I’m beginning to think that’s Graeme Irvine’s mantra.

He’s the business columnist on Longer Life’s Bourse page, and I’ll leave it to you to discover his reasons for this four-word chant. Amidst Graeme’s siren calls, I’ve taken notice of his recent daily listings of silver transfers. It seems that HSBC-Hong Kong is in the process of accumulating a substantially high percentage of the current market inventory. The range is something like 60%, an achievement I find as breathtaking as it is intriguing.

Why would that much of the world’s investment-grade silver be moved to one depository? So far, I’ve not been able to find anyone willing to provide an answer. The accumulation is public knowledge, so I’m not suspecting a conspiracy.

I think most investors recall the Hunt brothers’ clumsy attempt to corner the silver market three decades ago — driving their Texan empire from billionaire to bankrupt within eight years — and wouldn’t think of trying to duplicate that stunt.

Super-investor Warren Buffet is, of course, much more sophisticated. His acquisition of 130million ounces of silver approximately nine years ago was made in tranches calculated to coincide with the market rather than drive it. All outward appearances indicate that he has no clandestine intentions; instead, he’s simply substantiating his confidence in the metal and possible lack thereof in the long-term strength of the dollar.

Perhaps the HSBC-Hong Kong hoarding is a result of an announcement made in June 2005 by the United Kingdom’s Barclay’s Bank in which they filed their intent with the USA’s Securities & Exchange Commission to establish an Exchange Trading Fund (’ETF’) for silver. Specifically, the applicant is a Barclay’s subsidiary, iShares Silver Trust, and the process gained momentum in January 2006 when the SEC approved their listing on the American Stock Exchange.

The Silver ETF is meeting with strong resistance, most notably by the Silver Users Association (SUA), who represent entities who make, sell and distribute products related to silver. Their complaint is that in order to support the ETF, so much silver would have to be taken out of the marketplace and held in reserve that its membership would be burdened by the metal’s higher cost. As the SUA membership processes 80% of all silver produced in the USA, they represent a significant voice in this matter.

Ted Butler is one of the most respected silver analysts in the world. His opinion is that, no matter what the outcome of the Barclay’s application, the entire episode is a positive development for silver investors.

First, let him explain how Exchange Trading Funds for commodities operate, and then describe how the Barclay’s proposal is being positioned:

“In order to establish a commodity ETF, a financial institution buys and stores a quantity of the commodity in question and then issues shares of common stock at a fixed unit of conversion to represent fractional ownership of that commodity. In the case of silver, Barclays would buy the metal, in industry standard 1000oz bars, have them stored in London and elsewhere, and issue common stock shares in a ratio of one share of stock for every ten ounces of silver. The shares would then be traded on a recognized stock exchange, hence the name, exchange traded fund. In the case of the Barclay’s Silver ETF … theyve even decided on the stock symbol, SLV. The amount of silver bought and stored would increase and decrease depending upon the investment demand for the shares, similar to how the gold ETFs currently function.”

The practicalities of a silver ETF include:

- Stock certificates are certainly easier for the investor to store than the metal itself, and

- The ‘common stock’ format allows more categories of investors the eligibility to participate.

What is interesting about the Barclay’s proposal is that its goal is to put 130million ounces of silver into reserve, the exact level of Warren Buffet’s holdings. Could they be using that precedent as a model? Burton notes that even though Buffet was careful not to disrupt the market, the price of silver still doubled during that accumulation. Furthermore, Burton says, “I see nothing in the Barclays prospectus suggesting such buying restraint, either in time or price.”

So, Butler reasons, this makes the situation most favorable for involved investors:

“This silver ETF announcement is a true win-win for silver investors. (If) their silver ETF becomes effective, the impact on the price of silver will be great. Thats win number one, obvious and straightforward.

“But if … this ETF never sees the light of day, that will be a big win as well for silver investors. Why? Because it will prove for all to see just how critical the supply/demand and inventory situation is in silver. If the government says no way to this ETF, it will be for one reason only there is not enough real silver in the world to fund it.”

Either way, it’s a development worth watching. Graeme lists the Comex figures daily at the end of his column and always mentions when another allotment of silver moves to HSBC-Hong Kong. The growth of those figures could well be the ‘tracer’ of things to come.

