| |
| |
|
Wealth Building Information |
|
|
|
Cost Averaging - It Makes Sense (Dollars & Cents)
It's no secret that the market goes UP...the market, goes DOWN. That's the basics of Investing 101. For many of us the shape of the market day to day has about as much influence on our lives as the time of the tides that day. But for investors - especially first time investors - it can be a rollercoaster of heart racing highs and stomach churning lows. Every movement is being carefully reviewed and if it turns down then investors with itchy feet jump out. If you know the benefits of investing, how can you avoid the stress of putting your hard earned money into the market? Financial planners and investors are quite clear on the subject. New investors should not make an investment unless they are going to let it sit at least 5 to 7 years - the longer the better. Why? Well, the economy DOES move up and down, but we have never seen it bottom out (and if it did - well, you'd have much bigger concerns than your investment). By selecting a diversified portfolio, such as a mutual fund, you can usually base your prediction on past activity and you'll see that in any 7-15 year period the investor always came out with more than he put in. How do you take advantage of that? When should you invest? Well, if shares were being sold for $10 each and you had invested $100 you would have purchased 10 shares. Now, if that is your whole investment you would be very upset if the value went down to $5, wouldn't you? Now your stock is worth $50. What would you do? Sell before it goes lower and loose $50? Using the 'Cost Averaging' technique: Cost averaging means you continue to put the same amount of investment into the market regularly - preferably every month. Now if you did that you would have invested another $100. At $5 a share you would buy 20 shares. Right now you have invested $200 but only own $150 worth of shares. What happens when the price goes up? When the price goes back up (and it will) it may stop at $8 per share. Now what? Well, you invest your next $100 and buy 12 shares. You now have 42 shares valued at $8 each. That totals $336. Your investment was $300 so you just made 12% off of your investment. Combining the cost of averaging with the 10% recommended for us to set aside for savings or investment - what's stopping you from jumping in? Lucy Vestirian is the webmaster for http://www.fyinvest.com which is the premier invest site on the Web. Visit http://www.fyinvest.com to learn about different investment ideas and strategies
MORE RESOURCES:
Wealth-Building - Google News |
|
|
|
RELATED ARTICLES
The Wealthy Mindset What is the difference between wealthy people and poor (even average) people? It is not all the money that wealthy people have and the average don't, nor the luxury, nor the lifestyle. It is their mindset. The PDQ? Factor It's the beginning of a brand new year: a time to set goals, make plans, and start afresh; a time to dream of making more money, having a more beautiful body, and experiencing more love. I can't help you with your body or your love life but I can show you some tools for making more money this year. The Secrets of World Money Flows and A Simple Way to Understand Them You can learn the secrets of world monetary flow if you will simplify the concept. The Allegory of a "The Beach Ball," is not taught in all universities, perhaps it should be. New Year Resolutions to a Better Financial Future There could not be a better time to mull over the changes needed in our life style than at the beginning of a New Year. This is also a good time to set yearly goals and make resolutions. Q and A: Financial Independence Tips For Women From Coni Cecil As a woman Netpreneur, I sat down via e-mail with article-announce regular contributor, Internet marketer and women's financial consultant Coni Cecil of www.cecilfreedom. Do You want to Live on Macaroni and Cheese when You Retire or Filet Mignon? How Much Money Will I Need to Earn to Retire?This is the most common concern of people who are contemplating retirement. While most financial planners would tell you that you need to earn as much in retirement as you did while you were working, this isn't always the case. The 11 Best Money Saving Ideas of All Time - Part 2 At any time in history, no matter what the current state of the economy, no matter what the current trends, no matter what the unemployment rate is or where interest rates lurk, some money-saving ideas stay true.Some of you may have heard of these ideas before, others may be entirely new to you. Discover the Secrets and Possible Solutions To Money Problems It is sometimes pitful how many projects are never born or die simply because of the flimsy excuse : "We don't have enough money !"There are many possible solutions to money problems.When a practical, inspirational, exceptional idea raise from your mind, don't ask the question : "How much will it cost ?" untill the conceptis fully discussed, considered and examined. The 9 Critical Steps To Success In Demolishing Your Money Worries For Good! Articles on 'How to make money' come a dime-a-dozen. How about a fresh, new perspective? Here's a rather unique, untapped, revolutionary article about the 9 Simple (Yet Powerful) Steps You can use right now to Demolish Your Money Worries for Good,. What is Your Creative Retirement Plan? The idle are a peculiar kind of dead that cannot be buried." Oriental proverbOne thing is certain - when you do not have a creative challenge during your retirement years, the idleness and its accompanying despondency blots out any chance for happiness and contentment and can even encourage an early death. The 11 Best Money Saving Ideas of All Time - Part 3 At any time in history, no matter what the current state of the economy, no matter what the current trends, no matter what the unemployment rate is or where interest rates lurk, some money-saving ideas stay true.Some of you may have heard of these ideas before, others may be entirely new to you. Does the Moon Have Covers? Recently, one late winter night, my four-year old son and I counted stars with one another. After a few minutes, he pointed to the bright moon and asked, "Why doesn't the moon have covers?""Covers? What do you mean?" I inquired. How To Get Investors And Bankers To Part With Their Money For Your Business Time and time again entrepreneurs are losing out on getting the capital they need because of making basic mistakes in their pitch. It's great to have a magic product and tons of enthusiasm, but it's not enough. Wealth Secrets: Saving Your Way to a Fortune SCENE 1: Pharaoh has just woken up from a very troubling dream and feels he must know the interpretation. Joseph gets called in and explains that there will be seven years of plenty and seven years of famine. Wealth Building Strategy There are many of us who are working on our wealth creation strategy. Wether it be working another job, starting a small home based business or seriously building knowledge on the share and property markets, those that are serious are looking. Thieves Continue to Pull Off the Biggest Heist in History?Until Now! Imagine being able to steal untold millions of dollars in plain view without getting caught. Impossible you say. Wealth Building Tips: Manage Your Money As someone who loves to shop, enjoys holidays and owns way too many pairs of shoes, managing my finances is definitely something that does not come naturally to me, I have had to learn. Managing your money is so important in becoming more organised, less stressed and more productive in your life - you'll be amazed at what you can achieve with your money when it starts working for you, rather than you always working for it!Seek advice. Real Estate Stories that Show You How! Let's begin easing you out of the pits. I mean, comfort zone! I'm going to slowly and methodically give you as many little sparks and insights to the relatively simple ways that ordinary people use real estate to achieve extraordinary results. Investing is About Discipline If you don't have discipline then walk away from the idea of being rich. You see, getting rich without discipline is relying on the lottery or your favorite pony ambling past the finish line in front. Is Accumulating a $1,000,000 Net Worth Easy? Yes and NO Is accumulating wealth as easy as following a 3-step plan? Yes it is and no it isn't. As with many things in life, accomplishing a goal such as accumulating one million dollars (or even $100,000) depends on your desire, your personal choices and your daily actions.
|
| home | site map |
| © 2006 |