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Investment strategies for the long term are a vital to our future. How you invest now may be the difference between a comfortable retirement, and working for the rest of your life. Nobody likes the idea of having to work for the rest of their life, and we have put together a list of do’s and don’ts to secure a comfortable retirement.

Tip #1 Educate yourself

There are people out there who play the stock market like they play the lottery. This is very dangerous, gambling on the stock market is the equivalent of going to Las Vegas and putting your life savings on the line. With any investment that is going to provide a decent return, there is risk. How much risk you take on with any investment directly affects the return. The general rule of thumb is, the higher the risk, the higher the return on your investment, and likewise, the lower the risk, the lower your return. The risk of investing into just a savings account has been explained. While investing in stock is riskier, educating yourself can reduce the amount of risk you take on. This includes finding out what common terms are and what they mean. Understanding the financial statements of the company you want to invest in, and understanding the market that you are investing in.

Tip #2 Devise a plan

This step is just as important as the first, having the education is useless without having some kind of direction. Decide where you want to be by the time you retire, where you want to be when you hit fifty. Evaluate where you are now and what you want to accomplish in the next year, you can never plan too much. You will also need to decide what kind of retirement you want to have. Do you want to maintain the quality of life you have now? Do you want to retire rich? Filthy rich? Or do you want enough to just get you by every month? Realize what you want to do and devise a plan.

Tip # 3 Investing is vital to your retirement

This cannot be stressed enough. It used to be that you worked for a company for 30 years until you retire, you get your office party and the faux gold watch, but you had a pension and social security waiting for you afterwards. Nowadays you have companies cooking the accounting books, and executives being the only ones with guaranteed pensions, and CEO’s abandoning their companies leaving their employees with nothing while they take their guaranteed multi-million dollar pensions home. What does this mean? It means that the person with your best interest is you. Nothing is guaranteed any more, not even social security. Corporations are replacing pensions with 401k plans, in essence they are shifting the responsibility for your retirement from them to you. It is up to you to decide whether you want to invest in your future. Realize that if you decide not to invest at all, you are throwing you future away.

Tip # 4 Research Research Research

There are so many reasons that you need to research whatever investment vehicle you choose. Whether its real estate, stock, whatever, you should never invest off of an assumption. Most investors refer to this as due diligence. First and foremost, never invest off of a “tip.” There is always someone out there that knows what the next big investment is. They’ll tell you to buy some shares of so and so stock because they are guaranteed to give you phenomenal returns. While the advice may have some truth, it is best to do a little research first before putting any money into it. When doing research, it helps to understand financial statements. In general, if a company has more costs than it does revenue, this means the company is not turning a profit. In 2000, Amazon.com (NASDAQ: AMZN) was selling its shares at $113.00 per share, all while never having turned a real profit since the company started. Today Amazon’s stock can be bought for $45 a share. Imagine if someone invested their entire life savings into Amazon’s stock at this time, they would have less than half of what they saved left. This is the reason for the most recent stock market crash, investors were buying shares from companies that could not show a profit. Companies were having lavish office parties every week because their stock was flying through the roof, all while their product sales could not fund these expenses. Another reason for the recent stock market crash is because a lot of investors invest with emotion rather than knowledge. Over the holidays investors feared another terrorist attack, so they sold shares fearing another attack would drive the stock market back down. The emotion was fear. And that fear is detrimental to the stock market. If enough investors get scared and begin to sell their shares, the market will surely drop. If more investors are buying than selling, the stock market will rise.

Tip # 5 Inflation

The final tip is also a part of research, understanding inflation. It is important to know that as it pertains to your future, inflation is not good. The Webster’s dictionary defines inflation as: an increase in the volume of money and credit relative to available goods and services resulting in a continuing rise in the general price level. In other words, as time goes on, prices rise. A good example of inflation, is how a million dollars today, isn’t what it was 20 years ago, and it wont be what it is 20 years for now. If it would take $2 million to retire today, find out what $2 million will be by the time you retire, otherwise you will be selling yourself short.

By: Robert Abrom

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By: Court Tuttle

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A Debt management company employs financial advisers who are knowledgeable in consumer credit, money, debt management, and budgeting. These debt counselors are aware of the problems that plague debtors and are capable of working out a solution to these problems.

This is how a Debt Management Program works:

• The Debt Management Agency informs the creditors that the debtor has entered a DMP. Creditors may agree to reduce their interest rates or waive late fees decreasing the total amount of debts.

• The debtor and the Debt management agency work out a schedule for the payment of debts.

• The debtor deposits money with the agency that in turn pays the creditors.

• The debtor agrees not to accumulate anymore debts and to set up a fund for emergencies.

