Investment Articles

Most investment strategies pitch somewhere upon the continuum between a high risk / high return approach on the one end and a low risk / low return approach on the other. The problem with pursuing high investment returns, is that the capital value of investments may decrease in the short term before they increase again. The problem with conservative low-return investments is that the real value of capital may over time decrease due to inflation.

The art of investing lies in finding the approach that suits you personally best. One should on the one hand try to maximise the return on capital, but at a risk level that is acceptable to you. The question is what is regarded as acceptable risk and, is the acceptability a constant factor that stays the same under any circumstances? The answer is no. More risk is acceptable under certain circumstances, but before these circumstances are discussed, it is necessary to discuss the following terms that will be used, that are often confused:

Saving

Saving is the action of putting money aside. It means that money is not spend, but is kept at the owners disposal.

Investing

Investing means that money is handed over to a third party for purchasing assets with the purpose of long term investment growth. Investors transfer the their funds with the intention that financial assets like shares and bonds or hard assets like diamonds are bought. Investing does not mean to hand money over to dubious schemes.

Gambling

To gamble is normally understood as “to play a game for money or other stakes” like putting money on a roulette wheel or buying a lotto ticket. It can also mean to buy a share that you know nothing about or investing in a scheme you don’t understand.

Marketers of illegal schemes use the word “investing” to lure people to hand their money over to them. Initially, when “investors” receive high payouts, they think the scheme is the best investment thinkable. The fact that it has nothing to do with investment, only dawns on them when they lost all their money and it is to late to recover anything.

Speculation

Speculation means that a calculated risk are taken to make money on a relatively short term. One may for instance buy property with the purpose to sell it in a year or two at a higher price. The price of the property may not rise, but at least you have done sufficient homework to make sure that there is a high probability that it will rise.

Now that we are sure about the terms, we can look at the circumstances under which a higher risk may be appropriate.

Surplus income: The higher your surplus income, the higher the risk you should be able to handle in investing money.
Frequency of investment To invest a certain amount regularly, holds less risk than to invest a single amount at once.
Amount: If the amount you want to invest, is a small percentage of your total capital, you can accept greater risk.
Term: Greater risk can be handled with longer investment terms. Young people can therefore accept greater risk, but if the term of their financial objectives is shorter, investment portfolios should be structured less risky.
Income: If you receive an income from your investment, it should be structured more conservative with less risk. If you are not receiving an income at the moment, but plan to do so in future, you can decide to pursue a higher return till you need the income. When this happens, the investment could be restructured to reflect the new situation.
Investment experience: Investors with little investment experience should be more wary against risk than investors with lots of experience in this regard.
Dependants: Investors with more dependents should be more wary towards risk than those with few dependants.
Health: Healthy investors can handle more risk than unhealthy investors.
Diversification: An investor that already has a well diversified investment portfolio, can accept greater risk with new investments than investors with undiversified portfolios.
Timing: Share investments are normally more risky than some other investments. Investment risk can however be reduced if shares are bought when the economic cycle is on it’s lowest. Risk can also be lowered if investors buy shares of strong well established companies with little debt and healthy balance sheets.
Emotional tolerance:Some people loves the adrenaline rush in going for high returns, with no regard to the risk. They are emotionally capable of doing it this way. For other, it is a nightmare if their investment fall by a single percentage point. One should therefore know how you will respond to sudden capital depreciation.

Summary

One’s view on risk forms an extremely important element in investment planning. It is as irresponsible to take unnecessary risks as it is to be satisfied with a low return on your money. However, to pursue higher return, goes with the responsibility to research the investment opportunity thoroughly before parting with your money.

Dr. Manus J. Moolman is the CEO of My Wealth and has done extensive research on investing strategies. My Wealth is dedicated to advising anyone from average every people to professionals to choose the best investment for their risk profile.

Want to contact us? Visit our website at: http://www.myebroker.info/

Warren Buffett, a popular investor and one of the world’s wealthiest people once said: “Someone’s sitting in the shade today because someone planted a tree a long time ago.”

And you can have your spot under the shade too – through careful and prolific investments.

