Invest properly

How to Start to Invest My Money

2013-07-07T04:03:00.002-07:00

Step 1

Write down your goals. The National Endowment for Financial Education recommends beginning your investment plan with a detailed list, including the time frame and amount needed to reach each goal. This will help you narrow the huge number of investment options into a smaller pool of choices that have historically helped others meet goals similar to yours.

Step 2

Keep emergency funds. If the market drops and your car breaks down at the same time, you won’t want to tap into depressed investment assets to repair a muffler. The Securities and Exchange Commission recommends beginning a savings account to cover six months of expenses. This will give your new investment portfolio a buffer as you begin picking investments to meet your longer-term goals.

Step 3

Decide on the tax structure of your investments. If you’re going to save for retirement, ask your human resource people at work about a 401k or similar plan. This will allow you to save money on taxes while you invest. If you aren’t eligible for a workplace plan, research traditional and Roth IRA plans. Some of these plans allow you to contribute as little as $50 per month to an eligible mutual fund if you sign up for automatic monthly investments.

Step 4

Find appropriate investments for your goals. Many beginner investors start with mutual funds. Mutual funds will allow you to pool money with many different investors to buy diversified investments. The Investment Company Institute offers a free online guide to mutual funds that can help you understand how to choose a good fund for your portfolio.

Step 5

Open and fund your accounts. If you enjoy working alone, an online brokerage firm may be your best option because fees are considerably lower on investment trades than a full-service brokerage house. Full-service brokers may cost more, but you’ll have an investment professional who has passed tests required to help people find suitable investments for their goals. Because not all brokers are created equal, ask friends for referrals and check the BrokerCheck tool on the Financial Industry Regulatory Authority’s website to make sure your potential broker has a clean track record.

Merge Your Money

2013-07-03T23:41:00.001-07:00

Checking

Start by listing out all current checking accounts with balances to determine which ones (if any) you’d like to merge into one account.

If You Decide to Merge Accounts:

Transfer any automatic payments from canceled account to new account
Visit bank office to cancel one account and add spouse to other account
Order new checks with joint account information

If You Decide to Keep Separate Accounts:

Decide if you want to allow each other access to both accounts
Visit the bank office to add each other to your accounts
Switch any automatic payments that need to be rerouted

Savings & Investments

Start by listing out all current accounts with balances and decide whether to merge accounts or allow joint access.

If You Decide to Merge Accounts:

Visit bank office to set up any new access or accounts
Contemplate new investments

If You Decide to Keep Separate Accounts:

Look over your retirement accounts together, even though you won't be able to merge them
Change any beneficiary information to your spouse

Credit Cards

List all credit cards and balances and decide which cards you’d like to keep. Also, decide if you want to add each other on as designated users of each other’s cards.

If You Decide to Get a Card for Joint Purchases:

Open a new account
Decide on parameters for purchases
Set up a schedule for paying bills

Insurance

Car

Pick the better car insurance plan and adjust your rate for a married couple

Health

Compare health insurance plans and choose the better option

Life

Decide how much life insurance you need and purchase a plan
Insure your home/belongings as a married couple
Investigate long-term care insurance policies
Change any beneficiary information to your spouse

Loans

List all student loans, car loans, mortgages, and other liabilities
Talk to lending institutions about consolidating payments
Discuss adding each other to the titles of cars, property, and other assets

Services

Compare cell phone plans and pick your provider

If you have two Internet service accounts, see how much you'd save if you combined

Get rid of any duplicate accounts for cable, phone, etc.

If you belong to different gyms, see if one offers a joint rate

Are we really going to do this again?

2013-06-19T23:19:00.000-07:00

Just when I thought investors had figured out to behave, I took a look at some of the recent barometers of investor sentiment. And it led me to ask, “Are we really going to do this again?”

“This,” if you’re wondering, requires looking back to 2009. Remember how you felt? Remember being so scared that you couldn’t get out of stocks fast enough? I remember. In fact, I remember that many of us swore that we would never, ever invest in stocks again. But some of the previously burned have apparently been reconverted.

For instance, let’s take a look at the Consensus Index which, as of June 3, reported that 73 percent of investors are feeling “bullish.” Other measures have similarly shown positive feelings about the market (although the AAII Index reading isn’t quite as upbeat).

Stop and think about this change in attitude for a minute. Both the Standard & Poor’s 500 Index and the Dow have already gained more than 120 percent since March 2009, and the vast majority of investors are feeling “bullish” about the stock market.

Doesn’t this sound familiar?

Before you accuse me of being being all gloom and doom about the market, remember that I haven’t said anything about what I think the market will do. In fact, I have no idea what the market will do in the future. I am, however, nearly positive that I know what these excited investors are going to do.

By and large, these investors are investing based on emotion — my neighbor is in the market, I have to be in the market, too. But they’re only setting themselves up to repeat the mistakes of the market meltdown in 2008-2009. That’s because at some point (and this doesn’t require a crystal ball) the market is probably going to drop again. So investors who jumps back into the market today are likely to find themselves repeating that same pattern of buying high (now) and selling low (at some point in the future).

To be clear, I am not saying we should get out of the market. I am not saying we can time the market. I am saying that the idea of people feeling “bullish” worries me, especially when I see headlines like this in “USA Today“: “Bull run gets solid footing.”

So if you’ve decided that now is the time to increase your allocation to stocks, please take the necessary steps to avoid eventually selling out of fear once again:

1. Remember how you felt in March 2009.

Perhaps you have a reminder somewhere of how you felt in March 2009. Maybe it’s little note in a journal, or a blog post, that will help you recall that feeling of dread that caused you to sell. If you can’t find a reminder, talk to your spouse, your accountant, your financial adviser or anyone who could remind you of that moment. Try to bring those feelings back for a minute so you can avoid making the same mistake again.

2. Make sure you have a plan.

To be clear, my advice today isn’t about whether it’s a good or bad idea to invest in stocks. But it is foolish to invest without a plan, regardless of where the markets stand. So make sure you have a plan based on your goals. Pay attention to investment fees. Make sure you’re diversified. Then do your best to ignore your investments. For the average investor, that’s really the only way I know to keep your sanity.

3. Figure out how you’re going to avoid quitting next time.

Yes, there will be a next time. At some point, just like the best roller coasters, the market will take a drop, and they don’t ring a bell before it happens. So make sure you’re prepared for that moment. Have you placed some emotional guardrails in place to avoid going over the edge? You will want to sell, but unless it’s a part of a planned rebalancing, you can’t afford to let emotion drive you from the market again.

Ultimately, these investor sentiment surveys aren’t telling us anything we don’t already know. Average investors tend to get really excited about the market when things are going well. But the idea that we’re about to repeat the same cycle we just survived is ridiculous. You owe it to yourself to figure out a plan that gets you through both the ups and the downs of the market.

We know better. We should act like it.

How to Get A Home Loan

2013-06-01T05:38:00.001-07:00

Proof That You're A Tax-Paying, Income-Earning (Legal) Resident

Any bank is going to need to verify your income level and any debt you're carrying. To check this, lenders will ask for your key paperwork, which includes:

-Photo ID and Social Security card

-Proof of home payments (this could be rent) for the past two years

-Two years' worth of W2 forms and two months' worth of pay stubs

-Checking and savings account statements for the past three months

-A record of debts, including credit cards, student loans and car payments

-Records of any other real estate you own and mortgages you're paying

A Solid Credit Score

First, check your credit score for free. A credit score higher than 780 will get you a prime mortgage rate -- which is currently around 3.25 percent. A 720 credit score will still get you a great interest rate, but things get uglier from there. The absolute bottom of the credit threshold is a score of 620. If you're lower than that, most lenders won't consider your application.

How can you get your score back up? Keep renting for another couple of years, and during that time, pay off your credit cards and make timely payments on all of your loans (i.e. student loans or car loans). Make sure you don't miss any utility, cell phone or other payments by setting up online accounts so that your money is automatically deducted each month.

Check your credit score annually -- but keep in mind that any inquiries stay on your report for two years, so don't overdo it.

Perfect Rental

2013-06-01T05:34:00.002-07:00

1. Start Early

When it comes to real estate, the early bird catches the worm...or, in this case, the duplex with the extra closet space and huge bay windows. Starting your search early will up your chances of finding the perfect pad. The best time to start looking is at the end of the previous month, when inventory is the highest. That means if you need to move on August 1, you'll want to start checking out places around June 25.

2. Wait 'Til Winter

If your move-in date is flexible and you can deal with lugging boxes down icy sidewalks or in the middle of a blizzard, think about postponing your move. Between the cold weather and the holidays, fewer people are looking to move during the winter months, making November through March the best time to find great deals.

3. Hire a Broker

If you need to find a place fast and you have the cash to spare, you may want to use a broker. An experienced one can give you insider access to "pocket listings," which are apartments and houses that aren't advertised to the public. Another bonus to working with a broker: They'll do the legwork for you, weeding out listings that don't match your criteria or that don't live up to their descriptions. For real estate novices, a broker can identify whether something is actually a good deal and how much certain features are really worth. Just don't expect a broker to save you money -- their fees (which in some cities can be up to 15 percent of the first year's rent!) can cancel out any savings they're able to negotiate on your behalf.

