5 Reasons To Choose Foreclosure Homes For Investments…

There are plenty of opportunities for people to invest, even when economic times can be hard. Those who have money during rough economic periods have the most to gain, as they can find investments for prices that are lower than they would be in any other economic climate.

Foreclosed homes are one of the best investments that many can make. Beautiful, expensive homes can be found in amazing neighborhoods for incredibly low prices. While the housing market may not boom for a few years, those who have invested in these homes will be able to sell for an incredible gain the minute that they do.

If you are looking for an investment to make, you should choose foreclosure homes for investments. While there are multiple reasons to do so, these 5 reasons show the obvious benefits of foreclosed homes for investors.

Low Cost

If you are looking to invest in something, you want to know that you are going to get a large return on that investment. You can be sure that you will eventually see high financial returns when you purchase a foreclosed home. You are purchasing a home for less than the perceived value of the home. If and when home prices rise again, you will see the full benefits of your investment because of the low cost of the foreclosed home.

Simple Sales

If you are looking to make your investments simple and easy, you will benefit from a foreclosed home. You may choose to file for your loan through the bank that is offering the foreclosed home. This helps to streamline your purchasing process, making your overall investment a smooth and simple transaction.

Renovation Possibilities

If you are thinking about a foreclosed home as an investment tool, you are going to want to think about improvements. The benefits of the low-cost of the foreclosure can help you to save money for renovations.

Buyers Market

If you are in a buyerÕs market, you are in luck. When the market is a ÒbuyerÕs marketÓ, it means that the buyers have all of the leverage in terms of bargaining power and competition. Homes are offered at lower prices, and are sold at lower prices, because of the lack of people actually purchasing homes in the current market. The lower the demand, the lower the cost.

Rental Possibilities
Investors are looking rental opportunities square in the eye when they look into foreclosed homes. Rental properties are perfect in a down market, as individuals are more likely to rent a property than buy a property. You can easily see revenue when you purchase a home and rent it out to other individuals.

Rough economic settings are not favorable or enjoyable, but should still be exploited for their investment possibilities. If you have set yourself up financially to invest during a time of economic decline, you should choose foreclosure homes for investments. While you may not see a return on your investment for a few years, you can know that you will eventually see a positive return.

Different Ways Of Investing Money…

Before you jump into any forms of investing money, it’s important that you understand your own risk tolerance levels and your own personal financial situation.

Some investors are happy to receive low returns on a regular basis simply because they are guaranteed returns. Other investors prefer to take slightly higher risks in an effort to earn higher-than-average returns on their money.

There are so many different ways of investing money that it’s impossible to say which one is the best option and which is the worst. What matters is that you try to find the options that best suit your own financial situation and your own financial goals.

Let’s look at some different ways of investing money.

Cash Deposits and Term Deposits

Leaving your money sitting in a bank’s term deposit account might earn you some interest on your money, but the returns will be lower than some other options. However, a low return is sometimes better than taking a risk of losing your money on other investment options!

Mutual Funds

A mutual fund is a collective investment where the funds from lots of investors is pooled together to invest in various securities. Fund managers control the investments and trading activities, attempting to derive returns for the fund’s investors.

Bonds

Bonds are a security where the issuer owes the investor a debt. The bond holder is able to invest in various companies or even in federal government bonds. Bonds are considered quite low-risk investments by some investors.

Residential Real Estate

There are many different ways to invest in real estate. Investors can either buy property with the intention of generating rental income or hang on to the property over a period of time hoping their capital value increases. Investors can also buy and renovate or otherwise improve it with the intention of generating capital growth, or perhaps buying property for the purpose of redeveloping it.

Commercial Real Estate

Investors in commercial real estate generally purchase large commercial properties, such as shopping malls or office buildings, and lease them out to companies at a profit.

Stock Market

Investing in the stock market involves buying shares, or stocks, of large, publicly listed companies. Day traders buy and sell stocks rapidly, hoping to capture some of the short term gains. Long term investors will buy shares to form an investment portfolio, either to reap the dividend income or to reinvest the dividend returns back into share reallocation to increase the portfolio further.

Gold and Silver

Investing in gold or silver doesn’t always mean owning big bars of shiny metal and hiding them in your closet. Ownership can actually be verified and transferred via certificates or shares. However, Swiss banks may allow some customers to hold gold accounts in order to conduct transactions using precious metal as currency.

