Determine Where You Will Invest

There are several different types of investments, and there are various elements in determining the place you should invest your funds.
In fact, figuring out where you'll invest begins with researching the assorted out there forms of investments, determining your threat tolerance, and determining your investment fashion - alongside together with your financial goals.
In the event you had been going to buy a new car, you would do fairly a little bit of analysis earlier than making a final determination and a purchase. You'd by no means take into account buying a automobile that you had not totally regarded over and brought for a take a look at drive. Investing works much the identical way.
You'll of course be taught as much concerning the investment as attainable, and you'll need to see how previous investors have finished as well. It's frequent sense!
Studying in regards to the stock market and investments takes numerous time... but it's time nicely spent. There are numerous books and websites on the topic, and you may even take school degree courses on the subject - which is what stock brokers do. With access to the Web, you possibly can actually play the stock market - with pretend cash - to get a really feel for the way it works.
You can make faux investments, and see how they do. Do a search with any search engine for 'Stock Market Games' or 'Stock Market Simulations.' This is a great technique to start studying about investing in the stock market.
Other kinds of investments - outside of the stock market - do not need simulators. You could find out about these kinds of investments the hard method - by reading.
As a possible investor, you need to learn something you can get your fingers on about investing...however start with the start investment books and web sites first. In any other case, you will rapidly discover that you're lost.
Finally, converse with a financial planner. Inform them your goals, and ask them for their recommendations - this is what they do! A very good financial planner can easily assist you to determine where to speculate your funds, and assist you to set up a plan to succeed in your whole financial goals. Many will even train you about investing along the way - be sure to take note of what they are telling you!

Active Or Passive Investment Management: The Pros And Cons

An ongoing argument in many investment circles is whether to take an active approach where you pick and choose which securities to buy and sell based on a fundamental, technical and other types of research, or whether you should take a passive approach where you stick with an Index and follow that passively, most often through an exchange traded fund (ETF) or an Indexed Mutual Fund.
There are some very compelling arguments for each management type, which we look at here. The bottom line, however, is that both require active monitoring but often for different reasons.
Active Management
In an actively managed investment portfolio, the investor will pick and choose which funds in which to invest. These portfolios clearly involve a lot more work for the investor given the amount of market and specific security research that will go into deciding which securities to hold, but the test of success will often get measured against an index, such as the S&P 500. For this reason, active portfolio managers will often be sure to incorporate many of the index's bigger names in order to provide several key, core holdings.
The management of actively managed portfolios is intensive as well and it requires considerable discipline. Since the success of any portfolio is often attributed to one's asset mix, making sure higher growth assets are trimmed at times when it might "feel" better to let them ride is not an easy decision. And knowing what to do with the excess capital once those positions have been trimmed is not so easy, either. With active management, you are a lot more active.
Passive Management
Although passive management implies that an investor puts money into and index fund and leaves the portfolio alone for thirty years or however long one decides, this is not the case. For passive investors, there will always the matter of rebalancing their overall portfolio so that they are not overexposed to one asset class or another. However, the bigger risk is investing in the wrong index. So while passive investment management means eliminating the need to pick individual securities, it does not let the investor completely off the hook. Given the sheer number of equity indexes out there, figuring out which one works best and at which time (remember, they are still equities) is the tough decision.
In other words, the analysis and decision making remains, even with index investors, but the scope and type of analysis is quite different. In some ways, it could be easier, but the investor will likely take a more macro view of which segment or index is likely to perform well.
For investors that really want to be passive, sticking with a broad index, like the S&P 500 index, can certainly make sense. However, with the returns such a broad index has returned compared to others, it may make more sense to get into an actively managed mutual fund instead, where security selection is looked after and where many have returned much better than the index.
Summary
Deciding whether to be an active or passive investor is not an easy decision. Both require a fair degree of discipline and at least some time to monitor the progress and performance of the portfolio. Working with a professional planner is often the best solution in both instances.

