I have a guest post over at Boomer & Echo where I share how young investors can get started. It’s really for anyone though. Take a minute to read and comment. I cover a number of topics such as:
- Savings & Debt (structured finances)
- Investing Education (Books available)
- Opening an Account with a Discount Broker
- Investing Strategies (Find what works for you)
If you know someone who could benefit, pay it forward and let them know about the post!
The Learning Center
Here is a summary of pertinent topics I have written about that might benefit anyone starting with investing on their own.
In a previous post, we discussed some asset allocation basics for those getting closer to retirement. We talked about some of the main principles behind preparing your portfolio and using a more conservative approach as you get older. We looked at how asset allocation is determined by using different variables like your age, risk tolerance, and investment time horizon. In this article, we will look at a few more ideas behind asset allocation management for senior investors. As you will see, there are similarities but some important differences as well.
Here is a list of the previous posts in this series.
Asset Allocation For Those Nearing Retirement
1. Withdrawing Money. Adding money in the beginning of your investment career is very important. That helps your portfolio grow properly.
Continue reading Asset Allocation – Retirement Ready Part 2
Sometimes when you’re in the thick of a situation, it’s harder to stand back and see the bigger picture. Often you can go steaming in straight past the danger signs, and only see them once it’s too late. This happens all too often when you’re investing. Oh the power of hindsight.
However, it doesn’t have to be that way. If you find yourself doing any of the following, take note. They’re red flags that you’re doing something wrong. Pay attention to them. Then, rather than cope with regrets and learn from hindsight, you can enjoy invest successfully using the power of foresight.
Going down the ‘Get rich quick’ road
Many investors attack the stock exchange like boxers: they slip in, strike, then nip back out before their opponent floors them. This kind of thinking is red flag territory. Serious investment in shares should be long term. If you’re looking for regular returns, consider placing your money in an investment fund, investing in bonds or buying shares in a company which pays dividends. Speaking of dividends….
Not checking out the dividend policy or history
If you’re investing in a dividend-paying company for
Continue reading Spotting the Red Flags of Investment
In our previous series on asset allocation, we explored some of the basics behind managing a properly diversified portfolio. Examining risk tolerance, investment goals, and number of years to retirement are important for figuring out the correct asset allocation for you.
In general, the principles behind determining correct asset allocation are the same for those reaching retirement age. But as a rule, capital preservation becomes much more important once you get closer to retiring. Many retirees no longer work, they live on a fixed income.
Many countries do have some form of social safety net. For example we have Social Security in the United States. But it’s still important for many older people to live within a budget and many need additional income to maintain their standard of living.
So, a well-diversified portfolio focused on
Continue reading Asset Allocation – Retirement Ready
One of my investing principal, which Derek Foster highlights in The Lazy Investor, is to pick companies you know and that you need regularly. The best place to start was with utilities and energies. Over time, I started thinking that Telecoms have also become utilities in a way and I now think that Microsoft has also reached that point. Of course, it will never be a utility as the true definition of the utility but from a service perspective, can you live without their services and more importantly, can businesses live without its services?
The latest round of earnings had Microsoft show they can generate cash. The lack of PC sales has not hurt Microsoft like DELL and Intel. In fact, Microsoft is showing that it can be profitable despite the PC sales.
- Corporations are upgrading to Windows 7 as the operating system and deploying their cash after the financial crisis to keep up with technology requirements.
- Microsoft Office continues to be THE productivity software suite of choice – who doesn’t use a spreadsheet.
Continue reading Is Microsoft a Utility?