What Is an "Investment"?

By Brian C Yohe 

Investing or the making of an investment cannot be confined simply to the world of economics and finance. While it is true that it is most commonly seem in that frame of reference, it is broader and is actually a part of every person's life.

Investment, as I like to define it, is the act of putting effort into something now in the hopes of getting a return later. It can be almost ANYTHING - time is a very common investment. Take fitness, for example: you put in time at the gym now, so that you end up with a healthier body and better physique later. In a sense, as I write in my blog, you are trading time now for more time later.

There are hundreds of types of investments. From stocks, bonds, and mutual funds (and all of the types in each), to government investment in military or infrastructure. The list is essentially never-ending. But these are not the type that matter most, though I do find them an essential part of financial security and freedom. Examples of investment outside of the markets or government often include investing your time in another person, - much like Multi-Level Marketing (MLM), or the way businesses often use franchises - investing time and effort into cultivating your intellect, or investing money in a toy, movie, book or other item that will bring you some sort of happiness. The reality of the situation is, a large portion of the things we do are technically investments, and the return on investment is simply our incentive. And, as I hope we are all aware, incentives drive the world, and drive 99% of everything you or I do.

So whether it is your goal to lose 60 pounds this year, or whether you want to start your own network of multi-level marketers, remember that you're making an investment. That knowledge alone will give you an extra incentive to work hard to achieve your goal.

On an ending note, look for articles or blog posts in the future to learn in detail about each type of investment. And learn to expect that no matter what, if someone is putting time in to something, they want to see something out of it. So maybe, just maybe, learn to be a skeptic and not always trust that a friend or co-worker's motivation for helping is completely pure. Because, well, it MIGHT not be.

I am a blogger and freelance writer operating out of the domain http://www.aboutinvestonomics.blogspot.com. For more posts on the types of investments and a look at detailed aspects of each type, visit my blog or email me at yoheb@email.sc.edu.

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Two Of the Best Investments for Income in 2012?

By David D Garner 

In the current investing climate, Investors and Financial Planners are seeking out alternative investments capable of replacing traditional income streams as low interest rates and volatility in traditional financial assets continues to ravage the performance of investment portfolios. These negative variables, in conjunction with above-target inflation can ultimately cause a 'real' (adjusted for inflation) loss for a basic rate taxpayer needs earning less than 4%, and higher rate taxpayers require at least 6%. So where are investors allocating capital in their efforts to bolster investment performance without dramatically altering the risk profile of their overall portfolio?

One particular area of interest for many investors has been the property markets, as distressed sellers seek to liquidate their assets in order to pay down debt or free up balance sheets, well-located real estate can deliver yield of up to 15 per cent per annum. Property assets have been considered as useful income tools for years, yet faith in traditional listed vehicles such as real estate investment trusts and property funds is waning, due in part to the fact that such investments are publicly traded and invariably trade at a discount to net asset values. In fact it is true to say that any securitised investments will display a markedly different cash flow dynamic to that of a direct investment in strategic real estate assets.

The most obvious market targeted by investors in the US housing market, as banks seek to shed vast swathes of foreclosed real estate assets, and a proliferation of agents have sprung up offering investors the opportunity to acquire tenanted properties generating a monthly income equating to an annual yield of between 8% and 18%, although there are a number of mid and long-term risks associated with this investment strategy, including on-going tax liabilities, tenet management issues and of course there is a direct correlation with the on-going economic recovery in the united States which allows for tenants to afford such rental payments.

With such offers it is almost always the case that the selling agent has acquired the property and renovated for a much lower price than the sale price to the end investor, indicating that the real opportunity lies in just such an approach (buy/sell) rather than acquiring a property for the long term. Indeed, taking a more opportunistic approach allows the Investor to remain relatively liquid - rolling original capital over into further acquisitions once one property is sold. This also means that the investor gains a regular profit margin for up to 50% per transaction which making this an interesting take on investments for income, without taking on the long term risks of asset ownership.

Another option to capture a regular income stream from the opportunity presented by the US real estate market is to acquire mortgage notes. Taking this approach also eliminates the direct liabilities and risks of owning property, as this is taken on by a local counterparty who might acquire and renovated the asset and source a suitable tenant, then in order to free up capital in order to make further acquisitions, an investor offers a loan secured against the property with a low loan to value. This means the investor receives a regular monthly income, and the local counterparty gets to roll over their capital. This deal is often loaded with a further equity share, with the investor and local partner agreeing to sell the property after a number of years and split the capital gain. Throughout the term of the investment, the investor receives their loan payments (up to 9%) and the local partner is responsible for all of the tenant issues, void periods, tax, maintenance and management.

Both of these options; buy/sell and mortgage notes offer the investor a low risk alternatives to direct property investments, and can generate income yields of between 9% and 15% per annum. So whilst these options may be less liquid than publicly traded financial assets such as stocks, bonds and cash, they also serve the purpose of reducing exposure to financial markets, as well as bolstering performance and offering a high degree of capital security simply because in both cases, capital is secured against real estate with a much higher capital value than committed capital.

As always, investors are encouraged to do their research and seek out an Advisor with a track record of delivering such opportunities for their Clients.

David Garner is a Partner at DGC Asset Management, delivering the Best Investments for income seekers and growth investors looking for non-correlated, tangible assets.

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How To Train Yourself In The Stock Market To Make Money

By Jeremy Kensington 

One of the initial motivators for people who put their cash in stocks is the dream of making huge amounts of money. If you do it right, such a thing is certainly a possibility. As you may have thought, you'll need the right stock market training, a little bit of luck and the forethought to make wise decisions.

Your investment style will be dependent upon the number of hours you can spare. Being a day trader is a bad idea, unless you can allocate several hours every day! If you can allot a block of several hours each day, then you have the time to be a more involved trader and that might change your investment tactics.

You could also get ready to figure out which area of the stock market you want to focus on. For example, maybe you decide to specialize in stocks in the financial area, or perhaps energy stocks.
Or perhaps you'll decide to invest in similar groups of stocks, such as penny-stocks.

Remember to taylor your stock market training to your preferred area in the market. Of course you can adjust this if you lose interest, or if you develop expertise in more areas than one in the future.
A wise way to gain knowledge is by a lot of reading. I mean stock market specific books, blogs, etc. You absolutely have to keep in touch with the markets so that you have an idea of what's going on. You'll get a solid base education by reading news, magazines, and other stock market related items.
When you're home, switch on market news. Even if you're tinkering around the room while the channel is on, you'll absorbed plenty of knowledge.

During your training, it's a smart idea to making your investment choices using some of your picks and following the choices of a pro. Just be sure the expert actually is an expert on your type of investing.

Learning comes in many ways, and this is surely one of the positive ones. Learning from the pros is almost always a good idea.

If you take time for proper stock market training, and put in effect what you have learned for your investment tactics, you have a real chance of turning a profit.

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