Passive Income Sources (Part 2)

In this second part of 20 sources of passive income we continue with private lending. Read about Part 1 here.

Private Lending

Private lending has taken on new meaning with the Internet.  Several online services are now available to lend out private investors’ money.  You can direct your money to be distributed to those you feel are qualified within your parameters.  Simply search out person to person lending with the major Internet search engines and you will have a list to qualify organizations you can use.  Lending has not always been easy as it takes some qualification to find a trustworthy person who needs it.  The primary benefit of lending money person to person is the enhanced interest rate compared to a bank or CD.

Unit Investment Trust

As a pool of investors’ money, Unit Investment Trusts UITs are usually sold in amounts of $1,000 which pay dividends for set period time.  While holding the units, the investor or unit holders, receive dividends that can supplant a passive income.  The portfolio is unmanaged and fixed in the initial holdings of usually stocks and bonds.  While most mutual funds can be held into perpetuity, UITs have a set termination date.  At termination, the assets are sold and the proceeds are distributed to the unit holders.

Tax Liens and Notes

With a tax lien you can pursue a higher rate of return on your investment.  Your principal is usually backed by the property; however you will not usually receive the property as part of investing in a tax lien or note.  The main benefit is the high interest rate and security offered to your investment.  Some organizations hint that you will be receiving the property.  Avoid these organizations as usually the property is not part of the investment ownership.  You can invest online from almost any state, and drill down to the tax lien that best meets your needs for passive income.  As with most investments, be sure to review the deed requirements in the sale and while owning to ensure your lien, deed or note is valid.

Corporate Asset-Backed Securities

Backed by the assets of a corporation these securities provide cash flow from dividend payments to the holders.  Any type of asset a corporation has may be used in the security held by investors.  Investment banks create the asset-backed securities and sell them to the public.  After the initial offering the securities may be bought and sold in the market.

Bonds

The stereotypical bond owner, old, stodgy and afraid of the stock market is no longer the type of investor in today’s bond market.  A bond is a debt instrument issued by government or business to fund operations.  Corporations, municipalities, states, and the U.S. Government all issue bonds of varying quality.  Depending on the quality, the bond sells for an issue price and you collect interest determined by the quality and market conditions.  A bond can provide stability to an investment and also offer a consistent source of passive income.  Some bonds are available as a group of bonds in a mutual fund bond fund.  The rates of return are pursued by various institutional an individual investors as they can offer lucrative rates of return, exceeding some stock dividend returns.

Preferred Stock

Corporations issue a limited supply of preferred stock usually featuring a specific dividend rate.  Preferred stock received priority over common stock holders when dividends are distributed.  Preferred stockholders must be paid first.  Also, if the company is ever dissolved, preferred stockholders receive preference to the distribution of assets over common stockholders.  Although the dividend return may not be as high with preferred stock, the investment next egg is secured with preference in the corporate liabilities.

Income Mutual Funds

While there a variety of mutual funds traded on stock exchanges, Income mutual funds offer the best opportunity for passive income.  These funds may be described and offered as growth and income funds, value funds, or simply income funds.  Every family of mutual funds typically offers a type of income fund.  Internet websites and Morningstar provide qualified third party analysis of the performance and quality of income funds available that will help you find the highest paying fund for your passive income.  Every fund sends a prospectus with has the performance and description of the underlying pool of investments the funds hold.  Review these carefully to understand how the fund will work.

Treasury Bonds, Bills and Notes

Considered to be the most secure investment backed by the U.S. Treasury Department, Bonds, T-Bills and Notes offer consistent but low returns.  In exchange for the security backed by the U.S. Government, you will not receive a high rate of return.  You may purchase the investments through your bank, broker or directly from the Treasury Departments online service.

Music Publishing

In the music business the artist may get the glory, and money, but the publisher always gets the money.  By owning rights to a song or sheet music you as publisher get paid whenever a song is played from a recording or performed in public.  That’s right, all the radio stations, restaurants, bars, night clubs, and Internet websites that play a song you own pay you a publishing royalty.  The going rate is only 8 cents per presentation and is administered by just three organizations worldwide, ASCAP, BMI an on the Internet SoundExchange.  You need to bring your published music to the public domain by registering with these organizations to receive payment.

