After months of debates and meetings to consider raising the debt ceiling, politicians (both Republicans and Democrats) waited until the last day to actually write the bill and vote on it. Even after all the compromising and dealing that went on, the bill is nothing more than allowing the federal government to spend more money than it has in the past.
Standard and Poors released a report Friday night announcing the downgrade of the United States credit rating from “AAA” to AA+” with a negative outlook. What bothers me more is the “negative outlook” comment than the loss of triple “A” rating status. Never in the history of the united States has the credit rating of the country was anything but triple “A” but to say that you (S&P) expect more negative issues to occur later on down the road. This morning S&P downgraded Fannie Mae and Freddie Mac as well as urging Washington to get their act together now or another possible downgrade can happen within the next two years. Washington’s demonstration of lack of solid reform ideas and true leadership skills to do what is necessary, has shown the world not to have confidence in the United States

So where can you invest your capitol so you don’t take a beating any more than you already have during the past four years? That is up to you. I can only suggest investments strategies or ideas that I believe to be the right choice. I’ve talked about this day coming for about ten months and how I’ve protected myself against this economic correction. I know there are quite a few of you readers out there took some of my advice and you’re happy you did. Especially since I’ve been talking about owning gold, silver and other precious metals to hedge against the loss of value in the dollar as well as equities on Wall Street. Gold has hit it’s all time high of $1,728.37 while silver held within it’s usual price range of $38-$40. While precious metals have climbed a great deal over the last year, analysts feel that gold isn’t done making new highs. Some feel this is the time where silver is going to gain traction to fall more in line with gold prices. Traditionally silver-to-gold prices have been a 16-to-1 ratio. With that in mind, silver should be trading at $108 per ounce.

I don’t expect anything good for to really happen to take us out of this recession for at least a year. As it is, Congress is on their five week vacation and Obama is still blaming others while trying to say that tax reform and medicare reform are the answer to economic prosperity. Until the federal government gets out of the way and lets the free market to do what should have happened in 2007-2009, before the bank and auto bailouts, we will continue on this path of no growth.

So invest wisely and tread lightly.

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Add to the fact that since the federal government is still a major player in the housing market, I expect to see housing prices continue to fall another 10% (at least), before a real bottom can be called. Foreclosures are still keeping pace to the levels since the bubble popped. Take into consideration that unemployment isn’t getting any better and the current situation in Washington doesn’t help the matter at all.

So what does all of this tell you? Well if you’re looking for investments to help secure your financial situation, it’s time to start looking for some great rental properties to buy. Rental properties are needed for those Americans that have been hit the hardest and can’t afford to own a home. In many parts of the country, the apartment vacancy rate has fallen to 6% which means there are less places for renters to get into. After the mess that has happened in America, many wonder if the American view of owning a home has changed from what it has been known as, a symbol of prosperity and security. With that in mind, buying rental properties may be the best thing to do at this moment. For those who can take advantage of the housing market, you’ll be in a good position in a few years once people start looking again to owning a home.

I’ve been adding to my stable of rental properties for a few months now and I’ve been able to get some great deals. Banks are currently looking to get out from under the bad mortgage situation. Because of that alone, it’s time to look into foreclosure properties as an investment. Banks are not in the business of home owning, they’re in the financial business.

You need to do your due diligence when looking to buy rental properties. Just because rental properties are needed across the country, doesn’t mean it’s a high priority in your city or town. In a future post, I’ll go over a few of the basics you need to know to get a great deal on a home.

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You’ve probably at least heard of stock options, but chances are that stories of making huge profits very quickly scared you a bit. After all, with leverage and the chance for quick gains, one also naturally assumes heightened risk as well. What may surprise you is that if you get call and put options explained to you properly, you will understand that using options for leverage, and incurring lots of risk as you do so, is only half of the story.

Did you know that it’s possible to use options as a way to derive income from your existing stock portfolio? You also can protect paper gains in stocks that you own, with options. Selling options, also known as “writing” them, involves taking the other side of the trade from the person who is trying to make a quick buck by buying puts or calls.

