Savings Accounts

For those people who are disappointed at the returns their investments are making, there are structured investments to consider. Structured investments are products that are assembled by a team of experts for those who specialize in High Net Wealth and SMSF investments. It is an individual approach to investment creating specialized services for each individual investor. Formerly offered only to top-notch financial planners, the service is now being offered to individual investors.

The components for each product are sourced from the top wholesale financial firms worldwide. The products designed are transparent with the fee structure being reasonable, thus they can easily fit into the client’s day-to-day business.

When you realise that an analysis of traditional managed funds returns has seen the median Australian equity fund under perform its benchmark for 11 out of 15 years, you will see the benefit of structured investments. Structured investments provide total return no matter what returns other managed funds are bringing in. This is because they use structuring techniques and derivatives that provide yield enhancement and capital protection.

Since the whole idea of investing is to gain money, it makes sense to use those types of investments that will give you the best return.

Along the way, you may make a few investing mistakes, however there are big mistakes that you absolutely must avoid if you are to be a successful investor. For instance, the biggest investing mistake that you could ever make is to not invest at all, or to put off investing until later. Make your money work for you – even if all you can spare is $20 a week to invest!

While not investing at all or putting off investing until later are big mistakes, investing before you are in the financial position to do so is another big mistake. Get your current financial situation in order first, and then start investing. Get your credit cleaned up, pay off high interest loans and credit cards, and put at least three months of living expenses in savings. Once this is done, you are ready to start letting your money work for you.

Don’t invest to get rich quick. That is the riskiest type of investing that there is, and you will more than likely lose. If it was easy, everyone would be doing it! Instead, invest for the long term, and have the patience to weather the storms and allow your money to grow. Only invest for the short term when you know you will need the money in a short amount of time, and then stick with safe investments, such as certificates of deposit.

Don’t put all of your eggs into one basket. Scatter it around various types of investments for the best returns. Also, don’t move your money around too much. Let it ride. Pick your investment products carefully, invest your money, and allow it to grow – don’t panic if the stock drops a few dollars. If the stock is a stable stock, it will go back up.

A common mistake that a lot of people make is thinking that their investments in collectibles will really pay off. Again, if this were true, everyone would do it. Don’t count on your Coke collection or your book collection to pay for your retirement years! Count on investments made with cold hard cash instead.

If you’ve never had much to do with share trading, you might be surprised to find that you cannot buy and sell shares yourself. To have any kind of investment portfolio you must rely on the services of a stock broker to buy and sell your shares.

There are two main types of stockbrokers. One will buy and sell whatever shares whenever you tell him. He is referred to as a non-advisory stockbroker. While the lower fees charged may seem attractive, there is no surety that your investments will be good ones - unless you have done your research and know which companies are the likeliest to perform well.

There are two ways to contact your non-advisory stock broker and that is via the telephone and via the Internet. Of the two, the Internet is the cheapest as you simply go to the website provided and type in all the details of your stock broking wishes. They are then put into the loop and the stock broker carries out your wishes. For a telephone service you pay a little more, but are able to contact the stockbroker and tell him personally what you want to do with your share trading.

The other type of stockbroker is called a full service stockbroker. He will advise you on what is a good or a bad investment, and then trade as you tell him to. An advisory stockbroker does charge higher fees, but his advice is for the most part well worth considering.

There are also two main types of investing. One is to purchase certain shares and keep them over several years until their value has increased, or simply keep them to enjoy the dividend each year. The other is to buy and sell quickly - hopefully for a profit. The latter choice is the riskier, as no one can adequately predict whether the value of specific shares will go up on down at any given time. While it is possible to make good money doing this - if you are lucky - it is also possible to make losses very easily.

All investing has risk, but diversifying widely and taking notice of a professional stockbroker’s advice will help to mitigate it to some extent. It takes time to learn all the ins and outs of share trading, so while you venture on your journey, be sure to heed the advice of others who’ve gone before you.

Once you decide to start stock broking - buying stocks, shares and bonds or other investments, you will probably need to get stock broking advice from a professional stock broker, who can tell you what and how much of each to buy. Many people have lost money by investing in shares, so you need to be careful. Those shares that are considered high-risk will give you a higher return, but of course you may also lose money if the stock market crashes.

If you are not comfortable with a high level of risk, then choose those managed funds that are considered low risk or safe, and even though your returns will be lower, the risk of losing all your money is much smaller. When choosing a managed fund, look carefully at the product disclosure statements. You may find that due to the fee involved you would get just as good a return on your money by having it in an e-saver account where there is a good rate of interest and no fees at all.

If you do decide to go ahead and invest in stocks and shares, you have the choice of a managed fund, where a team of professional stockbrokers do all the work for you. Naturally, you must pay them to do this, but if you choose a fund with low fees, it won’t be too much of a slug. Even if you decide to do the buying and selling yourself, you will still need a stock-broker to follow your instructions as to what to buy and sell and when.

A stockbroker has been trained to invest in the share market and must be registered to do so. You may have a stockbroker who gives you the benefit of his experience and tells you what you should buy or sell, then does it for you. Many times he will do this work without letting you know, because there may not be time. Of course, he will have consulted you about your general wishes and needs beforehand, then work to the best of his ability to fulfill them. For instance, if you tell him to only buy low-risk shares, then he will certainly confine his activities to those.

Or you could have a stock broker who advises you what to do, then leaves it up to you to do it. This can be done online or by phone. This option is the less expensive of the two, since you are doing most of the work. Buying and selling online or by phone is using technology to cut costs. One thing is for sure, once you start into stock broking, you life will never be boring.

