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Income Investments – 3 Alternative Investments That Generate Income 0

Posted on May 20, 2012 by fxtrader

Investors seeking income can no longer rely on share dividends, and saving deposit accounts often generate a negative return when adjusted for inflation. Whilst this scenario looks set to continue for the foreseeable future, we must look elsewhere for our annual pay-outs.

Agriculture Investments

At the most basic level, agriculture investments based on the acquisition of agricultural property assets generate income, either from leased payments from tenant farmers, or shared revenue from harvests when farmed as part of a contract farming agreements (CFA).

There are a number of options for investors to consider, allowing smaller investors to take a direct stake in productive farmland and benefitting from a share of the annual income as well as potential capital growth as land values rise over time.

Such options exist in Latin America, Australia and Africa, and investors should be encouraged to seek independent advice as to the suitability of any such scheme to ensure suitability for the investors specific circumstances and attitude to risk.

Renewable Energy Investments

As the global population grows demanding more energy, and natural resources such as coal oil and gas continue to diminish, the world turns to renewable sources capable of supply energy in perpetuity without causing damage to the environment and delicate global ecosystem.

Around the world, governments incentivise investment in renewable energy technologies such as wind, solar, tidal, geo thermal, waste to energy and anaerobic digestion through feed-in-tariffs, where each unit of energy fed into the national grid is paid for at a set rate which is invariably linked to inflation.

This present those looking for income capture annual revenue that shares no correlation with traditional income investment assets or financial market fundamentals. Investors may choose to establish solar panels or wind turbines, collecting feed in tariffs from energy generated. Other may choose to grow renewable energy crops for the production of biofuels or for use as biomass fuel.

Renewable energy investments then are ideal non-correlated income investment tools, replacing lost dividend or interest income and offering to hedge that income stream against the effects of inflation.

Forestry investments

Forestry investments have long been used as a tool to diversify and optimise investment portfolios by institutional investors, and now a range of options exist for smaller investors to purchase plots within larger, professionally managed timber plantations.

Trees continue to grow every year so forestry investment can grow even when other assets fall in value. Investors choose forestry to ensure at least a part of their portfolio retains value and even grow every year, and as timber prices also increase, forestry investment offer a double edged sword of capital growth.

Faster growing timber species such as bamboo (which is technically as grass), offer shorter term income opportunities as they can grow into harvestable timber within a few years, whilst other commercial species like teak take up to 25 to 30 years to reach maturity.

This means fast growing timber species make for ideal income investments, also providing coverage of capital being backed by physical property assets.

Summary

Whilst a range of alternative investment options exist, these esoteric investment options are not suitable for every investor. All of the above options lack any kind of immediate liquidity, so potential investors must be prepared to tie up their funds for at least five years.

Liquidity aside, investor must also work with an advisor with experience in these sectors, preferably being able to demonstrate that they have delivered and exited performing investment previously.

David garner is a Partner at DGC Asset Management an alternative investment boutique specialising in identifying and delivering asset-backed, alternative property investment opportunities in the agriculture, timber and renewable energy sectors.

Article Source:
http://EzineArticles.com/?expert=David_D_Garner


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    6 Key Personal Traits of a Successful Investor 0

    Posted on May 19, 2012 by fxtrader

    Key Trait 1 Be Persistent, And Never Give up

    As you begin your investment career and try different things, you are going to experience some disappointments and some set backs. This is a given so expect it to happen at some point. Try to understand that this is normal and keep working hard to improve your knowledge and your skills. Never give up on your dream to make passive residual income with investing.

    Key Trait 2 Being Patient

    This is a lot easier said than done. A famous and true saying I once heard is “there is always a deal of a lifetime waiting around the corner.” Never feel rushed into making a decision because you feel that you will “miss out” if you don’t act quickly. Acting quickly without thinking is a lot like playing Russian Roulette. You might get lucky, but it will eventually catch up to you.

    Key Trait 3 Have a written plan for success

    An unwritten plan is hard to follow. Set some short, mid, and long-term goals. By setting goals you can track your progress and see how you are doing against your goals. By writing down your goals you will also be able to visualize it and see whether or not your goals are realistic.

