Copyright 2006 Damon Clifford Ah, remember the good old days? You would get up, go to work for 30 years, and then retire. The company funded your pension and you had enough in savings to cover you for the rest of your life. That was fine, because you would typically die 5 or 7 years after retirement. But that isn’t the case any more. Many people are living 20 or 30 years after their retirement, companies are no longer offering pensions, and many people are spending more money than they make. Because of this, it is up to you to take control of your retirement and IRA funds. The stock market has historically gone up. But when it’s going down, or even sideways are you expected just to “take it”? Many would have you believe that yes; you just have to “go with the flow”. Or they will tell you that it’s the “entire” market, everyone is getting hammered. Just stick with it and everything will be fine (have they already forgotten what happened in 2000?). Brokers will tell you that your mutual fund is safe or secure because it’s spread across many different companies and many different industries. With all things relative, it is true that it is "diverse". So why does the market value go down in your mutual fund or perform lower than the market itself? They will tell you that the fund is diverse, but guess what...it’s only one asset, stocks! It's not okay to just accept it, you do have a choice. Did you know that you can invest your IRA funds in other assets beside stocks, bonds, and mutual funds? Investing in alternative assets can be a very beneficial strategy to compliment your retirement portfolio. Alternative assets include anything from real estate, oil and gas, tax liens, private notes, trust deeds, and many more. I’m not saying to sell all your stocks and mutual funds. Those are required as well to have a diverse portfolio and there are many good brokers and mutual funds out there. Some of them are truly worth their weight in gold and I would recommend them to my friends and family. However, I talk to people everyday that are just fed up with the stock market and their broker. Just like anyone else, they hate losing money. I reassure them that the market has historically gone up, and it will again go up. I don’t know how, why, or where it will go up, but history has proven itself. Even though they know that the stock market will go up, they still want to look for alternative ways to making money outside the stock market and to keep their portfolio truly diversified. So now is the time to take control of your future! Don’t let someone else dictate what you need, want, or should do. The Self Direct IRA LLC is a tool that allows you to invest your IRA funds in these non-traditional assets. You can buy and sell real estate, energy, and tax liens in which all the profits will flow back into your IRA. Many people already do this, but not in the IRA. The IRA has tax favorable treatments which can be great in accumulating wealth. The Self Directed IRA LLC is not for the passive investor, it is for the active investor that truly wants to take control of their IRA funds and their retirement. As we live longer lives, we will not be able to afford the drops in the stock market. As you get older, it becomes more and more important that your portfolio doesn’t decrease in value. Don’t rely on others to make sure you retire comfortably. Take control and truly diversify your retirement portfolio with non traditional assets for a more secure and rewarding retirement. As always, do your research and keep your portfolio diversified.
American Century Investments is collaborating with seven-time Tour de France winner Lance Armstrong to motivate investors to take a more active role in planning a secure financial future. Via a multifaceted campaign featuring Armstrong and the slogan "Put Your Lance Face On," American Century is encouraging investors to take action and approach their financial decisions with the same focus, drive and determination that helped Armstrong triumph over the challenges in his life. "Lance has used his focus, discipline and incredible determination to achieve great success in sports and to overcome personal challenges, and we think these same attributes make successful investors," said William M. Lyons, American Century president and chief executive officer. "We also believe there are great similarities in the compelling personal stories of our founder, Jim Stowers, Jr. and Lance. Both are cancer survivors who are using their success and fame to improve the lives of others.
" To assist investors in the attainment of their long-term goals, American Century - in cooperation with the Lance Armstrong Foundation - is introducing the LIVESTRONG Portfolios. Carrying the moniker that evokes the Lance Armstrong Foundation's mission of empowering people affected by cancer, this series of mutual funds simplifies investing while supporting the foundation. American Century is making an annual payment to the Lance Armstrong Foundation based on investments in the LIVESTRONG Portfolios. Investors in these portfolios bear no portion of this expense. "I'm very excited about this new relationship with American Century Investments," Armstrong said. "This is a wonderful match given my interest in improving lives through better health and fitness and American Century's commitment to financial well-being. Working with American Century, I hope to motivate and inspire investors to make every financial decision count."
: How Much Can You Get by Selling Structured Settlements? Structured settlements represent a stream of payments, often extending twenty years into the future. If you sell this stream, you cannot expect the buyer to pay you the total of these future payments. In fact, you will get much less, depending on the amounts and years involved. Let us look at how the buyer computes the amount to pay you. Money Has A Time Value If you have 10000 dollars in hand now, you could invest it in different ways. If you are a small businessperson, you could use it to improve your publicity efforts and expand your production capacity. These might result in the 10000 dollars doubling in a year's time. Or, if you are a stock investor, you could trade in stocks and probably make the 10000 dollars grow into at least 12000 dollars by the end of the year. More modestly, you could invest in an interest-paying security and earn a 5% interest paid every quarter. That could make the 10000 dollars into 10510 by end of the year.
Another possibility is to invest the money in a training program that provides you with a vocational skill in high demand. You could thus enhance your earning potential and thus earn a return on that investment. What all the above examples indicate is that money in hand now could earn returns and accumulate into a larger sum by a future date. This is called time value of money. Future Payments Are Discounted Considering the time value of money, sums received on future dates are discounted to compute their "present value", i. e., value now. This is typically done using prevailing interest rate in the market. For example, we found that 10000 dollars invested at 5% interest, paid quarterly, become 10510 dollars at the end of one year. Hence, the present value of 10510 dollars received one year from now is only 10000 dollars. Present value is always based on a rate of interest, and the "interest compounding" method used. Interest compounding means the frequency with which interest is computed and added to the principal.
In our example above, the compounding was done every quarter. Next quarter's interest would be computed on this interest-added principal amount. The future payments you receive under a structured settlement are discounted in a similar fashion. Each of the payments would be discounted based on when it is received.
Consequently, the amount you receive now, based the present values of all the different payments, would be much less than their total. Use the Cash Well It is possible that you are cashing out your structured settlement to meet unavoidable necessities, like paying off a debt or meeting medical expenses. In such a case, you have no option but to use the cash to meet these. However, if the cash out is for other purposes, try to invest it in a way that earns you a good return. For example, you could invest it in a home, in a suburb where property prices are going up. Or take up a vocational course that would enhance your employability.
