Term Insurance - the best investment for your family

By Snehalata Arora 

You've always tried to give your family nothing but the best. Compromise is not an option. You would go out of your way to bring a smile on your near and dear one's faces. But life is all about uncertainties. What would happen if something unfortunate were to happen to you? Ever given it a thought? Who would take care of the liabilities left behind that are still waiting to be paid off? Your utmost priority is to secure the well being of your loved ones who have always depended upon you. Thought the emotional void cannot be fulfilled, you can plan and make sure that financially their life is secured.

This is where the role of term insurance comes in. A term insurance pay out can help ease worries on the financial front. Term insurance provides protection for a specific period of time. It pays a benefit only if due to some unfortunate incident, the policy holder passes away. Level term products are the most popular plans purchased today. You can choose a level term from 5 years to 30 years. Also, the premiums can be either guaranteed or not guaranteed.

When you buy a term insurance, make sure you are aware of the guaranteed* premium period. Once, all the formalities have been done and you pay the first payment, the insurance company is obligated to keep the policy in force as long as you keep paying the premiums. It's up to you to pay every month or not. But once you stop paying, the policy will lapse after usually a 30 day grace period. Some term insurance policies can be renewed when you reach the end of a specific period which can be from one to 30 years.

These days, to make it easier for you to calculate your premiums and compare different plans for this category, you can use insurance calculators and even subscribe to term insurance online. But before you subscribe to these insurance plans online, take a look at various other term insurance plans available. There are a lot of hidden costs which one tends to ignore. So make sure that you are aware of all the terms and conditions so that there is no surprise in store for you later on. Since buying a these kind of insurance plans costs much less than any life insurance policy, it's time you ensure a life of self respect and pride for your family.

Article Source: http://EzineArticles.com/6799359

What is Personal Financial Planning?

By Scott Dave 

Personal financial planning is the development and implementation of total, coordinated plans for achieving one's overall financial objectives. The term private wealth management also is increasingly being applied to this process, particularly when it involves larger investment portfolios and estates.

Most people use a variety of financial instrument to achieve their objectives. Thus, such basic financial tools as common stocks, bonds, mutual funds, insurance, fixed and variable annuities, money market accounts, certificates of deposit,saving accounts, individual retirement accounts, qualified retirement plans and other employee benefits, personal trusts, and real estate may be elements of soundly conceived financial plans.

Also involved in the planning process is the development of personal financial policies to help guide a person's financial operations. An example of such policies in investments would be deciding what percentage of an investment portfolio is to go into bonds (or other fixed - dollar securities) and what percentage into common stocks ( or other equity-type investment). Another example, involving life insurance, is that a consumer may want to purchase mainly cash value life insurance or decide to buy mostly term life insurance and place the saving dollars elsewhere. Unfortunately, many people do not follow consistent policies in making these decisions.

In financial planning, people consciously or unconsciously make assumptions about the current economic climate and what they think the economy holds for the future. A commonly held view,for example, has been that the u.S. Economy generally will experience real long term growth, accompanied by at least some price inflation, for the indefinite future. On the other hand, others may fear that economic conditions will change at some point they may plan their financial affairs accordingly.

Article Source: http://EzineArticles.com/4733640

How to Financially Plan For Your Retirement Today

 
By Josh Spaulding 

Saving for retirement is something that can be difficult, especially if you begin too late. So when is a good time to begin saving? Right now! Even a few years can make the difference of several hundred thousand dollars once you factor in interest. You should set a goal of setting aside a certain amount of money every month from your paycheck to put into your 401k.

People are constantly saying, "But I don't have the money to put aside right now." In some cases this may be a legitimate argument. For many though, there are a number of things you can cut back on to help increase your 401k. For example, is it truly a necessity to have that Starbucks latte every morning before work? Is it absolutely vital that you eat out for lunch as oppose to packing a lunch?
Every little bit matters and when you add up the costs for your latte in the morning and your Big Mac with fries for lunch, you would be surprised to see how much you are actually spending. Although there are things like pensions to back you up, even your pension can be quite surprising when it comes time to collect your earnings.

Unlike what many people believe, a pension will only get you 30% as oppose to the 60 or 70% that is assumed. While this is certainly beneficial, it is something that people shouldn't rely on.

While saving is perhaps the biggest part of planning for your retirement, having a decent insurance policy is up there as well. There is no denying the face that as we grow older, so do our bodies. We will encounter more health problems and are more susceptible to diseases and surgeries. By having a reliable insurance plan, you can avoid getting that overwhelming medical bill that will send you back to the workforce.

The main problem people have with planning for their retirement is that it is in the distant future. Then, little by little the time will sneak up on you and you will begin to realize you are completely unprepared. You can still live your life in the present and enjoy yourself, but it will be much more comforting if you take a small amount from your paycheck each month and place it in a retirement fund of some kind or a 401k.

Article Source: http://EzineArticles.com/518021

7 Things You Need To Select The Right Retirement Plans

By Curtis L Horn]

1. Your Expected Retirement Costs - Choosing the right retirement plans should include an evaluation of your expected retirement costs. These costs may be different for each person, and the ideal plan for your retirement will allow you to save the amount of money that you expect to need once you decide to retire. Some plans may not offer investment options that will provide the return needed to reach the desired account balance. Make sure that you include all of the possible expenses faced after retirement; otherwise you could choose a plan that falls short.

