1. Before making the investments determine the amount you are looking to generate from them. Add all the earnings you will be having from different sources; for instance add up your Social Security, pensions and every other guaranteed payment. The next step should be subtracting the amount obtained by adding those guaranteed payments from your monthly budget; the amount your get as the result of the subtraction is the amount your will be requiring to earn monthly from the investments.
2. Next, calculate what percent of money you will be requiring to have from the portfolio for attaining the monthly earning goal. For example: you posses $100,000 as your portfolio and you require generating $200 every month; this means you will require 2.4% as annual return for meeting your goal.
3. Visit your bank and gather information about currently available CD (certificates of deposits) rates. CD is one of the best methods available for generating a monthly income; they have been insured by FDIC for up to the amount of $250,000.
4. You can also opt for investing in mutual funds. The best option would be the mutual funds containing dividend-paying stock. This option is particularly helpful for individuals who need to earn bigger amount from their investment. It’s true that stocks come with more risk compared to the CDs; however, if you stick to the blue chip organizations, you will be at much lesser risk of losing your money. Mutual funds include several stocks, which pay dividends. These dividends get passed to account holders as monthly payment. Before investing in mutual funds, you must conduct a thorough survey on your own. Contact at least 3 to 4 mutual fund agencies and obtain their prospectus dividend stocks. Select the mutual fund only after reviewing the prospectus carefully.

Due to this reason, when the market as well as the politics of a country is in a state of stability, the price of platinum tends to be quite higher than gold. Most times, the price of platinum tends to be double that of gold. When the economy is volatile, gold prices generally rise, and at the same time the prices for platinum falls, due to decrease in demand.

Platinum has several other factors on which its price is decided. It is used in many major industries, and is considered an industrial metal just like silver. It is most used in automotive catalysts used to lessen the hazard from emissions. The demand from the automotive industry is thus quite high.

Second to use in automotive catalysts, platinum is highly in demand in the market for jewelry. Most of the rest of the platinum mined in a year is used by petroleum and chemical refining catalysts as well as the computer manufacturing industry.

All these factors affect the price of platinum.

Since the auto industry is the most heavily reliant on the metal, the sales and production numbers of automobiles are largely the deciders of the prices of platinum. The latest legislation related to “Clean Air” and other laws against emission of pollutants may result in automakers installing more catalytic converters.

This could increase demand now. However, in the last couple of years, we have seen auto makers in the US and Japan turning more and more to recycled auto catalysts, and also increased use of palladium, a sister group metal to platinum, and sometimes less expensive.

Russia and South Africa has the only heavy concentrations of Platinum mines. There is a possibility of agents acting like cartels, which could lead to artificial rising of platinum prices.

The huge array of factors serve to make sure that platinum is definitely the most volatile among the precious metals. You can invest in platinum at the New York Mercantile Exchange ( N Y M E X ) and the London Platinum and Palladium Market. There is also the spot market.

The commodities market was quite difficult to access in the past as it involved either holding the commodity directly, or making complex investments in futures. However, the huge number of commodity ETFs coming up in the market has resulted in making it possible for the small investor to invest in a range of commodities, and also diversify the investments.

In today’s market, bets are enabled using commodity ETFs on the prices of natural resources such as precious metals like platinum, uranium, food items such as milk, corn, as well as other commodities like timber.

Commodities have been given a rise in importance. The new asset class is being recognized as suitable for diversification benefits. The prices of commodities are largely not connected with the ups and downs in the financial markets. But this depends on the type of investment. The exact nature in which the commodity ETFs invest is an important factor.

There are various ways in which commodity ETFs invest. There are some commodities ETFs that invest in a direct holding of the physical commodity, and store it in facilities the fund controls.

There are other funds that invest in a group of companies producing the commodity. This exposes the investor to risks similar to the stock market.

Some others have investments in the commodity’s future contracts. These are rather difficult for the average investor to fully understand.

Depending on the specific commodity, each approach has several pros and cons each. It cannot be said easily which approach is better.

What is important here, though, is that investors should make sure to study the commodity ETFs holdings with a lot of care, and understand the exact nature of the fund before buying.

There are two types of options that are used in trading are – ‘call option’ and ‘put option’. The call option permits the investors to purchase stocks at their strike price prior to the option expiring. The Put option allows investors to sell stocks at their strike prices within the duration of the option.

