Investment Articles

Getting back into the market after you have moved all or most of your portfolio to cash requires both a plan and patience. Being impatient can put your portfolio at risk.

After you have moved out of the markets typically you will have to deal with two worries:

• Am I getting in back in too early or too late?
• Should I invest all my cash immediately or space it out?

The answer to the first situation is to trust the method of investing you have been using. If you are using an investment software program to analyze and provide buy/sell signals and it has been successful for you in the past, then wait for new buy signals. Of course you will continue to watch the news to see what the Wall Street gurus and politicians are doing because they have an immense influence on the market’s direction.

How much to invest should also be based on buy signals. If you sold six positions most likely you will be buying back in with six new symbols. But unless your program or methodology gives you six unique buy signals on the same day you will most likely just buy as the signals come, and this could take weeks or even months before you are again fully invested. Will you miss opportunities by waiting for your signals, perhaps, but by sticking with your methods you will also reduce risk and be more likely to garner future gains. Because different groups, like asset, sector or foreign groups of ticker symbols react different to market forces it is most likely that new buy signals will be spread out over time; but this is a good things as it helps keep you diversified and reduces risk.

In other words, if your investment methods have been making you money, previously told you to exit completely or partially from the markets, then the safest course is to continue your analysis at the same frequency (weekly for example) and move back in as your methodology suggests. Changing methods of analysis at this point can put you in the position of using unproven methods or results to make your investment decisions. Of course if you are using a software program that allows for back testing then it may be safe to switch techniques at this point.

Personally I find that it takes me a few months to get back to being fully invested. Yes, it is frustrating at times, but I just keep reminding myself it is safer to jump with a positive signal than to just jump not knowing what the outcome will be.

Author Raymond Dominick is the designer of Dynamic Investor Pro investment software for stocks, ETFs and mutual funds. He has been investing in the markets since his teenage years. An experienced business manager and journalist, he has been a registered investment advisor representative, also a professional photographer who loves escaping to the wonders of Glacier National Park in Montana. View his software at: http://www.dynamicinvestorpro.com

Whenever the world has faced a food crisis before today, there have been opportunities to increase production to meet growing demand and deflate food prices. In the 1970′ the Green Revolution gave farmers the ability to increase yield per hectare, before that in the 1930’s there was ample unused land that could be developed and cultivated. For the first time in history we face a growing demand for food from a population that is expanding at the fastest pace in history, and at the same time yield increases have all but vanished and there is very little suitable virgin land left to bring under agricultural cultivation.

The impact of sever climatic events in in Australia and Russia, and poor yields in China have led to food prices increasing sharply since July 2010. In fact, food price are at the highest level measured since the U.N. Food and Agricultural Organization (FAO) introduced it food price index in 1990.

Current U.N. projections for population growth – up to 9 billion people by 2050 – indicate that global food production needs to increase by 70% to meet future demand. The problem is compounded as developing nations become wealthier and demand more meat protein requiring high levels of grain input (7kg of grain to 1kg of meat), and also the increasing use of biofuels generated from agricultural crops as global oil reserves continue to diminish.

Long-term appreciation in food prices is captured in the capital value of the underlying asset, farmland, and many investors are positioning them to benefit from the fundamental trends by investing in farmland both in emerging and developed economies. Investors have been particularly interested in investing in farmland in developing economies where investment in technology and infrastructure can increase yield and productivity, leading to a greater upside potential for the investor looking to cash in on record commodity prices.

Yield increases through the application of technology such as the use of fertilisers is diminishing, requiring huge inputs of chemicals to achieve only small yield benefits. The majority of value in farmland investments therefore is in the development of what little unused land remains. In South America particularly, the majority of productivity increases have come from the development of unused land into productive farmland as the region enjoys more good quality unfarmed land than any other global region. Argentine in particular offers investors ample opportunity to add value to farmland investments, with the largest grain producing group in China recently committing $1.5 billion to a farmland development project in Argentina. China supplies technical assistance and irrigation infrastructure as well as logistical infrastructure such as the development of ports for export, whilst the Argentine government supplies 234,000 hectares of quality land for a nominal lease fee.

Foreign direct investment in the eleven economies of the South American region including Argentina and Brazil increased by around 20% up to June 2010 compared to the first six months of 2009, with a large share of this capital allocated to agriculture investments.

