GICs Offer Predictable Investment Returns and Some Have Insurance Benefits Too

Its a rather strange question to be sure, but after experiencing one of the worst economic downturns since the Great Depression, many investors are looking for safe investment products that are capable of producing predictable investment returns. For many, this means investing in guaranteed investment products, such as guaranteed interest Contracts issued by insurance companies (GICs) or Guarantees Investment Certificates issued by banks (bank GICs).
These guaranteed investment products that earns interest may not seem as appealing or exciting as investing in an emerging market mutual fund or commodity index the variable chili peppers of the investment world. In fact, to some people, they are uninteresting investments in the same way that broccoli can seem uninteresting when compared to the latest gourmet food trend. We all know that broccoli is very good for you, and it is highly recommended by nutritionists everywhere. But, given the choice between a side of boiled broccoli and a side of roasted garlic “smashed” potatoes, its not unusual to find the better-for-you option politely left behind.
Nevertheless, with many stock market indexes reporting negative returns, a little certainty can go a long way towards providing you with more confidence when saving for your retirement. And there is a lot more to todays insurance GICs than many people may realize, making them healthy additions to any well-balanced financial plan.

GICs A Healthy Addition to Every Financial Plan
Diversifying your investments among equities, fixed-income investments and cash has been the cornerstone of sound financial planning strategies for some time. And GICs can be a great fit for many investors looking to add more certainty to the fixed-income portion of their portfolio.
GICs do offer one very important advantage when compared to other fixed-income investments: they offer a guaranteed interest rate, no matter what the financial markets are doing. This can help to reduce overall investment risk within your portfolio while youre saving for your retirement years.

The Insurance Advantage
Many investors realize that you can purchase bank GICs at your local branch. But did you know you can buy similar investment products offering very competitive rates from insurance companies?
GICs issued by insurance companies offer three distinct features that set them apart from bank GICs: an estate planning benefit, more extensive potential protection from creditors and tax advantage for non-registered contracts. The estate planning benefit means that if you name a beneficiary other than your estate on the insurance GIC contract at the time of purchase, the proceeds (including interest) of your investment will bypass your estate if you pass away. This is significant because it means that your beneficiaries will receive the proceeds privately* and directly, without administrative charges, while avoiding potential probate** and estate fees.
Insurance-based GICs may also protect your personal savings from professional liability. As long as the GIC investment is made before an individual or business runs into financial difficulties, generally the proceeds of the GIC will be protected from creditors with the appropriately named beneficiary. This can be an attractive feature for owners of small businesses or those in any other profession where liabilities have the potential to threaten your personal savings.
* Not applicable in Saskatchewan
** Probate is not applicable in Quebec

For Clients age 65 and older, interest from a non-registered GIC is eligible for the pension income tax credit and pension income splitting.

Say “More Please” to Todays GICs
If you are looking for ways to add more stability to your overall financial plan, speak to your advisor about adding insurance GICs to the fixed-income portion of your portfolio. Not only are insurance GICs a healthy addition to your financial plan, but with options that include cashable, non-cashable, laddered, escalating rate and equity-linked, todays GICs are a lot more interesting too.

Best Investment – How to Find the Best Investment

It’s easy. The best investment is the one whose profits you keep. If your profits vanish because you –

Hold until your profit turns into a loss.
Hold until a small loss turns into a big loss, and then a huge loss.
Hold so long your annual return turns small even when you do profit.

Then you’re not making the best investment. So what can you do? You need to know about Exit Strategy and Position Sizing.

Exit Strategy
Never make an investment without knowing when and how you’ll get out. That’s called an Exit Strategy.

You should have an Exit Strategy before you invest in anything.
You should be able to write it down. Nothing fuzzy allowed.
Know what will trigger your sell order.
Good Exit Strategies let you keep your profits and cut your losses. That’s your best investment.
Wall Street Wisdom – “Cut your losses, but let your winners ride.”
A few big wins and many small losses can equal a win overall.

