Archive for the ‘Investments’ Category
Thursday, March 11th, 2010
D.R.I.P.s
In times of uncertain economic future, it is important to look at your investment strategy and tweak it as needed. One of the ways that you can improve your portfolio is to take on small investments with lower risks associated with them. Taking in smaller rewards and returns may seem like a waste, but these smaller ROIs can actually add up fast in the right investment vehicles. Fixed income investments are some of the best small investments that are available to you, like savings accounts and CDs. Another excellent investment vehicle for someone looking for small investments with great rewards is an investment called DRIPs.
DRIPs are a truly cost effective way to raise equity for a company, and they are beneficial for investors as well. The reason why they are beneficial for investors is because they allow for the investment return drawn from dividends to be invested immediately back into the investment for price appreciation and compounding, but without incurring any brokerage fees. Additionally, there is no waiting for the investor to accumulate enough cash for a full share of the stock, which is another excellent advantage making these some of the best small investments that you can make.
DRIPs have numerous advantages associated with them, but they’re not perfect. They do allow investors to take advantage of dollar cost averaging for cost effectively investing the dividend income that is being paid out by the company. Not only will the investor receive a guarantee for the return on the dividend yield, but they will also earn whatever has been appreciated by the stock during the time that they own it. Another advantage is the fact that you do not need an exorbitant amount of money to begin. You can participate in such a program without more than a single share of stock, but it would be wise to consult your broker or the company’s investor section of their website to get more details on this.
DRIPs also allow you to grow your investment capital in a cost effective way by purchasing more company shares rather than simply spending money or having it sit idly in another account. Most company-offered DRIP investment programs have no fees for transactions, brokerage fees or account-keeping fees so 100% of your returns are being invested back in.
Some of the disadvantages of DRIPs include the administrative hassle associated with the cost basis of all the different small stock purchases, maintaining records of these purchases, and the fact that you do not get to choose the timing for when the stock is purchased. Most DRIPs have specific schedules that they are meant to follow, so there’s a little bit of uncertainty built in to this particular investment vehicle.
Still, if you are looking for one of the best small investments that you can make, these DRIPs are a good way to go if you can find a suitable program to buy into. They are worth checking out if you are trying to build your investment portfolio and are looking for something new, and profitable for that matter.
Photo Credits: 1
Originally posted 2008-11-11 05:57:21. Republished by Blog Post Promoter
Related Articles -
Stocks are a Great Investment /caption] Most people recognize that stocks are an excellent investment, but purchasing stocks can be a confusing process. This is especially true if you have little experience in investing, or no experience at all. You can turn the stock buying process into a good investment even as a beginner, and...... -
Save Money with These 4 Tips /caption] There are ways that you can save money, and all you need to do is learn about managing money wisely to do it. You are not necessarily being frugal, per say, but rather you are learning how to be wise in the decisions that you make. Unfortunately, most people...... -
Online Finance Magazines /caption] There are numerous different reasons to take the time to read online finance magazines. By buying and reading online finance magazines, you can learn a great deal about financing in a small amount of time. By buying and reading online finance magazines you will be infinitely better able to...... -
4 Tips for College Students Budgets /caption] If you are a college student, then your primary focus is probably set on your studies and trying to maintain your education so that you will be benefited in the future. Unfortunately, one of the things that you may not be putting enough consideration into is how you are...... -
Personal Budget Planning /caption] Personal budget planning is an important part of keeping a handle on your finances. Because there is so much turmoil in today's economy, maintaining a healthy personal budget is more vital than ever. Crafting a personal budget begins with determining how money comes in, and how money goes out,......
Related Sites -
How to Invest Now Without a Dime in the Bank If you've ever had a chance to invest in a great stock but didn't have enough money put aside to take advantage of the opportunity, you know too well the agony of defeat. Most of us are under the impression that it takes money in the bank to start investing....... -
What Matters In Investing The financial media has a vested interest in making investing appear more complicated than it really is (this blog included, I suppose). The thing is, investing isn't complicated. If you can add 2 + 2 and are literate, you can invest your own money effectively. The Oblivious Investor (check him...... - Carnivals for this week right here Carnival of Business #9 at Stock Market Beat Carnival of Personal Finance #53 at Consumerism Commentary Carnival of Debt Reduction #40 at Journey to Financial Freedom Festival of Frugality #28 at Blueprint for Financial Prosperity Carnival of Investing #27 at All Financial Matters Oh ... did you know I'm......
