Some real estate gurus make tax lien investing sound like it’s
a sure thing. That you’re guaranteed to make huge interest rates
and that’s it’s “government guaranteed.” Unfortunately for You,
they leave out a few facts and are stretching the truth quite a bit.

First you have to understand that tax sales are auctions and
in most state those extremely high interest rates are bid down to
extremely low rates. Why would investors do that? It’s simple,
sometimes there are other penalties that they will get should the
lien redeem. In New Jersey for instance the penalty is between
2-6% depending on the amount of the lien. In Florida there is a
penalty of 4%. Also once you own the lien, you can pay the
subsequent taxes and get the maximum interest on that.

Secondly, you must understand that there is no guarantee that
you will get paid on your lien. Of course if you don’t get paid,
you can foreclose once the redemption period is over. But no
one guarantees that you will be paid! What these gurus mean
when they say that tax liens are “government guaranteed” is that
the laws are on your side. If you don’t get paid you can
eventually foreclose on the property. The only thing guaranteeing
your investment is the property! That’s why I don’t recommend
investing in tax liens through the mail or online. Would you buy
property that you didn’t see first!

When you buy a tax lien certificate, even though you are not
purchasing the property, there is always the chance that the lien
will not redeem and you will have to foreclose on the property.
What if the property is worthless? What if it is an unbuildable
piece of land? Then you are stuck with a worthless piece of
property that no one will want to buy from you and if you don’t
continue to pay the taxes on it, it will eventually revert back to
the county that sold it to you.

Yes, there are risks involved in tax lien investing and no, it is not
a sure thing. It is however an excellent way to invest your money
if you know what you are doing. If you are contemplating buying
a program to learn how to invest in tax lien certificates or tax
deeds, beware! Don’t buy an e-book, coaching program, or a
course from someone who candy coats the business of investing
in tax lien certificates and tax deeds and makes it sound like you
can’t fail and there are no risks. The truth is that you can fail and
there are risks to avoid. Instead buy one of these products from
someone who tells you what the risks are and how to avoid them.
This will give you a better chance for success in buying profitable
tax lien certificates and tax deeds.

Ask any investor what a stock trading under $5 is and they will tell you it is a penny stock, microcap stock, or nano stock. These three terms are for the most part interchangeable. However the broader definition of a penny stock refers to a business’s aggregate value of its outstanding common shares, are more commonly known as its market capitalization rather than its stock price. However there is no set term that completely defines a penny stock.

To calculate the market capitalization of a company (the market cap) you must multiply the stock price of the company by the amount of shares that are outstanding. By carrying out this calculation you can find out what the total dollar value of all shares in the company are at any given moment in time. Penny stocks are not traded on a stock exchange like other stocks but they are traded in the over-the-counter (OTC) market. For the trading of most stock an agent will act on the investors behalf and arrange a transaction directly between the investor and a third party. The broker then receives a commission for facilitating the trade.

A large proportion of all penny transactions are charged by brokers as principle transactions. This means that the broker is not paid any commission but rather makes its money on the spread, and by buying and selling at advantageous times. There is no single price at which penny stocks are bought and sold, but rather there are a number of different prices. The difference between the bid and ask price is known as the spread. The spread of many penny stocks are usually around 25-33% but can often be 50-100% or even more. There are also always two bid and two ask prices, these are known as the inside and outside bid and ask. Keep in mind that it is the outside bid and ask that is of most interest generally. Penny stocks are also subject to mark up pricing. This is where a broker has held the penny stock in its account and has therefore taken some of the risk associated with market price fluctuation.

Although penny stocks are quite complicated and there are many problems associated with trading penny stocks as well as millions of dollars of loss, many companies still trade in them because they can help for example, struggling companies just starting up. The best way of finding a good investment is by consulting with your broker. However in the penny stock market be very wary of brokers who are only trying to sell and may not have your best interests in mind.

For those looking to invest, you should know that many investments can be categorized as being high risk, moderate risk and low risk. Investing is not difficult, but you should always put lots of thought and planning into it. It is also extremely important to educate yourself about the many different investments available to you so you can find those that fit best with your specific situation and lifestyle. Here are some tips regarding the three categories of investing.

