Investment Losses

Ben asked:


I have recently found a very old a grey National Savings Investment Account booklet with quite a bit of money it which hasn’t been touched since 1989. The post office were remarkably unhelpful and just gave me a booklet on applying for a current investments account.

The booklet does say i need to send it off to get the interest calculated. But then it does say all information was correct at time of printing in 1987 so i wouldn’t really trust that any more.

ROBBY

lostdragonballs asked:


Im looking for investments that will increase during an inflationary period. Im not looking for arguments or opinions on if/when its going to happen just investments strategies that have a good potential to increase during inflationary periods.

Thanks,
Paul
REIT is the only thing I can remotely invest in in my company 401k plan so I think this is my best option.

JASPER

Angel Investment asked:


Read the papers today, and you’ll feel like start-ups are a rare breed in 2009. Many sources say less people are starting up companies, albeit successfully too – citing the lack of investors available as one of the top reasons. But perhaps they are not looking in the right places.

A paper in Philadelphia (Philadelphia Inquirer & Daily News) recently did a story in which a start-up CEO almost seemed to feel like securing angel investment was easier in this market than before. And it makes sense, since less competition combined with more places to look for funding make this a good time for companies to secure investment.

It is true that angel investors are becoming more cautious, and one will need a strong, convincing business plan (or some already existing activity) in order to secure such funding, but this has always been the case. However, sites such as the Mid-Atlantic Investment Network help potential entrepreneurs and existing start-ups alike find more channels in which to reach these investors.

Many companies will look to raise “Seed Capital” from a wide variety of courses, including friends and family. But the Mid-Atlantic Investment Network allows members to look beyond that, with the ability to broadcast your plans to other potential investors online.

While technology remains one of the top niches in angel investment (such as the recent development by an entrepreneur in Maryland to develop software that uses ****** recognition technology to determine who can see the content on-screen), other fields are also attracting entrepreneurs and angel investors these days. Our network has active investors and entrepreneurs in fields such as Real Estate, Retail, Business Services, Transportation, Health Care, Entertainment, Agriculture and more.

A wide range of investors are members, including various angel investors from within Mid-Atlantic regions such as Delaware, Maryland (including Baltimore), Pennsylvania (Philadelphia, Pittsburgh, etc), Virginia, West Virginia and Washington D.C, but also features investors located across the country and internationally.

Join the Mid-Atlantic branch of the Angel Investment Network today and find someone to help get your business off of the ground.



GALEN

Graeme H. Patey asked:


The markets don’t always behave the way we’d like them to: Geopolitical turmoil, natural disasters, interest rates and world events can have a profound effect on market movements. If recent market volatility has you concerned about the economy, you are not alone; this is a confusing time for many investors. Some have decided to stay the course, while others are sitting on the sidelines waiting for the market to rebound. However, since no one can predict how the markets will perform, it’s important to develop an investment strategy that can help you stay on the right track to meeting your long-term financial goals. Here are some strategies that you can implement today, that may help to manage risk during these uncertain times.

Work with a Financial Advisor. There are a lot of do-it-yourself investment resources available to investors today. However, none of those resources can replace the experienced, personal service a Financial Advisor provides. A Financial Advisor can offer an understanding of your complete financial picture, not just your investments. Additionally, in periods of market volatility when you need the most support, a Financial Advisor can provide:

• Access to important decision-making research and information;

• Ongoing monitoring of your investment portfolio, while anticipating your changing needs; and

• A comprehensive market-volatility plan.

Have a plan. Developing a financial plan is one of the best ways to meet your long-term goals. Your plan should also include an action plan to address market volatility, which should be developed well in advance of a turbulent market. Having a market-volatility plan will help you to set realistic goals and appropriately manage your return expectations.

Invest regularly. It may not seem intuitive, but investing regularly—even during market downturns—can help to reduce your overall costs. Dollar cost averaging is one of the best ways to invest regularly, since you’re investing a fixed amount on a fixed schedule, regardless of how the markets perform. Investing regularly can also have intrinsic benefits: It encourages discipline and may also ease the anxiety of daily market fluctuations.

Diversify. If you’ve ever heard the saying, “Don’t put all your eggs in one basket,” then you already have a basic understanding of diversification. Diversifying your portfolio can reduce risk and volatility if the assets have little or no correlation to each other.

Investing in mutual funds is one way to achieve portfolio diversification, since mutual funds are typically a diversified investment. There are also several other ways to diversify and potentially reduce portfolio volatility:

• Within an asset category, such as purchasing different types of mutual funds;

• Among asset categories, such as purchasing stocks and bonds; and

• Outside of the United States, since some markets move opposite to the US stock market.

