Investment Articles

The best investment opportunity for 2012 and 2013 could be stocks, but any bond investment is suspect at best. With even the best safe investments paying zip it’s important to look for investment opportunity elsewhere. How about an investment in real estate that requires no time, effort or management on the investor’s part?

Real estate is the best investment opportunity for 2012, 2013 and going forward because it’s selling cheap. Interest rates are at historical lows, which is also great for investors buying properties. Record low rates are very BAD for bond investors, because bonds pay a fixed interest rate. In fact, when rates do go up – bond and bond fund investors WILL lose money as bond prices (values) fall. That’s the way bonds work.

As an investment opportunity stocks and stock funds are the wild card. Stocks could go up in value as bonds fall: that’s the way it has worked for many years now. But stocks are not cheap… having doubled in value between early 2009 and early 2012. Gold is not cheap either, having been on an up trend for more than 10 years. This leaves real estate as the best major investment opportunity available to the average investor.

Opportunity in real estate is everywhere in the USA for 2012 and 2013. The problem with investment here for the average person: management and a lack of liquidity. Someone has to deal with the day to day operations; and you can’t buy, rent and sell a property investment quickly and easily without significant costs. Or, can you?

The best investment opportunity is staring you right in the face if you know where to look, and it’s designed to solve these problems for the average investor: real estate stock mutual funds. These are the best investment opportunity for the average person who wants a piece of the action in his or her portfolio. No active management is required on the investor’s part, and you can buy today and sell a day later if you want to.

Professional portfolio managers make the investment decisions for you.

If you know which mutual fund companies to invest with your real estate mutual fund investment can also be a BEST BUY. No charge to buy or sell, with less than 1% a year going to pay for management expenses. That’s why I call these funds your best real estate investment opportunity for 2012 and 2013 and beyond. These funds hold equity (stocks) in companies that invest in the likes of office buildings, other rental properties, shopping malls, and home builders.

When you consider your choices, real estate stands out as the best investment opportunity going forward. Your best way to invest is in no-load mutual funds that specialize by holding investment trusts that own commercial properties diversified across the USA. To find your best deal search for “no-load real estate mutual funds” on the internet.

Author James Leitz has 40 years of investing experience and would like to help you learn how to invest. Get up to speed on how to invest at http://www.investinformed.com.

In recent years there has been an increase in the number of investments being made in dairy farms within New Zealand. Could this be a by-product of some form of fashionable trend among local investors? Hardly; these types of investments have become such an attractive option through a combination of potential growth, sustainability, and the wealth of experienced equity managers within the industry. When combined, these factors create a compelling case for investing in the dairy industry.

Perceived Potential – Breaking the Glass Ceiling

Many dairy farms are being run well below their optimal level of efficiency. That is not to say they are not profitable or productive, just that there is often an enormous potential for growth. Tapping into this potential through capital development is what drives investments in dairy farms. By streamlining performance through a combination of tightening up existing practices and expanding upon output, investors have the opportunity to see greater returns.

Unlocking this potential could be a matter of investing in new equipment, increasing livestock numbers, refining the supply chain process, or a combination of all of the above. What exactly it is that this particular dairy farm needs will vary on a case by case basis, with the constant factor being the room for improvement. Of course there will be some that are operating at close to their maximum capacity, but with so many that could use that extra push the opportunities for prudent investment are plentiful.

Sustainability – Feeding the Need

Another central reason why this sort of investment has proven so popular is the inherent sustainability of the industry. At its core, every industry operates on the simple premise of supply and demand; where demand facilitates supply, opportunities for investment will arise. Dairy farming has been around for centuries, and unless human beings start making dramatically different choices in their diet it will continue to be a necessary part of our existence.

Looking at things from the investor’s point of view, knowing you are putting capital into an industry that will not suddenly lose its relevance is half the battle. In this sense, dairy farms make for safe investments; since overall demand is unlikely to fall away, success is entirely in how you choose to operate your farm.

Experience Counts for Everything

Since dairy farming is such a developed industry within New Zealand, there is no shortage of experienced equity managers who can help get the most out of your investment. With an intimate knowledge of how the industry operates, these managers will be better able to determine what areas of practice are most in need of investment. Having this sort of helping hand can be invaluable in ensuring you milk greater returns from the process.