2. Your Anticipated Plan Contributions Each Year - The plan that you choose should factor in your yearly expected contributions and ensure that your retirement goals can be achieved. Some plans may limit allowable contributions to a small amount on an annual basis, and some plans may allow catch up contributions once you get close to retirement age.

3. Tax Planning Advice - Finding the best retirement plans should include professional tax advice. The consequences of poor retirement planning can be large tax liabilities, at a time when your income is needed the most. Some plans utilize pre tax contributions that are taxed upon distribution, while other plans use contributions made on an after tax basis so withdrawals are not taxed after retirement. Tax advice can help you choose the right plans for all of your retirement needs and goals.

4. A List of Retirement Goals - Before deciding on the best plan for your financial security during retirement you will need to create a list of your retirement goals. Will you want to travel? Will you keep a second home? Will you work at a part-time job or take up a hobby with related expenses? Your retirement goals will affect the best plan for your future, and the amount of retirement income you will need to live on without financial problems after retiring.
5. A Professional Financial Planner - A financial planner can help you choose the best retirement plans for your unique goals and financial needs at this stage in your life. A financial planner will help you to set financial goals, and then outline steps you need to take so that these goals can be easily met.
6. A Good Retirement Calculator - A good retirement calculator can help you accurately calculate all of the expenses you will have after you retire. This should be one of the first steps in retirement planning so that you do not end up short on funds in your golden years. These tools can help identify unexpected costs and expense that you may not have considered.

7. Your Annual Income Amount - Some retirement plans have certain restrictions concerning annual income amounts for eligibility. Many 401K plans, IRA accounts, and other retirement options may not be open to high income earners. Some plans may be intended for small business owners or self-employed individuals, while others are intended for high income employees, and still others may be ideal for low-income wage earners. You will need to know the annual amount that you earn to determine which plan is right for your retirement needs.

Article Source: http://EzineArticles.com/6726442

Choosing a Proper Insurance Plan For Your Old Days

By Raazdeep Brar

As one grows older, responsibilities increase and so do health risks. Finding the right insurance policy for 50s can also prove to be a challenge. The older you get, the more care you should take when picking these policies. With old age comes the risk of health problems. And the risk doesn't just stop here, slow recovery and additional charges while traveling can prove to be a holiday spoiler. For this purpose special over 50 insurance plans are one of the best policies you can invest in.

There are many different over 50 insurance plans available and you can chose the plan of your choice by thoroughly reading up the policy documents before you make the decision to invest in one. However the cost of insurance does increase at a higher age but the extra cost would be completely worth it as the policy offers a good level of cover. As well as including protection for many medical ailments including blindness, broken bones, hernias and hip replacements as standard, the over 50 insurance policy can be tailored for people with more serious conditions including diabetes, stroke, heart conditions and cancer following a simple medical screening process.

One important point is that travelers should remember that if they want to travel for more than 45 days on any one trip or have Pre-existing medical conditions, they must always check with their insurer before assuming they are covered. While it might require an additional "top-up'' payment, failing to deal with these issues in advance can lead to claims being refused. Many policies are single but there are also, partner insurance policies where both the partners are insured. Some insurance policies cover at home, work, traveling and even abroad and these cover any sort of injuries or diseases. But choosing the right over 50 insurance plan is very crucial. In this age of technology everything has been simplified and health problems can be easily treated but it is everyone's nightmare to be left impaired in some way after a health scare. The right insurance plan would cover this in case of limitations in mobility or ability dues to an injury or disease.
So if you are worried about your health, and want to avoid the hassle of being in a situation where you are rendered helpless, then you must invest in an insurance plan. It is a smart decision at a crucial age of 50 and is sure to give you peace of mind


Article Source: http://EzineArticles.com/6824415

Tips For Investing For The Long Term

By Marcus Beattie 

You have several options when it comes to choosing the your top long-term investments. Your choice depends on several factors like exactly how much you can afford to invest, what type of returns you are looking for and how long is long-term for you. But the most important thing to keep in mind is that you should invest in markets with which you are familiar. For instance you should understand how to invest in real estate before you opt for this market and not just jump in because everybody is saying that it is a good opportunity. The same holds true for any other investments.

Most people are attracted by the notion of a quick profit, but at least a part of your portfolio must include some long-term investments. You must be pragmatic about this. As your age increases, your income potential is likely to fall. Long-term investments will give you financial freedom after retirement. Whether it is medical expense or fulfilling a long cherished dream, you will be able to decide for yourself if you have made wise investments.

There are some negative sides to even the best long-term investments. When you have made an investment, your money is also blocked for a long time and you will not be able to access it before your investment matures. Apart from this, long-term market trends cannot always be predicted correctly. If your investment performs poorly, you are liable to lose all your money.

However, that is a common risk of every type of investment. Since we do not know what will be the condition of social security or Medicare in the future, it is safer to choose longer term investments.

There are many different avenues of investments. These include stocks, bonds, real estate, funds and precious metals. It is difficult to decide which of these would be the best long-term investments.

So, the golden rule of investment is that never invest in anything which you do not understand. Real estate is often a viable option, especially if you can locate a property with a lot of potential and can afford to buy it. You can remodel it and sell it for a profit. Renting can be quite lucrative depending upon the location of the property. It is recommended that real estate form at least a part of your long-term investment.

Stocks are another option, but except for certain well established companies, they are not a good bet for longer term investments. Bonds are generally less risky. Most experts recommend that precious metals like gold form a part of your long-term investment because it is the best available store of value.

