Best Investment

5 Ways To Double Your Investment

2011-05-23T19:58:00.000-07:00

5 Ways To Double Your Investment

There's something about the idea of doubling one's money on an investment that intrigues most investors. It's a badge of honor dragged out at cocktail parties, a promise made by over-zealous advisors, and a headline that frequents the cover of some of the most popular personal finance magazines. Where this fixation comes from is anyone's guess.

Perhaps it comes from deep in our investor psychology - that risk-taking part of us that loves the quick buck. Or maybe it's simply the aesthetic side of us that prefers round numbers - saying you're "up 97%" doesn't quite roll off the tongue like "I doubled my money." Fortunately, doubling your money is both a realistic goal that investors should always be moving toward, as well as something that can lure many people into impulsive investing mistakes. Here we look at the right and wrong way to invest for big returns.

The Classic Way - Earn It Slowly
Investors who have been around for a while will remember the classic Smith Barney commercial from the 1980s, where British actor John Houseman informs viewers in his unmistakable accent that they "make money the old fashioned way – they earn it." When it comes to the most traditional way of doubling your money, that commercial's not too far from reality.

Perhaps the most tested way to double your money over a reasonable amount of time is too invest in a solid, non-speculative portfolio that's diversified between blue-chip stocks and investment grade bonds. While that portfolio won't double in a year, it almost surely will eventually, thanks to the old rule of 72.

The rule of 72 is a famous shortcut for calculating how long it will take for an investment to double if its growth compounds on itself. According to the rule of 72, you divide your expected annual rate of return into 72, and that tells you how many years it takes you to double your money. (To learn more about the rule of 72, check out the answer to our frequently asked question, What is the 'rule of 72'?)

Considering that large, blue-chip stocks have returned roughly 10% over the last 100 years and investment grade bonds have returned roughly 6%, a portfolio that is divided evenly between the two should return about 8%. Dividing that expected return (8%) into 72 gives a portfolio that should double every nine years. That's not too shabby when you consider that it will quadruple after 18 years.

The Contrarian Way – Blood in the Streets
Even straight-laced, even-keeled investors know that there comes a time when you must buy - not because everyone is getting in on a good thing, but because everyone is getting out. Just like great athletes go through slumps when many fans turn their backs, the stock prices of otherwise great companies occasionally go through slumps because fickle investors head for the hills.

As Baron Rothschild (and Sir John Templeton) once said, smart investors "buy when there is blood in the streets, even if the blood is their own." Of course, these famous financiers weren't arguing that you buy garbage. Rather, they are arguing that there are times when good investments become oversold, which presents a buying opportunity for brave investors who have done their homework. (Read more on Sir John Templeton in our Greatest Investors Tutorial.)

Perhaps the most classic barometers used to gauge when a stock may be oversold is the price-to-earnings ratio and the book value for a company. Both of these measures have fairly well-established historical norms for both the broad markets and for specific industries. When companies slip well below these historical averages for superficial or systemic reasons, smart investors will smell an opportunity to double their money. (Read Buy When There's Blood In The Streets to learn more on contrarian investing.)

The Safe Way
Just like how the fast lane and the slow lane on the freeway eventually lead to the same place, there are both quick and slow ways to double your money. So for those investors who are afraid of wrapping their portfolio around a telephone pole, bonds may provide a significantly less precarious journey to the same destination.

But investors taking less risk by using bonds don't have to give up their dreams of one day proudly bragging about doubling their money. In fact, zero-coupon bonds (including classic U.S. savings bonds) can keep you in the "double your money" discussion.

For the uninitiated, zero-coupon bonds may sound intimidating. In reality, they're surprisingly simple to understand. Instead of purchasing a bond that rewards you with a regular interest payment, you buy a bond at a discount to its eventual maturity amount. For example, instead of paying $1,000 for a $1,000 bond that pays 5% per year, an investor might buy that same $1,000 for $500. As it moves closer and closer to maturity, its value slowly climbs until the bondholder is eventually repaid the face amount.

One hidden benefit that many zero-coupon bondholders love is the absence of reinvestment risk. With standard coupon bonds, there's the ongoing challenge of reinvesting the interest payments when they're received. With zero coupon bonds, which simply grow toward maturity, there's no hassle of trying to invest smaller interest rate payments or risk of falling interest rates. (Check out the Importance of Reinvestment Income and Reinvestment Risk section of our CFA Level 1 Study Guide to learn more about this concept.)

The Speculative Way
While slow and steady might work for some investors, others may find themselves falling asleep at the wheel. They crave more excitement in their portfolios and are willing to take bigger risks to earn bigger payoffs. For these folks, the fastest ways to super-size the nest egg may be the use of options, margin or penny stocks.

Stock options, such as simple puts and calls, can be used to speculate on any company's stock. For many investors, especially those who have their finger on the pulse of a specific industry, options can turbo-charge their portfolio's performance. Considering that each stock option potentially represents 100 shares of stock, a company's price might only need to increase a small percentage for an investor to hit one out of the park. Be careful and be sure to do your homework; options can take away wealth just as quickly as they create it.

For those who want don't want to learn the ins and outs of options but do want to leverage their faith (or doubt) about a certain stock, there's the option of buying on margin or selling a stock short. Both of these methods allow investors to essentially borrow money from a brokerage house to buy or sell more shares than they actually have, which in turn can raise their potential profits substantially. This method is not for the faint-hearted because margin calls can back your available cash into a corner, and short-selling can theoretically generate infinite losses. (Read our Margin Trading Tutorial to learn more about trading on leverage.)

Lastly, extreme bargain hunting can quickly turn your pennies into dollars. Whether you decide to roll the dice on the numerous former blue-chip companies that are now selling for less than a dollar, or you sink a few thousand dollars into the next big thing, penny stocks can double your money in a single trading day. Just remember, whether a company is selling for a dollar or a few pennies, its price reflects the fact that other investors don't see any value in paying more. (For further reading on using penny stocks to double your money, read The Lowdown On Penny Stocks, Spotting Sharks Among Penny Stocks and Spot Hotshot Penny Stocks.)

The Best Way to Double Your Money
While it's not nearly as fun as watching your favorite stock on the evening news, the undisputed heavyweight champ of doubling your money is that matching contribution you receive in your employer's retirement plan. It's not sexy and it won't wow the neighbors at your next block party, but getting an automatic 50 cents for every dollar you deposit is tough to beat.

Making it even better is the fact that the money going into your 401(k) or other employer-sponsored retirement plan comes right off the top of what your employer reports to the IRS. For most Americans, that means that each dollar invested really only costs them 65-75 cents out of their pockets. In other words, for every 75 cents, most Americans are willing to forgo out of their paychecks, they'll have $1.50 or more added to their retirement nest egg.

Before you start complaining about how your employer doesn't have a 401(k) or how your company has cut their contribution because of the economy, don't forget that the government also "matches" some portion of the retirement contributions of taxpayers earning less than a certain amount. The Credit for Qualified Retirement Savings Contribution reduces your tax bill by 10-50% of what ever you contribute to a variety of retirement accounts (from 401(k)s to Roth IRAs).

If It's Too Good to Be True…
There's an old saying that if "something is too good to be true, then it probably is." That's sage advice when it comes to doubling your money, considering that there are probably far more investment scams out there than sure things. While there certainly are other ways to approach doubling your money than the ones mentioned so far, always be suspicious when you're promised results. Whether it's your broker, your brother-in-law or a late-night infomercial, take the time to make sure that someone is not using you to double their money.

by Ken Clark (Contact Author | Biography)

Ken Clark is a Certified Financial Planner who divides his time between speaking to the employees of Fortune 500 companies on personal finance topics and writing for numerous publications and websites. Prior to focusing on writing and speaking, Clark co-managed over $100 million in client assets at a major Wall Street firm.

Learn more about Clark and check out his book, "The Complete Idiot's Guide to Getting Out Of Debt", at his website, www.KenClarkCFP.com.

Top 10 Investment Tips

2011-05-23T18:48:00.000-07:00

Here the top 10 investment tips

This is a guest post by Kevin Craig who is a financial writer of OVLG community. He has helped lots of debt burdened people with free counseling and advices on many finance related topics.

The nascent investors in this world of investment are always in search of useful saving tips. Being an amateur in the investment field, this article can act as the right vehicle that would help you to pave the right path with investment guidelines.[ad#tdg-embedded]

As the proverb goes “to have money is good, to have control of money is still better” and in order to have better control over the money choose a right investment plan.

This article will give some investment tips that will be beneficial for all young investors.

1. Keep the investment plans simple:

When you are new to the field of investment then it would be advisable for you to keep the investment plan simple. Try to focus on the relevant points that would help you to understand the plan better. Prediction by a novice can lead to some unpleasant surprises while investing. In order to enhance the rate of success in investments pick a correct economic channel that would offer security on a long term basis.

2. Invest when the market is going through a doldrums:

The best time for investment is when the financial market is going through an unstable situation. It would be the right time to buy share in the “Bear Market” and sell in the “Bull Market”. But there are many young people who would invest at the time of boom and sell it, at the time of recession. Due to lack of investment knowledge they are forced to take wrong decision in the finance market which leads to monetary loss.

Due to unavoidable circumstances you might have entrapped yourself in the labyrinth of debt. If you are going through a financial doldrum, remember before investing go for a debt settlement program.

