Investment Articles

Many wealth managers approach investors positioning themselves as “trusted advisors”. Can you develop this type of relationship with someone who is compensated for selling product, or should you seek out a wealth manager who operates without conflicts of interest between the firm and the client? As more independent advisors arise, this question will present itself more frequently to investors.

One of the biggest complaints investors have is that they feel they are being “steered” towards specific investments by their advisor. Frequently, these products are manufactured and/or managed by the firm that employs the relationship manager. They can take the form of mutual funds, managed accounts, or partnerships. This is true for brokerage firms, investment banks, and trust banks. In many instances, the compensation of the “trusted advisor” is largely impacted by how much proprietary product he or she can sell. With that type of motivation in place, it is fair for investors to ask if their best interests are being placed first.

Some large financial services firms responded to investor’s lack of trust by creating a “platform” that includes a limited number of outside advisors side by side with their own offerings. This is frequently presented in the form of a “wrap” program that entails a large, all-encompassing fee. The wrap fee includes compensation to the investment manager, the advisor, and the advisor’s employer. These layers of fees add up. While convenient, it may prove to be an expensive proposition to the investor. As a result, many investors are gravitating to fee-only independent wealth managers who offer open architecture in a conflict-free manner.

The role of a fee-only advisor is quite different from that of the more traditional relationship between the client and his broker or trust officer. A fee-only wealth manager does not and will not manufacture or sell investment products; their only source of income comes directly from their clients. They will refuse compensation from investment managers, insurance companies, banks, and other sources of investment merchandise. His or her role is to work with you to structure a multi-manager portfolio that fits your specific investment needs. The advisor will likely spend time with you to understand your goals, objectives, and risk tolerance long before the investing process begins. Many fee-only advisors have Certified Financial Planners on staff. These professionals will work with you to ensure that you have the right structure around your assets (i.e. wills, trusts, etc.) to help you meet you your long-term financial goals in the most tax efficient way possible.

It is becoming more difficult for investors to pinpoint outstanding investment talent. There are so many choices that one can become overwhelmed. Fee-only wealth managers offer true open architecture. They are not limited by an investment platform. This enables them to seek out the best and brightest managers in all asset classes. You should expect that your wealth manager has conducted a thorough amount of due diligence on each of the managers in the suggested portfolio. The advisor should suggest separate accounts over mutual funds. Separate accounts are less expensive and more tax efficient than commingled funds. Since your advisor is not compensated for transactions in your account, he or she will probably recommend that your assets be held at a large discount brokerage firm. This will help minimize overall costs to you. While you will be receiving monthly statements from your brokerage firm, the wealth manager should provide consolidated performance reporting on a monthly basis.

To review, here is what individual investors should expect from an independent, fee-only wealth manager:

* A thorough independent appraisal of your current investment portfolio,
* A discussion about what you want to accomplish with your investment capital,
* An examination of the structures around your assets such as wills, trusts, and retirement plans,
* A well-designed asset allocation model that fits your investment goals,
* A suggested multi-manager portfolio that foots with your goals and objectives,
* Thorough and ongoing due diligence on each of the managers in your portfolio,
* Face-to-face meetings at least twice a year to update you on performance and review your objectives,
* A strong effort to reduce investment costs (i.e. manager fees, brokerage commissions, etc.),
* Monthly performance statements,
* No pressure to buy or sell any investment product,
* A fee based upon the amount of assets under advisement.

Fee-only wealth managers offer an attractive alternative to traditional sales-based financial relationships. You have the comfort of knowing that the advisor is working in your best interests and that all recommendations come from a desire to do an excellent job for you.

Copyright 2010 Massey Quick and Co., LLC – All Rights Reserved

Stewart R. Massey is a Founding Partner and the Chief Investment Officer of Massey, Quick and Co., LLC, an investment consulting and wealth advisory firm. Founded in 2004, Massey Quick provides comprehensive wealth management services to high net worth families and individuals and traditional investment consulting services to endowments and foundations. More information is available at http://www.MasseyQuick.com.

Online investing has become a popular tool for both seasoned and newbie investors. Most of the major investment companies now offer investors the opportunity to buy, sell, and trade all types of investment products from the comfort of home.

Investors can participate in online investing 24 hours a day, 7 days a week from nearly any location in the world. Newbie investors have the opportunity to learn all facets of investing by viewing webinars presented on company websites or interacting with other investors through community forums.