You don’t hear as much about selling options as you do about buying puts and calls, probably because most people are more interested in the investment ‘home run’ than they are consistent base hits. Selling options is a great way to ‘hit for average’ to extent the baseball metaphor, as you focus on making small gains with very little attendant risk, rather than putting your entire investment on the line every time you buy a put or call.

There are many places online where you can get stock options basics explained to you thoroughly, so I won’t delve into the mechanics of selling options in this short article. Suffice it to say using options in this way is something that a lot of the “smart money” does to consistently increase portfolio profitability each year. Remember, we’re not talking about making huge profits when we are selling options. But smart investors understand that increasing returns by 3% to 5% each year for instance, makes an enormous difference in one’s net worth by the time retirement rolls around.

You owe to yourself to look into stock options, at least to become informed about opportunities beyond simply buying stocks, bonds and mutual funds. In these uncertain times you should examine all available types of investments. It would be a shame to let opportunities that exist in writing calls and puts pass you by, simply because you are unaware of them.

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There are economies that are consuming huge amounts of copper with an example of China which has a population of over one billion and the amount of copper required for their industries and construction needs. The United States and Canada is also a big market for copper and its products and this makes investing in copper now a prudent move. You could also consider the many infrastructure projects all over the world that require copper as well as the electrical and electronics products that are produced using copper. This great demand for copper means a rise in it’s price and thus higher profits for investors.

Before committing your money in copper ETF it is necessary to do some research and make sure you know what you are getting into with this commodity type of investment. The internet is a good place to begin research on the companies involved in copper investing. You should also talk to investment professionals who can give you advice on how to go about it. Another source of information is actually the relatives and friends who are already investing in copper ETF. They will have first hand experience and their advice can help you avoid mistakes that are made by first time investors.  But of course take their advice with a grain of salt.

Professionals will also help you with tax advantages available for those investing in copper. This is especially important as you could easily watch a huge amount of your profit go to the government as tax if you do not structure your investment well. It is also important to know that there is no guaranteed investment and each will be a risk. The key therefore is to identify investments that pose a lower risk but have potential for great financial profitability. Copper ETF is one such investment that you should consider.

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Gold Investing: Getting Started
One of the first things that you will notice in the world of gold, is the many different options of investment options that there are. They range form mining stocks, to gold ETF, and assets. If you are a first time investor, then we highly recommend that you start out with investing in hard assets. There are many reasons why, so we will explain further.

For starters, hard assets such as gold coins, and gold bars are tangible assets that you can feel, and touch. Meaning you would have full control over your investment, without having to rely on anyone else. Also, these investments are one of the safest optoins as gold is held in high regard by people around the world, and it has yet to lose its value or popularity.

Gold Investing: More Tips To Consider
Also, another great aspect to hard assets, is the fact you can find them at many different locations. A few places to consider would be flea markets, and antique shops. Another great place to look would be pawn shops. We highly recommend that you check your local jewelry store as well. And last but not least, shop online for assets, where you can often get great prices.

Your life may be changed in such a great way, that you will want to share with other your knowledge regarding gold. This may open up a new and exciting career option for you, and your family. To start out, you will need to find a cosigner, and consider getting a business partner as well. Once the cosigner is in place, you will be well on your way to the start of a new and exciting career option.

Gold Investing: Conclusion
You now have the basis needed for getting started in a world of gold investing. You will love it, and enjoy the many benefits.

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Do you know what investment is? What makes an investment good? First, you have to clearly define investment. It means different things for different people. Investing is when you use a resource in the attempt to get a return over time. You use your time or money right now in order to get more later, is the basic story. In order to tell the difference, research as much as you can into the art of investing. Keep your emotions under control, because logic will help you make money whereas using fear and panic will not.

Do not simply follow the actions of other investors, because oftentimes by the time you hear of a good investment or a hot tip, the good deal is already gone. Once everyone starts to make money doing something, it no longer becomes useful. Like leading the lambs to the slaughter, your money will simply disappear if you follow like a sheep to other’s investment advice. Only you can tell the market trends and find out for yourself what you need to find.