3. Invest in superior companies:

As it is said that “a fertile ground can produce abundant fruit season after season”. Similarly the reputed companies usually do well year after year. You can plant the seed in these fertile fields (superior companies) as these would be the perfect place to invest your money. As these companies are acknowledged for their honesty and ethics in the market, you can afford to invest with full faith. The profit would be the evidence for the following investment. Even if you do not reap the returns after investing, I can assure you that you won’t run at a loss as these companies won’t cheat you.

4. Past performance can pave the path for future result:

The past performance of the company you are investing in would help you to judge the future result. Flourishing companies would find new ventures in the field of investments that would help the investors to reap a good profit. Give credence to the companies who are planning to expand in new lines of business. But you too need to be aware of the fact that past performance should not be the parameter to judge a company while investing.

5. The way of fool is right in his eyes but a wise man listen to counsel:

As a young investor making hasty decision can end up in poverty. A financial counselor can guide you through the roller coaster ride of investment. They can anticipate the market changes faster than a non professional. Before investment try to talk regarding the investment plan you want to venture with your counselor. The professional investors would do an extensive research about your financial status and give you an investment plan that would suit you best.

6. Be composed:

Boom and recession is part and parcel with the investment market. If the market is going through a tough time and at this present scenario you have invested a huge amount keep your calm. Study the graph of the market but if you notice no changes with the company then you patience would pay off. Being hostile can take a toll on your investment.

7. Quality is more important than the price:

Future should be your prime focus for investment. You should focus the attention to the companies that have bright future prospect. The companies that can increase the value of the share over time would be ideal for investment. If you have enrolled for a long time investment then you can afford to be luxurious as the company would be reliable.

8. Invest your money where there is value:

There is a great difference between a good company and good investment is the price that you pay. There are many good companies but very few among them have a strikingly priced. When you look for stocks getting a high quality company is half the job done the other half is to invest on a rightly priced investment.

9. Keep your future safe:

The future keeps on unfolding itself at every step as no one can escape the unpredictability of the time. In order to protect yourself from the unavoidable circumstances invest in those stocks that you find safe that won’t run you at loss. It is advisable to be on the safer side as it always does not mature properly according to your plan plan.

Margin of safety is really crucial and it is not an accident if you fail to earn the profit.

10. Invest in what you know:

There are many investors who try to experiment in the process of investment. Don’t rely on someone else’s advice. Before investing the money do a bit of research work. Do not go with the trend rather consult a proper financial coach.

If you have the proper temperament then you will achieve success in investing. If you have fair knowledge about the market then there is less chance of losing your heard earned cash. And a good investment would secure your future and pave the path towards success.

Investment Property | Properties & Real Estate for Sale

2010-03-01T04:11:00.000-08:00

Buying Investment Property

2010-02-19T00:15:00.000-08:00

Fidelity Investments

2010-02-11T17:07:00.000-08:00

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Investment Property | Financing Investment Properties

2010-02-08T16:32:00.000-08:00

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Best Investment

2009-11-10T04:39:00.000-08:00

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property investment

2009-07-15T09:17:00.001-07:00

Property investment in either lifestyle or investment property has become an increasing attractive option for people looking for greater freedom in how they spend their leisure time or how they invest for the future.
Increasingly, people buying a golf property in Spain, a French ski chalet or a beach front property, want it to make financial sense.
Investment Property
Property investors want to choose what best suits their investment criteria be it French leaseback, property with guaranteed rentals, buy-to-let, condo hotels, fractional ownership, land or property investment funds.

Fidelity to add 500 jobs in R.I.

2009-07-07T17:10:00.000-07:00

By Neil Downing

Journal Staff Writer

Mutual fund giant Fidelity Investments, of Boston, plans to add more than 500 jobs to its work force in Rhode Island starting early next year.

The move, announced Thursday by Governor Carcieri and confirmed by a Fidelity spokeswoman, will mean additional employment for Rhode Island, which has a jobless rate of 12.1 percent, the highest since at least 1976.

The jobs will be transferred from other locations to Fidelity’s campus in Smithfield, which currently employs about 2,300 people, company spokeswoman Anne Crowley said.

Thus, if all goes according to plan, Fidelity will end up employing about 2,800 people in Smithfield, an increase of about 22 percent from the current level.

Carcieri hailed the development. “It’s great news. It’s fantastic news,” he said in a telephone interview Thursday.

“We’re going through a tough spell right now,” and the addition of jobs, particularly from a company like Fidelity, will bring a boost to Rhode Island’s economy, he said.

Crowley declined to say how much the jobs would pay, but Carcieri said that “virtually all” the jobs at Fidelity’s Smithfield campus are well paying, many of them averaging between $50,000 and $60,000 a year.

“They’ve always been, on average, very, very attractive in terms of wage levels,” said Carcieri, who described Fidelity’s Smithfield campus as a kind of “brain center” for the company.

The move is part of a broader reorganization of Fidelity’s work force that generally involves the company’s four principal New England locations: Boston and Marlborough, Mass., Merrimack, N.H., and Smithfield, Crowley said.

As part of that reorganization, some workers will transfer to a given location while others will transfer out.

For example, some workers now in Smithfield will be moved to other Fidelity locations, Crowley said.

But when the transfers are completed, Fidelity’s Smithfield operations will see a net gain of more than 500 jobs, she said. The transfers to Smithfield will start “around the first quarter or so” of 2010, Crowley said.

At about the same time, Fidelity’s Boston operations will see a net gain of more than 500 jobs, while the company’s Marlborough site will experience a net loss of about 950 jobs, she said.

The moves mainly involve Fidelity’s “personal and workplace investing division.” The company’s largest division, it accounts for about 20,000 of Fidelity’s 39,000 employees worldwide, Crowley said.

The unit handles a variety of tasks for the company, including direct investment, Fidelity’s online retail brokerage operation, and the company’s retirement-savings operation, which includes administering 401(k), 403(b) and other employer-sponsored retirement-savings plans, she said. (Fidelity manages about $1.36 trillion in assets, including money held in retirement plans.)

Mark Higgins, dean of the University of Rhode Island’s College of Business Administration, said that the addition of jobs to Fidelity’s Smithfield campus represents “great news for the State of Rhode Island.”

He said that the net increase in jobs will provide “a much-needed boost to the state’s economy,” and shows that Fidelity is committed to its Rhode Island operations.

The new jobs will mean additional income tax, sales tax and other revenue for the state, which has struggled of late mainly because of a drop in tax revenue brought on by the global recession.

Higgins also suggestd that some Fidelity workers might decline transfers, which could result in job openings in Smithfield for Rhode Islanders.

Crowley said that the reorganization is the result of an internal review of the company’s site strategy, which includes better aligning certain groups of employees.

“This is a broader decision than just Rhode Island,” she said. Among the factors that the company weighed in its decision was vacant space that Fidelity has available at its Smithfield and Boston sites, she said.

Asked whether Rhode Island’s tax policy and overall business climate was a factor, Crowley said, “Certainly we also look to have a positive business climate in any state we locate in, and Rhode Island has contributed to that.”

Carcieri earlier this year proposed a number of changes to the state’s tax structure, including a phase-out of the corporate income tax and a reduction in the state’s individual income tax rates.

In the end, the General Assembly rejected most of Carcieri’s tax-cutting plans, and took a series of steps to close a $590-million state budget deficit for the year that began July 1.

But legislators elected to keep in place an alternative method for calculating one’s Rhode Island individual income tax, a method known as the flat-tax option.

Carcieri said on Thursday that the flat tax is one of the factors that Fidelity weighed in its decision to transfer additional jobs to Rhode Island.

“A real issue for them was the flat tax, and I’ve had that discussion with senior people” at Fidelity, Carcieri said.

In general, a taxpayer calculates Rhode Island individual income tax using either the regular system or the flat-tax system.

The regular system currently lets a taxpayer claim a variety of deductions, exemptions and credits, as well as favorable tax treatment of capital gains, but carries tax rates as high as 9.9 percent – one of the highest top rates in the country.

The flat-tax method generally prohibits the use of deductions, exemptions, credits and favorable capital gains treatment, but does provide a flat-tax rate. The rate is 6.5 percent for this year, 6 percent for 2010, 5.5 percent for 2011 and later years.

Carcieri supports the flat-tax method, partly because it makes Rhode Island more competitive from a tax standpoint with its neighboring states. (Massachusetts, for example generally has a flat tax rate of 5.3 percent.)

The high tax rates under Rhode Island’s regular tax system “have always been an impediment to getting some of [Fidelity’s] senior people here,” Carcieri said.

When Rhode Island’s flat-tax system is fully phased in, “We’re going to look very competitive” with Massachusetts and other states, Carcieri said.

A group known as TransformRI ran a series of advertisements in recent weeks promoting Carcieri’s tax-cutting proposals.

Carcieri on Thursday declined to identify contributors to the group, saying that contributors were guaranteed anonymity, and are not required by law to be disclosed.

Fidelity Investments

2009-05-16T09:13:00.000-07:00

NBC 10 News
Published: May 14, 2009

Join over 900 dedicated cyclists as you spend the best weekend on a bicycle seat. On the Fidelity Investments MS 150, you will start from Narragansett and enjoy a scenic 75 miles, through southern and western Rhode Island to the overnight at Connecticut College in New London, CT. A finish-line cook-out, plenty of beer, entertainment and a full dinner await you at Conn College.

On Sunday, cyclists will ride 75 miles of gorgeous coastal roads back to Narragansett, to enjoy a finish-line BBQ with music and more. This ride will not only test your strength and character, it will challenge you in more ways than you can imagine

The MS 150 starts from Narragansett Pier/ High School on Saturday, June 27, 2009. Registration begins at 6:30AM and the ride begins at 8AM. Please get there as early as possible incase we need to start early due to weather. We also encourage carpooling since we have limited parking at the high school. Follow the parking attendants to your spot, take everything you need out of your car and head to the gym to Check-In. There you will be given your bib numbers and all other essential items.