If you already have a decent income from other sources, you might even consider taking a vacation to recharge yourself. Try to earn a return that would be higher than the interest you paid for cashing out. (The discounting of structured payments to present value is actually a kind of interest payment.) Select A Buyer Carefully The buyer of your structured payments should have certain qualifications. Firstly, the person (or firm) must be experienced in the field. Cashing out structured settlements involves several legal formalities. Unless the buyer is experienced enough to handle all the formalities correctly, you might find yourself in trouble. If a legally binding assignment is not created, the original payer might refuse to pay your buyer.
Secondly, select a buyer who deals up front with you, explaining what to expect. Otherwise, you might come to have undue expectations and get into unnecessary conflict with the buyer. Finally, select a firm that believes in ethical practices. Unethical firms might tell you one thing and do something else. They might also not give you a fair deal. For more read at http:// structuredsettlements. bz
Having six figures to play with means you are doing something right, so pat yourself on the back. Picking your strategy for this size of investment will involve choosing an aggressive strategy over one of steady growth; and that decision depends on how badly you would feel if you lost all of that money over night. Any of the other strategies provided on my website will be sure to give you a good return as well, so here are a couple of general tips: First, make sure you divide your money among different investments. You need to remember that FDIC insurance only protects each account up to $100,000, so never have more than that amount in any one bank. Second, you need to diversify your investments. This amount of money is easily split-up and diversified into many different investments, and you should certainly do this. Check out my explanation of diversification to familiarize yourself with what aspects to look at. Third, consider employing a professional money manager if you don’t have time to manage it yourself. The worst thing you can do is make investments and not keep track of them. In theory, if you have made this kind of money, you are better off doing what ever it is you do to make money, and letting someone else help manage your money. This doesn’t mean you don’t stay involved, if anything you should be speaking with your manager weekly, if not daily to discuss strategy and performance. Think of them as your employee, not your guru. Fourth and finally, have a lawyer review any contract for any kind of investment. Make sure they sign off that everything is normal and there are no special cases that could get you in trouble. This is another situation where you should stick to your skills in making and saving money, and let a professionally trained person handle specific areas of protection and management.
America will continue to be the land of opportunity and regardless of what course our economy takes over the next few years, it's likely that investment opportunities will be numerous and attractive. Companies driven by the ever increasing advancements in technology will emerge, while older companies, out of necessity, will come forth with new products. One industry or another will enjoy a boom period relative to the rest. And, of course there will be casualties - there always is. For the astute investor there's always opportunities to buy investments (stocks, bonds, commodities, mutual funds, etc.) before "the crowd" finds out and it's already over-valued or to buy a so-called "blue chip" temporarily out of favor, at a depressed price. In many instances, the differences between great rewards and huge losses are subtle. However, before you can embark anew or jump back into the game you must ask yourself several questions wrapped into one. They can be lonely questions because only you can answer them. It involves not only how much money you feel comfortable investing but it also takes into account the level of risk you are comfortable with. First, does your financial condition permit you to invest; second, can you assume the current risk implicit in the markets; and third, is the market a safe place for you to be. Let's take them one at a time. Your Financial Position One point should be made clear at the outset: you don't have to be wealthy to invest. In the past, insiders have trumped the belief that stock ownership is a rich man's game but with approximately 50% of american households currently in the market that is no longer the case. The goals of the small investor is not of enlarging their fortune because clearly they currently don't have one but to make available some money, however small, for the purpose of growing it over time. Regardless of your income level, investment is possible if three conditions are met: 1. If you are relatively assured of a steady income. Of course, these days nothing is set in stone. 2. If you are meeting your current household expenses and obligations. 3. If you have cash reserves with which to meet unforeseen emergencies. You have to decide how much but I would suggest enough to cover 3 months of living expenses. Of course, these conditions are simply safeguards due to the inescapable fact that stock prices fluctuate and that your judgment of when to buy, when to sell and how long to hold should never be dictated by outside circumstances. Investment should be undertaken only with funds you can honestly and legitimately earmarked as discretionary. A reserve also enables you to pick and choose. Whether you have a few hundred or a few thousand lying around should not automatically mean that it's time to invest it. What's the hurry? As the professionals say, "The market is always there." If the trend isn't to your liking or price's are over-valued a reserve allows you the luxury of waiting for more favorable conditions. Finally, a reserve permits investment over a period of time rather than all at once. Some "experts" feel you should back what seems to be a good situation with all the investment funds at your command. Others will warn against greed and advise partial investment to spread the risk. This article is not the place to discuss the merits of either philosphy. The point is to give yourself the flexibility of moving whatever way "your" judgment dictates. Your Personal Situation Your age, health, the number of dependents you support, the kind of job you have, or the type of goals you have set for yourself are just a few of the possible factors that will weigh into your investment decisions. Unfortunately, there is no rule, no prescription, no secret formula to follow. The story is told of two salesmen who met at the airport. Their conversation went something like this: "How's business?" asked the first. "Oh, very good," said the second, "and yours?" "Fine, fine," said the first. "I got orders for a thousand gross last week. I sell buttons." "Really," said the second. "I've had one order in the last three years." "and you call that good?" said the first. "Actually yes," said the second, "I sell suspension bridges." Like the salesmen, the investor must have a clear notion of his goals and expectations and they must realize what is normal and acceptable to someone else might not be what is normal or acceptable to them. What Kind of Person You Are Consideration of your investment goals brings up the final point of personal evaluation - You. Very simply because your goals are a reflection of your temperament and personality. You must go beyond your goals and pin down the traits and characteristics they stem from. Are your goals realistic? How do you regard money? How do you handle it? Are you easy-come, easy-go or do you count pennies? Are decisions involving money difficult for you to make? Are you on top of your budget or always running to keep up? These are generalized questions and there are no absolute answers. Speculators should stay out of the market, but on the other hand, being a tight-wad is no virtue either. An overly cautious or conservative temperament may not be well-suited to react to the ever changing market conditions and thus miss out on opportunities to sell or buy. The value in knowing thyself and how you will likely respond in a variety of financial situations is vital. Any personality type can count profits but it requires a certain rigor, a certain fortitude to face up to the adverse situations that investing unveils. If you have a character flaw, losing money will quickly expose it. In a now famous pronouncement, the elder Morgan stared at a questioner who wanted to know what stock prices would do and he said, "They will fluctuate." The statement is as pertinent today as it was then. As a result, the question you must ask becomes, "How will I respond when they do?" If you "Know Thyself" you'll have the answer. This article may be reproduced only in its entirety.