Since the whole idea of investing is to make money, it is important to take the time to get the most bang for your investment dollar possible. While you can simply leave it all to the professionals, knowing what they are up to will give you more peace of mind. And if you do your own investing, then regularly checking your investment portfolio can only be considered wise.

Following the golden rules of investing will help to enhance your return and minimise fees and losses. Read on for some wise advice about investment portfolios from the professionals.

1. Firstly, if you have business interests, you should certainly keep them separate from your personal investment portfolio. Then if something nasty should happen to your business, you can’t be sued for the clothes on your back, as it were. You might think your business is rock solid, but accidents such as fires can happen - and then, you may pass the business on to the younger generation who may not be as wise as you are. So protect your investments by keeping them separate.

2. Hold your investment portfolio outside your name. Many lenders require a personal guarantee that means you can be sued for your personal assets if you should default on the loan. So for standard asset protection, put them in another name.

3. Thinking ahead will help stave off any problems. Burying your head in the sand will not solve anything and it only makes matter worse. Saving money outside of your personal name and your business name makes good sense, even if your business appears rocks solid at the moment.

4. Now that superannuation laws have been changed, it’s up to you to make the most of them. Adding significant contributions to your super while it is still allowed will certainly increase your investment returns. And the new law means that your superannuation is protected from creditors in the event of bankruptcy.

5. Use of a discretionary trust is a good way to protect assets in case of bankruptcy, but also gives excellent tax benefits. This is done by splitting income and capital gains with adults who have a lower tax rate than your own.

6. Forming a company may not be the best way to protect assets or gain tax benefits. Appreciating assets from investments should not be held in a company because they are not eligible for the CGT discount of 50%. However, companies do have some good points if care is exercised.

Everyone dreams of being wealthy enough to do whatever they want; own lots of possessions, live in a fantastic house and travel overseas in style and luxury. But to do this, building wealth must be worked at. It’s not as hard as it might seem, though. Most people who have a job are paid a good wage in comparison to years ago. The trouble now is that we expect our quality of life to reflect that good wage, so we end up spending most of it instead of adopting a save and invest approach.

No one can build wealth if they go out and spend every cent they make. Building wealth means you must firstly make money, then you must save it - and lastly, you need to put your savings to work for you so that they will make even more money. Many people chase that get-rich-quick dream that they’ve heard about. It becomes like a tantalizing carrot held in front of a donkey’s nose. And those who chase it are donkeys - asses in fact, to spend all their money chasing the pot of gold at the end of the rainbow.

Real wealth creation takes time and money - and patience to build. Firstly you need to put your focus on making more money. It might be possible for you to get another part-time job as well as the one you have. Or perhaps with a bit of effort in the study department, you could get another rung up the ladder and be paid more.

If this is the case, you would be well advised to continue living as you’ve done in the past and invest all that extra money, at least for a few years. Don’t make the mistake of upgrading to a more expensive home or buying a new car. These things will not bring in money; they take it away. Another trap is to repay yourself for all that hard work by spending more money on leisure activities such as expensive holidays or eating out more often. Sure, a little reward might be in order, but don’t make a habit of it.

Once you’ve started to make more money, make sure you save it into the best investment possible. That means it should be earning the highest interest possible, in the safest way possible. An e-saver account could be one of the best solutions. They offer high interest with no or low fees. If you are an impulse spender, then put it into a term deposit so you cannot spend it. Once you see the interest piling up, it will motivate you to keep on saving.

The third step in building wealth is to invest in stocks and shares, but never put all your money at risk. You might be happy to have a high risk - high return investment, but don’t do it with all your money. Keep some safely stashed away in a really safe form of investment. Soon you’ll begin to see that compounding interest is what really builds wealth.

Once you decide you need a financial advisor, you then have the problem of locating one that is right for you and part of this is in the location. You need to be able to get to your financial advisor without too much hassle or a long trip, so choose one that is in a convenient location to you.

You could always ask your friends or family for their recommendations, but remember that their financial circumstances and goals may not be the same as yours, so their financial advisor may not suit your needs. Picking one at random from a phone book is your next option. You won’t always know if the one you pick will suit you, but you can go in for the first consultation and find out. At least you should know whether they are conveniently located by the address given.

Or you could go online and do some research. The Financial Planning Association (FPA) website makes it easier to wade through the array of financial advisors. You just need to type in your postcode to bring up all those that are close to your location. Seeking a financial advisor who is also a member of a financial organization such as the FPA will ensure that you get someone who must not only undertake extra development and training all the time, but is committed to a code of behaviour and ethics beyond that required by the law.

The financial advisor you choose can only work with what you tell him or her, therefore it is important that you are honest about all your financial dealings. Only then will they be able to produce a statement of financial advice that will be of use to you. And by the way, they are required by law to give you a written statement of advice, not just tell you verbally.

An important question to ask your financial advisor is whether another company owns their business. If it does, this might have some bearing on what products you will be offered, since they will always be interested is selling products from which their company will gain commission. Once you have your financial advice all sorted out, you’ll find that it gives you peace of mind to know that you are doing all you can do financially to get a better life. By following the advice of a professional financial advisor you will be making the best decisions possible.

Your investment planning strategy should be tailored to fit your own unique circumstances and position. Only you know what your interests are, how much you know about investing generally, your risk comfort level and how much you have to invest.

Age is one of the main factors in working out an investment plan to suit you. Since all investment carries a certain degree of risk, the younger you are when you start investing, the better. If you are young enough to factor in at least 25 years of investing before you need to touch your money, you are at the prime position for investing. You have time to lose and recover investments when you are young. This doesn’t mean you should choose high-risk investments for all of your spare cash. A good portion of your investments should still be in areas that are safe, such as superannuation or other retirement accounts.

