Are Stock Funds Good Investments For 2014 and 2015? 

By James Leitz  
 

    
 

For five years running stock funds (equity funds) have been very good investments, and in 2014 & 2015 the right funds might still be good investments. It's all a matter of where to invest money going forward, because there are few good stock funds in a bad stock market.

Over the long term stocks have returned about 10% a year (on average) and stock funds have been good investments for investors in search of where to invest for higher returns. This does not mean that you can simply invest money in one and expect to make 10% every year. Yearly returns are heavily influenced by the general trend in the stock market.

While most investors follow the DOW (Dow Jones Industrial Average), most professional investors, like fund managers, are evaluated based on how well they perform vs. the S&P 500 Index. For most of these money managers, their job is to pick good investments and beat the S&P 500 (the stock market in general). Even good stock funds fail to do this on a consistent basis.

In the vast majority of cases, when an average investor asks a financial planner where to invest money for growth (higher returns) the recommendation is: invest in diversified domestic equity funds - the biggest and most widely held fund category. Where do they invest these mountains of cash?
Answer: mostly in the 500 largest, best known corporations in America... those that are included in the S&P 500.

In other words, even good stock funds are rarely good investments in a bad stock market. The vast majority of them are diversified across a broad range of industries or sectors in the economy. As goes the market, so goes the average person's stock funds. What can you expect if the market turns ugly and drops 50% in 2014 to 2015 as it did in 2000 to 2002 and again in 2007 to 2009? Diversified funds that take losses of 40% or less will look like pretty good investments. You can safely bet on one thing.

Even the truly good stock funds (diversified funds that actually beat the averages over the past five years) will lose money if we have a third major down market in 2014 and 2015. The stock market makes the rules, and in 5 years it has risen more than 150%. What can you do to avoid heavy losses in a future downturn? First, you can reduce your exposure to diversified domestic funds. Then the question to ask is where to invest money. Specifically, what are the good investments in equity funds when the market turns ugly?

There are always good investments for average investors and always a few good stock funds if you know how to find them. They don't diversify broadly - they focus on specific industries. Nobody really knows where to invest money when the sky is falling, but I'll tell what's worked in the past.
When the market has a bad week look for stock funds that bucked the trend. Also look for fund categories that underperformed in the past year or two. For example, gold stock funds were losers in 2013. They could be good investments in 2014 and beyond and are worth watching. Over the past couple of decades the following three fund categories have sometimes been good stock funds in a bad market: gold, natural resources, and real estate funds. They could again be your answer to where to invest... as an alternative investment that bucks the trend.

Uncertain times call for greater diversification because no one really knows where to invest. Up markets are always followed by down markets and good stock funds for an up market are seldom good investments in a down market. Don't stand flatfooted while your stock profits evaporate. There are always good investments somewhere, and that will be true in 2014 and 2015 as well.

A retired financial planner, author James Leitz has an MBA (finance) and over 40 years of investing experience. His complete investor guide for beginners, Invest Informed, teaches everything you need to know to put your money to work. Review his book, INVEST INFORMED at http://www.Amazon.com.

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Stock Market Investing

By Emma A John

     

There are many who want to learn about the workings of the stock markets so as to be able to make money. These individuals can actually secure their financial freedom if they are successful at the stock markets. However, these individuals have to keep in mind a few things before investing in the stock markets as they can prove to be very risky for beginners or newcomers. Those individuals who do not have much savings and yet want to try their luck at the financial markets must make sure to minimize their risks. In fact, many suggest that these individuals should have with them up to a year's expenses in reserve. Investing in stock markets also requires the individuals to manage their earnings effectively.

A know-how of the financial markets is a must for all the beginners. There are countless books available, both online and in the real world from where those who are interested can learn about the basic terms used in the stock market and issues like investing and evaluation etc. The books help the readers not only in gaining better understanding of all these issues, but also assist them in learning how to analyze corporate finances thoroughly. Other than these, there are countless articles and essays available on various stock market topics that people can read online whenever they have time to increase their understanding and knowledge.

Beginners are often advised to trade stocks on paper before actually making a real money investment.

