Where to Invest Money in 2011

It’s time to decide where to invest money and where not to invest for 2011 and beyond. The flow of money and the investment tide could be changing, so you’ll want to invest money with your eyes wide open going forward. Here we look at safe investments, stock funds vs. bond funds and gold.

What does the flow of money and a changing tide have to do with where to invest in 2011 or 2012? Where money flows in – prices rise. Where it exits from prices fall. In recent years gold has soared to all time highs. In the stock funds vs. bond funds arena investors have flooded bond funds with money inflows of hundreds of billions of dollars as bond prices climbed. Stock funds watched money run for the exits. There had been a rising tide in gold and bond fund prices as 2011 approached the scene. This will change if investors decide to invest their money elsewhere.

Where to Invest Money in Save Investments

Safe investments pay interest, and very little of it these days. If you see a higher interest rate on what appears to be a bank CD, look twice before you invest money. Make sure it is federally insured by the government because there are misleading imitations out there. If you have money in a retirement plan at work or with a life insurance company, check to see if they offer a fixed or stable account option. These safe investments often pay the best rate around. Do not invest money in the average bond fund if you need high safety. For 2011 and 2012, these are not necessarily safe investments. Go with safe money market funds instead.

Where to Invest Money to Earn More Interest 

For almost 30 years as Interest Rates Fell, bond funds were the place millions of average investors put their money to earn higher interest income, with relative safety. With interest rates near record lows the risk of owning these funds now somewhat offsets the potential rewards. Rule #1 in regard to bond funds: when interest rates go up, fund prices (values) fall. Rule #2: long-term fund prices fall the most. Do not invest money in long-term funds unless you are willing to bet that interest rates will fall further in 2011-2012. Instead, go with a mix of short-term and intermediate-term funds.

Where to Invest Money for Growth and Income

In the stock funds vs. bond funds debate for 2011, stock funds are the favorite in the growth department. Bond funds are not growth investments. Frankly, I’d shy away from stock funds that invest your money in growth and smaller-company stocks that pay little or no income in the form of dividends. Instead go with general diversified stock funds that invest in large-cap company stocks that pay good dividends. It will be nice to have some dividend income in case the tide for stocks goes out. Consider putting some money in real estate stock funds for income and to add even more diversification to your portfolio.

In 2011 and 2012 the issue of where to invest money will likely focus on stock funds vs. bond funds. Gold is bound to be in the headlines as well. At over $1300 an ounce, gold has become a speculation. If you invest in gold keep one eye on the exits. The average investor needs to invest with a long-term strategy that includes both stock funds and bond funds. Go for dividends in the stock category and avoid long-term in the bond department. Invest money like the investment tide was ready to turn, because it could in 2011 if  interest rates rise.

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How To Become A Real Estate Wholesaler

In another article entitled "Is Real Estate Investing Good In This Economy?" I wrote about whether or not real estate investing was a good idea in this economy. If you read that article then you know that I follow Warren Buffet's stated philosophy of buying when everyone else is selling. That, in essence, is where we are today in this economy in early 2011. Now is the very best time to begin a new career in investing. The absolute best place to start is by wholesaling properties. Even though I explained what wholesaling is in a previous article, I'll briefly mention it here too. Negotiating a low enough deal with a seller to allow the property to be sold to an investor with a profit of at least $5000. You can easily do two or more of these each and every month.

To get started we must make a plan to find sellers and buyers. You will be using the 80/20 rule for both sellers and buyers. You will spend 80% of your marketing off-line and 20% on-line to find sellers. Conversely you will spend 80% of your marketing efforts on-line and 20% off-line for finding buyers.

You have to have a plan to follow or along the path you may lose focus and get diverted by every new method, or course or program you stumble across. I KNOW because it happened to me! You have to stick to your plan until you are successful. Then rinse and repeat. How and what do you plan? Your plan needs to be specific and list the dates and activities you will perform. To start developing your plan, you have to begin with what you expect to earn and then we can back into the plan from the numbers. I'll give you an example and then you can use it to plug-in your own numbers.

