You worked hard for your money, and deserve security and honesty when investing it. The sad truth is, there are numerous people out in the world willing to lie and deceive in order to get your money. Ponzi schemes are just one way fraudulent individuals try to cheat honest people out of their money.

However, don’t let the threat of a ponzi scheme frighten you from taking a chance and investing your money, there are ways to check and ensure you’re not being had before you choose to trust an investor with your money.

Anyone can just refer to themselves as a financial planner or advisor, and making sure they’re legitimate is the first step to ensuring they are who they claim to be.

Check with the Financial Planning Association, National Association of Personal Financial Advisers, and the Certified Financial Board of Standards and their searchable databases for information on the person you intend to trust with your investment.

The next step is to dig even deeper and learn more about the person. The Securities and Exchange Commission carries a copy of every investor’s ADV form, Part II; which contains all information about the investor’s services, fees, and background. Check for complaints or charges filed against the investor and be sure to visit any website associated with them, it never hurts to double check against all possible sources of information.

There’s a definite difference between an investment manager and an investment custodian. A custodian has full control of your investment and issues periodic statements about transactions; a manager simply executes transactions on your behalf.

The two functions should never be in the power of one person, and knowing when to keep them separate is paramount to smart investing. Ensure you receive quarterly statements and never give an advisor power to control transactions involving your money.

Being skeptical of exotic or obscure products or services from the investment company can help you avoid a ponzi scheme as well. Planners, brokerages, and banks have a wide range of financial products and services they offer, and ponzi schemes take full advantage of it. If you don’t understand it, don’t be a part of it; avoid pitches for asset classes you’re unfamiliar with and don’t understand the process of. If it’s not a transparent transaction, it’s usually best to avoid it.

Finally, if you’re near or entering retirement, take extra care when checking a financial advisor. You’ve worked hard all your life for this break, and a ponzi scheme shouldn’t take it away. If you’re offered returns that seem unbelievably high, then the warning bells should already be sounding.

If you are looking for non-domestic investment opportunities you may want to consider Swiss annuities. Swiss annuities have a history of being one of the most stable investments available worldwide. The annuities are issued by Swiss insurance companies and come in a variety of flexible options including immediate, fixed, deferred and more. Most often the annuities are denominated in Swiss Francs but can also be issued in other currencies. Here is a closer look at Swiss annuities and what makes them a safe investment opportunity.

What Makes Swiss Annuities A Safe Investment

Swiss annuities, over the years, have proven to be an extremely stable investment. Even during times of economic turmoil, times of high inflation, etc. Swiss annuities have always fared well. To date no Swiss insurance company has ever filed for bankruptcy and the Swiss economy is one of the strongest in the world, meaning the chances of a company going under are pretty slim. Additionally, Swiss insurance companies are regulated and must keep a reserve fund just in case.

Other Advantages Of Swiss Annuities

Besides being stable investments, Swiss annuities have numerous other advantages. When you invest in Swiss annuities you will be privileged to the following:

• Unmatched safety and security over other investments.
• As a Swiss annuity investor your privacy is taken very seriously and you can be rest assured your privacy is highly regarded and protected.
• Your funds are protected from creditors and in almost all cases cannot be touched even if you file for bankruptcy.
• Funds are easily liquidated and most funds can be dispersed just one year after opening your account, without penalty.
• Your money is not subject to Swiss taxes including the typical 35% Swiss withholding tax.
• Fixed annuities have a guaranteed return.
• In most cases you can convert your domestic annuity for a Swiss annuity tax free.

Should You Invest In Swiss Annuities

Deciding whether or not to invest in Swiss annuities is really a personal decision. Swiss annuities, to many people, are an attractive investment option considering their stability and guaranteed return. The most important thing you should keep in mind as an investor is that your portfolio should be diversified. Swiss annuities can certainly help to round out your portfolio, but at the same time should not be your only investment. They are a great option when looking for low risk funds.

Other Things To Consider

No matter where you decide to invest your money it is important to realize that there will always be some risk. Even though Swiss annuities have a strong history of being safe that does not mean that their future is guaranteed. Even though the Swiss have one of the most powerful economic and political countries in the world, there is always the chance they could falter. Before investing your money it is always a good idea to carefully weigh the pros and cons of each investment opportunity and working with a financial planner to help guide you in the decision process is also a smart idea.

photo credit: Raul Garcia Piñero

Deciding where to invest your hard earned money can be a challenge. With so many options available it can be tough to decide what type of investment account(s) is right for you. One option you will highly want to consider is a mutual fund. Mutual funds are a great way to invest your money into a diverse portfolio. Here is a look at what a mutual fund is, how they work and what the advantages of investing in one are.

