By Ron victor

Surety bond plays a major role in the development of the economy. In every business environment surety bonds are the most needed requirement to fulfill their aspects in a correct form. Nowadays, trends have been changed and people want to compile their requirements legally. So, every obligee requires their business to be done legally. Surety bond explains the essential factors and their requirements in the economy. The main purpose of issuing surety bonds is to give a guaranteed performance of contract. Generally, most of contractors enters in to a contract and do not complete the contract as per the terms and conditions of contract. Each party involved in the process has a defined responsibility and role with one another.

In case of breach of contract by the obligator, this surety bonds will be more helpful for the obligee to sue both principal and surety in the court of law. Surety bonds are issued in different types and at different premiums as per the requirements of the obligee. Nowadays, surety bonds are needed in all business environments. A surety bond determines the responsibility and roles of different people who are engaged in the contract. When the person engaged in the business, he is obliged to obtain a license from the department. To obtain this license, the applicant is required to procure surety bonds of many kinds as per their business. Without license, no person can engage in the business, also without surety bonds no person can obtain license from the prescribed department.

Therefore surety bonds describe the responsibility and role played in the economy. Surety bond classifies the main aspects needed for the business and provides a better solution to solve the problem. It offers responsibility to the people engaged as per their functionality and requirements. The roles and responsibility of surety bonds offers a better solution and benefit for the persons engaged. The roles and responsibility of surety bond determines the functionality and consideration of various activities involved in the process. The process will be made essential when it is organized by the contractor properly. It is the responsibility of the obligator to complete the contract within the time and contract price mentioned in the terms and condition of the contract.

The surety bond explains the roles and responsibility of the person involved in the contract, namely the principal, the owner, the surety. The obligator is a person who performs the contract as per the terms and conditions of the contract and gives a guaranteed performance to the owner. The obligee is an owner who has to make payment appropriately to the contractor within the contract time. Surety is a third party involved in the roles of surety bonds. A surety is a person who guarantees the obligee that the principal will perform the contract as per the terms and conditions of the contract. The surety explains the responsibility of the contractor to the obligee with a guaranteed compliance. When the principal fails to perform his obligation, the surety can be asked to complete the contract or pay any compensation for the loss incurred. Therefore surety bond will perform the roles and responsibility for the economy in the prescribed form.

About the author:
Ron victor is an expert SEO Copywriter for Surety Bonds and Mortgage Broker Bond. Ron has written many articles for Surety Bond and to procure any information, contact him at ron.seocopywriter@gmail.com. Visit our site MVD Surety Bonds for further information.

By Steve Selengut

I've come to the conclusion that the Stock Market is an easier medium for investors to understand (i.e., to form behavioral expectations about) than the Fixed Income Market. As unlikely as this sounds, experience proves it, irrefutably. Few investors grow to love volatility as I do, but most expect it in the Market Value of their equity positions. When dealing with Fixed Income Securities however, neither they nor their advisors are comfortable with any downward movement at all. Most won't consider taking profits when prices increase, but will rush in to accept losses when prices fall.

Theoretically, Fixed Income Securities should be the ultimate Buy and Hold; their primary purpose is income generation, and return of principal is typically a contractual obligation. I like to add some seasoning to this bland diet, through profit taking whenever possible, but losses are almost never an acceptable, or necessary, menu item. Still, Wall Street pumps out products and Investment Experts rationalize strategies that cloud the simple rules governing the behavior of what should be an investor's retirement blankie. I shake my head in disbelief, constantly. The investment gods have spoken: 'The market price of Fixed Income Securities shall vary inversely with Interest Rates, both actual and anticipated' and it is good.'

It's OK, it's natural, it just doesn't matter, I say to disbelieving audiences everywhere. You have to understand how these securities react to interest rate expectations and take advantage of it. There's no need to hedge against it, or to cry about it. It's simply the nature of things. This is the first of three successive articles I'll be writing about Fixed Income Investing. If I don't improve your comfort level with this effort, perhaps the next one will strike the proper chord.

There are several reasons why investors have invalid expectations about their Fixed Income investments:
(1) They don't experience this type of investing until retirement planning time and they view all securities with an eye on Market Value, as they have been programmed to do by Wall Street.
(2) The combination of increasing age and inexperience creates an inordinate fear of loss that is prayed upon by commissioned sales persons of all shapes and sizes.
(3) They have trouble distinguishing between the income generating purpose of Fixed Income Securities and the fact that they are negotiable instruments with a Market Value that is a function of current, as opposed to contractual, interest rates.
(4) They have been brainwashed into believing that the Market Value of their portfolio, and not the income that it generates, is their primary weapon against inflation. [Really, Alice, if you held these securities in a safe deposit box instead of a brokerage account, and just received the income, the perception of loss, the fear, and the rush to make a change would simply disappear. Think about it.]

Every properly constructed portfolio will contain securities whose primary purpose is to generate income (fixed and/or variable), and every investor must understand some basic and 'absolute' characteristics of Interest Rate Sensitive Securities. These securities include Corporate, Government, and Municipal Bonds, Preferred Stocks, many Closed End Funds, Unit Trusts, REITs, Royalty Trusts, Treasury Securities, etc. Most are legally binding contracts between the owner of the securities (you, or an Investment Company that you own a piece of) and an entity that promises to pay a Fixed Rate of Interest for the use of the money. They are primary debts of the issuer, and must be paid before all other obligations. They are negotiable, meaning that they can be bought and sold, at a price that varies with current interest rates. The longer the duration of the obligation, the more price fluctuation cycles will occur during the holding period. Typically, longer obligations also have higher interest rates. Two things are accomplished by buying shorter duration securities: you earn less interest and you pay your broker a commission more frequently.

Defaults in interest payments are extremely rare, particularly in Investment Grade Securities, and it is very likely that you will receive a predictable, constant, and gradually increasing flow of Income. (The income will increase gradually only if you manage your asset allocation properly by adding proportionately to your Fixed Income holdings.) So, if everything is going according to plan, all that you ever need to look at is the amount of income that your Fixed Income portfolio is generating' period. Dealing with variable income securities is slightly different, as Market Value will also vary with the nature of the income, and the economics of a particular industry. REITs, Royalty Trusts, Unit Trusts, and even CEFs (Closed End Funds) may have variable income levels and portfolio management requires an understanding of the risks involved. A Municipal Bond CEF, for example will have a much more dependable cash flow and considerably more price stability than an oil and gas Royalty Trust. Thus, diversification in the income-generating portion of the portfolio is even more important than in the growth portion' income pays the bills. Never lose sight of that fact and you will be able to go fishing more frequently in retirement.

