Investment Articles

As recently as 2006 it was commonly heard that real estate was the safest investment you could make. But even in 2006, there were some people, known as “insiders” who were actively investing in movies. They knew about the profits others were making with real estate, yet they kept investing in movies. Logic says there had to be some reason for them to keep doing this. This article will explain why some intelligent and knowledgeable people are enamored with investing in movies.

It is as easy to make a movie and market it, as it is to make an apartment building and market it. It just involves two different types of know how. To build a rental unit, different experts are hired for the various aspects of the building, such as carpenters, electricians, plumbers, and so on. An investor does not need to know how to do any of the actual jobs, the investor just needs to know how to coordinate everyone, as well as get the building permit, and apply for zoning changes if needed and so on. The investor can hire a contractor who then hires the various tradespeople, instead of doing it themselves. To make a movie, an investor can hire a contractor, known as a producer, to hire the cast and crew and coordinate everything.

The rental life of an apartment can usually be expected to be about 50 to 60 years. It can be more, and it can be less, with factors such as rot and termites to be considered. During this time, a lot of effort is involved in the management of the property, by way of maintenance and insurance for example.

Movies can have a revenue life of 60 years or more as well. And once made, there is no maintenance. Humphrey Bogart is still making money for someone! You can verify this by checking your TV movie listings, and you will see that many movies made 20 to 30 years ago, are still very popular, and they are shown repeatedly on TV.

For the same investment, a movie can make up to a thousand times as much as a rental property. This is especially true for low budget movies. With a digital camera, a home computer, and unknown actors, a quality movie can now be made for only $200,000 to $300,000. There have been movies made for under $30,000 which have made 100 million dollars. It takes research to find a promising movie project to invest in, the same way it takes research to find the land in the right area on which to build a successful rental unit. There are movie investor “insiders” who are happy to perpetuate the myth that movies are very risky, because they want to keep others away from what they know is a very lucrative industry to invest in. And compared to apartments, movies are a lot more fun!

I am making a low budget movie. On my site, I have an article which conclusively proves that movies beat real estate. The article was not written by me, it was actually written by a real estate expert. You can read the article through the link below. You can then go to other parts of my site and learn all the details, including how it can be made for only $145,000. I am seeking investors with $10,000 up. http://www.samandleah.com/realestate.htm

The site is very complete, with nothing hidden. In my life I have been told that I am too honest, but it’s the only way I want to be.

It’s difficult to decide where to put your money these days.

I mean, really – what are our primary “safe” investment choices today?:

Bank account? Sure, however the paltry interest you’d receive would be completely outpaced by inflation. You would actually lose money keeping it in a checking (or savings) account.

Certificate of Deposit (CD)? Basically a glorified bank account. You’d get more interest than a normal checking/savings account, but not by much. The biggest downside is that you lose liquidity, since you have to “lock up” your money for a specified period of time.

Money market account (MMA)? Better than a CD in terms of liquidity, but pays less interest. You may get penalized if you write more than a certain number of checks. It’s a medium between a checking/savings account and a CD.

401k? This is perhaps the most UNsafe option of them all. Expense ratios are rising (the costs of using mutual funds, which typically make up a 401k), and the markets have dropped and or have been otherwise very volatile over the last few years. It will be a very long time until they stabilize again.

US Treasuries? Once considered the safest investment, the United States is increasingly becoming in danger of default on their debt. This fact led to the downgrading of the country’s credit rating. Would you feel safe putting your money somewhere that you might not see again, never mind earn interest?

Real Estate? Now we’re getting warmer. The only problem with traditional real estate is that it’s expensive! Having a 20% down is a must these days, and for most people, they simply don’t have that kind of cash.

So where is a savvy investor supposed to put money where he or she can profit, no matter if the investment succeeds or if the investment falls through?

Enter tax lien certificates. Tax lien certificates offer high returns with very little risk, which is precisely why less-savvy investors have misguidedly called them a tax lien certificates scam.

