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

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

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

Long Term Care Insurance - Secure Your Future

By Adele Pitt 

 Planning for our old age is one big portion of our lives that we assume too much when we plan. Old age is a time when we retire and relax with our hard earned money, but unfortunately today's lifestyle takes away health too quickly. There are too many old people right now who are dependent on support services.

Analysts say that health conditions are showing indicators of even less healthy people in future, despite developments in health sciences. It is because there are fewer healthy young people now than they were before. It is a scary trend but for this reason long term care insurance was launched.

This insurance product was particularly target to those 40% of old citizens who were expected to require services of nursing homes. It is a boring fate to survive but these services demand more money now. Statistics claim that now 50% of the entire American population is in danger of such a fate.

When one reaches old age, it becomes very difficult to be in a fit position to earn money, let alone pay for nursing services. Good services will charge you a lot which is why this kind of insurance will at least ensure you will live comfortably. It may even be a norm in the future but the expenses will make life difficult.

As you will go through the long term care insurance blog you will come to know about the new problem brewing for the insurance industry. President Obama wanted to launch this scheme to help uplift the old age population. Unfortunately the business model was not proving to be a feasible one because it was too dependent on premium money which the claimants were paying mostly.

This is an insurance product that survives of a big pool of money that is also taken from healthy individuals. Healthy people never see this risk coming so they never sign up for this problem and instead those who are facing medical problems are already singing up for the claims. Eventually the only thing that could make it survive was taxpayer's money and that was not feasible.

As the program went to a close, it taught us a very important lesson about our health. While insurance is the best way to assure us of our future, it needs to be sustainable. There is a big demand for this kind of product and to make this possible for our previous generation, we all have to contribute.

There are many complications in old age and saving up all your money is not the safest way to go around it. This kind of insurance will surely evolve to a better package that will be sustainable. But the fastest way for it to be a success is when all of us will contribute to this in support of our future and philanthropy.

Article Source: http://EzineArticles.com/6874642

Retirement Planning - How Much Money Is Enough?

By Chris C. Sturat 

 The thing about planning for retirement is that you would want to be able to retire without any worries towards your financial commitment. Successful retirement planning would mean that you have covered all the aspects in your life that you are financially attached to, as well as the what-if's situation that may occur. Hence, in order to plan for a successful retirement, you will need to set and achieve a number of goals before securing enough money for retirement.

You should first begin with your retirement goals. This gives you a purpose to successfully follow through your plans. For this, you should identify what you would like to have when you retire. For example, you may prefer to live in a condominium with beach view, have weekends at spas, or even travel for a bit. Knowing what you want will allow you to identify how much you will need to have at least to enjoy such privileges, and create a time frame in which you should achieve that much.

Do make use of retirement calculators as well. With a retirement calculator, you will be able to calculate how much you will actually be able to save if you follow through certain goals with what you have, in order to arrive at the goal of amount you should achieve at retirement. It can also help you in the process of creating a monthly savings goal in your budget.

Apart from that, you should also calculate and balance your risks versus rewards. This can be done with the help of the retirement calculator as well. For example, if you are unsure of what type of investment you should go for at the current or future time frame you are at, the calculator will be able to calculate the rewards and risks of investing in certain bonds, to help you assess if you will be able to attain your goals in time. The tip when it comes to investments is that the closer you are to the age of retirement, the more conservative your investments should be because you would not want to risk losing your investments that you may be partly relying on them to finance your retirement. After all, the stock market is a volatile one.

Lastly, prioritize on keeping money in retirement accounts, whether it is the 401k, IRA, or other form of accounts that works on a tax deferred basis. Having tax deferral means that there will be no owing of tax or interest income, dividend payment and capital gains since they are present in retirement account investments. Save up and avoid unnecessary expenditures. Retirement planning requires much patience to secure one's future.

Article Source: http://EzineArticles.com/5991777

Saving Money Tips - Little But Effective Ways How to Save Money

 By Dan Cavalli 

You really do not have to start big when you want to save money. You can save little by little regularly and in time, you'll realize that your little savings have grown into considerable amount that you can find useful and valuable when you need it. Here are some saving money tips that will show how in little but effective ways you'll be able to save from your hard-earned income.

Understanding the Relationship between Income and Expense
In order to recognize the value of saving money, you must understand fully well the relationship between income and expense. Income is the money you have earned from your regular job, your part time job, or from your business. Expense on the other hand is the money that you spend for what you need or what you want. Income goes in while expense goes out.

In a normal situation, what goes in should be higher than what goes out. The money in between is what you now call as your savings. However, most people find themselves in the reverse situation where the money that goes is lower than the money that goes out. These are the people who spend more that what they earn for whatever reasons.

How to Save Money in Your Own Little Way
You can save money in your own little way. You can find the difference between your income and expense ensuring that the former is higher than the latter. Since saving money is always a decision, you can always choose to maintain the ideal to normal relationship between income and expense. The simple principle is to spend less than what your income is.