Foreign Currency Exchange

Investing in the forex market is probably best left to investors who understand how this volatile market works. Essentially, you trade an amount of one currency for another country’s currency. When the value changes, you exchange your currency back again, hopefully realizing a gain once the transaction is complete. It is possible to make substantial gains by trading on the forex market, it’s equally possible to realize large losses too. It’s also worth noting that in some countries, profits generating by trading on the forex market are capital gains tax free.

These are just a few different ways of investing money. Before jumping into any investment, always be sure it is in line with your own personal level ofo risk tolerance. You should also be sure that your investment choices are also in line with your own financial goals.

Borrowing Money From Your 401K – Only In Emergency’s…

Sometimes you really just find yourself needing some money. Unexpected events such as a car breakdown can put a damper in your budget no matter how well you plan. In situations where you need money and need it quick, you can look into Borrowing money from your 401 K. Typically, when someone makes a 401k plan they do not expect to take any money out of it until it has grown and matured.

But life does not always go the way we hope and sometimes we need to delve into whatever source of money we can find, and sometimes that means taking money from our 401k. This has been thought of and that is why most 401k plans will actually have that type of loan available.

While taking a loan from your 401k can often make the difference between paying off a bill and falling further into debt, there are risks involved. If you do not handle the loan carefully you can not only run the risk of having to pay much more down the road, but you also run the risk of ruining your 401k.

Not all 401k plans are the same and so there is no universal method for getting money out of them. You need to check into the specific plan you have and find out what restrictions apply when Borrowing money from your 401 K. For most plans they will require that you borrow a minimum amount of money, usually anywhere from five hundred to a thousand dollars. They often will also have a maximum amount that you can borrow, usually around fifty thousand dollars. However, again, every plan is different so you will need to look and see whether this applies to you or not.

While taking money from your 401k plan may be a life saver, you may not be able to. While most plans are different, there are usually similarities in the form of requirements. Most plans will not let you borrow money from them unless you can meet the requirements they put in place. If you do not meet these requirements they will not lend you the money. So this is another reason for why you should look over your plan carefully and read the fine print so that you are properly educated.

Like most loans, a loan from your 401k will have a set repayment plan that you will have to adhere to. This can be anywhere from 5 to 15 years depending on what type of loan you took out and what type of plan you are on. The nice thing about Borrowing money from your 401 K is that, while you of course have to pay it back, the interest rates are fairly low and are actually put back into your 401k.

While taking a loan from your 401k is a good option, there are some additional fees that you may have to pay. Such as yearly fees or fees if you miss a payment. If your company has someone who manages 401k plans you should talk to them in case you have any questions.

How Do I Start Investing – A Quick Guide…

“How do I start investing?” is one of the most common questions that new investors ask. They know having investments for a better future is a good idea but what they really want answered is “how do I start?”. Investing like anything else is a skill which has to be learned and the good news is that there are plenty of opportunities to learn it.

To begin with it’s a good idea to have a plan. Your plan should cover exactly what it is you are investing for. Ok you know you want to invest for the future but exactly when in the future? If you’re in college and wanting the cash in a few years to buy a place to live that will be different from someone who is middle aged and going to start investing for retirement.

A second aspect needs to address whether you will make regular set payments or if you’re just planning to put in lumps of cash whenever you can afford it. It’s usually a better idea to start by saving regular monthly amounts as it gets you into the rhythm of saving and pretty soon you will find that you don’t really notice the amounts going out each month.

Whatever type of investment you decide on ensure that it suits your personality in terms of risk. If you hate anything risky then ultra high risk bond markets are definitely not for you! Go for something that will get you the returns you are after but which also let you sleep at night.

The next point we need to look at is whether you will be making your own decisions on where to invest or getting a professional in to do the job for you. If you are planning to invest in the stock market you will need some serious knowledge of how to select stocks before jumping in. However if you choose to use a financial professional then you just need to make some enquiries to ascertain their track record.

Don’t assume that because they are a professional that they know everything about each different aspect of investing. Whichever type of investment you are considering make sure they have a proven track record in that particular field. Ask around family and friends and check with the Better Business Bureau. Remember a specialist will usually have much greater success than a general practitioner.

