Investment Tips

Offshore Investments

Many investment deals are based offshore, normally in locations such as Cayman Islands or the Turks and Ciacos Island. Avoid them

Why? The United States is a large country with well reputable laws and a comprehensive regulatory system. The main purpose of establishing an investment offshore is to avoid the US regulations. The funny thing is investors actually need more regulations not less. These deals abroad have a much bigger chance of engaging in questionable conduct than that of the US.

Plus if you believe investing abroad protects you from the internal revenue service, then you are wrong. A current agreement between Swiss banking giant and the US and Swiss government provided for the release of the names of wealthy Americans who thought they outsmarted the IRS by secreting money in Switzerland. Those individuals are now scrambling to turn themselves in and hoping to avoid prison time for their conduct.

Investing too conventionally

Long term investments, in general, will do better in the stock market. The long term annual average return for the stock market over the past century is around 10%. You could, of course, do better or worse than that in the years that you invest. But if you save for your retirement just with bonds or CDs or even real estate, you may find that you've underperformed needlessly in the long run.

Do not hold on for too long.

 Why did you buy a given stock? Are the reasons still valid? Has anything important changed? Have you gained as much as you expected to in it? These are the sorts of questions you should think over over regularly. Be prepared to sell under certain circumstances, whether you've made or lost money so far.

Basing decisions on tax concerns

You need to consider the tax consequences of your investments. Don't buy municipal bonds, for example, just because they're tax-free. Their return may not be better than the after-tax return of a higher-yielding option. Tax-free investments, like all others, must fit into your overall investment strategy.

Avoiding the stock market altogether.

All this talk of risk may make you nervous. But resist the temptation to bury your head in the sand and hide your money in the bank. You may think you are playing it safe but you're not. You're letting inflation bite your savings.  “People who have no tolerance for risk in the stock market are taking an alternative risk - a loss in purchasing power”.

Read Rich Smith on when to sell a winner and Shannon Zimmerman on when to sell a mutual fund.

Companies To Invest in 2011

The world economy has almost completely moved out of the recession. If you are an investor, this article will explain to you about the new companies to invest in 2011. This is the right time to make your move on choosing the best companies to invest in; they will be the molders of the new economy. Market speculations identify that the surging growth of world economy has caused a sudden demand for raw materials and this in turn is regarded as the reason behind the heavy price rise that hit worldwide recently.

The return from the recession has also made some new companies grow up and achieve tremendous growth in par with the accelerating economy. Finding new companies to invest in is the key to get the maximum yield out of the current world growth. Huge technology revolutions are set to hit the world market this year. Mobile service provider, cloud computing companies, construction companies and of course the oil industry is expected to get hotter to invest in 2011.

Keeping track of the performance of companies in the previous year, the top companies to invest in right now are shortlisted below:

1.      SAS

2.      Edward Jones

3.      Wegmans

4.      Google

5.      Nugget Market

6.      DreamWorks Animation

7.      NetApp

8.      Boston Consulting Group

9.      Qualcomm

10.  Camden Property Trust

Safe Ways To Invest

Unquestionably, the safest place to invest your money is in interest-bearing accounts offered by banks and credit unions. Regular savings accounts, money market accounts and certificates of deposit (CDs) are insured by the FDIC or National Credit Union Authority. Because CDs are time deposits, there is some interest rate risk. If interest rates go up after you purchase a long-term CD, you may find yourself stuck with lower-than-market earnings until the CD matures.

Diversification

One important way to reduce risk is through diversification of your portfolio. If you have investments in several securities, most will do well, even though you may lose money on an occasional bad investment. This is one of the advantages of investing in mutual stock or bond funds. These funds are large, professionally managed portfolios of securities and by their very nature provide a highly diversified investment.

Relatively Safe Stocks

 Investing in any equity security stocks does carry risk and almost always more than for bonds and savings accounts. However, there are low-risk categories of stocks that offer good returns and the chance of equity growth. Preferred stock is a special type of security that has a guaranteed dividend that must be paid before dividends on common stock shares. In addition, preferred shareholders are paid off first in the event the company liquidates. Preferred stocks thus pay good dividends and carry less risk than common stock but usually don't have as much equity growth potential.

Open a money market mutual fund

Open this account to absorb any extra income that you can eventually liquidate for a house payment or other major purchase. Money market mutual funds do not have FDIC insurance, but they invest in cash-like vehicles that carry little risk, such as treasury bills and bonds.

Conduct your own due diligence. 