This will also teach the new investors about recording details related to;
1. Dates of the trades
2. Number of shares
3. Stock prices
4. Profit or loss
5. Commissions
6. Taxes on dividend
7. Short or long term capital gains taxes payable for each trade

However, it is worth mentioning that in the real world, things are not as simple and there are multiple forces at work that affect the stock price etc. In most cases investors will be required to compare a particular stock price to its revenue and other factors like cash flow etc. to find out if it's under-rated or over-rated.

The simple task of trading stocks in the market may also require investors to make complicated calculations to compare a company's performance expectations to its industry. These calculations are made in a very different manner for companies depending if they belong to a slow growth rate or a high growth rate industry. Investors dealing the financial markets should make sure to maintain a portfolio that has both long term and short term stocks.

If you want to learn how stock market investing please visit http://www.forexminute.com/. Here you will also learn about the important forex tools, market analysis, news and the current trends

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Gold IRA Account: Smart Investing For Retirement

By Michael M Griffin

The Tax Payer Relief Act, adopted in 1997, has made precious metal investment possible into Individual Retirement Accounts (IRA's). Accepted metals are now silver, gold, platinum and even palladium, though the most popular kind of investment is in gold. There are many reasons why a gold IRA account is a wise choice for the future.
Money, as it is recognized by the world, consists of pieces of paper or coins. The total amount of money released on the market by a government must not exceed their value in gold. Even if countries can print the amount of money they are willing to, the amount of gold in the globe varies only slightly, as resources are limited. When a currency loses its value, or when stocks decrease in value, the price of gold rises.

This is why many individuals decide to invest in gold when it comes to their individual retirement accounts. It is important to have financial stability once you no longer need to work, so a proper balance between your retirement funds, properties and other valuable assets must be accomplished by then.

There are a few simple steps needed in order to invest in a gold IRA Account, as detailed below:

IRA Account Type
The first thing you need to determine is what type of IRA you have. Even if there is the possibility to make changes, some accounts are not compatible with precious metal investing. Still, the traditional, roth, Simplified Employee Pension (SEP) and Simplified Incentive Match Plans For Employees (SIMPLE) IRA accounts have the option of gold investing.

Finding the Right Custodian
This step is important, because even if there are many expert custodians available, not all of them understand the importance and the implications of gold investing. Look for a custodian with experience in precious metal investment and choose based on recommendations, credentials and expertise.

Funding Your Account
Funding an IRA account with the purpose of gold investment can be done by a simple transfer from your current account or even from a 401(k) or a company retirement account. A certified custodian will be able to guide you through the entire process, without hassle.

Decide What You Want To Buy
Investing in gold doesn't necessarily mean buying gold. Another option is to buy gold mining stocks, so discuss it with your custodian and follow their advice, as they will understand the market better.

Keeping Your Gold Safe
This is the most important part when choosing to invest in gold. It is mandatory to open an account with an IRS-accredited depository in order to keep your gold IRA investment. Personal handling and keeping the gold is prohibited by the IRS, as you are not able to provide insurance in case anything should happen. Also remember that not every piece of gold is in compliance with IRA accounts. The safest method is to invest in gold and silver bullion that has 99.9 percent purity, or coins like the Canadian Gold Maple Leafs, the Austrian Philharmonics, the Australian Kangaroo Nuggets and the American Gold, Silver and Platinum Eagles.

Balance
Even if investing in a Gold IRA Account is advisable, a balance between money and precious metals must be kept at all times. The economy sometimes evolves unpredictably, so having multiple options when you retire is advisable. A balance of between 10-20 percent is often recommended by most custodians and gold market advisers, keeping in mind that trade has always been - and will remain - the most profitable source of commerce.

Please visit PreciousMetalInvesting.org, where you can find more information on gold IRAs, silver IRAs, 401k's and the top rated gold IRA custodian. There, you can also request your free gold investment kit.

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Rollover Your 401k Into an IRA? Not Necessarily

By Lou Chong

     

    

Why all the fuss over 401ks and rollovers?
Due to the decline of traditional pension plans, 401ks now typically represent the bulk of retirement assets for most investors. So, making good decisions on what to do with those assets is very important.