What Is A Mutual Fund

When you invest into a mutual fund you are investing your money into an account where money managers of the account combine your cash with thousands of other small investor’s in order to create a diversified portfolio. When you invest your money into the mutual fund you receive a certain number of shares of the fund you have contributed to. The fund manager is then responsible for taking the pooled money that has been deposited into fund and invests it in a variety of stocks and bonds. You then will receive a cut of the return based on the percentage of shares that you own.

There are numerous advantages of investing into a mutual fund including the following:

• Investing into mutual funds does not require a large upfront investment. For as little as about $1000.00, or even less in some cases, you can get started at investing into a mutual fund.
• Mutual funds offer buyers a diversified portfolio.
• Mutual funds offer the convenience of being able to easily invest your money without a lot of work on your part. It is much more complicated to invest you money individually into stocks and bonds.
• Mutual funds are easy to manage in that you as an investor do not need to take the time to research every stock and bond that your money is going into. Professional account managers who are educated and skilled carefully select where funds will be invested.
• Mutual funds are easy to buy. You can easily purchase mutual funds through a broker or on your own.
• Mutual funds are easier to liquidate than other investment options. Most mutual funds offer a daily payout option. In other words, when you are ready to cash in your fund you can do so without having to worry about finding a buyer like you would if you owned individual stocks, for example.

There are some disadvantages that you will want to consider as well:

• You do not have control of exactly where your money is going. If you are someone who always has to be in control a mutual fund may not be a good option for you. Your return is based on the mutual fund manager’s choices and not your own.
• The cost of owning a mutual fund can also be higher than other investment options. Sales commissions can be high and you will want to be aware of what fees you will be paying before you invest.
• Just like every other investment that you make, there are no guarantees that you will actually see a positive return.

photo credit: Poppy Wright

In today’s economic environment many people are shifting their investment strategies. While at one time many investors were willing to risk their money for the chance of a high return, today more and more people are no longer willing to take the risks they might have in the past. When it comes right down to it, many people are looking at more conservative and safe investment options. One popular investment option is Gold ETF Investing. Gold over history has been a pretty safe investment option and more and more people are turning to it today.

What Exactly Is Gold ETF Investing

Gold ETF investing is a means for investing in gold that removes the hassle and makes it possible for just about anyone to make the investment. If you were to purchase gold on its own, there is a great deal of care that must be taken in order to protect your investment. ETF gold investing eliminates the need to insure you investment as well as worry about where to store your purchase, how to protect it and more. You do not need to worry about moving the gold once purchased or go through the hassle of transferring the gold again when you decide to sell.

When you invest in a gold ETF fund, the fund will maintain and protect your investment. ETF gold funds purchase large amounts of gold and take on the responsibility of housing and protecting the gold for you. They then issue gold shares in baskets, allowing you to easily invest by purchasing shares of gold.

Purchasing Gold Through A Gold ETF Fund

Purchasing gold is actually very simple through an ETF fund. Most ETF gold funds are traded on the American Stock Exchange and any investor has the option to invest in gold shares. Trades are extremely simple and very often carry a lower transaction fee compared to other investment options. Investments are straightforward and when the price of gold rises, your investment will go up at the same rate, meaning that if gold was to go up 5% your investment would also go up by 5%. Additionally, you can usually invest in small amounts at one time making investing in gold shares affordable. Most funds will allow you to start your investment with as little as one ounce. Finally, you can invest in a gold ETF fund through a broker or right from your own on line account.

Tax Advantages

Investing in gold also offers some great tax advantages that you will want to be aware of. As an investor you will not need to pay capital gain tax on your gold investment until you decide to sell and liquidate your return.

What You Need To Consider

Overall, investing in a gold ETF fund is considered by many to be the most advantageous way to invest in gold. There are numerous ETF funds to choose from and you will want to carefully examine each one before making a decision on which one is the right one for you.

photo credit: Jeremy Brooks

Today’s ever unstable financial environment there is always the risk of another big stock market crash. In order to protect your money the best advice anyone can give you is to plan ahead and be ready, just in case. Here are some great tips that you can use to help plan, prepare and survive a stock market crash.