Put Your Investing on Autopilot

If you have never invested money and you do not know how to start, there is no reason to feel intimidated.
It is actually very easy, but there are several steps to make sure things go smoothly.
The first step is to search online for "discount broker".
There is a long list of companies that include Vanguard, Schwab, ThinkorSwim, TradeKing, Fidelity and Scottrade.
Any of these well-known companies is good for beginners.
Steps to Follow
1. Select an investment company. Then look to see how much the company charges to invest in mutual funds. If a company offers its own fund, there should be no charge to invest in that particular fund. Fidelity, for example, will not charge if you put your money in a Fidelity fund, nor does Vanguard charge to invest in its fund. Some companies, also, do not charge for ETFs.
2. Ask about the minimum investment required by the company. For investors who enroll in their automatic transfer program, some companies waive the initial minimum investment.
3. Look at checking and saving account options and decide which account will be used for the investment money.
4. One option is to set up automatic transfers and have a designated amount transferred from the bank account directly to the investment company at regular intervals.
5. Another alternative is to send a check or manually transfer money from the bank directly to the investment account. This method is less reliable because it requires more discipline, and it is easy to FORGET, STOP, or AVOID. Automatic transfers are a much better way to invest. You will, also, become wealthier with this strategy.
6. Forms for all of these transactions can be found on the website of the company, or they can be obtained from a company representative.
7. For each fund, be sure to list the percentage of of money deposited on the automatic transfer form or investment deposit form. For example, 65% to stocks, 15% to bonds, and 20% to market cash fund.
When you make automated transfers, you are increasing your chances of reaching your goals.
A good way to make sure the money is available to invest is to have it transferred immediately after receiving a pay check.
This will ensure there is money available and that it goes directly into the investment account.

Importance of Investing GloballyImportance of Investing Globally

Several recent reports point to the popularity of investing outside of the domestic markets. In fact, investment funds that focus solely on domestic equities have seen over $58 billion pulled from them and invested elsewhere, particularly in more "popular" investment niches. One of those popular niches is global equities. Whether investors are investing this way on purpose or not is a matter of dispute, but it is still very important for investors to diversify their holdings based on geography. This type of diversification (also known as foreign content holdings) allows for several benefits, three of which are discussed here:
1) Geographically speaking, even in a world economy, markets will typically recover and expand at different times. This has been particularly true this past year where domestic markets struggled to gain traction while other regions were able to return gains in the double digits. Some of those hot markets include Latin America and many developed, European markets. At the same time, the Standard and Poor's 500 frustrated enough investors that nearly $60 billion was taken out of domestic equity investment funds.
2) Dividends. Interestingly, the concept of dividends has gained tremendous popularity recently. The idea of getting paid (albeit marginally) while waiting for equities to appreciate in value is nothing new. However, when market returns are fairly stale and bond yields are at historic lows, even stock dividends below 3% can be appealing. With so much more attention being focused on dividend yields, it makes sense that investors might want to look globally where more than half a dozen developed markets pay, on average, much more than our domestic equities pay, on average.
3) Opportunity. In a period that has been wallpapered with fears of a "new normal" involving low rates of return, it makes more sense than ever to diversify one's investment portfolio globally. While domestic markets may indeed struggle for growth or, worse, contract due to saturation or whatever other flavor of the day one might read about, developing countries throughout the globe will exhibit greater growth characteristics, period. Countries like China, India and Brazil in particular are experiencing tremendous growth while their population and growth middle class struggle to "keep up" with the standards set by the rest of the world that virtually every sector in these countries stands to benefit financially. Even profit-chasing investors know this because they have seen big returns in these international markets.
These are just three reasons why investing globally makes a great deal of sense for investors. The trick is finding the right investment that will satisfy one's appetite for risk while sticking to an overall investment portfolio's investment policy.

