas website www.youngestentrepreneur.com sells a wide array of merchandise and promotes business opportunities that have been carefully selected for quality and value.
Sabrinas website offers exceptional values on products such as beautiful fresh cut flowers, childrens toys and gifts, internet based business opportunities and much more. (Even an acre of land on the Moon!)
The site is constantly updated, so please remember to check back often to see what new products have been added.
Robert calls his daughter Sabrina "The Youngest Entrepreneur in America", hence the website name "www.YoungestEntrepreneur.com".
Sabrinas father Robert commented, "In recent times, the conventional means of funding a childs future education via stocks, mutual funds, Bank CD's, have not only become risky but have also not produced the greatest returns over time." "That's why I decided to be innovative and take a different approach."
All profits from the sale of merchandise from Sabrina's website will go towards her future education.
1.7 Million Americans Forfeit $2 Billion to Uncle Sam on April 17th
Author: Nicole Anderson
Source: articleage.com
Unclaimed money in the United States is at an all time high, $25 Billion, and unclaimed tax refunds make up a large portion of that number. Approximately $2 Billion in unclaimed tax refunds is owed to 1,714,500 Americans who did not file for their return in 2002.
People owed refunds on their 2002 taxes had until April 17, 2006 to file for that tax year and claim their refund. If they do not file the $2 Billion will be forfeited to the government.
Unfortunately, unclaimed tax returns are common. There are a few reasons people do not file. Either they don't owe taxes, they didn't have to file because they earned too little, or they didn't take their earned income tax credit. Earn income tax credits for 2002 are for workers who made less than $11,060 and have no children, earned less than $29,201 and had one child, or earned no more than $33,178 and had two or more kids.
Considering the people who are eligible for the refunds are those who did not make much,, Best Mutual Fund Investment, they are probably most in need of this money. Most likely they are unaware the money is due to them or they simply don't know how to claim it.
The deadline to claim tax refunds for 2003 is April 15, 2007. People are owed billions from 2003 as well.
You can see if you are owed money if you did not file in 2003 by completing a form.
CLAIMING YOUR REFUND
The IRS will send a refund check after receiving the appropriate filing form, Form, Mutual FundBest Mutual Fund Investment, 1040 (or 1040A or 1040EZ). This form will indicate how large the refund check should be.
You can download this form at http://www.irs.gov/pub/irs-prior/f1040--2003.pdf or call toll-free (800) 829-3676 to request the form.
If you are owed money from 2003, remember you only have until April 15, 2007 to file or the money will become Uncle Sam's permanently.
If you are owed an unclaimed tax refund you may be owed other unclaimed funds. There are millions of Americans who have lost money they may be completely unaware exists.
This unclaimed money is considered "unclaimed property" and includes the following:
ท Savings and checking accounts and safe deposit box contents
ท Inheritance
ท Stocks, mutual funds, bonds, and dividends
ท Uncashed cashier's checks or money orders
ท IRS refunds
ท Wages, child support payments
ท Matured or terminated insurance policies
ท Estates
ท Mineral interests and royalty payments, trust funds, and escrow accounts
ท The list goes on and on...
This money will sit in the government's hands until claimed by the rightful owner. Each person should check the unclaimed money database at www.cashunclaimed.com at least twice a year to see if they or their family members have money owed to them. This money will not sit around forever either. The state and federal governments are creating limitations on the numbers of years they will hold unclaimed funds.
If you do find money owed to you, there will be forms and instructions on claiming the funds. Oprah Winfrey stated it is estimated 8 out of 9 families in the US are owed unclaimed money! Make sure to file for your 2002 refund and check www.cashunclaimed.com to see how much unclaimed money is waiting for you.
Nicole Ackermann offers more information about unclaimed money and a free search at http://www.cashunclaimed.com
. Cash Unclaimed is the largest unclaimed property database, including all state and federal databases and was founded to assist owners in easily locating and claiming their lost funds.
