Investment
Investment questions and answers
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Q: Investment?
I need to set up a policy to repay me 100000 in 30 years time. Can anyone advise what the cost is likely to be per month and what they think the best investment would be? Endowment, ISA etc etc.
Financial advisers will advise whatever gives them the better commision I think!
A: 100000 is not going to have much purchasing power in 30 years. If you meant 1000000, then you are getting there, but even that might not sustain you for the rest of your life in and of itself given inflation/rising costs... If this is for insurance, you should only go for term and invest the difference that you would otherwise have contributed to a whole/variable life policy. Since the S&P over any contiguous 10 years has yielded over 12%, and there are several funds that perform better, if you had say 50,000 to put away now, you would have over $1M in 30 years. Or, if you had 10,000 to invest now and could add 2,000/yr you would get there as well.
Suze Orman's twelve steps to wealth: Step Eight: Insuring Your Well-Being. I always say, "People first, then money, then things." That's how you should tackle your insurance. There are three broad types of insurance: life, health, and protection for possessions. Find out what you need as a baseline:
Life Insurance
If a child, a spouse, a life partner, or a parent depends on you and your income, you need life insurance. Keep it simple and buy term life insurance; it's good only for a specific number of years and then expires. That's okay—life insurance wasn't meant to be permanent; it's there to protect your family before you've had a chance to accumulate enough funds (through investments and savings) to do so. Most people should get a 20-year level term policy that has a value equal to 20 times the amount of annual income your family needs to live securely. For example, if your loved ones need $40,000 a year, then you should purchase $800,000 of term life insurance on the person—or persons—whose absence will affect those left behind. It's not that expensive: A 20-year $800,000 term policy for healthy, nonsmoking men and women who are about 35 years old is around $45 a month. Check out www.selectquote.com to shop for term policies.
Health Insurance
Those who have been laid off or are worried about losing their job and health insurance coverage should shop around. Ehealthinsurance.com offers the largest individual and small-business health plan selection across more states than any other online or offline source. While many employers must extend health insurance coverage to all laid-off employees for 18 months—thanks to a federal law known as COBRA—you must pay 100 percent of the policy premium. Chances are good you can get a less expensive policy by doing your own shopping.
Policies that Protect Possessions
Whether for your house or your car, buy a policy with the highest possible deductible to get a more affordable premium (the annual cost of the policy). Deductibles are what you pay first, before your insurer kicks in any money when you make a claim. These days, insurers will jack up your premium or deny future coverage if you make a lot of claims. So go with a high-deductible policy that you intend to use only for catastrophes. You can shop for homeowner's insurance at www.insweb.com. And for renters: Your landlord's insurance protects only the physical structure of the home. You need to purchase renter's insurance to protect your possessions. Renters-insurance-quotes-online.com has good information and free quotes on policy prices.
Q: What is the best investment for your money?
What is the best short term investment for one's money with the highest return, with the lowest amount of risk? I'm invested in CD's and they give a good interest rate and very skeptical of the stock market yoyo and not interested in the shaky housing market. But my question still remains and want to know what do you think would be the best investment, also thinking about foreign securities, but what do you think is a good investment and also for retirement long term too?
A: At the moment, t-bills. Better than cds. No state and local taxes.
Long term--a variety of index funds and mutual funds with different investment objectives. Examples: PENNX--small cap stocks, SPY--large cap stocks, SWZ--Swiss stocks, TDF--Chinese stocks, IJH--mid cap stocks.
Q: Is investment in Jomtien (thailand) condos among very good investment options in Asia ?
I am exploring investment in Jomtien (Pattaya, Thailand) condos. I like to know if Jomtien is possibly among the very good real estate investment destination and can i expect 30% appreciation per annum. I hear them some of the Thailand's highest towers are being built in jomtien beach. I would like someone to also list top 3-4 condos schemes for investment in 2008, and some websites that give comparison of multiple schemes and most updated information.
A: sir
In India there are lot of opportunities where you can invest your money ,if you are sincere please just drop a line,
I shall be here to reply your queries
Q: How does one start an investment banking business?
How do you get the money? What documents/contracts do you need? This will probably differ than other businesses. For example, it would seem a little odd for an investment banker to go to another investment banker to ask them to invest in their investment banking business. Technically, where exactly do you get the starting money? Answers will be appreciated. Thanks!!!!!
