Foreign Investing Basics: 3 Strategies – The Smarter Investor …

Foreign Investing Basics: 3 Strategies – The Smarter Investor …

International exposure is key for almost any portfolio. Here's how to get started.
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Investing for Comfort is a Terrible Idea

Investing for Comfort is a Terrible Idea

On October 14, 2000 the S&P closed at 1374 compared to this past Friday's close of 1428. That's a gain of just 4% in twelve years. Why bother with the stock market if the gains over twelve years are so puny? Often ignored, however, is that dividends
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Your Questions About Investing In Bonds

Paul asks…

Do you think investing in corporate bonds is a good, or the best, way to increase income?

Over the last few years, investors have been forced to look for ways to squeeze additional income from their investment portfolios. Do you think investing in corporate bonds is a good, or the best, way to increase income? Why or why not?

Justin answers:

Bonds of any kind at this point in time are a poor choice.
The return is very low and hardly keeping pace with inflation.
Once interest rates begin to rise, bonds will begin to lose
value. Best you look into the stock market or mutual funds
for better returns.

Richard asks…

what is the relationship between interest rates and inflation?

And what would be the implications for someone thinking about investing in Bonds?

Justin answers:

Interest rates and bond values move inversely. Think of a playground see-saw. Interest rates rise, and existing bond values fall. Inflation is something that has and will cause the federal reserve to raise short-term interest rates, which causes existing bond prices to fall. If you are investing in bonds for the income they generate (regular interest payments from the issuer), then you’ll be OK. If you’re investing in bonds with the intention of selling them later for a gain, you may not be successful. Of course, even the experts are really bad at predicting interest rate moves, so don’t try to predict the future too much. If you buy individual bonds, pay attention to quality and consider building a bond ladder. If you are working with a smaller amount of cash, consider bond funds. Also, be sure to balance this investment with some equity (stock) investments to give you diversification. Good luck!

William asks…

Which back in currently the best for saving money?

Also does anyone have any info about investing in bonds and all of that? Which bank is the best for that?

Thanks!

Justin answers:

For savings, you are almost always better off with a building society than a bank. The exact account that’s best depends on how long you want to tie up the money for and whether it’s a lump sum or regular saving. You used to get a good rate on 4 year bonds from the Skipton but they change month to month. Not sure if they’re the sort of bonds you mean or if you mean government bonds. Think for that sort of thing you’d need to talk to a proper financial adviser.

Charles asks…

How long would it take to turn half a million into 5 million?

On average, using investing, CDs, bonds, whatever.

Justin answers:

On average, using investing, CDs, bonds, whatever.

There IS no average. The RATE of return is crucial, and will vary 10 fold from the options you list. At 12% APR, a 10 fold return would require 20 to 21 years. At 4% the time frame is 33 to 34 years.

Ken asks…

Can banks invest FDIC insured deposits in investment grade bonds?

Can banks invest FDIC insured deposits in investment grade bonds? If so, are there any restrictions on the percentage of deposits that can be invested in bonds?

Justin answers:

Banks take all FDIC insured deposits and use that money to invest in a variety of things which may include securities, bonds, etc, however their most profitable investments is by loaning that money back out in the form of credit cards, where cardholders guarantee to pay them 12-30%+ a year return.

Other investments include loans such as residential and commercial mortgages, which has not worked out too well.

Donald asks…

How would I do this: Suppose that you received an unexpected inheritance of $36,000. You have decided to?

invest the money by placing some of the money in stocks and some in bonds. To diversify, you decided that five times the amount in bonds should equal three times the amount invested in stocks. How much should be invested in stocks? How much should be invested in bonds?

Justin answers:

Let s = the amount of money to be invested in stocks
Let b = the amount of money to be invested in bonds

You plan to invest all the of the money you have unexpectedly received, so s + b = 36000

Also, since “five times the amount in bonds should equal three times the amount invested in stocks” That means 5b = 3s

Now you have two independent equations

s + b = 36000
5b = 3s

re-arranged a bit for convenience these might look like

s + b = 36000
-3s + 5b = 0

Now multiply both sides of the first equation by 3 giving

3s + 3b = 108000
-3s + 5b = 0

Add the two equations giving

0s + 8b = 108000

solve for b giving

b = 13500

Now substitute this numerical value for b into one of the original equations giving

s + 13500 = 36000

solve for s giving

s = 22500

So, $22,500 should be invested in stocks and $13,500 should be invested in bonds.