Is rolling over your 401k account into an IRA a bad thing then?
It depends. In many cases it does make sense to rollover your 401k account. What doesn't make sense is to do anything without understanding what options you have, what costs are associated with those options and most importantly-having a financial plan which guides you in understanding what role that pot of money plays in your financial future.

Reasons to keep your 401k account with your employer

• You are happy with the current investment options in the plan.The plan has a diverse menu of good performing and reasonably priced funds.
• If you are 55 years or older, maintaining your 401k account gives you an option to take distributions without incurring the 10% penalty, as you would (with certain hardship exceptions) in an IRA.
• I'm not a big fan of this. But you could also take out a loan against your 401k balance for short term needs.
• Your 401k account is protected under ERISA, so there is general protection against creditors. IRA's are not necessarily shielded from creditor protection, depending on your state of residency.
• You minimize the potential tax impact of the pro rata rule if you plan on doing a Roth IRA conversion using non-deductible IRA assets.

Reasons to rollover your 401k account into an IRA

• You are dissatisfied with your employers plan's investment options.
• You find that you can significantly reduce overall expenses by rolling into an IRA.
• Your employer makes changes to the 401k plan which restricts how you are able to invest.
• You have too much employer stock in your account.
• You want to consolidate and simplify having to track the myriad other qualified retirement accounts you currently own.

The best decisions come from good information.

The best decision on whether to make an IRA rollover comes from having a thorough understanding of your financial situation and objectives, and then obtaining information on what those alternatives will cost you in terms of investment related expenses and potential tax impact. A competent financial planner can help you make those decisions by taking into account your total financial picture and long term goals.

This article is for informational purposes only and does not constitute a complete description of our investment advisory services. No information contained in this article constitutes tax, legal, insurance or investment advice. This article should not be considered a solicitation, offer or recommendation for the purchase or sale of any securities or other financial products and services discussed herein.
 

Lou Chong, CFP, CRPC has over 20 years of professional experience in the investment management and retirement plans industry. He is also the founding principal of Wedgewood Wealth Counsel LLC, a firm dedicated to delivering comprehensive financial planning and wealth management strategies with a fiduciary standard of care.
 

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Investing in Precious Metals - Beware of the Pitfalls

By NI Jocson

     

    

It is easy to invest in precious metals.

But what you should be mindful of, first and foremost, is to opt for physical consignment of gold. Whether you store it in your personal vault or have it stored in a segregated depository, it does not matter as long as your priority in investing in precious metals is physically owning them (the metals).

If, however, you have a solid investing background, you may go with other investment vehicles. But for the sake of saving you a lot of troubles and most specially the money you worked hard for, go for physical delivery of your metals. That should be your strong position when it comes to precious metal investing.

Beware of the Pitfalls

• ETFs or exchange-traded funds - are traded just as you do with stocks. An ETF maybe a very good medium if you are into trading but may work against you big time if you chose to use it in investing. If you'll be purchasing an ETF remember that there is no gold or silver in it - just as mentioned, you have to get physical when it comes to precious metals.


• Pools and Certificates give you a "promise" of gold or silver and many are lured to buy them because they appear to be cheaper. These do not charge you fees for storing metals because simply no metals are actually stored. And they are funding their investments collected from the buyers.


• Using leverage such as options, margins, and futures - is too risky for an investor who does not know how to use it. And you are actually giving someone your money and invest it for you. You have to get educated if these vehicles are what you want to use.


• Numismatics. Still, you have to do your own verification, buying numismatics is for collectors (most of the time). If it is your hobby to collect these types of coins then go. But getting into it as an investment may not work well for you. You will be limited to buyers of rare coins who are only a few of them out there.


• Fraudsters, scammers and con artists. Beware of customer service pushing you to buy rare coins. If they are so pushy about it, make sure you do not end up buying the coins. Commemorative coin scams - if you watch an ad about such a coin, beware of it, must be a scam. If you remember the Freedom Tower Silver Dollar (claimed to be retrieved from Ground Zero debris),the con artist refunded more than $2 million to those who purchased the fake coin. Beware of scammers online selling slabbed coins. These people can buy slabs and slide coins already counterfeited. Numismatic coins are easily counterfeited than bullion coins.

