Look around and you might notice that there are few places to put your money right now that will yield sure substantial gains. The stock market may be rising, but it’s been on a roller-coaster ride since the beginning of 2009, up one week, down the next. Foreclosures might or might not make a good investment, depending on where you live and how much inventory is left to reduce. Bank accounts are making minimal gains, whether money market or savings. It’s time to take the long view and opt to invest in something that will surely pay gains over time: yourself. This type of conservative investing can not only be tax-deductible, but even safer than opening a swiss bank account from the US. (more…)

Have a little extra cash and can’t decide whether to jump into the stock market or not? There’s no guarantee the stock market will continue to climb, and even so, some companies may be doing better than others in this recession. In the past, like during the Great Depression, some types of investments that we consider “unusual” were the best ways to safeguard monies. Today, we might want to take a little wisdom from the Greatest Generation, but also use this knowledge to include them in our favorite stock picks too. (more…)

Finding positives about the economic situation currently embroiling the entire globe seems a bit hard to do. In fact, between inflation, unemployment, poor stock market performance, falling real estate prices and other economic factors, it can be easy to think there are no positives about the economic situation. However, there is at least one good thing to come out of the current financial disaster brewing. Gold prices have been steadily rising for years, despite what the world markets might be doing. Why is this good news? How can rising gold prices be a boon to a world in economic turmoil? (more…)

Have you taken the time to create a budget based on the amount of time you have available? We’ve all heard that time is money and yet most of us are quick to count pennies while paying little or no attention to the seconds that fly by. Unlike money, however, there is no way to store time to use at a later date. There are  no credit cards issued to use when you need 190 hours in your week instead of the usual 168.

So how do you go about making a time budget? You use the same format that you should already be using to track your financial income and expenses. Figure out approximate times for each major task you complete during a specific week. The hours you typically work, your drive times, shopping, laundry, etc. Be realistic in your estimations and don’t cut down times just to make yourself feel better about how you spend your time. Just like you’d bring some extra money to a grocery store if you knew prices changed constantly and you had a list of things to buy, make sure you leave enough margin between your tasks.

Once you have your time budget laid out, its time to see where you are wasting time and congratulate yourself for the days you use your time effectively. Setting up a time budget is a great exercise to gain a new perspective on how you are spending your life. Unlike the financial playing field, the one of time is exactly level for us all. The most financially wealthy people in the world woke up this morning…and started the day with exactly the same amount of time left as you did.

Have you made a time budget?

photo credit: Michel Filio

Do you know a lot about investing your money? If so, you are in good shape. But what if you are like most people and don’t know much? In this case you have two options. You can hire somebody who knows more than you to handle your investments, or you can learn on your own. Which one sounds better to you?

The knowledge you have of investing is very important. Those who don’t know much should be careful about where they put their money. After all, you don’t want to take too much of a risk. If you do there is a chance that you could lose a lot of your hard earned money. Is that a risk you want to take? You work hard for your money so you should take your investments seriously.

To learn more about investing you can turn to one of the many books on this subject. Of course, you don’t want to overlook the knowledge that is available online. One tip to keep in mind: only gather knowledge from reputable sources. In other words, learning from Warren Buffet is much different than picking the brain of your next door neighbor who works at the local grocery store.

Before you begin to invest your money you should take note of how much knowledge you have. If you know a lot, move forward. If you don’t, either hire a professional or take the time to learn before you make your next investment.

According to a recent report on the legendary investor, Warren Buffet, it’s time to purchase stock in American companies. The method behind what might seem like a bout of madness for the aging investor is that when the total market value of US stocks drops to a level between 70%-80% of American Gross National Product, it’s time to buy. 

Buffet’s fantastic success as an investor is based, in part, on his practice of seeking out undervalued companies to invest in. He soon moved from turning over a profit through stocks in a company to purchasing undervalued companies and bringing the most-successful ones together into the Berkshire-Hathaway brand. But purchasing a struggling company is well out of the average investor’s financial reach. The only remaining option is to purchase a portion of that company as stock. 