4. Prioritize

It's easy to fall for fancy extras (sundeck, much?) or a great decor scheme, but don't let those eye-catchers make you blind to the things that will really matter when you live there. We're talking size, location (for example, how far it is from work or public transportation) and, if you have a four-legged family member, the pet policy. After you've got the nonnegotiables covered, use some of those extras you'd love to have (but don't necessarily have to have) to help narrow your search (think: proximity to restaurants, stainless-steel appliances, etc.).

5. Get Your Paperwork Ready

Your dream place is bound to come along, and when it does, you want to be ready. Renting isn't like buying a house, where paperwork and inspections can drag on for weeks. It typically only takes one to two days to process an application, and you don't want to risk losing a place you really love because you couldn't track down your old landlord for a reference or get your credit check done in time.

6. Speaking of Credit...Get It in Check

Having good credit is just as important for renting a place as it is for buying one. The better your credit score, the more negotiating power you have. If your credit score isn't anything to brag about, the landlord is less likely to budge on the rent and may even require you to pay a few months' rent up front or put down a bigger security deposit.

7. Get the Scoop

Talk to the current tenants and/or potential neighbors to get the 411 on how accessible the landlord is when problems arise, what repairs need to be done to the property, if pests are a problem and whether the couple next door likes to throw loud parties.

The Best Investments You Can and Should Make

2013-05-24T06:20:00.001-07:00

We all agree that time is more valuable than money.

At least, that’s what we say.

Then we turn around and spend hours watching bad TV we’re not even that interested in. Or 45 minutes on the phone with customer service fighting a $5 charge. Or years in a relationship or friendship we stopped feeling fulfilled by long ago.

But I’m convinced it’s not for a lack of good intent that we often end up treating time as our most fungible asset. (Hey, there’s plenty more where that came from, right? Well, not really … ) I think we simply get too busy to think about it, or don’t think we have the resources to make more time in our lives. We do have the resources, though. All it takes is a fresh look at how we really spend our days, hours and moments.

I’ve been thinking about time as a tangible asset not unlike money in many ways, and about ways to invest our time to yield higher returns—better memories, more hours well spent, even minutes that nourish us instead of fly by. After much research, experience and reflection, below are what I found to be the seven best investments you can make with your time. Think of these as blue-chip time investments that can’t go wrong—and that will yield high dividends for a more fulfilled life.

1. Invest in “Life-Extending” Time

Investing time in caring for your health is an obvious one that will certainly yield you more time, literally—in days, months, if not years tacked on to your life. Yet we often take our health for granted until we experience a wake-up call. Proactively invest your time in your health by eating well, exercising regularly, getting plenty of sleep and regularly seeing your doctors. Invest heartily in those non-physical markers of well-being as well: emotional, mental and spiritual health—you will reap many hours of well-lived life from them. Learn the habits of the Blue Zonepeople, from the regions in the world where people live the longest. Some common lifestyle traits they share? Building in natural movement and activity, lowering stress and being part of a faith-based community.

2. Invest in “Foundation-Building” Time

There’s a little saying that goes, “A stitch in time saves nine.” Create the time to make the right stitches, and you’ll be spared much time, hassle (and usually expense) later. Stephen Covey refers to this concept in “The 7 Habits of Highly Effective People.” According to him, we spend our time primarily on four types of activity:

• (1) urgent and important (crisis, deadlines, putting out fires)

• (2) non-urgent and important (building relationships, identifying opportunities, prevention, planning)

• (3) urgent and non-important (interruptions, phone calls, meetings)

• (4) non-urgent and non-important (TV, email, time wasters)

Covey says that we spend most of our time in sections (1) and (4), but the real area of personal growth is in (2). If you’re spending more time putting out fires than building the right foundations, you’ll never get out ahead of your to-do list.

3. Invest in “Do-Nothing” Time

Americans could use a little dose of “La Dolce Far Niente,” or “the sweetness of doing nothing,” something the Italians and many other cultures have mastered. In America, we don’t feel our time is well spent unless we’re either producing or consuming, says social psychologist Robert V. Levine, author of “A Geography of Time: On Tempo, Culture, and the Pace of Life,” which is a limited (and frankly, stressful) perspective. In other parts of the world, such as India, it’s normal for people to enjoy each others’ company without activity or even conversation. Investing in do-nothing time will help us slow down and experience a different pace of life, in which time’s value is not measured by its productivity.

4. Invest in “System-Creating” Time

It’s well-established in happiness psychology research that making small improvements to your life pays out exponentially in happiness. For example, putting a keyhook by the door so that you don’t spend five minutes every morning hunting for your keys. Or rearranging your closet so you can actually see everything, and not spend 20 minutes each morning figuring out what to wear. Or coming up with a better filing system for your digital photos, or your expenses (check out LearnVest’s My Money Center), so your personal admin time can be cut in half. Investing some up-front time in creating better, more organized systems will reap you lots of time in the long run.

5. Invest in “Cushion” Time

This is one of those time investments that’s so simple, but can yield such great results in your life. In the famous “Good Samaritan” study from Princeton University in 1973, researchers John M. Darley and C. Daniel Batson put an injured person in the path of several groups of people, to see who would stop and help: those running late, those who had just enough time, and those with plenty of time to get to their destination. They also controlled for people’s religious affiliation. The results: religious affiliation had no impact on whether the individual stopped to help the person—but whether the person was in a hurry had a huge impact. Only 10% of those in a big hurry stopped to help the person, 45% of those in a medium hurry did—but 63% of those not rushed at all stopped to help. This means that being in a rush may be preventing you from being the kind of person you want to be—the kind to stop and help someone in need. Building in lots of cushion time in your schedule and preventing “constant hurriedness syndrome” is a great investment in yourself and in the quality of life of those around you.

6. Invest in “Savoring” Time

A recent 2010 study published in the Association for Psychological Science found that wealthy people are unhappier because they have a lower “savoring ability” (the ability to enhance and prolong positive emotional experience), like taking in the colors of a sunset or the taste of a cold beer. Apparently, having access to the best things in life may actually undermine your ability to reap enjoyment from life’s small pleasures. It’s not a coincidence that savoring requires slowing down—taking a few extra seconds to really look at the colors of the leaves, or munching slowly to enjoy the texture of a bite. Investing time in savoring all the unique sensorial moments of your day will guarantee your moments don’t flash by in a dull blur.

7. Invest in “Time Assessment” Time

You wouldn’t keep spending or investing money without assessing how well things were going every month, quarter or year, and the same thing should apply to your time. How frequently you decide to take stock is up to you—but a good system might be:

• Five minutes a day to make sure you’ve invested time in at least one thing on this list

• 15 minutes a week to review your past week’s schedule and what you wish you had made time for, and what time investment made you happiest

• One hour a month (or two to three hours a season) of quiet time with a journal to assess the past season, how your time felt and how you’d like to invest your time in the coming season—this can pair nicely with the tempo of the period. For example, holidays may mean more family investment time, the new year can be career-focused, summertime may have a big leisure time component, etc.

• One day a year of time alone or with a friend or partner (best if you can physically go somewhere peaceful and different from your daily routine), assessing the past year and where your times and energies went, setting goals for the new year, and whether you are closer to achieving what is truly important to you in life

Stock Up: Investing for Beginners

2013-05-06T05:20:00.001-07:00

Think the stock market is just for bigwigs? Guess again. Truth is, with stock prices at a major low, this is a great time for market newbies to get in on the action.

Step 1: Analyze Your Accounts

Do you have money to invest? The cash you put into the stock market should be money you can afford to lose. Look at your budget and see how much is left over after housing, transportation, emergency fund padding, and your retirement savings -- stocks shouldn’t replace your 401(k) or IRA. Decide what chunk of that balance you can afford to put into the market, whether it’s $100 or $2,000.

Step 2: Buy What You Know

One of the first questions new investors often ask is: “How do I know what to buy?” Well, you can make money buying the brands you know best. Think of it this way: If you’re really into cycling, you know way more than the average person about which bikes are hot right now or the new products that are coming out. Use the knowledge you already have to make smart investments.

Step 3: Check out Big Brands

If you want to start with a safe, steady stock, major brands like Walmart, McDonald’s, and Disney (just to name a few) are solid options. With the economy in the tank, you can now buy shares for as much as 40 percent lower than they’ve gone for in the past, making it easier than ever to invest without breaking the bank. The trick is to buy low now and sell high later. Also check out Morningstar.com to see the top-rated funds.

Step 4: Test Your Skills

Before dishing dollars into the market, go to Investopedia.com and Marketocracy.com for tips and advice in a language that’s easy to understand. Another great resource is WeSeed.com, which allows you to create a portfolio using fake money. You can “buy” stocks in your area of expertise, see how your investments would do in the real market, and get comfortable with how stocks work before investing with real dough.

Step 5: Talk to People

Ask friends, family, and coworkers to weigh in on companies and products you’re thinking of investing in, and feel free to dish on the brands you know best. You can also check out Facebook, investment clubs, and our Money Matters message board.

How to Withhold the Right Amount From Your Paycheck

2013-05-06T05:10:00.004-07:00

Great questions. Let me start by saying this: If you want to build a secure financial future for you and your spouse, you absolutely must Pay Yourself First. Paying Yourself First means putting aside a set percentage of every dollar you earn and investing it for your future in a pretax retirement account, like a 401(k) plan.