Route: The ride begins from Narragansett to South Kingstown, Richmond, Hope Valley, and Voluntown, CT to our Finish Line at Connecticut College in New London, CT. Day 1 will be a georgeous route with minimal hills. On Day 2 we will take a different, very coastal route back through Groton and Mystic, Connecticut, Westerly, Charlestown and South Kingstown before we land back in Narragansett for our final finish line.

Investment Ideas for Small Investors

2009-04-30T04:03:00.000-07:00

Investment Ideas for Small Investors
By Mika Hamilton

Investment Ideas for Small Investors. You don’t have to be made of money to be an investor. There are many investments ideas for small investors that you probably aren’t aware of. And these investments can be a lot closer and simpler than you think.

One investment idea for small investors is stocks. Now this may come as a surprise since most people think you need to have scads of money to get involved with the stock market.

Many stocks, however, do not cost an arm and leg to buy. They can be quite affordable and you can start with a few shares and work up to larger investments.

Shares in start up companies in a hot industry are one example of a good investment idea for small investors. A few shares of a blue chip stock is another.

Just be sure to do some research first and be willing to hang on to your stock through ups and downs, as stocks tend to be more profitable in the long term and will definitely see some ups and downs.

Government bonds and securities are other investment options for small investors.

Many government bonds can be bought at a low to moderate price, and they will give an investor the advantage of interest payments.

These interest payments can be used for another investment idea. In fact, the interest payments on government bonds and shares can make it possible to diversify investments for small investors.

Investment ideas for small investors can be in more tangible types of items as well. Items such as coins, cars and collectibles are often a good place for small investors to begin.

These types of investments often make an investor feel more secure than when they’re dealing with what is often referred to as “paper “ money. They like being able to keep their investments close to them.

The advantage this can have is that if a coin or collectible has a sudden spike in value it can be easily gotten to and sold for a profit. And, after all, the best investment idea for small investors is the one they feel the most secure and comfortable making.

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

Best Invetment

2009-04-29T23:10:00.000-07:00

Best Investment

Saving Money On Taxes

2009-03-31T08:21:00.000-07:00

Saving Money On Taxes. It's tax time of year again and arming yourself with a little knowledge first- whether you go to an accountant or file your own taxes- can save you a lot of money in the short and long run. First of all I will help you determine if you need an accountant and what kind to look for- paying a preparer for most simple returns is unnecessary. Then I will go into some specifics for the most common issues and deductions basically trying to outline the things that are worth putting your time and money into to save you money. Who knows, if you take it seriously enough your instructables projects could even be part of a business that will give you valuable write-offs against your other income (you do have other income, right?)

My goal here isn't to give you everything you need to file your own taxes, that would be absurd to try and do in an Instructable. And do not construe this as advice- I take no responsibility for anyone getting into trouble by getting in over their heads with a little information, basically like all the people who say in their Instructables if you cut your finger off it's not my fault... well you get the idea. What I am trying to do here is to give you enough information that you will be able to ask the right questions when you see your tax accountant so that they can save you the most money on your taxes. Unlike most of my colleagues I'm a big fan of educating my clients because I feel that the people who know more about how taxes affect their own situations are more likely to ask smart questions when I see them allowing me to save them money.

So you might be asking who is this crazy woman and why should I listen to her? I've been a tax specialist for the last six years and I figured I would share some of my expertise with the Instructables crowd because I've so been enjoying the projects I've been making on this site and the great ideas I've discovered, so this is my chance to give back. I'm an Enrolled Agent- meaning that I am enrolled to practice tax law in all 50 states. I can represent clients before the IRS in essentially the same manner as an attorney in addition to the tax preparation and advising activities that I do. I got into this line of work through a round about way. I got really into drag racing and I had seven cars on the streets of SF and I needed to find somewhere to keep them, so I got into owning investment real estate. Then I started having some real tough tax questions about the real estate that nobody could answer for me, so I took a tax class just so I could learn enough to talk to my accountant and research laws for my own curiosity, but did so well the company I took it with begged me to work for them, and it turned out I enjoyed doing it for work. I spent the next five years working for other companies preparing returns for high net worth individuals and small businesses, and then last year I started my own firm so I could focus on the types of tax work I really enjoy doing.

I specialize in very complex tax issues, it is why I got into the business in the first place and really is what interests me. Most potential clients that approach me are far too simple for what I care to work with and I wind up referring them to colleagues or telling them to DIY. I enjoy solving problems- multiple years of unpaid taxes that need to be filed so a person can remove the overwhelming stress of the government breathing down their neck, business entity formation and sales, real estate investment and entertainment industry issues are always fun. Basically I like doing the work that few others in my field enjoy, and that is really all I want to work with if I have my way. But I hope you benefit from the information in this Instructable, and if you run across unusual issues either in your own life or through a friend, feel free to send them my way.

One word of advice about working with an accountant: don't just hand your information over to someone and then trust them on blind faith that it is prepared correctly, and never sign a tax return if you don't understand what it says inside. There are a lot of scam artists out there that will get you big returns by putting a bunch of bogus numbers in your tax return, everything seems great until sooner or later the IRS stumbles across that dishonest firms and audits all their clients- that means you. Suddenly you will find out that it is you- not your accountant- that is on the line for the money owed to the government. I would assume that most of the people out there preparing returns are honest, but if someone doesn't seem on the up and up, or is rushing you through signing, go elsewhere. Lying on a tax return just isn't worth the stress and worry that comes along with it- being honest and working within the legitimate loopholes for saving money on taxes always works out for the best for the preparer and the client in the long run.

I will end this intro page with my favorite quote about taxes:
Over and over again courts have said that there is nothing sinister in arranging one's affairs to keep taxes as low as possible. Everybody does so, rich or poor; and all do right, for nobody owes any public duty to pay more than the law demands.
- Judge Learned Hand (1872-1961)

Make Money Online, Investment Tips.

Investment Startegy : Using Life Insurance To Shelter Income

2008-07-14T15:40:00.000-07:00

In a nutshell, a tax shelter allows your investments to grow free of tax. Many people think tax shelters are only for the rich but the biggest users of tax shelter is the middle class. When you buy a RRSP (IRA or 401K in the US), you are in fact buying a tax shelter. The money made inside the RRSP is allow to grow tax free until it’s taken out.

There are a few problems with a RRSP. The first is the Canadian government won’t allow you to put more than 18% of your income or $16,500, whichever is less, into a RRSP. The second problem is the money is subject to income tax when it’s taken out.

Another way to shelter income is by using life insurance. Life insurance proceeds are passed tax free to your beneficiaries. That’s good for your beneficiaries but what if you want the money? All whole life and universal life insurance policies have a cash surrender value that you get if you give up the insurance. If you take the cash, your beneficiaries get nothing and the money taken out gets taxed. Not a good deal. However, there is a way around this.

With the exception of term insurance, all other life insurance policies are made up of two components, the insurance component and an investment component. The key here is the investment component. While the money is inside the policy, its allowed to grow tax free, just like a RRSP. Knowing this, many investors put way more money than they have to into their policy. For example, a 37 year old non smoking female has to pay $622.50 a year to get $1 million of life insurance. If all she does is put $622.50 into her plan, all she’ll have is insurance. Anything above that amount goes into the investment component.

To prevent people from dumping in their life savings, the government sets limits on the maximum premium you can pay into a policy and still keep its tax shelter status. In the above example, the maximum is $41,847.61 a year. The higher your insurance needs, the higher the limit. Let’s assume that the above put $41,000 a year into her policy for 3 years and then stops after that. After paying for insurance cost the rest will go into the investment component, where it will grow tax free. If we assume an 8% yearly rate of return the policy will have a cash value of $1.3 million and death benefit of $2.15 million when our 37 year old female reaches 65. If she takes the cash, it gets taxed and she loses the death benefit. How can she take cash out, keep the death benefit and not pay taxes? By borrowing against the cash value.

A bank will lend up to 90% of the cash value on an insurance policy. So our investor can borrow up to $1.17 million from the bank to spend as she feels like. The money would not be taxed because it’s not income. The bank would capitalize the loan so she doesn’t have to make any payments. How does the bank get its money back? When she dies, the death benefit will pay off the bank loan plus accrue interest and any money left over will go to her beneficiary tax free.

So here you have an investment strategy that is completely sheltered from tax, allows you to take money out of the plan tax free, and allows you to transfer your estate to your heirs’ tax free. As with all investments, you should seek out the advice of an experience financial planner before proceeding.

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Investment Solutions Company: for Smart Investment Decisions

2008-07-14T08:05:00.000-07:00

Every element on this earth keeps growing. This is the nature of the earth. There is no life without growth. Same is true for money also. If you can not make your money grow, if you can not make money out of your money, and if you can not save your money for long-term profit then it is useless. You must provide wings to your money so that it can make you fly. And you can do this through investments only. Various investment options are available in the market. You need not to get confused. Choose an investments solutions company to remove all the confusions.

An investment can be perceived as a saving and an additional income. Both these factors are necessary. Any form of property, either in cash or kind, which has the potential to grow in value can be an investment. These days various investment products are offered by the financial market and you can make a smart decision by opting for an investments solutions company. These days investment products are available in the form of funds which pool together people’s money and are invested in a mixture of different investment solutions like equities, bonds or even property and cash.