 Avoid fraud, don’t rely on appearances, fancy offices, nice suits and power lunches. You’re seeing what others want you to see, and it could be a lie. You must conduct your own due diligence into professional service providers and any proposed offshore financial activity.

Don’t rely on secrecy. 

 Dealing with an offshore promoter who claims that he can help hide your money from tax authorities is an invitation to blackmail. The promoter knows that, if you break the law, you’re unlikely to ask a court to help return your assets when they disappear. The law is clear. It says that any U.S. person whether a citizen or resident alien is liable for annual income taxes on income earned anywhere in the world.

 If it’s too good to be true, it probably isn’t true. 

 Believing and consistently applying this saying is the most important precaution of all. Unrealistic profits, barely believable promises or a vague feeling that you’re being “led on” are all indications that whatever deal you’re being “pitched” is best avoided.

Top 5 Professional Networks for Women in Finance

The great thing about being a woman in a man’s world is that it brings us closer together. The glass ceiling is difficult and annoying, but women in finance are so scarce that the connections made with each other are usually strong and supportive. Here is a list of clubs some with chapters around the world, others entirely based on the web:

Women’s Bond Club
Based in: New York
One of the oldest of its kind (est. 1921), the Bond Club focuses on mentoring and education. Events range from community service to resume workshops. Their relationships with significant corporations and non-profits help support women in the field. Membership is diverse, with women holding jobs in consulting and technology, all in the area of finance.

Financial Women’s Association
Headquartered in: New York
FWA focuses on bringing accomplished women together to recognize each other’s achievements, trade information and improve one another to become the best in their fields. Past president, Kristin McDonough, says, “Seasoned FWA members say that exposure to this richer network has resulted in consulting engagements, client referrals, emerging opportunities, and the courage to leap from the corporate into both the entrepreneurial arena or not for profit administration.”

100 Women in Hedge Funds
Based in: London, but members are from all over the world
A global association of more than 10,000 women, 100 Women in Hedge Funds focuses on education progression and philanthropy.

Women on Wall Street
Based in: New York
Sponsored by Deutsche Bank, WOWS is an event rather than an organization. They host a conference in New York featuring great keynote speakers, usually top women at places like Goldman Sachs and Deutsche Bank.

City Women’s Network
Based in: London
For those of you unfamiliar with London, The City is their Wall Street equivalent. CWN states that they aim to: “provide a strong network of contacts” that generally continued growth of professional women in London.

2010 Top Women in Finance

After perusing a record number of nominations for the 2010 Top Women in Finance award, Finance & Commerce announced the 50 winners.

The list of winners for the 10th-annual awards, presented below, is impressive.

It includes principals, partners, executive vice presidents, CFOs, CEOs and managing directors at not only financial institutions and lenders but also businesses small and large throughout Minnesota.

And this year, for the first time, F&C has chosen nine women as honorees for the second time; these nine have entered the Top Women in Finance award program’s new “Circle of Excellence.”

They are (with the years they first won):

Regina Barr, founder/CEO, Red Ladder Inc. (2008)

Jeanne Crain, executive vice president, M&I Marshall & Ilsley Bank (2007)

Mary Gabler, Central Region community development manager, Wells Fargo Bank (2007)

Diana Garvis Purcel, chief financial officer, Famous Dave’s of America Inc. (2005)

Robyn Hansen, attorney and shareholder, Leonard, Street and Deinard (2007)

Nicole Middendorf, president and LPL financial adviser, Strategic Financial Inc. (2007)

Julie Tanaka, principal, Compendium Business Strategies (2006)

Mary Tjosvold, CEO, Mary T. Inc. (2005) and,

Mary Twinem, chief financial officer, Buffalo Wild Wings Inc. (2004).

Also on the list are four women who founded their own companies, a stringent test of financial will and skill.

Does Money Make One Happy?

 Money is kind of weird sometimes, it does get you what you want and other times, it does not help at all. But how much money will truly make one happy? Turns out a crew of researchers has actually figured that number out.

A new study shows the further a person’s salary falls below 75,000 a year, the more unhappy they are. That puts most women behind the 8-ball. The median income for women with a bachelor’s degree runs less than $40,000 bucks per year. Men at the same level make nearly $60,000 a year.

Money can equate with -- for some people -- with power, with security. Experts say women can boost pay even in this economy. The top tip: justify a pay raise by showing-off your accomplishments. Second: work smart -- those who impact the bottom line get the biggest bonuses. And lastly: know the "going rate" for your position. Researchers say making less money makes people feel more helpless, especially in terms of health and relationships. While the U.S. ranks 5th amongst 151 nations in terms of happiness of residents -- it also ranks 5th in overall stress level, too.