Stocks give the buyer a portion of a company’s ownership. But options are different, they basically give the buyer a chance to buy or sell a stock at a certain price within a designated period. An option transaction is always between two people, seller a buyer.

An option basically gives you the right, not the obligation, to buy or sell a particular stock at a pre determined price within a designated period. Options are superbly versatile and thus quite powerful. They make it possible for investors to adjust or adapt their positions according the exact situation that arises. As long as you know what you are doing, you will find options to be a dynamic and even fun investment.

CommSec (Australia) . . .

CommSec won the Best of the Best Award from the Money magazine. The firm won in the category “Best Feature Packed Online Broker”. Also, CommSec fared well with bronze medals in an additional three categories such as Cheapest Margin Loan, Best Contracts for Difference Provider as well as the Cheapest Online Brokers.

Netwealth Investments Ltd . . .

Among the cheapest online brokers in Australia, netwealth investments ltd offers free investor access to resources such as ASX Quotes, stock – charts and much more. The ASIC or the Australian Securities and Investments Commission has issued a Australian Financial Services License for the company. The APRA has issued a Registrable Superannuation Entity status to the company as well. The IFSA or the Investment and Financial Services Association recognizes Netwealth investments Ltd company as a member.

Bell Direct (Australia) . . .

Bell Direct has been at the receiving end of the Best of the Best Award by Money magazine in 2008. The award “Cheapest Online Broker” went to the company. The SMILES award or the Smart Investor League of Exceptional Service was given to Bell Direct in Nov 2008.

Investing according to a written plan may not be as exciting or adventurous as trying to time the markets, but there is more likelihood of making more money if you have a plan.

Your plan or policy for personal investment should be addressing the following main points . . .

Objectives and Goals . . .

What are you trying to accomplish? Find this out, and include this in your plan. “Beating the market” is too vague. This could be a cool $ 1 million for retirement, or a $ 100, 000 for your kid’s college fund.

Risks . . .

Find out what risks are relevant to your portfolio and you. If you happen to be a thirty year old trying to save money for retirement, volatile markets should not be considered a risk. Inflation, however, is the bane of any long term portfolio and significant risk.

Appropriate benchmarks . . .

Make sure you set benchmarks suitable for your portfolio. This will help you measure how successful your portfolio, the individual funds and managers and the asset classes are.

Asset allocation . . .

Make sure you have decided the exact percentage of the total portfolio that will be allocated so that the goals you have set be accomplished, and the relevant risks. Decide the percentage allocated to various devices such as high yield bonds, US bonds, international stocks, US equities and others.

Diversification . . .

Diversification is another important factor. You have to allocate to different classes of assets and diversify within each. For instance, within stocks, you diversify into small, large and mid caps.

During the beginning of the April, a dozen teams of business school students gathered in New York to participate in the program for Impact Investing. All the students’ belonged to reputed business schools of Britain and America. All the students had set up a model to show how impact investing idea will work as a chief drive force to channel the invested funds into a socially responsible mission. The first place was secured by the students of Kellogg MBA School who demonstrated how the invested finds can be utilized to improve the grain storage and grain distribution all over India.

The business school student group from Kellogg MBA School had put up a plan where they predicted to make an invested pool of funds that will worth about 17 million dollars. This fund will then be used to make storage silos that will serve as repositories of food grains in India. The storage silos will be made in the bread belt in India, which will offer a rate of return equal to 19 % to the investors not just for 5 or 7 years, but for a period of 15 years. The investment will act as a booster for the local farmers and shall be responsible for generating employment in the agricultural field.

There were business school directors at the program and one among them is Mark Milstein, director of Center for Sustainable Global Enterprise, which is subsidiary of Cornell Johnson School of Management who believes that impact investing can actually make the financial crisis of the world reduce. He further said that the traditional business model has been proved erroneous and hence these creative ideas will foster social welfare and business development simultaneously.

After all one need to know that venture capital funding is a form of investment and not philanthropy. Even the venture capitalists need to look for the realist projection of a business idea before funding. The pool of funds offered on the finalization of deals may look like huge donation for a typical individual and they will be prompted to make business ideas soon. But this sort of funding is not for the run-of-the-mill businesses. The investors in case of venture capital funding are confronted with several questions, all of which hinges on their benefit. On the firsthand they are required to set the objective which demands a decision whether the throughput needs to be maximized or the quality needs to be optimized.