Stay long precious metals.

Related posts

• Gold, a Hedge Against the Perils of Interesting Times (0)
• Four Real Estate Investment Tips, that you can learn from (0)
• For best advice on real estate investment contact a real (0)

ROI

Return On Investment, the ROI, refers to the amount of profit you earn on every dollar spent. Two businesses may sell product A for $100 each. Company A may have an ROI of $40. Company B has an ROI of $20.

Both of these companies sell the same product, for the same price, but company A is better organized, has fewer expenses, and sells more products for the same cost.

A low ROI can be the result of poor office management, or a poor sales record. There are several different factors that may lower the ROI. But, in short, the ROI is based on the number of sales you can generate on your yearly operating budget.

The more sales you generate, the higher your ROI.

There are several ways to increase your ROI. The first is to take a close look at the cost of operating your business. Many businesses operate under a lot of waste. They hire a full time secretary when outsourcing would be sufficient.

The second method is to tighten up the companys sales network. This may involve spending money on research. It may require and investment in time to learn what your consumers want, need, and what problems draw them to your product or service.

Two-Way Marketing

Most companies that have a low ROI also lack a two-way marketing plan. They may do market research, or run some surveys, but they also lack of two way communication between the company and the consumer.

Many high-profile companies believe that courses, convention weekends, and marketing surveys are good substitutes for two-way communication between the company and the consumer.

Unfortunately, all of these types of marketing are one way. They keep the company in control of the information control. The consumer has only two choices. They may respond to the company representative or agent, or they may remain quiet.

Two-way marketing allows customers the opportunity to voice their opinions, concerns, and write their own content. Then the company collects the information and uses it for marketing, even if it contradicts their current target marketing efforts.

Television companies do this. They consider that 1 response to a program is worth 1000 responses. So, a company that has 10 responses that suggest a new problem, or concern, can represent another 9000 or 90 000 people who did not take the time to respond.

This type of marketing is not an inconvenience to overlook. It is a powerful marketing tool that can be used to find secondary markets or products that might increase your ROI.

For example, lets say that you sell a how to start a business course. However, your course package offers a mentorship program that includes 1 hour a month with a certified Success coach. This not only sells a business to consumers, but it sells problem solving.

Profit

Increasing ROI will also increase the profit. There are a thousand methods of increasing an ROI. The easiest to understand, and cheapest, is to build two-way marketing between the consumer and the company.

Related posts

• How To Communicate Value Proposition And Return On Investment (0)
• Getting the Best Return on Investment for your Fundraiser (0)
• Categories of Real Estate Investment (0)
• HYIP Investment (0)
• How To Select The Right High Yield Investment (0)

High yield bonds can offer many advantages: 1. As the name implies, high yield bonds frequently have higher yields. They can be called (redeemed) earlier, which is one reason investors receive higher interest payments. In general these bonds have shorter maturities. Downturns in this investment category have not been as dramatic as in other investment categories.

2. High yield bonds have become a large global market and lack of liquidity is not a huge concern.

3. High yield bonds are not perfectly correlated with other investment categories.

4. High yield bonds have to earn higher returns in order to compensate investors for higher risk. High yield bonds tend to combine the higher returns associated with equities and the lower risk associated with bonds.

5. These bonds will fluctuate based on more than just the direction of interest rates; they will also increase or decrease in value as the issuing company improves its financial performance.

During the previous five years, high yield bonds have generated superior returns compared to more conservative bond funds. However, these returns are less than those of some aggressive equity funds. Investors should invest a portion of their portfolio in this investment category to reduce their risk and increase their income and return potential.

High yield bonds play an important role in a well-diversified mutual fund portfolio for both the conservative and aggressive investors. This sector will still incur risk; but the worst downside risk displayed by this investment category was a loss of 8 percent. Investors who want to capitalize on the opportunities of high yield bonds could consider several mutual funds.