Members can open accounts, deposit funds into existing accounts, engage in trading activities, and even purchase real estate. However, before becoming active in this financial arena, participants must take time to conduct research and understand the pros and cons of this investing practice.

Individuals should familiarize their self with the different types of investment products to determine which ones will help them reach their financial goals. Investors should research the anticipated return on investment, earned interest, and tax ramifications. It is also important to become familiar with each investment company and thoroughly review terms of service and assessed fees.

Individuals who have never purchased investment products often find online investing somewhat intimidating. Those who are just starting out should consider working with investment firms who have brick-and-mortar businesses where they can meet agents face-to-face and obtain personal consultations.

Perhaps the biggest concern people have regarding online investing is security. While this is a legitimate concern, it is important to realize that any information transferred online can be hacked. From banks to hospitals and company websites to government agencies, nothing is 100-percent hack-proof. However, reputable investment companies go to great lengths to protect their clients’ personal information. The chance of having investment information stolen is miniscule compared to other types of online transactions.

One of the most trustworthy sources for learning about investment products and security protection is InvestingOnline.org. Visitors can utilize the investing simulator to learn about the different types of investment tools. This website allows visitors to purchase, sell and trade virtual stocks to become familiar with how the process works. Investing Online offers an entire section regarding how to spot investment scams, along with a multitude of security tips and recommendations.

After conducting research and determining which products are best suited for personal goals, it’s time to locate a good investment company. Some of the more popular companies include: Merrill Lynch, Charles Schwab, Fidelity Investments, Vanguard, Edward Jones, and BNY Mellon. Corporate websites often include article libraries, audio and video webinars, and interactive tools which help clients become familiar with the company and services offered. Most investment firms offer complimentary consultations to new clients to help create a profitable financial portfolio. Consultations can take place in person, by phone, or via instant message systems.

There is no one-size-fits-all approach to investing. Some people choose one product and incorporate additional products over the course of time. Some investors prefer to utilize two or more investment firms or purchase multiple products to avoid placing all their financial eggs in one basket.

The most common investment products include: treasury bonds, stocks and options, certificates of deposit (CDs), mutual funds, life insurance annuities, and tax-deferred income annuities. Investing in real estate can be a profitable choice for those familiar with the market. In addition to buying physical property, investors can also purchase real estate stock or cash flow notes such as seller carry back trust deeds.

Online investing has opened the doors for people of all ages and financial status to capitalize on a variety of investment products. Those who take time to learn the process and understand which products offer the highest return on investment can build a strong portfolio that can provide emergency funds, pay for future expenses, or create a retirement nest egg.

Learn how to harness the power of online investing from author and real estate investor, Simon Volkov. His website provides a comprehensive article library regarding the various types of investment products, along with tips and resources for earning the highest profit. Discover which investment products are best suited for your needs by visiting www.SimonVolkov.com.

Citibank is one of the leading banks in the United States of America. It offers a lot of financial investment products for the investors. Some of them are:

Savings Accounts
Certificates of Deposit
Checking Accounts

You can invest in any of these to get good returns. Citibank offers two types of investment products

Citibank Savings Plus Account
Ultimate Savings Account

Citibank Interest Rates:

The interest rates for these accounts are listed below. The interest rates vary periodically and you have to check the latest rates from the bank website or related website.

“Citibank Savings Plus Account” – Rates are as high as 0.8% APY

“Ultimate Savings Account” – 0.8% APY

Some of the features are:

You do not need a checking account.
The minimum deposit required for opening is $100.
You can apply either online or by phone.
The amount invested is insured by FDIC.
You get alerts of the transactions that you have done.
You can access this amount any where through online banking.

How to find the best rates?

You have to spend some time to find the best rates, so that you can get good returns for your money. Here is some guidance for the same.

You can collect the interest rates of the various banks and compare them with the other banks and analyze the best offer.
There are reliable websites that would give you that analysis directly. You can get the details of the best rates from those websites.

Next Step: Find the best rates from the related websites.

Click here for ——>> Citibank Savings Account. You can also find more details on other savings schemes in http://www.bestsavingsaccountrates.net/.
Balajee Kannan

Most people enter the investment arena thinking that “Risk” is a board game they played in college. Today, I would guess that the majority of investors have never owned an individual share of common stock or a Municipal Bond.

The popularity of investment products has heightened the risk for all investors and has indirectly led to many of the policy errors that threaten both capitalism and the economic fabric of America. Market prices are increasingly and inappropriately influenced by decision-making based only on the derivatives that contain them.

