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1031 Exchange and Tenancy-in-Common: Seeking the Right Advisor to Achieve TIC Investment Objectives

2012-02-06T16:01:00.001-08:00

A long-established section in the federal tax code, section 1031, allows real estate investors to sell property that has been held for investment purposes and defer capital gains and depreciation recapture taxes if they acquire "like-kind" exchange property of equal or greater value and reinvest all of their equity. Since the mid-1990s, many investors have experienced the benefit of reinvesting their equity into investment property interests structured as Tenancy-in-Common (TIC). TIC owners hold an undivided fractional ownership interest in investment property evidenced by a deed of trust.

TIC, also known as Co-ownership of Real Estate (CORE), enables an investor to participate in the ownership of institutional-grade, professionally managed investment properties. The investor's equity can be diversified amongst several different properties, geographic markets and real estate companies, potentially increasing both the value and safety of the real estate investment. TIC/CORE investments are designed to offer preservation of capital, predictable cash flow and long-term appreciation in institutional-quality

investment property assets that benefit from greater economies of scale.

With its features and benefits, TIC/CORE is an increasingly popular 1031 exchange option for many real estate investors. However, 1031 exchanges and TIC/CORE transactions are very complicated, with both tax and legal issues topping the list of potential pitfalls. It is therefore essential that investors be knowledgeable about what to look for in a quality advisor. Financial advisors are required by securities law to be properly licensed in order to consult clients regarding TIC/CORE transactions and other investment interests in real estate. Financial advisors should hold both Series 7 and Series 63 securities licenses to qualify them as knowledgeable, well-rounded consultants in the investment process. It is essential that they have experience in the commercial real estate business, in addition to an understanding of personal investment objectives and client suitability issues.

But perhaps the most important component to look for in a TIC financial advisor is their intimate, trusted and deeply rooted relationships with key real estate companies. This attribute is critical to their ability to provide the best opportunities for their clients. There are almost 80 real estate companies across the United

States that are either already involved or considering involvement in the TIC/CORE industry as a real estate provider. As with any industry, these 80 companies represent varying degrees of acumen, experience and quality. To achieve the greatest potential for a client, a financial advisor should have consistent access to the top ten percent of these companies in order to provide their client access to the best properties available. Obviously, a new financial advisor with little or no experience or industry knowledge may not have access to the top real estate providers, as these providers prefer to work with experienced consultants that specialize in this unique segment of the market.

Investors should also be aware of how their financial advisor stacks up, looking for a history of successfully completed transactions. A long and proven track record indicates that a financial advisor is an experienced professional. An investor wants such an advisor in their corner asking all the right questions, making appropriate and suitable recommendations, understanding the nuances of successfully completing TIC/CORE transactions and providing answers to any and all tax and legal questions.

When considering a 1031 exchange or TIC/CORE investment, investors should ask the following specific questions of the financial advisor:

* What percentage of your business is 1031 exchange and/or TIC/CORE related?

* How many investors have you consulted that invested in TIC/CORE structured properties this year? How many last year?

* How long have 1031 exchanges and TIC/CORE been a focus of your investment recommendations?

* Do you have the appropriate licenses to complete this transaction (Series 7, Series 63 securities licenses)?

* With which real estate providers do you work most closely?

As customer demand continues to drive this segment of the real estate market, the emphasis on quality - quality consulting, quality property, and quality transactions - will be increasingly important. Part of the qualitative process is ensuring that financial advisors representing a client make appropriate recommendations for that client based on the client's best interest and not based on any "bias." A final issue that needs to be addressed is that it is not unusual for "referral" compensation to be paid between referring parties. This practice is illegal and a complete breach of ethics,. Therefore, if any form of compensation changes hands - disclosed or undisclosed - between financial advisors and Qualified Intermediaries, real estate companies or other unlicensed individuals derived from an exchange transaction, a felony may have occurred.

In short, investors should take the time to identify a reputable advisor who not only can provide acceptable answers to the above questions, but who will also have the relationships necessary to guide their clients into the appropriate investment. It is important to remember, firms or individuals involved in recommending, offering or selling 1031 TIC/CORE investments must be licensed with a broker-dealer, the SEC, the NASD and the state securities regulators in every state in which the firm or individual operates and in which the client resides. Any "unlicensed" firm or individual involved in recommending, offering or selling these investments is in direct violation of federal and state securities laws.

Co-ownership is the fastest growing option for 1031 exchange investors seeking suitable replacement property. Properly structured and presented, such investments can also generate new listing opportunities for real estate agents while satisfying both the IRS "like-kind" investment property requirements and the SEC and NASD securities regulations. The advantages of co-ownership of institutional-grade real estate are clear and compelling. When exploring co-ownership, smart investors need to seek out industry experts to guide them through the replacement property process. It is indeed the wise investor who is aware of his or her long-term goals that seeks experienced guidance to chart their course, thereby turning TIC/CORE investment opportunities into realities.

10 Tips When Buying Travel Insurance

2012-02-05T13:19:00.000-08:00

Although perhaps not the most glamorous topic in the world, travel insurance is nonetheless an essential part of the holiday process. And unlike the fairly straightforward process of asking ‘which hotel should I stay in?’ getting the right travel insurance can be as confusing as it is frustrating!

This is, hopefully, where I come in. As the managing director of Insuremore (http://www.insuremore.co.uk) I like to think I know a fair bit about the whole area. I’ve assembled this guide as something of a ‘top 10 things to look out for’ when purchasing travel insurance.