An Investments Solutions Company can provide a fund manager who can look after these funds. Also, there are various other kinds of investments which are made by four variables cash, corporate bonds and gilts, equities and property. Some of these investment products are regular savings, cash ISA, lump sum investments, property, wrap accounts, distribution bonds, national savings certificates, investment bonds etc. These all investment products have different qualities and all of them need variable investment. But all of these are good investments.

And whatever investment product you choose make sure that it is fulfilling your investment needs. You must be saving good money. So, be a smart investor and opt for investments solutions company.

Article Source: http://www.articlesbase.com/investing-articles/investment-solutions-company-for-smart-investment-decisions-418689.html

Tips for investing in tax deeds

2008-07-13T15:53:00.000-07:00

Investing in Tax Deeds really is as easy as shown on the television.

There is one vital key to getting things done right without ending up in a sea of paperwork and confusion whilst holding a deed to a hazardous piece of property. This will ultimately cost several thousand dollars to rectify, and more often than not this isn't even possible. You will be stuck with a tax bill each year and land which cannot possibly be sold.

Real Estate Investing is a hobby of mine, and I can tell you that once purchasing the courses advertised on television you'll be compelled to learn everything in the books. Not such a bad idea, if you plan to memorize everything you read, and are willing to travel thousands of miles around the country to make your purchases. You see, each state has a different set of purchasing guidelines and some will require you to be present for your purchase. A better idea is to focus on just one state and learn everything there is to know about how you can invest there, and what areas will be best to invest in. If this is not done I can honestly tell you that you will become the proud owner of a 20 ft. strip of land in between a factory and a condemned house in a most unsavory neighborhood.

The last 4 purchases I made were two streets away from my home. There were several lots available, all in default, but listed as such in different time-frames. After telephoning the Land Commissioner's Office, researching the listings online, calling the Tax Collector and Assessor's Offices to retrieve as much information as possible, I decided it was worth taking a second look at some of them. It is most important to physically visit the properties you wish to purchase for reasons already stated. It is also a crucial factor in the resale process as so many properties are bought unseen this way and nobody wants you to brag on a possible sale to them if you have never seen the property yourself!

It took approximately 2 weeks to gather the information I needed to make a decision, then I requested an "Offer To Purchase" form from the Commissioner's Office.
I wrote out my offer, returned the forms and waited around 30 days. When the letters came back each in their own envelopes, I was delighted to see I was successful on all four properties. My net profit for 2 weeks work without raising a sweat or getting a headache was $22,792.00.

I plan to donate one lot to a nearby Church, since they have always used it for congregation overflow anyway. The others will eventually be sold, and as I am not making payments on them I can do this easier by offering seller finance. I have owned them for more than 2 years now so the Tax implications of reselling investment properties has been minimized.

Investing is fun, and really is easy especially when one doesn't need a small fortune to start with.

(Tips for investing in tax deeds by Kerry Mulherin)

Different types of investments

2008-07-13T15:41:00.000-07:00

Overall, there are three different kinds of investments. These include stocks, bonds, and cash. Sounds simple, right? Well, unfortunately, it gets very complicated from there. You see, each type of investment has numerous types of investments that fall under it.

There is quite a bit to learn about each different investment type. The stock market can be a big scary place for those who know little or nothing about investing. Fortunately, the amount of information that you need to learn has a direct relation to the type of investor that you are. There are also three types of investors: conservative, moderate, and aggressive. The different types of investments also cater to the two levels of risk tolerance: high risk and low risk.

Conservative investors often invest in cash. This means that they put their money in interest bearing savings accounts, money market accounts, mutual funds, US Treasury bills, and Certificates of Deposit. These are very safe investments that grow over a long period of time. These are also low risk investments.

Moderate investors often invest in cash and bonds, and may dabble in the stock market. Moderate investing may be low or moderate risks. Moderate investors often also invest in real estate, providing that it is low risk real estate.

Aggressive investors commonly do most of their investing in the stock market, which is higher risk. They also tend to invest in business ventures as well as higher risk real estate. For instance, if an aggressive investor puts his or her money into an older apartment building, then invests more money renovating the property, they are running a risk. They expect to be able to rent the apartments out for more money than the apartments are currently worth – or to sell the entire property for a profit on their initial investments. In some cases, this works out just fine, and in other cases, it doesn’t. It’s a risk.

Before you start investing, it is very important that you learn about the different types of investments, and what those investments can do for you. Understand the risks involved, and pay attention to past trends as well. History does indeed repeat itself, and investors know this first hand!

investment tips from Dean Graziosi….

2008-07-13T15:37:00.000-07:00

A. Make sure you broaden your horizons with your investments. In other words, you don’t want only stocks or only real estate; rather you want a little bit of everything.

B. Research. Though you might have someone taking care of your investment portfolio, if you want to get the most out of your investments, it’s important to spend some time researching and analyzing as much information as you can.

C. Plan a strategy. Meet with your investment counselor and indicate what your high price or low price might be to initiate a sell order.

D. Think years down the road. While it’s always nice to invest in something that will pay immediate returns, it’s important to think ten, twenty even thirty years into the future.

E. Greed is bad. To paraphrase from the movie, Wall Street, it pays not to be greedy. You’re most likely not going to find an investment that will double its value in a short period of time, so sit back and let your investments grow.

F. Be Patient. Quick decisions often lead to problems. Since you’ve set up a plan with your investment counselor, don’t stray from it because of some ‘hot tip.’

G. Ask a Professional. Whether it’s stocks, bonds, T-Notes, Real Estate or another investment, find a investment professional you’re comfortable with and can afford.

Invest in yourself

2008-07-13T06:54:00.000-07:00

The Science of Getting Rich is a timeless classic written in 1910 by Wallace D. Wattles. It is a bold title for a book and suggests that getting rich is a predictable outcome if one can master the principles outlined in the book. Here is how Wallace D. Wattles puts it in his own words, "The ownership of money and property comes as a result of doing things in a certain way. Those who do things in this certain way, whether on purpose or accidentally, get rich. Those who do not do things in this certain way, no matter how hard they work or how able they are, remain poor. It is a natural law that like causes always produce like effects. Therefore, any man or woman who learns to do things in this certain way will infallibly get rich."

Certainly, this book is well referenced by many of the great teachers today and it is the same book that inspired Rhonda Byrne to produce that runaway success "the Secret". Here is what Rhonda Byrne said on her introductory note to the book, "I can honestly say that, since that first night when a tattered printed manuscript found its way to me (thanks to one of my daughters), my life has never been the same. Once you read it for yourself, you will understand why". Rhonda went on to produce the movie "the Secret" and the best-selling book of the same title which has sold millions of copies worldwide.

However, learning how to do things in that "certain way" as described by Wallace D. Wattles may be more challenging for some as the book was written nearly 100 years ago. Some of the language is a little dated and much of its wisdom lost from a modern day perspective.

Fortunately, a new training seminar for the Science of Getting Rich has brought the wisdom of this timeless classic back to life for modern readers. Called "the Science of Getting Rich", this program is the most comprehensive training system for mastering Wallace D. Wattles wealth creation philosophies and principles since its creation. It comprises written, audio and live seminar formats for learning, applying and mastering the Science of Getting Rich.

A unique "twist" to the program is the fact that it has an in-built vehicle for creating substantial financial wealth through its affiliate program. This is truly a unique wealth education and wealth building program designed to empower any individual with the resources to get rich. It is a program whose time has come. The program would not be possible without the original text from Wallace D. Wattles, the skills of leading teachers of our time, the phenomenal success of "the Secret" and the Internet as a learning and distribution tool.
Click here to learn more about the Secret Science of Getting Rich and the details of the program.
http://www.secret-fortunes.com

real estate investments : investment opportunity - "It's So Easy, Being Green"

2008-07-12T21:31:00.000-07:00

With oil and natural gas prices rocketing, stoking terror of long, cold and and expensive winters, a renewed interest in keeping heating costs under control has has been sparked. Homeowner's have an ignited passion in understanding energy saving methods. If you're in this boat, stuck in cold waters, here are some tips for energy saving tricks of the trade.

If you're living in a home with a furnace that's more than 20 years old, you may have already attempted the "buy a sweater" method of keeping warm. This is certainly one approach, but these days upgrading your home's conditioning system is a much better option, and will bode well for you in the here and now, and in the long term, should you decide sell your home. More and more, homebuyers are looking for homes with energy efficient systems already in place. So, think of these upgrades as a long term investment in the resale value of your home, as well a cost efficient and green alternative to your current conditioning system.

Now, with that old choker of a furnace huffin' and puffin' away, guaranteed it's not as efficient as it could be, no matter what fuel type it uses. The newer gas furnaces are mid-efficiency (78-82%) or high efficiency (89-96%). Although the higher efficiency products can cost up to $1000 more than the mid-efficiency products, extra costs will be re-couped in a couple years, as they will burn less fuel. And, you'll be the greenest frog on the block, sending less harmful emissions out into the atmosphere. "It's so easy being green", murmured Kermit, once he upgraded his furnace.

With oil furnaces, there are again, much more efficient products on the market as of late. But, a oil furnace does need to partner with a good chimney, and so this may be an additional cost to keep in mind

Take note, it's still the case that electric heat is more expensive than oil and gas, although a smart combination of central woodstove heat, supplemented by electric heat can be cost efficient.

Let it Flow: Change Your Filters!

