Buying Physical Gold: The Basics

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Economic turmoil has many concerned about the future — including the future of the dollar.

All of the talk about another round of quantitative easing has some worried that hyper-inflation is right around the corner.  Since gold is seen as a hedge against inflation, it isn’t surprising that some feel that physical gold is a protection against the problems that can come when the Fed is pumping trillions of dollars of created money into the economy.

Others are just worried that the economy is on verge of complete collapse, and that physical gold might be the best currency available if the entire economy falls to pieces.

But before you jump on the gold bandwagon, it’s important to understand some of the basics of investing in physical gold.
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How to Change Your Stock Allocation for Value Informed Indexing in Response to Valuation Shifts

I explained in an earlier article here (“A Better and Less Risky Way to Invest in Stocks”) why you need to take into consideration the price at which stocks are selling when setting your stock allocation.  Stocks offer lower returns and greater risk when purchased at high prices.  So those who go with higher stock allocations when stocks are cheap and with lower stock allocations when stocks are overpriced can expect to be able to retire five to ten years sooner than those who follow Buy-and-Hold strategies, according to the academic research of the past 30 years.

The purpose of this follow-up article is to offer guidance on how to know when to change your stock allocation and by how much.  I suggest a four-step process: Continue Reading

TD Ameritrade Online Stock Trading Review

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Stock trading has come a long way in just over a generation and TD Ameritrade has been a part of that history for more than forty years. It was only thirty years ago that stock trading was still done by calling a stock broker who called a specialist who took part in an auction process that would eventually result in you, the client, owning stock.  Although this still happens today, much of the stock trading now takes place using computer technology.

To see how computers have had a remarkable effect on the investment markets, in 1961 the New York Stock Exchange reached trading days of 4 million shares sold.  Today, because of new technology, over 4 billion shares are traded on some days.

Because of this new technology, much larger volumes of trades can now take place and more trades means more business for brokers.  That extra demand has given rise to a virtually endless supply of online brokers that made the stock market accessible to all consumers at a price they can afford.

In the following TD Ameritrade review, we’ll see what makes this broker tick and why they may be a good fit for your investing needs. Continue Reading

What You CAN’T Hold in an IRA

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We hear a lot about what we CAN hold within our individual IRA accounts, but never anything about what we CAN’T hold within them.  A Roth IRA or Traditional IRA is an appealing financial vehicle since you have a wide range of choices versus something like a 401(k) plan where you are limited to a number of mutual funds to pick from.  We all know that investments such as stocks, bonds, mutual funds, index funds, ETF’s, and annuities can be held within an IRA.  The list goes on and on but you should be aware of the types of investments that are barred from these accounts.  Watch out for the following investments, since they’re not allowed in a tax deferred retirement account!

What you can’t hold in an IRA:

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Investing: Why Boring is Good

In many ways, we are conditioned to believe that anything boring is undesirable. However, in some cases, “boring” can be a good thing.  I like to think that investing is one of those things that can be better when it’s boring, rather than exciting.  I consider myself a rather boring investor, focusing mainly on index funds and dividend aristocrats.  Here’s why when it comes to investing, why boring is good: Continue Reading

TradeKing Online Discount Brokerage Review – Inexpensive Trades and Plenty of Tools

Putting your trust into an investment website can be somewhat scary.

How do you know if they are really trustworthy with your money and investments?

TradeKing online discount brokerage may be the place for you.  Let’s take a look at what makes TradeKing great in this TradeKing review.

At TradeKing.com, you do not need to have any worries about the safety of your trades.  Established in 2005, they strive to take care of their investors in every way they can.  They designed their company to make it easier for investors without any confusing double-talk and they treat everyone equal, instead of only giving their full attention to the large investors.

TradeKing treats each and every client like they would like to be treated themselves, and strive to work by principles of honesty, fairness and high-touch service.  At TradeKing  you can even converse with other investors in their Trader Network, so that you can see what others are investing in and what is working for them, getting much needed advice for your investments from people like you. Continue Reading

What Should I Look For in Bargain Stocks?

Don’t we all wish that we had bought Apple Computers (NASDAQ:AAPL) in 2003 for $7/share (currently touching $400/share) or my all time favorite, Hansen Natural (NASDAQ:HANS) that could be bought for 50 cents/share just 8 years ago and now currently sells for $80/share!

These stocks were bargains in the hindsight but if you were investing then you would have not known just by looking at them.  Of course, no one knows the future and it would not have been possible to predict the launch and success of iPhone and iPads back then.  And if, in 2003, someone had told you that a maker of fruit juice drinks is going to be the hottest stock of the decade, you would have just laughed.

There are many such stocks today that are selling at a bargain price.  Some of these stocks will go on to deliver spectacular performance for the investors who have done their due diligence today and patiently hold on for a long time.  The question is how we find them.  Let’s see if we can answer the question “what should I look for in bargain stocks?”Continue Reading

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