Investing Guide

Savings will not make you rich, only smart investments do that.

The time to get interested in note investing is when no one else is.

The beginning investor: the first thing that the new investor must realize is that if making money with promissory notes was quick and easy, everyone would have already done it. Education and training are required to become a successful note investor. Since getting the education and training is hard work and takes time, most people will not do what is necessary to become successful. The result is that great investing opportunities awaits the person who has done the preparation. When opportunity presents itself, that person is ready to capitalize on it.

The key things needed to be successful: In order to become properly educated and trained, the beginner must focus on learning the most important elements; we will now discuss them.

Understand your own goals and financial objectives

Understand your own financial position today, and what it should be in the future

Understand your own tolerance for risk

Understand how much of your time you can allocate to getting educated and trained

Understand how much of your own time you can allocate to hands-on note investing

Understand what a promissory note is, and what are its main terms and conditions

Understand what a mortgage is, and what are its main terms and conditions

Understand what a deed of trust is, and what are its main terms and conditions

Understand what the applicable laws are, and how they impact the note transaction

The above mentioned items should be addressed openly, honestly and thoroughly before moving forward. They form the investing foundation upon which you will be building. If you skip one or more item, it will eventually come back to “bite” you. Take you time; talk to trusted family and friends who will “tell it to you like it is”. The one person you do not want to mislead or “fool” is yourself.

It is better to be approximately right than to be precisely wrong: As a new note investor, do not expect any transaction to follow all of the rules. In the real world, you will have to weigh and balance the pluses and minuses that each opportunity presents. You will not find the perfect investment opportunity.

Approach each promissory note investment opportunity like you are meeting a new person. Get acquainted with it; understand it; step back and look at its positives and its negatives. After you begin to feel comfortable with what you learn, see if it will fit into your investment world. Ask these questions before you make a lending decision:

Is this loan too large or too small to fit my needs?

Is this loan going to generate the return or yield that fits my needs?

Is this loan going to present too much risk and uncertainty to fit my needs?

Is the borrower someone that I can comfortably deal with?

Is the term or this loan too long or to short to fit my needs?

Is this loan located where I can monitor it comfortable?

No one takes better care of your money than you do. As you can see, you may need some professional advice at the beginning in order to avoid making a costly investing error. If you are penny wise and dollar foolish and do not get expert help at the beginning, your errors may cost you dearly. Just assume that getting help when you need it is like paying an insurance premium to protect you from a devastating loss.

In promissory note investing, understanding is more important than information. Investing without understanding is like playing poker without looking at the cards.

Lawrence Tepper specializes in:

Promissory Note and LLC, Valuation, and Appraising
Expert Witness—-Expert Consulting Services

EDUCATION AND TRAINING

Law Degree /Accounting Minor University of Denver
Colorado Real Estate Broker– Promissory Notes Specialization
Certified Commercial Investment Member From National Assoc. Realtors

PRACTICAL EXPERIENCE
35 + years of appraisal and valuation experience for Attorneys, CPA’s, Estates, and Financial Planners.

http://promissorynoteappraisers.com/

Most of the Americans are maintaining a retirement plan sponsored by their employer and these pension plans are known as the 401k plans. While considering the withdrawal in this plan, you have to proceed carefully. Each withdrawal in this plan means that you are sacrificing the benefits of the contribution in the previous 401k plan. These plans follows two set of rules in which one of the rules is included in IRS Code 401k section and the other rule is fixed by the company which gives the plan and also by the account administrator.

Even though some benefits are provided by IRS, the plan provided by the company will come with its own rules which affect the general functionality and the benefits of a 401k account. So you have to double-check and evaluate the account details to know the prescribed things. Some of the investors think that their account also must allow the things permitted by IRS which is not possible. You should know about the risks involved in the investments related to the retirement. The investments made in 401k plan will be your own property and due to this you have complete control on it even though you would like to do an early withdrawal. Continue reading ‘Withdrawal Rules of 401k’ »

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Prior to the 20th century, the majority of people lived and worked until they died, on their family farms. With industrialization came urbanization and the specialization of labour. Companies were formed, labour unions were established and eventually the concept of companies providing a lifetime pension to retired workers was implemented. Along with this came government retirement benefits. With long periods of relatively stable interest rates and moderate inflation, companies and governments were able to establish actuarial calculations for required capital savings to pay retired employees until their demise. However, today’s economic environment is challenging the ability of governments and individuals to fund a respectable retirement. It can still be accomplished, but traditional strategies and assumptions need to be cast away in favour of more savings discipline and dividend oriented investments. Continue reading ‘Retirement Is a 20th Century Concept – But It Can Still Be Done’ »

Let’s say you had a pretty good idea that if you bought 10 jars of pickles you’d make a lot of money, because from what you have been reading the demand for pickles was going to go up in the future. You pay fifty cents a jar, stash the jars in your pantry and sure enough — the price of pickles doubles and you make a $5.00 profit.