Though the current economic conditions may still seem unstable, the benefits of investing rings true in any market, and in any time.

Making investments means putting your money in something that would make it grow. Simply put, it’s also equivalent to making your hard-earned money work for you. Unlike saving your money in a bank, investing is focused more on getting returns.

Starting to invest though, is more than just about having the money. It is not just about knowing where to concentrate investing either.

First and foremost, it is about strategizing. Know what your objectives are – is it for education, retirement or business? According to Robert Kiyosaki, it can also be for three reasons: to be secure, to be comfortable, or to be rich. Whichever it is, your objectives would be your primary guide in building your investment portfolio.

Investing is not about random allocations or deciding based on popularity lists. You should choose your investments carefully, and go specifically with what works for your financial goals. Warren Buffett’s investment portfolio isn’t exactly what you would call an ‘all-star cast’, but it works really well for him.

Remember as well that when you invest your money, you look at it as being a part-owner of a company. You become part of its development and you benefit from its growth. Understand as well, that the world’s top investors didn’t get rich just by putting some money aside to let it multiply. Monitor your investments, and analyze their movements.

Investing is also about timing, and taking calculated risks. There may be instances that you have to hold off on putting in more money into an investment or you may have to completely let go (selling) of it. Either way, these are part and parcel of the process of investing.

And in comparison to savings accounts, your diversified investments offer both short and long-term financial benefits. It gives you the security of having an ‘emergency fund’ that you can take out of when necessary, and still maintain growth. It also allows you to widen your horizon when it comes to future plans.

More importantly investing also helps you lay a solid foundation for your family’s financial stability, and a comfortable retirement for yourself.

Sharlene Mercier of SoHo Realty is a licensed real estate professional with over a decade of experience, who’s dedicated to guiding you through the real estate process.

For more information, please visit our website at http://www.sohorealty.net

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.

Investing is such a complicated field that there are literally tens of thousands of books written on the subject. Investing can be quite difficult, depending on the strategy, though it and can also be simple and straightforward if done properly. One of the best pieces of investment advice ever given is to diversify your portfolio into several different investment vehicles. This can help you spread out the risk and achieve a steady return on your investment capital. This is the goal of most investors. This type of investing can be categorized broadly as value investing and with a diversified investment strategy that holds a goal of long term positive returns.

Value Investing
On the whole, value investing is generally defined as investing that focuses on buying investments that have good value. This is a fundamentally safe and secure type of investment strategy. The goal is for steady appreciation and consistent yields on capital invested. Value investing is a fundamental and lies at the base of a solid financial investment plan. Buying investments because they are a good value is a mark of a solid investment plan. If you buy companies because they are good value, then chances are you will be in a position to enjoy capital appreciation in the years to come.

Stock Market Investing
Stock market investing is one of the fundamentals of value investing. By diversifying investments into the stock market it is possible to spread out investment funds into a wide variety of different companies and their stocks. It is certainly very difficult to choose specific stocks that are going to go up in value immensely in the years to come. The Walmart-like stocks are few and far between and taking them at their outset is almost impossible. This certainly does not mean that you should not try. Buying fundamentally sound stock market investments can be a goal and ticket to a fruitful financial future ahead.

Penny Stock Investments
Penny stocks are those that bear their own name. These stocks are often valued very lowly and the costs are often quite low-often times ranging from a few pennies per share up to a couple dollars per share at the most. Some investors believe that there is great potential return in penny stock investments because you can buy for such a low cost a large amount of shares and if there is any appreciation in value this year value will likewise increase. An increase in the share value will yield an increase in the investment return as well.

Bonds Investing
Bonds are another core element of a diversified investment strategy. Bonds typically have slow and steady growth patterns and consistent yields year after year. This makes them the ideal investment for slow and steady capital appreciation. There are several different types of bonds available ranging from government-backed bonds to higher risk corporate bonds. Bonds remain one of the best ways of diversifying a portfolio with safe and secure investment returns. Talk with an investment adviser about the different kinds of bond ratings and how the different types of bonds will play an important part in your overall investment portfolio.

