Tag Archives: Mutual Funds

Get Your Investments In Order With This Great Advice!

There is a wealth of information available on the topic of investing. Facts are, it would take you forever to read everything about investing, and more than likely, you would just come away confused. So, what fundamental knowledge is needed to invest? Keep reading to find out.

Remember that stocks are not just simple pieces of paper that you buy and sell for trading purposes. Owning a stock makes you part of the body that owns the company which issued it. Stocks entitle you to earnings and profits. In many instances, you even have voting rights in corporate elections.

A financial advisor can be a great resource, even for those who plan to manage their stocks on their own. A good professional will not just give you some good individual stock picks. They will also sit down and tell you of your risk tolerance, and the time horizon associated to your financial goals. After, you can both sit down and form a plan that is customized to your interests.

Buying damaged stocks is fine, but do not buy damaged companies. If you discover a business that experiences a temporary decrease in its value of stock, then this is the excellent time to purchase the stocks at a bargain because the decrease is just temporary. An example of a situation that causes a temporary downturn in a company’s stock value is the panic created by a missed deadline caused by a fixable material shortage. Companies that have been tainted with some kind of financial scandals may not have the ability to recover.

Average Volume

Before you buy any stock, be sure to take note of the average volume it sees in trading every day. This is just as important as weighing the cost for commission when you buy and sell stock. If the average volume traded is low, you know it could be difficult to sell large amounts of the shares. You might also find it difficult to sell the stock quickly if you need to get out of it.

Do not invest too heavily in your company’s stock. While it may be nice to support your business by holding plenty of company stock, you will want to diversify your portfolio more. If your portfolio consists mainly of the company you work for, like it was with many employees at the doomed energy giant Enron, you could possibly face financial calamity. A safe stock portfolio should be a mix of different stocks.

Ensure you know what the dividends of the companies that you own stock are. This is especially important for older investors who want to have some stability in a stock that pays solid dividends. Businesses which experience big profits usually reinvest it into the company, or they pay it back to shareholders using dividends. It is vital to understand a dividend’s yield; this is the amount of the yearly dividends divided by price of stock.

Stay open to the fluctuations of a stock’s price. One rule of math that you can’t avoid is that the higher priced an asset is, the harder it often is to generate a high return on that asset on a percentage basis. Waiting a week or so for a stock that is unattractive at $50 to drop to a more reasonable $30 is a wiser decision.

Mutual Funds

Make sure you are comfortable with the stocks and mutual funds you purchase. Be wary of your investing temperament. If a financial loss sends you into panic mode, stick with mutual funds and conservative stocks, or keep all your loot in cash vehicles. If you’re comfortable with risking your money, you could afford to buy mutual funds and stocks that fluctuate a lot.

Always track the market before you decide to enter. Keeping track of the market before you decide to buy can help you know what you’re doing. In general, watching the market for three years is the recommended time before making your initial investment. This kind of extensive preparation will give you an excellent feel for the market’s natural operation and increase your odds of turning a profit.

Find out the exact fees you are responsible for before hiring a broker or using a trader. There will be entry fees and other fees that could be deducted upon exiting, as well. These can often add up quickly, so don’t be surprised.

Join a forum that discusses investments. When you’re on a forum that’s interactive you can get inside information with others and share the knowledge you have as well. You can share experiences and provide help for one another. An online forum may provide you with valuable information you will not find anywhere else.

Think of all the services and products you use when looking at a common stock. What your gut tells you is normally correct. Once you have looked at and approved of their balance sheet, and it seems that they are honest, think of whether or not you would use that company’s item. If you would not, then that company is not worth investing in. It also lets you know that you might not be as good at judging companies as you thought.

There you go! All of the basic information about investing in the stock market you need to know to begin. When you were younger, you only had to worry about a day or two ahead of you. Now that you’re getting older, you may find it a safer financial bet to look further into the future. With the knowledge you gained you can make a strategy for the future so that you can live a productive life.

If you wanted to learn more about top traits of stock traders, the information in this article should have been helpful. The advice above contained some great information. If the information is fresh, new and helpful, you’ll probably find it here! If it’s tried and true, that’s covered too! Continue reading until you learn the information you need.

