Entries Tagged 'Investing' ↓

This market is truly full of ups and downs. If you need to make
money it’s not worth it to put all your eggs in this basket. If you think you
can do better by investing in stocks you might want to think again. Today the
returns on investments like certificates of deposit might even be higher if you
factor in all the costs of investing plus possible losses. The question is can you afford to have money in the market if the market goes down significantly? It’s very likely that we could
see another market crash similar to the one we saw a few years ago.

In terms of regulation and bank stability nothing has really
changed. Banks have just as much incentive to take risks with their assets as
they ever have. If you think your money is safe in the market, you should know
that the banks are using the market as their private casino. The individual
investor really doesn’t stand a chance against their fire power.

So what is a small investor to do? Where do you invest today, especially if you only want to invest with small amounts of cash?  First, learn as much as you can about your investment options today. Try investing a larger portion of your portfolio on safer investments, or hold cash to take advantage of a future drop in prices.  Today you might consider
putting your money in something that will earn interest. One of the safest
investments remains treasury bills. Today you can earn upwards of 3.5% or 4%  on a
30 year T-bill. Even know that sounds like a small amount the fact is you would
have a hard time duplicating that in today’s stock market.

You don’t have to invest directly in Treasury bills either in order to benefit. You can purchase ETFs that allow you to invest in treasuries without holding the actual mail. It’s
easy option which allows you to buy and sell your shares on the market just like a stock. Here are some ideas for investing in ETFs.

Just remember that your earnings are taxable as federal income
just like any other investment. This may reduce the overall value of your
investment, but the fact is your going to have the same issue with any other
stock investments.

Watching the market continue its rose can make anyone feel like this is another bubble coming on. Indeed many market watchers have said that’s what is going on today. While you want to make money when the market is hoing up, you don’t want to get caught with your proverbial pants down again when the market dives.

Today you might feel that there is more security in cash or cash equivalents, such as bonds or CDs. Many advisors suggest keeping a certain portion of your portfolio in cash is a good idea now.

Another idea is to return to the big, value socks, like Proctor & Gamble, McDonalds, or Verizon.  These are comoanies that pay dividends, and are big enough to weather downturns.

If you’ve been watching the market at all, you have probably been trying to decide whether to stay in or get into cash investments. The economy is still lagging, employment numbers falling, home prices dragging… it’s hard to figure out whether it’s even worth investing money in this situation.

Lately, many investors are moving into cash or things like gold, that do better in bad markets.  Keeping cash on the sidelines, in addition to some stronger investments as part of your portfolio, may be a good idea.  If you are not an experienced investor, who knows how to make money in down or level markets, you could get royally screwed by keeping money in index mutual funds for example.  The old saw about keeping money forever in a “good growth mutual fund” is a lot of hoo hah in markets like this, because the fact is these types of mutual funds have barely performed over 5% in the past 10 year period.

With so much uncertainty, if you are depending on a job for your income, you  might consider paying off debt instead of putting money in an investment account where you may or may not get 4% returns.  You could also lose your shirt.  Small investors are not the ones who will do well in this type of environment.  Many Americans are just paying off debt and saving their money, to make up for not being able to get credit, not getting raises at work, or getting their wages cut or even getting laid off.  Investing in this type of market is not always the best way to go.

If you really have extra cash you can afford to lose, it might be a good idea to look at the types of things that do well in an economy where people are not spending on big items, but have to purchase certain things like fuel, heat, and food.  International investments may also be useful to look at, since many retailers now are seeing no growth in the U.S., but finding their growth is coming from sales in Asia.

It’s worth taking a look at the variety of investments out there that could do well in a continued downturn, however keeping cash handy and getting out of debt continue to be priorities before earning low returns in a volatile market.

A few of the blogs we read across the Web contain some interesting investing ideas, some familiar and some which may be new to the reader.  Whether you’re looking for new investing ideas or just trying to find the best investment today, here are a few of our discoveries across the web for anyone who wants more information about investing.

1 -  From Buy Stocks Online Now:  Learning how to buy and sell stocks takes time and research. There is a lot of good, informative information out there, and just as much that is out dated and inaccurate. Take the time to seek out books and websites that offer up to date and detailed information.

2 – The Biz Hunter offers this item:  Forex investment can be risky, but also very lucrative.  Critical skills are needed to profit in this highly competitive investment landscape, but these skills can be acquired through education, training and practice trading utilizing virtual (demo) accounts from the right broker. There is money on the table for those who can follow a system, control their emotions and practice good money management methods.

