Here are some good ideas for long term investing.
If I were to enter into the stocks game today. I would be looking for long term investing by far. With today's market, crazy oil prices, and who knows what's next. Though the economy is somewhat safe...who knows where it could be tomorrow!
Though with all that said and done, and while everyone is looking, watching, and reading into the hurrican katrina! Before we go any farther we want to first say sorry to all the families, friends, and love ones down in the new orleans, and sorry that you have had to go through what you did with the hurrican katrina! We know that katrina left a lot of damage, and we are very very sorry!
Though, as we look at the world it has effected a lot of us in more ways then we could probably ever image! Wow, to think that hurrican katrina can do so much damage!
Well, with katrina doing so much damage...we can probably look at trends if we recall the other florida hurricanes. We will likely to see the mobile home Champion Enterprises Inc. (CHB), Fleetwood Enterprises Inc. (FLE), and other such stocks as these!
Wednesday, August 31, 2005
Saturday, August 27, 2005
Waiting 20 Years Can Cost You Millions - Don't Wait Start Today
Many Young people live for Today. They really don't fully understand the power of compound interest. The Difference between investing as little as $20 a week at age 20 or waiting until age 50 can be over $3,000,000 (yes 3 Million). Don't wait start today!
Recently I was in a 7-11 and I watched as a young man Purchased $10 worth of Lottery Tickets. As he was walking away from the counter he started talking to me. He told me he just turned 21 and he was going to buy $10 worth of Lottery Tickets for every Pick six as long as he had a steady Job. In Missouri they have 2 Pick Six Drawings Weekly. I said to him Here is my card give me a call and I will show you a surefire way to become a Millionaire.
He looked at me and said sure sure. I looked back at him and Said I will meet you tomorrow across the street at the coffee shop and Coffee is on me would morning or afternoon be better. He Replied I get off work at 2pm So I can be here at 3pm. I said 3pm it is.
I went home and plugged some numbers in an Excel Spreadsheet. Remember I did promise to make this 21 Year old kid a Millionaire. I was going to do for him what no one ever did for me.
The Results are very telling. If my young friend were to invest his $20 a Week and receive a 10% Return on his investment
* In 20 Years when he is 41 he will have a little over $66,000
* In 30 Years when he is 51 he will have a little over $198,000
* In 40 Years when he is 61 he will have a little over $550,000.
* In 45 Years when he is 66 He would have a little over 920,000
* In 50 Years when he is 71 He would have over $1,500,000.
If my young friend were to be able to average a 12% return the numbers are even more staggering
* In 20 Years when he is 41 he will have a little over $86,000
* In 30 Years when he is 51 he will have a little over $307,000
* In 40 Years when he is 61 he will have a little over $1,000,000.
* In 50 Years when he is 71 He would have over $3,400,000
The Above numbers are very telling. Not only do they show my young friend the power of Compound interest but the Show my Young friend the Power of Waiting. As an Example if my young friend Continues to Buy lottery Tickets for 10 Years until he 31 and then decides to take my advice and invest the $20 instead of having $1,500,000 when he is 71 at 10% he would only have $550,000. Waiting 10 Years cost him almost $1,000,000.
At the 12% Return My Young Friend would loose over $2,400,000 the Difference between $3,400,00 and $1,000,000
Now if my Young Friend were to Play the Lotto for 30 Years and Wait until he is 51 to take my advice he would loose over 3,300,000 at 12% the Difference between $3,400,000 and $86,000.
About the Author
Mike Makler is a Financial Consultant in the St Louis Missouri Area Specializing in Real Estate Loans and Annuities. To Learn More Call Mike at 314 398-5547 or Visit
Get Mike's Newsletter Here http://ewguru.com/fin-news
Copyright © 2005-2006 Mike Makler
Article Source: http://EzineArticles.com/
Recently I was in a 7-11 and I watched as a young man Purchased $10 worth of Lottery Tickets. As he was walking away from the counter he started talking to me. He told me he just turned 21 and he was going to buy $10 worth of Lottery Tickets for every Pick six as long as he had a steady Job. In Missouri they have 2 Pick Six Drawings Weekly. I said to him Here is my card give me a call and I will show you a surefire way to become a Millionaire.
He looked at me and said sure sure. I looked back at him and Said I will meet you tomorrow across the street at the coffee shop and Coffee is on me would morning or afternoon be better. He Replied I get off work at 2pm So I can be here at 3pm. I said 3pm it is.
I went home and plugged some numbers in an Excel Spreadsheet. Remember I did promise to make this 21 Year old kid a Millionaire. I was going to do for him what no one ever did for me.
The Results are very telling. If my young friend were to invest his $20 a Week and receive a 10% Return on his investment
* In 20 Years when he is 41 he will have a little over $66,000
* In 30 Years when he is 51 he will have a little over $198,000
* In 40 Years when he is 61 he will have a little over $550,000.
* In 45 Years when he is 66 He would have a little over 920,000
* In 50 Years when he is 71 He would have over $1,500,000.
If my young friend were to be able to average a 12% return the numbers are even more staggering
* In 20 Years when he is 41 he will have a little over $86,000
* In 30 Years when he is 51 he will have a little over $307,000
* In 40 Years when he is 61 he will have a little over $1,000,000.
* In 50 Years when he is 71 He would have over $3,400,000
The Above numbers are very telling. Not only do they show my young friend the power of Compound interest but the Show my Young friend the Power of Waiting. As an Example if my young friend Continues to Buy lottery Tickets for 10 Years until he 31 and then decides to take my advice and invest the $20 instead of having $1,500,000 when he is 71 at 10% he would only have $550,000. Waiting 10 Years cost him almost $1,000,000.
At the 12% Return My Young Friend would loose over $2,400,000 the Difference between $3,400,00 and $1,000,000
Now if my Young Friend were to Play the Lotto for 30 Years and Wait until he is 51 to take my advice he would loose over 3,300,000 at 12% the Difference between $3,400,000 and $86,000.
About the Author
Mike Makler is a Financial Consultant in the St Louis Missouri Area Specializing in Real Estate Loans and Annuities. To Learn More Call Mike at 314 398-5547 or Visit
Get Mike's Newsletter Here http://ewguru.com/fin-news
Copyright © 2005-2006 Mike Makler
Article Source: http://EzineArticles.com/
Sunday, August 21, 2005
dividend dates
Ex-Dividend Dates:
When Are You Entitled to Stock and Cash Dividends
Have you ever bought a stock only to find out later that you were not entitled to the next cash or stock dividend paid by the company? To determine whether you should get cash and most stock dividends, you need to look at two important dates. They are the "record date" or "date of record" and the "ex-dividend date" or "ex-date."
When a company declares a dividend, it sets a record date when you must be on the company's books as a shareholder to receive the dividend. Companies also use this date to determine who is sent proxy statements, financial reports, and other information.
Once the company sets the record date, the stock exchanges or the National Association of Securities Dealers, Inc. fix the ex-dividend date. The ex-dividend date is normally set for stocks two business days before the record date. If you purchase a stock on its ex-dividend date or after, you will not receive the next dividend payment. Instead, the seller gets the dividend. If you purchase before the ex-dividend date, you get the dividend.
Here is an example:
Declaration Date Ex-Dividend Date Record Date Payable Date
7/27/2004 8/6/2004 8/10/2004 9/10/2004
On July 27, 2004, Company XYZ declares a dividend payable on September 10, 2004 to its shareholders. XYZ also announces that shareholders of record on the company's books on or before August 10, 2004 are entitled to the dividend. The stock would then go ex-dividend two business days before the record date.
In this example, the record date falls on a Tuesday. Excluding weekends and holidays, the ex-dividend is set two business days before the record date or the opening of the market – in this case on the preceding Friday. This means anyone who bought the stock on Friday or after would not get the dividend. At the same time, those who purchase before the ex-dividend date receive the dividend.
With a significant dividend, the price of a stock may move up by the dollar amount of the dividend as the ex-dividend date approaches and then fall by that amount after the ex-dividend date. A stock that has gone ex-dividend is marked with an "x" in newspapers on that day.
Sometimes a company pays a dividend in the form of stock rather than cash. The stock dividend may be additional shares in the company or in a subsidiary being spun off. The procedures for stock dividends may be different from cash dividends. The ex-dividend date is set the first business day after the stock dividend is paid (and is also after the record date).