How much should you Pay Yourself First? Here’s a simple rule of thumb: To be fair to yourself and your future, you should aim to Pay Yourself First at least one hour’s worth of income every day -- which works out to be about 12.5 percent of your gross income.

Paying yourself back for an hour a day makes a lot of sense if you start relatively young -- let’s say 25 or 30. But the number-one thing you can do to ensure a richer retirement is to max out your plan. In other words, commit to making the maximum contribution allowed. This year, the maximum 401(k) contribution allowed by the IRS is $16,500.

Only you and your partner can determine what your personal goals are when it comes to saving for retirement. How much should you save? The realistic answer is: as much as you can. There’s no better time than right now to start saving for your future. So make the decision today to start Paying Yourself First. Enroll in your plan. If you’re already enrolled, increase your contributions. If your company doesn’t offer a 401(k) plan, set up an Individual Retirement Account (IRA) instead.

Sneaky Ways to Save Some Serious Cash

2013-05-06T04:42:00.002-07:00

Forget Fives

If using cash, at the end of the day, empty your wallet. See any five-dollar bills? Nab 'em and put 'em in an envelope. Do this every day, and at the end of the month, deposit the bills into a savings account. You'll be putting money you would have spent on other things into savings, and you'll trick your brain into making it part of your daily routine. You'd be surprised how quickly it all adds up.

Spend Money to Save Money

Jean Chatzky, financial expert and author of Money Rules: The Simple Path to Lifelong Security, says that sometimes, it saves to pay. "I know it sounds untraditional, but I was a victim of the $30 blowout (once a week, sometimes twice) until I spent nearly $200 on a really good flat iron," she says. "Now I still go for special occasions, but it saved me at least $1,500, and probably more like $2,000, a year." Is there something that you splurge on that you can cut down? Try investing in favorite coffee to make at home, an awesome topcoat for your DIY mani, or an ice-pop maker to make your own frozen (cheap) treats.

Hide the Money (From Yourself)

The reason 401(k) plans work is explained in Chatzky's money rule: If you can't see it and you can't touch it, you won't spend it, she says. Automatically transferring money from checking into savings, an IRA, a 529 Plan, or even an account with a different bank where you get a slightly higher rate of interest (think online banks like ING) works spectacularly.

Grocery Shop Online

It's harder to avoid those impulse buys when you're seeing it on the shelf (and when you know you can dig into that cupcake soon). "That's why I'm now an online grocery shopping devotee," says Chatzky. You save money because you don't buy on impulse, and you can save gas to boot. Plus, many online services store your list, so you can get all your basics in one click (saving you time). Even with the $5 to $10 delivery fee, "I more than make up for it," says Chatzky.

Transfer Balances

If you have a credit card that seems to be killing you with fees, here's what to do: Call customer service and ask to lower your interest rate. If they say no, speak to a supervisor. And if that supervisor says no, speak to his or her supervisor. If you still hit a dead end, look for a cheaper card to transfer your balance to (hint: go to lowcards.com to find one). "But don't close the old card unless the annual fee is ridiculous, advises Chatzky. "Closing it will take your credit score down."

25 Ways to Improve Your Career Today

2013-04-24T08:39:00.001-07:00

I actually worked for a large corporation in long ago days. While the time there taught me that corporate life wasn’t the career that I ultimately wanted for myself, I also learned a lot from my mentors on ways to get ahead, much of which is good advice no matter what career choice you choose to take.

When it comes to your career, it is usually small things over a long period of time that add up to the success that you achieve. Getting into the habit of making small improvements on a daily basis will reap huge rewards over the long run. If you find yourself at your desk with some free time, here are 25 things you can do to help improve your career.

Find A Mentor: If you do nothing else on this list today, do this. Find someone (or several people) that you respect and ask them to mentor you. Most people will be more than happy to pass along advice that they have learned over the years which can be invaluable in helping your career. They will also be great people to use as a sounding board with ideas you have and help you figure out the best way to obtain the goals you are seeking to accomplish. A mentor can have amazing effects on your career and will make your advancements much easier.

Start Your Own Part-Time Business: I’m a firm believer that if you want to have the perfect job, you’re going to have to go out and create it yourself. While I have had many jobs over the years that I have truly enjoyed, it wasn’t until I started building my own sites and blogs that I realized what true passion for something was. Begin part-time and build slowly when you have free time, but start the process today. Five years from now you will be so thankful that you did and you might even find that it ends being your full time work.

Identify How You Procrastinate: We all do it, but if you can identify how you’re doing it and put in a system to discourage yourself from doing so, you will dramatically increase your productivity. My big vice was watching TV far too much and I’ve had to also ween myself from spending too much time on social networking sites as well. Once you have identified places that you are spending too much time, take steps to reduce the amount the time you spend on them and instead use that time to further your career.

Pinpoint Work Essentials: The big myth in business is that the ones who work the hardest are the ones that get ahead the most. Working hard is important, but working smart is just as important. Working smart means finding the areas within your job that are essential to your group and to the company and focusing most of your resources in those area. This is one of the best pieces of advice I ever received when working for a large company. Take some time to look at your job and what portions of it are most essential to others both inside and outside your group. If you pinpoint those areas that are most essential, you become the person that people come to when things need to get done. Definitely take the time to improve your leadership skills.

Begin Making Lists: I used to think that making lists was useless until I started making them myself in a way that was useful for me. I actually have two lists – one is a list of all the things I want to do and one is my daily must do list. On the daily list, I only place the three most important things I have to do that day and work on those three things until they’re done. Once finished, then I can go to my general list and choose projects from there. This ensures that I get those things that I may not like to do as much that would be constantly delegated to the end of the longer list. How you develop your list to work for you may be very different, but creating a list system will help you be more productive. Once you complete something, don’t throw the list away. Instead, date and file them in a work completed folder. This will allow you to have a documented list of all the tasks you accomplished which you can take out at your next performance review or when asking for a raise.

Learn a Second Language: As someone who was the worst student ever when it came to languages in school, I’m living proof that absolutely anyone can learn a second language. I think all of my high school language teachers would roll over in their graves if they knew I was proficient in Japanese. Being proficient in a second language can open up a lot of career opportunities and is well worth pursuing if you have an interest in one. There are plenty of resources online including those developed by the Foreign Service Institute.

Take Some Classes: Too many people feel that education ends when you receive that college diploma. In fact, it’s a never ending pursuit even if you aren’t taking formal classes. There are almost certainly classes you can take or skills that you can obtain that will make it easier for you to advance in your career. Take a few moments to talk with your boss or a mentor to find out what skills will make your advancement easier. Talk with your personnel department and ask if they will help pay for you to obtain these skills. Many will. It’s easier than ever to take classes while working full time with online education.

Update Your Resume: Take some time to look over your resume to update it and improve it. It’s always a good idea to have an up-to-date resume handy on the off chance that another opportunity arises. Make new copies and place them in your briefcase so that they are always ready to hand out.

Get Linked: Web 2.0 has made it easy to make new contacts with people that have a similar background and career interests. If you haven’t signed up yet, consider joining Linkedin which can greatly expand your networking resources. If you have already joined, take some time to explore and find some other people you may want to contact.

Send Some Emails: I have learned over the years that one of the most important things you can do in any job you have is to stay in contact with people you meet. This can be an easy way to improve your career, keep network lines open and create new network contacts. There are probably more than a few professional contacts that you have made that you haven’t touched based with in awhile. There may be some people that you have never met, but that you would like to make contact with. Spend a few minutes sending out emails to some of these people to reestablish contact or create a new contact.

Make A Few Calls: For the exact same reason that you should send out some emails, you should also make a few phone calls to catch up with peers and others. Calling is a more direct approach that will make sure that your message doesn’t get lost in all the other emails the recipient receives.

Make A Lunch Date: One of the most effective tools I used when I was working for a large company was the lunch break. First because I really didn’t like eating alone, but later because of all the advantages that come from it. Lunch dates give you an opportunity to talk with people about ideas you have in a more informal setting than the office. Making a lunch date is also excellent way to network and catch up with peers and mentors, or to meet someone new you’ve wanted to talk to. If everyone seems to be too busy with their work schedule, this is an excellent time to set up a meeting.

Go To Career Events: Take some time to research what meetings, presentations, talks or events are taking place in your area which are related to your career and sign up to attend. Not only are you likely to gather some good information, these are excellent places to meet new contacts and expand your contact network.

Join and Participate In Associations: If your career has an association, don’t only join it, but make an effort to participate in it. Most local chapters are always looking for people willing to lend a helping hand and doing so can easily put you in the position to meet those higher up in the organization. Again, this will open you up to a wide variety of new contacts and expand your network of contacts. It will also help you keep up with the newest developments in your career which has many advantages.

Show Some Appreciation: It’s amazing what a sincere, hand written “thank you” note can do for the amount of time it takes to create. With email and the paperless office, thank you notes stand out these days and definitely leave an impression on the recipient. Furthermore, they know that the time they spend helping you was appreciated and therefore will likely be more than willing to help out in the future as well. If someone has recently helped you out in some way, take a moment to thank them for their help. This is one thing that it’s hard to do too much of, so if in doubt, always side with sending the note of appreciation.