3 – This sounds interesting from Reveal Real Estate: Belize often flies under the radar as a property investment destination.  It’s known more for its diving.  But investors interested in Caribbean property should take notice.  Belize real estate is available at prices far below the more established parts of the Caribbean.  The areas that are attracting the most investor interest are Ambergris Caye, Placencia and Corozal.

4 – From Dallas Investment Property Guide:  A volatile stock market has sent individuals looking for more secure investments.  As the saying goes, “Buy land, since they’re not making anymore of it,” real estate is a time tested investment, especially income properties over time.  Dallas investment property is no exception, as Texas remains a stable economy.

7 - So You Want to Be a Real Estate Investor:   Have you been thinking about buying investment property for a long time?  Have you read all the books and watched all the infomercials, but just didn’t know where to start?  Here are some quick steps to get you started toward your investment property dreams.

Putting aside money each month for an emergency is a smart thing to do, but sometimes something can come up last minute for which you need money right away. Or, you suddenly realize that a looming expense, such as college or a new car, is here, or arriving very soon. If you need to know how to save money fast, here are a few ideas to get that nest egg started or growing within thirty to sixty days.

Two Ways To Save

There are only two ways to save. Spend less than you bring in, and bring in more than you spend. Many people focus on the first more than the second, but if you can do both at the same time, you will make money fast as well as save money quickly.

Start With A Budget

Everyone loves to hate budgeting, but it’s truly the only way you can control what you’re spending. You need to allocate the money you have coming in, and see where you can cut. Don’t make it into a huge project, but take an hour or two on a weekend to make a list of everything you spend. Give it a category – shelter, clothing, food, fuel, utilities, insurance, medical expenses and miscellaneous are good broad categories. Then look to see where you are spending more than you need to, and cut there. Can you reduce your cable or phone plan? Can you turn down your thermostat to cut electricity? Can you take $100 off your food spending by cutting out fast food or junk food? Making meals at home, switching to one vegetarian meal per week can help cut your food bills.

Start Saving The Right Way

You need to open a savings account that you can’t easily withdraw money from. Stop in a local savings bank and open an account. You may be able to get a debit card that you can use only for deposits and not withdrawals – you don’t want to carry around plastic you can use to buy things with. Many banks still offer passbook or statement savings – you don’t have to get the debit card!

Each week when you come in under budget, put the extra into the savings account. Each time you skip an impulse purchase, add that amount to savings. If you don’t want to go there every day, keep a jar at home where you put the extra money, so you can see how much you’re saving. Or, you can open an online savings account with many banks, such as ING, and transfer the money you’re saving from your checking account. Some investment companies, like TD Ameritrade, also have money market accounts you can open for little or no fee per month, with no minimum balances. Look for their Suze Orman account which offers bonuses and promotions if you open with $100. This way you can also invest your money.

Earn More Than You Spend

By now, you should have at least an extra $25-50 per week you’ve been able to cut from your budget. If you’re really good at cutting, then you may be saving even more. But the way to boost your savings is to find more money to put into the account. How can you make fast cash to save more?

The easiest way is to sell some stuff you have around the house. Everyone has things they can get rid of in a yard sale or on eBay. Old furniture, CDs, computer parts, clothing in good condition, kid’s toys, electronics and appliances – the list is endless. You can make a few hundred dollars at a well-planned yard sale or garage sale. Smaller items that are easier to ship might get more if you sell at an online auction. be sure the cash you earn goes right into savings.

You can also get a part time job, or work online. While jobs are tight right now, part time minimum wage jobs are out there. All the money from such a job should again, go right into savings. If you want to work online, you can find online businesses who need writers or other freelance workers at sites like TextBroker, or Get-A-Freelancer or Rent-A-Coder. If you can write a letter to a friend, you can make extra cash writing for web site owners.

Put Away $500 This Month

If you’re really diligent, and willing to eat cheaply for a month, willing to forego the manicures and the car washes and the dinners at the fast food place, and if you hold a yard sale or garage sale and become a selling whirlwind on eBay, you can make $500 extra this month. Set that as your goal, and find a way to meet it. Open your new savings-only account, and get started. Once you have a nice chunk of money, find ways to keep saving (keep reading this blog!) and learn to invest your money – there are places to invest with just a little cash to start. Watch as the savings you have continues to safely grow at a good rate of return. Soon you’ll have that nest egg built up as well as your wealth-building mentality, to last for a long time.