How to Finance Your Child’s Education

These days the moment you give birth to a child, the first thing that strikes your mind is “I need to start saving for my child’s education, life, career, marriage…” and so on. You have already planned the schools to try and every night you are dreaming about the bright future you want for your little one. Every parent knows that education is the first step their child has to take in life to make it big. Not only would it give him a solid economic stand but would also help in developing him as a beautiful and intelligent person in life.

We all know that good education does not come for free. However you can avoid making a huge burden out of it if you plan efficiently.

1. One of the ways you can accumulate funds for your little one’s account is by opening an account in your bank where you keep depositing a certain amount of money every month from your earnings for his/her education.

2. You can also open a fixed deposit account for your child. During his years of higher education, he can utilize the money obtained after maturity of the fixed deposit that you had opened for him or her.

3. Loans are a good option too, but keep it as your last resort as while repaying loans you will definitely end up paying a higher price than your actual budget plan.

4. You can also consider taking up a flexible education saving plan. Savings you do here can be used not only as school fees but also for tuitions and other education related issues.

5. While planning your child’s education make sure you take into account higher studies, possibilities of studying abroad, school trips and excursions that you wouldn’t want your child to miss out on, school uniforms additional project costs etc.

6. It is best to engage a financial advisor. Your personal financial advisor will guide you on how to save your earnings for your child’s future. These days there are a variety of education schemes available as well.

7. There are Child Trust Funds that you could rely on. ISA’s, bonds and saving accounts could be opted for. Equity based savings and purchase and sale of stocks and shares can help you attain funds for your child’s education and growth in career. Try and purchase shares in small quantities which you speculate could give you higher returns in the future.

8. Fix a budget beforehand and plan accordingly. Rest assured your child’s future will be in safe hands once you have saved and planned for his education. Remember every child has the right to proper education and as parents it is your responsibility to guarantee him or her, a secured future.

Gone are the days of depositing coins everyday in your child’s little piggy bank. You must take into account that education these days is expensive yet unavoidable. You must plan your finances accordingly to ensure your child gets the best education money can buy.

Start saving today. Cut down on unnecessary expenditures you both as parents were indulging in for sometime and save for your child, after all it is your child that will act as your main support system in your old age. So he or she needs to be economically stable to be able to take care of you in your old age, illness and times of need. And only a good education can help him get to the level in life where he can assure you and relieve you of your financial worries in your later stage of life and help support you at all times.

Best Home Based Businesses That You Can Pick

People nowadays are more open to exploring new avenues of earning their living and therefore it is a good option that rather than going in for something that is run of the mill, you can choose a home based business which will get you an equally good pay packet in the market and what’s better is that you will be self employed and your own boss. There are a number of options that you can try in this regard but there are some that have been regarded as the best home based businesses currently in the market.

One of the most popular home based businesses that you can start is the job of a personal trainer. Here you can move around your client’s homes after you have gotten the necessary certification. Another related profession that is real good is a yoga instructor. This works in the same was as a personal trainer. Otherwise another one that can very well be included in the list of best home based businesses is tutoring. You can pretty easily start your own business tutoring from home. One of the best ways in which you can start is by contacting local institutions as well as the nearest YMCA center.

One of the other alternate business ventures that you can employ if you are looking at in terms of home based enterprises is business coaching. If you are someone who has been in the field of business and management, then you can surely impart some of your knowledge to people willing to learn.

