AIA Chiangmai

When you invest, it simply means that you are putting your funds in products, in this case short-term savings vehicles, which will allow you to reap high financial rewards.

Here is a list of the more common short term savings products you should consider investing in.

Savings account: If you are getting your feet wet for the first time in investing, you should consider this, as it is the most popular banking product people use. The interest rates of a traditional savings account vary between 2.0% to 4.0. This is better than keeping them at home. Investing in a savings account is relatively risk free, as these products are protected by the federal deposit insurance. Generally, the government protects the money you have on deposit to a limit of $100,000. Some questions you’ll need to ask: What is the interest rate on your savings? Can the bank change the rate after you’ve opened the account? Will you pay a flat monthly fee? What if the balance drops? Is the ATM service free? Are the fees reduced or waived if you directly deposit your paycheck or government payments?

Money market funds: Money market funds are a specialized type of mutual fund that invests in extremely short-term bonds. Its shares are designed to be worth $1 at all times. It’s a better product for investing in than the traditional savings account, with regards to the interest rate it will give you. But has a lower rate than certificates of deposit. However, the virtue of investing in the money market fund is that, while the interest rates may be lower, you can withdraw your funds when you see fit.

Certificate of deposit (CD): When you purchase a certificate of deposit, you are lending the bank use of your money, for a specific amount of time. In investing your funds, you’re guaranteed annual interest payments. Investing in CD is relatively low risk, for it is FDIC insured for up to $100,000. If you are investing $200,000.00 buy two CDs. Before investing your money, shop around for the best bank interest rates. Consider the fact that by purchasing CDs, you are investing funds that will stay locked up for a specific period of time. Can you afford to have these funds locked up? For if you withdraw the funds before this matures, you’ll pay steep penalties. If you are conservative about investing, this is a good place to start.

Financial experts recommend investing your funds into these short term savings vehicles, if you are looking to earn some interest in minimal risk products.

Timothy Gorman is a successful Webmaster and publisher of Debt-Relief-Solutions.com. He provides more debt relief, consolidation and financial planning advice that you can research in your pajamas on his website.

Tags: accounts, certificates, deposit, financial, funds, investing, market, Money, planning, savingsaccounts, certificates, deposit, financial, funds, investing, market, Money, planning, savings

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Unbeknownst to 98% of working people, the 40 year plan is over. Statistics show that by age 65 less than 2% of Americans can truly retire in comfort without the help of family members or the government. The lackluster performance of the stock market over the past 6 years has dashed many people’s hopes of retiring early. It used to be that you could get a great education, get a great job and settle with a company by 25 years of age, keep your nose clean, work your way to the top, invest in your companies stock and by age 65 retire the company you sacrificed for will take care of your retirement and medical expenses for life.

For many now this is just wishful thinking and a pipe dream.

Today’s norms:

The harsh reality is: Corporate down-sizing (e.g. Gillette, Ford, and GM). Corporate bankruptcies - Enron, Worldcom). Company’s robbing company pension plans and judges are allowing it to happen just ask people working for the airlines, illegal insider stock trading, age discrimination, companies cannot afford to pay health insurance premiums because they have sky-rocketed and people are living longer.

Other forces: World Instability, unfettered nuclear proliferation, Sept 11th, natural disasters all cooked together.

Yes, the poor performance of the stock market, lower interest rates and the real estate boom have contributed greatly to people looking for alternative investment strategies such as self directed investing of retirement funds in real estate.

The Internet, information proliferation, people’s ability to share information, online financial software, and real time stock quotes.

Benefits of investing with self directed ira funds:

Stimulates the economy It is great for recession proofing an economy. Money from retirement funds keep construction crews working

With the ability to look outside the stock market, you may find alternative investment vehicles that are safer with higher returns which will allow you to make up for lost time.

Permits true retirement diversification and wealth accumulation in tangible assets.

Global investing With your self directed IRA, you can invest in international real estate.

Granted self directing your retirement portfolio is not for everyone. But what are your legitimate alternatives?