Investing 101: Everything You Need To Know To Get Started

TIP! If you intend to build a portfolio with an eye toward achieving the strongest, long range yields, it is necessary to choose stocks from several sectors. Although the overall market trend tends to go up, this does not imply that every business sector is going to expand every year.

There are many different ways to be successful when investing in stocks and bonds, but there are even more ways to fail. Read the following article for excellent tips on how to improve your investing skills in the stock market. Today, you can begin earning from stock investments.

TIP! You could invest in stocks through vehicles like your retirement plan and 401K. You will not be able to touch the money in the fund before you retire, but you will save a ton of money on taxes.

Only buy mutual funds and stocks that you are completely comfortable with. Know your investing temperament. When you want to minimize the risk to which you are exposed, concentrate your investments in more conservative funds and stocks, or simply keep your assets in more liquid forms. If you intend to invest in mutual funds and stocks that tend to vary in value more, you need to be comfortable taking on more risk.

TIP! Look at your stocks as a business that you own rather than simple elements that need to be traded. Go through financial statements and other reports from the companies you invested in to get a better idea of the company’s potential.

For the most flexibility, choose a brokerage company that offers both online trading when you want to make independent investment decisions and full service when you do not want to choose your own stocks. Working with such a broker lets you split your total investment into whatever proportion you like, handle part of it yourself, and turn the rest over to your broker. This hybrid strategy lets you take advantage of professional investment advice and also practice your own investment skills.

TIP! Don’t be afraid to take a break from the market. If your life has become hectic or you are often distracted, there is no shame in postponing your stock trading for a while.

Don’t over-invest in your own company’s stock. It is okay to purchase a bit of stock in your company, but be sure to diversify. If your portfolio consists mainly of the company you work for, like it was with many employees at the doomed energy giant Enron, you could possibly face financial calamity. A safe stock portfolio should be a mix of different stocks.

TIP! Prepare yourself for long term investments. Stock investments are often very unpredictable, and those who only seek short term profits are sure to be disappointed.

If you are wanting to save some cash while investing, you should consider online stock trading. There are many firms online which offer very low fees. It is important to find the perfect deal possibly by shopping around the Internet. Two good options are TD Ameritrade and Fidelity.

TIP! Look for a reputable investment service, and subscribe to it. One quality service is really all you need.

Start out with stocks you are familiar with. If you have heard that a stock has done well before or there is an industry that is familiar to you, purchase a couple of shares. This might be a helpful way to get your feet wet in the market before you move on to riskier ventures. In addition, this provides you with the chance to experience immediate gains that could give you the motivation to keep working on your career with the stock market.

TIP! When analyzing a particular company, take a closer look at how its equity is associated to the voting rights inside the company. Many times the corporate management team only hold five percent stock, but somehow manage to control seventy percent of the power when it comes to voting.

There are too many factors involved to try and make your money from timing the market. History has proven that the best results go to those who steadily invest equal sums of money into the market over a long period of time. Figure out how much of your money you can afford to invest. Commit to making a regular stock purchase with this amount.

TIP! Oftentimes, the best approach is to follow a constrained strategy. This involves searching for stocks that are not very popular.

It is smart to keep a savings account with about six months’ worth of living expenses in it, set aside for emergencies. This allows you to have a cushion if you lose a job, suffer an illness or have any other issues that prevent you from covering your bills, so that you do not need to dip into your investments.

TIP! Investing in damaged stocks is okay, but refrain from investing in damaged companies. The best time to buy stock in a company is when its stock price takes a temporary tumble; as long as the downturn really is temporary, the profits can be great.

It is advisable to practice investing before using real money. This doesn’t even require any software. All you have to do is pick a particular stock and write down it’s current market price as well as your reasoning. You should record the stock over a significant period of time to see how it performs. This will help you get a better understanding of how your own predictions pan out, so that you don’t lose money up front.

TIP! If you would like to invest in the stock market but feel unprepared to do so, investigate local investment seminars that you could attend. These are normally available for a cheap fee, and you are educated by professionals that could assist you in gaining a lot of money in your investment.

If a business outperforms your expectations, this can be a good sign for the future. Negative surprises are bad and could continue into the future. When investing in business stocks, it is essential to remember this. One thing that occurs typically leads to something else.