Find out more about dairy farm investments at Waibury Agricultural Investments.

Here we list some of the best investment ideas and tackle the challenge of finding the best safe investments for 2012. What might appear to be one of the best investment ideas to the uninformed could turn out to be one of the worst.

Looking at the big picture for investment ideas in 2012, moderation in asset allocation and a balanced investment portfolio will be the most basic key to success. There are 4 asset classes, and average investors need to spread their money across at least the first three to keep their overall portfolio risk moderate. The 4 categories in asset allocation are: safe investments, bonds, stocks and alternative investments like gold and real estate (optional). Asset allocation can be simplified, because there are mutual funds available to average investors that represent each of the 4 asset classes. Now let’s get more specific about the best investment ideas for 2012 starting with safe investments.

Safe investments earn interest and do not fluctuate in price. You will need to look outside of mutual funds in 2012 to find the best safe investments because record low interest rates have taken yields on money market securities (and hence money market funds) down to just about zero. One of the best investment ideas if you have an account with a discount broker or major mutual fund company is to shop for one-year CDs paying higher rates if you can’t get competitive rates from your local bank. Do not tie your money up for longer periods just to earn a little more interest. One of these days interest rates will go back up and you will be locked in at a lower rate and face penalty charges if you cash in early.

Finding the best safe investments will be truly challenging in 2012, but here are some more investment ideas. If you are in a retirement plan like a 401k that has a fixed or stable account option do not overlook it. You can often get a much higher interest rate there (maybe 4% to 5%) than anywhere else outside of your retirement plan. If you own an older retirement annuity or universal life insurance policy, it might have a fixed account you can add money to that is guaranteed to never pay less than 3% or 4%. Remember, truly safe investments like U.S. Treasury bills and bank money market and savings accounts are paying WAY LESS than 1%!

Over the past 30 years bonds and bond funds have become a favorite with investors because they have been consistent performers and returned on average about 10% per year… basically about equal to what stocks have returned, but with considerably less risk. Many investors have fallen in love with their bonds funds and consider them to be among the world’s best safe investments. Bond funds are NOT safe investments. They have performed well since 1981 (when interest rates and inflation were at record highs) for one primary reason. Both inflation and interest rates have been falling for 30 years, which has sent bond prices higher. Loading up on bond funds now is NOT one of the best investment ideas for 2012. In fact, it is one of the worst investment ideas.

When interest rates and/or inflation turn around and head upward bond funds, especially those that hold long-term bond issues, will be losers. That’s how bonds work. One of the very best investment ideas for 2012 is to sell your long-term bond funds if you own any, and switch to funds holding bonds with average maturities of about five years. These are called intermediate-term bond funds; and average investors should have some money invested here as part of their asset allocation strategy to add balance to their investment portfolio. These are not truly safe investments, but they are much safer than long-term funds.

My best investment ideas in the stock department focus on stock funds. Do not go heavily into the more aggressive funds that invest primarily in growth and/or small company stocks. These pay little if anything in dividend income and tend to be more risky and volatile than the average stock fund. Go with funds that invest in high quality large-company stocks with excellent dividend paying histories. Look for funds that are paying 2% or more in dividends. One of the best investment ideas for 2012 and beyond: invest in no-load funds with low yearly expenses. No-load means no sales charges, and low expenses mean higher net returns to the investor.

Alternative investments include the likes of real estate, gold and other precious metals, natural resources, commodities, foreign investments and so on. One of the best investment ideas for managing a truly balanced investment portfolio is to include this fourth asset class as well. The simplest way for the average investor to add these alternatives to their portfolio is with mutual funds that specialize in these areas or sectors. My best investment ideas here: don’t go heavily into any one area, and don’t chase after a sector (like gold) just because it’s hot. Real estate and natural resources funds would be my picks as two of the best investment ideas in the alternative investments asset class.

Moderation and diversification across the asset classes will be the key to asset allocation in 2012. I have also listed some specific best investment ideas for keeping the average investor in the game and out of serious trouble should the investment scene turn ugly. Above all else memorize this: long-term bond funds are not among the best safe investments for 2012. They are not safe investments, period.

Author James Leitz teaches investment basics, stocks, bonds, mutual funds and how to invest in his investing guide for beginners called INVEST INFORMED. Put Jim’s 40 years of investing experience to work for you and get up to speed at http://www.investinformed.com. Learn how to invest.