Saving from your utilities like water and electricity may yield a small amount but when put together over a period of time, you'll be surprised at how much money you can save from this little act. Introduce some small changes on your buying behavior; it pays to keep in mind to always base your purchase on what you need instead of what you want. Limit the use of your credit cards; instead, make it a point to pay in cash.
It is easy to overshoot your budget when you spend using your credit cards instead of paying in cash. The temptation to spend more that what you actually need is higher with credit cards. You may not be conscious about your spending and the interests you accumulate since credit cards allow you to pay the minimum amount.

You fall deep into your debts not only from your expenditures but also from the accumulated interests. Start to save money now in your own little ways. Consider these saving money tips to develop the good habit of saving. You can then proceed with bigger savings once you have developed the habit.
It may be a little difficult to begin with saving money, but the efforts that you will put in today can empower you to enjoy financial freedom and big time benefits in the near future as you reach your goals.

Article Source: http://EzineArticles.com/5969701

Investment Financial Planning

By Bill Hildebrand 

Risk is defined as the probability of loss or to expose to loss. Anytime or anywhere you are investing your money you are exposed to some level of risk. Even if you have your money in relatively safe investments such as savings accounts or bank CD's there will always be a certain risk associated with that action. In this case it may be the risk of losing purchasing power to inflation do to the low return on investment.

When it comes to investment financial planning, it is critical to know what risk tolerance level you can withstand. When most people think of risk tolerance, they think, "How much can I stand to lose before I start to struggle." Risk is a huge part of investing because it dictates what sort of investment vehicles you can put your money into, how much money you can invest and for how long. Knowing your risk tolerance is one of the biggest keys to successful investing.
There is more to risk than just fear of losing money. There are other "risk factors" such as not meeting your financial investment goals, working with an incompetent financial adviser or putting investments in the wrong products at the wrong time. The most common goal when setting up your investment financial planning is for retirement. Risk can run the extremes of losing your shirt to being so conservative with your investments that you don't meet those goals.

The first thing you need to do is to take a personal assessment of your own risk and develop what is known as an investment personality. Everyone's personality will be different, they are unique like fingerprints. Some investors can stand to take some big chances now with the lure of a potential payoff down the road, while others who may not have much time between the time they start investing and the point where their financial goals need to be realized and can't take big risks.

This is where your investment financial planning comes into play. Using a retirement calculator to assess what your retirement needs will be can help you put together a plan that can tell you what you will need to save and what level of return you will need to meet those goals. You can then look at the options you have available to get there and choose the method that most closely matches your risk tolerance.

A good barometer to judge what your risk will be is how will you feel if your capital goes up, down or stays the same? Are you willing to be patient and accept small increases, or do you want to see the most possible movement? If you're sitting at your computer right now ringing your hands in fear that you might lose money on your investment, you should already be able to tell exactly what sort of investor you are. Losing sleep because you lie in fear of what is happening with your portfolio is absolutely not an option.

I developed a savings and investment program that can meet the risk tolerance levels for most people. The portfolio is broadly diversified and allocated to smooth out many of the bumps associated with investing in the stock market. The performance has exceeded the average stock market return since the portfolio was put together in 2003, which makes it ideal for people just starting to put their investment financial planning together or even those approaching their retirement date.

Assessing both ends of your risk tolerance is quite possibly the most important single financial decision you can make. Knowing how much money you can invest, how long you need to invest it and what kind of investments you want to buy into is very important. Once you determine your own risk tolerance, you will be ready to take the next step and start investing.

Article Source: http://EzineArticles.com/4521129

Steps Needed to Plan Your Retirement

 

Start Early and Invest
If you are like many Americans, planning your retirement should begin with your first job and taking advantage of one of most important financial planning steps a person can make: invest in your retirement account. Most employers will offer a certain percentage and the key to have a comfortable retirement is to start investing in your retirement early. That is not the only means of saving for retirement, but it is certainly one of the more lucrative and one of the easiest steps along your path to a comfortable retirement.

Lifestyle and Living Arrangements
Next step is to look at the lifestyle you have now and the lifestyle you would like for retirement. If you are looking to travel extensively, budget accordingly. Do you have family that lives far from you and would moving closer to them be a goal upon retirement? Factor in the elements that are most important to you - I would suggest picking only two or three things that you would want to accomplish or indulge in once you've retired and ask others who are already retired and done something similar what hurdles you may need to cross. No one knows what retirement is like better than someone already living it. While every generation will have its challenges, it's good to get the perspective.

Know What You Need
For any financial advice, this is the cornerstone. Knowing what resources you will need to live on now and what you will need for retirement is the key to a comfortable and successful retirement. Set a solid savings goal. Think long term and set a figure that you want to have saved and an age that you want to retire at. Next, all you need to do is break down that goal into smaller sections for you to accomplish within a given timeframe. Set aside all or a portion of any windfalls you may encounter to help cushion your savings. You cannot save enough for retirement if you do not know how much money you will actually need.

