How To Manage Investment Volatility

When the market is on a bull run, as it was in the earlier part of the year, or during the first half of 2007, investors tend to neglect risks. However recent events (triggered by US subprime and financial meltdown) demonstrated that investing in stock markets isn’t for the faint of heart. A case in point is that for the past few months, wild swings of daily stock market indexes by few percentage points were common. How does one manage his or her portfolio in such volatility? For some, unloading all their stocks and keep all their CASH safely in the bank may sound the safest option. Others may switch part or entire portfolio to other safer instruments such as gold or commodities, or cash instruments.

Getting It Right From The Start

While timing everything right seems impossible, there are better ways to manage one’s portfolio. Essentially, getting it right at the start is important. One will worry less if one’s portfolio is structured right to start off with, that is, maintain an asset allocation strategy based on one’s personal risk profile at the very first place. With asset allocation, diversify one’s portfolio is the key, in order to reduce over dependence of a specific asset class, that is.


One such method is to consider various instruments that have low correlation to one another. For example, while directly investing in individual stocks has good direct exposure, consider investing in unit trusts or ETFs, where typically the funds will be invested in a basket of stocks instead of one individual stock. In principal, stocks tend to be a lot more volatile than equity unit trusts for the reason that funds tend to be more diversified because they are invested in multiple stocks.

Other low correlation asset classes include bonds, commodities (gold, metals) and real estate properties. Gold is a perfect case in point, where prices have escalated by around 50% from 2007 to-date due to sky rocketing crude oil prices and perception of safe-heaven characteristic.

Adopt Mid to Long Term Horizon

The longer the time horizon is, the more volatility one can tolerate as one has more time to recover from short term volatility. Putting a mid to long term strategy in place will certainly allow an investor to take into consideration factors that will affect one’s portfolio, such as market cycles, political stability and economic swings.

Stay Objective

While i agree that investing in general should be taken with a long term perspective, it is not a hard and fast rule as it is also important to stay objective and be alert to potential major changes in business or economic environment from both local and global perspective. For example, while investing in China equity at one point (prior to 2007) may be a great idea tapping into the explosive growth of Chinese companies, an investor should consider unloading some or all of the funds invested to else where when Chinese stocks were trading at lofty and unrealistic valuations. Another example is when subprime issues first surfaced, it is wise to find out from the brokers or agents immediately where their property trust funds were invested. It is wise to liquidate such investments when the stakes are high!

Invest Regularly

Invest regularly is also a good way to manage periodic market volatility. For many this could be in the form of monthly investment, directly from their monthly income or retirement fund savings. In essence one will continue to invest a particular sum of money regardless of whether the market rises or falls. This method is also commonly termed as Dollar Cost Averaging.

One may choose to invest more regularly during the bull market and less regularly during the bear market. However, again there is really no hard and fast rule, it all depends on each individual’s risk profile and preference.



5 Effective Investment Tips That Work

If you are aiming to succeed in the world of investment, you must first have the right list of strategies to give high consideration. In addition to that, if you are new in the investment field, I will personally review for you five (5) effective and working investing tips that will lay the starting path to your dream success.

1. Set out a simple investment plan. You should not rush with big plans when you are new in the world of investing. Work with relevant points that will surely get you to understand your entire plan. You should not work on predictions, or you might get a rude awakening at the end. Make sure you always pick the right channel that offers long-term safety and security.

2. Invest in established companies only. Apparently, these companies have high yearly returns. Investing your money in these companies will guarantee you high and massive profits. Apart from the profits, you can be sure that your money is safe as these companies normally have honesty and ethical policies that they continuously follow.

3. Long term investing is the key. The time and your patience are of an essence when investing. So make sure that the companies that you are trusting your investment have a guaranteed future to offer. A good example is those companies that increase their share value in times. They are those worth for your investments.

4. Make sure you protect your future. Sadly, nobody can predict the future, but you can prepare for it. The future can bring positive or negative results, so to avoid facing unnecessary problems, always invest in stocks that are stable and won’t make you run at a loss.

5. Invest in something you are only sure about. Do not experiment in something that might put your money at a high risk. Before investing your money, do a bit of research and if needs, consult a professional financial coach. Having the right information and knowledge on whatever you are investing in, then there is a less chance of losing your money or property. The right investment can bring a huge success and guarantee you a stable future.

Armed with these five investing tips, you can get the assurance that success will follow you all the way to the bank. There is nothing that makes you happy than seeing your money, make you more money. Good luck to your successful investing!



