All About Financial Investing and Life Insurance

Update Sept. 11, - 2010 All About "Financial Investing" By Insurance Experts

2010-09-11T07:17:00.000-07:00

Do You Know How to Fund Your Investments?

Welcome readers, and thank you for reading this post, "Private Money Goldmine". I realize that there are thousands of investment manuals and self-help books on the market, and that you could have easily chosen another author's materials, but after reading my little known approach to increasing the return on your retirement investment money, you'll be certain you've made the right choice. What you'll learn in this article is everything that your bank, your investment counselor, your accountant and your attorney either don't want you to know, or don't even know themselves!

You'll find the secrets to investment strategies that only the wealthiest of investors have known for years. Be prepared to have your eyes opened to a world of investment opportunities that you have only dreamed of, but that can be a reality, right here, right now.

How long have you been waiting to grow your retirement savings into an amount that you're confident will keep you in the lifestyle to which you've become accustomed for the rest of your natural life?

Or better still, an amount that you'll be happy leaving to your children or grand children to give them the start in life that you may not have had? If you're counting on Social Security to accomplish either of those goals, you're in for a huge disappointment. No, while Social Security may give you enough money to survive at the poverty level upon your retirement (if it's even still in existence when you get there), it won't begin to allow you the financial freedom to enjoy the lifestyle that you deserve.

Yes, your retirement "nest egg" is up to you to accumulate, and depending upon your age, some of us have more or less time than others to grow that retirement fund. That's exactly why I'm writing thisarticle, to educate everyone who's willing to listen, to the fact that your money will never grow fast enough to create a legacy for your family if it's invested in a vehicle that's providing an annual return of 1%-5%!

No, you need a double-digit return at a minimum , coming to you by way of "passive income", if you want to create multi-generational wealth. But it doesn't end there. Actually, personal success is just the beginning of what I believe is my path of purpose in life. It's truly a blessing to find out what it is that you are passionate about in life, and after searching for many years, I personally have come to the realization that my passion is helping other people accomplish their goals.

I have helped many people become first-time homeowners, helped others attract passive income into their lives, and now I'm ready to be the ultimate philanthropist. I'm ready to give in a way that I never thought I could give before, as well as show others that they can do the same thing.

Everyone is so fascinated by real estate, from the "flip this house" shows on television to the "no money down" investing programs sold on infomercials at 2:00 AM. Those real estate investors aren't geniuses. They are average people, just like you and me.

It's just that they took hold of the information that they gathered and actually acted on that information. That's exactly what I'd like to encourage you to do.

Have you ever heard anyone say that he or she is a self-made millionaire? Is it possible to be a self-made millionaire? If you had asked me this question five years ago I may have believed that a person really can create wealth without the help of anyone.

"Self-made" clearly means to me that no one else had anything to do with someone's success. I only have one question to the self-made millionaires in this world. "What about God"? Where does God come into play in our narcissistic ways? Success does not come from a human being alone.

We should never feel that we don't need to acknowledge a higher power. From where I stand in my life at this time, the higher power is Jesus Christ. Without Him, I could not begin to do the things that I envision doing. If you recognize that a higher power is responsible for everything from making the earth to the heavens, you should give glory to the only Being that is truly worthy the of the glory.

Everyone has a piece to a dream - something that they're passionate about more than anything else. Nine times out of 10 it's not the job that they're working at right now. Real estate investing is one vehicle that allows you to create massive wealth for your family and to leave a legacy.

Hopefully once you learn my techniques you will become more of a giver and you'll thank God for your blessings and you will believe that there are no such things as self-made millionaires. God-made millionaires are people like you and I who understand that alone, we are nothing.

This is my declaration to my Lord and Savior Jesus Christ. I acknowledge that all of my gifts and talents come from you. Give me the wisdom to teach your people to be givers and conduits of love. You are fortunate to have the awareness of the ministry that was instilled inside of you at birth. That ministry my friends, is a finance Ministry.

Most people don't have a clue about the concept of "passive income". The only thing they know is earned income, and as we all know, earned income is income that is totally dependent upon your personal efforts. I'm sure you know the routine quite well.

You get up every single morning at five o'clock to get the kids off to school, sit in traffic for 30 minutes on your way to a JOB (Just Over Broke) that you don't even like, only to walk into a world where you will be chained to a desk for the next 8 to 10 hours. At this JOB you will, by virtue of your job description, spend every day fulfilling someone else's dream.

You see, the owner of the company has a dream, and understands passive income. You, my friends, are his passive income. If your boss decides to take a vacation this week, his or her company will still operate and his income will not be negatively affected by his absence. Once you understand the concept of passive income, hopefully you will do whatever it takes to discover how to make it work in your life. Getting rich is not hard at all. It just takes "passive income".

Passive income applies to any business and any person. But what I'm going to do today is to show you how to use self directed IRAs (your private money) to create that tax free, passive income and capitalize on what I call the "Private Money Goldmine". I have recently discovered the power of investing in real estate with private money, and because of that knowledge I am creating a real estate empire for my family.

Real estate is the easiest way that I know to create passive income in your life and it doesn't require a Harvard education. So if you follow my steps and start thinking a little bit differently. Are you familiar with the power of a self directed IRA? It can truly transform your life.

This article is the blueprint for the average person to make tremendous amounts of money, tax free for life. I pray that this article blesses you the same way that is blessed me and that it allows you to triple your rate of return on your future investments.

As Always, Keep God 1st, Invest in People

C.L. Jones
Author, Real Estate Investor, Life Coach
http://www.integritypropertybuilders.wordpress.com
http://www.taxlieninvestingexplained.com

Recommended Reading
Insiders Tips For Reducing Spending
Money Saving Tips And Ideas Covers Practically
All Areas Of Household And Modern Living Expenditure

Back To Insurance Contents
Back To General Contents ( Home )
Back To The Top

Article Source: http://EzineArticles.com/?expert=C._L_Jones_II

Update August 23, - 2010 All About "Financial Investing" By Insurance Experts

2010-08-22T08:39:00.000-07:00

In recent times, the average retirement age is around 60 years. One needs to cater for living comfortably for almost 30 years post-retirement while maintaining the same standards as that while in service.

In most countries, a simple savings deposit in banks would accrue up to 4 to 5 percent as interest. One would have to cough up almost $500, 000 for investing in different schemes to ensure the required income at retirement.

One can then opt for investing small amounts annually, allow the interest or the capital with its dividend to grow at a compound rate and build up the cash reserve.

Simply put, an initial investment at the time of birth of $1,000, annual deposit of $100 till the adult can earn, followed by annual saving by the individual up to $42 a month will build up close to $1 million at 60 years of age.

Such annual deposit will have to be made in tracker funds requiring low management and which are governed by major stock market indices like Dow Jones Industrial Average or FTSE100. Their growth in the past years has been up to 11 percent along with dividends at 1 to 2.5 percent.

Periodical dividends can be re-invested to gain an additional 12 percent on the net worth which could sum up to $2.5 to $3 million by the age of 64.

Therefore, some suggested ways for a retired life with no compromise on standards of living are: earning compound interest on capital and returns, low cost and lesser risk investment option, longer term for the investment with low volatility of returns, low management cost, and clearing debts.

About Author:
Kum Martin is an online leading expert in finance industry. He also offers top quality articles like:
Marketing Strategy Benefits and Kids Market Trends

Article Source: http://EzineArticles.com/?expert=Kum_Martin

Update August 07, - 2010 All About "Financial Investing" By Insurance Experts

2010-08-06T08:46:00.000-07:00

Determining how to invest your money is an important decision. You need to consider how much money you have available to invest, how involved you want to be in managing the investment on a daily basis, what risk level you can take, and the time period or average term of your investment.

Long-Term Solution: Common Stocks

For long-term investments, the stock market has proven to give the best return. Share prices should theoretically reflect the fair market value, so as long as you have the capital available to put together a large enough portfolio, you should see a steady growth in your net worth over time. Share value will increase as the company grows, which in the case of well-established companies, is generally fast enough to keep up with or beat inflation. The biggest problem people have with investing money this way is that they carry too much risk by holding shares in only a few companies. If any one of these businesses goes under or even just has a bad year, your capital is going to take a big hit.

Low-Risk Investing: Mutual Funds

To lower this risk, even if you don't have $100,000 earmarked for investing, you can buy into a mutual fund. In this manner, the capital of 1000s of investors is pooled together and managed in the stock market by business professionals. Here you get the benefit of diversified investment without the need for a large start-up fund. The downside to mutual funds is that they are managed as a business, and some of the profit is skimmed off the top to pay salaries, overhead, and brokerage fees. It is important that you read the fine print before investing in a mutual fund so that you understand just how much these costs will eat into your profit. You may find that your bank or credit union offers an index fund, which is similar to a mutual fund, but structured so that more of the profit is directed to the investors rather than the management team.

Alternatives to Investing in the Stock Market

1. Bonds

Bonds are a more predictable investing alternative to the stock market. When you buy a bond, you are essentially loaning the issuer money, which they agree to pay back at a fixed interest rate. Most bonds are backed by the government, and are a reliable way to invest money that you don't need access to for 5 or more years. Note that government-issued bonds may continue to accrue interest even after reaching maturity, so depending on the interest rates being offered by banks and other lenders, you may choose to hold on to the bonds even longer.