Position Sizing
Never risk more than 3% of your portfolio in any one position. And that’s on the high side.
Why so small? Look at what it takes to recover from a loss:
Lose 50% of your portfolio, and you’ve got to make 100% on what’s left to recover your loss. Is 100% profit easy?
Lose 25% of your portfolio, and you’ve got to make 33.3% on what’s left to recover your loss. Is 33.3% profit easy?
Lose even 10% of your portfolio, and you’ve got to make 11.1% on what’s left to recover your loss.
Small losses leave you with enough capital to keep investing.

Control risk by controlling position size. The less you invest in any one thing, the less you risk. That’s your best investment.

Your Exit Strategy affects your Position Size.
If your Exit Strategy were to sell after a 25% loss, you could put up to $12,000 of a $100,000 portfolio into one investment, because –
$12,000 X 25% = $3,000 = 3% of $100,000
If your Exit Strategy were to sell after a 10% loss, you could put up to $30,000 of a $100,000 portfolio into one investment, because –
$30,000 X 10% = $3,000 = 3% of $100,000
You risk only what your Exit Strategy will let you lose, not your total investment.

Mechanical Investment
Emotion is the investor’s enemy. People hold too long because of greed and fear.
Greed for even bigger gains. Fear of realizing a loss.

The best investment is mechanical.
Follow your Exit Strategy like a machine. Automatically. No matter what your feelings scream.
Place exit orders with your broker in advance.
Acting when the time is right makes your best investment.

Exit Strategies Explored
So what do Exit Strategies look like? Stop Orders are the best known.
Tell your broker to sell if the price falls to some specific point.
Some people use 8% below the purchase price. Others use 10%, 15%, or 25%.
Stop orders don’t always do their job.
The price can fall way below your stop point before your order gets filled.
Market makers sometimes sell to force a stock price down.
They want to trigger other people’s stop orders, so they can buy their stock cheap.

Stop Orders can also be used to sell when the price rises to some specific point.
Decide in advance on a good return –
Two or three times the amount you put at risk.
If you use technical analysis (if not, don’t worry about it),
sell near strong resistance, or
when the stock looks over-bought, or
when the trend changes, etc.

Stop – Limit Orders limit the price you’ll accept after a stop order is triggered.
You might not get out at all, if the price falls below your limit.

Trailing Stop Orders automatically raise the stop price if a stock price rises.
If you bought a stock for $50, and used a 10% trailing stop –
You’d sell if the price fell to $45.
But if the price rose to $60, your stop price would rise to $54. ($60 – 10%)
The stop price never falls after it rises.
Trailing Stop Orders are good ways to hold on to profits, but
Trailing Stop Orders may push you out of stocks sooner than you want.

Put Options work like insurance policies.
Buying a put lets you sell your stock for a safe price of your choice.
The cost of a put reduces your profit, but –
You’re safe, no matter what happens to the stock. That’s your best investment.

Investment Rental Properties When Its Time to Buy or Sell

How does one determine when to sell a rental property investment? If you are going to buy rental properties having a plan in place for the appropriate time to sell is important.

I have worked with many individuals over the years and showed them how to buy rental property. There are many things that need to be considered when purchasing for investment purposes. There is also definitely a time to sell.

How to Buy an Investment Property

-Is the property in a convenient location? Is it near shopping, in a neighborhood with good schools, and is it easily accessible to interstates and connecting roads?

-Does the potential investment property have a sound foundation? What sort of issues does the home have? If it needs a new roof or the foundation is sunken in and is creating issues within the structure, it might not be a good investment at this time. If the issues are only cosmetic (needs a new bathroom floor, or painting, or carpeting) it may be worthwhile. Inspection reports will reveal the propertys flaws so the buyer and real estate professional can make a good decision.

-Do you have enough of a down payment to purchase the rental property so financing will not be an issue? In the current real estate market, most lenders will see a down payment of 40-50% as a good risk. If you can invest 100% into the property this is even better.

-Income gained from the property needs to exceed expenses. Identify a credit worthy tenant, a reliable property manager, and a solid lease to make your property investment profitable. Property management fees are tax deductible.