If you sell your stock before the ex-dividend date, you also are selling away your right to the stock dividend. Your sale includes an obligation to deliver any shares acquired as a result of the dividend to the buyer of your shares, since the seller will receive an I.O.U. or "due bill" from his or her broker for the additional shares. Thus, it is important to remember that the day you can sell your shares without being obligated to deliver the additional shares is not the first business day after the record date, but usually is the first business day after the stock dividend is paid.
If you have questions about specific dividends, you should consult with your financial advisor. You can also get information by going to your library and reading Standard and Poor's Dividend Record Binder.
http://www.sec.gov/answers/dividen.htm
When Are You Entitled to Stock and Cash Dividends
Have you ever bought a stock only to find out later that you were not entitled to the next cash or stock dividend paid by the company? To determine whether you should get cash and most stock dividends, you need to look at two important dates. They are the "record date" or "date of record" and the "ex-dividend date" or "ex-date."
When a company declares a dividend, it sets a record date when you must be on the company's books as a shareholder to receive the dividend. Companies also use this date to determine who is sent proxy statements, financial reports, and other information.
Once the company sets the record date, the stock exchanges or the National Association of Securities Dealers, Inc. fix the ex-dividend date. The ex-dividend date is normally set for stocks two business days before the record date. If you purchase a stock on its ex-dividend date or after, you will not receive the next dividend payment. Instead, the seller gets the dividend. If you purchase before the ex-dividend date, you get the dividend.
Here is an example:
Declaration Date Ex-Dividend Date Record Date Payable Date
7/27/2004 8/6/2004 8/10/2004 9/10/2004
On July 27, 2004, Company XYZ declares a dividend payable on September 10, 2004 to its shareholders. XYZ also announces that shareholders of record on the company's books on or before August 10, 2004 are entitled to the dividend. The stock would then go ex-dividend two business days before the record date.
In this example, the record date falls on a Tuesday. Excluding weekends and holidays, the ex-dividend is set two business days before the record date or the opening of the market – in this case on the preceding Friday. This means anyone who bought the stock on Friday or after would not get the dividend. At the same time, those who purchase before the ex-dividend date receive the dividend.
With a significant dividend, the price of a stock may move up by the dollar amount of the dividend as the ex-dividend date approaches and then fall by that amount after the ex-dividend date. A stock that has gone ex-dividend is marked with an "x" in newspapers on that day.
Sometimes a company pays a dividend in the form of stock rather than cash. The stock dividend may be additional shares in the company or in a subsidiary being spun off. The procedures for stock dividends may be different from cash dividends. The ex-dividend date is set the first business day after the stock dividend is paid (and is also after the record date).
If you sell your stock before the ex-dividend date, you also are selling away your right to the stock dividend. Your sale includes an obligation to deliver any shares acquired as a result of the dividend to the buyer of your shares, since the seller will receive an I.O.U. or "due bill" from his or her broker for the additional shares. Thus, it is important to remember that the day you can sell your shares without being obligated to deliver the additional shares is not the first business day after the record date, but usually is the first business day after the stock dividend is paid.
If you have questions about specific dividends, you should consult with your financial advisor. You can also get information by going to your library and reading Standard and Poor's Dividend Record Binder.
http://www.sec.gov/answers/dividen.htm
Saturday, August 20, 2005
hot stocks today, todays stocks, today's hot stocks
Today, if I was going to put together a basket of stocks, I would be looking at the following symbols: GOOG, TASR, TZOO, AIRT, QLGC, SYMC, PLMO, KMRT, EBAY, SINA, RIMM, RMBS, PCLN, and DCLK as well as other NASDAQ stocks. I would not over look New York Stock Exchange stocks, although many do. I would be looking at: MO, PFE, CAT, GE, GM, TYC, MRK, MOT, and others as well. Keep in mind, I am not recommending any of these stocks specifically for you to buy or trade. I am merely trying to give you an example of what a basket may look like. You have to decide yourself what stocks you would add to you your basket based on your own knowledge gained through experience and research on each stock.
About the Author
Floyd Snyder has been trading and investing in the stock market for three decades. He was on the forefront of the day trading craze that swept the nation back in the late1990's both as a trader and as the moderator of one of the Internet's largest real time trading rooms. He is the owner of http://www.TraderAide.com , Strictly Business Magazine at http://www.sbmag.org www.FrameHouseGallery.com and www.EducationResourcesNetwork.com
About the Author
Floyd Snyder has been trading and investing in the stock market for three decades. He was on the forefront of the day trading craze that swept the nation back in the late1990's both as a trader and as the moderator of one of the Internet's largest real time trading rooms. He is the owner of http://www.TraderAide.com , Strictly Business Magazine at http://www.sbmag.org www.FrameHouseGallery.com and www.EducationResourcesNetwork.com
Do You Have a Case Against Your Stock Broker? Ten ways to Tell
Do You Have a Case Against Your Stock Broker? Ten ways to Tell
As an attorney who represents individual investors from around the Country in claims against their stock brokers, I hear a wide variety of complaints about brokers’ fraud and misconduct. If you believe that your broker has abused or harmed you, you may want to consider whether your complaint falls within any of the following typical complaint categories. If you fall into one of these categories, you may have a meritorious complaint against your broker.
Here are some guidelines to consider whether or not you have a case:
1- Unsuitable Investments – If you tell your broker that you are a “conservative” investor with a “low” risk tolerance and you are put into, for example, risky high technology stocks.
2- Unauthorized Trades –If you notice that buys and sells are occurring in your account without your prior permission or knowledge or any contact from your broker, these trades are “unauthorized”.
3- Risk Profile Change – If you notice that the ”investment objective” or “risk profile” (“aggressive” “moderate” or “conservative”) on your monthly account statements has changed, without your input, from, for example, “moderate” to “aggressive”. A “red flag” should go up if you receive documents from your broker which do not reflect your investment objective (aggressive, moderate, conservative).
4- Fraudulent Stock Research – If you bought stocks relying on stock research which was determined by the SEC and New York Attorney General to be “fraudulent” (Infospace, ICGE, WorldCom, etc).
5- Churning – If your broker is excessively trading or constantly turning over your account, for the purpose of generating sales commissions.
6- Fraudulent Statement of Risk – If you have suffered substantial losses in your account and your broker told you that you had a “low risk” portfolio.
7- Over-concentration- If your account is over-concentrated in stocks and equity mutual funds which are primarily high technology or telecommunications, you have an over-concentrated portfolio. If your broker has not allocated your assets into different classes (stocks, bonds, cash) or diversified your stocks and equity mutual funds into different industry “sectors”.
8- Excessive Use of “Margin” – If your broker buys stock with “margin” borrowings which you did not authorize.
9- “Activity” Letters – If your brokerage firm sends you an “activity” letter advising you of large losses, turnover, high commissions, high margin levels, etc. in your account and this is not consistent with your instructions to the broker.
10- Mutual Fund “Switching” – If your broker advises you to get out of one mutual fund or “variable annuity” and into another. Often brokers are “pushing” mutual funds which are “proprietary” and which may give the broker higher compensation and are not necessarily in the client’s best interest.
About The Author
Jacob H. Zamansky specializes in securities arbitration and has over twenty-six years of litigation experience at private law firms and as a federal prosecutor (FTC). He has been recognized by the press as a "big-time" litigator and legal strategist. As a frequent commentator and "source" on CNBC, CNN, National Network News and FOX Business News, He has been quoted for publication in virtually every financial and legal publication including The Wall Street Journal, New York Times, Money Magazine, The New Yorker, Business Week and Fortune Magazine.
jake@zamansky.com
As an attorney who represents individual investors from around the Country in claims against their stock brokers, I hear a wide variety of complaints about brokers’ fraud and misconduct. If you believe that your broker has abused or harmed you, you may want to consider whether your complaint falls within any of the following typical complaint categories. If you fall into one of these categories, you may have a meritorious complaint against your broker.
Here are some guidelines to consider whether or not you have a case:
1- Unsuitable Investments – If you tell your broker that you are a “conservative” investor with a “low” risk tolerance and you are put into, for example, risky high technology stocks.
2- Unauthorized Trades –If you notice that buys and sells are occurring in your account without your prior permission or knowledge or any contact from your broker, these trades are “unauthorized”.
3- Risk Profile Change – If you notice that the ”investment objective” or “risk profile” (“aggressive” “moderate” or “conservative”) on your monthly account statements has changed, without your input, from, for example, “moderate” to “aggressive”. A “red flag” should go up if you receive documents from your broker which do not reflect your investment objective (aggressive, moderate, conservative).
4- Fraudulent Stock Research – If you bought stocks relying on stock research which was determined by the SEC and New York Attorney General to be “fraudulent” (Infospace, ICGE, WorldCom, etc).