Put volatility to work for you. Do you think of the glass as half empty or half full? Your perspective can affect the investment decisions you make during market downturns. Investors who view market volatility negatively can make irrational decisions. A down market can be an opportunity for you to build your portfolio and take advantage of lower unit costs.

Stay invested. You are probably anxious during times when the value of your investments has decreased. As a result, you may be tempted to move out of the market, sit on the sidelines and wait for the market to rebound. However, since no one knows how the markets will move, how do you know you’re leaving at the right time? Also, how will you know when it is the right time to get off the sidelines and start investing again?

If you have worked with a Financial Advisor, your investment strategy was developed to help you meet your long-term goals. Timing the market could potentially jeopardize your financial plan—and your future goals.

Be patient. There will always be uncertainty in the markets; market volatility is a natural part of the investment cycle. Although it may take some time, markets do rebound.

In the meantime, call your Financial Advisor to help you develop an action plan for market volatility and continue to focus on your long-term investment goals rather than short-term market moves.

Graeme H. Patey is a Financial Advisor located in Cleveland, Ohio and may be reached at

216-523-3015 or http://fa.smithbarney.com/graemepatey.

Asset allocation and diversification strategies do not guarantee a profit or protect against loss.

A periodic investment plan such as dollar cost averaging does not assure a profit or protect against a loss.

International stocks are subject to certain risks of overseas investing including currency fluctuations and changes in political and economic conditions, which could result in significant market fluctuations. These risks are magnified in emerging markets.

Mutual fund investments are subject to market risk, including the possible loss of principal. They are sold by prospectus only. The prospectus contains the investment objectives, risks, fees, charges and expenses, and other information regarding the mutual fund and variable annuity contract and its underlying investments, which should be carefully considered before investing. Prospectuses are available through your Financial Advisor or at www.smithbarney.com. Read the prospectus carefully before you invest or send money.

Smith Barney does not provide tax or legal advice, and it is important to consult with a tax or legal advisor before investing.

© 2008 Citigroup Global Markets Inc. Member SIPC. Securities are offered through Citigroup Global Markets Inc. Smith Barney is a division and service mark of Citigroup Global Markets Inc. and its affiliates and is used and registered throughout the world. Citi and Citi with Arc Design are trademarks and service marks of Citigroup Inc. and its affiliates, and are used and registered throughout the world. Working WealthSM is a service mark of Citigroup Global Markets Inc. Citigroup Global Markets Inc. and Citibank are affiliated companies under the common control of Citigroup Inc.

INVESTMENT PRODUCTS: NOT FDIC INSURED • NOT GUARANTEED • MAY LOSE VALUE



PARKER

shruti asked:


A mutual fund is a professionally managed type of collective investment scheme that pools money from many investors and invests it in stocks, bonds, short-term money market instruments, and/or other securities. Investing in mutual funds tends to lower the risk factor because they are the result of diverse investments. In order to get the most out of your returns, without paying a high fee, you need to be aware of the different classes of mutual fund stocks and their advantages and disadvantages. Mutual fund classes show the type of stocks covered under each mutual fund. The most common mutual fund classes are A, B, and C. Class A stocks attract lower 12b-1 fees and investing in such stocks makes you eligible to receive discounts. These types of stocks are considered the best to keep your investments for two or more years. Second type of mutual funds stock includes class B stocks which are characterized by their contingent deferred sales charge. Generally, they are suitable for the investors who have limited resources and are looking for long term investments. Small investors prefer these types of stocks because they are not required to pay front-end fees and the deferred sales charge keeps reducing.

Third type is class C stocks which are beneficial for those who are planning to redeem the stocks within a short span of time. This type of stocks is preferred sometimes as you don’t need to pay the front-end fees. However, there are some disadvantages of this type of stocks such as higher MER, zero discounts, lack of provision for automatic conversions and compulsory back-end load etc. Mutual fund companies often charge a higher fee when you opt to invest in high risk high return stocks. So, before investing in any type of stocks, be aware of all these factors. The analysis of the benefits and drawbacks of each class of stocks will help you to select the most appropriate investment option, based on your specific needs and preferences.

