Saturday, December 26, 2009

9 Tips To Starting An Investment Club

An investment club can take some time and work to start up, but it can be a lot of fun and very educational during the process. Investing in a group allows more money, more knowledge, and a feeling of partnership. Trust will be the main key.

1. Find compatible members for your club. You will probably want between 7 - 15 members for your club - too many can get very unwieldy and difficult to schedule, but too few will not allow enough capital to really invest.

2. Determine common goals for the group. Some people may want to get into get rich quick business, and investment clubs may not work well for these people.

3. Decide how much money the club will invest on a monthly basis. Some may want to invest a larger amount than others can afford or are comfortable with.

4. Form a plan for how the club will operate. Include rules about how money will be handled, what will happen if someone needs to withdraw their money, and how often the club will meet.

5. Fill out the paperwork. Form a Limited Partnership company (if that is what you choose - this can be the easiest way to start your business), and fill out the tax forms, as well as perhaps joining the NAIC. You may also have to register as a business in your community.

6. Select jobs. Have individuals fill in roles that you decided on in the plan. You might want to rotate jobs from meeting to meeting, so as to spread out the work, or you might have people specialize.

7. Choose a president, vice president, secretary and treasurer. You may also have a person in charge of education, whom would coordinate special guests who speak to the qroup.

8. Open a bank or brokerage account - you will need a partnership agreement or an operating agreement in place before you do this, as the bank or brokerage firm will require one to open a business account.

9. Set up a budget for the club. Record initial membership contributions, as well as determining what monthly contributions will be. You may also want to discuss having experts come in to talk with the group, so as to learn more about investing. Money for this may come out of monthly contributions, or may be added on to that month's expenses. Discuss this in advance to avoid misunderstanding.

By : royphay
For article "9 Steps to Starting An Investment Club", add resource box: More revealing facts and resources about investment clubs at

Saturday, December 19, 2009

Knowledge Is Power: A Research On Stock Market Investment

A stock, a.k.a. share or equity, represents one's ownership of a company. For example, a person who has 100 shares of company A, out of its total of 1000 shares, means he owns 10% of the company. As part owner of a company, the shareholder earns, when the company makes profit. In the same way, if the company loses, so does the shareholder.

A stock market is a place (real or virtual) to trade (buy and sell) one's stocks. The New York Stock Exchange (NYSE, and the NASDAQ ( are examples of real and virtual stock markets, respectively.

That's a brief overview. For a more comprehensive understanding, go to For the stock market investment newbie, try to play a virtual game at, without spending dime. Students can practice stock market investment at and

Then why invest in stocks? Because it earns 10% - 12%. This is higher than any other type of investment (savings account, bonds and the like). The way to earn is to sell your stock market investment at a higher price than when you bought it; the price difference is your profit. You can earn in 3 ways:

1. Buying stocks at IPO (Initial Public Offering). When companies decide to sell stocks, they will offer it at an initial price. After some time, with the company's good performance, the initial price increases, thus the earning;

2. Dividend. As a reward for investing in their company, the company may choose to give a portion of its earnings to its investors through dividends per share. However, this not a requirement for stock market investment, but purely voluntary;

3. Trading stocks. If you intend to invest in Company A, but did not catch its IPO, you can still do so by buying at the stock market. A broker, in your behalf, will bid for the best-priced stock of Company A, according to the price you want. The same happens, when selling. Compare and find the best broker at

The key to success stock market investment is to know everything there is to know, about the company and the factors affect its performance. Consult the following:

The official website of the company. This should show the company's corporate set-up, financial health and organizational structure as well as historical data of their stock performance.

Investment websites such as Yahoo!Finance, MSN Central and DowJone's MarketWatch;

The news. To be aware of all the factors that may affect your investment, be updated with the news. For all you know, the weather forecast is the ace up your sleeve.

Knowledge is power and so it is in stock market investment. Invest successfully, with the power of knowledge!

By : pilkster
Find out more about stocks and shares at

Saturday, December 12, 2009

Opening an Investment Account

Have you ever thought about playing the stock market? Many of us dream of hitting it big by investing $100 and earning $100,000 within a few years. But the system doesn't work that fast. Generally speaking, the market will continue to pay dividends over time, but the path may get bumpy and you could even lose part of your investment in a bear market. Never invest more than you can afford to lose.

The flip side of investing is that many people have earned comfortable dividends that built a retirement fund, put kids through college, or financed a new home. However, it takes time for an investment fund to grow, and the sooner you start, the better. Here are some tips for opening a fund that could pay off big as time goes on.

1. Start young. Open an investment account for your children and continue adding to it as they grow. Although you may want to maintain bank savings accounts as well, an investment fund is apt to grow more quickly and can provide needed funding for their adult years. Ask relatives to consider giving mutual fund shares as gifts instead of an overabundance of toys or clothes that won't get worn. A person who invests $2,000 by age twenty may have nearly $100,000 at retirement age.

2. Make automatic deposits. Set aside $25 to $50 each month for your investment account. You can have it deducted automatically from your paycheck so that you never see or miss that money. When you get annual raises or bonuses at work, consider adding a portion of those amounts to your investment fund, as well.

3. Choose a responsible broker. Do an online search or contact the Better Business Bureau to find a suitable agent to handle your account. Make sure that the person is someone who is willing to keep you informed and who shares your values and philosophy on investments. Schedule an annual consultation with your agent for a review of the previous year and a preview of the year to come in terms of what you might expect from your investment's performance.

4. Take an investment class or at least buy the book. Learn something about the way the stock market works both in your country of residence and the world economy overall. Don't become wholly dependent on an agent who may not be able to fully explain your account or plan strategic moves without your permission, which requires either your understanding or your trust.

Be patient. The stock market can play funny tricks on investors. Prices soar and plummet by turns, and your investment may look great one day and dismal the next. Keep in mind that the general performance trend since the market began is to pay out consistently over time. Don't panic when conditions get rough. Hang in there and stay cool, and you will likely be glad you did.

By : granola
To learn more the world of investments and trading, visit The Forex Trading Directory at

Monday, December 7, 2009

Investing For A New Business

Let's be honest, many of us dream have that one day starting up and successfully running a new business and leaving our miserable jobs behind to become our own bosses.
And whilst many do just that and at least make a go at running a new business there are even more who never quite stop dreaming about it and find the courage to actually do so.

One of the reasons people give for not starting up a new business is a lack of finance. Well firstly that is a very poor excuse, if you believe in yourself and your own abilities to make a success of your venture then that alone is the biggest investment you can make in running a new business. Yes, you are the most valuable asset a new business can have, you and your specialist knowledge, your pride in getting a job done properly and having an absolute belief in your own abilities to make a success of running your new business.

Let's say it again, ultimately you are the only thing worth investing in for running a new business and you don't cost a penny, dime or cent. So what are you waiting for?? Running a new business is absolutely free, you don't actually need to invest in it to get it off the ground because all the investment should come from within you and not from a bank or money-lender.

So once you've decided to invest in yourself, first in order to get your new business off the ground you are at some point going to have to think some sort of financial investment. See, eventually money does come into it but it is useless if your business plan is useless or you don't have the personal wherewithal to actually make a good idea happen and the best place to seek such investment will be your bank.

All banks will have a new business advisory department and they will be more than happy to talk with you of your business plans, so make sure your plan is a good and sustainable one and if it is: they'll certainly listen and if they like it, they will definitely lend you the money. It should be said that banks exist for you to borrow for things such as investing in a new business, they like people who are prepared to give it a go and if you demonstrate this and a fierce determination they'll lend you the money to kick-start your new business.

