Motif Investing Wants to Be Peter Lynch for the Facebook Age

Motif Investing

Motif Investing Wants to Be Peter Lynch for the Facebook Age

Wall Street Journal (blog)

"Cobbling together an investment portfolio on your own from stock-trading accounts can be pricey and research intensive, and a personal money manager is beyond the reach of many people. “Now more than ever, [investors] need a simple and intuitive way to ..."
http://blogs.wsj.com/digits/2012/06/04/motif-investing-wants-to-be-peter-lynch-for-the-facebook-age/

The particular Four Glowing Guidelines Of Personal Finance

A lot of productive much more advisors to steer these in mastering the abilities that may lead to accomplishment, and also I can perform our better to give you several crucial personal-finance viewpoints. It is said which a lot more a college to find out session following the examination. Exactly, the same thing pertains to cash; however, you cannot  do it over again to repair huge economic errors you have produced as time passes. So long as you tend to be lively.  You might be a person from the industry from the money-game, and also you have to know the fundamental guidelines before getting labelled through the skilled gamers.

Guideline #1: In order to make money using cash. The only method to flee being a salary servant such as the associated with you are to put apart cost savings. The net income in your cost savings may be used to improve your way of life investing, slow up the period of time unless you stop working, or perhaps permit you to have any kind of pension whatsoever. How is your day doing this much towards keeping and this to be able to make money for you personally?

Every single buck that you simply invest removes the capability to make money for you personally later.  I will be not really suggesting that you purely give up eating from dining places and also going to films; I will be suggesting that you merely apply certain good sense, such as taking a look at your current four greatest expenditures during the last couple of months and as well as strongly getting a method to decrease these.

The largest barrier for that very first principle is actually personal financial debt involving any sort (other than the usual mortgage loan in your home) or perhaps a rent involving any sort. Every single personal financial debt that you simply get drops your fortune, that may work on your side more than from your life time. Obtaining private financial debt is precisely such as locating a big pit within your pocket book. Within the money-game, a considerable exchange involving prosperity happens between the ‘Haves’ and also the ‘Have-Not' on the phrases, “I have enough money which payment. ” This is a touch: the actual “Have-Not" would be the types which else create which assertion.

Therefore, please do not actually check out, whether or not you are able to afford monthly transaction to produce a buy; spend within money following you have rescued for that product. [Everything that you simply purchase using a 0%-interest repayment timetable should be over-priced. Concealed from the public view, your current transaction agreement comes into a loan provider with an intention price, and also merchants do not try this with any building-in a satisfactory income on their own. Request merchants just how much of the product will definitely cost in case you spend completely, and also you might get a reduced cost. ]]

Guideline #2 Continue to keep your financial situation in check. The critical first step to shedding economic managed and also spiraling into  financial debt and also cash difficulties is merely not really coping with private particular predicament. Get ready for huge economic mishaps using wellness, lifestyle, impairment, and along with car insurance. Plan and save before you buy something. Develop a "balance sheet" on your own at least one time per annum to discover the way you tend to be advancing. Pay out each cost promptly, or perhaps remain in touch with the actual lender to find out what's going on and create an incomplete transaction. In case you are briefly not able to manage some of this particular, request several to assist instantly and discover somebody reliable that will try this for you personally.

The most typical way to obtain economic headaches are the strain in your lifetime. This is often a health issue (large expenditures or perhaps not able to work), a good psychological issue (divorce or perhaps lack of cherished one), or perhaps an economic issue (losing a career, reduce within spend, moving, unforeseen expenses). Whatever the cause could be; this results in three psychological difficulties: the very first is the refusal. The second reason is getting confused, and also the 3rd is actually pessimism.

Refusal leads to individuals never to open up their own postal mail and also keep on investing as always, and as well getting confused paralysis's individuals through obtaining support and including coping with the case. Like in case you simply dropped someone close, controlling your current examine guide and also having to pay expenses is not really full of your current focal points. Sadly, small levels of financial debt develop using an appeal to and also fines into  apparently insurmountable hills involving financial debt; leaving behind everyone using loathsome choices, for example, personal bankruptcy, the decreasing way of life investing, and also extra pressure that you simply took to human relationships and also function.

