Investment Articles

You probably don’t believe me. You probably think that successful investors have impressive IQs and “whizz kid” math brains. Some do. But, believe me, most don’t.

The common thread among most successful investors is far more mundane than that. What they have is discipline and an ability to conquer their emotions. Or as Warren Buffett puts it, “To invest successfully does not require a stratospheric IQ, unusual business insights, or inside information. What’s needed is a sound intellectual framework for making decisions and the ability to keep emotions from corroding the framework.”

If you’re still skeptical, think for a moment about poor Sir Isaac Newton, one of the most intelligent and influential men in history. Newton may have built the first refracting telescope, laid the groundwork for classical mechanics, and developed differential and integral calculus…but he didn’t have much luck when it came to investing.

In 1720, Newton owned shares in the world’s hottest stock, the South Sea Company. Claiming that he “could calculate the motions of the heavenly bodies, but not the madness of people,” he sold his South Sea Company shares for a 100% profit of £7,000 (about $1 million in today’s money).
So far, so genius…

But Newton, despite all his intellectual prowess, lacked the ability to keep his emotions in check. Just seven months later, swept up in the speculative mania surrounding the South Sea Company, he bought back into the stock…and lost £20,000 (or about $3 million in today’s money).

What Newton didn’t “get” (oddly enough for the world’s most renowned physicist) was the pendulum-like nature of the markets. That excesses in one direction in asset prices inevitably lead to excesses in the other direction in asset prices. Newton’s tale is a constant reminder to me in my work helping families and individuals preserve and grow their wealth.

As Buffett’s mentor, Benjamin Graham, put it, the one risk you can never eliminate is the risk of being wrong. But you can minimize this risk by subjecting your investments to a disciplined framework, such as the one we have developed for Bonner & Partners Family Office. This includes a well-diversified portfolio, a proven market-timing system, and quarterly reviews only of the core portfolio.

This may not sound sexy. But if Newton had used such a framework, while he may have missed out on his £7,000 profit on his South Sea Company stocks, he would certainly have avoided his crushing £20,000 loss.
According to a history of the South Sea Bubble, for the rest of his life Newton forbade anyone to speak the words “South Sea” in his presence.

Maintaining wealth for generations doesn’t happen by accident. In fact, the serious money knows that keeping money is even harder than making it in the first place. It demands above average returns from safe investments… significantly reduced tax liabilities… family coherence… and carefully thought out ways to pass on wealth to children and grandchildren. It’s in the spirit of these family offices that we bring you the first comprehensive look at what it takes to push your wealth to the next level and maintain it, not just for your lifetime, but for generations to come. Simply put, the Bonner & Partners Family Office is a wealth preservation forum for people who are serious about their money. We will soon invite a few non-family members to join us.

http://www1.internationalliving.com/opt/bfo

When investing your hard earned cash, it is important that you stick to some basic investment rules. The following are five tips that you should stick to in order to ensure your investment goes according to plan.

1. Stick to your investment plan

It is important that you know what you want to achieve and what is involved with your investment. Once you make a decision and start to invest your money, it is often costly to change your mind. Depending on the type of investment you make the investment durations may differ, during that time there may be some short term market fluctuations so make sure you are comfortable with this prospect. stick to your guns and make calculated decisions.

2. Master and understand your emotions

An emotional investor can easily make the wrong investment choice as they base it on their emotions rather than facts. Many novice investors get nervous as soon as their investment goes south, and on most occasions emotions take over and they get out of the investment at any cost. An experience like this can cause an emotional investor to fear the market place and they may stop investing all together.

Your investment strategy should reflect your attitude towards investment risk – although investing is more about hedging your risk – it is a good idea to understand your tolerance to market volatility by performing a risk profile assessment.

3. Never try to time the market

If you could always pick the best time to invest in and get out of the marketplace, investing would be too simple. However, it is virtually impossible to time the market as it is live and always changing. Instead of trying to time the market, it is better to make a strategic decision and spend time in the market, this is what will make a profit.

4. Do not invest what you cannot afford

One basic rule that you must always follow is to never invest money that you cannot afford to lose. This is a form of gambling, remember you are an investor.

5. Obtain advice from a qualified source

If you are really serious about investing you should seek advice for building and managing your wealth from a qualified source. If you do not have a team of professionals working with you, the first thing you should do is seek a financial adviser, making sure that they have experience and a sound investment background. A financial adviser should help you with the following:

Set your financial goals
Devise strategies to reach your goals
Choose investments that suit your needs
Make informed financial decisions

These fundamental rules may seem very basic, and they are, however it is surprising to know that many novice and unsuccessful investors do not follow these rules.