Royalties

Copyright

You probably know authors receive payment royalties on each book that is sold as the copyright holder.  But did you know that if you publish public domain material, no longer under copyright law, with at least 20% new material you may publish it with your own new copyright.  The hard part is marketing and selling the book.  Any work that develops into a bestseller will turn into a strong passive income for you.

Patent

A patent allows and protects your right to receive payment for an invention of a thing or process.  You will receive payment when an organization uses your patent, or when the patent sells to some other organization or individual.

License

What if you know how to do something, or about a particular process or procedure that no one else does?  You can sell this to the market as a license to use your knowledge, process or procedure.  You can research how to license your idea process at inventright.com.

That was twenty ideas for sources of passive income you can research and use in your life.  As an added bonus for making it this far here is one more passive income source not that well known but highly profitable in certain situations.

Movie Production and Other Rare Investments

If you work in an industry and have esoteric knowledge of obscure processes you might have insight to an investment that meet the needs of producers ready to move on a project.  Movies need financial backing and could turn out to be a great profit if you back a blockbuster, or not.  Think about how many movies lose money.  Other rare investments include commercials, TV shows, sports team ownership, exploration, water rights, mining leases and limited partnerships.  To benefit from these opportunities find someone with excellent knowledge in the area and with a profitable track record in the field.  Stick to what you know is a good motto.  Never invest what you can’t afford to lose.

Summary

The objective of passive income is to secure income.  Income is king, as cash flow is king.  You can’t take future income and invest it.  You can only invest the cash you have on hand today. Projected returns will not pay the bills, put food on the table, buy groceries, pay the mortgage or cover taxes.  Capital appreciation provides security knowing the money is there growing.  That helps the future.  But cash flow now is preferred, right?  Right.  Passive income comes from cash flow, from cash on hand.  The more cash available now the greater the tomorrow will be.

This article is written by Joseph Vietor.

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Passive Income Sources (Part 1)

The accumulation of riches starts with prudent use of little known methods the rich use to amass millions of dollars.  Cash is king as they say in real estate.  Wealth building uses very little effort on your part once you put any or all of these sources into place.  With these twenty sources, by using one or as many of them as you can, you can sit back and watch the money roll in with very little further effort on your part.

Passive income is the key to true wealth and a living a life of luxury.  You must generate cash flow from passive income sources or else your income will be confined to traditional ways of making money, working for it.  Work is an endless cycle that has no method to free you.  You start something different to opt in to wealth building and obtain the lifestyle you desire.

Passive Income Mail BoxConduct sufficient research to of the following investments to determine the costs associated with buying and selling the investments you choose.  Also, you will need to consider the rates of return and risk you can take with each investment.  This article will not look at the rates of return and risks.  They do fluctuate so further study is required to understand the nature of the investment that is best for you.

As in any investment, speak with qualified advisors and planners regarding your investments.  Professional advice and talking over your plan helps you consider possibilities you may not have considered.  You will protect your investing capital and right off the bat preserves it from potential loss, and leverage the maximum return.

ETF’s – Exchange Traded Funds

These funds track the price performance of the underlying commodities or index.  Funds will track the price movement of the Standard and Poor 500 Index, or the Dow Jones Indexes, or commodities such as gold, silver, copper and so on.  A popular Exchange Traded Fund is By owning an ETF you can enhance income performance by buying on margin, shorting in a down market.  Shares are traded in the same manner as stocks, being very liquid and they can be purchased in as little as one share.

Dividend Stocks

Established companies that pay regular dividends are known as Blue Chip Stocks on Wall Street.  All public companies have the option of paying dividends to their investors based on the number shares the investor owns.  Well established companies that have consistently paid higher dividends are darlings for passive income investors.  Many newer and smaller companies will reinvest their income and pay no dividend.  If a company runs into financial trouble, it may stop paying a dividend.  Investors will benefit the most from dividend paying stocks by researching to target those companies in the best position to pay high dividends on a continuous basis.