3 Best Ever Home Based Business Startup Ideas

Hello there and in this article I am going to show you best home based business startup ideas. And also I must say that if you are planning to start your own home based business you have landed on right article because I am about to show you best 3 one’s so make sure you read this article to the end.Home based business startup ideas – idea number 1 is making money online with blogs.This one is for sure one of the best idea you can find out there and it can give you lots of income in short time, if you will do everything right. The process of making money with this home based business plan is simple: pick up a niche you would like to work in, create blog using free or paid tools, put AdSense from Google and banners on your blog, fill your blog with articles and videos related to niche you have picked up, start driving targeted traffic to your blog.If you think it’s very hard to start seeing your first income online with this idea you are very wrong. I can show you how you can start making some money in less than one week time with blogging. Create simple white blank page blog but with something interesting and funny inside. You know most people always like to be entertained, so if you will create a blog that would entertain them they will be more than glad to come back to your blog on daily basis. So after you will create a blog tell about it to your friends. Also join social networks like Facebook or MySpace and start making friends out there. The more friends you will have the more visitors to your blog you will have hence the more money you will have as well.Home based business startup ideas – idea number 2 is making money online with PLR products.This one is one of the quickest one. As you can find PLR products with readymade professional sales page, so that means your home based business can be up and running in less than 24 hours. Imagine high quality product, with your own landing page, professional sales page in less than 24 hours. So literally tomorrow all you will have to take care of is just start driving targeted traffic to your products page, couldn’t be simpler.Home based business startup ideas – idea number 3 is making money online as affiliate marketer.This one for sure can make you financially free. If you will be patient and will be keep working with it on daily basis you can start making five or six figure online in less than 6 months. And that’s %100 true. You just need the right knowledge’s, support and hard work of yours. Just imagine what potential is of this home based business program if once you will build a list of 1,000 subscribers you will be getting in profits at least $2,000 every single week. And that’s minimum. How much money then you will be making on weekly basis if you will have 10,000 subscribers – $20,000 every single week. I know you are shocked, me too actually.OK so those were home based business startup ideas and those were three best ones. Keep in your mind that it does really possible to start seeing results in less than one week with every single one of them you just need the right knowledge’s.

Poverty Fighters – Home Based Business, Charity, Or Both?

The Poverty Fighters are raising money for charities, they are helping people making money from home and they are putting together what they are calling “The Road To End Poverty Tours”So would you call them a home based business, a charity, or both?Some are calling them a charity because of how much they are focused on ending poverty. They actually have a really good plan to end poverty.Have you ever heard the saying “If you give a man a fish he will eat for a day, But if you teach a man to fish he will eat for a lifetime”?You could say the Poverty Fighters took this saying and put it to work, because that is almost exactly what they plan on doing. Their “Road To End Poverty Tour” is going to travel the world teaching those in poverty how to make money with no money, they are going to also teach and help those in poverty how to build their very own successful businesses.They are also giving at least $2 from every paying member that joins them to charity and they are on track to hit 250,000 members in their first year in business, that means they will have raised $500,000 USD to give to charities in their first year in business.So looking at these two aspects of the Poverty Fighters you could say they are a charity.But if you look at them from the home based business side of things we see something really creative that no other home based business or work from home opportunity would dream of doing. The Poverty Fighters are giving away free level 8 positions and all the tools you will need to succeed online.But the one thing that the Poverty Fighters are doing that no other home based business is doing is they give you everything you need to be successful without even asking for any money up front. They don’t ask you to leave any kind of payment information they don’t even ask for your name!They have so much faith in what they are doing and in their members that they say try everything and if you really like the program and want to help make a difference then make a small one time investment.But if you decide you don’t like the program and everything they give you, then you don’t have to pay anything and they let you keep everything.So how is this working out for them, are people actually paying?They say about 95% of their members are paying members and as mentioned earlier they are on track to hitting 250,000 members in their first year in business.So what are the Poverty Fighters a home based business, a charity or both?Looking at what we now know I would say they are more of a charity than anything, but they don’t ask for donations! Is it possible to be a home based business and a charity?You will have to make the decision for yourself.