To keep updated with your DMP, remember to:

• Pay regularly and on time.

• Read your monthly statements. Make sure your creditors are being paid. Get in touch with the debt counselor immediately if you are unable to make a payment or if you find that your creditors are not being paid.

Be aware that if the agency handling your DMP is late with the scheduled payments, the consequences can be just as damaging as if you yourself have done it. That is why it is very important that you read your monthly statements. Contact your creditors immediately and make arrangements. Otherwise, you could lose the progress you have made with your debt. You can also lose the benefit of low interest rates and waived fees, incur late fees that add to your debt, and get late marks on your credit report.

When choosing an organization to manage your debt, consider these factors:

• Services offered – a good company’s services include budget counseling and free information on savings and debt management and budgeting. Avoid companies that charge fees for information regarding their services.

• Your counselor should discuss every aspect of your finances with you. These discussions should include not only your payment schedule but also how you can solve your problems and avoid getting into debt again. This way your counselor can customize a DMP that fits your particular situation. Beware of counselors who push debt management plans down your throat without spending some time reviewing your financial status. Since this is your debt, and the outcome of your DMP can greatly affect you, you should be more than interested to know the details of your DMP.

• Debt Counselor should be licensed to operate in your state. Check up on your counselor’s qualifications and training to ensure that he/she is qualified to handle your finances. Find out from your local Consumer Protection Agency or Better Business Bureau if complaints have been made against them.

• You want to get this right the first time because it can affect you negatively if you chose an organization that cannot meet your needs. Make sure there is a written agreement or contract between you and your counselor.

• Get a detailed quote of all fees involved. Your counselor should inform you of all and any fees such as an up front fee upon signing up or any other monthly fees. If you cannot afford to pay it, find out if there are conditions wherein they can waive or reduce it.

If your debt management company goes out of business, they will usually notify you if your DMP will be transferred to another company. Find out what you can about this other company. See if the terms of your current DMP will still be eligible if you transfer to another debt counselor.

Otherwise, you may need to act to ensure that your repayments will continue:

• Inform your creditors that your credit counselor is going out of business. Find out if you can continue to enjoy the benefits of a DMP although you will now be dealing with your creditors directly.

• Check your credit report. Look for missed payments.

• If you pay your DMP through the bank, contact your bank to stop payments.

Before you sign up with a debt management plan (DMP), it is very important to learn more about the cost, nature, and benefits of the services that debt management companies offer. It is the obligation of the company to educate you of the pros and cons of using debt management as a solution to your financial problems.

By: Nathalie Fiset

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Welcome to the second portion of a two-part series on investment property. In the first installment, “How Not to Become a Slumlord”, we discussed a little of what it takes to own and operate a property as well as some of the do’s and don’ts of the property management trade. In this second segment, we will be discussing some pre-investment principles that will help you maximize your ROI.

There are three basic principles of investment property that you should know before you buy an investment property in order to avoid overpaying:

Time

How long do you plan on owning the investment property? As with stocks and bonds, the value of your investment may change significantly during the time you own it. While most real estate will appreciate in value over time, there are frequent fluctuations in the short-term market. If you plan on selling your investment property after less than five years, be prepared to accept the investment risk inherent in a shorter time horizon. This is especially true if you bought your property in an overheated real estate market. If this is the case, you could find yourself losing money if the market has taken a temporary downturn, especially if you’ve had to make major repairs to the property.

If you plan on owning the property for the next twenty to twenty-five years, it’s almost certain that your investment property will appreciate in value. There’s also a good chance, however, that you’ll have to make major repairs like replacing the roof, wiring system, or major appliances like a water heater or refrigerator. Of course, these repairs will be offset by the fact that you’ve had/will have twenty plus years to recoup the cost. If on the other hand, you’re only planning on owning an investment property for the next five years, buying a “fixer up’er” can eat up all the profits you would have made during your shorter investment horizon.

Networking

If you want the best deal possible on an investment property, than there are some people you’ll want to be friends with. City hall clerks and bank employees may know what properties will be available on foreclosure and when they will go on the market. Real estate agents usually know everything real estate related within their respective territory. Some prospective landlords even run ads in local newspapers.

Many individuals interested in entering the investment property market may even join local landlord or investment property owners organizations. These types of organizations hold regular meetings where you can get the inside scoop on what’s for sale in your area. The National Real Estate Investors Association is an online organization that provides a wealth of information and resources to potential investment property owners.