The general agricultural conditions in South America, particularly in Brazil, Argentina and Uruguay are very favourable, as soil condition and climate allow for excellent yield, lower volatility, and the opportunity for farmland expansion combined with recent government infrastructure investments make for an ideal investing environment for those looking to profit from long-term demographic trends which drive food price inflation.

David Garner is Partner at boutique alternative investment boutique DGC Asset Management Limited.

Download the agriculture investment and forestry investment reports at: http://www.dgcassetmanagement.com

With all that is happening in the U.S. and the world today, I thought I’d share the views of noted economist, A. Gary Shilling.

Shilling’s known for calling it as he sees it. In his most recent INSIGHT newsletter Shilling sounds a note of strong pessimism, but thankfully also gives us some direction on how to position our portfolio for what he sees as a sluggish economy ahead.

Economic View

Shilling believes the economy is going to get much worse from here on out. In fact, he is pretty sure we’re headed for another recession in 2012 and perhaps another decade of flat GDP growth. The reasons he cites are high unemployment and federal deficits here at home, regional conflicts abroad, and increasing global unrest.

Shilling also lists nine well-formulated reasons to support his pessimism, but we won’t go into that here. Suffice it to say that his reasons do hold some merit.

Shilling’s List – What To Sell

1. Sell U.S. Home Builders. Shilling believes this sector has over-binged, that home prices could still drop another 20%, and recommends selling home builder stocks if you own any.

2. Sell Realty Investments. He urges real-estate investors (Steve: such as some of my listeners that have second homes and investment properties) to get out now before prices drop further and you’re stuck in a market with no liquidity.

3. Sell U.S. Bank Stocks. Shilling thinks regulatory uncertainty, gridlock in Congress, and underwater mortgage loans will weigh heavily on bank stocks.

4. Sell Commodities. He believes commodity prices are bubbles that will soon pop because of sharply reduced demand in the weakened global economy he’s predicting. He also believes there’s far too much speculation in commodity prices that is removed from reality, and this cannot continue when fundamental demand drops.

5. Sell Emerging Markets’ Stocks. With low returns at home, U.S. and European money has driven up emerging markets’ stocks to unsustainable levels. He sees a correction coming as weak demand from U.S. and Europe grinds emerging economies to a stop, with China most at risk.

Okay – good to know and imbibe into our investment decision-making subconscious mind. Now let’s see what he wants us to buy.

Shilling’s List – What To Buy

1. Rental Apartments. Okay… so he’s negative on housing and thinks the American dream of homeownership has temporarily gone awry (Steve: remember – his thoughts, not mine) so he suggests investing in rental apartments because more Americans will be renting, on tighter budgets that favor apartments. (Steve: in the rest of the world, more people rent and live in apartments than own single-family homes.)

2. North American Energy. Very simply, with increasing conflicts in oil producing nations (many run by oppressive dictators or monarchs), America plans to reduce its dependence on foreign oil. And since America has a voracious appetite for energy, U.S. energy producers will do well over the long run.

3. Income-Producing Stocks. According to Shilling, the stock market’s gone nowhere over the past 12 years. So he recommends income stocks – utilities, drugs, telecom, preferred shares and the like. (Steve: I agree in that it’s important to have dividend stocks in your portfolio.)

4. Treasury Bonds. Despite all the naysayers, Shilling lays his trust in America. He thinks Treasurys will offer a safe-haven in what he sees as a coming deflationary storm.

5. The American Dollar. And he believes the American dollar will hold its value way better than most other currencies.

So, the good news here is that Shilling isn’t asking us to get out of stocks altogether. He’s just asking us to rebalance our portfolio to play it safe, should his forecast become reality.

Now remember, the list above only reflects one man’s views. So after you read this, please do not rush off to call your broker and execute these trades. Heed Shilling’s advice, talk to your financial advisor, and let your collective best judgment prevail.

If you want to act on nuggets of his advice that make sense for your portfolio then I suggest you use ETFs, futures or indexes that give you the upside while minimizing your downside.

Shilling paints a kind of worst-case scenario. In response, the best investors do not bury their heads in the sand but analyze such points of view – so they can ready themselves should calamity strike. The best also know that no one can predict with certainty what lies ahead. So they keep themselves informed but don’t get overly alarmed or influenced by any one.