Harness your power of spotting the pitfalls! Do not fall into these schemes! Find here the best gold and silver investment company.

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Retirement Investment Choices Between Guaranteed Income, Safe Income, And Growth

By Shane Flait

     

Considering how to invest your retirement money can make you crazy. But if you think through the reasons for choosing which type investment (or combination) is best for you, you can recover your sanity. So, let's review the reasons for choosing each of the 3 retirement investments: guaranteed income, safe income, and growth.

-Taking your income from fixed annuity payouts:

When you annuitize your fixed annuity, you get a guaranteed income for the rest of your life. You can also guarantee payments to a surviving spouse or your estate, if you choose to pay extra for that option. Of course once you begin payments, you can't change this investment. So who should choose this?

Reasons for investing in a fixed annuity include:
* You don't have to worry about investing that money anymore.
* You have limited retirement savings, and are worried about how they will last
* You're in good health and expect to live a long life
* Interest rates are very high, so you can get a good monthly income, and
* You're not worried about inflation's effect on your income
* Other people depend on you for income.

-Taking your income from 'safe' income-generating investments:

To provide a fixed income from earnings you can invest in government bonds, and treasury bills and even Guaranteed Investment Certificates (GICs). And you can change your investments whenever you want. And who is this type of investment for?

Reasons for investing in a 'safe' income investment include:
* You've only a few sources of income after you retire so you can't afford to risk much.
* Other people depend on you for income.
* You like having the option of changing your investment in response to interest rate changes.
* Inflation's effect maybe worrisome but maintaining an income is more important

-Relying on growth investments to increase the value of your investment:

You may consider increasing the value of your money to preserve its purchasing power over time. To do so, you'll need to invest in growth stocks or the related growth funds. But with the potential for growth comes a higher risk of losing investment money - at least for a time. Is this for you?

Reasons for investing in growth funds include:
* You already have enough assured income investments from pension or Social Security.
* You worry about future inflation or higher expenses and have additional money to invest to offset their effects.
* You want to leave a legacy to your beneficiaries after your death.

What's also important it to realize that you don't need to confine yourself only to one of these investment types. If you're short on income and savings, but still have many years to live, try to minimize your living expenses. Then buy a fixed annuity to cover those expenses and invest in growth or income investments only for future use. Understanding the choice you make gives you some peace of mind.
 

Shane Flait gives you workable strategies to accomplish your goals in financial, legal, tax, retirement and protection issues.

Get his FREE report on Managing Your Retirement =>
http://www.easyretirementknowhow.com/FreeReportandSignUp.htm

Read his ebook: 'Wise Way to Financial Independence' =>
http://www.SovereignU.com

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401K and IRA Best Investment Strategy for 2014 and 2015

By James Leitz

     

    

If you invest money in a retirement plan on a regular basis the best investment strategy for 2014 and 2015 is an investment strategy that will keep your investment portfolio on track without subjecting you to a lot of risk. Most of the investment options in a typical 401k and many IRA plans are mutual funds. To achieve long-term growth with only moderate risk you need to invest money in both stock funds and bond funds. What's your best strategy for 2014 and beyond?

After 30 good years bond funds will turn sour when interests rates turn around and go up (that's the way bond funds work). Stock funds have returned well over 100% since early 2009. Interest rates are near all-time lows, and an abrupt reversal in rates could cause havoc in both fund categories, resulting in big losses for investors in 401k and IRA plans. It's time to get proactive to protect your retirement assets.

The best investment strategy for average long-term investors traditionally focuses on a mix of stock funds and bond funds. Picking the best stock funds and best bond funds to invest money in from your list of options is a secondary consideration. Concentrate instead on asset allocation and investment strategy. In other words, how do you spread your money across the different options offered and what kind of strategy do you use to make sure you stay in a position that fits your risk profile? We're talking money management here, and we're talking about your financial future.