When investing in starting up and running a new business it is vital that you don't waste your initial investment on fancy cars, flash offices and a menagerie of staff. Basically, don't walk before you crawl, all these trappings of success will come in time but to start off creating an image of success ultimately will mean you will fail because the best investment you can make at this stage of running a new business is dedication and hard work, that's how you achieve lasting fulfillment and success and the trappings that go with it. If you just want the trappings without the hard work then don't bother starting your own business because hard work is a better investment than an unearned top-of-the-range motor.

Reaching to nature for the best metaphor to consider when investing for running a new business, it is a whole lot better to invest in a bag of acorns and watch them grow, yield and flourish than it is to buy a lot of old oaks and see them wither and die.

And finally, again, it should said the biggest and best investment for a new business is you, your idea and your desire to succeed. With these, you can't go wrong

By : Richard Callaby
Richard Callaby is a Independent Computer Consultant, Writer, Author, Speaker and Instructor. More articles from this author and many other authors on personal finance can be reached at

Saturday, November 28, 2009

How to Avoid a Bad Investment Property Deal

When considering investment property of any type, it may appear to be in top shape and without a flaw. However, looks can be deceiving, to ensure that you are indeed getting the deal of a lifetime there are some things you want to look out for, which leads us to this article "How to avoid a bad deal-five signs". We are certain you do not want to purchase any investment property of any type, only months or even a year down the road find out that the investment property was a bad one or it is simply hard to sell when the time is right, well, here is how you can avoid these things.

Say No to Flood Regulation Lines and Flood Plains

For those of you that do not know, a flood plain is defined as level land within an area that borders a lake, pond, or river. Typically, flood plains can be determined quite easily, if you notice any indications of delta plains, levees, back swamps, or oxbow lax, this will tell you it is a flood plain. A flood plain has high instances of flooding or high water levels.

You definitely want to stay away from these areas when considering a piece of investment property. The offer for that particular property may seem too good to pass up; however, you may find yourself having to face a great deal of headaches, frustration, and even damage later on.

Say No to Rising Damp

Again for those of you unaware of what rising damp is. This occurs when the ground water flows in a vertical manner through the wall structure of the investment property. The pores in the masonry allow the water to rise and effect the entire structure. Age, Bridging, and Earth levels can all lead to rising damp.

There are many different ways of identifying rising damp. For example, if you attempt the paint the walls in a piece of investment property suffering from this occurrence, the paint will simply not take. Additionally, you will find that wallpaper will experience the same result. In fact, existing wall paper, if it has lifted from the walls, will possess stains underneath.

Take a moment to feel and inspect the plaster walls. When feeling it, test it to find if it will flake easily or feels soft and spongy. Furthermore, inspect the way the plaster actually looks, if it looks like crystals or a powdery substance, the investment property likely has rising damp. Further indication of rising damp may include falling or fretting mortar, skirting boards, mold, or rotting floorboards.

Inspect for those Annoying Pests

Pest inspection should be one of the very first things on your list when looking into any type of investment property. It may cost you a little bit of extra money, but in reality, the inspection alone could result in actually saving you money at the same time, not to mention the hassle of dealing with pests.

Peace of mind with investments comes with having a pest inspection done by a professional service. With a professional pet inspection, the property will be completely inspected and you will receive a report with findings on pest issues, such as termites. Experience, knowledge, and reputation all must be considered when looking for a pest inspection service.


When you are looking into investment property, the one thing you want to stay away from are bad investments. A good deal, comes with a great price and sound surroundings and structure. Anything less, may point to a really bad investment. Find out here, what you should be looking for to ensure you end up with a good investment.

By : Brooke Hayles
Brooke Hayles Check Out More Helpful Information About Investment Property For FREE! Visit Now!

Saturday, November 14, 2009

Classic Wall Street Wisdom

A classic story told to new investor is the one in which a young investor seeks help from an old investor. The young investor had a serious problem. He had invested in extremely expensive stocks and the market was turning on him. The market was overvalued and he thought perhaps had invested in too much risk. Not knowing what to do he went to the elder investor to ask advice. The young man didn't sleep or eat because he was so nervous about his decision. After hearing the young man's problem, the old investor told him to sell and sell back to the sleeping point.

This is perhaps simple wisdom from a simple time. However, there is truth in the advice. The old investor was telling the one young to sell enough not to destroy his financial stability but keep enough that if the market does increase he wouldn't kicking himself in the behind. Obviously neither investor knew what the motion of the market would be - after all it is about speculation. This are the same concerns that new and old investors alike have day in and day out.

This begs the question, what is a sleeping point and how do you find it? A sleeping point is determined by a investment formula. These formulas are designed to help you inject caution into your investment portfolio when risks are high, and help reduce safety measure when risk are relatively low. This allows you to benefits when prices do increase. Investment formulate work automatically, once the formula is decided upon based on your needs and wants as an investor. A sleeping point refers to the specific point of a specific investor in which he feels comfortable financial (thus allowing him to sleep). Sleeping points differ from investor to investor. Some thrive on the thrill of an volatile market while others perhaps steady and slow grow of a flat cycle.

Choosing an investment formula is only one of many tools which can help with investing. Remember formulas can be changed at any time to fit an investors changing needs or level of confidence. Never let an investment formula overrule sound research, and your own comfort level. Investment formulas help you with risk but certainly can not tell you what stocks to buy or what currency to trade. These are merely guidelines to help you figure out what direction you would like to go in your investment endeavors. For example if you are interested in a particular security you can use your formula to determine how far you are straying from your own investment goals. Alternatively it can also show you how well your choice adheres to your preset portfolio guidelines.

Additionally, formulas allow for the casual investor to have professional help without having to pay professional fees. Financial advisors are great sources of information however, with each investment movement (buy, sell, trade) the advisor takes a commission. Your financial advisor profits even when you don't.Find your sleeping point, develop a investment formula, and go with your gut - these are the ways to achieve financial freedom.

By : Mika Hamilton
Mika Hamilton runs a website offering free investment tips and strategies for people looking to get started in the investment world.

Thursday, November 12, 2009

What is a HYIP?

HYIP is a term which you will come across often if you are trying to make money over the Internet. It stands for High Yield Investment Program; these are not just Internet based investment programs and are also available offline. The term HYIP is an umbrella-term which incorporates any investment opportunity that gives a return on the initial investment of between 4-5% per year. The way in which they work is fairly simple. The money from everyone who invests is collected together and the site organizers then use it to invest in more traditional areas. In effect, they are investing in the programs which require a large sum of money to begin and can afford to do so by combining everyone's small individual investments.

HYIPs which are not Internet based work on the same principles as online ones, only their starting investments can range from a minimum of $500,00 up to millions of dollars. For the private investor, or an individual just wishing to supplement their income, this is not a realistic sum to have available for investment and so offline HYIPs are not feasible options.

For the normal private investor, Internet based HYIPs are the only possible solution to the investment quandary. However, these programs are often cloaked in secrecy and so can seem like a dangerous investment to make. In contrast to the offline programs, you will often find that you are unable to gain any information regarding the investment types that are made on your behalf. Corporate information of the website, such as the registered address or background information pertaining to the site organizers, is often not available for viewing. This is not usually done for the sole purpose of hiding information from the investors, but more to prevent people from using the knowledge of the site organizers to create their own online HYIP.

Online HYIPs may pay interest daily, weekly or monthly. The typical return rates on these are generally between 1-7% for daily paid, 7-50% for weekly paid and 20-200% for monthly paid.

