Your Questions About Invest In Gold Online

George asks…

I hear land in Africa is cheap..especially in Nigeria,,, with gold and oil..?

Can i buy some property from Africa online??? If anyone knows of any website with such info go ahead and email me..I want to invest in Africa…I want to have Oil fields like some Nigerians..

financi4 answers:

Yes you definitely can. I can help you make a purchase of 50 acres of Nigerian oil fields for $50 million. Please send a check payable to Master Tong.

David asks…

investing funds into new fuels?

I’ve never invested before, and know essentially nothing about the stock market, its trends, its life, etc. Who, where, when, etc should i go to for direction into investing into new fuels such as bio-fuels….ethanol,algae, bio-diesel, etc. Would that same person, preferably a real face to face intersaction rather than an online organization, be able to invest my funds in gold, or salt, or water, or mr.kims dim sum shop, etc. just need a lil bit of advice thats all.

financi4 answers:

If the advice you needed were that little, you’d be able to get it for yourself without asking for help. The truth is that you have no basis for decision-making at this juncture. When people try to make little of the task at hand, they’re usually in denial. When people put their cash in front of a horse named “Denial,” they will ALWAYS lose it. There are too many thieves out there who are unscrupulous and won’t hesitate to take advantage of you.

I’m a professional l energy trader. I work at this six days a week, sometimes seven. I love it, not because I make a pretty good living but because I find it exciting. It moves quickly, the threat of geopolitical intervention is always there in the form of one crisis or another. Nobody should invest in new fuels without intimate knowledge of what those fuels are, how they work, who has the money to support investment initiative and what government connections are in place to give a hint as to future opportunities for the fuel and its supply companies.

There are scores of places and people you can hand your money over to but I wouldn’t recommend a single one. The only way to make money in this is by managing your investments on your own and using your own talents and thirst for knowledge. Anything less is a pure crap shoot.

Allow me to suggest you Google: modern day fuels, biomass fuels, solar energy applications, oil and natural gas solids/equivalents and “organic rankine” systems. You will quickly gain an understanding of the lay of the land and find yourself learning precisely the things you need—BEFORE investing.

Good luck!

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Your Questions About Investing In Mutual Funds

Charles asks…

Is there an online site where I can start investing in mutual funds, but do not need a minimum amount?

Example: Ameritrade requirs $2,000 to start.

financi4 answers:

Most brokerage firms will have basic requirements for opening an account. It is expensive for brokerage firms to open and maintain accounts,

If you know what funds you want to invest in, just contact the fund company and open an account.

Fund companies will be cheaper and do not have the large requirements of brokerage firms.

Becareful of Sharebuilder, it does not provide all the services of a regular broker/dealer nor do they provide all the products.
Cheaper is not always better.

Donald asks…

What are two great EFT and Mutual Fund investing books?

What is one great book about how to get started investing in ETFs? Mutual Funds?

financi4 answers:

The “Dummies” series of books are great for starters. There is one for mutual funds and one for ETFs.

James asks…

how do i start investing in mutual funds?

i am 22 and in college freshman have two children friends tell me that this is the best way to save and gain interest at high level i can afford to put away an average of 400 to 500 every month i already have a bank just tell me how do i start and what questions may be good to ask when talking to someone about mutual funds or tell me what other methods i can use to save money for family future (college,house,better car, ect.)

financi4 answers:

Hi. You should consider establishing three different accounts.
First, a short term “emergency” fund that you can access for (guess what?) emergencies. This is for true emergencies (lost job, illness, etc.) not foreseeable expenses like car maintenance, insurance, etc., which you should budget for separately. Most advisers recommend 3-6 month’s income saved in this first account. For now, most would recommend 25% of your available monthly should go to this account until you reach that 3-6 month saved amount, then roll this 25% of your monthly to the next category. This money should go to a short term type “investment” like a money market account; you can find several that pay about 5%.
Second, concurrently set up a longer term account to save for purchases you know you’ll be making in the 3-10 year time frame (car/grad school, vacations, etc.) You want to consider lower “risk” mutual funds for this account, since you will have a bit more time to allow for, but still benefit from, market fluctuations. You should be able to get 6-9% earnings in this type of investment. You should put 25% of your available funds into this account until you have it where you want it. Once that account is at the level you want it then excess money from this (and the pourover from first account) should all go to the longer term investment.
Third, you want to establish a long term, no touch account, for retirement. 50% of your funds go here, to be later supplemented from the pourovers of the first two accounts when they are properly funded. These investments should go to a good, diversified mutual fund that invests in “equity” (stock) in various companies. There’s a huge list of them, and sorting through them can be a real headache. The online services are good, but in my experience a bit cumbersome to use. I like to find Money or a similar magazine that has summarized the various funds, and review those results. You are looking for long term results of the fund, how long the fund managers have been in the game, and what the expenses are. You should be able to find something that will yield 12% or more over the long run. These funds should also be in a tax-advantaged account (Roth IRA is probably best. In essence you make your investments with after-tax money, but all the earnings thereafter grow tax free). You should NOT ask the bank for these recommendations; a bank is not the place for long term investments and they’ll always try to sell you their stuff first. (As an aside, NEVER invest money in an insurance policy. DON’T buy whole life, variable life, variable universal life. They are hugely expensive, and with surrender fees, etc., the investment returns are horrible. Plus, with few exceptions, you lose your savings if you die!!). Congratulations on doing so well at such a young age. FYI, $450/month from age 22 to age 65, invested at 12%, will be worth $7.6 million.