Have you ever thought of your future? Have you ever thought about ways on how to grow your savings? Have you ever put these two together: savings for your future?

Instead of spending your money on the latest gadget, shoes, or designer purses, why not familiarize yourself with safe investments that would generate profit in the long run? What if something bad happens to you, will you be able to pay for the bills incurred? Do not feel overconfident and satisfied with what you have in the present.

Investing your money somewhere else than a bank is a good option but is also a risky one. In any case, you must act and prepare now. Life is so short to be procrastinating and hanging around without a plan for the future.

One common way of investing money is stocks trading. The stocks market consists of complicated snakes and ladders, though. One wrong move will bring you down to the pit. So you must have a strong ground on the different concepts, trends and rules of stocks and dividends.

Every investor should aim for a high-performing portfolio. Learn how to build an investment portfolio to safeguard your money from potential losses. Your portfolio should be organized according to your risk tolerance and investment goals. Start early and invest on small amounts at first while you familiarize yourself and develop a goal and a strategy.

Investing your money on precious metals is also quite promising. Gold trading usually generates high profits for investors. Gold is considered more as a currency than a commodity. It is used as a hedge against currency devaluation. Silver, platinum, and bullion coins are good investments as well. Platinum is actually the most expensive precious metal. It is considered as the most valuable trading commodity. But unlike gold, platinum’s value decreases in times of economic crisis. When the economy is stable, platinum’s value is double the price of gold.

Moving your money around and learning how to make more money out of your existing reserves is more practical than having it sit in your bank account and gain little interest over time.

Developing sound saving habits at an early age is a good thing. Learning to invest your money on something that is deemed to be profitable will benefit you in due course.

Start saving and investing your money now so that it will grow into a healthy savings that would enable you to fund your future needs. Do not just settle for what you have now. Continue to learn new things. The world has a lot in stored for all of us. Every achievement takes patience and commitment.

Read more helpful business and Internet marketing advice from Louie Sioco’s blog.

The Thrift Savings Plan currently offers ten investment funds. Five are U.S. and international stock and bond index funds: they replicate the performance of broad market indexes. The other five TSP funds, the Lifecycle Funds, are professionally managed portfolios which consist of a specific target allocation of the 5 individual TSP index funds.

The TSP Funds contain a diversified portfolio of thousands of individual stocks and bonds. Investing passively in index funds such as these is generally considered to be a good retirement savings strategy. The alternative is for you or an investment manager to actively pick individual stocks and bonds to buy and sell. Apart from being impractical for individual investors, this latter strategy usually also leads to inferior investment results: research has shown that most professional active fund managers under-perform a passively managed portfolio of index funds such as the TSP funds.

Here’s a summary of the five primary TSP Funds:

The G Fund is invested in U.S. Treasury securities which are guaranteed by the U.S. government. The nice thing about this fund is that it’s practically risk free (your investment is guaranteed not to lose any money), and yet the interest rate is substantially higher than what you would earn in other safe investments like bank savings accounts, certificates of deposit, or money market funds. If you are very risk-averse, this is definitely the place to park your savings.
The F Fund is a bond index fund, invested in high-grade U.S. government and corporate bonds. Its performance is very similar to the private sector iShares Barclays Aggregate Bond ETF.
The C Fund is a U.S. stock index fund that mirrors the returns of the S&P 500 Index, which consists of large U.S. corporations. Its returns are essentially the same as the SPDR S&P 500 ETF.
The S Fund is invested in the stocks of small to medium-sized U.S. companies. It’s designed to complement the C Fund, so if you invest in both, you basically own shares in almost all U.S. stocks. There aren’t a lot of index funds that track these companies, but if you own both the TSP S Fund and C Fund, then your investment returns will correlate closely to a broad U.S. stock market index fund like the Vanguard Total Stock Market ETF.
The I Fund is allocated to international stocks. It allows you to diversify your portfolio by investing in the stocks of companies in more than 20 developed countries in Europe, Australia, and Asia. There are several private sector equivalents to the I Fund, including the iShares MSCI EAFE Index Fund.

