Contrary to a popular belief not all financial advisors are created equal.  The sad thing is that in the recession of 2008 most people lost 30%-50% of their retirement because most retirement investment advisors had no idea that the crash was coming.  After it happened you know what they then told us.  ‘You need to keep putting money into your retirement because now prices are low and it will come back.”

For me this was the last straw.  After my financial advisor told me that I pulled all my money out and knew I could find someone that would make me money during recessions instead of sitting there and making excuses for their lack of knowledge or accountability for loosing my money.  For me a safe investment is one that never loses money.

The sad thing that no one seems to know is that 80% of retirement investment advisors do not invest into what they tell their clients to invest in.  You put up 100% of the risk, make a measly 7-12% and they keep 80% of the profits.  If you knew what the retirement investment advisors were really doing with your money many people would be extremely upset and end up in with charges for aggravated assault.

There are plenty of places to put your money so it will continuously create a great return for you.  Here is a very simple solution.  Find someone that is financially successful and if they lost or made money in the 2008 recession.  Pretty soon you will find someone that did make money and those are the people that you need to be working with.

The truth is that there were plenty of places to have your money in the 2008 crash where your money would have made an amazing increase.  Most financial advisors do not know where those places are or if they do then they are legally bounded to not invest your money there.  Find a financial advisor that is open to invest in anything and made their clients money in 2008.

Does it really make sense to spend the best years of your life working so hard so your golden years can be left for retirement?  Does it really make sense to put life off?  I don’t think so and I don’t think most people do either.

I believe that is the mold of our society.  Work for 30-40 years and then retire.  Senior financial planning and retiring after 60 was a good model for people in the early and mid 1900’s who were coming off the farm and working their entire lives.  However, in today’s information age it is no longer necessary there are some very easy ways to save money to make early retirement a possibility for you.

Most people have a good work ethic.  You might as well apply that work ethic to retiring early and throw senior retirement planning out the window.  It works because people believe in it and plan it.  If you make a plan to retire early and work that plan it will work also. 

Lets look at this realistically.  You are working and most likely doing a great job working for someone else that is making the most profit off your labor and they are living the life of their dreams.  The bosses and owners of the companies have it figured out it is time for you to do the same.  Here are some simple and easy ways to save money for your early retirement.

1. Find the age you want to be when you retire.  Then subtract the age you are now so you know how long you will have until retirement.
2. Calculate the monthly cash flow you need to be retired at your comfort level.
3. Then figure out how much you need to save and invest between now and then so you can retire early.
4. Depending on your age and ability start saving at least 10% every paycheck for your retirement account.  If you are 35 or higher make it more.  If you do not have the ability to save that much then see if you can reduce your expenses.
5. The last step is probably the most important one.  Get some investment and financial education.  If you do this then the likelihood of early retirement will become more and more possible.

For most American households when you ask them what they invest their money in the reply is usually the same or very similar.  Most people have safe long term investments that will have steady growth around 7%-12% over the long term.  These types of investments are meant for people that plan on working for someone for the next 20-40 years and by the time they retire they will have a steady heap of money and if they are lucky they can keep their current lifestyle and have a ton of free time in their lives.

These investments usually include 401k’s, IRA’s, and Mutual Funds. These are usually the long term investments of the middle class.  What many of these people end up with is a million or so in their retirement plan and they are set.  Congrats, you retired a millionaire.  You deserve a pat on the back…..or a kick in the forehead.

What people overlook and let themselves be sold by the typical financial advisor is that in 30 years that million in the bank will be worth $300,000 of today’s money.  I don’t know about you but retiring on $300,000 sounds pretty miserable.  This is why people have to downsize when they retire.  401k’s, Basic IRA’s and Mutual Funds are investments for dummies….or the ignorant.

When you understand the basics of the economy you will see that when one asset class goes up the other goes down.  This means that there are great times to be in stocks and also horrible times to be in stocks…like 2008.  Those that were in commodities in 2008 made a nice little profit and when the time comes again they will move their money again.  Long term investments are meant to be moved.  If they stay in the same place you will ultimately loose and be in an investment for dummies.

What is great about the stock market is the fact that there is no absolute guarantee of good stock investments. There is always a risk involved; something that would blindside you and even those professionals who have been in the mix for years. Indeed, this is a field with an excitement you can’t see anywhere else.