Some examples of questions to ask yourself are “How much experience do the runners of the company have? How long has the company been in business? Can their product provide a service to people? What is the company’s mission plan? Does the company care more about their shareholders or about pleasing the customers?” These are only a few examples but the more you can find out about a company, the more likely it is to stand the test of time. If the company focuses only on money or is run by incompetant and inexperienced people, don’t invest in the company. It will be a dud. It may be worth lots of money now but the prices will fall very shortly once the company catches up. If you focus too hard on the dollars, you may not be able to see what your brain and logic is telling you. Don’t be a gambler, be an intelligence investor. Increase your financial intelligence, learn to invest, and it will pay off for you in spades.

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What is a Roth IRA?

A Roth IRA is a retirement account in which the initial deposits are taxed just like normal income before going into the account. From that point on it is tax free if you follow the simple guideline of not withdrawing money before the age of 59 ½. When you begin to withdraw funds as income during retirement, none of the money is taxed, so you don’t have to worry about high taxes in your future and know exactly how much money you have to live off of. These no-fee Roth IRA accounts can be managed personally, by a bank, or a financial advisor. These accounts can also be held by a single person or a couple, and used as a supplement to other retirement investments or as their sole means of retirement planning.

What are their rules?

The Roth IRA account has strict rules regarding contributions to the account, withdrawal, and the amount of money the account holder makes in a fiscal year. Single or married joint accounts can contribute $5400 as of 2009 but the amount changes with inflation each year. A single individual can qualify for a Roth IRA if he or she makes under $105,000 a year or a married couple can earn up to $150,000 a year. In addition to the normal accounts there is a heavily restricted account where individuals can make up to $120,000 and married couples can earn $176,000 a year. All these figures are as of 2009 and change with normal inflation.

How do you Convert to a Roth IRA?

Converting to a Roth is easy if you qualify using either a local bank or brokerage house. All it takes is going into your local branch and opening an account. If you already have a normal IRA or retirement account at work, a few more steps are necessary but the process is simple and handled by the banking representative. Fill out a few papers and turn them into the bank or brokerage house. One thing to keep in mind is that the transferred money will be taxed if it is moving from a traditional IRA or 401k.

How do They Compare to Traditional IRAs

Traditional IRAs and Roths have the identical purposes but go about their business very differently. Traditionals are not taxed on the front end whereas Roth’s contributions are taxed. Later when it is time of begin making withdrawals from the accounts, Roth’s offer tax free withdrawals, while a traditional IRA is taxed as income. Traditional IRAs enforce a mandatory withdrawal at 70 and half but Roths never require account holders to withdrawal funds.

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Knowing the Guidelines

Land investment guidelines have remained the same for the past hundreds of years.  Regardless of whether our economy is in a boom or a recession, the key points have stayed the same.  Key point number one is location, key point number two is location, and key point number three is location.

Finding the Land Investment Right for You
Regarding land investments there are several different types you can get into.  This game is not a one-size-fits-all concept, use your personality, know exactly who you are, map out your own route and do it your way.  Are you a person in tune with an urban countryside vacant property?    Or does a land investment where there is constructed property fit your personal character better? After the initial cost of the property, vacant land does have quite a few options for the different outcomes available.

Countryside that is Vacant Land

Countryside typically has a lower purchase price and usually has more available.  When buying neglected and overgrown acreage, look at the long-term result speculations and possibilities.  Is it land that you can clear and farm, perhaps resulting in generations of your own family developing this land and turning your investment into family heritage?  Used as farming land, the yearly profits of the harvested crops can paid off the initial price of the land purchase.  Once that money outlay is repaid, the yearly profits from the farming turn into pure profit of the land.  Of course, knowing that not everyone has what it takes to be a farmer, you can also consider some other options for your vacant countryside.