Chris asks…

Am I stupid to be investing in mutual funds?

I do have the money to invest and can afford to lose if I have to.
I have been investing in Vanguard Windsor 2 funds every two weeks since the market started declining. About $2000 a month.

I figure buy low. Is this a smart strategy?

Or am I being stupid?

financi4 answers:

You’re doing the right thing. A mutual fund is a long term investment. Count on having the money in it for at least ten years. The portfolio is going to change, so what they have in it now makes no difference. Its the fees and the long term return, because the mutual fund manager is likely to change too, that matters.

David asks…

What are the pros and cons of investing in mutual funds?

any help would be appreciated.

financi4 answers:

1. It is easier to diversity your Portfolio. It costs money every time you buy and sell an individual stock so by having a mutual fund you only have to purchase the single fund.
2. A professional decides the individual stocks that you invest in
3. A mutual fund normally invests in dozens of stocks so if one or two of the stocks do bad your losses will be minimized because the other funds may be able to cover some of those loses.

1. There are normally load and other fees associated with mutual fund so some of the profits go back to the company offering the fund.
2. You do not have full control in the stocks that get invested in.
3. There are often redemption fees
4, If do not have as much control over the actual date/time your funds get traded at (ie stocks you can sell at a seconds notice, funds it may be a few days before the trade is finalized depending upon how the funds are being purchased and sold)

If you have the money, the time to diversify your own Portfolio and you know what you are doing you can potentially make a lot more money with stocks because you have more control over how your money is invested. If however you are not an skilled in trading, do not have a lot of money to diversify your Portfolio or the time to monitor your stocks funds may be a better option.

Steven asks…

Is it best to keep my 401K in a money market sweep at this time, or should I start investing in mutual funds ?

financi4 answers:

Don’;t do anything until we know who the next president will be.

If it is obama, most predict that the stock market(which is mutual funds) will tank if he is elected the very next day.

Edit- honeslty i think that mutual funds suck. You got hidden fees and such. There are thousands of them and often they don’t perform to the 20 % as they will tell you that they will do.

Robert asks…

What should I be concerned about right now by investing in mutual funds that primarily buy bonds?

financi4 answers:

Inflation. Bond yields are low (for a time of inflation &more likely) because bonds are a safe place during stock market stress. At some point, bondholders will not be satisfied with 4percent yields, with inflation at 9?percent. To get yield up to 9? Percent, bond prices will fall.
4 percent is about what 10yr. Treasuries are paying. There are higher yielding bonds, of course – with more risk. Same will happen to them, though – you’ll still get the yield you bought into, but new buyers will want higher yield. Yield up, price down – your bond holdings will lose value.
Buy bonds when inflation is fully priced into the yields – after the stock market loooks safe again

Thomas asks…

Is it good time to put money in mutual funds?

After playing in stock market for a month, I had fun doing it. Had some good and bad days. I realized that I do not wish to play in it any longer because I’d have to keep my eye on it each day which I did not find it very comforting. Now my question here is that with economy changes with Government spending cuts, how does that reflect on mutual funds investing in going forward?

financi4 answers:

Mutual funds are still an excellent choice for people who want to be in the stock market long term, and also diversified in a vehicle with low costs. It’s also ideal for those who don’t have all day to pour over financial and technical analysis all day. You can get far more diversification, especially those not investing huge amounts of money, than you can trying to pick individual stocks.

There are of course numerous selections with more conservative and more aggressive options; you could choose the Total Stock Market Index, or more specific funds like small or mid-cap, internationals like Emerging Markets, Europe or the Pacific, as well as industry specific like Energy, Health Care etc.

Of course where you invest is also extremely important.

Many places will hit you with high front end sales loads, ripoff 12b-1 fees and stiff expense ratios. That could rob you of potentially tens or even hundreds of thousands of dollars over your working career. If you want to see a demonstration of this, look at and compare.
Some of the best are Vanguard, T. Rowe Price, Fidelity, and Schwab. Avoid the big banks no matter what, and let some other sucker pay their high loads and fees.

Do some research, like read some good books like Mutual Funds for Dummies.

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Your Questions About Investing Money

Donald asks…

Is 21 too young to start investing money?

I will be 21 soon and I have $3000 that I would like to invest, is 21 too soon? My parents pay for college and I do not have a high car note or living expenses, would investing the money be a good idea?

financi4 answers:

The younger you are, the more you’ll benefit from compound interest. Compound interest results in exponential growth. $3,000 is a good start but what’s best is a regular monthly investment, then you can take advantage of dollar cost averaging. Finance books are also a good investment, try to read one a month. They tend to all have the same ideas phrased in different manners but the idea is to drill it into your head so that it all becomes second nature and automatic. You need to make financial awareness part of your daily life.

Michael asks…

I’m young but i’d like to start investing money?

I’m 20 yrs, and have been saving money for the past 2 yrs while im at school. However, I think investing might be a smart choice because i’d like to see some more growth. Whats something you would recommend someone my age do? Also im no fiance guro, just a regular kid
do you mean SAVINGS? Checking doesn’t generate growth

financi4 answers:

Just get a checking account.