Chris has more than 17 years of financial services experience. He enjoys writing about investment related topics. He also manages a website about Novaform Mattresses at NovaformMattressSale.com and another about Class B CDL Jobs at Class-B-CDL-Jobs.com

7 Easy Ways to Earn a Little Extra Money7 Easy Ways to Earn a Little Extra Money

In today's economy, every little bit of extra money helps. And you don't have to get a second job to add to your income. The online world makes a variety of opportunities available to you, whether you have a little bit of time to spend on a side venture - or a lot.
1. Sell your handmade goods. If you're a crafter, explore the world of Etsy to see if you can make extra money selling your handmade itemns. Spend a few hours exploring this site and see all the potential - from woodcuts to papercrafts, to knitted baby booties to ceramics to photographs. If it's handmade, chances are you can sell it here. And Etsy has great advice and ideas for helping you market your wares, as well.
2. Try your hand at direct sales. These companies have already laid the groundwork so you can work just a few hours a week. They are just for people like you who want to earn a little extra money without investing a lot of time or capital into a new business venture. And there are direct sales companies and opportunities in a huge variety of niches, from cookware to scrapbooking to lingerie to home furnishings to food.
3. Freelance. Whether your skills lie in writing or programming or graphic design, see if you can get some on-the-side freelance gigs. Check the online freelance sites, such as elance and guru, for opportunities and ideas.
4. Tutoring. Help students learn in a subject that you're passionate about.
5. Teach a class. Whether through a local community center or in a more casual setting, explore the possibilities of teaching other people more about a subject or skill that you have experience with.
6. Offer a service. What do you love to do? Teach piano lessons. Offer landscaping advice. Start a consulting service. Brainstorm ways to make your life experience work for you. It's important to not be intimidated by the process. You aren't launching a business - just trying to earn some extra money on the side.
7. Sell your old stuff online. Online auction sites (such as eBay) and online classifieds sites (such as Craiglist) offer unprecedented opportunities for you to take items you have cluttering around the house and sell them. When you're out of the items around your house, look for other items to sell: consider finding items from dropshippers, importing Asiatic items, or selling items that are unique to your local area.
If you have kids, you might want to make earning extra money a family project, with the money going toward a common goal, such as a family vacation. Everyone will enjoy the fruits of their labor, and it gives kids a great lesson in entrepreneurship and fiscal responsibility.
Take inventory of your personal skills and think outside the box to see if there's anything you can do to earn a little extra. Now is a great time to be enterprising.

You can also save money on the things you buy every day with these handpicked coupons codes and email savings alert.

Easiest Way to Earn Money Without Investment - My Recommendations

Even though the worst of the recession seems to be over, people are still losing their jobs everywhere. Which is probably why you're looking for the easiest way to earn money without investment. Either you were (un)fortunate enough to lose your job, or you realized you'll only have financial security when you take matters into your own hands. Well, you've clicked on the right article. I'll give you a short overview of ways to earn money, mostly online, that don't need you to invest any money.
The most popular ways to earn something on the side online are things like paid surveys and email. Unfortunately, a lot of the sites that offer these paid to services are scams. Not only that, you won't be able to replace your full time income with it. If you want to get your feet wet online, then you can try these methods to earn a few extra bucks. On the whole, I wouldn't waste my time though.
Setting up a free blog on sites like Blogger is another easy way to earn money without investment. Quite a few popular bloggers are making 6 and 7 figure incomes by blogging. However, it's not as easy as some make it out to be. You will have to post regularly, like every other day. And you will need to build a huge group of followers if you want to make some serious money.
Depending on your skills, you could consider freelancing. All over the world, online and offline, people are looking for someone to do a certain job for them. These jobs are very varied, so don't dismiss freelancing right away. A few examples of freelance jobs are writing short articles, creating graphics, web design, product development, building links, bookkeeping, tutoring, customer service, posting in forums. There are plenty of specialized freelance websites to find jobs. But you could also check out classified ads. You can choose the jobs that interest you the most, so it doesn't seem like work too much.
Article marketing in my opinion is the most interesting and easiest way to earn money without investment. It's also the most sustainable in the long run. You can write articles on free sites that will share part of their ad revenue with you. Even better is adding affiliate links in your articles. Every time a reader clicks on the affiliate link and performs a certain action, like buy a product or submit an email address, you receive a commission. Eventually, you'll want to invest your revenue into setting up your own sites so you have more control over your content and income.
The reason I'm a huge fan of article marketing and follow this strategy myself, is because it can be done for free and you'll keep earning money, even if you stop working on it. If your articles are still online 5 years from now, they can still bring in some extra cash. I'm still making some money from articles I wrote 3 years ago and haven't touched since. And you get to write about things that interest you.

