Eight Ways to Invest in Gold

By Kenneth Mackenzie 



For hundreds of years, gold has been the favorite precious metal for both making beautiful and valuable jewelry and also as a store of value for the investor. While gold jewelry remains popular as a decorative art, it fails as an investment for the most part due to the large markup buyers pay. There are exceptions, but those are mostly limited to those people who can afford to have unique gold jewelry pieces designed and made, rather than the mass produced items usually seen.

If you want to invest in gold, there are many other possibilities available. Some people like the feel of the gold in their hands, while others want to own it, but not have to worry about storing it safely. For those who don't want to hold the physical gold, buying shares in an Exchange Traded Fund (ETF) is one way to go. You will need to have an account with a stock broker, since ETF's trade like a stock. You will also need to do some research, because not all gold ETF's invest the same way. Some buy gold bullion, store it and sell shares based on some fraction of an ounce of gold. SPDR Gold Trust (GLD) is set up this way.

Others, like ProShares Ultra Gold (UGL), use financial instruments like futures and options contracts to try and match the movement of the gold market. UGL actually attempts to move with twice the return of gold's price movements.
Still other ETF's invest in gold mining shares. These will tend to fluctuate in a different manner than spot gold, since mining stocks can go up or down depending on many factors rather than just the price of gold.

Gold Mutual Funds are another way to invest in gold without physically holding it. They may invest in multiple gold mining companies as well as ETF's, options and futures. Mutual funds are a bit different than stocks and ETF's. You can't just go online and buy immediately. When you place your order, your buy price will be the fund price at the end of that trading day. Once again, do your homework. Some mutual funds also charge a "load", which is a fee either when purchasing, when selling or even both ways. There are many "no load" funds as well so chack carefully before investing.

Of course, you can purchase shares of gold mining companies directly on many stock exchanges. Once again, you need to do your homework, because companies range in size from a Barrick Gold (NYSE: ABX) which produces and sells millions of ounces per year to smaller companies which may own some claims, but have not yet produced an ounce of gold. Some of these smaller companies trade very few shares, so if you own them, you may not be able to sell them at a reasonable price in a hurry.

Stored gold is another way to purchase gold without the problems of storage. Companies like the Perth Mint and Bullionvault allow you to purchase gold which is then stored in your name in their vaults.

Gold futures contracts are still another way of investing in the price movement of gold without actually taking possession of it. Putting down as little as 10% of the value, you are able to control a large amount of gold. The problem with futures is that even though you can make a lot of money if gold is going in your direction, you can lose a bunch if it goes against you. Since you are only putting up 10% of the value, if the price of gold goes down 5-10%, you may lose some or all of your investment. Futures are NOT for the inexperienced.

If you want to hold your gold in your hands, then you have a couple of choices. First, rare gold coins have value not only as gold, but also as a collectible. You can expect to pay much more than bullion value for scarce gold coins, but you should also be able to sell them at a premium. There are a couple of things to take into consideration here. Counterfeit coins are common. If you are going to be purchasing rare gold coins, make sure to buy only coins that have been certified by an independent grading company like ANACS, PCGS or NGC. Next, you should be aware that you will be purchasing these coins at retail prices and selling them at wholesale, so buying for the long haul is best when thinking about collectible coins.

Last and most popular is physical gold investment. Many countries and companies produce and sell gold bullion bars and coins. These are usually priced to sell at a small (1-5%) markup over the bullion value. Depending on your budget, you can buy from one gram to a kilogram. The most popular sizes are the 1/10th ounce up to the one ounce coins/bars. The smaller the weight, the larger the percentage markup, so you may pay 2-3% on a one ounce coin, but up to 10% one a 1/10th ounce coin. You will certainly save money buy saving to purchase a larger size.

Article Source: http://EzineArticles.com/5865935

Financial Retirement Planning

By Milos Pesic

Many people retire after they find themselves financially stable enough to support all their needs. There are also some who consider first how much they have already saved for them to say that they are already ready for retirement. Well, money matters really play a vital role in retirement and to become financially secure after retirement takes time, effort and of course, proper planning.