Related posts

• Blue chip stocks – not a poker game (0)
• What Is Your Investment Style? (0)
• Long Term Investments for the Future (0)
• Incorporating Bond Funds Into Your Investment Strategy (0)
• FOREX: The Other Investment Vehicle (0)

First of all, the main question you must ask yourself before investing in any HYIP is: “Do you plan on investing money that you will definitely need in the future?” In other words, is your life going to be made worse off if you lose the money that you plan to invest? Unlike secure Stocks, Bonds, and other financial investments, HYIP’s differ in that they are more like a game of poker than a true investment. As an HYIP investor you must be able to tell if the Program admin is bluffing or telling the truth. Are there signs of a bluff, such as; massive advertising campaigns, cheap hosting of the site, warnings from other investors, or extremely high payout claims? If so then you can avoid that particular program. The problem is that not everyone is a poker (HYIP) expert. It’s often hard to distinguish between a bluffer or an honest admin.

Also just like poker, you shouldn’t go in expecting to play one hand and leave a winner. You must bring enough money to the table to play a while and use your skills to outsmart your opponent. People often email us asking where they should invest their $5. We usually respond telling them to put it in the bank instead. In our opinion you should not be investing in HYIP’s with under $50. Why do we say this? Well usually the less money you have to invest, the more of a return you want to earn. With only $5, investing in a program that pays 5% per week (even though it’s probably more stable) would not be appelaing since you would only earn 25 cents per week. Instead, most people with low amounts of money tend to go for the big quick payers, ie. programs that offer 10% per day or more. Usually these programs are scams right from the start. If however, you have $1000 to invest you can easily put it in several low paying secure programs (perhaps 5 programs each paying between 4-10% per week). This way you are earning a noticable amount while also being safe and secure.

The best advice we can give you is to learn a strategy. Just like in Poker, a smart player can outsmart his/her opponents and walk away a winner.

Related posts

• Gain an advantage with hyip investment (0)
• Different Types Of Real Estate Investments (0)
• Long Term Investments for the Future (0)
• How To Select The Right High Yield Investment (0)
• How To Make Money With An Investment Property Company (0)

Bond funds can offer investors many of the same benefits of individual bonds, in addition to the advantages of diversification and professional management, according to “Bond Funds: The T. Rowe Price Investment Guide.”

Investing in bond funds is different from individual bonds. When you invest in a bond, you lend the issuer money. The issuer then pays you regular interest for the duration of the bond and repays the principal at the bond’s maturity date, provided the issuer does not default.

A bond fund is a mutual fund that comprises many bonds, with a professional fund manager who buys and sells securities to keep the fund true to its specific investment objective. A bond is a debt security, similar to an IOU. Bonds can serve as an attractive “middle ground” between stability (cash) investments and stocks, offering investors the potential for more meaningful returns than cash investments – with less overall volatility than stocks.

An appropriate asset mix is essential to your long-term investment success. Although diversification cannot protect against loss in a declining market or assure a profit, a diversified portfolio should be less volatile than one that’s invested in just stocks. That’s because the underperformance of one type of investment may be offset by the strong performance of another.

Investing in a combination of short, medium and long-term bond funds can help you pursue income while addressing the risk of rising interest rates. This is called laddering.

Remember that shorter-term bond funds carry a lower risk and return potential than longer-term funds. That’s why a diversified bond portfolio can provide a continuation of income, along with some protection from the impact of rising rates.

As an example, a laddered bond portfolio might consist of bonds with one, five and 10-year maturities. Investing in both shorter and longer maturities can help your strategy stay on track during both high and low interest-rate climates.

T. Rowe Price offers a variety of 100 percent “no-load” bond funds, meaning the investor does not pay sales charges or commissions.

Related posts

• Day Trading or Investing for the Long Haul? (0)
• Be Cautious When Studying Mutual Fund Ratings (0)
• 10 Tips For Buy-To-Let Investment Success (0)
• Investment Strategy (0)
• How To Select An Investment Strategy (0)

Recently, there was an article on CNNMoney that spoke about the secrets of the elite rich in the United States. In turn, several articles were written about this article, including one that stated that the richest of Americans built their wealth with diversification, wealth preservation and strategic growth. That is a ridiculous statement in itself because two of those strategies, diversification and preservation dont help build wealth. Perhaps the richest of Americans use these two strategies to maintain an even keel AFTER they have accumulated great wealth, but certainly they didnt use them during the accumulation phase. According to this article, a survey of Northern Trust uncovered that the richest Americans do not heavily rely on high-risk investment vehicles like hedge funds to make money, but are moderate risk takers who put more than half of their asset allocation into U.S. stocks and cash.