As you can tell from this article, I think the easiest way to earn money without investment is article marketing. If you're interested in getting paid online for writing, take a look at my site. You'll find lots of good advice and tips to get you started today.

Investing in Property in Today's Market

Of the five different areas of investing your money, after cash comes property. Many people believe that the property they live in is their biggest and most important investment. Whilst this may be true, and is true if you have no mortgage, it isn't really your property as long as you have borrowed money to buy it.
In many respects it is the lender's investment because his asset will grow in value. He gets your money and invests it as well. You may well argue with some justification that the house is your asset, and when you sell it for a better price than you paid for it, that your asset will have appreciated. In fact many others will argue that your home is a liability!
Property as an investment really means looking outside and away from your own property. Bricks and mortar are as good an investment as any, and indeed better than most. Do not be put off by a short term loss in property values. Anywhere that land is scarce as in the UK will mean a long term gain in value.
There are a number of ways to invest in property.  The first and most obvious is to buy, and then let. In other words you own the property and the tenant who lets from you pays your mortgage. Don't necessarily feel you have to show a profit in your monthly income from the tenant over the cost of your mortgage. Think of capital appreciation of the property before the income from the rental. That is as long as the rental income and the mortgage costs cancel each other out.
At the end of the day if inflation is running at 5% and the property appreciates by 10% in the year you have created a winner.
You could also of course buy into a property fund, one that is run professionally, so it is very much hands off. IT is possible to do this through specialist Unit trusts and even personal pension plans. You could buy shares in property companies, but if the property market goes flat, then the share price will reflect this, and even successful property companies go to the wall.
In the long term property remains a very good investment.

A Perfect Retirement Investment Plan for Women

The first is the fact that women are paid less for the same job in the modern workforce. While this margin has been getting smaller and smaller over time, it's still significant. In a recent study by the United States Department of Labour, women were shown to earn 24 percent less than men for doing the exact same job. This can have serious implications when it comes to investing for retirement.
The same study by the Department of Labour also showed that women, on average, spend less time working than men. A gap of seven years was present in the study due to time that some women take off to have children, raise a family or care for elderly or sick parents. While the obvious impact to the amount of money earned in a lifetime is obvious, there is also the impact on any sort of savings plan through work, as well as less social security.
As if that wasn't bad enough, the last United States Census showed that women are living an average of seven years longer than men. So, not only are women earning less and in fewer years in the workforce, they also live longer which means they need to save more for retirement.
What does all this mean? It means that women might need to take a slightly more aggressive path toward investing for their retirement. It also means that women need to start even earlier than men to start saving and investing. Other good tips are to set different goals than your husband, since your set of circumstances are different. You might also want to have even more diversification in your portfolio than most so that if some of your investments go sour, you won't be left with nothing. It's also a good idea to stay on top of your investments. Reviewing them on a regular basis lets you know where your doing well and where you might need to make changes.
While it's unfortunate that a woman may need a completely different investing plan for retirement than her husband, the fact remains that there are forces conspiring against women in the workplace. But with the right strategy and the proper goals, everyone can enjoy a healthy and prosperous retirement.