- 50+ Personal Finance, Investing, And Money Tweeps Worth Following Miranda writes for Bankling, a personal finance portal, which contains both a blog, and a tools section that contains resources like the best bank CD rates, the best savings account rates, online mortgage rate calculators, and more. These days, it's all about Twitter and the tweeple there. While many (including......
-
Beginner's Tips for Smart Investing Investing is an endeavor that can be both challenging and complicated. If you are new to investing, then you may end up paying the price if you do not know where to turn for the most reliable investing tips and investing advice out there. Fortunately for you and other beginners......
Tags: amount of money, brokerage fees, dividend income, dividend yield, dividends, fixed income investments, investment return, investment strategy, investment vehicle, investment vehicles, investor section, investors, price appreciation, rewards, rois, savings accounts, stock
Posted in Investments, Money, Personal Finance | No Comments »
Tuesday, March 9th, 2010
President-Elect Obama
Loanio extends its congratulations to President-Elect Obama for running an excellent campaign.
This week’s edition of Loanio’s roundup takes a look at the election and what it means for the economy. What are your thoughts to the issues? We’ve also included several links for business entrepreneurs and on p2p lending for your weekend reading.
The Economy and the Election:
Small Business:
Peer-to-Peer Lending:
Loanio in the News:
Photo Credit: 1
Originally posted 2008-11-09 05:33:00. Republished by Blog Post Promoter
Related Articles - Welcome to the Loanio Blog! Now that we are deep into the first 24 hours of going live, I would like to take a moment to officially kick off the Loanio Blog. For more about our official launch, please click here to view our first press release. The week leading up to this launch has......
-
Loanio Roundup - Wall Street Crisis and the Resilient Dollar /caption] Welcome to the second edition of the Loanio Roundup. This edition focuses heavily on the national economy and peer-to-peer lending news. We hope you enjoy pursuing through the links below. Leave a comment and tell us what you think - we'd love to hear your views on the Wall...... -
The Best Small Investments /caption] Wall Street's recent cataclysmic events are still unfolding and the entire planet is feeling their aftershocks. For this reason, interest in what is going on in the stock market is rising quickly, even for those who do not normally understand what the stock market is all about, or what...... -
Personal Budget Planning /caption] The key to your financial success in life is your own personal money management skills. Your personal money management practices make up your own personal method of reaching both your goals and your dreams. No one likes the idea of personal budget planning, but you will never know if...... -
Loanio Roundup #1- National Economy /caption] Good morning everyone! Welcome to Loanio's first ever roundup post. We'd like to thank the blog community for their support. You are the best press releases out there. Then lastly before we start with the links we would like to take a moment to wish everyone a splendid weekend.......
Related Sites -
Another 7 Steps for How to Get Traffic to Your Blog If you are trying to learn how to get traffic to your blog, then you will benefit from the tips in this series, which are designed to show you the necessary steps for how to get traffic to your blog. When you have the right tips, tricks and resources in...... - Bernanke: Just Say No To Lowering The Interest Rate I'm sorry for the lack of original posts, but I have a final tomorrow. My priority is to get ready for the exam. Next weekend I'll go ahead and write original posts like usual. I was reading an article in BusinessWeek on the Fed's decision with the interest rate. It's......
- Lending Club Update While I was asleep at the wheel on Friday, Lending Club came through with an update on their quiet period. When we last left them, I declared Lending Club is Dead. I admit that I was going for a sensational headline, but I still maintain that I wasn't irrational. When......
-
Why I think P2P lending is a bad idea Photo by: Unhindered by Talent The rage around money lending these days, at least in the blogosphere is Peer to Peer Lending (P2P). Services like Lending Club and Prosper enable loans between individuals, bypassing traditional loans generally provided by banks. The P2P concept in theory, allows individuals to reap...... -
Resisting Panic: A Quick Guide to Surviving The Credit Crunch A few years ago if you referenced the term "credit crunch", most people would be puzzled. Today barely a single day can pass without the phrase seeing consistent if not constant use in the newspapers and on television. The credit crunch is a crisis that is affecting numerous financial institutions......
