Why Choose Oil Investing
October 29, 2009
Great risks and potential huge monetary gains. This can sum up in itself what oil investing is about. Not a market for the faint-hearted, oil investing is a highly volatile sector where changes are the norm, and risk runs the gamut from quite low to extremely high.
Still, why do so many choose to invest in this highly unpredictable market? There is much that is said on the scarcity of oil, its dwindling volume, its absence of supply growth, as well as the tightening of supply by oil-producing countries. Balanced against the increasing demand for oil in a world which is driving towards consumerism, where oil needs are vital, it results in a situation where the price of oil is not likely to go down. In fact, it might just remain on the up, or constant at its relatively high price on the market. While it is true that fossil fuels are not something that can be classified as a renewable resource, the investor will often look at the situation and not the ongoing demand for the product. Any product that has a steady demand that will only grow over the next few years is a sure bet when it comes to investing.
This makes for a safe and relatively lucrative investment. However, oil investing should not be attempted as a hobby or in a happy-go-lucky way. Professional advice is best sought for this endeavor. Expert advice can be provided by portfolio managers, and investors can go one step further and learn about geographical characteristics of drill sites as well as seismic and structural features of oil industry sectors when considering potential investment.
Oil investing also provides a rather large spectrum of risk potential, ranging from relatively low to highly explosive. The easiest and less risky investment is by buying stocks of well-known major or independent oil companies. More risk and higher returns can be found in smaller, aggressive companies and service companies which are expanding into new markets. Some of the riskiest but which may provide the highest return pertains to investing with independent operating companies on a direct participation investment, and also commodities futures trading.
Other methods of oil investing include mutual funds which focus their portfolios on the energy industry, oil and gas companies traded on stock exchanges, independent oil and gas companies, drilling funds, royalty funds, lease acquisition funds, and combination funds.
However, in all these cases, sound business acumen and diligence are advised. Investment acumen, investment objectives, and investment vehicles should all be determined prior to oil investing.
Mayoor Patel is the writer for the website http://oil.oil-universe.com. Please visit for information on all things concerned with Oil Investing
Can You Afford To Retire
October 26, 2009
Looking to make investments for retirement always seems to be something that you think I’ll do it in another few years. However, anyone thinking in this way couldn’t be more wrong. It is vital that these days you start to think about that rainy day whilst still in your twenties and thirties because everyday you put it off could mean you have to work longer, and who really wants to work until they are in their seventies?
The way our country is today things do look pretty bleak for the future. The government is more involved with making money available to go to war than keeping the social security system in a healthy state. For many retirement seems to be fading into the distances - more of a maybe than a reality. So it is down to you as an individual whether you purchase IRS’s or put your money towards the purchase of gold coins to safeguard your future, it is something that has to be done.
Really, I am not qualified to give you advice about investing for retirement. No one simply writing an article can explain to you what plan is right for your long term financial needs. The best way to learn how to invest for retirement is to talk to a qualified financial consultant. That way, you will get the opinions of an expert, custom tailored for your needs and your financial situation. Honestly, although everyone needs to think about investing for retirement, not everyone needs to go about it in just the same way, and so having a plan that is correctly made to fit your needs is the only sure way of doing it.
The best thing about investing for retirement today is that it will eliminate years of worry. Not planning for retirement is not going to make the problem go away, and the chances are that you will be concerned about the future whether or not you have an investment plan. If you can begin investing for retirement sooner, then that will be one more thing that you can get off of your mind, and cease to worry about. Your independent financial expert will be able to advise you on your individual circumstances and have it all taken care of for you, then you will be able to sit back and watch your savings grow at a steady and useful rate. There is nothing better than that.
Discover more articles discussing retirement and senior living at http://seniorstips.com
A Closer Look At Day Trading
October 23, 2009
Day trading is a controversial word in the world of stock trading. Many see it as a way to make a living off of the fast paced stock market. The Securities and Exchange Commission (SEC) warns against the practice and cautions against getting involved in the practice.