The way in which you can start to invest with these sites is very easy. You simply go to the site you have chosen and register with them. This then creates your online account, into which you deposit money which you then invest. The profits are then paid into that account depending on how often your particular investment pays.

These schemes work by investing the money from a number of private investors and then sharing a portion of the profits back with the investors. It gives the investor the high returns that would not normally be possible given the low amount of money that is available for investment. There is still an element of risk involved - no investment can ever guarantee to make a profit as the market changes continually. There are also fraudulent people who set up HYIP sites, wait for people to invest and then run off with your money. This makes it vitally important to choose your program wisely.

By : stevegink
This and other hyip educational articles can be found on Also check for curently available HYIP Programs.

Friday, November 6, 2009

Penny Stock Market For Dummies

The penny stock market consists of stocks that are traded for less than five dollars. To pick a winner you need to find stock that is above one cent. If you see that there are stocks for less than a cent, you shouldn't invest. In the penny stock market, any thing less than a penny isn't worth investing. You will never gain anything from a stock under a penny. With the penny stock market, there are risks like any other stock market. In fact, it is just like the regular stock market except you buy stocks for much less. That's why you should treat the penny stock market like any other investment.

When you are planning on investing in the penny stock market you will want to know how to invest. First you need to open an account for your broker. Then you will need to find a financial adviser. A financial adviser will tell you what to invest in the penny stock market and what stocks you should avoid in the penny stock market. They will budget, record, and plan all your investments. Even with a financial adviser, you will need to do your own research in the penny stock market. You need to know every thing about the company and the stock that you are purchasing. With proper investing, you should be able to benefit from quick gains from the penny stock market.

The only way to be successful with the penny stock market is to know what companies to invest in through research. Research is key to any investment. The penny stock market can give you a good investment and some money, but you need to know when to sale and when to buy. You need to realize when you are in a risk. This could take years. The penny stock market, like any stock market is very tricky. It's more of trial and error than anything. That's why you need to have trusted advisers and know where to get the good research on your penny stock.

Like other stock markets, the penny stock market is a pit of schemes. One way to know for sure that you are playing into a scam is when they begin to push the stock too much. When they start encouraging you to buy cheap penny stock at large quantities, there is something up. They are noted for being one of the many get rich quick schemes. First, there is not way to get rich quick, especially when it comes to the penny stock market. The only way that you can gain a real investment is if the stock becomes to be bigger or worth way more than you bought. Don't get distracted by the investment or the broker.

By : moneyworks
Find Out More About Penny Stock Investing:

Thursday, October 29, 2009

How To Succeed As An Aggressive Investor

Aggressive investment strategies are new ways of managing your investment portfolio and actively allocating the assets so that you can get the maximum possible returns from your investments. The target of aggressive investment strategies is the growth of capital. This is why aggressive investors put more of their assets in equities instead of safer debt securities. This means that their investment has a higher risk associated with it.

The Significance Of Time Factors
Aggressive investment strategies are useful if you have time factors in your favor. You should have the capacity to wait a few years so that you can take full advantage of the investments. You should also be able to tolerate a higher degree of risk. A solid foundation is must for building a financial empire. In order to establish a financial empire you must follow certain sound foundational rules of investment.

Keep Safe What You Have Gained
You must devise aggressive investment strategies so they maximize your return on investment and keep safe what you have earned. This will prevent you from becoming entangled in a cycle of profit and loss. You should analyze your source of employment to improve your strategies. Identify the expenses that take most of your income. If you find a technique to manage any of these expenses, you will be able to build more wealth without spending extra money.

Aggressive investment strategies require answers to the following three questions.

1.For how long can you comfortably invest the money? The question seems simple but the answer is important. For example, if you cannot hold your investment for a long time and make your investments in the stock market, you may have to withdraw your money during a down cycle and turn out losing money. On the contrary, if you can wait for a period of 20 to 30 years, the chance of gaining money in the stock market is better.

2.What is your expectation for the profits earned? In order to answer this question you must be realistic. Huge gains from a low risk investment, is not a realistic prediction. A certain gain from a high risk investment isn't realistic either.

3.What degree of risk are you comfortable with? If you want to invest in a high-risk venture be prepared to lose your money. If you decide to invest in a low risk venture don't expect huge returns.

Additional Help
Many people specialize in investing. It is often best to seek the advice of the experts when investing money. Stock brokers can be of assistance in the stock market and real estate agents can be of assistance in the real estate market. They've spent years acquiring invaluable knowledge of their field and can help you reduce your risks and maximize your returns for a fee.

By : David Gass
David Gass is President of Business Credit Services, Inc. His company publishes a free weekly e-newsletter on Small Business Consulting at their web site

Saturday, October 24, 2009

How to Choose the Right Investment For You

Choosing which investment is right for is a complicated decision. While you can seek advice from financial professional, ask for tips from family and friends, and do research - in the end the decision is solely your own. This can be an extremely scary situation. However, before you may any type of investment make sure your survey your entire financial situation. Take in account your present financial needs as well as any future needs that you might be award of. Most investors should not invest in any high risk securities unless they have a solid regular income, insurance, and cash readily available in case of a financial loss. There are several basics to investing that should be taken into consideration.

The first of which is to understand that any type of investment involves risks. There is no sure thing and no one can predict the future. The next rule is to remember that the more risk involved the higher the potential profit. The opposite is also true. Low risk investment vehicles have do not offer high return rates. Make sure any company you invest in your fully understand. There are no "take backs" in investment world. Mistakes are can not be undone and therefore must be lived with.

It is also important to set investment goals before you begin to invest. Ask yourself "what do you want to accomplish with your investments? Are you saving for a vacation, early retirement, or a college fun? All these are important in determining how to diversify your stock portfolio. Goals go hand and hand with safety. Safety refers how conservative your investments will be and how likely you are to loss your original investment. If you are investing to have an income then you need to pick stocks and mutual funds which offer a consistent profit over a long term period. Growth is also another direction you may want to go. This is when the goal of your investment portfolio is long term investment which carry more risk, less safety, and provide no dividends.

Some investors are simply interested in speculation and day trading. This is a much more aggressive form of investing. Speculation stocks have a much higher risk of loss then your average stocks. For the most part speculative trading happens over short intervals of time with new and innovative companies which have yet to prove they can be successful. The risk here is that if the company takes off you have made a huge profit, however they fail, you suffer a great financial loss.

The goal of any investment portfolio is be balance. Having high risk securities for aggressive profit coupled with low risk slow money makers that are always stable. You do not have to choose a single approach. Instead use a combination of the above goals. Determine the portion of each you with your stock portfolio to be diversified in and then begin your investment endeavors. If you feel overwhelmed or simple would like some help you should seek out a financial advisor who can offer direction, experience, and great stock tips.

By : Mika Hamilton
Mika Hamilton runs a website offering free investment tips and strategies for people looking to get started in the investment world.

Tuesday, October 13, 2009

Second Home Investment

Most people know that the best way to begin building wealth is to purchase real estate. After all, real estate is one of the few investment markets that is independent from other economic trends. Regardless of recession or inflationary periods, or wild rides on the stock market, real estate provides investors with a strong, steady increase in values.

This return on investment, and the ability to save money, is one of the reasons most people try to purchase a home. But what many people don't realize is that not only does it make a lot of sense to invest in a primary residence, it makes just as much sense to buy a second home, and receive many of the same financial benefits. There's never been a better time to make a second home investment.

In fact, many experts are suggesting that purchasing a second home for investment purposes is one of the smarter investments an individual could make. Investing in real estate isn't just for the rich and famous. There are a number of real estate opportunities that are quite affordable for the average investor, like condominiums and small homes. There are financing options that make the investment painless.