The concept on financial retirement planning is not something that is fresh or new to the people's ears. It has been around for more than a decade now, and many successful retirees have considered financial retirement planning at some point in their lives. Now, if you are thinking about retiring from work, but you want to make sure that you will be financially stable when the right time to retire comes, knowing everything that is involved in the planning is definitely one of the best moves you can make.

So to start with your financial retirement planning, simply note that you are dealing not just with money here, but for a better future. Note that and if possible, save as much as you can as early as possible. As what many retirement experts have said, the sooner you start saving, the more time your money has to grow.

Set certain goals that are realistic and make those goals an important part of your financial retirement planning. You can project your possible expenses based on your needs. Consider how much your life after retirement will cost and try calculating everything that is involved. Settle only when you find out that everything is tackled and solved.

You can also consider a 401K plan as a special part of your financial retirement planning. The 401K is after all one of the best and easiest ways for saving after retirement. But before you consider the plan, make sure that you have understood everything that is involved in it, how it works and how you will benefit from it. There are also the IRA retirement plans for you to take. But as mentioned, know first what the plans entail and how they work to support everything you'll need after retirement.

As you go along the financial retirement planning process, try to look at your asset allocation. It has been maintained that how you divide your portfolio between stocks and bonds will have a big impact on your long term returns. And, speaking of long term returns, several retirement experts have noted how important the decision of paying attention to the stocks and bonds is. According to them, stocks offers the best opportunity for you to achieve high returns over long periods of time, while bonds should not be considered heavily even in retirement for that will increase the inflation level, thus destroying the purchasing powers of the interest payments of your bonds.

Finally, when considering a financial retirement planning, it is best to consider yourself working part-time even after retirement. What you will earn on your part-time job will help increase what you've saved for your retirement. It will even keep you socially engaged.

Article Source: http://EzineArticles.com/311813

Ways to Save Money For Retirement

By James Gauci

Retirement might not be in your near future, but it must be something that you are preparing for it now. Many professionals believe that saving money for your retirement is more important than paying off the credit cards and having emergency savings account accessible in case when you have surprising bills, such as hospital bills, car problems, and so on.

Around 10 to 20 of your income must go to saving for retirement, and if you are very close to retirement, then you need to save minimum of 20 and if you are younger than you need to save 20 for the retirement if all is possible. If you save little money now, it can work for you and amplify greatly over some time, leaving you with nice retirement in future.

There are lots of employers that offer matching program. For every dollar you put in your retirement account, they will add up to a dollar, up to a certain amount. There are many types of retirement accounts for one of its type is Traditional IRA that is funded by the money before taxes. Majority of the banks will permit you to fund on your retirement accounts by an automatic withdrawal system. Sign up for this alternative at your bank so that money goes into this account every month, and does not accidentally get spent or overlooked about.
For business proprietors, mainly small business landlord, look in SEP IRA for your workers. Whatever you put in this retirement account is tax deductible, and it permits you to add money to your workers' IRA instead of pension fund.

In today's weakening economy, it is very difficult to direct one's finances as well as find certain methods to save money. However, this makes it further significant than ever to prepare for your future and retirement. Start saving whatever you can today, to promise yourself as well as your family a very good future.

Article Source: http://EzineArticles.com/1218985

Eight Ways to Invest in Gold

By  Kenneth Mackenzie


For hundreds of years, gold has been the favorite precious metal for both making beautiful and valuable jewelry and also as a store of value for the investor. While gold jewelry remains popular as a decorative art, it fails as an investment for the most part due to the large markup buyers pay. There are exceptions, but those are mostly limited to those people who can afford to have unique gold jewelry pieces designed and made, rather than the mass produced items usually seen.

If you want to invest in gold, there are many other possibilities available. Some people like the feel of the gold in their hands, while others want to own it, but not have to worry about storing it safely. For those who don't want to hold the physical gold, buying shares in an Exchange Traded Fund (ETF) is one way to go. You will need to have an account with a stock broker, since ETF's trade like a stock. You will also need to do some research, because not all gold ETF's invest the same way. Some buy gold bullion, store it and sell shares based on some fraction of an ounce of gold. SPDR Gold Trust (GLD) is set up this way.

