Variable Annuity Comparison » Tips

45 Tips to Protecting Your Money During & After an Economic Crisis

Editor — Mon, 02 Nov 2009 18:14:31 +0000

The current economic crisis is making everyone think about how to protect their money and the financial security of their family. Here are 45 tips to protect your money during and after an economic crisis. These tips have been taken from Surviving the Debt Crisis.

If you wish to achieve real wealth, focus on acquiring assets that are valued by other people. Concentrate on allocating you money across different types of assets, including some whose value might rise where others that you have face a fall in their value.

Decide whether you might be better off making extra mortgage payments or putting that money into investments.

Be careful with investments; do not fall for flattery or let yourself be convinced by claims that their past performance is necessarily a true indicator of future prospects.

If you get plenty of money, it is advisable that you invest the entire amount at once and not with intervals between. Diversify your investments as suggested in Point 1.

Making big investments just to avoid taxes is a decision that requires careful consideration and access to premium, probably high-cost professional advice.

If you plan to studying in college, compare the college saving plans to find those which give you the best options.

Coins are “little savings”, so do not spend them. Try saving coins and use the paper currency; you will see that you have effortlessly saved more by the end of the month.

Buy a house only when you are willing to move into it immediately and live for at least a minimum of five years.

Instead of hiring young members of your own family or giving them a portion of your money when they are young, place your inheritance into a trust until your minors are sensible enough to handle the money.

Supermarket coupons can be a great help, provided you know the right way of using them.

Do not run after high returns without considering that ‘A great reward may have a greater risk’.

Have you noticed people who buy lottery tickets each day? Buying more tickets does not significantly increase your chance of a major prize but inflates your risky investment significantly.

Both parents working may seem to be necessary at the moment, but you may not think so if you calculate the extra expenses involved such as lunch, commuting, wardrobe, childcare, etc.

Be careful which pension plan you opt for. Check that the agent is not selling you insurance instead of a pension.

Check out your life insurance policy and whether it is a good investment. Remember, an insurance policy is to protect you and not just for the company and their agent to profit from you.

Maintaining your investments through all cycles is the key to being invested in the right time. This may make your success rate higher rather than investing and then withdrawing from time to time because of the fees and other costs at each change.

Avoid using a credit card as much as possible, because you end up spending extra with it. Instead, you can go for a charge card, which makes you pay what you spend each month.

When you plan to buy a home, go for a buyer-broker. Realtors are the ones who represent the seller, unless you are hiring a buyer-broker who is the one who represents you.

Investing the same amount regularly is said to be the best way of using dollar cost averaging.

Instead of a fifteen-year mortgage plan, go for a thirty-year mortgage if the longer mortgage means lower monthly payments and a higher tax deduction.

Consider applying for a systematic withdrawal plan rather than applying for bonds if this will provide a steady flow of income even after your retirement.

Check that your bank accounts are insured federally. The FDIC, or the Federal Deposit Insurance Corporation protects deposits up to around two hundred fifty thousand dollars per person. If you have, more than the secured amount, you may spread it through various banks.

If you want annuities, consider sticking to the variable and not the fixed type. A fixed annuity has a fixed return but a variable annuity gives you a chance to earn the full return.

Grandparents often plan college funds for their grandchildren but, I believe that this requires very careful thought beforehand.

Do not purchase a mutual fund just because it is highly rated. Different funds, even a mutual fund that has just a single star may do exceptionally well in certain periods.

The money that you may need in the next two years must be cash or fairly easy to convert to cash. The stock market is not a place to store the money that you might need immediately.

You can invest globally, not just in the U.S.A. exchanges.

Keep a careful eye on your family budget; try to reduce your expenses, curtail your restaurant meals and other un-necessary expenses that may cause a future burden.

When you want financial advice, only accept it from a registered investment advisor. A stockbroker is not the right person to advise you on your general finances.

Write a check for yourself and save it first. This is an efficient, almost painless, way of saving.