Whichever option seems the best investment for you, you should follow a few ground rules. You need to be systematic about your investments. A good rule of thumb is to keep aside about 15% of your pay-check for investments each month. Finally, be careful when choosing your stockbroker or mortgage company so that your investment remains in safe hands.

Article Source: http://EzineArticles.com/6645015

Advantages of Mutual Funds: Maximize Your Profits!

By Bas Qur 

Mutual funds are common types of investments. They are products from various companies that collect money from several investors to create another investment. These investments are managed by someone else who is usually an experienced investor and a financial expert. Read on to discover the advantages of mutual funds and how you can benefit from them.

Mutual funds have several advantages that made them one of the most frequent types of investments. One of their benefits is that they enable you to invest in many different companies and sectors at the same time which wouldn't be possible without a large amount of money.

Investing your money in several companies or sectors is called diversification. This is an excellent strategy to reduce the risk of an investment given that only a small portion of your portfolio is affected when a few companies in the fund perform poorly. A stock mutual fund can consist of hundreds or thousands of different stocks. An investor who puts all his money in one investment can lose his whole asset when that company goes bankrupt or performs badly.

Another advantage of these funds is that they take away much worrying on the part of the investor. By investing in a mutual fund you hand over the money management to a trained professional manager who does it for you. His expertise in financials reduces the risk of picking the wrong investment decisions. And due to the combined fees that the investors of the fund have paid to the fund manager he has much more money than the average investor to research investments thoroughly.

Unlike stocks, the prices of mutual funds generally don't change a lot. Although the orders to buy and sell are placed during market hours, they are not implemented until the business closes which happens only once a day. At the time of closure the Net Asset Value (NAV) of the fund's new price is determined.

Similarly with other types of investments, mutual funds also have their disadvantages. You should do your research carefully and make sure you are willing to take the risks associated with the fund. There are thousands of different kinds of funds which all have their own characteristics such as fees and commissions. It is important to be familiar with the overall performance of the fund and how diverse its structure is. Ensure before investing that you have enough confidence to invest in the fund and the fund manager.

Article Source: http://EzineArticles.com/6249553

Good Ideas For Health Insurance

By Brian W. Thacker 

Since health insurance has gotten to be a larger portion of your monthly budget, it's a good idea to consider ways to use the rules to save you some money. COBRA is the insurance that you will be offered by your prior employer when you are between jobs. This insurance allows you to maintain the coverage that you had while you were employed, but you are required to pay the entire cost instead of your employer paying it. Usually this is the most expensive plan available to you even though it could be your best option if you are sick. Even if you left one job to go to another job, you could find yourself in a gap in coverage due to a waiting period for your new coverage starting at your new job. What some people do not realize is that there is a grace period for accepting your COBRA benefits. You may have as much as 60 days to decide whether or not you want to accept the COBRA without paying for it. If you have a 30 day waiting period for your new insurance to start, you may be able to get that gap in your coverage as free coverage for the month. Do not tell them that you accept the COBRA, but do not decline it either. This way if you get injured or have a major claim, you can pay the premium for the COBRA benefits and get your claim paid. This can save you a thousand dollars or more while you maintain your insurance protection.

Another alternative for COBRA if you are not fortunate enough to have another plan in place is short term health insurance. Short term health insurance plans are major medical plans that are approved by the insurance department just like any other plan that you might get. These plans have basic benefits and cost much less than alternatives. These are short term plans because they are not designed to be primary coverage for an extended period of time. You would want a plan with better benefits if you knew you would not have coverage within the next year or two. If you are actively looking for work that provides benefits, short term health insurance can meet your needs. These plans qualify for the continuous coverage program so you will not have to worry about a gap in coverage. Short term health insurance plans are a good idea you can have in place within 5 minutes and coverage can start as early as midnight. Save money with these ideas on health insurance.

Article Source: http://EzineArticles.com/6764965

Importance And Things About Insurance

By Gerald Chan 

Amongst all the things in our lives, insurance is probably one thing that is always overlooked and taken for granted. Not many realize the importance of an insurance policy until the time they need it. Insurance policies are actually defensive mechanisms put in place for use against future unconditional losses to hedge future risks. These policies can cover a wide range of things ranging from individual health to vehicles and buildings.

Insurance contracts are actually properly designed and tailored policies provided by companies to provide cover for unforeseen and unconditional losses. The regular amount charged from customers is known as the premium. In the event of a definite loss, the companies would pay back, either partly or wholly, to the customers based on the regular premiums they paid. It is almost impossible to fully avoid losses. You might never know when you will fall ill or when you might sustain property damages. Therefore insurance policies serve as a hedging principle against these risks by providing financial security should such a loss happen

There are indeed whole lists of different insurance policies out there. Individuals might seek out private health insurances for personal cover and businessmen would opt for general covers to protect their properties. And then again there are vehicle insurance policies. These policies work the same like any other insurance policies; with financial subsidies paid out to customers should any unconditional losses occur. There are a wide range of institutions which provides cover for any kind of damages pertaining to natural or manmade calamities. Over the years the popularity of vehicle insurance has increased by leaps and bounds and nowadays every owner of a moving vehicle would endeavor to pursue such a cover for their vehicles.

