Guide to Successful Investing - Take It Seriously

If you've chosen to manage your own money you've taken on one of the most important tasks which will ever befall you in life. Apart from the love of our families, and perhaps our careers, the next most important thing is how we manage our money. That is, whether that little bit you've set aside grows, stagnates, or worse, whether it shrivels and dies. This will depend on the quality of the decisions you make now and into the future.

Of course if we manage our money better, then perhaps we'll be in a position to shorten our careers, or not have to rely solely on them to produce our income allowing us to spend more time with our families. I certainly know what I'd rather be doing...working 9-to-5 or playing with my kids...

Yet unfortunately most people do not put anywhere near as much time, effort or consideration into their investing as they do into their families and careers. Too many adopt a "She'll be right mate" approach with their investing. It takes a very distant back seat to the rest of their life, yet in so many ways it's just as important as forging a successful career. Get your investing right and there'll be plenty more to leave to your loved ones when you finally check out!

In my seminars and workshops I'll often push people on their investing approach and try to get to the heart of just how much time and effort they're actually putting into their investing. The results are uncannily consistent: Not enough! Most investors simply have no comprehension on the work required to be successful in the markets. They truly believe that they have a sound and credible investing plan but in actual fact their methodology falls far short of one.

"What I do is find blue chip stocks with a good story and hold them for the long run. The market goes up in the long run, how hard can it be?" This has shown to be an extremely faulty plan (or not really one at all) over the last few years as markets have melted down.

Blue chip stocks have shown to be no more reliable or safer than their more speculative counterparts and indeed, many have simply vanished. There's far more to successful investing than buying so called blue chip stocks and hoping for the best.

Unfortunately most investors can be described as 'hobby' investors. They're part-timers. They don't put the same time, effort, consideration and professionalism normally reserved for their careers as they do into their investing.

Professional career investors however will without fail possess a well thought out, researched, tested and documented approach. This is more commonly referred to as a "trading plan". It makes sense that every successful individual or business achieved that success through excellent planning and execution of a well thought out plan - and certainly not by luck. Investing is, and should be no different. Luck has nothing to do with it.

Why is it then that so many investors come into this game with no plan whatsoever, or a plan of attack which can only be described as "flimsy"? They're simply hoping to get lucky!

I see far more investors who are not achieving their full potential, are not even aware of what this is, than those who are - hands down. I'm not sure that there's any way to sugar coat this - but most investors I meet are lazy and complacent. Unfortunately for them, they just don't realise how lazy and complacent they actually are!

Most truly believe that they're doing a bang-up job. Then I point out that the goal is not to just make money, but to beat the market. Sure it's great to make a 10% return over the course of a year. But what if the market went up 20%? If this is the case then you've made money, but lost significant opportunity. You would have been better off by simply giving your money to an index fund manager, not having any stress, not putting in any effort, and just matching the market.

Most investors I talk to realise that what they thought was a good performance is actually costing them thousands and thousands in missed opportunity! A dollar not earned today because of laziness and complacency is going to cost you $6.72 in spendable capital in 20 years at a compound rate of 10% per annum. That might not sound like much, but extrapolate it out over every investing dollar you've flittered away over years and you'll get some idea of just how important it is to get your investing right today.

If every successful individual and company achieved such success through meticulous planning and execution, why do so many investors put their hard earned money at risk in the market without the same application? Can you afford not to have a trading plan? Can you afford to be lazy and complacent and treat your investing like a hobby? Are you going to have a well defined, researched, tested and proven investing plan or are you going to leave it to chance?

The major part of being professional is executing a well documented, researched, tested and proven investing plan. Unfortunately however, not only do many not have such a plan, they overestimate the amount of effort they're applying to their investing. Rather than treating their investing like a profession, it's relegated to 'hobby' status.

I'm going to use an analogy to illustrate this concept. It's one I've been using for quite a while at my workshops to prove the point of just how hard and how much time and effort is required to be truly successful in the markets. You'll understand what I mean in a second, but funnily enough this analogy used to work well until quite recently. It's now the source of great amusement to my students!

I'm a keen weekend warrior golfer. I say warrior because you can often find me conquering the shrubs and bushes at a local golf course near you on a Saturday morning. No shrub is too thick, and no forest too impenetrable in my quest to find my ball after a wayward tee shot.

Sure, I like golf, but I'd hardly call it my profession. It will only at best be a hobby for me. I've got precious little time to practice my game and therefore most of my practice occurs in actual game-time when I really should be reaping the rewards of my efforts during the week. My lack of time in seeking golfing perfection is of course a big issue, but apart from my near phone number handicap, I would have to say that my biggest handicap is probably my lack of talent. I really don't have much of it when it comes to yielding a club...

I'd like to say that my excuse for why I'm so lousy at golf is that I wasn't born with the innate genius of Tiger Woods (you might be getting some idea of the mirth this analogy now causes in my workshops!).

However, one could argue whether Tiger was born with his talent and that's why he's so good, or whether it was an acquired ability? We are of course talking about Tiger's golfing prowess and no other innate ability to score (ok, that's the first and last joke I'll make about that!).

How did Tiger get so good? Was he born with it or did he work really hard to acquire his talent? Well, I think his talent has more to do with the fact that he started playing golf as soon as he could walk and hold a club. He had an excellent coach and mentor in his father, he has worked almost religiously on his game seeking out the best professionals to show him where he's going right and going wrong. Then there's the practice. Tiger's a bit of a hero of mine (golfing only) and I've seen a few documentaries on him. I've seen him practise rain, hail or shine for 8 hours a day. He'll chip 300 balls out of a bunker, step one metre back, and chip another 300 balls, and so on.

I can only conclude that the secret to Tiger's success isn't actually a secret at all: It's hard bloody work! Time spent practicing, which gives you experience, which gives you confidence, which gives you...you guessed it...talent! Who would have thought it would be so easy (hard!)?

It's not enough to say that practice makes you perfect however. That's just something our teachers told us at school to make us feel better about sucking at whatever it was we were doing. It's more accurate to say that perfect practice makes for perfect application.

You see, there's a big difference between any old practice and perfect practice. Anyone can grab a set of golf clubs and bash away at 300 balls in a bunker, take a step back and do it again, and again, and again until the cows come home. Believe me, I have done this in the past and it certainly hasn't made me a Tiger Woods.

Every shot tiger takes, both in practice and in a tournament situation, is recorded and studied. Not just by Tiger, but also those who he's employed to coach him. Nothing gets taken for granted, and nothing gets missed. By constantly having an action, feedback, and adjustment loop, comes improvement. Continue this and you could improve to the point where you turn your hobby into a profession.

This is really the difference between me and Tiger. I don't have a golfing coach so I have no idea that I'm doing wrong. Even if I did, because I don't have an experienced coach I have no idea how to fix it. In my defence however, I really have no intention to quit my day job and start playing golf for a living. I'm never going to have enough drive and discipline to devote the time, resources, and importantly money required to invest in getting myself to that level. If I contribute none of these things then I should not be surprised that my hobby stays just that - something which gives me pleasure from time to time, but which ultimately costs me money.

What's this got to do with our investing? Well clearly there are plenty of traits which Tiger applies to his golf to achieve his returns that we need to bring to our investing approach.

Are we going to treat our investing like a profession and put in the appropriate time and effort and apply this with sufficient passion and discipline? Or are we going to be a 'weekend warrior investor' and treat what we do with our money as a hobby? Certainly the two approaches are likely to generate very different results.

Let's bring this back to your investing. I'll say your investing because I certainly don't treat my investing like I treat my golf. You see, apart from the cheque Australian Stock Report send me for writing this column and presenting at their Workshops, my investing is what pays the bills. I simply can't afford to take this for granted. If I want to succeed, that is to beat the markets and grow my wealth in such a way that I rely far less heavily on other forms of income, which then helps me spend more time doing what I enjoy the most - spending time with my family (not golf), then I must be professional in my investing approach. It's simply too important' not to be. My investing simply can't be a hobby if I want the results I seek...

This means that I must bring all of the traits to my investing which Tiger employs for his golf. Discipline to commit the necessary time to do my analysis and research. To create a well researched and robust trading plan. To implement this plan religiously and through ongoing feedback and response to improve it. I must take the time to make all of this happen and not be so arrogant that I ignore help from those who have gone before me and have themselves achieved the success I desire. I've got to take this seriously.

Now my question to you is: "How seriously are you taking your investing?" Is it a hobby? Are you one of far too many "punters" I talk to about their investments who say things like "Yes, I have a few stocks...yes I think they're going ok..." Whose approach is most often one of "Oh, yes, well I read the financial section of the paper and a couple of financial news websites and try to pick blue chip stocks; then I just stick them in the bottom drawer and hold on." When pushed on the time they've spent developing their approach, the answer is invariably: "Oh, yes, I keep an eye on things."

Remember what I said before about my lack of time to practice, and that I end up doing my practice in game-time on the run? Does that resemble your investing? Do you feel that you're learning on the job? Or should you be learning and honing your skills before you put your hard earned money at risk in the markets?