TIP! Evaluate the track record of the brokerage firm that will be managing your investment account. Lots of consultants and firms will assure you that they can deliver great profits and minimize risk, but not all of them possess the requisite professional skills.

Buy a number of affordable stocks instead of several expensive ones. This keeps stocks easy to sell and manage. The pressure you feel won’t be as overwhelming when you decide it is time to actually sell your stock.

TIP! Start investing with stocks that are proven and trustworthy before branching out into riskier and potentially more profitable options. If you are new to the market, these options can fill your portfolio with stocks that offer lower risks for their investors.

Think about the products and services you use when evaluating a common stock. Your gut instincts are able to help you out a whole lot. Once you have looked at and approved of their balance sheet, and it seems that they are honest, think of whether or not you would use that company’s item. If the answer is no, then you may want to think again about investing in the company. At least you’ll know whether or not you can accurately judge a company.

TIP! While some people focus on penny stocks for quick results, the best returns are found in the long-term results from blue-chip stocks. While selecting companies for potential growth is the key, you should always balance your portfolio with several major companies as well.

Before leaping in, watch the market closely. Prior to your first investment, research the stock market, preferably for quite a long time. Keeping your eyes trained to see if the market is going up or down takes a minimum of three years as a basis of analysis. This will give you more market knowledge and increase the likelihood that you will make money.

TIP! Make sure that you spread your investments around a little. You don’t want all of your money riding on one stock alone, you want to have options.

Paper trading is a good way to lead up to stock market investing. This can give you practice without using actual money. This strategy does not involve real money, but gives practice in developing your investing methods for later, real-life stock trades.

TIP! Stocks are more than a piece of paper that is bought and sold. A stock represents your ownership of a piece of the company that issued it.

If you are a novice at the stock market, it is wise to start out using a cash account instead of a marginal account. Cash accounts aren’t as risky as margin ones since you can control the amount you lose more carefully.

TIP! Consider hiring a investment broker. They will help you make better financial decisions.

A simple investment plan is the best bet for a beginner. Diversifying and trying to do too much at first isn’t the wisest way to go for the beginner. It will save you money in the long run.

TIP! Do not let people persuade you into doing things you aren’t comfortable doing. While taking advice from others is always a good idea, remember to have a strong firm mind of your own.

Although anyone is capable of investing in the stock market, not everyone has the right information and research to make the best profits. Focus on your education and how the market works, and make a calculated decision before buying. Keep the advice you’ve read here in mind so you can make the largest profits possible!

When you think about is your money safe in the stock market, there is a good chance that you do not think about everything that is involved with it. When you have knowledge, success is almost certain to follow. Take in everything you can when you’re learning about the subject of is your money safe in the stock market and put it to use.

The Exciting Life of Accounts Receivable

When talking about paying off debt; I always took the same approach. I never liked having debts to pay off and always made sure to balance my books as soon as financially possible. I operate in this manner whether I’m borrowing a dollar for lunch or paying off my student loans I took out five years ago. It seems like only common sense to maintain the highest credit score possible. I never like having my debts being found on any accounts receivable page and I always thought most people felt the same way; until I met my buddy Mike.

My friend Mike, whom I’ve lost contact with in recent months was an entertaining person. For some time we worked together in a warehouse stocking away medical supplies for the man. Though he lacked a formal degree of any sort he did have a sense of logic and rationality about him. We were able to go on for hours discussing our various philosophies on life and how we’d each approach different hypothetical situations.

One day as we were rambling on about random issues happening in each other’s respective lives we came to the conversation about debt. I explained to him my very traditional and I suppose, not well inspected philosophy on paying debt. I told him exactly what I thought about paying on time and keeping a good credit score because that’s what common wisdom told me to do. He on the other hand had a different approach to things.

Mike was never the type of guy to care whether or not companies such as Rapid Recovery were trying to get a hold of him. Having credit issues his entire life; he maxed out his credit cards years ago and settled on just never paying them back. Even more so; he never even cared about further ruining his credit by taking out more money he wouldn’t be able to pay back. His reasoning boiled down to how he viewed the common person of today’s economy. Because so many people owe so much money in this day in age creditors are generally expecting (according to Mike) never to get their money back anyway so he’s no different than millions of others and so; he’s just a drop in the bucket. He truly believed his method would work everything out in the end.