When back property taxes are owed, the county issues a lien on the property. Wanting to get their taxes, the county holds auctions for these liens which investors can buy (for the price of the owed back taxes).

Typically, the returns are between 16-18% which is set by the county to encourage delinquent owners to pay their taxes, and also interest investors in buying them.

Plus, because the lien is backed by a real asset (the property itself), if the delinquent owner completely defaults on the back taxes owed, the lien holder get the property free and clear.

There is a lot more great information about tax lien certificates available at http:/www.taxliencertificatesscam.com, along with resources to help you get safely started investing in tax liens.

U.S. Treasuries are considered one of the safest investments in the world. Why? Just take a look at the yield on the 10 year bond; despite the deadlock in Washington and the media induced fear that the U.S. may default on its debts, the world still believes that the U.S. will not renege on its debt. As a matter of fact, while the stock market declined recently because of inaction in Washington, the yield on the 10-year bond actually dipped below 3 percent (when investors buy Treasuries, the yield goes down). Because U.S. Treasuries are perceived to be risk-free, they are used as a bellwether for other bonds as well. Corporate and municipal bonds are compared to U.S. Treasuries to assess their risk; when the interest rate between a non-Treasury bond and a Treasury bond is wide (also known as spread), the Treasury bond is considered riskier, and vise versa. But just because the U.S. Treasury is assumed to be default proof, it does not necessarily mean that it is risk free. While default risk is important to consider, investors must also recognize that bonds exhibit other risks beyond default risk. Below is a list of the different types of bond risks investors should be aware of.

Default risk – is the risk the borrower (U.S. government, municipality, or a corporation) will not make interest payments as promised. Investors perceive U.S. Treasuries to be default proof because they believe the U.S. will always pay its obligations. Many investors falsely believe that municipalities are also default proof, but in 1994, Orange County, California defaulted on its debts.

Interest rate risk – is the risk that interest rates will change after issuance. For example, assume an investor buys a 10 year bond for $1,000 paying 4 percent annually, which means the investor will receive $40 per year for 10 years. The investor is exposed to interest rate risk because if interest rates increase, the investor will still receive $40, but the price of the bond will decline because no one would want to pay $1,000 for a bond paying 4 percent when the market interest rate is higher than 4 percent; the reverse is true if interest rates decline. The change in the price of the bond given a change in interest rates is measured using a term called duration.

Reinvestment risk – Continuing with the same example from above, as the investor receives $40 in interest payments every year, it is assumed that he/she will reinvest that interest payment at prevailing market rates. If prevailing market interest rates are below 4 percent, the investor is exposed to reinvestment risk because they will reinvest those payments at lower rates.

Liquidity risk – Liquidity is the ability to buy or sell an investment quickly without difficulty. Bonds do not trade the same way as do stocks. Whereas stocks are easily traded throughout the day on an exchange where there are usually thousands, if not millions of shares traded in a single day, bonds (except for U.S. Treasuries) are traded through bond dealers where trades occur much less frequently. This infrequency of trading within the bond market leads to stale prices and liquidity risk.

Spread risk – As mentioned in the opening, U.S. Treasuries are used as a bellwether for other bonds, and a bond’s riskiness is measured by the spread between its yield and that of a comparable Treasury. Hence, spread risk is the risk that the bond’s yield will widen against that of a comparable Treasury; the wider the spread, the greater the risk of the bond.

Downgrade risk – Bonds are rated by major credit rating agencies, despite whether investors still trust the rating agencies given the Mortgage Backed Security debacle. Nevertheless, bond ratings are important for many investors, especially institutional investors such as banks, endowments, pensions, etc. Such institutions have policies that prohibit them from owning low grade bonds, so they rely on the ratings to screen bonds. Downgrade risk is the risk that a bond will be downgraded by one or more of the credit rating agencies and lead to a sell off among those bonds.

I identified six risks of investing in bonds. However, there are additional risks that apply to complex bonds as well. When bonds have more unique features such as calls, puts, zero coupons, etc., the risks multiply. Many investors wrongly assume that if they invest in a bond and hold it to maturity, that they are not taking any risk. But as you can see from the various risks identified above, investors must be aware of the complexities associated with investing in bonds, and learn how to manage those risks.

