Hi! Welcome to my basic investment blog. If you were investing in bonds, do you think you know the different types of bond to invest in? Do you know if it's a safe investment? Maybe after reading my article today you might able to answer those questions for yourself, and determine if it's something you want to do. First, there are four types of bonds available that are sold through Government, Corporations, State and Local Governments and Foreign Governments.
It is said that with bonds you will get back your initial investment, and that it makes the prefect investment vehicle for those who are new to investing, or for those who have a low risk tolerance. Again, you would have to determine that, and maybe with your financial planner. Please review one of my previous articles on the "how to determine your risk tolerance" Click here!
The United States Government sells Treasury Bonds through the Treasury Department. You can purchase Treasury Bonds with maturity dates maybe ranging from three months to thirty years. Treasury Bonds include Treasury Notes (T-Notes), Treasury Bills (T-Bills), and Treasury Bonds. All bonds Treasury Bonds are backed by the United States Government, and tax is only charged on the interest that the bonds earn.
Corporate Bonds are sold through public securities market. And this is essentially a company selling its debt. They are a bit risky if the company goes belly up, then the bond can become worthless.
State and Local Governments, unlike bonds issued by the federal government, these bonds may have higher interest rates, and are free from income taxes-even on the interest. This is called Tax-free Municipal Bonds. To learn more about "what is a bond". Visit here!
Purchasing Foreign Bonds is actually difficult, and is often done as part of a mutual fund, and very risky to invest in foreign countries. The suggestion here is that it may be safe bet to invest in bonds that is issued by the US Government. For best results, when a bond reaches maturity, reinvest it into another bond.
To invest in bonds, visit Scottrade.com
My time is up....stay tune for more. Happy investing!
PS: Always investigate before you invest!
Monday, April 9, 2007
Tuesday, March 27, 2007
The Importance of Diversification-Stock Market
Hi! Welcome to my blog. I hope that you found my previous articles to be interesting and informative. I really like posting simple articles about investing in the stock market, I think its a fascinating and exciting subject, and I hope some of you think so, if not pass it on.
My articles today is about Diversification. I'm sure you heard this expression before over, and over. "Don't put all your eggs in one basket!" That's the truth. Anyone that do that whether its in investing or in business did not think things thoroughly. Diversification in the stock market is the key to successful investing. All successful investors build portfolios that are widely diversified, and you should also.
Diversifying your investments might include purchasing various stocks in many different industries. It may include purchasing bonds, investing in money market account, real property and cash. The key is to invest in several different areas and not just in one, and besides you will actually be at less risk. It may also take time to diversify your portfolio. Depending on how much you have to initially invest, you should start with one type of investment, and invest in other areas as time goes by.
It is suggested that you spread your investment money evenly among your investments. For example if you have $100,000 to invest, then $25,000 in stocks, $25,000 in real property, $25,000 in bonds and $25,000 in an interest bearing saving account. Do you see where I am going with this. Great! Just remember the expression at the beginning of my article. "Don't put all your eggs in one basket!"
My time is up...stay tune.
Happy investing
PS: I have other great money making articles that might interest you. Click here! These articles is about building income online. Click now!
My articles today is about Diversification. I'm sure you heard this expression before over, and over. "Don't put all your eggs in one basket!" That's the truth. Anyone that do that whether its in investing or in business did not think things thoroughly. Diversification in the stock market is the key to successful investing. All successful investors build portfolios that are widely diversified, and you should also.
Diversifying your investments might include purchasing various stocks in many different industries. It may include purchasing bonds, investing in money market account, real property and cash. The key is to invest in several different areas and not just in one, and besides you will actually be at less risk. It may also take time to diversify your portfolio. Depending on how much you have to initially invest, you should start with one type of investment, and invest in other areas as time goes by.
It is suggested that you spread your investment money evenly among your investments. For example if you have $100,000 to invest, then $25,000 in stocks, $25,000 in real property, $25,000 in bonds and $25,000 in an interest bearing saving account. Do you see where I am going with this. Great! Just remember the expression at the beginning of my article. "Don't put all your eggs in one basket!"
My time is up...stay tune.