Tags: american banker, business entrepreneurs, business week, cnn, cnn money, down economy, election results, email newsletters, emerging markets, great time, market watch, meltdown, money stocks, obama, president elect, recession, roundup, small business grants, small business owner, year end
Posted in Banking, Credit, Investments, Loanio, Money, Peer Lending, Small Business, Stock Market | 1 Comment »
Thursday, January 14th, 2010
Start saving now!
Don’t you think that every working man and working woman is entitled to enjoying a secure and comfortable retirement once they are no longer working? Due to the fact that we have taken so many strides in health care and in medicine, many people are living longer and healthier lives, which translates to many people having longer periods of retirement. In other to attain the goal of having a secure and comfortable retirement, it is vital that we plan for retirement wisely by beginning with a solid blueprint for success.
* Save early, and save often.
The sooner you begin to save money, the longer your funds will have to grow in preparation. Putting compounding to use for you is one of the best possible ways that you can build your wealth, because the gains that you make with every new year will be added to the gains that you make with every previous year.
* Set goals that are realistic.
Rather than relying on rules of thumb to project your future retirement expenses. If your expenses are based upon your needs, you need to set realistic goals rather than simply assuming. Formulate how much money you will need based on the type of lifestyle that you intend to lead, and keep your potential future income in mind.
* Save up for retirement using a 401(k).
Why? Because making a contribution to this type of account will provide you with immediate tax deductions, employer matched contributions and even tax deferments on your retirement savings growth. This is excellent advice for anyone who is wondering “how do I plan for retirement?” without a clear cut plan.
* Another example of a way to invest for your future is IRAS.
IRAS provide large tax breaks like 401(k) accounts do, offering you an excellent level of tax advantaged aid. There are traditional IRAs with tax deferred investing, and Roth IRAs where there is tax free growth but no deductible contribution capabilities.
* Allocate your assets wisely rather than investing too largely into one investment over another.
Spread your portfolio out, and enjoy numerous types of investments rather than just relying on 401(k), or IRAs, or savings. For example, for stable long term growth in your investment portfolio, stocks may be one of the best options that you can choose to invest in. If you are looking for high returns over a long period of time, which is ideal for retirement saving, then stocks are an excellent choice for you to consider.
* Do not rely to heavily on bonds.
When you are saving for retirement, bonds should not be your primary source of investment because they are not as tax efficient as other investment vehicles when saving and investing for retirement.
* Having a part time job once you are retired may be a good bet.
It will continue to put money into your savings even after you have retired.
Photo Credits: 1
Originally posted 2009-01-16 05:39:03. Republished by Blog Post Promoter
Related Articles -
Should You Pay Off Your Mortgage Early? With the trouble in the housing market, those that are financially stable are left wondering whether now may be a good time to pay off their mortgages. There are some definite pros and cons to early payment, and this strategy is one that must be carefully considered before taking action....... -
Teens Saving Money [/caption] One of the best ways to build a strong financial foundation in teens is by starting a savings plan early on. Over the past few years, there have been more teens saving money and the results are clear. When you take the time to teach good financial practices to...... -
Child Savings and Investment /caption] Having children is not cheap by any means these days, especially when you consider the long term basis. The older your children get, the more they will end up costing you, especially when you consider education costs which are rising with every passing year. It may seem easy to...... -
3 Types of Safe Investments /caption] Given the shaky financial markets across the world today and the extreme ups and downs that are being seen from one day to the next in the US market, you might be wondering what are safe investments, and how can I be sure I won't lose all the money...... -
Setting Goals for Good Personal Finance /caption] Setting goals is an important part of your personal finance plan. Goals can be divided into four unique categories that are relatively general in nature. These categories are short term goals, intermediate term goals, long term goals and life goals. Short Term Personal Finance Goals - These short term......
Related Sites - Common Mistakes in Using Retirement Planning Tools Online retirement planning tools are all over the Internet. Many baby boomers use these tools to help them get back on track or to assess where they are in being prepared for retirement. I have discussed a number of those online tools here at Go To Retirement. Some are free......
- The 7-Day Turnaround, Day 5: Start Saving for Retirement This is the fifth article in Frugal Dad’s week-long series, The 7-Day Turnaround: One Week to Change Your Family's Financial Destiny. Each day brings a new step to implement and help you get control of your finances. Now that you have moved beyond the half-way point in your 7-day turnaround,......