Stock market investors usually spend a lot of time researching about the particular companies they want to invest on. If you want to pursue this venture, then you should probably do the same. To help you out, there are online references or stock market tips that will teach you the ins and outs of the stock market.

But of course, you do have to focus your energies to learning the terminologies and the basic theories behind the stock market. This is very important because the stock market speaks a whole different language that you are used to.

Stock market brokers are also available for your benefit. If ever you want to start out in the market, you should always consult with these brokers so that you can have a professional’s view on things. Brokers are also there so that you can learn firsthand. They will also give you a detailed presentation about certain decisions or options available to you, which works great when you want to understand a little bit deeper about the stock market. Also, do not be afraid to ask questions to your broker. It is his job to convince you to make decisions, make the most out of that opportunity to learn.

Many factors are taken into planning when deciding which retirement plan is best for a person. How old someone is, income level, beneficiaries, current state income tax, and other factors contribute to the decision. Listed below are advantages and disadvantages to owning a Roth IRA retirement plan, and the basic Roth IRA rules.

A Roth IRA is a retirement fund that is taxed as money is placed into the account, thus the amount withdrawn is tax free given certain requirements are met. The requirements include that the fund be at least five years old currently, and that the owner of the plan is 59.5 for growth above principal to be taken out penalty free. Traditional IRA plans are tax free as money is placed into the account, and the funds withdrawn are taxed as regular income.

The advantages to owning a Roth IRA include, assets in a Roth IRA can be passed to heirs unlike social security. Converting to a Roth IRA from a traditional IRA is simple, also the funds transferred from the traditional plan can be withdrawn from the Roth IRA tax free. The only stipulation is that the five year seasoning time must have passed on the transferred funds.

Estates large enough to be taxed as estate taxes can be reduced by a Roth IRA. This is because tax dollars have already been subtracted, thus a traditional IRA is valued at a pre-tax level for estate tax reasons.

One of the major disadvantages to having a Roth IRA instead of a traditional IRA is the tax benefits may never be realized. The reason for this is because in a Roth IRA an owner is taxed as the money is payed into the account and not taxed as money is withdrawn. But if an owner does not live to start withdrawing funds, or does not take out the full extent of funds, the full amount of benefit is not realized.

Granted if an owner dies whether or not all the funds are withdrawn may not matter, but then again why be taxed on incoming money when one may not live to see it taken out. Technically the matter is a personal decision, but the benefits of being taxed up front may not be realized and thus is a disadvantage of a Roth IRA.

You shouldn’t plan to depend entirely on social security. Those who do today often struggle to get by. Some people have a pension where they will continue to earn a percentage of what they were making before they retired. The longer they worked for that particular company, the larger the percentage. However, even a pension might not be enough for everyone, especially if they want to live very comfortably traveling and doing other expensive things. This is why you should invest for retirement, so you can do the things you have to do and the things you want to do.

What is a Roth IRA? A Roth IRA is just one of many retirement investment tools you can use. A Roth IRA allows you to contribute up to a certain amount of money each year to a mutual fund. You have to pay taxes in it now, but you don’t have to pay any taxes when you withdraw it after retirement, including taxes on earnings. You can make a Roth IRA withdrawal before retirement, or a withdrawal from other tax-advantage retirement accounts such as a 401K or a traditional IRA, but you will probably incur a penalty fee. Tax-advantage retirement accounts are meant to help you save more for retirement by skipping tax costs at some time or another.

Investing for a retirement is a great way to have extra cushion. You can use tax-advantage accounts, but you can invest with a regular brokerage account instead or in addition to it.The more you save now, the sooner you can retire and enjoy a relaxed lifestyle.

I’ve listed three essential tips below that should help to get you started. You might be expecting tips that may work magic for you at the start of your stock exchange business but if I had these I wouldn’t share them with anyone! I can’t promise to make you rich. But I can, at least, offer you some three useful tips that may be very important for your start in this business.

1) If you have not yet read this book, you may have to purchase it and read it carefully. It is the book entitled “The Intelligent Investor” written by Benjamin Graham. It is a popular and highly recommended book for those in the stock market. One concept you will find very useful is the idea of Value investing. You may need to study it carefully and assimilate it. This will help you when making a definite choice of the stocks to go for.

