Posts Tagged ‘invest’

How To Invest Online-The Safe Way

How To Invest Online-The Safe Way

Investing Online – A Primer For The New Investor

Investing online is one of the most popular and fastest growing activities of the Internet age.

Although many imprudent investors lost their shirts investing during the dot-com boom and bust of the mid-to-late nineties, today people engaged in investing online are typically more responsible, and often more knowledgeable than their offline counterparts.

Investing is particularly good for active traders or anyone who likes to monitor and manage their own investments. Although some basic knowledge of financial markets is good to have before you begin investing online, there are few better ways to learn than actually getting started.

After all, when it’s your money, you’re much more likely to take a serious interest than when paper trading or reading a textbook.

Picking a Broker For Investing Online

Some people think that internet investing means that you don’t have a broker. This isn’t so. Although you probably won’t meet face to face with him, and in fact, “he” might actually be an “it” (meaning a faceless company), everyone must technically have a “broker” to buy or sell most securities.

Investing online is a great way to save money on commissions, though, since you don’t have to pay for the face time with a traditional stockbroker.

Ameritrade and E-Trade are probably the most well-known venues for internet investing. They were early entrants into the online investing market and are still among the industry leaders today.

It is important to note that Ameritrade acquired TD Waterhouse in 2005, and is now known as TD Ameritrade.

Both Ameritrade and E-Trade have modest requirements for opening an account – ,000 initial deposit for Ameritrade and ,000 for E-Trade. Trades are .99 at both of these online brokers.

If ,000 seems like a lot of money to you, then you may prefer Sharebuilder as a venue for investing online. With Sharebuilder, there are no minimums, and “investments” are just each (and can be as cheap as ).

The term “investments” is used instead of “trades” because with Sharebuilder, your money is pooled with other small investors and stocks are purchased every Tuesday.

If you invested 0 into a stock trading at .50 per share, your Sharebuilder account would be credited with 9.56 shares (6 invested, counting for the investment fee).

As you can see, Sharebuilder is a great way to get started with Internet investing if you don’t have at least ,000 and want to make small, regular investments.

Other popular outlets for buying stocks online include Fidelity, ScottTrade, OptionsXpress, and FirstTrade, among others. Some publicly traded companies even have direct investment programs available through their web sites.

Investing Online: It’s More Than Just Stocks

When investing, you’re not limited to just stocks. Mutual funds, ETF’s, bonds, options, futures, currencies, and commodities can all be part of investing online.

The forex (foreign exchange market) is popular among hyper-traders due to its 24/7, global nature. By contrast, conservative investors can bid on and purchase U.S. government bonds online through the treasury department’s web site.

Investing through mutual funds is particularly popular and easy. You can just go to a mutual fund company’s web site and sign up.

Whereas if stocks are part of your online investing strategy, a lengthy account application must be filled out and your account must be approved, investing online with mutual funds comes without a lot of the red tape.

Best of all, there are typically no commissions and if you agree to make regular investments through your bank account, you may be able to begin investing for as little as per month!

William Smith the author provides additional financial information on many subjects as well as the secret to his success in the market along with 5 Free power stock picks emailed daily so grab your Free subscription on his website at Invest Online (All is Free)

Be the first to comment - What do you think?  Posted by admin - October 2, 2010 at 6:53 pm

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Shop Today, Invest for Tomorrow

Shop Today, Invest for Tomorrow

Investing is one of the best ways to build up a comfortable financial cushion over time, but it takes diligence to allocate money for an investment account on a regular basis. Fortunately, there is an easy way to tuck away a few dollars, without even thinking about it, every time you shop.

To help people become more disciplined investors, Vesdia Corp. offers an easy savings program called Stockback. Through the program, shoppers earn unlimited rebates on the everyday items they buy from a network of more than 500 participating merchants, including 1-800-Flowers, Eddie Bauer, Hickory Farms, The Sharper Image, Media Play, Illuminations, Barnes & Noble and Sam Goody.

People participating in the program can choose to have their rebates sent to them via check or deposited directly into an IRA, mutual fund, money-market account or virtually any other savings vehicle they choose.

In the past year, Vesdia also rolled out a Stockback Loyalty Rewards Card that lets cardholders earn rebates of up to 2 percent every time they use the card — no matter where they shop. Using the card at Stockback’s participating merchants earns additional rebates of up to 7 percent.

And to make it even easier for its members to invest, Stockback recently formed a partnership with ShareBuilder, an online investing company.

Through ShareBuilder, investors can conveniently purchase stock for a low transaction fee with no minimum investment requirements. ShareBuilder Securities is an independent broker-dealer and member NASD/SIPC. Simply choose the dollar amount you want to invest in particular stocks. ShareBuilder will then buy the stocks at current market prices and let you know how many shares you’ve purchased. Stockback members earn an additional 2 percent when using the Stockback Loyalty Rewards Card to pay for ShareBuilder Investing Program monthly subscription fees.

Anyone can join the Stockback program for free by completing an online membership application. Once you submit your application, you can begin shopping and earning immediately.

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Be the first to comment - What do you think?  Posted by admin - September 19, 2010 at 8:01 pm

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Invest in Tax Lien Certificates and Tax Deeds Tax Free

Invest in Tax Lien Certificates and Tax Deeds Tax Free

Did you know that you could use money from a self-directed IRA account to invest in tax lien certificates or tax deeds? I’ve interviewed retirement account specialists from two different self-directed IRA companies; EntrustCAMA and Equity Trust Company, and I’ve learned that it is possible to invest tax free in tax lien certificates and tax deeds with a self-directed IRA.

