Posted by admin on Sep 15, 2009 in
Investing 
By Al Thomas
CASH IS A POSITION
You will never hear that from any broker. Even thediscount brokers won’t utter it.Almost every investor I speak with tells me his account has lost value over the past several months. Mostsay they have lost about 20%. It is going to get worse.
Brokers tell investors that mutual funds are “safe”. Safe from what? Certainly not from seeing your money
disappear. They never want you to sell.
Why?
There are many hidden fees even in no-load mutual funds. Between the fund and the brokerage company they are skimming about 2% of your money every year. There are a few that do have less than ½%expenses, but they are few and far between.
In a brokerage company if a broker had his clients go to cash he would be fired. That piddling 1% skim means a great deal to the office manager. His office is rated on the total amount of funds. If one of his brokers suddenly had his clients transfer several million to a money market account the next day the broker would not have a desk.
Mutual fund managers are paid by the totalamount in the fund and NOT by how well or how much they make for shareholders. When a broker gets his registration he is given two manuals. The first has all the rules and regulations of the Securities and Exchange Commission (SEC). He must not violate any of these or he will lose his license.
The second is a sales manual on how to open new accounts. That is basically every broker’s job – bring in new money and lots of it.
There is no third manual. What third manual?
That is how to make money for customers, but more important how to protect a client’s money from loss.
During the 2000 – 2003 crash that saw the NASDAQ evaporate 78% most brokers were in shock. They asked their boss what can we do. He either did not know or was not allowed to tell them.
Brokerage companies will sacrifice their customers rather than try to help them preserve their capital.
Seems pretty horrible. That’s life on Wall Street. The current credit crisis is all about the greed for money. The little guy in a local office that you know just doesn’t know that he doesn’t know. He was never taught, It is not going to change.
It is your money. YOU must protect it. There are two choices. Find a fee based broker or financial planner (and most of them don’t know how to come in out of the rain) or YOU must have an exit strategy.
Check the portfolio of the broker to see what he did in 2000 to 2003. Make him give references.
You may not like what I said. You will wish you did when it comes to retirement time.
Tags: cash, money
Posted by admin on Sep 2, 2009 in
Investing 
by : lavanay
There is a huge demand for gold worldwide and gold prices are seeing a correction. Gold as an investment option is being considered by most stock experts and analysts. The recession has seen a slump in the stock markets, companies are under financial crises, banks have declared bankruptcy, so the investor is quite scared of his hard earned savings and is considering gold as a safe and sound investment. Gold acts as a good hedge against inflation, it can give you instant cash and even if the economy is bad you will still have reason to smile, as you will have gold which will not lose its shine quite fast.
When people invest, they either have a long term goal playing on in their mind or a short term period where they will get sufficient returns. You can use gold as a short term or a long term investment. Research and analysis suggests that gold has grown by at least 2% in the last 50 years and the present decade has seen the gold market grow at 4% annually. The gold market has seen fluctuations and in the year December 2005 itself it was sold at roughly $500 per ounce.
But at present gold is being traded at about $900 per ounce and that is definitely a great increase compared to the year 2005. if you have gold right now then you stand to gain if you sell off at this very moment and you can nearly double your cash. People are wondering if it is the right time to buy this yellow metal, but you never know. Gold prices could hit rock bottom and you may end up a loser. But it is surely the right time to sell off of you are holding gold stocks and options.
This precious yellow metal has never shone so bright. But it is certainly not a short term option, because gold has seen to fluctuate quite a bit and you may burn your hands in this process. Gold prices may climb up but that is not sure because the market is quite volatile. It is better to stay away from gold in this recession time. you can invest a little of your investments in gold to diversify your portfolio but it certainly is not a good option to put all your hard earned earnings into gold.
Tags: gold, market
Posted by admin on Aug 27, 2009 in
Investing 
If you’re ready to invest money for a future event, such retirement or a child’s college education, you’ve several options. You don’t have to invest in risky stocks or ventures. You are able to easily invest your money in ways that are very safe, which will show a decent return over a long period of time.
First consider bonds. There are various types of bonds that you are able to purchase. Bond’s are similar to Certificates of Deposit. Instead of being issued by banks, however, bonds are issued by the Government. Contingent on the type of bonds that you buy, your initial investment may double up a specific time period.
Mutual funds are also relatively safe. Mutual funds exist when a group of investors put their money together to buy stocks, bonds, or other investments. A fund manager typically decides how the money will be invested. All you need to act is find a reputable, qualified broker who handles mutual funds, and he or she will invest your money, along with other client’s money. Mutual funds are a bit riskier than bonds.
Stocks are another vehicle for long-run investments. Shares of stocks are essentially shares of ownership in the company you’re investing in. When the company does well financially, the value of your stock rises. However, if a company is doing poorly, your stock value drops. Stocks, naturally, are even riskier than Mutual funds. Even though there’s a greater amount of risk, you are able to still purchase stock in sound companies, such as G & E Electric, and sleep at night knowing that your money is relatively safe.
The important thing is to do your research before investing your money for long-run gain. When purchasing stocks you should choose stocks that are well established. When you look for a mutual fund to invest in, choose a broker that is well established and has a proven track record. If you aren’t quite ready to take the risks involved with mutual funds or stocks, at the very least invest in bonds that are guaranteed by the Government.
Tags: bank, broker, money