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Thinking About An Investment Retirement Account?…

Thinking About An Investment Retirement Account?…

An investment retirement account is a retirement fund, which not only allows people to save for the future but also do business with the money that they put aside. In effect, investment accounts allow people to earn and save more for retirement. This is because the money is put into business, and in effect the capital increases in value. In the past, there have been many kinds of investment accounts, and many more emerge for use today. Because of this, employees have a wide range of choices for investing.

One most commonly used investment account is the 401(k) account. This account is an employer-sponsored fund. This means that regardless of the employee’s own contributions, an employer may finance this fund for the employee’s retirement. This account, however, poses no obligation on both employer and employee. As such, payments and contributions may be made by either one.

The value of the contributions also varies on case-to-case basis. The employee, for example may choose to set aside a certain percentage of his regular income to be deducted as contribution to the fund. Likewise, the employer can contribute any amount to the fund. The most common practice, however, is that the employer matches the contribution of the employee. Because of this, the investment capital of the employee automatically doubles in value for free.

Although the account is an investment in itself, the only proceeds to be expected if the account stays put is the interest the money makes. However, with 401(k) accounts, the money not only earns interest from saving, but also increases in value because of the business options included. 401(k) plans usually include 15-20 options to choose from, making it a very versatile investment. These options usually include investment in bonds and stocks. What’s more, employees have the authority to direct how the investments go so the limit to which the money grows simply depends on how good the options are.

Being part of a larger fund, the money in these plans is invested collectively. This means that the employees are not required to handle the transactions personally. A 3rd party handler usually does all the transactions together, and reports with the results when after each business period. The employees only offer capital, which returns to them in full with earnings. Because the reports arrive periodically, employees can always reconsider their options and choose new ones for future investments.

Investment accounts not only allow you to save funds for the future but earn more along the way. Even if retirement is still far away, you have to consider that you won’t be working forever. Retirement means that you won’t be receiving the regular compensation you enjoy in the present so it means that you have to find other sources of income. Investment accounts help you do just that. A 401(k) plan is only one of them. If you wish to enjoy more distributions in the future, then you have to put more money aside as well. Always remember that the value of money continues to decline. As such, the money you put aside now may probably weigh very little in the future.

Author: Gerald Aubin
Website: http://www.ira-contributions.com

You Can Retire Rich…

You Can Retire Rich…

Claims that you can retire rich seem farfetched to some folks, especially those working what some perceive to be dead end, blue collar type jobs. Even then, these folks usually walk away with a pension that is quite good, almost good enough to help them maintain their current way of life upon retirement. Even if you do not make a lot of money, you can effectively retire rich if you start now and maintain the course. Read and we’ll explore some ways you can build and manage wealth now so that you can live as prince not a pauper upon retirement.

Fifty thousand a year doesn’t sound like a lot of money for many people, but it can be a sufficient amount of income if you live in areas where housing is much more reasonable and taxes are not all consuming. Areas of the USA that are particularly affordable include much of the Southeast and Midwest with many metropolitan areas in these areas featuring homes that still sell for about $100,000.

Wealth building is a long term strategy that must be followed over the years in order to not only create a comfortable retirement, but a lucrative one at that. This can include:

Fully funding your pension or 401(k) plan. With most companies now offering a 401(k) plan instead of the traditional retirement choice, every worker should not only be participating, but maximizing its benefits. If there is a company match involved, let’s say for every dollar you throw in your company contributes fifty cents, then you would be wise to maximize this match. Where else can you get a 50% return on your money? No where!

Getting an IRA. Even with a retirement plan in place, you can open up an IRA and contribute to that. If you are married, your spouse can contribute to his or her own account. Best of all, just like a 401(k) plan, your funds are not taxed until they are withdrawn. Conceivably, if you fully fund your pension and your IRA you can be put in a much cheaper tax bracket too. What a terrific wealth building advantage!

Your Home. Your home when it is paid off can be a significant part of your wealth upon retirement. In some areas of the country, home values have risen so fast that owners are sitting on a goldmine with their homes alone. Sell your home and retire in a less expensive area of the country and you’ve instantly created big wealth.

Together, all three options can create a rich retirement. Stay the course and you too can have a life outside of work that is rich and truly rewarding.

Author: Adam Heist
Website: http://allhomelender.co.uk

A Brief Guide to Mutual Funds…

A Brief Guide to Mutual Funds…

A mutual fund is a joint stock that is managed for and by the investors who buy into the fund. Such mutual funds allow the investors to benefit from a diversified investment portfolio, without him/her having to actually invest a large sum of money.