Happy investing
PS: I have other great money making articles that might interest you. Click here! These articles is about building income online. Click now!
Monday, March 12, 2007
The Ultimate Financial Management Tool-Budget
Hi! I promise from my previous post that we will discuss the subject on Budget. I think to be successful in your financial goals, you must have a plan. A carpenter uses a set of house plans to build a house. If he did not, then the bathroom might get overlooked altogether.
Rocket Scientists would never begin construction on a new booster rocket without a detailed set of design specifications. Yet most of us go blindly out into the world without an inkling of an idea about finances and without plan at all. No very smart of us, is it?
A money plan is called a Budget and it is crucial to get us to our desired financial goals. Without a plan we will drift without direction and end up marooned on a distant financial reef. If you have a spouse or a significant other, you should make this budget together. Sit down and figure out what your joint financial goals are...long term and short term.
Then plan your route to get to those goals. Every journey begins with one step and the first step to attaining your goals is to make a realistic budget that both of you can live with.
A budget should never be a financial starvation diet. That won't work for the long haul. Make reasonable allocations for food, clothing, shelter, utilities and insurance and set aside a reasonable amount for entertainment and the occasional luxury item. Savings should always come first before spending.
Even a small amount saved will help you reach your long term and short term financial goals. You can find many budget forms on the Internet. Just use any search engine you choose and type in "free budget forms".(Google, Yahoo, MSN)
You'll get lots of hints. Print one out and work on it with your spouse or significant other. Both of you will need to be happy with the final result and feel like it's something you can stick to. My time is up...stay tune for more.
Happy investing!
Rocket Scientists would never begin construction on a new booster rocket without a detailed set of design specifications. Yet most of us go blindly out into the world without an inkling of an idea about finances and without plan at all. No very smart of us, is it?
A money plan is called a Budget and it is crucial to get us to our desired financial goals. Without a plan we will drift without direction and end up marooned on a distant financial reef. If you have a spouse or a significant other, you should make this budget together. Sit down and figure out what your joint financial goals are...long term and short term.
Then plan your route to get to those goals. Every journey begins with one step and the first step to attaining your goals is to make a realistic budget that both of you can live with.
A budget should never be a financial starvation diet. That won't work for the long haul. Make reasonable allocations for food, clothing, shelter, utilities and insurance and set aside a reasonable amount for entertainment and the occasional luxury item. Savings should always come first before spending.
Even a small amount saved will help you reach your long term and short term financial goals. You can find many budget forms on the Internet. Just use any search engine you choose and type in "free budget forms".(Google, Yahoo, MSN)
You'll get lots of hints. Print one out and work on it with your spouse or significant other. Both of you will need to be happy with the final result and feel like it's something you can stick to. My time is up...stay tune for more.
Happy investing!
Sunday, March 4, 2007
How Much Money Should You Invest?-2
Hi, Welcome Back! I asked in my previous post to think about 2 questions. How much money should you invest in the stock market? Do you think you should invest all your savings? For the second question this is not necessarily true to invest all your savings? I think that would not be a smart investor. But how much should you invest? First, let's take a look at how much money you can currently afford to invest. Do you have savings that you can use? If so, great!
However, you don't want to cut yourself short when you tie your money up in an investment. What were your savings originally for?
It is absolutely important to keep three to six months of living expenses in a readily accessible saving account-don't invest that money! Don't invest any money that you may need to lay your hands on in a hurry in the future.
So, begin by determining how much of your savings should remain in your savings account, and how much can be used for investments. Unless you have funds from another source, such as an inheritance that you've recently received, this will probably be all that you currently have to invest.
Next, determine how much you can add to your investments in the future. If you are employed, you will continue to receive an income, and you can plan to use a portion of that income to build your investment portfolio over time. Definitely speak with a qualified financial planner to set up a budget and determine how much of your future income you will able to invest. (An up coming post we will discuss The Ultimate Financial Management-The Budget...stay tuned)
PS: Never borrow money to invest, and never use money that you have not set aside for investing! And with a help of qualified financial planner, you can be sure that you are not investing more than you should-or less than you should in order to reach your investment goals. Here are two websites to examine. FinancialPlannerNetwork! or
fpanet.org You can also search the internet using the keyword search "financial planner" using Google or Yahoo.
