A Store For New Investors

Posted on June 23, 2008
Filed Under Stock Market | Leave a Comment

Financial security is a growing concern with many American adults. As the cost of living rises and college tuitions gain strength, it is quickly becoming more important than ever to put away some money for your children’s education, an earlier retirement or a little something special. It is increasingly necessary to prepare for your financial future. With social security on dangerous ground and retirement programs that don’t quite measure up, consumers are turning to investing in stocks as a means of preparing for the future. The Mutual Fund Store is a testament to the times by offering mutual fund investing in easy to navigate format.

The Mutual Fund Store is an investment management firm that charges fees and specializes in the investing of mutual funds. They have more than 50 franchises throughout the U.S. and offer entrepreneurs a unique turn key business. The company has an engaging and unique marketing approach as they use a radio show to promote the local franchise. “The Mutual Fund Show,” airs every Saturday morning. It is a nationally syndicated call in show that offers information to people who are interested in investing while it provides each local franchise a boost in free advertising.

Customer reviews are mixed. Some people like the easy, straightforward choices (you can only purchase mutual funds) and the simplicity that makes the service great for inexperienced investors. Mutual funds, by design, are generally less of a risk than individual stocks. The “store” capitalizes on that and does double duty in educating their customers through the Mutual Fund Show as well as through their managers and advisors. The web site also offers a great deal of suggestions for investors and consumers who are interested in taking that crucial step in preparing for their future.

There has been some criticism of as of late however, and they have come under fire due to the limitations of mutual funds that customers are allowed to purchase. There have also been some complaints regarding the advisors’ and even the managers’ knowledge of mutual funds, the type of mutual fund advice offered and even investing in general. Some critics feel that the company’s opposition to Exhchange Traded Funds (ETF’s) is incorrect and that the logic behind that opposition lacks substance. This lack of choice and selection puts this unique business model into a potentially awkward space.

Fans of the show and the company counter that very solid reasons for opposing index investing are expressed every Saturday on the show. They also maintain that the store is good for beginner investors because they are not bombarded with too many choices and are not overwhelmed by an excess of information. By keeping it simple, The Store can offer investors a simple way to make financial arrangements for their future, prepare for their children’s college education or help them save up for that dream home or dream vacation. The obvious benefit of mutual funds is the lowering of risk that investors are exposed to, compared to owning shares of individual companies.

Bottom line, The Mutual Fund Store seems to be a good choice for casual investors or investors who are inexperienced. As long as you go into it with a full understanding that you will only be allowed to purchase certain, select funds, you will likely fare pretty well. If you have a different fund that you want to buy, go to a discount broker instead. The best way to know if this type of investing is for you is to check it out yourself. It could be the crucial step in preparing for your future.

Share This

Planning On An Early Retirement?

Posted on June 22, 2008
Filed Under Retirement | Leave a Comment

When we’re young and fresh out of college, we don’t generally consider the future as a whole. What we’re typically focused on is the ideal career. Not that this is bad. It’s actually a great thing. We acquired our education, and now we’re playing the corporate field, and vying for the job that will set us up with a great lifestyle. We can soon purchase that home and ditch the apartment routine. A new car is probably in order since we can now afford something a bit nicer. Then before we know it, we’re married with a family. Okay, stop right there! It’s time to consider early retirement planning. Yes I do realize that this is slightly far off yet, but there’s no such thing as too early when it comes to retirement. The years can fly by much quicker than most of us anticipate.

I recall my 21st birthday like it just happened. Can you believe that? Sadly it was now ten years ago. YIKES, does that time ever sail by! There’s no altering it, stopping it, or even slowing it down. You simply have to take it as it comes. Since it moves so quickly, it’s prudent to get a jump start on things. Think about how long you wish to stay at your current career. How much should you be setting aside for the golden years of rest and relaxation? I do realize that it’s difficult to begin early retirement planning in your 20s, but if you can, then go for it. Wow, will you ever be glad you did so! If done properly, you could probably retire by the time you hit your 40s. That would be CHOICE for most of us.

What does early retirement planning consist of? Well, this all depends on what you’re currently dealing with and have in mind for the future. If you have children, you may also want to contribute to a college fund of some sort. On the other hand, if you’re single or simply married, you can begin the investing with ease. Even if it’s only 100 bucks each month in a savings account, it’s well worth it. Consider an IRA early on. This is a wonderful route when it comes to early retirement planning. The options range from stocks, to bonds, to savings, to real-estate investments. The choice is up to you.

Share This

Real Estate Investment Dangers - What Can Happen And How To Sidestep Problems

Posted on June 21, 2008
Filed Under Real Estate | Leave a Comment

The consideration of real estate investing is about more than picking up a property cheaply and reselling it at a profit. While how-to books and real estate guru seminars may make it seem easy and risk-free, there is a reality to real estate investment. To learn more about the potential downsides of real estate investing, keep reading.

It Takes Capital

Typically, real estate isn’t considered a quickie investment, and your capital can be tied up for a long time. A down payment on a home can’t always be taken out and withdrawn in the case of a financial emergency or the need for quick cash.

That capital could also be used for other investments. For example, let’s say you invest $20,000 into a home that winds up not appreciating at the 8 percent annual rate you hoped it would. Instead, it depreciates and then eventually appreciates at a low 4 percent rate. That $20,000 could have made more by investing it wisely in a diversified investment portfolio.

Returns Will Vary

Like any investment, other than GICs (Guaranteed Investment Certificate) or guaranteed savings programs, your returns are going to vary. While real estate is more stable than, say, the stock market, that doesn’t mean you can bank on a 10 percent annual return.

You Will Pay Capital Gains Taxes

Taxes can slash your profits on your real estate investments if you’re unprepared. While there are deductions and capital deferral programs available to real estate investors, you need to understand the law and be prepared to apply it to your own circumstances.