If you address all these points you will very quickly find you have the answer to the question “how do I start investing?”

Best Interest Rates…

No matter where you are in your financial life, getting a handle on your finances can be the best thing you do. One of the first things many people like to do to get a handle on their finances is to start saving more. There are several methods to save and all of them involve finding the best interest rates.

If you choose to just open a passbook savings account at your local bank or credit union or if you prefer to invest in a short or long term certificate of deposit (CD) you should know just what the best interest rates are so you know where to invest your money.

When it comes to opening a CD or savings account, the interest rate is very important, but it isn’t the only thing you should consider.

Especially with a CD, you need to be careful. You see with a cd you have to keep the money in the account for the full length of the term. If you take the money out early you will lose a big chunk of the interest you have earned, maybe all the interest you have earned.

That will not help you achieve your financial goals. Instead take your goals into consideration prior to opening your account.

If you know that you have something you will need the money for in one year, you don’t want to put your money into a cd that has a term of 5 years.

Sounds obvious, I know, but many people get so focused on the amount of the interest rate that they overlook this very important point.

If you are opening a savings account, you have some things to consider as well. While most savings accounts will offer you a lot more flexibility in getting to your money, you still may have some restrictions.

Many savings accounts limit the number of withdrawals you can have in a month. If you go over that amount you will be charged a fee.

Also remember that some banks and credit unions will consider your credit score when you are trying to open an account. If you have a bad credit score you may not even be able to open an account.

Though, you don’t need to freak out. Many banks do not consider this so you should be able to find a bank that will still allow you to open an account with a bad credit score.

With a savings account you will earn less interest than you would with a cd, in most cases, but you can get to your money more easily.

It really just depends on you and your needs as to which type of account will be best for you. Cd’s typically offer a lot higher interest but much less liquidity. Savings accounts will give you more liquidity but you will earn less.

Keep these tips in mind and they will help you find the best interest rates and best type of account for you.

First Time Investing – Smart Investing Not Only For The Rich…

The richest people in the world make their money in a variety of ways; however, one of the primary things they all have in common is making smart investments. Now, you don’t have to have a lot of money to invest, but you do need to be willing to put some of your money to work for you. First time investing tends to make people somewhat nervous, but that doesn’t have to be the case.

Relax and take your time to decide what type of investing you want to do. To do this you have to know exactly what your financial goals are. After all, if you don’t know where you want to end up, then you won’t have any idea of where to start. So don’t rush into making an investment just for the sake of making one, but rather as a means to reaching a goal.

Once you have an idea of where you want to end up, first time investing simply requires that you make an overall plan. This isn’t as hard as it sounds. You already know your starting point that, and have some idea of where you want to end up, and making a plan is simply filling in the gap between those two points.

Consider how much you have to invest right now, and how much you will be able to contribute to your investments on an ongoing basis. The more you put in earlier, the better because of the power of compound interest. This will give your money more time to work for you. Consistently adding to your investment total is a good habit and will give you a much bigger payoff when all is said and done.

Another thing you have to consider before investing is how much time you have before you need to start collecting on your investments. If you are only in your 20s, then you have plenty of time (though you should get started as soon as possible) to allow your portfolio to mature. However, if you are in your 50s or older and approaching retirement, then your investment strategy as a first time investor will be much different.

Time is not the only thing you have to think about though. You also need to have an idea of how much risk you can tolerate. No matter what anybody tells you, all investments come with some risk. Of course, some are more risky than others, but those are also the ones that have the potential of a higher payout. Regardless, you need to have investments that you’re comfortable with and make sense for you and your situation.

There is no doubt that first time investing can make people nervous. But there are professionals out there that can help you along the way. However, you should be well-prepared before you talk to them. Remember, it’s your money and your future, so it may as well be a prosperous one.

Budget Tips For The Single Parent – Raising Children Single…

Raising children can be challenging, period. Raising children on your own will be even more of a challenge. Much of that challenge comes from the fact that single parents are often women who are unemployed or underemployed. Here are some budget tips for the single parent.

No matter what your financial situation is having a budget is a good idea, but when you are very limited on income a budget is a necessity.

These budget tips for the single parent can help you get started:

1. Take full advantage of all the resources that are out there. Many states offer a lot of help to single mothers and their children.