2. Precious Metals

If you lack confidence in the dollar or other global currency, you may consider investing in precious metals like gold, silver, and platinum. The value of these metals is not as susceptible to inflation as paper money, so you can enjoy some piece of mind when you have metal saved away. All you have to do to start investing is go to a dealer to buy bullion that you keep locked up at home or in a safety deposit box. You can monitor the price of gold or other metals just as you would stocks, and then return to the dealer to sell your holdings as desired.

For information about finding and comparing the best online Stock Brokers, visit http://www.yourbrokerguide.com.

Article Source: http://EzineArticles.com/?expert=Jeff_C_Daniels

Update July 20 - 2010 All About "Financial Investing" By Insurance Experts

2010-07-19T11:36:00.000-07:00

Financial investing is defined as a term with several closely-related meanings in business management, finance and economics, related to saving or deferring consumption. Investing is the active redirection of resources: from being consumed today, to creating benefits in the future; the use of assets to earn income or profit.

Recommended Reading
Insiders Tips For Reducing Spending
Money Saving Tips And Ideas Covers Practically All Areas
Of Household And Modern Living Expenditure

Why Buying a House is More Than a Financial Investment
By Jessica Ricks

Most professionals nowadays, single or married, desire to have an abode they can call their own. A very popular adage goes, "there's no place like home". The most gratifying and fulfilling achievement as a working professional is to have one's own property - a house and lot - before the acquisition of any other valuable things in life.
In this dynamic world, you can't deny the necessity of having a private place for resting and meditating at your own will and in your desired time. How else can you attain full satisfaction in life except by having a place you can call your own? A house you can design, restructure, renovate and improve with such freedom is a priceless joy. Owning a house gives you a sense of belongingness, a feeling that will bring you back to where you belong no matter how enticing another place could be. It's a feeling of being in your comfort and security zone.
At the end of a very long, tiresome day from work, you'll always want to go home and take your much needed rest. But you can only be assured you're going to have a good one when you're in your own house. A rented home may do but when you're only renting, you can't always have your own way. Of course, you are expected to abide by your landlord's rules. But when you have your own home, everything is in your hands.
Life is full of uncertainties and surprises. No one can ever tell whether the good job you have now would give you security for your future. No doctor can assure you that you'll still be healthy enough to work that much and earn a large sum. You can never be assured that the economy will remain as it is. With all these uncertainties, you have to be prepared and part of the preparation is having a house you can call your own.
One of the ways to invest for a better future is through acquiring your own house. Remember, you're not getting any younger. And your future depends on the decisions you make in the present. When you buy a house, you have something you can be proud of. While you're in good health and enjoying a good job, don't procrastinate. Have something you can see, touch and feel to remind you that you have been a responsible and hardworking individual.
In Ventura County in California, there are many great homes for sale. Some of them can be found in North Ranch, others in Wood Ranch and more in other nearby areas. If you want a peaceful, secure and friendly home life, explore these communities and enjoy what you'll find.

Recommended Reading
Insiders Tips For Reducing Spending
Money Saving Tips And Ideas Covers Practically
All Areas Of Household And Modern Living Expenditure

Back To Insurance Contents
Back To General Contents ( Home )
Back To The Top

Update July 02 - 2010 All About "Financial Investing" By Insurance Experts

2010-07-02T10:34:00.000-07:00

Financial investing is defined as a term with several closely-related meanings in business management, finance and economics, related to saving or deferring consumption. Investing is the active redirection of resources: from being consumed today, to creating benefits in the future; the use of assets to earn income or profit.

Recommended Reading
Insiders Tips For Reducing Spending
Money Saving Tips And Ideas Covers Practically All Areas
Of Household And Modern Living Expenditure

Structured Settlement Investment - The Key to Excellent Financial Gain
By Ricky Deez

One of the most feasible options for an excellent financial gain is none other than the structured settlement investment. Usually, this type of investment is paid out to a certain individual for a certain period of time and this may also be the result of a court judgment, lottery winnings, insurance pay out, or annuities as well. Usually, the recipient of this settlement is so willing to sell their payment in exchange for cash to structured settlement purchaser. You might be wondering why this happens.
Well, you have to know that a structured investment is a more facile and amiable resolution for the certain individual who is obliged to pay. Aside from that, the numerous advocates of the settlement also firmly believe that the whole format can protect the party who is receiving the settlement from wasting the money and from the various predatory borrowers.
What are needed in the structured investment are a willing seller and a willing structured settlement purchaser. Yes, this contract between two parties is right as long as they have the consent but this will still be illegal without the commendation of the court. When the petition is already within the courtroom, the fiscal need and position of the seller will definitely be laid out. Another requirement is the assurance of the reputability of the investors or buyer who proposes to complete the structured settlement investment. Aside from that, fees hidden in secret will also be prohibited.
So, why is the structured settlement investment a hit nowadays? Since the proceeds of this comes that from a court-awarded settlement are tax free for both the federal and state levels, this is very advantageous and beneficial. Unlike the lump sum that will always be subject to taxation all the time. With regard to the winning lawyers, they will also be obliged to take their payment in fixed installments and to obtain a reduced amount in several fees as well.
There are certain cases wherein the certain defendant will have no choice but to obtain a lump sum but there are also several courts which will just award structured settlements. By doing this, the civil disputes between two parties will definitely be resolved. See? This just implies that the settlement plan is very advantageous and beneficial to anyone.
But what are its effects? Well, the companies obliged to pay out a certain structured settlement will be deemed liable of their very own books. This will be done by simply transferring it to a so-called third party assignment company. Now when the case becomes like this, the transfer will indispensable need to conform to section 130 of the Internal Revenue Code.
Nothing will really beat structured settlement because it is one of the best investment vehicles at present which gives hope to individuals around the world. If you want to have excellent financial gain, be a settlement purchaser and be adept with the structured and best settlement plan now!
Do you have any other questions? Well just check out my website in order for you to have mental enlightenment regarding Structured Settlement Investment, and Structured Settlement Purchaser.

Recommended Reading
Insiders Tips For Reducing SpendingMoney Saving Tips And Ideas Covers Practically All Areas Of Household And Modern Living Expenditure

Back To Insurance Contents
Back To General Contents ( Home )
Back To The Top

Update June 12 - 2010 All About "Financial Investing" By Insurance Experts

2010-06-12T07:33:00.000-07:00

By Saurav Kumar Kool

With the advent of advanced technologies, our country is fast becoming westernized with a strong influence of financial freedom beckoning it. Every individual is busy in chasing his/her own dream of becoming financially independent and one vital step toward accomplishing this aim is suitable financial planning investment.

There is no trace of nervousness or anxiety in folks who are currently employed but once the employment phase is over, folks start questioning their financial status and how they can lead a life not dependent upon anybody.

This leads to a situation where people are forced to lead a life with reduced standard of living after retirement. A situation like this can easily be avoided if professional services of a financial advisor in India are hired before it gets too late. Life won't become dependent and distressed if proper planning is done regarding financial status and future planning.

The need to financially plan your life well in advance arises because of the unstable and turbulent market conditions. As inflation is rising steadily year after year, the prices of essential products are rising gradually. The same product that we bought at a price this year is bound to get pricier the next year but post retirement life would not see a rise in income level. This particular reason may also prompt folks to take up financial investment planning well in advance.

Another reason that poses a hindrance to people who want to aptly plan their finance is the notion that apposite financial planning requires huge capital investment. This is not completely true as no sum is small enough that cannot contribute to financial planning. One can seek counseling and services of a financial advisor in India to devise a plan which are specific and customized for their type of needs and requirements.

It is imperative to consider factors like years of tenure left in a profession, current income, liquidity, safety, setting aside finance for future uses, tax advantages etc. It is always better to start young when it comes to financially plan your life. Plan your goals well in advance and start working towards them. Investing in property is one of the lucrative and alluring options that will reap rich dividends in future.

Suppose there is a professor somewhere in Rajasthan who is going to retire in a few years and has not started financial planning of his future life. He needs to consult an expert financial advisor in India who can proffer him with a wide array of ideas as to where to invest. Some of the advices might sound like investing in property around Jaipur or affluent Bharatpur investment.

Saurav Kumar Kool providing Financial Planning Investment, and Investment Bharatpur

Back To Insurance Contents

Back To General Contents ( Home )

Back To The Top

Update May 23 - 2010 All About "Financial Investing" By Insurance Experts

2010-05-23T08:22:00.000-07:00

By Peejay Goodman

You can diversify your portfolio by adding the best performing mutual funds, which are groups of stocks instead of individual stocks. Another advantage is that a professional fund manager, whose livelihood depends on how his fund performs, defines the assortment of companies that you are investing in. The issue with these types of funds is that there is an expense involved since you are required to pay for the fund's management, which is automatically deducted from the value of the fund. Additional charges and fees can negatively affect the income your investment generates. Before investing in anything, even when investing in the best performing mutual funds, you need to take a bit of time figuring out the possible expenses that are charged by the fund.

One source of information about investing is Morningstar.com.The best performing mutual funds can be easily located using this resource. The website offers plenty of free information, and the top performing funds are divided into categories which you can look at to find the funds based on your investment preference. The best performing funds are listed on the left margin of the site.

MSN's Money website is another site that I utilize in obtaining information about the best performing mutual funds. Similar to Morningstar, this website offers worthwhile data about the top performing funds; however, it's the Expert Picks area which is most helpful. Mutual fund research is made even better by letting you to stand behind a professional fund manager so that he oversees a portfolio in real time!

In order to get a hold to some comprehensive statistics, an investor might have to sign up for some financial assessment websites or submit an entry fee to acquire a membership. A person will be able to access and assess this information on their own or could enlist the help of a personal financial counselor to choose the most outstanding companies with the best performing mutual funds, which are chosen based on their professional capability and experience.