Reply: I meant checking because you never know when you will need some of that money. If you put it in savings, some policies won’t let you take any of it out.

On second thought, CDs (Cash Deposits) are your best best. It’s a cash deposit for 1, 2, 3, 4, or 5 years (your choice) with a fixed interest rate.

George asks…

im looking to start investing money for retirement question.?

how much money should i put aside per month to retire in 20 years. what should i talk to my invester about investing in. any help would be appreciated. i live in mississippi and my income is approx 90,000/year.

financi4 answers:

Start by adding the maximum to your retirement plan at work. After you max that out, invest the maximum in a Roth IRA each year. If you still have extra investable money after that, put it into a non-qualified account. I would use mutual funds, but you could also go with an annuity in order to defer paying the taxes until you retire.

Good luck

Chris asks…

where can i find tutorials for basics of investing money?

i want to learn how to invest money in stock market. i have no idea about anything related to this field. but i really want to learn how to do this.

financi4 answers:

is the best website I have come across. Let me know if you find a good one. Good luck, and thank you!

Richard asks…

Is there a website for young adults that explains in a simple, yet detailed way how to begin investing money?

I know pretty much zero about investing, but I would like to start putting my money somewhere where I could eventually make a profit. I’m just beginning college, so I don’t want and can’t to invest lots of money.
I don’t know any investing vocab! I really need something that explains the very basic stuff.

financi4 answers: and
Two websites you can check out. Best way to start investing is to just by setting aside a small about each week or month i.e. 25.00/week and letting it set in a savings account until you find a certain investment you would like. Whatever you do make sure that the investment is something you are comfortable with. And whatever anyone tells you nothing will guarantee a return except goverment obligations such as government issued bongs and banks. OTher than that there is risk. However risk isn’t necessarily bad. Just research before you buy.

William asks…

what is the best way of investing money to show tax benefit and also good return?

what is the best way to invest money to tax benefit and good return. i will keep plan of investement for next 3 years. is there any best way to do….?

financi4 answers:

I just did an article on this. Copy & paste the link in address bar
ELSS or tax saving mutual funds are best for tax savings & returns. You can pick any 1 or 2 funds from the following list:
1. Canara Robeco Equity Tax Saver
2. Fidelity Tax Advantage
3. Franklin India Taxshield
4. HDFC Taxsaver
5. Magnum Taxgain
6. Sahara Tax Gain
7. Sundaram BNP Paribas Taxsaver

Thomas asks…

I am interested in finding realestate notes.what is the safest way to invest time without investing money?

Realestate notes and buyers are my interesed but i am tring to get my foot in the door without sending my money to one of those ‘CARLTON SHEETS” guys. Is there a way i can get into this profession without investing my money.Just my time?

financi4 answers:

Go to your local court house, research the real estate or “deed records for deeds of trust, mechanics liens, etc., pull the data off of the deeds of trust, ie., where the grantee or mortgagee is obviously not a lending institution, (owner financed notes), get the amount, terms, p/off, address, etc., to contact the holder of the note to negotiate a purchase….careful though…a venture is considered high risk if you do not know how to minimize and eliminate your risks..non performing notes are a joke

Daniel asks…

What books are good on the subject of personal finance and money , investing, buisiness etc?

fairly good or good, books on things to do with money, finance, buisiness, and investing?

financi4 answers:

Maybe this should be under investing, not real estate, but I’d reccommend “The Wealthy Barber”, “The Millionaire Next Door” or “The Richest Man in Babylon”. These are all classics (and much as you can have classics on general investing and savings principles) but they are not real estate related.

Ken asks…

I am 18 years old, and would like to start investing money…?

Hello. I have never really been interested in finances, but i am going to start doing a holiday job next year and i would like to invest some of the money i earn. Where do i start to learn more about investing money?

financi4 answers:

Just the title of this book should encourage you to get hold of a copy and read it:

“Rich Dad Poor Dad for Teens: The Secrets About Money–That You Don’t Learn in School!” by Robert Kiyosaki.

Amazon link, to see the cover, read the reviews that previous readers have posted, and to click above the cover photo where it says “Look inside” to take a sneak preview:

And to prove that you’re clever at saving money, call in to your local library or college library and get them to get you a copy to read for free ! 🙂 Why spend on buying a copy?

Seriously though, remember Yahoo Finance lets you pretend to trade stocks by keeping details in a portfolio, so you can “pretend trade” without risking real hard-earned cash but still learn. See the “My portfolios” tab at:

And see “Investing 101” in the left side bar at:

If you are competitive, and like to compete against other people investing with “pretend money”, then type in

“virtual stock exchange”

on Yahoo Search; or go to:

if you want to trade against UK college students.

For books on investing, there’s all sorts from the “Dummies” stable – see the range at:

and again, consider saving your money by browsing them in your local bookstore to see if you like the style, and borrowing them from libraries.

Any money from a holiday job isn’t going to make too much money as you’ll want it in a safe place like T-Bills or a high interest bank account – but watch that you can get access to the money easily.

Some places only pay higher interest rates if you promise not to ask for it back for, say, one to 5 years.

And with interest rates so low at the moment – from 0.5% to 4% – you’ll have to keep a $100 in there for a year to get $4 back – those are annual interest rates.