And the common question I get asked all the time is whether I think travel insurance is worth buying. Given my line of work, it’s pretty inevitable that my answer will be ‘yes’ but the reason isn’t just because of the extra money it will ensure I receive! Y’see it’s true that the majority of people go on holiday, have a memorable time and come back without any ill consequences, but a small percentage of people will have an unexpected hospitalization or find that their flights are canceled. And believe me, in those instances trying to get help without travel insurance is not only expensive, but horribly stressful. Indeed, the best benefit of travel insurance is the peace of mind it gives the policy holder. A holiday should be about relaxation (or possibly getting your skin to become as lobster like as possible judging from recent case studies!) and how can you relax when you’re constantly on the lookout for illnesses or injuries? I’m sure that even if you could have relaxed before reading this, you will be worried now! So without further ado:

1)Don’t leave your travel insurance until the last minute

Okay, people don’t like to spend money – especially immediately after dropping a load of cash on an expensive holiday, but not getting your travel insurance sorted out immediately can be a massive mistake as you miss out one of the key aspects of it – cancellation cover. Although you may think that there’s no way you’ll cancel, life is full of the unexpected, and we deal with people canceling their holidays due to family emergencies everyday.

As your holiday gets closer and closer, the chances of you needing to cancel are heavily reduced, so you completely lose the benefit of part of your insurance if you don’t sort it out nice and early.

2)Don’t settle for single trip cover if you’re going on holiday more than once

On the subject of single trip cover, is that really what you need? According to a 2004 study by Alliance & Leicester, 2/3rds of people plan to take two or more holidays a year. If you’re in the majority here, then single trip insurance will not be the best priced option (unless you have a phenomenally good value insurance provider) and it’s worth considering multi-trip or annual.

3)Your E111 health card alone will cost you for medical cover

Don’t think that just because you have your E111 European health card you will be covered for free – that’s a myth. You do need the card to show hospitals in the event of an emergency, but you will be charged by the country’s private healthcare system. Make sure your travel insurance covers illness and injury!

4)Be honest about any medical conditions you have

On a similar note, make sure you tell your insurers of all your medical conditions even if they seem irrelevant – too much information is a good thing in this case, as not providing details could later invalidate any claims you need to make.

5)Get the right policy for your holiday

Just like how there are different holidays for different tastes, there are different policies for different people. If you’re looking to go backpacking, skiing or mountain climbing, you’re going to need to track down a policy specifically for these activities to ensure you’re covered in the event of an accident.

6)Buy for the family and save

As I’ve already mentioned, there are different types of insurance for different cover – generally, companies offer single, multi trip, annual and family travel insurance policies. Predict how much you expect to be abroad and buy accordingly. If you are in a family, then it stands to reasons that family insurance is a good option – and some policies include the insurance of under-18s for free!

7)Know exactly what you’re covered against

Cheap travel insurance may seem like a bargain – and there are plenty of legitimate companies offering cheap travel insurance out there – but make sure you go through the policy with a fine tooth comb to ensure you’re not missing out on key coverage, such as cancellation and theft. As a rule of thumb, if something seems too good to be true, it probably is!

8)Check out the excesses on the policy

Actually, it’s worth going through any travel insurance policy with a fine tooth comb – cheap or otherwise. The excesses on different policies can make a huge difference, and it’s a good idea to find a policy with a lower or no excess on an area you think you are more likely to end up claiming on!

9)If you’re under the influence, then you won’t be covered

Sounds obvious, but we often get claims like this, so I’d best cover it: No travel insurance company will pay up on any accidents occurring while the policy holder is under the influence of alcohol or drugs – the policy is not there to allow you to behave more recklessly than you normally would!

10)Look for a company that covers against acts of terrorism for peace of mind

In the current climate, insurance against acts of terrorism is something we’ve found people to be calling out for, and sadly, most companies do not offer it as default with their policies. If I may be allowed a brief plug however, it is something that we at Insuremore include in our travel insurance packages for that extra peace of mind. If it is something that’s worrying you, it is worth ensuring it is part of your policy.

Affordable Health Insurance for the Unemployed

2012-02-03T12:27:00.001-08:00

Being unemployed can be a financial downside to say the least. You may be dependant on someone else to cover your daily expenses such as a place to live and food to eat. Health insurance is something that everyone needs and not enough people have available because of these other financial burdens. Any emergency such as a car accident or broken bone will require adequate medical assistance. What do you do when you don't have insurance and can't afford expensive medical bills? If you are unemployed, you need to find health insurance to prevent this from happening.

COBRA is a law in which many people could be eligible to remain on an employer's health insurance plan even after they lose their employment. The most ideal person for this coverage is someone who is between jobs and is not in need of long-term help. It can last at least a year to those who qualify, but the premium amount is still an expense that some unemployed individuals may not be able to take care of with their lack of income. If you are able to pay the premium and are eligible, COBRA will also cover your spouse and children

who are dependent on you for insurance. The best way to determine if you could receive health insurance is to contact your local employer's benefits department and fill out the required forms.

You can also shop around for typical health insurance. Many free Internet services are proven reliable by the Better Business Bureau Online. By speaking with one of these insurance experts, you can get help finding the most affordable health insurance that will fit your specific needs. They know the rates of thousands of insurance companies and can fix you up with appropriate coverage for your specific needs. If you have a spouse or children, having health coverage is a necessity. Life is full of unexpected events and you cannot ensure that everyone will stay completely healthy until you have insurance again because accidents do happen. Finding an affordable coverage rate on your own can be a hassle. The experts at these companies are offering their assistance to you, often as a free service. Whether you need to find something short-term or for an extended period, they are qualified and dedicated to helping you.

If you find yourself unemployed at any time in your life, you are probably without health insurance. This can be a nightmare whether you have a family or not because medical expenses can put you into debt quickly. Luckily, there are ways of finding affordable coverage providers that can keep your health, as well as your finances, safe. A simple doctor visit can cost you significantly more money than it would with insurance. Do not let yourself become one of the many people who are unfortunately living life without proper insurance coverage.