Just what is day trading and why does it cause many to be cautious? Day trading is the practice of rapidly buying and selling stock throughout the day in the hopes to profit from the marginal changes in the market in that specific day. Ideally, this practice allows investors to profit from the fractional increases in the market.
Day traders look at a certain set of criteria when determining whether a stock is suitable for day trading. First, the stock must have a high liquidity. This means that the stock in question has a large numbers of buyers and sellers. The liquidity allows day traders to quickly acquire and then sell stock. Liquidity is based on the volume of transactions on the market, the number of outstanding shares, the total number of shareholders and the number of market makers. Most stocks on the NYSE and NASDAQ have a high degree of liquidity.
A day trader also looks at volume individually, in addition to using it as criteria for liquidity. To be eligible for day trading, a stock should trade at least 500,000 shares a day. Stocks with 500,000 trades a day or more will allow the day trader to acquire or sell a large amount of stock without greatly affecting the price of the stock. Volatility is another factor in evaluating a stock for day trading. The term refers to the actual or expected price movement of the stock. This movement is up or down over a period of time. Day traders look at the volatility of stocks over an individual day. Stocks that change price frequently over one trading day are ideal candidates for day trading. A fluctuation of at least $2.00 per day is recommended.
Finally, a day trader evaluates the price transparency of stock. This term refers to the ability to gather information on the order flow of a stock. Also called market depth, price transparency helps the day trader determine just how much money there is to be made on a certain stock. The Nasdaq II quote system offers information on all bids. Day traders who arrange to access the NASDAQ level II quote screens can assess the strength or weakness of a stock and determine its movement in price.
While day trading is completely legal and entirely ethical, it is highly risky. Day traders usually buy on borrowed money with the hope that they will obtain higher profits through their acquisitions and sales. People who are deemed “pattern day traders” by the NASDAQ and NYSE must have at least $25,000 in their accounts and can only trade in margin accounts. Margin accounts are brokerage accounts in which the broker lends the investor cash to purchase securities. If the value of the stock drops significantly, the investor is required to deposit more cash to cover the margin or sell the stock.
The SEC warns against day trading and has taken many steps to inform people of the associated risks.
The first few months a vast majority of day traders suffer massive financial losses and only a few make it through to become profit-making day traders. For this reason, day traders should only invest money that they can afford to lose. They should never use money for necessities such as living expenses, retirement accounts or second mortgages.
Keep in mind that day traders do not own stocks for longer than a few minutes at most. Stocks are never kept overnight because of extreme risk of prices changing to the detriment of the trader. Day traders do not invest, rather, they speculate on the movement in price of a stock throughout the day.
There are many websites whose sole purpose is to profit off those who wish to become day traders. These websites promise quick returns and offer “hot tips” to their members for a fee. The sources are most often paid to make these recommendations and should be avoided.
Gregg Hall is a business consultant and author for many online and offline businesses and lives in Navarre Florida. Get Day Trading Systems
Foreclosed HomeDiscover The Truth About Foreclosed Homes
October 21, 2009
Foreclosed houses are houses that have been closed by an individual or a group of individuals before another person owns them. Such situations arise when mortgagers either dont bother to take their house back or are unable to release it because of financial adversities. As a result mortgaging companies takes over the charge of the house and offers to resale it.
You might have come across property news and newspaper advertisements, local magazines or even the Internet having information about foreclosed homes. Even the real estate agents have foreclosed homes offers in plenty. To know more about foreclosed homes you can talk to the real estate agents or even the assessors. Plan a visit to the local courthouse would give you a rough idea about the various deals and how their dealing process. Similarly, you can also attend the foreclosure home auctions to know more about the auction options and the risks involved.
Planning to buy a foreclosed home is one of the most significant financial decisions an individual has to take. Purchasing foreclosed homes includes bargaining the foreclosed sale, acquiring mortgage, getting the title insurance and finishing the home purchase.