The insurance policy market is currently experiencing a boom in Malaysia. With an increased demand for different covers, new insurance institutions are fast catching up to existing market leaders. With a much diluted market, customers would not have a clear picture of the available insurance policies. When faced with such a situation, a customer can seek for an insurance agent for assistance. An insurance agent can help the customer search for policies that are tailored to meet their requirements. Different companies provide different policies with different cover and benefits. A customer will naturally be oblivious if such information were not made available to them. An insurance agent can in fact inform a potential customer of the very details of an insurance policy. Some agents are not attached to a specific company and these independent agents can provide an unbiased perception of available insurance policies on the market. Captive agents are often self laudatory since they work for a specific company. They would do their best to promote their own policies while perhaps overlooking better available deals on the market which suits different people better.

Therefore if you are an individual or an entity searching for insurance cover needs, then acquiring the services of an independent agent might prove to be helpful for you. These agents can provide you with a whole list of insurance quotes, make comparative analysis between policies and provide useful advice on your policy of choice. With such information made available, the final decision is up to you to choose the policy which is tailored for your needs.

Article Source: http://EzineArticles.com/6409515

Best Mutual Fund Investments for 2012

By James Leitz 

Even the best mutual fund investments could face strong headwinds in 2012, so finding the best investments in both stock and bond funds is the best way to cut losses if things get ugly. The best investments in both fund categories will have two characteristics in common, which makes finding the best easier than you may think.

With Europe facing recession and financial turmoil the best stock funds should be diversified domestic funds that invest in major American companies vs. international stocks. The U.S. economy is not booming, but corporate profits look good for 2012. The best investments in the stock fund category will be funds that hold stocks with excellent records for paying and increasing dividends. The best funds will pay 2% or more in dividend income vs. growth and small-company stock funds that pay little if anything in the form of dividend.

The best stock funds may be labeled as EQUITY INCOME and/or LARGE-CAP, and they offer the investor less risk and volatility due to both the high quality of the stocks held in their investment portfolio and the relatively high dividend income they pay investors. To find the best investments look for stock funds rated as relatively low on the risk scale that pay more than 2% in dividend income. To get your best value look for a fund with a TOTAL EXPENSE RATIO of less than.5%... with no sales charges called LOADS that can cost you 5% when you invest.

Finding the best investments in the bond fund arena will be a bit harder in 2012. In 2011 bond fund investors made money even though bonds were paying income yields that were near record lows. With the 30 year U.S. Treasury Bond yielding 3% and the 10 year note at 2%, how did investors make 8% or so in government bond funds last year? The value of bonds went up as interest rates continued to go lower and lower, making the fixed income bonds offer more attractive. When the best rate you can get on a one year bank CD is less than 1% and the best rate for a five year CD is 2%, don't expect rates to fall much more.

Long term bond funds might look like the best investments because they pay higher interest income. Don't be tempted, because along with the higher income comes much higher risk. When interest rates rise bond funds will lose money, and those that hold long-term bonds will lose the most. Here's how to find the best investments in the bond fund department in terms of risk vs. reward.

Go with INTERMEDIATE-TERM bond funds to lower your interest rate risk (losses due to interest rates going up). Go with high to medium quality CORPORATE BOND FUNDS vs. government bond funds to boost your interest income without greatly increasing your risk. To get the best investments look for no-load funds (no sales charges) with expense ratios of less than.25%. Why pay 3% or 4% in sales charges and over 1% a year in expenses to earn 2% to 3% in interest income with the possibility of losing money if interest rates go up in 2012 or in the years that follow?

We said upfront that the best mutual fund investments for 2012 for both fund categories (stocks and bonds) had two things in common. First, they are relatively conservative and are less risky than more aggressive alternatives. Second, the best investments feature low cost investing in the form of no sales charges and low yearly expenses. Why pay $500 in sales charges off the top for a $10,000 stock fund investment that also charges over 1.5% a year (about $150 the first year, increasing as the value of your investment does)?

Where can you find your best investments at low cost? I've recommended the two largest fund companies in America for the past 30 years: Vanguard and Fidelity. They both offer bond funds and stock funds like I have discussed here. Sales charges are ZERO, and on a $10,000 investment yearly expenses can be as little as $25. A dollar saved is a dollar earned. Believe it or not, your best mutual fund investments for 2012 can also be the least costly to buy and hold.

Article Source: http://EzineArticles.com/6795804

Advantages of Mutual Funds: Maximize Your Profits!

By Bas Qur 

Mutual funds are common types of investments. They are products from various companies that collect money from several investors to create another investment. These investments are managed by someone else who is usually an experienced investor and a financial expert. Read on to discover the advantages of mutual funds and how you can benefit from them.

Mutual funds have several advantages that made them one of the most frequent types of investments. One of their benefits is that they enable you to invest in many different companies and sectors at the same time which wouldn't be possible without a large amount of money.

Investing your money in several companies or sectors is called diversification. This is an excellent strategy to reduce the risk of an investment given that only a small portion of your portfolio is affected when a few companies in the fund perform poorly. A stock mutual fund can consist of hundreds or thousands of different stocks. An investor who puts all his money in one investment can lose his whole asset when that company goes bankrupt or performs badly.

Another advantage of these funds is that they take away much worrying on the part of the investor. By investing in a mutual fund you hand over the money management to a trained professional manager who does it for you. His expertise in financials reduces the risk of picking the wrong investment decisions. And due to the combined fees that the investors of the fund have paid to the fund manager he has much more money than the average investor to research investments thoroughly.

Unlike stocks, the prices of mutual funds generally don't change a lot. Although the orders to buy and sell are placed during market hours, they are not implemented until the business closes which happens only once a day. At the time of closure the Net Asset Value (NAV) of the fund's new price is determined.