The critical relationship between the two classes of securities in your portfolio, is this: The Market Value of your Equity Investments and that of your Fixed Income investments are totally, and completely unrelated. Each Market dances to it's own beat. Stocks are like heavy metal or Rap'impossible to predict. Bonds are more like the classics and old time rock-and-roll'much more predictable. Thus, for the sake of portfolio smile maintenance, you must develop the ability to separate the two classes of securities, mentally, if not physically. For example, if your July 2005 Market Value fell, it was because of higher interest rates not lower stock prices. More recently, the combination of higher rates and a weaker Stock Market has been a Double Whammy for portfolio Market Values, and a double bonanza for investment opportunities. Just like at the Mall, lower securities prices are a good thing for buyers' and higher prices are a good thing for sellers. You need to act on these things with each cyclical change.

Here's a simple way to deal with Fixed Income Market Values to avoid shocks and surprises. Just visualize the Scales of Justice, with or without the blindfold. On one side we have a number that represents the Current Market Value of your Fixed Income portfolio. On the other side, we have a small 'i' for interest rates, and 'up' or 'down' arrows that represent interest rate directional expectations. If the world expects interest rates to rise, or even to stop going down, 'up' arrows are added to 'i' and the Market Value side moves lower' the current scenario. Absolutely nothing can (or should) be done about it. It has no impact at all on the contracts you hold or the interest that you will receive; neither the maturity value nor the cash flow is affected' but your broker just called with an idea.

The mechanics are also simple. These are negotiable securities that carry a fixed interest rate. Buyers are entitled to current rates, and the only way to provide them on an existing security is to sell it at a discount. Fortunately, one rarely has to sell. Over the past few years of falling interest rates, Fixed Income securities have risen in price and investors (should) have realized capital gains as a result'adding to portfolio income and Working Capital. Now, that trend has reversed itself and you have the opportunity to add to existing holdings, or to buy new securities, at lower prices and higher interest rates. This cycle will be repeated forever.

So, from a 'let's try to be happy with our investment portfolio because it's financially healthier' standpoint, it is critical that you understand changes in Market Value, anticipate them, and appreciate the opportunities that they provide. Comparing your portfolio Market Value with some external and unrelated number accomplishes nothing. Actually, owning your fixed income securities in the most freely negotiable manner possible can put you in a unique position. You have no increased risk from a reduction in security prices, while you gain the ability to add to holdings at higher yields. It's like magic, or is it justice. Both sides of the scales contain good news for the investor' as the investment gods intended.

About the author:
Steve Selengut
sanserve@aol.com
800-245-0494
http://www.sancoservices.com
Professional Portfolio Management since 1979
Author of: "The Brainwashing of the American Investor: The Book that Wall Street Does Not Want YOU to Read", and "A Millionaire's Secret Investment Strategy"

source:www.ezinefinder.com

By:Naz Daud

There are many investments that a company can make. It is a financial manager’s job to help the management team evaluate the investments, rank them and suggest choices. This process is called capital budgeting.

Some investments, however, defy financial analysis; an example of this may be seen in charitable donations, which provide intangible benefits that financial mangers alone cannot evaluate.

It may be argued that investment decisions fall into one of three basic decision categories:

Accept or reject a single investment proposal

Choose one competing investment over another

Capital rationing – with this particular category, the limited investment pool is active deciding which projects among many should be chosen.

Whilst each corporation uses its own criteria to ration its limited resources, the major tools are:

Payback period

Net present value

Payback period method – many companies believe that the best way to judge investments is to calculate the amount of time it takes to recover their investments.

Analysts can easily calculate paybacks and make simple acceptance or reduction decisions based on a necessary payback period. Those projects that come close to the mark are accepted, those falling short are rejected. For example, the managers of a small company may believe that all energy and labour saving devices should have a three-year payback and that all new machinery must have an eight-year payback. Additionally, research projects should pay back in ten years. Those requirements are based on management’s judgements, experience, and level of risk.

By accepting projects with longer paybacks, management accepts more risk. The further out an investment’s payback, the more uncertain and risky it is. Payback criteria are desirable because they are easy to use, calculate and understand; however they ignore the timing of cash flows and accordingly the time value of money. Projects with vastly different cash flows can have the same payback period.

Another disadvantage of using payback is that it ignores the cash flows received after the payback.

Net present value methods

The same method used for valuing the cash flows of bonds and stocks is also used to value projects. It is the most accurate and most correct method. The further in the future a dollar is received the greater the uncertainty that it will be received, referred to as risk, and the greater the loss of opportunity to use those funds, referred to as opportunity cost. Accordingly cash flows received in the future will be discounted more steeply depending on the riskiness of the project.

The way a business wishes to fund itself are financing decisions independent of investment decisions.

In my own experience, I have only ever used the payback method, along with my fellow business colleagues, perhaps because this has always been easier to understand and use and calculate. This served us well but caused frequent conflicts between operations, marketing and finance, for understandable reasons.

In summary, whereas most companies may continue to use the payback method due to the aforementioned reasons, it is well worth noting that another option is there and, especially for the financial side of the business, gives a very interesting option.

Naz Daud is the founder of CityLocal Franchise Opportunity. This business franchise is for people who would like to work from home and be their own boss

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by: Roger Overanout

What is the secret to being successful at stock investing as a beginner? Nearly everybody has heard stories about people making millions overnight using the stock market. In reality, there are many myths about investing in stocks. It is not always straightforward, sometimes even professional investors need to rely on a hunch. Stock investing can be, however, very rewarding and a lot of fun if you're prepared to take the time to learn about stock market investing.

To make money on the stock market, you are going to need patience, practice, skills, experience and education. It is vital to research the companies you are planning to invest in and find out everything you can about them. To do this there are several sources of information available to you. You can use the media, magazines or browse online for information.

Look for information on mergers, new product launches and acquisitions which might affect the stock price of the company in question. Knowing about such things beforehand can help you to avoid risky stock investing. Check how the company has been performing on the stock market over the past few years, not just how it is performing right now. Make sure you use reliable sources for information and avoid friends with “hot tips" – this is your money, after all and when you are on investing on the stock market you want to make sure you're acting from a position of knowledge. It is a bad idea to just invest in stocks at random. This is like going to a roulette table and putting every dollar you have on red.

You should begin with very small investments. If you start off with a large investment and immediately lose it, this might put you off stock investing for life. Learning the basics, increasing your confidence and getting experience is vital, some people recommend paper trading but in reality if you have not actually risked any money then you do not get a true feeling of stock market trading.

It can be a good idea to invest in a company you have some knowledge about. This will not only make it more interesting to you but you will be able to understand the way the company works and the factors that cause fluctuations in that industry.