    A long-term goal could be…..”make $5,000 passive residual income per month with internet marketing”

    A mid-term goal could be…”make my first sale in internet marketing”

    A short-time goal could be…”build my first website and sign up for Google AdWords”

    Key Trait 4 Research before you make a decision

    Never invest your hard-earned cash without doing the proper research. Following this simple step will greatly improve your chances of success and minimize your odds of failure. Knowledge is power and is abundant, all it requires is some effort on your part to get it.

    Take the extra time to understand whatever investment strategy you might be interested in. Learn to identify exit and entry points and how and when to cut your losses. Also, learn about the typical returns for that particular strategy to see if it lines up with your goals.

    Key Trait 5 Learn from your mistakes

    This is how you will mature from an investor and this is why it helps to have a written plan to document your activity. Look for trends and establish guidelines for yourself to avoid in the future. Some guidelines I have for myself in stock market investing are

    - Avoid Healthcare stocks (these stocks can lose their ENTIRE value in one day if one of their key drugs does not perform well. Don’t believe me? I lost $14,842 in one hour because of this. A VALUABLE lesson)

    - Avoid stocks that are above $50 per share (my options are limited with stocks above $50)

    - Cut losses at 10% (If I have lost 10% of my money on a stock then I will sell my stocks)

    Key Trait 6 See the big picture

    In the game of successful investing, understand that it is a long journey and not a sprint to the finish line.

    If you learn to see the big picture in everything you will learn to appreciate the little setbacks and disappointments for what they are….hurdles for you to step over in your lifelong journey to success. Also, without some mistakes and disappointments you will never grow as an investor, and as a person.

    Good Luck!

    Dale Poyser has been investing for over a decade and has done meticulous research on many passive residual income strategies that can add low risk residual streams of income to your life.

    Not only does Dale personally practice the methods he writes about, he has also coached many others in these methods to show how easy it is to make money with passive residual streams of income. You can read more about Dale’s strategies here

    Article Source:
    http://EzineArticles.com/?expert=Dale_Poyser


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      The Best Types of Investments That Give a Fast Return 0

      Posted on May 18, 2012 by fxtrader

      Passive Income Idea 1 Buying Call Options

      This strategy actually works best if you are in and out of a position within a short time frame, as time is working against you.

      If you think that a stock is going to make a big move to the upside but you don’t have a lot of money, this is a strategy that uses significant leverage to give you gains in the triple digits. If you are buying call options on volatile stocks and your timing is correct, you can easily double or triple your money in one day.

      I would suggest you paper trade first to get familiar with how this works and to see the numbers for yourself. This method DOES work. I routinely do this strategy using about $1,000 and double my money within an hour of the market opening.

      Yep, I consistently make 100% on my money (in an hour of trading) with this strategy. The key is to choose the right stock.

      Passive Income Idea 2 Buying Put Options

      This is basically the exact opposite of buying a call option on a stock. If you think a company’s stock price is going to tank or go down in value, you can buy some put options on that stock.

      This limited risk, huge reward strategy can be very lucrative and the returns (like call option buying) are very quick if you time it right.

      To test my theory I did some research and picked two stocks.I was bullish on one stock and bearish on the other stock. I bought call options on the bullish stock and bought put options on the bearish stock. When the market opened, the bullish stock went up and the bearish stock went down.

      Both my put options and call options doubled in value in less than an hour.

      Passive Income Idea 3 Mystery Shopping

      If you don’t want to speculate in the stock market you can give mystery shopping a try. With this strategy you get paid to shop and report on your experience.

      In some cases you will be paid a commission to go to a store and inquire about a product. In other cases you will be asked to purchase something and then you will be reimbursed for what you bought….PLUS you will be allowed to keep what you bought.

      The more you do this the more lucrative the shopping assignments get. Some beginning assignments are as high as $80. Commissions for mystery shop assignments are usually paid out monthly.

      There is no fee to become a mystery shopper.