Few people consider the investment risk associated with public policy decisions. Product investors and derivative speculators participate in less personal markets, where it is more difficult to connect the dots between their personal financial interests and their political alignments.

So in a very real sense, investors have to deal with public policy risk every bit as much as they need to analyze the risks associated with the securities and other financial products they hold in their portfolios — complicated, but it is doable.

Apart from these important peripheral considerations, the risk of loss in any equity investment is generally greater than the risk of loss in any debt related instrument. The potential reward from each type is just the opposite, and that’s where all the excitement begins.

Do we risk more for the chance of a greater return, or do we risk less and try to preserve our investment capital? Keeping in mind that investment capital is a measure of cost, not of market value, and that the only real loss is a realized loss.

Typically, the older the investor, the more boring or income focused the portfolio should be — minimizing the overall level of risk. But it’s difficult to actively minimize or manage your risk in the “open end” mutual fund or passively managed ETF marketplaces.

Risk minimization requires the identification of what’s inside a portfolio. Risk control requires decision-making by the owner of the investment assets. Risk management requires a selection process from a universe of securities that meet a known set of qualitative standards.

Product owners assume the added “fear and greed” risk of the general population, while their fund mangers stand aside and mumble about the opportunities lost in either direction.

Without a risk sensitive menu to select from, 401(k) participants need to minimize risk by: (a) avoiding the poor diversification that may be a requirement of their plan, and (b) developing outside income portfolios with any investable income above the employer matching contribution.

The first and most important management action focused on risk minimization in any “program” is the development of an asset allocation plan. The plan separates “liquid” investment assets into two buckets (Equity and Income) based on cost, not market value. No portfolio should have less than 30% in the income bucket — no ifs, ands, or buts.

And no investment plan should be developed “tax” or “cost” first. Risk minimization comes first, and then tax minimization if possible. Finally, transaction cost minimization can be considered if you are qualified to run your program yourself.

A cost based asset allocation approach (Working Capital Model) assures growing levels of “base income” throughout the portfolio development process and, possibly, into retirement. Income growth, by the way, is the only real hedge against that other economic risk, inflation — a buying power problem that has nothing to do with the market value of the income producing assets.

Minimizing investment risk is done best through the use of disciplined sets of rules for the various operations involved in managing a portfolio. Strict rules need to be developed for security selection, three types of diversification, income production, and for profit taking.

Forget the Wall Street “I-can-fix-that” product menagerie. We’re not interested in massaging our market value to take the sting out of cyclical market value changes. Our plan is to take advantage of these changes as they unwind around us over time, and when they occur unexpectedly, causing short-term disruptions and dislocations.

In the securities markets (stocks and bonds), the real risk of loss can be minimized without products and futures speculations, without commodities and hedge funds, and without the ageda that most people experience throughout their investment lifetimes.

The old fashioned principles of investing: Quality, Diversification, and Income, plus disciplined, targeted, Profit Taking are the only hedges an investment portfolio needs to assure long-term success. Conveniently, the QDI+PT applies equally well to both classes of investment securities.

“Q” is for quality. If you study the long-term behavior of Investment Grade Value Stocks, and high quality income CEFs, you’ll discover that they hedge themselves quite effectively.

Risk is wrung out of portfolios by investing only in S & P, B+ or better rated, dividend paying, and historically profitable companies and then only when their equity prices are well below their 52-week highs.

“D” is for diversification. Absolutely never allow any position in your portfolio to exceed 5% of total portfolio working capital (i.e., the total cost basis) and never start a position anywhere near maximum exposure. You want to be able to buy more at lower prices.

Similar diversification rules apply to industry exposure and global diversification through the use of the mainly world class companies in the investment grade quality categories.

“I” is for income. Own no security that does not pay regular, dependable, dividends or interest. Regular and growing dividends are a quality indicator in equities. In the income “bucket”, seek out above average yields while avoiding those that seem either too high or two low.

Managed closed end funds do it best and provide easy “PT” and “buy more” opportunities. Buy established CEFs with long term “income” (not ROC) payment records.

“PT” is for profit taking. Absolutely always smile and take your profits willingly, net/net 7% to 10% (dependent upon available reinvestment possibilities and security class), and never, ever, look back.

Trading this same body of securities, again and again, has been shown to sustain growth of capital and income consistently in a relatively low risk environment.