So does money really make you happy?

Fulfillment, pride in achievements and work is what makes Forbes list members happy. Not their money. Their money is a means to an end rather than the end in itself. And it gives you additional perks too. For example:

·         Additional status and respect - people look up to you.

·         More control - you can avoid or delegate unpleasant tasks. 

·         Increased fun - like shopping, travelling and other leisure pursuits. 

·         Special moments - especially with others. 

·         Unique opportunities. If you're wealthy you can help others and achieve amazing things. Like Bill Gates, Warren Buffet and James Martin.

And here are some of the things that can actively detract from one’s happiness in relation to money:

·         Aspirations that don't match your means.

·         Perceptions about wealth which are untrue in relation to your real situation. For example thoughts like ‘I don't have enough money' when you do.

·          Materialism - expecting extrinsic things like status, possessions or money to boost short term happiness rather than intrinsic things like purpose which builds happiness long term.

In short having money and using it to buy experiences boosts happiness while wanting stuff detracts from it.

Who disagrees that house prices will continue to fall?

Buyer's agents disagree, because they get nothing if there is no sale. Agents get paid only if their clients buy, no matter how bad the deal is, which is the exact opposite of the buyer's best interest. Agents take $100 billion each year in commissions from buyers. Agents claim the seller pays the commission, but always fail to mention that the seller gets that money from the buyer. Think about it: who brings the money to the table - the seller or the buyer? All money comes from buyers. No buyer, no money. Real estate in America is all about deception. There is no free market because bids on houses are never published and bids are often faked to get you to think you have to pay more.

Mortgage brokers disagree, because they take a percentage of the loan. They want buyers to take out the biggest loan possible to maximize their commission. Even worse - mortgage brokers get paid according to how bad the deal is for the buyer. The worse the deal is (higher interest rate, points, fees, etc) the more the mortgage broker gets!

Government agencies like Fannie, Freddie, and the FHA disagree, because their own existence (read "executive salaries") depends on guaranteeing private loans with public money. These agencies are perhaps the largest scam ever devised. Most people will borrow as much as they possibly can to buy a house. The existence of Fannie and Freddie just make it possible to borrow yet more money by pushing lending risk onto taxpayers, benefitting bankers with larger interest payments, and harming buyers with higher housing costs. Ironically, Fannie and Freddie drive up the cost of housing in the name of "affordability". The public is unlikely to ever understand this. The perfect crime.

Banks disagree, at least when they can get origination fees and then sell the mortgage, because in that case they do not care about the bankruptcy of borrowers. Banks sold most loans to the government agencies Fannie Mae or Freddie Mac, and now use the FHA the same way. The conversion of low-quality housing debt into "high" quality government debt was the main support for the housing bubble. Fannie and Freddie already imploded, and the FHA is now on the edge. The other way for banks to dump the risk of loan default has been the Wall Street market for private mortgage-backed securities. When mass foreclosures eliminated the loan-resale market, the Federal Reserve bought private mortgage-backed bonds in huge quantities, using newly printed cash. The Federal Reserve is nothing short of a criminal conspiracy to protect the banker class at the expense of the rest of us.

Appraisers disagree, because they are paid by mortgage brokers and banks, so they are going to give the appraisals that mortgage brokers and banks want to see, not the truth. Appraisers that kill a deal by telling the truth do not get called back to do other appraisals.

Newspapers disagree, because they earn money from advertising placed by realtors, lenders, and mortgage brokers. Papers are pressured by that money to publish the real estate industry's unrealistic forecasts. Worse, realtors have a near-monopoly on sale price information, and newspaper reporters never ask realtors hard questions like "how do we know you're not lying about those prices?" The result is an endless stream of stories reporting that the National Association of Realtors (NAR) says it's a good time to buy. Asking the NAR about housing is like walking into a used car dealership and asking the salesman if today would be a good day to buy a car.

The Federal Government disagrees, because everyone in Congress gets campaign bribes (oops -- I meant campaign donations) from the NAR and from the banks. So every Federal law will be aimed squarely at increasing commissions for the NAR and increasing interest payments to banks. Buyers lose, because they have no lobbyists in DC. The very laws of our country have been corrupted to squeeze more profits out of you.

Current owners disagree, because they do not want to believe they are going to lose huge amount s of money. Anyone who owns is likely to encourage you to buy too, to prop up their own house value via comps, and so that they can feel that they are not alone in their sinking boat.

Source: Patrick.net