Check:

22500 + 13500 = 36000
5(13500) = 3(22500)

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Dividend-Growth Investing For The Long Term Could Be 'The Holy Grail'

Dividend-Growth Investing For The Long Term Could Be 'The Holy Grail'

I believe that the most successful investors on the planet buy shares in companies that are solid, large cap, dividend paying, blue chip stocks. It could even be the "Holy Grail" of the investing world. Some believe it might be the ONLY grail for the
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Investing in Toronto Condos

The Toronto Condos real estate market is expanding and flourishing even in the midst of difficult economic circumstances. As the town of Toronto continues to grow, the need for condominiums will carry on to rise. Even now, the Toronto market is beginning to heat up. Now is the right time to leap into the marketplace and snatch up some of Toronto’s phenomenal offers whilst funding prices are at historic lows.

The town of Toronto is Canada’s most populous city, as nicely as the province of Ontario’s capital city. A cosmopolitan locale of explosive development, Toronto condominiums are among the best in the globe. Building on condominium buildings continues to surge in Toronto, with the greatest and latest condominiums becoming constructed all the time. Numerous various industries call Toronto home, and with these industries come the nicely paying work that continue to entice newcomers to Toronto in higher figures every yr.

The selection, high quality, and lasting worth of Toronto condominiums make it a perfect location to commit in real estate. The high need for housing spurred by an influx of more than 1 million individuals over the previous decade mean that your investment is assured to generate a high degree of return. Whether or not you’re investing via pre-building sale, resale or assignment, the Toronto actual estate market is a sure wager that the money you invest will yield strong returns.

Higher growth marketplace, wide variety of investment possibilities, and historic lows on interest prices. If you are looking to make a wise purchase, now is the time to commit in Toronto condos!

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Tips For Good results In Actual Estate Investing

As a newbie actual estate investor, you can get bombarded with so much info that you get thrown off and left in confusion.

These suggestions assist you get much more organized and improve productiveness.

1) Get a business name
Even although a business name ought to not stop from doing a deal prior to you get one, it is essential to get a title. What do you do if you get a deal before you get a business name? Go make some money, get your name later!

2) Determine on a business design
You cannot be a jack of all trades. Concentrate on 1 business design at a time. Following all maybe you are just a beginner all pieces will arrive together in because of program.

The initial stage is to make money as a actual estate investor and decrease confusion.

Most likely you will attempt most business models in due program. It’s part of the learning procedure.

3) Get a real estate investing web site
This is very essential for a effective real estate investing company. It tells your story for you and saves you from repeating yourself over and more than.

It pre-screens and pre-negotiates with motivated sellers so you conserve lots of time and effort and delivers deals prepared to go.

And promoting houses gets to be actual easy with the correct web site. It builds your purchasers list so selling long term properties gets to be easier. Of course a good website also helps you handle all types of contacts.

You can entice personal money investors on the website to finance your deals, as well as attract and reward bird canines or people that deliver you inspired sellers.

Of course you must get a website that is adaptable to altering requirements that changes as your company models and needs change.

Verify the finish of this article for a good real estate investing website.

4) Get your dream group
Talk to a great title company to near your deals. Get an inspector, Realtor, contractors, plumbers, etc.

Maintain these contacts on your actual estate investing web site and open up a folder for them.

5) Be a part of a real estate club
Join a local real estateclub. Attend all meetings. This is where you meet individuals who do precisely what you are attempting to do. They will make your studying curve slower.

You will know what functions, what you can do tomorrow and what you will require to do to remain in company.

The teams also organize courses – you might be amazed how a lot you can discover even when you are experienced.

Most importantly, these contacts will assist you get inspired sellers, or even buyers for your properties. Some of them buy qualities at wholesale costs for money!

6) Handle your time
Time is money. Invest time advertising and growing your company. Place off much less productive duties for later. Maintain a diary with essential issues to do each day.

7) Keep company tools handy
Keep some contracts in your truck that you can fill by hand. A electronic digital camera for taking pictures. A voice recorder for recording property addresses when you can’t create. My iphone does wonders in this respect. Keep some trash bags, hammer and other easy equipment you may need from time to time.

In your workplace, each property should be submitted in its own folder alongside with closings documents, spare keys, etc.

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