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Your Questions About Stocks And Bonds Game

Chris asks…

College student looking at investing?

I am a 22 year old college student looking at making some investments. To be honest, I have only ever taken one economics class in my life and it was a basic intro class where I really only learned a few terms that have since been forgotten and how to use Microsoft Excel. I am an engineering student so I can read and learn technical stuff pretty quick but I just don’t know where to start.

I have heard of different things such as a Roth IRA, Traditional IRA, 401(k), Mutual fund (loaded and unloaded I think), commodities, stocks, penny stocks, funds, CD’s, Bonds, and ETF’s. I have very limited knowledge to what any of this is or how to even start with any of them. I have been reading and reading and I do know that most peoples advise is to just read and read.

I can’t afford any professional advise and I can really only invest maybe $500 to start. I have a bank savings account which is really safe and backed by the FDIC but, it doesn’t earn hardly anything in interest and I really wouldn’t call it investing. If inflation goes up, then my money is pretty much worthless. Also, I have had to take money out of savings to make up for bills at times. It really is more like a buffer or emergency account. During the summer, I have a little extra money due to my job but during the school semesters, I am “bleeding chips”, in Poker terms.

So with that little bit of knowledge, what would be the best thing to do? People are advising me to start investing even though I don’t even have much money to begin with. I don’t really know what any of the above investments I should even consider, or whether they are considered gambling, which I don’t want to do at this point. Some risk is fine, but not like I am playing a game of craps or something.

Any advise is welcome. Links to websites to read stuff on would be awesome too. Even step by step stuff on how to get started. Thanks
There are certain commodities that I think are good investments and some that are not. From the little I know, Gold and Silver seems to be over hyped and can really fluctuate. If I would have bought gold or silver a few years ago when it was “low”, then it could be a good investment. The way I see it now, it is only a bet that gold will go higher in price. It is a HUGE gamble.

financi4 answers:

I would buy gold

John asks…

What is the best way to save money for my daughter?

My daughter is one. I want to start saving money now so that when she is older I am able to give her some money for something like college or to help her buy her first home.

But I am confused about how to do this for three reasons. First, I think paying for college yourself builds character and makes you feel more independent so I might actually be hurting her by paying for it myself. Same deal with helping her buy her first home. Second, I’m not sure what would be the best thing to save the money for would be. Should I save it for college? Should I save it to help her buy a home? Should I save it for a gift? Should I save it for bail money? Knowing what I am saving for will help me know how much I should save. Finally, I’m not sure what the best investment vehicle is. I know bonds are safe but yield less interest but I understand that there are also relatively safe stocks that have slightly higher interest than bonds. And ideally I would like to have the money in some kind of a thing where I can’t touch it. So 10 years from now I don’t gamble away my daughters money in a poker game.

What do I do?

financi4 answers:

Savings account, that way when she gets a little older you can roll her coins from her piggy bank up and take it to the bank and show her how to deposit it and show her how her bank book works. Of course you can add money to it at anytime yourself and possibly tell her you will match what she saves up to deposit each time. Also dont worry about what its for or when to quit or how much you need, bc all that really doesnt matter just keep on doing it as long as you possibly can for whatever comes up. Another good option is a cd, they have higher interest rates and you can lock it in for 5 or 10 years

Robert asks…

financial help needed?

I need $50,000.00 cause am currently tryna get into the jewelery game and start customizing jewelry especially watches like Hublot, breitlings & jacobs watches and i need some financial help of $50,000.00 and when I start coping me some millions am goin to invest in stock marketing bond & foreign exchange am interested in that also all I need is a start and am good. So if your interest in helping message me at or call 954-318-9706 8pm-12am and am look forward to move to new york to get in jewelery cause I gat some connection over there with Danny from Avianne & co & Big Rob The Jeweler from New Jesery I gat some connection all I need is a start.

financi4 answers:

The checks in the mail..ya right

Richard asks…

33) The nominal interest rate is always ________ than the real interest rate when inflation is positive. A) g?

33) The nominal interest rate is always ________ than the real interest rate when inflation is
A) greater
B) equal
C) less
D) equal or less

34) If the nominal interest rate is 5 percent and the rate of inflation is 1 percent, then the real
interest rate is:
A) 5 percent.
B) 4 percent.
C) 6 percent.
D) 5.5 percent.

35) If you want to purchase a new sports car in four years for $75,000, how much would you
need to have in your bank account now, so after four years you will have $75,000 to buy the car?
Assume your bank pays 6 percent interest.
A) $51,226
B) $59,408
C) $60,484
D) $70,755

36) At an interest rate of 4 percent, what would be the present value of receiving $4,000 four
years from now?
A) $3,420
B) $3,637
C) $3,704
D) $3,847

37) A rise in the interest rate:
A) decreases the opportunity cost of investing.
B) increases firms’ desires to invest.
C) increases the opportunity cost of investing.
D) none of the above

38) Retained earnings are corporate earnings that are not:
A) paid to owners in the form of dividends.
B) taxed by the government.
C) generated by higher government subsidies.
D) declared to the IRS.