Saving Money on Healthcare Costs in Retirement

Healthcare expenses in retirement is a growing concern for retirees. The increasing costs of healthcare and the inflation factor that goes along with it creates a growing need for advanced planning related to preparing for these costs. Currently Medicare Part B inflation is running around 8% and Part D around 7%.

Healthcare and Medicare expenses are one of the largest expenses – even larger than recreation and housing costs combined. Consumers are often confused when it comes to what is the proper amount to plan for on the “Medical Expenses” line item on their household budgets. Many do not realize that an individual’s Medicare premiums are affected by one’s annual income. Understanding one’s MAGI (Modified Adjusted Gross Income) and implementing strategies to plan around certain income thresholds can positively affect healthcare expenses in retirement.

Here’s an example – a married couple who moves their tax bracket one threshold lower can save $70,000 over their lifetime. How can planning make that happen?

Non-qualified annuities, Health Savings Accounts, Permanent Life Insurance, Reverse Mortgages, ROTH IRAs, are all ways to reduce one’s taxable income. Required Minimum Distributions (RMDs) occur when an IRA owner is forced to begin to take withdrawals from their IRAs in the year in which they turn 70 ½ years of age. Utilizing strategies to reduce IRA balances earlier in one’s retirement – such as ROTH Conversions, early withdrawals, and QLACs (Qualified Longevity Annuity Contracts) are ways to reduce the amount of funds that must be taken from IRAs under the RMD rules – and thereby reduce taxable income.

Annuities that are in payout phase use a tax basis called “Exclusion Ratio” – this simply means that the payment that someone receives is treated as part “return of investment” and part “taxable interest”. Annuities can take lump sum deposits and create guaranteed lifetime income with potentially solid benefits from a tax planning standpoint. On the Permanent Life Insurance front – cash value in life insurance contracts can often be accessed tax free through a provision of policy loans. Finally – Reverse Mortgages create funds that are not subject to state and federal income taxes.

Health Savings Accounts are becoming a notable tax planning tool. They have “triple tax advantages” and if implemented early can create a tax free pool of funds that can be utilized to fund healthcare expenses later in life.

In closing – tax planning goes hand in hand with investment planning. Combining both tax and investment planning can create real savings into retirement years. Retirement is mainly about income more than growth. Controlling expenses – which taxes and healthcare are front and center – can put more spendable money into retirees pockets to help them enjoy their retirement years.



Investment Services Online

Investment services online are everywhere. You can invest in investment stock, investment securities, investment loan property, guide investment, etc. The only true investing opportunity you should do online is forex investing. With the proper education and the right forex training you can make millions in the blink of an eye in this fast growing, high paced investment industry. People devote so much money per year to fraud investment and investment bonds, but they do not realize how great forex investing actually is.

Let me give you a little bit of a brief history on forex investing. Forex investing has been around for decades but it has been a pretty much untapped market for the single investing consumer. This market has been completely dominated by the big players such as multi-national corporations and large financial institutions. They had a huge investment return on their money for decades. 2 TRILLION dollars are traded everyday on this unregulated market. That is why this forex market is by far the largest investing market in the entire world.

Before you jump into this huge earning potential market you must understand a few things:

DO NOT JUMP HEAD FIRST INTO THIS MARKET WITHOUT THE PROPER TRAINING. Just like the title says in bold, you need to spend at least a few weeks reading forex ebooks, doing forex demos, and all the forex training you can get. The great thing about the forex market is the free resources you have available for training. No other market has even close to this many free resources. The best training you can ever have is creating a forex demo account. You need to create a forex demo account and use “fake money” to get a feel of what it would be like trading currency with real money. In about a week, with using the proper forex ebooks and forex strategy, you will be rolling in the fake money dough in no time and be able to jump right into the best investment opportunity possible; forex investing! For as little as $25.00, you can begin your forex investing career. You must be properly forex trained and well equipped and able to adjust to change.

This is a market that is constantly fluctuating and changing and by you having a great grasp on the world events around you will give you a step up from the rest in this market. This is not like the fremont investment loan or investment property, this is investing in the real deal! With the proper education and learning abilities you have with all the online resources, you will be on your way to earning millions in no time. The great thing about this market is you can trade currencies 24 hours a day, 5 days a week. It is just like Las Vegas, instead of the city it is the market that never sleeps. The best thing you could ever do is just have the proper never give up attitude and self-determination; you will be going a long way in this market. I wish you the best of luck in your future forex trades.



Simple Steps To Increase Your Leap In Days

Follow these simple techniques below and you will notice in a couple of weeks that increasing your vertical jump is not too hard and does not take too long easy – as long as you are committed to work on it, and can dedicate time on a daily basis.