Diversify

when it comes to your investment strategy make sure that you don’t put all of your money in one place. In order to survive a stock market crash your best bet is to diversify your investments, making a sound portfolio. You may want to consider some higher and some lower risk investments like a combination of stocks and bonds, for example. Additionally, you may want to consider other investments like fixed annuities, gold, real estate and even CD’s and money market accounts.

Know Where Your Money Is

When you invest, in order to protect your assets, you should always know where you money is. In today’s financial climate you will want to know what companies you have invested in and make sure you feel confident in your choices. This may mean doing some serious research including looking at the company’s financial reports and more. Additionally, after you have made the decision to invest in a certain company’s stocks you will want to stay abreast of any company changes.

Get Prepared Now

In reality a stock market crash can happen on any given day and the more prepared you are to handle it, the more likely you are to survive it. The best thing you can do is to get your finances in good order so that if you were to take a hit, you would still be ok financially. In order to do this you should highly consider paying off as many of your current debts as possible. This might include credit card debt, car loans and yes even your home mortgage. Additionally, you may want to consider an emergency fund that would cover all of your expenses for 3-6 months. You would want this money to be in a no risk account and easily accessible.

Know There Is Always A Risk

What many people fail to remember is that investing in the stock market is risky and when you make an investment you are taking a gamble. In reality, even though highly unlikely, you could wake up one day with all of your investments in the market gone. Before entering the market, make sure you are prepared to handle the risk.

If The Market Crashes Don’t Panic

Finally, if you do find yourself a victim of a stock market crash don’t panic. One of the worst things you can do is to sell out, as you will most likely lose a great deal of money by doing so. History shows that the stock market will recover and you will need to stay calm and in control. If you have followed the above advice you will be prepared and ready to weather the storm.

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All kinds of advertisements and companies have been promoting buying gold as an investment for a number of years now. You are always hearing about how you should buy gold for a secure investment, and that it is the future of our finances while we are in such a financial crisis and have a lot of insecurities about our financial futures. Many believe though that with all of this activity, gold has been overbought and that the gold market will eventually drop and there will be vast amounts of people trying to sell their shares.

Gold ETFs

People invest in leveraged gold ETFs usually because it gives them a greater opportunity for getting high profits out of the gold market. Investors in this market find themselves making more than in the physical gold market. As an investor, however, you need to understand what can make the market on gold rise and what will make it go down. If you are aware of these things, you can keep track of the gold market and your investments much better than if you were not.

Is It Time to Sell Your Gold?

With the gold exchange traded fund or ETF market being up 28% this year so far, it is bring a lot of people to start saying that gold will eventually approach a bubble. But, the reasons for buying gold have remained unchanged, and investors are still running to gold for a secure long-term investment with the shakiness of the economy ever-present.

With the huge stock market plunge, the sales of gold have surged considerably, and a lot of people thing that this is going to create a huge plummet in gold soon with many thinking that the gold markets are heading into a bad period and many will most likely sell.

Not everyone believes that getting rid of their gold is the answer however, and that the massive selling of gold that will most likely occur will cause a healthy correction that is needed to rebalance this market. Although this time of year gold is usually not as popular after a summer of being pushed to high popularity, the rise of sales of gold that has happened lately will be what causes this sharp correction to the gold market. If this happens, it is advised that you be on the lookout for it, as it will be a good opportunity for buying into gold early in the autumn season.

Gold News

With gold prices nearing $1830 an ounce just this past week from concerns about the global economy and after Venezuela announced plans to make its gold mining industry nationalized, investors are still turning to gold for investments that they can put their trust in. With the consistent recession-like occurrences going on in the United States, gold is still being looked at something that is more secure than other investments in the long-term, especially with the stock markets buying off. The rise in people buying gold ETFs can be explained easily when you look at these reasons to why people are investing in gold in the first place.

photo credit: Tamara Manning

Almost every state offers a 529 savings program for investment in college funds. The plans are quickly becoming more and more popular because they offer high contribution limits and are federally exempt from taxes when the monies are withdrawn to use for college expenses.

Most people choose to stick with the plans offered in their state but this might not always be the best option. Almost half of the states offer some sort of incentive for residents so it is worth looking into what incentives are offered in your home state before venturing out to other states.

