Investment Articles

Jack and Mike were at a party in 2011 and the chatter was about investing money and where to invest it. Jack whined about interest rates, and Mike agreed that investing money in the bank was a lost cause. Assuming they both preferred relatively safe investments, a stranger overhearing this suggested they invest in safe mutual funds.

Investing money in mutual funds was on Mike’s list of where not to invest because he had lost a bundle in stock funds during the financial crisis. Jack wasn’t too fond of funds either, since his safe mutual funds (money market funds) were paying MUCH less than 1% in interest. Both felt clueless and uncomfortable as the stranger rattled on about a type of fund. According to mister know-it-all, you could invest in a relatively low risk fund, earn higher returns than at the bank… and just relax.

As they walked away from their new acquaintance Mike suggested that Jack ask his brother Jim (who knew about this stuff) what the devil the guy was talking about. Jim, as usual, had an answer. Can you invest in one single relatively safe fund in 2011 and have exposure to stocks, bonds and safe investments all in one package with relatively low risk at relatively low cost? Can investing money in 2011 and into the future be that simple? Yes it can, in a NO-LOAD balanced fund called a Retirement Income Fund.

Here’s how investing money in these balanced funds works. Let’s say you invest $10,000 in a retirement income fund with a major no-load fund company like Vanguard or Fidelity, the two largest fund companies in America. It should cost you nothing for sales charges when you invest and about $100 a year (or less) for management and other fund expenses. This money will automatically be deducted from the value of the fund shares you own. No-load means no sales charges when you invest or cash in shares.

Now, where is your money actually invested in these relatively safe mutual funds? About 20% will be invested in a variety of stock funds managed by the fund company. This provides you with some growth potential plus dividend income. The rest of your money will be split about evenly between bond funds and safer short-term funds managed by the company, both of which earn interest. The dividend and interest income earned are normally automatically reinvested for you – to buy more shares in the retirement income fund that you own shares in.

Investing money always involves risk and the value of your shares will fluctuate. The good news is that when you invest in a retirement income fund risk is relatively low, and you will own a small part of a large well diversified portfolio. No one knows what the future will bring in 2011, 2012 and beyond. Broad diversification in relatively safe mutual funds makes good sense for most people.

If you feel clueless and are safety conscious like Jack and Mike, consider investing money in a retirement income fund. Let the professional money managers do the managing while you relax in 2011 and beyond. You won’t get ahead with all of your money in the bank, so start investing with relatively safe 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.

Are you a conservative investor? Almost everyone is to some degree but if you are always concerned about not losing, about retaining your hard-earned cash, then you probably fit the mold for a true conservative investor. The good news is that there are sound strategies for conservative investors that can still grow your money, maybe not like a bamboo tree but surely like a solid oak tree.

And there is nothing wrong with saying you are conservative investor, that you want to leave the risky stock investing to others. When retirement comes, or a rainy day, conservative investors are confident they have money to meet their future needs.

There are degrees of conservative investing and it is important to recognize where you stand. These degrees include:

1. Totally concerned and committed to just about not risking a penny of your cash but desiring to at least keep even with inflation.
2. Committed to minimal risk of your money but desiring to see it grow a little more than inflation.
3. Conservative in most cases but willing to use a small portion of your cash to grow faster than inflation but not to the extent of taking wild risks.

If you fall in the #1 category, safe investments can be found:

• Bonds, bond ETFs or bond mutual funds
• Some stocks (companies) with a 10 year or longer history of paying strong dividends, ETFs or mutual funds based on dividend paying stocks
• US treasuries, ETFs or mutual funds based on treasuries

If you fit the profile for the #2 category you should invest similarly to those in the #1 category but put more of your funds into dividend paying stocks, funds or ETFs. This will enable your portfolio to grow a bit more than inflation as dividend payouts from strong companies are usually greater than inflation and there is also a good likelihood the price of the stock or ETF or fund is also appreciating.

For those of you in the #3 category of basically conservative investors, the majority of your portfolio should be invested as if you were in category #1. But like those in category #2 you should hold investments in dividend paying stocks, funds or ETFs to help grow your portfolio and beat inflation, but in your case this portion of your portfolio should be a strong minority.