If you feel like you're feeling your way as you go, then it sounds more like someone talking about a hobby than a serious business! There's far too much to chance! Where is the discipline? Where's the perfect practice? Where is the relentless application and drive to improve, succeed, and exceed?

Let me make one thing very clear here. If you treat your investing like a hobby it will no doubt give you some fleeting pleasure from time to time, like my golf, but also like my golf it is going to cost you money. Whether that be upfront in the form of dismal losses during a bear market, or whether that be from underperforming the index in a bull market - it's going to cost you.

So how do you 'get good' at investing? Take a leaf out of Tiger's book. A coach is a good place to start, an investing coach in this case. Someone who knows the rules of the game who can make objective decisions as to where you're going right and wrong - and on how you can continuously improve.

It's not enough to say: "I'll just bash away at it until I get it! I'm ok - I don't need your help I can figure this out myself..." Remember what we said: It's not practice which makes perfect, rather, it's perfect practice which makes perfect. If you have no idea what the correct approach is in the first place, it could take you many years and a small fortune before you figure it out.

Real professionals spend many years and the same small fortune at university studying to achieve their qualifications. They seek out knowledge, structured, researched and proven knowledge. They aren't so arrogant to say that they will figure it out themselves. Imagine if a brain surgeon said "Don't worry I've read a few books on cracking heads and it's been a hobby of mine for ages now - I think I've got the hang of it so get on the table!" Why should investing be any different? Get some help, go to investing university!

This is where our Workshops come in. In these workshops my colleagues and I get to the heart of what makes you tick as an investor and how we can make you a better one. More importantly, we will give you a number of tried and tested systems and processes to go through before, during, and after each and every investment you make to improve your consistency and results. Keep in mind however that whilst we can show you exactly when and where to enter an investment, we can't give you the discipline and passion to follow such a plan! That's up to you.

We all want the benefits of improved investment performance. The rewards of such improvement could be lifestyle changing. However, are you prepared to put in the hard work to achieve these rewards? Most investors aren't. Your biggest impediment to becoming a better investor is simply getting started, to committing to your improvement by becoming more professional in your approach. The hard work begins now.

Carl has delivered presentations on trading and investing to over 20,000 people throughout Australia and New Zealand and has helped countless clients to improve their trading outcomes. He also writes the long running and popular 'Terms of Trade' column in the finance section of Melbourne's Saturday Herald Sun newspaper.

Carl is currently the Head of Education at Australian Stock Report. Carl and his team teach technical analysis, money management, and trading psychology to intimate classes in a live trading environment. These workshops utilise strategies designed to take advantage of trading opportunities on all asset classes including equities, FX, commodities and indices.

Click to find a workshop near you Market Expo or sign up to a free trial of Australian Stock Report here Free Trial

A Look Into Alternative Investments

Your investment portfolio will typically include conventional investments such as stocks and bonds both equally important parts of a solid, long-term investment strategy. But, there are many other less-typical investments that can supplement your portfolio and provide you with opportunities to reduce some of the effects of market fluctuations. Consider alternative investments such as commodities, hedge funds, mutual funds with alternative strategies, and futures to round off your portfolio.

What are alternative investments?

Alternative investments are asset classes that generally don't move together with traditional equity and fixed income markets. They usually follow their own cycles. As a result, alternative asset classes have a low correlation with standard asset classes; therefore they may help diversify your portfolio by reducing the overall volatility of the portfolio when traditional asset classes such as stocks and bonds are performing poorly.

Historically, alternative investments have been restricted to high-net worth individuals and institutional investors, but these days they are far more available to a wider audience. Alternative investments range from real estate to hedge funds to commodities and can complement a variety of investing strategies. However, they are designed to complement a well-founded portfolio rather than to serve as the focal point of the portfolio.

Most people are attracted to alternative investment because they may yield a higher return than traditional investments, but note that potentially higher returns also may carry higher risks with them. What's important to note is that alternative investments may be more illiquid than their conventional counterparts - they cannot be sold readily like stocks and bonds - and some may need to be held for a longer time horizon. Additionally, there may be unique fees or tax consequences.

Alternative investment options for your portfolio

There are many investment products available today and it sometimes may be difficult to clearly identify which investments are conventional or alternative. But below are is a list of common alternative investments along with their potential benefits and risks.

Gold

Including a small portion of your portfolio toward precious metals such as gold or silver may offset the performance of other assets in the portfolio such as stocks and bonds, because precious metals typically don't move in tandem with conventional investments.

Gold is typically viewed as a hedge against inflation and currency fluctuations. So when inflation effects the purchasing power of a currency - say the dollar weakens against the euro - gold prices tend to rise. As a result, investors place their money in gold during economic and market downturns.

Investing in gold can be accomplished in several ways, including futures funds, exchange-traded funds, mutual funds, bars, and coins. Nevertheless, since precious metals make up a small sector, prices often change dramatically. This type of volatility can create opportunities for investors in the form of high returns but it can equally result in dramatic losses.

Hedge fund offerings

Hedge funds have historically been available only to high-net-worth individuals and institutions. Hedge funds are investment pools that manage money for institutions like banks, insurance companies, as well as individuals who meet the federal definition of a "qualified purchaser" in terms of net worth and income.

Hedge funds are typically organized as limited partnerships where the fund managers are the general partners and the investors are the limited partners. Hedge fund investments tend to have limited liquidity on a scheduled basis as a result these alternative investments are subject to special regulatory requirements different from mutual funds.

Funds of hedge funds invest in a variety of hedge funds with many different strategies and asset classes with the purpose of reducing overall fund risk through increased diversification. Fund of hedge funds are available to investors that meet the accredited net worth standards of at least $1 million. Fees of hedge funds are higher because of the type of portfolio management and increased trading costs.

Fund of hedge funds are registered with the SEC under the Investment Company Act of 1940 and as securities under the Securities Act of 1933. They may also come in the form of a private offering which will need to adhere to stricter accredited investor standards. Fund of hedge funds can be complicated investment vehicles which often use leverage, lack transparency, may be subject to restrictions, and may include other speculative practices.

Mutual funds with alternative strategies

Mutual funds are offered in many asset categories, including real estate and commodities. Some mutual funds can mimic hedge fund strategies and may be a good option if you're interested in alternative investments but don't meet the accredited investor standards.

In contrast to hedge funds and fund of hedge funds with their higher fees and possible restricted liquidity, these types of mutual funds are relatively low cost and are very liquid - they can easily be bought or sold in a public market. As a result they are accessible to a wider range of investors and therefore mutual funds with alternative strategies are prohibited by law in using high leveraging to boost yields as is common with many hedge funds.

Nevertheless, alternative mutual funds do use aspects of hedge fund investing such as employing both long- and short- investment tactics, trading complex derivative products, and short selling. If you are an investor that is looking to help offset market swings or specific sector swings and you understand the risks that may be involved investing in alternative investments, alternative mutual funds may be something to consider adding to your portfolio.

Managed futures funds

Managed futures funds are formed for the purpose of investing assets in the investment vehicles and trading strategies deemed appropriate by commodity trading advisors (CTAs). These specialized money managers use futures, forwards, options contracts and other derivate products traded in U.S. and global markets as their investment vehicles. CTAs are required to be licensed and are subject to the regulations of the National Futures Association and the Commodities Trading Futures Commission (CFTC).

Managed futures are speculative in nature, involving high risks, may carry higher fees, and have limited liquidity. Nevertheless, managed futures investments have been popular investments for high-net-worth individuals and institutional investors for the past several decades. Their appeal comes from their ability to provide investors with greater portfolio diversity by increasing exposure to global investment opportunities and other sectors such as commodities.

There are several categories of managed futures in terms of structure and investment objectives. They may be available to investors in the form of a private offering subject to higher accredited investor standards according Regulation D guidelines of the Securities Act of 1933.

Real estate investment trusts

A popular type of alternative investment is commercial real estate. Until recently commercial real estate has been mostly inaccessible to retail investors and was widely enjoyed by high-net-worth individuals and institutional investors for its potentially higher yields and diversification attributes. Since the inception of real estate investment trusts (REITs), investing in commercial real estate has become available to wider range of investors.

REITs pool money from investors and invest the funds in properties ranging from office buildings to apartment complexes to hospitals and warehouses. REITs are offered to investors in two forms: traded and non-traded. Both offer exposure to commercial real estate assets.

Publicly traded REITs can be easily bought and sold on a daily basis on active secondary market. However, they tend to be more volatile.

Non-traded REITs are illiquid investments appropriate for investors with a long-term investment time horizon of at least 5 to 10 years. Non-traded REITs are not aligned with stock and bond market movements so they add great diversification to a portfolio.

Other alternatives

Alternative investment can also include assets such as art, gems, rare collectibles, and antiques. In addition, venture-capital funds are considered alternative investments. These alternative investments can help provide investors with added diversification and can help balance out performance across various market swings.

Considering alternative investments

Alternative investments can potentially boost your portfolios returns while helping you reduce market exposure and overall portfolio volatility. However, because of a lack of a secondary market for some alternative investments and restricted liquidity for others, as well as the higher risks associated with them, alternative investments should be used as complements to traditional portfolios consisting of equities and fixed-income instruments.