Again, just as former hedge fund manager and multi-millionaire Jim Cramer said that he used certain financial journalists, including ones employed by the Wall Street Journal, as pawns to spread misinformation far and wide to benefit himself, again this is an example of investment institutions using the media as pawns to spread their myths to keep the masses of retail investors ignorant. The CNNMoney article made it appear that the richest of Americans built their wealth by being conservative and slowly growing their money over time. Thats an oxymoron right there. To state that the rich became rich by slowly growing their money over time. Well, if they are slowly growing their money and becoming even richer, then this implies that they were rich to begin with. So how did they accumulate wealth? Surely not by slowly growing their money.

Sure, some of the richest Americans do not heavily rely on high-risk investments because they ARE ALREADY EXTREMELY RICH. The majority of ultra-rich do NOT build their fortunes by speculating on high-risk investments as is commonly believed. Often they build fortunes utilizing volatile assets and investments but that does NOT mean they were engaging in risky behavior. Many times, investing in a hedge fund can be much riskier than investing in some of the assets that your investment firm will tell you is risky. But investment firms will gladly place a portion of your money in hedge funds because the fees they earn from hedge funds are so high even as they advise you not to put your money in a much less risky investment with much greater earning potential. And THIS IS THE SECRET that investment firms never tell you.

Volatile assets that often can be used to build great wealth are NOT RISKY if they are purchased at entry points that are extremely favorable and provide a low-risk point of entry. 99% of investors dont understand what high-risk investments truly are because they have been misinformed by their advisors and their firms for the past half of a century. Purchasing volatile assets at low risk-high reward entry points greatly mitigates and neutralizes the great majority of risk of volatile assets. If you dont understand this concept then you need to.

Many millionaires that are wealthy but that could be extremely wealthy fail to build enormous wealth because investment and financial institutions mislead them about certain investment opportunities and describe them as complex and risky and are able to convince their clients of this belief because they never properly explain risk-reward scenarios to their clients. However, those investors that are extremely wealthy are the rare breed that understand this concept. If investors had a choice between allocating $1,000,000 in a historically volatile Investment A that has a 78% chance of returning a 250% gain versus an Investment B that has a 95% chance of earning 9%, most investors would choose Investment A.

However, because Investment A may exhibit 50% more volatility than Investment B, the great majority of advisors would steer their client away from the former investment into the latter one. In fact, this is exactly what even prestigious firms that cater to ultra high net-worth clients do because they allow misinformed, uneducated investors dictate the rules of engagement to them, and they would much rather appease such powerful, important people with slow,minimal gains rather than empower and enlighten them and boost their returns like never before. They would choose to steer them away because they present the investment opportunities incorrectly, merely telling their client that while they could earn 350% from Investment A there was also a very realistic probability that they could lose $300,000, and that shooting for the slow but steady $90,000 a year is much better for them.

If you are thinking to yourself, That makes absolutely no sense? Why would firms not earn 20% a year for their clients if they could instead of 8% a year? The answer is because the overwhelming majority of investment firms, no matter how prestigious their brand, are merely highly glorified sales machines. They fail to convince clients to invest in phenomenal investment opportunities that sometimes arise like Investment A because in order for Investment A to be a moderate risk, very high reward investment, it must be entered at a low risk entry point so that the probability of being down $300,000 at any give time would be reduced from perhaps 50% to 20%.

And that even if their timing is not optimal, then a firm must educate the client that as long as they dont panic when they are down, the odds are still extremely high that they will earn a 250% or better gain. However, the greatest factor that determines why firms will not seek this strategy is time. Engaging in much better strategies such as these for their clients would take massive amounts of time in client education and enough time in research that the amount of assets gathered would take a serious hit.

So because it is not in a firms interest to engage in activities that maximize portfolio returns (unless it is their own institutional portfolio), instead, we have Chief Investment Officers at top investment firms making statements like, “Generally they [the richest of Americans] want to see prudently managed growth without a lot of surprises, which is why we emphasize diversification.” Again, this is a sales & marketing campaign statement, not an aboveboard statement about how to make money for clients.