Reread All Your Documents: It took me a long time to break my bad habit of not rereading my writing before showing it to others, but I learned after a number of embarrassing mistakes which I should have known better. With the ease of spell checking, I got into the habit of assuming my work was fine after it cleared the spell check. It’s a bad assumption to make since a lot of things can go wrong even when words are spelled correctly. Get into the habit of rereading everything that you write whether it be an email, a report or any other work related document, especially after a spell check. You will avoid a lot of embarrassing amateurish writing mistakes and look a lot more professional in all your work.

Improve Your Writing Skills: Along the same lines as rereading your documents, you want to constantly work on improving your writing skills. Being able to put together reports, letters, proposals and other written information in a way that easily draws attention the the important points among all the information is a great skill to have that will get noticed. Take some time to go over basic writing techniques when you have some free time.

Improve Your Business Cards: Spend some time thinking about the impression you want your business cards to make and see if there are some changes that you can make to them to achieve what you want. I’m looking for more professional looking business cards that are still creative and will leave a lasting impression on anyone who receives them. Take a bit of time doing this and it may lead to an opportunity that would have never appeared if your business card was lost in the pile with everyone else’s.

Improve Your First Impression: While one of the big reasons I got out of the corporate world was so I didn’t have to worry about dressing corporate for good for first impressions, there is no doubt that they count. Dressing appropriately and having good hygiene and manners is important. Learn to make eye contact when speaking to people, smile, know how to introduce yourself confidently and always be on time (if not a bit early). Take a few moments to make sure that you are making a good first impression with everyone you meet.

Improve Your Public Speaking Skills: One of the most terrifying things for me is to do public speaking. Over the years, I have gotten a lot better, but when I first started teaching, even going in front of a classroom of high school students would have my stomach churning the entire morning before classes began. Being able to make a quality presentation is an important way to get noticed and improve your career prospects. Listen to the way that your favorite speakers deliver their information and adopt them into your own speaking. Join your local Toastmasters group to help you improve these skills.

Read: Get in the habit of reading at least an hour a day on a wide variety of topics. Some of it should be related to your chosen career and issues that pertain to it so that you keep up on the latest news and trends, but it’s not necessary to focus your reading habits exclusively on this topic. Reading should help spark new ideas, challenge your thinking process and expand your knowledge base – all things that can be helpful in your career advancement.

Clean Your Office Space: If your work area is anything like mine, it needs to have a good cleaning once a week or it will quickly get out of control. I actually have this marked down on my calendar to do every Friday afternoon and it’s amazing what 15 minutes will do to keep your desk organized. It may, however, take a bit of time to get to the point where all you need is 15 minutes to clean everything up. Start today to put things in order and put aside 10 minutes a day until you have your work area in the condition you want. You will be surprised at how much time you save looking for things and an orderly office leaves a good impression on anyone who works in your group or visits.

Set Some Career Goals: This is another one of those things that seems obvious and I thought I could get away with general ones that I had in my head, but now realize the power that comes with taking the time to write them down and make them both clear and specific. Give them a time limit if possible. While you may not always reach them, making them and knowing specifically what you want to achieve will get you a lot closer to them than not doing so. Set them for various time periods: 3 months, 1 year , 5 years, etc. and then begin working toward them.

Create a Blog or Website: Create a blog or website about your chosen career can be a great way to meet new people and share ideas. It can also be a great way to begin that part-time business mentioned earlier and may even end up being your full time job. I have found that creating content has a way of helping to crystallize the things that are truly important to me which goes a long way to helping me know what goals are most important for me to achieve. Starting any type of blog or journal will help you do the same. Just be sure that doing so will not get you in trouble with your company.

Love Your Job: Learn to love what you’re doing or begin looking for something else. Life is far to short to do something that you don’t truly enjoy. There are times when you may have to take a job that you don’t particularly like, but there is no reason that you have to be stuck there. If you don’t thoroughly enjoy what you’re doing, start implementing steps to get a job that you do love. There is nothing better in the world to get up every morning and knowing that even if you weren’t getting pays a dollar to do so, you would still be doing the same thing that you are doing. It’s also much harder not to improve your career opportunities when you love what you do because the energy and enthusiasm you have for what you do tends to be infectious and draw people to you. And if for some reason you don’t know what you love, start experimenting. That’s the only way to find out.

How do I Invest Wedding Money?

2013-04-07T12:14:00.002-07:00

While there is nothing wrong with asking for cash as a wedding gift, you want to do it politely, according to Peggy Post, author of Emily Post’s “Wedding Etiquette.” However, before investing any money you receive, you might want to talk to a financial planner or hire an investment broker, especially if you have no ideas about how to invest it. If you don’t want to pay someone else a fee for investment advice, there are some safer investments that you can manage on your own and still earn a return.

Step 1

Purchase savings bonds. U.S. savings bonds take seven years or more to mature and can be a good way to invest money that you don’t need for awhile. There is little risk in purchasing savings bonds, as you purchase a bond at a cost of half its face value. For example, if a bond will someday mature to $100, you pay $50 at the time you purchase the bond.

Step 2

Buy a certificate of deposit or open a money market account. These allow you to earn profits on your money with little or no risk. If you open a CD, you must leave the money in the account for a specific length of time, usually from several months to five years. Many times you can earn up to 5 percent on a one-year certificate of deposit. You can usually earn about 3 percent on money market accounts, which is still at least percent higher than most high-yield savings accounts.

Step 3

Open a mutual fund. Although this type of investment involves some risk, over time you can earn a return on your initial investment. You can save paying out money on commissions by buying a fund directly from the company that manages it instead of from a brokerage firm. In general, mutual funds require that you invest a minimum of $2,500.

Step 4

Put some of your wedding money into an IRA account. Not only will you receive tax benefits on your investments, you can save for your retirement. The money that you and your spouse place into your IRA accounts will be invested to earn you more money over the years. Continue to make regular deposits to your account.

How to Invest Money for a Child

2013-04-07T12:12:00.004-07:00

Teaching children to save and invest a portion of their money, whether from gifts or earnings, gives them a financial head-start on their future and the knowledge basis to help them make wise decisions forever. Because minor children can't own most types of investments in their own name, you'll need to do the bulk of their investing for them through a custodial account.

Step 1

Decide what you want the child's investments to do for them. You'll probably invest differently if the money is going for your child's college education, than if you are setting aside money for your child's ultimate retirement years.

Step 2

Determine your child's tax situation and the tax ramifications of different types of investments and accounts. Explore the tax implications of the source of the money you'll be using to invest for the child. For example, you can give your child up to $13,000 per year -- or $26,000 if you give jointly with your spouse -- to invest without incurring gift taxes, as of publication. The earnings on that money is still subject to federal income taxes. Consider the possibility of the so-called kiddie tax, which might result in a portion of your child's investment income being taxed at your income tax rate.

Step 3

Open a custodial account with the financial institution or institutions that best meet your child's needs. This might be your bank, credit union, mutual fund company, investments brokerage firm or other institution. As custodian for those accounts, you can make investment decisions on behalf of the child.

Step 4

Diversify the child's investment portfolio across a number of investment products and industry sectors to help reduce risk. Monitor the account and re-allocate assets in your child's investment accounts as she grows.

Nifty Ways to Invest Money

2013-04-07T12:10:00.002-07:00

You don’t need a big stash of cash to be an investor and get a higher rate of return than the pittance banks are offering on savings accounts and CDs. The Internet has opened up vast markets for those who want a more hands-on approach to investing and who want to invest in things they care about.

Socially Responsible Investing

Socially responsible investing seeks to couple doing well with doing good by recognizing corporate responsibility and societal benefit as valid investment objectives. Also known as “triple bottom line investing,” this type of investing seeks to simultaneously yield financial, social and environmental returns. The market for socially responsible investing has grown from $40 billion in 1984 to $3.07 trillion in 2012. There are many socially responsible mutual funds you can invest in just as you would any other mutual fund.

Microfinancing

Microfinancing is an investment vehicle that pools funds from investors and uses the fund pool to make small loans to low-income individuals all over the world who do not have access to conventional banking services. Modern microfinancing was pioneered by Dr. Mohammad Yunus, a professor of economics at Chittagong University. He began by lending to poor women in the village of Jobra, Bangladesh, in the 1970s and went on to found Grameen Bank in 1983 and win the Nobel Peace Prize in 2006. Microplace is one of many organizations that provides online registration connecting those seeking to invest to those seeking to borrow.

Peer-to-Peer Financing

Peer-to-peer is an online community-based lending business model. Companies like Prosper and Lending Club bypass the banking system and connect people who want to loan money with people who want to borrow. Borrowers fill out an application online that includes the purpose of the loan and are then screened for creditworthiness. If they qualify, their proposal is posted on the website for potential investors to view. By bypassing the banking system, peer-to-peer lending can offer better interest rates to borrowers and higher rates of return for investors.

