The 10 Best Low Risk Investments for High Return

best low risk investments with high returnThe first time I stood at the top of the high dive at the rec center pool, I was a nervous wreck.

I never realized how afraid of heights I was until that moment.

For many that have never invested before, they feel this same apprehensive feeling.

With the rising cost of living, it’s imperative that we invest (preferably with the lowest risk possible) to generate high yield returns.

High rates of return on your investments are wonderful because it means you don’t have to invest as much capital to reach your investing goals. Yet the higher return you want the more risk you take to get that return.

As you near or enter retirement (or if you are managing investments for your high school senior’s college fund) your appetite for risk drops precipitously. You simply cannot afford to see a huge drop in the market right before the time you need to begin withdrawing funds from the investment accounts.

Instead, you need to shift to low risk investments. These types of investments will generate a lower return because you aren’t taking as much risk, but you’re okay with that. At this time capital preservation is more important that astronomical growth rates. You need to know your account won’t drop 25% in a year and severely impact your investing goals.

[Read more...]

Dollars and Cents: Should We Cash Out Our Annuity?

It’s time for another edition of Dollar and Cents. This is where I answer one of your questions.

If you have a question, either use the contact form on the blog or use my Facebook Fanpage.

My wife and I were “sold” a joint annuity several years ago by an advisor that we’re no longer working with. We currently have a sizeable gain but we’re not very confident in the insurance company that holds the annuity. We’re considering cashing the annuity out. Does that seem like the right thing to do?

[Read more...]

Dollars and Cents: Buy Home Now or Keep Renting?

It’s time for another edition of Dollar and Cents. This is where I answer one of your questions.

If you have a question, either use the contact form on the blog or use my Facebook Fanpage.

My husband and I have found our dream home, but we are dealing with a hard headed real estate agent who currently owns it. She has it on the “hidden” market but is too high for us at this time.

Our house is currently on the market, we are having cold feet and our debating taking it off. Do you recommend us socking away more on our mortgage, we could pay a extra 400/month and pay off in 6 yrs while we are waiting on her to hopefully reconsider on the “dream home” or try to sell and see what happens?

Which would possibly send us in to renting and saving that way. I hope I was clear enough on my question.. We don’t want to make a HUGE mistake.. Hope to hear from you soon.. Thanks so much for the awesome site!

We are parents of two boys, another reason I love to read House of Rose :) we have one that strips down after preschool into his underwear.

[Read more...]

Dollars and Cents: Should I Use Old 401k to Pay off Credit Card?

Welcome to the first installment of “Dollars and Cents“. This is a new segment where I’ll be answering reader questions using video with a bit of humor.

It’s part of my life mission of making personal finance fun. :)

If you have a question that you want answered, be sure to use our contact form here.

Here’s the first reader question:

So I am currently in college and working full-time. I took out student loans to cover the cost of tuition however, I had about $1300 in expenses that were not covered by that and had only a few days to come up with the funds. I put the charges on my credit card.

I have a 401K from my previous employer that I was planning to rollover into a Roth Ira. However, I am wondering if it would be better to cash out the 401K to pay down the credit card and then put the remaining balance in the IRA. I know that the fees/taxes are probably ridiculous. I just don’t know if it is better to do that or to leave the balance on the credit card and pay it down over several months.


[Read more...]

How to Get a Personal Loan Approved

get a personal loan approved bad creditIn some cases, a personal loan is desirable.

You may want to start a home business, or you may want to borrow for a vacation, or you might have some other use for the money.

A personal loan — usually unsecured — can provide you with a little extra cash to help you meet your goals.

Actually securing that personal loan can be a bit difficult, though.

Here’s a few ways on how to get your pers0nal loan approved.

And if that doesn’t work, we have offer some other options, too.
[Read more...]

4 High Rate of Return Investments to Add to Your Portfolio Today

high rate of return investmentsBefore you focus on high return investments, or investing of any kind, you should make sure you are not paying high interest on debts.

If you’re paying more in interest on debt you owe than you can earn through investments, you’re going to immediately lower your return on investment.

In other words – the interest you save by reducing debt is higher than what you are likely to earn through investing.

For example, if you’re paying 18% interest on credit card balances and will only receive 9% return on your best investment – it’s costing you 9%.

The first step to any investment plan should be to pay off all high interest debts.

If you are debt-free, or have only low-interest debt, you have some options for easy to manage high return investments, including high interest savings accounts, peer to peer lending services, starting a business, and low cost index funds.

Whichever methods you choose, you’re best results will come from setting up automatic deposits for both saving and investing, according to a schedule you can comfortably afford.
[Read more...]

Start Saving For Retirement Today: Best IRA Online Brokers

best ira online brokerAs a financial advisor one of the biggest frustrations about our industry is for the young investor that want to get started investing into an IRA.

Why is it frustrating?

Because most big firms don’t want to help new investors.

Otherwise known as “small investors”.

Yes, you can walk into an Edward Jones office and open an IRA, but you’re going to have to pay an annual custodial fee.

They aren’t the only ones.  All big brokerage firms will charge $40-$75 per year just to have the account open.

In addition, some firms will charge you a small account fee if you don’t generate enough commissions or fees or the year.

Over and above that, you’re either going to have to pay a commission for each mutual fund, stock or ETF trade that you place or you have to pay an advisory fee which will be anywhere from .75% to 1.5% of your account balance.

Cha-ching!

As you can see, yes you can open the account with a big brokerage firm, but they’re going to gouge you in fees making it nearly impossible for any new investor to make any money.

So what’s the alternative?
[Read more...]

Investing With Lending Club – So Easy You’ll Freak

Is Lending Club a Good Investment

This is a follow up post to the interview that I did with Lending Club and their operation. You can read that here. The below is a transcription from the screen cast below.

Hey everybody.  Jeff Rose, goodfinancialcents.com with a special treat today.  I want to do a little screen cast to talk about an investment strategy or an investment option that I have been fairly partial to over the last couple of years.

I want to introduce to you for those of you who haven’t heard of it.  I don’t view this as a supplement to investing in the stock market and individual stocks, mutual funds, etc., but I definitely think that it could be a complement or something to add to your investment pie.  That’s why I want to talk about it today.  So without further ado, what I am actually talking about today is what is called Peer-to-Peer lending or P-to-P lending as it sometimes is abbreviated.

As you’ll see here, jumping the gun one of the top peer-to-peer lending companies is Lending Club.

First I want to go to Wikipedia and just read to you what exactly peer-to-peer lending is.  As Wikipedia states, it says

peer-to-peer lending is a certain breed of financial transaction, which occurs directly between the individuals or peers without the intermediation of a traditional financial institution.  Person-to-person lending is for the most part a for-profit activity that distinguishes it from person-to-person charities, person-to-person philanthropy, and crowd funding, which also creates connections between donors in recipients of donations, but are non-profit movements.

Basically, what peer-to-peer lending is or what I think of it is we have all had the family members or friends who have asked us for money.  Maybe you haven’t; I know I have been in that situation on more than one occasion and it’s not a very fun situation to be in by the way.  Essentially peer-to-peer lending is you have individuals that need to borrow money for whatever reason.
[Read more...]