How to Increase Your Vertical

Well for starters, a healthy diet is always essential. You need to fuel your body as you start an exercise program specifically to increase vertical jump. Make sure you eat plenty of fruits and veggies, lean meats and dairy. This will replenish your energy levels. Also, take a multivitamin to ensure all nutrients are being provided.

Second thing – and this is VERY important, increasing your vertical means working out. And not just once, but on a regular basis. Great exercises to jump higher include squats, lunges, crunches and knee bends. In addition, sprinting and stair climbing are vital when learning how to jump higher. Make sure when exercising that you are working out all the muscles in your body (at one time or various times). Furthermore, always make sure you warm up first by doing some light jogging or some stretches. Remember, when exercising to increase vertical jump you must still give yourself time to rest. Work out 5 days a week and let your body rest the other two days.

By improving your jumping technique, several inches can be added to your vertical jump in about a week. How to increase your vertical includes knowing how to jump properly. Try to get someone to tape you jumping and watch it while paying close attention to what you do while jumping. Things like what foot you are jumping with, the angle of your body while jumping, if your body is tensed when jumping (shouldn’t be). Then alter your jump accordingly.

How to increase your vertical jump can be done correctly if you invest in a manual to teach you the proper techniques. The top how to increase your vertical program is called The Jump Manual. This is amazing software that gives you everything needed to learn how to jump higher. You will receive workout chart, a nutrition plan and videos to show you not only what exercises are most effective to increase your vertical but how to do those exercises accurately. In addition, it guarantees that you will jump much higher in two weeks or less.

How to increase your vertical takes time and effort but it will be more than worth it when you see the results. You’ll be amazed at how much higher you can jump.



The No 1 Investment Tip

Get rich fast. 350% profit in just one month! 25 and already a millionaire investor. This share will at least TRIPLE over the next year.

Sounds really good? Yea, and they’re probably too good to be true.

You are probably reading this because you are interested in the next big investment tip. You want to invest your money but promises of fast returns often derail you to click onto articles like this.

So here’s my No.1 investment tip: Don’t follow tips.

Don’t Follow Tips

It’s always very tempting to listen to what you friends are saying and then follow suit. You see, if they are right about the next hot investment, both of you can reap the rewards and celebrate together. And if they’re wrong? Well all sorts of thoughts come into mind. Oh man I listened to the wrong person. Maybe I should have followed Alex’s advice instead. He seems better at investing.

All except maybe I should have done my own due diligence in my investment decisions. Doing due diligence does not equate to spending hours listening to the tip-giver and trying to get yourself convinced that this investment shall be the next big thing.

Carrying Out Your Own Due Diligence

It refers to taking a step back from all the noise and starting to understand what you may be going into. There are definitely many pros in buying a certain share, but do consider the downsides. What if the deal did not go through? Is this industry really thriving? Having a balanced view of the potential investment is crucial.

How Much Can You Put Into Investments?

Next, understand your current financial position. In my view, investments should always be made with the excess funds one have, not with the money you need on a routine basis like rent, meals and transport etc.

Assuming you have $2000 in extra cash, is it enough to make the investment? Share prices may be above $2 whereby $2000 is not enough to purchase 1 lot (1000 shares) of the shares which is normally the smallest quantity. Next, have a plan to execute your investment.

Have a Plan and Follow it

An investment plan should be simple and customised to your own needs. To develop a plan, first consider the following points:

1) How much spare money do I have for investment? Will I need it any time soon?

2) Am I comfortable to put this money into investments, knowing that there is a possibility of me losing everything?

3) I’m not a daring person, so $____(your own funds) is the maximum I’m willing to lose.

Knowing how much you are willing to risk is critical because many just jump into investing without knowing their psychological limits. Once they make a loss, they just decide to hold on to the shares till it comes back to the original price and then sell them away, relieved that they did not make a loss.

This action is dangerous because share prices may not rebound back to the previous levels or worst still continue to tumble. As losses become bigger, you may feel helpless and regretful. Even if prices rebound and you manage to sell it at previous levels, you have just wasted your effort and time to monitor this ‘investment’.

By knowing the maximum you are willing to risk, you can learn to cut your losses when you are wrong in investments.

Example of an Investment Plan

For example, you may have done your due diligence and decided that Singtel is a good stock to own. As of my writing now, Singtel’s share price is currently $3.86. You have $4000 spare for investment.

You feel that your tolerance for risk is high and you are willing to risk a maximum of 25% of your money, which equates to $1000. You’re looking for dividend returns from Singtel and you are willing to sell Singtel at a profit if the share price reached $5.