Before buying a foreclosed house you should be well informed about the various options available. This applies especially to the first time foreclosed homebuyers who are new to the foreclosed property transactions. As mentioned before, consult a reputable title agent or attorney before buying a home.
Many people harbor wrong notions that foreclosed homes are basically shabby homes in rundown neighborhoods. However, its only people who are actually investing in foreclosed properties that know that this notion is incorrect. Foreclosed homes come in a variety of size and shapes, consisting of large, beautiful new homes in the most sought after neighborhoods.
You are in for a terrific amount of savings, if you are buying a foreclosed house. Strange as it sounds, this is true. By buying homes at 10% to 60% below the original market value simplifies making monthly payments and generates huge savings on the whole. In some circumstances, individuals can buy homes with very less or no deposits, even if they have a bad credit history. Foreclosure pricing is also known for building equity instantly.
Today, you might find more opportunities for buying foreclosures than ever before. To some extent this is because of the high debt rates getting more people into financial trouble, and partially because lenders are giving mortgages to higher-risk borrowers. However, the good news is that together these factors are increasing loan default rates. People who plan to buy foreclosed homes can pick and choose the home they want at a great price. Many of these homes are not advertised, as they are not profitable for the real estate agents.
Foreclosed homes can prove to be of good value for the right person who is willing to consider all the options available. If you are a buyer of foreclosed homes, keep in mind that these houses are not necessarily vacant. Till mortgage companies hand over the house to the buyer, the original residents still own it. Basically, it depends on the buyer decision to keep the original owners as tenants or ask them to vacate the house. Furthermore, furnishing or renovation of the house is not the responsibility of the original buyers.
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Fall Noted In Borrowing Outlook
October 18, 2009
Less people are looking to save, borrow or invest money, according to the publication of new figures.
According to GfK NOP’s latest UK Financial Activity Bulletin (FAB) carried out for JGFR, an estimated 35.5 million Britons are expecting to do at least one of the above actions over the next six months, a fall from the 39.5 million recorded this time last year. Some 2.9 million fewer consumers intend to put money into a savings or investment scheme, with those planning to borrow via personal loans and credit cards falling by 1.8 million.
Commenting on the findings, John Gilbert, author of the report, said: “The latest Financial Activity Survey data reflects the straitjacket many consumers find themselves in. More people have adopted a cautious approach to personal finances - seemingly preferring to focus on meeting monthly commitments and spending out of income.”
Mr Gilbert claimed that the study also reveals that financial services providers are set to introduce a series of “attractive offers” over the remainder of the summer months in an attempt to encourage consumer spending activity despite the impact of recent interest rate increases and “squeezed2 household budgets. “As in March the current climate remains a tough one for retail financial services providers. With higher-margin consumer credit constrained by continuing bad debt write-offs, many are having to seek new ways of generating revenue from financially restrained consumers - or cut costs,” he added.
Figures from the firm also indicated that Britons are particularly pessimistic about lending money. The FAB Borrowing Index was reported to have remained unchanged from March’s figures at 74.0 - a record low. Meanwhile, the Consumer Credit Index was shown to have slumped to 74.9 - the lowest figure ever recorded and the fifth consecutive quarter in which Britons’ outlook on credit usage fell. Down from March’s figure of 77.6, the index was also below the 101.1 witnessed in June 2006. The shortfall in demand for consumer credit was attributed to borrowers becoming more careful on how they spend their money amid concerns over future base rate rises by the Bank of England.
Despite fewer people borrowing via credit cards and personal loans in recent months, GfK NOP reported that the past two years have witnessed ‘high levels’ of consumers making repayments on various debts. In turn, the proportion of the adults expecting to complete debt repayments in the coming months has reduced from about a third to less than 25 per cent over the last 12 months. However, the decrease in debt servicing was partially attributed to more consumers taking a break from making secured loan repayments.