Low Risk Investments

While low risk investments are usually very low key and rarely are extremely glitzy or publicized, they do offer conservative investors a way to save money for the short or long term without the risk involved that you find in other forms of investing. Low risk investments usually pay the lowest yields, but are far less volatile than many other types of investments. Low risk investments include money market funds, certificate of deposits and some types of bonds. Low risk investments are perfect for those that want to make sure there money remains safe and secure. While low risk investments don’t offer high returns, they do offer stability and security for those that can’t afford to lose money or would just like to avoid as much risk as possible. Expect low risk investments to pay out yields of 1% to 5% annually.

Moderate Risk Investments

Moderate risk investments are perfect for those that are interested in investing for the long term and would like to earn moderate yields. Moderate risk investments are usually certain kinds of stocks, bonds and mutual funds that pay handsomely over the long term. While generally riskier than saving money in a bank, for those that are looking to invest for the long term, historically speaking you will grow your money quite nicely. Moderate risk investments usually use the power of compound interest and time to create a nest egg from 10 to 40 years with regular savings. For instance, saving 1K per year at an interest rate of 10% for 30 years can return close to 200K. Moderate risk investments usually return yields of 5% to 12%.

High Risk Investments

High risk investments are those investments that if you are lucky can return huge yields, however the downturn is that they can be extremely volatile and in many cases instead of getting rich off your investment, you find yourself losing some or all of it. High risk investments include penny stocks, international stocks, some types of Forex trades, etc. The sky is the limit for returns, but many high risk investments- if considered a winner should return yields that range from 10% to 30%++.
About the Author: placecard holders

Buying stocks is one of the most over-hyped activities in the business world today. Online stock brokers allow you to bridge the gap between Wall Street and Main Street, so you can trade stocks in the blink of an eye with just the click of a button.

I’ve answered questions about “how to buy a stock” before, so let’s explore your options as far as online brokers go. There are many factors that should guide your decision, here are what I feel to be the top factors in deciding which stock broker is right for you:
Customer Satisfaction This is probably the most important aspect of any online broker in my opinion. How do people feel about the service they are getting? This includes a sense of security that comes with the larger brokers with hundreds of thousands of customers and local branches you can visit for support. Does your broker assign an individual broker to every account, or are you doing it alone? On top of support features, people will generally report back on how fast transactions are made, which can be important to getting the best price on your trades. Commission Fees For me, this is probably even more important than satisfaction since I have less money at stake than the average investor. In short, brokers charge commissions on every trade you make to handle the transaction costs… how expensive are these? These costs can be anywhere from $1 to $20 per trade, so this can be a huge factor… or a non-factor… all depending on how much money you have in your account. Minimum Deposit Again, to some this is a non-factor, but it is definitely something you should consider if you are an average investor. Do you want that discount broker that has a minimum deposit of just $500… or are you going to look for the full-service kings that require upwards of $10,000 minimum in your account to start off. Research / Features Research is very important for every broker. Some of these fly-by-night brokers offer you nothing in the way of research. Most of the more established guys will give you free reports from Standard & Poor’s, Goldman Sachs, Reuters and other places that can help you make educated trades. On top of research, features like live stock tickers, after-market trading and even technical chart analysis should be important aspects of your broker. If you have the tools to be successful, you are far more likely to make money. The “Catch” What’s the catch? You should do your homework before choosing a broker. One reason I like Scottrade is that they don’t seem to have any, as all trades are just $7 forever. Other services have intro-deals that expire after the first month. For example, E-Trade has a free 100 trades deal, but when you read into it… it only lasts for the first 30 days. Other brokers will hike commission fees periodically, or charge you quarterly account fees for holding your cash. Finding all of the hidden terms is important, and can make or break your financing.
Now that we know about what we are looking for in a broker, it’s time to see what stock brokers are out there for you to use, and how the stack up in these five categories that I have outlined for you to apply when deciding where to house your cash. Introducing the Net Fool’s 2008 Value Rankings for Online Stock Broker
E-Trade Scottrade TradeKing Charles Schwab Interactive Brokers’ TD Ameritrade Tradestation Securities Options Xpress Muriel Seibert Fidelity Zecco Sharebuilder

These rankings are based on my own experience, shared reviews from sources such as Barron’s, Standard & Poor’s, Forbes, Kiplinger and MSN Money. Please take note that the rankings are weighted toward lower-commission / lower-deposit “value” brokers, although all satisfaction and features are accurately represented.