      Passive Income Idea 4 Write Articles

      There are many outlets, and I do mean MANY outlets where you can get paid to write articles. Some examples would be Yahoo’s Associated Content, Wealthy Affiliate’s Job board, and you could also partner up with some internet marketers who need some original articles written.

      You don’t need to be VERY educated to make money from writing articles. The only requirement is that your article is “ORIGINAL”, has “400 words or more”, and is informative…although that last part tends to be optional.

      You can get paid as much as $30 to write one article, although it is more common to get around $15 per article.

      You can find some of these services for free or you can join an internet marketing company and promote yourself as an article writer for hire.

      Payments would be 30days or less.

      Dale Poyser has been investing for over a decade and has done meticulous research on many passive residual income strategies that can add low risk residual streams of income to your life.

      Not only does Dale personally practice the methods he writes about, he has also coached many others in these methods to show how easy it is to make money with passive residual streams of income. You can read more about Dale’s strategies here

      Article Source:
      http://EzineArticles.com/?expert=Dale_Poyser


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        I Have 100,000 Dollars in Savings – What Should I Do With It? 0

        Posted on May 17, 2012 by fxtrader

        Savings Account

        It is always a good idea to have up to 6months of living expenses in a liquid account that can be accessed within thirty days without penalty or hassle. Savings account provides a low rate of return, but you have quick access to your cash.

        Traditional “Self-Directed” IRA

        This would be a good place to start and there are many benefits to having an IRA. The yearly contributions you make to an IRA are tax deductible against your income. The deduction alone is a good way to save money on your taxes and a great way to discipline yourself to put money aside for the future.

        ROTH IRA

        Even better than a traditional IRA, is the ROTH IRA. You should also open up a ROTH IRA. Your contributions are with after tax dollars and when you are eligible to make withdrawals, your profits are tax free! For example if you invested $20,000 and you made $1 million profit, that $1 million can be pulled out tax free when you’re eligible.

        Rental Property

        Rental property will always be a good idea. Yes you will be liable for repairs but overall and long term this is a GREAT way to build wealth.

        You can get started on a variety of strategies with just $5,000 or so. Do some research on different strategies (like the additional passive income strategies shown below) and pick one that suits your personality No Need to pump all $100,000 into one strategy.

        Consider also:

        Selling Stock options – I would not suggest buying options if you don’t know what you are doing

        Flipping Websites – buy websites, fix em up then sell for a profit

        Tax Lien investing – Great way to earn up 50% per year on your money.

        Tax Deed Investing – buy houses at heavily discounted prices (pennies on the dollar in MOST cases)

        Flipping properties – buy houses, fix them up, then sell them for a profit.

        Do NOT get a financial planner – They seem to be out for their own interests and whatever they tell you, you can learn for free.

        Do NOT buy Mutual Funds – Mutual fund managers typically lag the market every year so I would not recommend that. There are multiple studies that show that most mutual fund managers don’t consistently beat the market.

        Fund Managers get paid millions of dollars and are no better at picking stocks that you or me. It is a known fact that no one can predict what the stock market will do tomorrow, no one.

        Dale Poyser has been investing for over a decade and has done meticulous research on many passive residual income strategies that can add low risk residual streams of income to your life.

        Not only does Dale personally practice the methods he writes about, he has also coached many others in these methods to show how easy it is to make money with passive residual streams of income. You can read more about Dale’s strategies here

        Article Source:
        http://EzineArticles.com/?expert=Dale_Poyser


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          How Much Money to Invest 0

          Posted on May 16, 2012 by fxtrader

          Many new investors make the mistake of thinking that they should invest all or a large percentage of their savings. This is a common misconception that new investors should avoid falling under. To invest wisely you should determine how much you can really afford to put into your investments as well as clearly map out what your financial goals are for the short term as well as long term. The remainder of this article provides a blueprint for determining how much you can actually afford to spend on investments.

