Investment Articles

With the world economy turning and tumbling and great business empires collapsing overnight, making an investment has become more risky than ever before. This fills the investors with anxiety and the consumers with fear, resulting in further economic recession. But there are several investment methods that remain relatively safe in spite of the conditions of the market.

Without a doubt treasury bonds remain as the safest investment method in a tough economy. Saving in fixed deposits is also a safe and reliable investment method even if the interest rates remain low.
Investing in gold and other precious metals like platinum and silver are also a good option. Even though the price of these metals tend to fluctuate over time, the turn over is generally good. In spite of all the technology, all world currencies are dependent on the value of gold, making it a very reliable investment method.

Investing in penny stocks, stocks which cost less than $5 is also a great option. Unlike investments in the normal stock market, investing in penny stocks is more suitable for times of recession because it requires less capital. Having the ability to hire a broker also offers the less experienced and less knowledgeable novice investors a chance to enter the market. However, an investment in penny stocks must be done with great care, because of the many penny stock scams that have been uncovered in recent years.

Another method to make the best of these recession times is to invest in real estate. With the prices of houses, apartments and land, as well as of building materials and labor costs falling, these times are ideal for investments in this sector.

With the right investment strategies you can use these bad times as an asset. If you can think ahead and make the best of today, your investment is sure to boom once the world economy turns better in the near future.

Many fantastic investment options like investing in penny stocks, gold and real estate are available to future investors in spite of the tough economic conditions.

The best mutual funds for 2010 and the best investment strategy for 2010 and beyond may not be the same mutual funds or investment strategy that worked in 2009. Here are some adjustments to consider in mutual funds and investment strategy going forward.

In considering in the best mutual funds to invest in and the best investment strategy for 2010 and beyond remember this: what shook the nation and the investment world in 2008 was not just another recession. It was a financial crisis. The economy improved and stock prices went up in 2009 through early 2010, but are our troubles behind us?

BEST MUTUAL FUNDS, STOCK CATEGORY… Be less concerned with the best mutual funds here and more concerned with how much money you have allocated to stocks in general. Your best investment strategy for 2010 and going forward: lighten up; don’t load up on stock funds. Don’t chase a market that has gone up 70% in little over a year. The large institutional investors have bid prices up, for at least two basic reasons. First, stock prices had fallen almost 60% by early March of 2009 and were over-sold (cheap). Second, big money managers had few other attractive alternatives with low interest rates making both bonds and money market securities less than attractive. Hence, the best investment strategy they could come up with for most of their money was to wade into the stock market.

Stay away from the more volatile and riskier stock funds that invest either domestically or abroad. Debt problems are in the spotlight in several areas of Europe, and there is fear that this contagion could spread. Emphasize high-quality stock funds of the large-cap equity-income variety that pay a respectable dividend in your portfolio. In the international stock fund area, go with high quality as well. One exception to avoiding volatility is that you may want to include some specialty stock funds, or those that invest contrary to the norm in your portfolio: like gold, real estate, natural resources funds or funds with a “contra” approach to investing. This will give you added diversification.

BEST MUTUAL FUNDS, BOND CATEGORY… The average investor in recent times has bought into bond funds in search of higher income and more safety than stock funds offer. Few seem to realize that this can be a risky proposition in today’s economy and interest rate environment. The best investment strategy for 2010 and into the future: avoid long term bonds and bond funds with average maturities of 10 years or more (that invest in longer term bonds). Interest rate risk is high, which simply means that when interest rates go up these bonds and funds will fall significantly in price (value). Bond funds with average maturities closer to 5 years will pay a reasonably attractive income with a whole lot less interest rate risk.

BEST MUTUAL FUNDS, MONEY MARKET CATEGORY… Money markets and the funds that invest there are paying next to nothing, but at least these are among the safest investments in the world. The best investment strategy for 2010 is NOT TO AVOID these funds. This interest rate situation is highly unusual and can not continue indefinitely. Our government has purposely moved to keep money market (short-term) rates low to stimulate growth in the economy. The problem is that with these rates near zero, what do they do to stimulate the economy the next time we see recession or worse? What happens when the rest of the world is no longer eager to buy our Treasury securities at historically low interest yields to finance our debt? Interest rates will go up, and so will money market fund yields.

The best mutual funds for 2010 in the money market category could be the tax-free versions, especially for those in higher tax brackets. Some of them are actually paying more than their taxable counterparts. Money market funds pay interest in the form of dividends, do not fluctuate in value, and are by far the safest of all fund categories. These funds do not have sales charges, but investors do pay for yearly expenses. Check and compare the expense ratios and yields before deciding on a money market fund.