Source: articleage.com
Unclaimed money in the United States is at an all time high, $25 Billion, and unclaimed tax refunds make up a large portion of that number. Approximately $2 Billion in unclaimed tax refunds is owed to 1,714,500 Americans who did not file for their return in 2002.
People owed refunds on their 2002 taxes had until April 17, 2006 to file for that tax year and claim their refund. If they do not file the $2 Billion will be forfeited to the government.
Unfortunately, unclaimed tax returns are common. There are a few reasons people do not file. Either they don't owe taxes, they didn't have to file because they earned too little, or they didn't take their earned income tax credit. Earn income tax credits for 2002 are for workers who made less than $11,060 and have no children, earned less than $29,201 and had one child, or earned no more than $33,178 and had two or more kids.
Considering the people who are eligible for the refunds are those who did not make much,, Best Mutual Fund Investment, they are probably most in need of this money. Most likely they are unaware the money is due to them or they simply don't know how to claim it.
The deadline to claim tax refunds for 2003 is April 15, 2007. People are owed billions from 2003 as well.
You can see if you are owed money if you did not file in 2003 by completing a form.
CLAIMING YOUR REFUND
The IRS will send a refund check after receiving the appropriate filing form, Form, Mutual FundBest Mutual Fund Investment, 1040 (or 1040A or 1040EZ). This form will indicate how large the refund check should be.
You can download this form at http://www.irs.gov/pub/irs-prior/f1040--2003.pdf or call toll-free (800) 829-3676 to request the form.
If you are owed money from 2003, remember you only have until April 15, 2007 to file or the money will become Uncle Sam's permanently.
If you are owed an unclaimed tax refund you may be owed other unclaimed funds. There are millions of Americans who have lost money they may be completely unaware exists.
This unclaimed money is considered "unclaimed property" and includes the following:
ท Savings and checking accounts and safe deposit box contents
ท Inheritance
ท Stocks, mutual funds, bonds, and dividends
ท Uncashed cashier's checks or money orders
ท IRS refunds
ท Wages, child support payments
ท Matured or terminated insurance policies
ท Estates
ท Mineral interests and royalty payments, trust funds, and escrow accounts
ท The list goes on and on...
This money will sit in the government's hands until claimed by the rightful owner. Each person should check the unclaimed money database at www.cashunclaimed.com at least twice a year to see if they or their family members have money owed to them. This money will not sit around forever either. The state and federal governments are creating limitations on the numbers of years they will hold unclaimed funds.
If you do find money owed to you, there will be forms and instructions on claiming the funds. Oprah Winfrey stated it is estimated 8 out of 9 families in the US are owed unclaimed money! Make sure to file for your 2002 refund and check www.cashunclaimed.com to see how much unclaimed money is waiting for you.
Nicole Ackermann offers more information about unclaimed money and a free search at http://www.cashunclaimed.com
. Cash Unclaimed is the largest unclaimed property database, including all state and federal databases and was founded to assist owners in easily locating and claiming their lost funds.
Sunday, September 20, 2009
How to Select a Mutual Fund
Author: Tony Reed
Source: articleage.com
One of the most common ways of selecting a mutual fund is to invest with the crowd in today's hot funds. Unfortunately, jumping from one winning fund to another is a recipe for disaster, Best Mutual Fund Investment, . The mutual funds that the crowd follows typically have had a hot recent performance and tend to gather all the new mutual fund sales.
Investors as a whole are primarily allocating their new investments to a small number of mutual funds and to a smaller number of mutual fund companies. Investors have invested over $400, Mutual FundBest Mutual Fund Investment, billion in the 2843 different mutual funds, but one-third of those assets are invested in only 50 of those funds and one-half of those assets are invested in the largest 100 funds.