Character Education and its Benefits to our Children

2012-02-02T09:10:00.000-08:00

The Definition
Character education involves teaching children about basic human values including honesty, kindness, generosity, courage, freedom, equality and respect.

The goal is to raise children to become morally responsible, self-disciplined citizens. Problem solving, decision making, and conflict resolution are important parts of developing moral character. Through role playing and discussions, children can see that their decisions affect other people and things.

Inclusive Concept
Character education is an inclusive concept regarding all aspects of how families, schools, and related social institutions support the positive character development of children. Character in this context refers to the moral and ethical qualities of persons as well as the demonstration of those qualities in their emotional responses, reasoning, and behavior. Character is associated with such virtues as respect, responsibility, trustworthiness, fairness, caring, and citizenship. Broadly, character education encompasses all aspects of the influence that families, schools, and other social institutions have on the positive character development of children. Character Education is the deliberate effort to help people understand, care about and act upon core

ethical values.

What Does Character Education Look Like?

Character education looks like young people learning, growing, and becoming. It feels like strength, courage, possibility, and hope. Giving life meaning, purpose, and a future is the collective message educators are sharing with youth in a curriculum that ultimately says, "Together we can."

We need to practice moral education by means of explanation — not simply stuffing students' heads with rules and regulations, but engaging them in great moral conversations about the human race. The very existence of this dialogue helps make us human.

How can Children benefit

Embedded in character education are guidelines for successful living. The language of respect and responsibility navigates the journey to ethical fitness. Children explore education as life and life as learning positive approaches for setting and achieving goals.

Children learn that living each day to its fullest means more than waiting for moments here and there. Character education presents life with context, inviting them to listen, share, explore, and reflect. Cultivating knowledge for purposeful living, students learn through literature, art, humanities and throughout the existing school curriculum the benefits and consequences of behavior. They learn the power of choice. They learn to appreciate the qualities of being human and to share their appreciation at home, in school, and in the community.

Finding Time

Many stories in children's literature, for example, reflect lessons in morals and virtues; we can read and discuss these moral lessons without taking time from core subjects. Character education also fits well with social studies and health topics. Accepting individual differences, showing courage, developing citizenship, taking responsibility for oneself, and making positive, so the hurdle of finding time for character education becomes less intimidating. Also, talking about good character traits fits naturally into the scheme of setting up a successful primary classroom. When we introduce games in math, we could review the ideas of fairness and cooperation.

Practicing Cooperative Learning Techniques

Partner and small-group learning activities are natural complements to character education, providing children with opportunities to practice cooperation, respect, teamwork, and responsibility. Children usually enjoy cooperative activities, and working with peers is a brain-friendly technique that enhances learning (Jensen, 1996).

School staff members serve as troubleshooters between students and the individuals or agencies in need of assistance. Such service programs teach valuable humanitarian skills. Through these activities, abstract concepts like justice and community become real as students see the faces of the lives they touch. Children begin to appreciate the need to couple moral thinking with moral action.

Does It Work?

Can character education really make a difference? Teaching about character is just as important as teaching the basics of writing, math, and reading. As Martin Luther King Jr. said, "Intelligence plus character—that is the goal of true education" (1947). Educators should work in partnership with families and communities to give children every opportunity to grow into people of good character, and especially to counteract society's potentially negative influences. Character education cannot cure all the world's evils, but it can improve and influence children in positive ways, giving them the skills that they will need to be successful adults.

Expectations of Excellence

Children need standards and the skills to achieve them. They need to see themselves as students engaged in a continuing pursuit of excellence. These standards of excellence in school work and behavior will encourage students to develop qualities like perseverance and determination, and those virtues will affect every aspect of the children's lives as they mature.

Academic studies change rapidly; what we discuss in class today becomes passé tomorrow. But the values, moral influences and noteworthy characteristics we model and discuss will outlast academic facts and figures. We can leave our children a legacy that will remain constant throughout life: to know the good, love the good and do the good.

How To Find A Profitable Online Business

2012-01-31T11:44:00.000-08:00

Many people are now looking to find an effective money making strategy online. You may ask, where do I start looking for the one opportunity to develop a serious home based business that is effective and legitimate? Most times, people are looking for their own business, not just working for somebody else online. There are a few things to consider, whether you are an experienced entrepreneur or a newbie who knows very little about this whole process of online marketing. There are skills that you need to know and there are many, many options available that you will need to sort through, so that you choose a business that you feel is right for you and offers the support and assistance to get you up and running very quickly. Remember that there will be start up costs, every serious and real business will have these.

The whole idea of an online business is to create a residual income that is going to pay you over and over 24 hours a day and 7 days a week. If you are able to duplicate this process and set up multiple streams then you have a winner. This is only possible to be automatically with a system. Systems work - people fail! What does this mean? Well, it means that the use of an effective system online to make money doesn't need the

intervention of a human. Humans tend to distort things with emotion. Emotion means people will make any number of different decisions that will ultimately ruin the system. So, you must find a system that shows you how to set up your income making stream, put it in place and let it run on auto pilot. Let the system work for you and then all you need to do is drive the traffic to it and let it do it's job. You see, you need to work smart, not hard, so that you don't become a slave to your computer.

Money making ideas abound online, and can be quite fun. However, which one to choose? Look for experienced entrepreneurs who are very successful and can prove their success. There are quite a few online that you can trust. John Reese, Mark Joyner, Mike Filsiame and Ty Coughlin. Well, this article is going to make your job a lot easier, because I'm going to alert you to one of the most amazing and legitimate online businesses that is developing at a rate of knots and filling people's pockets with cash. The system is called The Reverse Funnel System and it is by far the most amazing automated money making business available to you today. Well, why is it so good? Why should you believe me? This is an easy one to answer, because it is entirely up to you to decide once you've clicked through and read all about the system.

