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Information conveyed in this article is of general nature and not to be construed as investment advice. Readers need to consult their own advisors for investment advice.

I plan to write two or three more articles on this important subject.

In the past century US markets have lost around 40%, seven times, causing devastation, heart aches and attacks. When we say average loss of 40%, that means some lost in excess of 40% up to 100% of their portfolio and some from zero to 40%. Those who lost not a dime in any down turns, have been and are doing something right. I will cover that in another article.

“GET RICH QUICK STORY” TOLD BY JOHN & JANE DOE

John and Jane have a portfolio worth $500,000. Both are Eager to see it grows to that magic number $1,000,000. John has been searching the net, watching ADs and reading news papers looking for good GET RICH QUICK money managers. John identified a couple and forces Jane to go with him to meet them in down town. Jane reluctantly obliges her husband (character like Frank, father of Ray Romano in the series I Love Raymond!). Jane murmurs to herself, I cannot believe, John keeps falling for all kinds of ponzi schemes. When he is going to learn?

They are in the office of C. Swindler financial services. John is very impressed with the lavish office settings, with young flashy receptionist (turning Jane off and John on) gourmet coffee and cookies. Three big signs framed with gold borders reads “WE LOVE RICH CLIENTS”. “GET RICH QUICK SCHEMES EXPERTS”, “SHORT CUT TO MILLIONS”. John reads them loudly and says to Jane, Hey Jane, do you see those signs? finally we are at the right place. You never trust me. Do you?
Mr. Swindler comes out to greet the couple with a big smile on his face.
C S.: Hello Mr. & Mrs. Doe I am Con Swindler. Welcome to the world of the riches. Come on in. Have a seat.
J&J: Thank you.
(John is all pumped up and restless and Jane keeps kicking him in his foot trying to control his excitement)
CS: Folks, feel free to call me Con. What can I do for you?
John: Hey Connie, how much of a starting capital do we need to get to one million dollars soon?
CS: That is very simple to answer TWO. We can do that. We are the best game in town.
John: Wow! Just two dollars?
(Kick in the foot. John leans back)
CS: No, two million.
John: Oh, that is not bad either, it is still better than the other guy.
(kick in the foot)
CS: Who is the other guy?
John: Your competitor, Ronnie Ranoff financial services. He said he needs 4 million dollars. OUCH!!!
(Powerful kicks )
Jane: Let us go. Thanks Mr. Swindler.

Money Management at its best or what?

Well, realistically it is not that bad. There are COMPETENT money managers out there serving the public well. Needless to mention, you need to do your due diligence to find a good fit for you. Continue reading ‘You Can Stop Your Portfolio Bleeding Now – #1’ »

If you are unwilling to take much of a risk, you are likely to stick with investing in fixed funds which won’t leave you in a position where you are likely to lose everything, but they are also unlikely to put you in a position where your savings will multiply low risk often equals low growth . Over Confidence – more than one employee told me that they are investing their money in only one or two funds. Consider Lifestyle Funds – lifestyle funds are an excellent option for investors who feel that they don’t know enough to invest for themselves or that don’t want to deal with the hassle. Stay Out of the Money Market Fund or Stable Value Funds – such funds are great if you are building an emergency cash reserve or saving for your summer vacation, but if your investment time horizon is long, putting your money in such vehicles is a poor decision. When the price is below the average you use, be in the Money Market, or stable value option that does not lose money! Move your investments to the stable option as soon as the indexes and funds move below the average you use.

Mutual Funds are really great investment options designed to reduce risk. In general, you can further divide this form of investing into the following categories: – money market funds are considered very low risk and have very low return. Sometimes, the return on these investments is less than inflation – bond funds invest in government loans, both federal and local. They are low to moderate risk investments and are very sensitive to interest rate changes – balanced funds mix stocks and bonds to reduce the investment risk of stocks and to benefit from the certainty of bonds – stock index funds consist of stocks of companies which are found in market indexes and who generally follow the stock market. As you near retirement, you might want to switch your investments to more conservative funds to preserve their value. Target-date funds simplify long-term investing. Continue reading ‘Learn How to Invest in Mutual Funds’ »

By now most of us have some experience with mutual funds. We have them in our 401(k) accounts or our IRAs. Often we have a limited set to choose from on our company’s investment plan. Nevertheless most of us have at least seen one.

Mutual funds are collectives of investor money that are managed and invested in underlying equities. A professional is hired to operate the fund, called the fund manager, and generally he is guided by a prospectus, which provides guidelines to what kind of investing the fund will do. Continue reading ‘Mutual Funds For Neophytes’ »

Mutual funds are designed for average investors who wants to invest but do not want to select and manage investments like stocks and bonds on their own. In other words, they are the investment of choice for most people.