Before You Begin Your Adventure in a Home-Based Business

The first thing you should consider in starting a home-based business is the type of business you are interested in beginning. Is it multilevel marketing, is it direct selling or marketing, is it internet or network marketing, or something in between those previously mentioned, or something else all together? The type of home-based business you choose will determine what kind of foundation will be more advantageous for your business. When you are starting out, it is very important that you have a complete understanding of each of the most common types of home-based businesses. You need an understanding of the way the business will be run. Will it depend entirely on your own efforts or will you have affiliates, down-lines, or up-lines or other agendas to follow? Is it really a business you own and that you control, or are you just a player in the line of a money flow in a business that belongs to someone else?There is a lot of material written on each type of home-based business. No home-based business has to be a mystery and each type has principles of its own. Each type has its own pluses and minuses. You may not like them all, and you should know the differences. The different types may indicate things or requirements like the amount of work that you will be required to do, the amount of money required to get started, or the amount of time necessary to be spent and when.How will you attract leads or make sales? How much of the money that you generate will be yours? How many down-lines or up-lines are allowed and from how many levels can you generate money? How much inventory will you be required to keep on hand? What kind of company support can you expect or are you on your own? How much client contact will be necessary and how are you expected to do it; cold calls, evening and weekend meetings, knowledge of internet or network marketing, or something else?The products and services of a home-based business are just as important as any other aspect. The more interested you are in the product or service that you are going to be involved with, the more effort you will put into being a success. At this point, I should say that the number one rule for starting a business should never be to make quick money. To consider a successful business, you must be serious about the foundation you have in the beginning. It is wise to have a strategy in mind as you begin your business. You cannot start out on a trip without a road map. Beginning your own home-based business can be as exciting as you want it to be or you can fall into pitfall after pitfall and loose hundreds of dollars and your interest in the business itself. With a little time spent researching the different types of home-based businesses that are available can save you money and disappointment. Sometimes the frustration suffered from a lack of research before you begin a home-based business can be the determining point when you give up.This may seem like a lot of effort before beginning a home business. Consider though, the effort you put in before starting a home business will allow more time toward making money once you get started. Money and success are the goals for every business. There is a learning curve for everything in life. The things that seem simple or unimportant, may be the road blocks on your road to success. Money is not the first and only measure of success. It is not even the beginning. There are so many things to consider before beginning your home business. There are schemes everywhere out there that are just waiting for the unformed person looking for a quick buck to buy into their hype. P. T. Barnum said, “There is a sucker born every minute.” He made a fortune on those suckers. Do you want to be part of that fortune?Do not be a sucker. Know what you want and know why you want it. Be aware of the most important areas that will make your business a success. You cannot be too serious about what you put your time, effort and money into. Whatever the outcome of your efforts at a home-based business are yours own. Take the time to make every effort to be a success. Learn the ropes and go into your business with your eyes open. A surprise does not have to be lurking around every corner. That is not to say that you will never be surprised, just that you will be prepared and not totally discouraged. It is as easy to be a winner as it is to be a loser, it just takes more preparation and awareness to be a winner. Think it over.

Get More Information on Home Based Business Ideas

If you are gifted with any additional curricular activities like singing, painting, dancing, etc, you can teach students who have an interest in learning. Not only can the children, but the adults also learn from you. This is one great home based business idea. Work at home is really an advantage for females.Females can do both household work as well as home based business together. If qualified, you can take tuition for school students. Most of the students have difficulty in subjects like science, math, etc. If you have online facility and registered with a tutoring site, students from many parts of the world can learn from you.There are online home based business ideas as well as offline ideas. Some examples of offline home based ideas are candle making, home gardener, etc. You can take up the training work of how to make a candle. There is always a great demand for candles during the festive seasons like Christmas, New Year, etc. You can also sell these products through online. Many people do not have the time to look after their home garden. Such people can definitely select home gardeners. Babysitting is also a good idea for the neighboring area for students to take up during summer holidays. You can earn funds through home based daycare.Be bold to select one from home based business ideas and begin your business soon. Virtual assistant job is also lucrative. You begin by registering your name with a freelancer site, which provides such job facilities for people. When you are selected by the buyer, you can work for him and earn funds. A good example for such work is freelance writing. You can research the net for the topic as you research the library book for writing. The content should be original and free from grammar mistakes.Home based daycare for senior citizen is also one of the home based business ideas. Nowadays, both the husband and spouse are earning members of a family. Their children will be at the school and the senior citizens will be alone at their home. If there is such a daycare for the senior citizens, from morning until the sunset, they will not remain alone. They can play and enjoy the daytime with such other members of the daycare. Transportation facility should be provided to pick up the citizens. Also, immediate medical care facility should be arranged for emergency situations.If you are interested in animals or birds, you can collect and sell them. For example, some people sell puppies to earn income. Like this, you can do with birds or fancy fish. This is also one of the home based business ideas. Earning through eBay as a seller is one online idea to make money. You can sell anything that you do not need any more and want it to be sold.To create a reputation in the field, you should sell a specific product. Another home based business is catering service. At first take little orders and provide nice service to customers whether for a party or a simple get-together event.