Though I have respect for Mike’s intelligence and personality this is one avenue in life I completely disagreed with him on. I don’t want to spend my life in debt to people hoping they write me off as an expense.

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Your Choice Is To Invest Now Or Regret It Later

At first glance, the life insurance industry appears to be in trouble as it faces the millennium. As the large baby boomer market ages, these consumers have shifted their financial focus away from life insurance and towards assuring their future comfort. Although the industry has long recognized that its future lies in more in financial products than in life insurance, it has lately been losing its share of the retirement market

While mutual funds and brokerage houses have been expanding their market share, their inroads have been mostly at the expense of depository institutions, not life insurance companies. The retirement market is a growing financial feast, even if insurers do have to compete a little harder for their share of the bounty. By the end of 1996, total private retirement assets in the U.S. stood at almost $5.1 trillion, having increased as a share of total national wealth from 10.6% in 1983 to 13.6%.

The annuity market represent insurers’ best hopes to retain a significant share of the retirement market. In 1993, annuities represented almost 20% of the market, following IRAs’ 23.4%. Insurance companies’ share of this huge financial stash stood at almost 76% in 1993, equal to more than $1 trillion, of which about $734 billion was earmarked for retirement.

With these developments in mind, strategy for life insurance firms in the decade ahead need to aim at stopping their skid out of the retirement market, where they have fallen from a 22.7% market share in 1983 to 18% in 1996. 1. Retain dominance in annuities by increasing cost efficiency in delivery and holding down fees, to maintain competitiveness with other financial services. 2. Slow down loss of market share for IRA accounts. While this market has diminished in terms of new contributions, financial returns on existing IRA assets have grown to 12% of insurance company pension assets as of 1996, from 3.3% in 1983. 3. Jump with both feet into the exploding 401(k) market, with particular emphasis on pursuing the fat market for rollover accounts.

For the life insurance industry, the stakes are clear. While its decline in competitiveness is not as serious as widely proclaimed, its share of the retirement market has been falling by more than 1% a year in recent years. Because its income from annuities has surpassed its income from life insurance since 1985, clearly it must continue to pursue the retirement segment. Now, however, it also needs to look to ways of solidifying and perhaps expanding its share of the 401(k) and IRA niches.

In an effort to maximize returns, many funds turned away from Jones’ strategy, which focused on stock picking coupled with hedging, and chose instead to engage in riskier strategies based on long-term leverage. These tactics led to heavy losses in 1969-70, followed by a number of hedge fund closures during the bear market of 1973-74.

With media attention still focused on the recent failure of some hedge funds, there has been an increasing move towards their regulation. In 2004, the Securities and Exchange Commission adopted changes that require hedge fund managers and sponsors to register as investment advisors under the Investment Advisor’s Act of 1940. This greatly increased the number of requirements placed on hedge funds, including keeping up-to-date performance records, hiring a compliance officer and creating a code of ethics. This was seen as an important move in protecting investors.

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Investing Without A Clue Will Only Make You Look Like a Fool

Without a financial plan, how do you estimate how much you need to support your financial goals and commitments? You might erroneously think that you can afford to spend most, if not all, of your current income.

In order to manage your wealth during retirement, there are a few things you will need to know. Investing during your retirement can be a lot of fun if you have a solid education about what you will be doing. Most people have not really put the time in to learn about managing their own money.

When thinking about how much should be accumulated for a retiree, try using a financial retirement calculator that can be found online. Every of you might have different protection needs, it is hard to determine how much you should insure yourself if you don’t have a clear financial situation. You might over insure if you are risk averse or under insure if you are a risk taker.

The ups and downs up the market is a great way to learn emotional intelligence. If you are not managing your money, chances are, you are cheating yourself out of this great lesson in life. You can also make money when the market is going down, but you have to have education and be trained to do so.

Without a proper financial plan, you won’t be able to identify the investment on return (ROI) that suit your financial freedom. You may end up investing in wrong investment products which might affect you financial plan.

You will be able to adjust your expenses such as children’s tertiary education, your retirement age, your retirement income and other financial goals to accommodate your purchase. Without proper a financial plan, you can’t see the impact of your children’s tertiary education funding on your other financial goals. The idea is not to over spend on one child and affect the funding of other financial goals or worse, the funding of others children’s tertiary education.