Others, like ProShares Ultra Gold (UGL), use financial instruments like futures and options contracts to try and match the movement of the gold market. UGL actually attempts to move with twice the return of gold's price movements.

Still other ETF's invest in gold mining shares. These will tend to fluctuate in a different manner than spot gold, since mining stocks can go up or down depending on many factors rather than just the price of gold.

Gold Mutual Funds are another way to invest in gold without physically holding it. They may invest in multiple gold mining companies as well as ETF's, options and futures. Mutual funds are a bit different than stocks and ETF's. You can't just go online and buy immediately. When you place your order, your buy price will be the fund price at the end of that trading day. Once again, do your homework. Some mutual funds also charge a "load", which is a fee either when purchasing, when selling or even both ways. There are many "no load" funds as well so chack carefully before investing.

Of course, you can purchase shares of gold mining companies directly on many stock exchanges. Once again, you need to do your homework, because companies range in size from a Barrick Gold (NYSE: ABX) which produces and sells millions of ounces per year to smaller companies which may own some claims, but have not yet produced an ounce of gold. Some of these smaller companies trade very few shares, so if you own them, you may not be able to sell them at a reasonable price in a hurry.

Stored gold is another way to purchase gold without the problems of storage. Companies like the Perth Mint and Bullionvault allow you to purchase gold which is then stored in your name in their vaults.

Gold futures contracts are still another way of investing in the price movement of gold without actually taking possession of it. Putting down as little as 10% of the value, you are able to control a large amount of gold. The problem with futures is that even though you can make a lot of money if gold is going in your direction, you can lose a bunch if it goes against you. Since you are only putting up 10% of the value, if the price of gold goes down 5-10%, you may lose some or all of your investment. Futures are NOT for the inexperienced.
If you want to hold your gold in your hands, then you have a couple of choices. First, rare gold coins have value not only as gold, but also as a collectible. You can expect to pay much more than bullion value for scarce gold coins, but you should also be able to sell them at a premium. There are a couple of things to take into consideration here. Counterfeit coins are common. If you are going to be purchasing rare gold coins, make sure to buy only coins that have been certified by an independent grading company like ANACS, PCGS or NGC. Next, you should be aware that you will be purchasing these coins at retail prices and selling them at wholesale, so buying for the long haul is best when thinking about collectible coins.

Last and most popular is physical gold investment. Many countries and companies produce and sell gold bullion bars and coins. These are usually priced to sell at a small (1-5%) markup over the bullion value. Depending on your budget, you can buy from one gram to a kilogram. The most popular sizes are the 1/10th ounce up to the one ounce coins/bars. The smaller the weight, the larger the percentage markup, so you may pay 2-3% on a one ounce coin, but up to 10% one a 1/10th ounce coin. You will certainly save money buy saving to purchase a larger size.

Article Source: http://EzineArticles.com/5865935

7 Steps to Reach Your Retirement Goals

By Kailyn Law 


Imagine your dream retirement. Whether it be a move to some tropical island, living a comfortable life in your home, spoiling your grandchildren, or the like, planning for retirement a couple decades away or right around the corner is something you should be working towards starting now. It is never too early to start saving up so you can reach your retirement goals. The retirement of your dreams is definitely attainable, you just need to take control and create a decisive strategy of how to get there. Read on to learn more about our tips and our seven ways to reach your retirement goals.

For one, making attainable goals is the first and most important step. Be realistic, but also know that you should not have to settle for less than what you want or deserve. You'll have plenty of opportunities later to adjust accordingly to changing conditions, but always keep in mind that you are working towards your original vision and you should not have to sacrifice so much. Think about where you would like to live during your retirement. What activities would u like to do? Will you have some pretty expensive hobbies and travel plans? How much would you like to leave behind for your children or grandchildren?

Secondly, think about your living expenses and general needs. Calculate monthly and even yearly needs in terms of financial input without any help. Then, once you've had this calculated and established, calculate the percentage of your income that you will need to set aside every month. Creating a breakdown of things you need to pay and pay off, you also need to consider that inflation is an ongoing process so make sure you round up all your estimates. It's important that if you have a certain costly medical condition that you plan for how you will pay for that once you have no incoming salary.