Many people are already starting to pay attention to the newest online trend: E-gold investing. E-gold investing is a all about a system that allows you to profit from the money that is being traded everyday on the internet. What you're doing when you are trading e-gold (or e-currencies) is that you are providing the backup for internet money. Let me go back a bit. What exactly do I mean by "backup for internet money"? There is a cashflow of all of the money that is being moved throughout the internet every day. However, this money has to have, for every dollar that is being backed up, a physical backup of that dollar must exist. This is a very superficial explanation about how the dxgold system works, but to be honest, to profit from it, you don't have to understand exactly how it works to profit from it. If I were to put the e-gold training courses into a metaphor I would say it's very much like driving a car. You don't need to know how it works in order to use it properly. What you do need to know is the egold exchange process and every step of the way. This may sound complex, but once you get to know it, it becomes a daily routine that takes about five minutes just to check up on. Investing in e-gold is something that I could describe as a great investing strategy, if you are investing in the long run. It isn't as fast as a rising stock in wall street, it isn't something that will double your profits in a couple of days, but it is something you can expect to generate a good income from. And the important keyword in that past sentence would be to Expect, because this is a safe long term strategy that is guaranteed to make a profit for you. This is why I personally think it is plain silly not to learn this currency trading system. You even know how much money you will make each day in advance. For some it may be tough, but saving a couple of hundred dollars and investing in e-gold can be a very wise decision. As many people have experienced already, it can even turn into a "hands off" second income without the 8 to 5 job. E-gold is all about discipline. Is about the discipline of having your money work for you and letting it grow, without getting an urge of a shopping spree and taking your money out of your account. If you think you can wait for a few months and are interested in getting a second income, then the e-gold system could be a good fit for you.
These days, you can’t retire without using the returns from investments. You can’t count on your social security checks to cover your expenses when you retire. It’s barely enough for people who are receiving it now to have food, shelter and utilities. That doesn’t account for any care you may need or in the even that you need to take advantage of such funds much earlier in life. It is important to have your own financial plan. There are many kinds of investments you can make that will make your life much easier down the road. The following are brief descriptions for beginning investors to familiarize themselves with different kinds of investment options: 401K Plans The easiest and most popular kind of investment is a 401K plan. This is due to the fact that most jobs offer this savings program where the money can be automatically deducted from your payroll check and you never realize it is missing. Life Insurance Life Insurance policies are another kind of investment that is fairly popular. It is a way to ensure income for your family when you die. It allows you a sense of security and provides a valuable tax deduction. Stocks Stocks are a unique kind of investment because they allow you to take partial ownership in a company. Because of this, the returns are potentially bigger and they have a history of being a wise way to invest your money. Bonds A bond is basically a promise note from the government or a private company. You agree to give them a set amount of money as a loan and they keep it for a set number of years with a predetermined amount of interest. This is typically a safe bet and one that is a good investment for a first time investor because there is little risk of losing your money. Mutual Funds Mutual funds are a kind of investment that are based on the gains and losses of a shareholder. Basically one person manages the money of several or many investors and invests in a list of various stocks to lessen the effect of any losses that may occur. Money Market Funds A good short-term investment is a Money Market Fund. With this kind of investment you can earn interest as an independent shareholder. Annuities If you are interested in tax-deferred income, then annuities may be the right kind of investment for you. This is an agreement between you and the insurer. It works to produce income for you and protect your earning potential. Brokered Certificates of Deposit (CDs) CDs are a kind of investment where you deposit money for a set amount of time. The good thing about CDs is that you can take the money out at any time without paying a penalty fee. We all know life isn’t predictable, so this is a nice feature to have in your option. Real Estate Real Estate is a tangible kind of investment. It includes your land and anything permanently attached to your piece of property. This may include your home, rental properties, your company or empty pieces of land. Real estate is typically a smart and can make you a lot of money over time
Have you ever wondered how much money you would need to start investing? If you’ve ever thought that you did not have enough money to begin with investing, I’ve got some good news for you. My name is Sam Chim and I am the owner of Invest-Tips. com, the investment information site. Even though I’ve been investing for several years now, I still remember a time where I did not have a lot of money to start with. Today, I’m going to show you a method which I used to begin my investing “career” with a small amount of capital. That small amount is just $100 or approximately Ј70 for those in the UK. To achieve the highest returns available for our $100 we need to look for investments. We need to find a way in which can make this $100 work for us so that we can grow it to a much larger amount. We also need to have a method of evaluating and assessing risk to our capital. I’ve found that the best way to start investing with small amounts of capital is not with real estate or stocks, it is with HYIPs (High Yield Investments Programs). These are online investments that anyone can participate and you are able to choose who to invest with and the amount you want to invest. Typically, these High Yield Investments offer between 20% - 40% interest per month. This means your $100 could turn into $140 in one month. Then after that it could grow to thousands if you kept re-investing. However, one of the things that many “guru’s” WILL NOT tell you is – “it’s not as easy as it seems”. High Yield Investments require some level of research and money management. You will need to source some reliable investments (there are a lot of scams around) and also be able to manage your capital effectively to maximise your earnings and reduce risk (i. e. Are you going to diversify your investments or not?). There is a lot to learn about this type of investment. Hopefully, after reading this, you will dig deeper and be able to start investing successfully with just $100. The opportunity to make money with HYIPs is wide open to anyone who wishes to take it. Are you going to rely on working for someone else for income or Are You Ready To Make Income On Your Own?
Angel investors are one of the financing options that you can look into when you decide to start your own business venture. Business start-up is not only a crucial process it also requires a lot of time, effort, and of course money. If you do not have the money needed to fund your business, then how can you start your operation? That is why, when you start planning your business venture, you have to carefully consider your capital. And if you do not have a large amount to start with, you can rely on angel investors to provide you capital.
But before looking for one, you have to make sure that you understand the angel investors definition. Angel investors are high-net worth and accredited individuals that give financial aid to future business owners who are in need of start-up money. They are well-educated, have valuable experience in business, and possess a large sum of money which they invest in exchange for ownership equity. They are usually the best financing option during the early stage of the business. Nowadays, lots of individuals choose to become angel investors. And so when you start your search for the right angel investor, it is important that you know the angel investors definition of each type.