Making good decisions about your wealth and investments is part of having a good wealth plan. Most people have not gotten rich by letting other people manage their money. Once you get out of your workforce, getting back in can be very difficult. Your time should be enjoyed while you are older.

In retirement planning, you don’t want to retire too early and end up not having enough financial resources to support your retirement lifestyle. You also don’t want to retire too late that you might don’t have enough time to enjoy life.

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Stock Market Investing With Mutual Funds

To novices and experts alike, the stock market can sometimes be erratic and enigmatic. We can erase the mystery that clouds the topic and let you know how the market can be unpredictable, and how you can take advantage of this trait.

The stocks in the mutual funds are the same as the ones you have in your IRA and 401K. The same companies in mutual funds are the same in the S&P 500 Index which is the stock market. The S&P 500 Index is a list of the 500 largest companies in the world such as Target, AT&T, Apple, BP, Coke and hundreds more. By watching the S&P 500 Index you can see what and how the overall stock market is doing. Other indexes are the Dow Jones Index but it only has 30 companies and the Nasdaq Index which has many small companies. These two Indexes follow the direction of S&P 500 Index because of its more well known companies.

Unlike today, those corporations were only government owned companies. Asia’s first stock exchange was established in 1875 in Bombay and still functions today as one of the most important markets in the world. Privately owned corporations began in the United States of America, United Kingdom and in other countries in Western Europe in the 19th century.

Over the centuries stock markets have undergone vast improvements and today most stock markets incorporate advanced technology in to their trading process. For example, in the Tokyo stock exchange trading is completed by computers. Even though the exact process of stock markets depends on their internal organization, in every country stock markets are under government regulation to ensure the safety of investors.

Only brokers are authorized to carry out trades. Private investors need to find a suitable brokerage to set up an account with and deal through. The process is no more complex than setting up a bank account and once a brokerage account has been established, you are in control of the buy and sell orders related to it.

Alternatively, you can invest in the stock market through special plans such as those involved with retirement. Examples of such plans are the 401k in America and Individual Retirement Accounts (IRAs). In these instances, you do not have any control over traded stocks. The third way to invest in stocks is via Dividend Reinvestment Plans (DRIPs) or Direct Reinvestment Plans (DIPs), where you do get a say in the stocks you buy or sell.

There are a lot of articles that write about a mutual fund investment strategy and but none will tell you why or how the strategy works.

Do have a Plan and stick with it. Always stick with your trading plans and rules and do not get carried away with the market. If you just stick with your strategies, trading plan and be disciplined you will succeed every time. Never ever enter a trade without a plan. Imagine entering a battle without a plan or strategy. It will fail!

This all points to our economy. Our economy is base on the gross domestic product. This is the increasing and decreasing of services and products that are produced by business services in the U.S.A. The Government have Economist study how the U.S. economy is performing every month. These reports show how the manufacturing of products, employment, business services and retail goods are performing currently and in the past. It easy to see if the U.S.A. economy is in a recession by comparing it to the stock market.

Do Lots of Background Reading and Research. Even if you believe that you have the best broker in the country it is mandatory that you know exactly what is going on in the market. Remember it is your money. In order for you to make the best decisions you must have all the available information. So as well as reading the daily press like Financial Times / Wall Street Journal etc, try to read the trade magazines and annual reports of the firms you have or are hoping to invest in. Don’t be left behind

One of the most important aspects to learn about trading is the mathematics. For example, if you lose 50% on a certain trade, then to break-even, you need to make 100% on your next trade! When you understand the mathematics and put the probabilities in your favor you have a much greater chance at winning in the stock market. Mutual Funds are a portfolio of stocks from hundreds of companies. View the chart of this index using the month to month price and not the day to day price.

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Types of Mutual Funds

So, you’ve chosen to jump into the mutual fund investment game. Whilst mutual funds have shown themselves over time to be a less dangerous bet as compared to normal stock trading, there’s always the possibility you might lose your shirt. However the form of fund you select will have a lot to do with the level of risk you take on and the form of return you’re looking for. For starters, mutual funds are generally divided into six main types.

