Financial Planning, Retirement Plan, 401k, Investment Blog

Financial Planning, Retirement Plan, 401k, Investment Blog

Archive for October, 2008

Bargain stocks, a good deal?

Posted October 24, 2008 by Bernz

Diving stocks are hugely tempting. Despite intense speculation and high hopes of locking in tax benefits. But watch out. Bargain stocks might not be the good deal they seem.

As put by CNBC.com, “You know when Warren Buffett starts buying stocks that we are at least within a 500-mile radius of the bottom”.

When a company is going through bankruptcy its shareholders are the last people to get paid. There is also a chance you might not get paid at all, meaning the stock you hold for that company could be completely worthless. I say “could be” because there is a chance that some pre-existing shareholders will receive some payment, but it’s a major gamble.

Friends, a smarter investment in these tumultuous times could simply be taking better care of what ever new money you have coming in. For instance a reallocation program that adjusts contributions to under-funded areas in your portfolio can keep you from locking yourself in to future losses. Talk to your financial advisor or your employer’s benefits manager about setting up a program that reallocates your new money.

And another thing: diversify. With the risks of having all your eggs placed in one basket, diversification should be among your top investment priorities. I’ve covered a few strategies that lend to automatic diversification. Click here to learn about a common way to instantly diversify your portfolio.

Posted in Investing Basics, Stock Market Investing, Stock Watch | 1 Comment »

Wacky Week on Stocks

Posted October 23, 2008 by Bernz

Before you buy T-Bills or stash cash under your bed, read this!

Copyright 2008, Amy Strycula

700, 800, 900, 400 the stock markets are going up and down like a crazy roller coaster the only problem is that this roller coaster has to do with your money. This past week we saw the stock market recover 400 points of its losses, oil dropped to $70 a barrel and there is a great deal of relief at the gas pump.

The Federal reserve, the government, and such have been busy trying to correct the economy but as credit lines are effectively frozen until the large banks regain capital and unload this sub-prime debt economic expansion is at a stand still unfortunately. Right now the best thing to do across the board is to sit on whatever investments that you have. Remember my number 1 tip, you haven’t lost money until you actually sell the investment for a lower price than you paid for it.

The 700 billion dollar bailout plan slightly pacified the market but really hasn’t had that much of an effect on the economy so far. Another bailout is in the works and a possible stimulus package from congress as well as they attempt to induce economic expansion and rescue the banks.

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Posted in Investing Strategies | 1 Comment »

Are annuities right for you?

Posted October 22, 2008 by Bernz

I saw an ad touting how annuity investments protect and guarantee retirement income for life. There are two types of annuities: fixed or variable. A fixed annuity provides a specific amount of money each month for the rest of your life. A variable annuity is either immediate or deferred.

My question is what type of individuals reap the most benefits from annuity investments, particularly given the high fees and cost associated with them.

In Mark Henrick’s article Attraction of Annuities Is in the Eye of the Beholder, I found an answer compatible to what I’d always thought: Annuities best serve people, usually in their 30’s who are looking for tax-deferred breaks and that have already maxed out their 401K and IRA contributions. And of course if you’re in a high income bracket.

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Posted in Financial Goals, Retirement Planning | 1 Comment »

It Pays to Go Green

Posted October 21, 2008 by Bernz

Who would of thought that an economic crisis would prove just how good going green can be. I’ve seen people stretch (and stress) their brain on ways to come up with ways to spend less and save more only to decide that putting their effort toward a eco-friendly life-style would prove to be smart and practical.

While we all know that carpooling and recycling helps reduce our carbon footprint and eliminate waste, there are other eco-conscious opportunities that might not be so apparent.

For instance, you might be able to qualify for a federal tax credit, which is more valuable that a standard deduction, if you make certain energy-efficient upgrades to your primary residence.

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Posted in Financial Education | No Comments »

Investing Incentives for Small Businesses

Posted October 20, 2008 by Bernz

A recent article from SMB Finance reported that nearly six out of 10 small business owners believe there aren’t enough incentives in place to help them start a 401(k). The article went on to explain that many small business owners may not be aware that in addition to receiving the tax-deferred savings that come from most retirement programs, small businesses that start a 401(k) plan can also receive annual tax credits of $500 for each of the first three years after they enroll.

My feeling is these are truly good incentives enough. But I believe the average small and home business owner—and I’m going to include mom and pop shops, independent contractors, freelancers, and sole proprietors—typically have their hands tied just dealing with everyday things to run their companies. So I think that in addition to there not being enough incentives on the table, not having enough time is major factor.

Plus, there’s still a huge perception that investing is complex and only for the very rich. Folks, this ain’t so. If you don’t understand the process of investing there is help out there. And that my friend, is the very heart and soul of this site.

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Posted in Wealth Building | 3 Comments »