Currently viewing the tag: "investing"

strategies for savingTraditionally, it is not recommended that one put money intended for saving into any type of investments. When you invest money into bonds, stocks or other long term investing, you have two problems. 1) The money is not “liquid,” or easily available for emergency situations, and 2) the risk of loss potential is unacceptable for funds that you are counting on at a moment’s notice. This is especially true when considering the fact that the funds may be necessary if there a job loss, and dips in the stock market often seem to correspond with increases in unemployment.

While much of this is true, I beg to differ with the traditional idea that all your money for an emergency fund has to be tied up in a low interest savings account. The following are some tips and ideas for a different option.

1) Pimco Total Return Fund (PTTDX)

If you are not familiar with PTTDX, you might want to check it out. They focus their business on investing in debt securities that are investment grade, also known as bonds. These are generally considered to be safe investments. For example, an investment of $10,000 in PTTDX made 10 years ago, would currently be worth over $17,000. The other factor to consider is that during the recession years, in the late 2000’s, this fund actually remained fairly stable. There were very few losses throughout 2008, and then from 2009 into 2013 the fund made a strong recovery. To this day, the fund manager and penny stock newsletter owner Cameron Fous is famous for his knowledge on capital preservation.

2) Large Cap Mutual Funds or EFT’s

This can be another option to invest in that carries minimal risks, but does bring in fairly good returns, as they invest your money in what are called “large cap,” stocks. A large cap stock is usually a large company that is very well know and well established. Some examples of these type of companies would be places like; Apple, Microsoft, Disney, Goggle, and others. They usually pay out regular dividends to investors. However, this is a bit more risky than the PTTDX as the funds will and can lose value when the economy is experiencing difficulties. As it is very hard to identify the best penny stocks, using a mutual fund eliminates the need to research individual stocks.

3) Roth IRA

OK before you say anything, hear me out. This is probably the most outrageous suggestion, but there are a few good point here. First off, you don’t want to put 100% of your emergency fund in this, as a Roth IRA is not exactly liquid. In fact, my Roth IRA can’t be accessed without a certain amount of paperwork done to actually withdraw the funds, as opposed to a simple bank withdrawal. With that aside, what you would do is to have a small amount of your emergency money in an easy to reach account. This would then carry you over in an emergency until you could access the funds in your Roth account.

Bottom Line: Times are Different

An emergency fund is a basic, fundamental necessity, and will continue to be. But with the speed of fast transfers, debit and credit cards, there is really no need to keep you entire emergency fund in cash savings. For myself personally, I try to have about a month’s income in my checking account. Then I also have a credit car account with a limit of about $13,000. So basically, there really is no situation where the couple days that it might take to access the rest of the emergency money really won’t be an issue.

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Current Stance of Crude Oil Prices

Current crude oil stock commodities recently plummeted and concern has become apparent by investors because the outlook of consumers demanding crude oil. The more the U.S spending data increases, the further the crude oil stock plummets. On European morning trade, U.S. delivery of crude oil in August traded at $105.62 per barrel. That’s down 0.21%. Thursday, June 12th, 2014, prices dropped again by 0.62%. It is predicted that the future of crude oil was bound to reach $103.59 per barrel, the same as June 12th, 2014. On Thursday, June 26th, 2014, crude oil futures dipped lower, but the dip can be blamed on the crude oil export values in Iraq and the president Obama’s administration’s plans to lift a ban on two oil companies and allow both to sell internationally. Along with those few factors, the crude oil demand in the U.S have low prospects at the moment, but it’s predicted that the falling prices and stocks are temporary occurrence. A large portion of future crude oil price growth is expected to arrive from India, China and Asia; new emerging oil markets.

investing in crude oil
Reasons to Invest in Crude Oil, Even With Falling Prices

The current falling oil stock may be a sign for investors to dive in and grab the opportunity to buy stock alerts while the prices are lower. These major oil companies have fallen in price: ConocoPhillips (NYSE: COP), Occidental Petroleum (NYSE: OXY), and Chevron (NYSE: CVX). There are a few reasons why investing now would prove beneficial to an investor’s future. Both the U.S. Energy Information Agency and the International Energy Agency predict that the demand for oil should exponentially increase in the next few decades. Instead of seeing the fall as a reason not to purchase an oil stock, investors should see it more as an opportunity to buy.

Strategies to Invest In Crude Oil

Exposing your investment to the price and performance of crude oil without having any association with an oil rig is the best way to make money off of oil, especially with the help of a identifying the best penny stocks from a good trading newsletter. In the United States Oil ETF, you can buy a stock and not have to earn any oil. The fund is based off of the future of the crude oil, contracts of other oils, petroleum fuels, and gases. Oil ETF also has a simple trade because an investor doesn’t have to buy individual stocks. With oil companies such as ETF, you can purchase one stock at once price and therefore save on commissions.

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