-For residential property investments, single-family homes as well as multi-tenant properties such as duplexes and fourplexes are great ways to build income and wealth. Some investors may want to consider apartment complexes. In this case a commercial property loan will be necessary to obtain financing.

-Use depreciation on the investment property as a way to receive an annual tax deduction. Check with your accountant, who will apply the depreciation deduction on the building, appliances — even window treatments. The government still allows tax deductions for accelerated depreciation on properties. Savvy real estate investors use this deduction to increase cash flow and net operating profit on a property.

When to Sell a Rental Property

I have a term for properties that need to be sold: alligator properties. These are properties that are eating the investor alive with carrying costs. When an investor looks at the bottom line on an alligator property there is no profit just expenses. An alligator property today may have been a good investment ten years ago. But some individuals will continue to hold a property until it depletes all of the profits they may have made in the first 5-7 years.

If a property has sentimental value (it was your first home, or your mother once owned it but now shes deceased), some investors may tend to want to hold onto it. Having an emotional attachment to an investment property that is supposed to be generating income is not good. Sometimes an individual will hold this type of property even if it is not profitable. It may be time to consider selling this property.

Stock Market Investment Strategy

Strategic Moves on Stock Market Investment
Stock market investment is a risky stance, but it should not stop any aspiring investor from taking the first step. The choice to make the stock market endeavor succeed lies upon the investor.
1. Knowledge
A wise investor would only delve into stock market investment upon being apprised with the necessary and crucial information. It is a must to invest on companies only upon learning everything about it, from its past records, current performance and future plans.
Stock market investment advice should be sought considering the difficulty of locating that right stock that will give big returns. The investor must fully know the fundamental value of the stock he or she will buy.
Invest in a company which belongs to a familiar industry. The stock market investor must have a good understanding of the business in order to realize more the value of the stocks. This will also make the investor less dependent to analysts and advisers.

The sources of information to rely upon must be carefully chosen too. Tips offered in the market should be avoided as much as possible. These are usually given by people with vested interests.
2. Long-term goal
An important consideration in stock market investment is setting a long-term goal. The long-term goal would determine the approaches to be taken and influence the decisions to be made.
The adherence to that goal would ensure regularity in instances of indecision when the stock market gyration comes to play. It would avoid whimsical decisions adversely disturbing the finances. A long-term goal could result to a more stable financial future through steady purchases investments. The key word here is consistency.
3. Calculated Risks
There are risks in any business endeavors. However, this must be calculated to minimize the probability of loss and to increase the expectation of profits. Speculating is not an option.

Never gamble and risk losing big money in the stock market. Investments should not rake in huge losses. It is easy to buy stocks, but money lost would be difficult to gain back. One cannot afford costly mistakes.
The established system in realizing the long-term goal must be strictly followed then. This will reduce the probability of putting too much money just to incur big losses.
5. Discipline
To make the most of the stock market investment, the investor himself must possess the proper determination and discipline to continually persevere in realizing the long-term goals set.
Stock market investment today requires passion and courage to come out as a winner. The stock market gives the opportunities; all that is required of the investor is being prudent.

Why Real Estate Investment Includes Risk Analysis

The bottom line about any real estate investment analysis is that it is a risk analysis. If risk was not an issue with investing, and all the results of any given investment were known with certainty, than creating an analysis for any type of real estate investment would simply be a matter of arithmetic. But the truth about real estate investing is that many factors come into play (i.e., the economy, tenant trends, etc.) that make it impossible to ever know with absolute certainty enough about a typical property to remove every element of the unknown.

Since the ability to accept varying levels of risk will differ from investor to investor, many simply avoid real estate altogether and opt to put their money only in relatively risk-free investments such as government Treasury bills. But the price for this lower level of insecurity, of course, is a lower rate of return. Why, because a relationship always exists between risk and rate of return. Therefore, when investors are attracted to the certainty, they in effect force down the rate of return they are willing to accept as a tradeoff for their unwillingness to accept uncertainty.

Okay, so what about the risk takers? What can investors who prefer to collect the higher rates of return associated with real estate investment do to deal with (and perhaps minimize) the ambiguity? Investors must exploit tools that can potentially measure this risk. One method is by applying what is known as a “probability distribution” to prospective real estate investment opportunities.