Similarly with other types of investments, mutual funds also have their disadvantages. You should do your research carefully and make sure you are willing to take the risks associated with the fund. There are thousands of different kinds of funds which all have their own characteristics such as fees and commissions. It is important to be familiar with the overall performance of the fund and how diverse its structure is. Ensure before investing that you have enough confidence to invest in the fund and the fund manager.

Article Source: http://EzineArticles.com/6249553

Some Basic Tips On How To Invest Your Money

  By Frank Rodriguez

People who have extra finances that they can spare often think of ways that they can actually utilize them and let them better returns. There are various ways on how to invest your money and it is best that people carefully look into all these options first and the pros and cons of each of these options so they know that when they decide where they should place their finances, they know that they getting a very viable option.
Although the stock market has always been a popular choice among many interested investors back in the day, a lot of people are quite discouraged in placing their financial stakes in these ventures because of its relative volatility. Thus, many up and coming investors cannot expect getting really good profits out of placing their spare cash in these ventures because of higher risks.

One of the safe options that one can place his spare cash in is the open cash markets. This is also referred as high interest savings accounts and are considered very great choices for investing finances, especially if this is done for a shorter period of time. A lot of people consider this as a very good way of getting good financial yield with return rates reaching up to four percent.

If you are looking for options on how to invest your money, you can also go after treasuries or T-bills. These are notes that are invested by the government of the United States and they are considered as having a very relative low investment risk, and are very good options for up and coming investors. Considering how they are backed by the government, they are currently considered the safest form of investment these days.
Certificates of Deposits or CDs are also very good business staking tools. They are available through brokers or banks and they are also considered very safe where investments are concerned. Many people will find it convenient that these tools have maturity dates that are already set, and the investors are also locked into the interest rates that they were first set with until the term has been completed.

Another viable investment option is the 401k plan. People are advised to invest these funds if their employers have provided them with these types of employment programs since this is one of their right as holders of such plans. People are given a wide variety of choices especially on the way that they can invest the funds within this plan, based on the options that are outlined and specified within these plans
.
People who do not like the idea of being exposed with too much risks can actually choose putting their cash in mutual funds. One is assured that his funds are being staked in the right investment ventures because there will be a fund manager that will oversee all the transactions. Though there is very minimal risk that one takes in this type of setup, necessary fees must be made in exchange for the services of the fund manager.

When finding ways about how to invest your money, it is very important that one properly considers all the available choices that is available for him. This will help him determine ahead of time, which from all these choices is the best option for him so he can maximize the amount that he will be investing.

Article Source: http://EzineArticles.com/6647876

What Is the Best Advice for Investing Retirement?

By Alex Gunawan 

Most financial experts agree that retirement planning is something that everyone should be concerned. This is especially true today, when many people are not likely to stick with the same employer for most of their working years. Even for people who are bigger, there are ways to invest for retirement, which will make the senior years more comfortable.

The ideal time to start investing for retirement immediately after completing college. At this age, there are a number of investment options that can be used to create the foundations for a solid financial cushion. With the acquisition of whole life insurance early, you can build a significant asset in politics, in effect creating a nest egg that can be called in later years. Buying property is another way to engage in retirement investments. Together with the main residence, the purchase of a home weekend helps to create activities that are most likely to appreciate over time. Once the holder reaches retirement age, it is a simple matter to determine which of the homes for sale, and to use as a primary residence to go forward. The proceeds of the sale may be placed in interest bearing accounts, and used when and as needed. Looking pensions and retirement plans offered through an employer is also an important component of any investment manager of retirement. Many employers offer options such as 401 (k) investments, the stock of employees, and other means of savings for subsequent years.

In some cases, the employer matches employee contributions, which helps to increase your retirement nest egg significantly over time. Building a stable investment portfolio is also a good idea. Create a base for the portfolio through the purchase of stocks, which are constant and highly likely to produce a consistent profit over the years. Increase the stock of debt issues that offer a decent yield. With this foundation in place, you can also consider other stocks are more volatile, and perhaps add significantly to retirement investing process. Even for people who are not able to buy stocks and do not have access to an employer-sponsored retirement plan, plan, there are options. Consider starting with a basic savings account, taking care to put a small amount in the account each pay period. When possible, purchase a certificate of deposit, taking care to allow the CD to roll when it is ripe. A personal retirement account, like individual retirement account or Roth IRA, the United States, or an individual savings account, or ISA, the United Kingdom, is also a great way to engage in basic pension investments.

The key for each pension investing activity is not to get discouraged if the amount of contributions is small. Too many people delay retirement investing because they think that the amount that can save each month is of no real consequences. Those small contributions add up over time and will go a long way toward making those years after the withdrawal much more comfortable.

Article Source: http://EzineArticles.com/6578490

High Return Investments - The Risks and The Rewards

By Amy Mia 
 
If you are thinking of investing you are probably hoping, or even expecting to get high returns. The whole point to investing is to make a good deal of money and you want to get as much out of any investment as possible. Some people mistakenly think that to make a huge amount of money from investments you have to wait years, if not decades. However there are high return investments that can show huge returns in months or few years. As a general rule the more money you are willing to bring to the table, the more money you will get in return. Here are some high return investments:

Real Estate
This is definitely a high return investment and there are many options to choose from with real estate. You can choose to purchase a property at a low cost, do the house up and then sell it for a decent profit. This is an excellent way to make money, however it takes up a massive amount of personal time to do to a high standard. Alternatively you could opt to invest in rental properties, and reap the income they bring indefinitely. This is an excellent method if you have the money to buy numerous properties.

