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Investment Strategy


I would say Yes.

Hence, investing has become increasingly important over the years, as the future of social security benefits becomes unknown.

In these hard times, people want to insure their futures, and they know that if they are depending on Social Security Benefit, and in most cases retirement plans, they know that they may be in for a rude awakening, when they no longer have the ability to earn a steady income. Investing is the best answer to the unknowns of the future.

Over the years you may have been saving money in a low interest savings account. Now, you want to see that money grow at a much faster pace. Perhaps you’ve inherited money from a relative or you realized some other type of windfall, and you need a way to make that money grow. So, investing is the answer.

Investing is also a way of getting the things that you want, such as a new home, a college education for your children, or expensive ‘toys.’ Of course, your financial goals will determine what type of investing you do.

If need to make a lot of money fast, you would be more interested in higher risk investing, which will give you a larger return in a shorter amount of time. If you are saving for the far off future, such as retirement, you would want to make safer investments that grow over a longer period of time.

To create wealth and security are the overall purpose of investing, over a period of time. It is also important to remember that you will not always be able to earn an income … you will eventually want to retire.

You also cannot depend on the Social Security system to do what you expect it to do. As we have seen with Enron, you also cannot necessarily depend on your company’s retirement plan either. So, again, investing is the key to insuring your own financial future, but you must make smart investments!


In most cases, investing is not a sure thing — it is more or less like a game – you will never know the outcome of the game until it has been played and a winner has been declared. When you play almost any type of game, you should have a strategy. Investing isn’t any different – you need an investment strategy.

The strategy in investment is basically a plan for investing your money in various types of investments that will help you meet your financial goals in a certain amount of time. Each type of investment contains individual investments that you must choose from. A clothing store sells clothes – but those clothes consist of skirts, dresses, shirts, pants, undergarments, etc. The stock market is a type of investment, but it contains different types of stocks, which all contain different companies that you may invest in.

You must first research and research some more, otherwise, it can quickly become very confusing – as there are so many different types of investments; there are each individual investments to choose from. This is where your strategy, also combined with your risk of tolerance and investment style will all come into play.

If you are a beginner and just starting in investing, you should have a financial adviser, who will advise you before making any investments. Your financial adviser will help you develop an investment strategy that will not only fall within the bounds of your risk tolerance and your investment budget, but will also help you achieve your financial goals.

You should invest money with money that you don’t use and never invest money without having a goal and a strategy for reaching that goal! This is absolutely essential. Nobody should ever hand their money over to anyone without knowing what that money is being used for, and when they will get it back! If you don’t have a goal, a plan, or a strategy, that is essentially what you are doing! Always start with a goal and a strategy for reaching that goal!

Your Present Situation Should Be Stabilized Before You Think Of Investing

Before you even think of investing in any type of market, you should really take a long hard look at your current financial situation. Investing in the future is a good thing, but clearing up bad – or potentially bad – financial situations in the present is extremely more important.

Check your credit report. You should do this once each year. It is important to have a clear report, and to clear up any debt as soon as possible. If you have set aside $25,000 to invest, but you have $25,000 worth of bad credit, you are better off cleaning up the credit first!

Firstly, look at what you are paying out each month, and you should get rid of expenses that are not necessary. For example, high interest credit cards are not necessary. Pay them off and get rid of them. If you have high interest outstanding loans, you should pay them off as well.

If nothing else, exchange the high interest credit card for one with lower interest and refinance high interest loans with loans that are lower interest. You may have to use some of your investment funds to take care of these matters, but in the long run, you will see that this is the wisest course of action.

Get yourself into good financial position – and then enhance your financial situation with sound investments.

It does not make sense to start investing funds if your bank balance is always running low or if you are struggling to pay your monthly bills. Your investment money will be better spent to rectify adverse financial issues that affect you each day.

While you are in the process of a clear-up in your present financial situation, make it a point to educate yourself about the various types of investments.

This way, when you are in a financially sound situation, you will be armed with the knowledge that you need to make equally sound investments in your future.


Retirement it might be right around the corner OR it may be a long way off for you – No matter how near or far it is, you have absolutely got to start saving for it now. However, in these days, saving for retirement isn’t what it cut out to be with the increase in cost of living and the instability of social security. You have to invest for your retirement, as opposed to saving for it!

Let’s us take a look at the retirement plan which is offered by your company. At one time, these plans were quite sound. However, after the Enron upset and all that followed, you are not secured in the company retirement plans anymore. If you choose not to invest in your company’s retirement plan, you do have other options.