Do not include your child’s name is investments or bank accounts; this may mean that your other children might be disinherited and might cause tax problems.

When you sell a home, go to a qualified realtor and get referrals from people you trust.

Do not buy real estate investments with borrowed funds.

Stopping your PMI when you have around 20% of the equity on your home left might save many hundreds of dollars.

Buying mortgage life insurance should be considered carefully. Separate insurance might be a better option.

If you contribute to a nondeductible IRA account is not a great idea, maintain a proper record or you may suffer serious losses.

If you are 62 years of age now, you may be able to take a social security instead of waiting until you are 65.

Money handling processes have changed, so do not stick to how your parents handled their money.

While getting a pension, consider choosing a lump sum option where you can take control of your money and your future.

While leasing the car, consider not paying for the cap cost reduction and perhaps get gap insurance instead.

Saving money in your child’s name may not be a good idea. You will have to part with the money once your child turns 18 or 21.

Instead of saving for your children’s college costs, consider starting to save for your own retirement first.

Investing in a QTIP trust might be a good way of protecting your kids and spouse.

Consider taking a policy that provides five or six years benefits instead of investing in long-term care insurance.

Do not panic or worry; this will take you nowhere. It is not necessary that you take in all the gloom that the media throw at you.

Learn how to better protect you and your family in the current crisis, with this informative and easy to understand e-guide to Surviving the Debt Crisis.

45 Tips to Protecting Your Money During & After an Economic Crisis

Editor — Sun, 01 Nov 2009 15:13:34 +0000

If you wish to achieve real wealth, focus on acquiring assets that are valued by other people. Concentrate on allocating you money across different types of assets, including some whose value might rise where others that you have face a fall in their value.

Decide whether you might be better off making extra mortgage payments or putting that money into investments.

Be careful with investments; do not fall for flattery or let yourself be convinced by claims that their past performance is necessarily a true indicator of future prospects.

If you get plenty of money, it is advisable that you invest the entire amount at once and not with intervals between. Diversify your investments as suggested in Point 1.

Making big investments just to avoid taxes is a decision that requires careful consideration and access to premium, probably high-cost professional advice.

If you plan to studying in college, compare the college saving plans to find those which give you the best options.

Coins are “little savings”, so do not spend them. Try saving coins and use the paper currency; you will see that you have effortlessly saved more by the end of the month.

Buy a house only when you are willing to move into it immediately and live for at least a minimum of five years.

Instead of hiring young members of your own family or giving them a portion of your money when they are young, place your inheritance into a trust until your minors are sensible enough to handle the money.

Supermarket coupons can be a great help, provided you know the right way of using them.

Do not run after high returns without considering that ‘A great reward may have a greater risk’.

Have you noticed people who buy lottery tickets each day? Buying more tickets does not significantly increase your chance of a major prize but inflates your risky investment significantly.

Both parents working may seem to be necessary at the moment, but you may not think so if you calculate the extra expenses involved such as lunch, commuting, wardrobe, childcare, etc.

Be careful which pension plan you opt for. Check that the agent is not selling you insurance instead of a pension.

Check out your life insurance policy and whether it is a good investment. Remember, an insurance policy is to protect you and not just for the company and their agent to profit from you.

Maintaining your investments through all cycles is the key to being invested in the right time. This may make your success rate higher rather than investing and then withdrawing from time to time because of the fees and other costs at each change.

Avoid using a credit card as much as possible, because you end up spending extra with it. Instead, you can go for a charge card, which makes you pay what you spend each month.

When you plan to buy a home, go for a buyer-broker. Realtors are the ones who represent the seller, unless you are hiring a buyer-broker who is the one who represents you.

Investing the same amount regularly is said to be the best way of using dollar cost averaging.

Instead of a fifteen-year mortgage plan, go for a thirty-year mortgage if the longer mortgage means lower monthly payments and a higher tax deduction.