Moreover, because alternative investments often require more professional management than conventional investments, it's important to look to experienced money managers for help such as your Financial Advisor.

Alternative investments include gold, real estate, hedge funds, funds of hedge funds, commodities along with others and are generally used to round off your portfolio's performance because alternative investments are typically not correlated to traditional markets such as equities and fixed income.

Alternative investments are often illiquid, with longer investment time horizons and carry higher risks, and often require professional money managers.

Investors must meet a criteria outlined by the law, ranging from product to product, in order to take advantage of alternative investment opportunities.

Alternative investments should generally be used to complement existing portfolios and strategies consisting of mainly stocks and fixed-income products.

Isakov Planning Group financial advisors bring industry leading resources and expertise to help clients pursue and achieve their goals. Along with expert market analysis from the firm's top investment managers, your Isakov Planning Group financial advisor will work with you to develop and deliver tailored solutions that can help you get on track and ultimately achieve your most important objectives, whether you're looking to plan for retirement, build tax-free wealth, get your kid's through college, or build a lasting legacy for your family.

Real Estate Investing Skill Acquisition

Real estate investing is not in any list of high school electives. You can't get an accredited degree in real estate investing. You won't find a high school or college guidance counselor who recommends a career in real estate investing (if the guidance counselor understood real estate investing, he or she probably wouldn't be a guidance counselor!)

The public school system and educational curriculum in the U.S. is only a feeble attempt to prepare students to just "get a job." Unfortunately there is no class in "Making Money 101." You don't have the opportunity to take a class in "How to Become Financially Independent." No teacher ever taught a class in "How to Succeed When Everyone Else is Failing." I never learned anything about succeeding as an entrepreneur or becoming wealthy during my 10 years in the university classroom. I only became a multi-millionaire when I learned the skills of real estate investing, and I paid the price out-of-pocket and out-of-the-classroom for that education. I learned these skills in the ole University of Hard Knocks through trial-and-error.

Never disparage the cost of education. There ain't no free lunch. You've gotta get this know-how outside of a classroom, and learning how to make money is gonna cost you. But if you think the cost of education is expensive, you should calculate the cost of ignorance!

However, learning real estate investing doesn't have to cost you an arm and a leg. Yes, I know, the real estate investing TV infomercials and the real estate investing seminars held around the country charge big bucks for those 3-day seminars and week-long Boot Camps. But that's pocket change compared to the fees they want to collect from you later. Catch this fact: all the real estate investing infomercials and seminars target you as a candidate for "real estate investing coaching." That's where they charge you up to $25,000 and over $50,000 per year for "coaching." And often you are assigned to some kid "still wet behind the ears" to call you each week or month to hold your hand and whisper in your ear what common sense and a persistent drive should already tell you! I'm not exaggerating the real estate investing educational system, because I know it inside and out. I personally know many of the so-called "gurus." I've been close to it for 25 years. My opinion is that the fees charged are exorbitant because the promoters have found deep pockets in the marketplace.

When I started my real estate investing career 25 years ago, real estate investing TV infomercials were unknown and real estate investing seminars were extremely rare. Back then, Mark Haroldsen followed an emerging trend started by Al Lowry and Nick Nickerson by holding occasional real estate investing seminars across the country. Later Robert Allen expanded the industry. Robert Allen promoted real estate investing conventions in the major cities across the U.S. He found a market for costly real estate investing packages of information with cassette tapes and note books. TV infomercials, expensive seminars, and outlandish coaching fees followed in subsequent years. Would-be real estate investing aspirants today who want more than an inadequate salary from a job in Dullsville often conclude that they have to "pay through the nose" for real estate investing know-how.

However, through diligent searching, these want to-bees often find that this education in real estate investing is more readily obtained from other sources than they previously imagined.

Real estate investing is probably one of the most easily learned skills never taught in school. Real estate investing is probably one of the most prolific careers available on Planet Earth. Because families now live in houses instead of caves, houses available for fix up are everywhere. And probably nothing contributes to upgrading the deplorable housing conditions across America comparable to real estate investing in fix up properties.

The entrepreneur-minded aspirant who discovers the real estate investing industry often catches a vision of life-beyond-a-job. Books and online courses offer an alternative to expensive seminars and coaching.

Phil Speer, Ph.D., started his real estate investing career 25 years ago. Without the availability of credit and using only a $10 bill, he purchased $1 million in properties in his first year, and had accumulated $10 million in properties by his fourth year. He was featured in a Wall St.Journal editorial as most successful investor in the Nothing Down Real Estate Movement, and was honored with a Caribbean cruise as top investor of the year. In his hometown of Nashville, Tennessee, he has been a businessman and Human Resources Consultant for 30 years. He is an author, speaker and seminar director. To learn how to profit in real estate investing, even without cash or credit, read his report at http://www.CashinHouses.com/. Subscription is free to his Fix-up Ezine. He and other contributing authors provide free articles and resources on real estate investing at his online ?Academy of Advanced Real Estate Investing Techniques? - http://www.AAREIT.com/

How to Invest Your Money Wisely

How do I invest my money wisely? How do I build wealth? What is the best investment product with the highest return on investment? What do you recommend I invest in? I have $1000, what do I invest in? These are some questions I receive often and I will try to provide answers from my own perspective.

There are a lot of investment products you can invest your money into. You can invest in stocks, real estate, gold, silver, commodities, businesses, etc. But I want to state that there's more to investing than meets the eye. Most people are obsessed with the investment product and procedure without having the right plan in place. I want to thank Robert Kiyosaki for expanding my insights on this topic. He made me understand that more important than an investment product is a plan. Just as starting a business requires a business plan; so also does investing requires a plan. If you have no written plan on how to invest your money; forget about investing. You can discuss with your financial adviser on the best possible plan for you.

How to invest your money wisely and build wealth

Now before you rush into investing your money in any investment product, I think it's worthwhile you read the following tips on the best investment product to invest your money in. What should you invest in?

1. Invest in something you understand

There's a strong inter-relationship between business and investing. Just as it's advisable you start a business with a thorough understanding of the industry you are going into; the same is applicable to investing. Sometimes I find it funny that people actually start a business or buy an investment product based on the recommendation of a friend or their financial advisor. Others invest in an investment product just because someone else succeeded with that same product. Sincerely speaking, I believe this approach is wrong. Understanding is vital to any endeavor you find yourself in life including investing. Don't jump into any investment; be it stocks or real estate with first understanding the intricacies of such investment. Lack of understanding is the primary reason why investors panic in an economic downturn. With proper understanding, you will be able to maximize your profit; manage risk and minimize your loss in any investment.

2. Invest in something you are passionate about

Do you know why Warren Buffett emerged the world's richest investor? Or Donald Trump the biggest real estate developer in New York City? The answer is that they are both passionate about their chosen investment field. You have to be passionate about investing to get the best out of it; you must love the game regardless of whether you win or lose. Never invest in something you are not passionate about; you will only end up with heartache.

3. Invest in something you are willing to learn through

Life is a teacher; the more we live, the more we learn. The only thing constant in life is change and in the world of investing; such change occur very rapidly. Now how do you stay in control when the tidal wave of change comes? How can your investment strategy stay relevant in times of change? The answer lies in continuous learning. Investing is like a rapidly flowing river and to stay on course; you have to be on the edge, ever ready to learn. Never invest in something you hate learning about; no matter how lucrative it may be. If you find reading annual reports boring; or you hate charts, math, calculations and all the jargons associated with technical analysis. Then stay away from stocks. If you hate fixing toilets; then stay away from real estate or better still, partner with someone who loves fixing toilets. The lesson I am trying to emphasize here is this: never invest in something you are not willing to learn through; period.

4. Invest in something you are willing to stick with

For everything there is a season. Business and investing has its good time and bad time; highs and lows. If you are not persistent enough, you will give up. So before you commit your money to any business idea or investment; be sure you are prepared to follow it through to the end, which might lead you to either losing your money or making some profit. Never invest in something you are not willing to stick your neck with; never put your money in something you are not willing to hold.

5. Invest in something you have control over

Lastly, control is one of the most important criteria every successful investor looks out for in an investment. Never lose control of your investment because control is essential to risk management. The reason I chose building a business as my best investment opportunity is because I have absolute control over it. I can increase my sales, control my cash flow, reduce my expenses, adjust my liquidity ratio, and sell the business or hold. I equally know the necessary buttons to press to increase the value of my business if ever I decide to sell any if any part of my business breaks down; I know what to do. That's the power of control. I know a lot of investors who have conceded their power of control to stockbrokers, fund managers, financial advisors and analysts. Don't do the same.

As a final note, these are the five factors I feel are most important to cross check before sinking your hard earned cash into any investment. Never fall in love with an investment opportunity without first considering these factors because they are fundamental to sound investing and wealth building. Ignore them at your own peril.

And just before I drop my pen, if you need Expert Investment Advice on How to Start Investing in stocks, real estate, commodities, etc; please feel free to visit our blog. We also provide free tips and strategies on Investing for Beginners.