ACap Asset Management is a Fee-Only financial advisory firm providing comprehensive financial advice specifically tailored for doctors’ needs.

Ara can be reached at aoghoorian@acapam.com, on the web at http://www.acapam.com, or on Facebook by searching ACap Asset Management.

You have likely heard the old saying, ‘Don’t put all your eggs in one basket.’ This summarizes the entire philosophy of a diversified investment portfolio. The idea is to spread out the risk. You do not want to have 100% of your investment capital riding on a single investment. For example, you would not want to have your entire investment portfolio allocated to commodities. This might represent very slow growth and/or improper risk allocation. Likewise, you would not invest 100% of your capital into penny stocks that may go up and down in value just as quickly as the wind blows. Maintaining a diversified investment account will allow you to reap the benefits of multiple investments while at the same time protecting yourself from a single catastrophic loss if one of the investments happens to tumble.

Stock Market Investing Is A Fundamental Element Of A Diversified Portfolio

The United States stock market has increased in value, on average, about 11% since the 1920’s. This includes the time of the Great Depression, the stock market dive of 1987 and the dot-com crash of more modern times. Over time, the stock market increases in value. Those who invest in the stock market are in a position to benefit from this slow increase in value. Those who invest for the long-term are most able to capitalize on the growth of the stock market. It is a fundamentally sound investment when done properly. There are number of ways to invest in the stock market including mutual funds, spider funds, and stock indexes, to name just at few of the methods. Individual stock purchases can also be profitable if done correctly. As always, talk with an investment adviser about your options and how stock investment fits into your overall game plan.

Penny Stock

A more specific type of stock market investing revolves around penny stocks. These are stocks that have a small price tag and potentially a significant return. However, the potential also exists for significant losses if prices go against you. For this reason, penny stocks are generally considered to be a risky investment and are not suitable for all investors. The appeal of the penny stock is to ‘find the next Walmart.’ What this means is that the investor (or perhaps in this case the speculator) is looking to buy a company stock for a very small amount of money (perhaps just a few pennies) in the hopes that it may soar to be worth several dollars per share in the future. This is generally the fundamental game plan with a penny stock.

Mutual Funds Investing

Mutual fund investing is another one of the ways to invest in the stock market. Mutual fund exist for the purpose of spreading out risk. By their very nature they are designed to help increase overall portfolio returns while at the same time reducing overall risk to investment capital. The way this is achieved is to spread out the mutual funds overall portfolio into a number of different stocks. This diversification can help with risk reduction. People enjoy investing mutual funds because it allows them the opportunity to invest in a number of different companies all at the same time. It also allows for their money to be managed by a skilled professionals so that as individuals they do not have to do the decision making themselves. For these reasons it is easy to see why mutual funds have a very broad appeal and are one of the most popular investment opportunities available. Bear in mind that just because a mutual fund has done well in the past does not necessarily mean that they will continue to do well in the future. This is one of the challenges common to mutual funds.

Value Investing

Value investing is generally a broad definition of investing done by purchasing companies that have fundamentally sound value. In other words, a company that displays consistent earnings and offers a good value for the price of the shares offered would represent a company fitting into the category of a value investment. A number of fundamental investors organize their portfolios according to a value investing approach. Buying stocks that are of good value can represent a fundamentally sound investment strategy.

Bonds Investing

When you talk about bonds investing you generally think of safe and secure investments, and for good reason. Bonds generally represent one of the safest investments available. A bond is something like a promissory note. A company or government might issue a bond in order to raise funds for a particular project. When raising the funds, the entity will offer a bond containing a specific investment return which is to be repaid to the investor according to the term and length of the bond. It is something like lending money to a company and then giving you a specific return on your money. This can represent one of the safest forms of investments and likewise is popular for many people.