You should also invest a smaller minority of your cash into strong, stable companies whose growth may be slow but sure. This can be achieved by either investing directly in stocks or ETFs or mutual funds based primarily on large companies (called large caps).

Another option for those in category #3 is to take that small minority of funds and invest in ETFs or mutual fund sectors which represent those portions of the economy that are growing.

In all situations, for all conservative investors it is still important that you keep on top of the market to some degree. Do you have to watch it daily? No, but taking a glance every week or for sure every three or four weeks is a good idea.

Just because your investments are conservative doesn’t mean that once you buy them you should hold on forever. Situations change and you may need to make adjustments. For example, you may want to switch from long-term bonds to short or mid-term bonds. Or maybe one of your dividend paying stocks is paying 3.5% but there is another paying 4.7%.

You can place your investments yourself; work with an investment advisor firm, or a financial planner. If you want to do it yourself, I would suggest using a software program based on technical analysis, not necessarily just charts, which gives you recommendations that can be set to fit these three categories and your particular objectives. By spending a few moments and updating such a software program every week or few weeks you will keep up with your choices and be able to make changes that protect your money while allowing it to grow at the pace you desire.

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

A well-planned investment always gives excellent returns over the years. Investing should be done for at least a period of five years and having a clear long-term plan is needed. A lot of people expect quick returns on their money and end up investing in risky investment options instead of the safe investments.

Safe Investment Options

Bank Saving Schemes

Bank saving schemes is one of the most popular amongst all the safe investment options. With bank saving schemes, the chances the money spent being misused are reduced compared to other forms of investment. Most importantly, it gives an attractive interest which is a requirement of liquid money for use when needed.

Gold

Gold would be the best investment as well as a safe investment. The prices of gold are based on the market situations. Buying gold at a lower price would give bigger profits at maximum levels when the demand for gold in the market is at its peak. Buying gold in electronic form is better than purchasing gold in the physical form. It is necessary to seek help and advice from gold traders and dealers to know more about its prices and make profitable investments.

Bonds

Bonds are one of the safe investments to consider because of its stable returns year after year. Bonds issued by public companies, as well as private companies, provide decent returns, regardless of the situation of the economy and markets. Ideally, one should prefer reputable government run companies for bond investments. Bonds are the loans advanced to corporations by the investors. Therefore, bonds would be safer form of investment compared to other forms of ventures.

Residential Real Estate

Residential real estate is also a sound venture because of the attractive prices of houses and properties. With the economy showing steady growth recently, buyers are starting to purchase homes. This can start an upward trending in the real estate prices. Investment in residential lots is also predicted to yield superior returns on investment in a later time to come. Benefits from residential real estate investment are expected to be in five to seven years.

Mutual Funds

Mutual funds are one of the save investments considering the variety of options investors get here. Large cap diversified mutual funds offers safety and steady growth of the investments. Several mutual funds give as high as twenty-two percent return on investments. Prior to investing, it is best to conduct a thorough research, so that one can choose the correct mutual funds companies.

For most of the first-time investors, the safe investment options would be the appropriate choice. As one starts to gain profits, investing in risky investment options would follow depending on one’s comfort and choice.

Investing in the markets can help you make more money and secure your future.. You can invest in stocks, ETFs or mutual funds. You can invest cautiously or go for big results, or anywhere in-between.

What it takes to be an investor is the same desire it took to learn how to drive a car, figure out the features of a smartphone, or know how much you can spend on groceries this week. In other words you don’t need a college degree, a fancy suit or designer gown. You simply need “desire”. If you have the desire, the need, the want to make your life better, safer, easier, more fun then you should be investing in the markets because you have the abilities.

Working a job or a career you may get by or perhaps you’re doing pretty good. But getting by or doing pretty good will not take care of you in retirement, buy that special gift or protect you from job loss or major medical challenges. This is where investing comes in.

Saving money in a savings account, even a CD will barely keep you even with inflation and in most cases you lose money in the long run because the value of your savings won’t buy as much in the future as it does when you first put it into the bank. Savings accounts are good ways to build up cash for investing, but don’t expect to make money this way. And they are no safer than putting your hard earned dollars in safe investments if that is what you want or what concerns you.