5- Churning – If your broker is excessively trading or constantly turning over your account, for the purpose of generating sales commissions.
6- Fraudulent Statement of Risk – If you have suffered substantial losses in your account and your broker told you that you had a “low risk” portfolio.
7- Over-concentration- If your account is over-concentrated in stocks and equity mutual funds which are primarily high technology or telecommunications, you have an over-concentrated portfolio. If your broker has not allocated your assets into different classes (stocks, bonds, cash) or diversified your stocks and equity mutual funds into different industry “sectors”.
8- Excessive Use of “Margin” – If your broker buys stock with “margin” borrowings which you did not authorize.
9- “Activity” Letters – If your brokerage firm sends you an “activity” letter advising you of large losses, turnover, high commissions, high margin levels, etc. in your account and this is not consistent with your instructions to the broker.
10- Mutual Fund “Switching” – If your broker advises you to get out of one mutual fund or “variable annuity” and into another. Often brokers are “pushing” mutual funds which are “proprietary” and which may give the broker higher compensation and are not necessarily in the client’s best interest.
About The Author
Jacob H. Zamansky specializes in securities arbitration and has over twenty-six years of litigation experience at private law firms and as a federal prosecutor (FTC). He has been recognized by the press as a "big-time" litigator and legal strategist. As a frequent commentator and "source" on CNBC, CNN, National Network News and FOX Business News, He has been quoted for publication in virtually every financial and legal publication including The Wall Street Journal, New York Times, Money Magazine, The New Yorker, Business Week and Fortune Magazine.
jake@zamansky.com
Thursday, August 18, 2005
Forex Made Easy for Everyone
Forex Made Easy for Everyone
Forex made easy is as simple as you would want it to be. The foreign exchange market is a worldwide market and according to some estimates is almost as big as thirty times the turnover of the US Equity markets. That is some figure to chew on. Forex is the commonly used term for foreign exchange. As a person who wants to invest in the forex market, one should understand the basics of how this currency market operates. Forex can be made easier for beginners to understand it and here's how.
Foreign exchange is the buying and the selling of foreign exchange in pairs of currencies. For example you buy US dollars and sell UK Sterling pounds or you sell German Marks and buy Japanese Yen. Why are currencies bought or sold? The answer is simple; Governments and Companies need foreign exchange for their purchase and payments for various commodities and services. This trade constitutes about 5% of all currency transactions, however the other 95% currency transactions are done for speculation and trade. In fact many companies will buy foreign currency when it is being traded at a lower rate to protect their financial investments. Another thing about foreign exchange market is that the rates are varying continuously and on daily basis. Therefore investors and financial managers track the forex rates and the forex market it on a daily basis.
Those who are involved in the forex trade know that almost 85% of the trading is done in only US Dollar, Japanese Yen, Euro, British Pound, Swiss Franc, Canadian Dollar and Australian Dollar. This is because they are the most liquid of foreign currencies (can be easily bought and sold. In fact the US Dollar is most recognizable foreign currency even in countries like Afghanistan, Iraq, Vietnam etc).
Being a truly 24/7 market, the currency trading markets opens in the financial centers of Sydney, Tokyo, London and New York in that sequence. Investors and speculators alike respond to the ever-changing situations and can buy and sell simultaneously the currencies. In fact many operate in two or more currency market using arbitrage to gain profits (buying in one market and selling in another market or vice versa to take advantage of the prices and book profits).
While dealing in forex, one should have a margin account. Quite simply put if you have US$ 1,000 and have a forex margin account which leverages 100:1 then you can buy US$ 100,000 since you only need 1% of the US$100,000 or US$1,000. Therefore it means that with margin account you have US$ 100,000 worth of real purchasing power in your hand.
Since the foreign currency market is fluctuating on a continuous basis, one should be able to understand the factors that affect this currency market. This is done through Technical Analysis and Fundamental Analysis. These two tools of trade are used in a variety of other markets such as equity markets, stock markets, mutual funds markets etc. Technical Analysis refers to reading, summarizing and analyzing data based on the data that is generated by the market. While fundamental Analysis refers to the factors, which influence the market economy, and in turn how it would affect the currency trading. Of course there are other economic and non economic factors which can suddenly affect the trading of the forex markets such as the 9/11 tragedy etc. One needs to have a shrewd acumen and a few number crunching abilities to strike gold in the forex market.
About the Author
Forex made easy with this amazing forex trading software. Real time signals sent to your desktop, email or mobile phone. Visit
Forex Made Easy
Forex made easy is as simple as you would want it to be. The foreign exchange market is a worldwide market and according to some estimates is almost as big as thirty times the turnover of the US Equity markets. That is some figure to chew on. Forex is the commonly used term for foreign exchange. As a person who wants to invest in the forex market, one should understand the basics of how this currency market operates. Forex can be made easier for beginners to understand it and here's how.
Foreign exchange is the buying and the selling of foreign exchange in pairs of currencies. For example you buy US dollars and sell UK Sterling pounds or you sell German Marks and buy Japanese Yen. Why are currencies bought or sold? The answer is simple; Governments and Companies need foreign exchange for their purchase and payments for various commodities and services. This trade constitutes about 5% of all currency transactions, however the other 95% currency transactions are done for speculation and trade. In fact many companies will buy foreign currency when it is being traded at a lower rate to protect their financial investments. Another thing about foreign exchange market is that the rates are varying continuously and on daily basis. Therefore investors and financial managers track the forex rates and the forex market it on a daily basis.
Those who are involved in the forex trade know that almost 85% of the trading is done in only US Dollar, Japanese Yen, Euro, British Pound, Swiss Franc, Canadian Dollar and Australian Dollar. This is because they are the most liquid of foreign currencies (can be easily bought and sold. In fact the US Dollar is most recognizable foreign currency even in countries like Afghanistan, Iraq, Vietnam etc).
Being a truly 24/7 market, the currency trading markets opens in the financial centers of Sydney, Tokyo, London and New York in that sequence. Investors and speculators alike respond to the ever-changing situations and can buy and sell simultaneously the currencies. In fact many operate in two or more currency market using arbitrage to gain profits (buying in one market and selling in another market or vice versa to take advantage of the prices and book profits).
While dealing in forex, one should have a margin account. Quite simply put if you have US$ 1,000 and have a forex margin account which leverages 100:1 then you can buy US$ 100,000 since you only need 1% of the US$100,000 or US$1,000. Therefore it means that with margin account you have US$ 100,000 worth of real purchasing power in your hand.
Since the foreign currency market is fluctuating on a continuous basis, one should be able to understand the factors that affect this currency market. This is done through Technical Analysis and Fundamental Analysis. These two tools of trade are used in a variety of other markets such as equity markets, stock markets, mutual funds markets etc. Technical Analysis refers to reading, summarizing and analyzing data based on the data that is generated by the market. While fundamental Analysis refers to the factors, which influence the market economy, and in turn how it would affect the currency trading. Of course there are other economic and non economic factors which can suddenly affect the trading of the forex markets such as the 9/11 tragedy etc. One needs to have a shrewd acumen and a few number crunching abilities to strike gold in the forex market.
About the Author
Forex made easy with this amazing forex trading software. Real time signals sent to your desktop, email or mobile phone. Visit
Forex Made Easy
A Roth IRA, Is It For You?
A Roth IRA, Is It For You?
Roth IRA’s are some of the most sought after investments. But, why? What are they? Why should you invest in them? For many people, the investment world is somewhat of a mystery. We just do not know what it is all about. But, we can easily learn by taking the time to understand all the various aspects of investing. We can start here with learning about Roth IRA and how it can benefit you.
First, Roth IRA was named after the man who helped push through legislation for it. His name was William Roth. He was a United States Senator. He was known as a conservative and helped to pass other tax cuts as well in the 1980’s. But, we want to know about his specific contribution to the Roth IRA.
The Roth IRA is an individual retirement account. It is used throughout the United States. This plan is meant to help individuals save money for retirement by giving them tax advantages for doing so. But, there are a number of different retirement accounts. Some of these retirement plans can be set up by the employer while others are sponsored through the individual investor. In the Roth IRA, money is taxed before it is deposited into the account. But, it accumulates tax free on its earnings until you withdraw it at retirement. The money is then taxed. But, here are a few other individual retirement accounts that you should consider as well:
The traditional IRA is the most commonly thought of retirement account because it was one of the firsts. In this case, money is deposited without being taxed. The money accumulates through time and is still tax free on earnings. Then, when the money is later withdrawn at retirement, it is taxed.