Guideline #3 Take notice of the particular predicament of the testers using who spent one of the most periods. Whether or not they tend to be family members, buddies, or perhaps fellow workers, these folks possess the majority of effects on economic lifestyle. Do these cards regularly the actual very first two guidelines from the cash video game? Do these cards make comparable cash when you? When the response to possibly of the people is actually “no, inch, i then suggest that you begin investing rather fewer periods along with them; that is why.

However, in case the majority of your pals make significantly less than everyone, you can develop into the actual group’s bank. Like you will fall into the actual design involving placing your own cards right down to spend on supper, and also they will almost all state they will pay out back again afterwards, however half of these certainly not performed; plus they do not brain profiting from everyone due to the fact. In the end, everyone made much more than they certainly. Additionally, everyone as well as your buddies have to pay down payment regarding leasing a home, plus they are expecting you to publish the actual inspections since you have the cash accessible, plus they tend not to.

The area that you simply reside in additionally produces economic stress to be able to break the very first 2 economic targets. Others probably turn into buddies (and I have previously reviewed this), but in reality, impact the dimensions of your house, level of the gardening, associated with home furniture, and also the scale your current TELEVISION. Therefore, spend close focus on the actual particular predicament of the neighbours -- in case you do not such as the way they tend to be calculating on with very first two guidelines, approach someplace a lot more within angle together with your economic targets. In case your friends and family, do not measure economically, discover several extra individuals to spend more time with which have economic practices which you would want to imitate and find out though.

We have buddies using a broad variety of revenue; however, it is harder  to the actual very first 2 cash guidelines once i have always been with all the two extremes through my own, personal revenue. You will simply come across it simpler to achieve the following principle once the fellow team that you simply spend time using lines up nearer to your current financial levels.

Guideline #4 Speeds up another three guidelines:
Supplement your cost savings through boosting your revenue via evolving your job. It matters little whether or not you like this; this is a way to a conclusion -- with all the conclusion getting advancement towards the actual fulfilment involving a principle #1. Raise the quantity that you simply conserve through strongly decreasing 4 of the greatest expenditures. Begin spending some time with folks, which discuss trading cash and therefore, are methodically constructing their own prosperity the actual quickest.

The particular mixture of all of those guidelines can ideally provide a next-step that you should consider nowadays to begin getting ‘wins within the money-game.

How To Construct A Savings Arrange For Your kids

Build A Savings Plan For Your Children

Among the best methods for you to give your kids is to produce a saving arrange for them when they're young and help with it gradually. As your kids grow, along with savings.

You may even consider investing for the child, so long as the investments are wise and promise a good return with time.

Making a saving and investment strategy could be good for both, you as well as your children when they develop they shall be within a solid fund throughout their college years.

Consider these options to create savings for the children:

1. Open a family saving. This is actually the simplest option accessible to you. Savings accounts you do not have a higher rate of return, but the actually provide is really a safe place that you can put your son or daughter's money with time.

• When opening a free account, see the small print about fees and minimum deposits, so that you can choose something, which works for you personally.

• The savings accounts accessible to you might actually differ from a bank to bank, so take a look at several different alternatives before you decide to decide on the very best family savings for the child.

2. Buy a CD. A CD or Certificate of Deposit is really a low risk, low return kind of investment that typically locks your funds in a position for any specific time period. The phrase length you select may impact the eye rate. You are able to select the term length, for example, 5 years or 10, 15, 20, and so forth, based on your requirements.

3. Buy a College Savings Plan. Furthermore, referred to as a 529 plan, this can be a tax-advantaged plan made to encourage saving for higher-education expenses. Growth on these accounts from interest is tax-deferred, so when needed, withdrawals may keep on being tax-free when put on specific educational expenses.