Google Part III: Ten Time Tested Risk Minimization Strategies

Steve Selengut
http://www.sancoservices.com
http://www.valuestockbuylistprogram.com
Professional Portfolio Management since 1979
Author of: “The Brainwashing of the American Investor: The Book that Wall Street Does Not Want YOU to Read”, and “A Millionaire’s Secret Investment Strategy”

Citibank offers Certificate of Deposits for investing to get good returns. There are many flexible term CD that are available in Citibank. You can choose your best term for the CD from 3 months to 5 years which would suit your requirements. The interest rates vary accordingly depending on the number of months the investment is made as well as the amount that is invested in the Certificate of deposit.

Some of the features of Certificate of Deposits are listed below:

The amount will be insured by FDIC up to $ 2,50,000 per depositor.
You can access the account with the help of Citibank banking card.
The minimum amount required for opening the account is $ 500.
The interest will be paid monthly or on maturity if the deposit term is less than a year.

Citibank CD rates for 2010:

Some of the latest rates for CD in Citibank for the year 2010 are listed below. The interest rates vary periodically and you have to check the latest rates from the bank websites or related websites.

Term – 3 months – Amount – Below $ 10,000 – Interest rate: 0.25%
Term – 6 months – Amount – Below $ 10,000 – Interest rate: 0.35%
Term – 12 months – Amount – Below $ 10,000 – Interest rate: 0.7%

How to find the best rates?

As you are investing your money in the banks, you should ensure that you are getting the maximum benefit out of it. Here is some guidance for the same.

You should analyze the rates offered for other products. If it suits you, then you can choose the best product.
There are many reliable websites which offers a detailed report on the best investment products.

Next Step: Read more details from other websites to find the details on Citibank products.

Click here for —–>> Citibank CD rates. You can also find more details on various investment options in http://www.bestsavingsaccountrates.net/.
Balajee Kannan

There are many financial products available in the top banks in the United States of America. Some of the financial products are:

Savings Accounts
Checking Accounts
Certificates of Deposit
Internet account
Money Market Account

Checking account is a widely used product among the investors in the United States. You have to choose a high interest account, so that you can get good returns for the same. Here are some guidelines for the same.

How to open a high interest checking accounts Online?

As a first step, you have to find the banks that offer checking accounts nearby your location.
Once you have spotted those banks, you have to find the interest rates offered by those banks for the same and then list the same in a sheet along with the other terms and conditions.
Then you have to spend some time analyzing the best bank that would offer you good interest rate along with the other benefits.
Once you have spotted the same bank, then you have to go to the particular bank website and search for online application form.
Then you have to fill the online application form and submit the required data as asked by the bank.
The bank will process your application and will ask for any clarifications if required. You can also visit the bank if you have any clarifications from the bank.
You have to deposit a minimum account in the account at the time of opening.
Once the account is opened, you will receive an opening kit for your account.

Next Step: Read more guidelines to get good returns. Click here for Internet Checking Account. You can also find more details on various investment products in http://www.bestsavingsaccountrates.net/.

Balajee Kannan

Certificate of Deposit is one of the ways to invest your savings to get more returns. A lot of banks are available in the United States which is offering these investment products. If you are a smart investor, then you should get the highest rates for your investments. So you should do some ground work and get the best returns. You can find some guidelines for getting the best returns.

Bank CD Rates Comparison:

There are many ways to do the bank CD rates comparison. Here are some guidelines for the same.

You should visit various bank websites and note the interest rates for the various monthly schemes i.e. 3 months, 6 months, 1 year, 2 years etc.
According to your investment duration, you should find the various rates and then tabulate them in a sheet.
Also list out the other terms, pre closure charges and other terms for the corresponding banks.
Once you get all these important details, then you can analyze the best rates that would give you more benefits.
There are also some trusted websites that would give you these details directly. You can get the CD rates from them directly.

Benefits of Bank CD Rates Comparison:

There are many benefits if you compare the rates offered by various banks before investing.

You can get the highest interest rates for your savings which would be an additional passive income apart from your regular income.
You can avoid any issues in future, if you compare the bank rates and other terms listed by the banks. By this way, you can avoid any pre-closure charges or any other penality.

Next Step: Read more guidelines for CD rates comparison.

Click here for ——–>> Bank CD rates. You can also get the latest interest rates in http://www.bestsavingsaccountrates.net/.
Balajee Kannan

You might have come across this dilemma, which investment product to choose – ULIP or Fixed Deposits? First let’s understand what these two products -

ULIPs vs Fixed Deposits – Which is better for you?