Diversity can be a good idea when it comes to investing in stocks. You might not want to risk all your money on one company’s shares. Maybe you will want to buy stocks in drug companies, electrical companies and entertainment – or a different combination. Putting all your eggs in one basket might result in losing all your investments overnight. Spreading the investment spreads the risk when it comes to stock market investment.

Do not base your purchasing solely on price. Perhaps a $3 stock may seem like a good idea if the company is doing well and expanding. But a stock costing $300 might bring you better returns. Of course, this does depend on how much you are willing to invest.

You might wish to seek advice from a stockbroker. Stockbrokers can offer good advice and obviously have much more experience than the average stock investing beginner. They do, however, charge fees, so it is up to you whether you want to use a broker or not. They can be useful but are not compulsory.

Perhaps the most important advice for the stock investing beginner is never to risk more money than you can afford to lose, no matter how safe the potential investment seems. There is always a degree of risk involved in stock investing and nothing is 100 percent guaranteed.



For lots more helpful information about all aspects of Stock Investing for Beginner visit http://www.stockinvestingforbeginner.com/

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By: Halston

The money to be made over the next several years in basic commodities is incalculable. You don't want to miss out on this upcoming market opportunity. We are in the midst of entering the next leg of the first major move in commodities in the past 30 years. Pretty much every market has made gains, consolidated, and is now ready to continue upwards. If past bull market history can shed any light on the current situation, prices of almost every commodity will probably take off to new all-time highs over the next two to three years. Here are my picks for the best trades for 2007:

1 - Gold
Keep buying it. In my opinion, the effective "floor" in the gold market, at least for the foreseeable future, is close to $550. After an initial run-up over the $600 an ounce level, the gold market went through a correction/consolidation phase, retracing about half the distance between $625 and $525. It is, as of this article, back up around the $630 level. Expect gold to take out its former all-time record, and move well above $1,000 an ounce. Between gold and silver, to date gold has been the market leader, which is why I would recommend it over silver. I would be floored myself to see gold fall back under $500 anytime soon--but I would not be surprised in the least to see the price of gold over $2,000 an ounce within the next 18 months.

2 - Cotton
Cotton has been, up to this point, a kind of "weak sister" in the overall bull market in basic commodity prices. Whenever it decides to join the flow of the overall market, I expect it to play catch-up very quickly. Currently, cotton is languishing around the 50-cent level, despite steadily growing export demands from China and India, and despite the fact that the cotton belt across the South still has not fully bounced back from the destruction of Hurricane Katrina. My prediction: cotton will double in price during the next 24 months.

3 - Wheat
Among the grains, wheat has revealed singular determination almost since the starting point of the current bull market. Even on days when USDA reports sent soybeans and corn tumbling down, wheat managed to push through. My long-term price target for wheat is $8-$10.

4 - Cocoa
Cocoa's performance has recently been in line with the gold market: for a few years it was stuck at the same price, but then in the most recent bull market, cocoa prices advanced up to the mid-$20s. They have since pulled back to $14-$15, but recent signals of prices hitting the floor mean a turnaround could be waiting just around the bend. As with nearly all other markets, I predict that cocoa will hit new highs during the second part of this bull market. If you hesitated to buy during cocoa's first run-up, don't miss out the second time around. Buy!

5 - The CRB Index
The CRB Index is the smartest way to benefit from gains across the entire commodities market, which now happens to be the most significant bull market we have seen. In the 1980s and 1990s, many people spent too much time searching for winning stocks. In those days, it was practically a free ride to Easy Street to buy into in the Dow Jones or S&P indexes. The CRB Index is the equivalent for commodities. Especially for wet-behind-the-ears investors, the CRB Index lets you benefit from all market momentum without having to specify a certain hot market and investment time. As in all markets, every commodity market can see-saw, but in general the market always moves up. We are in a bull market, after all.

The chance to win big in the commodity markets over the next 5 years is the single greatest investment opportunity that I have ever seen. I do not expect to see another one like it for at least five decades. Do not miss out on this chance to create a fortune that could take all your financial worries away, in the space of just a few years.

Article Source: http://www.kokkada.com

Halston Adams is an ex-broker who had the chance to emulate top traders, giving him the ability to explode his own $8,000 futures account into over $56,000 in 3 years. Find out more about his trading approach at: Futures Trading Secrets today.

By Ricky Lim

For those traders who do not use a Forex currency trading system, they will have to face the possibility of losing money at some stage in their career. This is because they do not carry out their trading in a disciplined way. By using a forex currency trading system they are assured that they will be able to keep their losses to a minimum and continue to trade.

By using such a system a trader is able to remain level headed and face each trade with as little emotion as possible. It is this forex currency trading system system that they have in place which will help them to determine when it is time to execute a trade. This is because they will have price levels relating to the initial stop loss, trailing loss as well as relating to computed and projected price profits all of which have been pre-determined before they start trading.

Those traders who have a system that they follow will end up making some profits when they trade correctly. However if the trade turns out to be wrong then having a system in place will quickly show them that the direction they have chosen is wrong and this in turn helps them to realize that they must get out of the trade as quickly as possible so as to prevent further losses occurring.

When it comes to choosing a forex currency trading system to use then look at other traders which ones they would recommend. Ask them about the experiences that they have had with the system that they have used or are using? Also ask them how using that system or systems has helped them? A great way of getting answers to questions like these is posting them on Forex trading forums and you will be amazed at just how many answers you will receive in reply to your questions.

Also it is important that you learn as much as you can about every type of Forex currency trading system that is available.

What is extremely important however is that if you wish to trade successfully then you will need a Forex currency trading system which ensures that you approach the task in a disciplined way. It is only if you become disciplined when trading will you start to see more gains than losses. Certainly using any kind of trading system will help to ensure that your losses are kept to as minimum an amount as possible.

About the author:
Ricky Lim runs a learn forex trading online site for beginners at www.learn-forextrading.net. Visit his site today for more forex tutorials and articles.

www.ezinefinder.com

by: Mike Estrey

Many traders do not realise that Contracts for Difference can be used not just for stockmarket trading, but also in the forex and commodities markets, and one of the most liquid and exciting markets is crude oil and natural gas. CFDs are usually modelled in the same way as futures contracts, and consequently there are several contracts from which to choose in each category.

It is well known that the crude oil market is normally priced either as either Brent crude or US crude. The current spread between the two is about $3.5, Brent being higher, but this varies according to supply and demand, liquidity and other geopolitical issues.

Different contracts

Within each market, several expiration months are quoted and at the time of writing (June 2007) July, August and September CFDs are available. The difference in prices between the various contracts reflects the cost of carry and other seasonal factors as it would for all commodities.