Commodities Investing

Commodities can represent one of the more confusing types of options available for investors. It is best to consult with skilled professionals and financial advisers when it comes to the topics of commodities. Commodities can be viewed as both a high risk opportunity as well as a safe and secure opportunity for financial returns. It depends on the approach first and foremost. Many investors view commodities as a hedge against their other investments-designed to provide a counter-cyclical approach to investing that can help diversify overall risk and returns.

Consult With An Advisor

Consulting with the skilled investment adviser is one of the best options that any investor can take before allocating their money. It is a good idea to diversify, but if the diversification is done without a systematic game plan than the results can be less than spectacular. A solid game plan, rolled out over a long period of time can be one of the best approach is to systematic, long-term investing that will yield fruitful financial returns. Long-term investing should be the goal of almost every investor looking to double and triple their capital in the years ahead. Begin first by talking with your investment adviser about a systematic game plan for your investment blueprint.

For more great tips and expert advice on investing for a bright and secure future, please visit us at http://www.elementaryinvesting.com.

The Market is telling us something very important. Are you listening?

Investors who choose not to listen will pay the ultimate price. No, not with their life, even worse. They are becoming indentured servants to their ‘day-job’.

A major crack has been exposed from the manipulation of the Fed & Congress. This is very serious stuff. This is the type of stuff that brings people into the streets. And it all is happening right now.

Take a look at this price chart of US State Debt. It’s falling off a cliff.

This picture clearly shows that people are abandoning state debt by the billions because they are very concerned with what is happening.

This price chart for “MUB” (National Municipal Bond Fund – the largest exchange traded fund in the US) is dropping rapidly because the majority of what is inside this dying monster is state debt.

So what secrets is this chart telling us?

The States are in bad shape. One of two things is baked into the cake for sure:

1) There will be a state that defaults on its debt, or

2) The US Government is going to have to bail out a

handful of states (they may be doing it already).

Prudent investors and investors who thought they were being conservative are losing their futures.

What you are looking at was the second safest investment in the world, US Municipal Bonds (US government bonds debt being the first – please no laughter).

Something seriously wrong is going on and it appears that no one is paying attention or even noticing.

What this price chart of Municipal Debt is saying is that there are going to be some state defaults. Europe has Greece, Ireland, Portugal, Spain, Italy and Belgium. And the US has California, Nevada, Illinois, New York and New Jersey.

What worries me most is that risky behavior is being promoted by the Fed, the Treasury, the Congress and the Executive Office. They all want Investors to buy stocks so people can feel marginally richer. But we don’t as a country [feel richer] because only the top 10% of the country owns stocks.

And while the government wants you to buy risky stocks they are penalizing any safe, prudent behaviors like saving money, buying bonds and paying down your house. Why else would the government have lowered interest rates to zero or close to zero on your savings, CDs and bonds…not to mention the trillions in dollars that they have printed?

They (the US government) clearly want Americans to spend, trade and speculate their futures. And to what end? So the banks can be whole again?

So what is the end-game?

Where does this all lead?

How does this end?

Who gets hurt the worst…or the least.

These are questions I answer every month in my Insiders Club gatherings. And for those of you that have not been to one I will answer this question tomorrow in my follow up to this posting.

And if you know investors who choose to “weather the storm” forward this to them so they’ve at least been warned.

Speak with you in a couple days with part 2.

Together, we are growing and protecting your wealth,

RC Peck

PS – There are four algorithms that my clients have been using to avoid Wall Street’s toxic actions for the past decade. From signaling investors to buy gold and silver in 2004 to signaling 401(k)s to go to cash before the market plummeted in 2008, combine them or keep them separate and you have a straightforward system that clearly signals when and where to buy. Proven Investment Algorithms.

RC Peck, CFP®
Fearless Wealth | Investment Independence
Helping Individuals Reach Financial Independence Sooner, Faster, Safer.
http://www.FearlessWealth.com.