Corporate Angel Investors Definition Corporate angels are former business executives who have retired early or have been replaced. Although investment is one of their goals, they look for personal opportunity at the same time. So, usually they want to acquire a position in the business as part of the deal. But this should be thoroughly discussed since some corporate angels can be too controlling. Entrepreneurial Angel Investors Definition Entrepreneurial angels are successful business owners themselves. Unlike the corporate angels, they can take bigger risks and provide larger amount of money since they have a steady income source. Usually, these businessmen want to assist future business owners to have a successful start-up and eventually a competitive business. The major advantage of these angels is that they are less demanding and they allow the business owner to grow in his own, with them only as financial back-up. Enthusiast Angel Investors Definition Enthusiast angels are retirees who simply enjoy getting involved in different business deals and transactions. They are mostly above 65 years old and are already wealthy even before they start their own businesses. Just like the entrepreneurial angels, they also don’t want to play any role in business management. Micromanagement Angel Investors Definition Micromanagement angels are individuals who have exerted their own efforts in order to become wealthy. Because of their experience, they believe that they know exactly how a business should be managed. Although they are not active participants in management, they can be very visible when the management of the business starts to have problems and is not doing well. Professional Angel Investors Definition Professional angels are lawyers, accountants, and doctors who want to make investments in companies that offer a service or product with which they have little experience. Their main goal of investing is to be hired by the business at the same time as consultant in their area of expertise. These are the different types of angel investors that you might encounter when you start looking for the right angel investor for your business. By keeping these angel investors definitions in mind, you can easily decide which one is appropriate for you.
Copyright 2006 Emma Snow Everyone knows the importance of setting aside savings. Whether it's for retirement, emergency funds or saving for the family vacation, it is something that we should all be doing. Yet sometimes this isn't as easy as we would like and at the end of the month our money is spent without setting anything aside. The financial services industry has become aware of this and has created tools to help us save. If you have difficulty saving, these tools may be your best way to ensure you have savings for whatever comes. Direct Deposit Of all the tools to help you save, direct deposit has been around the longest. Direct deposit is when your employer deposits your paycheck directly to your checking, savings, retirement or brokerage accounts. Many times an employer can deposit your check to more than one account. If this is the case, to help you with your savings, you could split your check up by how it will be used. Spending money could go into your checking account, investment money into your brokerage account, retirement into an IRA or 401(k) and a percentage into a savings account. This way you don't have to actually move the money into savings, investments or retirement yourself, it is done for you automatically at the beginning of the month. Setting up direct deposit is usually just a matter of completing a form at your workplace. For many people, money that goes directly into savings is forgotten and therefore less easily spent. Automatic Investments When direct deposit isn't an option or you just want another choice, automatic investments is a good way to help you save. With this, your paycheck goes into one account and then you setup times during the month when money is taken from this main account and put into other accounts such as IRA's, investment accounts and/or savings accounts. This is something you schedule in advance and takes place on a monthly basis. This way, you don't have to remind yourself to do it. This is very similar to direct deposit but where your bank or financial institution is doing the work for you instead of your employer. This could also be used if your direct deposit limits you to one account or only allows you to split up your check by percentages. If this is the case, you can direct deposit your paycheck into the account where you have setup automatic investments and then have dollar amounts go into different savings accounts. This is helpful for depositing into accounts like IRA's where you can only invest a certain dollar amount each year and you don't want to go over your limit. Tax Return Money When tax season comes, consider saving your tax returns instead of spending them. This is an especially good idea for those who have a difficult time saving on their own. You can deposit your tax return directly into a savings account and start yourself a little nest egg. If you worry about your ability to keep it in that savings account, consider putting a lot of it into an account where you cannot get it out easily, such as an IRA, a CD or an investment with redemption fees when you take it out too quickly. If you don't have any issues with keeping your savings intact, instead of determining where your tax return money should go, you should instead determine why it is not coming to you in the first place. The IRS website has a calculator that will estimate your federal taxes and tell you what exemptions are appropriate so you can break even on your taxes each year. Doing this will give you more money each paycheck which enables you to start saving immediately instead of waiting for tax time. This also allows you to earn interest on that money for a longer period of time. Investment/Savings Credit Cards Credit cards that actually help you save money? For people who use a credit card for convenience and rewards and not for the ability to carry a balance, this is a great opportunity. Recently, a few cards have come to the market that offer investment or savings points when you make purchases. Fidelity Investments, Motley Fool and American Express are some of the first companies to offer these types of Credit Cards. The way they work is for every dollar in purchases, you earn points to put toward investments or savings that you choose. Once there are enough points to reach a threshold (determined by the card), the points are redeemed as cash and deposited to an investment account, retirement account or savings account that you have designated ahead of time. Workplace Savings Plans Many employers now offer workplace savings plans. These come in many shapes and forms, not just 401(k)'s but 403(b)'s, 457 plans, Roth 401(k) plans, etc. To contribute to a workplace savings plan, money has to come from your paycheck since they are employer sponsored plans. Your employer asks you to indicate what percentage of your paycheck should be deposited to your retirement savings account. Once this is done, that percentage will come out of your paycheck each time and go directly into your retirement account. It is difficult and sometimes impossible to retrieve money from your retirement account while working for that employer so this is a great savings tool for those who have a hard time setting aside money. Workplace savings also is good as it lowers your overall tax burden for the year, giving you even more savings. Automatic Increases The last way to help increase your savings is to use an automatic increase program on your workplace savings plan. Not all employers offer this; contact your human resources or benefits department to see if it is an option. These programs facilitate saving for retirement by automatically increasing your retirement savings each year. You generally choose what percent you want to increase the savings by as well as the date. When the chosen date comes, a larger percentage of your paycheck starts going into your workplace savings account. You can have it take effect right after annual salary increases each year making it less noticeable in your take-home pay. If saving money isn't one of your stronger qualities, these savings programs can help. Savings is the best way to avoid financial ruin. Having money set aside for an emergency, job loss, car and home repairs, or any unexpected expenses prevents you from having to take loans to cover these problems. In addition to liquid savings, retirement savings and college savings are long-term goals that often get overlooked or procrastinated. Taking advantage of one or several options from above is the first step in creating a healthy financial future for you and your family.