In the end, the brokerage house or investment firm is an additional resource from which you could obtain details about the best performing mutual funds. You can also have an account there as let their professionals manage your portfolio for you. As obvious as it may seem, there is a lot of data that is given to clients by their online brokerage firms that is often overlooked. Check out the brokerage firm's site for recommendations they regularly offer.

Go to MutualFundsThatBenefit.com for more information about the best performing mutual funds and discover what the top performing mutual funds are from month to month.

Back To Insurance Contents

Back To General Contents ( Home )

Back To The Top

Update May 02 - 2010 All About "Financial Investing" By Insurance Experts

2010-05-02T06:43:00.000-07:00

By Julie-Ann Amos

The 401k retirement plan is one of the most common employer sponsored retirement plans. 20 years ago, most Americans had a pension, which was a type of retirement plan that allowed employers to put money aside that employees could count on during their years after they stop working. Since pensions are no longer something that companies can afford to do, many have turned to the less expensive 401k plans.

You do have other options, including individual retirement accounts. However, many select the 401k because they allow you to put more money into them for retirement and many employers also place a matching or elective amount as an additional contribution.

Before you go with this method for paying for your retirement, there are some things that you need to know about these accounts first.

• This type of retirement plan is pre tax investing, which means you are not charged income tax prior to depositing the funds. However, you will be charged when you take the funds out, during retirement.

• All 401k rollover rules need to be followed to ensure you are not taxed extensively for the transition if you plan to make the move at some point in the future.

• There are limits on how much you can investment, but those limits are fairly large (though they do change each year.) They are larger than other types of retirement accounts, however.

• If you change employers, your 401k will follow you, though some types do have vesting rules. You need to meet the goals of the employer to be fully vested (usually having worked for the company for a specific amount of time.)

• Most 401k plans offer few to no fees for the participant because the employer covers them. Yet, there are a handful of differences to take into consideration between plans. Read the information provided to you by the employer before enrolling.

The more that you know about the plan, the better protected you will be. While there is no requirement that you do invest in this particular retirement plan, it is often a good idea to do so for many people. In fact, if your employer is matching it, or offering any type of contribution, that is free money for your retirement. Take full advantage of it to help ensure your future is protected. For many, the 401k retirement plan is the ideal choice for planning for the future. It could be ideal for you, too.

Julie-Ann Amos is a professional writer who writes on many topics, including 401K retirement plan tips for employees and self-employed 401k info on her 401K Hardship withdrawal blog.

Back To Insurance Contents

Back To General Contents ( Home )

Back To The Top

Update April 01 - 2010 All About "Financial Investing" By Insurance Experts

2010-04-01T05:36:00.000-07:00

By Chris Blanchet

As the number of small lenders achieve recording-setting results in terms of their failure rate, it may seem uncharacteristic to invest in financial services firms. However, with some of the larger banks slowly returning to profitability, the contrarian approach of investing in firms that others are apprehensive about makes plenty of sense.

In fact, with the government announcing recently that it will sell its stake in Citigroup this year (at an arguably tremendous profit), the signs are clear that the financial services sector is actually on a healthy path to recovery amidst record-setting numbers of smaller, regional-sized bank failures.

Does that mean that investors who are keen on achieving great profits should be investing in the larger banks, like Citigroup, Goldman Sachs, Wells Fargo and so on? Not necessarily. Investors with the right appetite for risk and with enough of a long-term investment horizon might actually profit much more from some of those smaller, regional banks.

Something that all investors who are interested in financial services should remember is that there are several types of smaller banks. Some are heavily involved in real estate lending than others and depending on their geographic location, this could be an unfortunate business choice (in fact, of the four most-recent failures, three were located in Arizona and Florida, two of the hardest-hit states in terms of real estate prices and unemployment).

There are other financial services firms, however, that are properly capitalized and who have actually been achieving year-over-year profitability. In addition, they continue to offer and increase their dividends. Surprisingly, some of them are even located in higher risk areas, like California.

The reason why investors should benefit in the future has to do with how these lenders and financial services firms conduct their business. If they are more prudently underwriting their mortgages and remain viable in terms of their capital positions and show positive trends in profitability, then it is quite likely that they will continue to pay those dividends and reward shareholders with capital appreciation in their stock value.

As well, with consumer spending on the rise, many of these financial services firms are poised to experience long-term growth in the years to come as people return to work and start spending more and more on credit. While the underwriting process might become more difficult, defaults will also be reduced; financial services firms that are already reporting profits and showing solid fiscal strength will only benefit from the failures of so many of their peers.

The investor who is able to find the best and "right" financial services firms among the many not-so-good firms will clearly profit substantially. The trick, of course, is to find which ones are deserving of your investment dollars.

--> Looking for the best Dividend Funds? See what MutualFundSite.org has to recommend.

Chris has more than 17 years of financial services experience. He currently manages a small portfolio of websites including one about Cheap Cricket Bats at CheapCricketBats.org.

Update Mar. 13 - 2010 All About "Financial Investing" By Insurance Experts

2010-03-13T04:36:00.000-08:00

By Simon Volkov

Locating a good investment company is imperative for creating positive cash flow. Multiple financial investment options exist and each presents advantages and disadvantages. A good investment advisor will outline the pros and cons while helping investors develop strategies to produce desired financial results.

A good investment company should provide a diverse selection of investment products. These might include mutual funds, stocks and bonds, certificates of deposit (CDs), tax-deferred and income annuities, life insurance and retirement investing. It is recommended to invest in multiple products in order to build a solid financial portfolio.

The expression of, don't put all your eggs in one basket is particularly true when investing. Fund performance changes daily. Some funds create funds on a regular basis while others ping pong around and may perform poorly one day and generate profits the next. Investing in a diverse mix of products can counterbalance poor performing investments.

The Internet provides information and resources to help new investors learn the trade and locate investment companies. Anyone with access to a computer can establish financial portfolios from the comfort of home. Popular online investment firms include: Charles Schwab, Vanguard, Fidelity Investments, Merrill Lynch and BNY Mellon Wealth Management.

Most online investment companies offer phone and instant message consultations to address questions and concerns of clients. Good investment websites will offer articles, interactive guides and informative videos. Clients can locate the proper mix of investment products to help them reach their financial goals.

Individuals new to investing often find it helpful to work with an investment company with local brick-and-mortar offices. Many newbie investors find it more comforting to consult with their financial advisor in person. They can ask questions and discuss their financial needs and goals to ensure they are choosing the appropriate financial investment products.

In addition to financial investing products, real estate can add a new layer of profit to financial portfolios. Numerous real estate investments exist including rental homes, commercial real estate, lease-to-own properties, or investing in realty cash flow notes such as seller carry back mortgages and land contracts.

One trustworthy source for locating real estate investment property is InvestorsWholesale.com. Newbie and seasoned investors can learn tips, tricks and strategies to expand their portfolios through the articles and resources provided at this website.

Another popular real estate investing source is HomeVestors of America. Known for their "We Buy Ugly Houses" campaigns, HomeVestors offers the opportunity to purchase a real estate franchise to buy, sell and rehab houses.

Although economic forecasts are gloomy, there has never been a better time to create or enhance investment portfolios. The only way to achieve financial freedom is to plan ahead. Whether you want to start a business, save money for your children's college tuition, or build a retirement fund, plenty of options exist to help achieve investing goals.

Spend time conducting research financial products and companies. Once you locate a good investment company, open the lines of communication and set your plans in action.

Author and real estate investor, Simon Volkov, has published hundreds of investing articles. He offers sound advice based on his working knowledge and provides numerous investing tips, resources, strategies and advise for locating a good investment company via his website at http://www.SimonVolkov.com.

Update Feb. 20 - 2010 All About "Financial Investing" By Insurance Experts

2010-02-20T09:43:00.000-08:00

By Hannes Dreyer

I am here to tell you that property investment can be a viable investment vehicle no matter what the financial markets are doing the world over and not only this but that it can be one of the safest investment vehicles to use should you know how to evaluate the profit potential of the investment in any worst case scenario before actually making the investment.

People allow their fearful nature to get in the way of their ability to be able to make calculated and viable investment decisions and more often than not will follow the mainstream line of thought or actions of the market when making investment decisions. When it comes to property investment, there are tried and tested systems available which although they might go against the normal investment way of thinking are able to greatly reduce the risk of the investment if they are applied correctly.

Please let me ask you this, would you get into a car and expect to drive it safely if you had never taken the time to educate yourself as to how one should safely drive in a car and if you are willing to take this risk, how do you think the experience will end? Let me tell you, it will end in disaster!

So why is it that people are willing to take this type of risk with their investment without giving it any amount of consideration? I truly believe that for you to be able to effectively make any sort of safe property investment you need to take the time to invest in yourself first, in other words, take the time to find the best instructor to teach you how to drive this vehicle.

Take the time to observe the actions of the person you are receiving your instructions from, if they are constantly changing strategy to accommodate the market changes, then if you ask me, they are not following the safe route to investment. If you are sure that the way you are investing will not force you to adapt to the changes in the market, chances are that you are following the correct driving instruction. If however this is not so then the methods which you are been taught are erratic and unreliable.

There are certain laws, formulas and principles which when they are applied correctly are able to guarantee that any investment which you make will be safe no matter what the financial markets may be doing, so as I always say, be sure to take the time to invest correctly in yourself and there is no reason why your investment decisions should be dictated to by outside influences.