With the $4000, you buy 1 lot of Singtel shares:

1000 shares (1 lot) X $3.86 = $3860
Total Investment Amount = $3960 + $30 (estimated commission charges) = $3990

If the share price falls to $3.00, do not panic. You have already established that your maximum allowable loss is $1000, which means you will only sell if the price falls to approximately $2.86. Sometimes, others are unable to take the emotional stress and thus sell the shares prematurely at a loss. Therefore, you need to set your own price level guides for buying and selling.

Similarly, if the share price rises to $4.50, do not be rash and sell it away because of a little greed. Remember your plan and stick to it. Of course there will be so many other possibilities apart from your own decision. The price may fall back to $3.86, which will mean you could have locked in a profit earlier. The price could shoot up all the way to $5.00 and hit your target, of which you should sell according to your plan and congratulate yourself for being disciplined.

Cut Your Losses and Let Your Winners Run

The point here is that you will not know how to the price levels will be going to move. Markets can take you by surprise (positively or negatively) so it’s wise to follow the advice of cutting your losses and letting your winners run.

If you think you need some help in being disciplined with your own plan, I strongly suggest you learning about the Trailing Stop Loss. It’s my best tool for managing my losses and allowing my profits to go as high as they can. I’ll write more about it in another post but do read about it first if you can.

Investing requires you to understand yourself better and make decisions. Don’t fall for the frequent next-hot-tip or get-rich-scheme. I wish that you have a fruitful investing journey!



How to Get Into Real Estate Investment Services

Investment Services have a broad spectrum with a varied range of categories. So many people wonder and want to get into real estate investment and some of them select it as a profession. The most important aspect of learning about investment services is to comprehend several different facets of real estate investment. You have a variety of choices in this profession and you may practice and specialize yourself among any of them.

Let’s brood over the domain of real estate investment services from the prospect of specialization in any of its facets. This discipline can be divided on the basis of varied types of real estate properties for which investment can be made. We can divide the domain into following major types:

Vacant Land
Commercial Properties
Residential Properties – further subdivided into following two types:
Single Family Houses
Multifamily Dwellings

People in the business of real estate investment services practice and specialize themselves in any of the above mentioned types. Many among them also work on more than on types. Some of the real estate investment professionals master themselves in working with vacant land and land development properties. Others work deliberately with commercial properties and many among real estate investment professionals specialize themselves in residential properties. Investors lie in this category mostly invest their finances in both single family houses and multifamily dwellings.

But which one among all these types is in the best business of investment? This needs to be addressed here in detail in my point of view. The answer is not questionable anymore for me and that is ‘Single Family Houses’. But the dilemma is the single family houses aren’t looked upon as an “investment” by investors. For instance, you can go to the bank and you can borrow money to buy a Multifamily complex containing 200 units in it but if you to go to the same bank and try to borrow money to buy a couple of houses you are going to be in some kind of trouble with that.

So if you would ask me now what would you say if I am going to have trouble borrowing from the banks on single family houses, why would that be a good investment for you. The reason is, mostly banks and people overlook single family houses as investment opportunities. Let me explain why?

We can compare single family houses investment with any of the types such as, vacant land or residential properties or multifamily dwellings. For instance, if you are looking at commercial properties it is really easy to look at cap rates and it is really easy to analyze those properties on a broader scale and there are lots of players. They want big projects and they are analyzing them competing over that type of stuff. But when you are talking about single family houses you are looking at individual properties and you are trying to find properties in good neighborhoods at low prices, look for the worst thing on the house. It takes more effort. They are hard to define and that is going to make fewer people going after them.

Single family houses are such a great investment opportunity because of so many solutions with them. You can fix them up and resell them. You can rent them. You would least own. If you are renting them you can find great tenants that will take care of the house for you so you don’t have to do any fix up work to the property whatsoever. There are just multitudes of opportunities. Today’s subject matter is; the greatest real estate investment opportunity is single family houses in the broader and flourishing realm of Real Estate Investment Services.



How to Find Investment Properties

Learning how to find investment properties can be hard or simple.  It all depends on the system of research you use.  Today I will explain my in-depth method of research I use and teach you a brilliant way on how to find investment properties.

This research method is split up into three main levels of research.  They are top level , middle level, and detailed research (I know they aren’t that catchy).  Remember that a good research strategy is key on how to find investment properties that work.  Let’s begin shall we…

Level One

Top level research is all about selecting broad areas.  This could be research in major cities throughout the country, cities in your state, or simply areas in your own city.  The gaol is finding an appropriate area with undervalued investment properties.