BEST MUTUAL FUNDS, STOCK and BOND CATEGORIES… There is one best investment strategy for 2010 and beyond that can only work for you as an investor, and never fails to increase your profits and returns in mutual fund investing. The best mutual funds keep the cost of investing low. No-load funds have no sales charges and some of them have lower than average yearly expenses. Sales charges, expenses and fees come out of your pocket and only work against you. The very lowest cost of investing can be found in no-load index funds of both the stock and bond variety. Lower your cost of investing as part of your overall investment strategy.

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

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

There are many reasons why rare coins are better then stocks. But, I have found and pinpointed the top two reasons why rare coins are better. I feel that investing is useless if there is no potential in the investment. But many investments that have potential are usually riskier then other investments. So, even if an investment had potential, it may not be worth it if it was too volatile. This is where rare coin investments steps into the picture.

The first reason why coins are better then stocks is because of stability. There are many investment vehicles out there that can yield some hefty returns. But with all investments, the investor/investment manager has to weed out all the bad investments. They have to cut off as much risk as possible. If we look at coins, we can see that it is a very stable investment. Coins are not as volatile as stocks. It doesn’t go up and down by the minute. Its’ movements are a lot slower then stocks, but their movements are very predictable. The predictability is what makes it more stable. Because we know when it goes up and down, we can make confident decisions without risk or heavy losses. I don’t think we can find any other investment that is more stable then coins.

There is an inverse relationship between risk and returns. The returns tend to be lower when you cut off the risks. Some of the safest investments aren’t really worth it anymore because of their low returns. To counter this, investors usually diversify their portfolios. This allows them to cut off risk while improving their returns. But, with stocks, you have to buy enough of each stock to profit. And, you have to buy a lot of many different stocks to diversify. This is extremely costly and messy. With coins, you can buy just about any investment coin you like. You can easily diversify your portfolio by buying a different coin specimen each time you buy a coin. Your returns are never cut short, and you never lay too many eggs in one basket.

The second reason why coins are better then stocks is potential. The right coin never stops going up in value. This has been proven (so far) in historical coin reports. It’s not like stocks where they can stop going up in value. And then the company has to split their stocks so that it can continually go up in value. But, if the CEO doesn’t know when to do this, or does this at the wrong time, the stock may never make anymore sizeable gains. Furthermore, regardless if the stock splits or not, it doesn’t mean that the stock will continually rise in value. The stock can easily go down in value because of bad or false news. And after this, the stock may take forever to recover. Or worse yet, it may never recover at all. Coins on the other hand, can never lose their value because of bad news. Their performance depends mainly on supply and demand. And with the ever diminishing supply, some coins never see a down turn because of weakened demand. At the very most, they might stay stagnant for a short period of time. They will continue to rise again after demand strengthens.

The unique characteristics of rare coins makes it the perfect investment. Furthermore, I don’t think there is any other investment that can be diversified any further then coins. You could buy one example of each investment coin and never run out of coins to buy. It’s ultra safe, it yields extremely high returns, and its’ diversification easiness makes it an investor’s dream. If you have not looked into coins before, now is the time to do so.

To learn more about rare coin investments, please visit http://coinprofits.com

Having the correct investment is the secret to wealth. If you’re in the stock market at the wrong time, you can lose your shirt. The one investment which stands up to the test of time is Gold. Gold is really the best safe haven during times of financial and economic crises because it doesn’t have any counter party risk.

Gold bullion is a form of pure gold which has been refined, weighed and stamped. Various weights and sizes are available. Typically the smallest size is 1 gram and the largest is 400 troy ounces. The largest owners of gold are governments and central banks which hold the 400 ounce ingots.

Gold coins have been around for a very long time. From 2700 BC the first historic gold coins were coined by Egyptian Pharaohs. The ancient Romans and ancient Greeks used gold coins. Gold has been used as money much longer than any type of paper currency. The older gold coins had less gold in them and the newer gold coins are made of.999 pure gold.

You can buy gold from mints, precious metals dealers, coin shops, auctions and various large brokerage firms. Some brokerage firms charge a large markup and sometimes you can find good bargains from individual sellers. The most important thing is finding a reputable dealer or seller who can be trusted. You will want to make sure that the dealer has and abundance of product in stock and will ship it to you fast. Find out how long the dealer or seller has been in business. If you buy from an auction site, make sure the seller has excellent feedback usually above 95%.