Immigration Investment For a Green Card

Immigration investment is a popular means of getting a Green Card. This visa, also known as the EB-5 Green Card visa, enables you to live permanently and work anywhere in the USA of your choosing, and it can take up to ten years to attain unless you make an investment in one of the USCIS Regional Centers approved by the U.S. Citizenship and Immigration Service.

Holding this visa enables you to make an application for American citizenship after five years, so if you are able to make the immigration investment required then it is well worth doing so. You could be a full American citizen with a U.S. passport within 6 years of making your immigration investment.

It is important to understand that it is an investment and not a payment. You are not buying the visa, but investing in the regional center to enable its development and are being awarded the visa as appreciation for helping the USA to develop and create jobs in areas that need it.

Here are some factors that you should be aware of before deciding to apply for your green card visa using this route.

The Immigration Investment Needed

The investment you have to make is officially known as the EB-5 investment, and involves you investing a minimum of $500,000 in an approved regional center as described above. At the moment there are around 100 of these centers in the USA, and each is run as a private company in which your investment can increase or drop in value. After you have made the investment you will normally be provided with the visa within 6-12 months. You can apply for U.S. citizenship five years later.

The reason for the investment is to develop and regenerate the region in which you are investing. Part of this development is the generation of jobs, and your investment must generate at least 10 jobs in the region. These jobs must also last for at least two years, and while most investments are secure in this respect, you are investing in what is basically a private business and so there are risks involved. That is one reason why it is essential that you seek expert advice before parting with your money.

Many of those that offer this advice will be associated with the regional center concerned, so keep in mind the amount of money involved. Only 100 applicants for any one regional center involves $50 million, and that is a great deal of money. That is also 50 million incentives to persuade you to invest in their center! 100 applicants also involves the creation of 1000 jobs for at least two years and if that doesn't happen then you will have problems.

The Need for Good Advice

You need good advice that is independent of the regional center in which you are investing. First you should check out the job-creation method of any regional center project in which you are considering making your investment. That is the major qualifying condition other than the investment itself. Don't worry about the return on your investment or interest paid - it is job creation that will decide whether or not you are permitted to live permanently in the USA, and if that is your primary objective then that should also be your primary concern.

Each regional center will be competing strongly for your money, not only because of the actual money involved, but also because some centers may have cash commitments already made in anticipation of your investment and now need the funds to meet these commitments. If you have little understanding of the system, then you are liable to be given advice that is less aimed at helping you than making sure you invest in their regional center regardless of the jobs your money might create.

Investment Targets and Jobs

Although job creation is absolutely essential to you, there are other factors to consider. A major one of these is how long it might take for the full immigration investment required in the region to be met.

Your investment can rise or fall just as any other, and you are not guaranteed to get the full amount back. The record of the center in which you might invest is an important factor, as also is any say you have in managing your investment. You will likely find that, like most investments, you will have no say in how your investment is used or managed.

You should also ask about the implications should the 10 jobs from your immigration investment not materialize. What if 100 people invest and only 999 jobs are created, for example? What if 1000 jobs are created and only 999 last 2 years? These are aspects of your investment you should be aware of before parting with your money.

Some centers will have excellent records, with respect to both job creation and return of your investment, while others will not and yet more will be newly appointed regional centers and hence something of a dark horse. What do you do? Who do you ask for advice that has no vested interest in the center?

Independent Advice is Critical

This is where you must find a good independent Green Card Visa advisor and take their advice. Listen to that advice carefully, and if no negatives are discussed be very wary of the investment you are considering making. Every investment has some negative aspects to it of which genuine impartial advisors will make you aware. Make sure that you get answers to all of your questions because while this might seem a good way to get a quick permanent residency visa, if you make the wrong investment decision it could hold you back many years.

Your immigration investment for a Green Card Visa should be made only when you are certain that the advice you have received appears genuine and you are certain that the center and the company managing it can keep their part of the agreement. Normally this will be the case but there are cases where it is not, and you must make sure that you are not disadvantaged in that respect by selecting the wrong advisor.

Information on the EB-5 green card visa and American citizenship is available on http://www.whicheb5.com where you will also find independent advice on the Green Card Investment Visa and the application process for it.

How to Invest Informed

To learn to invest informed and learn how to invest with confidence most people should break the subject down into two parts: investment basics and investing. By tackling topics or articles in the following order you can learn how to invest money as an informed investor without wasting too much time and effort.

First get a handle on basic financial concepts, terms and investment basics. Every investment in the world can be evaluated based on just a few simple characteristics. Don't invest money in anything until you know if it fits YOUR needs for such things as safety, liquidity, growth, and income. Only if you invest informed can you avoid the costly mistakes that are caused by picking an investment that's not right for you.

Then, as a basic investment guide, focus on stocks and bonds because this is where you are most likely to invest money in the future. Once you have a handle on these securities, its time to get familiar with investment markets and how to invest in them. If you don't understand the stock market, for example, your knowledge of stocks (equities) is of little value in the real world of investing.

Learning all about mutual funds should be your next step and shouldn't be difficult now that you know stocks and bonds. After all, these securities are where most mutual funds invest money for their investors. And mutual funds are where most investors invest money in stocks and bonds in 401k plans, IRAs and other accounts. There are thousands of funds to choose from but 99% of them fall into 1 of 4 general categories.

You should also get familiar with other investments like money market securities and annuities before you move from the INVESTMENT GUIDE phase of your education to the INVESTING GUIDE segment. In other words, before you can learn to invest informed you'll need a clear understanding of all of your major investment options and how they compare in terms of their basic investment characteristics. This is not as difficult as it sounds since the universe of investments can be condensed into only 4 different categories or asset classes: cash equivalents (safe, liquid investments), bonds, stocks, and alternative investments.

Investing is the art of putting an investment strategy together and managing your money at a level of risk that's within your comfort level. Once you understand the investment end of things you need a game plan in the form of a complete investment strategy. Asset allocation is the single most important part of any strategy; and your portfolio asset allocation over time will be the main thing that determines your success or failure as an investor. Concentrate on learning asset allocation: how to invest money (in what proportion) across the 4 asset classes mentioned above.

Now you'll also want to learn to apply various investing strategies or tools to help offset risk while earning higher than average investment returns. The two important things to understand when you get started in the learning process are the following. Learning how to invest is easier than you think if you take the subject one step at a time in a logical sequence. Second, learning to invest informed is actually a two step process: learn investment basics, and then learn investing.

Don't get discouraged if you don't understand something in an investing article you are reading. Back up and search for another article that covers the topic or area that confused you. For example, if you are confused by an article on bond funds it's probably because you don't understand bonds in general. Most people don't. Most people don't get much out of an adventure novel, either, if they start reading on page 47.

Take fear and anxiety out of investing. Learn to invest informed.

A retired financial planner, James Leitz has an MBA (finance) and 35 years of investing experience. For 20 years he advised individual investors, working directly with them helping them to reach their financial goals.

Jim is the author of a complete investor guide, Invest Informed, designed for average investors or would-be investors of all levels of financial background and experience. To learn more about investments and investing and his new financial guide go to http://www.investinformed.com.

Investing Today

There's no doubt about it. Investing is tough today. As a new investor I once read that "today is always the hardest time to invest money". Well, with today's investment options personal investing is no walk in the park. Are there ANY investment opportunities out there?

There are basically four asset classes or investment options. Let's see where we might want to invest money, and where we might want to lighten up. We start by looking for safe liquid investments like savings alternatives and cash equivalents. Short-term CDs, savings accounts, and money market accounts at the bank are paying less than 1%; and money market securities (like T-bills) and money market funds are paying even less. No investment opportunities here, but a safe place to invest money.

Our second category of investment options is bonds. The average new investor might own bond funds, but unfortunately knows little about them. When you invest money here you earn more interest than above, but you give up the high safety. With interest rates at or near all-time lows you do not want to invest money heavily here, because when interest rates go UP the value of a bond investment will go DOWN.

Stocks (often called equities) are where most investors invest money to earn higher returns and get real growth. In a questionable economy like today's a blanket bet on the good old U.S. stock market is riskier than usual. In 2009 stocks were up 60% in a matter of months in anticipation of better times ahead. If good times don't develop, look out below!

You can make money investing in stocks in just about any market because there are always at least a few investment opportunities out there. That said, the odds of a new investor finding them are about nil - unless he or she knows what to look for. When the stock market falls the vast majority of stocks go with it. This brings us to the last of our investment options, alternative investments.

When you invest money outside of the box you are searching for investment opportunities that do not fit into one of our first three categories... alternative investments. With the exception of real estate, the new investor rarely ventures here. Over the past few years professional money managers have paid more attention to these less traditional investments in search of investment opportunities.

In theory, there is always a good investment somewhere. And the world of investing is full of investment options, from aluminum to zinc. To mention a few: real estate, oil, gold & silver, copper, other commodities, currencies, and foreign securities. The good news is that the average investor can invest in these alternative investments by simply owning stocks and mutual funds.