Whether disposable or washable, all forced-air heating/cooling systems use filters. And, these filters need to be maintained and changed. Some filters require monthly changes while other last up to three months, and much depends on the conditions within your home. A dirty filter will restrict air flow and with clogged filters you're blocking heat that would otherwise be keeping you toasty warm. Do yourself a favor and keep on top of the regular changing of your heat filters. This is a pretty easy way to boost your energy efficiency and cut costs.

Pump it up: Install a Heat Pump

Air source heat pumps are the most common and they are generally used with a back-up heating system. In terms of function a heat pump works by extracting heat from the outside and bringing it in, (in heat mode), and by removing heat from the inside of the house and releasing it outside. ( in cooling mode).

The king of heat pumps, though, are ground and watersource, or geothermal. And while the initial investment may be great, the saving will be substantial in the long run. These pumps will use 25-50% less energy than conventional conditioning systems.

At the end of the day, another simple method to help with soaring heat bills, is to keep an eye on the set temperature levels in your house, What is normally described as room temperature is around 68 Fahrenheit (20 degrees celsius). Of course, only you can decide where to set the dial. But, if you'd rather avoid the " put on a sweater" method of winter energy conservation, you might consider investing in an improved conditioning system that'll bring you warmth today, and will be a smart investment in the re-sale value of your home.

Article Source: http://www.realestateinvestmentarticles.net

Bank Investment

2008-03-07T05:32:00.000-08:00

Investment banks help companies and governments raise money by issuing and selling securities in the capital markets (both equity and debt), as well as providing advice on transactions such as mergers and acquisitions. Until the late 1980's, the United States and Canada maintained a separation between investment banking and commercial banks.
A majority of investment banks also offer strategic advisory services for mergers, acquisitions, divestiture or other financial services for clients, such as the trading of derivatives, fixed income, foreign exchange, commodity, and equity securities.
Trading securities for cash or securities (i.e., facilitating transactions, market-making), or the promotion of securities (i.e., underwriting, research, etc.) is referred to as the "sell side".
The "buy side" constitutes the pension funds, mutual funds, hedge funds, and the investing public who consume the products and services of the sell-side in order to maximize their return on investment. Many firms have both buy and sell side components.
The main activities and units
The primary function of an investment bank is buying and selling products both on behalf of the bank's clients and also for the bank itself. Banks undertake risk through proprietary trading, done by a special set of traders who do not interface with clients and through Principal Risk, risk undertaken by a trader after he buys or sells a product to a client and does not hedge his total exposure. Banks seek to maximize profitability for a given amount of risk on their balance sheet.

Good News for investors

2008-02-29T14:51:00.000-08:00

Buying property is like buying stock or a racehorse. You don’t want to jump on a horse when it’s halfway through the race, and you don’t want to jump on a horse after the race is over. If at all possible, you want to buy a horse after he’s proven he can win, but before he runs his next race. The same is true of investment property. “Today, our market seems to have flattened out,” Kerry Johnson of Mossy Oak Properties BioVenture Investments in Jackson, Missouri, reports. “We’re not in a decline, but we’re not running at the same speed, and property isn’t appreciating as rapidly as it did several years ago. However, all of this is good news for the long-term investor.”
Because there are currently some really-good land bargains out there, probably there will be another run for more-rural property soon. Until the 2008 presidential election, businesses are pretty-much on hold until they get some type of direction as to which way the country will go. Feeling the sentiment of the majority of the people in this country can help an investor pick the right time and make the precise offer on a piece of property. If people believe that the country is headed for recession, hard times may be in our future. Folks will feel like they need to horde cash. The investor who has some money to buy property often can get a very-good deal on land.
“As a whole, the real-estate market is a little flat, especially with new-home construction being on the downswing,” Johnson mentions. “That’s the bad news. The good news is that forestland and recreational properties are still stronger than ever. Agricultural, forest and recreational properties still are strong because the interest rates aren’t bad. They aren’t as good as they’ve been in the past, but they also aren’t as bad as they’ve been in the past. Whenever there’s instability in the national economy, the forestland and the agricultural market seems to grow stronger. We’re seeing numbers of people moving money from CDs, money markets and stock and buying land.”
Putting your cash in a jar and burying it in the backyard is a relatively safe way to preserve your capital. However, regardless of the amount of fertilizer and water you put under, on top of and all around that jar full of money, it won’t grow. If you put your money in land, you still have it in the ground, but it can grow timber and crop, and increase in value over time. We’re seeing larger numbers of people moving their capital to hard assets as opposed to paper assets. Who’s to say that you can’t have fun with your investment? When you invest in forest, agricultural and/or recreational properties, you can grow trees, vegetables and timber and hunt and fish on it. While the value of the property grows, you and your family can hunt, fish, farm and watch birds or just sit on your property and watch the grass grow.

Invest Wisely: An Introduction to Mutual Funds

2008-02-19T07:05:00.000-08:00

Over the past decade, American investors increasingly have turned to mutual funds to save for retirement and other financial goals. Mutual funds can offer the advantages of diversification and professional management. But, as with other investment choices, investing in mutual funds involves risk. And fees and taxes will diminish a fund's returns. It pays to understand both the upsides and the downsides of mutual fund investing and how to choose products that match your goals and tolerance for risk.
This brochure explains the basics of mutual fund investing — how mutual funds work, what factors to consider before investing, and how to avoid common pitfalls.

Key Points to Remember
Mutual funds are not guaranteed or insured by the FDIC or any other government agency — even if you buy through a bank and the fund carries the bank's name. You can lose money investing in mutual funds.
Past performance is not a reliable indicator of future performance. So don't be dazzled by last year's high returns. But past performance can help you assess a fund's volatility over time.
All mutual funds have costs that lower your investment returns. Shop around, and use a mutual fund cost calculator at www.sec.gov/investor/tools.shtml to compare many of the costs of owning different funds before you buy.
Advantages and Disadvantages
Every investment has advantages and disadvantages. But it's important to remember that features that matter to one investor may not be important to you. Whether any particular feature is an advantage for you will depend on your unique circumstances. For some investors, mutual funds provide an attractive investment choice because they generally offer the following features:
Professional Management — Professional money managers research, select, and monitor the performance of the securities the fund purchases.
Diversification — Diversification is an investing strategy that can be neatly summed up as "Don't put all your eggs in one basket." Spreading your investments across a wide range of companies and industry sectors can help lower your risk if a company or sector fails. Some investors find it easier to achieve diversification through ownership of mutual funds rather than through ownership of individual stocks or bonds.
Affordability — Some mutual funds accommodate investors who don't have a lot of money to invest by setting relatively low dollar amounts for initial purchases, subsequent monthly purchases, or both.
Liquidity — Mutual fund investors can readily redeem their shares at the current NAV — plus any fees and charges assessed on redemption — at any time.
But mutual funds also have features that some investors might view as disadvantages, such as:
Costs Despite Negative Returns — Investors must pay sales charges, annual fees, and other expenses (which we'll discuss below) regardless of how the fund performs. And, depending on the timing of their investment, investors may also have to pay taxes on any capital gains distribution they receive — even if the fund went on to perform poorly after they bought shares.
Lack of Control — Investors typically cannot ascertain the exact make-up of a fund's portfolio at any given time, nor can they directly influence which securities the fund manager buys and sells or the timing of those trades.
Price Uncertainty — With an individual stock, you can obtain real-time (or close to real-time) pricing information with relative ease by checking financial websites or by calling your broker. You can also monitor how a stock's price changes from hour to hour — or even second to second. By contrast, with a mutual fund, the price at which you purchase or redeem shares will typically depend on the fund's NAV, which the fund might not calculate until many hours after you've placed your order. In general, mutual funds must calculate their NAV at least once every business day, typically after the major U.S. exchanges close.

Astrum hedge fund prepares for warp speed

2008-02-17T15:10:00.000-08:00

Astrum Capital Management (those with a classics education will recall it is the Latin for 'star') manages the Astrum Asia Absolute Return Master Fund. The fund lifted off from the launch pad in 2007. It is now planning on making the leap into hedge-fund hyperspace. Its assets currently stand at $13 million and the plan is to propel that up to $500 million by this autumn.Astrum is an Asia-Pacific ex-Japan long/short fund, with a 50% bias to Hong Kong and China stocks. It runs a portfolio of 40-60 positions, with no more than 5% of the fund's net asset value in one stock. The portfolio turnover is estimated at 400% per year.The portfolio manager is Richard Sung, who was director of global equities at Merrill Lynch where he did hedge fund sales, before then starting one of his own funds. The firm's CEO is Victor Chang who formerly worked at a family office and before then at Lippo Securities. Co-portfolio manager is Jackie Pan, CFO is KW Yeung and the compliance and risk chief is Bosco Cheung, who are all former Lippo Securities men.
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Target returns are 20%-25% on low double-digit volatility. In 2007 the fund was up net 29.7% in eight months.Gross exposure for the fund is up to 150% and net exposure can range between minus 30% net short, to plus 150% net long. The fund does not use leverage. Fees are 1.5% and 20% with a high-water mark.Among the service providers, UBS is prime broker, Citi (initially via Bisys) is the fund administrator. Quality Risk Management and Operations are providing outside risk management services.