First let’s see, you can invest in stocks, mutual funds, certificates of deposit, bonds, and money market accounts. You do not have to state to anybody that the returns on these investments are to be used for retirement. Just simply allow your money to grow overtime, and when certain investments reach their maturity, reinvest them and continue to let your money grow.

You can also open an Individual Retirement Account (IRA). IRA’s are quite popular because the money is not taxed until you withdraw the funds. You may also be able to deduct your IRA contributions from the taxes that you owe. An IRA can be opened at most banks. A ROTH IRA is a newer type of retirement account. With a Roth, you pay taxes on the money that you are investing in your account, but when you cash out, no federal taxes are owed. Roth IRA’s can also be opened at a financial institution.

Now here is another popular type, of retirement account is the 401(k). 401(k’s) are typically offered through employers, but you may be able to open a 401(k) on your own. You should speak with a financial adviser or accountant to help you with this. The Keogh plan is another type of IRA that is suitable for self employed people. Self-employed small business owners may also be interested in Simplified Employee Pension Plans (SEP). This is another type of Keogh plan that people typically find easier to administer than a regular Keogh plan.

Whichever retirement investment you choose, just make sure you choose one! Again, do not depend on social security, company retirement plans, or even an inheritance that may or may not come through! Take care of your financial future by investing in it today.

I hope this helps you in your future financial plans.

Is Penny Stock Investing Worth it?

Merchandising in stocks is a very prevalent manner of investing and
has been around since the 12th century. You may
have heard investing in penny stocks is full of risk, notwithstanding
Investing in any company in general is precarious
business, even so if you are going to be trading in the penny
market you have to make yourself prehensile
about every company to steer clear of the imposition, rip offs, pump and
dumps, and other schemes to alienate you from your
agonizing earned chips. Without a bare understanding of the stocks
you will be investing in you will make
boundless mistakes out of confoundment and absence of direction.
By designation any stock trading under $5.00 is
envisioned a penny stock are in many instances labeled as immensely
precarious securities.

Most penny stocks are accustomedly traded on either the
‘OTCBB’ exchange (over the counter bulletin confiture) or on
what is called the ‘Pink Sheets’. OTC markets can be part
of the NASDAQ which is the National Association
of Securities Dealers Automated Quotation. OTCBB stocks
combine national, regional, and foreign equity
issues, warrants, units, American Depository Receipts and
Direct Participation Programs. OTC quotation
services (OTCBB, Pink Sheets) assist quotation of
unlisted securities. OTCBB issuers that become
disregardful in their necessary regulatory filings will have
their securities withdrawn from the OTC Bulletin
Accelerated. There are generally inexhaustible potency for the
growth of ample sufficiency and this is inordinately mesmerizing
to OTC BB investors.

While there is an abstractionism to investing in penny stock companies
I have found that it is more favorable to
invest in companies that are still awaiting their future
than companies which have already matured what
the future holds for them and are now in decline. Accordingly my
advantage in penny stock investing! howbeit, When
it comes to investing in penny stocks, there is no doubt
that there is a huge insubstantially. Albeit, with a familiarization
of solid information, you are ordained to make the greatest
preferences available when it comes to penny stock
investing affluence.

When investing in penny stocks you have the possibility to
dramatically increase your profits, in any case, you
can just as impartially loose your assets quickly. The bottom
line is, though, if you are in the business of
penny stock investing, you ought to know who has your back.
There are multitudinal things to contemplate when it
comes to penny stock investing or any kind of investing for
that matter. First and foremost, is the cost
related such as broker fees or commissions. Because of the
phase penny stock, you may think that the cost
of investing is miniature even so nothing can can be further from
the truth. Some brokers indeed charge you
more and ask for a big capacity in your account before
you’re accorded to invest in penny stocks. This cost
ought to be taken into consideration when it comes to your
investing gambit as well as what your long term
goals are.

You can mitigate most of the cost associated in penny stock
investing by self-managing your own account.
Nonetheless, If you are new to the world of investing and acquire
the systematics, expenses, fees, and writ the
least bit confusing it is nobility to utilize the services of a
stock broker that is going to engagement with you
every step of the way and enlighten the way things labor at
least for the first multitudinal trades you make.
One of the centermost aspects to investing wisely with penny
stocks is to know which kinds of penny stocks are the
right ones for you as well as which sort of a broker is
excellent fitted for penny stock investing.

As a consequence, I will deal in generalities down a few of the centermost things to
bring to mind and exploit with when it comes to
finding or selecting the absolute broker for penny stock

What you will appreciate is that majority of brokers are
principal broker dealers in this become public of penny
stock investing. Nonetheless, one of the essential things you
requisite to begin with is investing in the acceptable
broker. Some brokers have unpractical restrictions about
penny stock investing which makes it very
extravagant to invest in penny stocks. So be sure to locate out
what their terms are as far as penny stock
investing before you employ their service.