Covered Calls

You can increase the income from your stocks by selling covered calls.  If you own so many shares of a stock, you can sell the option to buy those shares you own.  You hold the stock while the buyer of your call option pays you the premium and waits to buy your stock at the price determined by the call.  If the stock price goes up the buyer might choose to buy your stock.  You sell the stock and pocket the price paid for the call.  If stock price goes down, you still own the stock, and you also keep the premium paid.  Covered calls are one type of option considered to be safe, safe enough for the IRS to allow inclusion in a 401k, even though it is in a class of riskier type investments.  It is important to research options and understand how they work to fully take advantage of this investment.

Annuities

Insurance companies sell you a contract with agreement to pay you a set amount of income over a period of time.  You pay for the annuity when you buy it.  As the insurance companies pays off the annuity your earn dividends and interest as passive income.  Annuities are considered conservative investments with conservative and consistent, stable returns.

TIPS – Treasury Inflation Protected Securities

Another conservative investment, TIPS are issued and offered by the U.S. Treasury.  The securities are indexed to the inflation rate, the pay interest every six months with principal payment at maturity.  TIPS offer a way to preserve your capital with a nominal conservative income.  As inflation eats away at other investments, the TIPS will stand fast preserving capital and paying up every six months with the adjusted interest.

REIT – Real Estate Investment Trust

This investment allows you to take partial ownership of real estate and mortgages that are owned by the Trust.  The investment trades on stock exchanges making it easily redeemable for partial or full profit.  REIT’s pass through the tax benefits of equity properties they hold or in the case of mortgages the tax deductible mortgage expenses.

Canadian Oil and Gas Trust

Canadian trusts that invest in oil and gas production possibly mining in Canada are now trading on U.S. Stock exchanges.  With the advantages of stock liquidity, the trust also passes through gains and losses similar to a REIT.  This pass through is of tax benefit.  Additionally these trusts are paying monthly dividends, some incredibly high that are a steady way to add to passive income.

MLP – Master Limited Partnership

Partnerships can be difficult to enter into because of the knowledge needed to value the investment.  Master Limited Partnership makes this as easy as buying and selling stocks.  MLPs set up fully disclosed partnerships as investment units that you can buy and sell as partnership units.  The cash flow distributions require a mastery of a seasoned advisor to find the MLP features that best meet your investment and passive income needs.

Real Estate

Some of the wealthiest individuals in the world own real estate as significant asset generating their passive income.  Big money is available from real estate as are the tax advantages provided.  Real estate leverage is unique in all investments and it give real estate a profitable advantage over other types of investments.  Many real estate wealth building programs suggest buying fixer uppers, using a flipper strategy or buying wholesale are the out-and-out best way to invest.  This may work to generate profit and build capital.  Generally speaking massive income comes from highly leveraged deals available usually in commercial property.  The best type of commercial property is by far a multiple family property.  Warehouses, office buildings, retail property also offer profitable commercial property opportunities.  The way to build a passive income with real estate requires education and knowledge.  Capital can come from your network.  With one big property you may be on the way to all you need to secure your passive income needs.

Business Ownership

You may hand off your business to someone else to run.  Outsourcing work to a business creates high profit in your business and frees you from the 9-5 schedule and liberates you from getting caught up in the details.  You may need to work hard to build up the business.  The faster you can hand over your business day to day operations the better for making the passive income grow in your life.  A few books that help explore business ownership and passive income are The E-Myth Revisited by Michael Gerber, and The Four Hour Workweek by Timothy Ferris.

Look for part two of this article to continue with additional sources of passive income.  The next passive source of income covered is Private Lending.

This article is written by Joseph Vietor.

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Six Ways To Utilize Your Money

Today, a huge quality of knowledge has been provided to the people in order they can get benefit from such information which are related to how the investments are managed. In my whole career I have gone through many areas of the financial services so with the experience I would explain here some general reality.