When considering investing in a 529 savings plan there are factors that must be looked at carefully:

• Fees
• Quality of investments being made
• Flexibility of the investment choices
• A good record from the fund company of treating shareholders properly

Types Of 529 Savings Plans

There are two types of 529 savings plans investments. The first option is a savings plan. The savings plan allows for the entire amount of your investment to be used at any accredited college or university in the country. Investors will contribute to an account on behalf of a beneficiary and will have control over the investments being made through the fund. The savings plan allows for the entire amount of your investment to be used at any accredited college, accredited online colleges, or university in the country.

The prepaid investment provides for the purchase of tuition credits for a pre-determined amount of money. These plans are sponsored by the state and are meant for attendance at colleges and universities within that state.

States Worth Looking Into

With these concepts in mind, there are a few states that stand out as stars in investing in 529 savings programs, all in different ways.

Low Fees. The Illinois Bright Start College Savings Program is good for those looking to keep investment costs low. This plan is sold directly through the state and therefore no broker fees are involved. Illinois residents are also allowed a tax break for their contributions.

Best Mix of Investment. The College Savings Plan of Nebraska has very diverse options for investing. It offers a selection of 20 different funds ranging from Fidelity to Vanguard and it keeps the fund costs and maintenance fees to a minimum. Nebraska offers tax breaks for residents who contribute to their 529 program.

Best Conservative Option. The Michigan Educational Savings Program is run by TIAA-CREF and it is a good option for those who are reluctant to invest in the stock market. This plan offers a minimum yearly interest rate and guarantees principal. The annual fees in Michigan are very low. The Michigan program also gives tax breaks to Michigan residents when filing yearly taxes.

Best For Using An Adviser. Virginia’s College America is one of the largest in the country and remains reasonably priced. The brokers have a wide range of investment options to cater a plan to suit the individual. The use of a broker also will come along with higher fees.

There are no rules dictating that you remain in your home state when considering investing in a 529 college savings program. Some of the states offer lousy programs and it may be worthwhile to check out what other states have to offer. Keep in mind though that many states offer tax breaks and those tax breaks may still make your state a better option.

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Perhaps you do not have experience with the stock market and just want to try your hand at investing. Maybe you just want to be able to say you own stock in a particular company, or in general. Maybe you want to present a quirky or commemorative gift to someone. Regardless of your reasons, you have the option to purchase one share of stock.

Because buying one share of stock is generally not a huge investment, using a financial adviser or brokerage house is probably not necessary. You can visit the internet and search for the stock you want and make your purchase online.

Investing

To purchase one share of stock for investing and learning about the stock market, decide upon the company you wish to purchase stock from. One share of any stock is not going to make you a huge amount of money, but it can teach you how the market works, how trades are conducted, and how much you can expect to earn in fluctuating market conditions. So it probably isn’t too terribly important which stock you pick.

What is important is to compare the fees of the various online brokerage firms that sell the stock you want. Some firms require a high minimum balance, and that won’t work if you are just looking to buy a single share of stock. Most have per trade fees, so it doesn’t matter how many shares of stock you buy, you’ll pay per transaction. Look for the firms with the lowest per trade fees, their other services probably don’t matter if you are just looking to try the stock market out.

Targeted Stock

For one reason or another you want to own stock in a particular company. Maybe it’s a local company and you just want to show a token of support. Perhaps it’s a large company who’s shares are doing really well, but you can only afford one share. Either way, you’ll go about purchasing the stock the same way you would if you were just giving the market a shot like described above.

Use the internet to search for the stock you want. Compare fees of the brokerage firms. Then choose the stock offering at the firm that will cost you the least amount in fees. Complete your purchase. It’s that easy!

Novelty or Specialty Stock

If it’s a quirky gift you are after, one share of novelty or specialty stock can make a great impression. Let’s say you want to buy one share of stock in the moon for your favorite budding astronomer. You are going to go about purchasing the stock in the same way as described above.

However, there can be many more fees associated with buying specialty stock then with one share of regular stock. The firm my charge you a fee for a special commemorative certificate for your stock. They may also offer additional services at additional fees, such as, putting the certificate in a keepsake frame, or offering personal engraving. Don’t forget, this is in addition to the cost of the stock plus the per trade fee. Shopping around for the cheapest fees can save you a lot of money.