Here are some characteristics of the Reverse Funnel System that make it an absolute no brainer that you can plug into right away and start earning cash:

1. very simple and easy to use

2. fully automated with an amazing backend support system

3. ethical business in a 7 trillion dollar a year industry

4. huge payout commissions that duplicate over and over

5. no cold calling or having to close sales

6. work with like minded people who are positive and strive for success

7. this system will give you a lifestyle like no other if you use it properly

8. industry professionals are there to assist you

9. unlimited training videos and support

10. unlimited earning potential

Remember, massive action means massive results, so you will need to remember that you will be required to work on your business, but if you're consistently working on a daily basis for a couple of hours then you will succeed.

Investing Basics - What are your investment goals

2010-12-06T21:44:00.000-08:00

When it comes to investing, many first time investors want to jump right in with both feet.

Unfortunately, very few of those investors are successful. Investing in anything requires some degree of skill. It is important to remember that few investments are a sure thing - there is the risk of losing your money!

Before you jump right in, it is better to not only learn more about investing and how it all works, but also to determine what your goals are. What do you hope to achieve with your investments? Will you finance a university education? Buying a home? Retirement? Before you invest one penny, really think about what you hope to achieve with that investment. Knowing your purpose will help you make smarter investment decisions along the way!

Too often, people invest money with dreams of becoming rich overnight. This is possible - but it is also rare. It is usually a very bad idea to start investing with hopes of becoming rich overnight. It is safer to invest money in a way that it will slowly grow over time, and used for retirement or a child's education. However, if your investment goal is to get rich quick, you should learn as much about the high yield, short term investing as you possibly can before you invest.

You should strongly consider talking to a financial planner before investment. Your financial planner can help you determine what type of investments you need to do to the financial goals you have set to achieve. He or she can realistically about what kind of returns you can expect and how long it will take to your specific goals.

Again, remember that investing requires more than calling a broker and tell them you want to buy stocks or bonds. It takes a certain amount of research and knowledge about the market if you hope to invest successfully.

What is your investment style?

2010-12-05T02:16:00.000-08:00

Knowing what your risk tolerance and investment style will help you choose investments more wisely. Although there are many different types of investments that one can do, there are really only three specific investment styles - and those three styles match your risk appetite. The three investment styles are conservative, moderate, and aggressive.

Of course, if you find that you have a low tolerance for risk, your investment style will most likely conservative or moderate at best. If you have a high tolerance for risk, you will likely moderate or aggressive investor. At the same time, your financial objectives also determine what style of investing you use.

If you're saving for retirement in your early twenties, you should use a conservative or moderate style of investing - but if you try to get together the funds to buy a home in the next year or two, you might want to use an aggressive style.

Conservative investors want to maintain their initial investment. In other words, if they invest $ 5000 they want to ensure that their initial $ 5000 back. This type of investor usually invests in common stocks and bonds and short-term money market accounts.

An interest bearing savings account is very common for conservative investors.

A moderate investor usually invests much like a conservative investor, but a part of their investment resources to a higher risk investments. Many moderate investors invest 50% of their funds in safe or conservative investments, and invest the rest in riskier investments.

An aggressive investor is willing to risk that other investors will not take to take. They invest higher amounts of money in riskier ventures in the hopes of achieving larger returns - either over time or in a short time. Aggressive investors often have all or most of their investment funds tied up in the stock market.

Again, determining what style of investing you want to use depends on your financial goals and risk profile. No matter what type of investments you do, but you should carefully research that investment. Never invest without all the facts!

Stabilize your current situation before you invest

2010-12-04T00:31:00.000-08:00

Before you consider investing in any type of market, you really need a long hard look at your current situation. Investing in the future is a good thing, but cleaning up bad - or potentially bad - situations in the present is more important.

Pull your credit report. You must do this once a year. It is important to know what's on your report, and to clear up any negative items on your credit report as soon as possible. If you've set aside $ 25,000 to invest, but you have $ 25,000 worth bad credit, you are better off cleaning up the credit first!

Then look at what you pay each month, and get rid of costs that are not necessary. For instance, high interest credit cards are not necessary. Pay them off and get rid of them. If you have high interest outstanding loans, pay them off as well.

If nothing else, exchange the high interest credit card for one with lower interest and refinance high interest loans with lower interest loans. You may have a portion of your investment funds to use to care for these things, but in the long term, you'll see that the wisest course of action.

Yourself in good financial shape - and then improve your financial situation with sound investments.

It makes no sense to invest resources to start if your bank balance is always running low or if you have trouble paying your monthly bills. Your investment dollars will be better spent on adverse financial issues that affect your daily fix.

While you are in the process of clearing up your present financial situation, make it a point to educate yourself about the different types of investment.

This way, if you're in a financially sound situation, you are armed with the knowledge you need as well to invest in your future.

Determine where you will invest

2010-12-03T20:35:00.000-08:00

There are different types of investments, and there are many factors in determining where to invest your money.

Of course, determining where you are going to invest start researching the various available types of investments, determining your risk and determining your investment style - and your financial goals.

If you go to buy a new car, would you rather do some research before making a final decision and a purchase. You would never consider purchasing a car that you had not fully looked around and taken for a test drive. Investing works the same way.

You will of course learn as much about investment opportunities, and you would like to see how past investors have done well. It's common sense!

Learning about the stock market and investments takes a long time ... but it is time well spent. There are countless books and websites on the subject, and you can even college-level courses on the subject - that's what brokers do. With access to the Internet, you can actually play the stock market - with fake money - to get a feel for how it works to get.