Financial Preparation

Get your finances in order. The less debt you have when you walk into your local lending institution, the better loan you’ll get. This is common sense, but it’s even more true for those seeking financing for an investment property. This is because lenders know that people are much more likely to default on a rental property than on their own homes. This means that the bank will demand a larger down payment and higher interest rates that you may have expected. It’s also a good idea to have some extra cash left over to make unforeseen repairs should they arise.

By wisely choosing an investment property time horizon, making contacts in the investment property community, and preparing proper financial means, your investment may become a significant means of supplementing retirement and other savings accounts.

By: Cameron Brown

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Investment

There has been a lot of debate over the years as to whether or not gold is worth investing your money in. Some make the claim that it makes an excellent hedge against inflation; others might say that you can use it as a quick fix for some extra cash. And then there are some that invest in it when the economy is bad because they feel if everything crashes, at least their gold will still carry some value.

So what is it? Is gold a good investment?

Well- let’s define “investment” first; really, it should be categorized into a couple of different perspectives. We either invest with a long term approach, or we invest with a short term, turn a quick profit approach. In this article, we’ll explore both the short term and long term approaches to using gold as an investment.

Before we consider the above, let’s look at how gold has been performing throughout the years and use that data to consider the question.

First, if we were to take all of the years that gold’s worth has been calculated up to the present, we would find that gold has improved in value at about 2% annually. In the last 50 years, things have been a little bit better, as gold has been increasing at about 4% annually. So would it be a good long term investment? Doubt it… most good index funds (something that might follow the S&P 500, for example) have been increasing on average at 12% annually in those same years. Do your research- you’ll find the same data.

Here’s another interesting thing: if you would have bought a bunch of gold back in 1983, you would have purchased it for roughly $510 per ounce. Thinking that it might be “a good hedge against inflation,” you hold that investment for the next 20 years or so. By the end of 2005, if you were to have attempted to sell that same gold, you would have made literally NOTHING! That’s right- in December of 2005, gold was being sold at $515 per ounce!

If you take inflation running at about 3% into account, you’d have found that gold would have lost you a substantial amount of money.

Is good a good investment? Considering the numbers, it wouldn’t be good long term.

How about gold as a short term investment? Currently, gold is being traded for roughly $875 per ounce! In the last several years, it’s been increasing at an astounding rate! So now would be a good time to buy, right? Absolutely not! It’s only been in the last few years that it’s really gained any ground; if you look into history, anytime gold begins to look up, it ends up taking a hard fall. If you would have bought gold in the last couple of years, now might be a good time to sell it!

But what about now? Should you buy it? Well… you decide. Typically, I like to buy low and sell high; don’t we all? So… with gold being as high as it is, the worst decision you could make would be to buy it. Don’t touch it!

So, in short, is gold a good investment? Absolutely NOT! Stay away from it.

By: Trevor Shipp

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Are you an investor looking to make some money in a new way? Have you previously been investing in the stock market and are you now thinking of switching to the foreign exchange? There is a big difference between investing in the stock market and investing in foreign exchange. The strategies used are much different and many people are afraid of FOREX. They think it is too risky or too complicated.

But what if there was a method that took a lot of the risk out and made it easier, even if you have never traded before to succeed in the foreign exchange? Wouldn’t you want to know these strategies?

We have a FOREX investment strategy that can do just that! The first thing you need to know is that they don’t try to teach you how to trade in foreign currency. Instead you receive proprietary software that is used to teach you how to set up a trading account at the brokerage that you choose. This account then buys and sells all your investments for you.

FOREX is perfect for the careful investor that is interested in earning as much yield as possible along with preserving principle and earnings. The investment strategies used by FOREX include achieving this balance. They do it by using two different currency pairs that move in complete opposite directions for trading. This is a great strategy because when one pair is going down and experiencing loses the other pair is normally going up because they are opposites.

There is data that can be supplied that supports this strategy. For instance, if you were to view a chart of the past year, you would see that when comparing the two currency pairs it is almost like looking in a mirror. This proves that the strategy used works. This is why the FOREX investments strategies work so well; when you trade two pairs that move in opposite directions you dramatically reduce your risks. Any loses that you receive from one is partially offset by what you are gaining from the other pair. There is no type of stock market option that can offer you this type of strategy.

The FOREX investment strategies really do work and they are so simple to learn because you are not trying to learn everything there is about investing. Therefore, it only takes an hour or two to learn how to set up the accounts and then a few minutes throughout the week to monitor the account. With this amount of little effort it is possible for you receive more of an increase in a month than many mutual funds and banks do in a whole year.

By: Mark Molina

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When it comes to getting rid of debts, debt management loans are one of the best options available to you. Sorting out your debt as early as you can is the best way to ensure you stay afloat, and there are many organizations who will help you get started in your management plans. This can really help take the burden of debt off your mind and help you get your life back on track.