Corporate Bonds
Corporations issue corporate bonds in an attempt to gather money to expand a business. The maturity date associated with them is in excess of a year. Obviously there is a fair amount of risk associated with corporate bonds, as if the company fails, then so does your investment but this also means high return investments.
Municipal Bonds
These are bonds that are issued by a cities government. It is a high return investment because the interest gained does not get taxed. They are also free to trade.

Dividend-yielding Security
A Dividend-yielding security is a perfect high return investment. You invest funds in companies that have a lot of capital. This means down turns in the market will usually not have a huge effect on them. If you do decide to invest in long-term dividends you could make a massive profit on high yielding stocks.
There are other investment options that offer a good return. To decide which is most appropriate to your situation you will need to talk to a financial specialist. They will be able to explain the risks to you in more detail. Remember that long-term high return investments are great from the perspective of taxes.
If you manage to decide on the right high return investment you will have a secure future and a safe retirement. In the short term you can use the rewards gained from initial investments to make new ones. This could be the start of a new income for you.

Article Source: http://EzineArticles.com/6605601

How To Make Wealth With Investing In Mutual Funds

By R. Boyd 

Basically, it refers to the idea of pooling a collective investment from different investors with one basic goal and that is to earn profits through proper investing. Basic these includes a collection of bonds and securities investments, which can also be combined with project funds in the stock market, bonds, and other related investment opportunities. Most funds are audited and managed by financial experts in order to increase the resources invested in terms of earnings and earning capacity. But did you know that you can actually make wealth and build a sizeable nest egg when you are able to properly invest in mutual funds?

To begin with, each and every investor involved in the mutual fund has to provide his or her own share of financial capital just like any other investors involved in the fund. This allows the investor the right to have a piece of the profit accumulated within the period of investment and also if the mutual fund is either put up for sale or it incurred heavy losses due to market variation or fund mismanagement. More often than not, these are the most sought after type of investment in the market and there are also a sizeable number of investors who have their own portion of investment in these which see this opportunity as an advantage for them to make their money grow which in the process, can provide them a steady source of income during the payout stage. In addition to that, one of the main reasons why most people choose to invest in mutual funds is due to its flexibility to adapt to changing market which makes it a lot easier for investors to achieve their financial goals.

You can enjoy plenty of benefits when you choose to invest your money in mutual funds. For starters, investors do not need to worry about the mismanagement of funds since mutual funds are typically managed by financial experts and with the help of their experience in the investment market; they are able to explore different investment options that can significantly be part of the growth of the investment. With the help of financial experts monitoring your investment, there is nothing for you to worry about and you can just sit and wait for your investment to start earning profits.

Another major benefit investors can enjoy from venturing in mutual funds is the low risk nature involved in mutual fund investment. One of the main reasons why there is such a low risk for investment is due to the fact that financial experts see to it that the funds will be invested not just on a single asset which means that if one investment option fails, there are still other assets available where investors can recover their losses. This is because these funds are evenly distributed on different types of securities and other investment options making it virtually impossible for investors to risk their money unless all investment options fail. As compared to when you put all your money on a single investment vehicle, the failure of that particular investment option can certainly bring all your money down the drain.

Article Source: http://EzineArticles.com/6771201

Important Things About Retirement Investment Planning

By Gurg Sumit Kumar 

Apart from your home and your car, retirement investment is probably the biggest fund you will ever create. Though retirement investment planning seems like a very dull subject especially if your retirement date is still at a distant horizon-it is really important. As retired life is going to be around one third of your life and you have to have a plan for it. Even seemingly small difference now can make a big difference in your coming life. So, it's never early to start planning for your retirement and it's worth spending some time to do your own research and getting your details right.

Most people reach their retirement years without enough money to support them and their lifestyle. So, they have to scale back on their plans for retired life or worst still continue working just to survive. Would you like to be one of those people? If not than spend some time doing your research and start your retirement investment planning. Which investment plans are best tools to get you to your final goals? Well it defers from person to person..

Many investors have made money investing in many different fields like real estates, stocks etc. which one is right for you? The best way is to pick something of your interest or consult with some reputed consultants. Wise decision will be not to put all your money in one bag as no investment is 100% secured. Even if you decide to stick to one sector, for example let's say you invest in stocks, if so make sure to invest in lot of different stock options and always take professional help.

One of the most important things about retirement investment planning is to be consistent. If you are investing in stocks don't take pension holidays when your funds are blooming. Whether you invest in stocks or something else consistency is as important as choosing the right fund to invest in. Now there is this theory of cost averaging: when the stocks are cheaper you buy more shares than when they are expensive as a result you get an average on price over the time. So, if you are not a consistent on your savings you end up waiting for the time when things improve as a result not saving enough. Consistency is by far the best way to help your funds grow as much as possible.

And by far the most important thing is to re-examine your plans regularly. It's easy to forget about your investment plans after setting it up and that is a big mistake as things change. New options become available and with better returns but many firms will not give you these new rates. You have to be on top of it to get the best rates or else it will affect your final retirement fund. So, you have to have a solid retirement investment planning if you want to enjoy your retired life.

Article Source: http://EzineArticles.com/6556902

Best Investment Ideas and Best Safe Investments for 2012

By James Leitz

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

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

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

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

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

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

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

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

Article Source: http://EzineArticles.com/6800356

How to Invest Your Money After You Retire

By Barry Rabinowitz 

WHAT'S YOUR FINANCIAL PLAN?