-
Top Retirement Planning Blunders Planning for your retirement doesn't have to be a game of chance. There is simply no way you can predict exactly how long you will work, how much money you will be able to accumulate or what expenses you may face in retirement. One thing we can each count on...... -
Tips and Tricks for Budgeting Many people think that the budgeting process has to be complicated in order for it to be effective but the truth is actually quite the contrary. Once you know what the basics are when it comes to starting a budget and managing your budget, there is nothing that has to...... - Obama Proposes Special One-Time 10% Tax On Retirement Accounts In a press conference earlier today, White House press secretary Robert Gibbs announced President Obama's proposed plan to assess a one-time tax of 10% of the total value of all American retirement plans, including both defined-contribution plans such as 401k and IRA plans and defined-benefit pension plans. That's right, ladies......
Tags: assets, blueprint, capabilities, deductible contribution, deferments, health care, new year, periods, previous year, realistic goals, retirement expenses, retirement savings, roth iras, rules of thumb, set goals, strides, tax deductions, traditional iras, working man, working woman
Posted in 401K Retirement, Bonds, Investments, Personal Finance, Plan for Retirement | No Comments »
Tuesday, January 12th, 2010
Penny Stocks
Penny stocks are often regarded as a sound investment idea, but they are especially popular during times of a recession, though many people are unaware of the “why”. The reason why penny stocks are a good investment is because the prices of penny stocks for credible companies go up nearly every day, earning you a profit of more than 50 percent over the market price of the stock. Additionally, by going for stocks that are only purchased in great values, you are following an excellent strategy because the bulk trade is something that indicates a rise in the prices, as well as a rise in the chances that the return will be good financially. You should always observe the fine print of the company’s statements when it comes to penny stocks. If you fail to look at both sides of the moon, then you may end up incurring more loss than gain in your investment endeavors.
Right now we are witnessing a real global financial crisis, and many stock brokers are experiencing what is essentially a living nightmare. The global economy is in jeopardy, and many great companies are rising and falling during what is bound to be a truly depressing recession. While many large scale companies and their once booming stocks are suddenly falling, it does not mean all stocks are a poor investment, because there are some little known investment vehicles out there that can still offer excellent returns if you are willing to ride it out and be a little patient with the market. Are stocks a good investment? Traditional stocks may not be the best investment vehicle right now, but penny stocks on the other hand may be just the ticket.
When the stock market is thrown into obvious turmoil, there are obviously some new risks to contend with when it comes to traditional stock investing. Because so many companies are coming into business and going out of business, it can be overwhelming to choose stocks that are sure things, or even stocks that are going to be remotely profitable in the coming months. Penny stocks are shares that are floated in the stock market by smaller companies at values that are less than five dollars.
These penny stocks have a chance of yielding a really huge profit within a short period of time, provided that you are careful when you choose which companies to invest in, and make wise choices accordingly. Penny stocks are often regarded as a sound investment idea, but they are especially popular during times of a recession when other stocks are not sound investment opportunities. As the market dips, predicting the values of stocks diminishes a great deal, but penny stocks are much easier to appraise, and can turn much greater profits in shorter periods of time when sound investments are made.
Good research is vital when it comes to choosing penny stock companies. You should always observe the fine print of the company’s statements when it comes to penny stocks. If you fail to look at both sides of the moon, then you may end up incurring more loss than gain in your investment endeavors.
Photo Credits: 1
Originally posted 2009-01-14 05:29:22. Republished by Blog Post Promoter
Related Articles -
Prepare for Your Retirement Now /caption] If you are young and just beginning a career, then the concept of retirement planning may seem so far away that it is the last thing that you put any consideration into. However if you are on the opposite end of the fence and retirement is just around the...... -
What Are Safe Investments? [/caption] If you are trying to accumulate wealth, set aside money for the future or you would just like to have a few more streams of income coming in, investments are usually the first thing people turn to. However, the most common question that many people have is what are...... -
Are Stocks a Good Investment? The first step that you need to understand when it comes to determining whether or not stocks are a good investment is to understand how stocks work in general. A share of stock is the smallest unit of ownership possible in a company. Owning a share of a company's stock...... -
401k Planning Most people have questions when it comes to 401k planning and retirement. These people often wonder what 401k planning is, how 401k planning works, and how a dwindling balance can be revived. 401k plans can be complex, but they can also be quite easy to understand with a little bit...... -
How Do Savings Bonds Work? /caption] Savings bonds are a major offering in credit unions and at banks. It is important to know what savings bonds are all about so that you can understand whether or not they will benefit you in any way. This page is going to take you through some of the......