The 30 Day Financial Turn Around Starts Here
Do you want your portfolio to be in the top.1% of all money managers by doing less? Skeptical?
Good…you are in great company. http://www.FearlessWealth.com/30-Day-Turnaround

Long considered to be one of the most stable outlets to invest in, the health care field is not going away anytime soon. In fact, investing in health insurance companies might be one of the safest ways to spend your money at the moment, because of the recent government overhaul of the health care system that will now require everyone to carry it. This combined with the rapidly aging population means that health care companies are going to see an unprecedented demand for business.

Before the new regulations take hold, it is a good idea to get in on the process of investing in this type of insurance companies right away. However, before you put your money anywhere, it’s a good idea to first think about how this kind of investing works, and what the potential for profit really is. There are several different types of these companies at the moment, ranging from completely privately owned businesses to those that are run on government funds, such as Medicare or Medicaid. These will carry different pros and cons for investors.

For example, the government subsidized companies are more stable, because they are boosted with government funds. This is one of the safest investments you can make, akin to investing in government bonds. However, to see any real payoff when you are investing in health insurance companies owned by the government, you are going to have to wait for many years. For those looking for a quick payoff or even one that is without a doubt profitable, this may not be the best type of investment.

In those cases, you could take a look at investing in insurance companies that are private. These can be better investments for those looking for a fast payoff amount, and they offer a wider variety of different type of companies to invest in, which makes the process more exciting to some. There are companies that specialize in offering individual plans, or those that work on group plans, with a large umbrella of different health care providers. Because there are so many different options in terms of the types of health insurance companies out there, it’s a good idea to first make sure that you understand how the company is run, and what growth patterns have looked like in the past before spending any money. This will yield the greatest payoffs in the long run, with a bit of research.For more information on investing in investment opportunities usually or normally not found in the marketplace, click here!

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

Individuals seeking to invest may learn a great deal of the basics from discount brokers. More advanced traders should probably consult experts for help. However, educational portals on discount broker websites will provide a wealth of information regarding investing. Through online centers, beginning investors may find a wealth of information regarding mutual funds, exchange traded funds, bonds, CDs and other investment options.

While the information is not in depth, some discount trading brokers will not only teach you about investing, but also how to use the online tools to make educated decisions about investing. These tools allow individuals to invest based upon research rather than feelings. We will explore some of the basics that may be taught through an online discount broker in this article.

Mutual Funds

A mutual fund consists of a diverse group of top performing investments that include stocks, bonds and other securities. Each investor will purchase shares of the mutual funds based upon its past performance. This is typically a safe investment. As long as the gains outweigh the losses, investors will receive a profit. These types of funds are desirable for investors who lack the time to develop a diverse portfolio as is recommended when investing. Individuals who invest in mutual funds will all receive a portion of the capital gains from the fund. Therefore, the investor will not be alone in the chosen investment. The fees associated with acquiring mutual funds are usually higher than stocks.

Exchange Traded Funds

Exchange Traded Funds (ETFs) may be traded like a stock. However, they are more akin to an index fund. They may be purchased or sold at any time of the day. Their prices fluctuate throughout the day similar to stock prices. A broker’s assistance is typically a requirement for the purchase of an ETF. Investors prefer these types of investments because of their tax benefits. Since no capital gains will be acquired from the fund, individuals are not responsible for capital gains taxes.

Many of the ETFs span the entire S&P 500 index. Therefore, investors receive optimal portfolio diversification. Investors prefer ETFs because they have lower maintenance fees than other investments. There are also no minimum investments required to purchase an ETF.

Stocks

Stocks are one of the most volatile investments and will yield the most return on investment over time. When stocks rise in value, investors profit from the rise of the price. Investors are paid a portion of the company’s earnings when they buy shares of the stock and the company earns. Some investors tend to invest in stocks that have performed well historically. Other individuals invest in stocks that have the potential to perform well. These stocks often will exhibit the largest gains over time.

Bonds

Fixed income securities, such as bonds, are designed to generate a steady payment throughout the investment. Investors will receive a fixed periodic payment from a bond or a Certificate of Deposit (CD). Bonds are ways to raise capital through government issues IOUs. Bonds promise the investor a particular payment of interest on a particular date. At the maturation date of the bond, the investor will receive the specified amount of interest on the amount invested.