No one should venture into the stock market without a modicum of knowledge - that would be foolish. Instead, set yourself to learn a little bit at a time so you don’t feel overwhelmed and give up before you start. The less you know, the more your investing planning should rely on managed funds. There is a great deal to learn about investing and you won’t be able to learn it all in just twelve months. But once you start to learn, you may be comfortable keeping a percentage of your money out of managed funds and invest it using the knowledge you have gained.

Since personal investing takes time and effort, you need also to make sure you have the time to invest your money satisfactorily. Depending on your knowledge of stocks, you’ll need to commit at least five hours of your time per week to your investing. Of course this will depend on the ratio of individual stocks to managed funds that you have.

Investments need to be analysed to find out if they are a good risk. You can use expensive investment services or you can choose the free ones that are just as good. Many public websites have balance and cash flow statements, press releases and earnings reports. Choose a few reputable websites and stick to them, otherwise you’ll be inundated and confused with the amount of information you find.

Even when deciding on your own investment strategy, you can take advantage of a general market index. Keep a similar investment ratio across the sectors, otherwise you may find that you are dangerously over-allocated in one sector. Then if it begins to lose money, your diversification will not be wide enough to save you. Don’t let thoughts of losing money put you off investing though. It is by getting in and doing it that you learn best, and you stand to gain a great deal more by investing than by standing on the sidelines wondering if you should.

Experts tell us that the only way to build wealth is to invest. While saving your money in a bank account is good, it is not investing. The interest rates offered by banks or other financial institutions are not enough to really build wealth. Here are seven other ways to build wealth.

1. Investing. While we know that there is risk in buying stocks and shares, traditionally they always go up over time. To avoid the worry of whether you’ve bought at the right time, put aside a small amount of money to buy shares every month or two (see comments below). This will even out the lows and highs.

2. Compounding interest is getting interest on your interest. It means that an investment will double in seven* years if you get 10% interest on it and keep on reinvesting it.

3. If you own a house and rent it out, you’ll get the benefit of your fortnightly rent as well as the capital appreciation over several years. But remember to invest the rent - and sell the property at the right time for capital gains. The maintenance you have on real estate makes it not the best investment ever.

4. There is good debt and bad debt. You can use debt for investment and the interest will be tax deductible as in leveraging. Stay away from credit card debt as that is a hazard to your wealth.

5. Saving will build wealth if you remember to do it before you pay the bills rather than after. If you find you have nothing left to save, it’s because you’ve spent it all first. Write down all your expenditure for one week and see how much you’ve just wasted.

6. To lessen tax, buy shares in a company that pays dividends. That money has been taxed before you get it, so you are given tax credits that you can apply to your other income.

7. Diversity is the keyword when investing. If someone drops that basket all your eggs are in, they’ll all get broken. But if you only had one egg out of twelve in it, then your other eleven eggs are safe. True diversity is hard for a novice to achieve investing, so use a managed fund.

Everyone can build wealth if they put their minds to it. Kids these days learn how to trade shares at school. They are the lucky ones if they put their knowledge to use. But you can still learn how to do it without that benefit. Many people have started out with nothing and built wealth up over the years. You just have to put your mind to it.

There are several ways in which you can invest to build wealth that takes care of your financial needs, and what you choose will need to suit your own personal goals and circumstances. Choosing the correct investment strategy will help you to build wealth in the safest and quickest way possible.

Depositing your money in a bank will keep it safe and help you build wealth, but how do you choose which type of account to put it in? If you have a lump sum that you won’t need to access, then a fixed term deposit may be the solution. The term you choose can be anything from a month to three years. When you deposit money into a fixed term account, you cannot access it until the term is up without forfeiting your good rate of interest. But at least you know that interest rate will stay the same until your term is up.

An electronic account is also an excellent choice for those who have Internet access. These types of accounts usually attract no fees, but you need to have another account linked to it so that you can access your money. Access need not be only via the Internet, but in most cases by phone as well. Electronic accounts offer an excellent rate of interest and allow you to take advantage of compound interest as it is calculated daily and added monthly.

Most banks offer the chance to invest in managed funds. Investing in a managed fund will help you to build wealth faster without the effort and time required to manage your investments yourself. You can depend on the bank’s professional fund managers to do the best investing for you that is possible in the current financial climate.

If you prefer to have more control over your investments, then you might choose a more direct option of investing, available through many banks. They still offer a range of tools that you can use, along with investment advice and research that you can choose to follow or not.

Building wealth is not that difficult - all it takes is the decision to start doing so, and the journey on from there can be one of fulfillment and satisfaction. Once you start building wealth, you’ll find that it becomes easier as your knowledge base increases and soon you’ll find that money worries are a thing of the past.

Retirement planning is something that everyone should do, but baby boomers in particular need to look long and hard at their retirement investments, or find themselves having to put off retirement for several years because they just don’t have enough money. This is more likely if you are still supporting your children through university while at the same time providing health support for aged parents.

We tend to jog along complacently as far as our retirement investment plans go, thinking that our cost of living will go down once we retire, but this may not be so. We still need to eat the same amount. Our utilities will still cost the same - or more if the price goes up as it is quite likely to. And then we have all that time on our hands that we want to fill with travel or other hobbies. We can’t do that for nothing.

Travel costs money and so do hobbies. And it would be a shame to have to miss out on doing something that you’ve been looking forward to for many years simply because you still don’t have enough money. But with a little more foresight and attention to financial affairs, that need not be the case. Baby boomers are the ones who have traditionally worked the hardest and helped their families get educated, all the while helping out their aged parents either financially or physically.