Let's suppose you've always wanted to own a second home for a vacation property. How much of the year would you or your family be using the property? For most people, the vacation property will be used a couple of months of the year at best. The rest of the year, the home can be rented out, sometimes creating more rental revenue than the mortgage payment. And of course, there's the appreciation of the property as well. In a few short years, you've grown a minimal investment into a substantial return, and had the benefit of the use of the property for your family vacations.

Another option is to consider a second home with permanent renters. Again, you can easily find mortgage options that require little or no down-payments, low interest rates, and low monthly payments. Your rental income covers the monthly payment, and you have a property that will only appreciate in value.

Second homes are also great transitions into retirement. Imagine having a second home rented out for the time being, but available for your use upon retirement. You may even have the home paid for by your retirement.

If you've owned your primary home for a few years, you may be unaware of the number of mortgage plans available that make owning a second home so affordable. Contact your mortgage agent to get information on these mortgage programs, and you'll soon be enjoying the wealth and security of a strong second home investment.

By : Jeff Nelson
Go to and get a free copy of Jeff Nelson's, "7 Tips to Avoiding the Biggest Mortgage Mistakes," a 10-page report that describes the mistakes to avoid when purchasing your new home in Phoenix, Arizona.

Monday, October 5, 2009

Investing: Level-Headed or Lazy?

Passive investment management may be the Rodney Dangerfield of financial strategies--it gets no respect. Active investment strategies have had the spotlight so long, some investors may be surprised to find there is an alternative to stock picking, market timing and other faster-paced, more glamorous methods.

Active investment management uses research, investigation and analysis to select investments that the selector believes will outperform the general market indexes. Passive investment management invests in broad market sectors and accepts the average returns those sectors produce.

The research, investigation and analysis inherent in active investment management come at a cost. Active management usually results in higher turnover within the portfolio, potentially generating trading costs, commissions and taxes. Those costs should be calculated against the higher gains that active investing may have over a passive strategy; in other words, is the potential for additional gain worth the near-certainty of additional cost.

Passive investing seeks to take some of the prognostication out of the investment process, as well as the possible emotional impact. Daily evaluation and re-evaluation of investments can cause you to overlook more subtle trends and to lose sight of your personal big picture. It's easy to get caught up in the next great investment pick or strategy. Ignoring the hype in favor of the buy-and-hold tactic may help keep your portfolio on course.

Passive investment management does not, however, mean purchasing investments and then ignoring them. Your portfolio will need to be rebalanced periodically to make sure those sectors performing better than expected don't become too great a share of your invested assets. Changes in your personal life (marriage, children, divorce, death of a spouse) may also necessitate changes to your investment plan.

Neither does it mean foregoing the assistance of an investment professional or financial advisory team. These professionals should help you determine your investment goals, the amount of money needed to reach them and the best strategies for accumulating that money. They play an important role in keeping you on the right course, especially when deviating becomes most tempting.

All investments involve risk, whether selected as part of an active strategy or a passive one. Passive investing does not "loss-proof" your portfolio. On the flip side, past success is not indicative of future performance, as active-style proponents might have you believe.

In the end, you have to weigh the lower costs, style consistency and tax efficiency of a passive investment strategy against the potential greater returns of an active investment strategy. Your financial advisor can play an important role in helping you determine which style best suits your investment time horizon, risk tolerance and investment experience.

By : Robert Valentine
Robert Valentine is a well-known expert in the matters concerning investors. His articles on financial planning matters that concern investors have been published by several publications throughout the United States. Please visit his website, to view his column.

Wednesday, September 30, 2009

More Stock Market Investment Tools: The Investment Newsletter

A newsletter is defined as a publication which is distributed on a regular basis and which discusses one main topic for the benefit of its readers. Newsletters are published by clubs and business companies to provide their clients with company relevant information.

A stock market investment market newsletter is published to provide stock market investors with insights on the current trends in the market. These types of newsletters are distributed by trading companies to their subscribers and clients. A stock market investment newsletter provides news, analysis, interpretations, and commentaries that are related to the market developments and which are relevant to a trading company's subscribers and potential clients. It is meant to help the stock market investor to choose the right investment opportunities and how to invest sensibly.

An investment market newsletter is very similar to other popular newsletters. It is usually written for stock market investors and usually contains the following:

* Company profiles - this information includes the company's description, trading history, and its recent stock charts;

* News articles - these articles inform the stock market investors on the current trends in the market and the company's recent developments and milestones in the stock market;

* Stock portfolio - a stock portfolio is the compilation of the company's stocks, bonds, and other investment related resources.

* Features articles - these articles may include features about the trading company, tips and other helpful hints about the stock market.

* Monthly top gainers and losers - this part of the newsletter is very helpful because it shows and compares the price movements of stocks over the previous month. It could also be done on a quarterly or annual basis.

* Stock performance tables - the investment newsletter can feature and compare all the stocks which are related in type and provide financial and other useful information.

Stock market investment newsletters are printed and are usually published online through the trading company's websites. Subscribers can get a free copy for their own personal use, and potential clients can always view and download from the company websites. These websites also provide archives, or past copies of their stock market investment newsletters which subscribers can easily access and read from their personal computers.

Others say that stock market newsletters provide subscribers and investors with investment tips and present them with all possible styles and methods. Investors can now easily see which stocks to buy, which companies to buy stocks from, and what particular techniques work for him - all with the help of a stock market investment newsletter.

By : pilkster
Find out more about stocks and shares at

Wednesday, September 23, 2009

Forward Planning: Saving for an Investment

Yeah, you may have ideas, good ones. And you may have a solid business plan that will make you more money than even you can comprehend, but without the capital to make your first investment, your plans may never become a reality.

To get started in real estate investing, many new investors look for ways to finance their first project. These financing options include borrowing equity from their home, taking out a second mortgage, using credit cards, or taking on a business partner. While all of these options have been proven successful strategies by more than a few investors, they are risky and may cost you more than you think.

The first rule about real estate investing and investing in general is to never invest more money than you can afford to lose. If you max out your credit lines in the hopes of making a profit, what will happen to your financial stability if the investment fails? Can you really afford the payments and interest required to pay off these lines of credit? If you have to borrow all of the money needed to get started, the answer to these questions is not going to be positive.

To make your financial future as stable as it can be, you should be able to produce the majority or a good chunk of the money needed to make the investment yourself. This may mean that you have to start off your career in real estate investing on a much smaller scale than you previously planned, but the sacrifice is well worth the peace of mind and well being of your family.

You should start saving for real estate investing just as you would any other major type of purchase. Figure out when you would like to make your first investment and how much money you would like to invest. Then, figure up how much money you will need to put back each week to meet that goal.

Don't forget about interest-bearing accounts either. If you have some time before you want to make your first investment, you can multiply your savings by purchasing bonds or by investing it in stocks. Of course, you wouldn't take as much risk with this investment as you would other types of investments, but you could earn a good deal of interest on your savings which will only help you meet your goal sooner.

Once you have made your first investment and seen profit in it, you can take part of this profit and invest it in future projects. If you keep doing this with each investment, you will soon be able to invest on the scale that you dream about without ever having to go into debt and risk your home and family to do it.

By : James Klobasa
James Klobasa, once broke with no job and $20,000 in debt made a choice that changed his life forever. That choice was investing in Real Estate. You too, can make that choice. Learn and be kept up to date with the latest information at

Friday, September 18, 2009

Some of the Basics of Investment Planning

In today's current investment markets, there has been an increase in the number of individuals deciding and adhering to an investment plan. Perhaps this is caused by the drastic increases in the cost of living or the profound insecurity about the future of social security, and retirement funds. Many families are looking for investments plans which help them build two funds - one for the future and one for the present. Most people are not interested in purchasing stocks and bonds. This is both time consuming and complicated.

