Cash Investment Archives!!!

In order to make self directed IRA investments, you first have to find the right custodian, if you want the most options. Under the law, there are numerous IRA permitted investments, but many brokers do not offer them.

Before you decide to make self directed IRA investments, you might need a little education. The right custodian can offer some guidance, concerning the law, but otherwise is merely an account manager, responsible for filing the appropriate paperwork.

If you are unaware of the legalities, you could be forced to liquidate your account. There are many IRA permitted investment types, but there are some types of transactions that are prohibited. First let’s look at those.

Self directed IRA investments that are not allowed include artwork, rugs, antiques metals, gems, stamps, coins, alcoholic beverages and other collectibles. So, you cannot put your original Picasso in the name of the custodian of your retirement account. It makes sense, if you think about it.

A bottle of thirty year old scotch may be very valuable, but in order to get the best price, it would have to be put on an auction block or a buyer would have to be located. IRA permitted investments are easier to “liquidate” or sell.

There are a few other self directed IRA investments that are not allowed, because they are considered “self-dealing”. You cannot use the account to purchase property that you will live in now or plan to live in after retirement. Neither can you allow your family members to live in a property held within your account.

IRA permitted investments include residential and commercial real estate, as well as raw land or vacant lots. You may also hold notes, foreign currency, gold bullion and private stock offerings, as long as you are not the majority stock holder in the company. And of course, there are the more tradition stocks, bonds and mutual funds.

Certificates of deposit may also be self directed IRA investments, but the return or yield is considered very low. Most people who choose to go the self-directed route are looking to grow their balance quickly, but if you need some security, CDs are the lowest risk.

As you can see there are more IRA permitted investments than those that are not allowed. Some accountants find the whole thing a bit confusing. Some brokerages are not familiar with all of the choices that you have available.

It’s best to get help from professionals that are experienced in self directed IRA investments. When it comes to real estate, if you need help finding the right deals, there are a few investors willing to teach you the ins and outs of the business.

You can never have too much education. Learning through trial and error is very risky. Remember, you are trying to fund your retirement. This is just a brief overview of what you should know about self directed IRA investments. It’s probably just enough to get you to the next step.

By: Ronald D. Frommert

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Recession can have a huge ripple effect not only for current projects but also future investments. How can one have recession proof investments? Is there any sector that will not be affected, if you are unemployed and business is worse than last year? Ever since 2008 has started, the keyword ‘recession’ is hitting the strongest of the companies. Everyone is on the defensive. The slump in the U.S housing sector and the stock exchange has set back the reserves. It has prompted everyone to consolidate their accounts and portfolios.

Look at the positive side, the recession is bringing some challenging opportunities. This is the time one has to look at the big picture. America is facing economic challenges and it could affect other countries. The Asian markets are already witnessing a yo-yo phase where small investors fear losses. Investments in real estate and stock exchange are already plummeting. The biggest casualties during the recession are FMCG stocks, fly by night operators, small and some mid cap companies. Investments have to be made in companies that are rock steady and have lasted for more than 25 years in the market. These companies are going no where and will survive any of the bubble bursts in recessions to come. There is no point in being bullish at this stage. Diversify the portfolio; sell the old stocks that will not give any more gains.

Despite the American markets having not declared the status of recession, it is still wise to be on guard. Unemployment is rising, lay-offs are no longer surprising, credit crunch, negative trends, real estate bubble bursting, budget deficits and most of all weakening of the U.S dollar are a reality that all of us are facing. Why are we being affected half way across the world? American economy is linked with many other economies in the developing countries. The American economy dented in 2007 despite Asian countries performing well in the stock market.

If we have to survive the American recession we have to be make careful investments. Rather than going for any more stocks or equities it is better to stay safe on the sidelines with cash in hand and look for cheaper investments. Invest in stocks of other countries where the economies are still strong. The Euro and pound is on the top of the heap. For a long time the blue chips will be in European stock exchanges.