39) Financial intermediaries have more expertise than individual investors in:
A) evaluating investment projects.
B) monitoring investment projects.
C) negotiating the terms of loans to be made to investors.
D) all of the above

40) Which of the following assets is the least liquid?
A) currency
B) checking accounts
C) stocks
D) real estate

41) Mike makes excellent cheesecake and Sue is very good at changing the oil in a car. Sue
agrees to change the oil in Mike’s car if he makes her a cheesecake. This is an example of:
A) legal tender.
B) barter.
C) commodity money.
D) fiat money.

42) Dena won $1,000 at a bingo game. She deposits her $1,000 winnings into a money market
fund so that she can use the money next year to pay for her tuition. This is an example of money
serving as a (an):
A) unit of account.
B) medium of exchange.
C) store of value.
D) investment good.

43) Which of the following assets is the largest component of M1?
A) currency
B) checking deposits
C) money market mutual funds
D) small time deposits

44) Third National Bank has $750 million in deposits. The required reserve ratio is 15%. Third
National Bank must keep ________ in reserves.
A) $150.5 million
B) $60.5 million
C) $112..5 million
D) $160.5 million

45) Suppose the required reserve ratio is 20%. A $5 million deposit allows commercial banks to
create a maximum total of ________ in deposits.
A) $25 million
B) $20 million
C) $10 million
D) $50 million

46) The Federal Reserve System:
A) is a private profit-making commercial banking system.
B) is different than the central bank of the United States.
C) implements fiscal policy.
D) includes 12 district federal reserve banks.

47) When you pay your groceries with money because the supermarket does not accept stocks
and certificates of deposits (CDs), then the reason why you are holding money is the:
A) transactions demand for money.
B) liquidity demand for money.
C) speculative demand for money.
D) All of the above are correct.

48) When inflation increases, the
A) demand for money increases.
B) the quantity demanded for money increases.
C) the demand for money decreases.
D) the quantity demanded for money decreases.

49) An open-market purchase of government bonds by the Fed results in ________ in bank
reserves and ________ in the supply of money.
A) an increase; a decrease
B) a decrease; a decrease
C) an increase; an increase
D) a decrease; an increase

50) Which of the following represents an action by the Federal Reserve that is designed to
increase the money supply?
A) a decrease in the required reserve ratio
B) an increase in the discount rate
C) a decrease in federal tax rates
D) selling government bonds in the open market

financi4 answers:


David asks…

What’s going to happen to America after March, 2006?

The Laboratoire Européen d’Anticipation Politique / Europe 2020 (LEAP), a European think tank with an impressive track record of predicting major world events, estimates there’s an “80% probability that the week of March 20-26, 2006 will be the beginning of the most significant political crisis the world has known since the Fall of the Iron Curtain in 1989, together with an economic and financial crisis of a scope comparable with that of the 1929 Stock Market Crash.”

March 20 is the date set for the opening of the Iran Oil Burse (IOB), an international exchange that will permit oil to be purchased in Euros. Currently, oil can only be purchased in dollars, a condition that has artificially inflated the value of the dollar on world currency markets.

Allowing oil to be purchased in Euros will have a strong negative impact on the dollar’s value, triggering what LEAP calls a 1929 like financial crisis as nations scramble to unload their dollar reserves and Treasury bonds in favor of Euros. (Currently 49% of America’s national debt is held by foreign countries, up from 18% in 1982.)

This could cause the USA to “monetarize” its debt (print enough extra dollars to cover it) flooding the world financial markets with what LEAP calls “monkey money.” It’s roughly equivalent to you or I writing a check to pay a debt, knowing we don’t have any money in our account, but on a much grander scale. When a nation does this, it creates an inflationary spiral that requires the printing of more money, causing more inflation, and could become a vicious game of musical chairs that soon leaves everyone standing.

The Federal Reserve has already announced that beginning March 23 it will stop publishing its regular report on the amount of US currency in circulation, called M3, so that no one will know just how many dollars are in play. Recent reports are already showing a significant increase in M3 leading experts to believe that the printing of monkey money has already begun. It’s known that new Federal Reserve chairman Bernanke favors this approach.

financi4 answers:

Chicken Little is exactly right.

Have you actually read the internet articles?

It starts with:

“its attempt to establish a world empire dominating every nation on the planet, the U.S. Has exhausted its ability to finance the expansion and the country now faces imminent financial collapse. From all indications, it looks like 2006 will spell the end for America.”

Was this article written from a Cabin in Montana, or a second story apartment in France?

Daniel asks…

stock market investing, investing options?

i know about Bonds, CDs, money market, property, the stock market. roughly speaking. my questions are more so of the who,what,when, where, and hows to invest. not such much the when because i want to start now, i know this is a game based off of ” When” but i would like my when to begin so preferably on my next min wage pay check so that should kind of put in perspective how much im working with. i live in spartanburg, sc so any advice on this situation would be great and im only 20 so i’m not afraid of high risk opportunities, simply put ive been throwing money away for a while. any good advice answering the who,what,when,where, why, and how would be great. thankyou. looking for both fast and slow growths as far as returns go.

financi4 answers:

If you take a look at what academia says, it’s not a matter of when but a matter of probabilities, value and risks. The Black Scholes equation has demonstrated how valuable probabilities are, portfolio balance has demonstrated the importance of risks and of course you always want a good price for the value. If you keep thinking it’s about when, you’re likely to paint yourself into a trap.

