Investment

Top Risks for Investing in Oil and Natural Gas

May 11, 2012
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Top Risks for Investing in Oil and Natural Gas

The following is a guest post from  Lynn Jackson Every investment opportunity has its share of risks. Whether you’re putting your money in real estate, buying and selling gold, or trading stocks, you are bound to face, not only general management risks, but industry-specific threats. In the following post, we will take a look at investing in oil and natural gas, to see what you are putting on the line while investing in this specific industry. Politics If you are at all interested in oil and natural gas, you’ve probably read quite a bit about government regulations on this investing industry. All oil and natural gas companies are limited by governmental regulations, concerning the locations, times, and processes for oil and gas extractions. These regulations typically vary from state to state and are known for increasing considerably with governing oil and natural gas deposits outside of the country. In an ideal investing world, oil and natural gas companies would mine exclusively from politically stable nations, which would adhere to long-term leases. Unfortunately, oil and gas is a limited resource, and those looking to invest in either or both must often deal with the politics of less structured nations. This is where the bulk of politic risk stems from, as these unstable

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What If You Contribute Too Much To Your Roth IRA?

April 27, 2012
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What happens if you contribute too much to your Roth IRA? Believe it or not, it’s much easier to do than you might think. How? Suppose you max out your Roth IRA contribution at the beginning of the year, then as the year progresses, you receive a raise, a bonus, or perhaps your spouse goes from unemployed to employed. All of these events could increase your Modified Adjustable Gross Income (MAGI). If changes in your MAGI and what you earn are substantial, it’s quite possible that your maximum Roth IRA contribution limit for the year will decrease – maybe even to zero. Under such circumstances, if you’ve already made a Roth IRA contribution assuming a certain contribution limit and that limit subsequently decreases, then the result is an excess Roth IRA contribution. For instance, a few years ago, I inadvertently contributed too much to my Roth IRA. How? At the beginning of the year, I set up an automatic monthly withdrawal with my discount broker. Each month, the same set amount of money would be directly deposited into my Roth IRA from my bank account. This worked well for several months, then I came into a small windfall of cash.

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Roth IRAs vs. Traditional IRAs: For Filing Taxes and Your Retirement

March 22, 2012
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This is a guest post from Kellie Englehardt, she sent me this post yesterday and asked if I accepted guest posts. After reading this and gauging its usefulness for your tax return, I decided to publish immediately.  I sincerely hope at least some of my readers would definitely find it useful. usually I do not post on Thursdays, making an exception today. Enjoy and learn the following. This year, taxes are due April 17, less than a month away. With the deadline quickly approaching, many people are wondering how they can cut their tax bill. One thing you can do, according to the IRS, is contribute to an IRA. A contribution will not only reduce your taxable income, but it will generate retirement savings as well. It’s a win-win situation. The great thing about IRAs is that if you contribute before the tax filing deadline, the contribution counts toward your taxes. But that is no secret. In fact, Fidelity Investments estimates that 50 percent of all IRA contributions are made within 28 days of the tax filing deadline. “March is an excellent time to contribute to an IRA,” said Derek Overstreet, president of New Millennium Insurance Services in South Jordan, Utah. “Would

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The Better Investment – Gold or Silver?

March 14, 2012
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The Better Investment – Gold or Silver?

According to research in 2010, precious metals were some of the most lucrative assets over the previous five years – earning investors an impressive 42% return from their 2010 precious metal investments. Despite these optimistic numbers, investors should research the current economy and metals market before diving into investments. The value of precious metals tends to fluctuate over time, so taking the time to consider current market trends is crucial to achieving the highest rates of returns. Since metal value correlates inversely with economic decline, precious metal prices are currently higher than ever. As of late, a big question on precious metal collectors’ and investors’ minds is this; what’s the better investment, gold or silver? Its a decision, Gold Vs. Silver. Gold has traditionally been considered the better investment, as it is the only precious metal to have consistently increased in price every year for the past ten years. Is silver a good investment? silver began to challenge gold by tripling in value during the short span of June 2009 to April 2011 to its all time high of $49.82 per ounce. Before you start rummaging through your silverware drawer for potential investments, be wary that silver has fallen to $35 per ounce since its high in April. Gold

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There is No Income Limit for Roth IRA Conversion As Such