Over the past two years we have been on a roller coaster ride in the financial markets, and have seen the major stock market indices fall to a 12 year low, then rebound almost 100%. Daily moves of over 100 points have been common, and with the market off close to 20% from the recent highs, many individuals are wondering about a replay of the 2008 bear market.

What should investor's be doing: Now is a good time to be reviewing your asset allocation, ie., the mix of cash, equities and bonds in your portfolio. Assuming that nothing has changed, you have a diversified portfolio, and your investment allocation adequately reflects your goals, objectives and risk tolerance, you should be "staying the course."

History shows that selling in a panic, or letting your emotions drive your investment decisions, is a recipe for disaster. In fact, the major reason investors don't earn market returns, is that they buy high and sell low, and convert all their assets to cash during a market downturn. According to Dalbar Inc., a financial research firm, for the 20 year period ending December 31, 2010, the S&P averaged a yearly compound return of 9%. However, the average stock fund investor, during that same time, averaged only 3.8% a year, as they switched in and out of funds every 3-4 years. That was barely enough to beat inflation, which averaged almost 3% annually over that period.

What's my plan? If you've worked with a financial planner, such as a Certified Financial Planner professional, CFP®, you should be able to articulate those goals all by yourself or refer to an Investment Policy Statement you made together. Your Investment Policy Statement should be relied on to keep you focused, especially in volatile times like today. All wealthy investors and large successful endowments, ie., Harvard and Yale, operate with an Investment Policy Statement. Much of the riskiest investing, overbuying and panic selling during the 1990s and early 2000s could have been avoided if individual investors had sought advice for achieving long term specific goals, such as retirement.

You pay a financial planner to devise a financial strategy that matches your risk tolerance and long term financial goals. No, there is absolutely no way to guarantee that you will never lose money. But if a plan truly matches you, the noise shouldn't make a difference, especially if you don't need the money today.
What's my risk tolerance? At your meeting with a planner, you should have discussed a number of questions about how you handle risk and what your expectations about investment returns were. You want to be certain your investments reflect your time horizon, and risk tolerance.

Am I diversified? Diversification is one of the means that you can employ to reduce market risk and volatility. Are you diversified among all the asset categories?
Do you own any bonds in your account? If you do, are they of the highest quality, and are they laddered? Many investors lost money in their bond accounts because they were not of the highest quality and/or used leverage to enhance their yields. Due to fear in the markets, municipals, which are tax free, are actually yielding more than US Government securities, which are fully taxable. Are you taking advantage of this anomaly to earn high quality tax free income?

Cash Reserves? With all the uncertainty in the economy and the markets, do you have an emergency fund of at least one- two years living expenses? You don't want to be in the position of having to liquidate securities in a down market.

Should you keep investing? Definitely. Markets go up and also go down, but over time the markets go up more than they go down. We are going through some rough weather in the economy and the markets; we have had rough periods in the past, and we will encounter rough periods in the future.
If you are worried about the market and your investments, there is no reason you shouldn't call your planner to calm your nerves and confirm what you are doing.

If your planner has not discussed any of the above with you, maybe it's time to find a new planner. And if you have never talked to a planner before, now might be a pretty good time to start.

Article Source: http://EzineArticles.com/6552727

Investing Basics - What Are Your Investment Goals

 By K Bhanot 

When it comes to investing, many first time investors want to jump right in with both feet. Unfortunately, very few of those investors are successful. Investing in anything requires some degree of skill. It is important to remember that few investments are a sure thing - there is the risk of losing your money!

Before you jump right in, it is better to not only find out more about investing and how it all works, but also to determine what your goals are. What do you hope to achieve with your investments? Will you be funding a college education? Buying a home? Retiring? Before you invest a single penny, really think about what you hope to achieve with that investment. Knowing what your goal is will help you make smarter investment decisions along the way!

Too often, people invest money with dreams of becoming rich overnight. This is possible - but it is also rare. It is usually a very bad idea to start investing with hopes of becoming rich overnight. It is safer to invest your money in such a way that it will grow slowly over time, and be used for retirement or a child's education. However, if your investment goal is to get rich quick, you should learn as much about high-yield, short term investing as you possibly can before you invest.

You should strongly consider talking to a financial planner before making any investments. Your financial planner can help you determine what type of investing you must do to reach the financial goals that you have set. He or she can give you realistic information as to what kind of returns you can expect and how long it will take to reach your specific goals.

Don't invest to get rich quick. That is the riskiest type of investing that there is, and you will more than likely lose. If it was easy, everyone would be doing it! Instead, invest for the long term, and have the patience to weather the storms and allow your money to grow. Only invest for the short term when you know you will need the money in a short amount of time, and then stick with safe investments, such as certificates of deposit.
Again, remember that investing requires more than calling a broker and telling them that you want to buy stocks or bonds. It takes a certain amount of research and knowledge about the market if you hope to invest successfully.

Article Source: http://EzineArticles.com/6774774

Financial Planning Advice

By Steve Mackie 

If you want to enjoy a better level of financial security, good financial planning is essential. Knowing what to do with your money to get the best results and how to implement a solid planning strategy can be difficult, so it's a good idea to employ the services of a financial advisor.
Advisors can offer guidance on any financial planning matter, with many of them specialising in a certain field. While you can find information about wealth management online or in books, getting qualified advice from someone in the financial services industry makes much more sense. You can't always be sure that what you read online is up to date or entirely factual, so it's better not to risk it.