Let's say that you consider yourself a middle-of-the-road investor. You are willing to accept moderate risk in pursuit of higher than average returns. Wall Street has traditionally suggested that the best investment strategy is to invest money with about 60% in stock funds and 40% in bond funds. To protect yourself against the possibility of heavy losses in the future, why not get more conservative with your asset allocation?

In a 401k plan asset allocation is your responsibility and you must make decisions on two levels. First, for the investment assets you already have in place (your portfolio allocation). Second, for the new money you invest each payday (your contribution allocation). These allocations can both be the same, or they can be different. For example, upon review of your statement you might see that 70% of your portfolio assets are in stock funds, with 30% in bond funds. And you have 50% of your new contributions going to each.

Here's my suggestion for the best investment strategy for cutting your risk while keeping stock and bond funds an integral part of your investment mix. No matter what your portfolio allocation is now, change it so that you have equal amounts invested in these three areas: stock fund(s), bond fund(s), and a safe investment option. If your 401k offers a STABLE ACCOUNT option that pays a decent interest rate, use it as your safe option. If it doesn't, go with the money market fund. Remember, interest rates are extremely low, so money market funds presently pay very little interest. On the other hand, some 401k stable accounts pay higher interest rates than you'll find anywhere else.

For your allocation for new contributions set it up the same way with one-third going into each of the three options. If you have an IRA that you intend to contribute to on a regular basis, have it set up so that money automatically flows from your bank account to your IRA account. Split the existing money in your IRA into the same three areas as above, and set it up so that equal amounts flow into a money market fund, stock fund, and bond fund each month.

The above strategy will not be the best investment strategy vs. the traditional 60%-40% strategy if both stocks and bonds continue their winning ways in 2014 and beyond. You have traded higher growth potential for greater safety. If, on the other hand, interest rates rise significantly and throw a wrench into the stock and bond markets, this investment strategy should work to your advantage.

Let's say that stock funds and/or bond funds decline significantly in value for a couple of years or more before rebounding. My suggested strategy has two primary advantages. First, your losses will be lower. Second, the new money you have flowing into stock funds and bond funds each month or each payday will buy more and more fund shares as fund prices get cheaper. When prices rebound you will break even and start to show a profit sooner because you bought stock funds and bond funds at cheap levels. That's called dollar cost averaging... which is a crucial part of the best investment strategy.

Sometimes the best investment strategy is to take aggressive action - like after a major decline in stock prices. Other times the best strategy is to be more cautious by cutting the risk in your portfolio... while you continue to invest money in stock funds and bond funds. In 2014 and beyond, I believe that caution is your best strategy.

A retired financial planner, author James Leitz has an MBA (finance) and 40 years of investing experience. His complete investing guide for beginners, Invest Informed, teaches how to invest starting with investment basics. Check out his book, INVEST INFORMED at http://www.Amazon.com.

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Investing in Shares and Stocks

By Derrick King

Things That You Might Need to Know Before Investing in Shares and Stocks
There is no doubt whatsoever that investing in shares and stocks is among the best moves that anyone who is in search of wealth can make. Investing in shares basically means that you buy a fraction of a company and you get to earn interest from the share. Stocks are available when a company wants to raise money and they choose to sell part of their stocks to the public over other methods that can be used to raise cash. Before you go to buy stocks of a company, it is important that you be familiar with the background of that particular company, look for their track record and make a decision of the type of investor that you would wish to become.

Use of Software in Buying Shares and Stocks versus Online Purchasing
As an investor, one golden move that you can make is to buy shares and stocks using stock trading software. This is highly recommended especially for those that are taking those final steps in jumping into the world of trading stocks. Although this software helps you in reducing work load involved while buying shares, you still are required to make sound financial decisions based on shares and stocks that you would wish to purchase. When one is about to buy shares, there is a lot of information that you have to do research on plus make the decisions, this work rate might easily discourage you..

Software comes in handy mostly for new beginners. This is because it analyses stocks all over the worlds markets and generates essential market information that you need before you get to decide on where to invest. One good thing about the software is that it gives you updated information and so you are set not to miss out on any chance of making cash. Another way to buy shares is through online share dealing. Although you should not rush to make any decisions before buying shares and stocks, online methods can save you a great deal of time and effort when you set out. Software provides you with relevant information that you need just by a click of the mouse. It also gives you that chance to compare performance of different stock markets all over the world.