Deadly Traps For Novice Investors

Investing is not just a fastest way for the wealth generation but is also a smart way of making the money work for you. Though many persons advice us to invest, but the reality is that not many are aware of the requisite knowledge or have required skills for making sound decisions on the investment.
Working closely with the experts in this field is the safest and fastest way to gain knowledge but main problem here is that "someone else" is managing your dollars. You have to be careful in all this. You should realize that the money to be invested is yours and thus investing is also your responsibility. It is a fact that nobody can look after your money in a way you yourself can.
When we discuss investing we can quite often get influenced by the estimated earnings or the prospective growth. We also get carried away when we see our stocks or funds performing well.
You should pay specific attention of two aspects as they can turn out to be death traps for any smart investment.
1. Fees
I've been insisting on you to start making investment yourself without seeking any help from the financial advisors because of the large fees which is involved.
These financial advisor or fund managers are all here in this business to make money and these guys don't make money by investing their own money but instead earn the money by charging the fees for investing your money. Now this fee can sometimes take a large chunk of your margins as there are fees for each aspect of the investment.
You should make sure as to what you will be charged for and when to minimize your expenses as much as you can.
2. Taxes
It is a fact that taxes make a large part of your investment strategy and in several ways these expenses should be paid particular attention.
You revenue service charges a capital gains tax (tax on the profit made by you on your investment). It greatly varies from a nation to nation. If you are from European country and are trading in the United States, then you will have to check this minutely as you may have to pay lot of taxes.

3 Investment Strategies for Today's Investor

Although it may not be so evident from the volumes of materials that have been written on the subject, investing is an evolving activity that changes from one year to the next. Gone are the days of simply investing in a term deposit that allows you to compound your interest payments and over the course of ten years you will have doubled your principal. As a result of falling interest rates over the past two decades, investment strategies have shifted and have become more "advanced." These days, the following three investment strategies can be used to enhance your investment portfolio's returns over the short-, medium- and long-term.
1. Diversification. Expanding your investment portfolio to include non-traditional types of investments is virtually mandatory in today's interest rate environment. Faced with low "guaranteed" rates, investors are having to look at marginally higher risk investments such as equities in order to enjoy the growth they want in their portfolio or other income-producing investments such as real estate if they want to enjoy greater monthly income.
2. Seek income paying equity securities. After the market troubles of 2007, 2008 and early-2009, many investors have returned to the fundamentals of equity investing which states that investing it is wisest to invest in equities that pay dividends. Not only are such companies often better capitalized and can generate steady amounts of cash to pay those dividends, but they are less likely to fail given their leadership in a particular industry or sector. With a closer eye on risk, investors have not only invested in more-solid companies but in companies that pay income as part of the equity offerings.
3. Invest on a regular basis. If nothing else, hindsight has consistently taught us that we would be better off today if we had invested everything we owned at the utter bottom of the market correction. This will always be the case. The problem is that we are not very well equipped to determine when that bottom actually happens. One way to avoid this is through regular investment contributions, whether it is splitting a lump sum over the course of a 12 month period or investing a pre-set amount with every paycheck; investing money on a regular basis allows even the most conservative investors to pay an "average" price for their investments. The end result is that over the long-term they will have paid much less than if they had tried to time the market with less frequent investment contributions.
These three investment strategies are fairly popular and comprehensive given today's market situation. By investing this way, investors can expect to reap long term rewards. The only caveat is that investors should expect to make changes to their strategies along the way.

5 Reasons Your 401k Is a Financial Prison

Imagine being locked up in a dark cell, and you can't leave. You don't choose where you sleep, what you eat, or even what clothes you want to wear.
Sure you can get out, but not for decades? Who knows where you will be then, and all the opportunities you might have lost.
Welcome to 401k: Financial Prison.
Does this sound familiar? Every year millions of Americans blindly throw money into their 401k prison, and they don't even know what is going on behind those walls. Well here are 5 reasons why your 401k just might be your financial prison.
The Sentence: Your 401k has been sentenced. You cannot take it out until your are 59 1/2, unless you pay a severe penalty. All this time you are losing out on all the opportunity and wealth your money could be creating you outside these walls.
The Warden: Most people don't even understand where their 401k money is being invested. Many 401k's are poorly invested in stocks and mutual funds that are losing money. Instead of being in control of your money, someone chosen by your company is deciding what investments are best for you.
The Penalty: Sure you can pull your money out of your 401k, but it is going to cost you. There are severe penalties for taking your money out of your 401k, and many companies have hidden fees and policies that you aren't even aware of.
The Government: 401k's are under government control. We have a national debt and a spending craze that is only getting worse and worse. Where the government giveth, it taketh away. Your 401k is under risk of future government decisions and possible added fees.
The Taxman: You finally complete your life sentence. Now it's time to pay the tax. It's safe to say taxes are going to be higher when you retire. Couple that with inflation and your in for trouble. Many people are finding themselves with less money then they planned on. Their 401k retirement has left them short of their retirement dreams.
Your money is your money. You need to be in control. Understanding your 401k is a great step towards financial freedom. Contributing up to your match can be a great move, if you understand what you are getting into. However, understanding all your options will help you make the best choice when it comes to your short and long term investment goals.
There are other investment alternatives, some that may work much better for you.