Related Sites -
The Stock Market Bubble No One Talks About You would know a bursting bubble if you saw it? Right? Take a look at the following chart and tell me what you think. Doesn't it look a little suspicious? Has a bubble formed, or even worse, has it just popped? Take a good look and tell me what you think. I...... -
Hedging Your Stock Investments: The Basics More stock investing tips on the subject of hedging. Money is money, no matter what currency. Once you’ve opened an online broker account and consider yourself a stock investor, there are a few basic things you’ll need to think about when dealing with your investments: you’ll want to grow your...... -
Healthcare Stocks Ripe for Growth: BIOTECH. Healthcare may not seem like a great investment right now, with all the talk of a government take over of the industry, but sometimes those are just the times that create great contrarian opportunity. Today, I'm profiling 3 healthcare sector stocks that show promise of growth in the coming years,...... - Socially Responsible Investing Over at the NRDC site, they have a very interesting article up about socially responsible investing. Some might immediately think that you could never make as much money investing in "green" ventures as big bad companies, but as it turns out, you can come close. At the expense of losing......
- The Second Stock Market Crash: February 19-23, 2009 We all want to know when the market is going to bottom. Well, right now it's definitely at SOME kind of bottom. So start dipping your toes in if you've not been paying attention for a while (buy some of the Canadian banks that Obama likes so much) - there......
Tags: endeavors, global economy, global financial crisis, going out of business, investment idea, investment vehicle, investment vehicles, jeopardy, large scale, living nightmare, moon, penny stocks, poor investment, recession, sound investment, stock brokers, Stock Market, sure things, traditional stock, turmoil
Posted in Investments, Loanio, Personal Finance, Stock Market, Stocks | No Comments »
Wednesday, January 6th, 2010
If you are young, and you are just beginning a career, then the idea of retirement planning may seem so very far off that it is probably the last thing on your mind right now. But if you are on the other side of the fence, and retirement is approaching faster than you can handle, then you may be trying to figure out what you can do to handle it. Regardless of which situation you are in, it is absolutely vital that you begin to prepare right now. There are so many forces that are working against you financially, and for this reason, it is vital that you begin to plan now, and you do not stop saving for retirement until long after you retire.
Do you have a 401K Plan?
The first thing to look into is whether or not your current place of employment offers a retirement plan. In the past, the only type of retirement plan was a pension plan, and pension plans were a sturdy and solid part of the everyday retirement planning process. However, because the economy is turning into a completely new beast all together, these older and more reliable pension plans are quickly and unfortunately becoming a thing of the past.
To replace the pension plans of days old, most companies are now offering a retirement savings and investment plan known as a 401k retirement plan. A 401k retirement plan is a powerful way that you can invest for your retirement over a long period of time. They usually involve investing in a number of different mutual funds as well as in company stock. When making your selection of investments, it is really important that you know how to practice diversification, meaning that you should not invest too much into one thing but instead should spread your investments out across multiple investment vehicles, like stocks, IRAs, 401ks, bonds and mutual funds. You want to make sure that your investments fall within your company and outside of the company you work for as well, because things can go bad no matter how well you think they’re going within the walls of the company you work for.
If your employer does not offer a 401k retirement investment plan, then it truly is more important than ever that you take a proactive approach to the concept of investing and saving for retirement. You are going to want to have an IRA set up, either a Roth IRA or a Traditional IRA depending on how you want to handle the taxes, withdrawals and investments.
The most important step to take when it comes to retirement planning is simply to make sure that you have a plan that you can stick to. The earlier you begin to take action when it comes to your retirement plan, the more you will be able to prepare and plan before it gets to be too late.