At the beginning of last month Alliance & Leicester’s senior personal loans manager Richard Al-Dabbagh claimed that those who borrow money should do so with careful planning and thought. His comments come after research from the company showed that almost half (42 per cent) of car buyers choose an expensive forecourt finance deal as they find it a convenient option. Mr Al-Dabbagh reported that those funding a large purchase via store or credit cards may find a cheap personal loan to be a more competitive choice.
Abbi Rouse writes for the 1 Stop Finance Shop where you can apply online for debt consolidation loans. We specialise in all sorts of personal loans with online application. Visit Today: http://news.1stopfinanceshopuk.biz/
Top 5 Missed Tax Deductions
October 16, 2009
How many times have you done your taxes, and a week or a month later realized you forgot a deduction? The tax law is very complicated, so it’s easy to miss a deduction or two. In my experience, these are the top 5 missed deductions.
1. Non-Cash Donations
Did you clean out your closets this year? Chances are you donated those items to Goodwill or a similar non-profit organization. The value of donated items (clothing, furniture, etc.) is deductible. You will need to get a written receipt and assign a value to these items, but the tax savings are worth the effort.
2. Points on Refinancing
With interest rates so low the past few years, there have been a record-number of houses refinanced. If you refinanced, you may have paid points to get a lower interest rate. These points are deductible over the life of the new loan. In addition, if you incurred points on an old refinancing, any unamortized points are deductible in the year of the new refinancing.
3. Educator Expenses
If you’re a qualified educator (teacher, aide, instructor or principal), you can deduct up to $250 for materials you bought for the classroom. Qualified expenses include books, supplies, and computer equipment. This law is set to expire in 2006, so take advantage of it now if you qualify.
4. Investment and Tax Expenses
Expenses for tax planning and investment advice are deductible as a miscellaneous deduction, subject to the 2% Adjusted Gross Income (AGI) limitation. Expenses that qualify include tax preparation fees, safe deposit box fees, fees paid to investment advisors, legal and accounting fees related to tax planning, broker and IRA fees paid directly, investment publications, and more. Many people assume that they won’t have enough miscellaneous expenses to exceed the 2% AGI floor, but all of these expenses combined can be substantial, especially if you have unreimbursed employee expenses to add to these expenses.
5. College Savings or 529 Plan Contributions
Depending on which state you live in, contributions to 529 college savings plans may be deductible on your state income tax return. Because this deduction is only available on the state return (no deduction available on your federal return for 529 contributions), many people fail to include this deduction on their state tax return.
Kristine A. McKinley, CFP, CPA, and founder of Beacon Financial Advisors, offers financial and tax planning on an hourly, fee-only basis. To sign up for free financial planning tips, worksheets, checklists and more, visit http://www.beacon-advisor.com.
Top 10 Ways to Reduce Your Debt
October 13, 2009
You may be in debt for reasons totally out of your control but it is totally up to you to fix it. So it is critical to make a plan for getting yourself out of debt. But before we make this plan, we need to understand some underlying truths. The first truth is that there are no “free lunches.” Companies who claim they can help you get out of debt and are “non-profit” should be scrutinized carefully if not avoided altogether.
These companies claim to be non-profit but you would be foolish to think that they are doing it for free. The second truth is that, at least in the United States anyways, there is no such thing as debtor’s prison. However, keep in mind that you can go to prison for non-payment of child support or taxes. A third truth is that you cannot “draw blood from a turnip” as I was told growing up. If you are in a situation where you do not have the money to pay then you don’t have the money to pay. You can’t steal it as that will only complicate your problems. By considering these truths, it will help to eliminate your worries and help you to avoid chasing after solutions that will only sink you deeper. Worrying about your debt will not solve your problem and there is no one else that can fix your debt problem other than you.
So, keeping these truths in the back of your mind, it’s time to come up with a plan for reducing your debt. Here are 10 ways you can start:
1. Stop charging on your credit cards. If you have to use a credit card then avoid taking cash advances from ATMs. Cash advances on credit cards have the highest interest rates.
2. Try to increase your income in order to make larger payments on your debt. This might mean moonlighting or taking a second job on the side (the internet is full of additional income opportunities) or having a garage sale.
