|
|
|
Booming Real Estate Profits From Baby Boomer Investing
In last week's article, called "Irrational Exuberance, Part II?," I discussed some of our concerns about what is happening in the preconstruction investment real estate market. What many people have asked me is "if you're so concerned about the...
DXInOne E-Currency Exchange: Hidden Profitable Investing Opportunities
Very few oportunities online have the privilege of claiming they
can guarantee to make a profit for you. It's probably hard to
believe at first, but once you grasp how the e-currency exchange
system actually works you can see that it's not out of...
Investing Stock Market ABC’s
While most folks today trust mutual funds and their professional managers with their investments, it’s still important to understand the basics of the stock market. Although investing in individual stocks may not be right for everyone, a basic...
Starting A Successful Business
Selecting to venture out and start a business is one of the hardest decisions entrepreneurs have to make, leaving the security and income of a previous job, to invest in an uncertain future can be a daunting decision for anyone. But once the...
Tax-Lien investing. Is it safe?
Why didn't my stockbroker or banker tell me about these investments?
The answer is simple: Stock brokers and bankers aren’t allowed to make commissions on them! They don’t want you to know about them because they can’t make any money when you...
|
|
| |
|
|
|
|
|
|
Before You Start Investing
There maybe several reasons why you to want to invest your money. You may want to retire early, want to build your own business in the future, or to pay for your kid’s education. Should everyone start investing outside their retirement accounts right away? The answer to this question is that it depends on your financial situation. First, you must have a basic understanding in financial management. What would happen if you lose your job, accumulate large medical expenses, or losing money on your investments? Do you still have money to pay your bills? Do you have to sell your investments that you have worked so hard for, with a loss? No one knows what the future will bring. Therefore, you must have a safety net to fall back on in an unexpected event. This article contains 5 concepts that you should follow before you start investing outside of your retirement accounts.
1. Increase your savings rate:
Cutting down on your expenses is the easiest way to increase your savings rate. You can also increase your savings rate by working overtime or switching to a higher paid job, but these are usually harder to do. If you want to accomplish your financial goals, you must start saving your money. You can do this by evaluating where you spend most of your money, and adjust your lifestyle to increase your savings rate. You will be surprised how small changes can increase your savings rate tremendously. For example, you can make your own coffee in the morning, shop while the clothes are on sale, and cut down on eating out, can save you lots of money.
2. Emergency cash reserve:
Have an emergency cash reserve of at least 3 to 6 months of living expenses. This step maybe the hardest step to accomplish. But in the event that you lose your job, you will be thankful that you have this money. The best place to put your emergency cash reserve is in a money market fund. If you have relatives that are generous, you could use them as your emergency cash reserve. But make sure that you ask them first.
3. Paying off consumer debts:
Pay off your consumer debts, such as car loans and credit card loans can help you financially. Let’s say that your credit card charges you
a 10% annual interest rate. Paying down that loan is like investing your money in stocks with a 10% annual return without tax consequences and risk free. Another reason you may want to pay off your consumer debts is that the interests are not tax detectible.
4. Paying down your mortgage:
If you want to pay down your mortgage earlier than required, compare your mortgage interest rate to an investment that you intend to invest in to make your decision. However, all investments have risks and you could end up losing money if you chose to invest. I personally think that paying down the mortgage early is too boring. In addition, the interests that you pay are tax deductible. Another reason that you may not want to pay down your mortgage early may be that you want to contribute more to your retirement accounts.
5. Contribute to your retirement accounts:
Take advantage of the tax benefits of your retirement accounts. If you are in a 30% tax bracket, for every $1000 that you contribute to your retirement account, you instantly saved $300. In addition, any profits inside your retirement accounts (dividends, interest) grow without taxation until you withdraw your money after age 59½. If your company matches a certain percent of your pay, you should contribute at least enough to receive the maximum company match. After all, it is free money. This is similar to making 100% return on your investment immediately. Can you do that with stocks? Not likely!
Once you have developed your safety net, you are ready to take on more challenges, but do it wisely. It took me 2 years to have my finance organized to begin investing outside of my retirement accounts. Use as much time as you need. And remember to diversify your portfolio.