You can also assume that there are things constituting steps
that you can convey to guard that the penny stocks
that you are investing in are the safest types of penny
stocks procurable. With penny stock
investing, you can observably see why it is significant to have
someone that you can trust to bolster you with
funding your transactions. As a consequence, it can be tricky for
the everyday person to verify if the penny
stock they are adjudging investing in is a ample idea or
not. Because of the high gambles associated with
investing in the stock market, bounteous investors are looking
for a way of investing their hard cash in a lower
riskiness that still rewards you with pretty ample returns over

There is a culture pattern to the business that consists of assorted little
steps that, when followed customarily, can lead to
flourishing investing. It is my true fixed opinion that those
with less than one year’s behold investing in
individual stocks ought to not even think about investing in
penny stocks, principally if you haven’t found
your rhythm with the mid- and large-cap universe albeit.
Third, I never, ever waste my time looking at those
penny stock companies that are hyped in the multitudinal junk
emails I get from websites and promoters that are
dedicated to penny stock investing. With penny stocks do
not think for a minute that the game has changed.
Often these promoters have clearly nothing at stake in
the penny stock company they are promoting.
Most assuredly, they are paid by the penny stock companies to recommend
and circularize them.

Apply vigilance when investing in Penny Stocks. Sometimes it’s
discerning not to be the early bird when stock
investing, instead wait and see what the day will bring
before you take exertion. Study the financials of a
penny stock company. Much penny stock companies will have a
negative balance albeit it’s the flow of boodle
and how they put to use their finances that matters the much. The
great investing opportunities are finding companies
that manage to reinvent themselves with huge leaders and
auxiliary products. Apply a devoted absolute interest in the
effectiveness of the penny stock company you’re interested in
and obtain out about their track record as this
will help stipulate what they can achieve/accomplish with
the company. Additionally, you ought to only invest
do-re-mi that you are expectant to lose.

Much penny stocks are high-gamble investments with decline
dealing volumes and finite attention from investors.
Nevertheless some penny stocks are of higher liability than
others. Pink Sheets are the majority chancy with no
reporting requirements. Yet these dangerous, pink sheet stocks
give you incredible leverage. The leverage you
get with the super subs makes up for them being more fatal.
You may have heard investing in penny stocks is
venturous. Yes, it is riskful, but High risk means high reward.
Trafficking penny stocks, while inherently precarious,
has some unique benefits. They do dole out the probability to
rise 100%, 200%, or even 1000% in a short period
of time.

To win in trafficking penny stocks, you ought to obtain the
stocks that have the first-class potential, fewest quantify of
“red flags”, and you have got to also have a game plan that will
let you lock in solid profits and cheapen gamble.
Also, if you purchase or sell shares of a abject-volume stock, you
run the danger of affecting the price alleged to
excess demand or supply. This is an advanced technique that
has strict requirements and higher risks. Alleged
to the volatility in penny stocks, considerable sums of savings can
and have been made by investors willing to draw from
the insubstantially. One must also know that the liability’s are just as
immeasurable as the potential for growth. Factually,
I would say the risks of loss is much considerable than the
potential for develop which is why it is certainly
critical to only invest with “imperil capital”. A major riskiness
in penny stocks is that they are frequently times
de-listed from the OTC BB and are unable to get listed on
additional exchange or even re-instated on the OTC
BB. Yet with exceedingly ample research and alleged diligence and
the company’s experience and structure
matter-of-factly unlimited bountifulness can be gained with miniaturized

Much of the time the riskiness inherent with penny stocks can
be finite or mitigated by you knowing what you
are doing and knowing how to make it a better investment
casualness. With the correct tools and the absolute
familiarity, you gigantically minimize the risk. The more
wisdom and behold you get, the less liability you
incur. Taking the time to read and research will gigantically
minimize penny stock investing gambles. If you do
not have the disposition for peril then Stay cast out of these
dicey penny stock investments. See in retrospect, most
people fail when it comes to penny stocks as the insubstantially are
high and they don’t do their home labor or
research before jumping the gun or a highly promoted penny
stocks. If you know anything about the standard
stock market, then you know that the amount of insecurity that
something carries is something that is defined by
several things. In fact, every stock can be seen from a
different risk vantage point from one lender to the
after. With that said, you can deduce that there are some
penny stocks that are less fatal than others. In
short, you need to ascertain that what you invest in has the
danger grit that you can indulge or afford.

