Financial Idea's Blog

Invest For The Long-Term? What’s That? I’m Young!

Okay, one of most common pieces of “conventional wisdom” out there regarding investing goes like this: Young people can be really aggressive, and they should!  They might hit it really big, and if not, well, who cares?  They’re young and have plenty of time to start over and do it right the next time.
Technically, that’s correct, and yes, it’s true that hindsight is golden!  In this case, here’s why: it’s almost impossible to adopt that mindset and simultaneously hold the thought in your mind that you’re going to get older and someday not have plenty of time to start over. Instead, what we humans do is talk ourselves into believing that we’ll do it right the next time.  But wait a minute – why not just take the pressure off for your whole life and do it right the FIRST time?  If you’re past that, okay, take some of the pressure off the rest of your life and get started doing it right!

What’s doing it right? Oh, that’s easy, we find the next Microsoft, like those lucky people did back in 1985 or so.  The key word there is “lucky”. Read More …

Technorati Tags: Compound Interest Formula, Invest young, investing microsoft, Microsoft, Rule of 72, what to invest in now, young investors

Fed’s Say U.S. Recovery Is Underway

By Mark Felsenthal and Alister Bull

WASHINGTON (Reuters) – The Federal Reserve on Wednesday upgraded its assessment of the U.S. economy, saying growth had returned after a deep recession, while reiterating its promise to hold interest rates very low for a long time.

The Fed also said it would slow its purchases of mortgage debt to extend that program’s life until the end of March, in a move toward withdrawing the central bank’s extraordinary support for the economy and markets during the contraction.

The U.S. central bank, as widely expected, held its benchmark overnight lending rates at close to zero percent.

“Information received since the Federal Open Market Committee met in August suggests that economic activity has picked up following its severe downturn,” the Fed said in a statement after its two-day policy meeting.

“Conditions in financial markets have improved further and activity in the housing sector has increased,” it said.

U.S. government bond yields ended lower on the news that the central bank had reiterated a pledge to keep rates ultra-low for an extended period.

“I think it confirms that the economy still needs a little bit of help and that rates aren’t going to go up anytime soon,” said Alan Lancz at Alan B. Lancz & Associates in Toledo, Ohio.

But a stock market rally fizzled on concerns Read More …

Technorati Tags: federal, how to invest in stock, Invest young, poor economy, recovering economy, Rule of 72, Stock investing, U.S. recovery, US finance

Warren Buffett Interview On How To Read Stocks

A Quick review on how Warren Buffett pick and review stocks he buys.  This is great!!!!!!!!!!!!!!

Technorati Tags: How to invest in stocks, How to read Stocks, Investing Stock, learning about the stock market, stock education, Warren Buffet, What to Invest In

Inflation Isn’t Inevitable

As long as the Fed is responding to demand, an increase in the money supply is not inflationary.

The numbers are sobering. Over the past year, the level of bank reserves has soared more than tenfold, to $830 billion, and the total amount of credit the Fed has extended to the economy has doubled, to more than $1.6 trillion. Furthermore, the government is projecting that this year’s fiscal deficit will top $1 trillion, the highest level relative to gross domestic product since World War II.

Read More …

Technorati Tags: Financial Ideas, Inflation, Invest Stock, Rule of 72, What to Invest In

Warren Buffett Gives Financial Advice to Girl Scouts at Dairy Queen

Youngsters wanting to make blizzards of money got valuable advice from financier Warren Buffett who was visiting his local Dairy Queen for the launch of the new Girl Scouts Thin Mint Blizzard.

Surrounded by a group of Girl Scouts in his hometown of Omaha, Buffett offered this tip for college students: “The biggest suggestion I have is to avoid credit cards. Interest rates are very high on credit cards. Sometimes they are 18 percent. Sometimes they are 20 percent. If I borrowed money at 18 or 20 percent, I’d be broke. . . . So if I had one piece of advice for young people generally it would be to just avoid credit cards,” he said.

And what advice does Buffett have for a new investor? “I would do a lot of reading before I invested,” he replied. “In other words I would prepare for it. I wouldn’t jump in the water until I know how to swim. . . .I read every book the Omaha Public Library had about investing by the time I was 11.”