There are benefits to following the market leaders. Larger mutual fund companies and larger funds have the ability to reduce costs and attract the best professional money managers. However, the biggest limitation is that today's better-selling mutual fund may not be tomorrow's winner. This is true for any mutual fund but it seems to plague the best seller, and the one that garners the most attention, the most often.
So buying the equity fund that was yesterday's best-seller isn't a strategy that produces excellent returns. You do not have to go fully in the opposite direction and ignore these hot funds, but you should understand their limitations and strengths. They became best-selling funds because they have merit, but you have to access that merit within your own well-diversified portfolio, and not the crowd's current investment trend.
Source: articleage.com
One of the most common ways of selecting a mutual fund is to invest with the crowd in today's hot funds. Unfortunately, jumping from one winning fund to another is a recipe for disaster, Best Mutual Fund Investment, . The mutual funds that the crowd follows typically have had a hot recent performance and tend to gather all the new mutual fund sales.
Investors as a whole are primarily allocating their new investments to a small number of mutual funds and to a smaller number of mutual fund companies. Investors have invested over $400, Mutual FundBest Mutual Fund Investment, billion in the 2843 different mutual funds, but one-third of those assets are invested in only 50 of those funds and one-half of those assets are invested in the largest 100 funds.
There are benefits to following the market leaders. Larger mutual fund companies and larger funds have the ability to reduce costs and attract the best professional money managers. However, the biggest limitation is that today's better-selling mutual fund may not be tomorrow's winner. This is true for any mutual fund but it seems to plague the best seller, and the one that garners the most attention, the most often.
So buying the equity fund that was yesterday's best-seller isn't a strategy that produces excellent returns. You do not have to go fully in the opposite direction and ignore these hot funds, but you should understand their limitations and strengths. They became best-selling funds because they have merit, but you have to access that merit within your own well-diversified portfolio, and not the crowd's current investment trend.
Saturday, September 19, 2009
Gold in Your Portfolio? Add Some Shine!
Author: Paul S. Lalley
Source: articleage.com
Add Accessories to That Cardboard Portfolio
Paul S. Lalley wordsinc@aol.com
Are you a self-directed investor? Chances are, if you're
reading this, you do administer at atomic some allocation of your asset
portfolio. Congratulations for demography the advance to a brighter
future. No one is traveling to attending afterwards your investments as
carefully as you will.
As your own 'Director of Investments', you're accustomed with the
basics of abundance architecture - the approved, Best Mutual Fund Investment, and accurate axioms of prudent
investing. You don't speculate, you don't action and you never
listen to your brother-in-law's tips. Another acceptable move. There
are gamblers and there are investors, and over the continued term,
the investors accept accurate to be the winners in the get rich
sweepstakes.
Diversify, Diversify, Diversify
One of the axiological fundamentals of bourgeois investing
is diversification, or, in added words, don't put all of your
eggs in one basket. You wouldn't put all of your backup egg into
one aggregation would you? Or, one alternate or managed fund? No, of
course not. Even the bluest of dejected dent companies accept their
ups and downs. IBM, aka, Big Blue, has awash at over $USD120 a
share. In '02, it awash at beneath $USD60. Had you put all of your
eggs in that bassinet you would accept absent a bassinet abounding of cash.
Diversification is artlessly a bulk of overextension the risk
around. You can do that affairs shares of alone companies in
different industries - a acceptable biologic company, a customer goods
behemoth, abundant manufacturing, media and so on.
Instant Diversification
Many alone investors accept angry to alternate or managed
funds, which action capricious degrees of diversification. Broad
market funds, Vanguard's Windsor armamentarium or Fidelity's Magellan
fund, are acceptable examples of popular, ample bazaar funds.
Balanced alternate funds action broadcast about-face by holding
both stocks and bonds, which usually move in adverse directions
during bazaar swings. So, if the stocks are accomplishing well, the
bond allocation of the portfolio will lag and vice-versa.
There are area funds which attenuated about-face to a single
sector of the economy. There are exchange-traded funds (ETFs)
that are congenital like mutuals but are traded like stocks.
