Maintain your old Siemens Hipath system

Creating a Financial Future--Putting Your Plan Into Action Part 2

Real Estate can be a useful tool for investing. The simplest real estate investment is not truly an investment, but a cost-reduction ? that is owning your own home. Buying rather than renting allows one to put residential costs toward assets rather than into someone else's pocket. However, if interest is high, the amount you pay to borrow money could make the deal less attractive. Today, with interest rates at an all-time low, it is difficult to imagine many cases where renting is more attractive than purchasing. Income Real Estate is also viable for some. This would include owning small apartment buildings, storage facilities, or shopping centers. This does, however, involve time commitments, just like running any other business, but the income levels can be very positive if you have selected your property carefully.

Bonds represent money loaned to companies or governments at interest. This is a fairly secure way to make money, as long as you loan to secure companies or governments. However a K-Mart bond, or a Government of Zimbabwe bond would obviously not be a wise choice today. Bond-rating institutions like of severe recession or depression and falling interest rates. However, when interest rates are rising, older bonds issued at lower interest rates can actually lose value precipitiously. Thus, in this age of fast-moving interest rates, bond prices tend to fluctuate much more widely than in the past, and their reputation as a perfect investment for widows and orphans is not longer viable. While they may be useful as part of a broad plan, bonds themselves are sterile. By this I mean that they don't grow. If a growing portfolio is important to you, bonds may not be useful. As with any other investment type, one must consider the broad implications.

Stocks represent ownership interests in businesses. As with investing in personal businesses, one owns the actual company. However, stocks avoid some of the problems of investing in smaller businesses. Liquidity is not a significant problem here, since one can sell shares whenever necessary. Moreover, one needn't worry about making a part-time commitment to running the company, as corporate management is already in place. However, one must always monitor management to be sure they are working in the best interests of shareholders. Normally, one can depend upon the media and help in this monitoring process, but even this method fails occasionally. Still, despite this problem, stocks are often the ideal investment for most people.

Mutual Funds are simply baskets of stocks, bonds, or other investments, held jointly with other fund shareholders. They help small investors diversify their holdings. (Diversification vs. Concentration ? one can either choose to spread their money among a broad variety of investments or concentrate in one or two. Generally concentration is much more risky.)

Derivatives make up a broad category of vehicles that are 'derived' from other investments. This may include options, futures, or swaps. Options, for example, are considered derivatives because they are based upon the performance of a company stock. If the stock goes up, or down, the option may be worth more or less. Derivatives are sometimes useful for larger account management, but generally provide a more intense outcome. Thus if shares of a company go up a small amount, an option may go up a lot, and vice versa. This use of leverage can make derivatives riskier, and generally not appropriate for small investors.

In much the same way, using debt for investing, such as margin buying, also increases leverage, and therefore increases intensity and risk. We recommend avoiding borrowing for investment purposes except in extreme cases, as the risk makes this option stressful for many.

The choice of assets is only part of the battle. Most importantly, one must select whether to invest for income, growth, or incrementalism.

To reach Scott Pearson for comments or to learn more about his Investment Advisor services, visit

Scott Pearson is an investment advisor, writer, editor, instructor, and business leader. As President and Chief Investment Officer of Value View Financial Corp., he offers investment management services to a wide variety of clients. His own newsletter, Investor's Value View, is distributed worldwide and provides general money tips and investment advice to readers both internationally, and in the U.S.

In The News:

'Now my entire family is infected': What it is like to have COVID-19
Mon, 24 Feb 2020 12:46:00 +0000
A beautician who contracted COVID-19 while running a team delivering essential supplies to struggling hospitals in Wuhan has spoken to Sky News about what it is like to have the virus.

'Mike has a certain talent for this': Trump picks Pence to run coronavirus response
Thu, 27 Feb 2020 03:10:00 +0000
Donald Trump has appointed his vice president Mike Pence to lead the US response to the coronavirus.

CDC: Which facial hair styles are best for preventing coronavirus spread?
Thu, 27 Feb 2020 00:14:00 +0000
Side whiskers and handlebar moustaches are in but long stubble and beards are out.

Coronavirus outbreak spreads to every continent bar Antarctica
Wed, 26 Feb 2020 11:05:00 +0000
The first case of the coronavirus has been confirmed in South America as the outbreak continues to spread around the world.

Man jailed after pushing wheelchair-bound wife into pond to drown her
Thu, 27 Feb 2020 02:18:00 +0000
A man has been jailed for life for killing his wife after pushing her into a pond while she was in her wheelchair.

Erfahrungen mit Pallhuber Wein
Agen Bola SBOBET Terpercaya

Travel in comfort and at your leisure with CT Airlink Limousine & Car Service for top quality private transportation and exceptional customer service. We operate Sedans, SUVs & Vans for CT Car Services to covering all Connecticut airports including Car Service from CT to Newark Airport , Mohegan Casino Uncasville CT, Foxwoods Casino Mashantucket CT, Manhattan Cruise Terminal NYC, Brooklyn Cruise Terminal NYC and Bayonne Cruise Terminal NJ. CT Airlink hire licensed and friendly chauffeurs who have in-depth knowledge of the Areas.

Use of a Franchise Business as a Family Tax Planning Strategy

Suggesting the use of a franchise business as a vehicle... Read More

Forex market offers opportunity and information

The forex market is what is called an international exchange... Read More

High Volatility Investments

Penny stocks and options are high volatility investments that attract... Read More

Going Against the Conventional Investment Wisdom

First of all, I want to give everyone the disclaimer... Read More

Delist My Corporation Please

It use to be said that once a company was... Read More

Investing 101: Risk Terminology - BETA

About thirty years ago, statisticians armed with all of their... Read More

Investing & Online Stock & Share Trading- The Stock & Share Markets are Booming But Be Warned

I had the pleasure of being invited on a friend's... Read More

Will a Falling Dollar Derail Your Plans for Retirement?

How much are you willing to pay for a tank... Read More

Annuity Investment Guide

While there is not a lack of information on annuities,... Read More

Commodities - The Next Big Wave of Fortune Building

Have you often wished you could have got in on... Read More

Eight Questions to Ask Your Financial Advisor

You may like your financial advisor, but is he really... Read More


Has your broker ever told you that a stock is... Read More

How Do I Start Investing Online and What Are Some Basic Tips?

If you are new to investing online, don't put your... Read More

Consolidation Period

The economic data reported Fri showed continued above trend growth... Read More

Have You Ever Seen A Map of the World Turned Upside Down?

For those accustomed to viewing things a certain way, it... Read More

How to Use Annual Report

There are many steps in calculating the fair value of... Read More

Investing Online Has Its Rewards: Find Out How To Take Advantage Of Them

Computerized investing. Online investing. Have you taken the next step... Read More

Invest To Make Money, Not To Get Rich

The technology boom of the '90s romanticized the "rags-to-riches" ideal... Read More

Trading Tips No 3: Online Trading and Investing: Buy, Hold, and Hope

So you have learned how to trade the markets by... Read More

An Economical Retirement Investment Plan

The practice of economy, directed toward a retirement investment plan... Read More

Remembering TEOTWAWKI and Learning from It

Its only been about 5 years since we had major... Read More

Can Using Sales Leaseback Method of Investment Property Acquisition Reduce Risk?

Sales Leaseback compared to traditional property investmentCan a Sales Leaseback... Read More

Understanding The Real Rate of Return!

There is one indicator more than any other which determines... Read More

Investing Offshore for Retirement

As an expatriate you are in a privileged savings and... Read More

How to Invest Your Money

Think carefully on how to invest your money because if... Read More