The blissful news is that penny stocks do extend some
flexibility in what riskiness that they provide. So, to pack
up, here is what you require to do to stipulate just what your
grade of insubstantially embracement is. Pin down the
amount of insecurity that you are willing to appropriate on any penny
stock that you invest in. Employment with your
financial planner or adviser to verify if the amount of
gamble is a practical accommodation for your own financial
goals in the long term and short term. nail down what danger
extent you are comfortable with and the model of
penny stocks that fits those needs. When you convey the time
to really labor out what your financial gamble
fortitude is, you will be better applicable to selecting the
appropriate kind of penny stocks that you can invest in.
The reality is that having the advantageous inclusion of safety and
insubstantially is the biggest factor in investing in
penny stocks.

George Kissi

Young Investors Simple Stock Investment Strategy

Harness the power of your investments by starting to invest young. There are simple stock market investment vehicles that will allow the inexperienced investor to achieve solid, long-term, returns without having to be a stock market expert.

Importance of Investing Young. It is essential that you start investing young; if you don’t your actually losing money and missing out on the most important thing young investors have in their favor ‘compounding interest’.

Each year that you have money and are not investing you’re losing about 3% of its value due to inflation. So after 10 year of sitting on $100 cash it could be worth less than $75. What’s more, by investing young you benefit because the money you made from your investments – make you more money. Making money from money you’ve already earned from your investments is known as ‘compounding interest’. This powerful force can make you a millionaire well before retirement age with saving as little as $70 per month.

Now that you know you need to invest; how do you start? The stock market offers a great place for young investors to get their money working for them; the good news is that you don’t need to have a ton of money to start. Plus, with the investment vehicle discussed in this article, you don’t need to be a stock market expert to begin.

What’s the solution? An ideal investment for young and inexperienced investors is to get on the road to financial independence are low-cost broad market index investments. Warren Buffet states, “A very low-cost index is going to beat a majority of the amateur-managed money or professionally-managed money.” Reduced risk, solid returns and it one of the simplest investments you could make. An added bonus is that it takes only minimal knowledge and about 60 minutes to start getting your money working for you.

What’s a broad market index? A broad market index is a group of stocks that you can purchase as one. It allows young investors to buy a collection of top performing stocks that mimic the performance of the entire stock market. Since these index funds allow you to earn returns similar to the overall performance of the market it greatly reduces the risk. This is an advantage to the beginning investor since it is safer than investing in a single stock or some mutual funds; plus there is a history of double digit returns.

Broad based index investments may not sound like something you know; however if you ever watch the news chances are you have heard of this investment. -The Dow Jones Industrial Average index contains 30 top industrial stocks. -The Standard & Poor’s 500 contains 500 of a variety of different stocks. -The NASDAQ 100 contains 100 stocks that are mostly in the financial and technology sector.

When you invest in a broad based market index you actually own a small piece of each individual stock. For instance, when you invest in the S&P 500 broad market index, you’re buying a piece of all 500 stocks in that index. So for each S&P index share that you own your actually own 1/500th of companies like: American Express, Google, Ford, Nordstrom, Home Depot, Staples and Yahoo to name a few.

For those young investors that don’t want to stay glued to their computer all day broad based market indexes are great solution. Since this investment matches the overall return of the market if you believe over the long-term the stock market will continue to rise in value this could be a good investment. If history were an indicator of future performance, it would be clear that over time, you would generate solid returns. The key benefits associated with broad market index investing are:

1) Higher Returns – According to Standard & Poor’s, less than 30% of managed funds in 2006 beat broad market index investing. What’s more over the last ten years the average person that invested in broad based index funds has beaten the returns of most mutual fund investors.

2) Added Diversification – Diversification lowers risk. If you invest in one individual stock and bad news comes out on the company you could loose a lot of money fast. Now, for instance, if you’re invested in an S&P 500 index fund and one stock has bad news you really don’t care. That will only affect your investment one five hundredth.

3) Lower fees – Index funds fees are typically lower and are often around.5%. While the average mutual funds fees are around 2%. Over time this will make a big difference in your overall return.

4) Passive investment – When investing in individual stocks or mutual funds it is important to keep your eye on the market and up-to-date with current trends. Investing in broad based market indexes takes less stock market knowledge and requires less time to track.

The earlier you start investing the sooner you can reach financial freedom. invest with broad-based index funds that have similar returns to the overall market, because then we are receiving similar returns while hedging our portfolio – again, investing for young and beginning investors is all about diversifying to improve your chances for financial success.

How do I invest? There are two ways for young investors to begin investing in broad market indexes. Both are similar in their returns; but they are different in how the index is bought and have different fee structures.