Photo Credits: 1
Originally posted 2009-01-08 05:03:27. Republished by Blog Post Promoter
Related Articles -
5 Tips for College Students on Budgets When you are in college, it can become easy to get caught up in your busy, stressful lifestyle. With all of the studying and working that you have to do, coupled with hanging out with your friends, working part time jobs and participating in extra activities, it can actually become...... -
Personal Budget Planning is Crucial! [/caption] Personal budget planning is absolutely crucial if you want to build personal wealth and overcome things like the credit crunch and the current problems that the economy is experiencing. The word "Budget" is one that worries a lot of people because it often seems more like a hassle and...... -
Do You Ask Yourself, How Do I Plan for Retirement? /caption] Don't you think that every working man and working woman is entitled to enjoying a secure and comfortable retirement once they are no longer working? Due to the fact that we have taken so many strides in health care and in medicine, many people are living longer and healthier...... -
Handling Debt Collection Phone Calls /caption] If you are late on a bill, or more than one bill, then you are probably beginning to receive collection calls from people who want payments from you. You may find yourself in the middle of what is essentially a recurring nightmare of callers who are absolutely insatiable and...... - Prepare for Your Retirement Now /caption] If you are young and just beginning a career, then the concept of retirement planning may seem so far away that it is the last thing that you put any consideration into. However if you are on the opposite end of the fence and retirement is just around the......
Related Sites -
Choosing the Right Types of Investments pt 2 If company stock is the only option that is available to you through your company's offered 401 k savings plan, then you should be looking at other types of investment vehicles to handle some of your savings for retirement. Annuities When you decide to buy an annuity, what you have...... - SEP IRA: Self-Employed Retirement Plans Are you self-employed and looking to retire someday? I am. Since this website brings in a little income, it qualifies as a small business. Additionally, I contract for some other companies, which also counts as small business income. The life of a contractor is often one without a 401k. Despite......
- Top Retirement Planning Blunders Planning for your retirement doesn't have to be a game of chance. There is simply no way you can predict exactly how long you will work, how much money you will be able to accumulate or what expenses you may face in retirement. One thing we can each count on......
- How Good Is Your 401(k)? Test It Out Against Other Plans. So, want to see just how good your 401(k) is compared to other plans? Well, you might be in luck as a new service called BrightScope should be able to help you out. Here is what the Huffington Post had to say about this service: Until now, an objective evaluation......
- What is a Retirement Plan? The phrase "retirement plan" is at the core thousands of baby boomer conversations and Internet searches each day. Yet, I wonder if all of those conversations and searches are directed at the same information. That's because a "retirement plan" can mean different things to different people and in different contexts.......
Tags: 401k retirement plan, beast, Bonds, company stock, current place, diversification, investment plan, investment vehicles, Investments, iras, mutual funds, pension plan, pension plans, period of time, place of employment, retirement planning, retirement savings, saving for retirement, side of the fence, Stocks
Posted in 401K Retirement, Investments, Personal Finance, Plan for Retirement | No Comments »
Tuesday, January 5th, 2010
One of the options that is available to some people for savings and investment is the child trust fund vouches which is available for children born in the United Kingdom following September 1, 2002. Any child that is born in the UK after September 1, 2002 is entitled to a “child trust fund voucher”, which forms the basis of a child trust fund. These vouchers are available to any child claiming the child benefit, and child benefit is a universal benefit that all children in the UK are entitled to receiving regardless of family income.
United Kingdom Child Trust Funds
Here are the basic facts that you need to know about child trust funds:
- All children who are born after September 1, 2002 will receive a voucher that will allow to open a child trust fund.
- All children can receive a Child Trust Fund voucher regardless of their family income level. In order to receive the voucher the child must be registered to receive the child benefit.
- All savings placed into a child trust fund are tax free.
- If you are part of a low income family, then you can actually receive additional money to invest.
- All children are capable of receiving an extra 250 pounds that they can invest as soon as they reach the age of seven.
- You can top up the child trust fund by as much as 1,200 pounds every year.
- Anyone can contribute to a child trust fund, so it is an excellent addition to the gift list because family members, friends and neighbors can all contribute for your child.
- At the age of sixteen the child is allowed to make the decisions about how the money will be invested.
- The investment itself cannot be accessed until the child has reached the adult age of 18.
- Child trust funds are transferable between different people and it does not require any extra cost.
- The first child trust funds are going to mature in the year 2020. From April 2009 and on, child trust funds can be opened online and no voucher has to be sent in to the fund provider.