About The Author:

Dr Hannes Dreyer is a Wealth Creator Mentor and inventor of the Property Pro Investment System.

For more articles on property investment or to get a FREE Property Investment VIDEO e-Course showing you how to achieve a growth rate of more than 87% per year on your property investments - even in a recession go to http://www.PropertySchool.co.za.

Back To Insurance Contents

Back To General Contents ( Home )

Back To The Top

Update Feb. 01 - 2010 All About "Financial Investing" By Insurance Experts

2010-02-01T04:49:00.000-08:00

By Cheryl Forbes

Since we are still in the middle of recession and all people are more careful with how they handle their money. They know how important investments are if they want to continue to make big bucks of money but it is hard to invest these days. You will never know what big company is going to fold next.

One of the safer means for investment is still mutual funds investment. If you are not yet sure about it, you can always check the fund's previous performances to be able to make a quick decision, although there are many other factors to consider and not just the history of the chosen method for investing. You should also take into consideration the fund's sale charges or expenses, the taxes that you have to pay, age and size of the fund, the fund's risks and latest changes.

It does take a lot of hard work but it is worth it especially if you did that right. There are specific tools that will be able to help you with it such as a mutual fund cost calculator. It helps you compute the costs of different mutual fund investment added over time. So you know exactly what your returns are.

Choosing the right mutual fund investment depends on how much you can take. Your tolerance for risk is actually the one thing that will help you decide on the type of fund that is for you. You will always decide on your comfort level and your financial goals.

Cheryl Forbes owns and operates the website http://www.trust-deed-investor.com.

Part B. 3 Tips on How to Choose Unit Trust Fund

By Sheng Feng Ang

The basic feature of Unit Trust investment is a form of collective investment that allows investors with similar investment objectives to pool their saving, and invested in a portfolio of securities managed by investment professional.

Most people think that the diversified nature of unit trust funds means that the risk of investment is low. This led to misconception on buying high prices. We should have 3 basics understanding and research before we commit our hard earned money in Unit Trust investment.

1)Understand your risk profile
·Conservative and low risk investor- when investing your money, your investment's value won't go up and

down a lot. Low risk funds have a mix investment types, or just fixed interest securities.
·High-risk investor - you will aim to achieve the highest possible of return. High risk tend to be specialised

or in or more countries outside Malaysia.

2) Evaluate the unit trust you are investing
Investors should understand the investment objective and strategy in each fund that they are considering. Even the funds within the same category may have differences in risk exposure due to the difference in the investment holdings. Make sure the funds stick on its stated strategy in top 10 holdings. We always look at 3, 5, or 10 years of funds' performance as a compared.

3)Track record of the fund manager
Please bear in mind; the fund manager manages our money investment. Is more directly related to how your money is managed, the fund manager is the one making the investment decision. A strong fund manager will have a professional qualification in finance Analyst and many years of experience in investment research and stock broking. Understand what funds the manager has worked at in the past history and funds performance records.

Sheng Feng Ang is currently a Unit Trust consultancy for more than 10 years experience. Mainly in Unit trust investment, Risk Management and Financial training. Adelaide has obtained the " Certified Financial Planner", is globally recognized in USA, Canada, Japan, Australia, Hong Kong, China, Taiwan, Indonesia, India, Singapore, United Kingdom, New Zealand, Germany, France, South Korea, Brazil, Austria, South Africa and Switzerland.

Unit trust investment is one of the many ways to increase our retirement fund and maximize our gain and minimize our risk along the period of investment horizon towards our retirement age. For more information, please direct mail to my personal email at:sf_ang2003@yahoo.com or sfang2003@gmail.com

Back To Insurance Contents

Back To General Contents ( Home )

Back To The Top

Update Jan. 13 - 2010 All About "Financial Investing" By Insurance Experts

2010-01-13T04:34:00.000-08:00

By Thoriso Mashego

When it comes to building wealth, the best and most stable option is through investment property.

An investment property is a property acquired for the express purpose of earning a return, either through rent or capital gain. Generally, the owner does not live on the property, although in many cases beginning investors might choose to live in an acquired property while completing renovations, and then sell the home for a profit.

For those looking at getting into investment properties, there are a number of different things to understand before purchasing, with the first thing being how to finance investment property.There are four common financing methods you can use to invest in real estate, with the first being to organize a home loan through your favorite bank.

Loans acquired through a bank offer many advantages such as competitive interest rates and low fees, although banks might not approve a high loan to value property.

What it boils down to is that typical banks will expect you to come up with 30% of the rest of the money.

This may be a problem for you, or it may not; it depends on if you have the cash to place towards the property investment.Going through an accredited mortgage broker is another popular choice. Mortgage brokers are trained to know how to effectively finance investment property and have thorough experience in doing so.

Their job is to present the loan you want to different lending institutions, and find the one that offers the best interest rate. An advantage to this service is that rather than being denied by one bank and having to start all over again with a different one, the broker does the work of presenting your loan to different institutions until he or she finds one that will accept it.

There are options other than banks and lending institutions. You can also go through private lenders, who loan their private money to projects of their choosing. The fees and interest rates of private lenders are usually much higher than those of banks and other lending institutions; this means that you will have to decide if the profit you stand to make from the property is worth the additional fees. You also have the option of financing an investment property with your own money.

If in fact you have the capital to do this, this is going to be the easiest and fastest financing method.

Of course by using your own financing, you are not building your credit score by obtaining financing and then retiring the loan through repayment.

How to finance investment property is going to depend entirely on your financial situation and the goals you have for investing in real estate.

For more free and informative reading on the topic follow the link => Real Estate. Dr Thoriso Mashego is a successful real estate investor/trader, an online business owner and a medical doctor with his own private practice in Cape Town South Africa.

Article Source: http://EzineArticles.com/?expert=Thoriso_Mashego

Emerging Markets and Over Seas Investing - Personal Finance Book Review

By Lance Winslow

If you are going to do international investing right now, where would you most likely wish to put your money? There are some economies that are growing rather rapidly, and if you are careful you could make quite a bit of return on your money, even as the US economy has very slow growth right now, and it may not take off again if we get a double dip recession.

That's not to say that the US economy is not a safe place to put your money, it absolutely is and if the economy continues to grow, so too will your investments. Still, why put all your eggs in one basket when countries like Brazil, Vietnam, and China are screaming along quite nicely? Perhaps, you might like to read a little bit on this to help your personal finances. If so there's a very good book I'd like to recommend to you, the name of the book is;

"The Book of International Investing; Everything You Need to Know About Investing in Foreign Markets," by John A. Prestbo and Douglas R. Sease

If you enjoy books by Mark Mobius, and perhaps, Jim Rogers, then you will definitely enjoy this book as well. Although this book is not new, the same fundamental principles apply to our current time. Why not become a value investor, and do a little speculation in international economies which are experiencing excellent growth right now?

I'd recommend this book to anyone that wishes to diversify and invest in emerging and/or overseas markets. In fact, I have a copy of this book my personal library, and I often pull it out and read a chapter or two just to remind myself that the United States is not the only game in town. We live in a global economic situation now, and we should be investing that way. Please consider all this.

Lance Winslow is a retired Founder of a Nationwide Franchise Chain, and now runs the Online Think Tank. Lance Winslow believes smart investing.

Article Source: http://EzineArticles.com/?expert=Lance_Winslow

Back To Insurance Contents

Back To General Contents ( Home )

Back To The Top

Update Dec. 25 -2009 All About "Financial Investing" By Insurance Experts

2009-12-25T05:16:00.000-08:00

By Ahmad A Hassam

Stock investing is a time tested method of wealth building. Warren Buffet is a perfect example of a stock investor who over the years had amassed a fortune worth $50 Billion. At one time Warren Buffet was the richest man in the world even surpassing Bill Gates who had made his fortune by selling windows operating system.

What's so special about Warren Buffet? Warren Buffet is known for his methodical and systematic research in unearthing stocks that have gone out of favor with the Wall Street but have the potential to rebound with the passage of time. Warren Buffet does not like to invest in companies that are hyped.

His stock investing method is unique. The most important consideration that he gives while investing in companies is that its management is sound and the market in which the company does business is going to thrive for many decades in the future. He is a quintessential value investor who goes for value.

Buffet method of stock investing is based on the famous stock investing course, " The Intelligent Investor", by Benjamin Graham. It was Graham who first enunciated how to value a stock by calculating its intrinsic value. Once you have the intrinsic value, you should compare it with its market price. If it is lower than the market price than the stock is overpriced, don't invest in it. If the intrinsic value of the stock is higher than the market price, it is a good bargain that will rise in value in the future.

Warren Buffet has taken this method of stock investing to its perfection. Over the years, he has invested in a diverse array of companies like Washington Post Company, General Re ( a reinsurance company), General Electric and reaped huge returns. His average return has always been above the market return.

This does not mean that everyone can emulate Warren Buffet's success story. But what is for sure is that stock investing is still the best wealth building method. Right now, the stocks are down. Most of them are selling below their intrinsic value. What you need to do is invest in stocks with good intrinsic value and within a few years you will get an ROI of 200-200%.

Chris Rowe is a master investor who was a Wall Street prodigy. He had already made millions while still in his 20s. In 1998, he turned his back on the Wall Street. He got simply sick of the cheating and lying that takes place at the Street.

He started his newsletter, " The Trend Rider", and helped ordinary people who had no clue how to do stock investing make hefty returns. Recently he has released the details of his exact system, "The Internal Strength System", that he had used to make a fortune. You should take a look at Chris Rowe's Stock Investing Course if you really want to claim your financial freedom for the rest of your life!