Why You Should Invest Investing has become increasingly important over the years, as the future of social security benefits becomes unknown. People want to insure their futures, and they know that if they are depending on Social Security benefits, and in some cases retirement plans, that they may be in for a rude awakening when they no longer have the ability to earn a steady income. Investing is the answer to the unknowns of the future. You may have been saving money in a low interest savings account over the years. Now, you want to see that money grow at a faster pace. Perhaps you’ve inherited money or realized some other type of windfall, and you need a way to make that money grow. Again, investing is the answer. Investing is also a way of attaining the things that you want, such as a new home, a college education for your children, or expensive ‘toys.’ Of course, your financial goals will determine what type of investing you do. If you want or need to make a lot of money fast, you would be more interested in higher risk investing, which will give you a larger return in a shorter amount of time. If you are saving for something in the far off future, such as retirement, you would want to make safer investments that grow over a longer period of time. The overall purpose in investing is to create wealth and security, over a period of time. It is important to remember that you will not always be able to earn an income… you will eventually want to retire. You also cannot count on the social security system to do what you expect it to do. As we have seen with Enron, you also cannot necessarily depend on your company’s retirement plan either. So, again, investing is the key to insuring your own financial future, but you must make smart investments! [Insert Your Resource Box Here] (Words: 316)
Current scams that are in vogue in UK include companies that are: • Persuading the investors to invest in fraudulent schemes; • advertising "buy to let" properties in poor condition and make claims about unrealistic rental returns; • offering the chance to make a profit from buying up debts; • Targeting the low salaried people about to retire. Apart from the above there are quite a few practices that are wrongly termed as scams. One such business is the land investment business. These companies persuade the investors to buy greenbelt land in anticipation of the huge profit they are expected to rake in the future. UK has already heard of Kent Land Scams, Sussex Land Scams & primarily London Land Scams but can this be termed as a scam? Who are the scamsters? Land banking companies? Definitely not as they are using the statistics and facts published by the Government and the other research organizations such as the RICS as a basis of the promise that they give to the investors. So then who are the scamsters? It is the rumor spreaders who are the actual scamsters. There has never been an instance in the history that an investor is victimized by a land banking firm. The Government never considers the business as fraudulent one. Then why is it that a small group of people, with half baked knowledge on the demographic conditions of UK, being allowed to spread wrong information to the customers. This actually leads to a question as who are the victims. The victims actually are not the investors but the companies which are into the business of selling land and property to the prospective investors. The investors should be aware of the fact and should take very calculated and informed step before believing the people who are the actual scamsters and they should take a prudent decision as to what should be done with their hard earned money.
Many people are aware of the strategy of developer extended loans to purchase rental real estate says Beth Collingz, Overseas Sales Director of PLC International, lead marketing partners for Pacific Concord Properties Inc's Lancaster Brand of Condotels in the Philippines. You make a very small down payment with the majority of the purchase price payable over as long a period the developer extends at zero interest. In Apart-Hotels or Condotels, the rental income goes a long way to cover the cost of servicing and managing the unit and in the long term after paying off the purchase price, can give a ROI through rentals of up to 16% per annum. Regardless of the possible bumps on the road to greater wealth, condotel investments are at least an easily-understood investment tool that most of us can handle added Collingz Collingz expects rental income to rise 15 percent in the coming 12 months after gains of as much as 30 percent since January 2006, when Pacific Concord Properties Inc are set to launch Condo Hotel operations of their flagship Lancaster Suites located in the Ortigas business district in Metro Manila. UK Private equity units of banks and investment clubs, driven in part by the current strength of the Pound Sterling in international trading, are being attracted by returns in the Philippines as much as double those in the United States and Europe, are purchasing significant blocks of real estate for investment trusts for Asian commercial property. There are large amounts of capital now chasing increasingly limited investment-grade real-estate opportunities in Asia, said Collingz. We are currently in the closing stages of packaging the investment of some $20M in private-equity real estate funds for new Lancaster Brand Apart-Hotel or Condotel developments in Metro Manila and Cebu, on the strength of expected rental returns which will continue to grow at a rapid pace. With funds raised for commercial property deals in Asia having doubled in each of the past five years, Collingz see the market value of Condotel investments in the Philippines reaching new heights in 2007/8 as more developments come on line. Rising demand for homes, hotels, short and medium term rental accommodation, offices and shopping malls in the Philippines, home to a population of almost 80 million and with a significant number of the more than 10 million returning overseas Filipino ‘Baby Boomers’, is fueling rents. Residential rents in Metro Manila rose 26 percent in the three months to March 2007, their highest quarter-on-quarter increase in more than a decade, as more and more IT companies set up shop in the Philippines. Companies like Texas Instruments are investing $1B in expanded operations in the Philippines. High-end rents rose some 13 percent from a year earlier, said Collingz. Collingz projects that Rents in the region are set to effectively jump up by at least 8.7 percent per annum over the next five years, compared with 3.3 percent in the United States and 3.7 percent in Europe. Yields from 8 percent to as high as 14-16 percent ROI on rental income property contrast with the 4 percent to 5 percent that private equity firms get in the United States and Europe. People are in general looking to shift fund flows relatively towards Asia," Collingz said. It already has had a profound impact in markets where there's a lot of this money chasing the same assets. In Singapore, the region's second - biggest market after Japan, investments by private real estate funds accounted for seven of the 19 office blocks, worth 6.7 billion dollars, sold since September 2005. REITs bought six. A Goldman Sachs fund paid 690 million dollars for two buildings last November that house the headquarters of DBS Group Holdings. In Hong Kong, property funds of Morgan Stanley and Macquarie Bank paid a total of 7.9 billion Hong Kong dollars, or $1.02 billion, for four office blocks from March to May, according a recent article published by CB Richard Ellis. As the Singapore, Japan and Hong Kong markets become saturated, the Philippines will be the next real estate market to attract substantial overseas investments. Lower prices and retirees’ spending money are also directing foreign attention to residential condominium hotels in the Philippines, which in turn is driving up more construction. A lot of this interest is being driven by the relatively cheap market prices here compared to Europe – especially UK housing prices – and the easy payment options available for condominium hotel developments Collingz said. The buyers gain rental incomes that on today’s purchase prices give a projected ROI of some 8 percent to 14-16 percent depending on the mode of payment for the unit she said. Beth Collingz PLC International Marketing Networks
: Speculators get a bad rap. Speculation in stocks, currecies and commodities futures is a necessary part of our economy. Many people have the idea that there is no added value in people "gambling" on commodities prices, for example. The truth is, most people just don't understand of the role of speculators and speculation. The Truth About 'Speculation' Speculative trading is crucial to a modern economy. Let's use corn for an example.