Ben Graham says that the ideal mix is 45% equity, 55% bonds. Claude Shannon at MIT demonstrated that between a random walk as a “stock” and cash, the optimal balance is always 50 / 50. Markowitz with his efficient frontier and tangential method typically lands you with an optimal balance just shy of 50% equity. So where does this be aggressive when young come from?

When you are young, you will hopefully be contributing something from each paycheck to your investments. This is in fact the same as holding a bond in your investments and you can even calculate the value of the bond if you have a suitable market rate of return. A suitable market rate of return may be your employer’s corporate bond yield as that includes the default risk of your employer in a risk premium. For example, if you are committed to depositing $466 a month at the end of the month for the next 40 years and you use 7% per annum as your market rate, you effectively have the equivalent of a bond worth $466 / 1.07^( 1 / 12 ) * ( 1 – 1 / 1.07^40 ) / ( 1 – 1 / 1.07^( 1 / 12 ) ) = $76,913.54 so you can in fact invest aggressively before reaching the 50 / 50 mark or whatever point you’ve determined as optimal.

Where does the statement “determine your risk tolerance” come from. There’s a battle between mathematicians, physicists and engineers who prefer to use a cardinal utility of wealth like the log utility of wealth to model risk with investments and economists like Samuelson who insist that wealh can not be a cardinal system but must be ordinal therefore risk can only be measured by human judgement. This latter view has been misinterpreted as a degree of personal risk tolerance which has served to sell investment products to people but has nothing to do with the success of your portfolio. Whether or not you are comfortable with the risk, excess risk can still wipe you out.

Donald asks…

Anyone know anything about investing?

Here is the problem.

You have just turned 16 years old and received more money for your birthday than any year in the past. Your parents convince you that instead of spending it on video games, you should invest it in an interest bearing account that will grow to an even larger sum of money. The suggest that you perform some research to find the best investment available so that the money will work to make the most money possible. Find at least two options for investing you $250 for a five year period and determine the value of your money at the end of five years. Represent each option using a table and a graph, and use an equation to help you explain the relationship between the two representations.

All the teacher said was to invest in something, like a savings account, savings bond, or stocks.
I have no idea what to do.

financi4 answers:

As I don’t know what country you live in I can only give you a generic answer.

First, look online or telephone your bank and ask for their interest rate on a savings account. Do they have an online account that pays more interest than the regular account? Does the bank have any other products, like a locked-in account which pays even more interest?

There are several types of bonds, government, corporate, Canada Savings Bonds, etc. Many bonds have a minimum amount that must be bought and that minimum is normally $5,000. Again, go to a bank in your area and ask to speak to an investment advisor. They may be able to suggest a bond in which you can invest. There are also mutual funds which are comprised of bonds but, again, you may be below the minimum.

If you open an online investing account, you may be able to buy a stock. So that you do not lose the money you have invested, choose a reputable stock that pays dividends. Again, you may fall under the minimum dollar requirement.

If you speak to the investment advisor at the bank where you have your money, they can give you information which will be helpful to you. They can give you a variety of ways that you can invest this amount of money. They will be happy to speak to you as they will see you as a current client and a future investor.

Mark asks…

What should a 17 year old girl ask for christmas?

For once, I don’t feel like asking for something that’s not going to benefit me in the future or the soul of my body, such as video games and electronics. I want the money to be well worth spent. now of course I’m not going to have my mother buy big appliances such as microwaves for university next year ha, simply because i haven’t got the room to store it all and that better, more efficient appliances will be out by next year.

I do plan on asking for some art related things, since that’s what I enjoy, so maybe if you have any interesting ideas there. and possibly some sort of homeopathic items as well, makeup that’s good for you, maybe a piercing gift certificate, these items can be put to everyday use. but other then that I have got a clue, do you? things that could benefit myself for the future and be used often instead of collecting dust? I also plan on teaching myself about the stock market and bonds. so perhaps the most well-known introductory book on that? Thank you for the help ~

Merissa x

financi4 answers:

You could consider asking for birthday money if you dont know what to get

Charles asks…

What to ask for christmas? 17 year old girl.?

For once, I don’t feel like asking for something that’s not going to benefit me in the future or the soul of my body, such as video games and electronics. I want the money to be well worth spent. now of course I’m not going to have my mother buy big appliances such as microwaves for university next year ha, simply because i haven’t got the room to store it all and that better, more efficient appliances will be out by next year.

I do plan on asking for some art related things, since thats what I enjoy, so maybe if you have any interesting ideas there. and possibly some sort of homeopathic items as well. but other then that I have got a clue, do you? things that could benefit myself for the better? I also plan on teaching myself about the stock market and bonds. so perhaps the most well-known introductory book on that? Thank you for the help ~

Merissa x
haha, rather funny ;P
My mother likes to get ahead of the ball and start early 🙂

financi4 answers:

Set treasure in heaven forever by asking for a Holy ROSARY AND A Holy Scapular.-Jesus Christ.
For all your dreams and wishes too come true and for greater glory and fullness of graces,explore and discover the many gifts of Apparitions that God has sent for your spiritual guidance,enjoyment,and enrichment for great will be your rewards and treasure stored in heaven and carry a Holy SCAPULAR on you always and you will be saved.
Pray the Holy Rosary for world peace and for all of Gods children too pray the Holy Rosary.
Here is a blessing and a our father prayed for you all,and Merry Christmas and happy New Year.