Investment plans essential allow the an investor to buy a set number of stocks, bonds, and securities. Purchasing is done on a regular and consistent basis. Funds for the investment are taking directly from a check, savings, or money market accounts automatically. These money is used to buy stocks and bonds that were pre-decided upon. For the most part you can change any of variables at anytime. These variables include amount, frequency, and what stocks are bought. There may be fees associated with changes. Make sure these fees are known before you sign your contract with your broker. However, if you are looking for more freedom most online investments firms allow you to change your variables anytime for free.

The next important step in an investment plan is figure out how much money you would like to invest. It is a good idea to have a household budget. This will allow you to clearly analyze how much extra money is available for investing. Due to the long term nature of investment plans, you would suffer a financial lost if you had pull out early because you invested more money then you could afford. Make sure the amount you pick is readily available for each time the investment comes up. Remember just because you have extra money now does not mean in the future you will. Many investors come up short several months after starting their investments plans because they did not budget for an emergency fun. If you do feel you are at point where you can not no longer make a regular investment more investment companies will allow you to reduce or hold the next schedule investment.

Now you know how an investment plan works and you have the money to invest. The next question is how do you decide what to invest in. Research is the key component to this step. It does take time to decide but it is well worth the effort. Make sure you find stocks that have a history of performing well in the long term. At the time of purchase they may be expensive however they will probably also continue to increases which will directly benefit you. As you feel more and more comfortable with investing feel free to add more stocks and bonds to your portfolios. Many financial experts believe that diversification is a great way to increase your investment profits.

Investment plans are a great for the casual investor to make safe, low risk investments which will lead, in the long term, to increased profit and financial stability.

By : Mika Hamilton
Mika Hamilton runs a website offering free investment tips and strategies for people looking to get started in the investment world.

Wednesday, September 9, 2009

About Different Kinds Of Investments

INVESTMENT is the placing of funds for the purpose of getting some income return and/or an increase in the invested principal. Return in the form of interest constitutes a rental for the use of the money and as such has been socially acceptable for thousands of years; indeed, tablets and inscriptions from ancient Egyptian and at a specified rate was a common business transaction even in those days. The modern world contains many investment media; among them are real estate, life insurance, commodities, bonds, stocks, and savings accounts.

All forms of investment have in common the following characteristics :

1. the amount in-vested, called the principal;
2. the rate of re- turn, usually stated as an annual rate in per cent;
3. the degree of risk;
4. the liquidity, or how quickly the investment may be converted into cash;
5. the capital gain, or increase in the value of the principal, sometimes termed the grown factor.

Assuming a certain principal amount, the other four factors vary widely with the nature of the investment.

In order to achieve high safety and high liquidity, growth and rate of return must be sacrificed. On the other hand should high return or growth be desired, it is equally apparent that some degree of safety and liquidity must be sacrificed. No investment will combine high safety with a high rate of return; these are always in inverse relationship, and it must be borne in mind that this is a basic fact of both savings and investment in general.

If you like to be an investor you must first accumulate funds for investment, and to keep your savings safe must be your first consideration. This will immediately limit the number of media into which such funds may be placed. After you have accumulated an adequate amount, then will be the time to consider whether higher risks are justified.

How much should be the goal before further investment, with attendant higher risks, is attempted? The answer cannot be given in the form of an exact amount, because your total income and expenditures will influence the latter; but most authorities agree that a "nest egg" or "rainy day fund" must first be obtained which is the equivalent of at least three months' salary. After that, further savings may be made for investment at a somewhat higher risk. Thus, if you guard against unforeseen emergencies, a program of investment with some degree of security and peace of mind may be
undertaken. We must emphasize that no short cut should be resorted to here.

Investment for the person with an average income adds up to different steps:

1. A slow accumulation of cash for retirement or as an emergency fund,
2. The built up of an additional fund for investment,
3. using those savings for investments in different areas like stocks, options and/or property.

By : Leokadia Angela
Leokadia Angela runs her property auction site on:

Monday, August 31, 2009

Which Investment Club Should You Join? Is it a Safe Stock Market Investment Club?

Would you join a safe stock market investment club where you met regularly with friends to have a good time, learn something, and hopefully make some money? If you said yes to that statement, you might want to consider joining, or starting your own, investment club.

An investment club is simply a group of people who share an interest in the stock market pooling their resources into one large investment. Investment clubs are long-term commitments. They are a wonderful way to get to know the stock market, have a good time, and, over time, make some money. But making money should not be the primary reason to join an investment club - since investing is always, even in a shared setting, a risky venture.

Generally, an investment club has between 10 and 40 members, though many seem to settle around 16 as a good number. Decisions on investing are made democratically, either in a one person, one vote fashion; or with weighted votes, where each person`s voting strength is determined by the amount they have invested in the safe stock market investment club. Safe Stock Market Investment Clubs can be partnerships, or corporations, though partnerships are more common. They can meet monthly, or twice monthly. They set up different committees, they research stocks in different ways, they each have their own investment goals.

Investment clubs are as individual as the investors that make them up. What they have in common is a desire to get to know the ins and outs of the stock market. To come together with like-minded people to realize more from your investment capital, over the long-term, and to enjoy yourself while you are doing it.

Enjoyment is a key part of an investment club. If you`re not having fun while you are participating in the safe stock market investment club, it`s probably not the safe stock market investment club for you. And it should go without saying that if you are looking to make a quick profit, an investment club is not the place to be.

Unfortunately, it`s often difficult to join an established investment club. Many of them have been operating for years, even decades, with the same members and they aren`t likely to grow. Which leaves many hopeful club members with the option of starting their own safe stock market investment club. This is a great option, but it should be considered carefully. Make sure that you fully understand what needs to happen for your safe stock market investment club to be successful, and be sure you are starting for the right reasons. Here are a few points you might want to consider:
Are you being realistic?
If you`re starting an investment club to make a large profit in the stock market, you`ll likely become very disappointed. The goal of an investment club is to learn more about the stock market, and to have fun. If you have dreams of becoming rich you`ll be starting the safe stock market investment club for the wrong reasons. Remember, joining an investment club means joining for a long period of time.

Are you willing to be an amateur?
Starting an investment club won`t make you an expert in the stock market overnight. In fact, an investment club is ideal for a group of amateurs who want to learn about how the stock market works and what it can do for them. An investment club is a safe environment in which you can invest without the worry of losing a large amount of your hard earned dollars when something unexpected happens.

You can start with a little.
Don`t think that you need a lot of money to start an investment club. You can set a minimal fee for each month`s contribution that will fit into your budget. You can determine what that minimum monthly contribution should be when you have your first meeting of the investment club.

There is strength in numbers.
On your own you may not have enough money to invest in the stock market in a way that will let you realize a reasonable profit. However, when you combine your investment dollars with the dollars of others in the safe stock market investment club you`ll have a significant amount of money to invest in the stocks that you think may be successful. Keep in mind that just as there is strength in numbers there is also a shared sense of security when you`re not investing alone.

Do you like democracy?
One thing that you should keep in mind is that your voice will be part of the larger group and you may not always get your way. If you`re unable to sit back when you`ve been outvoted on a favourite stock, and let another investment choice be made, then an investment club might not be for you.

