Investing News

Making Your Investment Dollars Work for You

2009-06-03T00:38:00.001-07:00

Posted by By Mika Hamilton on: 2005-07-25 23:43:38

Investments are scary for some people, especially those who have never invested before. We grow up hearing horror stories about how this person or that person lost everything they had on some bad investment some odd years ago and it builds in us a fear of investing so profound that it is sometimes easier to get a confirmed agoraphobic to march in the Macy’s Day Parade than it is to get someone to put a few dollars into stocks or mutual funds.

Part of the problem is that people have the wrong idea about how investments should work. We’re always looking for the big score, the quick road to riches, and the quick return investments that will turn ten thousand dollars into ten million dollars overnight. Guess what? These investments don’t exist.

“What about Microsoft?” is the question many will ask here. “What about Ebay and Wal- Mart and Xerox and…” you get the picture. While it’s true there have been some companies that have surprised everyone by becoming quick successes and their stockholders watched with excited eyes and dilated pupils as their portfolios did some colossal growing in short periods of time, these are the exception rather than the rule in investing. Investments should be looked at as long-term money makers and security providers, not a spin of the roulette wheel with a big payoff or a devastating loss.

If you’re investing casually the best thing you could possibly do is find a stable company or mutual funds, put in your money, and forget about it. Those that watch the market reports constantly and suffer heart palpitations every time the company they have invested in drops a few points will either go crazy or wind up losing money by selling company stock at a lower price than they paid for fear that if they don’t get out now, the bottom will drop out, leaving them with worthless stock. Don’t worry. Coca-Cola is not going belly-up anytime soon.

Finance Tips by Mika Hamilton – Read more free investment tips, tutorials & reviews at http://www.Global-Investment-Institute.com

Property Investment Just Got Exciting

2009-06-03T00:37:00.002-07:00

Posted by By Nicholas Marr on: 2005-08-01 22:43:35

There is an area in Brazil that has lower crime & lower property prices than where your are probably sitting right now!

Demand from the increasing retirement population and from those who have benefited from their own property markets are now pushing overseas property prices up. Brazilian property prices are still very low and offer the overseas property buyer quality real estate in stunning locations. Fortaleza the capital of Brazil's Northeastern state of Ceara is one such place. Popular with Brazilian and South American holiday tourists it is now being recognised by foreign property investors as an area that is taking the overseas property market by storm.

Brazil Property -Fortaleza

The Place

What to do in a place like this- You can swim, surf, dive, sail, golf, play ball, ride, explore, bargain hunt, sight see, explore, or drive a dune buggy for 100 miles in any direction, take a jeep up a steep mountain trail. You can explore environmental preserves, or just swing in a hammock and do nothing at all.

Beaches, beaches, beaches, Hundreds of miles of untouched pristine beaches. Ocean surface temperatures are 82 F all year round with 65 feet of visibility underwater.

Tourism: a 270% increase in tourism over the last eight years this is expected to increase to nearly double the current number of foreign visitors to the area by 2008

Climate: Guaranteed good weather at least 90 percent of the time with more than 335 days per year of glorious sunshine.An endless summer

Low Crime: Forteleza, Brazil's fifth largest city, ranks 23rd in crime. Brazil is considered low risk in respect of war, terrorism SARs. You are probably more at risk where you are right now.

Forteleza food:Fresh fish is famous in this northeast region of Brazil.

Friendly people: all sizes, shapes, and colors, warm, friendly and welcoming that's the Brazilian people.

Property Prices: A 250 square meter house with three bedrooms and a swimming pool, about 100 meters from a beautiful beach only £27,000 approximate $ 47,000 USD.

Brazilian Investors welcome: Foreign Investment encouraged your own 100% of land and property, foreigners can open a bank accounts with attractive interest rates on investments

Easy buying process: Purchasing property is simple and straightforward for non-Brazilians and the right of freehold is incontrovertible. Title insurance is available and the legal process is inexpensive and relatively quick.

More information
http://www.homesgofast.com/brazil/

Marr International Ltd
Floor 6
456-458 Strand
London
UK
0044(0)8450042572
Email@sales@homesgofast.com
Website: www.homesgofast.com

Nicholas Marr is the director of Marr International a UK based property marketing company. His company advertises property on behalf of property developers, real estate agents and private house sales.