* An Index Fund is a mutual fund that purchases the stocks that make up an index in order to match the returns of the overall market. For example, if investing in an S&P index fund, that mutual fund would own all the 500 stocks that make up that particular index. Index mutual funds may require a minimum investment, but some can be waived with a direct deposit investment plan that automatically invests money every month from your account. Typically, fees on index funds are higher and there are minor restrictions on when you can sell.

* An Exchange Traded Fund (ETF) is similar to an index fund, with the benefit that ETF’s can be bought and sold similar to an individual stock. An illustration of an ETF is the “Spiders” (American Stock Exchange: SPY symbol). Each share of a spider contains one-tenth of the S&P 500 index, and so trades at roughly one-tenth of the S&P price. The management fees on ETFs are low. There are less restrictions on the sale of ETF’s when compared to broad based index mutual funds.

Young investors will achieve similar returns whether investing in index funds or exchange traded funds, but typically ETFs have lower fees and fewer restrictions.

The earlier you start investing the bigger advantage you will have. Because there is only a minimal amount of money necessary to start and a low level of knowledge needed to invest – broad based market indexes will allow you to start investing young. So quit working for every dollar and get your money working for you.

7 Tips for Low Risk Investing in Real Estate

Real estate investing can be an exciting adventure and a very lucrative business. But it’s that seductive high profit potential that makes many investors jump in with no net, no plan and very often, no resources. The truth is that real estate investing is a risky investment. In order to minimize those risks, investors must take specific steps before jumping in. Below are 7 strategies for minimizing your risk with real estate investments.

1. Define your Financial Goal

Have clarity about what you want from a financial investment. Many investors make the mistake of falling for someone else’s idea of what’s a “good deal.” The truth is that everyone has their own different financial goal. You should be clear about your own goal. Are you looking for quick cash? Are you looking for monthly cash flow? Are you looking to park your money for a few years and get future appreciation? The clearer you are about what your financial goals are, the easier it will be to gage if your investment is on track or not.

2. Find your Purpose for Wanting to Invest

Real estate investing can be very intimidating and it’s easy for a new investor to be paralyzed with fear even in the presence of the “deal of a lifetime.” The truth is that real estate investing is a number analysis game that can easily be stopped by emotions. To keep yourself from getting overwhelmed and hiding under a rock, be aware of your motivation for investing. Are you looking to eliminate debt? Are you looking to secure a financial future? The vision of your purpose will keep you in the game.

3. Select your Investing Strategy based on your Financial Goal

There are many, many, many ways to make money in real estate. So, to avoid being swayed by the “deal frenzy,” you should always select your investing strategy based on what you already decided that you wanted financially. This will keep you from buying cheap vacant land when what you really want is cash flow. No matter how tempting that cheap vacant land is, it’s not in line with your goals. Pass it up or change your goals.

4. Establish your Investing Rules before you start looking at deals

Once people find out that you’re a real estate investor, deals will start coming out of the woodworks and you will be tempted every day by the “deal of a lifetime.” What do you do? Consult your investing rules and decide if the deal is in harmony or in conflict with those rules. Knowing what you want, what your investing strategy is and what resources you have available are will help you set parameters and guidelines for investing. And that in turn, will keep your risk of losing money down as low as possible.

5. Find your Market based on your Investing Strategy

Look for a market that has plenty of properties that support your investing strategy. Most new investors insist on investing in their own backyard because it keeps them within their comfort level. That’s a great idea only if their neighborhood will support the strategy that they need to make the financial goal they’re after. If not, they’ll either have to look for another market beyond their own neighborhood, change their investing strategy, or stop their investing efforts altogether. Forcing an investing strategy on a market will increase your risk of losing money.

6. Select your Team within that Market

You need to find, interview, and hire team members in the market that you invest in. You will hire individual people and companies to support your investing strategy and help you make money. If you cannot find good team members in the market that you chose, your risk of losing money will go up and you should seriously reconsider investing there.

7. Find your Properties based on your Strategy, your Market, and your Team

Now that you are clear about your investing strategy and your investing rules AND now that you’ve found a market with a good team, now you can look at specific properties to invest in. Look for properties that are in line with your strategy and your rules. This is the surest low risk method of investing in real estate.

It’s easy to be seduced by the profit potentials of Real estate investing. That’s why you need to make your investing decisions up front without the deal in front of you to distract you. The biggest mistake that new investors make is to buy properties on a whim without a plan. They spend more time trying to get out of their bad deal and less time making more money.

Learn to keep your risk down and get educated on real estate investing. Learn to create a realistic investing plan to keep your profits high and the risk of losing money with real estate investing as low as possible.