Consider applying for a systematic withdrawal plan rather than applying for bonds if this will provide a steady flow of income even after your retirement.

Check that your bank accounts are insured federally. The FDIC, or the Federal Deposit Insurance Corporation protects deposits up to around two hundred fifty thousand dollars per person. If you have, more than the secured amount, you may spread it through various banks.

If you want annuities, consider sticking to the variable and not the fixed type. A fixed annuity has a fixed return but a variable annuity gives you a chance to earn the full return.

Grandparents often plan college funds for their grandchildren but, I believe that this requires very careful thought beforehand.

Do not purchase a mutual fund just because it is highly rated. Different funds, even a mutual fund that has just a single star may do exceptionally well in certain periods.

The money that you may need in the next two years must be cash or fairly easy to convert to cash. The stock market is not a place to store the money that you might need immediately.

You can invest globally, not just in the U.S.A. exchanges.

Keep a careful eye on your family budget; try to reduce your expenses, curtail your restaurant meals and other un-necessary expenses that may cause a future burden.

When you want financial advice, only accept it from a registered investment advisor. A stockbroker is not the right person to advise you on your general finances.

Write a check for yourself and save it first. This is an efficient, almost painless, way of saving.

Do not include your child’s name is investments or bank accounts; this may mean that your other children might be disinherited and might cause tax problems.

When you sell a home, go to a qualified realtor and get referrals from people you trust.

Do not buy real estate investments with borrowed funds.

Stopping your PMI when you have around 20% of the equity on your home left might save many hundreds of dollars.

Buying mortgage life insurance should be considered carefully. Separate insurance might be a better option.

If you contribute to a nondeductible IRA account is not a great idea, maintain a proper record or you may suffer serious losses.

If you are 62 years of age now, you may be able to take a social security instead of waiting until you are 65.

Money handling processes have changed, so do not stick to how your parents handled their money.

While getting a pension, consider choosing a lump sum option where you can take control of your money and your future.

While leasing the car, consider not paying for the cap cost reduction and perhaps get gap insurance instead.

Saving money in your child’s name may not be a good idea. You will have to part with the money once your child turns 18 or 21.

Instead of saving for your children’s college costs, consider starting to save for your own retirement first.

Investing in a QTIP trust might be a good way of protecting your kids and spouse.

Consider taking a policy that provides five or six years benefits instead of investing in long-term care insurance.

Do not panic or worry; this will take you nowhere. It is not necessary that you take in all the gloom that the media throw at you.

Learn how to better protect you and your family in the current crisis, with this informative and easy to understand e-guide to Surviving the Debt Crisis.

45 Tips to Protecting Your Money During & After an Economic Crisis

Editor — Sat, 26 Sep 2009 04:22:57 +0000

If you wish to achieve real wealth, focus on acquiring assets that are valued by other people. Concentrate on allocating you money across different types of assets, including some whose value might rise where others that you have face a fall in their value.

Decide whether you might be better off making extra mortgage payments or putting that money into investments.

Be careful with investments; do not fall for flattery or let yourself be convinced by claims that their past performance is necessarily a true indicator of future prospects.

If you get plenty of money, it is advisable that you invest the entire amount at once and not with intervals between. Diversify your investments as suggested in Point 1.

Making big investments just to avoid taxes is a decision that requires careful consideration and access to premium, probably high-cost professional advice.

If you plan to studying in college, compare the college saving plans to find those which give you the best options.

Coins are “little savings”, so do not spend them. Try saving coins and use the paper currency; you will see that you have effortlessly saved more by the end of the month.

Buy a house only when you are willing to move into it immediately and live for at least a minimum of five years.

Instead of hiring young members of your own family or giving them a portion of your money when they are young, place your inheritance into a trust until your minors are sensible enough to handle the money.

Supermarket coupons can be a great help, provided you know the right way of using them.

Do not run after high returns without considering that ‘A great reward may have a greater risk’.