But, supposing you have to have 100 jars minimum to trade. What are you going to do? The answer is to find somebody that has 90 jars and “go in on the trade” with them. Both of you share in the profit when the jars are sold. This is gives you the “leverage” you need to sell pickles in a market you could not have entered otherwise. Continue reading ‘A Tale of Ten Jars Of Pickles: Six Advantages of Futures Trading’ »

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Monthly income investments are a way to make sure there is still money coming in even if there is no longer any job to provide for a steady monthly income. This is especially important for those who just retired.

The economy has driven many people to lose their jobs, not because they are not good at it, but because the companies folded up or the companies retrenched in an attempt to stay afloat. And then there are others who had to retire or have reached the retirement age. It really does not matter what the reasons are, the important thing is to make ends meet. One way to do this is to get into monthly income investments. Continue reading ‘Monthly Income Investments: A Logical Move to Make Ends Meet’ »

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In last article we talked about SIP (Systematic Investment Plan) for mutual fund investments and the power of SIP in investment strategies. Now in this article I am going tell you about the tax benefits and tax structure related to SIP investment in mutual funds.

Any person in this country is bound to pay income tax to the government and hence, it is very important to understand the tax factors and how income tax applies to your investments and on the returns.

What Is The Tax Structure On Returns Generated With SIP Investment In Mutual Funds? Continue reading ‘Income Tax On Returns From SIP Investments’ »

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A lot of people have suffered sizeable investment losses in their individual retirement accounts (IRAs). They wonder if they can deduct these losses. Well they can. But they better be desperate for the money. Here’s how it works.

*The basis and basics of taxable gains and deductible losses:

A taxable capital gain and a deductible capital loss comes from selling an investment for more (a gain) or less (a loss) than you paid for it. The key words are ‘selling’ and ‘paid’. The amount you paid for your investment is called its ‘basis’. Until you sell, your gain or loss – i.e. the difference between the current value of your investment and its basis – is neither taxable nor deductible, whichever is the case. Continue reading ‘How and When Can You Deduct a Loss on Your IRA Investments’ »

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Silver is one of the best-returning assets of the last 12 months. I believe the recent run in silver is just the beginning. Keep in mind, during similar financial times (for example in the 1970s), silver prices shot up 3,733%.

You probably already realize one of the world’s best long-term investments right now is silver. But did you also know that you don’t need to buy ‘investment’ silver in order to take advantage of this trend? To learn more, keep reading.

One reason for silver’s surging investment potential is simple: Silver is real money, and money talks!

With government spending getting out of control, silver is where the smart money is going. Silver is also a great way to actually make money go further, instead of the wilting dollar. Continue reading ‘How to Make Money in Silver, the Future of Silver Prices’ »

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Simple advice can create problems that are not always simple to fix. One example is the advice that an investor’s age plays a central part of their investment strategy and asset allocation (for example standardised high risk strategies for young investors and conservative strategies because you are already, or close to being, retired). This advice is too generic and the individual’s circumstances and appetite for risk must be taken into account. If you follow this type of generic advice you may find yourself having sleepless nights and worrying needlessly about either investments considered too risky or of running out of money.

Today’s 65 Is Not Yesterday’s 65

A lot of investment advice is predicated on what might be called a life-cycle theory of investing. This is an idea that people go through predictable stages of their financial lives, accumulating more assets than savings in the early years, saving more in the high-earning years of middle age, and then very little, if any, saving throughout retirement. Continue reading ‘Investing By Age’ »

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?Mutual funds are fast becoming one of the most favoured options when it comes to building a portfolio of funds for retirement purposes or creating a fund portfolio that can easily be liquidated to take care of future education fees for children. Investments in mutual funds are safer than single stock purchases because with mutual funds, each type of fund comprises a specific group of stocks. This is a kind of in-house diversification in itself. In individual can purchase mutual funds by either approaching a broker for advice and or purchase or the individual can instead buy the funds online themselves.

For an online purchase of mutual funds, an investor needs to set up an account, typically they can download the application forms and then scan these back to the fund platform management team, they would be investor also has to mail the hard copy to fulfill anti money laundering requirements. Once the account holder has submitted the correct documents the account goes live. The client then starts the investment process by transferring money from his personal account to the new fund manager’s bank; subsequently the investor can select the exact fund he wishes to purchase. Continue reading ‘Buying Mutual Funds Online’ »