Joshua Geary is an avid writer, business strategist and online marketing consultant. For more information on how to turn your Self Directed IRA into a wealth building money magnet visit http://www.MyRealEstateIra.com

Tags: investing, investment, investments, pension, real estate, regulations, rules, self directed ira, wealthinvesting, investment, investments, pension, real estate, regulations, rules, self directed ira, wealth

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To find money to invest for your future, you need to make sure that your outgoing expenses are less than the income that you are receiving. You need to develop an excess that you can have free to invest.

Now before you start to think.”well I don’t have any excess leftif I was earning more money.then I would have some free”. Let me dispel this mythand tell you that it is a known and excepted fact that the amount of money that people earn has little if any bearing on whether or not they have an excess left to invest. The only way to create an excess it to spend less than you earn, instead of spending all that you earn.

Even doctors and lawyers, who earn well over $100,000.00 per year, often end up at retirement with little more Net Worth than factory or office workers.

Net Worth is calculated by deducting the value of all the liabilities or loans you have from the income-producing assets owned to give you the net value of your income-producing assets.

Why aren’t high-income earners retiring wealthy? Why don’t they end up with a greater Net Worth than someone on a low income? It is quite simple. Human nature seems to dictate that whatever anyone earns.they spend.some even spend more than they earn and charge it on their credit card.

The higher your income growsthe more you spend and the only way to get out of this cycle is to realise that it is happening, and make a concerted effort to reverse this habit.and to begin reducing your expenditures so that you can free up money to invest.

The best way to do this, is to try the 10/90 plan. This plan simply means that as soon as you receive your pay.you put aside 10% of it for investment.and then use the other 90% to live off of. Put aside the 10%, and then pay all the bills and do the grocery shopping.and then after that whatever is left over you can spend.

Most people do it the wrong way aroundthey pay the bills, do the shopping and spend what is left over, never leaving any left to save or invest. By taking the investment money out first you will alleviate the temptation to spend it.

The road to wealth is not determined by how much you earn, but by how you utilise the income you have and how much you save and invest.

You need to take control of your finances. One of the best ways to start having more control over your money is to find out where it has all been going, and then amend your spending habits to allow you to live within the 10/90 plan.

If you write down a list of your monthly net income, then in another column write down a list of the essential items that you have to spend money on. You should be able to work out an average for telephone, gas, electricity, insurances and rates, from your previous bills. Work out an average of how much is spent on grocery shopping and petrol. If there are any other necessary utilities include them as well. Then deduct the second column from the first - and this will give you the maximum potential savings for each month.

It can be quite startling how high this figure can be and make you wonder where all the extra money went.

Another good learning experience is to simply write down for a fortnight every dollar spent and write next to it what it was for. You will soon find that there are a lot of unnecessary expenses, often caused by impulse buying, where you have spent money on items that you neither needed or really wanted, and could easily have gone without.

When you can begin to recognise these areas, and start to consider whether or not you are spending your money wisely, before you hand it over, then you will be beginning to take control over your money and are well on the way to embarking on your investment journey, which will enable you to have a financially secure future for you and your children.

Debra Lohrere is an author of several books on property investment and how to create financial security. Please visit. http://www.debra.lohrere.com/home.shtml

Debra Lohrere works as a Commodity Trading Logistics Administrator. She previously spent over ten years working in an Accounts Administration position with her primary roles being collections and financial forecasting. She also ran her own computer retailing business for many years.
Knowing the vital importance of cash flow in business led her to begin investigating the benefits of personal investments. She decided six years ago that it was time to start taking control of her personal finances and begin building a wealth base for her future.
She began researching the powerful medium of property investment as a means of bringing financial independence into a reach and began to build her own property portfolio.
Within the space of four years she was able to go from renting a house, to owning her own home and three investment properties, while having contributed very little of her own money to secure these.
She built up a large base of contacts with fellow property investors, which has proved to be an invaluable source of information.

Tags: budget, budgeting, Finances, invest, investing, investment, Money, retirement, wealthbudget, budgeting, Finances, invest, investing, investment, Money, retirement, wealth

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