Before you zero on any of these products, answer the following questions?

a) What kind of investor are you?

a) Risk taking
b) Conservative

If you are a conservative investor, FDs is better than ULIPs. If you are a risk taking investor, you can consider ULIPs.

b) What is the tenure for your investment

a) Less than 3 years
b) More than 3 years

If your investment tenure is less than 3 years, FDs is better than ULIPs. If you are a long term investor, ULIPs are better.

c) What is the Rate of return you are expecting?

If you are expecting a fixed rate of return (rate provided by the FD Provider), Fixed Deposits is better than ULIPs

d) What are the tax benefits on the returns?

Return on FDs is taxable whereas withdrawal of ULIP investment is tax free.

Note – These questions are based considering the two investment products – ULIP and FD. The assumption is that the investor has to choose among these two products.

Another angle to understand the difference is – If you are a risk taking investor, with an investment tenure of more than 3 years and expecting excellent returns ( returns more than fixed deposits), then you can invest in ULIPs.

Advantage of ULIP is insurance. Every insurance comes with an insurance cover. A major drawback of an ULIP is the expenses/charges are much more as against FD.

What are ULIPs? Refer to the article – http://www.investmentbazar.com/ulips-vs-mutual-fund/

Ishita Sharma has rich experience in the field of investments. She writes articles on investments and also reviews investment related articles. For more information on various investments visit – http://www.investmentbazar.com.

Ask those who are rich, and they will probably say they got rich from real estate or stocks. These are only two ways. There are actually various ways to get rich by investing. You can purchase bonds, mutual funds, and many other investment tools.

People who invest in real estate will normally buy property and flip it for a profit. If they do not sell it, they may place someone in the building and collect rent. There are many ways real estate investors can make money investing.

Then there are people who buy and sell stocks. They will buy the hottest selling stocks and hold on to them until they peak. Then when the stock prices start to drop, they will sell off. If this investor buys many stocks from various companies, he can develop a huge portfolio.

Other ways to invest include mutual funds, bonds, savings account, and CD’s. Each type of investment vehicle has a procedure to follow if you are going to be successful getting involved with it. The first thing you need to do is understand the tool or vehicle and learn how it works. This way you will understand how to invest it each one. By doing so, you will get a lot out of it. The key to investing is to know how to invest without losing your shirt. Otherwise, you could end up going in the wrong direction and lose everything.

Investing can be confusing to anyone who does not understand it and how it works. This is why you need to pay attention to the investment. Only then will you be able to invest properly. Just don’t be afraid about investing and many people are who do not understand investing and what it is.

By educating yourself, you will remove that fear and be able to take part in investing to some degree.

FAIL to plan, then you plan to FAIL!
Smart Investing Made Easy,
http://www.smartinvesting.ws/

If you sincerely want to learn about the stock market-how it operates, how you join and how you profit-and other sort of investments, then you might want to set up your own private investment club (PIC). This “club” is often made up of a small band of people who joined together to delve into investment plans and make small profits with their investments together.

Club Organization. PICs are often made of not more than 15 people who seriously want to learn about investments together. To keep the club alive, members have to pay regular obligations either monthly or quarterly. As there are not a lot of members, each member is expected to contribute or participate in every activity of the club.

Investments. Whatever investments your private investment group decides to take in, it should be decided by the whole group. Do not expect financial yield in the first few years of the investment. Just like any investment tools, each member should be prepared to invest long term. It may not help your club if there will be members who seek immediate financial return on their investment or simply wants to cash out of the investment club the soonest time possible. With PICs, patience is always a virtue.

Goals. Most private investment clubs only have two goals: to lean the dynamics of investing, and how to eventually profit from these investments.

Learning the dynamics of investing can be learned through the process of fulfilling tasks that is assigned to each member like researching or tracking the movement of specific stocks that your PIC has tried to invest in, or might be considering as an investment. All information should be shared with the rest of the group during meetings, including all the process involved on how the information was acquired. It is only through this that all the members of the group will benefit from the effort of each member and, in turn, everyone will learn altogether without having one being overtaken by the other.

On the other hand, the second objective is achieved through time. Your private investment group should have improved their investment skills and should be able to choose stocks that have great financial yield. Again, it is not wise to expect immediate financial gain unless your group is savvy and lucky enough to discover the next Yahoo.

So if you want to delve into the world of investments yet is quite unsure of how to, then a private investment club would be your best options. To learn more about investment clubs, please be sure to visit http://www.investmentclubhelp.com.