A: Become a stock broker. Build a successful and happy clientele. Move up into the retail and investment banking groups. Keep building your happy clients. After 10-20 years, break away to start your own operation and take clients with you. If you're consistently good at selecting profitable investments than your track record will attract money. Then you'll have 401k managers, credit unions and other institutional investors prepared to put in tens or hundreds of millions of dollars. Basically, this is a lifetime ambition like running for president. It starts from college.
Q: How is work in the investment industry like?
Hi, I am considering a career switch to the investment industry from an engineering career. I am considering of taking up the CFA program to equip myself with the technical skills required for this industry and at the same time, to enable me to step foot into this industry.
But before I decide whether to enroll in the CFA program, I would like to find out if this industry is really suitable for me.(I do not have any friends working there).
Is there anyone who is working in the investment industry who is willing to share with me his experiences and how the work there is like? Especially people who are in same situation as me (who made a career switch) ?
Also, I'm quite interested in research and analysis of stocks and equities, and I'm strong in numerical aptitude. What kinds of jobs are there available in the investment industry that will allow me to utilize this strength?
Thank you for your replies in advance!
A: Give me an e-mail. I have a CFA charter and have worked in equities for more than a decade.
There are lots of different types of work in "investments" from trading, to sales, to research, to syndication, to private equity, to fund management and on and on.
The most likely sub-segment that would need technical skills is the following:
a) Research. This is where you do buy-sell-hold recommendation reports on company. You can work for either the equity side (stock analyst) or bond side (credit analyst). Then you can work for either the buy-side (mutual funds, insurance, hedge funds) or sell-side (brokerage). Typically, you need a thorough background in accounting, a good background in finance (as evidence through CFA program) and then an industry background that gives you a leg up when giving research on a specific industry. For example, your typical pharmaceutical analyst for brokerage has an MD. It isn't required, but it does help, especially for more technical industries like medical, technology and energy. Long, long, long hours. Bad job security. Very, very competitive. Bonuses can be very good. Politics can be very tough. You must be kind of a know-it-all freak (like me) in order to really enjoy this job. I am and I did.
b) Corporate Finance. Instead of doing agency work, you're doing primary work. You're doing lots and lots of pitch books to land deals to underwrite IPOs, equity placements or debt placements. Once you win a deal, then you then do lots and lots of writing for the Red Herring/Prospectus. Job can be repetitive. Travel can be large %. Pay can be very, very good.
c) IT back-end. This is only if you're hard core software engineering type. This is where you use your knowledge of finance to help design software. This is the flip side. Pay can be outstanding.
Q: What types of investment plans are out there for young entrapeurs?
I am constantly wondering what types of investment plans or other forms of investment are out there for young entrepeurs who just want to make quick money legally. Therefore, just prove a full explanation of your opinion. Thank you.
A: well, you've posted in Real estate asking for investment plans for entrepreneurs. You're mixing up 3 different things. What do you want to do? Invest? start your own business? buy real estate? go to a bookstore and read any of the 100's of books available on all 3 subjects
Q: What is an investment bank and how does it differ from other banks?
What does an investment banker do that other bankers do not? How is someone deemed qualified to be an investment banker?
A: They deal with large corporations. They help them go public and get listed on major stock exchanges and they mergers and help companies buyer other companies. Big deals for big... as in billions... deals. You would need at least an MBA to try for such a job
Q: What role did investment play in the industrialization of late 18th and early to middle 19th century America?
What role did investment play in the industrialization of America around 1790-1860? I'm writing an essay where I have to examine the roles of several things in the industrialization of America's industrial boom, and investment is one of the many things.
A: It was obviously essential. You can't build a business except by investing in it.
Obvious question really, IMHO.
Q: Can your investment representative be cheating you out of your profits?
I invest in mutual funds with a group I will leave anonymous. I just started. I know that mutual funds are like stocks and any other investment there's a chance you can lose money. However, is it possible the representatives can be storing away any profits that you did make into their account and making it look like you lost money from the investment? If so, I might just go to saving money from the bear market point of view. Savings bonds, Certificate of Deposits, savings account, and any other sure profit investments rather than these unpredictable and shady investments strategies. What do you think? Make money the old fashioned way and just save it?