2) The second point to consider is signing up for a free Google Finance Account. This is very important as it exposes you tools and search facilities that will connect you with great companies. This tool will also help you get connected with wise and knowledgeable experts who have been in the business for years.

3) The third thing is a free broker account. Your account will depend on the region where you come from so ensure you sign up for a broker who deals in your market. Take time to locate the best brokerage companies in your area. This may take time. But it is worth the pains. Be very discreet the way you disclose your bank information.

Buying stocks online for beginners is not as hard as it seems especially if you follow the three simple steps outlined above.

Alternative energy involves energy sources other than fossil fuels.  Fossil fuels will run out one day, so the development and implementation of an alternative energy solution is vital for future energy consumption.  Alternative energy sources include solar power, wind power, hydroelectric power, and biofuels.  These options also have the advantage of being renewable.  They are also a lot cleaner when compared to fossil fuels.  Implementing these energy sources on a wider scale could one day completely replace the need and dependence on fossil fuels.

Companies that are actively pursuing research and development into these alternative energy sources are the companies that could yield future profits.  Because this is a problem that needs a solution as soon as possible, investing in the right energy company could yield immediate profits, but will likely see future gains as new technologies are implemented on a wider scale.

Investing in alternative energy funds has several advantages over buying separate company stocks.  First of all, investing in one alternative energy mutual fund could add more diversity to your portfolio than buying several different company’s stocks.  They will have a smaller reward, but the risk is greatly mitigated with the diverse holdings in most mutual funds.  Investing in alternative energy mutual funds will also ensure that if one particular field within alternative energy takes off, your diverse holdings through that fund will be sure to take advantage.

Mutual funds in general do have some drawbacks.  They have fees and limits associated with them.  They also don’t perform as well as one might want.  If you don’t like these aspects of mutual funds, look into alternative energy ETFs.

We will eventually run out of fossil fuels, so investing in alternative energy now could bring future gains.

First of all, you need to realize that purchasing a home that is set up like a duplex can be a wonderful way for you to make some extra money each and every month and it provides financial help for you and your family. That is especially true if you are renting this property to someone that is actually making the payments on time. While this can be a good way to make money, you need to realize that you will often be responsible for any damages and things that may need to be fixed from time to time as well. So, in the end, it can be a way for you to lose money as well.

Second, if you are going to be purchasing an investment property you should intend to have it for a very long time. This is because studies have shown that if you are not keeping the property for several years you may actually take a hit on it and the money that you put into it. That means that you will want to keep it for many years in order to begin making a profit on the home. After all, that is the goal.

Finally, if you are trying to find a way to make some extra money, and you have some money to spend upfront, you might want to consider this route. It has proven to be effective for many people in the past. If you do it correctly then you will make money in the long run.

John boldly claims that it is either the poverty or riches that people attract and there is no middle ground. John Cummuta transforming debt into wealth is a compact system that includes manual, kit, easy to start solutions and educational sessions. In the discs some of the points that John includes are :
How to get off the debts?  The steps to adopt for credit card and mortgage elimination

Strategies to build wealth

With easy to follow instructions, John Cummuta provides debt relief solutions regarding how to transform debt into wealth. There are methods that help end debt including maxed out credit cards and mortgage debts. The author claims that it is very much possible and the task can be accomplished within 5-7 years. And he is speaking the truth.

If debtors communicate properly with their creditors and request lesser amount of monthly installments and waiver of interest and penalties then of course the balance owed can be paid within 5-7 years. This can be achieved easily if debtors take some time off to make complete payment by paying every month. While the effort will be rewarded by paying off all the debt on their part, the question is how will it be possible for them to transform debt into wealth. It looks like John has all the answers

John claims that without forgoing the needs and belongings one can still find several ways to change debts into riches. By following the Cummuta’s guidelines, he says that balances owed can be paid off easily in the next 5-7 years and realize the amazing potential when the net income starts increasing and creates wealth.

There are basic solutions offered by John in the program that offer solutions to eliminate the debt. All through the system he educates debtors on the ways that will help them in paying off their debts.