Investing today requires that you pay attention to the trends in various sectors and industries. When the stock market heads south some industry sectors or specialized areas buck the general trend. If gold prices soar gold stocks and gold funds go along for the ride. When basic materials prices or the price of oil goes up, stocks and mutual funds in or invested in those sectors generally follow suit. In a bad U.S. stock market some foreign markets manage to prosper.

Investing today is a challenge as uncertainty remains high. Don't avoid safe investments just because interest rates are low, and don't rely heavily on U.S. stocks and bonds. Get familiar with alternative investments. Spread your wings and diversify.

A retired financial planner, James Leitz has an MBA (finance) and 35 years of investing experience. For 20 years he advised individual investors, working directly with them helping them to reach their financial goals. Jim is the author of a complete investor guide, Invest Informed, designed for average investors or would-be investors of all levels of financial background and experience. To learn more about investments and investing and his new financial guide go to http://www.investinformed.com.

Investing - Does Every Type of Investing Suit Everyone?

Various investment strategies available in the world of investing can be split into three broad categories. Once you go through these strategies it helps you in deciding which form or combination of forms will be best suited for you. Here are those three forms of investing with their pros and cons.

Passive Investing: In this form of investing, decision making for the investment is in others' hands. The ideal one for this job is an expert investment manager. The big advantage in this method of investment is you don't require investment expertise. You need to invest only money not time. The disadvantages are you don't have control over your money for investing and the returns for such investments are uninspiring. Government bonds, savings accounts, mutual funds and property trusts are few common example of passive investing. These passive investments have some tax concessions that vary from country to country. People generally invest for retirement in passive investing.

Active Investing: In this form of investing you have to actively manage the investment. This type of investing is for long term as well as short term. Buy and hold shares are a long term investment while futures trading are a short term investment. To be successful in active investing, thorough knowledge about the various investment plans to be used is essential. The basic principles like timing to collect profits, cut losses and ways to analyze market are of utmost importance.

Larger control over the investments and higher profit potential are the advantages of active investing. Devoting more time and to have more skills in managing your investments are the disadvantages of active investing. When compared with passive investing, the chances of making loss are also higher. Investment in shares, futures, currency trading and property trading are the common examples in this category of investing.

Creative Investing: This type of investing requires huge amount of skill and experience. If you have them no one can stop you from making huge profits. It is all about turning your thoughts into money. Someone has rightly said those who have imagination can earn a lot. If you are a property developer you can put all imaginative ideas into the property to be developed to get ultimate out of it in terms of money.

Creative investing is the one which has highest profit potential along with maximum degree of flexibility and control. The drawbacks of this type of investing is you require specialized knowledge, the amount of money involved is huge and the chances of making large losses is high if things don't move n the right direction. New product development and its marketing, property development, and renovation in properties are some common examples of creative investing.

Once you have the basic idea of all three categories of investing it is time to consider your knowledge and skills along with your strength and weaknesses to judge which form of investing is best suited for you as per your requirements.

Do visit Irsan's latest website at soleus air conditioner [http://www.soleusairconditioner.com] which contains the best prices on casement window air conditioner [http://soleusairconditioner.com/casement_window_air_conditioner.html] and other information about air conditioners.

Should You Invest Money in Mutual Funds For 2011 and Beyond?

If you want to invest money for a better future and don't want to constantly monitor your money, 2011 is as good a time as ever to invest money in funds. In fact, mutual funds offer most people the best investment options out there because they do the day-to-day money management for you. In the simplest of terms, here are some tips to help you invest money and find the best funds to keep yourself out of trouble in 2011 and beyond.

Keep in mind that you don't invest in mutual funds to speculate in stocks and bonds. You invest in them because funds were designed as a way for millions of average folks to get a piece of the action in stocks and bonds with professional money managers making the investment decisions. Your job is to simply decide how much money to invest in each of the 3 basic types of funds, and then to pick the best investment options or funds in each area to fit your risk profile. Here are some tips, because 2011 and beyond could be a little tricky.

In order to really make your money grow over the years you need to invest in stocks. The average person's best investment options in this department are equity (stock) funds. Equity funds range from aggressive growth funds that pay zip in dividends but can go up like a rocket in good economic times... to blue-chip equity-income funds that invest your money in large corporations that pay steady dividends with milder fluctuations in stock price. Since the higher a stock (fund) price soars the harder it falls, for 2011 and beyond I'd invest my stock money with the more conservative equity-income funds. It's nice to get a 2% or 3% yearly dividend when you can hardly find 1% at the bank.

The second basic type of mutual funds is bond funds, and for 98% of the people they represent the best investment options for putting money into bonds. Millions of Americans invest money in bond funds, but few understand bonds, which is what these funds invest your money in. Here we keep it simple and go to the bottom line. If you want details, I've got a number of bond articles that go there. Simply said, you should invest money in bonds (funds) because they pay higher interest income than you can get elsewhere, and tend to balance out your overall investment portfolio.

Traditionally, bond funds can offset some losses from stock investments because they have often tended to be one of the best investment options when stocks were out of favor and in the dumps. In the bond department you can be aggressive or more conservative as well. For 2011 and beyond I would suggest you go conservative again because our economy and interest rate situation are precarious at best. Interest rates are near record lows and have been falling since the early 1980s. The economy is still struggling to grow with high unemployment.

What this means to you when you invest money in bond funds: when interest rates head back UP, SOME bond funds won't be your best investment options. But remember, you need to invest money and keep it invested for the longer-term. You are not trying to speculate, but still need some money in these funds for balance. Your best investment in the bond department for 2011 and beyond: intermediate-term bond funds vs. long-term funds. The latter are too risky and will get burnt when interest rates go back up.

That takes us to the third and last of the basic investment options for funds and investing in general. Money market funds are very safe investments and pay interest income based on prevailing interest rates, which were historically low heading into 2011. Don't avoid these safe investments because they have one redeeming characteristic other than safety: when rates go back up the interest they will pay will automatically follow suit.

So, yes you should invest money in mutual funds, now and in the future. The year 2011 will present challenges, but where else can you invest in stocks and bonds with professional money management working for you at a modest cost? Your objective should be to invest money and make the best of it. Your best investment options as an average investor haven't basically changed much in over the past 40 or so years. You just need to focus on where to invest your money in funds so you can stay out of serious trouble when times are rough. Over the longer term, that's the best you can do as an investor.

A retired financial planner, James Leitz has an MBA (finance) and 35 years of investing experience. For 20 years he advised individual investors, working directly with them helping them to reach their financial goals.

Jim is the author of a complete investor guide, Invest Informed, designed for average investors or would-be investors of all levels of financial background and experience. To learn more about investments and investing and his new financial guide go to http://www.investinformed.com.

The Best Investment Guide

The best investment guide would cover investment options and investment strategy. This investment guide would be complete and start with basic financial concepts and expand to include the entire universe of investments. That's a tall order, so let's just start with a simple version, and talk about all of the investments in the world in plain English.

Your best investment is a good, complete investment guide. I've been tuned in to the world of investing for 35 years and have read over 100 books on investments and investing. Most of them center on the stock market or some form of investment technique or get-rich-quick scheme. Many are time sensitive and out of date by the time you read them. Many tell you how to invest money like the author did when he made his millions.

What you seldom get with an investment guide or book is an understanding of investment basics and a simplified blueprint of your many investment options. So, here's your simplest and free best investment guide to all of the investments in the world. There are only 4 different investments or asset classes out there depending on how you categorize things. Once you bring it down to this level you have a basic framework to work with.

CASH EQUIVALENTS and other safe investments pay interest. Either your principal or rate of interest is fixed for a period of time. Examples include U.S. Treasury bills, money market mutual funds and bank savings accounts. Advantages include high liquidity (access to your money) and safety, low risk.

BONDS are long-term debt instruments and they pay more interest income than the above. Examples include U.S. Treasury bonds, corporate bonds and bond funds of various types. Advantages include relatively high interest income with a moderate level of risk.

EQUITIES or STOCKS represent ownership in a corporation. Examples include blue chip stocks, growth stocks and equity funds. Advantages include ample liquidity, growth and some income in the form of dividends. Risk is significant and profit potential is high.

ALTERNATIVE INVESTMENTS is our final category. Examples include real estate, gold, and foreign investments. Advantages include high profit potential and an alternative to stocks when they are out of favor. Risk can be significant here as well.

That's about as simple as an investment guide can get. All investment options can be fit into one of these asset classes. The important thing is that you have a perspective, and that you understand the investment characteristics of any investment before you invest money. For example, someone pitches an investment to you. Where does it fit in our above format?

How does it rate in terms of: safety, liquidity, growth and profit potential, income provided and risk? All investment options can be and should be rated in terms of the above to assure that they fit your needs and risk profile.

If you learn how to invest you'll have a means of supporting yourself for the rest of your life. Once you have a sound understanding of investment basics you've built a great foundation for learning how to invest. The best investment guide would cover both.

A retired financial planner, James Leitz has an MBA (finance) and 35 years of investing experience. For 20 years he advised individual investors, working directly with them helping them to reach their financial goals.