- 24 percent of all parents are topping up their children’s trust funds.
- In August 2008 alone more than 3.61 child trust funds existed in the UK.
Once you have received a voucher, the next step is to choose a provider for the child trust fund, to contact them, and then to open the account up. The voucher needs to be sent in with the paperwork, at least until April 2009 when the trust funds can be opened up online without requiring that the voucher be sent along. Once the child trust fund is started, all that is left is topping it up every year to contribute to your child’s investment.
Photo Credits: 1
Originally posted 2009-01-07 05:46:57. Republished by Blog Post Promoter
Related Articles -
Do You Need a Money Manager? /caption] If your idea of organizing your finances is throwing a receipt in a big pile, you may want to consider the benefits of hiring a money manager. There is a new trend in the financial world where daily money managers are becoming very popular, and for many consumers, they...... -
How do Savings Bonds Work /caption] Are you wondering why you should invest in United States savings bonds, or how savings bonds work? This is a question that not enough people are considering these days, because most people are pressing their luck instead by gambling with stocks and other investments. So many people are turning...... -
7 Budgeting Examples /caption] When it comes to budgeting examples, one of the best things that you can do is to look at a successful budget and draw from it to establish your own. Everyone has a different idea of what makes a good working budget, and your budgeting examples need to be...... -
Finding a Legitimate High Yield Investment Most people hear the words High Yield Investment Program, or the acronym HYIP, and many of them quiver. This is not completely unnatural, because high yield investments only come with high risks, and most HYIP opportunities are not even legitimate to begin with. There are simply too many people out...... -
How Do Savings Bonds Work? Is My Money Safe if I Purchase Them? /caption] These are questions most people ask when they consider buying savings bonds. Yes, your investment in savings bonds is one of the most safe investments you can make. You're purchasing the bond and giving the government cash, which they pay you interest back on at a later date. It's......
Related Sites - Following The Rule Of 10% Is Easy And The Savings Add Up. Back when I was in the hole of tens of thousands of dollars, I still managed to save money. Was it the best decision? Probably not - if I had sent that money to my debt I could have been debt-free earlier (if, of course, I had stopped spending, which......
- Top 10 Things We Learned From Jim Cramer's New Book "Stay Mad For Life" We really like Jim Cramer and enjoy watching "Mad Money". Recently we had the opportunity to read his new book "Stay Mad For Life". Here are the top 10 things we learned from the book: 1. Put into your 401(k) only what your employer will match because most 401(k) mutual......
-
Inflation and Retirement Investing As baby boomers in the home stretch towards retirement, we have two major concerns about our retirement investing. The first is recovering from the severe damage our retirement nest eggs suffered from the recession and market downturn that began in 2008. The second concern is preparing for the threat of...... -
Start Saving Money Today Here are five ways that you can begin to save money, beginning today. Americans are not saving enough money in this day and age to help ensure their stability financially. If you have enough money in your savings account, then it is going to be able to protect you from...... -
How to Get the Best Rates on Your Savings — Safely Over the past year, one of the frequent questions I get is: “Where I can safely invest my money to get a decent return?” For example, Joseph wrote in November: Around February/March I should have $5,000 to invest. My debts are under control and my wife and I have lowered......
Tags: adult age, child benefit, child trust fund, child trust funds, decisions, family members, friends and neighbors, fund provider, Money, parents, united kingdom, universal benefit, voucher, vouchers
Posted in Children, Investments, Money, Savings | No Comments »
Friday, December 25th, 2009
3 safe investment ideas.
Given the shaky financial markets across the world today and the extreme ups and downs that are being seen from one day to the next in the US market, you might be wondering what are safe investments, and how can I be sure I won’t lose all the money I invest? The short answer is that there are few investments that are entirely safe—there’s at least a little risk involved in almost all of them. But there are a few investments that are generally considered safe, even though you might not get much of a return when you put your money into these types of investments. One big benefit of the higher risk investments like stocks, after all, is the opportunity to see huge gains—you’ll sacrifice that when choosing these safe investments.
Treasury Bills or T-Bills are low-risk, safe investments.
You can purchase them to mature in 3, 6 or 12 months, so they’re short-term investments so fluctuations of interest rates over a long-period of time won’t effect these investments very much. You pay less than the face value of the bill and once it matures it can be cashed in at face value. While these are guaranteed by the government and very low-risk, they also usually don’t show much of a return on your investment. Bonds are a similar safe investment like a T-Bill, but are a longer-term investment that won’t mature for a set number of years.
