Finance Book

Professional asset management, investment management, often refers to an expensive financial service big financial firms offer other big companies or rich folks. What about the little guy who wants to invest money and needs help in the asset management department? Never fear, you CAN get help investing money, even if you’re on a budget and clueless.

Large investment management firms aren’t interested in you unless you invest money in vast quantities. But other asset management organizations are. These investment companies are called mutual fund families or mutual fund companies, and they offer professional investment management to average folks. You don’t need a bundle of cash to invest money here; nor do you need to know a lot about investing money.

Mutual fund families offer a variety of different funds, all of which are professionally managed for the benefit of those who invest money in them. Few investors have the investment management skills necessary to oversee a portfolio of investments. Enter … mutual funds.

Let’s say you’re thinking about investing money in bonds to earn a higher rate of interest. Are you capable of selecting bonds to invest in? Or, you think stocks in emerging countries like Argentina, China, and North Korea would be a good investment. Are you confident that you can invest money in these markets on your own?

How about putting together a well-balanced portfolio of stocks, bonds and money market securities? Can you handle the asset management? With mutual funds you have all of the above at your finger tips, generally at a modest or reasonable cost.

More examples of what you can invest money in through mutual funds: tax-free bonds and money market securities, growth stocks, real estate stocks, gold stocks, energy stocks, high-yield bonds, intermediate-term bonds, and balanced funds that invest in a combination of stocks, bonds and money market securities.

When you invest money in a mutual fund you own a small part of a large portfolio of investments (securities). In a stock fund, for example, you don’t actually own the stocks in the fund’s portfolio. You simply own shares in the whole package. If the stocks the fund owns go up in value, you make money. If they fall you lose money.

If you want to make money in the world of investing and don’t know much about investing money, get professional help you can afford. Mutual funds offer asset management the average investor can afford. Look no further.

By: James Leitz

Erlend Peterson’s title of chapter one is: Rich or Poor, It’s Your Choice. Throughout the book Peterson gives the reader just that – a choice whether or not he/she chooses to become rich (financially) or struggle without wealth. He claims that “most of the people around you will continue to make the wrong choices.”

Not wanting to be classified as “most of the people” I was eager to delve into “Rich by Choice” to see if, according to Peterson, I was on the correct track. I was also enthusiastic in learning new ways of creating or sustaining wealth. Peterson did not let me down.

One thing Peterson is clear about is that being rich is having $2,000,000 or more in liquid assets – cash, mutual funds, annuities, stocks/bonds, and the cash value of a life insurance policy. It does not mean a huge house, a new expensive car, nor does it mean taking long vacations. Basically, what it does mean is the investments can be sold for cash or left to grow to generate income. Peterson also adds that real estate, which has a net profit of 20% or more, can be considered as a liquid asset.

Peterson’s “Rich by Choice” is a simple tool that is concise and accurate. If using the seven-step plan presented by Peterson, one can’t help but be wealthy. He presents plans for people in the 20-40 year old range with earnings of $40,000, $70,000, or $120,000 per year. His number one step, one that is repeated in most wealth sustaining concepts, is to invest a minimum of 10% of all income. Using charts to prove the simplicity of the concept, Peterson maps out the process using his seven-step plan.

But, this book isn’t only for those in the beginning stages of their life-time financial freedom. Peterson also addresses it’s never too late to start financial planning – yes, even if you are over 50, and/or near retirement age.

In “Rich by Choice” Peterson encourages and motivates readers to look at personal financial practices. He further prompts the reader to set long-term financial goals and put the seven-step plan into motion. How easy is that? It is very easy – it just takes desire and determination to achieve.

By: Irene Watson