A Rollover IRA is basically the same as the traditional. The only difference is that in the rollover, funds or money is moved from one type of retirement plan to the rollover. This would happen when one account is closed but money is not withdrawn but moved. For example, if you have an employer based retirement plan and leave one company for the next, the money would move into a rollover account.
A Simple IRA is quite similar to a 401K. It is a simplified employee pension plan. In this case, you will have lower contribution limits and a simpler administration of the money.
Let’s get back to the Roth IRA in particular. In this type of retirement account, you get to contribute money that is “post tax” and earnings and withdrawals are then tax free. Another advantage of the Roth IRA is the fact that there are fewer penalties and restrictions on withdrawal than with the traditional IRA. Your limits, currently, on this IRA are based on age and the year:
In 2005, if you are under 49 years of age, your contributions are limited to $4,000 per year. Over 50 and you can invest up to $4500.
In 2006 and 2007, if you are under the age of 49, your contribution limit will be $4000, but if you are over 50, your limit will increase to $5000.
In 2008, limits change for both those age groups. Under age 49 will increase to $5000 while over age 50 will increase to $6000.
Anyone who is considering a Roth IRA for their retirement account is considering a very good quality investment account. It is wise, like with all other investments, to speak to a financial advisor to find the best course of action. They will help you to decide how much to put into the account. They will also help you to manage it. In a Roth IRA, there are a variety of options that you can invest in including stocks and mutual funds. It is important to consider the risk involved. It is also important to consider just where you need the money to be when you retire. A financial advisor can help you get to where you need to be without you having to worry about all the details.
All in all, a Roth IRA is an excellent choice. Its main benefits are its tax structure as well as its lower fees. You will see that they offer an excellent opportunity for almost anyone to invest for their retirement.
About the Author
Travis Lawrence
More Roth IRA information can be found at http://www.roth-ira.org
Roth IRA’s are some of the most sought after investments. But, why? What are they? Why should you invest in them? For many people, the investment world is somewhat of a mystery. We just do not know what it is all about. But, we can easily learn by taking the time to understand all the various aspects of investing. We can start here with learning about Roth IRA and how it can benefit you.
First, Roth IRA was named after the man who helped push through legislation for it. His name was William Roth. He was a United States Senator. He was known as a conservative and helped to pass other tax cuts as well in the 1980’s. But, we want to know about his specific contribution to the Roth IRA.
The Roth IRA is an individual retirement account. It is used throughout the United States. This plan is meant to help individuals save money for retirement by giving them tax advantages for doing so. But, there are a number of different retirement accounts. Some of these retirement plans can be set up by the employer while others are sponsored through the individual investor. In the Roth IRA, money is taxed before it is deposited into the account. But, it accumulates tax free on its earnings until you withdraw it at retirement. The money is then taxed. But, here are a few other individual retirement accounts that you should consider as well:
The traditional IRA is the most commonly thought of retirement account because it was one of the firsts. In this case, money is deposited without being taxed. The money accumulates through time and is still tax free on earnings. Then, when the money is later withdrawn at retirement, it is taxed.
A Rollover IRA is basically the same as the traditional. The only difference is that in the rollover, funds or money is moved from one type of retirement plan to the rollover. This would happen when one account is closed but money is not withdrawn but moved. For example, if you have an employer based retirement plan and leave one company for the next, the money would move into a rollover account.
A Simple IRA is quite similar to a 401K. It is a simplified employee pension plan. In this case, you will have lower contribution limits and a simpler administration of the money.
Let’s get back to the Roth IRA in particular. In this type of retirement account, you get to contribute money that is “post tax” and earnings and withdrawals are then tax free. Another advantage of the Roth IRA is the fact that there are fewer penalties and restrictions on withdrawal than with the traditional IRA. Your limits, currently, on this IRA are based on age and the year:
In 2005, if you are under 49 years of age, your contributions are limited to $4,000 per year. Over 50 and you can invest up to $4500.
In 2006 and 2007, if you are under the age of 49, your contribution limit will be $4000, but if you are over 50, your limit will increase to $5000.
In 2008, limits change for both those age groups. Under age 49 will increase to $5000 while over age 50 will increase to $6000.
Anyone who is considering a Roth IRA for their retirement account is considering a very good quality investment account. It is wise, like with all other investments, to speak to a financial advisor to find the best course of action. They will help you to decide how much to put into the account. They will also help you to manage it. In a Roth IRA, there are a variety of options that you can invest in including stocks and mutual funds. It is important to consider the risk involved. It is also important to consider just where you need the money to be when you retire. A financial advisor can help you get to where you need to be without you having to worry about all the details.
All in all, a Roth IRA is an excellent choice. Its main benefits are its tax structure as well as its lower fees. You will see that they offer an excellent opportunity for almost anyone to invest for their retirement.
About the Author
Travis Lawrence
More Roth IRA information can be found at http://www.roth-ira.org
Wednesday, August 17, 2005
Rertire sooner on other people's money
RETIRE SOONER ON OTHER PEOPLE'S MONEY
First Published in the Balanced Report Summer 1992
Today it is possible to have an investment portfolio without paying for it. In fact, the Government will buy it for you. Due to some innovations to the investment industry it is possible to use collateral to buy an investment portfolio. We then use the investment portfolio to service the debt and the tax refunds to pay off the loan. Sound too good to be true? Read on!
With interest rates now lower than they have been for many years it is now very attractive to borrow money to acquire an investment portfolio. Using other people's money has always been the best way to build wealth. By borrowing money at a fixed rate of interest to purchase an investment that will grow at a higher rate, this is simple enough to understand. It does beg the question though. If it is so easy, why doesn't everyone do it? The answer, not everyone has a good credit rating. They may not be credit worthy for many reasons, or perhaps they have no collateral to pledge as security for the loan. Also some people cannot handle risk of any kind and would therefore be uncomfortable with any debt. The old adage that you can't borrow from the bank, unless you can prove you don't need it, has a lot of truth in it. If you have your house paid for, or have a good equity in it, or other assets to use as collateral, this plan will work for you.
It is not too difficult for us to construct an investment portfolio for a client that will yield a compound rate of return of 12 percent or better per annum on a long-term basis. The other day I was playing on the computer using rates of return on some of the better mutual funds. 1 selected criteria of a compound rate of return over l2% for the last ten years. Then I put in an additional criteria of assets over 50 million dollars. We want funds with good diversification and that requires a good size to achieve. The next criterion is that they had to have management fees under 2.511% per annum. This is a figure the public does not usually see. We have to watch that we don't put a client into a fund with very high management expense charges. Sometimes the fund that appears to have no fees has exorbitant expenses, which cancel the other advantages. I then asked for the computer to print a list. There were over 36 funds on that list. The 12% percent figure is easily achieved.
If you took a mortgage on your house for 10% and the portfolio earned only 12%, the loan will be paid off within twelve years. Also, you would not have put a dime of your own money on the loan. How do we do that? We purchase a portfolio of 4‑6 different investments, mostly equity Mutual Funds. We set up an automatic withdrawal programme of 10% of the original investment. Each month the fund company transfers one twelfth of that amount electronically into your personal checking account at your bank. The Bank each month would debit your account for the interest cost of the loan or the monthly mortgage payment. So there should be no cost to you to service the loan. As the portfolio is growing at least by 12% per year and you are drawing down 10% per year, the portfolio grows on average by at least 2% per year. Remember this investment did not cost you anything.
Now, here comes the best part. At the end of the year the bank sends you a statement of the interest you paid on the loan or mortgage. The interest amount is fully tax deductible on that years Income Tax return, as it was an expense to purchase an investment. Suppose you took out a $100,000 loan at a rate of 10% for the year. The $10,000 interest paid would be your tax deduction. If you are in the 48.33% marginal tax rule, as many of our clients are, your tax refund will be $4,833. As this is found money we suggest that it be applied directly to the loan principal when the refund is received. When the portfolio is sufficient to pay off the entire loan plus leave a balance of $100,000 we pay off the loan. By doing this each year, with no money out of your own pocket, the loan is gone within 12 years. Remember you have not put any of your own money into this investment. At the end of the twelfth year the fund is worth $123,167.00 and the loan has been paid off. The fund can continue to grow until your retirement or the withdrawal plan can be continued as your immediate retirement income.
For those with no mortgage, or anyone having enough cash flow to support a monthly payment against the loan, you can get rid of the loan even faster. In the above example, by making a payment of $1,000 per month, the loan is paid off by the sixth year.