Can you be satisfied with a learning experience?
You should be prepared to never realize a profit from the stock market. One of the key parts of an investment club is the benefit of studying the stock market with other people with the same interests as yourself. If you never make a penny you should still be happy with your participation as part of an investment group.

Investment clubs are great ways to get to know the stock market in a safe, supportive, and fun environment. Starting your own investment club will make sure that you have a safe stock market investment club that will closely reflect your interests, though there will be compromises in any group setting. Friends, fun, a chance to study something you are keenly interested in, and a chance to make money. An investment club can be the best of all worlds.

By : jimmycox
Who Else Wants To Learn A Simple, Step-By-Step System For Generating Quick & Easy Profits, Trading Forex? - FREE FOR A LIMITED TIME -

Wednesday, August 26, 2009

Best Stock Market Investment: How To Choose Investments That Pay Off

Some financial experts say that engaging into a more lucrative but challenging world like investments are not specially made for the faint hearted.

With the economy seemingly riding on a roller-coaster ride, investing with the right stock seems to be next to impossible. However, with the advent of information technology, people from all over the world go crazy over stock market investments. It is because the convenience of information technology had found its place in the world of investments and computing.

Today, stock market investments are selling like hotcakes. It seems that it has always been the focal point of every investor to get a stock no matter what.

So, for those who would want to get the best stock market investment they should look into the following for advice:

1. The stock market is risky business

Generally, most people believe that buying stocks are as easy as 1-2-3. Of course, it can and in fact anybody is capable of doing it. But the problem lies on the fact that few people only know when to sell. And that is, in its greatest sense, the heart of stock market.

So, the best advice for people to get the best stock market investment, it is best not to gamble everything that they have on it, especially if they don't have a good understanding of how it works. It's better to loose a little than loose really, really big.

2. The "trailing stop strategy."

Most experts incorporate this when getting stocks. What they usually do is to "ride" their stocks really high, and maintain an exit strategy in the event that things get out of hand. This is where the liquidity of their investment is extremely vital to one's business. That is, they should know that whatever liquidity they have can be easily converted into cash.

3. Invest only in what you are comfortable with.

Even if particular investment opportunity, say, an exciting IPO of a big company, looks very attractive, it is a must for every investors not to invest on it if they are not prepared to risk losing their money on it. In this way, people will be able to get the best stock market investment by following this very important advice.

Finally, most stock experts recommend today that people who want to get the best stock market investment should use the every day costs in the stock market investment strategy. It would be better if investors would always carry a handy calculator with them.

The most important thing about stock market investment is not so much to pick the best but to avoid the losers.

By : pilkster
Find out more about stocks and shares at

Tuesday, August 18, 2009

Tips for Successful Investment partnerships

An investment partnership is extremely easy to set up. It refers to a situation when two or more people join together with the intent of going into a business. The process is simple and includes applying for the right licenses and files the correct forms with the state.

Most investment partnerships bring together people who have skills and enterprise which compliment each other for example a construction company and a material wholesaler. It is important to remember that each partner within a particular business is taxed individually but everyone partner is liable for the debts of the company.

The Pre-Partnership Agreement

A investment partnership retains all the the rights that an individual has under the law. A investment partnership has the ability to own property, execute files, and turn a profit. Both taxes and liability fall on the owners of the investment partnership.

Additionally if a partner dies the company has to be dissolved and then re-established if the remaining partners wish to stay in business. When the investment partnership is originally created it is important to have an agreement in which all the percentages of profits and shares are openly addressed. There should also be a plan for all the shares and debts will be handle between the partners. The original agreement can be alter if the majority of the partners agree to the amendments. investment partnership agreements are great mediation tools which can allow for conflicts to be resolved simply by citing the investment partnership agreement.

Advantages to an Investment Partnerships

There are several advantages to this type of business investment. It is both easy to set up and also inexpensive. Especially for family run businesses and makes the potential profit for the business unlimited. A business becomes stronger and more profitable when there are more people and therefore more resources available. The more people within a investment partnership, due to the pooling of assets, the more a lending company will be willing to get to the investment partnership in the form of loans. It allows for a general business venture while still maintaining each partner's area of expertise.

Disadvantages to an Investment Partnership

Obviously there is a great deal of advantages however there are also a downside to investment partnerships. They do have to be resolved if a person dies. This is more of a hassle then anything else but certainly the redistribution of shares, and the finding of a new partner can be difficult and time consuming. If there is conflict between the parties involved, any partner can resolved the business at any time. Once a investment partnership is dissolved the shares, profits, and debts must be split up. This usually ends with a great deal of financial lost for all partners involved.

Certainly the benefits of a partnership outweigh the risks. However, like all things in life, there must be a great deal of research, planning, and implementation which needs to take place for any business partnership to be successful.

By : Mika Hamilton
Mika Hamilton runs a website offering free investment tips and strategies for people looking to get started in the investment world.

Monday, August 10, 2009

Your Financial Real Estate Investment Model

When you wish to become involved in real estate investing, there are several things you should do before you begin this endeavor. You will want to make sure you are making a good investment decision and understanding the terms and definitions of real estate is just one way in learning how to make a good investment.

Perhaps, most important of all, however, is understanding the financial real estate investment model. This is an analysis that will help you to determine what financing options you may have, as well as help you to develop an operating budget for your real estate investment. A good financial real estate investment model will help you to make sure this endeavor is a profitable one.

Before you can calculate your financial real estate investment model, you must first do research on the property. You will want to review all of the records on the property. The rental history is very important to determine whether or not this will be a sound investment for you. The cost of utility services, insurance and claims, taxes, loan documents, and previous loan payment history are all important in helping you to make a decision on this investment. All of this information should be gathered a studied accordingly.

The analysis of these items is crucial in your real estate investment model. If, for example, you determine that the property has had a bad rental history in the past or has not appreciated in value over several years, you may deem the property to a high risk property. In helping you to determine this, however, there are several other factors to consider.

The inclusion of other information in your real estate investment model is crucial. Data from all the cash flow determinants is just as important as the others. You will want to make certain that you have information on any and all operating expenses for the property, including those that can be recovered from the tenants and those that can not, capital expenditures, occupancy rates and all losses due to non-occupancy, and all other costs associated with the property.

This financial investment model will be produced from all of the information gathered on the property, including information such as market history, the economy, and any changes that may occur in the future that will effect the valuation of the property.

When you have all of the necessary information, the data should be inputted into your real estate investment model. Many investors choose to use software programs developed specifically for real estate investors, while others use Excel to produce the analysis of the data they have gathered. Many of the software programs can be found online or at major software companies. Once the information has been inputted, the analysis will begin and you will be able to determine whether or not the property you are considering will be a good investment or not.

Without a good real estate investment model to go by, you take the chance of purchasing high-risk properties which may result with a capital loss instead of a capital gain. To help you to determine whether or not a property is a good investment, thoroughly research the investment model you will be using by asking others what they use and talk to real estate agents specializing in investment properties.

By : currenz
Get Your Property Investment Guide for Your Success Now at Find Out Which Strategy Gives You Good Return.

Saturday, August 1, 2009

Top 5 Investment Tips

1) Do your research
It is very surprising to find that many investors do not put in adequate time into researching their investment opportunities. Instead they rely on what “the experts say”. Doing so may not be a bad idea at first, but in order to become a better investor you need to do your own homework and become very familiar with terms, theories and the numbers in the wonderful world of investing. Furthermore doing good solid research into an investment makes you more confident in your investment and takes away some of the worry that many people have with their investments.