The Biggest Oil Opportunity in the World – And How You Can Profit From It

2009-06-03T00:37:00.001-07:00

Posted by Search EzineArticles.com on: 2005-08-07 18:12:48

Where is the second biggest deposit of oil reserves in the world?

In the oil sands region of Alberta, Canada. Oil sands are a thick, viscid mixture of bitumen, sand, clay, and water. Alberta’s oil sands is comprised of 3 regions with the Athabasca area being the largest and the closest to the surface. Underneath these gooey tar sands lie trillions of barrels of oil.

So then you may ask why have we been so dependent on Mideast oil. Why haven’t we just stayed nearby and relied on Canada? In fact, Canada is the largest supplier of crude and refined oil to the United States, having supplied 2.1 million barrels per day in 2004. But the percentage supplied to the US and other parts of the world is about to grow much larger.

The big difference between oil sands and oil from the desert sands of the middle east is difficulty of extraction. The oil sands process essentially entails extracting bitumen from the sand, and upgrading it to light crude oils. Easier said than done because this is thick stuff and has been expensive to mine and extract. However new technologies are changing the equation and making it much more cost-efficient to mine and extract from the oil sands.

Mining operations are used to produce reserves close to the surface. For oil that is deeper under ground, Steam-Assisted Gravity Drainage (SAGD) and Cyclic Steam Stimulation (CSS) are used. Other examples of new technology and extraction methods include burning bitumen instead of gas to produce steam, a solvent-assisted production technique called VAPEX and a system that injects air into the oil well and ignites it to stimulate oil flow.

In addition to improvements in technology, higher oil prices are fueling expansion in the oil sands, and a lot of people want in. The Chinese, for instance. In April, China National Offshore Oil Corp., predominantly owned by the Chinese government, bought nearly 17% of MEG Energy Corp. for $122 million. The company is developing a northern Alberta project estimated to pump 25,000 barrels of crude from the oil sands by 2008. And Canadian oil pipeline giant Enbridge has announced a preliminary deal with PetroChina to anchor a $2-billion oil pipeline to the West Coast.

So how can you benefit from the increased exploration, production and sales of crude oil from the oil Sands of Alberta? Choose among the stocks of companies that are investing in the area and applying new technology to extract oil more cost-efffectively.

Companies than can capitalize on the increasing role of Canada’s oil sands in the world’s energy needs include Suncor (NYSE: SU), Encana (NYSE:ECA), Canadian Natural Resources NYSE:CNQ) Deer Creek Energy (DCE.TO), Total S.A. (NYSE:TOT), Petro Canada NYSE: PCZ), and, with its acquisition of Terasen whose pipelines are well-positioned to transport growing production from the Alberta oil sands, Kinder Morgen (NYSE: KMI).

And while it may remain somewhat more expensive to extract oil from Alberta than from the Mideast, consider the effects of global politics, terrorism and turmoil, and the chilly wilds of Northwest Canada become very attractive indeed.

Leon Altman creates and runs websites that uncover opportunities for investors. To find more opportunities in oil and gas as well as other sectors, subscribe to his free Select Sectors letter at http://www.investingin.com/SL-Oilandgas.htm and check out his websites: http://www.InvestingIN.com and http://www.SmallcapRecap.com

4 Simple Tests To Find Good Real Estate Investment Properties

2009-06-03T00:36:00.000-07:00

Posted by Andrew Lo on: 2005-08-23 22:03:57

You're driving along the road when you spot it. There in the middle of a shaggy lawn sits a disheveled property. It may need a good coat of paint, or a shutter straightened out, but it's easy to see that with a little work it could be a little gem of a property. Best of all, sprouting in the middle of the unkempt grass is a For Sale by Owner sign. It looks like the perfect fixer-upper, but how do you know for sure?

First, consider your reason for buying. If you're looking for a property to 'flip' - to buy low, fix up and sell for a profit - there are a number of things you'll want to take into consideration. If your intent is to buy it as rental property, there's a different set of consideration, and if you're looking for a home of your own, there's yet a third. Let's assume, for the sake of this article, that your intent is to flip the property for profit.