Have you noticed people who buy lottery tickets each day? Buying more tickets does not significantly increase your chance of a major prize but inflates your risky investment significantly.

Both parents working may seem to be necessary at the moment, but you may not think so if you calculate the extra expenses involved such as lunch, commuting, wardrobe, childcare, etc.

Be careful which pension plan you opt for. Check that the agent is not selling you insurance instead of a pension.

Check out your life insurance policy and whether it is a good investment. Remember, an insurance policy is to protect you and not just for the company and their agent to profit from you.

Maintaining your investments through all cycles is the key to being invested in the right time. This may make your success rate higher rather than investing and then withdrawing from time to time because of the fees and other costs at each change.

Avoid using a credit card as much as possible, because you end up spending extra with it. Instead, you can go for a charge card, which makes you pay what you spend each month.

When you plan to buy a home, go for a buyer-broker. Realtors are the ones who represent the seller, unless you are hiring a buyer-broker who is the one who represents you.

Investing the same amount regularly is said to be the best way of using dollar cost averaging.

Instead of a fifteen-year mortgage plan, go for a thirty-year mortgage if the longer mortgage means lower monthly payments and a higher tax deduction.

Consider applying for a systematic withdrawal plan rather than applying for bonds if this will provide a steady flow of income even after your retirement.

Check that your bank accounts are insured federally. The FDIC, or the Federal Deposit Insurance Corporation protects deposits up to around two hundred fifty thousand dollars per person. If you have, more than the secured amount, you may spread it through various banks.

If you want annuities, consider sticking to the variable and not the fixed type. A fixed annuity has a fixed return but a variable annuity gives you a chance to earn the full return.

Grandparents often plan college funds for their grandchildren but, I believe that this requires very careful thought beforehand.

Do not purchase a mutual fund just because it is highly rated. Different funds, even a mutual fund that has just a single star may do exceptionally well in certain periods.

The money that you may need in the next two years must be cash or fairly easy to convert to cash. The stock market is not a place to store the money that you might need immediately.

You can invest globally, not just in the U.S.A. exchanges.

Keep a careful eye on your family budget; try to reduce your expenses, curtail your restaurant meals and other un-necessary expenses that may cause a future burden.

When you want financial advice, only accept it from a registered investment advisor. A stockbroker is not the right person to advise you on your general finances.

Write a check for yourself and save it first. This is an efficient, almost painless, way of saving.

Do not include your child’s name is investments or bank accounts; this may mean that your other children might be disinherited and might cause tax problems.

When you sell a home, go to a qualified realtor and get referrals from people you trust.

Do not buy real estate investments with borrowed funds.

Stopping your PMI when you have around 20% of the equity on your home left might save many hundreds of dollars.

Buying mortgage life insurance should be considered carefully. Separate insurance might be a better option.

If you contribute to a nondeductible IRA account is not a great idea, maintain a proper record or you may suffer serious losses.

If you are 62 years of age now, you may be able to take a social security instead of waiting until you are 65.

Money handling processes have changed, so do not stick to how your parents handled their money.

While getting a pension, consider choosing a lump sum option where you can take control of your money and your future.

While leasing the car, consider not paying for the cap cost reduction and perhaps get gap insurance instead.

Saving money in your child’s name may not be a good idea. You will have to part with the money once your child turns 18 or 21.

Instead of saving for your children’s college costs, consider starting to save for your own retirement first.

Investing in a QTIP trust might be a good way of protecting your kids and spouse.

Consider taking a policy that provides five or six years benefits instead of investing in long-term care insurance.

Do not panic or worry; this will take you nowhere. It is not necessary that you take in all the gloom that the media throw at you.

Learn how to better protect you and your family in the current crisis, with this informative and easy to understand e-guide to Surviving the Debt Crisis.