For example, rather than using just one set of rents to ascertain potential cash flows and returns for a rental property, the investor should consider several rent scenarios that reflect an estimated probability of their occurrence.

In my real estate investment software, for instance, a form is provided that allows users to apply three different rent scenarios to a rental property. This way, rather than just having to accept whatever rents are presented by the seller, the investor can analyze the cash flows and returns based upon a range of rent probabilities (i.e., most likely, somewhat likely, and not likely but “wow, wouldn’t it be great”).

The logic is straightforward. Say, for example, that you’re doing an analysis on a ten-unit apartment complex made up of ten two-bedroom, one-bath units each reportedly with the potential of renting for $700 per month. My own experience warns me that “potential” rents may (or may not) be likely, so I always prefer to run my own rent scenarios. In this case, then, you would use our Rent Scenarios form and assign three rent probabilities based upon your own measurement of risk, and instantly you are the results so you can analyze what impact each rent might have on cash flows, rates of return, and profitability. The outcome if monthly rents are more likely at $650, for instance, could affect your willingness to chance buying the property.

This is only one of a variety of mathematical and statistical approaches to risk analysis that will help you address the uncertainties of real estate investment. But you get the idea. The best way to deal with uncertainty is to measure it. And the probability distribution we illustrated for rents is a good first step.

You can see a screenshot of our Rent Scenarios form at http://www.proapod.com/Tour/basic/screenshot_4.htm

Online Investment Secrets And Tips

When it comes to online investment tips, everyone could benefit from tips. Most people are new to online investing, and are not very familiar with the way things work. The online world of investing can be cruel, but also very rewarding. When it comes to investing online, the tips you will find below are designed to help you make the most out of your experience.

The first thing to do with online investing is to start small. If you are new to this method of investing, do not put your entire life savings into an online account. Instead, start with a smaller sum, which should be easier to handle and keep track of. Once you feel confident enough, you can decide to add more money to your online account.

Once they are online, many investors tend to concentrate on stocks, specifically larger, more domestic ones. Most online investment tips note that while these stocks should make up part of your portfolio, they should not be all of it. Also make sure you take into account your time horizon and risk tolerance to develop a well balanced portfolio of stocks, bonds, and cash.

When it comes to mutual funds, most investors are into them for a reason. Most investors do not have the expertise to make their own investment calls on individual stocks. They are also too preoccupied by work and other demands to spend every minute watching the market. You should keep your mutual funds and it will probably be an unwise move for you to cash out your long term fund holdings.

Other online investment tips note that costs may not always be obvious. Even if online broker costs are somewhat lower than those of full service brokers, they can still add up, even if you do a lot of buying and selling. Online broker firms also like to impose a number of other fees and charges that should be studied closely.

When it comes to orders, you should make them work for you. If you plan on doing your own investing, you will need to learn how to use the tools that are available in order to avoid potentially steep losses and to buy or sell a stock at effective prices. This way, you get a good decent return on your investment. Many information on creating own investing you can find on theHYIPs.net

As beneficial as online investment tips may be, problems that you will encounter are inevitable. Investing online is not foolproof. Sure, there will be times when you ca not access your account; you could even be away from the computer when the market makes a major move.

When it comes to online investing, your internet connection could be down as well, or the online firm server could crash due to heavy trading, unexpected software glitches, or another sort of natural calamity. Make sure you are familiar with the firm alternative trading options. This may include automated telephone trading or calling a broker.

The most helpful of all the online investment tips, is to always remember that information is power. If you plan on buying and selling individual stocks online, it is in your best interest to keep yourself as well informed as possible. Do not settle for just the hype about hot stocks.

Good alternative can be HYIP investing. I developed my own rules of successful HYIP investment. All my secrets I revealed in my HYIP course. For more information visit http://www.thehyips.net/lessons/

Retirement Investment – Can You Squeeze the Risk Out of Your Retirement Investment

The Perfect Retirement Investment

A perfect retirement investment would look something like this –
* You can’t lose money. Safety guaranteed.
* Your payouts can only go up. Never down. No matter what happens.