Let's say you want to earn $10,000 per month. The average deal happens to be $10,000 so that's one deal per month. Statistics show us that it takes 20 "qualified" leads to produce 1 deal. So that means that you need to attract (marketing) 20 "qualified" sellers each month. The breaks down to less than one per day. So to attract 1 "qualified" lead per day to your website, you will need to gauge your marketing efforts to product that level of activity. Direct mail is the preferred method of marketing and it produces about a 1% response rate.

Now you can start writing you marketing/action plan. When will you do you first mailing? Seven mailings to the same list (removing people who contact you as it happens) will be needed. Have your new phone line ready to accept the calls with you answering live not an answering machine. You must take the calls and talk with the owners to get a real feel for their "motivation" for selling. Honestly, you want people who have "given up" and just want out. You will probably waste your time (in the beginning) by indulging people who just want to see what you have to offer. Don't do it!

After you complete you plan that should cover the first 6 months you begin with day one. Stay focused and concentrate on what you need to do and get it done. Check off items when you complete them - it will give you a real sense of accomplishment to do this. Here are some tips to help you along the way:

Your mailer should be a specific color postcard with specific words targeted to your potential sellers. My recommended target market is absentee landlords who have owned their property for at least 10 years. You can buy these lists online. I can give you that information, along with the post card colors and wording if you would like to partner with me to help you get your first few deals.

You need to use a formula to determine the maximum off you are willing to make for any particular property. The formula starts with the market value if it was all fixed up with no repairs or fixing to perform. The current market value of the property must also be computed. This is another area where you will need to either subscribe to some internet sites to have access to the local MLS (Realtors only) or I can help with this too.

The formula is the current market value - less needed repairs - less buy, sell & holding costs - less your profit of $10,000 - less the retail profit (for your end buyer) of at least $25,000. The result is the MOP - the Maximum Offer Price. You will never allow yourself to offer more than this amount. I said never!

Finding buyers is a parallel activity that starts at the same time you start your planning. Without buyers, you have no business. Your buyers list is your gold. In the beginning, you can pay to use other investor's buyers lists or you can wait until your's builds up. To build your buyers list you must market to them. 80% of your efforts should be on-line as previously mentioned. The on-line marketing is a bit unique. I'll give you a brief overview.

You will have a webpage called a squeeze page. You will drive "traffic" to your squeeze page using various traffic building techniques. The squeeze page will get their name and email address and automatically put them into your buyers list with your auto-responder service. If you don't know what this is, don't worry it's nothing technical and only runs about $19 a month. The auto-responder will auto-magically send a thank you email to everyone that joins your buyers list. You will also schedule other auto-sending emails over time to keep in touch between sending property blasts to your buyers.

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How to Boost Your Investment Return

If your investment returns are not satisfying enough, making smart use of leverage is worth a consideration. There are several reasons why using leverage can be a solution to yield higher returns:

• You believe in your strategy but have little money available
• Less money is tied up, allowing participation in more markets

The most liquid solution to gain exposure in the S&P 500 is the E-mini futures contract. It has a multiplier of 50, which means that the market value of one contract is 50 times the current price (currently 1160 x 50 = 58,000). If the S&P 500 rises or falls by 10 points, you would gain or lose $500 with just one futures contract. Obviously, they are not the outright ideal solution for every investor due to its size.

 

 

Therefore, leveraged ETFs are appealing and often very liquid. A double leveraged ETF for the S&P 500 is ticker symbol SSO (its inverse is SDS). When trading ETFs on U.S. stock exchanges, the Pattern Day Trader rules apply, preventing more than 3 day trades (opening and closing within the same day) in 5 business days.

If you are living outside the U.S., you might be aware of CFDs (short for "Contract for Difference"). They behave very similarly to futures, but can be day traded at will and are subject to a market maker. One CFD on the S&P 500 costs a mere $1,160 at current price levels. So if you want to have leverage with a small account in combination with day trading ability, looking for a CFD broker is an idea. Do know that using leverage generally comes with higher risks.