What this means is that you do not pay financing interest on these CFDs, because all positions are rolled over into expiry and the contract values already price in the cost of carry.

What can you trade?

It is possible to trade various many different CFDs related to oil prices. These include:

Heating oil, for which there is a liquid US-based quote with several expirations

UK Oil and Gas sector CFDs

US Oil and Gas sector CFDs

Individual oil share CFDs including such varied names as Royal Dutch Shell, Statoil, Total-Fina, Exxon Mobil and many smaller oil company stocks around the world

US Natural Gas CFDs with various expirations

Calculating the margin on a US crude contract

As we analyse the US crude oil market every day in our US report, it is worth looking at this contract to calculate what margin is required on a trade.

The current most liquid contract is the July 2007 CFD, priced at $65.86 to $65.92

The margin requirement on most commodities is 3% of the total contract value.

The tick size is 0.01.

The contract value is calculated by this formula:

((Quantity) x (Price))/ Point= initial margin

Therefore if you were to buy 10 US Crude Oil CFDs at $65.92

(10 x 49.50)/ 0.01 x 0.03 = $1,978 initial margin.

The exposure per tick is worth $10.

For online traders, CFDs are an excellent way to gain exposure to the oil market as a speculative play, for hedging purposes, or when searching for good arbitrage possibilities. The markets are liquid and spreads are very attractive.

by Monica Hendrix

It may sound obvious but a real time track record of profits.

The bulk of advice over 90% is not worth the money and you can get better advice on the net for free.

Most vendors simply make up track records and produce a hypothetical track record that is done you guessed it in hindsight - Knowing the closing prices! Well that's hard.

You will also get testimonials but these are normally made up friends or traders who had a lucky trade.

If you ask for the real time track record you know the vendor has had success himself and while this doesn't mean you will win it at least shows they have confidence to trade their own system.

Finding good advice

You can get a lot of good research for free:

From banks and brokers and a lot of it is very good and you can get ideas - You shouldn't follow it blindly and you should always compare it with your analysis but for ideas its great place top start.

While a lot of the vendors who sell advice will give you a system it is normally of little use as it doesn't have a real time track record and you should ignore it - all you need is on the net and it's free.

Here is what you need to do.

1. Look up technical analysis and learn how and why it works and learn the concept of support and resistance

2. Then you need to learn the concept of breakout trading how and why it works

3. What you want to do is to trade against support and resistance and you need to get the odds in your favour, so you need some momentum indicators to help you.

Go to a good free chart service such as futuresource.com and learn about stochastic and the Relative strength Index and how to use them.

You can then trade support and resistance and use these indicators to time entry.

The above will give you a perfectly robust system you can apply for profits. All the information is free and to help you we have written numerous articles on building forex trading systems so look them up.

There is some advice worth paying for and you can get that from Amazon.com

Two essential books are:

1. Market Wizards by Jack Schwager that interviews some of the top traders of all time. These are traders who don't just talk the talk they have walked the walk and made millions.

2. Also get "Way of the turtle" by Curtis Faith - He learned to trade in just 14 days in a famous experiment devised by legendary trader Richard Dennis to prove that anyone could learn to trade.

These traders known as the turtles went on to become some of the most successful traders of all time, all learned to trade in just 14 days and all had no previous trading experience.

Curtis Faith made $30 million and was the most successful turtle of all and this is a great book for anyone wanting to know what you need to do to become a successful trader.

So your system you can get free on the net and the two books above will give you a good introduction to the mindset of the successful trader.

About the Author

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by Tony Seruga, Yolanda Seruga and Yolanda Bishop

A timeshare is as simple as the name suggests; this practice enables people to own any form of vacation property such as condominiums or cooperatives. This concept has been extended to apply to houseboats, yachts, campgrounds, motor homes, and cruises. Initially, the company owns the property and sells time periods of it to varied owners who share its costs collectively. Primarily, timeshare properties are available to the owners from one to three weeks during a year. These owners have several options to use their timeshare properties; these include * Personal use * Rental property * Gift to anyone * Exchange internally with other owners within the same property * Exchange externally with owners of other timeshare properties

A fractional property is different from a timeshare in terms that it is a more expensive asset. A company is usually the primary caretaker of the property and it manages the property on behalf of the owners. The owners are allocated time periods ranging from two to thirteen weeks spaced out during a year's length. Fractional properties offer several benefits to its owners over timeshare properties including a share of income from the fractional asset property.

Benefits The concept of timeshare properties emerged in the early 1960s in Europe. It is extremely significant to research a property before buying it; typical areas of research should include the management scheme, time of year, exchange mechanisms and other details. People take the initiative to buy timeshare properties for a number of reasons: * Timeshares allow individuals to own a slice out of vacation homes and the owners have the liberty to use it as they will. This implies that owners can also rent it out to others when they are not using it. * Timeshares provide the privilege to own vacation property in various destinations at substantially lower costs. * Timeshare properties are equipped with kitchens and laundry facilities which allow the owners to lead an economical time at the properties.

Fractional ownerships seem extra attractive to people mainly due to the cost element. The reasons fractional properties are becoming popular are: * As mentioned above, the low cost allows owners to get an interest in the asset for a fraction of the cost that has been paid. * Fractional properties' interest can be sold or transferred. * Owners of the fractional properties collectively determine the functions of the management company * The management company takes care of all maintenance issues; this removes a big burden off the owners' minds * Fractional ownership enables people to lead the lifestyle they dream and enjoy as per the conveniences of the owners

Types of Properties Timeshare properties are generally apartment-style units ranging from studio units to three and four-bedroom units. They include kitchens, a dining area, dishwasher, TV, VCRs and more. Luxury items such as planes and luxury cars have also been incorporated within the timeshare property range.

Fractional properties, on the other hand, include a broader range of assets including: * Aircraft and jets * Art * Boats and yachts * Classic cars * Corporate hospitality * Destination and private * Residence clubs * Handbags * Helicopters * Hotels * Lifestyle * Luxury vehicles * Property * Racehorses * Spirits and champagne * Sport * Supercars * Vineyards and wine

Fractional properties tend to appreciate better and financing a fractional property is easier as backs and financial institutions realize the values of these properties.

Locations Timeshare and fractional property ownership is primarily meant for vacation purposes. Thus, the properties bought through these practices should be located in vacation destinations overlooking scenic areas. Examples include beach resorts overlooking the beach, farm houses overlooking the countryside views and so on.