Equity mutual funds allow you to purchase typical shares of common, everyday stock.

Fixed income mutual funds allow you to invest in corporate or even government security that normally provide a fixed rate of return on your investment.

Balanced mutual funds enable the buyer to take on a fund which incorporates both stock and bond options.

Maybe the most secure kind of mutual funds is the money market mutual funds. They offer a higher degree of stability for your principal, as well as substantial liquidity should you need to back out.

Bond mutual funds are well-known given that they invest in tax free and also taxable types. This can give you a higher return on investment after you take into account your tax savings from a municipal bond.

And finally, sector/speciality funds are used to help expand your holdings within a specific market. It is a fantastic option if you think a particular industry is going to do well. For instance, if you believe the oil businesses will continue their maximum profits, energy mutual funds may be perfect for you. Each of these types of funds may be both thriving and dicey with a high level of reward possible, or they can be more secure and lower risk. It all depends on which fund you choose. Many people diversify their funds so that they can have the best of both worlds. If something really takes off, they can acquire large earnings, if not they are able to hedge their investments with more risk adverse funds.

To break things down even more, equity funds are usually divided up into four various categories: Growth and Income mutual funds, International mutual funds, growth mutual funds and aggressive growth mutual funds. Each different kind of fund features a particular target in mind. For some of us, it is to ruthlessly pursue revenue, even in risky situations, although some seek to protect the initial investment and only consider smaller chances.

As you can see, the mutual fund landscape is loaded with so many options; it can make a newbie’s head spin. But have no fear, there is practically limitless info available on which mutual fund is right for your specific investment strategy. Not only do most mutual funds and those that run them have their very own own internet site, there is limitless advice pertaining which fund is right for you in the Internet as well. Don’t forget to utilize bulletins like the Wall Street Journal, as well as friends and colleagues who might have had particular luck with a specific fund. Welcome to mutual fund investing!

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Every Job Should Offer A 401k Option

Most employers offer 401ks these days, don’t pass these up! These accounts have a lot of advantages for your retirement savings.

Do as much as you feel you can afford, but as a rule at least ten percent, if not twenty. This will help make up for slower saving years and always keep your investments moving forward. Plan out how much you need, and how much you need to save each year. Don’t forget to add in the returns on your investments, like a 401k or IRA. Making a plan is key to any successful retirement savings.

You shouldn’t stop working until you have enough saved to live on for the rest of your life. So the first thing you need to decide is how long you ideally want to live on this money. Of course, the first problem that comes up is not knowing how long you’ll live. Unless you have some kind of condition that convinces you otherwise, it is strongly suggested that you plan on living to be ninety five years old, if not a hundred. It would be awful to be eighty and run out of funds.

Feeling safe with your money is a great way to live life. Stocks have returned a much greater amount then to people who have invested in bonds. There is no doubt that stocks are they way to go, but in today’s world, not to many people feel very safe with the market. If you have stocks, then when should you make adjustments to turn those into bonds?

You must mix you assets up, even though bonds are generally more safe. Having all bonds could go against you, due to rising inflation. With the dollar that keeps falling, there is no safe place for money anymore. You can keep it in money markets if you choose, but the market is not what it once was. By mixing the two investments, you are significantly reducing the risk of your downside.

If you just spend a little time each week reading about different subjects and trying different activities, then you will start to learn who you are and just what you enjoy doing. Many of us get blinded by working all the time. We lose track of what we enjoy in life.

Also take care of any maintenance that you have been putting off with your home. Get a few new appliances, a new roof, and you might paint the house. When you do this, you will help put your mind at ease.

Get a newer car or go ahead and fix anything you know will need repairing in the future. Get all of the big budget items that could come up out of the way. You might want to go ahead and get that tune up, replace some shocks and struts, and whatever else might need to be done.

There is no better time than the present to begin saving for the future. It is necessary to prepare for that and more. You can also factor in what you will be receiving from social security benefits; however, this should be the amount with the least importance. It is rarely enough to live on, and it should be used as part of the extra and cushion factor.

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Investing Starts With Reading Articles About Mutual Funds

A mutual fund guide could basically be called a guide to investing in stocks, bonds, and money market securities.