Your biggest challenges are:

• Don’t get scared off – friends may want to tell you it can’t be done; you’ll fail; you will hear of how someone who knows someone who knows someone lost their shirt; or read a book with scary warnings.

• You can’t take friends advice – not on what to buy or sell, or even how to invest – unless they have a proven, successful track record on paper that you can verify.

• Deciding where to invest.

• Putting together the money to get started.

• Deciding how much time you have – be realistic about how much time you are willing to spend managing your investments. Don’t be afraid to say, I don’t want to do it every day; maybe an hour a week; maybe a few hours a month.

• Picking the software program – there are hundreds of programs on the market. Take your time to check them out and find one that works best for you; but set yourself a timeline so you don’t miss investment opportunities.

As long as you have the desire and recognize that investing isn’t going to make you a millionaire overnight you can:

• Safeguard and grow your money
• Become wealthy
• Buy those expensive gifts

This will happen when you decide to put the pedal to the metal and get going. You are in the driver’s seat and only you can control the circumstances and your financial future. No matter what anyone else says!

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

A great time to start investing is during your college years, especially if you are working in conjunction with attending college. You might think this is impossible but I am here to inform you it is not. The more soon you start investing into your future, the more secure you will be when you settle down to start a family of your own. Learning how to make money from college with investing is something that all college students should do.

Before jumping into this task, you first need to delve into your long and short term goals. You need to determine what you need in the immediate future financially as well as “down the road”. Performing a necessary assessment of your financial goals is imperative because it will serve as a financial road map.

Determining your long and short term goals

Your goals short or long term will determine how much you invest. If you are merely beginning your retirement savings, you can invest more conservatively. If you want fast-money, you will want to invest with less conservatism. If you are saving up or investing for special events that are coming up in your life, you will want to comprehend how your investments will work for you and how fast this will occur.

What level of money are you comfortable parting with for savings?

If you are not comfortable taking the excess money you have left over from financial aid to invest, then it is simple, do not do it. Allot a portion of your aid that you feel most comfortable with. It is normal to be a little worried or scared when it comes to handing your money over for stocks, bonds or other commodities but you need to understand that there is always some type of risk involved, even with what some call “safe investments”.

Are you feeling frisky?

If you are feeling adventurous, you might find mutual bonds and savings funds less exciting than the stock exchange. If you want to delve into stocks, the best advice is not to stick your hands only in one cookie jar. You want to place your hands in different cookie jars.

What are safe investments?

Safe investments are things such as government bonds. These bonds promote our country while maturing. These types of bonds do not reap fast benefits; in fact, it takes many years for them to mature fully at face value. There are options available when purchasing government bonds therefore, ensure you know precisely how long it will take the bond to mature before you purchase it.

The world of investing is not pre-set. There is no one size fits all. Investors are individuals with different financial needs. Make sure that you seek the advice of a professional if you are a beginner to the world of investing. Attending college is a wonderful time in anyone’s life and the fact that you are planning for your future will ensure that you are secure and financially stable for your future. Learning how to make money from college with investing is not a hard feat, anyone can perform this task with careful planning and dedication.

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Investing money in 2011 and 2012 puts the investor between a rock and a hard place as investing has become more difficult. Investing in stocks has gained favor vs. bonds in recent months. What’s going on, how should you invest, and why do I say investing has become difficult?

The stock market just about doubled in value between early 2009 and early 2011, and investing money in stocks (equities) and selling bonds appeared to be the new trend in investing for 2011. Does this mean that investors are confident that the U.S. economy is well and getting better? Not necessarily. More than likely it means that investing in equities appears to be the lesser of two evils. Bonds and bond funds have a cloud hanging over their head. Interest rates could start rising significantly in 2011 or in 2012 and this spells trouble for anyone investing in bonds.

There are very few statements you can make in the world of investing money that are universally accepted as fact. One of them is this: when interest rates go up, bond prices (values) go down. In simple terms, the fixed interest payments that these securities pay become less attractive to investors as rates go up. So, many investors will sell their bonds… sending prices down… and put their money someplace else. Since the government had been holding interest rates down for months to stimulate the economy, rates are likely to go up in 2011 or 2012, if the government stops this policy as planned. Investing money in bonds will then be a loosing proposition if rates rise significantly. That’s a fact and about as black and white as investing gets.