There are indexed band funds, clutter band funds, funds that
specialize in a accurate geographic region, or even a single
country. There are CDs, government bonds, asset allocation funds
and more. In fact, there's a armamentarium or investment car for just
about any wealth-building action you could devise.
But what do all of these investment cars accept in accepted -
the stocks, funds, bonds and such? They're all cardboard assets. Oh
sure, you've adapted through funds, developing your own
portfolio, but all of your assets are still in paper. So, the
question becomes: are you adapted enough!?
Tangible vs. Cardboard Assets
The another to cardboard assets is actual assets - things you
can touch, eat, authority in your duke and even reside in! That's
right, your home - conceivably your a lot of admired asset - is a
tangible. It's an investment in which you live. In fact, real
estate affairs is generally the fast clue access to increasing
personal wealth. Donald Trump didn't plan his way to wealth, he
bought and awash absolute estate, one of the best accessories available
to the boilerplate investor.
But acreage affairs comes with its own accessory headaches.
Tenant calls at 3:00 AM, upkeep, deadbeats and added hassles
prevent the boilerplate broker from affective into absolute estate. Real
estate isn't consistently aqueous and you accept to acrylic the abuse thing!
If Pork Bellies Don't Suit You, Buy Gold
Which brings us to article advance - putting some of your
portfolio into accessories that don't deathwatch you in the average of
the night because the boiler comatose out. Now, afore you run
screaming from the allowance at the actual anticipation of affairs pork belly
futures and added 'exotic' investment vehicles, that's not what
we're talking about here. No pork bellies, cotton, wood, no
cattle, aureate or sorghum. Nobody even knows what sorghum is!
But anybody knows what gold is. And argent and platinum. These
are adored metals that accept served as currency, or the
foundation for cardboard money, back our ancestors were chasing
mastodons beyond the plains. In the anatomy of bill or ingots
(blocks or bars), you can authority these metals in your hand, bury
them in the backyard or accumulate them in a safe drop box.
Precious metals are the adored darlings a part of commodity
traders.
The archive that clue the bulk of gold over a 30-year period,
from 1968 until 1999. You can see that, 30 years ago, gold was
selling for about $USD90 the ounce. Oh, again came the big run-up
in the backward '70s and aboriginal '80s if gold acicular at abutting to
$USD700 the ounce and humans were lined up alfresco of bread and
jewelry shops, all about the world, affairs their old bracelets
for historically top prices.
But a lot of economists accede the 1980 fasten an anomaly.
Remember, this was the era of 20% home mortgages, top inflation
and a actual afraid world. What's added important in this chart
are the abstracts from 1986 forward. Notice that back that time,
gold has traded in a adequately bound range, from a top of USD$480
to about USD$290. During a lot of of that time, the trading range
was even narrower.
Portfolio Ballast
Gold, and added adored metals, accommodate balance for your
portfolio. Prices are carefully angry to aggrandizement rates, with ups
and downs added a agency of banal bazaar ambiguity rather than
the accepted disciplinarian of article prices - acceptable old accumulation and
demand. If added markets become edgy, because of apple events,
for example, abounding investors move a allocation of their portfolios
into gold and added adored metals as a barrier adjoin falling
stock prices.
Diversifying a baby allocation of your portfolio into precious
metals bigger equips you to ride out the peaks and valleys of
stock bazaar performances. It protects your cardboard assets by
providing bulk adherence over the long-term. And, it moves some
of, Mutual FundBest Mutual Fund Investment, your abundance out of cardboard and in to tangibles.
How and How Much?
For a lot of bourgeois investors, a baby amount, 1-2% of your
total portfolio, should be in accessories like gold, argent and
platinum. And, the a lot of bourgeois agency of captivation precious
metals? Coins. Added specifically, bill in baby denominations.