• You will find two various kinds of 529 college saving's plans. The very first is a prepaid tuition plan, and the second reason is a saving's plan. Each one of these types had different basic mechanisms for use and can be purchased in specific areas, so seek advice from a state for what works right for you.

• Prepaid tuition plans can be purchased in 13 from the 50 states and permit for pre-purchase from the child's tuition in line with the current rates. They spend once the beneficiary enters into college.

• Saving's plans base your account earnings available on the market performance of whatever underlying investments, you will find, for example, mutual funds, for instance. These plans are administered through the state and obtainable in 49 from the 50 states and Washington D. C.

4. Start using a custodial account. This can be a family savings or certificate account in a minor's name. The dividends are registered underneath the social security number from the child, though your name is going to be listed since the custodian for your account.

• With this kind of account, you are able to transfer funds towards the minor while still managing the account. When the funds are deposited, they end up being the property from the minor and may only be taken to benefit the minor.

• Once the minor reaches legal age, funds are turned to her or him.

They are  just some of the choices accessible to you for getting yourself ready for your son or daughter's future. Considering the expenses related to raising children and sending her or him to college, it seems sensible to place a strategy into place as early as you can.

Five Upgrades Your Renters Really Want To Consider

Because an owner, you must protect your investment earnings to attract and retain high-quality, long-term tenants. To do this, it is important to ensure that the property is updated with all, or at least some of the amenity tenants wish to have in their homes.

The renovation, the focus of these most-desired home features that will help attract and retain quality tenants:

1. Wood Flooring.

If you have quality wood flooring in your rental property, you're already ahead of the game simply because wood floors make such a big impact.

Of course, authentic wood flooring would be the ideal choice. This can cost between $3.00 per sq. ft. for maple flooring up to $8.50 per sq. ft. for Brazilian wood.

Laminate plank flooring gives the same look for a fraction of the cost. It can cost as little as $0.89 per sq. ft. from flooring outlets such as www.lumberliquidators.com or www.floormaxdirect.com.

2. Updated kitchen and bathroom.

Every room in the house is important, but an updated kitchen and bathroom will make renters go gaga over your unit! Indulge in a tiled backsplash, and updated countertops and cabinets and you're sure to wow prospective renters.

A tiled backsplash can cost anywhere from $250 to over $1,000 depending on the type of tile you choose. For an inexpensive fix, choose white subway tile - a tried and true favorite amongst renters. Or if your budget allows, spring for a mosaic glass tile backsplash.

Placing granite in a rental may be a waste. Unless you're charging above market rent, you're unlikely to make your money back in a timely fashion. However, you can give your renters the feel of granite by using a granite countertop paint kit or laminate from Lowes.

3. Spring for molding.

Molding can make any home seem luxurious and finely detailed. And while molding can cost quite a bit of money if you're willing to install the molding yourself you'll be able to save quite a bit.

When in doubt, always choose crown molding. Other popular molding options are wainscoting and chair rail. If possible, also add molding to your doorways and over windows to create a cohesive look.

If you're on a tight budget, opt for faux crown molding. The material is often plastic or faux wood, but the effect is still much the same. Chances are your renters aren't going to climb a ladder just to touch the crown molding.

4. Spacious Closets.

In terms of storage, renters are no different than homebuyers - they always need more storage space. If you can, move a wall back a few feet to make a walk-in closet in the bedroom. Or, at the very least, install a shelving system in the bedroom closets in order to make the closet space clearly defined and usable.

You can create your own closet system by simply installing a double-up adjustable closet rod (creates an adjustable 2nd rod) for about $10. Installing several shelves and a shoe rack will also do wonders for storage space.

All in all, this project should cost you less than $100 and the response you'll receive from renters will be worth the minor investment.

5. Get rid of the brass.

Brass finishes scream "80s' and unattended" to renters. It shows that the property has not been brought into the modern times, and therefore not worth paying premium rent to live in.