Thus, they are not able to free themselves from their debts. Every month they only pay the minimum, but the amount they are charged because of interest is so high that it just accumulates and accumulates. If you want to solve this problem, here are several things that you can do:

Set a meeting with your creditors

Arranging for a meeting with your creditors will help you in explaining to them why you need to be given a chance to have lower credit card payments. Contrary to popular belief, credit card companies will not go after you and send you to jail provided that you will cooperate with them.

If you are willing to explain and work with them to reduce and eliminate your debt, then they are most willing to help you out to. However, if you will keep on running from them, chances are they might take legal actions against you. Having legal charges from credit card companies will not do your credit score well because it will reflect negatively.

If you want to get their help, start by contacting your credit card provider. Explain to them the situation you are in and what the reason behind lag payments is. If you lost your job or recently resigned from work, tell them all about it. The key is to be honest.

Go to the third party

Debt management agencies usually offer debt management programs for people who want to get out of their debts and lead a debt free life. This involves the process of creating a flexible payment plan based your income as well as how you can pay them off. They can also talk to your creditors into adjusting the interest rates so that you will be able to pay for your debts more comfortably.

These third party companies can also extend with your credit card companies on the payment schedules that you have. For example, they can give you a grace period wherein you can save up so that you will be able to pay for your bills on the given date.

Leave your cards at home

This is probably one option that your debt management agency will suggest to you to lower payments for your credit card bills. Putting a halt to credit card use for the meantime will help you from accumulating more debts.

#1) Know your situation

This is the most critical step you. It is not enough to know you have “a lot of debt.” Instead, you want exact figures. Therefore, determine your obligations, along with the amount of income and expenses.

In particular, knowing your expenses is important. This is because it will help you figure out how to reduce them by eliminating unnecessary things. Common examples of expenses you can do without are magazine subscriptions, eating out frequently, website memberships, etc.

Chances are, if you thoroughly analyze your situation, you likely will be shocked at how many unnecessary costs there are. Knowing this is the first step to eliminating them. Be ruthless, and get rid of anything and everything that you can.

#2) Map out a plan

Once you know the situation you are in, you can determine how to achieve credit card debt reduction. This is because you will know how much in disposable income there is have per month, and therefore can realistically figure out how long it will take you to get rid of your obligations. Then, map out a plan.

For example, you might have $20,000 in debt, $5,000 in monthly income, and $4,000 in necessary expenses. That means you have $1000 in disposal income per month.

Knowing that information, you could then set a goal to achieve financial freedom in 20 months. As long as you know where you are at with your obligations, you can map out a plan to get rid of them.

Also, you might realize you need some sort of financial help, such as credit counseling or settlement. However, again knowing exactly where you are at will tell you this.

The bottom line: these two strategies for debt reduction are really not that hard. They simply involve getting clear about where you are at, and then mapping out a plan to achieve financial freedom. You will never get there if you do not get specific.

It’s an easy oversight because when you are in you late teens early twenties who’s thinking about being 60 years old and retired, right?  The truth is that planning for retirement takes a lot of planning, as much as your career. However, if you are close to that age already, or are perhaps in your last year, here are some retirement tips to keep in mind.

KEEP INVESTING

Our economy will always fluctuate and so you want to make sure that your money will last as long as you are a live.  This means continuing to invest.  Just as you did when you were younger, investing in a 401k and ensuring you rollover your money when you leave a company, you need to invest now for later.  The investments will be different such as purchasing a rental property so that you can earn income as well as write it off.

ENJOY YOURSELF

This is the time of you.  This is when you get to do all the things you’ve always wanted to but couldn’t squeeze it into your busy life. Throw some caution to the wind and experience life the way it was meant to be experienced.  Don’t just become a couch potato in a retirement community.

TAKE CARE OF YOURSELF

When some people retire, they get depressed because they are so used to doing something all the time that now they feel lonely and useless. That’s not the case. Find things to do. Volunteer, workout, visit friends frequently. Make sure that you are healthy and keep yourself involved in things.  You need to take care of yourself so that you have a fun and vibrant retirement.

THE FUTURE MATTERS

Retirement isn’t the end.  You will still need to plan for your future and the things you will be doing.  Talk to friends and family and think about future care for when you aren’t able to take care of yourself.  Perhaps move into a smaller home so that you aren’t overwhelmed by your house duties. Think about where you want to be as  you get older.