When it comes to finding loans to help with your debts, the main benefit of doing so is to reduce the monthly amount you are paying out for all of your debts. These type of loans typically merge you debts into one single outgoing payment each month with a longer loan term. Whilst this means you’ll pay more interest over time, this will pay off all of your existing debts and free up some money your monthly budget.

The good news is that loans for debt management will usually have a lower monthly interest rate than your other debts, though you may end up paying off the management loan for a longer period of time. For most people struggling with debt this type of loan gives them the ability to recover from financial stress without resorting to bankruptcy. It is a good idea to compare the different debt consolidation loans to find the best one available to you, with favorable terms and conditions.

The good news is that even those who have a bad credit score are eligible for debt management loans. Take some time to check out some resources online to get in touch with a debt management organization to find out all of the options available to you.

By: Greg Chambers

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If you’ve been involved in real estate investing for any length of time, chances are you’ve tried to obtain 100% investment property mortgages. If you’ve made the effort recently, you know that these 100% loans are becoming increasingly difficult to find. The reason is simple- these 100% investment property mortgages default at a much higher rate than most other types of mortgage, and the end result is often foreclosure.

This puts many investors in the unenviable position of ‘motivated seller’ and forces them to look for creative ways to unload their property, in many cases even phoning other investor’s ‘We Buy Houses’ hotlines. These circumstances give rise to a vicious circle of investors, feeding off one another, giving the entire industry a black eye in the process.

These scenarios are being played out in cities across America, and investment property mortgages, particularly 100% loans, are taking a bad hit. Lenders are eliminating these products from their portfolio of services in droves, and investors are scrambling to find alternate sources of funds.

One such source is Private Money. Another, the self-directed IRA, allows investors to use their own retirement funds for real estate investments. Investment property mortgages and creative loans from sources other than institutional lenders and mortgage brokers are increasing at a record pace.

But are these alternatives to investment property mortgages a good idea?

If used wisely, they can be, but there may be a wiser way of looking at the situation. First, we need to examine the question of why investors would need investment property mortgages for 100% of the appraised value of the property in the first place. The only real answer to that question is that too many investors have been overpaying for their properties.

The real estate bubble, and rapidly rising property values, caused a buying frenzy by investors in many areas of the country. This rush spilled over, even into areas where there was no true bubble. Now that the bubble has burst in most areas, investors are feeling the pinch. The old tactic of buying at market value and letting the fast-rising market build in your profit no longer works… in many cases it NEVER worked.

The ONLY way to guarantee profit, and avoid the meltdown that comes with over-paying, is to buy value. The investor must do his or her homework and buy for well under market value. Then he will have no need for 100% investment property mortgages. When you routinely buy your properties for 80% of market or less, obtaining investment property mortgages becomes much less problematic. You have a greater selection of loan products to choose from, and qualifying is much less stringent.

The moral of the story? Buy value, and do your homework. If you’d like to learn more, visit my page on Investment Property Mortgages

Now, go make more offers!

By: Tom Dunn

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It seems that you are making episodic payments as interest against your debts endlessly. The debts that are piled stands erect before your eyes without the least change of improvement. If this is so, then you need to get debt management program at the earliest. Be it a single or multiple debts, the policies are rational to settle and consolidate them with a single stroke.

With the view of serving debtors without any failure such policies and advice are introduced. The policies of debt management program are effective in the sense that they are adopted after assumptions and survey that can disperse the debts in the easiest way. If you give a minute and detailed study of the program, you will make out policies that are subtly fused to improve the credit condition along with executing the primary objective. So, all the irritating debts will no more haunt you and you can plan a life free from debts.

With the sole aim of promoting and providing services unfailingly, such services are tagged with different names to serve same objective. The various names that debt management bears are debt consolidation loan, debt management services, instant debt management, online debt consolidation service, debt consolidation advice and correspondingly. Implication of any service or advice carries the same remuneration.

Debts usually fall under the category as bad credit. So, it is feasible that you can also cater poclies to disperse other bad credit disputes. So, at a single price you can borrow one or more services. Furthermore, appraisals from financial experts states that services also pave ways to avail loans in such crucial financial stage at low and cheap interest rates.

The best and easiest way to procure the services of debt management program is online application method. It facilitates users to approach lenders from home within seconds without being travel the miles to lender’s office. Debtors can just collect and subscribe the services to surmount and tackle debts.

Summary: Debt management program is an ideal program to consolidate the single or multiple debts. Along with dispersing the debts you can also avail financial aid if necessary at reasonable and attractive rates. To get the prop within seconds consider the online application method.

By: Alex Jonnes

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