The second option for your land investment would be “flipping the property” once the land purchase if complete.  If you followed the three basic guidelines for land investment and purchased based on “location”, you could possibly have neighbors who will become immediate potential buyers if they are interested in enlarging their property size.  Of course, your buyer could be someone searching for vacant property to build on and will be drawn to your well-groomed or land you have recently enhanced.

Undeveloped Urban Land

Investing in undeveloped urban land is not for the weak of heart.  This type of land speculation is not typically a venture recommended for the novice, it will require background experience along with your pockets full of money.   Location for this investment is not just guidelines one, two and three to be follow, it is imperative.  The investor needs to be completely knowledgeable of all the details, which would include knowing the local area, businesses in the area and zoning regulations to start with.

Is this Idea Bad or a Good One?
So, your research is done, you are prepared financially, and you believe.  Go ahead, look for the location and jump in, it seems investing in land continues on a positive path. The constant through all the years, the times, and in any market is the fact there is only a certain amount of land available, there will not ever be any more, so choosing to become involve by investing in the land is a good idea.

Read more about how to save money.

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A stock market investing beginner should first read as much as he can and get some suggestions from other investors who are experienced.  Investors who know the market well – and the best sectors and companies to invest in, can be an invaluable resource when beginning to invest in stocks.

When you choose to invest in stocks, it is important that you are consistent and give it serious effort to succeed. Make sure to spend enough time to learn and understand all the processes that are involved with exactly how to buy stocks the right way. Firstly, you should know the aspects and elements concerned that play a major role in the ebb and flow of the markets and what drives them. Through reading articles, books and browsing reliable Internet sources, you will be able to expand your knowledge on how the stock market industry works for a good baseline education in investing.

Despite impressive results when one knows the ins and out of trading in the stock market, buying stocks also has a lot of potential risks and downsides. Before engaging in trading of any kind, plan for the worst case by setting sell limits both low and high. Getting assistance and guidance from someone who invests professionally or from a member of a stock brokerage may prove useful to you as well.

Understanding a variety of portfolios and how they work will give you strong  knowledge advantage. In making investment decisions, make sure you know the taxation rules for stock market investing. For a good source of information you can consult your preferred brokerage online since many provide you with all that you need to know about various portfolios, stocks and more. Again, a reliable look for a reliable source only when using the Internet as a research basis.  Even though a particular informational site  may seem up to date, some information does not supply the correct investing information that you are looking for.

Finally, all the points above will not help you if you are not diligent and have a hard working mindset. If you keep yourself updated on trading and tax rules, as well as market sector and company profiles, then your efforts will definitely pay off in future profits with your stock investments and making the right investing choices for your stock portfolio.

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What Type of Traders are Attracted to Penny Stocks?

Usually seasoned investors are attracted to micro cap equities due to their volatility. This makes for a larger price move in shorter time frames with a greater upside potential on a percentage basis. Another type of investor, that may ignore the volatility, is an investor wanting to start with a small monetary investment. This is where the term “buyer beware” may come into play.

What are the Risks of Penny Stock Investments?

The obvious risk for penny stocks is volatility for first time investors trying to get their feet wet in the market. Companies in the micro cap category are often less secure, and do not pay dividends. Penny stocks aren’t subject to the same type of requirements as Blue Chip equities, so there is more room for price manipulation. Seasoned investors or organizations can buy up large amounts of these stocks and drive up the market price for their own purposes. Therefore, even though they are called penny stocks, you may have a higher risk. However, this can be offset by the possibility of a much higher return on your investment.

What Should I Do to Get Started in Penny Stocks?

The very first thing is research the market; know what you are getting into. There are opportunities for good investments to take you out of the speculator realm, but that will come with time if you are a novice. Visit forums where you can learn penny stocks, so that you can now what signals to look for when buying and selling, and when to take advantage of these signs. Use your brain and not your heart, due to the volatility of quick decisions.

The term “penny stock” is used on the market for several reasons. It can be a reasonable investment when you are aware of the pitfalls, but it can also be very detrimental due to the loosely based criteria for fraud protection. Know your market.

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