A good way to do this is checking local media like newspapers, online articles, even political campaign slogans can give you an idea of the local real estate market.  Talk to a real estate broker in the area.  Also, pay attention to things like population growth, local laws, and transportation.

If you have population growing in the area, then real estate should increase in value and rent should be getting higher.  That’s good for you wanting good investment properties.

Level Two

You should now understand the market your heading into.  At this point you need to go around to all the areas real estate brokers, banks, and property managers and start discussing any investment properties in the area they might know about.

This is also a good time to sign up for any local newsletters, real estate listings magazines, business magazines, or political updates in the area.  These can tell you a lot about the local real estate market.

Level Three

The last step is to get a list of candidate properties and go around and identify the losers and winners.  Just like you would in your own community where you already understand the market.

The whole point of this research strategy is understanding, in and out, the market you want to invest in.  You want to know everything as if you lived there.  Intimate knowledge is a must!  So, however you decide to do it the goal is to figure out everything.  Every last bit of information available that will help you on how to find investment properties.



Best Stock Market Investment Tips

If you want to invest your hard earned funds as well as create returns in stock market. Here’s few best stock market investment tips which you have to consider before investing.

To begin with the stock market is simply the instrument for getting your monetary targets. You will invest your dollars to increase for a few upcoming expenses like your kid’s college, your dream home, or just to your retirement.

Best Stock Market Investment Tips

Although ahead of investing in market you should need the basic knowledge of how market investment runs & stick to the very best stock market investment tips to become an effective investor. Investing in a market suggests basically purchasing the ownership interest in a firm. If the company performs well, value of shares hold by you also increases & your profits would rise. In case this company performs poorly the worth of shares is more likely to go down.

Whenever you purchase the share, you are simply buying a little piece of firm. You become a joint-owner of the firm with all other shareholders. This enables you to attend shareholder meetings & be involved in the certain decisions & you may vote on the company matters & be heard.

Lots of people generally do not want to be investor just to attend shareholder meetings and be involved in certain decisions. People make investments since they need their cash to grow on their behalf and multiply. The market offers several methods to invest your cash and make benefits.

When it comes to investment, you may invest your cash in market via the mutual fund, by yourself, or through the help of the stockbroker. But Mutual Funds rarely beat the stock market due to rules added to them. The only one you may count on is you, thus study the best stock market investment tips to be a profitable investor.

The market gives many benchmarks however the 3 hottest indexes are the Dow, the NASDAQ, as well as the S&P 500. The prices of those indexes were dependent upon the stocks they track. As an example, the S&P 500 tracks 500 stocks. If these 500 stocks increase on the average, the S&P 500 index climbs. Set your market investment goal to hit the market. Your investment profit needs to be greater than the benefit of major indexes.

Every investment has risk, the more risk you are taking, and the more returns you make. Just as one investor you purpose need to be to at first determines the risk you could be ready to take and invest your money accordingly. To illustrate, a penny stock is more risky than a huge company such as Microsoft or Wal-Mart. On the other hand, a penny stock can easily increase 100%, 200%, 300% or more. Although big firm stocks such as Microsoft or else Wal-mart can be much riskier if you choose you invest your money in it.

The above are only some Best Stock Market Investment Tips. To understand more regarding the market and make profits in stock market, subscribe to the Free Stock Market Newsletter, the Weekly Wealth Letter.

Weekly Wealth Letter is a free e-mail newsletter packed with money-making investment ideas will be delivered to your inbox every Tuesday morning. Weekly Wealth Letter is loaded with unique insights, best stock market investment Tips & powerful resources for wealth building through smart investing.



What to Do With a Thousand Dollars

images (1)If you are lucky enough to get your hands on a thousand dollars spare, then the question of what to do with a thousand dollars arises. There are many options as you can either choose to spend them immediately or save them for something important in the future. You can dine in expensive hotels and can shop your favorite dresses and makeup kits. Another option is to invest the any, and get return on it which will allow you to make more money.

First investment option is to go for low priced stocks. You can get more in less amount and they are profitable as well. There are a lot of small companies coming up with futuristic products and people are investing in them. Technology presents a great opportunity for money making. Look for some fast growing mobile companies. Think of silver as it is the new opportunity market for investors as gold is getting expensive everyday and it will get out of the reach of many.

A lot of people are making good money out of the internet marketing but to be successful there, you will have to have your product which you can sell. Almost any kind of product can be sold online and you can reach a larger audience. You can buy some resell rights products or can ask someone to make a product for you which you can sell yourself. EBooks and software are the hottest selling products on the Internet. There is plenty you can do with a thousand dollars. Hopefully, the above investment tips will go a long way to help making the most of a thousand dollars.