Happy investing......stay tuned for more.
However, you don't want to cut yourself short when you tie your money up in an investment. What were your savings originally for?
It is absolutely important to keep three to six months of living expenses in a readily accessible saving account-don't invest that money! Don't invest any money that you may need to lay your hands on in a hurry in the future.
So, begin by determining how much of your savings should remain in your savings account, and how much can be used for investments. Unless you have funds from another source, such as an inheritance that you've recently received, this will probably be all that you currently have to invest.
Next, determine how much you can add to your investments in the future. If you are employed, you will continue to receive an income, and you can plan to use a portion of that income to build your investment portfolio over time. Definitely speak with a qualified financial planner to set up a budget and determine how much of your future income you will able to invest. (An up coming post we will discuss The Ultimate Financial Management-The Budget...stay tuned)
PS: Never borrow money to invest, and never use money that you have not set aside for investing! And with a help of qualified financial planner, you can be sure that you are not investing more than you should-or less than you should in order to reach your investment goals. Here are two websites to examine. FinancialPlannerNetwork! or
fpanet.org You can also search the internet using the keyword search "financial planner" using Google or Yahoo.
Happy investing......stay tuned for more.
Tuesday, February 27, 2007
How Much Money Should You Invest?
Hi, Welcome Back. My time is limited today so in case you missed some of my previous post, here is a few you can catch up on in the mean time: Choosing a Broker that Right for You. How to Determine your Risk Tolerance. Determining Where You will Invest. Investing Basics-What Are Your Investment Goals. Getting Your Feet Wet-Begin Investing.
In my post today I want you to think about these questions. How much money should you invest in the stock market? Do you think you should invest all of your savings? Well, do you know that many first time investors think that they should invest all their savings, and this isn't necessarily true. To determine how much money you should invest, you must first determine how much you actually can afford to invest, and what your financial goals are. (You would see financial goals mention a lot because its important). Like I mention at the begin of this post my time is limited, so stay tune for more.....
Happy Investing
In my post today I want you to think about these questions. How much money should you invest in the stock market? Do you think you should invest all of your savings? Well, do you know that many first time investors think that they should invest all their savings, and this isn't necessarily true. To determine how much money you should invest, you must first determine how much you actually can afford to invest, and what your financial goals are. (You would see financial goals mention a lot because its important). Like I mention at the begin of this post my time is limited, so stay tune for more.....
Happy Investing
Monday, February 26, 2007
Getting Your Feet Wet-Begin Investing
Okay, now that you have read my previous articles, you think you are ready to begin investing without having a lot of knowledge about the stock market. Here is some basic things you can begin with, and you can start by being a conservative investor with a low risk tolerance. This will give you a way to making your money grow while you learn more about investing.
Start with an interest bearing saving account. You may already have one. If you don't you should. A savings account can be opened at the same bank that you do your checking at-or at any other bank. A savings account should pay 2-4% on the money that you have save in the account. It's not a lot of money-unless you have a million dollars in that account-but it is a start, and it is money making money.
Next, invest in Money Market Funds. This can often be done through your bank. These funds have higher interest payouts than typical saving accounts, but they work much the same way. These are short term investments, so your money won't be tied up for a long period of time-but again, it is money making money.
Certificates of Deposit are also sound investments with no risk. The interest rates CD's are typically higher than those of savings accounts or Money Market Funds.
You can select the duration of your investment, and interest is paid regularly until the CD reaches maturity. CD's can be purchased at your bank, and your bank will insure them against loss. When the CD reaches maturity, you receive your original investment, plus the interest that the CD has earned.
If you are just starting out, one or all of these three types of investments is the best starting point. Again, this will allow your money to start making money for you while you learn about investing in other places.
Remember my blog was created for new investor(basic information) not for the advance investors, but I certainly welcome any comments & suggestions.