If clients are uncomfortable with strategies that would actually built great wealth for them instead of producing mediocre or subpar returns, their discomfort only originates from the fact that the largest investment firms have been deceiving their clients, just as Jim Cramer had deceived the thundering sheep herd for years, about the realities of building wealth. This discomfort originates solely from the fact that he or she has been kept in the dark for so long. Thus, we have a misinformation-driven cauldron of investors making bad investment decisions that exists today. In 2007, youll still find Chief Investment Officers of very well known firms making ridiculous statement that investors need to invest at least 50% of their stock portfolio in U.S. stocks if they wish to grow their portfolios exponentially.

How are they going to grow their portfolios exponentially with more than half of their stocks in a stock market (the U.S.) that has NEVER been the best performing market in the past 25 years (even among developed stock markets)? How will they grow their portfolios exponentially by buying stocks in market that trades in what is quite possibly the worst currency on earth among developed markets (the U.S. dollar)? Yes I know that when the U.S. dollar shows a brief spike in strength as is likely to happen soon (Im writing this article in April, 2007), that many people will question what I am saying, but this is only again because they are victims to the mass deception mind-games of the investment industry. I suppose if planning to earn better than subpar returns in your stock portfolio is engaging in risky behavior as Chief Investment Officers of various firms claim, then yes, I whole-heartedly endorse engaging in risky behavior.
And because so many people, yes, even those considered quite wealthy, fall victim to the preaching of investment industry demagogues, there is a second mistake that many rich investors will soon make.

Another survey of wealthy U.S. investors uncovered that a large percentage of investors with investment assets of over a million do not employ any type of investment advisor but plan to do so soon giving the increasingly gloomy nature of the U.S. stock markets. To that, this is what I have to say. Making money in difficult markets is ten times more difficult than making money in bull markets. If investors believe that it will be increasingly more difficult to make money in U.S. stock markets, but yet top investment firms in the U.S. continue to preach that more than half of your portfolio should be in U.S. stocks (mostly to cover their respective firms inadequate coverage of emerging markets), how is the hiring one of these men possibly going to improve these investors future performance outlook?

But there is an EXTREMELY important distinction to be made here. What Ive written above applies to the behavior and mindset of some of the richest people in America, but not THE very richest people in America. The very richest people in America, those you might categorize as the worlds ultra-rich, possess a very different mindset and behavior set than those that are just rich. The ultra-rich have positioned their portfolios extremely differently from how the rich people discussed above have positioned their portfolios. The reason why articles regarding their behavior and investment decisions are virtually non-existent is because they dont grant interviews and they dont want people to know what they are doing. But Ive investigated what they are doing, and trust me, it is nothing remotely similar to the behavior of wealthy investors described by Northern Trust and other investment firms.

If you would like to find out why the ultra-rich always manage their own money or able to find the 1 in a million consultant truly capable of providing them the returns they desire, consult our resource of 101 Reasons Why Managing Your Own Money is the Only Way to Build Wealth. Even if the ultra-wealthy have someone managing their money for them, the only way they were capable of finding this 1 in a million financial consultant was due to the fact that if they had to, they could manage their own money successfully as well. Only be first fully understanding the most successful investment strategies themselves could they identify an advisor capable of employing such strategies. However, a great majority of ultra-wealthy continue to handle and make their own investment decisions.

Related posts

• What Is Your Investment Style? (0)
• How to Avoid Dumb Investment Mistakes (0)
• High Risk, Moderate Risk And Low Risk Investments (0)
• Good Investment Advice: Only For The Rich? (0)
• Four Real Estate Investment Tips, that you can learn from (0)

In 2008, Bill Gates, the world’s richest man, will step back from the daily operations of the company and delve into more philanthropic work.

Why the long goodbye? Why not make the departure short and sweet? Probably two reasons: to make the transition easier, and to quell the tension of nervous investors. After all, the departure of the world’s most famous CEO cannot be an easy pill to swallow for some.

Though most investors have swallowed the pill with relative ease. Since announcing his exodus, Microsoft’s share price has risen 8% and continues to gain momentum. Maybe Gates’s recent departure plan is a textbook example of how some CEOs should let go of the reins.

But what does the retirement of Gates have to do with penny stocks? A lot I think. Microsoft started out small…just like most penny stock companies do. And, sniffing an unexploited opportunity…they jumped in and made history.