This has led them to lead a frugal kind of life and they may be looking forward to reversing that a little in their retirement. The bad new is that they may have to tighten their purse strings even more. In fact, baby boomers need to analyse their situation carefully, testing everything to see what they can expect to get and what they are likely to need.

Baby boomers no longer have all the criteria needed to gain wealth through investments. Retirement planning needs three things to be successful; time, rate of return and money saved. But baby boomers no longer have the luxury of time. Therefore they need to get the highest rate of return for the money they have saved that they can, without being exposed to too much risk. If they cannot get a good enough return, then they face the probability that their retirement will not be as they have dreamt and that a life of frugality will extend into the future.

There is much financial advice floating around - some of it is even free. But you may think that the only financial advice worth taking note of is something you've paid dearly for. It must be some special, long report full of jargon that you can barely understand - and of course written by those professional financial advisors who charge an arm and a leg for it. In fact, you would need to take it to another financial advisor to have it explained.

Nope, not so. You don't need financial advice that is hard to understand or so longwinded it bores you to tears. What you need is something short and succinct. You need financial advice that switches the light bulb on in your brain; that gives you one of those moments of brilliant clarity with which to peer down the long years of your life. It should be easy to understand and easier still to implement. This financial advice should become a part of your life, your spending habits and character. And certainly it should be something that you can easily pass onto your kids.

The best financial advice I ever got was from my mother. She said, “Do you really need that?” Now how hard is that to understand? Do you really need it? You may desire it. You may long for it. You may even dream about owning it. But do you really need it? In other words, will not having it cause you to die?

You can apply this piece of financial advice to clothing. We all need clothing. We don't need designer clothing that is so expensive that it would feed a third world child for a year. We don’t need to have our wardrobes stuffed so full of it that we never see the bottom layer.

We can apply this financial advice to food. Everyone needs food: we don’t all need the most expensive cut of steak. Nor do we need to eat out every night, nor even once a week. Homes? Sure we all like to live in a nice, big home. A little one will do, though. We won’t die if we don’t have four bedrooms with ensuites and a swimming pool. New modern furniture would be great, but we can make do with stuff from the op-shop, or Gran’s bedroom suite.

Financial advice doesn't have to be difficult. Ask yourself do you need it every time before you buy something and you'll soon find that you have plenty of money to invest - and some left over to pay for expert financial advice on the best way to do it.

Choosing a financial advisor can be the best - or worst - thing you ever did. There are many people out there who call themselves financial advisors, but are they trained and licensed to do the job they claim to be good at? And are they a good fit with you personally? Even if the financial advisor you choose is good at his job, if he has a personality that clashes with yours, you won’t find it comfortable or pleasant working with him.

The main thing to remember is not to use Uncle Joe or Grandpa as your financial advisor - unless they are trained and experienced in doing the job. Even so, they may not be objective enough when it comes to your investments, simply because they are close to you.

A financial advisor can guide you through a maze of laws, rules and regulations on all kinds of topics to do with finance. His expertise about retirement plans, superannuation, insurance, income and family taxes will be invaluable. But before you choose your financial advisor, you need to find out a few things about him.

You need to know if he has the kind of good track record that comes with experience. A financial advisor can be highly trained and have all the right certification, but unless he also has a proven track record of giving successful financial advice, then you don’t want him touching your finances.

You also need to find out how your financial advisor gets paid. If he is paid commission from the products he advises for you, then you cannot be sure that they are truly the best ones for your situation. He could want you to have them because he gets paid a great commission from selling them. Even if a financial advisor claims to be fees-based, that doesn’t mean he is totally paid by fees. It could be that his remuneration is only part fees and the other part is commission.

Another consideration is what you actually want your financial advisor to do. If you have a specific problem such as estate planning for him to sort out, then you need to choose someone who is well trained in that area; if you have tax questions an insurance advisor would not be the best person to ask.

To find the best financial advisor, start by asking your friends and family whom they use. You can also ask other professionals that you trust whom they would recommend.

It is never too early to start retirement planning. The earlier you start to plan for your retirement the better off you will be. When time is on your side, your superannuation or any other investment you make has time to grow, interest has time to compound and real estate has time to appreciate in value. You have time to weather a few downturns in the economy or the share market when you start retirement planning early.

The biggest problem is that the younger you are the less you think about retirement planning. It seems to be a million light years away. You just want to get out there and have fun - and that means spending money, not saving it. And as you get older there are other major purchases such as a car and home that need your attention first. But even then, if you can put aside a small amount every so often to go towards your retirement you will be better off in the long run.

The best time to plan for your retirement is when you start your first job. Even children at school who have part-time jobs should be encouraged to think of retirement planning. If they saved just $500 to invest in a retirement plan and didn’t touch it for the rest of their lives, they would be astonished when they got older by how much it had grown. Children and young people who have no debt, could save a great deal more than they realise. Their trouble is that mostly they want to spend, not save.

You might have found it impossible to save for retirement planning while paying off your mortgage and educating the kids, but now all that is over and paid off, you are looking forward to having money to spend for yourself. You could go for a holiday or do up the house. You might think it’s too late to do any retirement planning now, but this is not so. Even a few years spent in saving towards your retirement will make a big difference to your comfort when you stop working.

So while the best option for retirement planning is to start young, your next best option is now, today, before it gets any later. Knowing that your

retirement planning is well under way will give you peace of mind and a feeling of independence

Those who don't bother about retirement planning are just asking for trouble in their golden years. What should be years of enjoyable leisure will be spent in fretting and penny-pinching - all because you didn't want to plan for the future. Make up your mind that’s not going to be you! Find out all you can about retirement planning. Here are ten things to start you off.

