Please do not pay attention to the elephant in the room. As you read this comment, it will not help to focus on the elephant. So it is the end of 2010 and I would like to take this opportunity to a few remarks about the economy, the demographics of the United States and the future to take. And remember: do not think about the elephant as the elephant to the end I discuss.

In early 2010, most forecasters were negative on the stock market and skeptical about the resilience of the recovery. Example, Fortune magazine predicted a coming collapse of the market because stock prices were “surprisingly expensive.” During the first nine months of 2010, mutual fund investors pulled more than $ 150 billion of equity funds and poured into bond funds. This happened as the stock rose. In fact, the Standard & Poor’s 500 total return was about 15% for the year.

During the month of December, the yield on the ten-year U.S. Treasury bonds increased from 2.5% to 3.5%. Because bonds trade inversely with interest, the ten year Treasury lost about 8% at market. Those who bought the stock to invest in this ‘safe’ bonds will not be encouraged if their year-end bond fund opening statements. They will have missed the recovery of stocks and experienced a loss in “safe” ten years in the U.S. Treasuries. The increase in ten years interest is a first indication of the inevitable inflation, because if the Fed prints dollar bills, inflation, its value kills. ”

Demography – Once our friend!

The final 2010 U.S. Census data is not out yet, but there are some alarming estimates based on the previous census. Between 2010 and 2025, the number of the most productive people (age 50) decrease of more than ten percent. The number of retirement age people (those reaching age 65) will increase by nearly eighty percent. I really do not like these numbers. In fact, I hate them.Because it makes me feel that no matter what the government incentives offer, regardless of what tax cuts are adopted, no matter how much more deficit spending the government creates, no matter how much we mortgage our children’s future, there go to eighty percent more employees the retirement age for the care and ten percent fewer workers to do the job.

So I will be positive stock market returns from 2010 and I will be very happy. I keep my eye on the short-term swings. I, along with everyone else, will work around my head in the sand and just keep refusing to look at the demographics.

The Elephant

Maybe if we all ignore the elephant in the room, he will leave. The elephant is bigger if the federal debt increases. He has become so great that he can not leave through the door. I’m afraid that if he tries to force himself through the door, he can bring the house down. And we keep feeding him! A trillion dollars this year, two trillion U.S. dollars last year, a half trillion dollars next year – he gets really big!

OK. We have an elephant in the room. At one point he started to smell inflation. He will smell of lower GDP. And he’s more than deficit spending to survive. He is going to need higher taxes.

How to Protect Yourself from the Elephant

You need to make (and live in) your own insulated protective biosphere. That is why most MLP experts recommend Master Limited Partnerships. Income advisers who really understand MLPs recognize that MLP distributions in the past during periods of inflation. They also paid deferred income taxes. They also have a record of reliability. Tax deferrals, tax-deferred income, reliable, inflation protection and a history of performance, MLPs make a great way to build your protective biosphere. Even though you still see the elephant, you do not smell him. He is not gone.

Few people take $ 1000 and become millionaires by investing.Most of the millionaires decades regularly put money aside, buying up shares, and reinvest profits. If we can build up enough assets as the income from your investments are used to buy more shares, wealth can grow very quickly.

Although many people would like to start investing and building wealth, money they never seem to do that. Human nature is to continue adding obligations (houses, telephones, clubs, cars, toys), until all the money you make is speaking before the start of the month. At that point is just treading water – not building any wealth, but not going into debt either. Eventually a car breakdown, a new roof is needed, or a medical emergency, but at that time, people in debt. This adds another requirement – the interest on the loan. To grow and invest rich people need to reduce obligations that one money left over at the end of the month to invest it. While a few hundred dollars a month may not sound like much, by the time that investment income will be extended so that they can move up in lifestyle or take on a lower-paying job with greater personal benefits. Here are some simple things you can do to save a few extra dollars:

1) Buy a used car for cash. A new car loses half of its value in the first four years. This means that a $ 40,000 car will be $ 5,000 per year in depreciation alone cost (nevermind interest ion the car loan). Even if one buys with zero interest, one is still the loss of depreciation. If you have a car four years old, will only cost you $ 2500 a year in depreciation and the repair bills will likely not much larger than that for new cars (most cars can go from 200.000 to 300.000 miles routinely nowadays. If You put half the money you would have set aside for payments in a savings account and invest the other half, you can replace the car every 4-6 years for cash and invest $ 1250 a year. After a while you’ll able to easily buy a new car for cash every four to eight years, but why bother?