CDs (certificates of deposit) are also safe investments.
You purchase the CD with a locked in interest rate and when the CD matures in 3, 6 or 12 months, you can withdraw the cash you paid plus the interest. The return on CDs is generally quite small, but still more than you would earn if you’d put that same amount of cash in a savings account. And unlike T-Bills, your CD is insured by the government for up to $100,000 so you can’t lose your money. You will, however, pay a penalty if you need to withdraw the cash before the CD has matured.
The third type of these safe investments is the money market.
Money market investments are considered short-term investments because they typically mature in six months or less. A money market account typically requires an initial deposit, sometimes $1000 is the minimum, and that minimum amount must be held in that account for a set amount of time. The money in your account draws interest, but it’s ideal for those who might need to tap into that money over a few months time. Money market accounts will give you a checkbook so that you can use that money if needed, but if you slip below the minimum balance you will be charged a penalty.
These safe investments will earn you interest over a short or long period of time, depending on the investment you choose, with all of them paying more than interest-bearing checking or savings accounts.
Photo Credits: 1
Originally posted 2008-12-25 05:48:20. Republished by Blog Post Promoter
Related Articles -
8 Tips for College Student Budgets [/caption] Below are eight tips for college students about money and finances. 1. Track your Expenses If you track your spending for a few weeks, you will be better able to figure out where your money is going. Are you spending an exorbitant amount of money on Starbucks? You may...... - Personal Budget Planning is Crucial! [/caption] Personal budget planning is absolutely crucial if you want to build personal wealth and overcome things like the credit crunch and the current problems that the economy is experiencing. The word "Budget" is one that worries a lot of people because it often seems more like a hassle and......
-
Child Savings and Investment /caption] Having children is not a cheap proposition these days, especially when you consider long term costs. The older your children become, the more they are going to end up costing in the long run. High education prices, for example, continue to soar making it nearly impossible for you to...... -
3 Tips for Teen Investing Parents like to complain that their teenage children do not listen to them. However, when it comes to matters dealing with money, the opposite is actually often true. Teenagers often welcome the advice that their parents have to give regarding finances, money management and investments. In the past few years,...... - Finding a Legitimate High Yield Investment Most people hear the words High Yield Investment Program, or the acronym HYIP, and many of them quiver. This is not completely unnatural, because high yield investments only come with high risks, and most HYIP opportunities are not even legitimate to begin with. There are simply too many people out......
Related Sites -
Investing Safely You want for your money to work for you and to grow, right? But taking risks makes you feel uneasy? So is there a way for you to invest more safely? Of course there is! There is a rule that is associated with investing that is ancient, and yet remains...... -
Welcome MSN Money Central Smart Spending Readers! We would like to thank Karen Datko of MSN Money Central's Smart Spending for the mention on our recent post: Economical Pet and Child Safe Ways to Repel and Kill Ants, Spiders and Other Insects. If this is your first time here, please have a look around and consider subscribing...... -
Borrowing to Invest: Does it Make Sense? A lot of financial counselors are now suggesting to their clients that they should borrow money on their home with the use of a home equity loan to invest into the stock market. These people of course are earning a nice big commission from selling the home equity loan and...... - Increasing Your Liquidity In these scary financial times, one way to make yourself feel more secure about your fiscal position is to increase your liquidity. Before you let this term intimidate you, you should understand that liquidity isn’t some fancy thing that only rich folks enjoy. Liquidity simply means having your money is......
-
Mortgage Companies Now Offering Great Rates on CD’s and Savings Since the advent of ING Direct and other online banks, interest rates available to consumers in savings accounts and certificates of deposit have gone up dramatically. Many of the major banks have been lowering their rates on CDs and savings, leaving room for smaller banks to outcompete the larger banks......
Tags: 12 months, certificates of deposit, extreme ups, face value, financial markets, fluctuations, investment bonds, market money, money market investments, risk investments, savings account, short answer, short term investments, t bills, t effect, term investment, treasury bills, ups, ups and downs, world today
Posted in Investments, Money, Personal Finance, Smart Money Ideas | No Comments »