Finding the right stock broker can be a real judgment call, and all of the “top 12″ options are very good services. While I feel that you would be best off with an E-Trade or Scottrade account, holding an account with ShareBuilder or Zecco wouldn’t be your worst option. If you have a lot of investing money, you should focus more on features and satisfaction, so a brokerage like Schwab, Fidelity or Muriel Siebert to fit your needs if commissions really aren’t a factor for you.

I hope that you all found this guide useful. Online discount brokers are a relatively new phenomenon, and have been improving day in and day out… making it easier, cheaper and faster than ever to place trades and make money in the stock market.

Distribution fees in mutual funds are designed to cover ongoing marketing and support cost for services provided to owners of mutual funds. Distribution fees are paid to the sales organizations that provide the clients for the mutual fund company. 12 B-1 fees are subtracted from the mutual fund owners share value. These are fees paid by the fund out of fund assets to cover distribution expenses and sometimes shareholder service expenses.

Fees get their name from the SEC rule that authorizes their payment. The rule permits a fund to pay distribution fees out of fund assets only if the fund has adopted a plan (12b-1 plan) authorizing their payment. “Distribution fees” include fees paid for marketing and selling fund shares, such as compensating brokers and others who sell fund shares, and paying for advertising, the printing and mailing of prospectuses to new investors, and the printing and mailing of sales literature.

These fees are not limited by the SEC as to what or how much can be deducted from a mutual fund but other rules do apply. Under NASD rules, 12b-1 fees that are used to pay marketing and distribution expenses cannot exceed 0.75 percent of a fund’s average net assets per year. These fees are in addition to operating fees of the mutual fund. The rules governing 12 B-1 fees can however vary.

Some 12b-1 plans also authorize and include shareholder service fees, which are fees paid to persons to respond to inquiries and provide investors with information about their investments. Unlike distribution fees, a fund may pay shareholder service fees without adopting a 12b-1 plan. If shareholder service fees are part of a fund’s 12b-1 plan, these fees will be included in this category of the fee table. If shareholder service fees are paid outside a 12b-1 plan, then they will be included in the “Other expenses” category, discussed below. The NASD imposes an annual .25% cap on shareholder service fees.

One way to protect yourself against excessive fees it to be fully informed. All fees and expenses are fully disclosed in the offering prospectus. Read and attempt to fully understand all the details of your fund. If additional help is needed consult a disinterested third party or seek professional assistance from your CPA, the SEC or other qualified sources.
About the Author: archeology

It is the duty of the equity analyst, more specifically the common stock analysts, to determine the value of a company, its intrinsic value relative to its current market capitalization and determine if their is a margin of safety in between these two values. Of course, this assumes you follow the traditional Graham & Dodd value strategy. Without getting into investing philosophy and sticking strictly to valuation, let’s consider the differences between some of the more popular strategies (all of these strategies assume statements have been reformulated so that operating and financing items have been separated):

Discounted Cash Flow Analysis:

Free cash flow (FCF) is calculated easily by finding the difference between Operating Income (OI) and the change in Net Operating Assets (^NOA or NOA1 – NOA2) or FCF = OI – ^NOA

The FCF forecast model uses FCF now and estimates into the future discounted by the Required Return on Capital (RC). The RC is calculated using the stock’s Beta, the risk free rate of return (usually 3 mo. t-bill), and a market risk premium (expected return on the market – risk free rate). This calculation is made however many years out the forecast is intended to extend to, maybe 3-5 years. So it looks like:

Value = FCF/RC + FCF2/RC2 + ….. + FCFn/RCn + CV

The last part of the formula, CV, is the continuing value, is an estimate of value for a finite forecast horizon of FCF’s. It is calculated as follows: FCFn+1/(RC-1) or if you forecast FCF to grow at a constant rate then FCFn+1/(RC-g), where g is 1 plus the forecasted rate of growth in FCF.