India Investment Booms With Third Year of 9% GDP Growth in '08

2008-02-16T19:10:00.000-08:00

Jan. 7 (Bloomberg) -- Gordon Brown's plane will have barely departed New Delhi's Indira Gandhi International Airport this month before Nicolas Sarkozy's arrives with another contingent of executives seeking opportunities in India's rapidly opening markets.
The British prime minister and the French president, separately visiting the week of Jan. 20, are bringing along commercial delegations including retailers Tesco Plc and Carrefour SA, attracted by a burgeoning middle class and loosening curbs on foreign ownership in the nation of 1.1 billion people.
Overseas investment in India may double in 2008 for a second straight year to reach $30 billion, the government forecasts, as the world's second-fastest growing major economy arrives at what Lehman Brothers Holdings Inc. calls its ``take- off'' point. That's when consumer demand and business spending start feeding off one another and drive even more investment.
``India's growth acceleration is not a flash in the pan,'' says Robert Subbaraman, chief economist at Lehman Brothers Asia in Hong Kong. ``A middle class is fast emerging, which is spurring demand as consumption and investment interact.''
Like China and South Korea in previous decades, India is benefiting from an increasingly open economy that has already stimulated enough growth to double per-capita income since 2000, according to Lehman. The resulting surge in demand for consumer goods has tripled mobile phone use in two years and fueled a 29 percent jump in sales of microwave ovens in 2007, Lehman says.
Purchasing Power
With the explosion of purchasing power, India's economy is poised to expand 9 percent for a third straight year, while the U.S., Europe and Japan slow to less than 3 percent growth.
McKinsey & Co., the New York-based consulting firm, estimates that India's middle class -- those with annual disposable incomes between $4,380 and $21,890 in current dollars -- will increase more than 10-fold to 583 million by 2025.
India's appeal is more than a matter of demographics. Prime Minister Manmohan Singh, who as finance minister in 1991 started dismantling barriers to foreign investment and other Soviet- style controls on industry, is preparing to permit overseas companies to build retail chains in the country. That's prompting interest from companies including Hertfordshire-based Tesco, Britain's largest retailer, and Paris-based Carrefour, which operates supermarkets on four continents.
Bigger Stakes
Singh's government is also moving to raise the limit on foreign equity stakes in local insurers to 49 percent from 26 percent, and has a roadmap to let foreign banks increase holdings in India's private banks. Brown's party will include representatives of Prudential Plc, the U.K.'s second-biggest insurer, and Barclays Plc, the No. 3 British bank, both based in London.
``India has long been noted for its superb `micro' -- good companies, rule of law, democracy,'' says Stephen Roach, chairman of Morgan Stanley in Asia. ``What has been missing is the `macro' -- foreign direct investments, infrastructure. What's encouraging to me about India now is that the macro is starting to improve and is reinforcing the already positive micro.''
Foreign ownership in telecommunications has helped India become the world's third-largest user of telecom services after China and the U.S. It's the world's fastest-growing wireless market.
`Heart of Globalization'
``India is a country of enormous opportunity; it's the heart of globalization in a way,'' says Ben Verwaayen, chief executive officer of London-based BT Group Plc, the U.K.'s largest phone company. ``You see a growing base for companies from around the globe, being here not just for this region itself, but being here as a kind of base for what they can do in other parts of the world as well.''
San Jose, California-based Cisco Systems Inc., the world's largest maker of computer-networking equipment, plans to triple its Indian workforce to 10,000 by 2010, Chief Executive Officer John Chambers said in October.
Automakers including General Motors Corp. and Suzuki Motor Corp. are spending more than $6.6 billion to build new factories in the country. PricewaterhouseCoopers LLP says India's auto output will grow about 17 percent annually until 2011, the fastest among the 20 largest carmaking nations.
India's higher profile in the global economy not only makes it a magnet for foreign investment, but also gives its companies a bigger role on the world stage.
Overseas Acquisitions
Indian companies led by Tata Steel Ltd. and Hindalco Industries Ltd., both based in Mumbai, completed a record $39.2 billion of overseas acquisitions in 2007.
Tata's $12.9 billion purchase of Britain's Corus Group Plc, the biggest overseas takeover by an Indian company, made it the world's fifth-biggest steelmaker. Buying Novelis Inc. of Atlanta provided Hindalco, India's biggest aluminum producer, access to customers such as GM and Coca-Cola Co. The trend is continuing: Tata Motors Ltd. of Mumbai, India's largest truckmaker, last week was selected as the preferred bidder for Ford Motor Co.'s Jaguar and Land Rover units, the U.S. automaker announced.
Brown and Sarkozy are joining a parade of world leaders coming to India with agendas that include closer commercial ties. U.S. Treasury Secretary Henry Paulson, visiting in October, said U.S. companies will participate in India's $500 billion program to modernize roads, ports, power and other infrastructure by 2012. The U.S. will help India transform its financial capital, Mumbai, into an international financial center, he said.
During an August visit, then Japanese Prime Minister Shinzo Abe said Japan will help plan a $90 billion infrastructure corridor between New Delhi and Mumbai, including freight lines, power stations and improved access to ports and airports.
Impediment
Such projects may reduce one of the biggest remaining impediments to doing business in India -- poor infrastructure. For all the expansion in the Indian market, its foreign direct investment still pales in comparison to what China has received -- about $60 billion in each of the past three years.
It takes 24 days for Indian exports to reach the U.S. compared with only 15 days from China and 12 from Hong Kong, according to Lehman Brothers.
``If India doesn't get its act together on infrastructure urgently, then it can never realize its aim of accelerating growth,'' says Vineet Agarwal, executive director of Gurgaon- based Transport Corporation of India Ltd., the nation's biggest cargo transportation and logistics services company.
Even as India's economy reaches take-off speed, almost 300 million people continue to live on less than $1 a day, according to the World Bank.
Fewer Poor
The absolute number of poor in India fell for the first time between 1999 and 2004 after the government's policies to allow more foreign investment and reduce regulation on industry spurred growth, according to the Paris-based Organization for Economic Cooperation and Development.
``The Chinese take-off began in the 1980s and didn't show through in terms of increased living standards for the majority for quite some time,'' says Howard Davies, director of the London School of Economics and a former chairman of the U.K. Financial Services Authority. ``Just the same way, India has got the economic take-off but it needs to be sustained for a decade before you really see the place looking different.''

New Hopu Fund Looks to Invest $ 2 billion in China

2008-02-09T10:04:00.000-08:00

Goldman Sachs and Singapore's sovereign wealth fund, Temasek Holdings, are among the investors in a new $2 billion private equity fund that will focus on China.The new fund, called the Hopu Fund, will be led by Richard Ong of Goldman Sachs and Fang Fenglei, a Goldman Sachs China partner.Goldman Sachs plans to invest about $300 million into the new fund, according to Jet Investments. Lirk Lindstrom says that Hopu "hopes to compete with the likes of the Carlyle Group..."The WSJ says that Ong will leave Goldman Sachs in March to work for Hopu. Temasek is investing $1 billion into the new fund.

Asian Investment Bank

2008-02-02T13:19:00.000-08:00

In an unscheduled meeting on January 22, the US Federal Reserve reduced the benchmark overnight interest rate by 75 basis points and more rate cuts and a fiscal stimulus package are anticipated to boost spending. Developing countries in Asia are in an absurd situation in which the bulk of their FX reserves are invested in low-yielding deposits in G-7 central banks and government debt securities. The principal amounts of these investments are exposed to exchange rate risk and interest income will come down on shorter-term instruments since these will be rolled over at lower interest rates. If China has 60 per cent of its more than $1 trillion FX reserves in dollar-denominated assets, it has probably lost around $60 billion, in yuan terms, due to the 10 per cent yuan appreciation against the dollar over 2006-07. Similarly, India has lost about $21 billion, in rupee terms, on its $250 billion of FX reserves (as of end September 2007) due to the 14 per cent appreciation of the Indian rupee against the dollar over the last one year. In the last decade, private firms and high net worth individuals from developed countries have invested heavily in Indian, Chinese and other developing country equity markets. However, FX outflows from Asia to developed countries far outweigh all inflows into Asian countries including investments in its equity markets.
It is necessary, therefore, for Asia to put together a multilateral institution that would address the risks mentioned above, the funding needs of member economies and serve as an economic think-tank for the region. The capital required to set up a multilateral is small compared to the FX reserves losses due to dollar depreciation, e.g. the IBRD's paid-up equity plus reserves is about $40 billion. An Asian Investment Bank, set up by the governments of the region, could address systemic market risks and provide funding in an Asian currency unit, as an accounting unit for loans, to promote infrastructure and intra-Asia trade.
In the last two weeks, leading financial firms Citibank and Merrill Lynch have announced losses of about $10 billion each for the last quarter of 2007. Earlier, New Century Financial, Bear-Stearns, Morgan Stanley and others had announced substantial sub-prime related losses. As Wodehouse may have remarked, it "boggles the mind" that SWFs set up by Asian and oil-exporting countries are providing life-supporting risk capital to major international banks.

The USA is a popular foreign investment location

2008-01-31T14:42:00.000-08:00

The USA is a top location in terms of relocation and holidays for European investors. Buyers seek a solid investment arena in which to purchase, with well a established infrastructure and tourist facilities to satisfy the stringent demands of today’s visitors. Many new condo purchases in top USA holiday hotspots are currently offering the best returns on investment, and purchasers are choosing from a wide range of options, not only within the many Disney satellites but also superb beachfront developments and golf or ski resorts in key locations.