A farmer can plant his corn, and then see the price drop so low by harvest time that he loses his investment, and possibly goes bankrupt. How can he prevent this? By selling some of his future production now, at a set price, he can plan ahead safely. The contracts he creates and sells will go up and down with the price of corn, but the risk is all in the hands of the speculators who buy them. They profit by re-selling them if the price goes up, and they lose money if it goes down. Our farmer, though, has his price, and can plan his business now. Now, on the other side, a cereal company needs predictability in the prices of their basic commodities, in order to plan future production.
They can't hire new employees and buy new equipment, only to see the price of corn triple, making consumers unwilling to buy their expensive corn flakes. Buy a contract for future delivery at a set price, and they can plan, and again, the speculators take on the risk. They sell a contract, planning to buy the corn necessary for delivery. They make money if the price drops, and lose if it goes up, because they have to deliver at a set price. Not just farmers, but all industries based on basic commodities would go through terrible swings in fortune if it weren't for these "gamblers," who take on the risk. Without them, there would be more bankruptcies, and more dramatic swings in consumer prices. In all markets with speculation, speculators provide the liquidity and ability to plan ahead that is needed. New Ideas In Speculation Maybe we need more speculation, not less. Wouldn't it be nice if businesses and even individuals could guarantee that gas for their cars would be near the same price next year?
Speculators could provide that guarantee, and some businesses would love that kind of predictability. You buy a contract, for example, to get your next 1000 gallons of gas at $2.20 per gallon. You put down a small deposit, and pay as you go, but you know that the next 1000 gallons will be $2,200, guaranteed. A speculators role is to back the other side of the contract (to sell it). He is the one guaranteeing your price, so if the average price for the next 1000 gallons is $1.80, you still pay $2,200 in the end, but his cost is $1,800, so he makes $400 on the contract. Now if the price averages $3.30, he pays $3,300. You still pay $2,200, so he gambled and lost $1,100. Speculators, like most gamblers, will probably bet on almost anything. We need to find more ways for them to take on our risks. Just imagine the many contracts could be invented, based on speculation.
"Vacant - Boarded Up Houses" are my FAVORITE DEALS for quick turnaround flips. You're talking about someone that cares so little about the property that they've left it to decay. The owner of that house should be begging you to take their junk house off of their hands. Except, the only problem is, the owner has completely vanished without a trace...Or so it may appear! In these times of computers and the Internet, It's a very rare occasion when someone can't be tracked down. Every homeowner leaves little clues, and it's your job to piece them together. If you want to be successful at this, you need to have a system and you need to follow it exactly as I'm describing it to you. If you only do one or two things, you may get lucky...but if you do them all, you'll almost always get your "Mark". I suggest you print up the following Ten Step Plan and follow the process every time you track down a seller.
The Ten Step Plan To Finding Homeowners "Bloodhound Style" 1. Place A Flier in the door stating that you buy houses in any condition & stick one of your "I Buy Houses" bandit signs right in the front yard. 2. Ask The Neighbors....Not Just immediate neighbors. I always go Four houses out on each side and across the street. You should be able to get bits and pieces of information from each person. Don't be afraid to ask questions..Leave your card and offer money (if you buy the property) for any information that they may "remember" after you leave...Ask & You Shall Receive! 3. I go to Whitepages. com or you could call 411 - You'll find about half of them right here! 4. Visit your local Tax Assessor's Office. Check the "Mailing Address" to see where the tax statements are headed. ALSO, I ALWAYS run that person's name to see if they own other property in hopes that there are more abandoned junkers that we can cut a deal on. Sometimes a new mailing address will be on other properties as well. 5. Run the name through the clerks office and look at all the recorded docs and court indexes for that person. You can often get a good picture of what's going on, and sometimes even some other addresses or addresses of relatives, etc. This is where your detective skills kick in. You want to scour through and see if you can find anything...divorce filings, new loans, liens, Law Suits. If their salary is being garnished, the employer's name and address will be their for you. . Many times you'll see that the individual is in jail or just got out of jail. You can usually find their attorney or a new address off of the arrest info. If they're in jail, you can call the prison and set up a visit with the inmate. 6. Send out a letter and put "Address Service Requested" on the envelope. Make sure that the address is hand written on the envelope and regular stamp is used (NO BULK RATE) 7. Hire a Skip Tracer. usually use "FINDTHESELLER. COM" because they're pretty inexpensive and they're pretty good at finding people that I can't with very limited info. It usually takes 24 - 48 hours to get a match but you can be trying the other methods while you're waiting. 8. If it's a unique last name, I'll start calling everyone in the phone book within the area...hoping to get a relative. I've been surprisingly successful with this "Shot Gun" approach. If the name is something like, "Johnson" or "Jones"...I wouldn't even attempt it..:) 9. Voter Registry - You can get updated addresses 10. Place the lead in your file in case another clue arises in the near future (Property goes into foreclosure, neighbors call you, someone calls on the sign, etc)
Determine Your Risk Tolerance Each individual has a risk tolerance that should not be ignored. Any good stock broker or financial planner knows this, and they should make the effort to help you determine what your risk tolerance is. Then, they should work with you to find investments that do not exceed your risk tolerance. Determining one’s risk tolerance involves several different things. First, you need to know how much money you have to invest, and what your investment and financial goals are. For instance, if you plan to retire in ten years, and you’ve not saved a single penny towards that end, you need to have a high risk tolerance – because you will need to do some aggressive – risky – investing in order to reach your financial goal. On the other side of the coin, if you are in your early twenties and you want to start investing for your retirement, your risk tolerance will be low. You can afford to watch your money grow slowly over time. Realize of course, that your need for a high risk tolerance or your need for a low risk tolerance really has no bearing on how you feel about risk. Again, there is a lot in determining your tolerance. For instance, if you invested in the stock market and you watched the movement of that stock daily and saw that it was dropping slightly, what would you do? Would you sell out or would you let your money ride? If you have a low tolerance for risk, you would want to sell out… if you have a high tolerance, you would let your money ride and see what happens. This is not based on what your financial goals are. This tolerance is based on how you feel about your money! Again, a good financial planner or stock broker should help you determine the level of risk that you are comfortable with, and help you choose your investments accordingly. Your risk tolerance should be based on what your financial goals are and how you feel about the possibility of losing your money. It’s all tied in together. [Insert Your Resource Box Here] (Words: 349)
Between paying a stream of monthly bills, buying groceries, filling up the gas tank and managing countless other daily expenses, it's becoming more and more difficult for the average American to save for the big things: a college education, a new home, retirement. Investing is one of the best ways to build up a comfortable financial cushion over time, but it takes diligence to allocate money for an investment account on a regular basis. Fortunately, there is an easy way to tuck away a few dollars, without even thinking about it, every time you shop. To help people become more disciplined investors, Vesdia Corp. offers an easy savings program called Stockback. Through the program, shoppers earn unlimited rebates on the everyday items they buy from a network of more than 500 participating merchants, including 1-800-Flowers, Eddie Bauer, Hickory Farms, The Sharper Image, Media Play, Illuminations, Barnes & Noble and Sam Goody. People participating in the program can choose to have their rebates sent to them via check or deposited directly into an IRA, mutual fund, money-market account or virtually any other savings vehicle they choose. In the past year, Vesdia also rolled out a Stockback Loyalty Rewards Card that lets cardholders earn rebates of up to 2 percent every time they use the card -- no matter where they shop. Using the card at Stockback's participating merchants earns additional rebates of up to 7 percent.