          If you are planning on using your savings to begin making investments you should proceed carefully. Leave at least six months of living expenses in your savings account and do not use this money to make investments. Avoid borrowing money for investment and do not dip into your emergency savings fund to make any investment. Leave yourself a cushion to fall back on in case there are fluctuations in whatever market you may be investing in.

          Depending on your individual financial situation you may find that you do not have at least six months of living expenses in savings. If this is the case you may wish to reconsider investing until you do so. Do not be discouraged if the amount that you have to invest is less than you wish after deducting your six month cushion, quite often investments can be made for much less than you expect. Speak to your financial adviser about options available to you for low cost investments. If you have a surplus of capital after deducting six months of expenses then calculate those funds and set them aside for investment purposes.

          Now you can be begin to think about the purpose of your investments. Are they short term or long term, do you seek capital growth or a high rate of return? Developing an investment plan early on can save you hassles later on. Spend time outlining a budget for you investments as well as clear ideas of goals as well as time frames for reaching those investment goals. Sort your plan by month year and longer terms if this is part of your overall goal.

          Start talking to a qualified and professional financial planner or investment adviser about the option available to you and develop a budget for your investments. There are a wide range of investment options available today and each carry their own individual risks, rewards, funding requirements, legal and technical issues. Discuss these issues with your financial planner.

          Investing doesn’t need to be difficult. To quickly learn more about what to invest in in today’s market including shares and property investing visit Investing Australia

          Article Source:
          http://EzineArticles.com/?expert=Jeffry_Palmer


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            Agriculture Investments – The Potential and Performance of Equity and Real-Asset Investments 0

            Posted on May 15, 2012 by fxtrader

            The investment performance of the agriculture sector can be monitored via a number of devices and measures that track the performance of traditional investment assets such as quoted equities, as well as a range of measures that reflect price movements in alternative investment assets within the agriculture space such as farmland.

            In reality, the agriculture sector as a whole relies on a combination of demand for its products, weighed against agricultural productivity. When demand for food, livestock feed and biofuels is high then soft-commodity prices rise, as is also the case when poor productivity creates the same widening of the gap between supply and demand. On the other hand, if demand falls back, or bumper harvests create an oversupply of produce, prices fall.

            If one is able to gain an understanding of current productivity and demand dynamics, then one is best able to predict the true performance of the sector as a whole.

            The performance of agricultural equities alone – as measured by agricultural indices – does not truly reflect the state of fundamentals that support the sector. In many cases, individual issues that affect specific companies can either boost or lessen demand for the stock resulting in movement in the stock price regardless of the performance of the sector as a whole.

            Indeed, many consider that the most efficient method of capturing financial gains resultant of the boom in demand for commodities from a population that is growing exponentially is to acquire farmland as an investment. The value of farmland is driven at the most fundamental level by the net revenue earning capability of the individual asset in question. As an example; a one hectare lot capable of generating a net annual income after costs of £1,000, will be worth more to a Farmer than a similar plot capable of earning only £500.

            Farmland values are recorded by different indices in different regions. In the U.S. the National Council of Real Estate Investment Fiduciaries (NCREIF) records the quarterly investment performance of farmland. In the UK the Land Registry offers the most accurate picture, although anecdotal evidence from estate agents such as Knight Frank offer some insight, although on a very broad, national basis.

            Agricultural equity indices include Standard and Poors GSCI Agriculture Index; S-Network ITG Agriculture Index; Dow Jones-UBS Commodity Index and Société Générale Index Global Agriculture, all of which provide a different viewpoint as they measure a different set of equities or commodities and use different weightings.

            Overall, agriculture investments can best be assessed individually, and conclusions drawn as to the potential for each project as a standalone entity, be it an equity investments or acquisition of tangible assets. Investing in any business should not be simply because it operates in a particular sector, farmland should not just be bought simply for its agricultural status, and alternative investments are not going to be profitable just because they are alternative.

            DGC Asset Management are an alternative investment consultancy providing Investors with research, due diligence and select opportunities to participate in the acquisition and development of productive, income producing agricultural property and renewable energy assets.

            Article Source:
            http://EzineArticles.com/?expert=David_D_Garner


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