Why Invest in the USA?
Despite misgivings by some investors due to increased interest rates and stagnant property prices, the real estate market is in fact booming in certain key tourist locations of the USA. Today investors enjoy a solid economic and political climate and an easy buying process, meanwhile enjoying the outstanding variety and quality that their American lifestyle excels in.
Natural and Cultural Factors
A climate that varies from freezing winters in the north to mild year round sunshine elsewhere. The USA has something to offer all tastes, from sun seekers to golfers to skiers alike.
The USA offers an enviable lifestyle often referred to as “The American Dream”, with a variety of options to suit all needs, including every type of outdoor sport and a world famous consumer society.
Wide cultural mix and general tolerance to all colours and creeds.
Modern infrastructure including, amongst other facets, transport, education, health, all of which are famed for their excellence and innovation.
Economic Factors
A low cost of living with a broad range of choice makes the USA a retail paradise.
A politically and economically stable environment
A tourist industry hosting over 40 million visitors per year fuels a healthy rental market
Internal migration from the north to south stimulates the need for long-term rental homes in certain regions such as Florida and Las Vegas.
The legal and buying process is highly developed and transparent which gives the buyer added confidence.
Steady long term capital growth within a stable market
Mortgages, including interest only options, are easily available for property purchasers
Certain regions have not been exploited yet and, with the right advice, some offer the investor a chance to tap into an emerging market.
Selected off-plan schemes give the investor the opportunity for good capital growth
A variety of building types offers investors a selection of properties from stand-alone homes to units in condo-hotels.
Easy access via direct flights from many international airports
Land for Development / Project Sourcing
Land purchase in certain carefully selected areas of the USA offers investors prime opportunity to gain high returns on investment. Propertyshowrooms.com and IPIN (International Property Investment Network) work with a close network of developers, land owners and agents who collaborate to create a carefully vetted list of sources and contacts, allowing us to find our clients the very best options available today. We can also assist you to set up joint venture opportunities in the USA and implement investment strategies with the help of our trusted network of professionals.We maintain valuable contacts with many large-scale individual investors and investment consortiums who wish to take advantage of the current hot investment locations in the USA.
Please request more information about this service.
Summary
For investors who tap into a strong ongoing market in highly sought after tourist locations, investment property in USA is a highly attractive option. Many purchasers enjoy year-round rental income from their properties while later cashing in on healthy capital growth from their investments upon resale. Not only is the USA an outstanding country in terms of lifestyle and climate, it offers many economical and political advantages to today’s overseas property investors. Intelligent investors are making the most of today´s real estate market in USA, while prices are slower to rise, and waiting patiently for stable and inevitable medium to long term growth.

A real estate revival

2008-01-29T19:51:00.000-08:00

All sectors of the Latin real estate market are growing. Consumers are driving economic activity in the region, and motivating real estate developers to build new shopping malls, housing projects, hotels and offices. Strong capital flows and increasing population growth are fueling investment. Economic stability and positive internal indicators have motivated investors to take advantage of new opportunities in industrial, office, residential, retail and resort & leisure real estate.

According to researchers at the Wharton School, Latin American real estate investment is ready to explode! Enjoying recent laws welcoming foreign investment and strong economies, investment in Latin real estate is now moving at a frantic pace as foreign investors capitalize on opportunities. Is your company poised to profit from this growth?

Insurance as Investment

2008-01-29T04:52:00.000-08:00

greed, insurance may not be the best place to invest your hard-earned money. But there are sufficient reasons for one to believe that it can be a highly lucrative avenue to facilitate savings. People often talk about yield on investment and tend to compare their values with those available on various insurance schemes. This is particularly typical within the Indian sub-continent where one conveniently forgets the element of risk covered by life insurance.

It is extremely unfair to compare the performance of insurance against other investments without considering the core features of insurance. The very essence of insurance is to protect your family from the uncertainty of your life. Hence it proves very logical to evaluate the costs involved towards this feature. Ask yourself this question

When you pay insurance premium for your car, do you get anything if fortunately no mishap happens? This means that you spent the amount to secure a valuable property.

Hence you must accept that out of the total amount paid by you for your life insurance, a certain amount is used for providing the risk cover and only the balance can be utilised as savings.

In other words, the total premium you pay minus the amount evaluated as the cost of insurance must be considered as the amount invested to get the maturity amount. If you calculate the yield from returns, you will be in for a surprise.

Secondly, we tend to think very unrealistically about our life. We often compare the results after say 10 years from an investment scheme, for instance PPF. And then we try to convince ourselves that PPF is providing a better yield than an insurance policy.

For instance, if you invest Rs.10,000/- in PPF after 1 year your money will grow to Rs.11100/- accruing a return of 11 percent. But what if your death occurs in the first year itself? The Rs.10,000/- can give you an insurance cover up to an approximate sum of Rs.12 lakhs (depending upon the plan, age, etc) and this amount shall become available to the nominee of the policyholder as against the mere paltry Rs.11,100/- that PPF shall pay.

Now how do you compare the yield in such a situation? Is it 100 % or 1000 % or more?

Investing in Gold 2008

2008-01-18T08:47:00.000-08:00

Waving the old year goodbye with a few new records under the belt is no mean feat, but the real glitter for gold bullion is that most indicators seem to point to more good news down the line.
The first record is that the gold price recorded its first ever month-end close above $800 on Monday, December 31. As mentioned in my blog post “Gold bullion - a belated Christmas gift” (December 27, 2007), gold had only closed above this level on two days during its 1980 surge, namely: $830 on January 18 and $850 on January 21. However, the end of January 1980 saw the price significantly lower at $659.
Looking at monthly averages, January 1980 was $675. This figure was equaled in May 2006 and exceeded for the first time in April 2007. A new record of $806 was established in November 2007, whereas December’s average was slightly lower at $802.
It is, of course, true that in inflation-adjusted terms the gold price is still a long way off its euphoric days of 1980. If adjusted for movements in the US consumer price index, the $850 record would today be around $2 250 and the average for January 1980 around $1 790.

Examining the opposite side of the coin, he argues: “Let’s say that the US economy stabilizes. The housing situation hits bottom and begins to improve. Business realizes that the worst is over for banking and housing - the economy is starting to recover. In the face of this, all the Fed’s previous monetary machinations begin to ‘kick in’. Under those conditions, gold is again advancing. All the money that was created during 2007 to counteract recession now acts as an ‘overflowing punch bowl’. The global economy is ‘on fire’. Under these conditions, gold heads sharply higher.”
The one situation that could be bad for gold is when deflation takes over and there is a panic for cash in order to stave off bankruptcy. A variety of assets, including gold, would then be sold in order to raise dollars. But this state of affairs is rather unlikely while central banks are at liberty to create money out of thin air.
I cannot help but conclude that we have not yet seen the last of the yellow metal’s new records and that more excitement lies ahead. For starters, I will not be holding my breath for the all-time high of $850 to be breached. After all, platinum, which often leads gold higher, has already recently recorded an historic high in US dollar.

Abu Dhabi investment firm raises finance with UAE banks for Dh3 b project

2007-09-28T21:05:00.000-07:00

International Capital Trading (ICT), a leading investment company in Abu Dhabi, has announced the signing of a financing agreement with 4 leading UAE banks for its landmark real estate development, Corniche Project, to be developed in the capital. The Dh3 billion Corniche Project is to be financed in part by leading banks, including Abu Dhabi Commercial Bank (ADCB), National Bank of Abu Dhabi (NBAD), First Gulf Bank (FGB) and National Bank of Dubai (NBD). The total fundraising package is in excess of Dh1.7 billion.
Hamad Abdulla Al Shamsi, Chief Executive Officer, ICT, said, “The financing agreement for the unique Corniche Project is a significant milestone for ICT and is part of our blueprint for our future growth. The project has been supported by top financiers in the UAE banking community and will provide us with the necessary capital resources to develop further world class projects. The launch of the development coincides with the release of Plan Abu Dhabi 2030, which ICT is fully committed to, in line with the future sustainable growth of Abu Dhabi, under the leadership of Abu Dhabi Urban Planning Council”.

The financing agreement has been signed by Hamad Abdulla Al Shamsi, Chief Executive Officer, ICT; Eirvin Knox, Chief Executive Officer, ADCB; Michael Tomalin, Chief Executive Officer, NBAD; Andre Sayegh, Chief Executive Officer, FGB and Nariman Karbhari, Head, Corporate Banking, Abu Dhabi, NBD. Spread over 3.1 million sq ft, Corniche Project will encompass an extensive collection of luxury hospitality, luxury retail, Class A offices and residential components. Construction of the mixed-use real estate development commenced in June 2007 and is scheduled to be completed by 2010. Abu Dhabi is well-connected with Dubai via Emirates Road.