Mutual Funds Investing
Mutual funds are yet another way of diversifying investment risk and return. Some mutual funds specialize in high risk/high yield type investments, while others mirror segments of the stock market (as in Spider Funds, which buy the exact companies that appear on certain stock indices). Mutual funds are run by a board of directors and a management team in most cases. These individuals have the responsibility of making the investment choices for the entire fund.

Mutual funds are traditionally one of the most popular investments options and routes to take. Mutual funds are easier to become involved with than almost any other investment. They are often times the starting place for investors who are looking to have the potential for return while also curving the risks in spreading out the potential downside. One of the challenges with mutual funds, however, is the fact that there are so many and they can be difficult to choose between them. Out of thousands of different mutual funds, finding one that meets your investment requirements can be tricky. It also should be noted that just because a mutual fund has done well in the past that does not mean that it will continue to do well in the future. Very few mutual funds maintain a steady track record over time.

Commodities Investing
Commodities are another option for a diversified investment portfolio. Commodities represent certain items like corn, oil, gold, silver, and other such natural items classified as commodities. Commodities can often be used as a ‘hedge’ investment and have a safe and secure track record. Investing in commodities should be done with the help of an experienced investment adviser only or with much experience under your belt. They are not typical investments and should not be viewed as ones that are as easy to invest in as bonds or mutual funds. Typically, commodities investments can be used as a counter-trend type of investment, or in other words, as a protection against loss when other types of investments seem to be falling. Commodities will typically hold their value contrary to the stock market as a whole.

All of these different types of investment options should be discussed with a qualified investment adviser or broker. To venture into these investments on your own can be dangerous. It should be mentioned that with any investment there is the potential for loss. Anytime you have the potential for substantial gain, likewise you have the potential for substantial loss. Some of these investments are more secure than others. You should discuss your options and your long-term strategy with your investment adviser to determine the best plan moving forward. You’ll want to create a diversified plan that creates a steady return while minimizing risks.

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

Most of what has been drilled into our heads about investing in mutual funds, CD’s paying down our mortgage and diversifying is nothing but smoke and mirrors. The financial services companies like Fidelity, Charles Schwab and financial planners are the ones making all of the money. The problem is that most people have very little financial education in order to invest for retirement properly so they hand over their money to someone they HOPE will have the right knowledge base to safely increase their wealth. The problem is that these investment types are HUGELY RISKY. These types of asset classes, paper assets, do not allow the investor control. Then during market crashes, all most can do is watch helplessly as their wealth gets whipped out along with their financial security. If you have more control over your assets then you are not affected as much by market crashes. For example, if you invest in assets like real estate that produce cash flow through rental income after all of your expenses are covered, if the real estate market and stock market crash you are still in great shape. While everything is crashing you are still receiving your rents and do not need to sell the asset. Investing in non-paper assets (i.e. not mutual funds or CD’s) allows you to use leverage as well which increases your wealth by making your money work harder for you. Most financial planners will tell you that using leverage increases risk. That is not always the case if you have the right financial knowledge to control the investment and enable safety controls on your leverage use.

They will also tell you that real estate is a risky investment. The reason for that is that financial planners typically lack the financial knowledge about how to control real estate and make it profitable. Most financial planners put people into paper assets where the investor does not have control and therefore it is hugely risky to use leverage. In real estate investments the value of the property should not be based on the “opinion” of an appraiser but on the income that it produces through rents. The value of the rental real estate is dependent on jobs, salaries, demographics, local industry, and supply and demand of affordable housing. In a housing crash, the demand for rental units often goes up, which means rents increase causing the value of your property to increase. You can control rental real estate and which geographic areas you invest in unlike paper assets that allow no controls. Financial intelligence is the key to increasing your controls over your investments. It’s extremely important to continue to increase your financial intelligence in order to protect yourself. Unfortunately, financial intelligence is not taught in schools because such a large portion of the population, including teachers and politicians do not have a very high financial IQ. When financial advisors say that an increase in returns means an increase in risk, they are right when speaking about the paper assets they recommend to investors that they make major commissions on BEFORE showing performance. They are wrong when speaking for all assets. Financial advisors are simply salespeople. Most people invest in paper assets such as savings, stocks, bonds, mutual funds and index funds because they do not want to take responsibility and control over their financial well being. All they want is to turn their money over to an investment advisor who hopefully does a good job. Out of sight, out of mind. If people want more control, the first thing they need to do is increase their financial intelligence and hopefully increase their financial controls and leverage ratios.