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Rising fuel prices make investing in oil and gas more popular then ever before. But finding the best oil and gas mutual funds can be tricky business. Playing in energy requires knowing what you are getting involved with and a strong ability to monitor the market and know how and when to take action. If you have strong knowledge of the market and the ability to monitor your shares, then investing in oil and gas mutual funds can be a fantastic way to diversify your portfolio of investments.

Choosing how to Invest

Deciding whether to use your personal financial adviser or going it alone through an online trading account can be a tough decision. Getting the personal recommendations and advice of a trusted financial adviser can be costly but beneficial. If you’ve already been working with a financial adviser, then they know your financial situation and understand your portfolio and can help you make the best investment decisions.

Using an online trading account can be a little more cost effective, but you don’t get personal attention. However you can take your time searching through the options. You will be able to access several types of mutual funds and see which ones are performing well and which ones might fit your portfolio. You’ll be able to research and make decisions on your own time.

Which ever method you choose there are commonalities in how you should proceed. You should look for no load mutual funds so that you avoid lots of extra fees. The commissions and management fees that each brokerage firm charges is different, and paying attention to the funds that have the lowest associated fees is important. You want your investment to yield you a high return, not pad someone else’s wallet.

Choosing Oil and Gas Funds

When choosing a fund, look for one that has a good 10 year, 5 year and 1 year gain. While the one year outlook might not be so good, it can be an indicator of where prices and profit are right now.

The price of oil hinges on multiple factors and can make investing in an oil and gas mutual fund risky. However, with the right investments and right moves it can be one of the most lucrative investments in your portfolio.

Pay attention to the economy. Whenever the price of oil drops, it’s a good time to consider purchasing at least the $100 minimum. Keep an eye on the political climate in the Middle East and North Africa which tends to affect oil prices most dramatically. If you see prices sink, grab up as many shares as you can reasonably afford. We all know that oil prices will rise at some point and will make your investment profitable.

One Oil Mutual Fund Example

ProFunds UltraSector Oil & Gas Investor Fund (ENPIX) is one way to get into the oil and gas sectors.  Year to date the fund has returned 19.2% and that’s following a 25% return in 2010.  Not to shabby.

Remember though that dealing in energy is very risky, so never invest more then you can afford to lose. Be sure that mortgage and rainy day funds are secure before you start dabbling in the energy market.

photo credit: EstuarineDesign

With the struggling economy, everyone is concerned about their investments as well as their immediate financial status. Knowing your way around the stock market index and what it is can help you track any investments you do have in various outlets like mutual funds and stocks, and also help you to decide where you would like to purchase investments.

A stock market index is used to measure the performance of a specific section of the stock market. If stocks in a certain group change value, so does the index. The rise and fall is usually marked by points, but the best way to check the index value is to compare it with a previous value such as the day before. Measuring the market by these indices, rather than individually looking at stocks, helps to see the health of the market as a whole. The different types of indices are put into categories such as world or global index markets which include the large companies, and a national index which follows the markets of a particular nation.

Some Types of Indexes Include:

• The Dow Jones Industrial Average – The DJIA is probably the most well-known index, put into place when Charles H. Dow created the method of measuring the market health by taking averages of different stocks in 1896. Originally it was comprised by adding up the price of each share of several different stocks and then dividing to find the average, but market splits and other changes over the years have made the number much smaller, more like under 0.2 percent.
• The Standard & Poor 500 – an index that is supposed to represent the largest American corporations, and was first put into place in 1957. It is made up of 500 of America’s most traded stocks and is a much better indication of how the market as a whole is doing, representing about 70% of the total stock market value in the U.S. The S & P is also a good indicator because it contains stocks in many different areas, including health care, technology, energy, and industrial.
• The Nasdaq Composite Index – Commonly used to measure the health of the tech market, the Nasdaq includes more than 5,000 companies, including Microsoft. Some of the companies are not based in the United States, however. The Nasdaq also includes other stocks such as insurance, financial and industrial, but most times people overlook these to look at the tech side of it.
• The Wilshire 5000 – This index includes over 7,000 of the 10,000 stocks that are traded in the U.S. Because of this, it is generally referred to as the total stock market index. This index is still relatively new, though, since it was founded in 1974, and is generally not referred to as often as the S & P, even though it is an almost perfect representation of the entire United States Market.

It is important to follow the stock market index if you already have or are going to purchase any stocks or bonds so you can keep track of how your investments are doing. This can keep you alerted to the value of your investments and whether or not you need to make changes in your investment portfolio.

photo credit: MyTudut