1. You should start retirement planning as early as possible. However, if you've left it, late is better than never. You can still make a difference if you start now.

2. Retirement planning can be a great deal easier and more successful if you get advice from a professional. Sure, you have to pay them, but their advice will likely save you money and make you extra that you'd never have made without it, so they are worth their fee.

3. One form of retirement planning is not enough. Diversify your funds into several different companies, then if one fails you won't lose everything.

4. Don't just set and forget. Check those investments on a regular basis. Doing this will ensure that any assets that look sick can be changed to more of those that are doing well.

5. You can get tax-free or tax effective retirement accounts so why not take advantage of them? Saving on tax is a legitimate way of saving money too.

6. Many people use their retirement account as a fallback account. If an unexpected bill arrives, they dip into their retirement account. This is the best way to mess up your retirement planning. Leave it alone and let it grow.

7. Retirement planning should take account of how much per month and per year it will cost you to live during your retirement. You cannot make an adequate retirement plan if you don't know how much you will need.

8. Many retirement plans rely on Social Security. How do you know it will still be there in the future?

9. Don't forget the 'i' word - inflation. Planning how much you need to live on this year will not be helpful by the time you retire, when inflation has caused all costs to rise a great deal more.

10. Factor in the death of one spouse to your retirement planning. Will the remaining partner have enough to live on? Does each of you know the ropes sufficiently to manage if the other should die?

Once you've considered everything and a retirement plan is in hand, both of you will gain peace of mind, knowing that the other will be cared for financially. Going through your retirement years without your partner is bad enough without having to worry about your finances as well.

Most school leavers don't have a great deal of money, so they have to be careful what they spend. If you are heading off to university, you may be even more worried that you won’t have enough money to see you through. But there are ways and means of saving what you have - or at least making it go further. Read on for some financial advice.

The cost of accommodation is one of the biggest for all school leavers. The best financial advice on accommodation is if you are able to stay at home for a few years, then do so, even if you pay your parents a small sum to help cover costs and food. If your Uni is too far to travel to daily, then living on campus is usually cheaper than getting private accommodation. There are often houses around a university that are let to students on a share basis. You may have to share with up to five other people, but these are often work out a bit cheaper than leasing a whole flat to yourself. If you do get a private flat, see if you can share the space and costs with a friend.

Get some financial advice about budgeting if you’ve never done it before. There is plenty of free financial advice online that covers many things as well as budgeting. Budgeting not only means spending wisely, it may mean not spending at all for those treats you can do without, such as alcohol and cigarettes and yes, even chocolate. Getting the most bang for your buck is important too.

Shopping for food near to closing time will often get you bargains that were not available earlier in the day. Buying in bulk - combining with other students - is also a way of saving money. Buy clothing and other items only when it is on sale or discounted with a two for one special.

Take advantage of the Uni's financial advice as far as fees go. They have advisors that will work out a plan with you that will see you through. Books are often a big cost, but you don’t need to rush out and buy them all on the first day. Some will be available through the library; others you’ll be able to purchase second hand from last year’s students.

Following the financial advice of professionals, whether from an online source or offline is very important. You can listen to much financial advice, but unless you put it into practice there will be no benefit from it.

One of the biggest fears most of us have is losing our money. After working long and hard to earn it, that is only natural, but it is one thing that prevents some people from investing in the share market. Everyone who watches the news will see how the value of shares in even blue chip companies seems to rise and fall like the ocean tide recently. As soon as values fall, many shareholders start looking to sell their shares and get out before they lose any more.

Experts in stock broking tell us that we should do the opposite, making this fear our friend instead of the enemy. In other words, investors should look to increase their investment portfolio in times when the bottom seems to be falling out of the market. Buying real estate property when the value is low is what the experts do; they know that the market will gradually rise again and they’ll be able to sell for a better profit than if they bought when the price was high.

So buying shares when they are of low value makes sense. Traditionally, the share market has kept on rising, even though there are periods of lows, just like in the real estate cycle of boom, plateau and fall. A wise investor will jump in and buy up all those low value stocks and shares when everyone else is scrambling to get off what they perceive as a sinking ship. He will get them for a low price and then the value will start to rise again, making his investment worth far more than it would have been if he bought in times when the share market is booming.

Stock broking experts tell us the oldest rule for investing is to buy low and sell high. The easiest way to do this is to buy during a recession, when the prices are low. An investment portfolio set up during such a time is sure to be a profitable one because it has two sources of increase. As the recession loses its momentum and the economy picks up, the value of the stocks and shares will increase. And there will be the natural growth increase of the companies they invest in. So next time the share market news seems to be all doom and gloom, make fear your friend and buy a few of those low-priced shares to add to your investment portfolio.

Most of us dream of the day we retire - especially if that retirement also means we have a guaranteed income for life without working for it. To some this is an impossible dream, but it can happen if we take the proper steps beforehand. What do we have to do to make the dream a reality?

Investing in managed funds could be the answer. You don’t need a lot of money to invest in a managed fund. Some let you start with as little as $500, others prefer twice that amount. In today’s climate, nearly everyone can save that. Even those who have no job can find ways to save a little at a time until they have the necessary amount. So what if it takes a whole year - or even two?

With a managed fund, lots of investors pool their money and the fund manager invests it for them. This is the easiest and simplest way anyone can start to save for their future. The profits from the initial investment must be ploughed back into the fund of course, otherwise it will all be spent on present needs or wants. But after a lifetime of re-investing the profits there will be a significant amount to retire on. And those who are wise enough to see the benefits will continue to save for investment purposes so that the initial deposit will swell a great deal over time.