Top Economic Reasons To Consider An Online Home Based Business To Make Money From Home

There is a mega trend forming right now in the home based business industry. Many Americans have been laid off from their jobs, and they are looking for suitable alternatives to create and earn income from home. When the economy dipped into recession it had many effects, of which unemployment was one of the worst. Fortunately many people have been able to see the greatness of a home based business through experiencing the pains of a faltering economy. The alternative income generating vehicles that are afforded by many home based business opportunities are second to none in terms of compensation, thus a reason so many people are choosing to take advantage of owning their own business.The internet is ever evolving, and when these mega trends start to emerge in society, they are often amplified and reflected in the virtual world. Right now, there is a trend emerging which shows that people are moving away from shopping at brick and mortar retail locations, and they are replacing their buying habits with those that benefit a business who is a frequent participant in the online marketplace. Through the power of internet commerce, coupled with the demand for home based income, we have seen exponential growth in the amount of business opportunities that allow people to make money online.Here are the top economic reasons to consider and online home based business:1. Residual Income – A residual income stream is built by doing work one time and getting paid for it month after month and year after year. One of the cornerstones of an exceptional home based business is the ability for the business owner to create a residual income based upon the size of his or her organization, and the amount of production that the team creates. In a tough economy, it is extremely important to have income streams that do not dry up; hence they are working when you are not.2. Low Overhead – A business that is run out of the home, which markets products and services to a worldwide audience requires very little business expenses compared to owning a retail location. Having low overhead expenses is a major advantage during an economic downturn. Most retail businesses that closed during the 2008-2009 recession were forced to do so because their overhead expenses skyrocketed.3. Worldwide Customers – We live in an age where everyone on the planet can be potentially connected via the internet. People are integrating the net into their lives at an astonishing rate, and we are now able to market products and services to people all over the world like never before. A solid company will position themselves to take advantage of the new and expanding marketplace that the internet offers, and any home based business worth its weight should do the same.Any business that is poised to take advantage of these top economic factors will experience tremendous success in the years to come. A home based business can allow you to take advantage of these economic factors as well.

Real Estate in the Age of the Internet Volume 8

Critique of Traditional Real Estate Brokerage Compensation Model

Given the apparent paradox between real world endurance and academic/political criticism the current real estate brokerage compensation model, a review of recent literature on the topic provides a structure for parsing out the relative merits of the current percentage-based split commission model as well insights as to how it may evolve in the future.

In their 2007 paper, “Is the Compensation Model for Real Estate Brokers Obsolete?” authors Miceli, Pancak and Sirmans (2007) argue the traditional percentage-based split commission model for brokers has become obsolete, given contemporary legal agency relationships and technology-driven information availability. As a result, they conclude buyers and sellers experience substantial transactional inefficiencies during the two primary phases of the real estate transaction, matching and bargaining. They then proceeds to mathematically model the existing compensation model and identify alterations, which would mitigate the inefficiencies he describes. Finally, Miceli et al. (2007), proposes a list of policy actions, which if undertaken, could facilitate the emergence of the compensation model they propose. This paper reaches some useful conclusions in terms of policy actions, however some of the assumptions upon which the supporting argument is made, may neglect certain functional roles of real estate brokerage. In addition, the proposed the compensation model, while elegant, does not address the fundamental basis for why real estate brokerage services, have, up until this point in time, been delivered wholesale. Never the less, Miteceli at al. (2007) is an useful in formulating a vision of how compensation in real estate brokerage may evolve.

The main assumption Miceli et al. (2007) make upon which their central argument is made, is in oversimplifying real estate brokerage services into two all encompassing functions: matching and bargaining. While doing so allows Miceli et al. (2007) to formulate an economic model of broker compensation, it excludes many of the functions brokers perform, which have economic value, but which have here to fore lacked independent pricing due to the existing bundled service model.