Just ask around at your local social services office for recommendations on what services you qualify for.

And don’t feel uncomfortable asking either, that’s what these services are there for.

Someday you can be the one who helps out a single parent!

2. Save as much money as you can when you go shopping; make lists, cut coupons, etc.

If you can, find stores that sell off brand items at lower prices.

I recently read an article about people who go to stores that sell outdated merchandise for a fraction of what they sold for originally.

Even though these items had gone past their “use by” date they were still good to eat.

And, if you’re really in a bind try your local food pantry.

3. If possible, join a warehouse type store that allows you to buy in bulk and stock up. I do that myself.

I try to go once a month and stock up on toilet paper, meat, frozen foods, etc.

I do spend more on that one trip but throughout the course of the month I save a lot.

Plus, I only have to go out and buy groceries once or twice a month to get fresh fruits, vegetables and milk.

4. Be honest with yourself and find what things you can cut down on or cut out of your monthly budget altogether.

Many of us waste more money during the course of the month then we like to admit.

Write down all your monthly bills and then take a long honest look at things you can cut back on.

For example, do you eat out or get a coffee everyday? If so, that may be something you can cut back on.

I don’t think you should cut it out completely since we all need those little perks every now and then, but you may be able to cut way back and save a lot of money without too much “hardship”.

If you have a car you can shop around for car insurance. And don’t skimp out on maintenance, even if you have to do it yourself.

I had a friend who thought she couldn’t “afford” to have her oil changed.

The problem was that it went bad and it ruined her whole engine. Her car basically had to be totaled.

5. You can, and should, learn to do more things on your own.

Before you pick up the phone to call someone try to find the information yourself.

There are many common household and automotive repairs that are very easy to do and it will cost you a fraction of the money you would pay if you hired someone since the labor is almost always the highest part of the cost.

I hope these budget tips for the single parent have helped.

Professionals In Retirement Planning – Take Control Of Your Finances…

The good news about the current economic meltdown is that it seems people are taking more control over their financial futures. One sign of that is the increased due diligence when looking for someone to invest your money. Finding professionals in retirement planning is the first, and most important, step in your financial planning.

Professionals in retirement planning are everywhere so it can be difficult to decide which one is the best fit for you.

In this article I will provide you with some basic guidelines you can use to determine which professional you should be working with.

Here are some questions you need to have answered before you settle on the person to help guide your financial future:

1. Find out how a professional adviser actually makes their money. There are 3 compensation methods:

Fee only compensation – this is the model that best ensures there is no conflict of interest since your adviser gets paid a set fee rather than a commission, they are being paid for their advise.

Since they don’t rely on commissions for their pay, they won’t feel the pressure to encourage you to buy or sell financial products so they can make more money.

Fee Based: This is kind of a hybrid between fee only and commission. The planner will get a set fee but may also receive some of their compensation through commissions.

They aren’t legally required to tell you how they receive their compensation either.

Commissions: this type of planner is really more of a broker and they only make money when you buy or sell a financial product at their recommendation.

While many of these planners are capable and honest, this type of compensation is open to possible abuses and conflicts of interest.

2. Finding a planner with a fiduciary responsibility. That means that the person you hire is required, by law, to only work in your best interest.

This can help ensure that you are being provided with the best advice for you, rather than the best advice for the individual planner or their company.

Not all financial planners are fiduciaries. Only financial planners that are Registered Financial Advisors (RIA) are held to a fiduciary standard by federal and state law.

Most financial planners are really just brokers/dealers and are not held to the same standard when it comes to looking out for their clients best interest.

As a matter of fact, if you carefully look over any contract you sign, you may just find a few paragraphs that say something to the effect that: “Your account is a brokerage account and not an advisory account. Our interests may not always be the same as yours…”

You may want to think long and hard before you sign on the dotted line for that type of contract.

Your adviser is more likely to advise you based on their needs or the needs of their company than on what is in your best interest.

So, you shouldn’t just find a planner based on the first listing in your local phone book.

Be willing to spend some time and ask some questions so you know the person you are working with truly is concerned with you and not just their own compensation.

There are many well trained and ethical professionals in retirement planning, but they are not all as interested in you and your goals as you may want them to be. Do your due diligence first.