Third, think about your investments. A percentage breakdown of certain asset classes need to be calculated to help you determine your investing options in your retirement plan. Knowing how to allocate your investments and develop a saving strategy that accumulates more money in the long run is of course, ideal.
Fourth, think about estimating the amount you will need to save up from now until the age you would want to retire. If you find that your expectations are too high for u to save up and reach, then perhaps you will need to adjust your rate of saving to fit your retirement goals.

Fifth, look at the big picture and organize all your finances. We know there is a lot to think about like health insurance, stay, and vacation planning, but there are plenty of sites out there that will help you break these things down little by little in more manageable parts.

Sixth, you can shop around for insurance companies that give the best rate for the most comprehensive coverage.

Lastly, be sure to check your credit score to make sure you're secured financially and in case you want to make any big purchases, you're set to go. A good credit score is very important in any stage of life

Article Source: http://EzineArticles.com/6852022

Protect Your Investments With Insurance

By Nelson McWilliams 

 There are many things in life that people spend a good amount of their hard earned money to obtain. Items such as a car or a house require a significant investment. If damage to these items were to occur, investments can be lost or require even more investment to repair them. Insurance is designed to protect an investment and relieve some of the financial burden associated with replacing, repairing, or liability associated with ownership. Unfortunately, many people shy away from insurance because they see it as an unnecessary expense when in fact it is indeed necessary.

 Large investments such as cars and houses are exposed to the elements. Often times the elements can be damaging especially when a large storm approaches. With insurance, the damage caused by natural disaster, also known as acts of God would be covered to help the owner repair or replace the item. Basic insurance coverage will cover most natural disasters for all other natural disasters, policyholders can opt to purchase additional coverage. When considering the amount of damage that can be done by natural disasters and the costs associated with repairing or replacing damaged items, the difference is unmistakable.

 Part of ownership of almost anything requires the responsibility of liability. This means that a person is liable for damage caused by his or her property. For a car this means that should a person's vehicle be involved in an accident that is his or her fault, then the liability falls on him or her to pay for the damages. Likewise, with home ownership if a person were to slip and fall on another's property due to negligence, the property owner would be liable to pay for medical care for that person. Insurance helps protect owners from having to take on the complete burden of liability.

As mentioned previously, when basic insurance coverage is not enough then policyholders have the ability to purchase add-ons. These add-ons extend the coverage of the insurance policy or in some cases give additional benefits to the policyholder. Just like with the basic insurance policy, the costs of adding add-ons to an insurance policy far outweigh the policyholder being completely financially responsible for additional damage. The benefits that some add-ons provide will typically give the policyholder money savings that make purchasing add-ons a worthwhile investment.

Large purchases such as a house or a car require a rather large investment. Most people are not capable of replacing these large investments at any time so they purchase insurance to protect their investment. This gives the peace of mind and the ability to repair or replace the items without having to invest large amounts into them again. Insurance policy add-ons give the extra security and peace of mind that people want and need to know that their investment is well protected. There are also insurance policies that can protect smaller investments as well. Consulting a local insurance agent can help a person get the information they need to purchase insurance and protect their investments.

Article Source: http://EzineArticles.com/6915468

Financial Planning Made Easy With Life Insurance Plans

By Max York 

Presently life insurance policies are not just restricted to offering financial benefits on the death of the policy holders to his near and dear ones. The life insurance plans currently offered by providers have many other benefits attached to them; long term saving plans being the most attractive one. Below mentioned are the different types of life coverage plans and the extra benefits they come with.

Child Plans: A hugely popular life insurance product is child plans. Such plans are designed keeping in mind the needs of children that parents would not want to compromise on. All parents think about buying a policy for their children, when they choose a child plan it serves more than one purpose. Such a plan will act like a mediclaim as well as a savings option for your child. The returns are guaranteed at the maturity period which then can be used for shaping the future of your child.