Potential Buyers Timeshares and fractional ownership have created a trend of allowing anyone to have a share in exclusive vacation properties and to enjoy the luxurious benefits thereof. * Second Home Owners * Realtors * Developers * Investors

All these people have vested interest in timeshares and fractional properties. Second home owners enjoy the ability to purchase a vacation home for low costs; realtors can make good commissions out of the sale of timeshares, sales commissions can be as much as 40%-50% for timeshares. Also, developers and investors have opportunities of developing and investing in such properties that are gaining popularity by the day.

Fractional and timeshare properties present unique opportunities to buyers to increase the value of their property. The low costs make them exceptionally attractive and the also absence of obligation to continue ownership i.e., ownership can be transferred at any time.

About the Author

Tony Seruga, Yolanda Seruga and Yolanda Bishop of Maverick Real Estate Investments, Inc. work with builders, developers and other players in the commercial real estate industry to acquire and develop properties. They use progressive investment strategies that have proved extremely profitable. In addition to their own deals, they teach both seasoned and inexperienced investors how to be big players in the game. Visit the website for more info.

by: Monique Fell

There is always a risk when investing in real estate because property values rise and fall. The best protection you can have against this risk is to become knowledgeable of the market you intend to invest in. If you do this, you will be able to buy properties that are undervalued, improve them if necessary and sell at market rates. The more properties you can turn over using this simple formula, the more profit you will reap from your real estate investment strategies.

The two main ways you can buy properties at low prices with a promise of selling much higher, is to buy individual properties that are being sold significantly below their market value and to buy when the real estate market as a whole has bottomed out and is ready to rise. Both these strategies require you to do your research about the market in general and market values of comparative properties in particular.

Before investing in a local market, spend some time researching it. What are the current prices? What has been the market growth over the past twelve months? How has the population grown over the past twelve months? Are these trends likely to continue? You also need to research current and future development plans and assess their likely impact on future prices and market demand. For example, if there are a number of major development projects for apartment complexes that will be available for sale at the same time you will be selling an apartment you may have to lower your asking price in order to make a sale.

The real estate market should not be viewed as an isolated market. It is a function of the local, state and national economies. If unemployment rises, interest rates rise or other economic pressures are placed on people, the real estate market will be affected. Therefore, you need to pay attention to what is occurring in the wider world. If you are thinking of purchasing an investment property in a location where residents are largely reliant on one or two major employers there is a risk to the stability of the real estate market in that area. If a manufacturer closes their factory, for example, people will not be able to afford their mortgages and properties will come on the market depressing prices. Successful real estate investment strategies therefore must include an understanding of social and economic impacts in a market as well as current and expected trends.

Apart from these broader issues, a successful real estate investor will carefully consider all facets of any individual purchase. The current market value, all the costs associated with the purchase, estimated costs of necessary improvements and likely selling price are all important aspects of any decision to purchase a real estate investment property.

If you do your homework and implement sound real estate investment strategies you will be well equipped to make a good profit with minimum financial risk. As you practice sound strategies you will increase your experience and develop an instinct for good buys and become an increasingly successful investor.

source:searchwarp.com

By: Kalinda Stevenson, PhD

You can always get money to fund a good real estate deal.

If you think about money with a consumer mindset, you might assume that the only way to buy investment property is to buy it with your own money and your own credit. This is based on the belief that money is scarce and you have to pay for your investment by yourself.

Where do consumers go for money? They go to banks. And what happens at the bank? If you are a consumer, the bank will require you to provide a vast amount of personal information. You might feel that you have to beg to get the money. And after providing all of the personal information, it is up to the bank to decide if you are worthy to borrow the money.

If you are a consumer who goes to the bank to borrow money, you have to deal with banks who decide whether or not you deserve to receive money from the bank. At the heart of the matter is the idea that the most important issues are your money and your credit. Many people who want to borrow get the distinct impression that the bank wants to loan money only to people who already have money. If you don't have money, the bank doesn't really want to loan any money to you.

In fact, you don't ever have to ask a bank for money to fund your real estate transactions. This is because there are private lenders who have plenty of money for real estate investments. This is one of the major differences between consumers and investors. Investors know that they can use private investors while consumers think that they must get funding from banks. If the deal makes sense, investors can find all the money they want from private investors.

If you want to buy a property, and you need $10,000 as a down payment, someone with a consumer mindset might say: "The only way I can buy this property is to pay $10,000 as a down payment. But since I don't have $10,000, I can't buy the property." Investors don't think this way. An investor's first thought would be: "Since I don't have $10,000 to buy the property, I'll use other people's money. I know that some one else has the money I need to buy this property."

If you have an investor and a consumer looking at the same property, the consumer will very likely say: \"I can\'t buy this because I don\'t have enough money and the bank won\'t loan me the money because I am not credit worthy.\"

In the same situation, the investor will say, "I know that this is a good deal. I'll find a private lender willing to fund this deal so that I can buy the property." The investor knows that private lenders first of all want to know if this is a good investment. They don't decide whether or not to fund the deal based only on your money and your credit. The fact is, if the investment really is a good deal, you will be able to find a private investor willing to provide the money.

Article Source: http://www.superfeature.com

Find out why www.nomoneylimits.com/privatemoney.htm">private money lenders is often a better source of investment capital than banks. Do you need a www.accesstoprivatemoney.com">private money investor for multimillion dollar projects?

by Christopher Johns

Unlike some other insurance considerations (such as how much insurance you can afford), deciding between a lump sum and a series of regular payments often means thinking about what's best for your beneficiaries, rather than yourself. It may not be much fun talking about what will happen if you die, but if the objective of insurance is providing for your loved ones if it does happen, then it makes sense to get these details sorted out.

It's important to note, first of all, that an income policy could potentially pay out more or less than a lump sum policy depending upon when a claim is made. With a level lump sum policy the cover will always be the same whether you claim at day one or the day before it terminates. However, an income policy will only pay out for the remaining term which restricts the number of payments your beneficiaries can receive. So if you choose a monthly benefit of £1,000 and claim a month before the policy ends, your beneficiaries will only ever receive £1,000. It's for this reason that an income paying policy is the cheapest form of life cover, like for like.

If your beneficiary is an adult (for example your spouse) then there's usually no problem with providing the insurance payment as a lump sum. It may even be a good idea to talk to your beneficiaries and find out what they would prefer. The payment option you choose will be very much dependent on your family circumstances, and on which option will most benefit them. If, for example, the insurance is intended to pay off the mortgage, then a lump sum is typically the best option. On the other hand, your family may benefit more from a regular income rather than a large sum of cash if the mortgage has already been fully paid or is taken care of with additional mortgage life insurance.