Most financial advisors recommend diversification but they do not really diversify. First they only invest your money in one asset class, paper assets. Second, mutual funds are already diversified investments which are invested in a pool of good and bad stocks which does not increase the value or decrease the risk of the investments. Professional investors DO NOT diversify. Warren Buffett put it perfectly when he said, “Diversification is a protection against ignorance. Diversification is not required if a person knows what they are doing.” So if diversification is a protection against ignorance then when you diversify whose ignorance are you protecting yourself from? Your ignorance and your financial advisors ignorance? Focus, not diversification, is the key to more sophisticated leverage, higher returns, and lower risk.

The point I am trying to make is that if you increase your financial intelligence about specific asset classes, like real estate, you will learn how to control your own financial security and wealth creation instead of relying on some financial advisor who probably does not know what they are doing. Look at the massive wealth transfer that just occurred when the market crashed while bailing out the banks (i.e. the top 1% wealthy individuals increased their wealth while the middle class and poor decreased in wealth). This happened because most people do not have the financial intelligence to protect themselves. Starting to get financially educated is the key to wealth creation. So get to the bookstore and start reading. Take classes on financial intelligence and ways to increase wealth. It is the key to your success and preserving your wealth so that financial predators (i.e. the government, financial advisors and the large mutual fund peddling companies like Fidelity and Charles Schwab) do not take all of your wealth away by investing it in asset classes that do not allow you any controls over those investments.

Owens Consulting Group founder Mathew Owens is a California licensed CPA and a full time real estate investor. Mathew has 8 years of experience working as a CPA, auditor and business advisor, and he has completed over 100 transactions in the past three years, representing approximately $10 million in real estate, most of which has been sold to cash flow investors. Read more of his blogs at http://ocgproperties.com

Gone are the days when people were content to invest in safe bank deposits and treasury bonds. With increased interest in investing in stock exchange shares, ETFs (Exchange Traded Funds), mutual funds and other types of financial investment instruments, an average investor is faced with a host of choices. Investment decisions can be confusing for an unseasoned investor. An investment advisor can help an individual to make informed investment decisions. By properly following the recommendations of the advisor an individual can secure optimal returns and capital appreciation over his or her savings.

Investment advisers are firms or individuals who give investment advice on personal or institutional finances. The advice can be in the form of choosing the best stocks for an investor to go long or short on, implementing strategies on when to go long, short or hold, suggesting on how to diversify the existing portfolio etc. These advisers are also well equipped to give recommendations on foreign investments.

There are two types of investment advisers – registered and unregistered. US investment advisers require to be registered with the Securities and Exchange Commission (SEC). They can even be registered with regulatory authorities in local states. Investment advisers offer fee based services. This specific industry is strictly regulated and covered by provisions in US law.

Role of Investment Advisors

Investments in securities – Advisers must give an investment scheme to clients before trading in securities. A good advisor informs the client on the best available choices to assemble in a stock portfolio. suggestion to hold on to shares or to exit the stock can also be given depending on the prevailing market conditions. Consultancy services like this are given to retail investors, individuals and even entities such as the mutual fund houses.

Putting the best interest of the client first – US Investment advisers have a fiduciary accountability. This means that they are required to put the interests of their clients above their own interests and make absolute that the client gets the supreme investment suggestion. It also means that if instances of conflict of interest in the case of advisers are shown, then the client can take legal action against the individual or the firm.

Safeguard clients’ assets and maintain records – An investment advisor is also accountable for maintaining records of all the client transactions. In such cases, the client needs to acquire a consolidated statement every three months. This statement shows the status of the assets as well as what transactions have taken place regarding the securities of the client.