2) Look to the long term
If you don’t feel comfortable in an investment for a long period of time then don’t bother investing in it. Look for long term value in an investment, and stay clear of “get rich quick” investment opportunities. Furthermore as a bonus, long term investing allows you to save a little on taxes. In most countries you get taxed on the capital gains you make on your investments. With careful planning and long term holding you can minimize the taxes you eventually have to pay on any gains you make in your investments.

3) Diversify
Diversifying your investment portfolio is a great way of reducing risk and the possibility of loosing money. But beware that diversifying too heavily can strip away potential return on investment that you may have enjoyed. Reasonably diversifying your investment portfolio eliminates some of the turbulence and makes for more consistent returns in your investment portfolio.

4) Use your extra money to invest
Don’t use money that you need to live. If you want to get into investing, it is wise to use your disposable income to invest. As you mature as an investor, then you can start using some more money from personal savings to invest. But never use money that you cannot live without to invest. In other words don’t use your rent or food money to invest, because these are things you simply cannot afford to loose.

5) Set your investment goals
An important step in investing is setting your goals. What kind of money are you realistically expecting out of your investments? Some people invest for their retirement. Some invest for their kid’s college. Different people have different reasons why they want to invest money, knowing exactly why is very important. The knowledge of where you want to end up with your personal finances makes it easier to choose the right type of investment and the way to go about it.

By : Sam Java
Sam Java is a writer for

Saturday, July 25, 2009

Investment Property - Finance It Creatively

When the sweetest of deals fall into our laps unannounced, should you pass it up? Definitely not, however, if you are finding low levels of financial resources, you may have to get a little creative in terms of financing. When you are looking to finance your investment property creatively, you have come to the right place. Here you will discover different and creative methods of financing your deals. If you do not want to use these methods, they will definitely get the creative juices flowing, at the very least.

Need a loan? Consider No Doc or Low Doc

These are perfect for those who have little documentation that proves the extent of your income or creditworthiness. Furthermore, it is particularly beneficial to those that work at home. A no doc or low doc loan works exactly as it sounds. Depending on the specific type, you will either be required to present very little documentation or none at all. There is a downside to these particular types of loans however, you will probably only receive the loan for around 80% of the value or purchasing price of the investment property.

A Friend in Need, is a Friend Indeed

Being creative in financial deals, means pulling all of your resources together, this could mean talking to your friends. Your friends may be the answer to all of your financial issues. They could be looking for an investment property, just like you, this could be a great solution for the both of you. You should, however, ensure that your friend is someone you have full trust in and know extremely well. How would it work? Well, both of you would place money to go towards the down payment; therefore, you both would have an investment property. Each of you would also have a hold and say so in both the mortgage and the title.

Family for Life

Family members are often an excellent resource when it comes to financing an investment property. Many people really do not want to go to there family and ask them to give you money. However, you could take a different approach instead of asking them for a gift or a handout consider asking for a loan. Much like a bank, only these are your family members. You should always offer to pay the loan back, within a specific period of time, at a predetermined rate of interest.

Remember this is an investment for them as well, an investment in you. Therefore, you should make the offer of paying back with interest. It is highly likely as a family member, that they will refuse the offer of interest and just want the initial sum paid back, but you should never assume and always make the offer.


What should you do when you have run out of financial resources, but you have a sweet deal on the table for investment property? Get creative!

By : Brooke Hayles
Check Out More Helpful Information About Investment Property For FREE! Visit Now!

Sunday, July 19, 2009

Using Investment Property Loans To Leverage Your Assets

Investment properties have lots of benefits when it comes to generating income and building long-term wealth, just remember that this wealth is not always as predictable and guaranteed as you would like.

As a means of diversifying your income across different asset classes, real estate investment is typically less volatile than shares in stock and in the past has been a haven investors rush to when stocks and other investment vehicles suffer. While investing in real estate has lost some of it's lustre since the boom times of the late 1980s and the early 2000s, sensible investments in property still have many attractions and should be considered as part of a diversified investment portfolio.

But before you can start investing in property you have to have the funds to do so. This is where an investment property loans can help you leverage your current assets. As long as your real estate property brings in more money that your payment on the loan you are generally in good shape and can grow your equity in the property.

You can now purchase investment property with more options and flexibility than you have ever thought possible, using investment property loans. Getting an Investment property loan is easier than you think. It is more than possible for you to intelligently finance properties with investment property loans.

Different loans require different things. We will discuss the options available to you in order for you to get your investment property loan.With the increase of lenders available for your investment property loan there has been an increase in the different down payment options as well. Many of them are based on things such as credit score requirements, and whether or not the property will qualify for a particular investment property loan.

While you can get a lot of accurate and useful information from the Internet, you can also get misleading information from the Internet such as claims saying a large down payment is required to get investment property loans. This is not the case anymore, as more and more people are investing in property without making any down payments or very small down payments. Lower mortgage rates can be obtained while getting the investment property loan you are looking for. This is easy when you put some sort of down payment on the property. This mitigates the banks risk and offers more options for the investment property loan. Many benefits can be obtained when a person uses a tiny down payment.

By : infocus
For more great loan related articles and resources check out

Thursday, July 16, 2009

What Property Investment Can Do for You!

Over the years property investment has been seen by many as an attractive venture. This has in the main been due to its high income yield and the fact that it performs well during periods of stable economic growth. With the last 15 years providing an extremely stable economy, many people interested in property investment in the UK are holding back due to fears that they could lose money should this period of economic stability end. Below we look at reasons why despite the risks, property investment could be the right way forward for you.

Property Investment for the Long-Term.

Generally speaking property investment gives you access to two main benefits: capital growth and tax advantages. Capital growth is the money you will make as the value of your property increases. Experts claim that property investment which is undertaken with a long term viewpoint is unlikely to lose money regardless of any changes in economic circumstances due to capital growth. This is because if you look at the long term history of property prices they have overall continued to increase. The house that you bought will have cost more than the same sized house that your parents bought thirty years ago. This means that as long you are never in absolute need to sell the property you can choose to sell the property at the right time to make you the most amount of profit.

Property Investment Portfolio.

One way to make property investment an even more secure type of investment would be to buy several properties in a range of countries. This would mean that even if the property market was struggling in the UK you would be able to get your financial security from the property you have elsewhere. If you are concerned about the costs involved in doing this then it is worth considering buying a property in a country which falls under the up and coming category. This would include countries which have recently entered the EU or are set to enter the EU. The property prices in these countries are as such that purchase of the property is certainly worthwhile.

If you are interested in finding out more about some of the benefits property investment can bring then it is always advisable to get in contact with a specialist who will be able to give you impartial advice.

By : Elizabeth Grant
Elizabeth Grant has been in the finance industry for more than 20 years and writes exclusively for specialist mortgage websites. To read more of Elizabeth's articles on Buy to Let Mortgages please visit

Wednesday, July 15, 2009

Why Land Is The Strongest Investment

There is a huge shortage of land in the United Kingdom, which is fuelling house prices and rising homeless, so buying land which is undeveloped that can be purchased is a great investment opportunity and taking into account the supply and demand situation in relation to the UK property requirements it is easy to see why.

Land value is rising steeply, and to many who thought this type of investment was only open to developers
and professional investors, this is just not the case anymore.

Top investment properties represent leading property developers in the UK who offer land investment on their prime residential developments which meet the overwhelming housing demand in England - and, the planning process is handled by the developer at no additional cost to you, with the buy back agreement in place before you spend one penny!

"One simple investment can make over 400% return within 4 years"

Many investors are buying because of the huge benefits of compounding on land that will give them massive profits in the near future using this proven method for wealth creation.

Land investment versus property investment
Land investment benefits from no mortgage, tenants, voids, maintenance, utilities etc, etc, etc, as you would expect when purchasing a property for investment, this would mean no headaches and worries at all.