Through any acclaimed adored metals dealer, you can purchase
Chinese Pandas, Australian Nuggets, Gibraltar Royals, the famous
South African Krugerrands and Canadian Maples. Canadian Maples
are accessible in denominations as baby as one-tenth ounce of
pure gold, affairs at beneath than $50 anniversary at the moment.
Holding adored metals provides about-face out pf paper
into actual assets. It adds bulk adherence to your portfolio
by acting as balance during inclement times in the banal markets.
Gold prices tend to chase aggrandizement rates, confined as a hedge
against aggrandizement edge in your portfolio. And one other
important account - your investment appreciates tax free. You
aren't hit with annual taxes on dividends, absorption or capital
gains. The amount of your adored metal backing appreciates tax
free.
And, while gold, silver, platinum and added commodity
investments aren't for everyone, they can advice abounding investors in
many ways. But remember, a little bit goes a continued way so start
small, body gradually and let gold and argent put a little
shine on your portfolio.
Source: articleage.com
Add Accessories to That Cardboard Portfolio
Paul S. Lalley wordsinc@aol.com
Are you a self-directed investor? Chances are, if you're
reading this, you do administer at atomic some allocation of your asset
portfolio. Congratulations for demography the advance to a brighter
future. No one is traveling to attending afterwards your investments as
carefully as you will.
As your own 'Director of Investments', you're accustomed with the
basics of abundance architecture - the approved, Best Mutual Fund Investment, and accurate axioms of prudent
investing. You don't speculate, you don't action and you never
listen to your brother-in-law's tips. Another acceptable move. There
are gamblers and there are investors, and over the continued term,
the investors accept accurate to be the winners in the get rich
sweepstakes.
Diversify, Diversify, Diversify
One of the axiological fundamentals of bourgeois investing
is diversification, or, in added words, don't put all of your
eggs in one basket. You wouldn't put all of your backup egg into
one aggregation would you? Or, one alternate or managed fund? No, of
course not. Even the bluest of dejected dent companies accept their
ups and downs. IBM, aka, Big Blue, has awash at over $USD120 a
share. In '02, it awash at beneath $USD60. Had you put all of your
eggs in that bassinet you would accept absent a bassinet abounding of cash.
Diversification is artlessly a bulk of overextension the risk
around. You can do that affairs shares of alone companies in
different industries - a acceptable biologic company, a customer goods
behemoth, abundant manufacturing, media and so on.
Instant Diversification
Many alone investors accept angry to alternate or managed
funds, which action capricious degrees of diversification. Broad
market funds, Vanguard's Windsor armamentarium or Fidelity's Magellan
fund, are acceptable examples of popular, ample bazaar funds.
Balanced alternate funds action broadcast about-face by holding
both stocks and bonds, which usually move in adverse directions
during bazaar swings. So, if the stocks are accomplishing well, the
bond allocation of the portfolio will lag and vice-versa.
There are area funds which attenuated about-face to a single
sector of the economy. There are exchange-traded funds (ETFs)
that are congenital like mutuals but are traded like stocks.
There are indexed band funds, clutter band funds, funds that
specialize in a accurate geographic region, or even a single
country. There are CDs, government bonds, asset allocation funds
and more. In fact, there's a armamentarium or investment car for just
about any wealth-building action you could devise.
But what do all of these investment cars accept in accepted -
the stocks, funds, bonds and such? They're all cardboard assets. Oh
sure, you've adapted through funds, developing your own
portfolio, but all of your assets are still in paper. So, the
question becomes: are you adapted enough!?
Tangible vs. Cardboard Assets
The another to cardboard assets is actual assets - things you
can touch, eat, authority in your duke and even reside in! That's
right, your home - conceivably your a lot of admired asset - is a
tangible. It's an investment in which you live. In fact, real
estate affairs is generally the fast clue access to increasing
personal wealth. Donald Trump didn't plan his way to wealth, he
bought and awash absolute estate, one of the best accessories available
to the boilerplate investor.