Mr. Ahmad Hassam has done Masters from Harvard University. Get on the waiting list of Chris Rowe's Internal Strength System as only 500 copies will be released on 15h December. Meet the High Velocity Market Master HVMM and get your free copy of the Ultimate Day Trading System that can trade stocks, forex and futures just now before it gets pulled down!

Article Source: http://EzineArticles.com/?expert=Ahmad_A_Hassam

Recommended Reading
Insiders Tips For Reducing Spending
Money Saving Tips And Ideas Covers
Practically All Areas Of Household
And Modern Living Expenditure

Forex Trading Platforms - Investing in the Financial Market Online

By Robert M Woods

In the past, Forex was limited to large financial institutions and multinational companies. Because the Forex market is now open to everyone and because it is a very profitable industry, online Forex brokerage firms began improving their services and accessibility. However, thanks to modern communications technology and high speed internet and decreased sanctions in the Forex market, ordinary people can now trade and participate in the world's largest financial market.

Knowing the basics in Forex trading can be very beneficial. If you are thinking of trading in the financial market, you might want to consider trading in Forex. Trading in the financial market online has a lot of advantages. Since the development of the Internet and introduction to the public, people have been using it to communicate with family and friends. These are the things you should know about trading and the Forex market. With the Internet, you can chat for free even though the person you are talking to is half way around the world.

You no longer need to be inside the market floor to trade. So, try and look for some time where you can practice your trading skills and strategies in dummy accounts or attending Forex trading courses. They now also designed different trading platforms suitable for different traders. All you need is a computer with a high-speed Internet connection, and trading software and you're ready.

If you want to go and earn that money you need for whatever reasons, try investing in the Forex market. Not only has online Forex brokerage firms made their trading platforms accessible, they also began and still continuing to improve their software. If you do it right, you can be sure that you can earn a lot of money through Forex trading. Only banks, central banks and large companies were allowed to participate in the Forex market.

Just remember that on whatever things you invest in, whether it would be a small business or the Forex market, you should always consider that there are always risks involved.

Robert M. Woods has been successfully trading the Forex market since 1998. He recently reviewed a very popular Forex trading guide which can be read here: FAP Turbo Settings

Article Source: http://EzineArticles.com/?expert=Robert_M_Woods

Back To Insurance Contents

Back To General Contents ( Home )

Back To The Top

Update Dec. 06 -2009 All About "Financial Investing" By Insurance Experts

2009-12-06T05:21:00.000-08:00

By Albertina Belmont

No one ever expects to need travel insurance. Once you have taken the time to plan a dream vacation the last thought is of all of the life situations that could ruin it before it starts. Whether you are traveling alone, with your spouse, entire family, with business partners, or as part of a large church group, investing in travel insurance can guard against unforeseen circumstances.

What Is Travel Insurance?

Travel insurance is like most any other insurance plans. You pay beforehand to protect you in the event of something happening. Vacations can be very expensive. For some, it can take years of saving and planning to be able to take the perfect vacation. If you have already secured a flight, hotel, time off from work, arrangements for childcare and have set all other aspects of your vacation, you can not afford for anything to go wrong.

This kind of insurance can cover a wide variety of travel situations. Some commonly covered mishaps are trip or flight cancellations. If your flight is cancelled, a lot of money could be gone if your hotel does not hold your reservation because you are late. If your flight is not rescheduled do to inclement weather, your vacation can get completely spoilt. While travel insurance may not be able to change any of these situations, you will be financially reimbursed for the problems. Other situations covered by some plans are lost baggage. It can be quite expensive to replace your vacation supplies or wardrobe if the airline loses it. While they usually can get your luggage to you quickly, there is the chance it can be lost for good, making replacement of your things necessary. If your vacation involves special equipment, such as things needed for scuba diving or mountain climbing equipment, the expense might be too much for you to even try to replace while already at your vacation destination. Having travel insurance can help you afford to replace these items.

How To Get Travel Insurance

Getting insurance to stave off disaster is not a complicated process. It also is not that expensive considering all the typical plans will cover. Some cover events or situations you may never have taken into consideration as a possibility during your trip. You can easily inquire about different plans online or through a reputable agent you know. Online, you can get real time confirmation of your policy within minutes. You only need a credit card and some idea of what plan best suits the traveling you will be doing. Everything from basic trip cancellations due to illness to terrorist attacks crippling the travel industry or place you are traveling to can be included in the policies. They also range in coverage time from one day trips to one year living abroad situations. What ever be the type of traveling you may do in future; investing in travel insurance can keep your vacation from becoming a financial disaster.

A travel insurance policy is one of the essentials for individuals who travel on a frequent basis. It can cover for medical expenses as well as provide for accident insurance. Prior to choosing an insurance plan, you must procure and compare a few travel insurance quotes.

Article Source: http://EzineArticles.com/?expert=Albertina_Belmont

Investment Advisor - Learn How to Hire a Dependable Advisor to Secure Your Financial Future

By Daljeet Sidhu

There is a reason most of us depend on our friends or ourselves for making important investment decisions. It is hard to find a dependable professional source of investment advice. There is no dearth of places to turn to for investment advice, but the decision to put a portion of your financial future in someone else's hands should be made very carefully after collecting sufficient information.

What are the different types of financial and investment advisors?

Investment advisor is a professional firm or an individual that advises clients on investment matters. They may manage trust funds, pension funds and personal investments like stocks and mutual funds on their customer's behalf.
Financial planners offer investment advice and help clients with savings, taxes, insurance, estate planning and retirement.
Brokers buy or sell stocks, mutual funds, bonds on their customer's behalf.

How do I pick a good investment advisor?

Ask your friends and family if they know a good investment advisor. Also compare price quotes from multiple qualified investment advisors listed on B2B marketplaces and ask them for an appointment.

Interview your financial advisor extensively, judging their professionalism and experience. Let him or her learn about your tax situation, fiscal health and long term goals.

Ask the following questions to narrow your search for an investment advisor.

What experience do you have?
Where are you registered?
What investment services do you extend?
Do you have all the required licenses.
How much money do you manage for other clients?
How have your investments performed in the past one to ten years?
How will you assist me with my investments?
How are you paid?
Do you require a minimum investment?
How are you different from other investment or financial advisors?

Learn how your advisor gains from you

Investment advisors are paid either a percent of the asset value they handle for a customer, a fixed or hourly fee, or a combination of all. They have a fiduciary responsibility to act in your best interest while making investment decisions on your behalf. It is best to at least partially compensate the investment advisor based on his or her performance. In such an arrangement, the investment advisor makes a commission only if he or she meets your investment goals. Be wary of investments that pay a large upfront fee to the investment advisor or lock you into investments that levy a withdrawal penalty.

Check credentials and references

It is important to check references and credentials. For example in the US ask for 'Form ADV' for the advisors, which provides you with the advisors background, services offered, mode of payment and strategies used. Form is obtainable from the advisors, the SEC, state security regulator or those advisors managing $25 million or more in client assets. Also inquire about the advisors educational and professional background.

Know how to evaluate your advisors

Once you have hired an investment advisor, remember to evaluate his or her performance at regular interval. It is also important to meet with them regularly to review short and long term goals and to adjust your investment portfolio. Apply the following standards for evaluation.

Review performance: Check regularly how your money is doing in the investments advocated by your advisor. Evaluate portfolio performance with regard to investment goal and risk tolerance for invested assets. Use a proper benchmark or metric matching your investment strategy for various assets. For example if you have invested in stocks, use the market index as the benchmark for comparison.
Cost-benefit ratio: Though your money maybe doing well, it is important to ascertain the ratio of investment return delivered by your advisor to his or her earnings. Are you paying more than you thought for the investment return?
Quality of investment recommendations: Evaluate and test your advisors knowledge of the latest investment approaches, preparedness to stay above the rest in the changing market and insights or suggestions on new investment strategies.
Working relationship: Your investment advisor should regularly communicate and update you about your investments.
Personalized service: advisor should regularly review your investment goals and preferences and tailor the investments accordingly. You should be wary of investment advisors who show too much reliance on software programs to create your portfolio.

Hiring a good investment advisor is important to secure your financial future. Hire someone you can trust and can easily communicate with. If you advisor does not perform as expected, set up a meeting to rectify the situation else find someone who could be more helpful.

Daljeet Sidhu is Co-Founder at TradeSeam.com, a business network and B2B Marketplace, connecting customers, suppliers and service providers; all who have an interest in accelerating the growth of their business. Compare price quotes from multiple Investment Advisors. If you are a supplier, join the TradeSeam Business Network to receive qualified sales leads. If you are a buyer, visit the TradeSeam B2B marketplace to compare price quotes from multiple sellers of goods and services for your business.

Article Source: http://EzineArticles.com/?expert=Daljeet_Sidhu

Back To Insurance Contents

Back To General Contents ( Home )

Back To The Top

Update Npv. 17 -2009 All About "Financial Investing" By Insurance Experts

2009-11-17T06:31:00.000-08:00

By Michael Russell

To determine the viability of a company can be a lengthy and complex process. A quick way to narrow down the selection process would be to evaluate the financial strength of the company and the effectiveness of its management team.

Financial ratio consisting of current ratio, debt-equity ratio, price-earning ratio (PER) and return on equity (ROE) is one quick way to check the status of a company.