Annual Portfolio and Savings Review
At the end of the year, it is very important to review your IRA, 401K, savings, and other investments you've created for retirement and with the help of your personal banker, financial advisor, or accountant, see if you are able to invest any more into your retirement for the year. In doing this, you maximize your retirement allotment and possibly shift you into a lower tax bracket. As each state has its own laws regarding savings and retirement, it is best to contact someone regarding what you are able to do to take advantage of your retirement.

Planning ahead for retirement doesn't need to be expensive or time consuming, but the dividends can be substantial. A solid plan starts with clear goals, both short term and long term, and knowing what it takes to reach those goals. Reviewing your plan annually keeps you up to date on how you are doing on those goals.

Article Source: http://EzineArticles.com/6694633

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 dividends.

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).

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Family Financial Planning - An Important Part of Any Family's Success

By Joseph H. G. 

Family financial planning is perhaps the most important part of the happiness of a family. One cannot have a happy family if one has to constantly worry about money. That's why it is important that parents and parent-to-be understand how to plan their family finance in advance.

The term "family planning" often used interchangeably with the words "birth control". Family planning involves the planning of the birth of your children at chosen times and the spacing of births a few years apart.

Having a good plan before marriage can save a family from lots of unexpected events. The couple will have time to focus on their work and their job and save enough money before having their first baby.

Having children less than 2 years apart or more than five years apart can affect the healthiness of the mother and the children. And by having too many small children the parents lose the ability to educate them to their fullest. The parents will not have time for each kid and some kids will feel neglected. As parents, we have the responsibility to provide food, clothing, education and shelter for our children. By having children at the right time, we are at our best to provide them what they need.

We can use many contraceptive methods to prevent unwanted pregnancies. Knowing and recognizing the importance of birth control is the first step to family finance. There are many organizations that will provide sexual education as well as free or inexpensive reproductive health care around the world so that even low income families have a chance to plan their family finance.

Family financial planning plays an important part in the success of any family. Before having your first child, you should plan well the resource your need to educate the child and any subsequent children to the best of your ability.

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Start Your Financial Retirement Planning Now!

By Eric Moy  

With the economy on the decline, retirement may seem impossible. However, if you are concerned about the financial security of your retirement years, you have to be serious about financial retirement planning. Financial retirement planning is the first step to ensure that the lifestyle you're dreaming of at retirement will have a better chance of becoming a reality.

No matter how old or young you are, it's never the wrong time to think about financial retirement planning and start a retirement savings plan. However, the earlier you begin the better off you will be. Chances are you will have a larger nest egg at retirement if you begin saving at 30 years of age instead of 60. With more years to invest your investment will have a better chance of recovering from any drops or bump along the way. The longer your money is invested the better your chance of securing your future. By planning for your retirement needs, you'll identify what you need to do in order to secure your future and be in a better position to deal with most issues that may otherwise confuse you and do damage to you financially.

The first consideration for your retirement savings plan will be where your investment money will go and for how long. As a basic strategy, you should invest some of your money in short term investments, medium-term investments and long term investments. The type of investment usually is determined by your time horizon. Generally, the more time you have before having to sell off the investment for cash, the riskier the investment.
If your time horizon is five or more years, which would be considered long term investments, you can choose investments that appreciate over time. Growth stocks and real estate are good long term investments if you have many years left before retirement. Volatile stocks or CDs are considered short term investments, investments that are held for a year or less, and should be reevaluated several times a year.

Times are different - you can no longer take the retirement planning advice of an investment adviser as gospel when it comes to financial retirement planning. You need to educate yourself and take charge of your money.
If you find planning for your retirement needs a daunting task, there are many retirement planning tools you can turn to for help. These tools include well-written books that can explain the difference between things like bonds and stock, etc. There are also individual classes and seminars that you can take to help you craft your retirement investment plan to reach the goals you set for your retirement.

You don't want to find out too late that you don't have enough money to cover your retirement needs. You must educate yourself to gain an understanding of what is possible with the money you invest. Generally, a balanced retirement savings plan should include investments in treasury bills, money market and savings account to provide accessible cash; stocks in small, medium and large companies for growth and appreciation; and other investments such as real estate for long term appreciation.

Your financial retirement planning should take into account the number of years you have left until you plan to retire. The more years you have to invest your money, the more risk you should take with your investment money. If you have only a few years before retiring, you should have more of your investment funds in readily available cash. You don't want to be at retirement's door with most of your money tied up in the stock market only to see a big portion of the money disappear in a market downturn, which can happen at any time.
If you do have many years before retirement, aggressive stocks and real estate can be a sound investment. Your nest-egg may growth faster with this investment strategy because the funds are shielded from certain taxes, and because real estate is a good hedge against inflation.

Financial retirement planning is not rocket science. It's mostly common sense. Besides there are many retirement planning tools that you can use to help you create the best retirement savings plan for you. However, even the best laid out plan needs to be reviewed and adjusted with the circumstances. Review your retirement investment portfolio at lease once a year and make adjustments as warranted. Don't let short term ups and downs in the market throw you off your path that leads to your goals. Ups and downs in the investment market are part of the normal cycle of investing. Stick to your informed long term plans and the bumps along the way should all even out over the years to provide for your retirement needs.

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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.

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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