2) get water instead of soft drinks in restaurants. Ever notice you, so just drink a few sips to take during your meal? At $ 2 per drink for people who eat out five times a week is $ 520 per person per year. Alcohol, at $ 5 – $ 10 per drink is even worse. The water – you’ll hardly miss the soda, save $ 1000 – $ 2000 per family per year to invest, and save 150 calories per meal next. You can buy alcohol at home for $ 2 or less per serving. (Note to the children, offer them $ 1 if they order water instead of a drink. They will probably do 90% of the time. You save € 1 per child, plus they learn that buying the drink costs money and probably less likely to automatically order a drink when they grow up.)

3) Turn to the professionals. This may seem backwards, but if you’re a big car repair, a water heater having to modify or re-seed the lawn and you do not consider it a hobby, it can actually make sense to hire a professional to do. If you are capable of taking on extra hours at work that you would spend eight hours into the water heater (and really away from your family because they do not want around you with all the cursing going on) could be spent at work place. If you pay a professional $ 200 and you pay $ 40 per hour, you have just an extra $ 120 to hire the pro. Sure, by having the tools and experience he can only do one hour of work, but if it would have taken you eight hours what is the difference?

4) Eating out less often. If you go outside, keeping the amount you spend each month on restaurants. You may be surprised to learn that you spend thousands of dollars each month. Try eating a few meals at home every week. You can save about $ 50 per meal, or $ 2500 per year just by eating a dinner extra per week in. If you get tired of TV dinners and frozen meals, pick up a copy of Betty Crocker and learn some simple dishes such as pork chops or making fried chicken. Another choice for busy people to crock pot meals – they are easy to make and ready when you get home. Give it a try – you’ll need to eat healthier and save money.

5) Avoid time shares. It may seem amazing to that place waiting for you once a year, but you’ll probably find that you’re working on that week or you just do not want to go to the same place year after year. If you just rent a place if you want it you will not have to pay maintenance fees, his freedom to choose when and where you want to go, and not the headache of trying to solve a timeshare later. You’ll probably save thousands of dollars per year in maintenance fees and missed holidays.

It is often said and believed that there are countries where investors can invest and what they should not. In fact, many investors have been paranoid about investing in some countries.And nothing in this world to let them invest in a number of countries outside their own country. Unfortunately, the investment environment more difficult, dangerous and competitive investments that investors should vote their nets wider to the shore as they remain liquid and not to end hunger. This is more so against the backdrop of the global financial crisis has proved that no country is immune to the financial collapse and investment, whatever the level of development.

The advice in conservative investment environments before, some countries are virtually immune to crash through their investments matured culture, transparency, fairness of the parties and strict regulations that guarantee return on investment. Against this background will invest in Africa, Asia and Latin America for example are not easily embraced, given the general investment climate and the level of policy frameworks in such environments.Unfortunately, data and experience now suggest that these emerging markets, and they hold tremendous prospects for the future of the investment and any investment that is in question.Cases of Brazil, India and China somewhat proven this point.

The issue to deal with now is that if these ‘risky investments’ jurisdictions huge business opportunities for bold investors and real, how to profitably invest in this investment? Here are some things that investors should make sure to investing, no matter what country / area of the levels of development of the country / state / city and even village.

1. Investors should review the location of the critical investments.The study is not just about professional feasibility studies which will be full of jargon that are known to fail. The study should both professional investors and rudimentary and / or their representatives have the streets to ask / ordinary people study the dynamics of investing in their countries go. Critical stakeholders in government, business and politics has yet to be appointed to informally get their candid views and opinions on the investment climate prevailing in such domains.

2. Investors should be free of stereotypes and prejudices about the place of investment. A lot of prejudices and stereotypes are spread investments across sectors in some places and some investors will not invest in these places. The good news is that most of these prejudices and stereotypes are not true in most cases.

3. Investors must be patient and calculating if they have to invest in new places. Many rush into investing in new locations due to bandwagon effects. Many rush into new jurisdictions and investment portfolios because it is the ‘in thing’ and ‘new deal in town. Not because they have weighed the trajectories professional information and even socio-cultural factors and other forces include informal.

4. After investing, investors should also be patient to see their investment needs before the draft and labeled as a bad investment. Not that they are so much in a hurry to sell off the investment after a small shock or failure.

With the above issues, the most profitable investment is likely in any environment. This includes both old and new, well developed and undeveloped land.