The other five funds, the TSP Lifecycle Funds, consist of professionally managed investment portfolios designed to meet investment objectives for a specific target date (the date on which you plan to begin withdrawing your money). The L Fund assets are invested in the individual TSP funds (the G, F, C, I, and S Fund) according to a target portfolio allocation which is adjusted every 3 months. The target allocation starts out risky, with a large percentage of stock funds such as the C, S, and I Fund. As the target date approaches, each L Fund becomes gradually more conservative, by shifting a larger portion of your assets into bonds such as the F Fund and G Fund. This investment strategy assumes that, while you’re still a long time away from retirement, you’re willing to take on greater risks in order to increase your potential investment returns. Also, while you’re still at the start of your career, you have a longer period to recover from potential investment losses, considering that you’ll continue to make monthly contributions to your account for many years.

Depending on your personal circumstances and target retirement date, you choose one of the five L Funds: L Income, L 2020, L 2030, L 2040 or L 2050 Fund. The L Income Fund is the most conservative asset mix and assumes that you’ve already started withdrawing your savings. The L 2050 Fund is the most aggressive allocation, currently 90% stocks and 10% bonds.

Benefits and Disadvantages of Investing in the TSP Funds

Many investment advisors recommend that for long-term retirement savings, you buy and hold a low-cost, broadly diversified portfolio of domestic and international stock and bond index funds. With the available TSP investment funds, you can do an OK job at this. By investing in all five individual TSP funds, or in one of the Lifecycle Funds, you’ll have a decent portfolio, with an ownership share in thousands of U.S. and international stocks and U.S. bonds. And the TSP funds have extremely low annual expense ratios, several times lower than comparable private sector mutual funds and ETFs, keeping more of your money working for you.

So what’s wrong with the list of currently available TSP investment choices? Some investors want to own Emerging Markets stocks (in addition to the Developed Markets international stocks in the TSP I Fund). Or an allocation to real estate (REITs), or inflation-protected securities (such as TIPS). And some would even like access to more exotic investments like international bonds, high-yield bonds, and other hedges against inflation (commodities and precious metals like gold and silver). Professional advisors would differ on how suitable these investments are. Most would agree that TIPS are a good idea, and for more risk-tolerant investors, perhaps a small allocation to REITs and Emerging Markets stocks.

One great benefit of investing in an L Fund is simplicity: it’s a “set it and forget it” investment plan. You choose an L Fund, determine your monthly contributions, and the fund administrators take care of everything else: regular portfolio rebalancing, and gradually adjusting the asset allocation as you approach retirement. But there are also a few downsides. First, the L Funds with the longer time horizons are fairly risky allocations (for example, currently 90% stocks and 10% bonds for the L 2050 fund), and you should make sure that you can stomach the inevitable volatility as a result of owning a portfolio dominated by stocks. If you’ve owned stocks for the past decade then you already know this: it can be quite a bumpy ride. Also, some investors want more control over their exact portfolio components, when to rebalance, and how soon to start shifting the allocation to a more conservative asset mix as they approach their planned retirement date. Some investors also prefer a tactical asset allocation, shifting their mix based on asset class trends, economic circumstances or other criteria. Owning a portfolio of the individual TSP funds will work better for these investors.

Learn more about the TSP Funds and get daily price and performance updates at http://www.tspfolio.com/tspfunds

Contemporary art is, with very few exceptions, much cheaper than the work of past masters. This is true of generally all works of art, and especially of paintings and sculptures. Hence art investments are considered by some lucrative, since you don’t need that much money to start them. Yet as it often happens with investments, things are not as simple of that – there are some points to consider before you decide to invest in contemporary art.

Investing In Contemporary Art Is Not Necessarily Cheap

Good art, the one that has the potential to significantly increase in value in time, is never cheap. Contemporary art is no exception. Truth be told, only a limited number of current works of art are expected to become highly valuable in the decades to come. These are the best to invest in, yet of course they are for the most part already highly valuable, not to mention close to impossible to acquire, having already privileged possessors. The remaining art pieces, the affordable ones, don’t have a place in art history guaranteed, and investing in them will always be a bit of a gamble. Hence safe art investments are not at all cheap.

Invest In Contemporary Art If You’re Uncertain About the Economy

It’s generally agreed that investments in art are good for keeping your money safe during periods when there are great fluctuations in the economy. Good art is timeless, and its value almost never depreciates suddenly. Good art is no exception, yet note that safe investments are only those made in enduring pieces that are sure to be talked about in a few decades. Knowing how to spot these rare pieces is an art in itself.