Test 1: The Neighborhood Test

Before you invest another hour, do yourself a favor and take stock of the surroundings. The old saying in the real estate business that the three factors in selling a home are 'location, location and location'. What is the location like? No matter how wonderful the property is, you'll have a difficult time selling it for top price in a bad neighborhood. That doesn't mean that it's a bad property - depending on how low a price you can bargain, you still may be able to make a decent profit from it.

Another consideration in the Neighborhood Test is a bit more subjective, and you'll have a feel for it if you're local and keep an ear to the ground. Is the neighborhood in transition? A neighborhood that is on the cusp of a renewal effort like gentrification can be a great place to invest, as long as the upward momentum continues. An area that is on the outskirts of new development will often benefit from that as well. If, on the other hand, the neighborhood shows signs of slipping into a decline, you might want to pass the property by. If you can see that the neighborhood is slipping, so will prospective buyers.

Are there 'amenities' nearby? Depending on the neighborhood and your prospective market, those amenities might include a neighborhood school with a good reputation, a corner store within walking distance, or a park right down the street. In one Massachusetts city, for example, the value of properties in a formerly depressed neighborhood skyrocketed when a local university announced a commitment to provide full tuition to the children of neighborhood residents, and provided additional incentives to home buyers within several blocks of their campus. Investors who bought just before the announcement realized excellent turnaround on their investment.

Test 2: The Pricing Test

Is the home listed with a Realtor, or is it a FSBO? How realistic is the asking price? Is it in your price range? Can you work out a low or no-money-down financing option? How open to negotiation is the seller? Will you be able to realize a profit after making needed repairs?

Test 3: The Condition Test

This is one of the most important tests. The property you want to buy doesn't require any extensive, expensive repairs. It should be structurally sound, without any major plumbing or electrical problems. If you're just starting out, you'll want a property with repairs you can manage yourself - repainting, refinishing floors, a little landscaping. If the property requires more extensive repairs, it will cut into your profit, or eliminate it altogether.

When you view the property, really kick the tires. Look for indicators of hidden problems. Here are a few things to look for:

Moisture stains on walls and ceilings could indicate plumbing problems

Little piles of sawdust near corners or woodwork could mean termites.

Separations between floor and wall, especially outer walls which could indicate structural problems.

Lift tiles in suspended ceilings to examine the ceilings above for loose plaster, moisture stains and other indications of problems

Test 4: The Title Test

The final test is the title test. Be certain that the title to the property is clear, with no liens or attachments that could sour the sale. If there are, and you still want the property, work out a conditional sale, where your purchase is contingent upon the liens being satisfied.

If the property passes all of the above tests with flying colors, congratulate yourself. You've got yourself an investment property that could turn a pretty profit for you.

About the Author

Andrew is the web owner of "Home Buying and Home Selling Guide: How to buy a house and sell house fast", a website that provides informational guide on home buying, selling house, home mortgage loan, real estate investment and more. Visit his website at:"http://www.buy-and-sell-house-fast.com/

Asia’s New Investment Jewel

2009-06-03T00:35:00.001-07:00

Posted by Carl Delfeld on: 2005-09-16 17:20:08

China is in its Glory, now Look to the Future.

Let’s discuss an Asian country that could present us with the next great bull market of the 21st century – an opportunity that has the potential of being a better investment than even China!

Like China, this country was stuck with a failed economic system for over 50 years. It was a bureaucratic, socialistic state that led to weak growth, and stymied entrepreneurship and initiative. Famines, lack of investment, and poverty were the result.

But In the early 1990’s, the country changed course and started to open up its economy to the world. The country’s personal marginal tax rates have fallen from 50% to less than 30%. Tariffs and import quotas have been slashed, exports are growing at a 20% annual rate, with America being its largest market. Only 10% of its economy is dependent on international trade, insulating it somewhat from external shocks. The banking system is much improved, and non-performing loans have dropped to less than 4% of total bank loans. It has quickly gone from a balance of payments deficit to accumulating $135 billion in foreign exchange reserves.

Unlike China, it is a functioning democracy with respect for property rights and the rule of law. Many of its citizens have English as their native language. It also has more advanced financial markets than China, and a stock market established in 1870 that has 6,000 publicly-traded companies.