Also with a property investment the initial outlay is higher, and there is no guarantee you would sell at a high profit in the present climate within 4 years, yet alone over 400%.

Land is a great low entry investment strategy with the benefits of compounding using this program, let me explain more.

There are now lots available from ?10,800 upwards and with the buy back option from the developer in the period of 4 years at around 425% growth, you can make a return on investment of around ?45,700.

If you now work this out and compound your land investment of ?10,800 every 4 years at this growth rate with this particular land programme, this entitles you to get into more land investment deals, and because the developer is always offering a buy back option, you have the choice, to flipp, resell hold or compound.

One initial investment of ?10,800.00
4 years return on investment: = ?45,900.00
compound for 8 years return on investment = ?195,075.00
compound for 12 years return on investment = ?829,068.00

So for a total of 12 years your return on investment when compounded works out at ?829,068.00 from 1 investment of ?10,800.

This developer has 1000s of acres of land with potential development for investment - and the planning process is handheld by the developer, therefore has the buy back agreement in place before one penny is spent.

By : Paul Burrows
If you would like to know more about land investment and our 6 hot reasons to invest right now then please click here. thank you

Different kind of investment funds explained

Investment fund is the investment of money for profit. An investment fund is a financial investment vehicle, which is aimed at private investors - little or large-or institutional investors-insurance companies, banks - and offers the following five key advantages over direct investment in shares, bonds and property:

1. Risk is spread and hence reduced.
2. Funds allow you to tap into professional, expert and full time investment management expertise.
3. Funds are cost effective.
4. Funds offer access to markets that may otherwise be closed or too technical for retail/individual investors.
5. Funds benefit from institutional safety, which means they are heavily regulated and supervised.

The benefits of investment funds, where individuals from all walks of life pool their savings together, can be summed up as offering everybody - from professional or institutional investors to people with limited time, or limited investment skills or modest means - access to investment returns otherwise only available to more sophisticated investors, who are able to buy their own professional portfolio management advice.

Investment funds generally entail less risk than direct holdings of securities, and offer economies of scale. It is a firm that invests the pooled funds of retail investors for a fee.
Information on the product you, as an investor, are contemplating buying is crucial.
Usually, all vital information must be included in an investment fund's prospectus. However, prospectuses have become increasingly complex and difficult to understand, thus discouraging investors from reading them.

Investment funds are suitable for anyone who:
1. Is planning to invest in the capital markets but does not want the risks or costs associated with direct investment in equities or bonds.
2. Already has enough money to cover their everyday spending needs and has some spare cash.
3. Can accept possible temporary falls in the value of their investment.

Investment funds should be considered as a long-term savings product. Investments should be held for at least three to five years, preferably longer. In fact, the longer the time scale, the greater the potential to make money grow.

Investment funds can be classified according to their investment objectives.

1. Money Market Funds
Money market funds invest a sizeable portion of the fund's portfolio in short-term bonds and/or money market instruments (such as certificates of deposit, commercial paper, treasury bills,).

2. Bond Funds
Bond funds invest in fixed interest rate securities as a sizeable portion of the fund's portfolio. These funds generally have a global average maturity of more than one year and its investments can consist of different instruments with very different quality ratings.

3. Equity Funds
Equity funds invest in the stock market at a significant portion of the fund's portfolio. These funds are frequently also called stock funds.

4. Balanced Funds
Balanced funds spread their portfolio over the three main classes described above.

By : Mark Plummer
Mark Plummer Asia based independent Offshore Investment advisor.Has been involved in the financial services and financial planning business since leaving full time education in 1977.It was his intention to provide an insight in to both the mainstream products offered by the general population of financial advisors out there and also the alternative investment areas that are often overlooked or ignored. For more details please visit

What are the Advantages of Investment Property?

Recent studies suggest that the amount of people jumping on the investment property bandwagon is set to rise over the next six years, due to the 2012 Olympics. As with the many other benefits brought about by London's hosting of 2012 Olympics, this predicted increase in investment property will not just affect London but all major towns and cities in the UK. So what kind of benefits can investment property afford?

Stability in Investment Property

Whether you are a first time buyer set to buy your own home or an influential investor looking into investment property the benefits which the investment in bricks and mortar afford, should not be underestimated. Although taking risks on the stock exchange may yield higher returns, investment property can provide you with a stable, steady income and a relatively secured level of return on investment. When looked at with a long-term view the investment property is unlikely to ever lose you money. You may have to pick the right time to sell a property but as long as you keep looking at this investment with a long-term view you will be hard pushed to go wrong. Put simply, property is historically stable and if you are prepared to wait it out you can make money on it.

Financial Gain

If you do your homework and consider your investment property as a long term investment the financial gains to be won through investment into property are fairly substantial. In short, one of the most significant benefits with regards to investment property is that as long as you have a bit of free capital you are able to borrow money from the mortgage lenders, in order to buy a property which you can then let out and charge tenants money in order to pay back the mortgage lender. In affect you become a middleman who is set to earn a good return on investment as long as you decide to follow a few basic steps.

Return on Investment.

Studies suggest that, on average, a home doubles in value every seven years and whilst this is not guaranteed as long as you have the property correctly evaluated and you buy in the right area you can feel certain that you are making a good, financially sound investment. This means that if you have a lump sum of money which you are interested in investing then Investment Property is certainly a type of investment worth having a look at.

By : Elizabeth Grant
Elizabeth Grant has been in the finance industry for more than 20 years and writes exclusively for specialist mortgage websites. To read more of Elizabeth's articles on Buy to Let Mortgages please visit

Investment - Can You Do Without It?

It is hard to imagine if anyone is living without money and it is equally hard to imagine if humans are living without investing in someway or the other. In plain language, investment means the act of investing or laying out money or capital in an enterprise with the expectation of profit. But at the same time the term investment also means money that is invested with an expectation of profit.

Investment is closely related with earning money and employing it to earn more by its virtue of its inherent multiplication factor. It is this character of money (read investment) which drives people invest in various asset types in which they are comfortable with. As a general rule, it is not quite natural for the novice investors to pursue high return investment categories as they perceive the high element of associated risk is beyond their control.

The Big Question: Could You Do Without Investment?
The answer is rather simple as everyone from top down has wanted to invest in one asset or the other. The more conventional the asset type is more the investors and thus investment. Let me detail this out for you.

Traditional investments like investment on gold and land have never let down the investors although rate at which they appreciated was below par till recently. But come to think of it; the simplicity of prediction matrix and non volatile nature of their class made them the darlings of one and all.

Current Investment Scenario
The current investment arena is extremely wide and intricately interdependent. The simplest investment by far, the savings account, contributes to the pool which bank draws from, for advancing loans to a variety investors. Thus the return on your investment (savings) is connected to the return the bank expects. Floating rate of interest is one of the manifestations of this interdependence.

Investment Options for You
It is impractical to attempt to list out all investment types. However the following are the representative types which apply to all economies.
1. Investment on stocks and securities
2. Investment in money market instruments
3. Investment in mutual funds
4. Investment in ventures
5. Investment in insurance

Speculative Investment
It is difficult to foretell how and why people make investment decisions. Also it is not true that investors play safe every time. Speculating a higher than usual and short term profit is none too unusual tendency with some. Such an investment type is classified as speculative investment. Although it beats logic, it goes by gut feeling of investors. Many stock investment and real estate speculators have made big time money taking tremendous risk.

By : NamSing Then
NamSing Then is a regular article contributor on many topics. Visit his other websites at, and