The basic ways are as follows:

Basic #1:
Investment Goals

Before investing your money on anything you need to try to set a target for your goal which enables you to achieve your goal. Like whether the money is for your retirement? For future plans? Or to change your career which requires money. You should plan a goal that for what purpose you exactly needed the money.

If the stock market the source of investing money so you need to end it up with in two years so that you can take all the money and then start up your own business which is very risky. I think the stock market is not for the people who want to invest less amount or gamblers.

Tip #2:
spread, spread, spread

The key is known to be diversification. It can be very dangerous if you just bet on one stake whole your important things. Another risk factor can also be if you charge any small company stock or different stocks of only US companies or the other stocks.

The main thing which is important is your investment allocation. You know when we talk about investing money, many ideas comes in our mind which brings another topic in it which we start considering.

Rule#3
rebalance your collection

To rebalance your allocation is the best way to overall investment success which should be done in your collections. You will have to take more risk in it, for example if your stock is 65%, bonds are 30% and cash is 5% so just if after an year by the help of market movement, your collection will be having stock of 75%, bonds of 20% and cash the same 5%.this can be more dangerous than you agreed and is easy with it.

Like if your collection has 55% stocks, 5% cash and 40% bonds then your investment made will be more conservative which should meet the criteria which was set by you in the start.

Fundamental #4:
What It’s figuring You To Invest?

How your money is cost by this criterion? A commission is charged to you when you buy any stock. The dealer usually performs the work of a shop keeper who usually buys the things at wholesale and sells them at retail price. This will provide benefit to the dealer. The cost is attached to all types of investments which have been made.

To get the things out of complication, there is no other way then investing in this regard. For some investors, stocks may be the right choice. Some will also prefer the funds which makes more comfortable to them.

Basic #5:
Don’t Forget Taxes

Why the people forget about the taxes? I always make people remind about the taxes that it is important for them. The taxes can influence your overall success. The money which is taken as taxes are never paid you back which is great loss of your money. But on the other hand it is important to pay taxes.

Your tax is claimed on every profit which you get on the taxable accounts where there are save after tax dollars. No matter you are on the criteria of the capital gain, you still need to pay the taxes. For instance, the mutual fund which is sold by you contains profit in it so the cash of deducted as a sale in the whole year

You can have many dollars and saving you can say by just being diligent in this respect. Just keep this thing clear that your taxes are effectively managed by your investment advisors.

Fundamental #6:
Is Your savings plan in position With You and Your standards?

To design any investment strategy is the most important thing we need to do which is related to you and your values. Some people plan is to look after their parents or there education, so what are your basic plans for this? But you should keep in mind to educate yourself is the duty of your parents. Many people I must say parents sacrifice their needs and educate their kids. They forget their basic plans which are important for them. But still basic plans must be made so that you can know that whether it is suitable for you or not.

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Real Estate- Source of Wealth

The financial independence is considered to be the key component when we talk about searching for wealth. How can we get the financial independence? It is very easy and which we think about different concepts. It is more than that the portfolio used which are more than the expenses. The investment should be done on this when we search about the key.

The stock market is also one of the way, in which many people like to get and do business. This can help you to improve your situation and it can solve many problems as well. With real estate, the stocks can just not be kept. You can even get more money when you invest and buy a real estate purchase. It can be sold on much more price as compared to the p[rice you have bought. For instance, you get the property of $250,000 when it is of the value $400,000.

Leverage is considered to be the best reasons when you invest in the real estate. When you buy with stocks, it is the same $200,000 worth of stocks. No profit no loss. But when you get this with the real estate so it can give you profit which can be more than $1000, 00 when buying $250,000. There will be return on your stock if you increase the rate to 10%and more than 50% return when the money is being saved by the real estate.

 

If you desire to take full liberty to get your future secure you can just increase and get back your real estate investment. The value of the property you are selling can be increase if you put some money on that property by getting it renovated. When we see the stock rates so we can never predict the stock rates that whether they are high or low. The property can also be divided which can help in more investment by increasing the rent and value of the property.

With real estate, you can easily get a good offer. For motivated sellers, it’s important for you to keep an eye. You can get a great deal if you buy a property from a dealer who actually wants to unload the property. You can get better deal if you work on it with co operation.