What this means is that a mutual fund takes all of your money (and every one else’s) and invests in enough securities that anyone with less than $500,000 could never even imagine achieving. And since diversification is key to eliminating risk, saying that mutual funds are too risky is like saying air travel is dangerous. Risk is relative and in terms of reducing that risk, mutual funds achieve it better than any other investment.

Mutual Funds can also possess much more risk than you thought you were encountering. Here’s what I think you should consider doing. First unless you are a real expert, consider buying Index Funds, as opposed to investing in funds that carry a high load, or sales charge associated with them. If you pay a big commission, you simply have less dollars in the investment to work with. Studies show that for most mutual funds, the commission or load simply is not worth it. Don’t let a good or even a great salesman talk you into a load fund, unless you have checked for yourself, that the returns over several different periods of time have been outstanding.

Equity funds invest your money in common stocks with the objective of earning higher returns or profits for investors. Risk is higher here, as the price or value of shares can fluctuate significantly. The fourth category is balanced funds, which invest in a combination of money market securities, bonds, and stocks. The objective is to provide both moderate growth and dividend income at a moderate level of risk. No guide to investing in mutual funds is complete without considering the cost of investing. You can invest through a middleman and pay as much as 5% or more in sales charges called “loads” or you can invest directly in no-load funds and avoid them. While all mutual funds charge for yearly expenses, you can pay 2% a year or more, or less than % in well chosen no-load funds.

Young investors who are just starting with a savings program will find that their friends, family and advisors will almost all have different views about how one should start to invest their money. For some, recommendations will come along the lines of buying real estate that can be flipped or rented out to generate monthly income and long-term capital appreciation. For others, it will mean putting as much money away as possible into a low-paying CD or maybe even mutual funds.

If you have a small percentage of your portfolio (around 10% is recommended) in commodity mutual funds, then you have some protection from a downward swing in the stock market. Commodities also do well during times as of inflation. And they are a good hedge during times of a weak dollar. To take advantage of the diversification benefits of commodities there are other choices available, such as commodity mutual funds. They are similar to stock mutual funds in that there are many types to choose from, just as there are many brokers to buy them from. Do a little research on the funds and brokers and put some diversification into your portfolio.

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Prenuptial Agreement As Well As The Features It Gives

Practically nothing can destroy romance quicker compared to the term prenup. Though with about one in three of all first marriages finishing in divorce, and 50 percent of second or third ones striking the skids, a prenup is smart legal, financial planning and finance experts point out.

“Think of it as being a business arrangement or just as one insurance policy that can help remove many of the feelings which areobviously involved,” claims Nancy Dunnan, a New York City financial author and adviser. “Marriage is not only a physical and emotional union — it is also a financial union. A prenup and also the negotiations which go with it will help guarantee the monetary well-being of the marital relationship.”

A prenuptial accord may be a contract involving two different people about to wed that spells out exactly how investments will likely be distributed in the event of death or divorce. Not Just For The Rich You don’t need to be a Trump or Rockefeller to wish a premarital arrangement. An individual who has been able to save $30,000 could be far more defensive of their little investments than anyone who has millions.

“Those are often one of the most jealously guarded assets as it has brought a lot of effort to amass a small amount of money,” states Joseph P. Zwack, an Iowa attorney and writer of a best-selling handbook “Premarital Agreements: When, Why and How to Write Them.” You should look at creating a prenup in case you fall into any of the following different categories:

* You currently have assets such as a stock, retirement funds or a home

* Own all or part of a business

* You may be getting an inheritance

* You have kids and/or grandkids from a prior relationship

* One of you is really a lot wealthier than the other

* One of you is going to be supporting the other through a college degree

* You have family members who need to generally be looked after, for example elderly parents

Getting close to This issue

So how can you bring up this sensitive issue? Initially, take action as early as possible. The mention of a prenup should not appear to be a big surprise in case you along with your lover happen to be open with each other as the romantic relationship became really serious.

Dunnan suggests lovers talk it over ahead of the engagement. “Let your intended know you feel these arrangements are essential and that you would like to talk about the subject.”

Next, the discussion should be honest. “You should be real candid regarding the reason why you need the agreement. It is not very romantic, however, you have to value what the other person’s concerns are,” states Michael McDonough, a Palm Beach County, Fla., lawyer who practices family and matrimonial law.

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