The Holy Family.

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Your Questions About Which Of The Following Is Not A Part Of Comprehensive Income

Chris asks…

Hi, I’m Jeffrey. I am supporting Obama for 2012, are you?

Obama has done great things even though many people try to downplay him and make him seem like a bad president. Nice try. Obama has:

1. Extended your medical coverage to age 26 under your parents plan.
2. Cut payroll taxes on average of $1500/yr. per family – your family included.
3. Prevented GM and Chrysler from bankruptcy, avoiding much deeper recession.
4. Helped bail out the financial sector preventing a global meltdown. Our safety nets are still intact.
5. Passed regulations on the banking industry to prevent future disasters. Your savings are safer.
6. Passed a stimulus package which stopped the hemorrhage of unemployed Americans.
7. Restored respect for American foreign policy, especially with our allies.
8. Withdrew American troops from Iraq. Your less likely to be drafted, blown up, or shot at.
9. Gave moral support to the Arab Spring movements promoting democracy. (see #7)
9. Kept ground forces out of Libya, Syria, Egypt, and Yemen. (see #7)

The following are just some other accomplishments of this president:
Commerce, Trade and Technology:
1. Promoted internet freedom as part of U.S. foreign policy.
2. Passed Webcaster Settlement Act of 2009.
3. Passed Satellite Television Extension Act of 2010.
4. Expanded loan programs for small businesses.
5. Passed Small Business Investment Act.
6. Proposed tougher meat industry antitrust rules.
7. Denied federal contracts to tax delinquents.
8. Appointed the nation’s first Chief Technology Officer.
9. Established Federal IT Dashboard. ref
10. Modernized the portal to connect people to the services they require.
11. Launched the National Export Initiative, with the goal of doubling US exports by 2015.
12. Launched piracy crackdown.
1. Passed The American Recovery and Reinvestment Act of 2009 (ARRA): a $789 billion economic stimulus plan.
2. Created US auto industry rescue plan saving GM and Chrysler and their employees.
3. Passed Worker, Homeownership, and Business Assistance Act of 2009.
4. Passed temporary extension of programs under the Small Business Act and the Small Business Investment Act of 1958.
5. Provided $26 billion aid to states package (Aug 2010)
6. Raised the small business investment limit to $250,000 through the end of 2009. ref
7. Created an Advanced Manufacturing Fund to invest in peer-reviewed manufacturing processes.
8. Passed Improper Payments Elimination and Recovery Act – establishes a Federal “Do Not Pay” list.
9. Extended and indexed the 2007 Alternative Minimum Tax patch.
10. Adopted Economic Substance tax doctrine.
11. Extended unemployment insurance benefits and temporarily suspend taxes on these benefits.
Education: College
1. Enacted largest reform of student aid in 40 years.
2. Passed Health Care and Education Affordability Reconciliation Act of 2010.
3. Established President’s Advisory Council on Financial Capability to assist in financial education for all Americans.
4. Increased funding for land-grant college.
5. Provided means for students struggling to make college loan payments to refinance.
6. Expanded Pell grants for low-income students. ref
7. Expanded Pell grant pool by eliminating private lender subsidies for student loans.
Education: Health of Children
1. Created the Race to the Top Fund ($4.35 billion) to reward States that create comprehensive education reform plans.
2. Passed Children’s Health Insurance Program Reauthorization Act of 2009.
3. Provided funding for high-speed, broadband Internet access to K-12 schools.
4. Established State Equalization Fund; new funds for school construction (ARRA).
5. Provided $77 Billion for reforms to to strengthen Elementary and Secondary education.
6. Fully funded the Community Development Block Grant (CDBG).
7. Provided $12.2 billion in new funding for the Individuals with Disabilities Act through the American Recovery and Reinvestment Act.
8. The $26 billion state aid package saved 160,000 teacher jobs (Aug 2010) ref
9. Provided over $2.3 billion in additional funding to Head Start and Early Head Start programs in 2009.
10. Provided $5 billion dollars for Early Learning Programs under the American Recovery and Reinvestment Act.
11. Roughly doubled the amount available in Federal Child Care Block Grants.
12. Established “Promise Neighborhood” Grants (modeled after the Harlem Children’s Zone).
13. Eliminated abstinence-only funding in budget.
14. Helped rebuild schools in New Orleans.
15. Established school programs to highlight space and science achievements.
16. Provided recruitment of math and science degree graduates to the teaching profession.

financi4 answers:

Jeffery, you’re the new poster child for why we need to fix the broken education system in this country.

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Your Questions About Invest In Gold Stock

George asks…

Questions about stock market if it crashes again like N 1929?

Curious to know how the rich stayed rich during the depression. (Did they pull out all their money before the crash?) Was the money worthless back then as I feel it will be this time around (Trillions in debt and inflation is going to kill the dollar).

Also if I invest in GOLD stock how do I collect if the stock market crashes and the second Great Depression hits? Gold would sky rocket but if our money isn’t worth the paper to print it on what good is collecting from gold stocks anyway?

How is Wachovia bank doing these days? Would they survive a collapse like the first depression? What banks will make it through a second depression? I understand Government doesn’t want to tell us this information to keep a panic from starting so I am researching myself.