A diversified investment portfolio has many advantages. For starters, it protects the investor against rapid market losses if any one particular stock plummets downwards. Consider an investor who has as many as twenty stocks. In such a case, if one of the stocks loses its value, then the loss would be just of one stock among many. Hence the total value of the loss is felt less.

Though diversification of portfolio is a very good investment idea, it is not always possible for small investors to put in so much money. This is where mutual funds help such investors to get the benefits of a diverse portfolio with only a small investment.

Mutual funds do include stocks, but in addition they can also contain other kinds of holdings such as bonds and market instruments. In the real sense of the term, mutual funds are a company and people who are investing in mutual funds are in a way buying the shares of that company. Such shares are directly bought from the fund or by brokers who are acting for that fund. When the mutual bonds are sold back to the fund, the shares are redeemed.

Investment professionals who decide the type of securities to include in the fund generally manage such funds. These funds are rated by an index such as the Dow Jones Industrial Average. The mutual bonds simply duplicate the fluctuations on these holdings.

Mutual funds carry their risks. Investors are needed to pay some charges irrespective of the manner in which the fund performs. The investor would also not have any consensus in what kinds of securities are included in the fund. There is no accuracy about the actual value of the mutual fund share, as is present in the stock market.

However, the plus points are that mutual funds could be the best investment plans for the small investors, who might not have the capital to invest in stocks or bonds. Mutual funds provide a buffer effect in case some stocks lose, by creating a diverse portfolio. But, it is necessary to point out and understand that mutual funds would also lose their value over time. Hence it is more advisable to go in for a short term investment so that there is a rate of return.

The three types of mutual funds prevalent in the investment market are the money market funds, bond funds and the stock funds. Out of these the money market funds are the safest as they contain purely of high quality investments issued by the US government itself and by the blue chip corporations. However, the downside to them is that they pay a low rate of return.

Bond funds carry risks associated with companies going bankrupt and falling interest rates. For this reason, they also pay better as investments.

Stock funds are the riskiest. Short-term investors could feel the brunt more than long-term investors. But the investment is most profitable with stock funds, so much so, that such funds have generally outperformed all other kinds of investments over long periods of time.

Growth funds are a type of stock funds. These can maximize the capital gain and income funds that focus only on stocks and perform regularly by paying dividends.

In short, mutual funds could be wise investments only if people have a fair deal of experience with investments. It does not matter if the investment is small, but it is necessary to choose the right kind of fund. This enables the investor to calculate how much risk he/she is willing to take with the investment.

Author: Adam Heist
Website: http://allhomelender.co.uk

Why More Investors Choose Forex Trades…

Why More Investors Choose Forex Trades…

As more investors grow dissatisfied with the performance of the domestic stock markets, they are beginning to explore some options for international investments. While there are a number of opportunities to get involved in foreign markets, foreign exchange trading is quickly becoming one of the most popular. Investors like forex trades because they are made quickly and with minimal hassle. There are several definable benefits to foreign exchange trading.

The first benefit is that forex is liquid. In fact, forex is the most easily sold form of investment in the world. Since you are dealing with cash, forex trades are never on the block for long. There is always someone, or some bank, willing to make a trade. This liquidity is what makes trading forex so appealing to many. Even in falling markets, you have the ability to sell whenever you are ready.

Another benefit of foreign exchange trading is that forex trades are available 24 hours a day. Since the medium is the world’s currencies, the market must be open 24 hours a day since banks in different time zones are always open. The development of internet technology has opened up a world where trading can happen instantaneously at any time of day. Since many forex traders work full time jobs during the day, the ability to sit at home and make trades in the evening, even after their own nation’s markets have closed, is very important.

Some foreign exchange traders like this platform because forex trades rarely charge any commission fees. When trading regular stocks and even some futures, the investor’s profits take a substantial hit from the commission based fee structure in which the brokerage firm gets a percentage of every trade made. With online forex trading though, these commissions are not applicable as you are making the trades yourself. It may seem like small change, but over the course of a year, many forex traders find that they have increased their portfolio substantially because they are able to invest the money that normally would have gone to commission fees.

Investors who limit their portfolios to domestic common stock often find that their trading activity must come to a halt in a declining market. You may hear them talk of “riding out the storm.” For those who make forex trades however, the normal rise and fall of the world’s economies does not affect the nature of the trading. Forex trades depend only on the exchange rate. The actual value of the currency doesn’t matter. For this reason, you will see that foreign exchange trading remains active even when trade volumes of common stock are very low.

Author: Lorna Goldsborough
Website: http://www.forextradingexplained.co.uk

Welcome To The World of Forex Trading…

Welcome To The World of Forex Trading…

In order to develop a full understanding of forex trading and why it is even possible, you need to understand a little bit about the history of money. In early human societies, goods were traded for goods. If you had anything that was of value to someone else, then you had currency. While this system worked reasonably well for thousands of years, there were also some obvious drawbacks.

