Posts Tagged ‘investment options’

Perhaps you study the newspapers, or even take the Wall Street Journal, and consider that your investment education is up to a good standard. However, there are many facets to your investment, and you need to be sure that the way you run your finances suits your risk tolerance, and allows you to meet your expectations.

For instance, while you are familiar with mutual funds you may not know so much about hedge funds. In fact, unless you are wealthy, you may not even qualify to invest in a hedge fund. The Securities and Exchange Commission, which in the main does not regulate hedge funds to anything like the same extent as mutual funds, requires that investors have a certain net worth or annual income before they can invest in a hedge fund, this qualification supposedly implying that the investor is in some way more knowledgeable or sophisticated.

If you do not qualify, why would this be of interest you? That’s because increasingly there are investment options available to you which emulate some aspects of hedge funds. You can buy certain mutual funds which are readily purchased, that have some of the attributes of hedge funds.

For instance, some hedge funds seek to achieve greater returns by leveraging the investment using derivatives and sometimes borrowing money to increase the stake. You can find mutual funds which also use derivatives to leverage your investment. Note that this is not necessarily a recommended investment, as it does increase the riskiness. You may not consider these types of investment strategies suitable for your retirement planning.

However, if you know how hedge funds aim to increase their returns, you may be able to use some of the techniques in your own investments. The advantage of this do-it-yourself approach is that you will not have to pay the high fees, such as 20% on the profits, which seem to be the normal charges when investing in a hedge fund. The better educated you are on your investment choices the more likely you are to achieve your goals.

Ken Himmler (www.kenhimmler.com) is an investment advisor who can discuss many different financial plans with you. If you go to the Integrated Asset Management website (www.iamllc.biz), you will get an idea of the range of securities and financial vehicles that are available.

Authored by Kenneth Himmler, Sr.

The recession hasn’t exactly been a keen investor’s best friend. 

With the Fed introducing legislation based on quantitative easing (which means that interest rates will plummet to historic lows) and the markets performing shaky at best, many of the savviest investors are opting to pull out their money before incurring any more losses.  However, it’s important to note that even in the current economic climate, smart investments can still be made with less risk involved.  The key to protecting your hard-earned money while earning a tidy profit is not how much you invest; rather, it’s where you put your money in the first place.  Consider these alternative investment options to keep your money right where it belongs – in your pocket!

Indexed CDs have become increasingly attractive to savvy investors over the years, and it’s not because it offers protection against principal loss; indexed CDs are one of the most effective investment options in the face of inflation, which the Fed predicts will drastically increase over the next decade.  Lock in your interest rate now and ensure that your CD lasts for no longer than five years, as the recovering economy will do a long-term locked-in CD more harm than good.  Financial experts typically recommend locking your money in an indexed CD for no longer than eighteen months.  Before investing, be sure to research which CDs offer the best rates over an eighteen-month period; a great resource can be found at www.bargaineering.com. 

If an indexed CD isn’t your cup of tea, then try the indexed annuity out for size.  Once the bane of investment advisors everywhere, indexed annuities are quickly becoming one of the preferred investment options for baby boomers reaching retirement.  An indexed annuity is simply a contract with an insurance company that guarantees a minimum interest payment; an additional benefit is that your indexed annuity (which is linked to the stock market) can generate even more cash flow if your stocks do well.  Indexed annuities offer a great investment opportunity for those looking to protect their money while dabbling in the unstable world of Wall Street.

Like with many investment schemes, however, make sure you understand the minute details before leaping into indexed annuities.  Don’t lock your money in one for more than ten years, as you run the risk of making little more than the interest rate, even with inflation.  Be sure that your insurer will honor the promoted interest rate for the entire length of the annuity, as many insurance companies fail to advertise which interest rates are permanent and which are merely promotional.  Be sure to involve your investment advisor in any considerations regarding indexed annuities, as he or she can point out esoteric details that may have first escaped your notice.

Not all investments retain an all-or-nothing mentality; in fact, you’ll find that many investments are tried-and-true methods for generating a tidy sum of money that can go towards retirement.  These alternative investments will go a long way towards protecting your money while still generating a surprising amount of cash flow straight into your savings.

Authored by Kenneth Himmler, Sr.

It’s something that every baby boomer has dreamed of at some point – the early retirement.  Those dreams of a Florida retirement, or days spent traveling the world with a loved one is an awfully tempting thought, but many of us brush off the notion of an early retirement simply because we don’t think we’ve saved enough.  Yet if that little voice is still nagging in the back of your head to take your retirement savings and run, here are important factors that will help you to decide if you’re ready for an early retirement:

You’re Near Your Retirement Goals.  If you’ve done your homework, you know exactly what your retirement age is, and what you need to save once you’ve reached that age.  However, don’t wait until your 65^th birthday to assess if you’re ready for retirement.  Book a meeting with your investment advisor and assess exactly where you are in your retirement planning.  If you’re near your goal, your advisor may be able to adjust your investment options to make up for an early retirement.

This is undoubtedly the most important factor in determining if you’re ready for an early retirement – if your savings and investments are nowhere near close to being ready to support you, don’t even think about it!

You Have A Strong Portfolio.  With the recession in full swing, who can really say that they have a strong portfolio full of safe investments?  Yet if you’ve met your retirement goals and have a strong portfolio (think half invested in stocks and the other half in safe investments like CDs, bonds, etc.) then your investments will likely be a steady income stream later in your retirement.

You’re Mentally And Emotionally Ready.  If your finances are in order, you may be itching to give that retirement speech right away – however, before you jump the gun, consider the emotional and mental consequences of an early retirement.  You might find that you’re not stimulated without your career, or your friends and loved ones are too busy with their own jobs.  Assess what an early retirement means to you; it could be overwhelmingly fulfilling or just might cause you to pull out your hair in boredom!

For more information on smart retirement planning, visit www.kenhimmler.com, the IRA and 401K experts!

Authored by Kenneth Himmler, Sr.

I mentioned last time the need to organize your assets in ways that protect and preserve all that you have worked so hard for. I am not concerned so much this time about your investment options and how to find the best investments for maximum growth and safety, but with the way in which you hold them during your life, and how they may be passed on to your heirs.

There are several facets to consider. For instance, in this litigious society, you will want to make sure that a lawsuit will not separate you from your accounts and/or home and real estate investment. In some countries, the legal system discourages frivolous law suits by requiring the losing party to pay all fees, but in the USA unless you specifically take action you will not find your legal costs are covered even when you win. You will also want to be sure that you have a tax efficient investment plan to minimize your outgoings to the IRS.

Aside from opportunist attacks on your estate, you may also find that you are on the receiving end of a justifiable claim, for instance if you are involved in a fatal motor accident. If your insurance does not cover the full amount claimed, then your assets may be seized. With a major claim, it is not unknown for insurance to fall short of the amount required, and it should never be relied upon to cover all situations.

There are several different options that are claimed to cover your liabilities and protect your possessions. The fact is that asset protection is an evolving practice, and what may have been regarded as the best advice five years ago may fall short nowadays. It is essential to talk to an advisor who can give investment advice and has an appreciation of all the factors that need to be born in mind, such as Ken Himmler at www.KenHimmler.com.

It is not always necessary to use offshore accounts or foreign trusts, but they have their place, just as domestic trusts, corporations and limited partnerships do, in your investment strategy. One tactic of asset protection is to effectively relinquish control of your assets, so that you cannot be commanded by a court to surrender them, whilst retaining the benefits of their use. The experts at www.IAMLLC.biz, Integrated Asset Management, will discuss with you the choices you can make.

Authored by Ken Himmler, Sr.