3. Reduce your expenses. Do you really need all of those premium cable channels? Do you need a bigger second car or do you even need a second car?
4. Liquidate assets. Analyze this carefully but sometimes you have assets such as stock that can be sold even at a loss in order to pay off high-interest credit card debt.
5. Come up with a budget. This is the simplest yet most overlooked strategy to reducing your debt.
6. Try to keep your expenses fixed. Avoid any type of variable expense if possible. This makes it easier to create a budget.
7. Bring your own lunch to work. Try to avoid eating out for lunch or at least minimize it.
8. Transfer high-interest credit cards to a low-interest credit card if you can.
9. Look for things you can do yourself instead of hiring someone. For example, men might be able to invest in some barber clippers and try cutting their own hair. You might be mechanically-inclined and be able to make your own minor auto repairs (such as changing belts or replacing headlights).
10. Look for ways to cut your utility costs. If you have a fireplace in your home, you can actually save money in the winter by burning more fires. For those who live in desert climates, you can landscape your yard with desert flowers and shrubs and virtually eliminate the need for lawn watering.
And there are many more tips that can be added to this list. The overall goal of this list is to cut your expenditures and increase your income and savings. Unless you achieve this overall goal, you are bound to remain in debt forever.
For more resources on managing your debt visit: http://www.debtconsolidatecenter.com/
How to Find the Best Commercial Real Estate
October 10, 2009
For most people, jumping into the commercial real estate market is done with sights set on millionaire land owners who have made their fortune buying, renovating and selling properties over and over and over. One of the keys to this success is finding the right commercial real estate properties to turn over. Do you go with a high-priced property and just hang onto it for a few years, letting it gain in value and then sell it or do you take a more out of the way property, fix it up and make it valuable then sell it? These are all options available out there for a potential buyer, but which one is right for you?
The best deals out there will give the biggest return on your investment. It is not unrealistic to look for deals that could give you upwards of two to four times the profit of what you invested. The amount of paperwork and red tape you have to go through is essentially the same weather it is a big deal or a small one, so try to maximize each deal and make it as profitable as possible.
The methods you use to find the best deals are important. You can rely on your own two eyes and simply go scout possible real estate deals that could turn a huge profit or you could enlist the help of a professional. There are real estate brokers that specialize in commercial properties but since they are hired by the people looking to sell, you might not get a straight answer on a particular property since all they want to do is sell it. The best thing to do if you are going to seek the advice of a commercial broker is to make a firm list of qualities you are looking for and dont deviate from them. The broker may try to sell you something you are not interested in so be careful. One advantage in using a broker is getting listings that have not officially gone on the market yet. This can help you get a head start in placing a big for a unit since no one else will know about it yet. Another good tip is to utilize the Internet. There are many sites out there dealing with property values and commercial sites that are for sale and many sites have excellent search criteria that can help you find what you are looking for quickly and easily in a non-confrontational environment.
One final place that is a great source of commercial as well as residential properties is auction houses. You may have to register with these houses and pay a small fee, but it is a sound investment since the auction house will be offering properties as a significantly smaller cost to you than if you were to buy it normally. In addition, these auction houses tend to send out notifications of properties that are about to go on the trading block. This can give you the time you need to research the deal, see if it falls within your criteria and then you can decide if you are going to bid on it or not.
Overall, there are many different options out there available for those looking to find sound commercial properties to invest in. If you do the proper research, you can find the one that is right for you.
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Getting Started In Real Estate Investing
October 8, 2009
Education in real estate is relatively easy and cheaper to find. There are those who have thorough knowledge about the subject, go on to teaching and organize courses on it. However, it has been a tried and tested theory that if someone wants to be successful, they would have to learn the intricacies of the trade from someone who is more successful than them.
If you want to be a successful real investor, you will have to indulge in a lot of planning. Almost every successful investor has a game plan. The educated investors, who rely only on theory, know how to go about deals, but they have no clue about where the deals are going or why they are being pursued. They randomly chase the opportunities.