For instance, if an investor invests $3000 at an interest rate of 10%, he or she can expect to receive $300 per year annually until the bond reaches maturation. Bonds are among the safest investments of any of the options. Individuals can invest in U.S. Treasuries, municipal bonds, agency bonds or corporate bonds if they are seeking a fixed income investment.

Summary

These investment options are just a few of the strategies that discount brokers will discuss. In addition, investors will learn about charts, graphs and other tools that are available to determine entry points into the market and exit points out of the market. Investors may learn about Candlestick Charts, Bar Graphs, Fibonacci indicators and other predictors of security behaviors within the market. Investors will also learn the essentials of using these charts to predict when the price of the security will change in either direction. Mathematical calculations, as well as, algorithms are incorporated into these tools to give precise predictions of the performance of securities. Some companies will offer simulations to try several techniques before using them in an actual scenario.

Gracie Hyde writes out of New York about different personal finance tips, including how to find the best discount brokers online. Always looking for the most favorable investing options, she tends to end up planning her finances at http://www.firstrade.com/public/en_us/pricing/ more often than not.

With all of the volatility in the economy these days, many people are questioning what the safest investment strategy is. If this is a concern for you, then you might have already considered mutual funds, stocks, gold and several other strategies. Yet, how do you know which investment strategy to put your money in so that it will not only be safe but that it will grow? In this article, I’ll be covering some of my favorite investment strategies and how they can help you in increasing personal wealth and building financial security.

Two Evergreen Investment Strategies

By far the “safest” place to put your money is in an investment that you have control over. This is a scary thought for some of us. However, it’s even scarier to have no certainty or sense of control when your investments aren’t doing well. That said, I believe that one of the most certain places that you can invest your money is in building your own business. Sure, you can invest your money in stocks and mutual funds and invest in someone else’s business.

However, why do that when you could be investing in something which you have control over and which is 100% directed towards adding value for you. For example, if you own a marketing company and you invest money into a new project management or ERP software which allows you to keep better track of your resources, then you’re increasing your chances at earning more money. You’re also making it easier for you to run your business and therefore eliminating a lot of the stress from your life.

Not to mention that you’re probably buying more time for yourself and thus creating more opportunity to do the things which you really enjoy. So the additional benefits of investing in your own business go far beyond financial freedom.

The second investment strategy which is most secure is investment in real estate. As long as human beings are occupying buildings, real estate will be valuable. Sure, the prices of housing will fluctuate, but buying and selling isn’t the only strategy when it comes to real estate investing. Not to mention that the possibility of your real estate dropping all the way to zero value is unheard of.

Provided that you do your homework about real estate investments, you can build a VERY secure net worth by purchasing real estate and either selling it for a profit or renting it for residual monthly income. Real estate investing and investing in your own business are rock solid strategies which you can pretty much count on in any economy. Of course, it’s important that you apply these strategies wisely, but that’s the case with any investment strategy.

Much success in your investing!

There is more…Click here to receive your free ebook on Personal Wealth Building and learn more…

Investing may be too big a word especially for beginners, but it should not be a problem if one is really prepared to venture into it. Like any kind of endeavor that people get into, investing has its risks. Unless you don’t get the right information you might end up losing everything you have invested in.

To avoid this from happening, here are a few tips on investing for beginners to help them get on the right track:
1. Keep an emergency fund. Anticipate potential financial problems. Building a stock portfolio may take a lifetime and if you don’t have enough insurance it could deplete faster than you could imagine. Put away a reasonable amount of money in a safe or bank account for short-term cash needs.

2. Establish a budget. This is important because through budgeting you will be able to keep tabs on your incomes and moderate your expenses. If you don’t budget your finances, then you will probably fail as an investor.

3. Know your economics. One of the reasons why many investors lost a lot of money is simply because they don’t have basic knowledge on economics. To make investing for beginners to better grasp, they should read up on economics and understand its concepts.