We feel the timing is perfect for this investment as the country is now coming out of its recession. Our stock market is setting near half the book value of the US market. There are also some very exciting opportunities in international funds that specialize in Emerging Markets. These economics are growing at over three times the growth in North America. The very low interest rates that we have now are why this works so well. We are recommending a five‑year mortgage to prevent against an unexpected rise in interest rates. You can secure a five‑year mortgage today for 8.875%. A demand loan might he cheaper, but the prudent approach is a five‑year term and the interest is calculated semiannually instead of monthly on a demand loan Most mortgages allow you to pay down an additional 15 or 20% per year, anytime you want and to increase the payments. So there is an ability to pay down the loan very quickly without a penalty. If you ever want out of the whole thing the portfolio is very liquid and the loan can be paid out with the proceeds from the portfolio. There is of course a risk that the portfolio will not do well. You can count on a bad year for sure, at least once about every five or six years. However, it is our experience that these funds will usually double in value about every five or six years, even with a bad year or so in there.
I have prepared a four‑page report illustrating the loan reduction, with or without payments on your part. There are also graphs and a list of those 36 funds that have done better than 12% compounded over the last 10 years. If you would like a copy of that report please phone us and we will mail you a copy.
We believe in practicing what we preach, so we took out a mortgage on our home last month to add to our investment portfolio. We are excited about the opportunities that are now available and would be pleased to arrange this for you also.
Copyright – www.money-software.com
About the Author
Peter F. Baigent CFP, CLU, CHFC, RFP. is a Past President of the Canadian Association of Financial Planners for British Columbia, a former Director of the Canadian Association of Financial Planners. He has spoken across Canada on financial planning matters and has taught courses for the Chartered Financial Consultants & Certified Financial Planners degrees. He is the founder of Money Minders Software which produces financial planning software.
First Published in the Balanced Report Summer 1992
Today it is possible to have an investment portfolio without paying for it. In fact, the Government will buy it for you. Due to some innovations to the investment industry it is possible to use collateral to buy an investment portfolio. We then use the investment portfolio to service the debt and the tax refunds to pay off the loan. Sound too good to be true? Read on!
With interest rates now lower than they have been for many years it is now very attractive to borrow money to acquire an investment portfolio. Using other people's money has always been the best way to build wealth. By borrowing money at a fixed rate of interest to purchase an investment that will grow at a higher rate, this is simple enough to understand. It does beg the question though. If it is so easy, why doesn't everyone do it? The answer, not everyone has a good credit rating. They may not be credit worthy for many reasons, or perhaps they have no collateral to pledge as security for the loan. Also some people cannot handle risk of any kind and would therefore be uncomfortable with any debt. The old adage that you can't borrow from the bank, unless you can prove you don't need it, has a lot of truth in it. If you have your house paid for, or have a good equity in it, or other assets to use as collateral, this plan will work for you.
It is not too difficult for us to construct an investment portfolio for a client that will yield a compound rate of return of 12 percent or better per annum on a long-term basis. The other day I was playing on the computer using rates of return on some of the better mutual funds. 1 selected criteria of a compound rate of return over l2% for the last ten years. Then I put in an additional criteria of assets over 50 million dollars. We want funds with good diversification and that requires a good size to achieve. The next criterion is that they had to have management fees under 2.511% per annum. This is a figure the public does not usually see. We have to watch that we don't put a client into a fund with very high management expense charges. Sometimes the fund that appears to have no fees has exorbitant expenses, which cancel the other advantages. I then asked for the computer to print a list. There were over 36 funds on that list. The 12% percent figure is easily achieved.
If you took a mortgage on your house for 10% and the portfolio earned only 12%, the loan will be paid off within twelve years. Also, you would not have put a dime of your own money on the loan. How do we do that? We purchase a portfolio of 4‑6 different investments, mostly equity Mutual Funds. We set up an automatic withdrawal programme of 10% of the original investment. Each month the fund company transfers one twelfth of that amount electronically into your personal checking account at your bank. The Bank each month would debit your account for the interest cost of the loan or the monthly mortgage payment. So there should be no cost to you to service the loan. As the portfolio is growing at least by 12% per year and you are drawing down 10% per year, the portfolio grows on average by at least 2% per year. Remember this investment did not cost you anything.
Now, here comes the best part. At the end of the year the bank sends you a statement of the interest you paid on the loan or mortgage. The interest amount is fully tax deductible on that years Income Tax return, as it was an expense to purchase an investment. Suppose you took out a $100,000 loan at a rate of 10% for the year. The $10,000 interest paid would be your tax deduction. If you are in the 48.33% marginal tax rule, as many of our clients are, your tax refund will be $4,833. As this is found money we suggest that it be applied directly to the loan principal when the refund is received. When the portfolio is sufficient to pay off the entire loan plus leave a balance of $100,000 we pay off the loan. By doing this each year, with no money out of your own pocket, the loan is gone within 12 years. Remember you have not put any of your own money into this investment. At the end of the twelfth year the fund is worth $123,167.00 and the loan has been paid off. The fund can continue to grow until your retirement or the withdrawal plan can be continued as your immediate retirement income.
For those with no mortgage, or anyone having enough cash flow to support a monthly payment against the loan, you can get rid of the loan even faster. In the above example, by making a payment of $1,000 per month, the loan is paid off by the sixth year.
We feel the timing is perfect for this investment as the country is now coming out of its recession. Our stock market is setting near half the book value of the US market. There are also some very exciting opportunities in international funds that specialize in Emerging Markets. These economics are growing at over three times the growth in North America. The very low interest rates that we have now are why this works so well. We are recommending a five‑year mortgage to prevent against an unexpected rise in interest rates. You can secure a five‑year mortgage today for 8.875%. A demand loan might he cheaper, but the prudent approach is a five‑year term and the interest is calculated semiannually instead of monthly on a demand loan Most mortgages allow you to pay down an additional 15 or 20% per year, anytime you want and to increase the payments. So there is an ability to pay down the loan very quickly without a penalty. If you ever want out of the whole thing the portfolio is very liquid and the loan can be paid out with the proceeds from the portfolio. There is of course a risk that the portfolio will not do well. You can count on a bad year for sure, at least once about every five or six years. However, it is our experience that these funds will usually double in value about every five or six years, even with a bad year or so in there.
I have prepared a four‑page report illustrating the loan reduction, with or without payments on your part. There are also graphs and a list of those 36 funds that have done better than 12% compounded over the last 10 years. If you would like a copy of that report please phone us and we will mail you a copy.
We believe in practicing what we preach, so we took out a mortgage on our home last month to add to our investment portfolio. We are excited about the opportunities that are now available and would be pleased to arrange this for you also.
Copyright – www.money-software.com
About the Author
Peter F. Baigent CFP, CLU, CHFC, RFP. is a Past President of the Canadian Association of Financial Planners for British Columbia, a former Director of the Canadian Association of Financial Planners. He has spoken across Canada on financial planning matters and has taught courses for the Chartered Financial Consultants & Certified Financial Planners degrees. He is the founder of Money Minders Software which produces financial planning software.
Secret to Corporate Success
Secret to Corporate Success
Can success in business be credited to only one person in a corporation? Or does everybody in a corporation hold a place of importance to the corporate success?
As an example, let us examine a hospital set-up. Who is more important - a doctor? or a janitor? Majority would perhaps respond that it is the doctor. Granting for example that the doctor is the only employee of a hospital, who will take a follow-up care of his patients if there are no nurses?
Will a doctor be able to survive without the presence of an accountant to manage his business accounts? Or will he be able to survive without having a secretary to handle the consultation appointments of his patients? In the emergency room, will the doctor have time to clean the blood on the floor from his wounded patients? Or does he have the time to discard of the trash if there are no janitors? Or will he have the time to cook for his admitted patients if there are no kitchen personnel?
On the otherhand, what good is a hospital without a doctor? Or how will a nurse function if there are no doctors to provide consultations and treatment?
What good can hospital administrative decisions make without marketing promotions? What is the importance of a marketer if there is nothing to promote?
Let us try to leave the hospital set-up for a moment. In basketball, which position is more important? The center or the guard? Who holds more importance, the coach or the player?
Well, what do you think is my point? TEAMWORK.
Teamwork is the only secret formula to create success in a corporate business. Without teamwork, failure is a sure thing to come. It is therefore essential that all members of a company or a corporation should be given an equal importance and respect. And it is also important that every employee - from the officials down to the ranks - should contribute their best for the success of the team.
Factors that can destroy teamwork include favoritism, unfairness, lies and deception. This factors generate loss of trust, hatred, and loss of cooperation. If you learned that one of your teammate was given more privilege than you do especially that both of you contributed equally to the team, don't you think you will not react negatively?