Trend Architect provides a subscription-based trend following system which combines the best of the investing and trading worlds. Its trading signals allow you to follow trends lasting weeks to months but still apply very strict risk management.

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Green Investing For Profit And Good

Your money can be used to make powerful statements when you choose how and where to spend it. Manufacturers and producers of goods are constantly reacting to changes in the marketplace of which you are a major part.

The same principle applies in banking,savings and investing. As more people choose green or ethical financial products, a message is being sent to the entire industry about the importance of these products, and that there are growing number of options from banks that are conscious of supplies or work environments, to credit cards that offer carbon offsets to green mutual funds that invest only in environmentally responsible companies.
There are two elements that you can consider when it comes to green investing.Whether you do online investing or deposit funds into your account, your money does not sit passively. It is lent to other people,businesses or places at interest rates that are profitable to the institution. A financial institution that's concerned with the environment and with social issues such as poverty or homelessness should also place a strong emphasis on environmental investing.

There can be much analysis over what actually constitutes a green investment. Green investing, like any other form of investing requires that you do some research or due diligence. When you look at how your finances can help the planet,start with your checking or savings account. Some financial institutions have realized that their clients are becoming more aware of the benefits of financial investing, so more accounts that are linked to environmental investing which is growing in popularity.

Green Investing options
Some simple to tips to initiate your ethical investing strategies is to begin with your financial institution. Low cost online investing should be available to reduce the use of paper, saving you both time and money in transportation costs. You should have the option to purchase checks made with recycled paper. Altruistically, you donate a set amount or part of the interest to a green cause. The funds in your savings account can be used to funds loan to alternative energy or clean energy projects. A sign that your institution is involved with environmental or conservation groups in order to help protect the environment may have some significance. Ensure that your account's specific eco-friendly ethical or sustainable features and in tune with your philosophy.

You may decide that it not enough to have a green account, and you want to do more by ensuring that your financial institution embraces green and ethical investing in every facet of it's operation. The first place to begin is by speaking to your current financial institutions about its practices. Find out the types of customers to whom they lend funds The institution should be a member of the Social Investment Forum, which is an organization that focuses on socially and environmentally responsible investing. The financial report should have some information on its environmental or social investing activities. Some funds should be annually donated to social or environmental nonprofit organizations.

There more green businesses that devote some part of their operations to being socially responsible
Your green investing can begin by investing directly in companies with strong corporate social responsibility or in green mutual funds or alternative energy mutual funds. When investing directly, you can choose companies that are developing solar or wind power or are encouraging alternative energy technologies. The company should also follow a principled code of ethics that should be reflected in the manner in which they operate.

Green mutual funds were previously disregarded with a reputation for lower financial returns, however many ethically or socially responsible funds such as alternative energy mutual funds now provide consistent and healthy returns annually as concerns for the well being of the environment continues to develop.Your money can have a positive impact on both your financial health and that of the environment.

Going green is now among the latest buzzwords added to the lexicon, however the reality is that business are realisizing that there are benefits from adopting green business or environmentally friendly practices. You can also benefit from green investing by finding out more of the activities of businesses going green visit

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How a Dying Wish Became a Best-Selling Investment Guide

A shot to beat the buzzer, a walk-off home run...the most memorable winning moments often come at these final stages of a game, with the clock running down and your back against the wall.  Seldom does real life offer these same opportunities to make an indelible mark while staring death in the face. But for Gordon Murray, a former Wall Street investment banker, that's exactly what happened.

Murray died on January 15 at the age of 60 from glioblastoma, a type of brain cancer.  Fortunately, several months before he died he was able to accomplish his dream, to write and publish an investment guide for individual investors.  "He really wanted these ideas in a book and to get it out in the hands of a lot of individual investors," says co-author Dan Goldie. "That was his dream."