Diversifying the portfolio – Diversified investment advisers can confirm that an investor’s assets are expand across different sectors and in several types of investments such as stocks, bonds and choice investments. An investment advisor can also serve to vary and look beyond local investments and look at investing in foreign stock markets or mutual funds. This means that if there is a collapse in one sector or one class of investment, only a portion of the portfolio is affected.

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Are you wondering at how people manage to save and build wealth in these taxing times? Or are you one of those individuals who try really hard however are never successful at wealth management. If yes, then you should try following these tips for strategic wealth management.

Every penny counts: Think twice before shopping spontaneously. Impulsive shopping sprees can burn a larger hole in your wallet than you actually think. Budget your spending and stick to it religiously. You will realize at the end of the year, how much you have saved by not indulging in shopping sprees.

Investment: There is nothing better than making your money work for you. Invest in diverse profiles with the help of individuals who help to build wealth. Diversified investments are recommended as they help to even out the risks. However always take an expert opinion before you plan to build wealth management profiles.

Retirement/ pension plans: Start investing in retirement plan or pension plans when you are in your late twenties. Earmarking your funds in such manner is a sure shot way to protect your income and have steady cash flow after your retirement.

Earn extra income: It is easy to earn few extra bucks by working online and you can definitely spend few hours everyday to this activity. Income earned through part time activities should be used as liquidity account. This means you use these funds only in dire circumstances.

Help your children save: Cultivate the habit of saving money in your children. This is the best method to build wealth in long run. Teach children the value of money and importance of savings and its long term benefits. Trust this helps you.

Sharmila Shetty is a freelance content writer and a training consultant.She has been with transformation & development vertical for last 6 years. She is avid blogger and you can read her thoughts at http://www.sharmilashetty-devilsworld.blogspot.com
You can contact her at sharmila08@gmail.com

The old adage that many of us have heard over the years of “Don’t put all of your eggs in one basket!” simply means diversification with regard to investing. So what exactly are the reasons that you should have a diversified investment portfolio?

Diversification means spreading your money in various different assets classes such as equities, property, bonds, and money markets. It also includes investing in international markets. But why is this important and does it still apply when these days most asset classes look to be such a basket case? Some reasons to diversify…

• Not all assets act in the same way and at the same time. Usually when shares are performing well bonds are not. There are times when this does not work but generally when interest rates are low shares are more popular. And we can see that gold has seen a rise in the current uncertain investment climate.

• Not all industries react to the same market conditions. In this instance think of two hypothetical companies. One is a winter investment selling rain umbrellas and the other sells sun screen lotion and tends to be a summer investment. During winter umbrellas sell well and during summer sun screen lotion is popular. Sales vary for each but if you were to put the two together you have the same average return and therefore reduce your risk.

• Investing in different geographical areas means you are not subject to the same natural disasters which will affect business differently. Take for example the recent Christchurch earthquake. Many businesses have struggled, having to close either due to damage of their premises or the effects of damage to the surrounding properties. Then again there will be a boom for builders in the months and years ahead as the city is rebuilt. There’s also the decline in property sales and values but those with undamaged investment property find their properties in demand as people look for rentals as their damaged homes are repaired.

• Investing all available money into finance companies was a bitter lesson for many New Zealanders who once saw these investments as a safe haven with a known rate of return. This was a lack of understanding of risk and unfortunately many placed all their funds in one company. Diversification within an asset class is also important to lower risk.

• During the Global financial crisis many moved away from equities and invested in cash. US Treasuries actually went up in the crisis showing that having them in your portfolio would have reduced your losses as they offset plunging markets. And who would have thought that some of the major US companies around before the crisis such as Citigroup would need bailing out.

While diversifying does not eliminate risk it does reduce your risk. Having a diversified investment portfolio still applies as a long-term strategy.

Lyn Bell has been in the finance industry for more than 30 years and is a Certified Financial Planner. She has helped many clients achieve their financial goals. Sign up to get Lyn’s free newsletter SoundFinance and receive a free gift.

A disclosure statement is available free on request.