Thank you for taking the time to read this article and I hope it is of value to you.

My name is Haidee Bloye. I am passionate about helping others achieve their financial dreams by creating wealth using various strategies, including stock market trading, property investing and online businesses strategies. For more information how you can not only create but accelerate your wealth creation, please visit my blog at http://www.secretstowealthcreation.com.

The best investment strategy focuses on strategy and asset allocation, not on picking the best investment year after year. Few people really have any investment strategy at all, and they lose money in years like 2008 and 2009. If you want to make money in your investment portfolio in the future, and sleep at night, read this. I’ll keep it simple.

The best investment strategy is not about pulling your hair out to find the best investment or even the proper asset allocation or investment mix each year. That’s a formula for frustration. Instead, the MOST IMPORTANT thing you can do in the future, your best investment strategy, is much easier and requires no crystal ball. It starts with simple asset allocation; and then comes the important part. First I’ll tell you why most people have lost money in recent times, and then I’ll tell you what you can do to make money in the investment game without sweating the details.

Most people invest much like they play any other game they don’t really feel up to speed on. If they go into the game with a plan of action, they fall apart as soon as the unexpected happens. Then, they REACT as their emotions take over. That’s what investors as a group have done in recent times. They’ve sold stocks and stock funds out of fear because the stock market went south; and put this money into bond funds for greater safety. The end result was predictable using hindsight, because this has happened before.

Once again the average investor sold stocks when they got cheap, and will likely start buying them again when they feel that they are missing the boat. At that point in time stock prices will likely be high and ready for another tumble, if history again repeats itself. Now, let’s focus on the best investment strategy for getting and staying on track in the future. Asset allocation refers to how you invest your money across the asset classes… stocks vs. bonds vs. truly safe and liquid investments. Even if you just invest in a 401k plan or in other mutual funds, the following investment strategy is available to you. To keep things real simple, assume you’re looking at your investment options in your 401k or fund company you invest with. The options will be similar.

What percent of your total investment portfolio are you willing to put at risk to earn more vs. what percent do you want safer vs. how much do you want really safe? Let’s say you’re willing to put half at risk, but want the other half as safe as possible. Your asset allocation: 50% to stocks funds and 50% to a money market fund or stable account if you have one available. That’s how you allocate the money you already have invested, and that’s the way you allocate any new money you invest periodically.

Once you have repositioned your money to 50% stocks and 50% safe, the really important part of your ongoing investment strategy comes into play; and here is where investors drop the ball. At least once a year, or when the stock market action is extreme, check your asset allocation percentages. REBALANCE if you are not still close to 50-50. If you had done this in the recent past, you would have made money in your investment portfolio. You would have made money in the past decade as well. Here’s how the rebalance part of our best investment strategy would have worked with the 50-50 example in 2008-2009.

If you went into 2008 at 50% stocks and 50% safe, by early 2009 your safe investment would have been worth more than 50% of the total vs. your stock funds since stocks took big losses in that time period. To rebalance you would have moved money from the safe side to your stock funds to make both sides equal again. In other words, you would have bought stocks cheap. Then a year later in early 2010 your stock funds would have accounted for well over 50% of your total, since stocks soared the last 9 months of 2009.

So, with things again out of balance you rebalance again in early 2010, which means you move money from stock funds to the safe side and lock in some profits. As a long term plan this is your best investment strategy because it has you buying stocks or stock funds when prices are lower, and taking profits when stock prices have risen. Emotion and guess work are taken out of the picture. Focus on balance and rebalance. Some 401k plans and other retirement programs offer this service and will automatically do it for you per your instructions at no cost.

To keep things real simple, just rebalance once a year, like in January. This way you won’t forget and let things get off track.

A retired financial planner, James Leitz has an MBA (finance) and 35 years of investing experience. For 20 years he advised individual investors, working directly with them helping them to reach their financial goals.

Jim is the author of a complete investor guide, Invest Informed, designed for average investors or would-be investors of all levels of financial background and experience. To learn more about investments and investing and his new financial guide go to http://www.investinformed.com.

Knowing how to invest money in 2010 and beyond is crucial, because if you invest money too casually or invest too aggressively you’re asking for trouble if we revisit the credit crisis. Knowing how to invest in good times is one thing; and how to invest money in 2010 and beyond is quite another. Here we cover safe investments, bonds & bond funds, and stocks & stock funds with emphasis on funds.