About the Author: Quoc Nguyen can help you start your own profitable business on the Internet within the next 24 hours! To learn more, visit: http://www.OnlineFreedomWork.com/pips.html
Source: www.isnare.com
|
|
|
|
|
| Investing: Stock Quotes, Charts & Market News - MSN Money |
| Investing home page features investment tools like stock quotes, charts, a portfolio manager and much more. Plus market news and financial commentary from ... |
| moneycentral.msn.com |
|
| Investing : Stock Investing, Investing News |
| Our stock investing news is designed to help new and seasoned investors alike. See all of our investing news online at BusinessWeek.com. |
| www.businessweek.com |
|
| globeandmail.com : globeinvestor.com |
| GlobeInvestorGOLD Canada's most comprehensive investment tool. ... This Globe and Mail report will profile alternative investment products designed to help ... |
| www.globeinvestor.com |
|
| Fool.com: Investing, Stock Research, and Personal Finance |
| Investing information and an enjoyably useful site. Updated hourly. |
| www.fool.com |
|
| Investing, Stock Quotes and Research, Personal Finance and ... |
| Free comprehensive guide to investing and personal finance. |
| www.investorguide.com |
|
| Open Directory - Business: Investing |
| Business: Financial Services (17198); Business: Major Companies: Company Information (28); Recreation: Collecting (5684); Society: Issues: Fraud: Investment ... |
| dmoz.org |
|
| Better Investing - We'll show you how! |
| The National Association of Investors Corporation (NAIC) teaches individuals how to become successful strategic long-term investors. |
| www.betterinvesting.org |
|
| Dow Jones, Nasdaq, S&P 500, stock market data - CNNMoney.com |
| ... Real Estate Tips Main FSB 100 Small Cap Investing - Top 50 5 Best Bosses Which States Love Small Biz? ... Investing after Pfizer's flop - 3 strategies ... |
| money.cnn.com |
|
| Investing News, Personal Finance, Stock Market, Mutual Funds ... |
| Reuters.com is your source for investing news, personal finance, stock market, mutual funds and investments. Reuters is the leading global provider of news, ... |
| today.reuters.com |
|
| Investment - Wikipedia, the free encyclopedia |
| Investment or investing [1] is a term with several closely-related meanings in ... Types of financial investments include shares or other equity investment, ... |
| en.wikipedia.org |
|
| Investing In Bonds |
| Information about bond investing from The Bond Market Association. Bond price information, articles, introductory guides, and links to related sites. |
| www.investinginbonds.com |
|
| Investing for Kids |
| Welcome to Investing For Kids. This Web site is designed by kids for kids. It examines stocks, bonds, ... It teaches the principles of saving and investing. ... |
| library.thinkquest.org |
|
| internet.com - the Internet and IT Network from Jupitermedia Corp. |
| The definitive internet resource. |
| www.internet.com |
|
| InvestorWords.com - Investing Glossary |
| The most comprehensive investing glossary on the web, with over 5000 definitions and 15000 links between related terms. |
| www.investorwords.com |
|
| Investing - Share prices | FTSE100 | Stock quotes | Stock exchange ... |
| Also on Investing:. December Fund of the Month: River and Mercantile UK Smaller Companies · Virtual Trader: play our £100k fantasy sharetrading game ... |
| money.uk.msn.com |
|
| JS Online: Business: Investments |
| Investing, Personal Finance. More investing stories from the Journal Sentinel ... Readers share investment advice, savings tips COLUMNIST HUMBERTO CRUZ ... |
| www.jsonline.com |
|
| Welcome to the Investing Online Resource Center! |
| Independent, non-commercial information on online investing. |
| www.investingonline.org |
|
| Investing for Your Future |
| Online course for beginner investors. Course and program description, registration, resources, feedback and contacts. |
| www.investing.rutgers.edu |
|
| investing | baltimoresun.com |
| Business, technology, real estate and investing news, primarily from The Baltimore Sun. |
| www.baltimoresun.com |
|
| Investing for Beginners |
| Investing for beginners gives new investors articles on the stock market,interviews with leading financial experts, discussion boards, a free weekly ... |
| beginnersinvest.about.com |
|
|