What’s in a Name? Tips on Avoiding Probate

Editor — Wed, 23 Sep 2009 21:31:53 +0000

Most of us remember when Elvis Presley, “The King:, died in 1977. At that time his estate was worth an estimated 10 million dollars. Unfortunately, due to probate fees, legal fees, and estate taxes the amount was reduced to a paltry $3 minnion. This could have been avoided with the use of proper estate planning tools.

Probate is the legal process in which a court oversees the distribution of property left in a will. In the event that an estate must go through the probate process, the named executor of the will represent the deceased person in order to receive a legal document called letters testamentary, allowing them to pay any outstanding debts and funeral expenses, file necessary tax returns, and transfer the titile, or name, on the accounts to their respective beneficiaries. This process can be intimidating and expensive. By reorganizing your assets, you can help avoid probate for your heirs.

If you are single, it is likely that your bank and investment accounts are titled only in your name. Upon your death, your assets will be distributed through probate. Joint tenancy, which is most popular among married couples, allows two people to have equal ownership of their accounts. Upon the death of one person, the remaining person becomes the sole owner of the accounts. Upon the death of the second person, the estate will then be distributed through probate.

If you are passing your assets directly to certain people immediately upon your death, the easiest way to avoid the pitfalls of probate and the expense of an attorney is to directly name a beneficiary on the account. Individual and corporate retirement plans (individual retirement accounts (IRA’s), 401k’s, 403b’s, etc), fixed and variable annuities, and life insurance policies are examples of accounts that include a beneficiary designation form. Typically you are allowed to list as many beneficiaries as you wish with the percentage of the account allotted to them.

However, accounts that do not fall into the above categories require a different tactic. This approach is to use a Payable On Death (POD), Transfer On Death(TOD), or In Trust For(ITF) designation in the title of the assets. An example would be titling a mutual fund account as “John Doe and Mary Doe, POD Jane Doe. Upon the proof of death of John and Mary, the account will be transfered to Jane. At that time, Jane shoudl re-title teh account to name her own beneficiaries.

Elvis Presley’s estate could have avoided much of the estate taxes had a little planning been done ahead of time. Another method of avoiding probate that could have been used in this case is the use of revocable or irrevocable trusts. By having the proper trust drawn up by a legal advisor, your assets can be re-titled to the name of the trust. The assets and property are then owned by the trust that do not have to pass through the probate court and go directly to the beneficiaries, relatively quickly.

Another option is to give yoru assets away to your heirs while you are living. As of 2008, you can make a tax-free gift of $12,000 per person to as many people as you want. Thsi amount is expected to increase in the future. By gifting money to your loved ones while you are alive, you reduce the amount of assets that would normally pass through probate upon your death.

To properly plan your estate, you should use the help of an estate planning attorney and a competent financial advisor. Transferring property of any significant value could have tax ramifications (estate, gift, or capital gains) that an advisor can make you aware of. Creating the necessary documents and determining the best way to title your assets, requires the best advice now, and regularly monitored updates of your beneficiaries, to avoid unwanted inheritances. Even if you’re able to protect all of your assets from probate, you may still need a will to address matters that may not be covered by other legal devices, such as naming the guardianship of your children in the case of your death.

Not many people enjoy discussing what they want to happen upon their death, however, the thought of your family and other heairs not getting what you want them to have is equally distressing.

45 Tips to Protecting Your Money During & After an Economic Crisis

Editor — Tue, 22 Sep 2009 02:23:41 +0000

If you wish to achieve real wealth, focus on acquiring assets that are valued by other people. Concentrate on allocating you money across different types of assets, including some whose value might rise where others that you have face a fall in their value.

Decide whether you might be better off making extra mortgage payments or putting that money into investments.

Be careful with investments; do not fall for flattery or let yourself be convinced by claims that their past performance is necessarily a true indicator of future prospects.

If you get plenty of money, it is advisable that you invest the entire amount at once and not with intervals between. Diversify your investments as suggested in Point 1.