When you invest in them, professional money managers deal with all the details. You select the fund(s) you want to invest in and they do the rest for you. The average person can have a diversified and balanced portfolio of securities (investments) by simply owning shares of the appropriate mutual funds. Continue reading ‘Mutual Funds – The Down-to-Earth Basics’ »

Not everyone needs to know everything. I have an uncle who was recently honored as a university fellow at Lakehead University (Congratulations, Uncle John). He specializes in the study of Banach spaces and abstract convexity. Now I have no idea what any of that means and furthermore have no idea how someone can specialize in it. So I am glad that I don’t need to know that. But, in the field of math I do need to know how to add, subtract, multiply, and divide. No everyone needs to know everything, but life is a lot easier if you at least know some minimal facts about important things. So here are the five things I think everyone should know about investing.

1. What is a mutual fund?

Mutual funds are places where a group of investors (everyday folk like you and me) pool their money. Due to minimums or fees an individual investor might be limited to buying only a few stocks. When your investments are so concentrated, any poorly performing stock can have a dramatically negative impact on your losses. Some mutual funds can be purchased with as little as $500 and give you ownership of hundreds of stocks. Mutual funds have different goals and focuses depending on how they choose to invest. The greatest advantage of mutual funds is that your money is spread out between many different stocks. Continue reading ‘Five Things Everyone Should Know About Investing in Mutual Funds’ »

Asset allocation funds can be a great way to approach investing because they allow you to benefit from the movements of stocks, while at the same time avoid the volatility they come with.

They do this by investing in other asset classes such as bonds as well as stocks. Some of the major benefits are.

1. Escaping volatility

Stocks can be very volatile and that can be very risky at times. So if you just buy a portfolio of stocks and the market crashes you could lose a large chunk of your portfolio. But if you had a diversified portfolio between both stocks and bonds a market crash might not affect you as much.
Bonds can be used to help you get through a bears market. Continue reading ‘Great Things About Asset Allocation Funds’ »

Incoming search terms:

• 2012 mutual fund allocation

When it comes to investing large amounts of assets, an investment manager is the logical choice for most people. Most mutual fund companies or investment firms have investing counselors who are in charge of handling individual accounts or complete mutual fund groups.

They do this by controlling an investor’s portfolio either by direct action from the client or discretionary money management where the investor allows the investing manager to decide on what to do with his investing instruments. An investor is not just a private client but also refers to any agency that uses asset management investing as a key part of their portfolio.

For someone interesting in becoming an investment manager, it is best to have at least a bachelor’s degree in business. It is also necessary to complete at least one year of Chartered Financial Analyst Training if you are going to work for an investment firm. Also, it required to get registered and a license when working as an investing counselor. Continue reading ‘Investment Manager Facts’ »

Most people have got this in common. They don’t invest “much time.” I would like to quote Robert Kiyosaki’s Rich Dad. “Since most people don’t invest much time, they lose their money.”

Robert also talks about the 90/10 rule of money. He explains that 90 percent of investors invest their money, but they don’t invest much time at all. So how do you find the “best way to invest money?” Check this out. The 10 percent that make 90 percent of the money have invested more time than they have money. Continue reading ‘What is the Best Way to Invest Money?’ »

Stock market investing is the best way to gain big money but it requires a lot of effort and a very active involvement in the stock market. That said there are other ways to save you the hassle of investing directly yet stay invested in the stock market. That method is the mutual fund route.

In mutual funds generally there is an asset management company which will float a fund for a specific purpose say for investing in only alternative energy stocks. Now think of it as you investing the alternative energy stocks. A large number of people will get units similar to stocks for the money they put in the fund. There will be a fund manager who will be actively managing the money and picking the stocks. This helps as the fund manager is backed a very knowledgeable team of analysts who will be doing research as to which are the best stocks to buy and which are the stocks to sell. Continue reading ‘A Special Guide For Mutual Funds For Beginners’ »

Do you have excess cash and don’t know what to do about it? Well, why don’t you invest it? If you will just use the money for something else like taking a shopping spree, you’ll be losing the opportunity to generate more cash. It’s better to look ahead for the future than just live for today. One way of assuring for a brighter future is by making investments. However, there are different kinds of investment vehicles available. If you’re a newbie in the field, I advise you to invest in money market mutual funds. Actually, putting your money in mutual funds is the best thing you should do.

Mutual funds are the most appropriate investment for amateurs. The main objective in making investments is to make big returns. It’s a means of reaching a healthy financial life. There are people who became financially successful just because they made wise investments. If they can do it, why don’t you do it, too? You can start by making even a small investment. So why would you choose money market mutual funds over others? First, investing in mutual funds doesn’t require huge capital outlay. You can open an account with just $500 in hand. Isn’t it great? Unlike other investments which you need to have big capital like in stocks, bonds and other types of mutual funds. Continue reading ‘Money Market Mutual Funds – Safe and Less Risky Investment’ »

Incoming search terms:

• money market