Investing In Contemporary Art Will Not Make You Rich Overnight

It takes an art savvy with a lot of money to spend and extremely favorable market conditions to make a lot of money from an art investment. Most investments bring moderate gains, and this over a number of years. So, if you want to invest in contemporary art you don’t only need a nice budget, but also a lot of patience. If you’re not sure to possess the latter, then art investments may not be for you.

In conclusion, contemporary art investment are worth it, especially if they are used as a means to safe guard already acquired wealth, rather than for making a lot of money quickly.

If you are looking for best investment opportunities such as investing in art, wine, shares, gold, silver, property, etc. experts at Compare the Financial Markets will help provide valuable assistance.

The best investment strategy for 2012 and beyond will differ from the popular investment strategy offered by most investment advisers and financial planners today. The investment landscape has changed. Here’s a strategy for making the best of it.

Up until recent times you could stay out of serious trouble by simply allocating about half of your investment assets to stocks and the other half to bonds. That’s the traditional investment strategy often recommended for average investors, and most people deal with it by putting their money in stock funds and bond funds. Stock funds are the growth half of the equation and the risky part of the strategy. Bond funds are considered the relatively safe investment designed to pay higher interest income. Over the years losses in one fund type were usually offset by good returns in the other.

Welcome to the year 2012, where bonds and bond funds will likely not be such a safe investment. Stock funds are never safe and 2012 will be no exception to the rule. Asset allocation will be only half of the story going forward. Selecting the right funds within each category will be the other key to success. Let’s look at your best investment strategy in both fund categories, and the reason why certain funds will be your best choices.

Two things stand out about the so-called recovery the USA has supposedly experienced over the past few years. First, the economy did not recover as it has in the past after a recession – 9% of the working force is out of work. This makes for a weak economy and puts pressure on the stock market and stock funds. That’s why you’ll need to be careful about which stock funds you include in your investment portfolio.

Second, interest rates have been driven down to historically low levels to stimulate the economy in general and the pathetic housing market. Even with a 4% mortgage rate average folks can not qualify for a mortgage or afford to buy a house. Today’s ridiculously low interest rates mean savers can not earn a respectable interest income in truly safe investments. It also means that bond funds could be a trap in 2012 for people who don’t really understand bonds and bond funds. Let’s look at the best bond fund strategy first.

Even the best bond funds of the past few years could be big losers in 2012… if they hold long term bonds in their investment portfolios. When interest rates turn around and go back up the bonds they hold will lose significant value because new bonds will become available that pay more attractive (higher) interest income. Your best investment strategy for bond funds is to own funds that hold corporate bonds that mature in about 5 years to 7 years. CORPORATE BOND FUNDS pay more interest income than similar funds that invest primarily in government bonds. Funds that hold bonds maturing in 5 to 7 years (intermediate term bond funds) will be much less affected by rising interest rates than long term funds holding bonds that mature in 20 years or more. That’s a fact, and that’s how bonds work.

Your best investment strategy for stock funds will be to go with GROWTH AND INCOME funds that invest in high quality companies with a history of paying 2% or more per year in dividend income. If the stock market gets truly ugly in 2012 and beyond these funds will be your best bet to sidestep huge losses. In a bad stock market funds that pay little or nothing in dividends are usually the big losers.

Sometimes it pays to be aggressive and take on more risk. The year 2012 looks like a time to get more conservative and live to be a risk taker another day. Most investors need to hold stock funds and bond funds as well as truly safe investments like bank CDs. Your best investment strategy for 2012: allocate your investment assets with 40% going to INTERMEDIATE TERM CORPORATE BOND FUNDS and the same going to high quality GROWTH AND INCOME STOCK FUNDS paying 2% or more in dividend income. The other 20% of your investment portfolio goes to safe investments like bank CDs.

Author James Leitz teaches investment basics, stocks, bonds, mutual funds and how to invest in his investing guide for beginners called INVEST INFORMED. Put Jim’s 40 years of investing experience to work for you and get up to speed at http://www.investinformed.com. Learn how to invest.

The best time to plan your best investment strategy and pick the best funds for 2012 is now, because last year’s investment strategy and best funds could put you in the poor house by year end 2012. There’s a rocky road ahead for stocks and bonds, and you’ll need a new strategy and the right funds to keep your investment portfolio balanced and out of serious trouble.