You can pretend investments, and see how they do it. Do a search using a search engine for 'Stock Market Games' or' Stock Market Simulations. " This is a great way to learn about investing in the stock market.

Other types of investments - outside the stock exchange - not simulators. You must learn about the types of investments the hard way - by reading.

If a potential investor, you should read what you can get your hands on to invest ... but start at the beginning investment books and websites first. Otherwise you will soon find that you're lost.

Finally, speak with a financial planner. Tell them your goals and ask them for their suggestions - this is what they do! A good financial planner can easily help you determine where to invest your money, and help you set up a plan for your financial goals. Many will even teach you about investing along the way - make sure you pay attention to what they tell you!

Wisely spending to save money

2010-12-02T16:24:00.000-08:00

Have you ever noticed that each week the things you buy at the grocery and hardware stores are a few cents tussen the shopping trips? Not much ... just a little every week, but they continue to creep up and up.

Everything you need for the price to jump by one party is a minor hiccup in the global market, watch the price of gasoline when it comes to world politics.

There is one way that we keep these price increases impacting our personal finances so much and that is by buying in quantity and finding the best possible prices for the things we use everyday and will continue ... things just as well use it on the shelves in our homes and on the shelves in the supermarket or DIY store.

For example, dog and cat food costs about 10% less when you buy the thing than it does when bought at the single can price and if you wait until the prices close to save you much more than that.

Set aside some space in your home and make a list of things you use frequently, that will not spoil. Any grain or grain products must be stored in airtight containers that rats can not get into so keep that in mind.

Then the best prices you can get the quantity purchases of such things as bathroom items and dry and canned food to be found.

You'll be surprised how much you can save by buying twenty pounds a bag of rice as opposed to a bag, but remember that one pound must be kept in a rat waste container.

You can get some clothing, including men socks and underwear because those styles do not change it now, avoid buying children's and women's clothing, those styles change and sizes change too drastically.

Try to acquire and maintain two years of supplying these items and you can save hundreds of dollars.

Long term investment for the Future

2010-12-01T13:18:00.000-08:00

When ready to invest money for a future event, such as retirement or a child's college education, you have options. You do not have to invest in risky stocks or ventures. You can easily invest your money in a way that is very safe, that a decent return over a long period of time will show.

First look at bonds. There are different types of bonds you can buy. Bond's are similar to certificates of deposit. Rather issued by banks, however, are bonds issued by the government. Depending on the type of bonds you buy, your initial investment may double over a specific period of time.

Investment funds are also relatively safe. Mutual funds exist when a group of investors together to make their money from stocks, bonds or other investments to buy. A fund manager typically decides how the money will be invested. All you need to do is find a reputable, qualified broker who handles mutual funds, and he or she will invest your money, with money from other customers. Investment funds are a bit riskier than bonds.

Stocks are another vehicle for long term investment. Shares of stocks are essentially shares of ownership in the company you are investing in. When the company does well financially, the value of your stock rises. However, if a company does poorly, your stock value drops. Stocks are also riskier than mutual funds. Even though there is a greater amount of risk, you can still purchase stock in healthy companies like G & E Electric, and sleep at night knowing that your money is relatively safe.

The key is to do your research before investing your money for long term gain. When buying shares you should choose stocks that have been established. When looking to invest in a mutual fund, a broker who is well established and has a proven track record to choose. If you are not quite ready to take the risks involved in mutual funds or shares, take at least in bonds guaranteed by the government investing.

Investment

2010-11-30T08:46:00.000-08:00

Because investing is not a sure thing in most cases, it is much like a game - you do not know the outcome until the game is played and a winner is declared. Every time you play most games, you have a strategy. Investing is no different - you need an investment strategy.

An investment is in fact a plan for your money to invest in various types of investments that will help your financial goals at a certain time. Each type of investment contains individual investments that you should choose. A clothing store sells clothes - but those clothes consist of shirts, pants, dresses, skirts, underwear, etc. The fair is a kind of investment, but it contains different types of stocks, which all contain different companies that you can invest.

If you have not done your research, it can quickly become very confusing - simply because there are so many different types of investments and individual investments to choose from. This is where your strategy, combined with your risk tolerance and investment style all in the game.

If you are new to investments, work closely with a financial planner before investment. They will help you develop an investment strategy that not only within the bounds of your risk tolerance and your investment style, but will also help you reach your financial goals.

Never invest money without a goal and a strategy for achieving that goal! This is essential. Nobody hands their money over to someone without knowing what that money is used and when they will get it back! If you do not have a goal, a plan or a strategy, which is essentially what you do! Always start with a goal and a strategy for achieving that goal!

Investing Mistakes to Avoid

2010-11-29T04:43:00.000-08:00

Along the way, you can invest a few mistakes, but there are big mistakes that you absolutely must avoid when creating a successful investor. For example, the biggest investing mistake you could ever make is to not invest at all, or be postponed until a later time to invest. Make your money work for you - even if all you can spare $ 20 per week to invest!

While not investing at all or to delay investing until later are big mistakes, investing before you in financial position to do so is another big mistake. Get your current financial situation in order first, and then start investing. Get your credit cleaned up, pay off high interest loans and credit cards, and put at least three months of living expenses in savings. Once this is done, you are ready to start letting your money work for you.

Do not invest to get rich quick. That is the riskiest form of investment there is, and you lose more than likely. If it were easy, everyone would do it! Instead, invest for the long term and have the patience to weather the storms and allow your money to grow. Only invest for the short term, when you know you need money in a short time and then stick with safe investments, like savings bonds.

