Investment, Stock News

Find a Methodology and Minimize Investment Madness

There are many reasons to be investing these days, and too much opportunity to not have your money working for you. However, I believe the majority of people dread having to deal with investment matters, and tend to jump into purchases and then hold their breath hoping for the best. After a long day at work and taking care of the family, it’s hard to get excited about reading up on your 401(k) options, Morningstar ratings and fund performances.

If this sounds like you, there are basically 3 choices.

1. You can have your investments professionally managed,

2. you can continue as you have in the past & keep your fingers crossed,

3. or you can find a methodology that objectifies the investing process (that’s buying and selling investments) and helps you maximize your long-term results.

To determine if you need help managing your investments(and this doesn’t necessarily mean having to pay for advice) you might want to ask yourself these questions:

Do I really have the time and interest to follow the market closely on a daily basis?

Have I done well in the past managing my own investments?

Do I really want to add another layer of work and responsibility onto an already busy schedule?

If you’re like most people, you would answer yes to some and no to others, so how do you decide? If you think you could have or should have done better with your investments, then you need some help. Don’t feel bad. Having counseled hundreds of people over the past 15 years I can honestly say that everybody needs some help, whether they are aware of it or not.

Why? This could come as a surprise, but, in fact, your financial life is a lot shorter than your physical life?

Most people who end up investing don’t really start working and making money until they are about 25 years old. Considering the average retirement age of 65, this gives you only 40 years to save and invest wisely.

If you make a poor investment decision, such as trying to stay fully invested during a bear market, you could lose big both in terms of diminished dollars and wasted time.

To drive home this important point, let me give you an actual example involving my own portfolio. For ease of illustration I have adjusted the beginning portfolio balance to ,000.

During the period from 1/25/91 to 10/13/00 my ,000 investment grew to ,840, which is a 14.67% compounded annual return.

On 10/13/00, based on a methodology I was following, I liquidated all of my domestic mutual fund positions and moved 100% to the safety of my money market account. Thanks to this move, my portfolio retained 100% of its value on that date.

As we now know with hindsight, most people held on to their investment positions and have so far lost on average 50% to 60% of the value of their portfolios. For this example let us use 50%.

If I had held onto my position, my portfolio would be down to ,920. Last time I hit that level on the way up was in 1995.

In other words, not only would I have lost 50% of my portfolio I would have lost even more by having used up 20% (8 years) of my total financial life.

How can you avoid mistakes like that in the future? Spend a little of your valuable research time looking for investment methodologies that allow you to side-step bear markets and let you move back in during bull markets. In other words, invest your time looking at methodologies instead of investments themselves. This will lay the foundation for more effective use of your money and time.

If you find a methodology that you like, and it matches your investment philosophy, stick with it for the long term. It should have the aspect of telling you when to get out of, as well as when to get into, an investment.

I suggest you follow these broad guidelines:

* Don’t be afraid to take a small loss to avoid bigger disasters.

* Stay away from commissioned sales people (because they have incentives other than your best interests), and if you use an advisor, be sure he or she is fee based.

* Above all, don’t get overwhelmed by news, rumors and predictions that are irrelevant to your strategy.

If you take this advice, I guarantee that pretty soon sleepless nights will be a thing of the past and you’ll be on your way to more confidently and successfully (that means profitably) managing your investments.

Find UK Property Investment Deals Which Suits You

Whether you are an experienced property investor or are searching to get a first stair on the property investment ladder, a unique approach to help you develop or start your investment property portfolio. Online property investment guides you to buy, to let and provides its clients a trouble free approach to property investment by offering an innovative Buy Already Let property acquisition service. Property investment can provide a colossal sense of contentment that you simply cannot find with other forms of investment. Property investment is now becoming a far more mainstream investment vehicle, straightforward to investors with the knowledge and foresight to spot lucrative investments before the competition can. Yet whilst they stay on relatively open and accessible, the road to successful property investment and land investment is scattered with those who have made a multitude of investment and other mistakes and paid the price.