Investing in precious metals such as ingot gold bars or coins are one of the oldest and safest investments. If you find that you currently have risky investments, why not invest in real money which can be seen, touched and stored. Holding physical gold gives you a certain amount of control over your future without having to worry about the faith, credit or counter party risk of another.

Mark Ralph is an Expert in Investing, Marketing & Business. He is a prolific author on the web and the Founder and President of a Consulting & Marketing Firm. For Precious Metals, click: http://www.WholesaleBullion.com and For a variety of Discount Gold Bullion http://www.PreciousMetals-Gold.com is your top source for Precious Metals.

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

Definition

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

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

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

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

Benefits

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

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

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

Calculate Worth

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

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

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

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

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

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

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

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

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

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

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

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

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

Don’t go overboard chasing today’s best investment. In 2009 stocks and gold were at the top of the hit parade. In 2010 they may not even be good investments. In your search for the best investment stand back and take a good look at the landscape. Soon it’s likely to change so pay attention, especially if you are a new investor.

When 2009 began your best investment might have taken the form of doing all you could to keep your job and mortgage afloat. In March the stock market ignited and skyrocketed 60% in a matter of months. And once again gold was being touted as the world’s best investment.

As a new year approaches investors need to reflect on the past when looking forward; and especially the new investor needs to ask questions. Why were stocks and gold such good investments? Will the trends continue, and what could happen that might turn things around? The year 2009 was unique.

Money was cheap and the dollar weakened significantly vs. other major currencies. Investors couldn’t earn significant interest on safe investments. Profits were enhanced for major U.S. corporations doing business abroad as earnings were translated from foreign currencies to dollars. The price of gold rose on the back of the weak dollar, since its price is quoted in dollars per ounce.

Both gold and the stock market were good investments, at least in part due to a falling dollar. Investors were relieved when it appeared that the worst of the financial crisis was over, so they took cheap dollars and bought riskier investments pushing the stock market and gold prices higher. After all, the safest investment in the world (the U.S. T-bill) was paying much less than 1%.

It is unusual when the stock market goes up over 50% in a matter of months; and unusual when gold soars at the same time. It is also unlikely, in my opinion that both trends continue throughout next year. Stocks could be derailed by rising interest rates, a weaker than anticipated economy, lower corporate profits and/or a relapse of financial crisis.

Gold is being advertised as the best investment in the world, again. The new investor might not realize it, but this has happened more than a couple of times since the early 1970’s. The upward trend in this precious metal has never had staying power. A stronger economy and dollar could take the floor out from under all that glitters.

One thing won’t change next year. Your best investment will be a balanced portfolio of good investments coupled with a sound investment strategy. Instead of chasing this year’s best investment categories, lighten up on them… rebalance your portfolio.

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

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

After such a tumultuous year for investors it can be helpful to come back to some basic principles.

Here are five do’s along with five don’ts that we believe are good advice at any time, but especially in the aftermath of the global financial crisis.

Let’s start with the Do’s.

1. Be cautious. Having a conservative bias makes mathematical sense. If you lose 50 percent of your capital you need to earn 100% to get back to square one. This most basic mathematical fact is justification enough for a cautious bias when investing. It is better to miss out on some upside in order to protect your capital against downside.

2. Have realistic return expectations. Over the long haul fixed income investments like deposits and bonds will return between 4% and 7%, while property and shares have averaged returns of 7% to 10% a year.

A balanced portfolio, depending on the mix of assets, might therefore be expected to deliver a return of 6% to 8% a year. After tax and inflation are deducted this return may translate into a real net return of 2% to 3% a year. Not only do returns tend to be lower than people expect, they also often end up being more volatile. Expect returns to be up and down, sometimes dramatically so. Market volatility is an unavoidable part of investing.

3. Diversify. The best way to avoid financial disaster is diversification. A wide spread of high quality investments across sectors, markets and assets is the most effective way of reducing risk. Diversify across time as well. Investing in instalments is a great way of protecting against mis-timing and buying just before a market fall.

4. Invest for income. Owning investments that pay you to own them makes sense. Bond, property and shares all produce income. Capital growth is important, but it usually follows income growth. Buy for income and growth should follow.

5. Take a disciplined approach. Setting some rules around how you will invest your portfolio, such as how much you will invest in riskier options like shares and property and how many you will look to own, is worth the effort. It gives you a roadmap on how to invest your portfolio.

And five don’ts.

1. Don’t ignore inflation. Even if inflation stays at around 2%, it still takes 10% off the spending power of your capital every 5 years. Inflation is every investor’s enemy number one. Over the long term real assets such as property and shares have proven the best protection against inflation.