As communities began to grow and trade with each other, they found that it was hard to place a determinate value on each good. It also became apparent that more than one party needed to be involved in some trades to make them profitable and beneficial for each party. The modern system of money, and eventually forex trading, was born out of the answer to this problem.

The ability to equate value with an object that was otherwise useless was the first real step towards developing currency. If you think about it, the $20 piece of paper in your pocket has no inherent value; it’s only valuable because the government says that it is. That was the challenge that these early cultures faced. How to determine what had value, and how much value, was a question that took many generations of development to work out. At the heart of forex trading are the solutions that they developed.

Forex trading involves the exchange of two base currencies. Anyone can do this. The point of trading foreign exchange currency is to make money though, so it must be done with some planning. The ability to predict the world economy and realize that at some point in the future, the value of the foreign currency that you just traded for must go up is what separates good investors from those who go broke.

Forex trading involves a cross. The cross is formed by the two currencies being traded. There are a few currencies that are considered majors. These are the largest players on the world stage and make up the majority of crosses traded. A few examples of majors are the U.S. Dollar, the Euro, and the Yen. Each of these currencies, and the economies that they represent, set the stage for and the value of the rest of the world’s currencies.

Finding a stable standard of value is what makes forex trading profitable. If one nation were to decide suddenly that their currency held no value, then the market would collapse around it. Perhaps this is why the six nations that make up the majors are the most widely traded. Their economies have proven to be stable and the value of their currency is strong. People have agreed that currency is worth something and in fact, worth having. That is the basic operating principle of finance and it is the driving force behind what make foreign exchange trading profitable.

Author: Lorna Goldsborough
Website: http://www.forextradingexplained.co.uk

The ABCs of Tax Lien Investing…

The ABCs of Tax Lien Investing…

Are you interested in yields of 6 percent to 50 percent on your money, secured by a property tax lien against real estate?

Author Joel S. Moskowitz explains how investors can buy little known tax lien certificates that pay high yields in his book, “The 16 Percent Solution”

As a bonus, although the author warns it rarely happens, the investor might get kicky and foreclose on the property. However, he cautions that property owners usually redeem, so investors must be content with just high yields.

What is a tax lien certificate?

When a real estate owner does not pay their property taxes, 27 states and 1,152 cities and counties sell tax lien certificates to investors. The government gets its property tax money immediately. The investor buys a tax lien, which is then secured by the real estate.

Tax lien certificate yields vary according to state law. Arizona’s top rate is 16 percent, Florida pays as much as 18 percent, but in Michigan, the rate goes up to 50 percent in the second year. If the property owner doesn’t redeem the property from the investor by paying the back taxes plus the high interest rate, the investor gets the title and possession of the property.

New investors can start small, perhaps investing a few hundred or a few thousand dollars, and then buy more tax lien certificates later. Although not all states are smart enough to offer tax certificates to speed up tax collections, after reading this book, they’ll learn why they should.

At the time of writing, States currently offering tax certificates include Alabama, Arizona, Colorado, Florida, Georgia, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maryland, Massachusetts, Michigan, Mississippi Missouri, Nebraska, New Hampshire, New Jersey, New^ York, North Dakota, Oklahoma, Rhode Island, South Carolina, South Dakota, Vermont, West Virginia and Wyoming.

The book’s outstanding appendix lists the interest rates and state-by-state procedures. For real estate investors who want to earn high yields without physically managing property, this new book shows how to do so. It also explains the few pitfalls to avoid and how to buy die best certificates with the highest profit opportunities.

On my scale of one to 10, this excellent book rates a solid 10.

For further information about tax lien investing, see http://www.mikestaxlientips.com

Author: Mike Spencer
Website: http://www.mikestaxlientips.com

What Happens When Stocks Split…

What Happens When Stocks Split…

Stock splitting is one of the best things that can happen to an investor. When a stock splits, then the stockholders would receive twice as many shares as before. Though the volume of the shares would almost double, the value of each share would be reduced. Supposing a company splits its stock two-for-one, i.e. it issues one new share on each existing one, then the value of each share would be reduced to half. Thus the number of shares would become twice as before, but the total value would remain unchanged. It’s something like getting two five-dollar bills in place of a single ten-dollar bill. The value would remain the same, but the bulk of paper would become twofold.

Sometimes an investor may feel a stock to be quite beyond his/her reach due to the high price per share of the stock. But when the stock splits, then the reduced value becomes much more affordable to the smaller investors. A $100 share could seem to be too much to invest in, but if it is split two-way, then the $50 stock would seem to be more affordable. This is the reason why companies go ahead and split their stocks. It plays favorably on the psychologies of their investors and they build on more capital.