The fear of venture capitalists makes the screening of business enterprises tough as they are checked thoroughly for mistakes. The projects need to fit the investment proposal perfectly. The prime fear that makes the investors drawback in finding is the team work. There are several factors like the consensus before the funding and the type of decision making and the culture within a company that can ultimately affect the teamwork. Venture capital funding is after all a making of synergy through a tem work between the entrepreneur and the investor. In case the decision making process of a firm is not matching with that of the investor than the tem work will not be fruitful.

Finally the business model needs to be a threat for the existing market. Only then investors can be free from the worries. This demands an entrepreneur of a start-up firm to show the uniqueness of his business. Else the entire homework will go in vain.

On needs to know that this sort of funding is in true sense a partnership where both the partners look for their mutual benefit. Not all of the business ideas sprouting out of your mind can bring you funding to go ahead.

The basic attraction about premium bonds is the monthly draw. There are close to one million numbers that are chosen at random. The highest prize winning amount is a million pounds, which is given only to one bond holder. More common amounts given out are 100 000 pounds given out to four, and 50 000 given out to seven bond holders.

The number of prizes increases as the prize money decreases, till it reaches the minimum amount of 25 pounds, given out to 1.6 million bond holders. No tax is entailed on amounts won as prizes in premium bonds.

How exactly is this different from a, lottery, for instance? Well, the odds are better in a lottery. For example, the National Lottery gives you a chance of one in 14 million to win it with a one pound stake. The chances of winning any prize if you have just a pound premium bond are 1 to 24,000.

But in a lottery, if you lose, the stake you put in is also lost, which is not the case with premium bonds. The sum you have as a bond transfers to the next month’s draw. This is a difference that has to be appreciated.

The sure way to increase what chances you have to win a prize is by quantity. If you invest the maximum amount of 30,000 pounds and with “average luck”, you might win close to 15 prizes in a year. Average luck being the operative phrase, there is no telling if you will win anything or not.

It is possible to buy Premium bonds via debit card. You can call on the NS&I Ph. 0500 007 007 or 0845 964 5000. You can also buy these at a Post Office, where there are application forms available. Nsandi.com is the official site of the NS&I, and you can download the application forms at the site.

Investors often come across advices where corporate bonds are given a thrust. But what is exactly the mechanism behind this investing in corporate bonds? This should be understood from a neutral source rather than a person who typically touts for such binds for his benefit.

The underlying fact behind buying corporate bonds

When an investor purchases corporate bond, he actually lends funds to a company with the commitment of repayment of principal amount (upon maturity) and half-yearly coupon payments. The binds proceeds are used by corporations for manifold reasons including projects, general purpose etc.

Rating of bonds: a crucial thing to know

The corporate bonds are rated with rates such as BBB, A, AAA, AA etc. These ratings define the performance of a corporate bond and helps investors to decide on which bond he should invest. The rates such as A, BBB, AA, or AAA are reliable and the bonds of this grade are fit for investment. While the grades like BB, CCC, B CC and C indicate bonds that are blow investment rank. The rate D on any corporate bind implies that the bond has missed one of its coupon payments. This is a handy tool to measure the quality of a bond and an investor should adhere strictly to these ratings. I should advice investors to be very meticulous and know the ratings of corporate bonds in details. That is the way to stave off from junk bonds in advance.

When to investment in such bonds?

The time of economic crisis is a perfect time to go for corporate bond shopping. Typically, a crisis period is always marked by selling strategy of investors rather than buying. However, this is the time when you get good binds at an unimaginably low price. If you are looking to scoop out a steady income from corporate bonds, purchasing them during financial crisis is one of the best options.

Other means to judge such bonds

Staying in touch with money and investment magazines is essential when you are hoping to become a smart trader. These magazines publish list of companies and their performance. You can find investment earnings of companies in magazines. An updated knowledge about the performance of a company is necessary when you buy such bond. After all, you are lending money to a company (however small amount it may be), so you need to be wary of it.

Now when you are adept enough about corporate bonds, you can jolly well go for buying it. Just be cautious about the points I have mentioned and don’t get bluffed by tricksters.