2. Don’t rely on market forecasts. Humans cannot predict markets with any consistent degree of accuracy. Don’t put too much faith in them. We should spend more time ensuring our portfolios are well diversified than on trying to predict market movements.

3. Don’t buy and hold. Invest for the long term and with the intention of holding your investments for many years but, if things change, be prepared to review and alter your portfolio accordingly.

4. Don’t fall for options that appear too good to be true. At present, the return on a New Zealand government bond, the safest investment of them all, is around 5%. If you want no risk, this is the return you have to accept. Achieving any return above this level will involve taking a degree of risk. And the higher the return you aim for, the more risk you have to take. No exceptions.

5. Don’t invest in anything you don’t understand. If you find yourself struggling to understand an investment it can pay to give it a wide berth. Or at least, invest only a small amount until you learn more and get more comfortable with it.

Craigs Investment Partners Limited (formerly ABN Amro Craigs.) is an NZX Firm that was established in 1984. It is one of New Zealand’s largest and most established investment advisory firms.

Craigs Investment Partners is 100% owned by certain staff and close business associates. Services offered include: Sharebroking, Portfolio Strategy and Management, Retirement Planning and Superannuation, Investment Advisory, Custodial Services, Foreign Exchange, Asset Allocation, Cash Management, Portfolio Lending, Research and such other services as introduced from time to time by Craigs. http://www.craigsip.com/

Even though investments in real estate, stocks, bonds, etc help in earning good money, people are more interested in investing their money in precious metals. Why? The answer is pretty simple; investing in precious metals gives them much wanted security over any other type of investment. One can invest in precious metals online as well thereby reducing the stress value and save on time.

One should also keep in mind that like other investment schemes even investing in precious metals does not assure you that is the safest investment option. Commodities like gold and silver have been used as a form of currency since thousands of years and it goes without saying that in the future also its value is surely going to be worth investing and earning profits.

The past few years have seen a steep rise in the interest of the people who are increasingly investing in precious metals. The requirement of silver is increasing day by day. As the technology industry is advancing with production of new computers and cell phones which require silver in its manufacturing process, one can easily understand how silver’s value is going to rise soon. Hence, more and more investors are wisely investing their money in silver.

Even though recession and bad economy has severely affected our lives, people have now become smarter in handling their finances and doing investments. Investing on stocks of big companies is also not looking as safe bet and investors are always worried about suffering from loss. Hence, now we should be sensible in our investments and think about future as to what we should do to make sure that our investments don’t go kaput.

Many people have wrong inclination that investing in precious metals is only meant for rich people. If you are financially independent and hope to remain safe when another economy crisis strikes in the future, think wise and start investing on precious metals. Hence, people belonging to the middle class category or the ones who do not even make it the middle class category can start off by putting money in high value coins.

As I said before, like other modes of investment even investing in precious metals does not guarantee you freedom from risk. One of the safest ways of making online is two tier affiliate marketing that involves no risk at all. Selling products and services of an online company through website will help you earn money on commission basis plus you can also earn money through the sales that other sub-affiliates make when they join the program under you.

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Anyone thinking about investing has to ask themselves, “How much money do I need to start investing?” The answer to that is simple and complicated at the same time. Before you can answer that question you have to ask yourself how much you know about investing. If you are planning on using your hard earned money to finance your investments, it is important that you know how to invest.

If you are on a small budget and want to keeps the risk factor as low as possible you are going to have to accept a smaller gain on each investment. Some of the safest investments are CDs and Money Market Funds. Many banks sell CDs at less than $1,000 and you will get a return of about twice the rate of a regular savings account. Most Money Market funds require at least $1,000 and will add another few percent interest to that of a CD.

Mutual Funds are another option. There are some mutual fund companies that will accept clients into the fund for as little as $500 but they are rare. Most require a minimum initial investment of $1,000 and many want $10,000. Mutual Funds come with different risk levels, depending on the type of fund that you enroll in and the investment style of the funds manager. As always with higher risk, comes a higher potential gain.

If you find that you don’t have enough money yet for one of these options start saving just a few dollars a month until you get enough to start at the with CDs and use the interest accumulated from them to step up as time goes by. You don’t have to start dumping money into the stock market at first. Build your portfolio incrementally and soon you will have a well diversified selection of investments that will build you invest strategy into a solid portfolio with a strong foundation.

But if you can afford to invest $1,000 a month and still meet your other obligation, don’t hesitate. Just make sure to balance your investing and living a healthy lifestyle.

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