Safe Investing has become a priority for many investors following the Global Financial Crisis of 2007-2008 which caused so much stress and heartache.
Retirees have seen their retirement nest-eggs slashed or frozen.
Homeowners from the U.S.A. to Ireland, Dubai to Spain have seen real estate prices slump.
So what precautions can you take to manage risk when investing?
The novice investor needs to ask these questions when seeking safe investing;
So where do you look for reliable, unbiased advice?
Newspapers and Financial Magazines, Financial web sites, Financial Newsletters, Real Estate agents, Stock Brokers, Financial Planners, Fund Managers?
There are plenty of advisors and tipsters out there just itching to earn fees by helping spend your money.But always remember...when it comes to Stock Investing Advice... It's your money at stake!
The closer you get to retirement the more safe investing becomes a priority and the more likely you are to be asking yourself;
Planning well in advance for your retirement will help you avoid the nasty shock of finding you haven't squirrelled away enough. While safe investing will help you protect the nest egg that you have saved.
...Property values always go up in the long run, don't they?
...How can you recognize an real estate Bubble?
...How much debt is too much when buying a property?
...Should I sink all of my savings into real estate? Is that safe investing?
In 1968 Darryl R. Francis (President Reserve Bank of St. Louis) called gold "the barbarous metal".
In 1971 the U.S. government broke the US$/gold peg because "the supply of money...should not be dependant on... the supply and demand of... just one commodity".
Still, gold bugs are adamant that gold is the only "true money" and stage a flight to safety in times of global and economic crisis... namely times of war and hyper-inflation.
For others investing in gold is simply a part of sensible asset diversification.
Gold coin investors can buy either:
Bullion coins... which are priced according to fine weight (plus a small premium).
Numismatic coins...rare coins sought by collectors with a value dictated by supply and demand.
So do they belong in the portfolio of the average investor?
Silver investors have been rewarded handsomely over the past decade.
From being valued at under U.S.$5.00 in 2001 it soared to hit $48.70 on April 28th 2011.
However, the "noble metal" hasn't always been so kind to those investing in silver.
Investing in foreign exchange, or "forex" market is considered by some to be a risky proposition, but that's because most consider it an easy path to overnight riches... It's not.
As with any investment, foreign currency investing requires education, discipline, and the use of sound money management principles. In other words, safe investing means foreign currencies should constitute only a very small percentage of your overall investment portfolio.
Also, the use of automated trading software, or "forex robots" can help minimize risk. They work tirelessly on your behalf extracting profits from the forex market.
Not all forex robots are alike, however. Scam products promoted by unscrupulous marketers prevail in the forex arena. These robots typically do not deliver the results they promise. The use of robot review sites can sometimes help you find quality forex robots versus those that don't deliver.
Commercial investment properties with AAA tenants signed up to long leases, high cap rates (rental incomes) and where all outgoings (maintenance, property taxes, insurance, etc) are paid by the tenants (also called "NNN" or "net, net, net") can be soooo sweet.
But there are risks aplenty if you don't do your due diligence, don't identify local market conditions, don't verify that the numbers stack up, and don't seek out expert advice from commercial property experts and legal consultants.
Many financial advisors recommend that bonds have a place in most well balanced, diversified portfolios.
What is a bond? It's a "debt security", or in plain English an I.O.U.
Bonds are especially important for retirement planning as they can provide a safe, predictable income stream sheltered from the volatility of the stock market.
There is often a flight to bonds during financial crises when investors are more worried about "return of investment" rather than "return on investment".
However, the "security" of a bond is only as good as the security of the issuer of the "I.O.U".
The Internet Revolution, Globalization, and the Global Financial Crisis created the perfect storm... Old Business models are being destroyed and jobs are disappearing offshore at an astonishing rate. Analysts warn that "China and India are poised to out-think us and out-compete us by their sheer numbers" and that "there is no job security now".
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Who Ate My Lunch?