Solar Energy

Investing in solar panels for your home can pay dividends. The initial cost in the system can be substantially reduced through various rebates, tax credits and incentives. Once your system is up and running, you can sell the electricity it produces to your utility company. As of spring 2012, 42 states and the District of Columbia have laws requiring utility companies to buy power generated by individuals at the retail rate. This means the excess energy collected by your solar panels during the day is sent back to the grid, causing your meter to run backward. When you use electricity at night after the sun is down, you pull electricity from the grid. “Net-metering” is the difference between what you draw and what you send back, but the payoff doesn’t just come from saving on your utility bill. If you generate more electricity than you use, utility companies must pay you the difference -- in cash. Some states even allow you to be your own power broker by issuing certificates for every 1,000 kilowatts generated, which the utility companies will purchase from you.

Good Ways to Invest Your Money

2013-02-01T04:52:00.001-08:00

So you have a great job, sweet apartment and a cool partner. Next you need to find a few good ways to invest your hard-earned cash. Sure, that new car looks really great, but you want investments that appreciate in value, offer you long-term growth opportunities and fit your busy lifestyle. A few key investment decisions can have you on the path to a better financial future.

Exchange Traded Funds

Exchange traded funds, or ETFs, look like index mutual funds, trade like stocks and have low transaction fees. Some ETFs allow you to buy as little as one share to start an investment account. Your best bet is to invest in a mixture of different ETFs that invest in foreign and domestic financial instruments. This diversifies your portfolio and hedges your hard earned dollars from experiencing too much lose should one sector of the market decline.

The Drip

Many companies offer dividend reinvestment plans (DRP) also known as Drips. Drips allow investors to invest small amounts of cash on a regular basis. For example, if you skip your daily latte for a week, you could invest that $20 in a dividend reinvestment plan. Some companies offer these plans for free. The key to investing in a Drip is consistency. It doesn’t matter how much you invest, but that you do it on a regular basis.

Certificates of Deposit

Let’s face it, everything can’t be as fast-paced as your lifestyle. CDs represent a safe, slow and steady method of investing. When you put your money in a CD it sits and it collects interest. The longer you let it sit, the more interest it collects. CDs don’t pay the highest interest rates in the world but they do provide a high-level of investment security. All banks require a minimum deposit to open a CD, but that minimum deposit ranges from $1 to $500 or more. The FDIC insures certificates of deposit up to $100,000.

The Best Way to Invest 1,000 Dollars

2013-02-01T04:48:00.002-08:00

If you have saved $1,000 for investing, you have a lot of good choices. That amount is enough to start making you some money, and it just happens to be the minimum amount required for many types of investments. In other words, you’re ready to do some research to find the best investment for you and start learning how to earn money with your money.

Indexed Exchange-Traded Fund

Investors can buy shares of an ETF just like they would a stock. The difference is an ETF is like a mutual fund in that it invests in hundreds of stocks. Investors don’t have to go through an application process like they would for a mutual fund. According to MSN Money, an investor should consider an indexed ETF. Indexed means the ETF buys all the stocks that are in an index such as the S&P 500. Your $1,000 is invested in many stocks instead of one. This provides diversity. If one stock goes down, the others may make up for it.

Mutual Funds

“U.S. News & World Report” recommends that investors put their $1,000 in a mutual fund. It particularly likes all-stock-market funds. These funds spread investments across all available stocks. That means if the markets go up, so will the $1,000 invested in it. Of course, the opposite is also true, but as Bankrate.com points out, there’s never been a 15-year period where stocks lost money on average.

TIPS

Investors who want to protect their money may invest in Treasury Inflation-Protected Securities. These are bonds issued by the government that have a special feature. In addition to the interest they pay, they go up in value every six months to match inflation. If investors think an inflationary period is coming, TIPS can be a way to protect an investment. The minimum purchase is $100, so an investor with $1,000 can get 10 of these.

Certificate of Deposit

An investor who wants to stay away from the stock market and bonds may buy a CD through a bank. The Federal Deposit Insurance Corporation insures CDs for up to $250,000 because they count a CD as a bank deposit. Shopping around can pay off. Banks compete for customers’ business and offer a variety of interest rates based on how long the investor is willing to leave the money in the bank. The longer the term, the higher the interest rate.

Real Estate

Investors don’t need a big down payment and lots of real estate expertise to get into the real estate market. ETFs and mutual funds both specialize in real estate. They tend to buy shares in real estate investment trusts. An investor may expect a dividend plus rising share prices as the real estate market goes up. Naturally, if the market goes down this investment could drop as well. Investors must use their own judgment, but this is a quick way to get into real estate for only $1,000.

The Best Ways to Safely Invest Money

2013-02-01T04:44:00.003-08:00

So, you’re thinking about ways to make money on all that hard-earned cash you’ve been saving, but not quite ready to take a walk on the wild side of high risk investments. Don’t stress. While "low-risk" is usually synonymous with "low return," there are several ways to safely invest your money.

Dropping that extra money into an interest-bearing savings account is one of the safest ways to invest your money. Savings account terms vary from bank to bank, so you should do a little research to see who offers the highest interest rates for the amount of money you're planning to put away. Some will offer higher returns with higher minimum balances, although the interest rates for savings accounts are generally lower than other types of investments. With a savings account you can access the money at any time, and it is federally insured.

A certificate of deposit, or CD, is similar to an interest-bearing savings account, but with a higher interest return, and penalties for withdrawing your money prior to the term of the deposit. In other words, if you invest in a CD, you won’t be able to access the money early without either paying a penalty, or forfeiting a portion of the interest you have earned. You purchase a CD from a bank or investment firm for a period that can range from six months to a year or more, after which time you are paid back the principal, plus all the accrued interest.

Treasury bills, commonly referred to as T-bills, are a safe investment, but typically offer very little return. To invest in treasury bills, you basically purchase bills at a discounted rate, and hold onto them until they mature to their actual value. In other words, you can buy $1,000 for $990, then be paid $1,000 once the bill matures. Bills can be purchased through brokerage firms, or online through the U.S. Department of Treasury’s Bureau of Public Debt’s financial services company, Treasury Direct.

Money market funds are a safer version of mutual funds, and are an ideal investment option for first-time investors. To understand how they work, you first need to understand what a mutual fund is. When an investment firm pools together money from several investors, to invest the large sum into stocks and other securities, it is known as a mutual fund. When the investors direct the money to be invested in a money market fund, the investment firm is required to invest in low-risk securities, such as government securities and certificates of deposit. Dividends are usually lower, as with any low-risk investment, but you are far less likely to lose your principal investment with a money market fund.

How do I Invest in Money Market Accounts?

2012-12-07T12:31:00.002-08:00

Money market accounts are a type of savings account that holds its money in a mutual fund, investing and reinvesting it in an attempt to keep the price per share as close to $1 as possible. You earn money with a money market account through a revenue sharing system, with the fund holder paying a portion of the interest they earn to the account holders. Money market accounts are often used to hold uninvested money and dividends, though you can invest wholly in the money market fund that your account is part of as well.

Step 1

Shop around at banks and brokerages in your area and online to find money market accounts in which to invest. Find the current average interest rate the accounts offer and whether there is a minimum investment amount required to open an account. You should also ask whether there are penalties for withdrawing money or a limit on the number of withdrawals you can make in a month.

Step 2

Compare different accounts based on average interest paid, account minimums and perks offered by the account such as debit card access or easy access to other investment opportunities. Consider whether the accounts offer higher interest rates when you have larger amounts held in them or if they feature a single rate regardless of your investment. Narrow down your choices until you find the money market account that will earn the most money without subjecting you to unnecessary restrictions.

Step 3

Visit the bank or brokerage that offers the money market account you want and tell a teller or broker that you want to set up an account. You'll need a photo ID or other proof of identification to open the account, as well as an initial deposit equal to or greater than the minimum deposit for the money market fund. The teller or broker will help you fill out the account application and will set up your money market account for you.

Step 4

Make regular deposits into your money market account to keep your balance growing. If your job offers direct deposit options, talk to your boss to see if you can get a portion of your paycheck deposited directly into your money market account. If you have an investment portfolio, deposit any dividends you earn into your money market account if you don't have them automatically reinvested into the stock or bond that generates them.

Step 5

Review your account statement each month to keep track of the performance of your money market account. Invest money from your account into stocks or bonds periodically, especially when the interest rate for your account is dropping. Deposit money earned from stock sales into your account until you reinvest it so that you'll keep earning interest on it. Keep money flowing into your money market account, but don't be afraid to take money out when you find investment opportunities that will earn more than your current interest rate.

How do I Invest in Stocks With Little Money?

2012-11-25T01:16:00.005-08:00

In fact, unless you're really hurting, there is really no reason why you can't invest at least a little money each month. Logistically, the options exist to make it so. And, there are many investment firms and plans willing to take just a few bucks off of your hands on a regular basis.

Step 1

Open an online brokerage account. While some firms require cost-prohibitive minimum initial investments, others use low or no minimums to get an account started. And it's not just the primarily online brokers, some big-name, traditionally brick-and-mortar brokerages let you in with as little as $100.

Step 2

Invest in no-or-low fee products through your brokerage account. If you are only investing $50 or $100 a month, it makes no sense to plop down $5 to $20 in commission each time you buy a stock or other equity. Some online brokerages, however, offer at least some products commission-free. For example, many brokerages have a list of preferred mutual funds, including their own if they run any, that you can get into for no fee. You won't be picking individual stocks; instead, you'll get an assortment of them if you buy into a stock mutual fund. Some companies specialize in small-time investors, charging a relatively small monthly fee to cover a certain number of monthly trades.