When looking to purchase a lot it may be wise to consider the past market for land and for the area you would like to invest in.  Many times land becomes available in remote locations for a cheap price.

This is not necessarily a bad thing, but may have difficult obstacles to overcome.  Suppose that land is purchased in a remote location for a good price, in order to resell or develop this land the demand must rise above the current demand.  However if this area though remote has potential for growth in the long run this investment may pay off in a big way.

As it is commonly said in real estate, there are only three things that matter, location, location, location.  Though this is not in reality everything to consider when investing in property it is a large part.

If the demand of land in a certain area is projected to increase because of population or economic growth it may be wise to purchase in that area.  One thing to beware of though is a sure thing.  Anytime some guarantees growth or an increase of demand probably does not know what they are talking about or are desperate to make a sell.

Cautiously research the market and current demand.  Many of the suburban areas in this country are bordered by farmland and/or empty expanses that may latter be used for development.  These areas may be ideal for a retirement lot and may provide the perfect situation.  Even in a down market land is needed just not in as high of demand as before, and there are potential earning when capital is invested wisely.

What that means for you is that those contributions are not included in your W-2 and you do not have to pay current income taxes on that money. You will however have to pay taxes, ultimately, when you take the money from the account. The Internal Revenue Service has a long memory. Hopefully you will not have to think about that until you retire.

Now, before you set up the account, you will need to spend some time with a document from your Human Resources Department. It is called the Summary Plan Description. It may seem a little daunting but do not despair. It is here that your 401k options will be spelled out in more detail than you probably want.

Without access to the Summary Plan Description, no one can give you specifics on your plan. Each one is unique. In general, however, you will find in every Summary Plan Description the details on the investment options available to you. Again, depending on your plan, you will find one or two channels:

1.    The Main Menu
2.    The Self Directed Brokerage Account Option

Typically, on the Main Menu you will find ten or more mutual funds and, if your employer is a publicly traded company, perhaps a chance to buy the company stock. Understand that your company (referred to as the Plan Sponsor) approves all the 401k options available to you. That does not mean that they recommend any of them. That is your responsibility.

Some plans include the second option mentioned: the Self Directed Brokerage Account Option (or the “SDBA”). This option opens the way for you to invest your retirement savings in products not found on the Main Menu. Look carefully at the Summary Plan Description to see any limitations on investments you may make via this channel and also if there are any annual fees associated with it before you dedicate any money to it.

Once you have decided where to invest your retirement savings, you can save time, money and stress, if only because you will not have to revisit those choices every time you get a paycheck.

Interest rates have been at historically low levels for several years now and the bad part is that there is nothing on the horizon that is indicating things will get better. The economy is in a real slump and the current administration doesn’t have a clue what to do about it.

Lowering interest rates is thought to be a help to the economy because it should increase borrowing and then spending. However, things have not gone as planned and the economy continues to go down despite the low rates. Right now people are just not doing much with their money other than hold onto it.

Anyone who needs to get more return for their money is going to have to invest in something with risk. Stocks are the most common thing people turn to but you have to know what you are doing. You can’t just go out and buy any old stock you see: you need to understand how to make intelligent picks and have a strategy. If you are interested in stocks, a good book to pick up is the “Stock Market For Dummies” book which is good for learning all the basics.

Risk or no risk, it is harder today to make money with your money than it was in years past. People who count on interest income or income from their investments are suffering right now. They have to make difficult decisions on how important it is for them to earn more money and how much risk they are willing to take to get it.

It just takes a few hours to reach capital cities in Central America from the main US hubs. In order to provide retirees an introduction to what awaits down south we’ve identified out 4 ‘retirement hot spots’ that we think are worth a closer look.

1) First up is Placencia in Belize. Often overshadowed by the glitzy Ambergris Caye, Placencia is coming of age. Following a massive road upgrade program you can now drive all the way to Placencia from Belize City (the capital of Belize) without hitting a pothole. And there’s a new international airport under construction at the north of the Peninsula. Best of all Placencia real estate prices are still low when compared to more mature Caribbean destinations.

2) Central Coast of Nicaragua. Most tourists and investors visiting Nicaragua head straight to the beach town of San Juan del Sur in the south of the country. Our advice, add the central coast are due west of the capital Managua to your travel schedule. It’s got great surf and great beaches and best of all it’s only 1 hour from the capital.