Sovereign debt has become an issue. Some countries in Europe are awash with debt, and they are not alone. The U.S. has $12 trillion in debt, $40,000 for each person in the USA. Like the emperor’s new suit… the truth is now obvious. With interest rates at historical lows and inflation benign, how does anyone in financial trouble, including a country, borrow money to stay afloat? By paying higher interest rates to offset the risk of default. So, here’s how to invest money in 2010 and beyond while protecting yourself.

First, how to invest in safe investments. Keep a modest amount of money liquid for emergencies in a money market fund or savings account at the bank. Then, with the bulk of the money you have earmarked for highest safety, shop for CD rates. Here’s how to invest in CDs to earn better rates without tying money up for several years at a fixed rate. No one wants to pay penalties for early withdrawal, or to sit on a fixed rate as interest rates go up.

Build a CD ladder. For example, let’s say 1-yr, 2-yr, and 3-yr maturities pay 1%, 2%, and 3% respectively. Invest money in equal amounts in each initially… then rolling over the proceeds from maturity each year into a new 3-yr CD. Each year you will have a CD maturing, you’ll be taking advantage of the 3-yr higher rate each year, and as rates fluctuate you will be going with the flow. Now the question is how to invest money in 2010 and beyond to earn even higher interest income in bond funds, without high risk.

Bonds and bond funds have paid higher interest, and have been relatively safe long-term investments since interest rates peaked in the early 1980’s. You could earn a fixed 15% interest rate in high quality bonds issued back then, compared to as little as 5% in 2009. As rates fell over the years, bonds in general gained in value as well. The opposite will happen when rates go up. The price or value of a 5% bond will fall when investors can get more from new bond issues.

Bond funds were very popular in 2009 as investors chased higher interest income. Don’t chase yields and avoid long-term bond funds, because they will get hit the hardest when rates go up. Remember, bond interest rates are FIXED and you don’t want to own a fund holding long-term maturities of 10, 15 years or more. Shorter term maturities of 5 years or so are much safer because they mature in a few years and pay the bondholders (like a bond fund you may have money in) back their principal. So, invest money in short-term and some in intermediate-term bond funds vs. longer term funds. Then, consider the following.

Interest rates and inflation often move in lockstep. Higher inflation makes future interest payments to bond investors less valuable and causes bond values to fall as well. An INFLATION-PROTECTED SECURITIES FUND holds government debt securities (like bonds) that adjust their principal and interest payments over time to changes in the inflation rate. Give these funds serious consideration.

The first two investment categories were easy compared to: how to invest money in 2010 and beyond in stocks. For most investors equity (stock) funds, like bond funds, are the best investment because they offer diversification and professional money management. The question here is which equity funds to invest money in. Don’t invest only in diversified domestic equity funds like many investors do (these invest in the U.S. stock market). Go international and get into specialty funds as well to cover all the bases.

First, definitely invest money in a diversified international fund if you don’t already own one. Then invest modest amounts in the following fund types or specialty fund sectors: emerging markets, gold, energy, real estate, and basic materials. The major no-load fund companies are a good place to invest for variety and low-cost investing: Vanguard, Fidelity, and T Rowe Price. To cut costs even more buy index funds in any category you can find them.

If good times roll the above suggestions should at least put you in a well balanced position. If times threaten to get worse, you should be sheltered from the heavy losses many investors will take.

A retired financial planner, James Leitz has an MBA (finance) and 35 years of investing experience. For 20 years he advised individual investors, working directly with them helping them to reach their financial goals.

Jim is the author of a complete investor guide, Invest Informed, designed for average investors or would-be investors of all levels of financial background and experience. To learn more about investments and investing and his new financial guide go to http://www.investinformed.com.

The savings bonds issued by the federal government are probably the safest investments ever. After all, you will earn interest and recoup your principal investment no matter the state of the economy. Any US citizen with a social security number and Puerto Rican residents can invest in these bonds.

Definition

But first, a definition is in order. As previously said, savings bonds are debt securities issued by the US Department of the Treasury with the purpose of funding the federal government’s borrowing needs. Savings bonds come in several types:

* Series EE bonds will increase in value as long as the interest accrues on them for 30 years. When these securities become due and demandable, you will be paid the accrued interest plus the original investment.

* Series HH bonds are bought at their face value ranging from $500 to $10,000 in denominations with no limit on the amount of purchase. However, these securities do not increase in value and are limited to just 20 years.

* Series I bonds are also purchased at face value. It can increase in value depending on the inflation rate for the next 30 years. The limit on purchase is set at $5,000 per calendar year.