When buying any property, keep in mind that you don’t need to get emotional in it. This is just a way to earn not a purpose that helps you to increase your family. Don’t love the property but the deal can impress you. Keep in mind; it can give you good feedback.

The best way to get benefit in the real estate is to invest on it and get benefits which do not require giving the taxes. You can claim the tax form of 1031 Tax Deferred Exchange so that you can get more investments by real estate. You can increase your collection by this. These collections do not contain taxes in it.

I think real estate is the best way to get true wealth and keep the money save which every one wants to do today for building financial collection and to make your future secure.

This article is written by Joseph Vietor.

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Retirement Planning: Building Wealth and Saving Money

Retirement PlanBy developing a retirement plan, you’ll be enabling yourself to build your wealth and save money long after you’ve stopped working. When you first create your retirement plan, be sure to take into account risk, pensions, investments, work benefits and your strategies for estate planning, succession planning, tax planning and insurance planning. If you have business interests, it’s also a good idea to consider how profit sharing will fit into your plan. This will help you clarify how much you need to save and how much you want to invest.

Start Saving Early

To be able to save money in your retirement, you need to start saving money before you retire. Although you may feel like you’re depriving yourself of certain luxuries by setting aside an amount of money each month for your savings account, what you’re actually doing is guaranteeing yourself a certain type of lifestyle in the long-term. By building your savings now, you’re building your future wealth. By the time you retire, you’ll already have a lump sum in the bank to spend exactly how you please, on whatever luxuries you like. Start saving as early as possible and motivate yourself by reminding yourself regularly that, thanks to compounding interest, you’re making yourself rich just by letting your money sit a savings account. The earlier you start saving, the less costly it will be to do so.

Make Use of Your Provident Fund

If you’re fortunate enough to have a provident fund, you need to recognize that it represents a very lucrative opportunity for retirement planning. Keep paying in your monthly contributions so money keeps being allocated into your retirement account, as well as your other provident fund accounts. Just one benefit of a provident fund is the minimum risk-free interest guaranteed by the government. Whatever happens with the economy, you know that the money you’ve paid into the fund will continue to accumulate a certain amount of interest. When it’s time for you retire, you’ll be provided with a steady monthly income thanks to the provident fund. You may also choose to withdraw part of your savings as a lump sum or buy life annuities to guarantee yourself an income for life.

Explore IRA Investment Options

Look into the individual retirement account (IRA) opportunities that are available to you. Although you may think that you have to invest your IRA funds in stocks, bonds or mutual funds, this is not the case at all. Consider alternative approaches such as real estate investing or buying precious metal. You don’t have to invest all your funds in such nontraditional asset classes, but it’s worth investing at least some of your money in these avenues, if only for the sake of diversification. Before you invest your IRA funds in the assets of your choosing, however, be aware that wherever there is potential reward, there is also potential risk, especially in the case of the more unusual investment vehicles.

Delay Your Retirement

If you want to carry on working past your planned retirement age, there’s no reason why you shouldn’t, especially if it’ll benefit you financially. There are many potential financial benefits of delaying your retirement, and doing so may well help you save even more money and become even wealthier post-retirement. By working for longer, you’ll be able to make more contributions to your provident fund and you’ll also cut down the period of time over which you have to rely on your retirement assets. Of course, many people are forced into retirement by poor health, so it’s important to pay close attention to your health and maintain it as best you can so that you can continue to work for as long as you to. Being able to retire when you want and on your terms may well be beneficial to your overall retirement planning.

Even if retirement planning seems like an overwhelming task, there are plenty of tools, resources and advisors out there to help you on your way. It really is worth taking retirement planning seriously, as a solid retirement plan will increase the likelihood you enjoying a safe and happy retirement. There’s no better way to end your working life than with complete peace in mind and a feeling of excitement for what lies ahead.

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Step by Step to Financial Freedom by Investing

Whatever financial freedom means to you, you can achieve it by investing your money in the right way and in right types of asset. Whether you’re looking to move out of your parents’ home, travel the world or start your business, building a portfolio of assets based on a solid investing policy is the way to go. Follow our simple step by step guide and you’ll soon be experiencing financial freedom all thanks to your wise investments.