Current Ratio

Current Ratio is an indicator of the company's debt-paying ability over the short term (12 months or less). It's determined by dividing the current assets by the current liabilities. If the outcome is between 1 and 2.5, the company's financial situation can be considered as healthy. Even tough, the higher the ratio, the more liquid the company, however, anything over 2.5 would indicate that the company may be keeping too much cash and may not be investing enough to provide future growth.

It's probably also useful at this point to calculate the interest coverage ratio, which will indicate the company's ability to service its debt. Interest coverage ratio is income before interest and tax divided by the interest expense. The greater coverage, the better it is.

Debt-To-Equity Ratio

Debt-To-Equity Ratio is an indicator of a company's long term financial leverage. It compares the assets provided by the creditors with the assets provided by the shareholders of the company and is determined by dividing the long term debt by the shareholder's equity.

The track record of the management team can be determined by using the following ratios:

Price-Earnings-Ratio (PER)

The Price-Earnings-Ratio is the relationship between the market price of the company's shares and the earnings per share (EPS). This ratio tells you what you would be paying for each dollar of earnings. To work out the PER; divide the share price by the EPS. Generally, a high PER would means high projected earnings in the future. However the PER actually doesn't tell us a whole lot by itself. It's useful to compare the PER of companies in the same industry, or to the market in general, or against the company's own historical PER.

As earnings tend to fluctuate from year to year, consider using the average earnings over the last six to ten years rather than for a particular year. It's more valuable to look at the PER over time in order to determine the trend.

Return On Equity (ROE)

The Return On Equity encompasses the three main areas where investors can assess the company's profitability, asset management and financial leverage. ROE represents the management's ability to balance these three pillars of corporate management and investors will get a feel of whether they'll receive a reasonable return on equity and assess the management's ability to perform.

ROE is determined by dividing net income by shareholders' equity. Net income is the last item listed on the income statement while shareholders' equity (the difference between total assets and total liabilities which is located in the balance sheet).

By working out these ratios, investors are able to form an evaluation of a company's financial strength, its management and employees. However, these ratios should only be used as a guide only. They should also be viewed in conjunction with each individual's objective.

For instance, if you were a value investor, you would consider a company with a PER of 30 to be too expensive. However, if you were going for growth, you would consider the company to be viable investment if it had an ROE of over 25 and its earnings were still growing rapidly.

Michael Russell

Your Independent guide to Investing

Article Source: http://EzineArticles.com/?expert=Michael_Russell

Behavioral Finance - A Guide to Smart Investing

By Allen Giese

Many investors have bad habits: taking too much or too little risk in their long-term investments; panicking and selling following a large market drop; and chasing returns by buying last year's winners. The study of "Behavioral Finance" provides insight into why investors so often make expensive mistakes... and then make them over and over again. The study of how psychology affects finance lays out some logical explanations for otherwise irrational behavior.

In his book, Beyond Greed and Fear (Harvard Business School Press, 1999), author Hersh Shefrin describes common patterns in investor behavior. A principle behavior, he states, is that investors rely on rules of thumb, or judgments based on stereotypes.

Beware the Rule of Thumb

Traditional finance assumes that investors will make objective decisions based on unbiased data. In contrast, behavioral finance asserts that investors often rely on rules of thumb to make their decisions. Because these rules of thumb may be inaccurate, investors end up making bad decisions.

The classic faulty rule of thumb is the belief that past performance is the best indicator of future performance. Subscribers to this fallacy chase hot funds in the mistaken belief that performance over a period as short as a year indicates that a fund manager is skilled, not lucky.

Here are some more flawed rules of thumb:

Losers keep losing. If a stock in your portfolio goes down, sell it;

- Winners keep winning. Buy more of the stocks that are going up;
- Small cap stocks and foreign stocks are too risky for the average investor;
- There are stock pickers who consistently beat the market
- There are fund managers who consistently beat the market

Operating with rules of thumb like these makes it all but impossible to construct a strong portfolio, or to properly maintain it. Perhaps the most common mistake investors make is simply trading too much. They believe that investing means trying to pick the winners, and they try with great vigor.

Academic studies tell us, however, that frequent traders generally earn mediocre returns. One study was conducted by Brad Barber and Terrance Odean ("Trading is Hazardous to Your Wealth," The Journal of Finance, April 2000). The authors looked at the trading histories of more than 66,000 investors over six years ending in 1996. They found that those that traded the most had the worst returns.

In fact, the most active traders earned average annual returns of 11.4%, while the overall market return was 17.9%. How much is that difference worth in dollar terms? Applied to a starting balance of $100,000, the lower return would cost you $77,464 over six years.

Why do investors engage in this kind of destructive behavior? Cognitive dissonance is one reason. People tend to see evidence that confirms their beliefs, while dismissing evidence to the contrary. An active investor earning an 11.4% return might conclude that she did well because her accounts grew. She ignores evidence of how much more she could have earned with a simple buy-and-hold strategy, and may even consider those who got the higher return of being greedy.

Keeping on Track

We recommend three important guidelines to avoid making common behavioral investing mistakes:

1. Create a long-term plan - and stick with it. A sound investment plan will maximize the probability of achieving your most important financial goals. The plan should spell out your long-term needs, objectives and values; define risk tolerance; establish a time horizon; determine rate-of-return objectives; describe the asset classes and investment methodology that will be used, and establish a strategic implementation plan.

The plan should be monitored and adjusted based on changes in your personal economic status or goals. Market fluctuations, hot tips, and forecasts should never drive your plan.

2. Look at the big picture. Always put performance in perspective. Individual investments should be examined not just in context of overall market returns, but also as part of the larger performance over time. The goal is to capture full market returns over a long period. You may not have positive results every quarter, but you will still be on track to achieve your financial goals.

3. Keep your costs low. Your goal should be to implement and maintain your strategy at the lowest possible cost. There are many no-load, low-fee funds out there, so why spend more on a high-fee fund?

Northstar Financial Planners is a fee-only investment advisor, devoted to a structured asset class investment strategy. Allen Giese has been a financial advisor for over 17 years, working with professionals, business owners, executives and retirees. He is founder and President of Northstar Financial Planners, Inc. Prior to founding Northstar, Allen had worked in the securities and insurance industry, working as an agent and representative. He has also owned businesses in the retail sector and was a professional violinist, having received his degree from the University of Miami in violin performance. He continues to play music with his musical friends.

Article Source: http://EzineArticles.com/?expert=Allen_Giese

Back To Insurance Contents

Back To General Contents ( Home )

Back To The Top

Update Oct. 30 -2009 All About "Financial Investing" By Insurance Experts

2009-10-29T22:27:00.000-07:00

By Wendy Polisi

After you have determined what your financial goals are and calculated how much time and money will be needed to reach them, the next step is to make your efforts part of your regular lifestyle. This is basically a matter of discipline and training yourself to continue laying aside or investing money on a regular basis. This is where many people have a problem. Knowing what you want and how to get it means nothing if you are unwilling to stick to the plan.

Most plans developed to meet long-term goals require you to save or invest a set amount of money each month. If you have broken down your long-term financial goals into smaller, shorter term milestones, you should know exactly how much you should have saved or invested each year and, therefore, how much to dedicate each month to the plan. This amount should be reasonable: not so much as to leave you wanting, but not so little as to make no real advancement.

Beyond laying aside money, you should probably be investing it to get a more favorable return over the long run. Generally speaking, investing in the financial markets pays off if you have a well balanced portfolio. The good thing about long-term goals is that if you invest for them, you have the time to deal with normal market fluctuations. This means that if the market takes a downturn, you can continue to hold your position until things stabilize. The basic "dollar cost average" principle says that as long as you are investing the same amount on a regular basis, you will buy more shares when the price is low, and fewer when the price is high. Over a prolonged period of time this almost always results in a lower cost per share.

Steadily investing your savings into the financial markets should also be diversified and allocated properly. Diversification means investing in many different stocks or bonds, a strategy that significantly increases the chances that at least some of your assets will perform very well. Asset allocation relates to holding different types of securities: not just stocks, bonds, or cash assets, but some of each. If all your stocks decline in value, there is a good chance that all your bonds will increase in value. The whole idea is to keep everything as balanced as possible while continuing to make your new contributions each month.

If your goal is retirement, investing through the medium of an Individual Retirement Arrangement (IRA), Roth IRA, or employer sponsored qualified plan is also an excellent idea. These allow you to invest before taxes are deducted and the money in these vehicles is only taxable once you reach retirement age and begin withdrawing the money. Many of these plans also allow you to borrow from them, meaning if an unexpected emergency arises you still have access to some of this money, even without paying taxes on it.

You can probably figure out a lot of investment ideas yourself with a little time and research, but if not, there are many sources of information available on how to invest for your long-term goals. Having a good investment strategy and creating a well endowed investment portfolio can move you toward reaching your financial goals much faster than merely saving.

Wendy Polisi is the founder of Credit Repair College. Credit Repair College empowers people to learn do it yourself credit repair by educating them on all aspects of credit repair. Please visit them on the web to learn more about consumer debt settlement, credit repair and taking control of your financial future.

Article Source: http://EzineArticles.com/?expert=Wendy_Polisi

Investment Property - Best Option to Get High Financial Returns

By Lindsay Hogan

There are two ways to get financial returns over the real estate property, first one is in the form of rents and another one is in the form of capital gain on the sale of property, in a particular time frame. The rental could be generated from the residential home whether you are living or not. You can also rent out the spare rooms of your house where you are currently living. It is difficult to find out the reliable and friendly tenants. So, it is usually a better option to buy a separate property, which is used only for generating a rental income.