If you feel clueless and don’t know how to invest for 2011 and beyond consider yourself a member of the majority. The truth is that it isn’t easy to invest and make money at it these days. Don’t give up the ship, because every-day people CAN invest with only moderate risk and keep things simple once they know some basic rules of the road and what type of investments to invest in.

If you’re smart enough to follow sports statistics or to compete in popular board games, you’re smart enough to learn how to invest in 2011 and the years that follow. Every game has its objectives, rules, and key elements you need to know in order to win. The world of investments and investing is no different. Most people don’t know how to invest simply because they’ve never been pointed in the right direction or taught the key elements of the investing game.

In the 1990s it was easy to invest and make good investment returns. You could simply buy stocks and hold on and you were good to go for a decade. Then for 10 years the markets got tough and people who didn’t really have a solid handle on how to invest lost money, especially in the stock market. While planning for 2011, millions of investors were still waiting to break even after the real estate and stock debacle of 2007 to 2009.

With interest rates near record lows and a sluggish economy, no investment these days clearly stands out as the best bet or a sure thing. To succeed as an investor now you’ll need to learn how to invest for 2011 and beyond by diversifying across asset classes to keep your risk moderate. Diversification or balance is the key element to success in uncertain times in the game of investing. The good news is that achieving it and winning in the process is easier than you might think.

You don’t need to know how to invest and pick stocks in the stock market, how to analyze bond issues, or where to find the best interest rates in order to make money as an investor today. You can simplify things by putting together your own diversified investment portfolio by investing in mutual funds where professionals do the day to day management for you. Diversification is the signature of these investor-friendly investment packages, that are actually designed with the average (or even clueless) investor in mind. Once you get familiar with the companies that offer funds and learn the process of how to invest in them, you’ll have all the investment options you need in the form of stock funds, bond funds, and money market funds.

The key to investing for people who don’t have the time or expertise to manage a long list of investments is to invest in a variety of mutual funds from all three of the categories mentioned above. Go heavier on money market funds if you want more safety, give emphasis to bond funds if higher interest income is your main objective, or give stock funds top priority in your investment mix if you’re willing to accept more risk for higher profit potential. The rules of the road for how to invest in 2011 and beyond points to mutual funds, the investment of choice for those who don’t want to remain clueless.

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.

Having a hobby is always a great thing, because the hobby can fill in that extra time that would usually have been wasted watching television, and, instead, that time will be spent doing something one loves to do. There are many different things people do as hobbies, but coin collecting is extremely popular. There are so many different kinds of coins out there to collect, which is a big reason why people like to collect coins. This article will specifically discuss a few platinum coins that would look good in anyone’s collection.

The American Platinum Eagle coin is one of the most popular platinum coins out there, and everyone would love to have it in their collection. It’s the official platinum bullion of the U.S.A. This platinum was released in 1997 by the United States Mint, and it’s offered in a variety of sizes, such as 1/10 oz., 1/4 oz., 1/2 oz., and 1 oz. Later on, proof and uncirculated versions of this particular coin were made. These design on the back of the proof and uncirculated versions change every year, so they are extremely popular to collectors.

Platinum Maple Leafs are supplied by Canada’s Royal Canadian Mint, and they are extremely popular as well. These platinum pieces have an excellent design that really represents Canada well. The Canadian Maple Leaf is on each piece, and the weight and purity of the piece is also listed on the back. On the front of this coin is Elizabeth II, the year, and how much the item is actually worth. The overall design of this coin is spectacular, and that’s why this is another great thing to add to any coin collection.

The Platinum Koalas from Australia are also a great addition to any collection. These platinum beauties have nice picture of a Koala bear in a tree with the words ‘Australian Koala’ on the edge as well as the size and the purity of the item. The year and a pure platinum authenticity acknowledgment are both also engraved on if. With such a great design and its high value, the Platinum Koala coin from Australia is yet another great coin to add to any coin collection.

The combination of some nice platinum coins to compliment your gold coin collection is usually a great way to go in terms of making a smart, diversified investment. We highly recommend you consider these along with the Gold Eagle!

We love gold and platinum coins. See the best —> Gold and Platinum Coins