Investing is putting your money to financial instruments or assets to buy for profits in terms of interest or income. It is the choice of an individual or business to make money in a ship, such as business, real estate, stock or financing of certain risks that the possibility of generating returns in a period of time will provide. Investment is always the risk of loss of principal or commonly known as the capital. But the chances of losses can be minimized with proper analysis. There are generally three areas to invest in.

An area to invest in the business. Here, managers determine how much to invest in assets of a company, or they can be tangible or intangible. Tangible things are buildings and machinery, while intangible things include software patents. These assets are then used to create a continuous stream of revenue for the company to generate.

Financial investment relating to the purchase of financial securities such as paper and liquid stocks or buying real assets such as gold collectibles. Good knowledge of accounting is needed in this type.One must have the knowledge to judge whether a particular investment is worth the price. Profit will come when they are sold at a higher price.

Property refers to the purchase of property and to have held, sold or rented for the purpose of income. There are two areas of real estate investing in, residential and commercial. Residential real estate is a lot of people and involves the purchase of real estate used as a primary residence. In most cases, the buyer has not the money to purchase property and to work with a lender, a bank for example. Commercial real estate includes the purchase of property which is leased. This includes commercial property, retail space, apartments and hotels.

Many people reading this article will be interested to learn why China is seen by many as an emerging / underdeveloped economy and is part of the fashionable BRIC group of countries. The BRIC countries, Brazil, Russia, India and China and this is a group of countries put forward as potential superpowers of the future. But why would invest in China, the world’s second largest economy by nominal GDP and purchasing power, present above average risk?

The Chinese economy

One thing we need to value before looking for the Chinese economy is the significant stranglehold the Chinese government in all areas of daily life. While the control we see today is significantly weaker, at least on the surface than 20 years ago and even 10 years ago, there is still work to be done to “free markets” to develop. When the fact that China is the largest exporter of goods in the world and the second largest importer of goods gives an interesting snapshot of the current position to consider.

Strong trade relations with the likes of the USA, Hong Kong, Japan, Taiwan and Germany, for instance, the authorities have a very solid foundation from which to develop and grow the economy.However, the GDP rate per capita is only $ 7500 is the 93th highest in the world. It is this figure that perfectly reflects the very lucrative Chinese economy but also bring the public the relative poverty, which many Chinese still live in.

Changes in the Chinese economy

For many years the Chinese economy was solely run by the government, although in 1978 the government of the time realized that several Chinese companies arenas should be opened to both domestic and foreign investors. While these changes do not necessarily kick in until the late 1980s the development of the Chinese economy and China’s reputation on the international stage, is immensely since then. This often mysterious world of the Far East is now open to foreign investors, overseas companies and overseas governments, and while authorities are still looking forward to the relative control of the import markets as the Chinese people to hold great changes have taken place .

Ways to invest in China

Because of the size of China, the size of companies based in China and trade in China, it is possible to get exposure to the country through direct equities, collective investments and other similar investment vehicles. There are several large telecommunications companies in the world without exposure to China, there are few banks in the world without any form of representation in the country and this is just an example of two daily global business arenas. The main risks with regard to China, the political problems and the need for rules and laws changed to “hold” to international standards.

Conclusion

The China we see before us today is very different from the past, but there is still need for further development of business practices and regulation on business. The authorities will also need to reduce their stranglehold on the economy and businesses and entrepreneurs can flourish possible. The key to China’s growth in the future is certainly the import / export markets and improving domestic demand.

Years ago as a financial advisor, I helped my clients plan, invest and protect their assets. Rather than bore you with stock tips with ridiculous or sensational investment return, this article will focus on ideas that will help you develop your own potential. By keeping it simple, make a sensational investor using prudent principles and strategies.

Investing Online for Beginners – Investment Clubs

Create or join an investment club with friends. This is a great way to learn with a lever. If multiple people are motivated to be successful investors, you will learn faster and have more fun in the process. Investing can be risky and difficult, but being in an investment club is a strong support system. Start small and be prepared to lose money. Becoming a profitable investor may take some time, but your patience will be rewarded.

Investing Online for Beginners Tip – Online Investment Tools

Use an online trading program for research and screening investment choices. There are many great programs out there. If you want to buy stocks and mutual funds, than Morningstar.com has some good tools, even free. Motleyfool.com also has some good free tips and tools. Do not jump into currencies or options trading before the fundamentals of stocks and mutual funds. In fact, never invest in something you do not understand.

Investing Online for Beginners Tip – Online Business

Invest in yourself by starting an online business. This is my favorite strategy, and it’s where I most of my “investment” spending time today. You control your destiny by learning how to make a business. If your business is profitable, you have the added benefit of tax advantaged income / revenue. Instead of paying taxes and then paying your bills, you can pay bills and then pay taxes on what’s left. See some of my other articles and videos to learn more.