And to make it even easier for its members to invest, Stockback recently formed a partnership with ShareBuilder, an online investing company. Through ShareBuilder, investors can conveniently purchase stock for a low transaction fee with no minimum investment requirements. ShareBuilder Securities is an independent broker-dealer and member NASD/SIPC. Simply choose the dollar amount you want to invest in particular stocks. ShareBuilder will then buy the stocks at current market prices and let you know how many shares you've purchased. Stockback members earn an additional 2 percent when using the Stockback Loyalty Rewards Card to pay for ShareBuilder Investing Program monthly subscription fees. Anyone can join the Stockback program for free by completing an online membership application.
Once you submit your application, you can begin shopping and earning immediately.
Spend Wisely to Save Money Have you ever noticed that the things you buy every week at the grocery and hardware stores go up a few cents between shopping trips? Not by much…just by a little each week but they continue to creep up and up. All it takes for the price to jump up by a lot is a little hiccup in the world wide market, note the price of gasoline as it relates to world affairs. There is a way that we can keep these price increases from impacting our personal finances so much and that is by buying in quantity and finding the best possible prices for the things we use and will continue to use everyday… things that will keep just as well on the shelves in our homes as it does on the shelves at the grocery store or hardware store. For instance, dog food and cat food costs about 10% less when bought by the case than it does when bought at the single can price and if you wait for close out prices you save a lot more than that. Set aside some space in your home and make a list of things that you use regularly which will not spoil. Any grain or grain products will need to be stored in airtight containers that rats can’t get into so keep that in mind. Then set out to find the best prices you can get on quantity purchases of such things as bathroom items and dry and canned food. You will be surprised at how much you can save by buying a twenty pound bag of rice as opposed to a one pound bag but don’t forget that it must be kept in a rat proof container. You can buy some clothing items such as men’s socks and underwear because those styles don’t change, avoid buying children’s and women’s clothing, those styles change and sizes change too drastically. Try to acquire and keep a two year supply of these items and you can save hundreds of dollars. [Insert Your Resource Box Here] (Words: 338)
Now is the Time to Invest in something Real to Assure a Good Life Tomorrow. Gold surpasses $500. an ounce after a long slumber and it is still one of the worlds greatest bargains. Every day it is becoming more evident that stocks, bonds, and property in America and most of the Anglo-Saxon world are propped up on borrowed money and borrowed time. In the last half of 2005 alone, U. S. households spent well over $500 billion more than their after-tax earnings. How is this possible? By borrowing of course. About half of that money came from “equity extraction.
” The present home owner generation is living off the perceived increase value of their houses. These poor householders are starting to get a clue. They thought they really could get rich by buying and selling each other’s houses at inflated prices and then borrowing against it. Well, putting on the dog and out doing the Jones' was fun while it lasted. However, if you can still find a greater fool, now is the time to sell and find a nice inexpensive rental accommodation, or buy one of the rapidly growing heavily depreciated repos now on the market, and invest the rest in gold. You need to protect yourself NOW from the biggest one year loss of wealth in the history of the world. Does this statement get your attention? Many western economies have participated in this gigantic fraud of escalating house evaluations as evidence of economic growth, relying on greed and bogus money supply to stoke the fires of the greater fool theory and thus give the illusion of prosperity.