Making big investments just to avoid taxes is a decision that requires careful consideration and access to premium, probably high-cost professional advice.

If you plan to studying in college, compare the college saving plans to find those which give you the best options.

Coins are “little savings”, so do not spend them. Try saving coins and use the paper currency; you will see that you have effortlessly saved more by the end of the month.

Buy a house only when you are willing to move into it immediately and live for at least a minimum of five years.

Instead of hiring young members of your own family or giving them a portion of your money when they are young, place your inheritance into a trust until your minors are sensible enough to handle the money.

Supermarket coupons can be a great help, provided you know the right way of using them.

Do not run after high returns without considering that ‘A great reward may have a greater risk’.

Have you noticed people who buy lottery tickets each day? Buying more tickets does not significantly increase your chance of a major prize but inflates your risky investment significantly.

Both parents working may seem to be necessary at the moment, but you may not think so if you calculate the extra expenses involved such as lunch, commuting, wardrobe, childcare, etc.

Be careful which pension plan you opt for. Check that the agent is not selling you insurance instead of a pension.

Check out your life insurance policy and whether it is a good investment. Remember, an insurance policy is to protect you and not just for the company and their agent to profit from you.

Maintaining your investments through all cycles is the key to being invested in the right time. This may make your success rate higher rather than investing and then withdrawing from time to time because of the fees and other costs at each change.

Avoid using a credit card as much as possible, because you end up spending extra with it. Instead, you can go for a charge card, which makes you pay what you spend each month.

When you plan to buy a home, go for a buyer-broker. Realtors are the ones who represent the seller, unless you are hiring a buyer-broker who is the one who represents you.

Investing the same amount regularly is said to be the best way of using dollar cost averaging.

Instead of a fifteen-year mortgage plan, go for a thirty-year mortgage if the longer mortgage means lower monthly payments and a higher tax deduction.

Consider applying for a systematic withdrawal plan rather than applying for bonds if this will provide a steady flow of income even after your retirement.

Check that your bank accounts are insured federally. The FDIC, or the Federal Deposit Insurance Corporation protects deposits up to around two hundred fifty thousand dollars per person. If you have, more than the secured amount, you may spread it through various banks.

If you want annuities, consider sticking to the variable and not the fixed type. A fixed annuity has a fixed return but a variable annuity gives you a chance to earn the full return.

Grandparents often plan college funds for their grandchildren but, I believe that this requires very careful thought beforehand.

Do not purchase a mutual fund just because it is highly rated. Different funds, even a mutual fund that has just a single star may do exceptionally well in certain periods.

The money that you may need in the next two years must be cash or fairly easy to convert to cash. The stock market is not a place to store the money that you might need immediately.

You can invest globally, not just in the U.S.A. exchanges.

Keep a careful eye on your family budget; try to reduce your expenses, curtail your restaurant meals and other un-necessary expenses that may cause a future burden.

When you want financial advice, only accept it from a registered investment advisor. A stockbroker is not the right person to advise you on your general finances.

Write a check for yourself and save it first. This is an efficient, almost painless, way of saving.

Do not include your child’s name is investments or bank accounts; this may mean that your other children might be disinherited and might cause tax problems.

When you sell a home, go to a qualified realtor and get referrals from people you trust.

Do not buy real estate investments with borrowed funds.

Stopping your PMI when you have around 20% of the equity on your home left might save many hundreds of dollars.

Buying mortgage life insurance should be considered carefully. Separate insurance might be a better option.

If you contribute to a nondeductible IRA account is not a great idea, maintain a proper record or you may suffer serious losses.

If you are 62 years of age now, you may be able to take a social security instead of waiting until you are 65.

Money handling processes have changed, so do not stick to how your parents handled their money.

While getting a pension, consider choosing a lump sum option where you can take control of your money and your future.

While leasing the car, consider not paying for the cap cost reduction and perhaps get gap insurance instead.