4. Research on investing. Just like knowing your basic economics, you should also know where you are going to in investing. People who read more know more and therefore gain more advantage.

5. Follow your own instinct. In stock investing, for instance, going with the flow does not usually work. Investors who invest in stocks that all the others don’t invest in are the ones who usually make a fortune. Nonetheless, a good and extensive researching still goes a long way.

There are countless potentials on investing for beginners, but they can hit the right mark just by making the right decision. It may be easier said than done, but with these basic guides in mind amateur investors could already make a fresh start in investing.

Trends in this kind of venture are unpredictable but just to test the waters so to speak, a newbie can invest first in what they call “bonds”. But what are bonds really?

Bonds are debt securities. The issuer of these owes the holders a debt and is compelled to pay the interest and/or to repay the principal at a later date depending on the terms laid.

What are bonds? They are less volatile than stocks and it is for this reason that they are generally perceived as safer investments.

There are four basic kinds of bonds, depending on who is selling them. These are the federal government, other government agencies, corporations and lastly, state and local governments.

Of these four, bonds being sold by the federal government or government savings bonds are probably the safest investments because they have lower interest rates than corporations. Also, government savings bonds are free of state and local taxes on the interest they pay.

Moreover, government savings bonds are savings bonds that are guaranteed by the federal government itself.

There are two kinds of savings bonds: I bonds and EE bonds. Originally, savings bonds were created to finance the involvement of the US in the First World War. They are bonds that are non-market securities. This means that savings bonds can not be bought and sold in the bond market.

Whether to invest in bonds or in any other kinds of investments, it is needless to say that the key component is discipline. As mentioned earlier, trends in investing are never predictable. Maintaining a disciplined approach to cope with these erratic changes will ensure a long-term success in your investments.

Danial Harris manages and writes for a personal growth website, http://SuccessESource.com. For more articles about investing, please visit SuccessEsource.com.

As the UK heads into a period of extended inflation, low interest rates and volatile stock markets, investors are looking for safe investments to preserve and grow capital. Many investors are turning to gold as prices continue to rise due to an increasing demand from investors, but more savvy money men consider farmland to be the safest investment in 2010 as demand for food continues to rise and a severe shortage on the supply side continues to push up prices and create safer investment returns.

Farmland is considering a safe investment as it is a renewable resource, constantly reproducing the commodities that the population needs – food! Therefore consistently generating an income for landowners and retaining its value, especially in times of inflation.

The value of agricultural land in the UK has risen by 13% for the first six months of 2010, and by 19.7% for the twelve months to July according to the Knight Frank Farmland Index, the industry standard for measuring agricultural land values. In fact there has not been a single seven year period since records began, where farmland in the UK has not risen in value quicker than the rate of inflation, providing safe investment returns for landowners. The income generated from leasing good quality land to commercial farmers also goes some way to replacing the lost risk-free income on cash deposits due to such low interest rates.

There is always of course an element of risk, land values could fall for example, but as demand for food is rising at the fastest pace in history and the amount of land per person on the planet has halved from 0.42 hectares to 0.21 hectares, the next seven years is extremely unlikely to be the first time that agricultural land values will fall. There is also a risk that your farming tenant could default on his rent, but this risk is also minimal as agricultural occupancy rates in the UK are close to 100% year round.

So those investors looking for the safest investment possible should carefully consider whether a well-place agriculture investment in the form of good quality farmland will have a good fit for their portfolio, It would certainly provide growth and income and a very low risk profile.

To learn more about investing in agricultural land, or farmland as an inflation hedge, download the Agricultural Investment Guide at www.dgc-ai.com/btl-farmland

David Garner in Managing Partner at DGC Business Consulting – http://www.dgc-ai.com – a property investment boutique for high-net-worth investors. DGC specialise in sourcing off-market assets at deep discounts to valautions and design and deliver innovative low-risk pruchase and holding structures designed to minimise risk and maximise the potential for upside returns.