But acreage affairs comes with its own accessory headaches.
Tenant calls at 3:00 AM, upkeep, deadbeats and added hassles
prevent the boilerplate broker from affective into absolute estate. Real
estate isn't consistently aqueous and you accept to acrylic the abuse thing!
If Pork Bellies Don't Suit You, Buy Gold
Which brings us to article advance - putting some of your
portfolio into accessories that don't deathwatch you in the average of
the night because the boiler comatose out. Now, afore you run
screaming from the allowance at the actual anticipation of affairs pork belly
futures and added 'exotic' investment vehicles, that's not what
we're talking about here. No pork bellies, cotton, wood, no
cattle, aureate or sorghum. Nobody even knows what sorghum is!
But anybody knows what gold is. And argent and platinum. These
are adored metals that accept served as currency, or the
foundation for cardboard money, back our ancestors were chasing
mastodons beyond the plains. In the anatomy of bill or ingots
(blocks or bars), you can authority these metals in your hand, bury
them in the backyard or accumulate them in a safe drop box.
Precious metals are the adored darlings a part of commodity
traders.
The archive that clue the bulk of gold over a 30-year period,
from 1968 until 1999. You can see that, 30 years ago, gold was
selling for about $USD90 the ounce. Oh, again came the big run-up
in the backward '70s and aboriginal '80s if gold acicular at abutting to
$USD700 the ounce and humans were lined up alfresco of bread and
jewelry shops, all about the world, affairs their old bracelets
for historically top prices.
But a lot of economists accede the 1980 fasten an anomaly.
Remember, this was the era of 20% home mortgages, top inflation
and a actual afraid world. What's added important in this chart
are the abstracts from 1986 forward. Notice that back that time,
gold has traded in a adequately bound range, from a top of USD$480
to about USD$290. During a lot of of that time, the trading range
was even narrower.
Portfolio Ballast
Gold, and added adored metals, accommodate balance for your
portfolio. Prices are carefully angry to aggrandizement rates, with ups
and downs added a agency of banal bazaar ambiguity rather than
the accepted disciplinarian of article prices - acceptable old accumulation and
demand. If added markets become edgy, because of apple events,
for example, abounding investors move a allocation of their portfolios
into gold and added adored metals as a barrier adjoin falling
stock prices.
Diversifying a baby allocation of your portfolio into precious
metals bigger equips you to ride out the peaks and valleys of
stock bazaar performances. It protects your cardboard assets by
providing bulk adherence over the long-term. And, it moves some
of, Mutual FundBest Mutual Fund Investment, your abundance out of cardboard and in to tangibles.
How and How Much?
For a lot of bourgeois investors, a baby amount, 1-2% of your
total portfolio, should be in accessories like gold, argent and
platinum. And, the a lot of bourgeois agency of captivation precious
metals? Coins. Added specifically, bill in baby denominations.
Through any acclaimed adored metals dealer, you can purchase
Chinese Pandas, Australian Nuggets, Gibraltar Royals, the famous
South African Krugerrands and Canadian Maples. Canadian Maples
are accessible in denominations as baby as one-tenth ounce of
pure gold, affairs at beneath than $50 anniversary at the moment.
Holding adored metals provides about-face out pf paper
into actual assets. It adds bulk adherence to your portfolio
by acting as balance during inclement times in the banal markets.
Gold prices tend to chase aggrandizement rates, confined as a hedge
against aggrandizement edge in your portfolio. And one other
important account - your investment appreciates tax free. You
aren't hit with annual taxes on dividends, absorption or capital
gains. The amount of your adored metal backing appreciates tax
free.
And, while gold, silver, platinum and added commodity
investments aren't for everyone, they can advice abounding investors in
many ways. But remember, a little bit goes a continued way so start
small, body gradually and let gold and argent put a little
shine on your portfolio.
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