So online firms are there to help you recognize your dreams of property investment, find the right investment opportunities and keep away the drawbacks along the way. By maintaining up-to-date with the latest news and articles featured on the many websites, you will gain the skills compulsory to make a benefit from your investment. If you have priority made property investment or know someone that has, you will know how hectic and nerve-wracking the process can be. Estimating the Cost measure of any decision you make is perilous- to assure you make the best choices to maximize your profits, long term earnings.

While most investors have got engaged in property investing because they know the chances to make money via leverage and capital growth or high yields, I still see and hear of many who do not fully understand opportunity cost. “Opportunity cost is a term used in economics, to mean the cost of something in terms of an opportunity predetermined (and the profits that could be received from that opportunity), or the most valuable foregone alternative. So in property investing issues, if an investor plans to invest in a property in the opportunity cost would be what he could have made by investing in Spain, France or UK. Analogously if an investor chooses to keep equity of 50k in a property, the opportunity cost is what he/she could replaceable have invested this money in and the resultant value.

Now again this will depend on your particular strategy – and many people are not too affected about opportunity cost, they are just keen to buy 1-2 properties that can hold onto for 15-25 years to use as a pension. All discriminating property investors understand the importance of taking advantage of the most cost-effective property investment opportunities as soon as they arise, before they become common knowledge.

Where To Find Investment Articles

Investment articles come in all shapes and sizes. Whether you’re asking, “What is a 401k plan” and are looking to learn more about early retirement planning or delving deeper into the roth ira limits and 401k providers, there is an article written just for you.

The future of middle-aged Americans will depend more on individual contributions, knowledge and economical fluctuations, rather than pension and social security fallbacks. Take the first step toward a supplemental retirement plan today.

Forbes is a fantastic place to discover your inner economist. It may look like a regular news site at first, but if you type “retirement investment” into the website’s search engine, you’ll find a plethora of engaging, easy-to-follow articles with aesthetically-pleasing arrangements.

The letters are bold and colorful, with complimentary charts and pictures that make learning and understanding second nature. You might want to stream video presentations or look at the “lists” section where you can find the 100 best mid-cap stocks or an international investment guide.

The “personal finance” tab is an invaluable resource for anyone looking for investment articles. From guru insights and investing ideas to taxes and mutual funds — finance has never been so much fun! Forbes.com is simply a “must” for anyone considering saving for their financial future.

The AARP website, a “must” for beginners, showcases investment articles on the latest scams, the differences between IRAs and 401ks and how to make the most of your savings.

Read about issues geared toward the aging retiree in an easy-to-read format. Look at charts and polls or simply find a list of 401k providers. No matter what you’re seeking, chances are your needs will be met.

Surely you’ve heard of Fortune or Money Magazine. Part of the CNN family, you can find an article about what to do with your 401k and read an interview with the richest man in the world at Money CNN.

You probably recall their annual “top 100 companies to work for” list and the “highest paid CEOs” list, making this magazine great for research, more than a dummy’s guide to investment articles.

You won’t find so many cut-and-dry explanations, but for the moderately educated and perpetually curious mid-lifer, Fortune and Money covers the hot button issues on Wall Street.

Bloomberg is a practical site that features not only investment articles, but also investment tools. Register and use the portfolio tracker and market monitor to easily keep tabs on your stocks, compare your funds with other top-ranked funds or use the personal calculator to keep your spending under control.

With a quick click, you’ll get Bloomberg radio and TV reports delivered instantly to your computer. Quickly view an economic calendar or check the top stocks, read current news or refer to the glossary to understand unfamiliar terms. This is not for beginners, but rather intermediates.

Investment articles can be informative, entertaining and inspiring. You can find questions to ask your banker or employer with regards to your retirement. You may choose to safeguard your savings by knowing 401k withdrawal rules.

Or perhaps you’ll wow your friends over coffee with some pertinent news tidbit. Being a curious and informed citizen is the only way to get ahead in life, and it seems you’re well on your way!