Property investing is a very tough job in the sense that sometime only expert can be successful in this field. There are various benefits of buying an investment property such as its value rises in the long term, relatively a safe form of investment as compare to the risk worthy investment like stocks, you can be eligible to get tax deductions in the form of depreciation on the value of investment due to obsolescence, you can enhance your cash flows as well by obtaining variations in the tax, in the form of rental income. When the interest on the loan of your property investors becomes higher than the rental income earned from same property then it called negative gearing and this situation can help you to reduce the tax return. According to the survey, the investment in the real estate sector would be the best option to get high returns other than investing in gold, shares & stocks, bank deposits or debts.

After all discussing above benefits, it would be a smart way to take an advice from the qualified experts in this field such as quantity surveyors, real estate brokers, financers and in some case accountants. This makes possible to maximize the benefits you going to receive from your investment property.

Lindsay Hogan is an Author, Real Estate Agent, Property Consultant, Property Investor, and gadgets lover. For More information on Investment Properties and Property Investing visit at: http://investmentpropertyx.co.uk/.

Article Source: http://EzineArticles.com/?expert=Lindsay_Hogan

Back To Insurance Contents

Back To General Contents ( Home )

Back To The Top

Update Oct. 11 -2009 All About Financial Financial Investing By Insurance Experts

2009-10-11T06:34:00.000-07:00

Life insurance or life assurance is a contract between the policy owner and the insurer, where the insurer agrees to pay a sum of money upon the occurrence of the insured individuals or individuals' death or other event, such as terminal illness or critical illness. Life insurance companies are never required by law to underwrite or to provide coverage to anyone, with the exception of Civil Rights Act compliance requirements. Life insurance contracts are written on the basis of utmost good faith. Life insurance is protection against financial loss resulting from death. Life Insurance is priced based on your health, family history and goals.

Term life insurance is the most basic kind of life insurance. Term is generally considered "pure" insurance, where the premium buys protection in the event of death and nothing else. Term policies typically provide coverage for 10, 15, 20 or 30 years, or until a specific age (for example, 65). Term- The most common and affordable coverage because it pays only a death benefit, and has no cash value. Term premiums are cheaper than premiums for cash value policies such as whole life, variable life, and universal life, which pay death benefits and also provide for the buildup of cash values in the policy.

With a variable whole life policy, the individual controls the investments made with his or her cash value account. There are many variables to consider, and to get the right balance of term length, benefit amounts, and policy riders and illustrations, you need to take a careful step-by-step approach to the buying process. Many variable life insurance policies guarantee that the death benefit will not fall below a specified minimum if the required premiums are paid, but a minimum cash value is not usually guaranteed. It is important to note that in both variable whole life and variable universal life, the insured bears the investment risk within the policy.

Life insurance may not be for everyone, but has become especially important for those individuals who have dependents. Life insurance provides money for your loved ones, or actually anyone you designate, after you're gone. Life insurance is unique among financial instruments.

http://www.investing2-make-money.com

Article Source: http://EzineArticles.com

Recommended Reading
Insiders Tips For Reducing Spending
Money Saving Tips And Ideas Covers
Practically All Areas Of Household
And Modern Living Expenditure

How to Save Money by Investing on Life Insurance
By Martin Lukac

A well-known adage says: "Money saved is money earned". Saving money by investing on life insurance has become a rage these days amongst all sections of the society. According to a recent media poll, most senior citizens like investing on life insurance in order to save money form being wasted. In this age of information technology consumer has really emerged as the uncrowned king of every business activity.

With a little bit of precision and proper market survey the best deal will invariably land in your lap. This new consumerist economy forced the life insurance corporations to emerge in its new avatar. Form being just life insurance corporations it has now become to money saving forums catering to the needs of its aggressive consumers.

Ways to save money when investing on life insurance-

-Always go for financially sound companies when investing on life insurance-Almost all companies these days sell life insurance. So, it is better to narrow down your search by going for only companies having good reputation in the market. Do not get lured by companies offering low premium rates. They may turn out to be a bad choice in the long run.

-Determine the right rate class-Once you have decided which companies you want to go for determine the rate class that suits you best. Most of the life insurance companies sell different price classes.

-Do a small market survey research to decide the standard premium rate- A small market research is crucial in determining the standard premium rates charged by life insurance corporations.

-Look into group insurance-Employer sponsored life insurance are perhaps the safest bet. It is advisable to go for it even it require you to shell out a few bucks from your own pocket. Employers of reputed corporations generally provide a subsidy on group insurance costs making it less expensive than individual life insurance. Make a comparison on group and individual rates while taking into account certain factors like health status, age etc.

-Paying premiums at small intervals is not a good money-saving tactic-Paying your premiums at small intervals may cost you much more than paying once every year or once every half-year.

-Get a good rate for yourself-Finding yourself a good rate may be a daunting task for you as many companies essentially offer different rates for the same policy.

-It's advisable to look for renewal guarantees-Always go for renewal guarantees. So, that after the current renewal ends you are able to start a new term and in the process save money.

Getting the right kind of deal and saving money by buying a life insurance may turn out to be a messy affair if you do not take proper precautions before venturing out to find the deal that suits you best. It is a good idea to get some handy tips from an industry insider so that you do not fall in a financial trap.

Saving money is all about making then right moves at the right time. So, throw all your financial worries at bay and invest on life insurance only to gift yourself and your family a life worth living.

Martin Lukac represents, life insurance marketplace which connects consumers with insurance providers who will help you develop a solid insurance plan.

Article Source: http://EzineArticles.com/?expert=Martin_Lukac

Investing In Life Settlement Is The Perfect Choice
By William Regal

The present insurance industry has plenty of schemes to make their consumer's life financially secure. However, most of the insurance companies offer insurance policies provide the policyholder with finest financial benefits but very few of them offer provision to settle unwanted polices. Life settlement is sale of unwanted life insurance policy in the secondary market; basically, this provision is made for seniors who are unable to pay expensive premiums of their existing policy. Since most of the financial institutions offer financial services for those people who are well to do and possess good source of income, retired seniors face difficulty in getting financial aid. Life settlement is capable of solving their financial problems, as it provides them with suitable finance to deal with their old age financial requirements. Basically, life settlement procedures are financial transactions that take place between the policyholder and inventor; however, settlement broker and Insurance Company also participate in the process of settlement but their participation is indirect. They just help the policyholder and investor in arranging required terms. From an investor's standpoint, investing in life settlement is a highly beneficial deal, as it provides him or her with the highest benefit at the time of policy completion.

Investing in life settlement not only gives seniors an easy way to arrange instant finance but also enable them to get rid of unaffordable premiums of their policy. There are few mandatory terms and conditions that need to be fulfilled for settling such policies such as minimum age limit, type and ownership of policy, number of paid premiums and face value. Usually, people who are more than 65 years and own a sellable life insurance policy can settle their unwanted policy. Investing in life settlement is definitely, a sensible decision, as it enables the investor to get supreme financial benefits from purchased policy.

It is quite true that the present money market is full of uncertainties therefore, every investor need to invest only in those plans that offer long term benefits. In fact, buying a life insurance policy is the most reliable long term investment, as it offers sure-shot benefits after completion of the policy. Sometimes, these policies become burdensome and get collapsed because of unpaid premiums; however, with life settlement this problem can be solved and the policy can be rescued from collapsing. Therefore, if you are planning to buy an insurance policy then always keep benefits of investing in life insurance policy in mind and buy a sellable policy.

For people, who believe in playing a safe side, investing in life settlement can prove to be a beneficial deal. It provides the investor with incredible financial benefits and allows him or her to get benefits like the previous policyholder. Since all policies are not sellable, always make sure whether your life insurance policy includes any provision for settlement or not. If your policy is not sellable then you can reschedule it, as it is the only way to save it from collapsing.

William Regal is an expert in dealing with life settlement. If you have any queries about life settlement,life settlement broker,life settlement insurance, Investing in life settlement, bonded life settlement visit: http://www.mylifesettlementbroker.com

Article Source: http://EzineArticles.com/?expert=William_Regal

Back To Insurance Contents

Back To General Contents ( Home )

Back To The Top

Update Sept. 11 -2009 All About Financial Financial Investing By Insurance Experts

2009-09-11T06:22:00.000-07:00

Start Investing Early to Achieve Financial Freedom
By Don A

Do you want to have financial freedom? Many people do and I'm one of them. Financial freedom is great because you can have the freedom to do whatever you want with your life. You can work whatever job you want at whatever time you want. You can even stop working if you want to. You don't work because you have to. Instead, you work because you choose to.

To achieve financial freedom, one important thing you should do is learning how to invest. By knowing how to invest you can greatly increase your chance to achieve financial freedom. It can make the difference between living from paycheck to paycheck your entire life and having financial freedom. That's because by investing you will make your money works for you. You won't just let your money sits on the bank doing nothing. Instead, you make it work so that your wealth grows more and more. Eventually, your wealth will reach the point at which you achieve financial freedom.

But knowing how to invest is not enough, you should also start early. The earlier you start, the better you chance to achieve financial freedom. That's because by starting early you will have the compounding effect works for your advantage. Since compounding effect has the potential to grow your wealth exponentially, the more time you have the more growth you can expect. That's why starting early is so important.

You need to start now. Don't wait until the situation is perfect for you to start investing. While waiting for the perfect time, you are actually wasting a lot of time to have the compounding effect works for you. People who start earlier will have been far ahead of you by the time you find the "perfect" time to start investing.

