Investing
Putting a Gleam in Your IRA
The Frugal Guide to Building Wealth
So you want to build up some savings and family wealth? There’s nothing wrong with that. It’s only the love of money that’s the root of all evil. The often misquoted verse is located in 1 Timothy 6:10.
For the love of money is the root of all evil: which while some coveted after, they have erred from the faith, and pierced themselves through with many sorrows. 1 Tim 6:10
The Contemporary English Version puts it this way:
The love of money causes all kinds of trouble. Some people want money so much that they have given up their faith and caused themselves a lot of pain.
This is actually the theme of many modern movies. As the star chases wealth it results in his own destruction.
But the Bible also admonishes us to provide for our own families and take care of them and God blesses those who use their money wisely.
In this short guide you will get tips for gradually increasing your wealth while living up to your convictions. This is not a get-rich-quick guide, but a method of using wisdom and dedication to create the savings you need to provide for your family.
What’s Your Goal?
First of all, you need a plan for what you will do with the money. Perhaps you are saving to get your first home. Some people save for weddings, college funds for the kids, a retirement account or even a long-postponed family trip. It doesn’t really matter why you want to save, but it’s helpful to have goals in mind as you follow these steps. Read the rest of this entry »
Strategy vs. Tactics in Investing
Strategies for Junior Mining Investors: The Whites of Their Eyes
by Louis James, Senior Editor, Casey’s International Speculator
“Don’t fire until you see the whites of their eyes.”
Most Americans were taught in school that William Prescott, commander of the colonial forces on Bunker Hill, gave this order to his men on the morning of June 17, 1775, just before the British attacked them.
Some may even remember that while the British took the hills, they did so at such great cost, it wasn’t much of a victory. The American forces repelled the British twice and were finally overwhelmed when they ran out of ammunition – an outcome that obviously concerned Prescott and provoked his order to conserve ammunition. It was vital to use each shot as effectively as possible.
I think of this often when contemplating investing, because I sometimes feel an urge to get all of my investment cash deployed NOW. I might miss the next big uptick! And even if not, modest double-digit gains are still better than money sitting in the bank. This urge gets strong when the market gets hot, as it has been over the past months – look at all the gains I missed!
Structuring IRA Distributions To Avoid Penalties – Secure Harbor Planning: A Few Useful Ways
IRA Distribution Rules are a mine field. One incorrect move and you can discover yourself faced with high taxes and penalties that may wipe out years of savings and investment. Complicating issues is the Darwinian evolution of IRAs that have taken place since the pioneer IRA was introduced in ’74 with the enactment of the Employee Retirement Income Security Act (ERISA ). Since ’74, IRA rules have altered dramatically and legislation was enacted to rigorously punish those who don’t follow the rules, to the letter of the regulation. IRAs come in a lot of flavors but, for purposes of this article we’ll focus on the two chief types of IRAs: Traditional IRAs and Roth IRAs.
Techniques for Minimizing Penalties on Early Distributions
Normally, any distribution from an IRA before you reach age 59 1/2 is considered an early distribution and is subject to a 10 percent penalty on the taxable quantity received in a distribution. There’re certain Roth IRA information that can be used to avoid the burden of this early withdrawal penalty. Read the rest of this entry »
INVESTMENT PLANNING: Alternative Investment Broker Can Save Your IRA, 401k
Henry Ford said “Any customer can have a car painted any color that he wants so long as it is black.” Does it feel like Henry designed your 401(k)? You can put your money anywhere you want as long as it’s in one of these funds. Even if you have a choice of 3,000 funds, your money is still in the stock market. How’s that working for you? You need some better options. I’m sure you’ve heard the old saying “don’t put all your eggs in one basket.” Well no matter how diversified your investment in the stock market is when the market goes down, you lose. You need an Alternative Investment Broker for your investment planning.