Money Saving Tips – Even Small Changes Can Add Up…

I think one of the biggest money saving tips people overlook is that even small changes can add up quickly. I know I didn’t pay much attention to a few cents savings here or a dollar there. For the most part, unless I could save ten, twenty or more dollars I didn’t bother too much. What a mistake.

For anyone who is living on a really tight budget there probably aren’t many “big things” they can save on. If you aren’t using credit cards to buy new clothes or go out to a movie or take a vacation, you don’t have that much to cut back on in the first place so you have to start small.

In this article I will provide you with some simple money saving tips you can start using today. Not all of them will be appropriate for you and your situation but some may be.

Plus, it may be enough to get you thinking in a more frugal type of mindset. You will probably come up with your own tips!

1. First of all you really need to have an accurate picture of your finances. It sounds weird but many times we don’t. Many times we are living beyond our means and not even fully aware of it.

Another benefit is that when you see your income and expenses all written down in black and white it can be easier to identify patterns and possible changes you can make.

When doing this step just make sure you are accurate. Go back over a few months of bank statements so you include everything – even those things that only get paid every other month or every few months.

Just make a list with two columns, include all of your income in one column and all of your expenses in another. Than subtract your expenses from your income. If you have a positive balance good for you, if you have a negative balance, you have your work cut out for you.

2. Now that you know exactly where you stand financially you can set up your plan of attack. The first place to start is right with your monthly household bills.

If you can find something to cut here, you will likely save quite a bit of money each month. These types of cuts usually generate the biggest savings.

Just go down the list of bills, one by one. Take a look at each one. Can you cut it? Is the bill for a service you can get rid of entirely or at least get a lower monthly payment?

Bills such as cable or satellite may be good places to start. You may have added a few things over the years. A few years ago I wanted to watch a particular show that was on one of those premium networks so I added that network to my cable plan.

The problem was that after the show ended I forgot to cancel that addon even though I didn’t watch that channel at all. Make sure you don’t have any unused “addon’s” on your bills.

Can you save some money on your car insurance? Can you refinance your car loan? Consider changing your grocery shopping habits, maybe you can buy some store brands instead of name brand items.

I did that and found that most of the store brands were just as good but a lot cheaper. There were a few things that I didn’t like so you may have to do some trial and error but you can save a bundle this way.

If you really give it some thought, you should be able to come up with your own money saving tips. After a while, it gets kind of fun to see that extra money start to grow!

The Family Budget – Tips to Getting Everyone On Board…

You’ve probably heard that getting everyone involved is important to the success of your family budget. But you may be wondering if that’s really necessary, or how to even do it. Here are some ideas and tips for getting everyone on board with your family budget.

Be Open

Sometimes parents try to hide their financial situation from their kids and/or each other. While this may seem like “sparing” the ones you love, in actuality it can cause undue stress on the one family member who does know how bad things are, or how things work financially.

It’s true that you don’t want to overburden your kids with responsibilities that aren’t theirs, but including them in a frank discussion of your financial situation can go a long way toward easing your burden and garnering their willing participation.

The Family Meeting

Call a family meeting to discuss finances. If you’ve never done a family meeting before, this is a good place to start. It may not be everyone’s favorite topic, but it’s an important one. Ultimately, your kids and spouse will be glad you included them in the discussion. Another tip on the meeting – try to call it at a time when it doesn’t cut into other plans. This should help reduce resentment.

It Affects Everyone

Explain how your family finances affect everyone in the household. Be clear and specific, citing fees, tuition, allowances, groceries, etc. and how they all cost money. There’s no need to beat everyone over the head with this information, so to speak; but it gets family members to think a bit about where the money comes from. It’s easy to take things for granted.

Cutting Back

If the budget involves cutting back, it’s probably a good idea to cut back in areas that affect the whole family rather than just one member. Otherwise, that one person may resent what seems to be preferential treatment of the others, and you’ve lost your whole-family approach to the budget.

Set Goals Together

As you work to formulate your budget, work on common goals. What would your youngest child like to see as part of the budget? She might say toys. Your oldest child might point to electronic devices as something to include; your spouse may say a nice vacation. Consider everyone’s wishes and come up with some realistic, common goals. Not everything is doable, of course; but finding creative ways to get everyone’s needs met is what family life is all about.