Jim is the author of a complete investor guide, Invest Informed, designed for average investors or would-be investors of all levels of financial background and experience. To learn more about investments and investing and his new financial guide go to http://www.investinformed.com.

Socially Responsible Forestry Investment Opportunity (IRR - ~20+% PA)

Disclaimer

Present review has been based on available documents and written with the intention of giving a comprehensive introduction. However, it shall not be deemed as an official offer-it is solely for information purposes.

Short Summary

Socially responsible 5-8-year forestry/green energy investment opportunity with estimated IRR of ~20.00+%. Forest planted, grown, harvested; then timber turned into charcoal, charcoal sold to steel factories.

This investment is FOR YOU if you...

think bank deposits don't provide satisfactory returns;

like the idea of having tangible assets at the core of your investment;

prefer to obtain outstanding returns even if the exact investment period and rates of return cannot be exactly specified upfront;

think social responsibility and sustainability are important factors in investing. This investment is NOT FOR YOU if you...

are satisfied with returns offered by bank deposits;

prefer speculative investments to investing in hard assets;

wish to invest for a term shorter than 5 years;

do want to have outstanding returns but with a fixed investment period;

don't think investments are supposed to be concerned about social responsibility and sustainability. Major Characteristics

Currency: Euro

Investment Minimum: ~7.7 thousand Euros

Investment Optimum: from 58 thousand Euros

Investment Period: 5-8 years (estimated 7 years)

Return: varied; estimated @ 20.00+% per annum

(depending on future charcoal sales)

Opportunity Type: to be subscribed

Selling before maturity: possible & flexible Analysis

Timber is a precious commodity. It has been used in all over the world by uncorrelated sectors (i.e. construction industry, paper industry, furniture-making, energy production etc.). Even if timber prices were unchanged throughout the lifespan of a commercial forest plantation, trees would still have the great attribute to grow with relatively little human input and expenditure, and together with the trees invested funds could grow as well.

Standing timber has special value during hard times because timber owners can withhold the forest if they find timber prices too low. There is no extra cost of storage and timber value increases. The value of timber is even higher if it is not sold as timber but turned into charcoal and then it is sold to steel plants. Charcoal is considered green energy.

According to the Nature Conservancy, originally well over 15 million km2 of tropical rainforest existed worldwide. As a result of deforestation, only about 6.5 million km2 remain, therefore the role of sustainable forestry has significantly increased.

In this investment opportunity perspective investors are offered to buy into timber on professionally managed forest plantations of one of the fastest growing tree species of the world. The yield of these plantations are highest worldwide for that given tree species. The investment period is for about 7 years; afterwards the timber is harvested, turned into charcoal and sold to regional steel plants.

Profit is thus generated by charcoal sales. Local national legislation has in fact made it mandatory for steel plants to only use charcoal. As this is one of the fastest growing economies of the world-and the steel industry has especially high potential in the country-, there is a solid base for future local charcoal consumption.

Strengths

Duration and Return

Compared to typical forestry investment durations the estimated 7-year investment period is good.

The investment return is influenced by two major factors: charcoal sales price and the local currency to Euro conversion rate at the time of selling. Let's take a look at three theoretical scenarios-an estimated worst case, a conservative and a positive outlook.

If the charcoal sales price dropped 10 percent* while the Euro strengthened 50 percent* against the local currency (both of them a negative effect for future gains), net returns** would range between 3.61 and 5.17 percent per annum (compound interest; lot sizes from minimum 2.5 hectares to 20 hectares). In this case the minimum investment of 7700 Euros would increase to 9870 Euros, the optimum investment of 58,000 Euros (20 hectares) would increase to 82,541 Euros.***

If both the sales price and the conversion rate remained the same*, net returns** would range between 13.39 and 14.13 percent per annum (compound interest; lot sizes from minimum 2.5 hectares to 20 hectares). In this case the minimum investment of 7700 Euros would increase to 18,557 Euros, the optimum investment of 58,000 Euros (20 hectares) would increase to 146,294 Euros.***

If charcoal sales prices increased by 40 percent* over the 7-year investment period and the conversion rate remained the same*, net returns** would range between 20.03 and 21.30 percent per annum (compound interest; lot sizes from minimum 2.5 hectares to 20 hectares). In this case the minimum investment of 7700 Euros would increase to 27,639 Euros, the optimum investment of 58,000 Euros (20 hectares) would increase to 224,106 Euros.***

*Compared to levels at the time of investment.

**Company service fees deducted (only applies if gross annual return reaches or exceeds 8 percent); inflation not

considered.

***Over the estimated investment period of 7 years; calculated with an average timber yield assessed by an independent expert.

Forest Replant Warranty

All investment opportunities have associated risk factors (see below). The management company uses modern forestry management techniques to prevent any crop loss. However, if within the investment term the forestry crop does fail for whatever reason, the management company will replant the area free of charge. Any lumber that can be salvaged will be sold and 90 percent of the gains will be returned to the investor.

Low Costs

All general costs are covered by the initial investment amount-no further maintenance fees are to be paid by the investor. The management company will deduct a service fee on gross overall gains at the time of closing the investment if annual returns reach or exceed 8 percent per annum. These performance fees are already deducted in the calculations of the scenarios above.

Site Visit

The investor or the investor's employee is allowed to visit the plantation.

Risks and Weaknesses

Biological and Natural Risks

Fires - the first and greatest risk factor that comes into mind about forestry is fire. According to the United States Department of Agriculture, forest management significantly decreases the risk of forest fires (from about 0.50 percent to about 0.30 percent in North America).

Pests and diseases - there are a few well known pests and diseases that can affect the crops especially in the early years. The forest management teams know exactly what to look out for to minimize the risk of these pests spreading and how to treat any problems as soon as they occur.

Water and drought - water is a vital resource in some areas that do not receive enough yearly rainfall and it is the first consideration when constructing a new forestry plantation within hotter areas. The management firm makes sure that there is always enough water being pumped into these areas to support effective growth.

If within the investment term the forestry crop does fail for whatever reason, the management company will replant the area free of charge. Any lumber that can be salvaged will be sold and 90 percent of the gains will be returned to the investor.

Currency Exchange Rate

The investment is made in Euros while the project is running-charcoal is sold-in the local currency of the managed forestry. This means that the final gain for the investor will be affected by the future currency exchange rate of these currencies.

Three outcomes are possible: either the rate remains practically the same or the Euro will either strengthen or weaken against the local currency. In our case if Euro strengthens against the local currency, financial gains in Euro decrease. If Euro weakens against the local currency, gains in Euro increase.

In the long run currencies strengthen or weaken against each other on the basis of their respective economic performance. This is promising for this investment because the local economy is one of the best performing economies in the world with bright outlook for the future while the eurozone has lately been facing great challenges because of the very wide spectrum of economic performance of its participating countries. This fact allows us to suppose that it is possible but quite unlikely that Euro would considerably strengthen against the local currency in the investment period.

Price Collapse

The end product of contracted services is charcoal made of eucalyptus. Local national legislation has restricted steel plants to exclusively use charcoal in steel production.

An official publication reports that a new investment of iron and steel industry is under way resulting from a partnership of multinational corporations to build manufacturing plant of seamless tubes based exclusively on charcoal consumption from planted forests, with production to be started in 2016. This is a good example of the dynamically expanding demand for charcoal in the domestic market.

It is highly unlikely that under such circumstances we would see any significant drop in charcoal prices.

Liquidation

While the plantation land is owned by the management company, the trees grown on the land are owned by the investor. This means that should the management company happen to go into liquidation for any reason, timber can still be sold and proceeds collected by the investor.

Liquidity

The investor has freedom to control and sell the forestry investment and reinvest at any time with fully flexible transferable deeds. As the leaseholder of the land and timber, the investor is also the certified owner of the trees. The investor is entitled to sell the forestry investment to any third party.

Contact

If you would like to invest in and/or need further details about the above opportunity, please, don't hesitate to contact me by email at the address above (top).

Bob Makovei
Independent Financial Advisor
Wise Investing
High-Yielding Sociall Responsible Investments
info@wisenvst.com
http://wisenvst.com
http://wp.me/pN7sN-1i

Investment Options - Is Your Advisor Giving You the Information Needed to Succeed?

How soon would you want to know if your investment advisor wasn't telling you about the three major investment types? If you've only heard of two - Variable and Fixed, then you may have a problem.

Unfortunately, many investment advisors routinely fail to present all three types: Variable, Fixed, and Indexed as valid investment choices to their clients. This is normally because they are unable to offer all three options or they have a personal dislike for one or more of these investment types.

So what is the difference in these investment types and what do the terms mean? The simplest answer is that these terms define how interest is earned on your investment. More specifically, it tells you how your money is invested and if your money is protected from market fluctuations. Let's take a look at these various investment options.

Variable

A Variable investment is one where your money is typically invested in stocks or mutual funds. The performance of these stocks or funds varies and is not guaranteed - hence the term "variable investment." Variable investments have many key benefits. They allow you to earn interest by investing in a single company (individual stock), multiple companies, or a specific segment of the market (mutual funds). You can even invest in an entire Index like the Dow Jones or S&P 500. Also, variable investments allow for the greatest return and historically have outpaced all other investment options.