Benefits

Of course, the primary benefit of savings bonds is that these securities are truly secure in every sense of the word, finance-wise. Your original investment along with interest accrued will be paid, recession or no recession.

Another benefit is that the interest accrued on these bonds need not be reported to the Internal Revenue Service for taxation purposes until such time that these are cashed by the holder. However, take note that when you use the savings bonds for your education as well as the education of your spouse and child, you have to report it to the federal government.

Overall, savings bonds are great investments especially when you want to diversify your portfolio.

Calculate Worth

At some point, you will want to know the value of your savings bond especially when you want to cash it in. You have two choices in the matter – the manual way and the automated method.

If you choose to go the route of the manual method – because you are a math pro in that way – you start by jotting down the face value of the these bonds and the interest rate affixed to them. Then, you will determine the specific period of time when you want to redeem the bonds.

Now, multiply the interest rate with the face value with the time for encashment as the only consideration to arrive at the accrued interest. Add the accrued interest to the face value of the bonds and deduct the penalties and voila! You have the value of your stocks.

If you choose the automated method – because you are lazy but very precise that way – you can always access any of the numerous of the online savings bond calculators. Better yet, log on to the Savings Bonds Calculator of the Treasury Department to secure the accurate amount you will be receiving. No hassles, no pen and paper, and no mistakes.

To learn the 1 secret to profiting greatly from US savings bonds click here.

For free tips on stress-free retirement visit http://www.bond-trading.org/

Gold is a metal that has only faced constant increase over the span of the past few years, and it is becoming a credibly safe investment for every nation even if it is compared with the business markets. It is growing at a consistent speed and has the prospect of continuing to do so in the same manner in future.

There came a phase in history when the worth of gold faced a complete collapse. It almost faded out, but now it is again surfacing with a lot of significance attached to its value.

There was a time when people used to buy currencies; like pounds and U.S. dollars as a safe investment for future relief, but nowadays gold has replaced them. People all around the world, even investors, have started showing their interest in purchasing gold as a risk free investment.

The purity of gold and its weight should never face any impurity or any reduction. Therefore, potential gold bullions retain their security of being stable because the rise of gold has never really had a collapse, and keeping in mind the ongoing scenarios of the economy of various countries, the worth of gold is likely to face further inflation. Hence, it is likely to benefit more in the long-run.

Out of the probable four categories; stocks, futures, bullion and exchange trading markets, it is the bullion that will preserve its assessment. Stocks can collapse, futures can alter and exchange traded funds can also face instability, therefore, loss can take place in any sort of investment except for gold.

Gold ingots have a record of being consistently secure, may it be gold bars or gold coins, as both have the strength and weight of being actual gold rather than a mere and probably vague demonstration of it. Both have a reputation of maintaining their value even for people who have no link with the business markets. For them, purchases of bullions are highly secure and retain their significant value even during economic decline or a financial slump. Moreover, gold coins and gold bars can be easily exchanged and collected making them the perfect means to invest money in.

Aristocratic families from Europe and Asia along with the people who boast a traditional wealthy background have preserved a strong percentage of assets and possessions in the form of gold. For them, buying gold in huge percentages is a secure factor. The same sort of appeal has started gaining more interest among common people and business related personnel. If you want to shield yourself from deflation, stock market limitations, exchange problems and evade financial uncertainties, there is only one investment that shall shelter you – gold bars and bullions.

Thus, the above mentioned indicators provide ample evidence as to why investors are increasingly showing interest in the purchases of gold, the pursuit is bound to gain on a rapid pace.

Learn how to buy gold in the times of recession for investment from experience of professionals.

Learn how to invest money and prosper; or don’t learn how to invest and continue to invest and lose money. It’s fun to invest money when you are winning. Get a financial education and see for yourself. You will NEVER feel left out once you know how to invest with a sound investment strategy. Let’s start that financial education now.

INVESTMENT BASICS

You can not put together a complete investment strategy without an understanding of the investments that are included in the package. Nor can you build your own house without knowledge of the pieces, parts, and tools required. Concentrate on investment basics before you decide on what plan to go with, or you may not be able to finish the job successfully. This means that you need to understand the investment characteristics of stocks and bonds, and how they compare to each other and to other investment alternatives.

Only then can you learn how to invest and put together a complete investment strategy. Like I said, it’s fun to invest when you’re making money; but you’ve got to start with the investment basics. Most people don’t know stocks from bonds. Start by reading articles or other publications that get down to the basics. For example: what are stocks, what are their risks and potential rewards, and how do they compare to bonds and other investment alternatives.