This retirement investment exists: variable annuities. Competition has made them better. Take a second look now, if you passed on them before.

There’s one type of variable annuity that has what you want. Don’t confuse it with the many other annuities out there. Here’s how it works –
* A state-regulated “Guaranty Fund” insures your money.
* $100K to $500K, depending on state.
* An insurance company guarantees your payouts.
* It must have the cash to pay you, by law.
* You get monthly payouts for the rest of your life, or until you withdraw your money.
* Your monthly payouts never go down.
* You can’t lose money.
* Your heirs get the balance, if you die before you get back what you put in.
* You can cash in your investment without penalty – typically after 8 years.

Insurance companies create annuities. You can buy from insurance companies, banks, brokers, insurance agents, and financial planners.
* Your retirement investment is made in a lump sum, or a series of payments over time.
* The annuity has a cash value which rises or falls with what it’s invested in, but
* You buy an annuity to get monthly payouts.
* Your monthly payout goes up if the annuity’s average cash value goes up over time.
* Some annuities offer a selection of “sub-accounts” like mutual funds. You can move your money among them.
* Your monthly payout can only go up with variable annuities. Never down.
* Payouts can last the rest of your life.
Safety from market volatility.

You can get monthly payouts right away. You can also defer payouts until sometime in the future.
* The longer payouts are deferred, the bigger they can get.
* Some companies grow your eventual payout as if the annuity’s cash value had grown at least 5% for each year you defer payouts,
* For example, if you buy an annuity for $100K, and a bear market drags the annuity’s cash value down to $80K the first year –
* Your eventual payout would still rise as if the annuity’s cash value had gone up 5% to $105K.
* This would happen every year, so long as you deferred payouts.
* If the annuity’s value rises to $110K the first year, your eventual payouts would reflect the 10% gain.
* If a 50-year old bought an annuity and deferred payouts until he was 60,
* His payouts would grow as if the annuity’s value had grown at least 50% (10 years X 5%), no matter what.

Things to Watch Out For

Sales Fees – Brokers and agents charge fees of 1% to 12% of your retirement investment. That’s huge. They’re paid by the insurance company, which is paid by you.
* Buy direct from “no load” insurance companies or from a financial planner to avoid sales fees.

Surrender Fees – Many annuities charge “surrender” fees if you withdraw more than a small part of your money before 8 years, on average. These fees can also be very high.
* “No load” companies usually don’t charge surrender fees.
* Big fees can crush your returns, so shop carefully.

Taxes – Annuities are taxed like IRAs.
* Payouts and withdrawals are regular income.
* Assets grow untaxed until they’re withdrawn.
* Withdrawals before you’re 59 get a 10% tax penalty.
* Don’t buy an annuity in an IRA.
* The IRA is already tax deferred, so you get no tax break for paying annuity fees.

Insurance Companies – The insurance company selling you the annuity must be solid.
* A.M. Best rates insurance companies.
* Find the A.M. Best books in the reference department of your library.
* Go with an A+ rating or better.

Inflation- Even with a variable annuity, your payout rises slowly with the average value of the annuity.
* Inflation can erode that income,
* So put only part of your retirement investments in an annuity.

Annuities are long-term investments.

They’re not made for fast trades.
* If you want guaranteed monthly payouts for life, variable annuities are a perfect retirement investment.
* You pay fees 1%+ above mutual funds to get this security.
* If you want tax-deferred capital gains, IRAs and 401Ks have lower fees.

Decide how much money you’ll need every month after retirement.
* Consider your Social Security, pensions, and any other retirement investment.
* With a variable annuity, you should be able to cover your basic expenses.

Don’t try for more with your annuity. Remember inflation risk.

I’ve described just variable annuities. There are many other kinds. Shop with care. Use advisers who work with several insurance companies.

Investment Diversification with Real Estate

This year, investment in the stock market is making many downright jittery. Though overall the stock market does seem to be hovering around the 10,000 mark, many investors are plagued with uncertainty about short and long term investments in the stock market. Will stocks go up or down this week? Is now to time to keep money in the market? Or take money out of the stock market?