Happy investing....stay tuned for more
Start with an interest bearing saving account. You may already have one. If you don't you should. A savings account can be opened at the same bank that you do your checking at-or at any other bank. A savings account should pay 2-4% on the money that you have save in the account. It's not a lot of money-unless you have a million dollars in that account-but it is a start, and it is money making money.
Next, invest in Money Market Funds. This can often be done through your bank. These funds have higher interest payouts than typical saving accounts, but they work much the same way. These are short term investments, so your money won't be tied up for a long period of time-but again, it is money making money.
Certificates of Deposit are also sound investments with no risk. The interest rates CD's are typically higher than those of savings accounts or Money Market Funds.
You can select the duration of your investment, and interest is paid regularly until the CD reaches maturity. CD's can be purchased at your bank, and your bank will insure them against loss. When the CD reaches maturity, you receive your original investment, plus the interest that the CD has earned.
If you are just starting out, one or all of these three types of investments is the best starting point. Again, this will allow your money to start making money for you while you learn about investing in other places.
Remember my blog was created for new investor(basic information) not for the advance investors, but I certainly welcome any comments & suggestions.
Happy investing....stay tuned for more
Saturday, February 24, 2007
Investing Basics-What Are Your Investment Goals
You know most people I know are nervous about the stock market, and may not know anything about the stock market. I was just like that, but my hubby is an independent agent for a financial company, so I am not as nervous about trading online as before because he's teaching me. So, I decided to create some basic information for the nervous first timers, and those who are not sure. I suggest you read my first article: "Is Trading Online For You?" Click here!
When it comes to investing, many first time investors want to jump right in with both feet. Unfortunately, very few of those investors are successful. Investing in anything requires some degree of skill. It is important to remember that few investments are a sure thing-there is the risk of losing your money!
Before you jump right in, it is better to not only find out more about investing and how it all works, but also to determine what your goals are. What do you hope to achieve with your investments? Will you be funding a college education? Buying a home? Retiring? Before you invest a single penny, really think about what you hope to achieve with that investment. Knowing what your goal is will help you make smarter investment decisions along the way!
Too often, people invest money with dreams of becoming rich overnight. This is possible-but it is also rare. It is usually a very bad idea to start investing with hopes of becoming rich overnight. It is safer to invest your money in such a way that it will grow slowly over time, and be used for retirement or a child's education. However, if your investment goal is to get rich quick, you should learn as much about high-yield, short term investing as you possibly can before you invest.
You should strongly consider talking to a financial planner before making any investments. Your Financial planner can help you determine what type of investing you must do to reach the financial goals that you have set. He or she can give you realistic information as to what kind of returns you can expect and how long it will take to reach your specific goals.
Again, remember that investing requires more than calling a broker and telling them that you want to buy stocks or bonds. It takes a certain amount of research and knowledge about the market if you hope to invest successfully.
Stay tune for more.....
Happy investing
When it comes to investing, many first time investors want to jump right in with both feet. Unfortunately, very few of those investors are successful. Investing in anything requires some degree of skill. It is important to remember that few investments are a sure thing-there is the risk of losing your money!
Before you jump right in, it is better to not only find out more about investing and how it all works, but also to determine what your goals are. What do you hope to achieve with your investments? Will you be funding a college education? Buying a home? Retiring? Before you invest a single penny, really think about what you hope to achieve with that investment. Knowing what your goal is will help you make smarter investment decisions along the way!
Too often, people invest money with dreams of becoming rich overnight. This is possible-but it is also rare. It is usually a very bad idea to start investing with hopes of becoming rich overnight. It is safer to invest your money in such a way that it will grow slowly over time, and be used for retirement or a child's education. However, if your investment goal is to get rich quick, you should learn as much about high-yield, short term investing as you possibly can before you invest.
You should strongly consider talking to a financial planner before making any investments. Your Financial planner can help you determine what type of investing you must do to reach the financial goals that you have set. He or she can give you realistic information as to what kind of returns you can expect and how long it will take to reach your specific goals.
Again, remember that investing requires more than calling a broker and telling them that you want to buy stocks or bonds. It takes a certain amount of research and knowledge about the market if you hope to invest successfully.
Stay tune for more.....
Happy investing
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