The problem with using discounted FCF is that it does not measure value added. FCF is a measure of stocks and flows. The analysis charges this flow of money with the required return on capital. Assume a company makes a large investment and as a result ends a quarter with negative cash flow. Value is not derived from this figure and cannot be accurately forecasted, but in the long run there is potential value added from the cash investment. FCF does not measure this.

The Residual Earnings Forecast Model:

First, let’s define residual earnings (RE); RE = Return on Common Equity (ROCE) – RC * Common Shareholders Equity (CSE)

So what does this measure exactly? This measures the return to shareholders above the required return on capital. The discounting process is the same as with FCF, where a CV is used at the end, but RE is used instead of FCF; V = CSE + RE/RC + RE1/RC1 + … + REn/RCn + CV.

One important note must be accounted for; this model can only be used when there is no debt recorded on the books. Otherwise debt acts to lever up ROCE, distorting real value added.

So here we have a cleaner forecast, one that determines whether value is being added in earnings. You can tell by the difference in ROCE and RC. If it is positive, RE will be positive and value is added. The opposite is true if ROCE is less than RC.

Again, debt distorts this forecast, in which a different formula will be needed, but I will not cover in this particular article. Also, beware of long forecasts, the longer the time horizon the more speculative in nature it becomes. For this reason, I do not forecast out beyond the current year and scrap the CV.

If you have any comments or suggestions, especially with regards to the use of risk free rates and expected returns on the market, please comment here.

Investment is the most talked subject. We all want to invest and make money. There are many investment options. As I said earlier investment option mainly depends on the character of the person investing. You have two ways of making money. There are investments that require considerable risk taking ability. There are safe investments. Dynamic characters would love to take risk and make more profit.

To be among successful business man you have to invest in options that are close to your hearts. There are many options available like real estates and stocks. Here again the investment is again divided on the basis of liquidity. You decide on the option based on the liquidity factor. There are more methods of making money like commodity trading, forex trading and mutual funds.

Forex trading is one option that requires you to be on your toes all the time. You have to take spot decisions and you have to take such decisions based on the knowledge you accumulated over years. It is one option that gives great returns on your investment. Stock market is yet another risky investment but, you take decisions based on the knowledge accumulated. It is one business we cannot predict. Stock market allows you to invest long term and make money with safety. Short term or day trading is full risk.

You can make good income by investing in mutual funds. This is one investment option that allows you to take rest. decisions here are taken by professionals. You can be sure that your investment is in safe hands.

There are many investment methods and you can choose your investment based on your priorities.

Coin collectors around the world admire and often covet the historic French 20 Franc Gold Rooster coin. More commonly known as the French Rooster gold coin, or Coq d’Or, it is one of the favorites of and most coveted by international gold coin collectors and investors.

This French gold coin was minted at the turn of the 20th century, beginning in 1901 until France found herself embroiled in the First World War in 1914.

French gold coins are known for their beauty and attractive displays of classic design and structure. While considered rare, the French Rooster gold coin is considered to be quite affordable, and is therefore the most popular of many gold coins produced in Europe.

Containing nearly a fifth of an ounce of pure gold, the facing front of this French gold coin displays the head of the third Republic lady surrounded by the words “Republique Franaise,” the motto of the French Revolution.

The reverse side of the coin shows an exquisitely designed and presented fully plumed rooster with the words “Liberte, Egalite, Fraternite” etched in capital letters around the edges.

The phrase on the reverse side of the coin was created during the French Revolution against Louis XVI, and the front face of the coin, showing Lady Liberty, was established and created in the Franco-Prussian war of 1870 upon the defeat of Napoleon III.

Measuring 21.0 mm in diameter, the French Rooster gold coins contain 0.900 fineness. Coins predating 1901 are extremely rare, and are highly coveted by those with an appreciation for French gold coins displaying a sense of history and unique design.

vacation planning