As a real estate professional, I always advise people to continue to invest in property. With so many bank owned properties flooding many different markets, real estate investors are actively purchasing homes and investment properties and obtaining some great deals right now.

John Starke, an Investment Advisor and Financial Principle with American Beacon Partners, says that many investors have grown tired of the risk involved in purchasing equities, mutual funds, and other types of investments. Prior to the sharp downturn in the market in 2008, investors goals were to accrue money through appreciation. “Rather than nervously watch their portfolios go up and down, investors want a more stable income,” noted Starke. He sees a rise in interest in Real Estate Investment Trusts (REITs), Tax Free and Corporate Bonds, and even some Corporate CDs. “Many investors are pulling their money from equities and mutual funds and opting for investments that pay a decent, regular return on their money,” said Starke.

In my everyday real estate transactions, I see investors pulling large sums of money from the stock market and putting it into the purchase of homes and properties in Virginia. I have taken the time to ask real estate investors their opinion about stock market investments. Many have decided that the stock market is not for them right now. One investor, J. D., purchased a property in King William County, Virginia that was in foreclosure for $90,000. She will spend approximately $4,000 to prepare the property for the rental market and be able to collect a monthly income of $1,000 from her investment. J.D. told me “I feel the time is right to start investing in real estate again. I stopped four years ago when property prices got out of hand. I intend to do even more real estate investment now.”

Another client, who plans to retire in a few years, is selling one commercial property investment in order to purchase a strip mall in the Western Virginia town where he plans to retire. He will pay the purchase price and invest approximately $40,000 into the strip mall to prepare it for the commercial rental market. He told me, “I am tired of having a business that I have to work at everyday. I want to have an investment that will work for me as I am planning to retire in about two years.” His upcoming shift in lifestyle is motivation for his new commercial property investment. Note that hes not selling one business and putting the money into the market. This may have been the trend for a retiree five years ago but not in the new economy.

Finally, H.G. in Hampton, Virginia made a wise move with money he once had in the stock market. He purchased a condominium for $50,000, invested $2,500 in the property renovations, and is now receiving $850 per month in rental income for the unit. HG said, “I am making more of a return from my property investment than I would in the stock market, and I also receive a tax deduction to boot.”

There are of course risks in real estate investments. A tenant could default on the rental agreement, or a property could remain vacant for months on end. That is why it is imperative that real estate investors hire experienced and knowledgeable property managers to maximize their investment. All of the property investors mentioned in this article are using my property management services for their real estate investments. Other risks include unforeseen maintenance and repair issues. This is why it is important for property investors to put a portion of their profits aside to reinvest in the home, condominium or townhouse they purchase.

Where property investment is concerned, even these risks, when anticipated and well-planned for, are small compared to the uncertainty of stock investments.

Shawn Tully, Senior Editor at Large for Fortune magazine, published “2010’s Coming Stock Market Crash: 1987 all Over Again” in May 2010. He states that stocks are still overpriced. He predicts a low return on investment (or a loss) as an inevitable outcome of this scenario. Tully bolsters his opinion with these astute observations: “Here’s how I see the odds. The chances are about one in three that we suffer a huge, wrenching correction in the next year or two similar to the one in 1987. That possibility is so high because stocks are so startlingly expensive. Another high probability event is that markets go on a long sideways grind, with smaller drops along the way. What’s extremely unlikely is that the market rises substantially from current levels and stays there for any extended period.”

Experts within the financial industry may be reluctant to put forth the strong opinion that Tully articulates. Still, there is no denying that investors have undergone a major shift in perspective since the financial crisis of late 2008 culminated in a recession, took hold of the United States and spread to other countries.

People will always need a place to live. With more and more families sadly experiencing foreclosure and dislocation, renting will be their most likely option. More rental properties will be necessary to fulfill housing demands. Investors need to take a serious look at property investment in their areas, and take steps to purchase viable homes even if they are in need of some repair or upgrades.