Sounds pretty good, right? It is, as long as you have the tolerance to lose money as well. The volatility of variable investments is a major concern for many investors. The "upside" or growth potential is nearly unlimited, unfortunately so is the "downside" or risk of losing money.

One other adverse factor that Variable investments face is the cost. Most have either fees or loads associated with the underlying investments. These fees or loads can reduce the performance by as much as 3.5%, although 1-2% is more common. These fees or loads are applied even in down years so it is definitely something to consider.

Fixed

A Fixed investment offers a pre-determined or fixed interest rate for a specified period. This is most commonly seen with bonds, CD's, annuities and universal life insurance products.

Fixed investments have three major advantages over the other options. First, they provide a guaranteed or known interest rate that is disclosed prior to making your investment. Second, fixed investments are generally designed to protect your initial or principal investment.

A Fixed investment also has two major pitfalls. First, because they provide a known or guaranteed interest rate, they generally provide a lower rate than what may be available when you're willing to risk your principal. Second, they normally have restrictions or penalties associated with any withdrawals made during the fixed interest rates term period. This is especially true with CD's and annuities.

Overall, Fixed investments can be a great option for those not willing to risk some or all of their money, older clients using the investment interest to provide or supplement their income, and clients looking to provide a hedge against other, more aggressive investments.

Indexed

Unlike Fixed and Variable investments, Indexed investments are somewhat unique to the insurance and annuity marketplaces. An Indexed investment shares traits of both Fixed and Variable investments, but with one major difference - how interest is earned.

With an Indexed investment the underlying funds are not directly invested in the stock market or an Index, nor are they directly invested in a bond, CD, or other fixed investment. They are however, secured by bonds or other conservative investments which provide a minimum guaranteed interest rate similar to a fixed investment.

Generally, this minimum or fixed rate is lower than what is available in a purely fixed product. This is because Indexed products offer a higher maximum interest rate over Fixed investment products. The Indexed products determine the maximum interest earned using a formula based on three factors, all part of an option purchased by the insurance or investment company. They are the participation rate, the cap rate, and the reset period.

The maximum interest earned provides "upside" potential while at the same time eliminating "downside" risk. In essence, it is like having the growth potential of a Variable investment with the "downside" protection of a Fixed investment. There is however a trade-off.

An option, sometimes referred to as a call or put option, provides investment returns (interest earned) based on the growth of a specific market Index like the S&P 500 or Dow Jones. The option allows for lower initial costs, a pre-determined strategy for establishing current and future interest crediting, and ensures that money can't be lost due to market fluctuations. The option also caps (limits) upside potential or growth.

Many opponents of Indexed investments point to this limiting of growth, especially in years were the Index or stock market exceeds the Index (option) cap or participation rates, as the Achilles heel of these products. There is also some controversy over the way the Index rate is determined in future years.

While Indexed products do have a minimum cap and participation rate that is known for the entire term period, the current or maximum cap and participation rates normally reset on an annual basis. This makes it difficult to determine what will happen in subsequent years. Some advisors avoid these products claiming that the difference between the current and minimum rates creates client confusion.

No matter which type of investment you choose, it is important to get the facts and options available for each. Each of the investment choices outlines provides different advantages that need to be weighed against their disadvantages, however they all have different uses and can all be viable choices when planning your financial future. As always, it is important to consult your "Financial Professional" to find out which of these investment choices is right for you.

Ryan Pinney is a Financial Professional, educator, and writer for the financial education website http://www.TheProAdvisor.com and a Brokerage Director with Pinney Insurance Center, Inc - http://www.PinneyInsurance.com .

Ryan has written many articles on insurance, investing, estate planning, and taxation and his firm, Pinney Insurance, is one of the nation's largest and most respected providers of insurance and investment products with 6 offices and over 4,000 licensed insurance agents and investment advisors across the country.

Investment Guide - How To Become A Rich Investor

The act of investing in, or spending money, time and effort on a business or some other things, in hope of making a profit, best defines investment. It could be Real Estate, Mutual Funds, Stocks, Foreign Exchange etc. Whatever it is, there are rules and guides to achieving success in investments, which, when adhered to, result in achieving much greater heights of success.

Considering the huge amount of risks associated with most investments, it is of vital importance, to know the rules and guides first, irrespective of one's financial status, before one could engage oneself in an investment of any kind whatsoever, in order not to be an object of pity, due to a mistake, of not going by the rules.

According to experts, the Securities And Exchange Commission (SEC) of the United States, defines an individual as an Average Investor if the individual has $200,000 or more in annual income, $300,000 or more in annual income as a couple, or $1 Million or more in net worth. This established requirements by the SEC is to protect the average investor from some of the worst and most risky investments in the world. These investor requirements also protect the average investor from some of the best investments in the world, which is one major reason why, one has to be just more than an average investor.

In as much as there are millions of desirous investors that fall below average investors, it would be unfair and discouraging, to always mention of Average and Rich Investors without the poor investors, each time matters of investments arise. After all, both started from the scratch. A gradual process that metamorphosed them into becoming what they are today. One does not have to worry himself, provided there's life, there's hope for the common man and lots of investment opportunities ahead. Hence, starting out in an investment with a minimal affordable capital, is highly recommended for the poor investor, and with prudence, little efforts, time, hope, faith and patience, desired goals would be achieved.

The most important thing in investments is, one's mindset. The mentally preparedness to cope with the great task associated with investments. Nothing good comes so easy in life! One has to ask oneself, a few important questions before embarking on a journey to investments. These questions are:

1. Am I really determined to start out in an investment?

2. What type of investment is suitable for me?

3. How much capital do I have to start out in an investment?

4. Should I invest solely or jointly?

5. How much is my risk appetite?

When one answers these questions correctly and still has desire to forge ahead in investing his money in an investment, then, he's qualified for the next stage of success towards investment.

The type of investment that suites one, is totally dependent on the already existing investment types- Real Estate, Mutual Funds, Stocks, Foreign Exchange etc., the amount of one's capital, and one's special interest in specific investment types. All this put together, constitutes a guide to enabling him know exactly the investment type that suites him.

The amount of capital needed to start an investment depends on individuality, and the nature of the investment. Capital, shouldn't be a major issue here, as there are investments- stocks, one can invest in with a couple of cents. Hence, capital is virtually irrelevant, when considering penny stocks. And should never be a discouragement from investing one's money in an investment.

Investing solely or jointly is totally one's choice to make. Both investments exist. As a beginner, investing jointly is highly recommended. Considering the inherent risks in investments, which will always be shared, as it would, for the profit, amongst the investors according to individual's amount invested, is ideally suitable for a good start. However, investing solely, is beneficial too. Even more beneficial, provided one has all it takes to stomach the risks in one-man investments. The investment profits from investing solely, will never be shared with anybody other than the sole investor, who takes it all. Hence, the decision is left for one to make, considering suitability and convenience.

Though tremendous amount of risks are involved in most investments. The larger the capital invested, the larger the probable risks. Also, the larger the capital invested, the larger the probable investment profits depending on one's approach to investment. It's a matter of proportionality. The opportunity of becoming a Rich, Average, or Poor Investor lies directly at one's door step. This is the final stage and guide towards a greater change in one's financial status depending on one's risk appetite. Hence, a bold step together with strict adherence to the rules and guides stipulated in this article, becoming a rich investor is guaranteed.

Alfred C. Amaechi is an expert in Investment Income Analysis. He has been in this business for close to a decade and has authored many books on Investment Income Guide. His expertise in this field shot him to fame for his ability in guiding potential investors to the rightful track to success. Do want to be earning high residual income? Visit [http://www.homebizglobe.com] for a comprehensive information and FREE e-books on guide to investing in businesses that yield high residual income.

Investment Tips Based on Moon Sign for Diwali 2010

"Diwali" (Deepavali) will be celebrated in India on the 5th November 2010 (Vikram Samvat 2067). The day of Diwali is auspicious for every Hindu but it is more important for business and business community. People take various investment decisions on this day. The attempt of this article is to help investors take informed investment decisions based on their Moon signs.

Aries:

Arians should avoid taking rash decisions concerning investment. Speculation should be avoided generally. Property investment may give positive results. Special care should be taken before entering into any contract and signing any document. Some Arians may gain from abroad. Investment in shares of good companies may also be considered.

Taurus:

Natives of Taurus should exercise extreme caution while investing in property. It may be advisable to go through the history of land or builder before taking any investment decision. There may be gains from stocks if investors go by fundamentals. Greed should be avoided and investment should be made on sound analysis. Ideal investment may be government bonds, IPO's and mutual funds. Risk free investment is better option.

Gemini:

The Gemini people may invest in property for long-term for real gains. If the idea is to gain quickly, this may become a cause for loss. The natives are advised to remain careful while taking loans. They may fall into some kind of debt trap if prudence is not exercised in managing debts and investments. The focus of investment should be on the shares of good companies. Investment in gold may also payoff in the long run.