Replace brass doorknockers, doorknobs, lighting fixtures, and cabinet handles/knobs with pewter or brushed nickel finishes. It's such a small update, but it makes a big difference in how the unit is perceived by prospective tenants.

Only one or two above updates immediately increased the esthetic of the rental property. However, if the updates are implemented together, the results are astronomical: I not merely will that increase the appeal of the tenants, but also increases the value of the property.

3 safe investments moderate to high yield

The investment can be a little scary for most people - especially if your income is limited durable. As you know, all investments have an element of risk, but it is prudent to seek opportunities to minimize a risk while obtaining a reasonable return.

The real key to making a safe investment is by investing in a time of a testing " top dog" , where the ROI is moderate to high.

Consider these types of investments for your portfolio:

1.Bonds. Bonds are a safer investment than stocks. This is because a stock is an investment without a guaranteed return while a bond is similar to a loan and has a promised return, plus interest.

• There is a difference between promised and guaranteed. No investment can be guaranteed but with bonds, you know what to expect. Look for investments with a low probability of default (the chance that the company would close its doors or file bankruptcy).


• Bonds are generally paid back to you by the end of the year. However, the terms can be different for each agreement.


• The larger the bond, the larger the profit. But remember, you're always going to make more money on a higher interest bond. So, you may be better off investing your funds in one high-interest bond rather than two lower interest bonds.

2.Stocks. As mentioned, stocks can be risky but, in order to earn a high return, some level of risk must be involved. You can minimize your risks by choosing one of the safer stocks (such as constantly thriving defensive stocks) to invest in.

·    Companies, such as Pepsi (PEP), McDonalds (MCD), The Procter & Gamble Company (PG), Johnson & Johnson (JNJ) and Wal-Mart Stores Inc. (WMT) are some of the safer choices in the stock market. These companies also place a high value on shareholder satisfaction.

• Investing in defensive stocks, which are reliable and have proven their longevity and profitability, allows you a small blanket of security that you wouldn't get investing in the newest, hottest companies, which can tank at any moment.


• Keep in mind, when investing in stocks, there are no 100% safe choices, but you can minimize your risk by buying stocks of a time-tested and profitable company. Or spread out your risk by investing in profitable, long-standing mutual funds where your return is based on a portion of a whole portfolio of stocks.


• Stocks are a better choice for your long-term financial planning goals. If you're a cautious investor, look for a long-standing solid company to invest in.

3.    Multi-family real estate. Now is a great time to invest in a multi-family dwelling. Due to the housing meltdown, there are many multi-family units priced to move quickly.

• A multi-family dwelling is a safer investment than a single-family home because you're able to retain more tenants. Therefore, if one tenant decides to leave at the end of their lease, you still have other tenants set up in other units that are still generating income.


• Multi-family dwellings are more profitable than single-family homes. For example, if you have three 2-bedroom units renting for $700 each per month, you're bringing in $2,100 per month. As opposed to the one, smaller income from just one tenant.

Develop an investment strategy requires patience and a honest assessment of your risk appetite. Real Estate Investing has always been a popular investment. Owning a multi-unit occupancy rental property guarantees a monthly return, as long as you budget for maintenance and other incidental expenses.

The bonds are safe but have the lowest performance. However, some hidden gems on the market offer above the high-interest rate. Stocks offer higher performance, but performance is not guaranteed and faces a higher risk.

A smart strategy is to diversify your risk and return through a diversified portfolio of investments, some with less risk and others with moderate risk. Only go after high-risk investments if you have money to burn! This strategy allows you to enjoy consistently positive returns over the years.

REITs are a good investment for you?

Many people dream of investing in the large apartment, buildings. Shopping centers, office and commercial - yet few have the necessary resources and expertise for such investments. Real Estate Investment Trusts (REIT), one of the ways that ordinary people can invest in the large and expensive real estate.