In some situations, your beneficiaries may be young children, teenagers, or other people who you might feel uncomfortable leaving a lump sum to. In such cases, you may want to ensure that your dependants have a regular income, or you may simply want to restrict their access to a large lump sum as they may be too young to manage it effectively.

Most of the time, this is a pretty simple choice to make as it usually comes down to the specific needs of your beneficiaries. In most cases, a lump sum works well, and is the simplest choice for providing the most financial flexibility for the beneficiary. As a general rule, if your beneficiary is a minor or other financially inexperienced dependant, an income can be a better option. An adult beneficiary may prefer the flexibility of a lump sum which can be used or invested as they desire, while for a family, either option might be appropriate depending on the specific circumstances.

About the Author

Why pay more for life insurance when you could save up to 40% by using a discount life insurance broker such as Life Saver. Get instant online quotes comparing 20 major UK insurers at discount rates from Life Saver at www.life-saver.co.uk.

By: Mike Estrey

The rise of CFDs (contracts for difference) and spreadbetting over the last decade has naturally impacted on the amount of trading in physical shares using a traditional stockbroker. There is no doubt that the internet has altered the share trading process to the benefit of private clients in terms of cost and access to information and markets, and with broadband and efficient streaming this really is a boost for those looking to capture real time movements using online trading. The first part of this paper discusses why CFDs and spreadbets are now so popular, and then the subtle differences between the two will be explained.

CFDs and Spreadbetting - the best way to trade the stockmarket

In the old days, what now looks a very cumbersome system involved phone based dealing with the client having to wait for a dealing report from the broker, and this would be followed up with a paper based settlement and certification system. The introduction of nominee accounts and the crest settlement system was a great step forward, and in terms of deals carried out for investment, rather than trading, the system works well.

But for traders, this reduction in certification has gone hand in hand with the biggest change in the industry, the explosive growth of CFDs and spreadbetting, which have principally three main benefits over traditional share dealing:

First, there is no stamp duty to pay under current tax laws, so there is an immediate pick up of 0.5% on all UK based trades. The reason is simply that with a CFD, the client is contracting to pay the difference between the opening and closing prices of the position taken – essentially the profit or loss. Delivery never takes place and there is no time limit on the CFD, therefore there is no stamp duty. Spreadbets are treated as bets and are not currently subject to duty likewise.

Second, clients have the ability to take long or short positions on the underlying share, commodity or index. This is an option that many traditional stockbrokers still prohibit, and is useful both as a speculation and for hedging purposes. CFDs offer a simple and effective way to protect against a potential fall in the stockmarket or for that matter any instrument, without having to sell shares in a portfolio and then buy them back.

Third, traders can utilise generous margin rates, which by using leverage, enable large position sizes to be opened using a relatively small amount of deposit. It goes without saying that there is an associated risk which mirrors the amount of leverage, but for experienced traders this to some extent bears some similarity to traditional physical trading for extended settlement. For CFD traders, margin rates of as low as 1% are available, which again is very attractive for hedging purposes.

For share trading it is usual for clients to place funds on margin, but positions have to be closed within the trading settlement period, or the full cost of the purchase has to be made. The client usually pays a premium for not having to settle for up to 25 working days. Again this option is not allowed universally by brokers, and CFDs solve this problem, as they have no time limit, which makes them far more flexible. Spreadbets can be taken out with a wide range of expiry dates, so again it increases the choice for clients.

With these benefits, and the undoubted cost advantages, the natural question is why clients would wish to use a traditional stockbroker. The answer of course lies in the added value services offered by a broker, which include portfolio analysis and management, advice on collective investments, taxation and other financial products. For clients seeking perhaps a longer term perspective on investments, and for buying and selling shares on a longer term view, stockbrokers have an important role to play.

Buying shares outright also gives clients the benefit of shareholder voting rights, which is not the case for CFDs and spreadbet positions, although holders of long CFD positions do receive corporate dividends, and short CFD positions are debited with dividend payments on the ex-dividend date.

It is for shorter term trading and longer term hedging that CFDs and spreadbets have a clear edge, and they are both beneficial for those who wish to ‘go it alone’ in terms of costs. This benefit can be quantified in terms of the length of time each trade is open.

With CFDs, the additional cost of holding a long CFD position over a traditional purchase is only the interest cost. The interest charged on a long CFD is usually at a premium to LIBOR (London InterBank Offered Rate), typically LIBOR plus 2%, but it should be noted that if a client takes a short position, then interest is actually credited to the CFD position at a comparative discount to LIBOR. The amount the client lodges by way of margin is held to secure the performance of the contract and is not available to be set off against the Contract Value.

Conversely, a traditional share purchase incurs stamp duty at 0.5%. The crossover will occur at the time that the interest charged on the long CFD matches the saving made against stamp duty, and this point is usually reached on or around 28 days after the position is opened. Consequently, for trades outstanding for less than this period it is economically more viable to trade the CFD rather than the underlying stock, working on current interest rates. For those going short of a stock or index, there are clear benefits as interest is received each day while the position is open, so time is not a factor.

CFDs against spreadbetting

The terminology is slightly different for CFDs and spreadbets, but both offer the same degree of leverage and potential risk/reward for online trading. If a client wishes to open a CFD position, this is quoted in the same way as if a normal share purchase/sale was being made i.e. ‘buy 1000 Lloyds TSB CFDs’. With spreadbetting one is technically betting on the price movement of a share, index, commodity or whatever measured in pounds per point of movement. So the equivalent trade here would be ‘buy Lloyds TSB at £10 a point’, but the exposure is essentially the same. In both cases, you simply 'buy' if you think that the price is set to rise, or vice versa.

In spreadbets, all profits are free from UK capital gains and income tax, which is not currently the case for CFDs. (Tax law can change or may differ if you pay tax in a jurisdiction other than the UK). The other main difference is that for spreadbet long positions there is no daily funding but as each bet has a defined expiry date the interest cost to the broker is built into the spread in the same way as a futures price might be constructed.

In terms of use, CFDs have the edge for stockmarket trading, accounting for 40% of LSE volumes, and many investment banks tend to use CFDs simply because they tend to track the underlying price more than spreadbets.

There is no question that CFDs and spreadbets have revolutionised short term and online trading if one does not aim to hold any long position for more than a month, and they are valuable for longer term hedging.

The rise of CFDs (contracts for difference) and spreadbetting over the last decade has naturally impacted on the amount of trading in physical shares using a traditional stockbroker.

About the Author:

Mike Estrey is the Head of Research for Blue Index, specialists CFD Brokers, providing seminars on how to trade CFDs and offering a Live Trading Simulator.