Visit http://VonCannonRealEstate.com to view potential investment property listings in Virginia in Williamsburg, Hampton, Newport News, Yorktown, Richmond and Northern Neck areas such as Matthews, Northumberland and King and Queen Counties.

Investment Advice

In order to invest properly and to increase your assets to ensure your financial security, you need to develop a long- term investment plan. In order to do this, factors like your age, stage of life, personal priorities and risk tolerance have to be considered in order to design an investment strategy that meets your needs.

It is a well-known fact that every investment can be risky, but some investments have a greater risk than others. Risk tolerance is the amount of money you feel comfortable investing with the risk factor in mind. If you are basically a conservation person, then you will probably be most comfortable taking limited risks by investing in cash, secure stock and fixed income investments. If you consideration taking moderate risks, than you could consider putting your assets into growth stocks, and if you are willing to take significant risks, then high-risk investments are for you.

There are different types of investments to choose from. Stocks are equity investments that give you a share in a corporation. Bonds or fixed income securities pay interest over a fixed period of time. To understand mutual funds you need to know that they are diverse equity funds that pool money together from many different investors for greater buying power. Futures are obligations to buy or sell a specific commodity at a preset price on a specific day. Options give you rights to buy or sell a specific stock, bond, etc at a preset price during a specified time period.

The term asset allocation simply means how you divide your investments between stocks, bonds, mutual funds and cash equivalents. This depends on your financial goals, when you want to achieve them, and your willingness to risk. Next in line comes diversification that allows for further spreading your investments between the major asset categories of stocks, bonds and cash equivalents. Diversification helps you decrease your investment risk. As you know, no investment is risk free. Without risk, there would be no reward.

Investment Consultants – How To Build A Strong Mailing List

If you plan to grow your business or extend your network of contacts as an investment consultant, you should be building a mailing list of your leads. These are usually leads to people who have shown an interest in what you do and have given you permission to contact them by email. There are many ways for investment consultants to gather leads or subscribers and this article looks at several of the best ways to build a targeted list.

By getting these people into your list you will be able to stay in regular contact with them and some of them will probably go on to become your best prospects and loyal customers.

Who Do You Want To Join Your Mailing List?

There are several categories of people who you should want on your mailing list as an investment consultant, and these include existing clients, potential investors, and in fact anyone else who might be looking for a good investment consultant.

Make it easy for them to subscribe to your newsletter or other announcements. Set up a web page with a simple sign up box where they can easily send you their name and email address.

Write Some Related Articles

One of the keys to building a successful mailing list is attracting targeted prospects to your mailing list, and one of the best ways to source those targeted leads is through article marketing. With article marketing you write an article related to investing that editors and publishers can use free of charge if they show your About The Author paragraph at the bottom of the article. The advantage is that your articles get read by people who are interested in your topic, in this case finance and investment.

You can make your investment articles available at article directories like EzineArticles and ArticleDashboard.

Participate in Forums and Discussions

Another good way to attract targeted leads to your mailing list is to participate in online forums, discussions and even Questions and Answers sites. Look for discussions and questions on related topics such as stock markets, business trends, and investments with good returns. The great thing here is that you can find people who are seeking answers to specific questions to which you can provide answers.

Your active participation in these discussions also helps to build your reputation as an expert in the field. In your signature or profile be sure to include a link back to your own web page.

Place Advertising in Traditional Publications

Take a minute to consider what magazines and journals are typically read by your target audience? Perhaps it is Smart Money or Businessweek. Perhaps there are also some smaller or local magazines that are popular. By taking out advertising in publications like these you can obtain highly targeted leads for your own mailing list.

Do Some Pay-Per-Click Advertising

Advertising through a search engine like Google or Yahoo is another way to reach a highly targeted audience who are searching for particular information. For example you might target people who are searching for keyword phrases related to investment advice, top stock picks, or investment funds.

With pay-per-click advertising networks you decide how much you will pay every time someone clicks on your advertisement and visits your web page. Two examples of advertising networks are Google AdWords and Yahoo Sponsored Search.

These are just a few of the ways you can gather new targeted leads for your mailing list. There are many more ways if you really want to build a big, responsive mailing list.