So keep a balanced view and a cool head, and invest for the long run.

Visit http://onthemoneyradio.org for weekly commentary and money advice that covers the entire financial spectrum which also airs on my weekly radio show, “On The Money!”

Steven L. Pomeranz, CFP is a 29 year investment management veteran and host of “On The Money!” which airs on NPR station, WXEL in South Florida. He concentrates on serving high net-worth individuals and has been named one of the Top 100 Wealth Advisors 2007, by Worth magazine (October 2007 Issue), honoring America’s premier financial and wealth strategists.

You may have noticed that the New Zealand dollar has been particularly strong lately – currently sitting just below its all time highs at around US$0.82. The NZD has averaged at US$0.60 ever since floating in March 1985; therefore it is approximately 36% above that historic average.

The two reasons for this strength are well understood, and are problems being faced by many countries, including NZ, around the world.
1 – The terrible US budget deficit.
2 – High levels of debt and a property market that many believe has not yet reached the bottom.

In comparison, NZ is in a comparatively better state. Our economy is based on agricultural produce that have strong demand, and our neighbouring Australia is blessed with a rich mining sector. Additionally, our Reserve Bank is seen as credible, our Government sensible, and our outlook better than most in the eyes of many global investors. New Zealand’s interest rates are also attractive, with our OCR of 2.5% being relatively more appealing than the equivalent 0.25% in the US and 0.5% in the UK.

Neighbouring Australia is one of the few countries with a higher cash rate, at 4.75%, and that is one reason why our dollar is currently only buying around A$0.76 Australian dollars, below the long-term average of around A$0.83. So in a historic context, NZ appears overvalued against most currencies across the globe, but undervalued when compared to Australia.

It is important to note that it is not a bad thing to have a strong currency – it can be likened to a vote of confidence. For those New Zealanders travelling overseas, our spending power is much improved with a high currency.

On the negative side; our export sector suffers when it comes to high currency, although not all exporters are impacted as badly. Fonterra’s recently upgraded forecast payout range highlights how strong the demand for dairy produce is, despite the record high currency.

The high currency is more problematic for the manufacturing and tourism sectors in NZ. These industries haven’t had the same corresponding increase in the value of the products they sell.

While the majority of forecasters see the potential for momentum to carry the currency higher in the short-term, the general consensus among the major banks is that the NZ dollar will fall to around US$0.74 by the end of 2011, and then continue to fall to US$0.72 by the end of the 2012. Therefore an estimated fall of approximately 13%, which would still see the dollar trading well above its historic average.

Against the UK Pound the average forecast suggests a decline of a similar magnitude from £0.50 to £0.43 by the end of next year.

Forecasters expect the NZ currency to trend back toward its long-term average of A$0.83 against the Australian dollar over the next three years, a rise of about 8%.

Currency estimates change often, and are often inaccurate too. But taking a step back from the short-term noise of financial markets, there is a case for taking advantage of the high NZ dollar and adding some global shares to investment portfolios.

Given the unusually weak exchange rate against the Australian dollar, it could also make some sense to sell a few Australian shares to fund these purchases. To reduce some of the timing risk, we would suggest buying in installments. By doing this, if the currency increases further, which it could well do while it has such momentum, some of these purchases would take advantage of the even higher exchange rate.

This is a modified article from Mark Lister. To read the complete article visit www.craigsip.com. Craigs Investment Partners Limited (formerly ABN Amro Craigs.) is an NZX Firm that was established in 1984. It is one of New Zealand’s largest and most established investment advisory firms.

The Chinese state intends to allocate more than $15 billion to domestic farmland investments in an attempt to sure up the world’s largest population’s food security, according to the Ministry of Land and Resources (MOLAR).

The aim of such a large scale agricultural investment is to improve technology, infrastructure and yield potential for over 4 million hectares of farmland, and almost 700,000 further hectares in major grain producing regions within the country.

If successful, this investment in the country’s agricultural production will lead to an increase of around 10 million tonnes of grain in China’s production capacity, according to MOLAR.

China is also making agriculture investments overseas, and Northeast China’s Beidahuang Group, intends to invest in an agricultural joint venture with Argentina’s Rio Negro Province.

