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Achieve Financial Freedom using The Power of Compound Interest
Copyright 2005 William Tan
"The most powerful force in the universe is compound interest"
- Albert Einstein
Ask almost anyone about compound interest and you will hear them say "yeah, I know about it." If everyone truly understands what...
How we eluded the bear in 2000
The date October 13, 2000 will forever be embedded in my mind. It was the day after our mutual fund trend tracking indicator had broken its long-term trend line and I sold 100% of my clients’ invested positions (and my own) and moved the...
How We Eluded The Bear Of 2000
The date October 13, 2000 will forever be embedded in my mind. It was the day after our mutual fund trend tracking indicator had broken its long-term trend line and I sold 100% of my clients’ invested positions (and my own) and moved the...
Keep Your Investment Profits
KEEP YOUR INVESTMENT PROFITS Have you had one of those huge investment winners – a stock that went from $2.00 to $80.00? Or any other numbers you want that gave you a gigantic percent profit? Did you take the profit or did you watch the equity...
The Exclusive Club Of Large Caps
Picture one of those clubs where only the real heavyweights need apply. In the library the old aristocrats, General Motors and JP Morgan, are dozing in their leather chairs. On the terrace, a late luncheon is underway for those who have only...
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How To Invest Wisely And Make Your Money Grow
Wise investments of your spare funds can be a great way to grow
rich. These days, savings accounts offer very low interest and
it is a waste to allow your money to lie in them. Based on your
appetite for risk and your financial needs, you have various
other investment schemes and options to choose from.
It is always safer to have a diversified portfolio, that is, to
spread you money around in various types of schemes, so that the
risks and returns get balanced out. The company you work for
would have a 401(k) plan which is always a safe bet. In this
scheme, they will deduct a part of your salary every month and
give it to an independent financial source to manage the
investment, so that you get a healthy return at the end of your
tenure. For those of you with greater risk-taking ability, stock
markets or mutual funds can be a good idea. In stock markets,
you can buy shares of companies listed on the stock exchange.
Usually, good companies offer dividends along with a fair return
on your investment. Dividends are not mandatory, but a lot of
companies like to distribute their profits among shareholders as
dividends.
Some companies prefer to reinvest the profits into expansion
projects instead of declaring dividends. These reinvestments in
turn should lead to further profits. However, the stock markets
are unpredictable and a lot of people who dabble in stocks with
the purpose of making some quick
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bucks may end up with losses
instead.
Mutual funds are relatively safer investments, though they are
also subject to market risk. Mutual funds are investments made
in the stock market by financial managers with a fund collected
from actual investors. There can be sector-specific mutual funds
for instance those that invest in Pharmaceutical or IT or
infrastructure companies only. Whatever be the mode of your
investment in the markets, it is vital that you track these on a
regular basis. If the prices of your shares or mutual funds
decline at a time when there is a slowdown in the economy as a
whole, there is no need to panic and sell at a loss. The markets
will quite likely bounce back to where they were or perhaps even
better. However, if the markets are strong and yet, the value of
your mutual funds is on a decline, it could mean it is not well
invested and it would be advisable for you to sell and move your
money into something that will generate better returns. A
financial consultant can advise you about the market situation
and what types of investments will suit your needs best.
About the author:
Investing information on http://www.ausinvesting.com with your
host, Sintilia Miecevole, is wating for you. You'll have
resources at your fingertips from investing, mutual funds and
planning to business, stocks, bonds and more. Click on to
http://www.ausinvesting.com and start investing.
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