As discussed previously, the agent provides a range of services, not only subsequent to the matching and bargaining phases, but within these phases as well, which are omitted by Miceli et al. (2007) in the interest of modeling broker compensation. For example, decisions regarding pre-listing activities such as level of property fix-up (requiring monetary investment) and home staging decisions are often critical in the matching phase and can have substantial impact on the final sales price. Alternatively, decisions involving choice of appraisal company can influence property valuation, thereby influencing the probability of a successful a bargaining phase. In the Miceli et al. (2007) model, these types of services are essentially considered to have zero economic value, as Miceli et al. (2007) advocate for a collective listings aggregations model in lieu of the process by which brokers search for listings: “we will argue however, that unlike an unimpeded search for buyers, competition for listings is unproductive in that it does not increase the likelihood of a sale…” Miceli et al. (2007). It is precisely within this process that brokers and agents market their skills (compete) in the aforementioned examples and affect sale price. The underlying supposition in the Miceli et al. (2007) analysis is that all seller brokerage services are commodities.

Another potential weakness in the Miceli et al. (2007) broker compensation model, is in their economic overvaluation of the role of the broker during the matching phase as associated with property search. Miceli et al. (2007), argue the emergence of information technologies has allowed buyers to search through property listings information independently of the real estate agent, which they juxtapose to the era when agents controlled access to such information. Their argument posits that free and unfettered public access to listings information should have resulted in a reduction in broker compensation, to reflect the reduced value add of the broker: “The traditional compensation model for brokers has not evolved to reflect their diminished role in the matching stage” Miceli et al. (2007). In reality, the persistence (growth) of the traditional percentage-based split commission compensation model in the face free listings information on the internet and disaggregated real estate service providers reveals a fundamental truth: for-sale property listings information in and of itself has little economic value; access to information was used as an inducement to enter into a formal agency relationship, during which value added services were provided. It follows from this, that use of traditional brokerage service would remain steady and no reduction in broker compensation would be seen when such information is made freely available. And in fact, this has been the case, as is demonstrated in the reduction in the rate of FISBO’s seen since 1987 and persistence of brokerage commission rates over the same period. “Between 1998 and 2005, the real median real estate broker commission per transaction grew by 25.5%. However, commission rates remained relatively stable during that time irrespective of market conditions, home prices, or effort to sell a home (US Government Accountability Office (GAO), 2006).”

Perhaps the most instructive oversight in the Miceli et al. (2007) argument is in their lack of treatment of the true economic justification of the current compensation model, which is based on risk and reward. Currently, in real estate brokerage, agents and brokers assume 100% risk in the transaction purchase sale and sale process. They incur tangible and intangible expenses throughout the entire process without guarantee of payment. Buyers and sellers on the other hand assume no risk and only make payment upon successful consummation of a transaction. In this respect, the real estate brokerage model exhibits attributes of an insurance model, with wholesale payment for services rendered upon successful transactions required to compensate for expected losses on unsuccessful transactions. In order to justify his compensation model, Miceli et al. (2007) make the leap to a future point in time when the provision of disaggregated brokerage services are proven to be independently economically feasible and more importantly, to when the provision of such services does not undermine the structural “insurance” dimension of real estate brokerage; the attribute which allows buyers and sellers to incur no upfront expense in the purchase and sale of real estate.

The traditional percentage-based, split commission compensation model in real estate brokerage is still prevalent today because it crudely, yet none the less effectively, compensates brokers and agents for their direct and indirect expenses. While there is evidence the industry has engaged in anticompetitive behavior on an institutional level, these actions are a rational given the potential unintended consequences associated with undermining the economic underpinnings the industry. However, while anti-trust proceedings continue to move forward, the very same trends the industry has sought to curtail, such as unfettered access to MLS listings by the public and the emergence of limited service discount brokerages, have taken place none-the-less. And yet, wholesale real estate brokerage remains the dominant business model and the percentage-based, split commission compensation model continues to endure. The main conclusion which can be drawn from these circumstances is that the primary value agents and brokers bring to the real estate value chain is not associated with information control but rather, with information management. In the long and complex real estate transaction, agents and brokers collect, analyze, interpret, and transmit data. Given the relative infrequency of sales transactions, the public at large does not attain the collective skills to engage in these activities, wholly or partially. The risks and costs associated with engaging in these activities motivate the public to contract with traditional wholesale brokers and agents as opposed to experimenting with alternative models.

Understanding The Most Important Investment Concepts

It’s always good to have at least a basic foundation of fundamental investment knowledge whether you’re a beginner to investing or working with a professional financial advisor. The reason is simple: You are likely to be more comfortable in investing your money if you understand the lingo and basic principles of investing. Combining the basics with what you want to get out of your investment strategy, you will be empowered to make financial decisions yourself more confidently and also be more engaged and interactive with your financial advisor.