After three years of negotiations, the state-owned farmland investment and development company, which is China’s top grain producer, is planting out soybeans and other crops in the Patagonian province, paying very low rents in exchange for investment in the development of unused land, according to the Argentine government. In 2010, Beidahuang Group cultivated over 17.5 billion kgs of grains including 15 billion kgs of cereals. The company has stated that this volume could feed 75 million people per annum.

The Argentina agricultural investment project, based on over 300,000 hectares of farmland, will introduce advanced irrigation, power generation facilities and infrastructure investments in ports.

Wang Wei, assistant general manager of Beidahuang Group, stated that although Argentina has ample land of excellent quality and a great climate for agricultural production, the current level of technology employed is lacking and therefore investment in agricultural technology and infrastructure adds a huge amount of value, leading to large increases in productivity.

This synergy of technical expertise and agriculture investment capital from China, and land resources from Argentina is effectively a win-win for both sides. According to the agreement reached by the two sides, the Chinese Group provides irrigation and technical expertise, whilst the Argentinian government provides 234,500 hectares of farmland at a very low rent, almost free in fact. Argentina has also contributed a further 3,000 hectares of high yielding farmland as a gesture of goodwill.

The project is heralded as the primary agriculture investment made by a Chinese company into Argentina’s agricultural production industry, and is likely to be the first of many as the world’s biggest population seek the capacity to feed its 1.3 billion citizens.

Argentina’s primary crop is Soy, and China imports the majority of Argentina’s crop annually. A further agricultural investment in Argentina by a Chinese company is the recent announcement by Heilongjiang Beidahuang Group who have entered into a joint venture with Cresud SA to invest in farmland and cultivate soybeans. Cresud has over 1 million hectares of farmland, cultivating grains, livestock and milk.

Download the agriculture investment and forestry investment reports at: http://www.dgcassetmanagement.com

David Garner is Partner at boutique alternative investment boutique DGC Asset Management Limited.

One of the best ways to save for the future is to invest your money in the right products. Putting your extra money somewhere where it has a chance to grow in value is a good move. Any wrong move will only make you lose your hard earned savings.

What you should do then is to be extra careful in choosing investment products. Make sure it’s within your budget and not something that many people are investing in at the moment. Following the trend is never a good idea, according to the experts. It’s what they call “portfolio envy” which prompts people to be envious when they see the others around them making money. But instead of having this attitude, you should rather focus on your individual goals and not follow those of your neighbor’s actions.

Another move you should take is to make regular investments at specific intervals. While you are still earning a regular income, it would be ideal to consider the so-called target date funds. This type of funds usually adjusts its mix of investments according to your anticipated retirement date.

Reconsider your decision of investing in bonds. Putting your money in treasury bonds may be seen as a safe move but it isn’t always so. You should know that when interest rates go up or the fiscal situation in the U.S. deteriorates, for instance, you could lose money from your treasury bonds notably when you’ve invested on the long-term ones.

A good alternative is to continue to invest in stocks especially if you’re still young. If you want to go with bonds, make sure to choose the short-term ones only. Experts recommend the treasury securities which are inflation protected than the 30-year treasury bonds.

A word of caution, though. If you will be using your money in the coming years, it’s not ideal to invest in the stock market. It would be better that you put your money in an online bank savings account that provides a high interest.

In addition, be responsible enough and do your research in the investment products you buy. Don’t rely too much on a stockbroker who may just be making money from you and not giving you the right advice. There have been many cases of stockbrokers who just pushed their clients to invest in the more expensive products with the end goal of earning higher commissions. You would benefit more if you get a financial planner that charges you a set fee in exchange for his advice on investments.

Your retirement account is also a good investment opportunity. But don’t assume too much when it comes to the amount you’ll get for retirement. You have to adjust your expectations if possible.

Finally, your home can be a good investment as well but don’t just expect too much. You can beautify your home if you want to add value to the property but don’t think that you can sell it right away in the event the need arises. The housing market has its ups and downs so again, proper research is necessary before making any decisions.

For information on bankruptcy, finance, credit, bankruptcy lawyers and more, visit http://onlinebankruptcyblog.com.

With high inflation, we need to take control of our finance and plan for our futures nowadays. Living within one means reduce the risk of debt but is it sufficient to secure your future? Why do we need to be financially free and have financial control?