These are the economies that will be rock steady in the wake of the American collapse. The year 2008 is critical, which will challenge even intelligent investments. Not all investment is recession proof. Have liquidity around the house. Settle for less and keep calm. Review the portfolio before attempting to diversify. Invest in long term stocks. Go for some traditional fixed deposits to the bank. They are a safer bet.

Saving Money During the Recession

Have you been saving hard for the world trip for the last two years? Looks like the wait will be longer yet. Whether you are a professional, businessman, employee or employer, saving is your profit. Investments are likely to freeze and this is the time to make cuts in every way to save resources.

Just because there is a recession, chances are, there will be less buying and selling. But business will not come to a grinding halt. The real estate sector has seen the biggest upsets of the early recession. It is hard to tell where you can save. Pull and push will be inevitable in most markets. But it could be that the market you are investing in is not really doing so badly. You may stand to make a gain. Most people tend to make the mistake of withdrawing from the fray rather than taking the risk. Go ahead and make the investment. It could be the biggest saver for your financial condition. If your research is right, you may be able to save despite spending during the recession.

In economic slowdown only the stronger companies will have the ability to survive. And those who can innovate during this time are the ones who will drive the market forces.

You can save not only cash by also resourceful talent during the slump period.

Here is what that can be useful:

Don’t just fire anyone, loyalty pays.

Don’t stop the networking with the clients even if you are not doing business with them. When the time is ripe you don’t want them to ignore you.

Take some risk. Being afraid of failure will not be helpful. Avoiding it maybe harmful.

Go on launch the new product. The response will be slow. But when the markets are buoyant, they will pick up.

Don’t get too defensive.

Don’t stop the outsourcing of talent or consultancy. They will help during the difficult times.

Saving is not only in terms of liquid cash. Every member in the organisation is a family member. As the family stays through thick and thin, these are the times when it is safe to be together. Give the employees the incentives to save money even during this period. This saving will help them and you as well during the recession. Spend money during this period on garnering goodwill. Have an emergency fund scheme which will take care of at least six months during the period when the recession hits the hardest. This gives time to cope up with the bad times and prepare for the next quarter.

By: Rajni Seth

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A very interesting company that came to my attention recently is Silva Tree. This is an organization that basically offers environmental investments. Recently, of course, we’ve seen just how dangerous investing in the wrong places can be and we are still recovering from the economic recession. Investing in stocks is very likely to be profitable in the long term, but they can be very volatile over the short term. And leaving your money sitting in investment accounts is obviously very safe but the amount of interest you’ll get isn’t going to be all that significant unless you have a lot of money sitting there. But with Silva Tree, it seems like you have the opportunity to not only make very high returns, but also do something very good for the environment at the same time. This proposition is very attractive to a lot of people (and I was definitely interested myself when I first found out about it), so let’s look into this in more detail.

According to Silva Tree’s website, their main investment project on offer right now (the timber investment plan) offers a guaranteed 15.1% return per annum over the course of 20 years. Making that kind of return with other investments, like the stock market, forex or real estate, is not easy. You may be thinking this is a little too good to be true and how exactly those returns are “guaranteed”. It’s simple. With the timber investment offered by Silva Tree, you are buying a large area of land that has an average of around 660 trees per hectare. Returns on your investment are made by harvesting the land and selling timber to a pre-arranged buyer. A purchase price of $275 for every cubed meter of timber is offered by World Paulownia LLC. The total return on a $32,500 investment in a plot over the course of 20 years is close to $150K.

Silva Tree has actually conducted several successful investment projects in the past. And the good thing is that they all help the environment or local community in some way. For example, their Carbon Offset Forestry Project (now sold out) operated by buying areas of Costa Rica rainforest in order to protect them from being destroyed. Not only does conserving forest reduce the impact of global warming (trees absorb CO2) but it preserves habitat and prevents certain rare species from becoming extinct. Another interesting investment was the Princess Project (now sold out) where 1,500 hectares of land were reforested with the Paulownia Elongata tree.