I would like to use this example to get my point across. Let’s say the year is 1925 to 1927 (Just before the great depression) knowing what we know now what sort of advice would you give the average guy back then if you could travel in time for only 5 minutes and only warn 1 person? For example some people made it through just fine but how? What would you tell others back then to do just before the crash so that they were prepared and didn’t suffer?

I may be wrong but I see doom on the horizon and I would like to prepare myself for the worse case Scenario. You might call me crazy or tell me it will never happen and that is fine but I am curious what someone today should do (Financially ) if we knew the second depression was only months to a year away.

Of course pay off debt, stock up on food, barter etc… Just curious how I should move my money so when the dollar is worth 0 I still have currency to remain wealthy. I know people say to buy Gold and that is fine but that doesn’t stop people from knowing you have it and taking it. Let’s say we are 6 months into a depression and you are known for buying stuff with gold you will become marked as a target.

financi4 answers:

This is not like 1929. There was very little government debt back then. Back then some rirch people indeed did get cleaned out. Some did not. I expect that the same will hold true today. It would have made no difference if one could travel back for 5 minutes to tell one person at the end of 1927. During 1928 and 1929 the stock market made its largest gains. Also back then the average guy did not have a 401k or an IRA account. In fact the average guy was making about $15 a week. The average guy was not actually effected by the crash until the layoffs began. Then the fun began. What makes this one different is the mammoth amount of debt being piled up by everyone. People, governments, companies. You name it they are loaded with debt. This crash began when all of a sudden people realized they could not afford the McMansions they had signed on for thinking that they would be able in a years time to flip them for a tidy profit. They wound up flipping them all right, back to the bank that had no business loaning them the money in the first place.

In the worse case scenario, it appears that gold might be best. The only way out for this government is to devalue the currency. They have absolutely no hope of paying even a very small portion of their debt and they are getting ready to add another trillion in hopes of buying our way out. It will not work.

If you will notice, gold is about the only thing that has not lost 50% of its value. About every thing else has except government bonds. People seem to be buying them thinking that they are safe. Ha ha.

Michael asks…

Could a beginning investor start out at with investing in gold and silver stock – step by step?

financi4 answers:

First of all, awesome decision going with Scottrade. I’m a big an of Scottrade personally. Yes, you can totally start out as a beginning invest buying gold and silver stocks on Scottrade. There are two main options.

The first are exchange traded funds (ETFs). The two most popular have ticker symbols GLD and SLV. These basically track the price of gold and silver. Making your purchase is as simple as funding your account, understanding how much you want to allocate to each, and then setting a buy order to order the number of shares you can afford to purchase (you can either do this online, or by calling/visiting your local Scottrade office). If you have any questions at all, make sure to contact your Scottrade office – that’s what they’re there for.

The second option is buying shares in gold mining companies. This gets a little more difficult analysis-wise because you’re no longer just “buying the metal” but you’re buying a company that mines the metal. You’ll want to read some articles/books (such as The Motley Fool) to understand balance sheets, income statements, and the gold mining business. Once you’ve decided, you can then buy your stocks just like GLD and SLV. I really enjoy the ETFs and gold mining companies, but just advise you to do your research before buying any stock and consider starting with the ETFs because they’re a bit easier for beginners.

William asks…

Is it best to invest in gold ores right now in the stock market?

financi4 answers:

It might be. Most of these gold ores are valued at a lot lower rates than the current gold price. You need to find out what value the company is using. They tend to use a 3 year average, rather than keep changing their valuation with the gold price. I think most companies are using something like $650/oz.
You also need to know who is valueing the ores (is it JORC complient) and whether the resource is inferred,estimated or proven (these each have completely different valuations), what grades the ore is, how costly it is to extract and transport. Whether there is suitable space to process the ore etc.etc.

Daniel asks…

Under which kind of circumstances do gold stocks perform well?

I just started investing in the beginning of the year…I had a few people recommend gold stocks to me. Under which circumstances do gold stocks do well or bad in the stock market? Any of you guys invest in gold/silver? Thanks for your help!

financi4 answers:

I prefer ABX & AU stocks. They are too cheap compare with price of gold. Really cheap stocks. I have been loading up on ABX. It is amazing one. I am expecting 20% – 30% move up until year end, or at most early next year.
Gold will perform well when economy is struggling and when there are a lot of buyers.
Buyers will rush to gold, when central banks flood the market with money.
It may look complicated to understand, but lets take US central bank {FED} actions as example.
FED spend more than $2.66 trillion buying US government bonds in the past two years in order to stimulate the economy, that sent Gold price to all time high to around $1926 earlier this year.
Ever since gold has been falling. Why?? Because that amount of money did little to reduce unemployment PLUS the debt crisis in Europe is affecting the US economy.

So, what i am trying to say, investors will wait for more money from the FED. This is expected to happen late this year, or early half next year.

Paul asks…

How much money and I going to lose in the stock market tomorrow?

I’m heavily invested in gold miner stocks, which should shelter from some of the carnage but tomorrow should be more market wide pain.

With everything the way it is, whats going to happen in the market tomorrow? Particularly what will have so the Primary Metals -> Gold industry?

financi4 answers:

You could short the metals sector with this :
and if you are long other stock sectors, there are many other short funds to “hedge” your portofolio.

but with all the instability in the MiddleEast, Iran and North Korea… and most of the metals should gather support

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