A: make sure your statements are coming directly from your mutual fund company, they should mail those to you on a regular basis. make sure when you make a depost into your account the check is made out directly to the mutual fund company, not to your broker or his company. make sure the address on your statements is your address. if you do these things, nearly impossible for him to be stealing money from you. investing inthe stock market and mutual funds is 10 time better than putting your money in the bank. you need to have some money in the bank for emergencies and spending money, but that is about it. invest as much as you can each and every month. if you are a good saver and patient, you will be a great investor.
Q: What is the safest investment for 10 Lakh Rupees for a period of 1 year in today's market condition?
I don't want to lose a single paisa from my investment, that's my primary condition. I know, bank fixed deposit is the safest for a 1 year investment, but is there something else I may be missing out ?
A: Invest in Bank FD with any nationalize Bank.
This is the safest option in today's uncertain financial market.
Q: What is the best way to handle large investment losses on my taxes?
I really screwed up and have over $50,000 in investment losses this year! Our gross income from salaries for this year will only be around $50,000.
In addition, I lost $5000 in my Roth IRA. I just read that I can only deduct $3,000 in investment losses. Does that include IRAs PLUS regular investment activities?
Also, will any interest I accrue via CDs or dividends from stocks or mutual funds essentially be tax-free now since I have such a large investment loss? Or is that a different category?
Please help, I really screwed up this year and am hoping somebody has some suggestions to make this better. Thanks in advance!
A: Actually, you have lots of questions here. First, investment losses are to be offset against investment gains (that includes any capital gain distributions from your mutual funds), but no greater than $3000 per year can be deducted on your tax return. The balance of the losses can be carried forward to future tax years, but no greater than $3000 can be written off in any year.
Your Roth losses aren't deductible since they're in a tax deferred investment.
As far as your other unearned income being tax free, only insofar as it's no greater than the $3000 of losses. Investment losses must be offset against investment gains, not other unearned income like dividends, interest, or earned income like wages.
Hopefully, your next investment will give you a $47,000 gain and you can get rid of all of your carryforward losses next year!
Q: How do I deduct investment advisory fees paid for professional investment services on my 2008 federal taxes?
What form do I use?
Is there a limit to the fees (I payed about $8K for investment fees)?
Do the fees get bundled into other "deductoins" so that I have to meet a threshold of expenses?
Thanks all!
A: Investment fees are a miscellaneous itemized deduction subject to the 2% AGI limit. Claim them on Schedule A.
Q: What would be a good investment strategy for me?
I'm 28 years old, I make a little over 200K a year and i have over 300K in liquid cash in separate bank accounts. I don't know what to invest in because the market is garbage. My goal is to have a million by the time I'm 35 and I hope that with solid investments and some possible continued growth in income, I can accomplish this. Can someone give me some good investment strategies?
A: A number of busy professionals hire the services of a money manager to help them manage their investment portfolio.
Money managers are defined as "A business or bank responsible for managing the securities portfolio of an individual or institutional investor."
Typically, money managers are qualified professionals whose job is to help you get the best return for your money. They research and select different investment options, monitor the different markets to help you maximize returns.
In return for a fee, your money manager will help you develop an appropriate investment strategy, and buying and selling securities to meet those goals. With fee-based management, as opposed to transaction-based management, you and your advisor are on the same side. You no longer have to question the decisions of a broker to buy or sell your securities.
A professional money manager does not receive commissions on transactions, but are paid either based on a percentage of assets under management, or earn their fees based on returns generated for your portfolio. Therefore, it is in the best interest of both the money manager and client to see the portfolio grow.
Google "money manager" to find a manager that's good for you.
Good luck and have a nice day!
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Q: What is a good financial investment type of gift for a baby?
An investment that requires less than $100 to purchase, but will yield much more after 18 years? Preferably a low risk investment.
A: US Savings Bonds make a great gift. You purchase them for half of their face value and have no risk. When the baby grows up, she/he will have a bond worth double what you paid for it!
Q: What is right investment to do in Inida right now considering the inflation rates?
Where a normal working class can invest now to secure him and his family future? Best available investment plans? Kindly let me know
A: Now a days Reliance mutual fund or reputed m'funds r best advisable.
2)Fix deposits with Nationalised Banks.presently they offering 10% pa.
All the best