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Safe Investing FAQ
Your Questions Answered Here

Welcome to the Safe Investing FAQ (frequently asked questions) section of my site, where your voice is heard.

Below are answers to common questions emailed by you, our visitors.

The best way to contact us and/or submit a question is through the Contact Us page. You can also find this link on the left hand side of every page.

Per your request, we also created a page of quotes on wealth and safe investing. Is your name next on the list?

Q: Why did you start Invest-Safely.com?

A: To help people like you! People who want learn about investing, but don’t have all day to surf the internet looking for bits and pieces of information.

Technology has increased the rate of change, which makes staying on top of the investing world even more time consuming, and therefore difficult. So we created a site that brings it all together.

Q: What makes Invest-Safely.com unique? What do you offer that other sites do not?

A: We feel that your financial education and understanding of investing is the most important part of the site. When you are able to quickly understand a topic, then we have done our job.

So we save you time by discussing all the tools you need to minimize risk, make decisions, and improve performance, regardless of which strategy you choose. And we combine those tools with personal finance and money management knowledge to save you money.

Q: Do you offer investing services?

A: We are currently evaluating our options, but are not offering any investing services at this time.

Q: I just graduated from college, and am wondering if I should start investing now or wait until I've worked for a while?

A: The earlier you start investing, the better. The effect of compounding works for profits as well as interest payments. It may not seem like you're making much ground at first. Rest assured, compounding increases "exponentially", so you'll want to leverage this effect as long as possible.

Q: I don't have a lot of money to invest. Should I wait until I have $xxxxxx before starting?

A: There is no "minimum" needed to start investing. As discussed on our personal finance goals page, some of the most important investments are the ones you make in yourself (such as goal setting, emergency funds, etc.).

In addition, most employers offer a 401k plan, which automatically takes money out of each paycheck. Invest enough to receive an employer "match", and this is an immediate profit for you, regardless of what types of investments you choose.

Q: I have already addressed all the personal finance questions on the site, am set for retirement, and now have $10,000 to invest. I am not interested in investing, but do not want to throw my money away either. What should I do?

A: Without getting into specifics or providing outright advice, this seems like a situation for an investment that does not require a lot of time and won't be affected by ups and downs - i.e. do not need a bull or bear market to have the potential for profits.

If you qualify as an accredited investor (basically a net worth over $1.5 million), hedge-funds or alternative-fund managers (such as commodity traders) would be a decent place to park the $$$ for a few years (e.g. www.accreditedinvestor.ws - Altegris Investments)

You could also go with CMG (in Philadelphia). They specialize in hedge-fund type investments for the non-accredited investor. (http://www.cmgfunds.net/public/mauldin_questionnaire.asp)

There is another hedge fund that operates as an LLP to avoid the accredited investor rules (www.superfund.com). Each state has a unique set of requirements, so be sure to investigate before investing.

Q: What kinds of books should I read if I want to learn about safe investing?

A: Finding the best books on safe investing can be a real challenge. Investing is a very broad subject, covering money management, personal finance, insurance, and financial planning just to name a few.

To help you get started, you can find a list of the best books on investing and personal finance by clicking here.

Q: When someone on TV says that something has plenty of upside, what does that mean?

A: "Plenty of upside" is a misleading term. When someone uses that phrase, it sounds like there is a lot of profit potential. Well, not so fast.

Plenty of upside means that the current price is below a "target" price. A target price can be determined several different ways.

The analyst believes the price of an types of investments (stocks, bonds, ETFs, mutual funds, etc.) can rise before he or she will have to say that the price reflects "fair value".

Notice that the analyst did not say when this will happen; just that it can or is possible. In other words, just because the price "can" go higher does not mean that it will.