As a result house sticker prices kept going up and up in most cities, while in reality the true value has actually been going down. Skeptical huh. What is true value you say? Remember, world economies have been off the gold standard now for over 35 years, ever since tricky Dick Nixon unpegged the US dollar from gold as a means of surreptitiously stimulating a sagging economy of the time. Adhering to the Gold Standard, the medium of exchange backed by gold, forced politicians and bankers to be accountable. Money today is not based on anything tangible or of intrinsic value. It has only a perceived fungible value at whatever level skittish traders and speculators say it is. Politicians and central bankers since Nixon have been free to print fiat money (a piece of paper with numbers on it) at their whim without control or restraint to keep their game afoot. These currencies have since been played off each other as in a worldly game of monopoly. One clue of impending doom is the fact that every fool with greed in his heart can now trade currencies online. As the unmasking of the great deception accelerates, countries with manageable debt and natural resources will see their currencies decline slower in relation to the US dollar, but all currencies will decline in relation to, you guessed it, Gold. Like any expanding bubble, there comes a point where it can expand no more, and the subsequent resizing is shockingly fast. These is no new economic model in play that now guarantees perpetual prosperity or even status quo, despite what vested interests and their spin doctors would have you believe. When push comes to shove, paper and electronic blips won't cut it. As the saying goes, BS walks, and the age old measure of real value called Gold, will be what talks. If you played this oneupmanship real estate game with your friends and countrymen, your house is worth far less than you know. In fact, your house is losing value daily as you may now realize. When it becomes front page headlines, it will be too late. All the greater fools will have already been fooled with no one left to bail you out. Unfortunately, it will not be just the nouveau rich who will feel the pain. Their shortsighted greed, encouraged by unscrupulous appraisers lenders and politicos, will bring down the rest of the economy as well, precipitating the demise of many types of paper assets. Americans in particular now owe far more money to far more people than can ever be paid back. They have bigger houses, newer cars, more electronic gadgets and a smug attitude to go with it. But they also have more bills to pay and no more money to pay them with. Much the same scenario as their government that purports to lead. The U. S. government has borrowed more money from foreigners in the last eight years than all previous administrations since the time of George Washington. During the current US administration, the feds have borrowed more than $1.05 trillion from foreign governments and banks. This is more than all the rest of the nation’s administrations put together from 1776 to 2000. Oh, the costs of empire building and the waging of patriotic wars to free people so they can be more like us. Consider the fact, that despite a flat or even negative earnings picture in overall stocks in recent years, bonuses paid to managers on Wall Street and high salaries throughout corporate America including G. M., are obscene. This is but more evidence that we have reached a late, degenerate stage of an imperial economy. The sun has not set yet, but its final glow is about to descend beyond the horizon. The companies that make the most money these days are those that shuffle money - not those that make things people want to buy. And throughout the entire society, everyone participates in what has become an orgy of swindle and delusion. The practitioners of this prevarication call it salesmanship. At best it is entertainment. Not value or substance, but mindless triviality, delusion or false expectations. At worst, psychological manipulation to create frivolous desire, leaving the weak minded and undisciplined open to unbridled theft. Just add up how much interest you are paying on your car, your house, your credit cards and everything else you have been induced to believe is necessary for a successful life. The barbarians are at your door and benefiting mightily from your labors. The rich have indeed been getting richer while the consumer blindly signs on the dotted line. The mantra of the private sector through its advertising is ‘get it while you can’ despite the fact that this attitude is crushing the hopes and aspirations of the next generation. Previous generations attempted to leave the world a better place then they found it for their offspring. Now, the young and the unborn are saddled with an insurmountable mountain of debt and who cares. I've got mine you say...but do you really, when the charade unravels? What are you going to do...who are you going to call? Be prepared for painful dislocation and introspection. It will be the minority of savvy and erudite investors who pause to take notice that the emperor has no clothes. It will be the astute who shed themselves of the attractive burdens they have accumulated and put at least some of what is still marketable into gold. It will be the shrewd and brave who have the resources in the form of universally accepted coin, gold, to live reasonably well during the shakeout and to pick up the bargains for literally pennies on the dollar when the storm finally passes. The fact is, most people no matter how well meaning or educated, fail to learn from the lessons of History. They go through life with blinders on content with petty self-interest. Nero fiddles while Rome burns. These are among the reasons why gold is going to go up more, no doubt, a whole lot more. Owning gold bullion or gold coins is decidedly a happy thought.
Interest in the Philippines condominium hotels sector has increased significantly in the past two years following many years of intermittent development and association with other shared ownership vehicles, says Beth Collingz in her recent report: 'Condominium Hotels-The Philippines Latest Hotel Phenomenon' Beth Collingz, Overseas Marketing Director, Investment Sales for PLC International Marketing the lead marketing partners for Pacific Concord Properties Inc's Lancaster Brand of Condotels in the Philippines explained: A condominium hotel is a hotel operating unit which is sold to individual equity investors, where each owner acquires a room, suite or studio whilst the whole enterprise is managed as a hotel operation under a single brand. Buyers own their units the same as regular condos. There is no time limit to ownership. All Condos come with freehold title deeds. The Condotel model is similar to the serviced apartment or apart hotel sector and is suitable for an investor who wants to test the water in hotel investment. We are seeing more and more sophisticated customers coming to the market and a change in demand patterns; the traditional timeshare products seem past their prime. This, plus an increase in investment appetite for the hospitality sector, suggests that the condominium market looks set to grow Collingz continued: Many international hotel brands have also declared that the Philippine hotel landscape is ready for condominium hotel developments, either in conjunction with self-contained hotel operations, as fully self-contained condominium plans or as a part of a mixed-use development plan such as the Lancaster Brand. Condominium hotels are significantly less developed in the Philippines than in the US, in part owing to a low cost residential focused market as well as the lack of development in the hotel sector since the 1997 Asian Crisis. Alternative hotel ownership are featuring more and more in the hotels sector, with the rise of condominium hotels and a shift in investor strategy, thus creating a new investor profile. At the moment, the Philippine condominium market is being targeted and driven by private retail purchasers, typically reasonably net worth individuals attracted by a city centre or a resort investment foothold although we are now seeing more and more first time property buyers moving into the Condominium Hotel marketplace said Collingz. Metro Manila and Cebu are particular favorites as an investment destination. There is room for a wider pool of institutional and real estate investors to invest in a portfolio of condominium units or the establishment of an investor-developer partnership. Collingz continued that a lot of this interest is being driven by the relatively cheap market prices in the Philippines compared to Europe, specially UK Housing prices, and the easy payment options available for our Condo Hotel Developments, but there are other factors, too. Offshore Property Investors, Foreign baby boomers as well as overseas Filipinos, are looking for ways to maximize their return on investments as they approach retirement, and so are purchasing second homes, particularly Condo Hotel Investments where they can use the Condo for vacations and rent it out through our In-House Condotel Management when they are not using the unit thereby gaining rental incomes that on today’s purchase prices, give a projected ROI on their investments of some 12-16% depending upon the mode of payment for the unit. Pacific Concord Properties Inc’s Lancaster - The Atrium, Shaw Boulevard, Metro Manila, Philippines is a "Full Service" Condominium Hotel offering Studio, One, Two and Three Bedroom Suites for sale. To be completed and ready for turnover from December 2010, the Lancaster Atrium will provide unit owners with premier residential condo units with option of enrolling their units in the Lancaster Condo Hotel Rental Pool and earn Rental Incomes as Owner Non-Residents when not using their units through Condotel Management. This makes the Lancaster Brand of Condotels, one of the Hottest Investment Opportunities in the Philippines. Part of the success story for this sector will be the education of a whole new investor base previously accustomed to buy-to-let residential plans or conventional commercial real estate investments, together with the emergence of a secondary market in the Philippines to demonstrate transparency and liquidity said Collingz. Beth Collingz PLC International Marketing Networks