It could well be said that nearly every company in the US that has the resources to continue operations is currently undervalued. With the total value of the stock market reaching the 76% mark at best, perhaps Buffet is right and its time to pull some money from under that mattress and invest it. 

Perhaps it comes down to a matter of faith. Once you decide whether or not you believe the economy will recover, the question of investing gains simplicity. If you cannot afford to lose a dime, then just like always, you should keep your money in a safe place and not worry about the stock market. However, if you have some cash on hand and want to research the possibility of creating genuine long-term wealth, it’s a great time to check out the stock market.  photo credit: ArtemFinland

When should you start investing for retirement? This is an important question and one that is asked by people both young and old. As a general rule of thumb you should begin to invest as soon as possible. In other words, it is better to begin to build your portfolio at 25 than 35. The earlier your start the better chance you have of building a nice nest egg that is sure to hold you over in retirement.

There are many reasons why starting early is the way to go. First off, compound interest is a phrase you should become familiar with. Generally speaking, the longer your money has to grow the more you are going to earn. Year after year your money compounds and soon enough you will begin to realize big gains.

Also, the earlier you start to invest the better chance you have of riding out bad times in the market. For instance, if you are 55 and just began to invest today, with the stock market sinking, you will find it difficult to get a good return before you retire.

The best time to start investing for retirement is as soon as possible. Don’t forget this tip!

In today’s day and age a lot of people are scared of investing money in the stock market. The market is anything but stable at this time, and this is forcing many people into other investments. While you don’t want to take all of your money out of the stock market you do need to consider which investments are safer. This is particularly true if you are nearing retirement age and will need to access your money in the near future.

There are several safe investments that you can consider. First and foremost, if you want to keep your money safe, while still receiving a decent return, you should consider opening an online savings account. Many online banks offer rates as high as 3.75 percent, and as the economy improves this number will probably increase. Why an online bank? If you compare the rates at online banks to a local institution you will see just how much better off you and your money will be online.

CD’s are also great safe investment vehicles. Generally speaking, with a CD you are locking your money up for a predetermined amount of time at a predetermined interest rate. For instance, you can purchase a CD for six months with an interest rate of four percent. If you know that you will not need your money until the CD matures this is a great way to earn a decent return without taking a huge risk.

You don’t have to keep all of your money in “safe investments.” But you should definitely keep some of it in places where you are guaranteed a return. After all, it is better to make money than to lose it, right?

Volatile times make money and investment decisions that bit trickier. Sometimes it’s easy to over-react and suddenly take all your money out of investments to put it in a “safe place” - but that can often leave you worse off than when you started. CNN Money has some tips on what to do with your money to keep it safe during the coming months and years:

• Don’t stop contributing to your retirement account. In fact, it makes good sense to contribute to your retirement account when the share market is down because then you’re paying less for your investment.
• If you have some capital losses, you may want to realize them now to cut your tax bill - consult your financial planner or tax accountant to see if you’ll come out better off.
• Switch from a traditional IRA to a Roth IRA this year - because when you switch you pay taxes on these assets, so if they are lower than normal, it’s a great time to change and pay less tax. There are various reasons that a Roth IRA could be better for you but there are also income limits so check it out with an expert before you make a decision.

With numerous fees to be found on a detailed statement from any mutual fund, it’s hard to be sure you’re not paying too much in fees.

When you are trying to make a decision on which mutual fund to choose, the easiest way to think about fees and charges is to look at the fund’s expense ratio. It is usually easy to find and easy to understand because it simply combines all the possible fees together and presents a percentage of your investment that will be used for fees.

But if you want to know what some of the actual fees are, a recent Financial Planning summary helps us out:

• Management fees are basically what the fund uses to pay its management and employees, and they’re usually less than one per cent per year.
• Administrative fees cover other costs of the fund, including mailing, record keeping and communications, and they are on average less than half a per cent per year.
• Sales charges or loads are a percentage applied to the purchase in a fund - although some now offer ‘no-load funds’. Pay attention to these because some funds charge up to five per cent per year.
• Marketing and distribution fees also exist for some funds, but not all.