Step 3

Enroll in a Direct Stock Plan (DSP) or Dividend Reinvestment Plan (DRIP). These plans allow you to get in with no or a low initial investment and small -- usually between $15 to $100 -- monthly investments. DSPs allow you to purchase stock directly from the company of interest, while DRIPs require a middleman or plan administrator. It's not always the case, however, DSPs and DRIPs generally require you to own one share of the company's stock before getting into the program. You can get this one share through your above-mentioned brokerage account or via companies that specialize in selling you one share of stock to facilitate DSP or DRIP enrollment. Once in, you can reinvest dividends in more shares of the company's stock.

Step 4

Buy a stock mutual fund directly from the fund family. Often, when you go to buy a mutual fund from your brokerage account, you run into high minimum initial investment amounts, often $1,000, $2,500 or more. In some instances, you can go to the mutual fund's website to open an account. Some funds waive or reduce minimum initial investments if you agree to an automatic monthly investment plan.

How do I Invest Money in the Bank?

2012-11-10T09:20:00.002-08:00

If you are looking for a risk-free way to invest your money and help it grow, the answer might be as close as your local bank. Banks offer a number of investment options, including insured products like certificates of deposit, money market accounts and savings bonds, as well as more volatile choices like stock and bond mutual funds. Choosing the right options for your needs can allow your money to grow without undue risk.

Step 1

Check the Federal Deposit Insurance Corp. (FDIC) coverage status of the bank by visiting the FDIC website (see Resources). As long as the bank is fully FDIC-insured, your certificates of deposit, savings accounts, checking accounts, money market accounts and other bank instruments are insured up to $250,000. This FDIC coverage does not extend to investment vehicles offered by the bank, such as mutual funds and stocks. Always get a clarification on FDIC coverage before investing in any product offered by your bank.

Step 2

Decide what types of investments you are interested in. Choosing bank products that are FDIC-insured keeps your money totally safe, but the returns will not be as high as riskier investments like mutual funds. Banks sell not only guaranteed investments but riskier ones as well, and it is important for customers to know the difference.

Step 3

Request a rate sheet from a teller at your bank. The rate sheet is a list of all the accounts at the bank, both deposit accounts and loan products. The document lists the current interest rate on all those products.

Step 4

Compare the yield on liquid investments like money market accounts and savings accounts to less-liquid choices like certificates of deposit. The rates on CDs tend to be higher than either money market or savings accounts, especially if you are able to keep your money tied up for a number of years. You need to weigh the benefits of a higher rate against the inconvenience of not having ready access to your cash.

Step 5

Discuss any additional investment options with an account representative at your bank. Ask for full disclosure of any fees and expenses, as well as any commissions involved in the sale. If you are interested in mutual funds, you might be able to find less-costly investment options by working directly with a low-cost no-load mutua- fund company.

How to Invest Money at a Young Age

2012-10-29T04:09:00.001-07:00

The old saying "time is money" is absolutely true when it comes to the world of investing. Time value has a powerful effect on investments, so those who begin investing even small amounts while they are young have a huge advantage over those who invest considerably more later in life. Successful investing for young people isn't rocket science, but like virtually every other endeavor in life, you have to have a plan.

Step 1

Make a budget. It is hard to get where you want to go if you don't know where you are. A budget gives you a snapshot of where you are financially. Take a sheet of paper and divide it in half. On one side, list all of your income for the month. On the other side, list all of your expenses for the month. Hopefully, the total amount of your income exceeds the total amount of your expenses. Now that you know where you are financially, you can start your investment plan.

Step 2

Open a savings account. The first rule of investing is "pay yourself first." Determine how much you can afford to save from every source of income, whether it is a paycheck or your monthly allowance. Take that amount first, and deposit it in an interest-bearing savings account. Most banks offer low- or no-fee savings accounts for young people and students, and the money you deposit will earn compound interest. This means that not only does your deposit earn interest, but the interest earned by your deposit also earns interest. Every time you make a deposit into your savings account, you are giving yourself a pay raise.

Step 3

Increase your rate of return. Set a goal for your savings that is sufficient to cover three to six months of your living expenses. Once you have achieved that goal, it is time to begin increasing the rate of return on your additional savings. Bank money market accounts typically pay more than passbook savings accounts but usually require a larger initial deposit. Bank certificates of deposit typically pay more than money market accounts but usually require the deposit to remain in place for an extended period of time.

Step 4

Explore equities. Equities represent ownership in real property. The stock market is a common source of equity investments. Each share of stock represents a proportionate ownership of the underlying corporation. Equity investments provide investors with a greater opportunity for increase through price appreciation and the payment of dividends. They also involve a greater degree of risk than savings products that are insured by the federal government. The best investment advice when it comes to equities is don't put all your eggs in one basket. Rather than purchase single stocks, consider buying shares of a good-quality mutual fund. These pooled investments offer both diversification of investments and professional management.

Step 5

Plan for retirement. Investing is a long-haul process. Money you put in savings should be readily accessible, but you should be able to leave the money you use for investing alone for at least five years. Consider putting a portion of your investment money into a tax-advantaged retirement account such as a standard individual retirement account (IRA) or a Roth IRA. This will allow your investments to grow faster because the funds inside these accounts are not subject to current income taxation. Keep in mind that funds placed into these types of accounts incur a significant tax penalty if they are withdrawn before you turn 59½ years old.

How to Recover Lost Money in an Investment

2012-10-29T03:58:00.001-07:00

Any time you make an investment, there's a chance you may lose money. This can happen from bad investment performance, your investment company going bankrupt, or outright fraud. When you lose money in an investment, you might be able to recover it, but it depends on why your investment went sour.

Investment Losses

Investments are a balance between risk and return. Risky investments like stocks pay a much higher return than bank accounts. Unfortunately, these investments can also tank big-time. If you lose money from bad investment performance, you should reevaluate your current strategy. Were your losses from bad choices or were they from a market downturn? Stocks in general may sometimes lose money during a short period but make up the losses plus much more over the long run. If you think your investment choices are still sound, don't panic and wait for the market downturn to end. Your stocks should eventually rebound and recover your lost money.

Company Bankruptcy

You can also lose money if your bank or investment firm goes bankrupt. The Federal Deposit Insurance Commissioner (FDIC) protects regular bank accounts. If your bank goes bankrupt, the FDIC insures up to $250,000 of your bank deposits. Contact the FDIC to reclaim your lost money. The government also insures brokerage accounts with the U.S. Securities Investor Protection Corporation (SIPC). This agency insures covers you for up to $500,000 of funds lost to bankruptcy. Note that the SIPC only protects against your firm going bankrupt, not against your regular losses in the stock market. Unless you get an adrenaline rush from living dangerously, make sure your bank or brokerage are covered by FDIC or SIPC.

Inappropriate Financial Advice

Financial advisers like insurance agents and stockbrokers have a legal obligation to serve there clients properly. They are not allowed to recommend products that don't fit your situation. For example, a stockbroker should not recommend risky stocks to a retiree who cannot afford to lose money. If you lost money because you were misled into buying inappropriate investments, you can file a complaint with the Securities and Exchange Commission (SEC) or FINRA, the Financial Industry Regulatory Authority. If these agencies agree with your claim, you may get your money back and your adviser may lose his license. Once again, this only applies against misleading or improper advice. If you ask for risky stocks and you lose money, you're out of luck and can't file a claim.

Illegal Investment Schemes

Investors also lose money from outright fraud. Criminals set up illegal investment schemes, like Ponzi schemes, to steal money from investors. If you lost money from a fraudulent investment, you should contact a financial attorney. She will review your case and determine what options you have to recover money. You may be able to reclaim money from the criminals or the government may create a fund to return your money. Each situation is different and a financial lawyer helps you find the best solution.

How do I Raise Investment Money?

2012-10-29T03:54:00.000-07:00

Investments should be made with money you don't expect to need in the foreseeable future. That's because the securities markets fluctuate over time and if you need to access that money to pay bills or purchase a car, you may be forced to sell out of your investments at a market low, losing money. It is not easy to save money to start a serious investment portfolio. It involves keeping a careful budget and putting away a small amount weekly or monthly until you have enough to invest. Alternatively, use services such as Sharebuilder.com, that allow you to invest a small amount in stock at regular intervals and grow your portfolio through these "odd-lot" purchases over time.

Step 1

Make a list of your monthly fixed expenses and a list of your quarterly, semi-annual and annual expenses. Compare these to your income. A bookkeeping program such as QuickBooks is useful for analyzing your income and expenses because it shows percentages spent on various categories of expense. Your bank may have such a service.

Step 2

Analyze where you spend your money. Chances are you will be surprised at how much you spend beyond your fixed expenses for rent, utilities and commuting. You can't cut back on the fixed expenses, but it is likely that you can trim enough out of your discretionary expense to save 5 or 10 percent of your income for investing.

Step 3

Set up an automatic withdrawal from your bank account. This can be done easily online or through your bank branch, and the money can be deposited in a savings account, in a bank investment account or with an outside brokerage firm.