Now you are ready to learn about mutual funds, which are the investment of choice for most average investors. For most people they are the easiest and best way to invest in stocks and bonds, plus other asset classes. Mutual funds are simply investment packages that are professionally managed for you. To pick the right funds you’ll need to understand the asset class they invest in: stocks, bonds, money market or specialty (other).

HOW TO INVEST

Now you’re ready to learn how to invest and put the pieces together with a sound investment strategy. ASSET ALLOCATION is a crucial part of your investing and financial education, because how you allocate your money to the various asset classes will determine your success or failure… more than anything else. Simply put, how much should you invest in stocks vs. bonds vs. other investments? This is also called your asset mix. It’s much more important than what specific investments or funds you pick.

Once you’ve put a balanced portfolio of investments together you’ve got a great foundation. But if you want to continue to build and prosper you’ll need an ongoing investment strategy to make additions and changes over time as necessary. Read articles on investment strategy, asset allocation, and how to invest. It will all come together for you if you start at the beginning and build a step at a time.

Learn to invest like your financial future depends on it. With Uncle Sam in debt up to his eyeballs and employers fighting to survive, it does.

A retired financial planner, James Leitz has an MBA (finance) and 35 years of investing experience. For 20 years he advised individual investors, working directly with them helping them to reach their financial goals.

Jim is the author of a complete investor guide, Invest Informed, designed for average investors or would-be investors of all levels of financial background and experience. To learn more about investments and investing and his new financial guide go to http://www.investinformed.com.

It is tough to explain safe investments because no type of investment can be considered safe as well as lucrative. You will have to skip a feature – investments that provide good returns will include high risk factors and vice versa. In the following sections, I will be explaining certain investment procedures that are considered to be safe. I can already sense the excitement present in the minds of many millions as they read these lines. Block all sorts of negativity and approach the paradigm with a positive outlook. In addition, ensure that you have a smile when you see the positive returns piling up in your bank account.

One of the best and safest investments that is accessible to mankind is the savings bank account. It is very easy to start a savings bank account these days. You will have to visit the nearest financial institution and fill up certain forms. You will be asked to make certain payments and that is all. Now all you have to do is to wait until the maturity period when the interest rate will be added into the existing amount. The interest rate is known to vary – all the banks are decreasing the savings bank account interest rates because it is turning out to be less feasible to them. Yet, you get guaranteed returns.

Allow me to introduce other types of safe investment procedure – it is commonly touted as CD or certificate of deposits. In fact, there is not much difference between a bank savings account and a CD. The only advantage is the high returns that will be bestowed to you when the maturity period arrives. It is wiser not to withdraw the interest amounts. Allow it to add to the existing amount, and let the profits accumulate over a stretch of time.

Would you consider investing if the government is coming forth with an investment plan? Well, consider this as your lucky day then because if you are a citizen of the United States, then you can surely opt for securities that are brought out by the government. The niche might be a bit complicated for a commoner, but the profits associated with it are simply awesome. You will have to choose from the bills, notes, and even bonds issued by the official treasury. In some social circles, the same procedure is often stated as bonds.

Mutual funds come next in the queue of feasible investments. There are agencies that specialize in this niche. You will have to pass some of your savings to the agencies, who will in turn invest the same on various moneymaking ventures. The profits will be deposited into your account. A certain percentage will be taken by the agency that acts as the intermediary. Assured returns are tough to materialize with mutual funds. Yet, one will be able to assimilate higher returns if the economic conditions prove to be highly favorable to investors. This is one of the preferred investment methods that is opted by many millions all over the country.

The niche is still incomplete. There are plenty of other investment opportunities like fixed annuities. You are free to decide the options, and you will have to make sensible decisions that will prove to be highly beneficial to you at a later date.

Brittany Stanzas is a professional finance writer who works for http://www.zuuply.com
if you want more information on Investments feel free to check it out.

Certificate of Deposit is one of the best manners that are often resorted by many in the country – it is often considered as a safe investment. Plenty of choices and options are already in existence on the niche of investments. However, the risks associated with CDs, in comparison to the other types of investment procedures is marginal. This is the primary reason that attracts a vast majority of the population. We always select the best investment plans out there, because we wish to make good use of our hard earned money.