And that history has spawned operations in 102 countries with a staff of 61,000. Microsoft’s software is also used on close to 1 billion personal computers worldwide. Regardless of whether or not you send Bill Gates a birthday card each year, you cannot underestimate the role that Microsoft has played on our society.

And that success has in large part, been the results of having a strong, creative management team. Sure a lot of CEOs like to be thought of as the mast head…but Gates is a little more subdued, saying it’s important for folks to get “beyond the myth of one person doing a high percentage of things.”

So, if you want to invest in a successful penny stock company, look for one that is in a strong growth industry and one that has assembled a great management team. A creative management team means that the loss of a CEO will not mean the demise of the entire company. This is not always the case with some penny stock companies.

The loss of a CEO shouldn’t be disruptive; it ought to be a sign of new possibilities and fresh thinking.

That said, I’m not looking for the next Microsoft. Im too impatient to wait 20 years to see giant gains. What I want is a penny stock company with the same insight, and enthusiasm of a Bill Gates and Paul Allen.

Picking a good penny stock is not easy. It’s more than just numbers. Ultimately it’s about the people who run the ship. A lot of great companies never leave the harbor because their leadership is rudderless.

It may sound pretty basic, but I’m willing to bet that a large majority of people never investigate the management team of a penny stock company they’re interested in.

Want to find out if your penny stock pick has what it takes to be a winner? A little research is all it takes. After all…publicly traded penny stock companies are responsible to you the share holder.

So if you have any questions about who’s running the company, check out their website (and they really should have one in this day and age). Or, call the company’s Investor Relations department, or, better yet, call and ask for the CEO.

With a penny stock company your chances of being able to speak to the CEO directly are quite good. Your odds of picking up the phone and speaking directly to Bill Gates and Warren Buffet are not.

Related posts

• A Murky Crystal Ball (0)
• Help Is on the Way for 401(k) Investors (0)
• Discovering Turnaround Candidates (0)
• Day Trading Penny Stocks – Is It Really Worth The (0)
• Can You Invest With Just $100? (0)

One popular choice of investment is that of oil stocks; the reasons for its attractiveness are incredibly diverse. And deciding whether you want to involve yourself in this particular industry is a very personal choice.

Oil stocks are generally thought of as a safe and consistent investment. The need for oil will never dissipate; the theory is that oil stocks will continue to hold their value because of the demand for the product.

Not every oil stock is the same. And so each stock must be researched thoroughly to avoid any surprises. You must first determine whether a particular oil stock is overvalued. Some oil stocks may look to yield a dramatic return on investment but the earning ratio must be considered; such a large profit margin while appealing may indicate volatility.

Another thing to consider when deciding whether to invest in oil stocks is to choose between what is referred to as a Trust Unit and a Common Share. Trust units are a conservative form of oil stocks that does not attach tax to the stock. The growth that the oil stocks can achieve – in the form of a trust unit – is limited but the risk is also minimal.

The riskier oil stocks are what are known as common shares, whereby earnings by the company are reinvested into the stock. This type of oil stock carries a greater risk but the possibility for greater reward.

Finally, you need to make the decision between natural gas or oil stocks. Natural gas not as consistently in demand as oil tends to be more unpredictable. These are things to keep mind when making your decision.

Whatever you choose be sure to conduct thorough research before making any purchases. There are plenty of online resources available for those looking to begin trading on the stock market.

You may also want to consult a stock market professional who can expertly guide you through the process of buying and selling oil stocks. Its okay to ask questions. Stop at nothing to learn all you can about oil stocks and the stock market in general.

Deciding whether or not to venture into the stock market can be an enormous decision. Oil stocks can be a relatively predictable way to begin your journey.

Related posts

• How To Start An Investment Club (0)
• Finding Hot Stocks In The World Of Investment (0)
• Can You Invest With Just $100? (0)
• Basic Principles Of An Investing Club (0)
• BALLON STRANGLES, A BETTER TRADES STRATEGY (0)

Oh, that’s an easy one. I can answer that in one word. FEAR.

Real estate investment is a great way to change just about everything in your life, but it’s one of those things where doing it for the FIRST time is the toughest. In fact, the second is exponentially easier!