Step 4

Accumulate your money in a brokerage firm that allows you to purchase odd-lots of stock or put your cash in a money market account. Check the fees involved, particularly for the purchase of odd-lots, as they can be quite high at some firms while others charge you a small fixed transaction fee.

Step 5

Make use of dividend reinvestment plans (DRIP). It is always a good idea to start out investing in conservative, dividend-paying stocks such as utilities and certain corporations. They will allow you to automatically have your dividend income reinvested in more shares of stock for little or no transaction fee. Over time you can painlessly accumulate a large amount of stock.

How to Invest in Gold

2012-10-23T04:38:00.001-07:00

Whenever you buy gold, the first rule of thumb is dollar cost averaging -- putting a fixed amount of money towards gold every month regardless of the price. For the average investor, this strategy spreads risk out over time and lessens the downside.

Most money managers advocate anywhere from 3%-10% in gold. More bullish managers recommend an allocation as high as 20%.

Gold is protection, insurance against inflation, currency debasement, and global uncertainty. Here are four ways you can invest.

1. Gold Bullion

Buy physical gold at various prices: coins, bars and jewelry. Some of the most popular gold coins are American Buffalo, American Eagle and St. Gauden's. You can store gold in bank safety deposit boxes or in your home. You can also buy and sell gold at your local jewelers. Other companies like Kitco.com allow you to store gold with them as well as trade the metal.

When you buy gold coins or bullion, avoid big premiums. You want to buy gold as close to the spot price as possible, or a 10% premium at most. The higher the premium, the higher the gold price will have to rise in order for you to profit.

Coins typically come from the national mint, where they are made and sold at a 4% mark up -- the retailer's margin is 1% to 3%.

To calculate the premium of a gold product, subtract the spot price from the price you are being quoted, divide that number by the spot price and multiply by 100.

Had you purchased a one ounce gold bar at Kitco.com for $1,225.90 -- using a spot price of $1,200 -- the bar has a 2.1% mark-up. This means that the gold price only has to rise 2.1% from spot price levels for you to break even on your investment.

Premiums, though, can mount as high as 75% or more based on the gold item.

To avoid getting ripped off you must establish why you want to buy gold bullion. If you want to own gold as a long term investment, then buy gold as close to the spot price as possible.

If you want to own gold to use as money, if you are a "survivalist" you want to buy a tank of gas with gold as Jon Nadler, senior analyst at Kitco.com says, then you need smaller gold coins like one tenth an ounce and will have to pay the premium.

Nadler's take is that an individual investor shouldn't spend more than a 10% mark up when buying gold, but acknowledges that "everyone has their own threshold."

Where investors also tend to go astray is by buying semi-numismatic or numismatic coins, otherwise known as rare coins, which come with huge premiums that seldom recoup their value.

A good rule of thumb is to leave rare coin buying to rare coin dealers. Nadler advises that consumers interested in rare coins go professional auctioneers like Bowers & Merena orChristie's who have experts on staff and can objectively grade the coins the same way an antique dealer would appraise goods.

If a broker tries to sell you a story with the coin like it's from the "old world and there are only a few thousand in existence" experts advise to go elsewhere.

"Don't confuse investing in gold with the things being sold as gold investments," cautions Nadler. "You want something that tracks the price of gold as close to dollar to dollar as possible."

2. Gold ETFs

Gold exchange-traded funds are a popular way to have gold exposure in your portfolio without the hassle of storing the physical metal. First, you can invest in one of three physically backed ETFs, which track gold's spot price.

The most heavily traded ETF is SPDR Gold Shares (GLD ), which saw record inflows as fears ballooned over Europe sovereign debt fears and a struggling U.S. economy. Big guns like George Soros and John Paulson own the stock.

iShares Comex Gold Trust (IAU ) is the cheapest ETF with a 0.25% fee.

The newest gold ETF is ETFS Gold Trust (SGOL ), which launched in September 2009. This gold ETF actually stores its gold bullion in Switzerland and gives investors access to different types of gold.

For each share of these ETFs you buy, you generally own the equivalent 1/10 an ounce of gold. If investor demand outpaces available shares then the issuer must buy more physical gold to convert it into stock. Conversely, when investors sell, if there are no buyers, then gold is redeemed and the company must then sell the gold equivalent.

Gold is a tool for investors and for traders looking for gold exposure or as a way to hedge other gold positions. The result can be rough violent price action.

Expense ratios can range from 0.25% to 0.50% and your value erodes the longer you hold the shares. The fund must sell gold, for example, periodically to pay for expenses which decreases the amount of gold allocated to each share.

There are also two types of gold stored in the ETFs, allocated and unallocated. Allocated gold is the bullion held by the custodian, big banks. Custodians provide a bar list of all the individual allocated bars daily and are typically audited twice a year, paid for by the sponsor, by an independent party like Inspectorate International.

Unallocated gold relates to authorized participants like JPMorgan or Goldman Sachs who trade gold futures. Futures contracts are often bought if the trustee needs to create new shares fast and doesn't have the time to buy and deliver the bullion. Typically allocated gold far outweighs the unallocated gold and the amounts are tallied each day by the custodian. The ETF also has a set amount of time when it must deliver the physical gold into the vault.

Because you own shares and not the physical metal, precious metal ETFs may be sold short, so two people can own the same "gold" -- the original owner and the investor who is borrowing the shares. Although baskets of shares are allocated to specific gold bars, which can be found in the ETF's prospectus, an investor must share ownership.

Profits made on investments in physically backed ETFs are also taxed like collectibles, at around 28% -- an investor gets taxed as if he owned bullion, when in reality he just owns paper.

There is the possibility of redeeming shares for physical gold, but that arrangement is conducted with brokers and is typically more difficult. Investors have to redeem in huge lots, like 500,000 shares, not really viable for the retail investor.

ETFs are also very controversial. Many complain that investors can't know if their gold really exists. Also, if a bank storing the gold fails, the ETF, aka investor, becomes a creditor.

There are other types of ETFs.

If you want the opportunity of redeeming your shares for gold, another option is Sprott Physical Gold Trust ETV (PHYS), which is a closed-end mutual fund that gives investors the option of trading in their shares for 400-ounce gold bars.

The fund can trade at a huge premium or discount to its net asset value at any time and has higher fees, making it more expensive to invest in. An investor can obtain physical gold on the 15th of every month, although the holder has to make transportation and storage arrangements.

There are also two other ETFs to consider. Market Vectors Gold Miners (GDX), a basket of large-cap mining stocks. and Market Vectors Junior (GDXJ), a group of development-stage miners. They both have market caps of $150 million or more and have traded at least 250,000 shares per month for six months.

3. Gold ETNs

If you want more risk, try exchange-traded notes, debt instruments that track an index. You give a bank money for an allotted amount of time and, upon maturity, the bank pays you a return based on the performance of what the ETN is based on, in this case the gold futures market. Some of the more popular ones are UBS Bloomberg CMCI Gold ETN (UBG ), DB Gold Double Short ETN (DZZ), DB Gold Short ETN (DGZ) and DB Gold Double Long ETN (DGP).

ETNs are like playing the futures market without buying contracts on the Comex. ETNs are flexible, and an investor can trade them long or short, but there is no principal protection. You can lose all your money.

4. Gold Miner Stocks

A riskier way to invest in gold is through gold-mining stocks. Mining stocks can have as much as a 3-to-1 leverage to gold's spot price to the upside and downside.

Gold miners are risky because they trade with the broader equity market. Some tips to consider when picking gold stocks are to find companies with strong production and reserve growth. Make sure they have good management and inventory supported by either buying smaller-cap companies or by maintaining consistent production.

Global gold production has been declining since 2001, only recently experiencing more juice, and big miners keep their gold reserves flush by buying or partnering with small-cap companies, which are in the exploration or development stage.

Many investors make the mistake of buying small gold miners that are in the exploration phase with no cash flow. Picking among these stocks is like buying a lottery ticket, very few companies actually strike gold and become profitable. Even fewer become takeover targets.

With gold prices high, gold companies can make more for every ounce of gold they produce, but their net profits depend on their cash costs; how much it costs them to produce an ounce of gold. Those factors vary from company to company and are subject to currency issues, energy costs and geopolitical factors.

Adam Graf, director of emerging miners for Dahlman Rose & Co., models 50 companies on a forward basis using forward curves. "On a theoretical basis, if gold moved up $100 an ounce, what does the change in the current value do based on what the forward looking cash flow should do."

Another factor to consider when picking gold stocks is how quickly the company will benefit from higher prices. Randgold Resources (GOLD ), a miner in Africa, is almost 100% correlated to gold prices. CEO Mark Bristow says that the company benefits from gold prices in almost two days.

You also have to buy the right amount of gold stocks. J.C. Doody, editor of goldstockanalyst.com, bets on 10 gold stocks because it allows him to take some risk with explorers or junior miners as well as get the safety from a major.

"Frankly there aren't 30-40 stocks in the gold space worth buying," says Doody who would rather be heavily invested in 10 than over invested in 2 and under invested in 40. "If you've got too many the best you're going to be is a mediocre mutual fund and if you have too few you're just taking on too [much] risk."

If you do go the gold stock route, you have to be prepared for the rollercoaster ride.