Stock investing is more of a gray area. High and rising interest rates can slash corporate profits and this tends to send stock prices down. But in early 2011 rates might have been rising, but they certainly were not high by historical standards. Corporate profits were strong and investors dumped bonds and switched to stocks. The other major alternative for investing money was safe investments like one-year CDs and money market funds. With both of them paying less than 1% a year, there was little reason for the average investor to invest in either. The only real advantage in safe investments at these low interest rates is safety and liquidity.

In other words, none of the three basic investment areas where most people invest look very attractive. That’s what makes investing money in 2011 and going forward difficult. If interest rates continue to climb bonds are guaranteed losers and stocks will eventually get hit. Safe investments might not look attractive when they start paying at 1% or 2%, but they will at 3%, and that’s where folks will put there money.

So, how should most people invest money for 2011-2012? Cut your exposure to bonds and avoid long-term bonds and funds that invest in them. Long-term bonds and funds will get hurt the most if rates rise significantly. Go with intermediate or shorter term bond funds. Move some money into money market funds. They are safe and the interest they earn will automatically go up with rising interest rates. Investing money in stocks or equity funds should remain a part of your overall strategy, but avoid aggressive growth issues or growth funds that don’t pay significant dividends. Look for dividend yields of at least 2% in high quality stocks or equity funds. Growth stocks are often hardest hit when corporate profits fall.

Diversification and balance are your keys to success when investing money in 2011-2012. There are times you can invest aggressively, and there are times when a more cautious approach is called for. With interest rate hikes looming over the markets, this is not the time to throw caution to the wind. 

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.

Investors are always on the lookout for new opportunities. They seek to diversify their portfolio and include a good mix of stocks and bonds. They also like a healthy mix of high risk and relatively safe investments. Some may choose to invest in alternative investments like micro loans, green investing or collectibles, while others prefer the riskier route of investing in small businesses, IPOs and startups. In fact, having a mix of investment options is the best way to minimize risk and diversify your portfolio.

Finding ways to start investing in small businesses can require some digging on the part of the investor. Many owners do not know how to get the word out that they need capital to expand, to move into a bigger building or to invest in new equipment. Most go to their local bank for funds to borrow, which may even be insured by the Small Business Association (SBA).Unfortunately, many banks do not provide 100% of the money needed. They expect the owner to use their personal reserves or to bring an additional investor to the table in order to protect the bank’s interest.

As an investor, you need to let your local bank’s commercial lending department know that you are interested in investing in small businesses. A bank will have already down their due diligence and researched the company requesting a loan. If a loan officer knows that you have the extra cash to invest, they might approach you with hot deals that need additional funds. Another option when searching for investment deals is to contact an area business broker. The broker knows which small companies in the area are selling and which could be persuaded to stay if there was an influx of cash to expand and support future ideas.

Investing in small businesses is also a way to use your investment money to help support the local economy. Such owners usually hire local employees who stop for lunch at local eateries and spend their paychecks at local shopping centers. The money invested makes a nice profit but the reward of helping many people can be far greater. Overall, an investor needs to diversify their portfolio to spread the risk of their investments over several different types of investing. Helping small businesses by investing in their future not only helps the local economy but also helps the investor’s bottom line.

Sean Johnson is an Investment Advisor for http://www.inquest.biz an Investment Referral Service for investors requesting information on specific investments.

You can make some wrong decisions in 2011-2012 and still make money investing if you are investing money with a handle on asset allocation. If the worst happens few people can really expect to make money investing, but YOU could with good asset allocation working for you. What’s the worst that could happen?

Investing money in stocks returned about 15% in 2010, bonds earned less than half of that and safe investments paid zip – while investing in gold was worth 30%, silver 84%, oil 15%, with real estate a mixed bag. In 2009, oil was the big winner, having been the big loser in 2008, when gold was on top. Investing money for 2011 and beyond need not be a guessing game. Your best odds to make money investing without speculating is called asset allocation: spreading your money across the various asset classes. By far the simplest way for the average investor to do this is by owning a variety of mutual funds.