March 12, 2012
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Do you earn too much to make a Roth IRA contribution? Are you bogged down by the Roth IRA limit for your income? The Roth IRA is a powerful retirement savings vehicle. Unfortunately, the IRS prohibits large number of individuals and married couples from making Roth IRA contributions because (in the eyes of the federal government at least) they earn too much income. If this describes your situation, you have been barred from making Roth IRA contributions (and probably Roth IRA conversions as well) for more than a decade. And while the Roth IRA income limits are still in effect, the restriction on your ability to make a Roth IRA contribution is not. The Roth IRA Income Limits Under the current Roth IRA rules, you’re prohibited from contributing a single penny to your Roth IRA if: You’re married, file a joint return, and earn more than $183,000 You’re married, file separately, and earn more than $100,000 You’re single, head of household, or married filing separately (and did not live with your spouse), and earn more than $125,000 If you fall into any of these categories, you’re out of luck, right? Wrong. You were out of luck until two years ago

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Fipath Express Rollover Center Product Review

March 6, 2012
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Fipath Express Rollover Center Product Review

IRA and 401(k) both are retirement funds that ensure you have sufficient money when you no longer work. I though this would be a good followup post after yesterday’s post on IRA Vs. 401 (k). Do you know that in 2010, 11 Million 401 (k) to IRA rollover conversions happened? We do not have data published yet for 2011. But, the highlight is that almost twice the number of people should have rolled over had there been enough help and advice available at their finger tips. Financial Literacy in this country is still not enough. There is a lack of concerted effort in educating people on managing personal finances. Recently I have come across FiPath’s Express Rollover Recommendation tool, while researching for IRA Vs 401(k) roll over options. This is perhaps the only tool/help/guide available in the marketplace today that can guide you in your IRA rollover process. If money is sitting in your previous employer’s 401 (k), you would do a ton of good to get it rolled over to IRA, as you will have a freedom of choice. You can micro manage your retirement fund the way you think best suited to you. You will not be limited to a few target date funds, and you will also lower your overall investment costs. Reasons

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IRA vs 401(k), Should You Rollover?

March 5, 2012
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IRA vs 401(k), Should You Rollover?

IRA vs. 401 (k) , should I rollover my previous employer’s 401 (k)? I am contributing to 401(k) plans up to 5% of my salary to get full employer match. I am also contributing $5,000 annually to an IRA account. If I leave this job and join another one I’ll have another 401 (k) account from my new employer. From TD Ameritrade to ETrade, all IRA administrators run incentive programs to encourage people to roll over. I am trying to find an answer to the question: Should I leave my money where it is or should I roll it over to Individual Retirement Account? While there are benefits and drawbacks to both options. IRA seems more flexible, where as, 401(k) is easier to tap in to during an emergency. But that’s not all about the differences. Let’s do some homework before making a rollover decision. Before going on to the comparison, let’s be clear that this article is not about where you should put more money from your paycheck. You should contribute to 401 (k) to take 100% of employer match. Another point to consider, you can’t contribute more than $5,000 a year in an IRA (including Roth IRA), where as

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What is IRA, A Beginners Guide to Traditional IRA

February 8, 2012
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This write-up is for the beginners and the young adults. This is also for the people who just arrived from over seas to work in United States. It took me 3 year upon arrival in this country, to understand IRA concept fully, or understand up to an extent where I can take informed decisions. The best place to learn about IRA is from the horse’s mouth, that is from IRS website. But, if you are a beginner, you probably are facing the same issue I faced, lack of proper explanation in terms of a novice’s language on the IRS site. When I read it for first time, it was in Greek and Latin! Here’s is my attempt to make Traditional IRAs simpler for you. Now please concentrate on the following sentences. Definition: The individual retirement account is a personal, tax-deferred account for people who are employed, and their spouses. You can set up an IRA at almost any bank, brokerage, insurance company, or mutual fund. There are a wide variety of investment options to choose from, and your earnings are untaxed until they are paid out of the account.   What Is IRA? Beyond definition IRA stands for Individual Retirement Account.

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A Beginners Guide to Commodity Trading

December 9, 2011
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This, I think, is a fitting followup post after the post on Spread betting. I think commodity trades offer an alternate approach to trade your money for gains. A stock price fluctuate depending on the economy same is the case with commodities. Other important factors in commodity price fluctuation are weather, demand, supply etc. What is commodity trading Let’s begin with the definition of commodities trading. It’s actually self-explanatory: it refers to the process of exchanging commodities in the market. Commodities are usually resources, such as mineral or produce, that are considered to be of high value for a lot of investors, are produced in massive quantities, and possess attributes that remain the same all throughout the years. A good example is gold. Gold is a commodity since it’s a very precious metal and valuable. In fact, the price of gold can be worth thousands of dollars in the market. There are also several countries that are currently offering, selling, and buying gold. Lastly, the characteristics of gold haven’t changed ever since it’s been discovered many years ago. Investment options in commodity trading Commodities can either be traded on spot market or futures market. Commodity trading is not particularly complicated.

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