Allow me to emphasize on the returns that can be achieved with CDs. It has become quite customary for financial experts to compare CDs with a savings account. According to them, CDs and the saving account function similarly. However, the profit that is bestowed to you is always greater if you pick out a certificate of deposit plan. In fact, the same investment procedure is advertised with much pomp and show in the social circles by various investment agencies. Have you ever wondered, why many financial organizations publicize such investment schemes? If you look closer, you will realize that you are in turn providing them with a great favor – this will be explained in the following paragraph.

The institution often utilizes the sum that is deposited as CD for various other purposes. Think about the bigger picture. Hundreds will opt for the same investment plan. CD is often associated with a maturation time-period. In simpler terms, the longer the cash remains with them, the better it works out for the financial organization. What do they do with your money? They will invest on other ventures and a part of the profits will be handed over to you. This is how the entire system is noted to function.

Starting a CD account with the nearest financial organization is simple. You will have to complete the preliminaries, which include filling up certain forms. The interest rates are often fixed, and you will be given two options to do away with the interest amount. If you would like to spend the amount on consumables, you can request for the same. Or else (this is what the intelligent is noted to do) you can ask the same organization to deposit the same interest amount to the existing CD deposit. In effect, you are simply multiplying your returns for the greater good.

Now that you might have understood how CDs perform, there remains another vexing query. Which is the best CD plan to be chosen? I will quote the words of financial experts – always stick to those plans that have a high maturation period. As with all the other types of investment plans, high volatility is subjected to the certificate of deposits. In simpler terms, you will be given the option to fix the interest rates. The exact opposite is also prevalent; but it is considered too risky for a nonprofessional who has limited funding sources.

The internet is the best place to initiate your search for the best CD plans. Quite often, quotes will be provided to interested customers. You will have to compare the quotes and come to a favorable decision. Although the niche is slated to be “risk free”, the existing economic conditions play a pivotal role in deciding the feasibility of the CD.

Brittany Stanzas is a professional finance writer who works for http://www.zuuply.com if you want more information on CDs feel free to check it out.

The best investment guide would cover investment options and investment strategy. This investment guide would be complete and start with basic financial concepts and expand to include the entire universe of investments. That’s a tall order, so let’s just start with a simple version, and talk about all of the investments in the world in plain English.

Your best investment is a good, complete investment guide. I’ve been tuned in to the world of investing for 35 years and have read over 100 books on investments and investing. Most of them center on the stock market or some form of investment technique or get-rich-quick scheme. Many are time sensitive and out of date by the time you read them. Many tell you how to invest money like the author did when he made his millions.

What you seldom get with an investment guide or book is an understanding of investment basics and a simplified blueprint of your many investment options. So, here’s your simplest and free best investment guide to all of the investments in the world. There are only 4 different investments or asset classes out there depending on how you categorize things. Once you bring it down to this level you have a basic framework to work with.

CASH EQUIVALENTS and other safe investments pay interest. Either your principal or rate of interest is fixed for a period of time. Examples include U.S. Treasury bills, money market mutual funds and bank savings accounts. Advantages include high liquidity (access to your money) and safety, low risk.

BONDS are long-term debt instruments and they pay more interest income than the above. Examples include U.S. Treasury bonds, corporate bonds and bond funds of various types. Advantages include relatively high interest income with a moderate level of risk.

EQUITIES or STOCKS represent ownership in a corporation. Examples include blue chip stocks, growth stocks and equity funds. Advantages include ample liquidity, growth and some income in the form of dividends. Risk is significant and profit potential is high.

ALTERNATIVE INVESTMENTS is our final category. Examples include real estate, gold, and foreign investments. Advantages include high profit potential and an alternative to stocks when they are out of favor. Risk can be significant here as well.

That’s about as simple as an investment guide can get. All investment options can be fit into one of these asset classes. The important thing is that you have a perspective, and that you understand the investment characteristics of any investment before you invest money. For example, someone pitches an investment to you. Where does it fit in our above format?

How does it rate in terms of: safety, liquidity, growth and profit potential, income provided and risk? All investment options can be and should be rated in terms of the above to assure that they fit your needs and risk profile.

If you learn how to invest you’ll have a means of supporting yourself for the rest of your life. Once you have a sound understanding of investment basics you’ve built a great foundation for learning how to invest. The best investment guide would cover both.

A retired financial planner, James Leitz has an MBA (finance) and 35 years of investing experience. For 20 years he advised individual investors, working directly with them helping them to reach their financial goals.

Jim is the author of a complete investor guide, Invest Informed, designed for average investors or would-be investors of all levels of financial background and experience. To learn more about investments and investing and his new financial guide go to http://www.investinformed.com.