New foreign investment in telecoms for Indonesia caps

2007-09-28T20:57:00.000-07:00

Muhammad Al Azhari and Wardah Fazriyati, Reuters - 2007-07-05 09:29:59 JAKARTA, July 4, 2007 (Reuters) - Indonesia has capped new foreign investment in sectors such as transport, property and fast-growth telecoms, the trade minister said on Wednesday, citing a need to protect the national interest. The new ruling, effective from Tuesday, comes amid concerns raised by some politicians over the growing influence of foreign business in Southeast Asia's top economy after a series of state asset sales since the Asia crisis a decade ago. The world's fourth-most populous nation, however, also desperately needs investment to propel economic growth, targeting $140 billion between 2005 and 2009 to finance infrastructure projects in a bid to boost growth and slash high unemployment. New foreign investment in the fixed-line telecommunications sector has been capped at 49 percent, from 95 percent previously, and the mobile sector at 65 percent, also down from 95 percent, Mari Pangestu told a news briefing on Wednesday. The government put the national interest and the future of the nation first. (But) basic principles such as transparency and legal certainty are also important things that will affect the investment climate in Indonesia, Pangestu said, adding the government would review the new investment rules in three years. Tjandra Lienandjaja, analyst at BNP Paribas Peregrine in Jakarta, said the move would benefit existing players in the mobile phone sector. We already have too many players right now, this should reduce the stiff competition in the market, he said. Shares in Indonesia's largest telco, PT Telekomunikasi Indonesia Tbk rose 3.5 percent, while rival PT Indosat Tbk gained 2.9 percent. The scheme also affects other sectors such as energy and plantations, where new foreign investment has been capped at 95 percent from 100 percent previously. It also applies to toll roads, railways and property. PLUNGING FOREIGN INVESTMENT The move will be a fresh concern for foreign investors, who already complain that graft, red tape, tough labour laws and an unreliable legal system often makes Indonesia a poor choice compared with some regional rivals. Last year, actual foreign direct investment dropped to $5.98 billion from $8.91 billion in 2005, although FDI approvals rose to $15.62 billion from $13.58 billion. Foreign investors have been interested in Indonesia's telecoms sector, especially mobile, where subscriber growth has been in double digits in recent years. The number of mobile phone subscribers is expected to top 100 million by 2010, up from around 70 million currently, but mobile penetration is still only 25 percent compared to 80 percent in Malaysia and 60 percent in Thailand. Singapore state investment arm Temasek Holdings [TEM.UL] indirectly hold stakes in PT Telekomunikasi Selular (Telkomsel), Indonesia's largest mobile operator, and Indosat. Singapore Telecommunications Ltd. controls 35 percent of Telkomsel, with state-owned Telkom holding the rest, and Singapore's ST Telemedia owns 42 percent of Indosat. Telekom Malaysia Bhd controls PT Excelcomindo Pratama Tbk , Indonesia's No.3 mobile operator. (Additional reporting by Muhammad Al Azhari and Wardah Fazriyati)

Dubai investment company ties with Las Vegas real estate firm

2007-09-28T20:49:00.000-07:00

Dubai World, the investment holding company of Dubai Government, plans to invest $5 billion in MGM Mirage, a leading Las Vegas-based real estate developer and entertainment company. Announcing the signing of definitive agreements between the two companies, Dubai World said it would invest $2.7 billion in CityCenter, a luxury urban metropolis being developed in Las Vegas, and up to $2.4 billion for purchases of MGM Mirage common stock. Under the agreement, the two companies will enter into a 50/50 joint venture in the landmark CityCenter hotels and condominiums development while Dubai World will acquire 9.5% stake or up to 28.4 million shares in MGM Mirage.
Sultan bin Sulayem, Chairman, Dubai World, said, "In seeking international expansion, we chose a partner who would complement our strengths in large-scale development as well as share our view of investing for the long-term. We were attracted by MGM Mirage's superior assets, locations, and brands".
MGM Mirage will continue to serve as developer of CityCenter. Upon completion, the joint venture will pay MGM Mirage a management fee to operate CityCenter's resort, development's retail activities and the Vdara condo-hotel tower. CityCenter features a Cesar Pelli-designed 4,000-room resort in addition to approximately 470,000 sq ft of retail and entertainment space, 2,650 luxury condominiums and condo-hotel units and two 400-room boutique hotels.

Increasing Domestic Energy for a New Century

2007-09-28T20:44:00.000-07:00

DayStar Oil & Gas Corp. (DayStar), located in Austin, Texas, was founded in 1996 to focus on the recovery of hydrocarbon reserves through acquisitions and project development with a major emphasis on mature and marginal field enhancement, developmental exploitation drilling and low-risk exploration opportunities.
Utilizing advanced recovery technologies along with a committed management team, DayStar has developed a proven growth strategy of identification, acquisition, and development of domestic hydrocarbon reserves, thereby reducing our dependence on foreign oil. Our key oil and gas exploration strategies are:
Focus on maximum development of existing oil and gas fields in core areas
Utilization of innovative, cost-effective technologies to enhance production
Use modern technologies such as 3-D seismic to reveal untapped reservoirs
Maintain a low-cost operations environment

There are significant risks associated with investing in oil and gas ventures. The above information is for general purposes only and is not a solicitation to buy or an offer to sell any securities. General information on this site is not intended to be individual tax advice. Consult your personal tax advisor concerning the current tax laws and their applicability and effect on your personal tax situation

Investment in palm oil biofuel outperforms the crude used for diesel

2007-09-23T07:13:00.000-07:00

By Claire Leow and Saijel Kishan

The best-performing oil investment comes from trees in Malaysia, not the deserts of Saudi Arabia.Vegetable oils from palm trees normally used in mayonnaise and chocolate bars are being converted to diesel for Mack trucks after oil more than doubled in the past three years and governments encouraged renewable fuels.Palm oil reached a two-year high this month and rose 17 percent in the past year, outperforming the crude oil used for most diesel. Palm oil in Kuala Lumpur might rally 20 percent in the next six months as factories making so-called biodiesel sprout, said Michael Coleman, a hedge fund manager in Singapore.In Europe, where one of every two new cars sold burns diesel, biodiesel output would double by 2008 to meet EU targets for alternative fuels use, the International Energy Agency (IEA) forecast. Fuel from palms, soybeans and rapeseed (canola) now supplies less than 1 percent of the world's diesel. The EU ordered that 5.75 percent of all fuel for trucks and cars come from renewable sources by 2010. Fuel production from vegetable oils worldwide was expected to triple by 2008, with most of the growth in Europe, the IEA forecast.Supplies of diesel fuel from vegetable oils soared 80 percent in 2005, the agency said. That outpaced a 14 percent increase in production of ethanol, a fuel derived from maize and sugar, used as an alternative to petrol.Crude oil reached a record $78.40 (R568) a barrel last month and has driven up the cost of diesel and petrol, making biofuels more competitive. Palm oil costs $507.50 a ton in Europe, less than about $680 for a ton of crude oil-derived diesel. Governments are subsidising biodiesel to diversify energy supply and reduce greenhouse gas emissions. Vegetable oil-based diesel is made through a chemical process where the glycerine is separated from the fat or vegetable oil. The process leaves behind two products: methyl esters, the chemical name for biodiesel, and glycerine, a by-product sold for manufacturing in soaps and antifreeze. Palm oil comes from bunches of plum-sized fruit on a tree, which becomes productive from about 30 months after planting. In Europe, biodiesel cost the equivalent of 72c to produce, according to New Energy Finance. A litre of diesel fuel sells for 81c on the wholesale market

Property Investment

2007-09-23T07:08:00.000-07:00

Iraqi dinar appreciates following IMF recommendations

2007-09-23T06:50:00.000-07:00

Dr. Khalid Ali, of the Center of Studies and Economic Researches, said, "The most important development this year is the continuing decline in the value of the dollar against the dinar, to its lowest level, 1250 to the dollar, from 1500 dinars a year a ago. The reason for this is the firm policy of the government in implementation of recommendations by the International Monetary Fund in return for extinguishing of Iraqi debt."
Referring to the government's decision on July 1 to raise the current price of fuel following the recommendations of the International Monetary Fund, he said, "One of the necessary ways to counter the negative impact of rising fuel prices is lower interest rates and increased economic growth, allowing citizens to borrow money from banks for construction of housing units or to buy real estate." (Source)Brian Hall

BBB Warns that Iraqi Dinar Investment is Creating Concerns and Complaints

2007-09-23T06:42:00.000-07:00

The Council of Better Business Bureaus is warning consumers across the United States and Canada to be wary when considering foreign currency investment, particularly alleged investment deals for the Iraqi Dinar.
The Better Business Bureau of Chicago and Northern Illinois has seen a recent spike in consumer complaints focused on Dinar investment. The BBB continues to field an increasing number of complaints from around the world, with many coming from military personnel claiming fraud over Dinar investment deals.
According to BBB Chicago and Northern Illinois President & CEO Steve J. Bernas, “our office has received 77 complaints concerning United World Exchange from consumers in 33 states and eight countries including Singapore, Australia, Malaysia, Canada and Iraq.
United World Exchange, purportedly of Oak Brook, IL, doing business as “US Dinar,” has been selling Iraqi Dinars through their website – www.usdinar.com – on the premise that buying the Dinars could be a great investment if the value of the Iraqi money were to increase.
Potential investors claim to have bought Iraqi Dinars for anywhere between several hundred to several thousand dollars, with the hope that this may possibly be a lucrative investment for them if the value of the Dinars goes up.
Consumers report that United World Exchange/US Dinar is allegedly selling Iraqi currency online and is not providing consumers with what they have purchased, nor are they giving the potential investors their money back.
Bernas went on to say many civilian contractors and soldiers serving in Iraq have also filed complaints with the BBB from abroad and most have reported the same type of experience. He also noted that United World Exchange/US Dinar has stopped responding to the BBB.
A BBB representative visited the supposed Chicagoland location of United World Exchange/US Dinar. However it turns out the address is for a company renting office space. No representative for the United World Exchange/US Dinar was available on site.
“Anyone who trades in foreign currency should be an expert in that vehicle and you are better off participating in the growth of the American economy by investing in a good growth mutual fund,” commented William E. Braun, Jr., CFP(r), Financial Educator/Counselor, Fleet and Family Support Center at Naval Station Great Lakes.
Bernas added, “The alleged investment opportunity is especially concerning because it involves taking advantage of all investors including our men and women who are serving in our military both overseas and in this country.”
Consumers who have purchased Dinars and have not received them are urged to report the issue to the Chicago and Northern Illinois BBB office via their Web site, www.chicago.bbb.org or by calling 312.832.0500.