Do not put all your eggs in one basket. Sprinkle it around various types of investments for the best returns. Also, not your money does not move too much. Let It Ride. Pick your investments carefully invest your money and let them grow - do not panic if the stock drops a few dollars. If the stock is a stable stock, it will go back up.

A common mistake many people make is thinking that their investments in collectibles, but will bear fruit. Again, if this were true, everyone would do it. Not count on your Coke collection or your book collection to pay for your retirement years! Count on investments made with cold hard cash instead.

The importance of diversification

2010-11-28T00:59:00.000-08:00

"Do not put all your eggs in one basket!" You've probably heard that over and over again in your life ... and when it comes to investing, it's very true. Diversification is the key to successful investing. All successful investors build portfolios that are widely diversified, and you should too!

Diversifying your investments might include purchasing various stocks in many different industries. It may include purchasing bonds, investing in money market accounts, or even in some real estate. The key is to invest in different areas - not just one.

Over time, research has shown that investors who diversified portfolios usually see more consistent and stable returns on their investments than those who just invest in one thing. By investing in different markets, you will actually less risk.

For example, if you've spent all your money in one stock and that stock takes a significant leap, you'll probably find that you lose all your money. On the other hand, if you have invested in ten different stocks, and nine are doing well, while a deposit, you're still in fairly good condition.

A good diversification will usually include stocks, bonds, property and cash. It may take some time to diversify your portfolio. Depending on how much you have to invest, you can start a kind of investment, and invest in other areas as time goes by.

This is okay, but if you can divide your initial investment funds among different types of investments, you will find that a lower risk of losing your money, and after a while, you'll see a better return.

Experts also suggest that your investment money evenly over your investments. In other words, if you start with $ 100,000 to invest $ 25,000 in stocks, $ 25,000 in real estate, $ 25,000 in bonds, and put $ 25,000 investment in an interest bearing savings account.

Understanding Bonds

2010-11-27T20:05:00.000-08:00

There are certain things you must understand about bonds before you start investing in them. Not understand these things can cause you to purchase the wrong bonds, at the wrong end.

The three main things to be considered when purchasing a bond below the nominal value, maturity and coupon rate.

The nominal value of a bond refers to the amount of money you get when the bond reaches maturity. In other words, you receive back your initial investment when the bond reaches maturity.

The expiry date is of course the date that the bond will reach its full value. On this date you receive your initial investment plus the interest your money has earned.

Corporate and State and local government bonds can be 'called' before their maturity, at which time the corporation or the government will issue your initial investment, return, along with the importance they have earned to date. Federal bonds can not be 'called. "

The coupon rate is the interest that you receive when the bond reaches maturity. This song was written as a percentage, and you have to use other information to find out what the interest rate will be. A bond with a face value of $ 2000 has, with a coupon of 5% would earn $ 100 per year until maturity.

Because bonds are not issued by banks, many people do not understand how to go about purchasing one. There are two ways this can be done.

You can use a broker or brokerage firm to purchase for you or you can jump to the government. If you have a brokerage, you will more than likely be charged a commission. If you want to use a broker, shop around for the lowest commissions!

Purchase directly by the government is not nearly as hard as it once was. A program called Treasury Direct which will allow you to bonds, your bonds will be held in an account, you have easy access with be abolished. This will allow you to avoid using a broker or brokerage firm.

Discounts - reward or Rip Off?

2010-11-26T16:59:00.000-08:00

Discounts have become increasingly popular in recent years on a lot of items and certainly on electronic items and computers. Discounts of $ 20, $ 50 or $ 100 are not uncommon.

I've even seen items advertised as "free after rebate". Do these rebates under the heading of "too good to be true"? Some of them do and there are "captured" to pay attention but if you are careful, rebates can help you get some really good deals.

The way a rebate works is that you are paying the price for an item then mail in the form and the bar code on the manufacturer and they send you a refund and the cost of what you paid for the item except with a delay of several weeks.

Rule # 1. Discounts from reputable companies are usually fine.

You can be pretty sure you get the promised rebate from Best Buy, Amazon or Dell but you should probably not count on getting one from a company you've never heard. If you really want the product and are OK with paying the price than buying, but do not count on actually getting the refund.

Rule # 2. Check rebate expiration dates.

Many times products will stay on the shelf of a retailer after the date for receipt of the rebate offer has expired so check that date carefully.

Rule # 3. Make sure you have all necessary forms to file for the rebate before you leave the store.

Discounts will almost always require a form be completed, a receipt for the purchase and a barcode.

Rule # 4. Back up your rebate claim.

Make copies of everything you send your rebate including the bar code to get. Stuff gets lost in the mail all the time and if the discount is $ 50 is it worth to back up your claim.

Different types of investments

2010-11-25T12:14:00.000-08:00

Generally there are three different types of investments. These include equities, bonds and cash. Sounds simple, right? Well, unfortunately it gets very complicated from there. You see, each type of investment has numerous types of investments covered.

There's a lot to learn about each different investment type. The scholarship is a big scary place for people who know little or nothing about investing to be. Fortunately, the amount of information you need to learn has a direct relation to the type of investor you are. There are three types of investors: conservative, moderate, and aggressive. The different types of investments also cater for two levels of risk tolerance: high risk and low risk.

Conservative investors often invest in cash. This means that they spend their money in interest bearing savings accounts, money market accounts, mutual funds, U.S. Treasury bonds and certificates of deposit. These are very safe investments that grow over a long period of time. These are also low risk investments.

Moderate investors often invest in cash and bonds, and may dabble in the stock market. Moderate investing may be low or moderate risk. Moderate investors often invest in property, provided it is a low risk property.

