5 Biggest Mistakes On Investing – How To Avoid Them
March 9th, 2010 by aclazaro
It is without doubt that once in our lives, we commit some kind of financial mistakes along the way that make us lose thousands of dollars on an annual basis. And what’s worse is that we are not even aware that we are already doing these mistakes.
Here are those five derived from the book Why Smart People Make Big Money Mistakes And How To Correct Them:
1. We become overwhelmed more with the losses than our gains.
2. We emphasize too much the most unusual financial events that happen all around the globe.
3. We choose to do nothing over a surfeit of options.
4. We ignore tiny numbers like mutual fund expenses.
5. We let out emotions affect our major financial decisions.
Photo via shine.yahoo.com
Savings Retirement or House Down Payment
February 23rd, 2010 by aclazaro
If you would have to choose between saving for retirement or for your house down payment, what would you choose? What would be a better option?
Apparently, both are very essential. The younger you may have started with your 401(k) contributions or the IRA, the longer you can have some compounding interest. But we cannot deny the fact too that it is during the younger years of our age that we desire to have our own homes so that we can be more prepared once we reach the next phase of our lives like getting married or having kids.
Of course to save for both is possible, but it could really be such a burdensome commitment. Hence, you will be moved to just make one priority. But still in the end, the financial experts say it is better to save for retirement first. It could be a more sensible option to prioritize.
Photo via http://v1.theglobeandmail.com/partners/free/rrsp/2008/primer8.html
6 Solid Reasons For Investing On Good Rental Property
February 19th, 2010 by aclazaro
Yes, it may still be the hard financial times for most, but you must remember that everything that falls down eventually reaches up again. That is the circle of life and we must all accept that. Here are six reasons that can keep your hope alive if you are planning to invest on rental properties:
1. It creates a steady and passive monthly income. You can always be assured that you can collect some money after the end of each month.
2. It offers a deeper sense of financial security.
3. It could allow you of a yearly tax deduction for the value loss of your real estate properties with the actual worth of your rental property increase.
4. With the concept of capital gains taxation, you won’t be charged any tax not until you have sold your property.
5. Real estate increases more in value (more frequently) than the chance of it losing.
6. It gives you some pride of ownership. You will surely feel fulfilled each time you would drive around a place where you own a couple of properties.
Photo via http://kcinvestmentproperty.wordpress.com/2009/04/20/meanderings/
Investment Properties – What To Look For
January 22nd, 2010 by daphne reyes
It is crucial that you make sure that you do your research before investing your money. Make sure that you will be able to earn back what you spent, and more.
1. Location – Look for rental investments in areas convenient to major employers, schools, shopping and public facilities, and transportation.
2. Price – If you hope to charge more than the cost of the monthly mortgage, insurance and taxes on the home, you should be careful to invest no more per month than the local rental market can bear. If your goal for rental income to “break even” or perhaps less as the property increases in resell value, price becomes somewhat less important.
3. Future Resale Value – Properties in growth areas can rapidly increase in value, turning your rental property into a prime resale opportunity. Investing in low growth areas can provide a steady stream of renters, without a major growth in equity.
4. Neighboring homes – One home on the block that is poorly cared for can drive down potential rental income.
5. Solid Construction – Even the best tenant will be more likely to put wear and tear on a home than a home owner. Try to find low-maintenance properties that will stand up to the wear and tear of renting.
Brands with a Social Purpose
January 18th, 2010 by daphne reyes
It should be about building better communities and not just building homes. It should not just be about selling a good product but about selling a product that helps the environment. According to the third annual Edelman goodpurpose Consumer Study, the survey says that despite the recession, people are spending more on products that have a social purpose. 57 % globally say that companies are earning more on products that supports a good cause. The study also shows that 83% of people switch habits just to help make the world a better place. Considerably more people (70 percent) would prefer to live in an eco-friendly house than merely a big house (30 percent), and 68 percent also now feel that it’s becoming more unacceptable not to make noticeable efforts to show concern for the environment and live a healthy lifestyle.
People are becoming more and more aware of their responsibilities socially and this cause gains for companies who are true to their intentions on helping our world a better place to live in. Money loses its value as it is more important to save the earth than save money on brands that hurts our environment.
Why get an Education Plan
January 3rd, 2010 by msj484
Aside from acquiring a house and saving up for retirement, the third most important thing to save up your money is for your child’s educational plan. The earlier you start, the better. Although, not a lot of people are able to graduate from college, since there were a lot of jobs readily available to high school graduates in the past, the world economic condition is not getting better. Add to that the business of outsourcing and globalization, and what you get is a handful of people who are out of jobs. That is why it is important to go to college and actually finish college.
Getting a college degree could open doors of opportunities for your child, it will give him a chance to develop new skills and enhance the ones he already has. At the same time, it provides him added security in times when it is extremely hard to get employed.
So if I were you, I’d start real early in saving up for an education plan.
Florida Estates and the Big wigs who live in them
December 31st, 2009 by msj484Florida is home to US main land’s most spectacular beaches. For some bit of history, the state is the 27th admitted to the United States and is known to be the “Sunshine State” for it’s generally warm climate. Because of the tropical climate and the scenic beaches, the state of Florida is also a favorite of a lot of big celebrities. Others who can’t forget the charms of this state, eventually decides to purchase a piece of property on this state alien to snow.
Below are just some famous personalities who live in their posh Florida homes and estates.
John Travolta – Living in Jumbolair, next to Ocala Florida
Tennis legend Maria Sharapova lives in Bradenton, Florida
P Diddy lives in Miami Beach, Florida
Horror fiction writer, Stephen King, lives in Sarasota, Florida.
There are of course so many other celebrities who live in the Sunshine State. And obviously, they all know that purchasing a property and building their estates in Florida is a valuable investment, regardless of the hurricanes.
Rich Dad, Poor Dad
December 23rd, 2009 by msj484Have you read the book Rich Dad, Poor Dad? If not, well, I have a spoiler for you, but I promise it’s a good one. Read on.
Among the myriad of things that Mr. Kiyosaki did on how to grow his money, one the best things he did was to invest in real estate. He bought properties during the time the economy is on a slump. Despite people saying that during the financial crisis you have to hold on to your money, Mr. Kiyosaki took calculated risks in purchasing properties believed to be a waste of money back then. While majority of the people see those properties as crap, he saw a goldmine. And yes, he was not disappointed later on.
If you want to know exactly how he did it, you can grab a copy of his book and read for yourself. Take note that real estate is the real and perfect investment.