All the Right Demographics and Macro Trends

It is a very youthful nation with 80% of its population under 45 and - this is amazing - 25% of all people 25 and under in the world live in this one country! Its Citizens are thrifty with money to spend with a 28% savings rate to support capital investment. Consumer finance is rapidly becoming available and fueling more consumption and retail sales totaled $180 billion last year.

Economic growth is already impressive with 8.2% last year and 7% projected for 2005. Per capita GDP adjusted for prices is higher than China and its GDP growth rate has averaged 6% during the past 10 years. Fifty percent of its output comes from services and it has world class IT, media advertising, entertainment and pharmaceutical expertise.

The country’s space program has launched 12 consecutive rockets without incident and it put the world’s first graphic mapping satellite into orbit earlier this year. It has become a close ally of the United States recently signing a defense pact and placing a huge order with Boeing while considering purchasing advanced F-16 and F-18 fighters. President Bush, not a big traveler, is planning to underscore the importance of strong bi-lateral ties by visiting this country by the end of this year.

The World’s Most Populous Democracy

You have probably guessed by now that the country we are discussing is India - the world’s largest democracy.

For sure India has its challenges: big infrastructure needs, frustrating red tape and a tendency for the government to hang on to large state-owned enterprises to mention a few. Still, compared to China, India does not get much attention except for the outsourcing issue and is – for now – largely under the radar screen of even many sophisticated investors. India’s 30 company Bombay Sensitive Index (Sensex) index is up 22% this year and broke the 8,000 barrier just last week. Much of the buying is being done by foreign institutional investors from the U.S., and more recently, Japan.

The challenge with investing in India right now is valuations of the leading companies and the limited investment options. Valuations may be getting a bit ahead of themselves with Sensex companies trading at around 14-16 times next year’s earning projections versus 11 times for emerging markets as a whole.

The Morgan Stanley India Fund (IIF) is a closed-end fund that invests in India’s blue chips and is up 97% in the last 12 months and 39% so far this year. It is a bit pricey right now and trades at a 14% premium to net asset value so caution is recommended until this premium comes down to the historical average in the low single digits. There are only eleven Indian ADRs trading on U.S. exchanges and these are also expensive and trade at a price premium over the India market price. One exception may be Tata Motors (TTM) which is listed on the NYSE at a price of $11.50, has a dividend yield of 4% and trades around 13 times 2006 consensus earnings estimates.

How to Play the Opportunity

Information is available to help you navigate investing in the Asia-Pacific region. Unfortunately, many of us rely on the newspaper and evening news. There are sources, like the “Asia Investor Intelligence," that give much more educated and specific advice.

So, where to act right now? For the right investors, there are long-short funds that focus more on India’s small and mid-sized companies which tend to be much better values, have not participated in the recent run up of prices and are also more insulated from global capital flows. These funds can also hedge against companies with unsustainable valuations and cushion inevitable pullbacks in the market. Be patient - there no doubt will be great investment opportunities as well as new investment vehicles to take advantage of this great secular bull market.

India presents investors with the opportunity of a lifetime and its democratic government, stronger financial system, market-based interest rates and history of respecting property and intellectual rights may make it a better long-term play than China. About The Author: Carl Delfeld is head of the global advisory firm Chartwell Partners. He served on the Executive Board of Directors of the Asian Development Bank in Manila and is the author of "The New Global Investor". For more information go to http://www.chartwelladvisor.com/asiaintelligence.htm or call 877-221-1496

One of America's Biggest Financial Ripoffs

2009-06-03T00:34:00.001-07:00

Posted by By Roland Manarin on: 2005-07-12 00:37:58

Let me start by saying that very few people should ever have an annuity. If someone has sold you an annuity, I am not saying you should sell it immediately and get out but be cautious. If you do not know, an annuity is a product that creates an umbrella. You then put things in under this umbrella and the IRS cannot get to it. If it was supposed to be taxed, then under an annuity it will not be taxed while it is growing. This is the way annuities are sold and since most people are more focused on what things cost than what they can make, most people think this is a great deal.

