Investment Planning for a Well Deserved Retirement

There is an old adage that says “quit while you are ahead.” If you invest as early as possible, it is possible to retire earlier and reap the benefits of your hard work. Retiring these days have become more beneficial, thanks to a multitude of financial plans that prepare us for times like retirement. Apart from fattening your bank accounts, it is a good idea to consider investment planning for your retirement.

Some practical tips before investing

Be freed from bad debt first. There are good and bad debts. Good debts give you flexibility, tax deductibility, and low interest rates when getting loans. Good debts also help you build your finances. Bad debts, on the other hand, prevent you from moving forward. Being stuck in bad debt does you no good. If you are in this situation, seek professional help to get you back on track. Only then will it be a good time for investment planning.

Set your expectations. It is important to set goals pertaining to your investment. Tell your investment planner how much you want to invest in, how much you want as return on investment, and how long before you can obtain these goals. Set a timeline. Where do you want to be years from now? Perhaps you are retirement planning in Gold Coast, in the US, and so forth. Also, consider the traditional investments you would like to partake in and carefully study them with your consultant. Do you prefer mutual bonds, stocks, or property investment? Be honest with your consultant and make sure to understand financial terms and activities before you commence.

Hire someone with financial expertise

Experts and consultants have access to innovative tools that help them tell clients where and what to invest. Proper investment planning is crucial if you are not adept in where to put your money. If you also want to secure your future and retire with a smile on your face, consider contacting an investment planner to help you out.

Many people have the desire to save and invest, but do not know how to go about investing. Financial investment is such a big risk and without proper knowledge of finance, the world market, stocks, and the like, you are likely to lose money. Investment planning will save you from unwise investments. If you are not knowledgeable about how to better handle your finances, let a professional do it for you.

It is safe to say that the first things to invest on are the expertise, experience, and knowledge of professionals. There are many aspects of business and finance to invest on. Examples are property investment, managing funds, managing debts, and so on.

Investment planning involves a percentage of your savings or your money that will be allocated to buy stocks, properties, or mutual funds. Stocks provide a great way of leveraging your assets, but are likewise risky. Any unwise decision and sudden economic downturn would greatly affect the stock market. Unless you, as an investor, know where and when to buy and sell stocks, there is a good chance you will make decent income from this type of investment.

An investment planner can help you understand which of these financial investments can work for you.

How to Invest in the Best Bond Funds for 2012

Unless you know how to invest in the best bond funds for 2012 don’t invest in bond funds at all. For thirty years these funds were a great way to earn higher interest with only moderate risk, but the game has changed. Invest in the wrong funds now and 2012 and beyond could be a financial disaster waiting to happen.

Our Government has driven interest rates down to levels not seen in over 50 years, in an attempt to stimulate a struggling economy. This makes what used to be the best bond funds for safety a poor investment today. These funds invest in U.S. government securities: notes and bonds. If you invest in these funds today you will be lucky to earn 2% in interest income, and could end up losing money for years as the share price of these funds lose value. Let’s look at how to invest for higher income for 2012 and beyond with less risk.

There are three ways to invest in bond funds to increase your interest income, and two of them involve higher risk. The first way to get higher interest income is to invest in long term funds that invest your money in debt securities (bonds) that mature in 20 to 30 years. This is the riskiest thing you can do today, because long term funds will take a beating when interest rates eventually turn around and go back up. This is called “interest rate risk”, and above all else you want to control this, because this is the primary risk facing bond funds today. When interest rates go up bond prices fall, and long term issues get hit MUCH WORSE than shorter term securities and the funds that invest in them.

The first key to how to invest in the best bond funds for 2012 is to avoid the high risk of long term funds, and go with INTERMEDIATE term funds that invest in debt securities maturing in 5 to 10 years. Remember, interest rate risk is by far the greatest risk for bond investor for 2012 and beyond.

The second key to how to invest in bonds for 2012 is to avoid funds that invest in the highest grade or safest debt securities, especially those that invest in U.S. Treasury securities. At today’s interest rates you won’t even earn 2% interest (before expenses) in these intermediate term funds. The best bond funds to invest in to significantly increase your interest income without significantly increasing your risk: funds that invest your money in medium to high quality corporate bonds. Corporate America is in good financial shape, so there is little risk of default when you own a small part of a large diversified portfolio of these securities.

The third and best way to increase your interest income from bond funds in 2012 and for years to come involves no extra risk whatsoever. Every dollar you can cut from fund costs and expenses translates to money in your pocket. You can pay sales charges (loads) of 3% or more to invest with yearly expenses of more than 1% every year, plus additional charges and fees if you invest in the wrong funds. That doesn’t make much sense when you are simply trying to earn 3% or 4% (before expenses). The best bond funds charge zero in sales charges and less than ΒΌ% a year for expenses. They are called NO-LOAD funds, and are offered by some of the biggest and best fund companies in America. The simplest key to how to invest in bond funds is to always keep your cost of investing at a minimum.