We need to invest to build up a source of income, which will continue to grow and be able to provide a secure future for ourselves and possibly our next generation.

The reasons to invest include:

1. Let your money work for you: Learn to save money and invest the rest so that it grows even when you are sleeping.
2. Cope with inflation: If you have wise investment that surpasses the inflation rate, you have a sound future finances. You have no worries of the prices of dairy expenses.
3. Business owner: Business needs to invest, whether small or big small sized business. Investing not only grow the capital and expand the business but also teaches one to become a successful businessman.
4. Dependents: Money generated from investment can help to pay bills, buy accessories and pay expenses for holidays.
5. Education: Education fee is increasing with inflation. Investing in an education plan helps to support someone’s studies.
6. Assurance: By making long term investment, you can be assured of sufficient money if you plan to retire. Start investing young and you can have a higher return before you retire.
7. Attaining things you want: The returns from investment can be used to get those things that you dream off, such as cars, houses, etc.

Investment return has to be a source of money unrelated to our regular wages, but money from income producing assets. We have to invest in income producing assets so that they will grow and we can be financially independent.

The investment risk level that you take depends on your needs. If you are interested to make fast money, you would be interested in investment which involves high risk. If your plan is for retirement, you would prefer something that is safer and can grow over time.

The main objective in investing is to create wealth and security with time. It is always impossible to earn an income as one will want to retire. Hence, smart investment helps to insure your financial future. The earlier you gain the investment knowledge, the more successful you will be. Longer time in investment means higher return and you can retire earlier.

To get more free tips and advice on making money and business opportunities Click here to download my free ebook Or visit my website @ www.savemoneyoffer.com

As investors continue their search for alternative investment assets that offer capital preservation, income and inflation hedging characteristics, and that are supported by sound long-term fundamentals such as population growth and economic expansion, many institutional investors such as Pension Funds, Hedge Funds, Sovereign Wealth Funds, Family Offices and UHNW Individuals are turning to farmland investments to generate long-term gains without dramatically altering the overall risk profile of a balanced investment portfolio.

Currently, around 1% of institutional investments assets sit in agriculture investment, and most think tanks and analysts predict that this will rise to over 5% in the next five years, creating a spike in short-term demand and adding further upward pressure to demand and therefore prices. This might be described as the beginnings of a bubble, much like many real-estate bubbles before, but the bigger picture looks different this time.

On one side of the equation we have an increasing demand for commodities such as food and biofuels as the population continues to expand at the fastest pace in history. To put this into context; up until around 1800, the global population had risen and fallen in line with our ability to produce food using the basic of agricultural techniques, yet since the introduction of hydrocarbons for energy and agriculture, the population has increased from only 800 million to over 7 billion in just over 200 years. At the time our grandparents were born there were around 1.5 billion people to feed, and by the time we were born, that number had increased to around 5 billion.

Economic expansion in developing economies also contributes as wealthier populations shift toward a more protein based diet consuming more meat. In China alone, 50,000 people move from rural areas to urbanisations, and their diets gradually shift towards meat. According to a report by the Centre for World Food Studies in Amsterdam, meat consumption in China was around 20kg per person in 1985, reaching over 50kg per person by 2000, and projected to reach 85kg per person by 2030. As 1kg of meat requires the input of around 7kg of grain, the growing pressure on global cereal supplies is immense. If everyone in the world consumed as many calories as the average American, we would need to find farmland equal to 2.2 Earth sized planets simply to keep up with demand.

One the flip side of this equation we have supply of food, and ultimately the farmland that produces our food. At every point in the 38 year commodity price cycle where real assets have undergone sharp re-pricing due to shock increases in demand at a time of limited supply, there has been opportunity to increase supply, either through the development of new farmland, or through the developments and application of new technology such as the use of fertilisers during the Green Revolution which led to a significant on-going annual increase in agricultural yields.

Currently, population growth outstrips output growth at a time where little or no new farmland is available to bring to cultivation, and yield increases from the use of fertilisers are diminishing towards zero. This unique set of circumstances dictate that there is no obvious remedy to the supply demand problem, supporting the theory that higher food prices are here to stay as little can be done to increase supply yet demand continue to grow.