The REIT invests in income producing properties. These properties can be condominiums, commercial properties. Strip shopping centers, hospitals, housing, and so on. In practical terms, the REIT is similar to unit trust investments are pooled, and the REIT buys and manages income-generating properties.

How Do You Make Money From REITs?

REITs are essentially landlords. The revenue consists of all the rents collected from the tenants. The expenses include property management, property tax, utilities, mortgage payments, and more. The profit is what's left over after all the bills are paid.

This profit is given back to investors in the form of dividends.

The great news is that REITs have a powerful incentive to distribute a minimum of 90% of the taxable income to investors; REITs do not have to pay corporate income tax if they meet the 90% minimum payout.

There are 3 main types of REITs:

1. Equity REIT.

The most common type is an equity REIT. These companies invest in income producing property that the REIT will also manage. When REIT's are considered as investments, this is the type that is typically being referred to.

2. Mortgage REIT.

These REITs invest in outstanding mortgages and also make loans backed by real estate. While the underlying property values are important for both equity and mortgage REITs, mortgage REITs values are also very dependent on interest rates. This type of REIT accounts for less than 10% of all REITs operating in the United States.

3. Hybrid REIT.

The hybrid REIT is a combination of an equity REIT and mortgage REIT. So this type invests in both mortgages and actual real estate assets. The hybrid REIT potentially has the greatest diversification.

Some equity and hybrid REITs will invest in numerous properties of varying size and function. This diversification should provide some stability relative to the change in value of the individual properties. What can affect values? Vacancies, non-payment of rent, a general downturn of the local market, and interest rates are a few of the things that can affect the values.

How Do You Evaluate an REIT as an Investment?

As an investor, you can buy and sell your shares in an REIT just as you could with any other stock. Be sure you educate yourself in the proper way to evaluate an REIT. It is not in the business of manufacturing anything and it is not providing a service. The common methods of evaluating stocks may not apply in the same way.

Most REITs specialize in a single type of property, like apartments, retail space, or commercial office space. Many REITs limit themselves to a geographical area as well; this can be an important consideration when attempting to determine which REIT is best for you.

A great REIT will manage its properties to get the best possible income growth and then reinvest that money in properties that generate an even greater return than the existing properties. Those are the two things an equity REIT must do to excel.

A good measure for evaluating REITs is "funds from operations" (FFO).

This discounts gains and losses from the sale of assets and adds back depreciation. A long-term FFO growth is generally a good indicator of the financial health of an REIT.

While FFO gives an indication of the strength of an REIT, it is not the only predictor of an REIT's value. REITs own a lot of assets, and the value of those assets has the largest impact on the current asking price of an REIT's shares. 

The REIT may be the investment vehicle, which was looking to expand your portfolio. As always, be sure to educate yourself, or seek advice from a financial expert before investing your hard-earned no money for new investment.

Make your money work for you with these Easy, liquid investments

A myriad of savings and investment options available today is complex and confusing. If you are not familiar with the investment strategy, it is not easy to choose the options that are the best value for your money.

The bottom side of investing money that you can lose money when they were invested. For example, if you invest in real estate, you need to sell or lease the property to see money from it.

On the other hand, if you invested in liquid investments, easier access to money if need be. A liquid investment, then the best of both worlds: the search for interest money, and you still can get it if need be.

Try these investment options that are both easy and liquid - you can invest in them right at your own bank and you have fast access to your money should the need arise:

1. Certificate of deposit.

A certificate of deposit is one of the simplest investment options with decent returns on your money.

• A certificate of deposit (CD) is also referred to as a time deposit, which means your money has to stay invested for anywhere from 3 months up to 5 years for the stated return.


• If you need your money for a true emergency, you can cancel the CD, although you'll forfeit some, if not all, of your return on it. A good option is to go with the short, 3 month CDs until your finances are stable and you have some additional money put away.


• Interest rates are higher than a regular savings account.


• Your savings are insured at all times.


• Your interest rates are set to increase the longer you have your money saved.