3) Boquete in Panama has been on the list of retiree hotspots for several years now. We think it will remain that way for years to come. It offers a beautiful ‘spring like’ climate year round and a beautiful rolling green scenery, Its infrastructure links with the city of David and Bocas del Toro seem to improve with each passing year.

4) In Costa Rica, head for the Caribbean coast around Limon. It’s far less discovered as a destination than the Pacific coast, with the result that you can find some really great deals, if you look hard enough. And we know from experience that Costa Rica real estate stands the test of time. The country has been attracting investors and retirees to its shores for decades.

To begin with, an IRA is an Individual Retirement Account.  In a traditional IRA, the deposits go in before tax is paid, they then grow tax free, and finally the IRA owner is taxed when the money is taken out of the IRA.  These are not short-term investments however.

If the money is withdrawn before age 59.5, it will be assessed a 10% tax penalty (there are some ways to get around the penalty, but they are very specific).  The IRA itself is not an investment, it is simply a shell account that investments are added to.

For younger people they will want to put more aggressive investments into their IRA’s.  This is because they have a longer time period to allow the investments to grow, and compensate for any stock market drops.  Older people do not have that long to wait.  They need something that will grow when the market does well, and ideally at least stay level when the market drops.

A precious metals ira is one that is invested in various metals, mostly gold and silver.  Usually the money is invested in precious metals funds.  These are mutual funds that buy stock in companies that can benefit from an increase in the price of gold or silver.

These are companies such as mining companies.  Another way to fund a precious metals ira is to purchase ETF’s.  A precious metals ETF (Exchange Traded Fund) is generally set up as a trust that owns gold bullion.  Each share represents a fraction of the cost of an ounce of the metal.  They will track the spot price of the metal and increase in value as the metal increases in value.

Regardless of what investment is made, almost everyone can benefit from an IRA.  In times of uncertain economies, a nice nest egg can make the difference between a peaceful retirement, and an uncomfortable one.

The contribution limit for a SEP IRA is quite a bit higher than that of Traditional IRAs.  In 2010 the contribution limit was $49,000.  All withdrawal qualifications apply like in most other IRAs such as being at least 59 ½ otherwise you are susceptible to a 10% early withdrawal tax fee.

The other main difference between the two is the contributions can be variable depending upon the net income of the business.  This plan is particularly favorable to new business owners who need to use all funds to invest back into the business.

The businesses that qualify are S and C corporations, LLCs or limited liability corporations, sole proprietorship, and non-profit organizations.  New business owners need to be at least 21 years of age and had at least earned $500 from the previous tax year.  The deadline for contributions is April 15 so in order to qualify for the previous year’s tax period all funds must be contributed before that date.

If you are a new business owner without a lot of money to devote to retirement or your earnings are variable then this flexible retirement account could be for you.  If you are the owner of the business you can still declare yourself as an employee in order to qualify.

This type of retirement plan requires very minimal planning or hands on work that you can do without the help of a retirement advisor or accountant.  You can devote as much money to the fund as you wish with the added benefit of a much higher contribution limit than other IRAs.  But as with IRA in order to get the full benefit you need to wait until you qualify to avoid the 10% subsequent tax penalty.

You should know when penny stock brokers are investing in stock they are buying stock that sell for less than $5.00 per share.  This type of stock is generally offered by small businesses or start up companies who might need to sell stock to get some money flowing in or have not yet proved they are worth more money at this time.

You can’t expect that the penny stock brokers before you have been making their money randomly and not researching the company they are going to  invest in.  Since these stocks may be so inexpensive you might think its a good idea to invest in a lot of them.  This is a good idea if you have the time on your hands.

The novice penny stock brokers may see analyzing a company much like a roller coaster with cheap cars, because their shares are constantly going up and down; the graphs look rickety, but the truth is, a regular full time employed person just doesn’t have the time to really investigate what they are getting into.  Stocks have their notorious ups and downs.  It is recommend that you hire penny stock brokers who focus on analysis.

In the long run, to be successful at investing, you can’t put all of your investment in one place because of the high risks penny stock brokers see today in the markets.  The battle comes down to this:  Are you winning more battles than you are losing?