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

photo credit: AMagill

Only 30 million Americans are lucky enough to be covered by a traditional pension plan, and if you’re one of them, you’ve probably wondered whether taking a lump-sum payment would be better than your monthly pension check. Though it may seem complicated, when you take the facts into consideration, the answer is clear: (more…)

credit: Darren Hester

Everyone with investments has been feeling the heat, their stomachs sinking each time the Dow dips another hundred points. But instead of double-guessing your investment decisions and diving into panic mode, Money Magazine recommends that you focus on your long term goals in relation to your investments. (more…)

credit: thelastminute

When you’re trying to decide just how to invest your hard-earned and saved money, the options are pretty boggling. If you decide on mutual funds, Joshua Kennon from About’s Investing for Beginners has a few tips that will certainly point you more in the right direction to choose the right mutual fund. Some of his advice includes: (more…)

credit: Jeff Keen

Though you may be feeling unsure about your ability to contribute to your retirement fund or cushion your savings account, CNNMoney has tips to help you keep your nest egg on track: (more…)

credit: thelastminute

Middle-aged couples often find themselves in a tricky dilemma – although they might be financially stable at the moment, they’ve got a couple of kids about to hit college, and they still have to keep an eye on their own retirement in 15 or 20 years’ time. A recent CNN case study gave a great example of a family facing this dilemma, and came out with a few useful tips that we can apply more generally.

(more…)

If through our investments in stocks, we play the market, then it’s important that we hedge our bets. There are many experts that volunteer to do the work for us, predicting upswings and downturns, telling us when to buy, when to sell, and when to hold. But Money Magazine’s undercover Mole warns us that predictions can urge us to buy and sell at the most inopportune times.

(more…)