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investments

Investing

5 Things To Know Before Investing

Investing can be a tricky and nerve-wracking experience. But it can also yield great returns and provide the savvy investor with a comfortable amount of extra money over the long-term. Before you jump into investing, there are a few things you should know so you can evaluate whether investing is right for you — and decide how to begin.

Be Aware of the Risks

Each specific investment has its own level of risk attached. Knowing the risk doesn’t just mean being aware of how much money you could make or lose in a certain period of time. It also means knowing your own financial goals, your predilection to making emotional decisions, and how much time you can devote to research and reinvesting.

Get Assistance

An investment broker buys and sells investments on your behalf, and often does other things like consulting, offering advice, and managing portfolios. Brokers take a percentage of what you make from your investments, but having a broker is important, especially if you’re new to investing. They’re professionally trained to manage money, and have access to specific information and trends that’ll help you make investment decisions. Also consider following financial experts like Gary Crittenden on Twitter to get investment advice straight to your feed. You need to hire a reputable broker to ensure that they do not do undergo churning. Churning is excessive trading of assets in order to generate higher commissions. This will mean less profits for you in the form of higher costs to pay your broker, finding an honest broker reduces the chance of this and ensures you get a worthwhile service. Having a good rapport with your broker is essential to conducting successful trades in the market, as only when you trust each other can you commit to investments that the broker has recommended without worry.

Know How Much You Can Spend

Putting down a chunk of cash to purchase assets isn’t the only money you’ll spend. Brokers, of course, charge for their services, and many investments like mutual funds come with attached fees. Don’t forget about taxes, either, because they take a bite out of what you’re expecting to make. The number you see when your broker calculates your dividends and returns is unlikely the number you’ll actually be keeping. So factor these things in when considering how much money you can afford to invest.

December 18, 2013

Investing

Tips For Investing In Property

There are many ways you can invest your money, and each investment comes with its own set of risks and potential rewards. Stocks, for instance, can be extremely volatile. While some think that investing in property is very risky, it doesn’t have to be as long as you know what you are doing. Taking calculated risks can be very profitable. Below are some tips you can follow if you want to start investing in property.

Understand the risks involved. One thing I can’t emphasize enough is the importance of understanding what you are getting into. You will need to be aware that unexpected expenses will arise in the form of maintenance costs, repairs, and much more. So you will need to make sure you have enough money set aside to cover those expenses. You also need to be aware that you will not likely make a profit immediately. It could take a year or two before your rent monies actually amount to extra money in your bank account.

See the potential. For instance, if you are looking at property for sale in Turkey, the first thing you should do is not only focus on what is presently there – but envision the potential of what the property could be in the future. Think about what improvements you could make and make sure you are aware of your local area and local market. Is the property near water, near a good university, or near a popular tourist spot?

May 1, 2013

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

Wealth

Ideal Investments For The New Age Millionaire

Becoming a millionaire these days is far easier than ever before. Now making a million dollars is not going to take you a lifetime; Some people will even be able to make a million dollars in the span of just a few years. It is because of all the new investments that people are making that turn them into self-made millionaires.

So, what are some of the ideal investments for the new age millionaire? Great question because there are actually a few that you may not know much about. Being that you are probably excited to see what the future holds for you, let’s dive right into it.

August 13, 2012

Investing

An Easy Way To Learn Investment Terminology

If you are working on developing your investment knowledge and are attempting to read financial articles, you will likely need help in learning all the investment terminology. I find Investopedia.com’s dictionary extremely helpful in explaining investment jargon.

Not only does the site provide a definition, it also provides an explanation to further your understanding.

For example, when I looked up the word “bond”, this is what I found in the Investopedia.com dictionary:

“What Does Bond Mean?

A debt investment in which an investor loans money to an entity (corporate or governmental) that borrows the funds for a defined period of time at a fixed interest rate. Bonds are used by companies, municipalities, states and U.S. and foreign governments to finance a variety of projects and activities.

Bonds are commonly referred to as fixed-income securities and are one of the three main asset classes, along with stocks and cash equivalents..

Investopedia explains Bond

The indebted entity (issuer) issues a bond that states the interest rate(coupon) that will be paid and when the loaned funds (bond principal) are to be returned (maturity date). Interest on bonds is usually paid every six months (semi-annually). The main categories of bonds are corporate bonds, municipal bonds, and U.S. Treasury bonds, notes and bills, which are collectively referred to as simply “Treasuries”.

Two features of a bond – credit quality and duration – are the principal determinants of a bond’s interest rate. Bond maturities range from a 90-day Treasury bill to a 30-year government bond. Corporate and municipals are typically in the three to 10-year range.”

So, as you can see, this site can be extremely helpful for anyone who is unfamiliar with investment terminology. Check it out and before long you will be much more confident when you read about investments. It is always a good idea to understand how your money is being invested, even if you have a managed portfolio through your financial institution.

September 28, 2009

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