Make a Plan

Planning For FreedomBefore you start investing your money in various assets, plan how you’re going to do it. By writing out a plan complete with rules and guidelines, you’re likely to be a more disciplined—and therefore more successful—investor. For example, by planning in advance how you’re going to react to certain situations and challenges, you’ll keep yourself from changing course when the market gets volatile and the going gets tough. As part of your investment plan, you should specify what ratio of stocks to fixed-income investments your portfolio will maintain. Use factors such as your time horizon and your risk tolerance to determine what this ratio should be. The plan should also include expected annual returns for your portfolio and the volatility expected for the portfolio.

Choose the Right Investments

Financial Freedom AdviseIt’s now time to decide what kinds of asset you’re going to invest your money in. Take your time in choosing asset classes and choose them very wisely, as the difference between making the right and wrong choices can be the difference between acquiring total financial freedom and not acquiring any at all. The investments that are right for you will depend on how much money you have for the purposes of investing, the length of time you want to invest for, how much flexibility you have and what you’re planning to use your profits for. Even factors such as your age can influence which investments you should go for—the older you are, the less sensible it may be to go for longer term, higher risk investment options. Read “Safety and Income: The Real Assets” for different investments assets class.

Start Small

When you start investing your money, don’t feel like you have to invest huge amounts of cash at a time. Even if you just invest a few dollars at a time, your portfolio will continue to grow steadily and securely. Over time, you’ll attain a financial freedom based upon the cumulative effect of all these small investments. Think of it as being a case of each dollar you invest symbolizing one more little bit of freedom. No matter how small your initial investment, it’ll be working away for you even while you sleep, just by the very nature of it being an investment.

Buy When No-one Else is

One way of investing a small amount of money in something that will yield a large amount of profit is to invest in a type of asset when it’s ‘on sale’. In investment terms, buying something when it’s on sale means buying it at a time when no-one else is buying it. For example, buy a collectible such as art when it’s a buyer’s market. More specifically, different types of art are popular with investors at different times. If , for instance, you buy Monet prints at a time when German sculptures are more en vogue in investment circles, you could find yourself laughing all the way to the bank once demand for the prints starts to soar again. Buy something when people are desperate to sell it and sell it when people are desperate to buy it.

Hold On

When the investment vehicles you’ve chosen to put your money in get volatile, hold on tight. Refer back to your investment plan, which, as you’ll remember, is designed to keep you on course even in volatile times. Although it’s tempting to bail when you see the value of your assets fall drastically, remember that you knew what you were getting into and that you planned a strategy for reacting to this sort of thing. Stick to your strategy instead of making knee-jerk reactions—you’ll thank yourself in the long run.

Investing smartly in diverse asset classes is the most effective way to make money grow and gain the financial freedom you crave. This freedom to do whatever you want with the kind of money you’ve always dreamed of is just a few short steps away.

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How to Save Money During a Recession

Saving on Piggy BankThe dreaded word recession overcomes people with terrible visions of the shrinking dollar’s value, bad personal finances, and the cost of living increases showing up in bills and other expenses.  Is it possible to save money during a recession?  Yes, of course, with a few creative tips and a wise approach you can.  Here are some ways.

Don’t Buy it if You Can’t Afford it.

A general rule of thumb is if you can’t afford it don’t buy it.  There’s probably a very nice bed that you’ve had your eye on for some time.  But if you have to dip into a credit card just make the down payment, stop right there and save yourself the time and money.

Budget, Bargains and Bulk

Setup a budget of weekly or monthly spending.  You can save money during a recession by disciplining yourself and learning to discipline your family.  If you overshoot your budget you have to have a good reason for going over.

Look for bargains and discounts.  Look for sale prices in stores.  You will save a lot of money if you use their sale price instead of buying at regular prices.  Don’t be shy to use coupons that save you money, from store newspaper ads.  Ask for alternatives to save money.  Every dollar you do not spend is one that you save.