Choosing a Financial Advisor
When looking to approach a financial advisor you should always make sure that they are regulated by the Financial Services Authority (in the UK), or the relevant authorising body in the country from which they operate. Using regulated financial advisors means that if something goes wrong, you have an avenue for an official complaints procedure and potentially even compensation. Always check the financial authority's database of registered users before you commit to a product from any financial advisor or financial planning company.
Professional advisors are well trained and qualified to give you all of the most current planning advice across a wide range of areas. You might be looking for financial planning advice to help you set aside a lump sum to help you in the future. Your financial advisor will be able to tell you about the different products and services that you can use to ensure that your money is safe and well invested. They will discuss different options with you such as savings plans or lump sum and offshore investments - an independent advisor will be able to source products from across the whole marketplace ensuring that you get impartial advice with your best interests in mind.

Financial Planning For A Variety Of Purposes
Among the other financial planning matters that a professional advisor can help you with are things such as retirement and pension planning, education fees planning, life assurance/insurance and medical insurance policies. A good financial advisor will never try to force you to invest in something or purchase a specific product. If you feel that you are being pushed into a financial planning direction that doesn't feel right for you, it may be a good idea to walk away and try to find a more reputable financial company to help you with your requirements.

Article Source: http://EzineArticles.com/6468253

Is Now a Good Time to Invest in Gold?

By Lawrence Reaves 

Gold has been enjoying record breaking price rises over the last couple of years. This has been thanks largely to the poor economic climate, and the financial crisis which sent shock waves around the global system. The question many people are now asking is whether the gold market has topped out and if so, should they buy or sell?
Gold broke through the record $1,200 an ounce ceiling last year, but it has bounced around for some time. There is a lot of market uncertainty which is fuelled by the slow, but definite improvement in the underlying economy, particularly the recovery in the stock markets and the easing concerns over interest rates.

The Buy/Sell Decision
Buying gold makes financial sense when the stock markets are falling and the economic outlook is grim. Governments and institutional investors buy gold as a hedge against inflation and to prop up the value of their currency; buying gold also makes sense because the value will increase as times get harder. The gold market is therefore populated with more buyers than sellers, and the demand for gold will force the price ever upwards.

Selling gold makes financial sense when the economy is picking up and stock markets are rising. It is better to invest in stocks and bonds where there is real growth and inflation beating returns available, rather than hold gold. The lack of buyers for gold results in the price of gold dropping.
So, should you buy or sell?
This depends on your outlook for the economy. At the moment the indices are starting to look positive for an economic recovery which means that the smart money is selling gold. This is reflected in the plateau that has been reached in the gold price after breaking through the $1,200 ceiling. In fact, the price of gold has started to slip in direct reaction to good economic news.

For individuals who have gold, usually in the form of old jewelry, the price of gold is at an all-time high. More positive economic news will certainly lead to the record price for gold dropping further, and it is likely that the price of gold will go into freefall as investors look to unload their holdings and move back into the stock markets.
This means that there is a strong SELL recommendation for gold holders.

How do you sell your old gold?
Selling old gold items is simple. Go online and find a company which is a "refiner"; this is a company which will actually take your old gold and turn it into "new" gold. Refiners will advertize their "spot" price for gold, which will fluctuate on a daily basis, so be sure to check it frequently. Once you have found a company you wish to do business with, they will arrange for a secure courier to collect your items, they will then appraise them and make you an offer. You can decline the offer, in which case they will be returned to you, or you can accept the deal and a check or bank transfer will be with you within a week.
It's as simple as that, so remember NOW is a GOOD time to SELL your old GOLD.

Article Source: http://EzineArticles.com/5785141

2 Smart & Easy Ways to Save

 

 By Connie Barker 

Saving is one of the most beneficial things you can do to plan for the future. For those that save money on a regular basis, you can find that it is much easier than you think to save for college, buy a home or a large purchase such as a dream vacation. Unfortunately, saving is not easy to do and requires discipline, but if you want to save money, here are two smart and easy ways to do so.

Save Money Using a 401K Account
One of the easiest and most effective ways to save money is through an employer's 401K account. With a 401K account, you can have your employer deduct a set amount from your paycheck during each pay cycle. The good news is that you receive your paycheck with the amount already deducted- this ensures that the amount is saved each pay period. Once deducted, you have the option of investing the money in stocks, bonds, mutual funds, money market accounts, etc. So not only are you able to save a specific amount of money each pay period, but your money will hopefully grow.

Another great feature regarding 401K accounts is that when money is deducted from your paycheck it is deducted without tax. Taxes are not paid upfront, only when you cash out your 401K account. This means you can save money that is normally taxed, invest it, and reap the benefits of growth, all before having to pay taxes on it.

Save Money by Paying Yourself First
If you are self employed or your employer doesn't offer a 401K plan, one strategy to make sure you save money is to pay yourself first. Just like you will always find the money to pay off the electric bill, you should always pay yourself first. Come up with a percentage or a set amount each pay check such as $50 per paycheck or 10% of the net and in a few short months, you will be amazed at how much you were able to save.

To increase the effectiveness of this strategy, try to place your saved money in a savings account where it will grow with the help of a compound interest rate. Saving as little as 5% of your paycheck can leave you with a small fortune of several hundred dollars to a couple of thousand dollars at the end of the year.

Article Source: http://EzineArticles.com/831293