After years of putting it off, Goldie pushed Murray to work on "The Investment Answer" last year, after Murray decided to cease his cancer treatments. "The book was actually his last project," Goldie tells Aaron Task in the accompanying clip.

Murray and Goldie began their working relationship in 2001 after Murray retired and was looking for someone to help manage his money. The mix of common sense and contrarian principles Goldie taught Murray became the basis for the book.

"The Investment Answer" is broken down into five main principles:
1. Hire a fee-only, independent financial advisor, not a broker who is compensated for selling you company products.  This is an issue both Goldie and Murray felt strongly about.  "[Murray] didn't care for the retail side of Wall Street; he felt that was the side of Wall Street that was really hurting people," Goldie says. "This book was his attempt to try to educate people and help level the playing field."

2. Diversify among stocks and bonds, buying both large and small caps and value and growth.

3. Divide foreign and domestic investments.

4. Decide if you want to own passive or actively managed mutual funds.  Goldie and Murray both encourage passive investing. "Over time a passive strategy on average will outperform an active strategy," says Goldie.  This concept was hard, even for Goldie, to understand at first.  "I was brought up under the idea that if you worked harder and you were smarter and better, you would perform better. But it doesn't hold with investing."

5. Rebalance your portfolio.
Goldie continues to work as an independent financial advisor and promote his friend's dying wish. 

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3 Tips For Getting the Best Investing Trading Software

There are a number of worthwhile investing trading software options on the market today for traders looking to trade ahead of the curve with smart stock picks. This technology anticipates market behavior and notifies you of the pick before it goes on its trend so that you're in a position to trade accordingly and before that stock blows up.

It's been my experience that there are several poor programs out there likely just looking to capitalize on the success of the programs which do work, so with the intent being of separating fact from fiction, use these 3 tips for getting the best investing trading software and trading smarter in the stock market without the experience necessary on your part.

1 - Look for a money back guarantee on the software you go with. More than just a sign of good faith on the end of the publisher, this enables you to test the program firsthand and risk free, receiving however many stock picks it generates in the money back guarantee period and gauging their performances accordingly. I recommend this if you are ultimately on the fence about any investing trading software given the ease and brevity of the entire process.

2 - Some investing trading software is penny stock specific, meaning that if you get a profitable pick then it will likely appreciate far more than a greater priced pick would because it takes much less trading influence to send a cheap stock spiking in value. The key is to make sure it's specifically and exclusively penny stock focused software because it's a different animal anticipating cheap stock behavior versus greater valued stocks.

3 - Lastly, rely on user review sites when possible for learning things about the investing trading software you're looking at. It sounds obvious, but oftentimes you'll learn things which you wouldn't from the publisher themselves.

Even if you're fresh off the boat when it comes to stock investing or you don't have the time to devote to it, if you're ready to realize your financial independence I highly suggest you give the best investing trading software out there a chance.

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25 Investment Terms You Need To Know

So you like the idea of investing huh?

Think it is a great way for a kid to make some extra cash? Well... it is, but before you dive into the world of investing I think you should learn these basic investing terms. Once you learn these terms you'll be all set to tackle any beginner investing book I throw at you. Alright, enough anticipation here is the list...

Actively Managed Fund 

- An investment run by a manager who buys and sells investments at will in an attempt to beat the market. A percentage of your investment capital goes to pay the manager, other advisors and brokerage commissions.

Asset

 - Any item that is likely to rise in price (appreciate) and can be easily sold for cash (liquidated).

Bear Market 

- Referring to a market or market sector when stock prices fall for a significant period of time.

Blue-chip 

- A large national/international companies stock, with a history of consistent growth.

Bond 

- Issued to investors in order to raise capital for businesses and government. By lending money to these groups you recieve interest over a fixed period of time, once a bond matures you receive the money you originally invested in the group. Bonds are the first security to be paid if a company is liquidated.