Mutual funds exist for investing money in all of the above asset classes and they are designed for average people. Fund management selects the stocks, bonds and other investments and they manage them as a diversified portfolio for their investors as a group. Some funds specialize in areas like real estate and precious metals (like gold and silver). Your job is to do the asset allocation: tell the fund company how much money to invest in which funds. If you spread your money out across the asset classes and you don’t make money investing in 2011, you likely won’t know anyone else who did make money.

I personally divide all investments into just 4 asset classes to keep asset allocation simple. In order from safest to higher risk: safe interest-paying investments, bonds, stocks, and other alternatives like real estate, gold and natural resources like oil. In mutual funds, that translates (in the same risk order as above) to money market, bond, diversified stock, and sector (specialty) funds like real estate, precious metals, and energy or natural resources funds. In large fund families like Vanguard and Fidelity investing money in all of the above can be done by opening just one mutual fund account.

How you do your asset allocation when investing money in funds will depend on the level of risk you are willing to take. But keep in mind that you also lower your overall risk just by diversifying across the 4 asset classes. The asset classes and funds above are basically in order from safest to riskiest, so take that into account in your asset allocation for 2011 and beyond. If you want more safety go heavier in money market funds and shorter-term and intermediate-term bond funds. For more profit potential and risk go heavier into diversified stock funds and spread a lesser amount of money around in real estate, natural resources, energy, and perhaps gold or precious metals funds for 2011-2012.

Over the years investors have made money investing, earned higher than average returns, and lowered their overall risk by diversifying across the asset classes… as losses in one area were often more than offset by gains in another. In the years leading up to 2011, most of the asset classes have tended to move together, which is unusual. Extremely low interest rates, high government debt, and a recent financial crisis with lingering high unemployment have blurred the lines and created much uncertainty. The worst that can happen ranges from instability in interest rates or deflation/inflation, to another financial crisis. In any such case, it will be extremely difficult to make money investing without some sort of strategy in place.

Investing money in 2011 and beyond will involve uncertainty, and asset allocation is your best strategy for hanging in there and avoiding excess risk. Until it’s possible to make money investing in safer investments, you’ve got to spread it around. There are basically only 4 general asset classes. Investing money in mutual funds is the easiest way to cover all the bases.

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.

Yesterday’s best investment portfolio might not be the best investment strategy for most folks in 2011 and beyond. For the past decade bond funds were the best investment vs. stock funds. Going forward your portfolio might need a few adjustments to keep you out of trouble.

For many years mutual funds have been the average investor’s best investment vehicle, and a simple portfolio formula has worked quite well. Diversifying with a bit over 50% in diversified stock funds and 40% or so in bond funds has worked to keep the average investment portfolio out of serious trouble leading up to 2011. But this might not be your best investment portfolio going forward. In the past decade diversified stock funds have struggled while bond funds were steady performers. As a result investors large and small have loaded up on bonds and the funds that invest in them. Before 2011 turns to 2012 a change of fortune could be in the cards.

Investment trends leading into 2011 included higher prices for stocks, oil, gas, gold, silver and other commodities. And late in 2011 longer-term interest rates headed upward, which sent bond prices down. If such trends continue and inflation heats up, the best investment portfolio going forward will NOT be one that’s heavy into bond funds (also called income funds). Simply put, when inflation and interest rates heat up bond funds lose value. Your best investment strategy here is to cut back on these funds if you have significant exposure. Favor short-term and intermediate bond funds and sell or avoid long-term funds. The latter can get hit hard when interest rates and inflation go up.

In the stock (equity) fund arena, broaden your horizons. Most people rely heavily on general diversified stock funds that invest primarily in domestic (U.S.) stocks. Your best investment strategy here is to include international funds in your portfolio for world-wide diversification. Then consider non-diversified specialty funds that specialize by holding stocks in these sectors: energy or natural resources like oil… real estate… basic materials like copper and aluminum. Although gold funds have been one of the best investment options going into 2011 – if you missed gold’s big move don’t chase gold at $1400 an ounce or more.