On qualities Buffett looks for in employees? “The biggest thing I look for is if they have a passion for whatever they are going to do,” he said.

http://www.whattoinvestinnow.com/

Technorati Tags: how to invest in stock, Invest young, Rule of 72, Stock investing, Warren Buffett, What to Invest In

10 Investing Books Recommended By Warren Buffett

Over the years, Warren Buffett has recommended many books in a variety of venues about a variety of subjects. Continuing our ongoing series of books recommended by Buffett here we highlight ten books that Buffett has recommended on investing.

Take on the Street: What Wall Street and Corporate America Don’t Want You to Know. What you can do to fight back

by Arthur Levitt

The Securities and Exchange Commission’s longest-serving chairman, supervised stock markets during the late 1990s dot-com boom. As working Americans poured billions into stocks and mutual funds, corporate America devised increasingly opaque strategies for hoarding most of the proceeds. Levitt reveals their tactics in plain language, then spells out how to intelligently invest in mutual funds and the stock market. His advice is aimed squarely at small, individual investors, as he explains how to look for clues of malfeasance in annual reports, understand press releases and draw more from reliable sources.

The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns

by John C. Bogle

Read More …

Technorati Tags: Compound Interest Formula, how to invest in stock, Invest young, Rule of 72, Stock investing, Warren Buffett, What to Invest In

Why Right Now Is A Good Time To Buy A House For A First Time Buyer

Why is right now a good time to buy a house for a first time buyer?

Real estate, along with many other investments such as stocks, bonds and mutual funds, can be found right now at prices lower than in recent years.  Some would say it’s the best opportunity we’ve seen so far in our lifetime.  Couple that with the $8,000 first-time homebuyer credit available if you close on a property and take title before December 1^st, 2009, and you have a potentially winning combination.

So, what is a first-time homebuyer anyway?  It’s not as restrictive as it sounds.  IRS rules say that as long as neither you nor your spouse have owned your own home for at least three years prior to purchasing a new one, then you’re a “first-time home buyer”!  If you’re married, and your spouse has owned a home, neither of you can qualify, but if you have a significant other and you’re not married, then you could. Read More …

Technorati Tags: First time home buyer, how to invest, Invest young, tax deduction, tax rebate, What to Invest In

Changing The Way You Think About Your Money

These are the times that everyone is beginning to feel a tightening. The ripple effect has touched us all now in some way. Our attitudes of “spend now, more money is on the way” has been replaced by the thoughts of “How do I find the money to pay my bills?” For many people this shift is a reason for great distress.

I have been one of those people who have felt the heavy weight of financial burden. I continue to feel the pinch, but I am starting to see signs of hope. Hope that is not only coming from the government and Wall Street, but hope that is coming with increasing confidence that I will get through this hard time.

I have found great confidence through making small changes. I would like to share a few things I have done that have made a big difference in both my quality of life and my budget’s bottom line. Read More …

Technorati Tags: Compound Interest Formula, Debt consolidation, Rule of 72, What to Invest In

Learn From Your Investment Mistakes

Posted via email from usafinancialplanning’s posterous

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Why We Are Economically Still Better Off Than Our Parents

August 26, 2009 11:47 AM ET  Kimberly Palmer

Do you think you’re better off than your parents?
It’s a question that’s not so easy to answer: Plenty of 20- and 30-somethings say their parents were able to afford a first home, children, and financial security long before they even settle into a stable job. But according to a survey taken earlier this year by the Economic Mobility Project at the Pew Charitable Trusts, almost six in 10 respondents said their standard of living is much or somewhat better than their parents’ was at the age they are now.
Some people may wonder how this can be at a time when  20-somethings are burdened by higher amounts of student loan and credit card debt than ever before, as well as a recession that has left as many as one in five of those under 30 unemployed. Ianna Kachoris, project manager of the Economic Mobility Project, says the answer lies at least partly in Americans’ optimism. “Even during one of the biggest downturns, eight in 10 Americans still believe they can get ahead,” she says. Read More …

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