By planning, investors take responsibility of their life, finances, expenses and actions. These actions could be the major reason for the success of an investor. Following are some of the actions:
Controlling Debt
Controlling debts means paying debts as soon as possible. Debt tends to become the master of the person and causes sleepless nights, forcing people to hold on to their jobs and do things they would not otherwise do. There are people who stop stashing debts. They dont buy cards and other consumer items or spend on things, unless they have cash for it. There are some who even scale back their lifestyles. Some even move into apartments and some people give up their luxurious lifestyles for sometime, so that they can pursue their dreams. These are people who plan to pay off their debts and do not to accumulate any more.
Knowing What One Wants From Life
It is not common to meet people who know exactly what they want from life. There are many, who have no clue about their lives and some come up with answers like, I would like to make $200,000 per annum or I would like to have $6 million in my bank. When the very same people are asked why, all they can answer is Because I want it. These dreams of wanting something die away when something else tops the want list. People are under this wrong notion that having or making a lot of money would solve all their troubles and offer them a life they always wanted. Over time, society has brandished this idea, making it surreal, yet unbelievable. When people dont know what they are doing, money would make them feel miserable. However, a plan and some money could set them free.
Ability to Focus
Real estate investors have a mindset to be successful quickly. Seldom do people make a plan for being financially free in forty years. Two or three are a common thing. However, the good news is that two or three years could possibly change your life, if you have a certain direction and planning. Without the two, all your years of hard work could go down the drain. Generally, investors who focus find a niche in real estate investment, churn out good profits.
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Knowledge Is Power A Research On Stock Market Investment
October 5, 2009
A stock, a.k.a. share or equity, represents one’s ownership of a company. For example, a person who has 100 shares of company A, out of its total of 1000 shares, means he owns 10% of the company. As part owner of a company, the shareholder earns, when the company makes profit. In the same way, if the company loses, so does the shareholder.
A stock market is a place (real or virtual) to trade (buy and sell) one’s stocks. The New York Stock Exchange (NYSE, http://www.nyse.com/home.html) and the NASDAQ (http://www.nasdaq.com/) are examples of real and virtual stock markets, respectively.
That’s a brief overview. For a more comprehensive understanding, go to http://www.investopedia.com. For the stock market investment newbie, try to play a virtual game at http://investsmart.coe.uga.edu/C001759/usmarket/usmarket.htm, without spending dime. Students can practice stock market investment at www.smgww.org. and www.stocksquest.com.
Then why invest in stocks? Because it earns 10% - 12%. This is higher than any other type of investment (savings account, bonds and the like). The way to earn is to sell your stock market investment at a higher price than when you bought it; the price difference is your profit. You can earn in 3 ways:
1. Buying stocks at IPO (Initial Public Offering). When companies decide to sell stocks, they will offer it at an initial price. After some time, with the company’s good performance, the initial price increases, thus the earning;
2. Dividend. As a reward for investing in their company, the company may choose to give a portion of its earnings to its investors through dividends per share. However, this not a requirement for stock market investment, but purely voluntary;
3. Trading stocks. If you intend to invest in Company A, but did not catch its IPO, you can still do so by buying at the stock market. A broker, in your behalf, will bid for the best-priced stock of Company A, according to the price you want. The same happens, when selling. Compare and find the best broker at http://www.fool.com/dbc/tables/compare.htm?ref=60broker.
The key to success stock market investment is to know everything there is to know, about the company and the factors affect its performance. Consult the following:
The official website of the company. This should show the company’s corporate set-up, financial health and organizational structure as well as historical data of their stock performance.
Investment websites such as Yahoo!Finance, MSN Central and DowJone’s MarketWatch;
The news. To be aware of all the factors that may affect your investment, be updated with the news. For all you know, the weather forecast is the ace up your sleeve.
Knowledge is power and so it is in stock market investment. Invest successfully, with the power of knowledge!
Find out more about stocks and shares at http://stocksandshares.us