Self-managed superannuation is another option for making the dream come true. This option should not be taken up lightly as there is a lot of work involved with running a self-managed superannuation fund. You will have to be the trustee and you are directly accountable for everything that happens to the fund.

The responsibilities of a trustee are many. There are strict guidelines that you must comply with and failure will bring down the wrath of the tax office upon your head. You must lodge both an income tax return and a superannuation fund return on an annual basis. As well, there must be superannuation member contribution statements lodged every year. An approved auditor must be appointed to do an audit annually. And records must be kept for ten years. There are also restrictions on investments that must be complied with.

In fact, many people feel that the amount of work involved is not worth the benefit and so go with managed funds. Unless you have experience and plenty of time, this is a good decision.

Great investors surely have investing secrets that they use to

build wealth, but they are open secrets. Anyone can find out what the greats do and copy them to have success in wealth creation. And many of the so-called secrets are simply common sense principles.

For instance, investing in a company with consistent earnings is the sensible thing to do and one that has helped Warren Buffet earn his millions. Taking care to invest in old and well-established companies is another. Many investors run into trouble by jumping on the bandwagon of some new company that sparkles for a while then quickly dies out leaving a pile of rubble rather than money.

Another common sense principle that is applied to both real estate and shares by the great investors is to never pay too much for an investment. Generally the more you pay, the less you get back as many real estate investors have found out to their cost. Warren Buffet also believes in concentration rather than diversification. When he buys a company he typically buys around 80%, and keeps it.

Another secret investment principle Buffet favours that has helped him with his wealth creation is to buy companies with experienced managers and keep them on to do what they do best - run the company. Buffet rarely interferes with the running of the companies he buys. He simply compliments the managers on the job they are doing. Buffet's talent is to see where good investments are and buy them, not run the company.

Checking out the management philosophy of a successful business is another secret. Knowing that the manager cares more about the company than the price it brings has worked for Buffet. He studies the character of the company managers before making a decision to buy the company.

Finding a company whose manager is frugal and cares about costs is an important secret of great investors. They know that one way to build wealth is to spend less and managers who run a consistently tight ship are the successful ones.

While some investors feel that a younger manager will enhance a company�s ability to move with the times and make more money, Buffet prefers to retain the successful manager well past the legal retiring age. He considers that experience is the key word when it comes to managers. Setting high standards and keeping them may seem unnecessary to many, but it has seen many great investors build wealth where others fail. We would do well to take on board some of these secrets for ourselves.

This month will see my wife and I run and hopefully complete my 10th Marathon in 10 years when we line up with a few thousand more competitors at the start line of the Sydney Marathon.

Over the years our training for this gruelling 26 mile event has revolved around a training schedule of 50 miles per week � 2600 miles per year. Not earth shattering mileage for a seasoned runner but enough for us to stay fit and healthy and enough for us to complete our annual marathon without having to walk (too much).

Around the time of our fist marathon we began to invest $100 per fortnight ($50 each) from our pay checks into a high interest saving account. Not earth shattering for a seasoned investor but enough for us to feed and clothe our 3 kids and keep our family car on the road so that we didn�t have to walk.

Interestingly, the 26 miles of the marathon is reflected in 26 fortnights per year. This makes the total investment per year $2600.00.

Over the years we have saved $26,000, but due to the power of compound interest this has grown to $38,938; $12,938 of that is �free� money, in the form of interest.

This summer we will be looking to buy our first home, secure in the knowledge that we have a healthy deposit to match our healthy lifestyle.

Of course, you may not be able to run that far per week, but isn�t it good to know that you can still bank that amount of money into a high-yield savings account each fortnight? You could even call your new savings account �marathon� just to remind yourself that if you practice endurance in the form of saving each fortnight, you�ll end up with enough for a deposit on your own home too.

Michael Phelps is set to earns billions over the next few years after his unprecedented performance in the Beijing Olympic "Water Cube" pool where he won eight gold medals to surpass the tally of seven gold medals won by his compatriot Mark Spitz in swimming in 1972.

As the greatest ever Olympian what would you do with the money? I don�t think he would merely place the majority of his earnings into a term deposit account to save for an overseas holiday or a deposit for a new home, do you? He could potentially buy most small banks or small countries so I don�t think that forms part of his long term financial plan.

If you were Michael Phelps, how would you spend the cash?

Investing and saving money is rather like running a race. The two types of running races are basically, a sprint or a marathon. Training for each one is approached in a different way. The marathon runner needs to have endurance training and settle in for the long haul when he runs. The sprinter needs immediate speed and the power to sustain it for a shorter time. In either case the winner gets a gold medal.

When investing, we need to have a certain goal and that will determine whether we run a sprint or a marathon with our investing. The sprint means that you will get a fast return in a shorter time frame. The marathon goal means that you settle in for the long haul with your goals - returns - being several years or more down the track. The type of investment you choose must reflect your goal. And just as an athlete can choose whether he runs in a sprint or marathon, you too, can choose the type of investment you want; a quick return for a higher risk, or a slow return for a safer investment.

But you can get the best of both worlds if you choose a safe savings account with a high interest rate.

Unlike purchasing stocks or shares, there is very little risk with a savings account. The investor who wants a quick return will choose a product that gives him the

highest interest rate. He will make sure that interest is credited monthly so that he can take advantage of compound interest - that is, after the first month he gets paid interest on his interest. Watching those finances creep - or rocket - ever closer to your goal is as exciting as watching the athletes run their races in the Olympics. In fact it is even more exciting because it affects you personally.