Saving money in your child’s name may not be a good idea. You will have to part with the money once your child turns 18 or 21.

Instead of saving for your children’s college costs, consider starting to save for your own retirement first.

Investing in a QTIP trust might be a good way of protecting your kids and spouse.

Consider taking a policy that provides five or six years benefits instead of investing in long-term care insurance.

Do not panic or worry; this will take you nowhere. It is not necessary that you take in all the gloom that the media throw at you.

Learn how to better protect you and your family in the current crisis, with this informative and easy to understand e-guide to Surviving the Debt Crisis.

9 Tips To Avoid Financial Fraud

Editor — Thu, 17 Sep 2009 01:09:55 +0000

Investment fraud is as old as the world itself. From the day we stopped trading livestock and produce and began using money as a means of exchange, dishonest people have been trying to cheat and swindle it away. Though it is an old problem, recently Bernie Madoff and now (allegedly) Allen Stanford have brought it back to our attention in a big way.

As an investment professional as well as a consumer, it is an outrage that both inexperienced and savvy investors alike get taken advantage of by con-men and charlatans. So in an effort to battle these wrongs and protect you from being a victim yourself, I offer these guidelines to reduce the risk of imprudent investment as well as fraud.

1. Educate yourself.

Buy a basic investment primer if you don’t know the basic nature and risk vs. return characteristics of traditional stock, bond, money market, CD & mutual fund investments. Double digit returns invariably mean higher volatility. Annuities and retirement plans are long term investments. If an investment sounds “too good to be true”, it probably is! Avoid the seduction of “alternative investments” except as a minor piece of a diversified portfolio.

2. Map out your goals before shopping or investing.

What is the purpose and time horizon for the planned investment and your need for liquidity?

3. Who are you considering investing with?

Never do business with a stranger you’ve only met over the phone or internet. You have been detecting clues about liars all your life by looking people in the eye and watching their response to impromptu questions! Get their business card It should show evidence of regulatory oversight and ideally professional designations (such as CFP®, CHFC or CPA PFS) which show evidence of continuous training and ethics reviews. Almost all investments are regulated either as securities or insurance and you can check out the investment advisor at http://www.finra.org/brokercheck or verify insurance licensing with the state. For Texas go to http://www.tdi.state.tx.us.

4. Be careful mixing business with pleasure.

Affinity fraud occurs when investors relax their investment scrutiny because they know or know of the salesperson from church, civic or social organizations. Con-men frequently depend on this approach!

5. Beware of “edutainment”.

Radio, TV and newspaper commentators are not legally responsible for their stated views and some program formats promote audience interest by featuring two radically different viewpoints. Merely writing a popular book or appearing on Oprah does not make someone an investment expert or appropriate investment advisor!

6. Ask tough questions.

How is the salesperson compensated? Does he or she have an incentive to promote “new issues” or proprietary products? Will there be regular written performance reports and is online look up available?

7. Don’t be rushed – check it out.

Say no to any salesperson that pressures you to make an immediate decision. Get an independent research report on any stock or bond and a prospectus on mutual funds or variable annuities. Be suspicious of “hot tips” or “one time offers”.

8. Benefit from internal controls.

Never make investments in cash or payable to the salesperson. Most investments can be held within a SIPC insured brokerage account and initial investments should be payable by check to the brokerage firm (or insurance company).

9. Limit your exposure.

Limit the amount you invest in any one security to 5 – 10% of your investment capital. Diversification is your friend!