Why Invest in Gold and Silver - Protecting Your Wealth With Precious Metals

In this article I will explain why Gold and Silver are the best options to protecting your wealth in this volatile world economy. As Investing Expert and #1 Best Selling Author Michael Maloney said, "The most dangerous investment is in U.S. Dollars."
Since the beginning of civilization, Gold and Silver have been a safeguard of wealth. As world currencies fluctuate in value, these precious metals have always maintained their value, and are great options for anybody to hedge their wealth against inflation in our volatile economy.
Since the world financial crisis began, roughly in 2008, the Federal Reserve has been printing money like crazy, nearly doubling the amount of U.S. Dollars in existence to nearly $2 Trillion. This mass over-printing of money within a short period of time causes inflation. Due to inflation, the U.S. Dollar is actually becoming less valuable.
It's my belief that since the U.S. Government and Federal Reserve have over-printed money in mass quantities since 2008, this has caused the jump in price of Gold and Silver. For example, in 1971, the average price of Gold was $40.62 per ounce. Just five years ago, in 2005, the average price of Gold was $444.74 per ounce. Today, in 2010, the price of Gold is $1276.20 per ounce. In 1971, the price of Silver was $1.39 per ounce. Just five years ago, in 2005, Silver was averaging $7.31 per ounce, and today, in 2010, Silver is $20.80 per ounce. That is a 287% increase in the price of Gold over a 5 year period and a 284% increase in Silver over the same time period.
As global economic conditions continue to deteriorate, more and more people are realizing that Gold and Silver have historically been an excellent safeguard of personal wealth. It is my belief that Gold and Silver are rock-solid, long-term investments. I advise everybody to continue to research the fantastic opportunities to invest in Precious Metals.

The Different Faces of Bond Investments

Just as there are many different types of equities, investors who are looking to buy into bonds need to understand that there are many different characteristics to bonds. Arguably the most obvious things that investors will look at are maturity (or duration of the portfolio as a whole) as well as credit quality. However, there is more to a bond than the above and the following categories of bonds are worth knowing and getting familiar with for people who are interested in invested in this fixed income asset class.
- Government vs. Corporate. There will be a fairly big difference in quality between government bonds and corporate bonds. The biggest difference in quality will typically show in the coupon rate as poorer-quality corporations that borrow in the form of issuing bonds will pay more than governments (for the most part).
- Treasuries vs. Municipal. In speaking of governments issuing bonds, there will be a fair degree of difference between treasuries issued at the Federal levels of government and municipal bonds issued by municipalities. In some cases, poorer quality municipal bonds will be higher risk than some decent-quality corporate bonds. However, many municipal bonds are seen as being attractive at the moment given their higher yields.
- Junk Bonds. Junk bonds are typically purchased a steep discounts as the chance of recovering the face value is considered low to non-existent. These are the lowest quality bonds based on quality and many of them do not pay a coupon.
- Global bonds. Seen as lucrative by many professional and individual investors, global bonds allow investors to obtain yield from non-domestic sources. The greatest appeal with these types of bonds is that they often pay higher yields despite decent quality ratings. For example, bonds issued in emerging markets like China, India or even many South American countries will often share the same credit quality as those issued by domestically, but due to prevailing rates in that country the coupon could be considerably higher. As well, global bonds offer a way for investors to safeguard against currency risks.
These four different points allow bond investors to diversify their bond holdings in such a way that they can optimize returns or income while diversifying their risks associated with this asset class. Some of them could be a core component to their investment portfolio, while others (such as junk bonds) could a small percentage, such as a specialty asset class in any other portfolio.