Article Source: http://www.eArticlesOnline.com

By:Nicole Anderson

Think your money is safe in the bank? Sure you know where all your money is? You may be shocked to find out that peoples stocks, bank accounts, and even safety deposit box contents are being liquidated and turned over to state and federal governments as unclaimed money. This article will tell you how to safe guard your money and see if you are owed any unclaimed money.

How Does Money Become “Unclaimed Money”

Escheat Laws are laws that require companies and financial institutions to turn over account owners money after a 3 years of inactivity and after they have not been able to contact the account owner with the contact information on file for an account.

This means peoples bank accounts are being closed, heirs are not receiving inheritance, stocks are being liquidated, safety deposit box contents are being sold all without the unclaimed money account owner even knowing it! This may have even happened to your money!

How to Protect Your Money and Accounts

There are simple administrative things you can do to ensure your money does not end up in the hands of the government listed as unclaimed money.

1. Create and keep a record of ALL companies or institutions that hold your money or pay you money.

Include the following for each record: Company Name, Phone Number and Account Number

- Banks for all checking, savings and safety deposit boxes including accounts you may have opened for your child or children
- Investment Companies
- Insurance Companies
- Employers
- Companies with which you have a pension or retirement
- Companies with which you own stock
- Information on CD's and trust funds
- Companies holding Utility deposits and escrow accounts

2. Provide a copy of this record to your executor, spouse and/or heir. This way in the unfortunate case of your death, your family will not be tasked with sorting through your records and possibly loosing money, which you intended to leave to them.

3. Make sure all institutions and companies holding or owing you money have your updated contact information.

You can do this by sending a simple letter to the companies.

Here is a sample letter. To use this letter simply copy and paste the letter into a document. Then fill in the required information and mail it to the company.

((INSERT Date))

((INSERT Company Name))
((INSERT Department You Are Contacting i.e. Customer Service))
((INSERT Company Address))
((INSERT Company City, State & Zip))


RE: Records and Information for Account # ((Insert Account Number))

To Whom It May Concern:

My name is ((INSERT Your Name Here)). I am the owner of the above referenced account.

I would like to verify the contact information on my account is correct and up to date. Please respond via letter stating the information is accurate on your records.

My current address is ((INSERT Your Current Address Here)).
My current contact phone numbers are as follows:

Home: ((INSERT HOME PHONE HERE))
Cell: ((INSERT CELL PHONE HERE))
Work: ((INSERT WORK PHONE HERE))

In case of my death I would like to ensure you have noted the money, interest and ownership of this account is transferred to ((INSERT Name of Heir)) my ((Insert Relationship to Heir, i.e. Wife or Next of Kin or Daughter, etc.)).

The contact information for ((INSERT Name of Heir)) is as follows:

Address: ((INSERT Heir’s Address))
Phone: ((INSERT Heir’s Phone Number))
Alternate Phone: ((INSERT Heir’s Alternate Phone Number))

Please let me know if you require any additional information on this account.

Sincerely,

((SIGN YOUR NAME HERE))

((TYPE YOUR NAME HERE))

4. Send this letter out each time your address or telephone number changes or in the event you would like to change your heir.

These 4 simple steps will ensure your money does not end up listed as missing money and in the hands of the government.


Are You Currently Owed Missing Money?

To check and see if you or your family has money listed as missing money you can conduct a free search in an unclaimed money database.

The search will tell you if you have unclaimed money listed in your name. You can also search the names of your family and friends.

If the search indicates you are owed missing money the site will tell you how and where to submit your claim for the money.

After claims are verified the unclaimed money check is sent usually within 2 to 16 weeks.

By Steve Selengut

The reason people assume the risks of investing in the first place is the prospect of achieving a higher rate of return than is attainable in a risk free environment'i.e., an FDIC insured bank account. Risk comes in various forms, but the average investor's primary concerns are 'credit' and 'market' risk' particularly when it comes to investing for income. Credit risk involves the ability of corporations, government entities, and even individuals, to make good on their financial commitments; market risk refers to the certainty that there will be changes in the Market Value of the selected securities. We can minimize the former by selecting only high quality (investment grade) securities and the latter by diversifying properly, understanding that Market Value changes are normal, and by having a plan of action for dealing with such fluctuations. (What does the bank do to get the amount of interest it guarantees to depositors? What does it do in response to higher or lower market interest rate expectations?)

You don't have to be a professional Investment Manager to professionally manage your investment portfolio, but you do need to have a long term plan and know something about Asset Allocation' a portfolio organization tool that is often misunderstood and almost always improperly used within the financial community. It's important to recognize, as well, that you do not need a fancy computer program or a glossy presentation with economic scenarios, inflation estimators, and stock market projections to get yourself lined up properly with your target. You need common sense, reasonable expectations, patience, discipline, soft hands, and an oversized driver. The K. I. S. S. Principle needs to be at the foundation of your Investment Plan; an emphasis on Working Capital will help you Organize, and Control your investment portfolio.

Planning for Retirement should focus on the additional income needed from the investment portfolio, and the Asset Allocation formula [relax, 8th grade math is plenty] needed for goal achievement will depend on just three variables: (1) the amount of liquid investment assets you are starting with, (2) the amount of time until retirement, and (3) the range of interest rates currently available from Investment Grade Securities. If you don't allow the 'engineer' gene to take control, this can be a fairly simple process. Even if you are young, you need to stop smoking heavily and to develop a growing stream of income' if you keep the income growing, the Market Value growth (that you are expected to worship) will take care of itself. Remember, higher Market Value may increase hat size, but it doesn't pay the bills.

First deduct any guaranteed pension income from your retirement income goal to estimate the amount needed just from the investment portfolio. Don't worry about inflation at this stage. Next, determine the total Market Value of your investment portfolios, including company plans, IRAs, H-Bonds' everything, except the house, boat, jewelry, etc. Liquid personal and retirement plan assets only. This total is then multiplied by a range of reasonable interest rates (6%, to 8% right now) and, hopefully, one of the resulting numbers will be close to the target amount you came up with a moment ago. If you are within a few years of retirement age, they better be! For certain, this process will give you a clear idea of where you stand, and that, in and of itself, is worth the effort.

Organizing the Portfolio involves deciding upon an appropriate Asset Allocation' and that requires some discussion. Asset Allocation is the most important and most frequently misunderstood concept in the investment lexicon. The most basic of the confusions is the idea that diversification and Asset Allocation are one and the same. Asset Allocation divides the investment portfolio into the two basic classes of investment securities: Stocks/Equities and Bonds/Income Securities. Most Investment Grade securities fit comfortably into one of these two classes. Diversification is a risk reduction technique that strictly controls the size of individual holdings as a percent of total assets. A second misconception describes Asset Allocation as a sophisticated technique used to soften the bottom line impact of movements in stock and bond prices, and/or a process that automatically (and foolishly) moves investment dollars from a weakening asset classification to a stronger one' a subtle "market timing" device.