To the business owners, think of your corporation or company like it is a living human body. Can you ignore the heart and just take care of your brain? Will you give more importance to your eyes than your hands? What good will your body be if you have a sickly lung? Do you think you will last long?
So, in the entertainment world, who is more important - the cast or the crew? In business, who is more important - the CEO or the stockholders?
Always remember - TEAMWORK counts a lot.
About the Author
VMT Singuillo was a general manager of a healthcare company. He has written articles for www.grandfatherclock.biz, www.yourcheaphotels.com, www.lasvegashotelsreservation.org and more.
Can success in business be credited to only one person in a corporation? Or does everybody in a corporation hold a place of importance to the corporate success?
As an example, let us examine a hospital set-up. Who is more important - a doctor? or a janitor? Majority would perhaps respond that it is the doctor. Granting for example that the doctor is the only employee of a hospital, who will take a follow-up care of his patients if there are no nurses?
Will a doctor be able to survive without the presence of an accountant to manage his business accounts? Or will he be able to survive without having a secretary to handle the consultation appointments of his patients? In the emergency room, will the doctor have time to clean the blood on the floor from his wounded patients? Or does he have the time to discard of the trash if there are no janitors? Or will he have the time to cook for his admitted patients if there are no kitchen personnel?
On the otherhand, what good is a hospital without a doctor? Or how will a nurse function if there are no doctors to provide consultations and treatment?
What good can hospital administrative decisions make without marketing promotions? What is the importance of a marketer if there is nothing to promote?
Let us try to leave the hospital set-up for a moment. In basketball, which position is more important? The center or the guard? Who holds more importance, the coach or the player?
Well, what do you think is my point? TEAMWORK.
Teamwork is the only secret formula to create success in a corporate business. Without teamwork, failure is a sure thing to come. It is therefore essential that all members of a company or a corporation should be given an equal importance and respect. And it is also important that every employee - from the officials down to the ranks - should contribute their best for the success of the team.
Factors that can destroy teamwork include favoritism, unfairness, lies and deception. This factors generate loss of trust, hatred, and loss of cooperation. If you learned that one of your teammate was given more privilege than you do especially that both of you contributed equally to the team, don't you think you will not react negatively?
To the business owners, think of your corporation or company like it is a living human body. Can you ignore the heart and just take care of your brain? Will you give more importance to your eyes than your hands? What good will your body be if you have a sickly lung? Do you think you will last long?
So, in the entertainment world, who is more important - the cast or the crew? In business, who is more important - the CEO or the stockholders?
Always remember - TEAMWORK counts a lot.
About the Author
VMT Singuillo was a general manager of a healthcare company. He has written articles for www.grandfatherclock.biz, www.yourcheaphotels.com, www.lasvegashotelsreservation.org and more.
Thursday, August 11, 2005
High Yield Stocks
High Yield Stocks
GM General Motors 35.19 5.68%
SBC SBC Communications 24.61 5.24%
MRK Merck 30.66 4.96%
VZ Verizon 33.32 4.86%
MO Altria 66.33 4.40%
C Citigroup 43.63 4.03%
JPM JP Morgan Chase 35.25 3.86%
DD DuPont 42.71 3.47%
PFE Pfizer 26.25 2.90%
GE General Electric 33.81 2.60%
GM General Motors 35.19 5.68%
SBC SBC Communications 24.61 5.24%
MRK Merck 30.66 4.96%
VZ Verizon 33.32 4.86%
MO Altria 66.33 4.40%
C Citigroup 43.63 4.03%
JPM JP Morgan Chase 35.25 3.86%
DD DuPont 42.71 3.47%
PFE Pfizer 26.25 2.90%
GE General Electric 33.81 2.60%
Capitalization-Weighted Index
Capitalization-Weighted Index
Also referred to as a market-weighted index, a capitalization-weighted index is one in which a stock affects the index as a whole only in relation to its size (i.e. market capitalization).
The Standard & Poor's 500 (S&P 500) is a capitalization-weighted index of 500 widely held stocks selected to be representative of the stock market as a whole.
Also referred to as a market-weighted index, a capitalization-weighted index is one in which a stock affects the index as a whole only in relation to its size (i.e. market capitalization).
The Standard & Poor's 500 (S&P 500) is a capitalization-weighted index of 500 widely held stocks selected to be representative of the stock market as a whole.
Wednesday, August 10, 2005
Are You A Stockaholic?
Are You A Stockaholic?
Today's society gives special recognition to alcoholics, sexaholics, binge-aholics, shopaholics, chocaholics and other "-aholics". What about stockaholics? Stockaholics are people who are overly obsessive about their stock market investments.
As approximately 50% of U.S. households directly or indirectly invest in the stock market, it is likely that there already exists a goodly number of undiagnosed stockaholics.
Are you a stockaholic?
To find out if you are a stockaholic answer Yes or No to the 10 short questions below ...
1. do you check your stocks every day?
2. are you depressed on weekends, because the market is not open?
3. do you hate to go away on vacation because you will be out of touch with the market?
4. do you subscribe to more than 3 financial publications?
5. do you dream about stocks?
6. do you daydream about making a killing in the stock market?
7. do you think your stock broker is your best friend?
8. have you tried different stock market strategies, only to find out they didn't work?
9. do you wish you could consistently beat the market?
10. do you wish you could make more money in the stock market?
If you answered yes to all or most of the questions you are a stockaholic ... or a very good investor. If stocks are interfering with your ability to enjoy life ... or if you are not making enough money in the stock market ... get help.
About the Author
Alan Korber is a stockaholic and a very good investor. He is also the creator and publisher of the successful Korber Strategy, a simple easy-to-understand stock market investment strategy that can pinpoint stocks likely to go up 50%-100% in the next 12 months. His website is http://akorber.com
Today's society gives special recognition to alcoholics, sexaholics, binge-aholics, shopaholics, chocaholics and other "-aholics". What about stockaholics? Stockaholics are people who are overly obsessive about their stock market investments.
As approximately 50% of U.S. households directly or indirectly invest in the stock market, it is likely that there already exists a goodly number of undiagnosed stockaholics.
Are you a stockaholic?
To find out if you are a stockaholic answer Yes or No to the 10 short questions below ...
1. do you check your stocks every day?
2. are you depressed on weekends, because the market is not open?
3. do you hate to go away on vacation because you will be out of touch with the market?
4. do you subscribe to more than 3 financial publications?
5. do you dream about stocks?
6. do you daydream about making a killing in the stock market?
7. do you think your stock broker is your best friend?
8. have you tried different stock market strategies, only to find out they didn't work?
9. do you wish you could consistently beat the market?
10. do you wish you could make more money in the stock market?
If you answered yes to all or most of the questions you are a stockaholic ... or a very good investor. If stocks are interfering with your ability to enjoy life ... or if you are not making enough money in the stock market ... get help.
About the Author
Alan Korber is a stockaholic and a very good investor. He is also the creator and publisher of the successful Korber Strategy, a simple easy-to-understand stock market investment strategy that can pinpoint stocks likely to go up 50%-100% in the next 12 months. His website is http://akorber.com
Sunday, August 07, 2005
Looking To The So Called Specialist?
Looking To The So Called Specialist?
Looking to the so called specialist for your financial guidelines?
Perhaps you’ll desire to look again. At the commencement of the year, along with the New Year's resolution, came the new predictions for what will be a high-quality buy and what to avoid. This doesn’t give us enough information actually, so we also get cable news channels giving us information every twenty minutes. The financial information in the news is a proverbial fire hose aimed at a teacup trying to get information into our heads.
The large dilemma with this for any kind of investors is that most of the trusted sources are recommending diverse methods of investing. It seems that the experts in these fields do not have anything solid to support their claims on. If they did, They would probably all be giving similar advice.
But they don't and they aren't. They get lucky now and then, but it seems that they are usually random stocks picked out of a hat. Perhaps all of the experts are just getting paid off by these companies?
So what’s the answer?
The best thing to do is probably to do some extremely extensive and worthwhile research. In this way, when there are experts appearing on TV, all making completely different predictions about a company, you’ll know right where not to go. You’ll be able to make your own selection and be certain that you’ll be safe, or at least at ease.
From there, it is vital to keep tabs on your investment. Watching its day to day performance isn’t always suggested, since stocks will obviously vary. However, keeping current on the news involving the company is an obligation. This should ensure that if the company is expected to have a dramatic rise in stock prices, you’ll know to buy more. Conversely, if the stock is expected to drop like a brick, you’ll know to sell ahead of time.
