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Investing

5 Tips For Protecting Your Investments

Whether you are a seasoned investor or just starting out, there is no “easy switch” to make investing less of a challenge. Due to the volatility of the market place your hard earned money can disappear in the blink of an eye. While certain sectors are improving, the economy is still sluggish, despite slight signs of rebound. Yet, for anyone to have any semblance of longevity in the stock market, you have to play your cards right and protect your investments anyway you can.

Here are 5 tips for protecting your investments:

You never want to take irrational steps to withdraw all your money each time you see the market temporally take a dip. This is one of the biggest ways to lose money. It is recommended that you let your money “weather” the storm. Even if the stock market hits a record low, soon enough the high tide will come back in and you’ll be back on top. In the long run, letting your investments ride the multiple, daily waves of the stock market will have bigger returns in the long run.

Another important way to protect your investments is to find the lowest risk possible so that you aren’t left paying high taxes on possible losses. This might sound confusing, but one of the biggest mistakes newbie investors make is not considering the value of their returns after taxes. Depending on the sector you have invested in, what can look like a positive or winning reward on paper won’t look so great after the IRS takes a big chunk.

March 23, 2013

Investing

Growth And Value Investing – Which Is Right For You?

The world of investing is vast, and it holds a level of complexity that many beginning investors greatly underestimate. It’s possible to make a fortune through smart investment, but it’s even easier to lose that fortune on one wrong call. Two competing schools of thought in the investing world, growth and value investing, each hold the potential for large returns. However, deciding which of these different kinds of investment is right for you is not always as simple as it may seem. There are benefits and downfalls with either approach to investing, and making the most of your dollar requires careful planning and deep understanding of both.

According to value investing, the best way to make your money work for you is to buy stocks that trade lower than their true value. Investors who subscribe to this mode of thinking seek out stocks that they believe the market has assigned inappropriately low values. Due to the emotional nature of many markets, a single piece of good or bad news can change the price of a given stock to a figure that is less than its actual worth. Value investors read the market carefully to determine which stocks are trading for less than their intrinsic value, and they make a profit by selling when these stocks inflate in price once again.

March 6, 2013

Investing

5 Tips For Choosing The Right Stocks To Invest In

For most people, the prospect of playing the stock market is more than a little daunting. It’s not exactly something that the average person learns in school or picks up along the way. And yet, speculating on stocks has the potential to help your money grow a lot faster than letting it sit in a savings account or CD. It’s just the fact that you are equally likely to lose your shirt that draws most people up short. Hey, it is a gamble, no matter how many facts and figures go into it. But in truth, it’s not exactly like you’re flying blind when you choose to invest. There are all kinds of resources at your disposal to help you out when it comes to finding the right stocks to invest in. And here are just a few tips to help you get started.

Understand risk. Before you even think of investing in stocks you need to understand that they come with varying levels of risk, although they tend to fall into either the low-risk or high-risk category. The real difference is the amount of money you stand to make (or lose) and how quickly. So if you’re betting with your life savings, you might want to steer clear of high-risk stocks. But if you’re just having some fun with your pocket change and you want to gamble big, then by all means treat your foray into investing like a crapshoot. Or if you’re trying to build a diverse portfolio, consider one that is heavily weighted towards low-risk stocks, bonds, and mutual funds with a smattering of higher-risk ventures.

March 5, 2013

Investing

Do You Need A Financial Advisor?

Money is so simple conceptually, but so complicated in reality. Everyone understands exactly how it works. You perform a service or sell some sort of product and you are compensated with money you can then turn around and use to purchase the services or products you require. It’s black and white, right? While the concept is plain enough for anyone to grasp, the market economy is by no means as easy. How to navigate the world of credit, how to organize your finances, how to grow your savings and how to make your money work for you are all strategies people grapple with during the course of their lives, sometimes successfully, but often with disappointing results. That’s why financial advisors exist. Their job is to look at your goals and help you realize them. But how do you know if you need a financial advisor?

The first thing you must look at is if you can afford one. Financial advisors earn that title by graduating with an advanced degree and logging many years on the job. But their job isn’t done after they hang that diploma on the wall. Financial advisors must stay current on changes in the market, what strategies are proving successful, and which investment tools are no longer attractive. It’s a constant juggling act of research and client hours. With this sort of work load you can expect a quality financial advisor to demand a significant salary. You will be just one of his many clients, and pay an hourly fee for his time. So if you don’t have a significant portfolio and money to spare each month you can’t go down this road.

February 4, 2013

Investing

Flipping Real Estate – The Dos And Do Nots

If you’re someone who has an interest in real estate and also in making money, then you’ve probably thought about getting into the business of flipping houses. After all, to purchase a home and then turn around and sell it for a profit can definitely be an attractive endeavor to get involved in.

However, nothing in life is as simple as A-B-C or 1-2-3. Virtually all things have fine print and stipulations to consider before taking on a particular task, including flipping homes. So, before you start to really put some time, effort and resources into it, we’ve provided you with a few do’s and don’ts to think about first:

Do know the guidelines. While there are some real estate rules that apply across the board, there are others that are relevant only to your state or province. You don’t want to take on a project like a home and sell it only to realize that you broke some of the laws surrounding house flipping where you live. Therefore, you need to do your research first.

January 13, 2013

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