Finally, the Asset Allocation Formula is often misused in an effort to superimpose a valid investment planning tool on speculative strategies that have no real merits of their own, for example: annual portfolio repositioning, market timing adjustments, and Mutual Fund shifting. The Asset Allocation formula itself is sacred, and if constructed properly, should never be altered due to conditions in either Equity or Fixed Income markets. Changes in the personal situation, goals, and objectives of the investor are the only issues that can be allowed into the Asset Allocation decision-making process.

Here are a few basic Asset Allocation Guidelines:
(1) All Asset Allocation decisions are based on the Cost Basis of the securities involved. The current Market Value may be more or less and it just doesn't matter.
(2) Any investment portfolio with a Cost Basis of $100,000 or more should have a minimum of 30% invested in Income Securities, either taxable or tax free, depending on the nature of the portfolio. Tax deferred entities (all varieties of retirement programs) should house the bulk of the Equity Investments. This rule applies from age 0 to Retirement Age - 5 years. Under age 30, it is a mistake to have too much of your portfolio in Income Securities.
(3) There are only two Asset Allocation Categories, and neither is ever described with a decimal point. All cash in the portfolio is destined for one category or the other.
(4) From Retirement Age - 5 on, the Income Allocation needs to be adjusted upward until the 'reasonable interest rate test' says that you are on target or at least in range.
(5) At retirement, between 60% and 100% of your portfolio may have to be in Income Generating Securities.

Controlling, or Implementing, the Investment Plan will be accomplished best by those who are least emotional, most decisive, naturally calm, patient, generally conservative (not politically), and self actualized. Investing is a long-term, personal, goal orientated, non- competitive, hands on, decision-making process that does not require advanced degrees or a rocket scientist IQ. In fact, being too smart can be a problem if you have a tendency to over analyze things. It is helpful to establish guidelines for selecting securities, and for disposing of them. For example, limit Equity involvement to Investment Grade, NYSE, dividend paying, profitable, and widely held companies. Don't buy any stock unless it is down at least 20% from its 52 week high, and limit individual equity holdings to less than 5% of the total portfolio. Take a reasonable profit (using 10% as a target) as frequently as possible. With a 40% Income Allocation, 40% of profits and dividends would be allocated to Income Securities.

For Fixed Income, focus on Investment Grade securities, with above average but not 'highest in class' yields. With Variable Income securities, avoid purchase near 52-week highs, and keep individual holdings well below 5%. Keep individual Preferred Stocks and Bonds well below 5% as well. Closed End Fund positions may be slightly higher than 5%, depending on type. Take a reasonable profit (more than one years' income for starters) as soon as possible. With a 60% Equity Allocation, 60% of profits and interest would be allocated to stocks.

Monitoring Investment Performance the Wall Street way is inappropriate and problematic for goal-orientated investors. It purposely focuses on short-term dislocations and uncontrollable cyclical changes, producing constant disappointment and encouraging inappropriate transactional responses to natural and harmless events. Coupled with a Media that thrives on sensationalizing anything outrageously positive or negative (Google and Enron, Peter Lynch and Martha Stewart, for example), it becomes difficult to stay the course with any plan, as environmental conditions change. First greed, then fear, new products replacing old, and always the promise of something better when, in fact, the boring and old fashioned basic investment principles still get the job done. Remember, your unhappiness is Wall Street's most coveted asset. Don't humor them, and protect yourself. Base your performance evaluation efforts on goal achievement' yours, not theirs. Here's how, based on the three basic objectives we've been talking about: Growth of Base Income, Profit Production from Trading, and Overall Growth in Working Capital.

Base Income includes the dividends and interest produced by your portfolio, without the realized capital gains that should actually be the larger number much of the time. No matter how you slice it, your long-range comfort demands regularly increasing income, and by using your total portfolio cost basis as the benchmark, it's easy to determine where to invest your accumulating cash. Since a portion of every dollar added to the portfolio is reallocated to income production, you are assured of increasing the total annually. If Market Value is used for this analysis, you could be pouring too much money into a falling stock market to the detriment of your long-range income objectives.

Profit Production is the happy face of the market value volatility that is a natural attribute of all securities. To realize a profit, you must be able to sell the securities that most investment strategists (and accountants) want you to marry up with! Successful investors learn to sell the ones they love, and the more frequently (yes, short term), the better. This is called trading, and it is not a four-letter word. When you can get yourself to the point where you think of the securities you own as high quality inventory on the shelves of your personal portfolio boutique, you have arrived. You won't see WalMart holding out for higher prices than their standard markup, and neither should you. Reduce the markup on slower movers, and sell damaged goods you've held too long at a loss if you have to, and, in the thick of it all, try to anticipate what your standard, Wall Street Account Statement is going to show you' a portfolio of equity securities that have not yet achieved their profit goals and are probably in negative Market Value territory because you've sold the winners and replaced them with new inventory' compounding the earning power! Similarly, you'll see a diversified group of income earners, chastised for following their natural tendencies (this year), at lower prices, which will help you increase your portfolio yield and overall cash flow. If you see big plus signs, you are not managing the portfolio properly.

Working Capital Growth (total portfolio cost basis) just happens, and at a rate that will be somewhere between the average return on the Income Securities in the portfolio and the total realized gain on the Equity portion of the portfolio. It will actually be higher with larger Equity allocations because frequent trading produces a higher rate of return than the more secure positions in the Income allocation. But, and this is too big a but to ignore as you approach retirement, trading profits are not guaranteed and the risk of loss (although minimized with a sensible selection process) is greater than it is with Income Securities. This is why the Asset Allocation moves from a greater to a lesser Equity percentage as you approach retirement.

So is there really such a thing as an Income Portfolio that needs to be managed? Or are we really just dealing with an investment portfolio that needs its Asset Allocation tweaked occasionally as we approach the time in life when it has to provide the yacht' and the gas money to run it? By using Cost Basis (Working Capital) as the number that needs growing, by accepting trading as an acceptable, even conservative, approach to portfolio management, and by focusing on growing income instead of ego, this whole retirement investing thing becomes significantly less scary. So now you can focus on changing the tax code, reducing health care costs, saving Social Security, and spoiling the grandchildren.

About the author:
Steve Selengut
http://www.sancoservices.com
Professional Portfolio Management since 1979
Author of: "The Brainwashing of the American Investor: The Book that Wall Street Does Not Want YOU to Read", and "A Millionaire's Secret Investment Strategy"

source:www.ezinefinder.com/