Closing Fees and Transaction Costs can Reduce Profits

Unless you’re savvy enough to handle your own sales, you’ll have to hire a real estate agent, meaning you’ll have to pay commission. In addition, most investors will need to pay closing costs, title insurance, inspection rates, legal fees and more.

Typically, the costs associated with any real estate transaction usually hover around 15 percent of the transaction, whether you’re buying or selling.

There is Work Involved

While a real estate investment on a home normally does reward sweat equity, that also means you have to put it in. Unlike stock market investments where it takes little more than cash and a telephone or a computer to make an investment and see a possible return, real estate investment involves getting out of your chair and a lot of leg work.

Whether it’s driving out to sale sites, attending home viewings, cleaning properties, maintaining rental units, upgrading or renovating houses or preparing a house for sale, it’s all hard work that you’ll have to put in. So, before you jump into real estate investing, make sure you have the time and energy to invest alongside your money.

Share This

Why To Trade Currencies? (and How…)

Posted on June 19, 2008
Filed Under Trading Education | Leave a Comment

There are many advantages to trading Forex. Here are just a few reasons why, so many investors are choosing this market:

No Fees. No clearing fees, no exchange fees, no government fees, no brokerage fees, no redemption fees. Forex brokers are reimbursed for their services through something called the bid-ask spread, essentially a commission. This commission is several times less than stock exchange market fees and commissions (read below)!

No middle man. Spot currency trading eliminates the middlemen, and allows you to deal directly with the market makers responsible for the pricing on a given currency .

No fixed lot size. In the futures markets, for instance the contracts are set by the exchanges. A standard-size contract for silver futures is 5000 ounces. In spot Forex, you determine your own lot size.

This allows investors to participate with accounts as small as $250.

Low transaction costs. The retail transaction sacrifice (the bid/ask spread) is typically less than 0.1% in normal market conditions. At superior dealers, the spread could be as low as .07% (percent). This depends on your account settings and all will be explained later.

A 24-hour market. There is no waiting for the starting bell - from Sunday nightfall to Friday daylight EST, the Forex market never sleeps. This is awesome for those who want to trade on a part-time basis, because you can choose when you want to trade–morning, noon or night.

No insider trading. It is impossible to corner the market. The global foreign exchange market (Forex) is so vast and has so many participants that no specific entity (not even the Federal Reserve) can command the market charge for a significant period of time.

Leverage. In Forex trading, a small margin account can command a much bigger interbank position. Leverage gives the seller the ability to make those high profits, and at the same time keep exposed wealth to the minimum. For example, Forex brokers recommend 200 to 1 weight, which means that a $50 cash margin deposit would allow a trader to buy or sell a $10,000 contract. Similarly, with $500 dollars, one could trade with $100,000 dollars and so on. However, margin is a double-edged sword. Without proper risk management, this high gradation of leverage can lead not only to large gains but to large losses as well.

High Liquidity. Because the Forex Market is so vast, it is also awfully liquid. This means that under regular market conditions, with a click of a mouse you can immediately buy and sell at will. You are never left in a situation when you are unable to close a position.

Free Demo Accounts. Most online Forex brokers pffer demo accounts for beginner traders to practice trading, along with streaming Forex news and charting and trading software. All free! These are very valuable resources for SMART traders who would like to polish their trading skills with ‘play’ funds before opening a live trading account and risking actual money.

Free Trading Software. As mentioned earlier all brokers provide you with trading and charting software, usually free of charge. The software allows you to open and close trades in real time, with a click of a mouse! You can even configure your online trading platform automatically to close your position at your prefered Take Profit level and/or close your position if it is going against you (a stop loss order).

Mini and Micro Accounts. You would think that starting out as a currency trader would require a lot of investment. The reality is, compared to trading stocks, options or futures, it does not. Online Forex offer “mini” and “micro” trading accounts, some with a minimum account deposit of $300 or less. This is not to say that you should open an account with the bare minimum but it does make Forex much more affordable to the average individual who does not have a lot of initial investment.

Despite all these advantages trading the Forex is not an easy undertaking and shold never be taken light-mindedly especially by novice forex traders. The promise of great returns can quickly turn into a reality of frustration and losses if you start trading unprepared.

What is the best way to prepare?

Invest in Forex education if you want to make this your full-time source of income. One excellent Forex education resource is Peter Bain’s “Forex Mentor” course. Peter, a long term professional Forex trader has compiled his course as a series of printed materials, exercises, videos and ongoing personal live video sessions where he explains the current market situation and advises participants what to do.

The next best thing, (for those who don’t want to go through weeks of training and want to get a taste of Forex trading right away) is to get the right automated tools for the job. A proven, no-guesswork system designed and tested by professional traders. Two of the industry leaders in Forex software tools for new traders are the Forex AutoPilot Software (FAPS) and the Forex Killer System.

The Forex Autopilot Software is a completely automated “set it and forget it” type of system. By dragging and dropping an icon onto your chart you are activating the trading robot which will then go on to monitor the market, open and close trades non-stop, 24/7!

The Forex-Killer on the other hand does not actually trade for you. Given the current market conditions, the Forex Killer coputes the next move of the market and gives you Buy, Sell or No Trade signals, with probabilities and projected entry and exit levels, effectively telling you how to setup your entry, stop-loss and take-profit orders.

With either system at your dosposal you can start trading with 1000 usd or even less. Just keep in mind that more capital will minimize the risk and give you greater profits.

Which system is best suited for you? Check out the web-sites, read the result reports on those pages, watch some of the recent testimonial videos and decide for yourself!

Share This

« go back — keep looking »

Recently


Categories


Archives

Close
E-mail It