Aggressive investors commonly do most of their investing in the stock, which is a higher risk. They also tend to invest in business ventures as well as a higher risk property. For example, if an aggressive investor puts his or her money into an older apartment building, then invests more money renovating the property, they are at risk. They expect to be able to rent the apartments for more money than the apartments are currently worth - or to the entire property to sell for a profit on their initial investment. In some cases this works fine, and in other cases, it is not. It's a risk.

Before you start investing, it is very important that you learn about the different types of investments, and what those investments can do for you. Understand the risks and pay attention to past trends as well. History indeed repeats itself, and investors know this first hand!

Investing for Retirement

2010-11-24T07:18:00.000-08:00

Withdrawal is a long way to go to you - or maybe around the corner. No matter how close or far away, you definitely need to start saving for it now. However, saving for retirement is not what it once was with the rise in cost of living and the instability of social security. You have to invest for your retirement, as opposed to saving for it!

Let's start with a look at the plan offered by your company. Once upon a time, these plans were very good. However, after the Enron upset and all that followed, people are not safe in their company retirement plans anymore. If you choose not to invest in your company retirement plan, you have other options.

First, you can invest in stocks, bonds, mutual funds, certificates of deposit and money market accounts. You do not have to give someone the return on this investment will be used for retirement. Just let your money grow overtime, and when certain investments reach their maturity, reinvest them and continue to let your money grow.

Alternatively, an Individual Retirement Account (IRA). IRA's are very popular because the money is not taxed until you withdraw money. You may also be able to deduct your IRA contributions from the taxes you owe. An IRA can be opened at most banks. A Roth IRA is a newer type of retirement account. With a Roth, you pay tax on the money you invest in your account, but if you cash out, no federal taxes owed. Roth IRA's can also be opened at a financial institution.

Another popular form of retirement account is the 401 (k). 401 (k's) are typically offered through employers, but you may be able to a 401 (k) open on your own. You should speak with a financial planner or accountant to help you with this. The Keogh plan is another type of IRA that is suitable for self-employed. Independent small business owners interested in Simplified Employee Pension Plans (SEP). This is another type of Keogh plan that people typically find easier to administer than a regular Keogh plan.

Which retirement investment you choose, but make sure you choose one! Again, do not depend on Social Security, company pension, or even an inheritance that may or may not come through! Taking care of your financial future by investing in it today.

Choosing a broker

2010-11-23T03:33:00.000-08:00

Depending on the type of investments you plan to do, you may need a broker to handle your investments before you hire. Brokers work for brokerage houses and have the ability to buy and sell stocks on the stock. You might wonder if you really need a broker. The answer is yes. If you plan to buy or sell shares on the stock, you must have a broker.

Stockbrokers are required to pass two different tests to obtain their license. These tests are very difficult, and most brokers have a background in business or finance, with a Bachelors or Masters Degree.

It is very important to tell the difference between a broker and a stock market analyst to understand. An analyst literally analyzes the stock market, and predicts what will or will not do, or how specific stocks will perform. A broker is only there to follow your instructions to either buy or sell ... not to analyze stocks.

Brokers earn their money from commissions on sales in most cases. When you order your broker to buy or sell a stock, they earn a certain percentage of the transaction. Many brokers charge a flat 'per transaction' fee.

There are two types of brokers: Full service brokers and discount brokers. Full-service brokers can usually offer more types of investments, can provide investment advice, and is usually paid in commissions.

Discount brokers usually offer no advice and no research - they just do what you ask them to do without all the bells and whistles.

So, the biggest decision you must make when it comes to brokers is whether you want a full-service broker or discount broker.

If you are new to investing, you may need to go with a full-service broker to ensure that you make wise investments. They offer you the skill you lack at this point. However, if you are already informed about the show, all you really need is a discount broker for your transactions for you.

The Budget - The Ultimate Financial Management Tool

2010-11-22T22:58:00.000-08:00

A carpenter uses a set of house plans to build a house. When not in the bathroom can be completely overlooked.

Rocket Scientists, the construction of a new booster rocket never start without a detailed set of design specifications. Yet most of us go blindly out into the world without a presumption of an idea about finances and without any plan.

Not very smart of us, is it?

A money plan is called a budget and is crucial for us to our desired financial goals.

Without a plan we will drift without direction and eventually stranded on a distant financial reef.

If you have a spouse or significant other, you have with this budget. Sit down and figure out what your joint financial goals are ... Long term and short term.

Then plan your route to those goals. Every journey begins with one step and the first step to achieving your goals is to provide a realistic budget that you both can live with.

A budget should never be a financial starvation diet. That will not work long term. Reasonable allocations for food, clothing, shelter, utilities and insurance and set aside a reasonable amount for entertainment and the occasional luxury item. Savings should always come first before any spending.

Even a small amount saved will help your long term and short term financial goals. You can find many budget forms on the Internet. Just use a search engine you choose and type in "free budget forms".

You get lots of hits. Print one out and work with your spouse or significant other. You both will be happy with the outcome and feel that it is something you can stick with.

Why you should invest

2010-11-21T18:14:00.000-08:00

Investing has become increasingly important over the years, such as the future of social security is unknown.

People want to insure their future, and they know that if they are dependent on social benefits, pensions and in some cases, they are in for a rude awakening when they are no longer able to earn a steady income are. Investing is the answer to the unknowns of the future.

You may save money in a low interest savings account over the years. Now, you want to see that money grow at a faster pace. Perhaps you've inherited money or realized a different type of windfall, and you have a way to grow money. Again, investing is the answer.

Investing is one way of achieving the things you want like a new house, a college education for your children, or expensive 'toys. " Of course, your financial goals to determine what type of investment you do.

If you want or need a lot of money quickly, you'd be more interested in a higher risk investments, giving you a better return in a shorter time. If you're saving for something in the distant future, such as retirement, would you want to safer investments that grow over a longer period of time to make.