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Michael Phelps will be trying his hardest to win 8 Gold Medals and the onlookers will be cheering him on. Excitement reigns - but all must wait until another few days before we can see if he breaks the record held for so long by Mark Spitz. Luckily, with term deposits, you don�t have to wait for a particular start time before winning. The gains begin as soon as you choose the product that suits you best and invest your money in it.

However, just as the Games have a finishing point beyond which no more gold, silver or bronze may be won, so some term deposits have a cut-off point. Some investment products are only available until August25th, the last day of the Olympics. If the investor is not quick with his investment, then that offer of good interest will close and it will be too late to purchase that particular product.

And just as athletes must research to do their training in the most efficient way possible, so does the investor need to research his product to make sure that the investment will return exactly what he wants. Reading the fine print and making sure you understand it is just as necessary to the investor as proper training is to the athlete.

With good training and diligent practice, the athlete is quite likely to gain something at the end. Even if not a medal, then the honour of competing in the Olympic Games is something to be valued. In the same way, the investor does his research and places his money in a term deposit to gain something valuable. Not a medal, but a return on his investment. But - unlike the Olympic Games - the investor can see that return coming to him not just during ten special days, but all year.

Records are made to be broken and every time the Olympic Games are on, there seem to be more records made in running, swimming or jumping. Those athletes who manage to break records are the medal winners. Everyone these days likes to see fast results in whatever they do. We like to get to places faster, so we build faster cars and planes. We like to fit more into our days, so we live at a faster pace.

Better still, we like to see our savings grow faster. Traditionally, this has not been quite so easy. But these days, there are many products on the market and each time a new one is offered, it has to have some special appeal to make it more attractive. This may be in the form of lower fees, higher interest or more features. Depending on your needs, you may choose lower interest rates to get certain features that you need. In other cases, you may prefer to seek out the high interest rate that some savings accounts offer.

To grow your savings in record time, you need to find a high yield savings account that offers an excellent interest rate, but charges no fees. And even more important than the actual interest rate offered is when it is both calculated and accredited. With most savings accounts interest is calculated daily and credited monthly. This is excellent because you then are paid interest on your interest.

Many electronic accounts give competitive interest rates, but some have a catch. For instance, if you make any withdrawals, you get no interest at all for that month, or if you fail to deposit a certain amount during one month, then interest is also forfeited. However, it is possible to use your automatic deposit feature so that you don�t forget to make a deposit.

There�s no doubt about it, the athletes will be doing their best to run and swim faster, jump higher and generally be stronger than their competitors during these Olympic Games. And those who are faster, higher and stronger will take home gold, silver and bronze. Some will end up being much richer due to lucrative offers from sponsors. They have invested their whole lives for this moment of glory.

The investor, on the other hand can start his run to riches at any time of life. He doesn�t have to be young, fit or strong to make a difference to his life financially by investing. And unlike an athlete, an investor can keep on investing and making money right into his old age. Of course the best time to start investing is when you are young, but that is not always possible. Not all young people have well-paid jobs - and they often have to pay off a car or home. But there is one big difference.

An athlete must invest his whole time and effort into training to have any chance of winning. An investor on the other hand, can make a smaller effort and still win. That is, the investor can save just dollars a week - or he may take a part-time job especially to invest that money. No one could hope to win a medal by training only on a Saturday. But an investor can work on a Saturday and invest that money in a high yield saving account or term deposit - and if he does that for long enough, he will end up with a sizeable investment at some stage in his life. So even if you are not faster or stronger than the athletes, you can be richer by some wise investing and just a little bit of hard work. It�s really worth it in the long run.

Many kids nowadays do not understand the value of earning and spending money. They were not taut that investing is necessary even if they are still at school. As parents, you play a crucial role in this area.

You should be able to teach your kids how to save. They should be able to understand the concept of money and investment as early as childhood. This will prepare them to learn money management, as they grow older and start to think about cars loans and mortgages.

Here are 5 essential tips that will teach your children how to save:

1. Your children should be educated of the meaning of money. Once your children have learned how to count, that is the perfect time for you teach them the real meaning of money. You should be consistent and explain to them in simple ways and do this frequently so that they may be able to remember what you taught them.

2. Always explain to them the value of saving money. Make them understand its importance and how it will impact their life. It is important that you entertain questions from them about money and you should be able to answer them right away.

3. When giving them their allowances. You need to give them their allowances in denominations. Then you can encourage them that they should keep a certain bill for the future. You can motivate them to do this by telling them that the money can be saved and they can buy new pair of shoes or the toys they want once they are able to save.

4. You can also teach them to work for money. You can start this at your own home. You can pay them fifty cents to one dollar every time they clean their rooms, do the dishes or feed their pets. This concept of earning little money will make them think that money is something they have worked for and should be spent wisely.

5. You can teach them to save money by giving them piggy banks where they can put coins and wait until they get full. You can also open bank accounts for them and let them deposit money from their allowance. You should always show them how much they have earned to keep them motivated.

The importance of money and saving is not something that is learned by children in one sitting. You should be patient in teaching them and relating the value of money in all of their activities. Children will learn this easily if you are patient and consistent in guiding them and encouraging them in this endeavor.

Everyone who trades on the stock market - and many who don�t - will be aware of the highs and lows experienced. When the price of shares is soaring everyone is happy, but when they start to tumble investors may start to get a little panicky and want to get out of that particular investment. Online investing is a bit like riding in the Tour de France - there are many ups and downs, but if you stick with it through the hard times, you�ll come out a winner in the end.