You don't have to start big. Start investing with whatever amount of money you can. Obviously, the more you can invest the better. But the most important thing here is time. Don't let anything get in your way of investing early.

Don writes about investing in his blog Learn to Invest Money.

Article Source: http://EzineArticles.com/?expert=Don_A

Investment Strategy to Start Investing
By James Leitz

You need a basic investment strategy before you start investing. First, concentrate on asset allocation. Then keep your diversification (balance) on track as the years go by. Here's an example of how to start investing with a sound investment strategy.

Drew decides to start investing, $5000 a year for twenty years. He wants to keep his risk moderate to low, and figures if his money grows at 6% to 7% per year on average that he will have about $200,000 in 20 years.

First, he deals with the asset allocation issue. How does he divide up the $5000 in various investment options? He decides to go with 1/3 in a safe investment that pays interest, 1/3 in bonds to get higher income, and 1/3 in stocks to get growth. This asset allocation makes Drew comfortable because it is a bit conservative and will give his portfolio considerable diversification. If stocks have a rough time of it for a couple of years, he can ride it out while earning income on 2/3 of his money.

Plus, he will invest money in the amount of $5000 a year, and doesn't need to worry about timing the stock market.

Now, here's an important part of Drew's overall investment strategy he does not want to overlook. As the years pass his asset allocation will get off track, since each of his investment options will earn different returns.

For example, let's say that in his first few years he averages 3% a year in his safe investment, 6% in his bonds, and 12% on average yearly in stocks. Drew looks at how much he has in each and sees that more than 1/3 of the total is now in stocks. The other two investment options each represent less than 1/3 of the total.

To get back on track (1/3 in each) his investment strategy requires him to move some money around, from stocks to the other two. In the future he will move money whenever he gets off track to keep the three investment options close to equal in value.

Ignoring your investments is poor money management. Drew does not want to just let things ride because he does not want to risk having much more than 1/3 of his money invested in stocks. At the same time, he does not want to have much less than 1/3 invested there either, because he needs some growth in order to average 6% to 7% overall in his investment portfolio.

Drew has made a financial commitment to himself to invest money. The only remaining problem is that he does not know how to pick stocks and bonds to invest in. Mutual funds are the simplest solution here. This way he has the advantage of professional money management and diversification within each of his investment options.

Very simply, he splits his money three ways: a money market fund, bond funds, and stock funds.

If Drew decides to get more aggressive or conservative along the way he can change his asset allocation to reflect this. Then he continues his basic investment strategy of keeping his new allocation on track whenever it gets out of line.

A retired financial planner, James Leitz has an MBA (finance) and 35 years of investing experience. For 20 years he advised individual investors, working directly with them helping them to reach their financial goals.

Jim is the author of a complete investor guide, Invest Informed, designed for average investors or would-be investors of all levels of financial background and experience. To learn more about investments and investing and his new financial guide go to http://www.investinformed.com.

Article Source: http://EzineArticles.com/?expert=James_Leitz

Back To Insurance Contents

Back To General Contents ( Home )

Back To The Top

Update August 13 -2009 Financial Investing By Insurance Experts

2009-08-13T04:55:00.000-07:00

Mutual funds make it appear they exist to grow your money. The reality is quite different. They need your money to grow their shareholders' money. There are multiple proofs of this. Read on to learn how they are doing it.

The second part of the conflict of interest that I see in the industrial investment complex (that's what I call the combination of fund managers, financial advisors, regulators and legislators), is what I call the economies of risk scale. As already outlined in a previous article, because they're publicly traded, their allegiance is to share price. Here is how the economies of scale work: If you manage a mutual fund, and if your mutual fund is, say, $1 billion in size, well, it doesn't cost you 10 times more to manage that mutual fund than it does if your mutual fund was, say, $100 million in size. Yet, the fees per dollar invested stay the same. In fact, their fees should be falling, because it just doesn't cost as much to manage a billion-dollar fund as it does a 100-million-dollar fund.

Another part of this is that there used to be a fund manager managing one fund. That's no longer true. Now fund managers work in teams, teams that manage multiple funds, maybe even dozens of funds. So the managers are cutting their expenses even more as their assets under management grow. If a real fiduciary relationship existed, their bills as a percentage of assets would also decrease. But their percentage never goes down. Less expense with more money under management always equals more profits. Because the investor is no longer first, the shareholder is. The investor is on his or her own; they just don't know it. The need to pursue profits of the fund family overwhelms responsibility to the investor. That's simply what the fund managers are paid to do. Since management fees are based on assets under management, it just makes sense that assets under management become the focus of the fund company, from the lowest clerk up to the CEO and board of directors.

Managers are people and marketers are people, and so naturally, their alignment is to their income and to their wealth. This means their attention is on the kind of short-term gains called "assets under management." "Get more money to manage" becomes their mantra. This is how the system works. More fees beget higher profits, which means a higher evaluation of the stock, which means a higher stock price, which means either a higher buyout or higher options with more profit in the options, which leads to very rich shareholders.

If there are board members and directors and C level people and managers with thousands, or tens of thousands, or hundreds of thousands in stock options, their allegiance will be to the share price and not the investor.

None of this has to do with growing and protecting the money, not one cent. While their job is to appear to grow and protect your money, it's really not. The more the fund managers appear to be doing something for you as an investor, the more they're really doing something for themselves. The fund managers do their real job so well so they can get the most out of this great investment opportunity. It's just not the investment opportunity of your lifetime, but theirs.

RC Peck, CFP®
Registered Investment Advisor, Founder of Fearless Wealth
Investment Education for Successful Professionals.
http://www.fearlesswealth.com

With over 20 years of investment success, RC Peck is a Certified Financial Planner, Registered Investment Advisor, and an NLP Practitioner, which means he knows what you should do to grow your money and how to get you to do it.

RC has recently released a special report called, "29 Minutes to Investment Success," which outlines "One Tool" that causes mutual fund managers to tremble and stockbrokers to weep with fear.

Discover how the "One Tool" can revolutionize your investments today. Click here to get the "One Tool" http://www.TheStockMarketStrategy.com

Article Source: http://EzineArticles.com/?expert=Ronald_Peck

Your Financial Advisor is Biased by Their Wallet
By Ronald Peck

When you work for a company, you do what the boss says. When you're told this is how to make a living, you do it. When you're shown how the top earners made it big, you go for it. Who can knock success, right? But your financial success depends on your attention here, because your financial advisor's best interest may not be what is best for you.

I want to give you an idea of the type of money that changes hands between fund family companies and financial advisors. Fund companies spend billions of dollars on financial advisors in the form of straight pay outs, fees, commissions, entertainment, trips, 12B-1 fees, direct brokerage fees, pay-to-play fees and supermarket funds fees. These companies would not spend billions of dollars if it weren't effective.

Financial advisors take these payments because it's just how most of them make a living in this industry. Financial advisors aren't dummies; they sell what pays the most, and not necessarily what is best for their client.

I am going to give an example of a financial advising company, just to show this point. There are many publicly traded financial advising companies. You shouldn't work with any of them, just like you should only buy actively managed mutual funds. The exemplar company is called Edward Jones. They sell mutual funds to their investors. They're not publicly traded, so they rank OK on that score. But the same forces are at work, and the general partners who are senior investment reps and other owners of the company take the place of the stockholders in a publicly traded company. Most people know them as financial planners or financial advisors. But what they may not know about this company is that they have a preferred list of the fund families that they promote. To be on that preferred list, the fund families have to pay dearly in fees and commissions.

When their employees go through training, they're only introduced to these seven preferred mutual fund groups. This company even goes so far as to discourage their employees from contacting other fund companies from outside the preferred list. In fact, employee bonuses are linked to the selling of the preferred list.

In 2004, this firm got caught, along with other financial investment companies. They had collected $300 million in secret payments. And 95 % of the time, they sold mutual funds on their preferred list. Because the company didn't disclose relationships with the preferred list, they had to pay upwards of $75 million in fines to reimburse investors. However, they got paid much more than what was given back to their investors. To put this in perspective, in 2005 alone, after the settlement of $75 million, Edward Jones received $172 million in revenue sharing fees from their preferred seven fund families. That was one-third of their pretax income. A third of their income comes from these fees.

That isn't objective or unbiased. It's not proper behavior for a fiduciary. All these years after the litigation, on their website they state, "We focus on the individual investor, not big corporations." In fact, this seems even worse, because their reps are right there in the communities they sell to. Even with these small offices based in local communities, profits were more important than their clients, which would demonstrate that the focus is on their owners and on profitability.

If you're planning to work with a financial planner, work with one who dies bit work for a publicly traded company - or a company that acts like one - because there's less likelihood of getting unbiased, objective advice. Also important to know is the kind of research that financial advisors do, because it, too, is presented as objective evidence that will make you more money. But for whom does this really make more money?

RC Peck, CFP®
Registered Investment Advisor, Founder of Fearless Wealth Investment Education for Successful Professionals.
http://www.fearlesswealth.com

RC has recently released a special report called, "29 Minutes to Investment success," which outlines "One Tool" that causes mutual fund managers to tremble and stockbrokers to weep with fear.

Discover how the "One Tool" can revolutionize your investments today. Click here to get the "One Tool" http://www.TheStockMarketStrategy.com

Article Source: http://EzineArticles.com/?expert=Ronald_Peck

All About Life Insurance and Financial Investing By Insurance Experts

2009-08-04T09:38:00.000-07:00

Back To Insurance Contents

Back To General Contents ( Home )

Back To The Top