If you use money from a regular self-directed IRA account to invest in tax lien certificates or tax deeds, than your money grows tax free until you withdraw from your account after retirement. But, if you use money from a Roth self-directed IRA, and you do not take any withdrawals until retirement age – you do not pay any taxes on your profits! So if you are using tax lien or tax deed investing as a way to save for your retirement, you need to look into this.

Although many brokerages will say that they have self-directed IRA accounts, they are not true self-directed accounts. You can only invest in anything that they sell. A true self-directed retirement account will allow you to invest in anything that is not prohibited by law. Allowable investments include real estate, tax lien certificates, tax deeds, and notes, along with other of the more usual investments. True self-directed IRA companies are prohibited to sell you investments. They can recommend types of investments that you can use your self-directed IRA for and show you how to do the paper work for them, but they are not allowed to make a commission on what you buy. There are only a handful of these companies in the country. I personally only know of three of them and I’m familiar with only two. I’ll tell you how to find out more about these two companies later.

You might be wondering if you can transfer or “roll-over” money from your present 401k or IRA into a self-directed IRA with one of these companies. What I’ve been told from retirement account specialists is that you can only roll over money from your 401k if you are no longer working for the company that your retirement account was set up with. I know that you can roll over money from a regular IRA account into a self-directed IRA because I’ve recently done that. I took money from my IRA account with TDAmeritrade and rolled it over into a new self-directed IRA account with EntrustCAMA. It was easy to do. I was able to transfer the money when I opened my new account. I downloaded the forms that I needed from their web site and mailed them in. They took care of the rest.

You also might be wondering if there are any fees associated with opening and maintaining a self-directed IRA. Yes there are some fees, but they are minimal compared to the taxes that you would be paying the government on your investment income or capital gains. Each of these companies handles fees differently and in order to see which company would work better for you, I suggest that you visit their web site or talk to a representative.

You can find out more about EntrustCama at http://www.entrustcama.com/ and you can listen to a free teleseminar/interview with Carl Fischer of EntrustCAMA at http://www.audioacrobat.com/play/WmTmzsXs. You can find out more about Equity Trust Company at http://www.trustetc.com/ and you can listen to a free teleseminar/interview Liz Koos of Equity Trust Company at http://www.audioacrobat.com/play/WvX8Qr1Q.

Joanne Musa works with people who want to build an extremely profitable portfolio of tax lien certificates or tax deeds FAST. She is the author of the Tax Lien Investing Basics system for learning how to invest in tax lien certificates and tax deeds for maximum profit, and founder of Tax Lien Consulting LLC, a consulting company specializing in tax lien investing coaching and education. Go to www.taxlienlady.com for more information about tax lien investing.

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Be the first to comment - What do you think?  Posted by admin - September 18, 2010 at 7:55 pm

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Is this a good time to invest? How should I invest?

Is this a good time to invest? How should I invest?

The thing there is no right or wrong time to invest in market. Your investment decision should depend on the price of stock and strength of the stock. There is no exact definition for right stock. . Investing in companies whose stock prices are currently undervalued but the company has good growth potential in future would be called as investing in undervalued stocks and generally advisable.

Following are couple of ratios to find undervalued stocks but to take decisions for investment further analysis is important and these ratios don’t provide all information.

Low Price to Earnings (PE) ratio

PE ratio is one of the most important ratio on which most of the traders and investors keep watch. The PE ratio tells you whether the stock’s price is high or low relative to its earnings. The high P/E suggests that investors are expecting higher earnings growth in the future compared to companies with a lower P/E. but, the P/E ratio doesn’t tell us the whole story of the company. It’s more useful to compare the P/E ratios of one company to other companies in the same sector/industry and not in different sectors. PE ratio of less then 10 is generally considered as undervalued provided it has future growth potential. And in some scenarios PE of 10 to 15 can also be considered provided the company has high growth performance in past and expecting same in future. Generally stocks bought below 10 and kept invested for long term given more great returns.

Low Price to Book Value (PB)-

Basically PB ratio is mostly utilized by value investors to find real wealth when the stocks are at their lower prices. So investing in stocks having low PB ratio is to identify potential candidates for future growth. A lower P/B ratio could mean that the stock is undervalued. Book value – It is the total value of the company’s assets that share holders would receive if a company closed down. Like the PE, the lower the PB, the better the value of the stock for future growth. Some of the investors become quite wealthy by holding stocks for the long term of such companies whose growth is based on their businesses instead of market. If the stock’s price to book value is below 1 then it is considered as undervalued.

Earning Per share –

EPS shows how the company is profitable and growing. EPS of a company should keep increasing year after year. So the conclusion is to have a look for the past 4 to 5 years EPS and check the consistent incremental growth in the ratio.

Above three are most widely used ratios but decision based on only above is not advisable.

Experts also suggest opening multiple accounts because different accounts offer different kinds of specials. For example TradeMonster rates for Options Trading is exceptional, on the other hand TradeKing offers one of the cheapest rates for Stocks trading. Incidentally both of them have specials going on currently for new accounts. For more details on how to select a brokerage firm for your needs, check out Finding The Best Online Discount Stock Brokers

CompareBroker.com aims at helping Traders (Stocks, Equities, Options, IRA, Mutual Funds) to make smart investing decision in stock market. We partner with different online stock brokers and bring out their value proposition to consumers for a fair comparison.

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Be the first to comment - What do you think?  Posted by admin - September 7, 2010 at 11:01 am

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