Below are a few basic principles that you should be able to understand and apply when you are looking to potentially invest your money or evaluate an investment opportunity. You’ll find that the most important points pertaining to investing are quite logical and require just good common sense. The first step is to make the decision to start investing. If you’ve never invested your money, you’re probably not comfortable with make any investment decisions or moves in the market because you have little or no experience. It’s always difficult to find somewhere to begin. Even if you find a trusted financial advisor, it is still worth your time to educate yourself, so you can participate in the process of investing your money and so that you may be able to ask good questions. The more you understand the reasons behind the advice you’re getting, the more comfortable you will be with the direction you’ve chosen.

Don’t Be Intimidated by the Financial Lingo

If you turn on the TV to some financial network, don’t worry that you can’t understand the financial professionals right away. A lot of what they say can actually boil down to simple financial concepts. Make sure you ask your financial advisor the questions that concern you so you become more comfortable when investing.

IRAs Are Containers to Hold Investments-They Aren’t Investments Themselves

The first area of confusions that most new investors get confused about is around their retirement vehicles and plans that they may have. If an investor has an individual retirement accounts (IRA), a 401(k) plan from work, or any other retirement-type plan at work, you should understand the differences between all the accounts you have and the actual investments you have within those accounts. Your IRA or 401(k) is just a container that houses your investments that brings with it some tax-advantages.

Understand Stocks and Bonds

Almost every portfolio contains these kinds of asset classes. If you buy a stock in a company, you are buying a share of the company’s earnings. You become a shareholder and an owner at the same time of the company. This simply means that you have equity in the company and the company’s future – ready to go up and down with the company’s ups and downs. If the company is doing well, then your shares will be doing well and increase in value. If the company is not doing well or fails, then you can lose value in your investment.

If you buy bonds, you become a creditor of the company. You are simply lending money to the company. So you don’t become a shareholder or owner of the company/bond-issuer. If the company fails, then you will lose the amount of your loan to the company. However, the risk of losing your investment to bondholder is less then the risk to owners/shareholders. The reasoning behind this is that to stay in business and have access to funds to finance future expansion or growth, the company must have a good credit rating. Furthermore, the law protects a company’s bondholders over its shareholders if the company goes bankrupt.

Stocks are considered to be equity investments, because they give the investor an equity stake in the company, while bonds are referred to as fixed-income investments or debt instruments. A mutual fund, for instance, can invest in any number or combination of stocks and bonds.

Don’t Put All Your Eggs in One Basket

An important investment principle of all is not to invest all or most of your money into one investment.

Include multiple and varying types of investments in your portfolio. There are many asset classes such as stocks, bonds, precious metals, commodities, art, real estate, and so on. Cash, in fact, is also an asset class. It includes currency, cash alternatives, and money-market instruments. Individual asset classes are also broken down into more precise investments such as small company stocks, large company stocks, or bonds issued by municipalities, or bonds issued by the U.S. Treasury.

The various asset classes go up and down at different times and at different speeds. The purpose of a diversified portfolio is to mitigate the ups and downs by smoothing out the volatility in a portfolio. If some investments are losing value at some particular period, others will be increasing in value at the same time. So the overarching objective is to make sure that the gainers offset the losers, which may minimize the impact of overall losses in your portfolio from any single investment. The goal that you will have with your financial advisor is to help find the right balance between the asset classes in your portfolio given your investment objectives, risk tolerance, and investment time horizon. This process is commonly referred to as asset allocation.

As mentioned earlier, each asset class can be internally diversified further with investment options within that class. For example, if you decide to invest in a financial company, but are worried that you may lose your money by putting everything into one single company, consider making investments into other companies ( Company A, Company B, and Company C) rather than putting all your eggs in one basket. Even though diversification alone doesn’t guarantee that you will make a profit or ensure that you won’t lose value in your portfolio, it can still help you manage the amount of risk you are taking or are willing to take.

Recognize the Tradeoff Between an Investment’s Risk and Return

Risk is generally looked at as the possibility of losing money from your investments. Return is looked at as the reward you receive for making the investment. Returns can be found by measuring the increase in value of your investment from your original investment principal.