Buy in bulk to save money on regularly used items in your house.  You will save money in the long run.

Prevent Waste of Resources that Cost You

If there are appliances in your home that are running unnecessarily or in need of repair take care of them to insure they are not draining away savings with unneeded monthly bill.  Check for any repairs that could affect any of the monthly bills.  Review subscriptions to newspapers, magazines, memberships, website fees, cable and so on, that are not absolutely needed to save money.  Any careful effort will pay off in the long run and do wonders to protect earnings in a recession.

Plan Your Purchases

Finally, think ahead in the week to eliminate the danger of overspending and impulse buying.  Plan out a week or so of how you will proceed to purchase, and what you will buy to save money.  Why not plan for sales you know about in grocery stores and put it into your menu for the week?  Try to look at the bigger picture when determining your needs.

Earn Extra Income

In times of a recession don’t wait for the savings to come to you.  Sometimes your efforts won’t be enough and your income isn’t enough to provide for all the expenses.  Take control with new ways of earning income.  Maybe asking for a promotion and pay raise will help in this area.  Rather than wait for a pending advancement, work extra hours, start with a part time job or offer your skills as a freelancer.

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Safety and Income: The Real Assets

Nowadays, it’s important to have a portfolio that’s as diverse as possible, if you want genuine security and regular income from your investments. This is as good a reason as any to look into investing in collectibles such as art, real estate and precious metals. Unlike a cash savings account, you can’t just dip into these assets as and when you please, meaning they’ll still be there when you really need them. The current store of value of each of these investment vehicles makes them well worth looking into.

Art

Art As InvestmentInvestment-grade art is such a safe asset to have because it’s guaranteed to grow in value. In fact, the dependability of art as an investment has been vindicated by history—it’s always provided security to investors throughout Europe, Asia and the Middle East. There is a reason why experts throughout the centuries have considered this type of collectible to be an important and valuable asset. As time has gone by, art has transformed itself from a hobby for the wealthy to a serious investment vehicle. Although the art market initially saw a fall during the peak of the 2008-2009 financial crisis, it has recently experienced something of a renaissance, with international art sales beginning to increase on an annual basis. Art is fast becoming one of the most popular alternative asset classes amongst investors from all kinds of backgrounds.

If you don’t know a lot about the art market yourself, consider consulting a knowledgeable advisor on what pieces to invest in. More and more wealth managers are putting time and effort into financially based art market analysis because they’re realizing how beneficial art investing can be to their clients’ portfolios. One reason why investment experts are waking up to the significance of art as a collectible is because it has been performing relatively well, despite the currently uncertain global economy. There’s no denying that art at the moment is very attractive. Good art has always been visually appealing but now it’s just as appealing as an asset.

Real Estate

Real Estate As InvestmentMore and more people are choosing to invest in real estate rather than the stock market or interest bearing notes. There are many good reasons for this. Real estate generally has a high appreciation rate as there’s only a limited amount of it and it’s difficult to add to that amount by building new properties. With the global population continuing to rise at an astonishing rate, property is increasingly in great demand and will be for the foreseeable future. Although people in need of housing could always build their own, it’s much easier and cheaper to just buy existing property. Therefore real estate is one asset that will always be relatively easy to sell, meaning its value is only likely to go in one direction, and that’s up.

Even if choose not to sell it, real estate can still be a source of income—in fact, it can be a source of regular income. If you rent out your properties, you’ll receive rental income on a weekly or monthly basis. Charging a rent that exceeds the expenses of maintaining your own property means that you’ll have a positive cash flow to play with. Just like the actual value of the property, rents typically go up over time, whilst your expenses should stay roughly the same. This means the longer you rent the property out, the more your positive cash flow will increase over time. Thus, real estate investment has a growth component that many other kinds of investment simply don’t have.

Precious Metals

Precious Metal As InvestmentThere is a reason why certain metals are referred to as ‘precious’. Gold has long been seen as a symbol of wealth, but other metals such as silver, platinum and palladium are also worth investing in. Gold has never been and will never be valued at zero and, in the current climate, it’s unlikely that other precious metals will lose absolutely all their value anytime soon. As metals retain a certain intrinsic value regardless of economic conditions, it’s definitely worth keeping them in your portfolio during the current weak economy.