After all is said and done, investing is an important practice to have. It guarantees that you can build wealth and have some money saved up. It is important to learn for yourself how the financial marketplace works, and not rely on so called investors to do the work for you. That way, you can be convinced in the investments you’ve made and can feel proud of a first-rate achievement. It is one of the ways you make money without working. Not to say you don’t work but I’m saying that you don’t need to go into the office 8 hours a day to check up on your stocks.
About The Author
Kelly Q Johnson is the Webmaster of http://www.ficainvesting.com.
Looking to the so called specialist for your financial guidelines?
Perhaps you’ll desire to look again. At the commencement of the year, along with the New Year's resolution, came the new predictions for what will be a high-quality buy and what to avoid. This doesn’t give us enough information actually, so we also get cable news channels giving us information every twenty minutes. The financial information in the news is a proverbial fire hose aimed at a teacup trying to get information into our heads.
The large dilemma with this for any kind of investors is that most of the trusted sources are recommending diverse methods of investing. It seems that the experts in these fields do not have anything solid to support their claims on. If they did, They would probably all be giving similar advice.
But they don't and they aren't. They get lucky now and then, but it seems that they are usually random stocks picked out of a hat. Perhaps all of the experts are just getting paid off by these companies?
So what’s the answer?
The best thing to do is probably to do some extremely extensive and worthwhile research. In this way, when there are experts appearing on TV, all making completely different predictions about a company, you’ll know right where not to go. You’ll be able to make your own selection and be certain that you’ll be safe, or at least at ease.
From there, it is vital to keep tabs on your investment. Watching its day to day performance isn’t always suggested, since stocks will obviously vary. However, keeping current on the news involving the company is an obligation. This should ensure that if the company is expected to have a dramatic rise in stock prices, you’ll know to buy more. Conversely, if the stock is expected to drop like a brick, you’ll know to sell ahead of time.
After all is said and done, investing is an important practice to have. It guarantees that you can build wealth and have some money saved up. It is important to learn for yourself how the financial marketplace works, and not rely on so called investors to do the work for you. That way, you can be convinced in the investments you’ve made and can feel proud of a first-rate achievement. It is one of the ways you make money without working. Not to say you don’t work but I’m saying that you don’t need to go into the office 8 hours a day to check up on your stocks.
About The Author
Kelly Q Johnson is the Webmaster of http://www.ficainvesting.com.
stock volume
When looking for that next homerun stock that's shooting for the big numbers. Keep in mind that stock volume is just as important. Remember some simple keys about stocks and business in general will take you a long way into the stock game.
Keep in mind. It's a number game, it's all about supply and demand, it's dollar for dollar, and it's about getting the most out of your buck!
Just like anything the volume of the stock can tell you alot more great information on the stock then you would or could imagine. Just think, if a stock is trading more then 400K daily volume, that's pretty heavy and the stock is pretty solid. Compared to a stock that is trading at the 100K or less of daily volume. Well, this stock is going to have a bigger volume spike say if just one buyer puts in a trade for say over 1,000 shares. Well, if I am you or say if I am the owner of the company owning a lot of that stock knowin if I could make money by selling and repurchasing my own stock while making a few and quick bucks! I will probably go for it as well, meaning I could sell or buy those 1,000 or more shares that I have of that stock to make the volume go up or down...when in return will effect a stock that has daily volume of the low 100K daily trading volume. Are you getting the picture now. Now, we are not saying stay completely away from these stocks, just take a very very good look!
Also, look for the stocks that are trading in the high volume to have a what is called a volume spike. If you can get one of those waves then you could be setting sort of pretty...just remeber whatever goes up must come down...and you if your surfing just like the net stocks you have to catch that wave just right and hit that wave while it's breaking or other wise your going to wipe out! That means get in fast and get out fast while...take your gains and run! Then hope to check the next one that's all we have for you today!
Come back and check out more great in stock and investing information here at
Stocks Online Blog
Keep in mind. It's a number game, it's all about supply and demand, it's dollar for dollar, and it's about getting the most out of your buck!
Just like anything the volume of the stock can tell you alot more great information on the stock then you would or could imagine. Just think, if a stock is trading more then 400K daily volume, that's pretty heavy and the stock is pretty solid. Compared to a stock that is trading at the 100K or less of daily volume. Well, this stock is going to have a bigger volume spike say if just one buyer puts in a trade for say over 1,000 shares. Well, if I am you or say if I am the owner of the company owning a lot of that stock knowin if I could make money by selling and repurchasing my own stock while making a few and quick bucks! I will probably go for it as well, meaning I could sell or buy those 1,000 or more shares that I have of that stock to make the volume go up or down...when in return will effect a stock that has daily volume of the low 100K daily trading volume. Are you getting the picture now. Now, we are not saying stay completely away from these stocks, just take a very very good look!
Also, look for the stocks that are trading in the high volume to have a what is called a volume spike. If you can get one of those waves then you could be setting sort of pretty...just remeber whatever goes up must come down...and you if your surfing just like the net stocks you have to catch that wave just right and hit that wave while it's breaking or other wise your going to wipe out! That means get in fast and get out fast while...take your gains and run! Then hope to check the next one that's all we have for you today!
Come back and check out more great in stock and investing information here at
Stocks Online Blog
Thursday, August 04, 2005
Introduction to Private Equity Investing
Introduction to Private Equity Investing
Private Equity Investing is investing into privately owned companies. A private investor can inject capital into a business that needs it. In return they will receive part-ownership in the company. The principle is the same as investing in the stock market, however, there is much more room for growth if the company you invest in takes off. Venture Capitalists are private equity investors on a large scale. They make big investments expecting massive returns. Even on a low budget you can be a private equity investor.
In this article you will discover:
* What is Private Equity Investing?
* How Private Equity Investing plays a part in your portfolio
What is Private Equity Investing?
Private Equity Investing covers investments in unlisted companies at various stages of development. Private Equity Investment is often in the form of funding but may include a combination of funding and debt. The major portion of the investment return is realised when the company or business is sold or listed on a stock exchange. This ‘sale’ date is normally determined before the capital is invested. The two main kinds of Private Equity Investing are Venture Capital and Expansion Capital.
Venture capital
Strong Venture Capital candidates are normally ‘start-up’ companies that have innovative products that could result in outstanding growth and superior returns for investors. ‘Start-up’ or ‘venture capital’ investment is generally in the form of equity into the business with no security.
Expansion capital
‘Expansion’ or ‘development’ capital candidates are established businesses that are capital constrained but have good growth prospects. Typically, these companies have a history of profitability but would benefit from additional finance to continue growing. Investment in companies at this stage of their growth is substantially less risky than that in start-up companies but prospects for growth are also far smaller.
Regardless of the kind of Private Equity Investing that takes place it is clear that the potential for large returns exists. A downside is also present, however, sound due diligence and understanding the company you are investing in will reduce the risk of losing your money.
How Private Equity Investing plays a part in your portfolio
Large institutional investors have always been drawn to the private equity investing. It has the potential to offer long-term returns that are superior to standard stock investing. Stock market investment cannot make the returns that Private Equity Investing can.
The Tech Boom that ended in 2001 was an example of Private Equity Investing occurring on a large scale. Venture Capitalist invested millions and received tens of millions in return for a successful floatation. This is why Private Equity Investment offers such great potential, especially is your invested company decides to become listed. You then get a share of the profit generated.
For the average investor to have private equity play a major part in their portfolio they would need to invest in a Private Equity Fund. This is good option to consider as traditionally Private Equity Investing has been the domain of the largest investors due to the size of investment required and long investment terms. Private Equity is highly illiquid and the scale needed to achieve an appropriate degree of diversification can be immense. A Private Equity Fund can offer you great diversification in a number of Private Equity investment with all the due diligence conducted for you.
About the Author
Written & published by Murray Priestley, Managing Partner of Portofino Asset Management, private investment managers and publishers of the Portofino Report. www.portofinoasset.com
Private Equity Investing is investing into privately owned companies. A private investor can inject capital into a business that needs it. In return they will receive part-ownership in the company. The principle is the same as investing in the stock market, however, there is much more room for growth if the company you invest in takes off. Venture Capitalists are private equity investors on a large scale. They make big investments expecting massive returns. Even on a low budget you can be a private equity investor.
In this article you will discover:
* What is Private Equity Investing?
* How Private Equity Investing plays a part in your portfolio
What is Private Equity Investing?