There is a relationship between risk and reward in finance. If you have a low risk-tolerance, then you will take on less risk when investing, which will result in a lower possible return at any given time, relatively. The highest risk investment will offer the chance to make high returns.

Between taking on the highest risk and the lowest risk, most investors seek to find the right balance of risk and returns that he/she feels comfortable with. So, if someone advises you to get in on an investment that has a high return and it is risk-free, then it may be too good to be true.

Understand the Difference Between Investing for Growth and Investing for Income

Once you make the decision to invest, you may want to consider whether the objective of your portfolio is have it increase in value by growing overtime, or is it to produce a fixed income stream for you to supplement your current income, or is it maybe a combination of the two?

Based on your decision, you will either target growth oriented investments or income oriented ones. U.S. Treasury bills, for instance, provide a regular income stream for investors through regular interest payments, and the value of your initial principal tends to be more stable and secure as opposed to a bond issued by a new software company. Likewise, an equity investment in a larger company such as an IBM is generally less risky than a new company. Furthermore, IBM may provide dividends every quarter to their investors which can be used as an income stream as well. Typically, newer companies reinvest any income back into the business to make it grow. However, if a new company becomes successful, then the value of your equities in that company may grow at a much higher rate than an established company. This increase is typically referred to as capital appreciation.

Whether you are looking for growth, income, or both, your decision will fully depend on your individual financial and investment objectives and needs. And, each type may play its own part in your portfolio.

Understand the Power of Compounding on Your Investment Returns

Compounding is an important investment principle. When you reinvest any dividends or other investment returns, you begin to earn returns on your past returns.

Consider a simple example of a plain bank certificate of deposit (CD) that is rolled over to a new CD including its past returns each time it matures. Interest that is earned over the lifetime of the CD becomes part of the next period’s sum on which interest is assessed on. At the beginning, when you initially invest your money compounding may seem like only a little snowball; however, as time goes by, that little snowball gets larger because of interest compounding upon interest. This helps your portfolio grow much faster.

You Don’t Have to Go at It Alone

Your Financial Advisor can give you the investment guidance that you need so that you don’t have to stop yourself from investing in the market because you feel like you don’t know enough yet. Knowing the basic financial principles, having good common sense, and having your Financial Advisor guide you along the way can help you start evaluating investment opportunities for your portfolio and help get you closer toward achieving your financial goals.

How To Succeed At Online Product Creation The Easy Way

Product creation could be a frightening subject for a lot of Internet marketers to face. Some folks who get in the game with the intention of making a full time income are completely ignorant as to how an online business operates. One of the most profitable ways to create online cash is by creating a product that others are happy to pay for.

Product creation is legitimate method of generating money through internet marketing but many entrepreneurs get it wrong. They start by imitating their Internet marketing gurus by creating information products on Internet marketing in hopes of getting rich the way their heroes did. The problem is that they usually don’t know what they are doing and enter a highly competitive niche with very little marketing experience or connections.

Here are a few tips for effective product creation that may help you get on the right track:
Start by finding a profitable niche with low to moderate competition. If you conduct some rudimentary market research and keyword research, you’ll find many opportunities in areas that will surprise you. Amazon and eBay are two great places to brainstorm for product ideas.

Developing Your Product does not have to be a difficult project. You can find experts in the right field for your niche and pay them to write the material while an artist designs the packaging and website or blog. You can outsource the entire product creation part of the project after you conduct the research and testing to ensure profitability.

Sales and marketing strategies should be created while developing the product and learning about the market. Some experienced marketers use pay per click to drive traffic to their offer page; some folks outsource the entire marketing campaign to affiliates through ClickBank or other affiliate programs.

Product creation does not need to be hard, particularly when the merchandise is electronic. E-books, videos, audio and multi-media products sell very well. They are distributed immediately to customers electronically. Once you have a good feel for a niche market, try to service your customers with associated products and upgrades. If you want to earn money online through product creation, you must understand supply and demand. The majority of new online marketers fail miserably because they go after highly competitive markets or forget to research their chosen niche properly. You have to create your products according to the needs, wants and desires of the prospective customers.