Money Games Information

If you don’t have specific financial goals, it’s more difficult to resist spending money on items that don’t really have any meaning to you.

Photo: Jake Wasdin

Answer these questions truthfully:

1. Does your spouse or partner complain that you spend too much money?
2. Are you surprised each month when your credit card bill arrives at how much more you charged than you thought you had?
3. Do you have more shoes and clothes in your closet than you could ever possibly wear?
4. Do you own every new gadget before it has time to collect dust on a retailer’s shelf?
5. Do you buy things you didn’t know you wanted until you saw them on display in a store?

If you answered “yes” to any two of the above questions, you are an impulse spender and indulge yourself in retail therapy. This is not a good thing. It will prevent you from saving for the important things like a house, a new car, a vacation or retirement. You must set some financial goals and resist spending money on items that really don’t matter in the long run.

Impulse spending will not only put a strain on your finances but your relationships, as well. To overcome the problem, the first thing to do is learn to separate your needs from your wants. Advertisers blitz us hawking their products at us 24/7. The trick is to give yourself a cooling-off period before you buy anything that you have not planned for.

Photo: Aiko Heiwa

When you go shopping, make a list and take only enough cash to pay for what you have planned to buy. Leave your credit cards at home. If you see something you think you really need, give yourself two weeks to decide if it is really something you need or something you can easily do without.

By following this simple solution, you will mend your financial fences and your relationships. To overcome the urge to spend money, learn to recognize your needs from your wants. We’re constantly bombarded with messages from advertisers who appeal to our psychological needs to tempt us into spending money on things we want but may not need.

When it comes to planning your financial retirement many people focus on the different types of accounts that you can use in which to defer payments or avoid taxes for a little while but very few people discuss in depth the specific things in which you can invest those funds that you have so carefully squirreled away for the important day that is to come in the dark dank future that seems as though it will never arrive.

Photo: etftrends.com

Bonds are not your typical high risk-high yield investment but they are very likely to earn a return for you. If you are not in dire straights for retirement funds this is a slow and steady way to build a decent retirement for yourself over time. If you are in the final hour this is an investment strategy that might be more than slightly too timid for your specific needs. There are other more investment strategies that will be discussed elsewhere.

There are essentially three different types of bonds: corporate, municipal, and government.

Corporations trying to raise funds for ventures such as building new facilities or launching new product lines typically issue corporate bonds. The interest on these bonds is taxable. As a result these bonds tend to pay higher and are better retirement investment options than government or municipal bonds.

I have said before and will continue to say that there are no sure things when it comes to investing. While many bonds tend to be safer than some of the other investments on the surface there are significant risks involved when investing in bonds that would be negligent to overlook. Where you find the risks of market ups and downs when investing in stocks, mutual funds, and options the risk is that yours may lose value. When it comes to bonds the risks include the following: default, changes in the interest rate, and inflation. The risks for some are far weightier than the benefits of a slow and ’steady’ investment.

Photo: government-bond.com

You should really carefully consider whether or not bond investing is a good idea of your retirement needs along with your nerves. We weren’t all born with nerves of steal, for this reason it is probably a good idea to carefully decide whether or not you are comfortable with the risks that bonds introduce into your investment picture.

I always recommend that you take the time to discuss your plans and goals with a financial planner before taking the plunge and making any major financial decisions whether they concern your retirement or your child’s college fund. These all affect your future and the security you can provide your family when the time comes. A good financial advisor can help you weigh the pros and cons of investing in bonds and help you decide whether or not the potential payout on these bonds is worth the risks that are involved in the process. This is not the case for everyone. I tend to be a more cautious investor than most and will think long and hard before investing on things that I do not consider a carefully crafted and calculated risk.

Only you can decide whether or not you are comfortable with the idea of investing in bonds when it comes to your financial retirement hopes and dreams. I hope you will discuss this with our advisor and carefully consider the ramifications of this decision.
 

You may know about the internet being one of the tools used by so many people to make some cash through online businesses. The fact that the internet can deliver cash right at your doorstep if you know how, you will definitely want to try and take a piece of the big pie in the internet. However, what kind of online business can ensure you to earn some cash? One way is by becoming a FOREX trader. Although this kind of online business has existed for a few years now, you have to consider that this is one of the new forms of income generating businesses from the internet.
 

Photo: forextradersmasters.com

In the past, the FOREX market was closed only to multinational corporations and banks. They are the only ones allowed to trade in this vast and very liquid market. In FOREX, currency is traded against one another. In order to become successful in FOREX, one must know when to trade specific kinds of currencies and which currency they should trade it against with.

So, even though the FOREX market can make you some cash, there are risks that you should always be wary about. Online FOREX trading is one of the new forms of income generating businesses from the internet today. With this kind of online business, you can be sure that you will earn some cash. Just remember that you do need to know the FOREX market first before you start trading. This will minimize risks of losing money and maximizing your chance of profiting. 

Too Good to Be True Isn’t Necessarily So
By John Dade

With the recent scandal ridden downfall of yet another Wall Street Big Dog Bernard Madoff, the usual group of "see we told you so" folks are happily falling all over themselves rushing to get the word out to all of us hapless investors that their timeless mantra of "if it sound too good to be true it probably is" has proven itself again.

Photo: houstontriallawyerblog.com

Rather than looking more closely at the reason for the investment going sour and even more so, the reason so many supposedly smart and big money investors became involved with Madoff and others like him, these journalists and financial pundits lazily just fell back on that always at the ready, time worn "too good" cliche.

When one takes a step back it becomes more clear, at least in my opinion, that those who invested with Madoff and other schemes like his ignored all or most of the basics of Investing 101. Instead, these investors poured in millions, and in some cases billions of dollars based on what I believe were the wrong reasons…the trappings of celebrity, exclusivity, word of mouth and the most telling…a guaranteed return. Yet guess they can’t be totally to blame. After all we as a nation are prone to believe and venerate celebrity. It’s is easier for us to just "believe", than to do the hard thing like homework and due diligence. Not that homework and due diligence will now or in the future "guarantee" no investment losses, but in the case of Madoff and other similar scams enough red flags would have appeared to give the investor a clear heads up that something didn’t seem right. In which case the investor could have passed on the deal or reduced the amount invested and subject to loss. This is a textbook case where investing, based on name alone, celebrity status or the exclusive air of being among the chosen few trumped using good judgment and due diligence got the investor burned.

While I could agree that there are and always will be, many "too good to be true" investment schemes out there, there are also many "unknown" non-celebrity hard working money managers, hedge fund managers, and managed futures account managers that are turning in very good, above average returns for those investors who are savvy enough to do their homework and look for them. I also contend that for every group that lost money with Madoff and others like him, there are those wealthy and not-so-wealthy investors who continue to garner healthy "too good to be true" returns on their money in almost any economic climate. They just do so quietly.

I must state clearly here that in my opinion no investment is "risk free". The very nature of investing involves risk. Furthermore, I believe that every investor needs to evaluate their own risk tolerance as well as what "risk capital" they are willing and ready to potentially lose for the rate of return they are seeking. That said, I believe there are still plenty of opportunities for both the large wealthy and institutional type investor as well as the individual investor seeking those above average rates of returns deemed "too good to be true" by the masses and mass media reporting to them. It just takes a bit more digging and research to uncover them…and of course to thoroughly check them out.

John Dade has been involved in the Financial Markets for over a decade with experience in precious metals, private placement, managed futures and Forex. His firm specializes in introducing all levels of investors to the Forex market. For more information visit http://www.ForexGT.net.