So it seems to me that if you have an environmental conscience and you want a safe, high return, long term investment, then Silva Tree is ideal. With the investment packages they offer you know you’ll be making a positive return year after year, and the same cannot be said for other investments like stocks, currencies or property. And you don’t need to be worried about the safety of your money either. Silva Tree is very highly regulated and is a member of the BBB as well as other organizations like Ethical Junction. Also, there are many members and investors of Silva Tree that have a history of producing results.

By: Ronald B Warren

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Tax-free investments are the investments that are exempted from tax. Generally, there are two types of tax-free investments namely fixed and variable. In the case of a fixed investment the investor is assured with the guarantee of return of the original sum on maturity. Sometimes the income is kept as a fixed amount. In a variable investment, the value of the amount varies according to the fortunes and marketability of the underlying shares in a particular plan.

There are quite a lot of tax-free investments available today. It can be categorized into two – one that is offered to everyone and the other that is available to people having income under their personal allowance. These investments are absolutely free from income tax as well as capital gains tax. Moreover, the tax-free investment provider normally does not suffer any tax on the funds. There are some investments that contain the advantages of inheritance tax (IHT).

Tax-free investment is the best way for a person who is on the look out for ways to generate current income without increasing tax liability. It can also play an active role in any comprehensive financial plan. But, most people have a doubt in their mind about the amount that needs to be invested. There is no need to invest a lump sum amount in tax-free investments. These investments allow regular savings to be made thus making it easy for all.

Though there are not many disadvantages for tax-free investments, there are some considerations that are to be kept in mind before making these investments. One is that most of these investments have a minimum period for maturity in order to gain full return. If early encashment is done it may result in loss of tax-free status. Before making an investment decision, study in detail the terms and conditions of the investment plan.

By: Seth Miller

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When people think about budgeting, many people think of doing it to save for a car or maybe even a holiday. Not many think to do it for the purposes of investing in a stock portfolio or the more obvious option of an investment property. While it’s often the last thing people want to do with their money, should they not have a great deal of disposable income, it should really be the first!

Investing is a financial decision that many people don’t make until they have superfluous money sitting in the bank however, this time may never come for many people. It’s important to maximise the money you have and to do that you should seriously consider investing. The problem is that not many people have spare cash lying around to put into investments, so here are some easy ways to save for your investment portfolio.

Rent

While you may dream of owning your own home, if you are renting in an expensive area, that dream may take a lot longer to come true. While certain areas have a great lifestyle appeal, it’s important to weigh up whether that lifestyle is really worth the money you are spending each month. Consider this; If you were to move to an apartment or house where you paid 25% less in rent each month but in a less popular suburb or area, would that be an option? Alternatively look at it from a different angle; If you were to have 25% more in your bank account each month without a salary increase and the money could grow, should it be properly invested, would that be an option?

Entertainment

Are your weekend pastimes partying, shopping or even playing an expensive sport? While it’s important to relax and enjoy yourself, it’s also essential that you are not spending a large portion of your income on activities you can really live without. Look at one activity you do on a regular basis – then cut it out. How much money will this save you over a year? $100, $1,000, or even $10,000 could be sitting in your account at the end of the year, ready for investment with one simple sacrifice.

Food

Most people love to dine out on a regular basis – it’s easy, there’s no mess at the end of the meal to clean up and it usually tastes better than anything you can usually whip up. And while all of those points are good reasons to dine out, the main issue that you probably won’t realise until you add it up is the cost! Commit to only eating out once a week, or better yet once a fortnight and you’ll find that that bank account balance keeps growing and growing.

Investments do require a decent amount of money and need continual attention from either a broker or yourself to be profitable. It’s easy to see that by making some very minimal sacrifices in the short term, your bank account, investment portfolio and lifestyle will benefit in the long run.

By: Mark Penny

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