There are two main types of annuities – fixed annuities and variable annuities. I never suggest anyone should get a fixed annuity. This is a product that guarantees you 5% or so a year. This is because your assets are commingled with the insurance company’s assets. If the insurance company files bankruptcy, you lose your money. This is why an annuity is tax-deferred. In other words Congress said, “you can have the annuity tax-deferred but your money is then commingled with the insurance company’s assets so if they get sued, attorneys can place a lien against your annuity.

A variable annuity is invested in ownership. This is the type of annuity to own if you absolutely have to have one. Your money will not be exposed to creditors of the insurance company because the money is not with insurance company – it is invested in something. Let us say you have a variable annuity – never put retirement money into a variable annuity. A variable annuity creates an umbrella that protects the things under it so why would you put an IRA into a variable annuity. An IRA by definition is tax-deferred. Why would you pay an insurance company an extra 2% a year to act as a middle man to get your IRA tax-deferred. The IRA already is tax-deferred. Why would you put a 401(k) in there? A 403(b)? Why would you place a municipal bond in there? You are stunting the growth of your investment by having the insurance company create this umbrella.

But let us look at the other side. What if you put money that is not tax-deferred into a variable annuity? Therefore, if you had it, the investment would be taxed but if you placed it in a variable annuity it would not be taxed. Now this sounds reasonable right? Let us take a closer look and see.

Suppose you have $100,000 and we put it in mutual fund X. Then you take another $100,000 and put it in a variable annuity with mutual fund X. The insurance salesperson would tell you that you are better off with the variable annuity because it grows tax-deferred rather than the mutual fund which you will have to pay taxes on as it grows. That is a true statement but you are not getting the whole story. Let us analyze this a little closer. Remember that I am using the same two investments in this example so both will have the same level of growth. The only difference is that one is in an annuity which is tax-deferred and the other is in the mutual fund which will be taxed. Say that because I am such a great investor for you, I doubled your money in both of these investments in a week. I call you up to tell you that your money doubled to $200,000 in each investment so you have a heart attack and die. Your spouse mourns for a few minutes and then asks me how much these are worth. I tell the spouse that they are both now worth $225,000. The spouse tells me that they wish to sell one so that they can build a new house.

Which one should I sell?

If I sell the variable annuity, the spouse is going to pay taxes from dollar one of the investment to what it is worth when they sell it - at income tax rates. For this example let us say it is 28% federal and 7% state – that is 35% of the $125,000 gain! If the spouse sells the mutual fund, the spouse is taxed from time of death which in this case would be $25,000 – at capital gains rates. Ok, so which do you want?

Keep this number in your mind - $80,000. In 2005, if you make under $80,000 and sell the mutual fund, your capital gains rate is 5%. If you make over $80,000, your capital gains rate is 15% on this $25,000. Your income tax rates are the same. Now remember this – starting in January 2009, if you make under $80,000 a year, your capital gains rate is zero! So what an insurance company salesperson is doing to people who make under $80,000 is putting them into an annuity that they are not going to sell until after 2009 which they will then have to pay income tax rates on instead of something that if they sell after January 2009 is tax free.

Do the sales people tell you this? No, they tell you that you can get this tax free growth. Big deal – if you pull it out you pay income tax rates. In the mutual fund, you pay nothing if sold after January 2009 when this law takes effect. Now, if you make over $80,000 you have to pay 15% on the mutual fund. Would you rather pay 15% or 35%? This is why I tell people to be cautious with annuities. We also find that the average fee for the annuity is 2% but you do not have to pay taxes while the annuity is growing. So what the insurance company is dong is diverting the money going to the government and placing it into their pockets yet at the end of the deal you still have to pay income tax rates. People are never shown this which is why I could never recommend that people place money into an annuity.

A big word of caution – if you currently own an annuity of any kind, do not cash it in just because I bad mouth them. It may cost you too much in taxes and penalties to get out of it so you need to get with an expert to help make the best of a bad situation.

Roland R. Manarin is president and founder of Lifetime Achievement Fund, Inc. and Manarin Investment Counsel, Ltd. For decades Manarin has been educating the public about investing and financial planning through this wealth-building seminar series and as co-host of the regional radio program "Its Your Money." Through the Manarin family of companies, Roland Manarin oversees in excess of $350 million in assets.

http://www.LifetimeAchievementFund.com
http://www.manarin.com