Cancer:

Speculative gain is possible from stock market if it is done with caution. Investment should be made on good companies. Care is necessary for investment in property. It is not wise to be overambitious with respect to future price rise of property. Shares or mutual funds may be good option. Gossip and hearsay should be avoided while taking investment decision. Investment in business may also prove to be a good option.

Leo:

Goddess of fortune seems to be kind this year to Leos. Possibility of gain exists in shares, stocks, property and the like. The stars of fortune are smiling and if such fortune is backed by intelligent plans and investment, good money can be made. However, it will be necessary to control nerves and be watchful. Some calculated risks can be taken for extra advantage.

Virgo:

If investment has been made in property, the projects may get delayed. Caution should be taken while making new investment in property. Read the agreements before signing them to find the finer points. Informed investment in stock market, fixed deposits, government bonds and interest bearing securities are better options. In short, it is important to minimize risks.

Libra:

Librans should be extra careful while investing in property. Gains can however be made in commodities market and share market. Planned investment will be better than speculation. Investment in gold may also be done for long-term gains. For investment of any kind, a proper survey of the situation will be beneficial. Possibility of gains from foreign source also exists.

Scorpio:

The time is very good for those who are planning to buy property for personal use. Gains from old property or ancestral property are indicated. Share investment may also give good returns. Stars are favorable with respect to investment right now. However, some calculated risks may be necessary to convert the advantage into material gains. Investment in gold and ornaments can be made for risk free investment.

Sagittarius:

Extreme caution should be exercised in taking investment decisions. It is better to make efforts for maximizing earnings. Invest the hard-earned money in safe instruments like Government bonds, securities, insurance and mutual funds. It is better to avoid speculative investment. Property investment should also be done with due prudence. It is better to seek expert opinion regarding projects in which investment is to be done.

Capricorn:

Time is good for several types of investment. Money can be made from almost every investment, but, investment should not be done with a blind eye. Caution should be exercised with respect to property investments. Delay in delivery of projects may become a matter of concern. There may be some issues with respect to financial liquidity as well. Unnecessary expenses need to be curbed.

Aquarius:

Money can be made from stock market. Speculation and short-term investment may also payoff well. However, informed investment is advisable. Investment in property may also give good returns. Gains from abroad are also indicated. Stars are favorable right now and prudent investments may become rewarding. Yet, caution is advisable while signing contracts and in finalizing deals for long-term.

Pisces:

There may be some career-related issues for natives. Such issues can be overcome with sustained and intelligent efforts. Risky decisions with respect to career and property investment should be avoided. It is better to avoid speculation. Investment in government bonds, securities and fixed deposits may be good investment instruments. Investment in gold can also be made.

Author Biography:

Anand Sagar Pathak is a famous astrologer, who has written a number of articles on various sections of Astrology like Horoscope, Spirituality, Religion, Tarot Card and Angelic Reading and many more. He is master of his skills especially in Astrology Consultation, Astrology Compatibility, Career Astrology, Astrology Charts and Astrology Forecasts etc. At present he is working as a program coordinator at astrosagar.com.

For more information and more articles please visit us at http://www.astrosagar.com

How to Invest Money to Make Money & Avoid Bad Investments

The question is how to invest money to make money. The answer is to invest money only after asking a few questions about investment basics. Here are the questions to ask, and how to invest money to avoid scams and bad deals in general.

How to invest money, rule #1, is that there is no such thing as a perfect investment. A perfect investment would have the following features: guaranteed safe, guaranteed to make money and lots of it, high liquidity, zero costs and expenses, big tax breaks, and easy to monitor... so you always know where you stand financially. All investments can be compared based on investment basics, but no honest proposition contains all of the above features.

A scam will generally IMPLY that safety and high profits are guaranteed. Your first question before you invest money: what are the specific guarantees for safety and investment returns? If the answer you get sounds confusing or misleading, you have no need to ask any more questions. Something is rotten in Denmark, since no investment offers high safety and high profits... except scams. Now, let's move on to some other investment basics and questions to ask. Remember, a large part of knowing how to invest money involves knowing how to avoid bad investments or those that don't fit your needs.

Ask about LIQUIDITY. How quickly and easily can you get your money back if you want to cash in? What will it cost you? This is a very honest question, and the answer you get should be straightforward. You're out to invest money to make money; not to get stuck with a loser that will cost an arm and a leg to liquidate.

The COST OF INVESTING is another investment basic you need to ask about. Most investments involve charges and fees to buy, hold, and/or sell. Many times the details are in the fine print, so make sure to ask upfront. High investment costs can turn a winner into a loser. For example, a good simple fixed annuity will pay a competitive interest rate and will have no charge to invest or hold; and no charges to cash in after just a few years. The wrong annuity contract can cost you 3% or more a year in charges and fees, plus heavy charges if you cash out in the first few years.

Be real careful when an investment promises tax breaks. Ask questions first and get it in writing before you invest money. Then, run it by your tax professional if you have one. If you don't, take a pass. Your goal is to invest money and make money in the process. Not to take a chance and wind up in trouble at tax time.

Our last area of concern in regard to how to invest money and investment basics I refer to as VISIBILITY, or the ability to monitor your investment. After you invest money, then what? Can you track the value of your investment so you know where you stand financially at all times? Will you receive statements each quarter and at the end of each year showing the value of your investment assets?

As a financial planner, some of the worst horror stories of new clients I interviewed were brought to light when I asked to see their records for the investments they held. Sometimes their records or statements were incomplete or otherwise questionable. Sometimes, these investors could find no records at all and didn't know who to contact to find out the status of their investment. That's a perfect example of how to invest... NOT.

Before you invest money, sort out the investment basics covered in this article to avoid scams and other major investment mistakes. Don't be afraid to ask the questions presented here. If you are dealing with honest people, they will be glad to answer your questions. If not, look someplace else.

A retired financial planner, James Leitz has an MBA (finance) and 35 years of investing experience. For 20 years he advised individual investors, working directly with them helping them to reach their financial goals.

Jim is the author of a complete investor guide, Invest Informed, designed for average investors or would-be investors of all levels of financial background and experience. To learn more about investments and investing and his new financial guide go to http://www.investinformed.com.

Can You Invest $100 in Good Investments in 2011?

Yes, you CAN invest small money like $100 in some very good investments in 2011 and in the future under certain circumstances. In fact there are good investments offered by some of the best fund companies that were designed originally for the small investor. Here's how to invest in them.

Whether you invest $100 or $100,000 in 2011 or later, you will need to first open an account. This means that the party you invest money with will incur expenses to open and service your account. Hence, even the best fund companies have a minimum investment policy. A one-time investment of $100 is not attractive or practical for them. However, $100 or MORE a month on an automatic investment plan is another story. I suggest you invest your money in the bank until you have a few thousand in cash reserves. Then, when you can afford $200 or $300 a month... here's how to invest in an assortment of good investments called mutual funds.

Do not feel intimidated by the fact that you can only invest small amounts of money and/or you don't know a lot about where or how to invest. If you start to invest money in 2011 in solid good investments and continue on a monthly basis you're on your way to a better financial future. That's why some of the biggest and best fund companies cater to small investors with an AUTOMATIC INVESTMENT PLAN. Over time small investors can accumulate a substantial sum of money in an IRA account, for example. And the more money you have invested, the more money fund companies make.

You can find some of the lowest cost and best fund companies by searching "no-load funds" on the internet. See what they offer and what their minimum investment is for an automatic investment plan (monthly investments). Then call them up toll-free with any questions you have and ask for a starter kit and info on the funds they offer. I consider the following to be among the biggest and best fund companies: Vanguard, T Rowe Price, Fidelity, and American Century. You can invest money in good investments called mutual funds without paying sales charges or "loads" in any of their no-load funds.

Normally, when you invest by the month fund companies have you fill out a form so they can take money directly out of your bank account. These plans are not contractual with the best fund companies, so you should be able to stop the withdrawals or cash in at will. Now let's look at how to invest for 2011 and beyond if you want a diversified portfolio of good investments with only moderate risk. We'll say you want to invest $100 a month into three different funds with the same fund company.

Invest with $100 going to a general money market fund, $100 to an intermediate-term bond fund, and $100 to a general diversified large-company stock fund. This gives you a balanced portfolio of money market securities, bonds and stocks. You're then good to go with good investments in all three basic asset classes, and overall portfolio risk is only moderate. If you want a tax break when you invest money and accumulating money for retirement is your goal consider an IRA account... IF you qualify based on IRS regulations.

Otherwise, you can simply have an account in your name only or a joint account with your spouse like at the bank. Mutual funds are the original good investments designed for investors who want help managing their money. When you invest money in funds in 2011 and beyond you simply pick the funds and they do the rest. With the best fund companies your total cost to invest can amount to less than 1% a year! Look no further for good investments, year in and year out.

A retired financial planner, James Leitz has an MBA (finance) and 35 years of investing experience. For 20 years he advised individual investors, working directly with them helping them to reach their financial goals.

Jim is the author of a complete investing guide, Invest Informed, designed for average investors or would-be investors of all levels of financial background and experience. To learn more about investments and investing and his new financial guide go to http://www.investinformed.com.