Even eventual winner Carlos Sastre knows that he will not win every stage of the Tour de France. He makes allowances for that and fixes his sight firmly on the end result. Sure, getting to wear that yellow jersey before crossing over the finish line might feel good. But it is not the most important part of the whole picture. Sastre trained hard and learned the correct strategies to come out winner in the long run. That�s what investors need to do when share trading.

Think of share trading as the course Carlos Sastre rides in the Tour de France. Some days there are steep mountains to ride up and other days the terrain flattens out to level - good, easy riding. So in share trading there will be the good times with shares soaring to new heights and hard times when things plunge steeply. Then there will be those times when trading levels out and there are no steep plunges. When Carlos gets to the top of his mountain, he expects the course to flatten out a bit before going down the other side. He doesn�t have a panic attack and stop riding when the going gets tough.

So with online trading there will ascents, levels and plunges over the course. If you have a financial goal, don�t start to panic when the plunge starts. Share trading will always have its ups and downs, but overall, the steady investor comes out on top.

Step 1 - Get a plan

Decide what you really want and focus on the most important goals � a car, holiday, retirement, or deposit for a home You might want the lot, but you've got to prioritise.

Estimate how much you can save by depositing funds at regular intervals, and how long it will take to get there. Establish a budget to make this happen and stick to it. The best time to start saving is now.

Step 2 - Minimise existing debt

Make regular payments off your cards or personal loans. Minimise your costs by taking a cut lunch to work � putting $5 aside daily can mean $1000 extra for Christmas.

Use layby during the year to shop at sales for Christmas presents rather than having a last minute spending blow out.
Cut bank fees by reducing the number of accounts you hold. Use cash instead of credit cards if you can�t pay off the monthly balance. Use a debit card if you find having a credit card increases your spending.

Step 3 - Maximise Your Savings

Even small things like putting your change into a savings jar at the end of each day can make a difference.

Put away a small amount each payday into your bank account and set up an automatic deduction so you don't have to think about it. Add any pay rises, bonuses, special payments or that tax refund.

Think ahead - is there a Christmas Club at work? If you put away $25 per week into such an account , it would mean $1300 in Christmas cash.

Savings are a security buffer to cope with unexpected expenses. As they build you will be able to think beyond day-to-day expenses and pay for larger things.

Step 4 - Set up separate savings accounts

Save for longer term goals such as a car, holiday or home deposit with special purpose savings accounts which are separate from your everyday transaction account. Special purpose savings accounts offer carrot and stick incentives (eg higher interest if regular deposits are made but penalties if money is withdrawn in a particular period).

When these accounts grow to larger amounts, move into term deposits, where there is limited access - and less temptation to spend them, leaving the growing interest to compound.

Popular new online savings accounts (accessible through an ATM and piggy backing onto your transaction account) pay top interest rates and cuts bank fees, while giving instant access for an emergency,. However, the instant access means they are not for the weak willed.

Step 5 - Know your finances

Savings for retirement are best made through superannuation because of the tax concessions. Make extra superannuation contributions from your pre-tax salary ('salary sacrifice'). This will increase your retirement pension � and choices.

Traditionally, men were the big earners in society. They received the best education and so were able to grab the best jobs. Further down the track women have moved into managerial positions, but often not for the same remuneration that a man would have received. While this creates a wealth gap between the sexes, traditionalism is fast going out the door and women are now both getting good jobs and being paid what they are worth. In fact, statistics show that the wealth gap between the sexes is closing rapidly - at least in western countries.

At the moment, women tend to leave money on the table when it comes to wealth creation, due to the fact that they are not so well educated about investing. They live longer than men, but they are often not paid as much, so this increases the wealth gap between the sexes. Where women have taken the trouble and interest to educate themselves in the area of wealth management, they have done a better job of making money than many men. This is due to their more conservative nature. They�ve worked hard to get financial and they don�t want to lose it buying risky shares. They buy something safe and leave their money there.

Men, on the other hand, tend to be more daring with wealth creation. They are not so careful about researching the companies they invest with and they buy and sell quickly in an attempt to chase the big money. But they get their fingers burnt more often than they make a profit. According to statistics, the number of wealthy women in North America grew by 48%, while in the same time frame, wealthy men only increased by 36%.

Another point in women�s favour is simply their nature. In general, they are more patient than men. This is an advantage in wealth management, because investments take time to increase and it takes patience to sit on the sidelines and watch them grow. Those who are impatient want to see faster growth, so they tend to chase the hot tips of the day. But in many cases, the cost of frequent buying and selling outweighs any advantage.

Most women can manage their day-to-day finances very well. In fact, according to some experts, they are highly skilled at budgeting and finding ways to reduce spending. This is really important, since women traditionally don�t usually earn as much as men do. Where their skills don�t match up to those of the menfolk is in the areas of investment and retirement savings. Nor do they understand financial terminology as well as men. But they are eager to learn and should make every effort to do so if they are to take full control of their financial future.

Reports show that many women don�t feel that money is necessary to be happy in life. And while this sentiment is admirable, it is also likely to cause them to have less money than they need as they get older and cannot work. If women were to work on building up their confidence in investing, they would find that the stress and boredom of handling money in this way would be gone and they would soon be able to see all the benefits.

Women have gradually broken down many male dominated barriers in the past; now they need to hone their skills in the area of money management and investments. But first they must change their attitudes. Money is not the be-all and end-all of life, but we do need a certain amount of it. And it�s only wise to work towards protecting your future. Women live longer than men, so they cannot expect to have a man around into their old age to take care of finances for them.