Those investors choosing to agriculture investments in the form of the acquisition of quality farmland assets are likely to be best positioned to benefits from the underlying fundamental trends such as population growth and economic expansion. Investors that acquire quality farmland at today’s price are likely to enjoy inflation-linked capital growth in the long term, as well as an expanding income stream from rentals or the production and sale of food crops.

About the Author:

Download the DGC Agriculture and farmland Investment Report at the following link: http://www.dgcassetmanagement.com/agriculture-farmland-investment

All it Takes to Make a Million Dollars is Time, Consistency and Rate of Return. Timothy McMahon, editor at Financial Trend Forecaster, shared some numbers and data to support the statement on a blog post and it got me thinking about a pretty exciting reality: Anyone can be a millionaire.

It’s true. The tools are available, especially here in opportunity-rich North America, for anyone with a little bit of self-discipline and a willingness to learn. A-a-a-a-and there’s the rub. Despite having the key to the Million Dollar Formula, those two little characteristics make all the difference when it comes to WANTING a million dollars versus actually MAKING a million dollars.

Think about it. We all know that a journey of a thousand miles begins with a single step. And then another and another, until we finally reach the destination. We know the destination is there waiting for us even though we can’t see it. We know that paths are available to get us there, sometimes many different routes. So why do so many of us never actually make it there?

Self-Discipline

It’s been said that ultimately we are the sum of our choices in life. Nowhere is that more apparent than in our financial picture. Good habits are the cornerstone of success but to develop them you have to be willing to prioritize and maybe even curb some indulgences along the way.

The ability to delay gratification is a huge struggle for most of us. But it’s also your most powerful tool when it comes to money, saving and investing. Patience really is a virtue. If CONSISTENCY is one of the keys to the Million Dollar Formula, then having a plan and a system can really help you balance and manage the process, as well as to stay focused on the end goal. This is especially important when the goal is long-term, like retirement and the benefits can’t be seen or felt immediately. Make it as easy as possible for yourself to be successful!

Temptation and accessibility are the silent saboteurs when it comes to your money and savings. Take steps to make it harder to access your funds, like setting up a separate savings account that is NOT linked to your ATM card or locking up your credit cards (carry only one for true emergencies). Choose to go to the park or beach instead of the mall. Unsubscribe from magazines and emails with advertising and offers. Keep pictures to remind yourself of the end-goal and track your progress so you have a visual representation of your success.

Treat your savings like an iron-clad fixed expense and take it off the top of each paycheck no matter when or how often it comes in. YES, YOU CAN! Remember, it’s about making choices. Latte or $1M? Eat out or $1M? New car or $1M? Every single indulgence is a choice you make that adds up and pushes your goal back a little further. It’s not about doing without; it’s about values and priorities. If you want to get to the Million Dollar Destination you have to make it a priority. How quickly you get there depends on how high a priority you want (or need) to make it.

McMahon shares the math about the effects of Time and Consistency, along with an interesting thought: “Even if you don’t have a (lump sum) nest egg you can retire a millionaire. Simply by saving $10 per day and investing it at 15% per year you will still reach Millionaire status in 25 years. Is 25 years too long to save become a Millionaire? The average mortgage is 30 years! So why are people willing to go in debt for 30 years but not save for 25 years?”

Willingness to Learn

People will often tell themselves that others have more opportunities, more cash, more luck or more whatever so that they can absolve themselves of any and all responsibility for their own success (or failure!) The truth is that we are each in charge of how we handle the people, things and events in our lives.

We are in the Digital Information Age. There is information readily available on just about every possible topic you can think of, including money, finance and investing. There are many paths to get to the Million Dollar Destination but not all of them will be right for you. Taking time to read about different options and benefits will help you make informed decisions and more likely to avoid costly mistakes and setbacks.

Knowledge is power. Even a child can understand the value of knowledge. I asked my 13 year old son which he’d rather have: A million dollars or the ability to make a million dollars. He explained that, of course, knowing how to make a million would let him do it over and over again. (But as we all know, knowing and doing are two completely different things – cue self-discipline!)

Are you familiar with the phrase, The rich get richer and the poor get poorer? Knowledge and discipline really do make all the difference in the world. McMahon shares this insight and helpful information about Assets and Liabilities:

The Wealthy buy Assets; the Poor buy Liabilities; The Middle Class buy Liabilities believing they are Assets.