Investment Banking is one of the most competitive areas in the banking industry. Many investment banks seek to recruit candidates who are with top results from top universities or business schools. An investment banker has a wide scope for bright career in this field and you get best results in terms of handsome salaries. This is a responsible job, which needs hard work, long working hours, stamina, excellent analytical abilities, good communication skills, aptitude for numbers. Investment banking is composed of different sectors and selection of one of them depends on the interests and capabilities of an investment banker. One of them is corporate finance which includes debt and equity capital, appropriate capital structure, mergers and acquisitions etc. Second is Sales and Trading which needs fast thinking and decision making, good communication skills etc. In this sector, one has to inform the clients about the opinion of the bank on certain assets and markets. Additionally, employees working in the sales and trading department in investment bank need to have a complete understanding of the research produced by their company.

Third one is Research sector in which employees provide information to their clients about up-to-date reports on certain areas of interest. Analysts in the research department specialize in a specific business sector or area, thereby developing reports that can be safely distributed to clients. For entry level investment bankers, a position as a financial consultant is a good way to get board on-the-job training with an investment firm. Typically, entry level investment bankers have to work hard and spend long hours acquiring new clients. So, if you have a great amount of drive, determination and stamina, a career in investment banking could prove to be very lucrative, exciting and rewarding.



EDDIE

es_harper2007 asked:


I am going into college next year and want to put my summer job money into investments. Total $ will be less than $1500. WHat kind of investments will be the best for me. No short term withdrawing forseen.

DEWAYNE

illuminate asked:


I’m self employed, but aside from my business income, I have personal investments, which have produced gains of about $20K in 2007. Do I need to pay SE tax on that or just my business income? Thanks for your help.

EMERSON

a_phantoms_rose asked:


I heard that people who had investments with their brokers with the Hartford are now having problems with this investment. My brother-in-law recently invested with them. What will happen? Will he lose money because of the Hartford’s problems?

AURELIO

Debbie Dragon asked:


It would be hard to develop a strategy to pay off your debt if you had no idea how much debt you had. It’s just as difficult to develop an appropriate investing strategy if you don’t have a reason for investing. Without a purpose, it’s impossible to make decisions about the type of investments you should invest in, and without a goal- how do you measure your level of success?

People invest for a wide variety of reasons. The most common reason people invest is to save for their retirement. Most people want to stop working at a certain age, in order to enjoy the last years of their life without the stress of going to work every day. The only way it’s possible for people who are not independently wealthy (by an inheritance or a business that will operate without the owner’s input, for example) is to have money saved that can be used to pay expenses and entertainment costs once a person retires.

The other common reason why people invest their money is to reach a certain short-term financial goal.

Investing for Short Term Goals

While most people first think of retirement and long term investing when they think of investing, there are many instances when investing also includes short term goals. Buying a new vehicle, going on your dream vacation or purchasing a new home are all examples of short term investment opportunities.

Short term investing requires different strategies than long term investing, which makes understanding your investing purpose all that much more important!

If your idea is to have another income stream to supplement your salary, or to help you purchase items you don’t have the cash saved to buy, your investment portfolio should contain a mix of short and long term investments that pay dividends. It should contain low risk, high yield bonds.

If your investment purpose is to save for a specific purchase- perhaps your dream home or to take a vacation, it helps to know how much the purchase will cost and when you need the money. Armed with that information you can develop a strategy for investing.

Short term investments are known to be more challenging than long term investments, particularly if you’re not starting out with large amounts of money. Short term investments tend to carry higher levels of risk; but they also have the greatest possibilities for high returns.

Investing for Long Term Goals

The earlier you begin investing for retirement, the higher the amount of money you can create. Young investors can take advantage of compound interest, and even choose riskier investments that could result in higher returns because they have so much longer to recover from a loss than a person who is closer to their retirement age.

As you get closer to your retirement years, your long term investing strategy should contain much less risky investments- including bonds and securities, to help minimize your risks for losing your investment. The lower risk investments have lower rates of return, but should steadily increase.

Retirement investment portfolios typically contain a mix of various stocks, bonds, debt securities, index funds and money markets. Company sponsored retirement plans are great, particular those that match your contributions. It helps you build your nest egg a little faster and stretch your own investment dollars further.

As you age and get closer and closer to retirement, you should move your investments into guaranteed investments (like high interest savings accounts that are insured by the FDIC) to preserve your money so you know it’s there when you need it!



ROLAND

Shasta McNasty 2007 asked:


My company offers an employee stock purchase plan (15% off). Since the Enron implosion, I’ve read it’s not a good idea to invest a large amount of one’s money into your own company (or any one company, for that matter). What maximum percentage of my investments should I put into my company? Right now I’m putting about 15% of my annual investments in my company.

VAN