Leverage swings both ways so if the gold price drops 10%, gold stocks can plummet 20%-30%. Investors often get too spooked too fast and wind up selling out of gold stocks at the wrong time.

"It inhales and exhales 20-30% at least once or twice a year," says Pratik Sharma, managing director at Atyant Capital who urges investors to not get spooked by volatility. "Ultimately what you have to realize 5-6-7%... these things are meaningless when you have a sector that moves 20-30% several times a year on the downside."

Where to invest in 2012's 2nd half

2012-10-21T13:28:00.001-07:00

What would you do if you earned a year's pay for six months' worth of work? Would you pocket the money and run? Or stick around hoping for another outsize check? That's the dilemma facing investors now. Since the start of the year, the Standard & Poor's 500 Index ($INX -1.66%) has returned nearly 8%. That matches or beats most forecasts for all of 2012 and approaches the U.S. stock market's long-term record.

Here's the dilemma for prognosticators: Just when many (including us) determined that their targets for 2012 had been too conservative, a series of surprisingly tepid economic reports cast doubt on the strength of the recovery, one of the foundations for this year's rally. For the record, we believe a springtime hiccup in stock prices was a pause in a continuing upward, albeit moderate, climb. We now think that U.S. stock prices could return 12% to 15% this year, putting the Dow Jones industrial average ($INDU -1.52%) in the neighborhood of 13,800 and the S&P 500 index at about 1,425.

Considering that the indexes were within shouting distance of our target in early May, our prediction could turn out to be overly cautious -- again. Or it could be that any gains at all from recent levels will be hard-won in a choppy market. You can make a case for either scenario.

For all the focus on picking a price target and forecasting a return, trying to gauge how much gas the market has left misses the main point. And that is that stocks, particularly in the U.S., still represent good value given the earnings potential and rock-solid finances of corporate America, the reasonable strength of the economy and the competition (or lack thereof) from fixed-income investments. (Treasury bonds, for example, are yielding less than 2% for 10-year debt, and savings accounts and money market funds are paying practically nothing.)

"Whether the market has gone up or down is less important than how it's priced," says Pat Dorsey, the president of Sanibel Captiva Investment Advisers. "We still think equities are reasonably cheap."

The case for stocks

Owning a piece of corporate America sure seems like a good deal. Analysts expect companies in the S&P 500 to log earnings growth of 6% this year and 10% in 2013. At 1,354, the S&P sells for about 12 times projected earnings for the coming 12 months, below the 10-year average of about 14%.

Indications are that as investors become more confident about the health of the economy and corporate finances, they are becoming more willing to pay a little more for stellar company profits. And as price-to-earnings ratios climb, stock prices will climb as well. The crucial question is how long companies can keep the earnings streak going. "Earnings sustainability is something we're paying attention to," says Greg Allison, a portfolio strategist at RegentAtlantic, an investment firm in Morristown, N.J.

Dividend growth is just as stunning. Analysts at Bank of America Merrill Lynch expect S&P firms to boost payouts by an average of 15% this year and 9% next year. "From a micro perspective, at the corporate level, things are still pretty darn good," says Sonders.

It's the macro perspective -- the big economic picture -- that gives investors intermittent fits. After the economy got off to a buoyant start this year, some reports revived fears that it was sinking. Kiplinger's expects gross domestic product to grow a modest 2.3% this year, but push closer to 3% next year -- not bad for an economy that a lot of people thought was headed into another recession at this time last year. So far in 2012, the economy has produced an average of 200,000 new jobs per month. Depending on how many job seekers re-enter the market, the unemployment rate could fall to about 8% this year, from an average of 8.9% in 2011.

The news isn't all good. Politicians are likely to push us to the edge of a fiscal cliff as the end of the year approaches. Unless lawmakers act before the start of 2013, the so-called Bush tax cuts will expire, including the preferential 15% rate on qualified dividends. The temporary payroll tax cut will vanish, along with some jobless benefits. And $1.2 trillion in spending cuts over the 10 ten years will be triggered if Congress can't reach a budget compromise. "We could be in a recession in 2013 if all of those things expire," says Lisa Shalett, the chief investment officer of Merrill Lynch Global Wealth Management. When push comes to shove -- and it will -- we expect a compromise.

Then there's continuing turmoil overseas. A eurozone recession and slowing growth in emerging markets are bad news for growth in U.S. exports, which could slow from 6.7% last year to 4.2% this year, according to IHS Global Insight. High gasoline prices are squeezing consumers, with tensions in Iran threatening to disrupt supplies. But consumers are in much better shape this year than last. The rate of consumer inflation rose from 1% at the start of last year to nearly 4% by last fall -- the equivalent of subtracting three percentage points from household income growth. This year, the trend has reversed, as food and other commodity prices have fallen and gas prices have slowly begun to moderate. The inflation rate should fall to about 2% by year-end.

Meanwhile, housing is bouncing along a bottom, and -- wonder of wonders -- banks are lending again. Bank lending, which was anemic during the first two years of the recovery, has risen steadily over the past year -- a telling sign, says James Paulsen, an economist and chief investment strategist at Wells Capital Management, in Minneapolis. "The biggest thing that's starting to happen is a slow but steady resurrection of confidence in this country," says the bullish Paulsen.

Invest In Yourself

2012-10-18T13:20:00.001-07:00

Invest in yourself – introduction

Are you busy looking for success everywhere except the one place you can truly find it? Does life seem like a futile chasing after the rainbow?

One possible reason for this could be that you are not looking for success in the right place. It is not in the environment around us or the circumstances we face that we find success, but in ourselves.

The simple fact is that if you are successful within, in your mind, you will be successful on the outside as well. It may seem too simple thing, but it is something we often forget when the pressures of life surround and overwhelm us. When it comes to making everyday choices it usually does not occur to us.

Like I have said before, your mind is your greatest asset. Like any asset, it needs to be built up and improved continually. Abraham Lincoln said he didn’t “think much of a man who is not wiser today than he was yesterday.” He realised the basic truth that continuous improvement is necessary if one is to be truly successful.

Invest in yourself – knowledge is a huge asset

Knowledge is a powerful asset. It makes the difference between living in abundance and living in lack. The only difference between the managing director in a company and the maid in the same company is their knowledge. The MD knows something the maid doesn’t. That is why he earns a hundred times more than she does.

It is what you know that will bring you success. It’s what you don’t know that will cause you to fail. Why then, do some get it so wrong? For example many people look for promotions without acquiring the necessary skills and knowledge they need to be promoted. Many business people are struggling because they just won’t take the time to learn about accounting, marketing and all that goes with doing business. That’s like trying to drive a car without first putting in the fuel.

Invest in yourself – the three percent rule

“Here is a rule that will guarantee your success – and possibly make you rich: Invest 3 percent of your income back into yourself.” That’s great advice from Brian Tracy. Investing in yourself can double or triple your income. It will work for you whether you are employed or in business.

James Attucher of the Financial Times agrees with this advice when he says “The only real way I know to triple your money is to invest in yourself.” He goes on to say that you should invest in your own ideas and your own business. But apart from that you should also invest in your mind.

Invest in yourself – ways to invest in you

There are many ways to invest in yourself. One way is to make it a habit to buy books regularly. Not just any books, of-course, but books that will challenge you and from which you can learn something. Biographies of other successful people, “how-to” books, self-improvement books and professional books such as accounting or public speaking books are examples.

Investing your time and money in learning things such as goal-setting, how to manage your time, how to be more confident and less doubtful, how to be a better speaker, how to adjust your thinking, create new habits and squash bad ones, how to take care of your health, how to focus and so can greatly improve your results in life.

These days books are not the only way to get knowledge, though. We have video, the internet, seminars and workshops on various subjects and even mentoring and coaching programmes. Even watching the right movies can sometimes teach you a thing or two. My favorite business programme, for example, is The Apprentice. It teaches a lot about entrepreneurship in an entertaining manner. Who would have thought that reality T.V could be so educational?

Invest in yourself – the value of self-education

The point is that you determine how and what you learn as well as how fast you learn. Self-education is important beyond the classroom. In the real world self-education matters a whole lot more than formal education. There are plenty of people with a formal education that are still struggling. Isaac Asimovfully supported this in saying that “Self-education is, I firmly believe, the only kind of education there is.” A formal education is good, but only as a foundation. The sad part is that many are stuck at the foundation level. They don’t realise that in order to complete the building they need to invest in some self-education.

Therefore, do not be like them, who were referred to by James Allen as being “anxious to improve their own lives, but are unwilling to improve themselves. They therefore remain bound.” Dreamers realise that there is no better way to improve your life than to improve your mind. The biggest room in the world is the room for improvement.

Knowledge, then, is a powerful asset, and one which you should always be seeking to improve and build upon in the pursuit of your dreams. The Proverbs declare that “through wisdom is an house builded; and by understanding it is established: And by knowledge shall the chambers be filled with all precious and pleasant riches.”

Invest in yourself – conclusion

Become addicted to continuous improvement and increase in your knowledge consistently and constantly. With time, you will inevitably become the person that you desire to be. Then you will no longer have to chase after success. Success will follow you. Your mind will become magnetized to attract success.

You are all you can be. Go on and be it.