Knowing the difference between an Asset and a Liability is fundamental to building wealth. Assets earn money and can appreciate in value; liabilities cost you and depreciate. A rental home has the capacity to provide income and tax benefits AFTER covering its operating expenses, as well as the potential to appreciate in value. Conversely, that boat you’re eyeing might provide hours of enjoyment and entertainment but it depreciates the minute you purchase and costs you every month for storage, gas, licensing, registration, maintenance and repairs.

As your funds grow, so will the temptation to spend and/or move them around. It’s important to understand the pros and cons and the ins and outs of what you are invested in so that you can make informed decisions, regardless of whether it’s the stock market, real estate or any other asset class. Rates of return vary greatly from product to product and every investment carries its own risk and parameters. Again, there are many possible paths to get to the Million Dollar Destination so you need a basic understanding how they work to decide which is right for you.

Million Dollar Formula

So here it is again, the not-so-secret formula for anyone to make a million dollars:

Time + Consistency + Rate of Return = $1Million

Whether it’s the magic of compound interest or the brilliance of principal reduction, the sooner you start, the longer your funds have to work for you.

Now that you have the Million Dollar Formula, the big question is ~ What are you going to do with it?

BTW, did you know that one of the best graduation or birthday gifts that you can give your kids is a ROTH IRA? They may not fully appreciate it now but over TIME when it helps to pay for their college education or a down payment on a house, rest assured your kids will profusely thank and consider you a financial genius!

Jacqueline Ross, CCIM is an experienced investor, educator and real estate professional. She founded Investment Strategies, Inc. to work with property owners and investors nationwide to achieve personal and financial goals through real estate and related investments. Sign up to receive eNews updates and learn more about strategies that can help manage risk, create additional income, tap into and activate ‘lazy’ equity, maximize retirement fund potential, truly diversify investment portfolios and build wealth.

There are certain principles, certain keys to investing if you are retired. Yes, there are many books on the subject and new magazine articles almost every month, but somehow they seem to either miss the key factors or their verbiage is so long the key points are glossed over.

It’s kind of like when I go for a hike in Glacier National Park. What I want to know is:

What are the key characteristics of the trial?

What are the viewing highlights along the trail and at its destination?

What’s the weather forecast?

What animals may I see?

Have there been bear sightings?

Because I’m not a scientist I don’t want to know the geology every ten feet along the way, nor the name of every flower, plant and tree (some yes, but not every darn posey).

It’s the same with managing your retirement funds. Concentrate on the key factors and then follow your trail map to success.

As a retiree your keys to successful money management are:

• Am I interested in managing my investments myself or should I use a professional advisor/planner? This is a key to your trail. And do I have time – 30 minutes or more a week? If you are going to self manage, what software program will you use?

• Do I prefer ETFs, or mutual funds or stocks? These are your viewing highlights and if you know how to classify or divide them into working groups, or have access to advice on this matter.

• Can you check your emotions at the door so you make unbiased decisions? Do market drops scare you like a lightning storm or can you shrug them off and keep on your trail because these are part of your ongoing weather forecast. Another aspect of your forecast is exactly that: what is your life expectancy? How long did your parents and grandparents enjoy life? Your investment diversification needs to be based on your life expectancy so you both earn and retain money for your trip down life’s trail; being too conservative with a long life expectancy ahead could result in a money shortage down the road while being too aggressive may risk your core too much.

• Are you easily distracted by news, comments or suggestions from friends that may sway you to buy or sell when your program or advisor gives different recommendations? These are the animal sightings that can distract you along the way, even as they are captivating at the same time.

• Do your strategies encompass signals for when to take safe cover, such as when there is a major market drop. Seeing grizzly bears in the wild is awesome, but preferably from a distance and if up close with bear spray in hand and knowledge of how to react to a bluffing or charging bear. You need the same safety plans when investing. A good advisor and some software programs take safety into account.

Author Raymond Dominick is the designer of Dynamic Investor Pro investment software for stocks, ETFs and mutual funds. He has been investing in the markets since his teenage years. An experienced business manager and journalist, he has been a registered investment advisor representative, also a professional photographer who loves escaping to the wonders of Glacier National Park in Montana. View his software at: http://www.dynamicinvestorpro.com