Because you don’t have a lot of money or investment knowledge you’re probably not even aware of some of the ways rich people make money. A famous life philosopher Jim Rohn once said:” if you want to be rich study what poor people do and don’t do that”. Here is a list of some things poor people do. I have done every one of them, so I am speaking from personal experience. Read the rest of this entry »
Stock Trading Education: A Primer For the New Investor
Investing on a Fixed Income
Observations from a Certificate of Deposit (CD) Investor
All of us have money that we cannot afford to lose. The rest of our cash goes into the stock market. How much goes into each category is a personal choice. This article addresses the ‘cannot afford to lose’ money and offers some tips on how to invest it in CDs.
We all should keep some money in an emergency fund. Consider the recommendation to have three to six months living expenses on hand. If CDs are a part of your emergency fund, have enough cash to last until that next CD matures. The interest earned here might lose ground to inflation; just consider that as an ‘insurance premium’ that allows you to have instant access to cash when you really need it. Shop around for a Money Market Account for the emergency fund when checking CD rates.
The Internet is a great help when tracking current rates. Everyone from national banks to the local credit unions have web sites. Most list the rates on their site. I have noticed some patterns in my years of investing in CDs. Perhaps they will help you too.
The largest banks offer the worst rates. They have stockholders to pay and their rates reflect the additional cost. Recent failures of big banks indicate that ‘big’ does not always mean ‘safe’.
- Internet banks offer higher rates. There is a bit of hassle transferring funds to and from the bank; decide if the rate is worth it.
- Credit Unions offer the best rates. Check your local area. Many credit unions offer membership to people who live in a certain area or attend a certain church. Your employer may already provide a membership opportunity.
- Don’t overlook local savings banks or thrifts. A savings bank in my area is 110 years old and offers CD rates that match the credit unions.
Of these options, I have the best results with credit unions. They might not tell you this, but if you find a higher rate at another financial institution, most credit unions will match or exceed that rate. I maintain a spreadsheet with all the local rates and bring it with me when it is time to renew a CD. Show the higher rate to them and they will adjust theirs. After all, at a credit union YOU are the stockholder.
The CD term (length) requires a bit of thought. Many people use the CD ladder concept where each time a CD matures, it is replaced with a five year CD. When rates are low, I do not buy five year CDs. Currently, I can get 3.3 percent for five years or a 3.5 percent special rate for one year. So I’ll keep buying these specials until rates exceed five percent again. That’s the time to go long.
If someone says you won’t get rich this way, they are right. But remember- this is money you can’t afford to lose.
James Eubanks is a 54 year old retired computer systems administrator. He retired at 48 due to a disability. He receives a defined benefit pension and Social Security Disability so his goal is to make it grow as much as possible without loss. His wife is still working, her 401-K dropped “only” 20% during the 2008 debacle – not bad compared to others. Proving to Jim the value of some safe money. He says, “It should be anywhere except the market. With this safe money hidden away, we can invest other cash in the market and not worry about the short term losses”.
Guaranteed Easy Ways To Gaining Financial Freedom
By Cornelus Postell
Does not having to worry about monthly bills seem like just a fantasy to you? Do you ever wonder what it would be like, if money matters didn’t matter? Wouldn’t it be great if at this very moment your financial situation were in order? The answers to all these questions, my friends, are closer to reality than you think. Stepping forward by using simple strategies will make a major difference in your personal finances just as it has for me. Financial success is an easy and simple process once you decide mentally that you must take immediate action! Read the rest of this entry »
The absolute best place to invest!
By Todd Williams
If you ever thought for a moment that the stock market is a confusing place, you are absolutely correct! Understanding the market is like trying to predict which way the wind will blow two days from today on the planet Pluto!
The reason why it is difficult to predict which way the market will go at any one time is because the stock market is like raindrops on a car window. You have no idea why the rain moves the way it does on a car window, and you have no way of predicting what millions of people are thinking at any one time! Read the rest of this entry »