For the average investor the best investment strategy will still revolve around bond funds and stock funds in 2012, but the focus will change. The best bond funds will be more defensive, and the best stock funds will be more conservative and income oriented. The USA and much of the free world is facing heavy debt problems on the one hand and slow economic growth one the other. Defense is the name of the game going forward. If you can sidestep heavy losses now and throughout 2012: you will be in a position to step up to the plate when the dust finally settles.

The best bond fund investment strategy is to hold SHORTER-TERM high quality CORPORATE bond funds – and NOT long-term funds that invest primarily in government securities. If interest rates take off long term bonds will fall substantially in value. A mutual fund holding issues that mature in about 5 years will be hurt much less than one that holds long term maturities of 20+ years. That’s not a guess. That’s how the bond market reacts to rising interest rates. I suggest going with corporate vs. government bond funds for two reasons. First, corporate bond issues pay higher interest than U.S. Treasury notes and bonds. Second, corporate America is in excellent financial shape vs. the U.S. government.

The best investment strategy in the stock department is to avoid or sell equity (stock) funds that invest heavily in growth and/or small-company stocks. These often pay little or no dividend income to investors, and in a volatile and declining stock market these funds can get clobbered. The best stock funds for 2012 will be EQIUTY INCOME large-cap funds that invest in high-quality major corporations with excellent records for paying above average dividend yields. A 2% to 3% dividend income might not make you rich, but a steady reliable income stream from America’s highest quality companies tends to cushion portfolio losses in a bad stock market.

Over the past several years I have included owning gold, gold stocks and gold funds as part of my recommended best investment strategy. For 2012 I no longer include gold in my investment strategy, primarily because gold’s price has become extremely inflated over the past few years. Gold has become more of a speculation than a hedge against inflation or disaster. Instead of holding gold I would suggest putting some of your investment dollars in an insured account at your local bank. Sometimes cash is king, especially when interest rates are extremely low and rising. Money market funds are the best funds for safety. When rates move up they should become quite attractive as a safe haven for investors.

Both the best stock funds and best bond funds for 2012 will be defensive in nature. They will also have something else in common… a low cost of investing. Keeping costs low is always an ingredient in the best investment strategy for average investors. Invest in low-cost no-load INDEX funds whenever possible to automatically increase your total returns by 1%, 2% or more year in and year out. That might not sound like much, unless you consider that you haven’t been able to earn 2% in safe liquid investments for the past few years.

In summary, your best investment strategy for 2012 and going forward: an even split between relatively short-term corporate bond funds and high quality large-cap equity- income funds. The best bond funds and best stock funds in these categories will be low cost no-load (no sales charges) INDEX funds with low yearly expense ratios. The best safe investments may be found by shopping local banks or credit unions until interest rates really take off. After that the best safe investment will likely be money market mutual funds.

Author James Leitz teaches investment basics, stocks, bonds, mutual funds and how to invest in his investing guide for beginners called INVEST INFORMED. Put Jim’s 40 years of investing experience to work for you and get up to speed at http://www.investinformed.com. Learn how to invest.

Can you always find a winning investment? What about when the markets are in turmoil either from economic forces, nature’s disasters or political forces?

The answer depends upon two factors: how you define “winning”, and when you want the stock, ETF or fund to produce gains.

When the markets are in turmoil and almost everything is dropping there may be safe havens that can be defined as winning investments. These include: bonds (or bond ETFs and bond funds), money market cash accounts, and high yield dividend paying stocks, funds or ETFs with trong long-term history of always paying their dividends. Winning investments in these situations can also be based on the concept of buying low with the idea of holding the position for a mid to long term measured in years, not days, weeks or months.

While most software programs that provide buy – sell recommendations are based on immediate trends there are a few programs that allow you the option of configuring them so you can pick long term investments or safe investments. You can do this in a variety of ways. One method would be to include a few “safe” type positions in your regular groups so that when most ETFs, stocks or funds are underperforming the analysis will shift towards these safer positions that will then reduce risk while offering modest gains.

Another method would be to create a group of high dividend yielding investments, either stocks themselves or ETFs or mutual funds. By setting the buy rules based on long term investing you would reduce turnover and volatility while maintaining minimum risk with modest gains or income.