In summary, the best bond funds to invest in for 2012 and beyond are NO-LOAD, MEDIUM to HIGH QUALITY CORPORATE, INTERMEDIATE TERM bond funds. That’s your best way to invest and earn a respectable interest income without taking on more risk than most folks want to accept.

Investments for Beginners: Something to Think About

Trying to prepare for the future, financially, is something that should be started as early as possible. When people initially begin making these preparations, they think about investing. Yet, not everyone is equipped with the knowledge that they need to make wise investment choices.

For this reason, it’s important to seek information in regards to investments for beginners.

Choosing to invest money is a choice that shouldn’t be made lightly. There is risk involved and you should know what they are. The idea behind investing is to take the little that you have and make it grow. Still, there are things that beginners need to take into consideration when they choose to invest.

Set Goals
Investments for beginners can be tricky. Most jump right in. The first thing that should be done is a goal list. Setting goals before making any investments will give an idea as to which direction to take. It should be decided if there is a need for long term investments or if the investor is trying to reap “immediate” benefits. How much is the investor investing and how much are they trying to get in return?

Set goals based on what the money is to be used for. For example, is the money going to be saved for retirement or college tuition? Maybe the investor is trying to gain finances to buy a home. What is the reason for investing the money?

Which Way to Go
After the investment goals are set, now is the time to figure out which way to go. Depending on these goals, you can choose a college fun, retirement fund or brokerage fund. Choose a vehicle that will aid you in achieving the goals that you have set. Of course, there is nothing wrong with going in more than one direction. This is usually the best way to handle investments for beginners because they get to see the differences in their investment choices.

Opening an Account
Once the vehicle of choice is determines, open an investment account. Knowing the type of investment you’re making will help you choose the institution to use. This is a simple step. You will simply provide your information and transfer your funds. Find out if there is a maturity time on your investment through your financial institution and what the fees are for early withdrawals. Many financial institutions employ specialists to deal with investments for beginners.

Investing money is a great way to ensure financial security for your later years. It’s a great way to prepare for paying for college. If option to invest presents itself in a lucrative manner, it should surely be taken advantage of. There are also investment options that don’t take a lot of money, research them

To close, you should know that there are some investments for beginners that work very well. Things like stocks, bond and mutual funds are highly popular for people just starting out. They tend to have a lower risk factor than most other investments. This is a little less stressful on those who are just getting involved in the stock market or investment game.

Key Factors When Buying Overseas Investment Properties

Overseas property investments can be a good way of diversifying your portfolio, and can provide you with new investment options. While once seen as rather risky, overseas property investment is becoming a convenient, and lucrative investment option, with relatively low risks. The globalisation of the business and financial sectors has brought about this change in perception, and shrewd investors now have the chance to benefit from it. Being aware of the benefits and risks of overseas property investment is crucial for developing your investment portfolio.

1. Benefits of overseas property investment

  • Portfolio diversification- Investing in overseas properties will allow you to diversify your portfolio by adding a wider range of investment properties that might not be available in your neighbourhood. You’ll be able to choose from a range of property types, such as BMV properties, buy-to-let properties, and residential or commercial properties. You will also be able to choose the exact location, and consider different price options. There are many emerging property markets nowadays that can offer better opportunities than the UK.
  • Minimise risks – By investing in overseas properties, you can significantly lower your risks. By diversifying your portfolio, you are effectively spreading out your risks over different types of properties, and if you have a range of investments, it is very unlikely that they will all perform badly at the same time.
  • Better chance of capital appreciation – As you can buy investment properties in emerging markets and can choose below market value (BMV) properties, your investment will have a better chance of capital appreciation. Property prices in an emerging property market such as Bulgaria are much lower than in many Western European countries, but as the market is expected to grow in the future, property appreciation will be more significant. Similarly, you can find a range of BMV properties in the USA property market.
  • Maximise profits- As your investment will have a better chance of capital appreciation, and you will have a wider range of properties and locations to choose from, you will be able to maximise your profits. Whereas overseas property investments do involve risks, especially for inexperienced investors, you can avoid most of these if you fully understand the risks, and have an effective risk mitigation strategy.

2. Risks of overseas property investments

  • Lack of local knowledge – If you are investing in property abroad, you will lack some essential local knowledge. You should read as many books and explore as many internet forums as you can, and ask for expert advice, while also keeping track of global property trends. You should also visit the location where you are planning to invest before buying the property. Even just walking around the area and possibly talking to people who know your property location better than you will enable you to spot any problematic points.
  • Currency Risks – Currency markets are quite volatile, and exchange rates can drop or increase rapidly. This can mean significant changes in your yields, so you should definitely understand and explore currency risks before choosing a location for your investment property.
  • Taxes and other regulations – Don’t assume that taxations and other local regulations will be the same as in the UK. Both are crucial factors to consider for overseas property investments, so try to get as much information as you can about your chosen country, and ask for expert advice.
  • Economic Instability – It is essential to understand the economic and political situation of your chosen country before buying an investment property. Economic stability or a growing economy is crucial for a successful property investment. By understanding local and global events, you will find it easier to determine which locations and areas are safer and more stable than others.