Private Equity Investing covers investments in unlisted companies at various stages of development. Private Equity Investment is often in the form of funding but may include a combination of funding and debt. The major portion of the investment return is realised when the company or business is sold or listed on a stock exchange. This ‘sale’ date is normally determined before the capital is invested. The two main kinds of Private Equity Investing are Venture Capital and Expansion Capital.
Venture capital
Strong Venture Capital candidates are normally ‘start-up’ companies that have innovative products that could result in outstanding growth and superior returns for investors. ‘Start-up’ or ‘venture capital’ investment is generally in the form of equity into the business with no security.
Expansion capital
‘Expansion’ or ‘development’ capital candidates are established businesses that are capital constrained but have good growth prospects. Typically, these companies have a history of profitability but would benefit from additional finance to continue growing. Investment in companies at this stage of their growth is substantially less risky than that in start-up companies but prospects for growth are also far smaller.
Regardless of the kind of Private Equity Investing that takes place it is clear that the potential for large returns exists. A downside is also present, however, sound due diligence and understanding the company you are investing in will reduce the risk of losing your money.
How Private Equity Investing plays a part in your portfolio
Large institutional investors have always been drawn to the private equity investing. It has the potential to offer long-term returns that are superior to standard stock investing. Stock market investment cannot make the returns that Private Equity Investing can.
The Tech Boom that ended in 2001 was an example of Private Equity Investing occurring on a large scale. Venture Capitalist invested millions and received tens of millions in return for a successful floatation. This is why Private Equity Investment offers such great potential, especially is your invested company decides to become listed. You then get a share of the profit generated.
For the average investor to have private equity play a major part in their portfolio they would need to invest in a Private Equity Fund. This is good option to consider as traditionally Private Equity Investing has been the domain of the largest investors due to the size of investment required and long investment terms. Private Equity is highly illiquid and the scale needed to achieve an appropriate degree of diversification can be immense. A Private Equity Fund can offer you great diversification in a number of Private Equity investment with all the due diligence conducted for you.
About the Author
Written & published by Murray Priestley, Managing Partner of Portofino Asset Management, private investment managers and publishers of the Portofino Report. www.portofinoasset.com
stocks online, stock reviews, and more about stocks
stocks online, stock reviews, and more about stocks
1. Blue Chips
Shares of large companies with a long record of profit growth, annual return over $4 billion, large capitalization and constancy in paying-off dividends are referred to as blue chips.
2. Growth Stocks
Shares of such company grow faster; its managers typically pursue the policy of reinvestment of revenue into further development and modernization of the company. These companies rarely pay dividends and in case they do the dividends are minimal as compared with other companies.
3. Income Stocks
Income stocks are the stocks of companies with high and stable earnings that pay high dividends to the shareholders. The shares of such companies usually use mutual funds in the plans for middle-aged and elderly people.
4. Defensive Stocks
These are the stocks whose prices stay stable when the market declines, do well during recessions and are able to minimize risks. They perform perfect when the market turns sour and are in requisition during economic boom.
1. Blue Chips
Shares of large companies with a long record of profit growth, annual return over $4 billion, large capitalization and constancy in paying-off dividends are referred to as blue chips.
2. Growth Stocks
Shares of such company grow faster; its managers typically pursue the policy of reinvestment of revenue into further development and modernization of the company. These companies rarely pay dividends and in case they do the dividends are minimal as compared with other companies.
3. Income Stocks
Income stocks are the stocks of companies with high and stable earnings that pay high dividends to the shareholders. The shares of such companies usually use mutual funds in the plans for middle-aged and elderly people.
4. Defensive Stocks
These are the stocks whose prices stay stable when the market declines, do well during recessions and are able to minimize risks. They perform perfect when the market turns sour and are in requisition during economic boom.
Wednesday, August 03, 2005
How Can I Make Money Currency Trading?
How Can I Make Money Currency Trading?
Basically you can make money from trading money. If you have US dollars you can buy British pounds for a set rate and they trade the money back in the future at a different rate. This can make your gains immense. Much larger than gains made on the stock market. Just as the upside for currency trading is high, the downside is just as scary and can be immense also. There are currency trading brokers available on line that can provide strategies to limit your losses and maximise your gains.
If you are new to investing online, don't put your entire life savings into an online account. Start with a smaller sum, which will be easier to handle and keep track of. Once you feel confident, you can then decide to add more money to your investing online account.
Once online, many investors tend to concentrate on stocks, specifically large-cap domestic stocks. While these stocks should make up part of your portfolio, they shouldn't be ALL of it! Take into account your time horizon and risk tolerance to develop a well-balanced portfolio of stocks, bonds, and cash.
If you're new to investing online and are looking to open a brokerage account, there are some important facts you should know before choosing a broker. Each one has strengths and weaknesses, but not everyone sees a broker in the same way. For example, if you're comfortable finding your own research for investing online, then the deep discount brokers will work well for you.
Ask yourself…
What services are offered? Do they have research available? What is the cost to you for investing online? What are the real commission costs to do a trade, including any handling fees? How are confirmations sent to you -- by e-mail, by snail mail, by phone? Can you enter orders by phone, by e-mail, directly on-line? Does it cost extra to call and talk to a broker for help with your account?
In a low interest rate environment like the US, it can be a problem to invest in secure high-yielding fixed income investments. Most of these investments are around the base rate as set by the government. It would be difficult to get secure investments around the 3% mark. In New Zealand or Australia some fixed interest investments are worth 7.5% or 8%. An issue with making an investment abroad is that currency rates are so volatile that even though you make 5% on yield, that gain can be wiped out in currency rates.
Equally, currency rates can work in your favour and your investment will have an extremely high yield. To eliminate this uncertainty you can make a foreign investment today using a spot trade and also set up a forward trade at the time of investment maturity. This way you eliminate currency risk in your investment and can capitalise on foreign products. Setting up a forward trade costs money but in many instances the cost of the trade is minimal in comparison to the gains that can be made.
About The Author
Matt Clarkson is a specialist in both traditional and online business that has years of experience in borrowing money and investing for capital growth.
The Free Information Online website is designed to help people find unbiased advice and tips with out the worry of any high pressure selling.
For more free and unbiased advice go to… http://www.freeinformationonline.com
Basically you can make money from trading money. If you have US dollars you can buy British pounds for a set rate and they trade the money back in the future at a different rate. This can make your gains immense. Much larger than gains made on the stock market. Just as the upside for currency trading is high, the downside is just as scary and can be immense also. There are currency trading brokers available on line that can provide strategies to limit your losses and maximise your gains.
If you are new to investing online, don't put your entire life savings into an online account. Start with a smaller sum, which will be easier to handle and keep track of. Once you feel confident, you can then decide to add more money to your investing online account.
Once online, many investors tend to concentrate on stocks, specifically large-cap domestic stocks. While these stocks should make up part of your portfolio, they shouldn't be ALL of it! Take into account your time horizon and risk tolerance to develop a well-balanced portfolio of stocks, bonds, and cash.
If you're new to investing online and are looking to open a brokerage account, there are some important facts you should know before choosing a broker. Each one has strengths and weaknesses, but not everyone sees a broker in the same way. For example, if you're comfortable finding your own research for investing online, then the deep discount brokers will work well for you.
Ask yourself…
What services are offered? Do they have research available? What is the cost to you for investing online? What are the real commission costs to do a trade, including any handling fees? How are confirmations sent to you -- by e-mail, by snail mail, by phone? Can you enter orders by phone, by e-mail, directly on-line? Does it cost extra to call and talk to a broker for help with your account?
In a low interest rate environment like the US, it can be a problem to invest in secure high-yielding fixed income investments. Most of these investments are around the base rate as set by the government. It would be difficult to get secure investments around the 3% mark. In New Zealand or Australia some fixed interest investments are worth 7.5% or 8%. An issue with making an investment abroad is that currency rates are so volatile that even though you make 5% on yield, that gain can be wiped out in currency rates.
Equally, currency rates can work in your favour and your investment will have an extremely high yield. To eliminate this uncertainty you can make a foreign investment today using a spot trade and also set up a forward trade at the time of investment maturity. This way you eliminate currency risk in your investment and can capitalise on foreign products. Setting up a forward trade costs money but in many instances the cost of the trade is minimal in comparison to the gains that can be made.
About The Author
Matt Clarkson is a specialist in both traditional and online business that has years of experience in borrowing money and investing for capital growth.
The Free Information Online website is designed to help people find unbiased advice and tips with out the worry of any high pressure selling.
For more free and unbiased advice go to… http://www.freeinformationonline.com
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