2. Money market savings account.

Having a money market savings account is also a great option for investing and making the most from your money. With this type of account, your interest rates are much higher than with a standard savings account.

• One added benefit of such an account is that you would be limited to the number of withdrawals each month as a technique to safeguard your investments so you'll make the most on your money.


• Another benefit is that your investment of $250,000 or less is insured.

3. Money market mutual fund.

Money market mutual funds are a little riskier than CDs and money market savings accounts; however, with greater risk comes the opportunity for greater returns. These funds allow short-term security investment. However, the fact that you are investing in short-term securities means that your investment would be exposed to less risk.

• Tip: To get the most out of it, try to make your investment principal as high as possible because this is when the truly good returns come into play.

4. Tax-exempt money market.

A tax-exempt money market option is a type of money market fund, the difference is that it's liquid and allows investment in tax-exempt securities. You don't need to be as concerned with investing the highest amount possible because your returns will be tax-free and of more financial worth to you.

You can expect that the high yield as experienced investors only adding a little common sense to the decisions. Learn about the less-liquid investments, and once you build up that fund, where money works for you. You will have an easy transition to higher earnings portfolio.

3 Offbeat Investments must be taken into account

When most people think of investing in real estate, homes, mini-malls or apartment buildings come to mind first. However, this is just the tip of the iceberg for real estate investment. Offbeat consider the following real estate investment opportunities. These investments can have a significant impact over the long term, and very well change your financial future.

1. Recreational Vehicles (RV).

Believe it or not, RV rentals and sales are a very big market. With baby boomers leaning into retirement and young families seeking a way to lessen their vacation costs, many people are willing to buy or rent an RV.

If you're hoping to purchase an RV to save money on your family vacations, keep the RV until it makes sense to sell it. Make routine cosmetic updates to the RV throughout the years to match the expectations of buyers.

Consider renting out the RV for a profit. The RV rental market is hungry with renters but is much underserved. You can easily rent out class C motor home for 7-nights for a minimum of $125 per night! If you're fully booked every week out of the year, you can earn $46,000 in just one year!

For class A RV you can charge in upwards of $200 per night, or $1,400 for a 7-day week - which equates to $73,000 over the course of a fully booked year. Pop-up campers can be rented for as much as $75 per night - or just over $27,000 for a fully booked year.

Even if you're only able to rent out your RV for two weeks out of the month for $125 per night, you're able to earn $23,000 per year!

2. Self-Storage.

Self-storage is a big industry. The shaky state of the economy may be partially to blame as the number of multi-generation homes and families downsizing their living quarters are increasing.

The Self Storage Association reports that one in ten families rent out-of-home storage space. Typically, units rent between $50 per month for a small unit to over $200 for a sizeable storage unit.

The cost of purchasing a self-storage facility varies widely. It can cost as little as $200,000 or as much as $3,000,000 depending on the size, location and demand for the service in the area.

Keep in mind, aside from the mortgage, there is still overhead. Utilities must be operating in order to keep the storage facility at an acceptable temperature; this is to avoid ruined personal property. Also, employees might be necessary, as well as a security system. But as a whole, the investment generates fairly passive income.

3. Online real estate.

Online real estate, otherwise known as websites, requires very little investment and can typically generate a good ROI over time. Traditionally real estate is thought of as tangible, but don't disregard the earning power of online property. When you consider that Candy.com sold for over 5 million dollars, online real estate has the potential for astronomical returns.

Approximate startup costs are as follows: $10 for a domain name, $0-75 for a standard website template to over $750 for a unique website design, and content creation starting at around $15 for a quality article.

The key to making money online is having high quality and a high quantity of content in addition to money making streams like marketing other company's products, on-site advertising, or product sales.

There you have it - three markets where competition isn't very fierce, and the bar to entry is relatively low. Investing in any of the three offbeat investments is mentioned, you have the opportunity to maximize their investment dollars. And over time, you may be able to invest in a full-fledged business.