There are a number of ways in which companies split their stocks. The most common ones are two-for-one, three-for-two and three-for-one. There can also be a reverse splitting of the stocks; i.e. reducing the number of outstanding shares so that each company has fewer shares than before. Such reverse splitting is very uncommon, but it may be used if the company feels that the price per share is so low that it reflects as a bad investment to their investors. A very low share value could also entail delisting from the stock exchange, or it may simply be a way of the company to go private.

Due to the lower prices, the companies build up more liquidity by splitting their stocks. Lower prices mean more possibility of selling the stocks since the investors could place them better within their budgets to buy them. However, high share prices could be intimidating to the investors.

One more advantage of stock splitting is that it is perceived as an indicator of a bullish market. If the stock prices are increasing, it might mean that the company is doing well financially. The rally around the stock could last for a short time after the splitting, but generally it pulls itself back to normal quite fast.

But a stock splitting could also cause the investors to raise their hopes about the company’s potentials. Therefore the company would need to live up to the standards the investors have come to expect, or they risk losing investor confidence.

In conclusion, we can say that a stock split does nothing to improve or worsen the performance of the company. It may look like a great deal of shares considering sheer bulk, but there is no change to the face value of it all.

Author: Adam Heist
Website: http://allhomelender.co.uk

Saving With a SEP IRA Retirement Fund…

Saving With a SEP IRA Retirement Fund…

When planning for retirement, one option for some people is the SEP IRA. The SEP IRA stands for simplified Employee Pension Individual Retirement Account. This is a special type a retirement plan designed for small business and the self-employed. It was designed by the government to be a simple and easy retirement plan to set up and administer. Is not merely as complicated and has far fewer rules that retirement plans like the Keogh plan or a 401(k) plan. For a small business, and players can’t match the contributions other employees funds by as much as 25%. Self-employed people haven’t even greater advantage. They can’t contribute a much greater amount. It is based on the net profit of the business.

Simpler Rules For The Sep IRA

Since the rules governing the SEP IRA are much less stringent, small-business owners can establish simpler requirements that standard IRS regulations is needed. The eligibility requirements established by the Internal Revenue Service for an employee to contribute to an IRA must be at least 21 years of age, worked for the employer for a least three of the past five years, and have earned a minimum of $450 in wages. The rules for withdrawals are quite simple as well. An employee, once he or she reaches age 70 1/2 should begin to withdraw from other IRA account.

Flexibility For Employer Contributions

Unlike other IRA accounts, there are no set contribution obligations. What this means is that an employer can change the amount and frequency of contributions to the plan based on the businesses profitability for each year. This makes the SEP IRA a better choice for the small-business. During startup years, profits may below, the employer can set up a SEP IRA plan with a smaller employer match. As the business and profits growth, take it increase their contributions. Is the business hits hard times, they can’t reduce the amount of contributions for a year or two until the outlook gets better.

Enrolling In A Sep IRA

Unlike other IRA’s, the enrollment forms for a simple IRA are fairly easy to fill out. It is a simple two-page form. All the employee must do is to fill out an investment application provided by the Company that will hold the investment funds. The SEP IRA does not require any reporting to the IRS on annual returns. This makes it easy for a small business to administer the SEP IRA. With only a two-page form to fill out, employees are more apt to enroll it a SEP IRA.

Choices In Investments

Most employers choose a large mutual fund company to fund their employees SEP IRA’s. This gives the employee many choices in how to invest their money. This makes it easy for the employee. They can choose to divide their contributions among several different mutual funds. For example they may contribute part of their earnings to a relatively safe bond fund, while at the same time, contributing part of their earnings to a riskier small-cap stock fund. These choices are left up to teach individual employee. The employer does not have to worry about which fund to select for their employees.

A SEP IRA is a simple way and cost-effective way to set up a retirement account. Is ideally suited for small business due to its low administration costs and its low amount of maintenance. It has simple forms and simple reporting. If your employer does not yet offer a retirement plan, you may want to suggest that they consider a SEP IRA.

Author: Dean Novosat
Website: http://www.the-retirement-guide.com

Make $1,000 online now

Make money online now…… February 2007 AdSense Publishers Receive $916 Million From Google in 4th Qtr of 2006 So in short: The Distribution partners got $60 million, and AdSense partners got $916 million

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Terror on Wall Street

After the massive explosion on wall street a fatally wounded messenger boy pleaded for someone to deliver his securities, and a clerk, having lost his eyes and his feet in the blast, tried to blindly crawl towards safety. A woman’s severed head, still wearing a hat, was stuck to the facade of the JP Morgan building

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