compounded returns r your only hope

To see a nice rundown of how patient investing in a tax-advantaged account can make it possible to either retire someday or at least cut WAY back on hours worked . . . http://www.tiaa-cref.org/public/products-services/ira/ira-can-help/index.html?tc_mcid=bn_3rd_2ndhalfira_112011

How am I EVER going to retire?

Do you have anyone on your shopping list who needs a little help saving up for the future? Somebody currently spending about 105% of his or her annual income and trying to put the rest on an ever-increasing credit card debt load?

Give them the book that asks the question too few are brave enough to ask:

HOW AM I EVER GOING TO RETIRE?

It's a "kindle" version, but you can download that app on your computer or mobile device. Why not give someone a gift this year that will REALLY make a difference? Get the E-Book Now

End-of-the-Year

As 2011 comes slowly to an end, what do you need to do about your savings and investments? As always, do what few others ever consider doing--think about where you are, and where you're going. Did you make the IRA contributions you promised yourself you'd make this year? If not, do it now before the "holidays" take that opportunity from you. Yes you actually have until next April 15th, but why not put at least half the annual contribution in now. Some people sell stocks at a loss to offset other gains or even reduce their ordinary income for the year--but, first, that has to be done in a taxable account and, second, do you really want to lose money on your investments if you don't have to?
Obviously, if you want to take advantage of charitable donations, those have to happen by the end of this calendar year, and, frankly, this always makes me feel better than any foolish tax-loss-selling.

Unit Investment Trust

If you don't like active management/frequent trading, and don't want to pay for management fees, you might consider investing in a UIT or "Unit Investment Trust." A UIT is usually a portfolio of fixed-income securities, either bonds or preferred stock, or both. There is a trustee charging some trustee/administrative fees, but there is no investment adviser trading the portfolio and/or charging management fees. While rising interest rates would push the value of your units down, there is no law that says you have to sell them just then. Of course, if you did sell them at that point, you would realize a capital loss. At least you can redeem them for their exact unit value if you do go that route, as opposed to having to sell them on the secondary market for whatever price the market wants to bid.

US Treasury Securities

So, if your credit score suffered a downgrade, how would that affect the interest rate you pay on a mortgage? It would increase that rate, correct? That's why it's a little strange to see that even though the US Treasury's credit rating was downgraded from AAA to AA+ this week, the yields are NOT going up. Why not? I have to assume that this situation scared the markets so much that people want the relative safety of US Treasuries at all costs. As they bid up the price of the treasury securities (T-notes, T-bonds) they push down their yields. It's called a flight to quality, and we've seen it a few times in the recent past. When the stock and/or bond markets look scary, investors panic and run to the relative safety of US Treasury securities. This causes interest rates to go down. Even though a credit downgrade should really have made them go up. Oh well. Wild times.

The SEC can help

Even though they are part of the federal government, surprisingly the SEC can be helpful. Investors will find all kinds of helpful information at http://investor.gov. Notice the "introduction to the markets," the "investing basics," and the "research and managing investments" links, to name just a few. Go ahead and do some clicking here. Remember that the SEC can provide information, but that can only help if investors make the effort and take the time to get that information. There are scam artists out there. They practice their evil trade only because they have more information than their victims. Which means if you arm yourself with information the sharks out there are going to have to keep swimming. Also, you can give yourself a little peace of mind knowing exactly what all these little "mutual funds" or "subaccounts" where you put your money actually, you know, are.
The saying "knowledge is power" has special meaning, remember, when it comes to your money and retirement. Happy studying.