The best investment portfolio for 2011 and beyond will also include the only funds that are really safe investments: money market funds. These pay interest in the form of dividends with a share price pegged at $1. If interest rates and inflation go up these funds should hold their value AND pay increasingly higher dividend yields. Money funds, unlike bond funds, benefit when interest rates rise.

Keep in mind that interest rates and inflation had been low and/or falling for many years heading into 2011. This has kept bond prices rising, because the FIXED interest income bonds pay has looked increasing attractive to investors. That’s the real reason millions of investors still see bond funds as their best investment. If trends reverse your best investment portfolio will be one that’s conservative in the bond funds department… more broadly diversified in stock funds… with money market funds for safety.

What if you make these changes to your investment portfolio and trends don’t change? You’ll still have a broadly diversified portfolio for 2011 and beyond that’s balanced across the asset classes. And your best investment portfolio over the long term is always one that is well diversified and balanced.

Author and former financial planner James Leitz brings 40 years of investing experience to readers in his complete investing guide for beginners, INVEST INFORMED. Learn how to invest starting with investment basics in plain simple English. To get up to speed on both investments and investing money for 2011 and beyond visit Jim at http://www.investinformed.com now.

It’s time to decide where to invest money and where not to invest for 2011 and beyond. The flow of money and the investment tide could be changing, so you’ll want to invest money with your eyes wide open going forward. Here we look at safe investments, stock funds vs. bond funds and gold.

What does the flow of money and a changing tide have to do with where to invest in 2011 or 2012? Where money flows in – prices rise. Where it exits from prices fall. In recent years gold has soared to all time highs. In the stock funds vs. bond funds arena investors have flooded bond funds with money inflows of hundreds of billions of dollars as bond prices climbed. Stock funds watched money run for the exits. There had been a rising tide in gold and bond fund prices as 2011 approached the scene. This will change if investors decide to invest their money elsewhere.

WHERE TO INVEST MONEY IN SAFE INVESTMENTS: Safe investments pay interest, and very little of it these days. If you see a higher interest rate on what appears to be a bank CD, look twice before you invest money. Make sure it is federally insured by the government because there are misleading imitations out there. If you have money in a retirement plan at work or with a life insurance company, check to see if they offer a fixed or stable account option. These safe investments often pay the best rate around. Do not invest money in the average bond fund if you need high safety. For 2011 and 2012, these are not necessarily safe investments. Go with safe money market funds instead.

WHERE TO INVEST MONEY TO EARN MORE INTEREST: For almost 30 years as INTEREST RATES FELL, bond funds were the place millions of average investors put their money to earn higher interest income, with relative safety. With interest rates near record lows the risk of owning these funds now somewhat offsets the potential rewards. Rule #1 in regard to bond funds: when interest rates go up, fund prices (values) fall. Rule #2: long-term fund prices fall the most. Do not invest money in long-term funds unless you are willing to bet that interest rates will fall further in 2011-2012. Instead, go with a mix of short-term and intermediate-term funds.

WHERE TO INVEST MONEY FOR GROWTH AND INCOME: In the stock funds vs. bond funds debate for 2011, stock funds are the favorite in the growth department. Bond funds are not growth investments. Frankly, I’d shy away from stock funds that invest your money in growth and smaller-company stocks that pay little or no income in the form of dividends. Instead go with general diversified stock funds that invest in large-cap company stocks that pay good dividends. It will be nice to have some dividend income in case the tide for stocks goes out. Consider putting some money in real estate stock funds for income and to add even more diversification to your portfolio.

In 2011 and 2012 the issue of where to invest money will likely focus on stock funds vs. bond funds. Gold is bound to be in the headlines as well. At over $1300 an ounce, gold has become a speculation. If you invest in gold keep one eye on the exits. The average investor needs to invest with a long-term strategy that includes both stock funds and bond funds. Go for dividends in the stock category and avoid long-term in the bond department. Invest money like the investment tide was ready to turn, because it could in 2011 if INTEREST RATES RISE.

Author and former financial planner James Leitz brings 40 years of investing experience to readers in his complete investing guide for beginners, INVEST INFORMED. Learn how to invest starting with investment basics in plain simple English. To get up to speed on both investments and investing money for 2011 and beyond visit Jim at http://www.investinformed.com now.