Fundamental analysis can also be used to find long term investments. This is the method used by Warren Buffet. This method requires careful study of potential positions over many days and weeks before a buy decision is reached. When the markets are down or in turmoil such analysis coupled with the willingness to reap results in the distant future can bring excellent gains.

Who can best utilize these approaches?

Everyone. Some investors think these approaches don’t apply to them because they want to make money “today” or because they are either nearing retirement or are retired. But when the markets are convoluted putting pat of your portfolio into safe areas is simply a way to reduce risk and maintain your portfolio’s value. Retirees today need to remember that life expectancy is growing and keeping a vibrant portfolio with long term potential is critical.

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

To be really basic there are pretty much just a few different types of mainstream investments. They are stocks or shares, property, bonds and cash. Now if you haven’t done any investing before I may have just terrified you. Just try to remember that most things in life sound complicated or confusing when you first start learning about them.

OK, so when we look a bit deeper into it, there are quite a few sub-categories for each kind of investment. And each area of investing comes with its own challenges, positives, negatives and quite a steep learning curve as well.

The good news is, that when you are a new investor you will probably start out slowly and so you’ll learn about each type of investment as you’re ready to “play” with them.

The next question to ask yourself is “What type of investor am I?” Most people will fit into one of these categories and either be a conservative, middle of the range or an aggressive investor. And you may find that once you have some experience in investing, your style of investing may change also. Particular types of investments also usually fit into one of two categories – high risk or low risk.

The share market can be very intimidating for those new to investing and I recommend getting some other investing experience before tackling this type of investing.

Many people start their investment journey as conservative investors and will most often invest in cash-type investments. What I mean by this is that they invest their money in very conservative financial vehicles, such as interest bearing accounts at a bank, mutual funds, retirement funds, Government-backed bonds, and Certificates of Deposit. These are very safe investments that grow over a long period of time. These are also low risk investments in a way, but often don’t even keep up with inflation. It also means you are relying on other people to invest your money wisely and that you have absolutely no control over it.

Modest investors are still fairly conservative and will often invest a good part of their portfolio in cash investment products, while at the same time some may try their hand in the stock market, others may purchase property and most moderate risk investors will be looking at low to moderate risk investments.

The more aggressive investors generally do a lot of their investing in the stock market, which can be quite a volatile market. If you plan to get into share trading I strongly suggest doing at least one course that has been recommended to you by someone you trust and then to paper-trade (practice trading – real trades, but without actually buying them) for at least six months. Aggressive investors will look at business ventures along with higher risk property deals and are often will to put the larger part of their portfolio in higher risk opportunities.

So let’s say you’re an aggressive investor and you find an older apartment building. You would plan to invest even more money renovating the property, which can be risky if you have not calculated all the outcomes correctly. You would invest this way because you anticipate being able to increase the rental fees for each apartment or perhaps you were looking to flip the property for a net profit. This can be very lucrative and it can also cause bankruptcy. Usually it comes down to how well you do your homework and how much experience you have.

Property in any given area tends to go through cycles, so again you need to be educated before you jump into any “deals of a lifetime”, especially if everyone is jumping in at the same time. Usually by that time all the real deals have been snapped up by the savvy investors and you are looking at the peak of the cycle, just before it starts to decline. I will go into cycle details in much more depth in future posts. Oh, and it’s not just property that has cycles – just something that you should be aware of.

If you’re seriously considering investing you first need to decide what risk level you are comfortable with and how much money you have to start out with. Seriously, there are very few people who get rich working for someone else, so you’re on the right track, because you’re going to look after your own money way better than anyone else in the long run. Just remember – especially when you’re starting out – that any money you plan to invest, you must be comfortable with the idea of losing it. You mustn’t invest with money you can’t afford to lose.

Julie started investing from an early age, owning her own 7 days a week business at 18 years old, and has continued throughout her life to educate herself on multiple investment strategies. Her main focus has been residential property investing. She has owned multiple rental properties, renovated 11 homes, performed sub-divisions, bought off the plan, been successful with property options and now lives on over 110 acres in rural South Australia. While she leans toward property investments, she has also educated herself with many other investment vehicles and encourages others to do the same. Looking into a variety of investments can help you decide what investing strategies are a good fit for you.