Broker 

- A person or business who acts as a "middleman" between buyers and sellers of stock. Brokers charge a fee (commission) for every purchase or sell of a stock (transaction).

Bull Market 

- The opposite of a bear market. Referring to a market or market sector when stock prices rise for a significant period of time.

Capital 

- Money used to generate a income, start up costs for businesses are paid for with capital. Money used to by securities is also capital.

Diversification 

- Splitting up capital into several different asset classes, such as small cap, large cap, international etc. and even between different investments like commodities, real estate, options, bonds, forex etc.(don't worry if you don't know all of these yet, I'll discuss them at a later date)

Dividend 

- Payed out by companies to its share holders, most commonly in the form of cash. Companies are not required to pay out dividends.

Index Fund 

- A passively managed fund, that tracks a specific index such as, DJIA, or S&P 500. More earnings are paid out than a normal mutual fund because less transactions occur.

Inflation 

- The rise in price of all items and services, resulting in the decrease of the purchasing power of the dollar

Load Fund 

- A fund that charges an additional fee to the purchase or sale.

Mutual Fund 

- A fund offered by a company who will use the money from sales of the fund shares to buy investments. Mutual funds have a minimum investment.

No-Load Fund 

- Opposite of a load, a fund that charges no additional fee to the purchase or sale

Passively Managed Fund 

- See Index Fund.

Portfolio 

- A collection of investments owned by a person, business or any other institution.

Preferred Stock 

- Similar to common stock (which is generally what people are talking about when they say "Stock") since it is also partial ownership in a company. Preferred stock owners do not have voting rights that common stock owners do, but if a company is liquidated preferred stock owners are paid after bond owners but before common stock owners. Preferred stocks pay out fixed dividends.

Profit 

- Price you sold a stock for minus the cost to buy.

Security 

- Evidence of ownership in an investment vehicle, generally used in reference to the investment itself all though technically incorrect.

Speculation 

- Buying extremely risky and volatile investments with above average growth potential.

Split 

- Increasing the total number of shares of stock at a certain ratio, prices are cut at same ratio. If you own 10 shares if Sony and they split 2:1 you will own 20 shares each with half the price.

Stock 

- Partial ownership of a company, by buying stock you own a piece of that company.

Ticker Symbol 

- A group of letters that stand for a certain stock. Ticker symbols are shorter and also more convenient.

Volatility 

- A measure of how a stock moves compared to a bench mark. The higher the volatility the more risky an investment is.

(Dividend) Yield 

- The percentage of dividends paid compared to the price of a security. Found by adding all four quarter's dividends and dividing by the price.

This isn't everything you need to know, but it is certainly enough to get you started. I suggest knowing these words by heart even if that means putting them on flash cards.

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The Mauritius Island - An Investment Paradise

The Mauritius Island is 800 km's off the coast of Madagascar that has become famous for its long sparkling beaches and booming tourist industry. Although it only has an area of about 1,865 km's, it is packed with beauty, extravagance and the Capital City, Port Louis, has a skyline and infrastructure that could compete with many major cities.

The highly developed tourism industry has created quite a diversity of recreational activities in Mauritius. Water sports are quite popular because of the coral reef that surrounds the island, providing plenty of relatively shallow and calm water. Deep sea fishing, surfing, windsurfing, water-skiing, cruising in yachts and even submarines are some of the many water based recreations available on the island and Tamarin Bay is one of the world's most famous surfing spots.

Mauritius has a very cross-cultured society, with natives descending from India, Central Africa, France and China. This then fused into colorful cultures and cuisines. It is common for a combination of Indian, Creole, Chinese and European influences to form part of the same meal, which makes for an exciting cultural experience.

Political and economic stability, along with a very friendly foreign tax system has made this island an extremely attractive location for offshore investors. Mauritius has attracted more than 9,000 offshore entities, with many aimed at commerce in India and South Africa, while investment in the banking sector alone has reached over $1 billion.

Whether your interest is business or pleasure, the Mauritius Island is more than capable of servicing your needs.

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