The four metals we’ve mentioned have all risen in price in recent times and this trend looks set to continue as demand for precious metals continues to intensify worldwide. Demand is not only driven by the need to mint coins and make jewelry but also by industrial motivations. Precious metals have many industrial purposes, such as electronics manufacturing, the production of computer and automotive equipment, soldering and gliding. The chemical industry is heavily dependent on platinum in particular, as that is the metal that can be used as a catalyst to accelerate chemical reactions.

With all the asset classes we’ve mentioned here, it only takes some simple research to uncover why they are worth investing in. Diversifying your portfolio with these types of collectible is very likely to give you both safety and income in both the short and long term.

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Evidence of a Gold Scam

A few years ago, a young mother named Sandy decided to sell her old but valuable gold necklaces and earrings online. She found a company that guarantee to buy them at high prices and immediately packaged the jewelries and sent them through mail. Little did she know she was being scammed by an unknown company she thought was trustworthy. When she received a $10 check in her mail, she did confirm to herself that she was misled. Ashamed of her experience, she was never able to complain about this.

Scam ImageThis is an example of the famous “gold scam”. Sometimes, we become so desperate to make more money that we tend to overlook the possibility that there are people out there who take advantage of our urgent need for cash. So just to be sure to avoid being scammed like Sandy, here are some important reminders before selling our gold.

How to sell our Gold to Legitimate dealers

1. Always check customer feedbacks. Through this you can see how the gold buyer attends to their clients and make sure that they are satisfied.

2. Don’t forget the word “research”. It’s just a few minutes of looking up your potential trader in the internet to do a little background check.

3. Inquire through the company’s hotline or customer service to check on details and ask important queries about your trade. A representative should always be able to answer topics concerning gold scams and cash for gold frauds. Take note of the company’s policies regarding money back and returns.

Gold trading scams are becoming widespread these days. Many people still stand innocent about these kinds of rip-offs that they become victims to them. That is why consumers must be aware and be responsible enough to avoid being preys. Here are some additional keywords for your research before closing a trade.

  1. Buying gold scam
  2. Gold scams
  3. Gold bar scams
  4. Buying gold coins
  5. Gold scamming
  6. Gold party scam

Gold should only be controlled by a precious metals broker, thus listings like gold bullion buying or selling is definitely a scam. By doing a thorough research, the buyer or seller can be informed before dealing a transaction. The famous gold envelope scam might be a bit confusing regarding its authenticity because of customer feedbacks.

Amidst all these, consumers still have a guarantee that they can avoid scams. There are companies that are dedicated to excellent customer service and are really in the legitimate field of gold buying. Your chosen company’s representatives are surely going to be there for you every day to attend to queries and step by step information about the process. Surely, a website will give complete information that would educate potential traders, thus avoiding gold scams.

These kinds of companies offer services that would take care of your old jewelry with honesty. You can contact them over their hotline to be able to request a free envelope for your pieces of jewelry that you would send through the courier of your choice. Usually packages are insured by a certain amount but if you feel that your pieces are of more value, there are options for higher insurance for your protection.

When your chosen company receives your gold, they keep evidence through photographing your pieces and meticulously verify the gold content. The value of each item is derived by carefully weighing the material and calculating the present worth of gold at the time it would be traded. A check is then mailed to you after completing the process. As per choice, the check may also be deposited through a verified institution.

There are also companies that would rather resell your pieces at a lower price rather than melting them down. This may help preserve the value of the jewelry.

A number of legitimate companies have already satisfied consumers. They have guaranteed them that if one feel that the items weren’t fairly valued; the company would immediately return the items after a refund has been made.

Remember, before committing your valued items of jewelry to a buyer, do research and review the company’s feedbacks. Scammers may be very hard to detect but we still have a number of ways to avoid them. Happy gold selling and we sincerely hope that the cash you receive from your gold is worth it!

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