Shares and Stocks at the Share Market and the National Stock Exchange
Everyone thinks about making cash effortlessly upon the mention of shares and stocks. This thought might be proved to be true or false at the same instance and this has been proven time and again. As an investor or one to be, it would be wrong for you to only look at the profit angle of this type of investment since a loss is also not all that impossible. How you set your sail is what determines how your wheel of fortune will turn, either in your favor or not. The process of investing in NSE has turned out to be one of the easiest processes with introduction of online trading. All that you have to do is to have an online trading account and then you are free to take part in buying and selling shares in the world over.

It is highly advised that you get yourself a broker who will handle all transactions related with your investing. You also get complete access to complete information from NSE including news updates, losers, gainers or recommended stocks. Success is guaranteed if you get to trade right irrespective of the market that you get to invest in, either it be NSE or BSE. Trading right would generally mean:

- Having enough information about a company or stock market before you set out on investing.
- Having a stock broker.
- Using a sock trading software before you carry out any transaction and make the right decisions.
- Renting shares instead of fully purchasing them when it comes to accompany that has fluctuating market performance.

I hope this gives a little insight into shares and stocks.

Derrick King is an Author and writer for many websites including http://onlinesharedealing.org but reminds you that this article is not to be considered as sound financial advice it is the point of view of the author only. All major financial decision should be verified by an accredited financial advisor. Stay lucky.

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Why You Should Buy Your First Real Estate Investment Property Today

By Ketul A. Kothari

When it comes to real estate, there are plenty of people out there that are unaware of the many tax advantages available for real estate investment properties. One of the most popular ones is that of the 1031-Exchange. For those of you unfamiliar with this, the 1031 Exchange is actually a section within the United States IRS Code which states that certain eligible properties may be exchanged for properties of equal or higher value without having to pay any taxes on the transaction.

This tax treatment of trading properties for larger ones is an absolute god-send for the serial real-estate investor. Imagine having the ability to regularly trade up one investment property for a larger one every time you had the resources to be able to upgrade? Well, that is very well possible thanks to this very important IRS provision! Larger properties mean generally higher rents allowing you to increase your annual cash flow, so it is definitely a good idea to trade up for bigger properties whenever you get a chance.

Other tax advantages for rental property owners include tax deductions on interest expenses, depreciation expenses, repairs, travel expenses, and insurance costs.

Interest Expense:
Any interest expense on a rental property is tax deductible. This means deductions for mortgage interest payments, and interest on credit cards for expenses that were used in a rental capacity.

Depreciation Expense:
As a real estate investor, you have the opportunity to claim depreciation on your property as a deductible expense by deducting a portion of the value of your property over the span of a couple of years. While this tax deduction provides the investor with immediate benefits, this benefit is eventually returned to Uncle Sam when the property is sold. This benefit is lost primarily because depreciation serves to reduce the total cost basis for the property, so any capital gains are taxed from the lowered cost basis. This concept is known as depreciation recapture.

Repairs:
Any repairs on your investment property are a deductible expense in the year that you pay for the repair. This means things like painting rooms, and replacing faulty lighting. Any improvements to the property, on the other hand, are not deductible.

Travel Expenses:
Real Estate owners are eligible for tax deductions every time they have to travel for their rental activity. This deduction could be broken down one of two ways: either as actual expenses (receipts may be required), or the standard mileage deduction (which is currently 56.5 cents per mile for the 2013 fiscal year).

From the above deductions, it should be clear that there are plenty of tax advantages available for real estate investors! If you haven't already, it's definitely a good idea to start claiming all the above deductions you are eligible for. They may very well make a difference between losing money on a property versus earning a profit.

About the Author: Ketul Kothari is an accomplished investor and entrepreneur. He is also the author of several popular business books including Invest Your Way to Riches. Ketul's upcoming book, Presenting Greatness, will reveal the presentation techniques and strategies employed by some of the world's leading presentation gurus. Follow Ketul on Twitter.

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