Retirement plans: To make post retirement period financially independent for individuals are retirement plans. These plans offer life coverage and on the other hand help policy holders plan their retirement well in advance. The maturities of such policies are when the policy holder reaches his retirement age. This way the policy holder is assured of receiving a good amount at his retirement and can enjoy the benefit. Thus such a policy will assure its holders a worry-free post retirement life minus any dependency on others and cost cutting.

Growth plans: For people who want to make the most of their investments and wish to play safe too are growth plans. Growth plans offer flexibility to the policy holders in terms of money investment, policy tenure, premium payments etc. The premiums paid for such a policy are then invested in the capital markets and the profits earned are shared with the policy buyers. The investments are done wisely keeping in mind the volatility of the markets and keeping the hard earned money of individuals safe. The basic life coverage is also included in these plans. For people who wish to invest in the capital markets and earn extra income, growth plans are the apt option.

Saving plans: Everyone wishes to save money to fulfill needs he/she may encounter at a later stage in life, savings plans are just right for such purposes. In such plans the premiums are to be paid at regular intervals by the policy holders and the up to a certain period of time and during the maturity period a lump sum amount with the interest earned is handed over to him. Saving based life insurance plans give the policy holders the benefit of life coverage and also the scope of accumulating finances for future.

The scope of life insurance plans has thus broadened giving policy holders more than what they have opted for. Funding child's education or marriage, retirement planning, earning extra money through capital market investments; all this and a lot more can be done in a systematic manner if you choose a reliable life insurance plan and provider.

Article Source: http://EzineArticles.com/6969574

Financial Planning

By Usha Pradhan

Financial Planning is the process of creating strategies to help you manage your finances in order to meet your life goals. It is a complicated matter that all rational and capable people must one day begin to pursue. Financial Planning consists of four primary steps: creating Financial Planning Objectives, developing plans that will fulfill these objectives, creating a budget by which the assets will be obtained, and finally review and revision of the financial plan.

The Financial Planning Objectives can be divided into 5 sections. The first is the basic things you need for survival, and obviously this is the primary objective that must be met before others can be considered. These things are comprised of food, clothing, shelter, and even our automobile expenses. Next is the money left over that we can afford to put into savings or an emergency fund.

Then there are the discretionary insurance you put on things such as life insurance, home owners insurance, and auto insurance. Investment is the next step, the accumulation of assets in order to secure a return. Finally, we have estate planning which includes providing for heirs by leaving them assets and minimizing taxes.

After the Financial planning Objectives have been laid out, financial plans must be devised in order to fulfill them. This is done by analyzing both your current problems that are keeping you from obtaining your goals and whatever economic opportunities from which you may currently benefit. Solutions are then developed on how to fix the problems or benefit from opportunities and then they are implemented. The final step is to monitor and keep track of these objectives and review their progress.

The third step in the financial planning process is to devise a budget by which the previous objectives can be accomplished. There are three steps to the budget creation process: identify how you're spending your money, set goals for yourself that will accomplish your financial plan, and track your spending to make sure you're following your budget. Look for small expenses that add up over time, reduce larger expenses, and try to cut taxes. Finally, keep track of how inflation will influence your savings.

The final step in financial planning is to review and revise your financial plan There are many reasons for this step, the most important being to make sure that you are meeting your objectives and that these objectives are helping to achieve your goal. It's also important to review and revise your financial plan as you may have a drastic change in circumstances, your objectives may have changed, and maybe you have made a change to your long-term financial goals.

Financial Planning may seem to be difficult and time consuming, which it is, but with practice and dedication you will find it to be easier than you expected. There are also many financial institutions and computer software that can aid you when it comes to financial planning. Remember that with social security becoming less trustworthy, you'll never to young to begin to prepare for retirement.

Article Source: http://EzineArticles.com/1125782

Why Term Life Insurance Is a Good Option for Many People

By Rajesh B Sanghvi 

A 20-year term life insurance cover is one of the affordable insurance that you can get. It is referred to as term insurance because, in this case, one is given cover for a definite amount of time, at the end of which the holder of the policy must renew it, often to a higher premium rate. This kind of insurance is cheap. It however, does not build any extra cash value and so, does not qualify for dividends. This kind of insurance policy is helpful because after the agreement is signed, the payments remain equal throughout the stated period. After the expiry of the contract, the premiums start going up slowly every year.