It’s fear folks, plain and simple! And why doesn’t make much sense to me. Consider that:

- “Everyone knows that the surest path from low income to millionaire is through real estate.” This appears to be a well-documented truism. I’ve seen a similar statement in some of the most prestigious financial resources on the planet.

- I rarely hear of someone losing it all from real estate. I might be living in la-la land, but for the most part I only hear of folks prospering from real estate investing. Sure, occasionally I hear of deal going bad or growing complicated, but not to the point of ruining folks.

- There are a lot of properties available. Folks are still divorcing, dying, or just not paying the bills and getting foreclosed on. Much of the foreclosure activity is not SEEN by the public, but most of it is available to the public.

- There are a lot of properties available at below market prices. That’s been my experience anyway. Of course, I have folks right here in my area that tell me they can’t find properties. I just smile and nod my head.

- Rental demand is strong and rents never go down!

So with all this common knowledge and raw opportunity out there, why isn’t everyone investing in real estate?

Here’s my theory.

* Real estate transactions are more involved than going to Wal-mart for a pair of undies, so that scares people. You have to learn a little bit. Mind you, this isn’t a lot of learning, but it is apparently enough to keep some on the sidelines.

* The numbers are big. I’ve seen folks nearly CEASE UP mentally talking about large amounts of money. Merely talking about a $100,000 mortgage causes some people break out in a sweat.

* Horror stories. Everyone’s heard about some scam, sink hole, meteor or something else on the fringes of believability that has happened somewhere at sometime. I mean, there is SOME risk involved.

* Fear of taking action! It’s hard to do something you’ve never done, and harder to do something you’ve never done before in a subject matter on which you aren’t an expert! People fear something, which makes facing that fear hard. What I’m referring to is what I call, “IT’S EASIER NOT TO.”

So what does one do to face fear and make a change in their life,

Ah, that’s just as easy as the last question. I can also answer that in one wordKNOWLEDGE.

Once properly armed with the knowledge they need, most folks can overcome their fears to the point of taking action.

So if you are contemplating taking your financial future into your own hands by investing in real estate, FOCUS on one thing for the next 3-6 months. Buy books or courses, got to real estate investing club meetings, visit websites and get on discussion groups. Let those things be your action steps for awhile. I suspect you’ll be ready to dive into the market with the knowledge you’ll gain.

I have a motto.

“Knowledge Always Precedes the Money.”

Related posts

• Foreclosure Investing – The Fastest Way To Get Started (0)
• How to Find a Good Real Estate Investment Property (0)
• Best Investment Real Estate Locations (0)
• How To Start An Investment Club (0)
• How To Make More Money Using Options In Online Investment (0)

According to a recent study by human resources firm Hewitt Associates, most employees didn’t rebalance or re-allocate their 401(k) portfolios in 2004. Only one in six actually made a transfer within their 401(k) accounts that year.

The study, which examined more than 2.5 million employees eligible for 401(k) plans, also found that many participants were taking on too much risk by investing a significant portion of their savings in a single stock. Company stock was the single largest holding, accounting for approximately 27 percent of participants’ total 401(k) balances. And more than a quarter of employees held half or more of their total 401(k) balances in their employer’s stock.

While some employees took on too much risk by investing heavily in company stock, other employees didn’t invest aggressively enough. The study found that workers in their 20s invested less in equities than workers in their 30s.

Now there’s help for investors who don’t have either the time or the expertise to manage their own 401(k) investments. Defined contribution plan providers such as AIG VALIC, Fidelity Investments, Great-West Retirement Services, Merrill Lynch, the Principal Financial Group and TIAA-CREF have partnered with Chicago-based Ibbotson Associates to manage participants’ accounts.

Eligible participants who elect the service will have their money allocated to a customized portfolio that is rebalanced regularly and adjusted over time to reflect the investor’s changing life circumstances.

“401(k)s are becoming the primary savings vehicle for retirement in this country,” says Roger Ibbotson, chairman and founder of Ibbotson Associates and finance professor at the Yale School of Management. “With so much riding on your 401(k) account, it’s very important to get professional, unbiased advice.” – NU

Related posts

• How To Make Money With An Investment Property Company (0)
• Hi, May I Speak With Bill…How About Paul? (0)
• Guidance for Retirees on Managing Investments (0)
• A Murky Crystal Ball (0)