Success as an investor comes with education and practice. Given the negative returns from traditional markets in the past ten years or so, open to invest in commodities such as precious metals and energy to diversify and reduce risk. Most importantly, do not delay getting started. Most advisers recommend investing at least 10% of your income each month.

Almost daily you hear the heartbreaking news of someone who cheated of their life savings. Giant companies have relied on parents to teach their children have failed to deliver. Rich and famous people have fallen for fraudulent investment schemes.Nobody, it seems, is immune to the lure of the scam or unreliable devices promising wealth and a secure future.
Why are so many people are tempted to make ruinous financial decisions? The main reason is greed coupled with ignorance.Hopefully by reading some of the most common risks of money below, the knowledge you gain will be able to improve your chances of protecting your investment improve.

• Abnormally high interest rates. With rock today under the low interest rates at banks, many tend to put their hard earned money to those who offer the highest interest rate. Unfortunately, the higher the rate the higher the risk you will lose your money. If you can not resist, at least, make sure the bank is insured by the PDIC and the amount that you put in will be in the amount of insurance coverage. I still urge caution in that strategy, especially if the money deposited may be needed in the short term. It may take a while to recover from the PDIC and the bank fails.

• pyramid. This racket is when you are made to invest money to get the right to recruit other investors, which in turn may have to recruit the next batch of investors in an never ending pyramid. Where income is based on recruitment and not to the product or service being sold it is a pyramid scheme. Unfortunately, it’s not easy for many people a legitimate multi-level business apart from a pyramid scheme. Usually you are told to fast because the company just starting out in this country and so you can easily recruit “downlines” that will make you money while you sleep!

• Other rich-quick business opportunities. Today one of the most common get rich quick schemes are a couple of fly-by-night franchises. If a franchise is too cheap then little more than a ploy to sell you their equipment and supplies. Think if it as easy to get rich why is not everyone rich?

• Extremely good deals. If something seems too good to be true, it probably is a scam! There are many types of fraudulent deals on offer, the fantastic as the Yamashita treasure to the more usual bargain offers. Besides checking it out in the relevant register of deeds, seek a reputable and recognized professional real estate help in verifying the real estate, since there are many fake titles.Typically, these deals have a short run to you too busy to complete the transaction without thinking.

• high risk investments. Well done, mutual funds, stock investments and foreign exchange trading can make money, especially for those who know what they do and can afford to lose their investment. We often hear that many people brag about how they made it big in this type of investment, but they were wiped rarely want to talk. However, many people are unaware that these transactions there is a possibility that they are a big deal to lose their money very fast!

• Preneed Plans. Most companies are not scams preneed.However, for various reasons, in recent years, some of the largest preneed companies were unable to their obligations to their plan holders. The resulting loss of confidence the industry has declined to a shadow of its former self. I think the industry and our regulators have learned many lessons from the debacle and hopefully there will be fewer such disasters. Despite this I would recommend that you have a fallback position in case history repeats itself.

There are many more existing schemes can be hatched and above. Nevertheless, what has been discussed, you infuse a healthy dose of caution. Perhaps this is sufficient to you take the time to think through more good where your hard-earned money.

Inflation comes with a number of consequences that are not friendly to the financial position of many people. Some of these consequences is the loss of purchasing power because inflation facilitates spending rather than saving and increase in interest rates since many lenders include the fee for risk and inflation. To avoid them, many are seeking opportunities to invest for inflation.The best way to do this is to invest in some of the inflation protected securities and binding.

One way of investing for inflation is to invest in inflation-indexed securities and Treasury inflation protected securities, because they always move with inflation means that the investment is immunity against inflation. The Treasury inflation protected securities (TIPS) are low-risk investment, as they are supported by the government.Nominal value increases as inflation rises, but interest fixed.Investors need to type what they want, because they are available in maturities in different years to determine. The tips can be purchased from the government or their systems. The inflation indexed securities, which come in terms of bond and notes, the use of a return that is usually higher than inflation, if they hold them to maturity.

Those who plan to buy real estate is the best way to protect themselves against inflation is to select the properties with a fixed mortgage. It is therefore important that investors remember not plan on the valuation, but rather to generate cash flow. The use of a fixed mortgage, the investors immunity especially during the inflationary cycle. This is recommended as the adjustable mortgage cash to meet the current, but will start posting negative cash flow in the future. What makes it worse is that the duration of inflation is not known.