For you to renew the insurance policy or to convert it into a higher premium policy there is no need of proof of good health, as you are already a client holding one of the available policies. One can convert their level term policy into a higher premium policy or convert it fully into a new policy like permanent life insurance. This conversion at the end of the contract is better for the client, because all the money they had put aside, plus the new higher premium rates will start collecting dividend thereby increasing cash value.
Mostly, the people who need an insurance policy quickly, but do not have access to funds to get a better insurance policy, use level term insurance. However, it is a reasonable policy choice to make if you need one quickly because of various reasons:

It is affordable - When the insurance is crucial but there is not enough money to buy the more lucrative ones.
Has a clearly defined time - One can be sure of the insurance and be certain about the details of the policy. This is because there will be no changes to the insurance contract until it expires, after which one is free to continue with it or switch to the more lucrative insurance policies.

Protection of businesses - This policy is beneficial as it helps cover some of the business costs incurred, thus ensuring the business' continuity.

Protection of family - Here, the policy can be used to pay school fees or help in paying the mortgage on a house. This is advantageous, as it does not put pressure on your finances at any time.

This kind of insurance begins with a 10-year term life insurance cover. One can choose any several years between the 10-20 years. It offers pure insurance protection and is best used to protect the business or family when there is not enough money to do so. At the end of policy's life, most people upgrade to a permanent life insurance policy, which offers better options and returns.

Article Source: http://EzineArticles.com/6892007

5 Ways to Save Money For Retirement

By Gordon Mackay 


I know of many people who have been paying towards pension funds, retirement funds and provident funds all their working lives and are shocked when they realize they can't retire. They have done everything correctly, followed all "the rules" and paid every month for 30 or 40 years. This is a shocking situation.
The only people who make money are the companies or corporations and the salesman. You would be much better off buying the shares of these large companies.

This is the reason why at the age of 65 only 4% of people are financially free.
Let's get an understanding of how our financial system works:

Up until 1971 we were linked to the Gold Standard. This meant our currency was backed by gold. So our government couldn't print more money when we were going through tough times, as certain countries do today. In simple terms this means when a country's expenses(imports) exceed their income(exports) they just print more money. Over the years, many forms of currencies have become obsolete because of this practice. We now have too much money chasing too few goods which increases inflation, for example Zimbabwe in Africa.

How are we going to create wealth in this inflationary environment when we don't have the option of printing money like our governments do?

• Saving your money in the Bank is not going to keep up with inflation. You are actually going to become poorer.
• Giving your money to the "experts" to invest for you, in my opinion is also not a good idea.

So what do you do?
Here are 5 steps that you can start using immediately to save for your retirement

• Take responsibility for your own money.
• Pay yourself first.
• Spend less than you earn.
• Create a surplus.
• Use this surplus for a deposit on an income producing asset e.g. an investment property.

These are the exact same steps I used, to go from being 5 million in debt in 1991 and technically bankrupt, to retiring within 7 years in 1998.
Take responsibility for your own money.
No one cares more about your money than you do. Always stay in control of your own money.
Pay yourself first.
Pay yourself first before anyone else every month. In other words this must be an expense in your monthly budget. Also automate this payment so it's deducted every month automatically from your salary or income. This money must go into a savings account for use later on.

Spend less than you earn.
Economize, economize, economize at all times and never stop. Even when you are making lots of money keep economizing.
Create a surplus

By economizing you will create a surplus which you can "park" in your home mortgage or in a savings account for use later on.

Use this surplus for a deposit on an income producing asset e.g. an investment property.

In my opinion, the easiest and safest form of investment to fast track your retirement, is to invest in "cash flow positive" investment properties. Here you benefit from your rental income which grows every year plus the growth of your asset

I believe anyone can retire in 5 years or less if they start applying the above basic principles.

Gordon Mackay the author of the book The Streetwise Millionaire, is a world leader in helping people create wealth. As a speaker and author on the subject, he uses his personal experiences as his subject matter. His teachings are based on the truth and factual.

Article Source: http://EzineArticles.com/5389476