The overall goal of investing is to create prosperity and security, over a period of time. It is important to remember that you are not always able to provide an income ... you ultimately want to retire deserve.

You also can not count on social security to do what you expect to do so. As we have seen with Enron, you do not need, or according to your company retirement plan. So, again, investing is the key to insuring your own financial future, but you need smart investment!

Different types of bonds

2010-11-20T14:24:00.000-08:00

Investing in bonds is very safe and the returns are usually very good. There are four basic types of bonds available and they are sold through the government, companies, state and local governments, and foreign governments.

The greatest thing about bonds is that your initial investment back. This makes bonds the perfect investment vehicle for those who are new to investing, or for those who have a low risk.

The U.S. government sells Treasury Bonds through the Treasury. You can purchase Treasury Bonds with maturity dates ranging from three months to thirty years.

Bonds are Treasury Notes (T-Notes), Treasury Bills (T-Bills), and Treasury Bonds. All bonds are backed by the U.S. government and tax is only levied on the interest the bonds earn.

Corporate bonds are sold through public securities markets. A corporate bond is essentially a company selling its debt. Corporate bonds usually have high interest rates, but they are a bit risky. If the company goes belly-up, the band is worthless.

State and local governments also sell bonds. Unlike bonds issued by the federal government, these bonds typically have a higher interest rate. This is because state and local governments indeed go bankrupt - unlike the federal government.

State and local government bonds are exempt from taxes - even on the interest. State and local taxes may also be waived. Tax-free Municipal Bonds are common State and local bonds.

The purchase of foreign bonds is actually very difficult, and is often done as part of a fund. It is often very risky to invest abroad. The safest type of bond to buy is one that is issued by the U.S. government.

The interest can be a bit lower, but again, there is little or no risk. For best results, when a similar maturity is reached, to reinvest in another band.

Avoiding Impulse Spending

2010-11-19T11:19:00.000-08:00

Answer these questions truthfully:

1.) Does your spouse or partner complain that you spend too much money?

2.) Are you surprised each month when your credit card bill arrives at how much you are paying more than you thought you had?

3.) Do you have more shoes and clothes in your closet than you could ever wear?

4.) Do you own every new gadget before it has time to collect dust on the shelf of a retailer?

5.) Do you buy things you never knew you wanted until you saw them on display in a store?

If you answered "yes" to two of the above questions, you are an impulse spender and indulge yourself in retail therapy.

This is not a good thing. It will prevent you from saving for the important things like a house, a new car, a vacation or a pension. You have a number of financial goals and resist spending money on things that really does not matter in the long term.

Impulse spending will not only put a strain on your finances but your relationships, as well. To solve the problem, the first thing to do is learn to separate your needs from your wants.

Advertisers blitz us hawking their products at us 24 / 7. The trick is to get yourself a cooling-off period before you buy something you have planned.

When you go shopping, make a list and take only enough money to pay for what you have planned to buy. Have your credit card at home.

If you see something you think you really need, give yourself two weeks to decide whether it is really something you need or something you can easily do without. By following this simple solution, you repair your financial fences and your relationships.

Determine your risk

2010-11-18T02:49:00.000-08:00

Each individual has a risk tolerance that should not be ignored. Any good broker or financial planner knows this, and they must take the trouble to help you determine what your risk tolerance. Then they work with you to the investment not exceed your risk tolerance to be found.

Determining one's risk tolerance includes several things. First you need to know how much money you have to invest, and what your investment and financial goals.

For example, if you plan to retire in ten years, and you have not saved cents to that end, you have a high risk tolerance - risky - - a number of aggressive because you have to invest to reach your financial goal.

On the other side of the coin, if you're in your early twenties and you want to start investing for your retirement, your risk low. You can afford to watch your money grow slowly over time.

Realize that your natural need for a high risk tolerance and your need for a low risk tolerance really does not affect how you feel about risks. Again, there is much in determining your tolerance.

For example, if you invested in the stock market and you watched the movement of that stock daily and saw that it was dropping slightly, what would you do?

Would you sell out or do you let your money ride? If you have a low tolerance for risk, you would like to sell out ... if you have a high tolerance, would you let your money ride and see what happens. This is not based on what your financial goals. This tolerance is based on how you feel about your money!

Again, a good financial planner or broker to help you determine the level of risk you are comfortable with, and help you choose your investments accordingly.

Your risk tolerance should be based on what your financial goals and how you have the possibility of losing your money to feel. It's all tied together.

Getting your feet wet - begin investing

2010-11-17T06:59:00.000-08:00

If you are concerned about your investments started, you can immediately get started without much knowledge about the stock market. Starting from a conservative investor with low risk. This gives you a way of making your money grow while you learn about investing.

Start with an interest-bearing savings account. You might have. If you do not, you should. A savings account can be opened with the same bank that you do on your control - or at another bank. A savings account, the price of 2 to 4% of the money you have in the account.

It is not much money - unless you one million U.S. dollars in that account - but it's a beginning, and the money is money.

Next, invest in money market funds. This can often be done through your bank. These funds have higher interest payouts than typical savings accounts, but they work the same way. These are short term investments, so your money will not be strapped for a long period of time - but again, money is money.

Certificates of Deposit are also sound investments with no risk. Interest rates on CDs are usually higher than savings accounts or money market funds.

You can limit your investment, and interest is paid regularly until the CD reaches maturity. CDs can be purchased at your bank and your bank to insure against loss. When the CD reaches maturity, you will receive your deposit, plus interest that the CD has earned.

If you're just starting, one or all of these three types of investments is the best starting point. Again, this will allow your money to make money off of you while you learn about investing in other places.