Tips and Techniques to Successful Investing

Editor — Tue, 15 Sep 2009 17:21:00 +0000

The main objective of any investment is to make money and gain from a profit. Experienced investors usually study market trends before investing. However, inexperienced investors depend on the advice from financial advisors and brokers to guide their investments. Money always grows with time in the stock markets. A successful and profitable investment involves a lot of patience and constant monitoring of market fluctuations. In order for an investment to be profitable, it is important to adopt flexibility and diversification of funds. Listed below are some important points-to-remember:

Flexibility: Investors need to be flexible with their investments. Investment strategies involve regular analysis and reviews of the financial market. Amateur investors should seek help from financial advisors on their investment portfolio. Long-term planning and asset allocation are very important to an investment portfolio. Mutual funds, variable annuities and variable universal life insurance or VUL products provide good ground for investment flexibility. Another type of investment is Survivorship Variable Universal Life Insurance or SVUL. SVUL covers two people in one life insurance policy. The benefit is payable after the death of the last surviving insured person. The investment portfolio should be designed to help diversify the investments.

Diversification: Diversification involves making different investments to gain from higher returns. This risk-management technique of investing helps to diversify the investments in stocks, bonds and cash. It does not waive off the risk of loss totally, but it definitely creates more avenues for profit. The investor can invest in a number of different companies, foreign securities and mutual funds. Even if one company declares a loss, the investor still has the other investments to fall back on. Diversification is a good method to counter the risk involved in the total loss of an investment.

Simple Approach: It is safe for amateur investors to follow simple guidelines for investing money. Immature investors should not invest in companies that they are not very sure about and haven’t researched. A simple approach to investment is to stake money in recognized companies that offer high returns and show a consistent growth pattern. It pays to conduct a research on the company before making an investment.

Be Disciplined: Market trends fluctuate due to several reasons. An investor’s judgment should not be based on momentary instability. It is not advisable to make a change in the adopted strategy mid way. However, regular analysis and timely reviews help to keep abreast with important information of the stock market.

Invest Smartly: Investors need to be well informed and alert all the time. Cautious long-term planning is as important as being patient. Investors ought to be methodical when following an investment strategy. It is equally important to understand and monitor the economics and trend of a company. The investor should be updated regularly on business, political and stock related news to learn the political implications that may affect the company in future.

Investments carry the element of risk and therefore investors are advised to investigate before investing. It helps to follow the general guidelines of investment and invest smartly.

Tips to Consider Before Buying an Annuity Policy

Editor — Fri, 11 Sep 2009 14:19:19 +0000

Buying an annuity can be a complicated decision. Following are a few key considerations for buyers before deciding whether to purchase annuity policies:

* Review all of your other savings plans, pensions or retirement funds to determine whether you need an annuity and whether the annuity you are considering is the right one for you based on your age, financial status, investment objective and risk tolerance. Is there a possibility that you could outlive your assets? Will you keep the annuity long enough so that the charges do not eat up your investment?

* Determine whether you want your investment to be steady and fixed or variable. While variable products offer an opportunity to capitalize on market highs, they also carry additional risk in a downturn.

* Be careful about exchanging one variable product for another. For instance, exchanging a variable annuity for a fixed or equity-indexed product may result in a “surrender charge” and higher annual fees, along with a new period of time during which you cannot withdraw money from your account without substantial surrender charges. Always check the schedule of surrender charges and other fees. They may be higher on the variable annuity with the bonus credit than they were on the annuity you already own.

* Make certain the company from which you are considering buying an annuity product is reputable. A good place to start is to look for the Insurance Marketplace Standards Association logo. Only companies that have proven through extensive outside review that they adhere to IMSA’s stringent Principles and Code of Ethical Market Conduct can display this logo. Visit www.IMSAethics.org to see if the company is listed and for other information.

* Be sure the company offering the annuity product is financially strong. Many independent services rate the financial strength of insurance companies, such as Standard & Poor’s Insurance Rating Services (www.standardandpoors.com), Moody’s Investor Services Inc. (www.moodys.com), Fitch Ratings Inc. (www.fitchratings.com) and A.M. Best Co. (www.ambest.com).

* Check with your state’s insurance department to be sure the company you’re considering buying from is licensed to do business in your state.

* Remember, an annuity is a legally binding document. Read the annuity contract carefully and be sure your agent has answered your questions thoroughly before you buy. – NU