How to Start Investing

From Kiplinger

You want a home of your own, an education for your kids, a comfortable retirement someday and a little fun along the way. These are the dreams we all seem to be born with. To achieve them, we must become investors.

A brilliantly executed program of saving -- putting your money into certificates of deposit, money-market funds or savings bonds -- can earn 5% to 6% in a good year. With inflation at 3% (some would say that's optimistic) and taxes taking away another 25% or so of what remains, that 5% return quickly becomes about 1.5%. You're going to have to do a lot better than that.

You should aim for an average return of 10% to 12% per year on your investments. You won't make it every year, but that's an achievable range if you plan your approach thoughtfully and stick to your plan.

Successful investors don't jump around from one place to another according to what's hot and what's not. They operate from a plan that's based on their goals, how long they have to achieve them, their tolerance for risk (both financial and psychological), and what they can afford to set aside for an investment program. You want to make money, of course, but you also want to be able to sleep at night. Here's how to do it.

• Set Goals and Adopt a Strategy Decide what you want to save for and how much you need to save, then figure out how you'll do it.

• Make Investing a Habit Follow these easy steps to make investing part of your daily routine.

• Control Your Risks Don't invest until your ready, and don't buy anything you don't understand.

Credit tips

Great Credit tips and strategies

Recieved My Refferal Bonus from Prosper

I received another bonus from Prosper for their referral program and I have funded my another loan because of it. I really love Prosper and what it can do for the average person, I continue to make money and it continues to grow.

The other great thing about Prosper, I have been able to help people start over and or start a business of their own. Lending to other people in need so very rewarding.

Dear Eric,

Thank you for referring yoshibo to Prosper. He or she funded a loan today. As a result, we have deposited a referral award of $25.00 into your Prosper account.

Earn more money by referring more friends to Prosper.

Sincerely, Prosper

Top 10 Franchises for 2008

Every year Entrepreneur.com puts out the Top ten of 500 franchises, this is the 2008 best. I hope this is helpful.

Top 10 Home Based Franchises for 2008

1. Jani-King
2. Bonus Building Care
3. Jan-Pro Franchising Int'l. Inc.
4. Servpro Industries Inc.
5. Chem-Dry Carpet Drapery & Upholstery Cleaning
6. Matco Tools
7. ServiceMaster Clean
8. Jazzercise Inc.
9. WSI Internet
10. Snap-on Tools

Top 10 Low-Cost Franchises for 2008

1. RE/MAX Int'l. Inc.
2. Jani-King
3. Kumon Math & Reading Centers
4. Bonus Building Care
5. Jackson Hewitt Tax Service
6. Liberty Tax Service
7. Jan-Pro Franchising Int'l. Inc.
8. Chem-Dry Carpet Drapery & Upholstery Cleaning
9. ServiceMaster Clean
10. Merle Norman Cosmetics

Top 10 Fastest-Growing Franchises for 2008

1. Jan-Pro Franchising Int'l. Inc.
2. 7-Eleven Inc.
3. Subway
4. Jani-King
5. Dunkin' Donuts
6. Jackson Hewitt Tax Service
7. Bonus Building Care
8. Instant Tax Service
9. Liberty Tax Service
10. RE/MAX Int'l. Inc.

8 Stocks to Own in '08

Kiplinger

Making money by throwing darts at stock tables will be tough in 2008 if market gains are as modest as we predict they'll be. Instead, it will be a year in which the spoils go to the most-astute stock pickers. In that vein, we present our best bets for 2008 (listed in alphabetical order; stock prices are to November 12). See A Winning Crop for 2007 to see how our '07 picks fared.

AT&T (symbol T)

AT&T says it's everywhere, from "Japaridelphia" to "Chilondoscow." It's also in the middle of the hullabaloo surrounding Apple's fast-selling iPhone. AT&T may not reap enormous profits right away from its exclusive deal to be the wireless carrier of choice for the iPhone. But as Apple cuts iPhone prices even more, AT&T is likely to attract millions of additional customers. With 65.7 million mobile-phone subscribers, AT&T has established wireless as its main focus. It won't be long, in fact, before wireless services surpass AT&T's declining land-line phone business.

AT&T's empire now includes Ma Bell, four original Baby Bells, the wireless network and the Yellow Pages. Its next move will be into entertainment and programming. Despite its huge size (market value: $238 billion), this ever-changing company should deliver earnings growth of 8% to 12% a year for some time. The stock, which yields 3.7%, could reach $50 over the next year.

CEMEX (CX)

The world is spending like mad on roads, schools, airports and power plants, and suppliers of basic materials are benefiting. From a humble start in 1906, Mexico-based Cemex has become the world's largest producer of ready-mix concrete. Ready-mix, the stuff that comes in bags, is ideal for small jobs anywhere. Cemex is also a global force in traditional cement, which is used for giant building projects, such as bridges and tunnels, and in aggregates, which are used for road paving.

Cemex has been hurt by the housing recession in the U.S., which accounts for about 25% of its sales and profits, but sales in Eastern Europe and South America are a growing part of its revenue mix. That makes Cemex a way to invest in global economic growth.Cemex's earnings have tripled since 2003, but they were down 10% in the most recent quarter from the year-earlier period. As a result, Cemex's American depositary receipts have slumped 34% since June. But Cemex predicts that 2008 will be better. The stock should rise to $35 in the coming year.

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Investing Basics: Lesson 4

CNN Money 101

1. Over the long term, stocks have historically outperformed all other investments.

From 1926 to 2005, the S&P 500 returned an average annual 10.46 percent gain. The next best performing asset class is bonds. Long term U.S. Treasury notes returned, on average, 5.08 percent over the same period.

2. Over the short term, stocks can be hazardous to your financial health.

On Oct. 19, 1987, stocks experienced the worst one-day drop in stock market history - 22.6 percent. More recently, the shocks have been prolonged and painful: If you had invested in a Nasdaq index fund around the time of the market's peak in March 2000 you would have lost three-fourths of your money over the next three years.

3. Risky investments generally pay more than safe ones (except when they fail).

Investors demand a higher rate of return for taking greater risks. That's one reason that stocks, which are perceived as riskier than bonds, tend to return more. It also explains why long-term bonds pay more than short-term bonds. The longer investors have to wait for their final payoff on the bond, the greater the chance that something will intervene to erode the investment's value.

4. The biggest single determiner of stock prices is earnings.

Over the short term, stock prices fluctuate based on everything from interest rates to investor sentiment to the weather. But over the long term, what matters are earnings.

5. A bad year for bonds looks like a day at the beach for stocks.

In 1994, the worst year for bonds in recent history, intermediate-term Treasury securities fell just 1.8 percent, and the following year they bounced back 14.4 percent. By comparison, in the 1973-74 crash, the Dow Jones industrial average fell 44 percent. It didn't return to its old highs for more than three years or push significantly above the old highs for more than 10 years.

6. Rising interest rates are bad for bonds.

When interest rates go up, bond prices fall. Why? Because bond buyers won't pay as much for an existing bond with a fixed interest rate of, say, 5 percent because they know that the fixed interest on a new bond will pay more because rates in general have gone up.

Conversely, when interest rates fall, bond prices go up in lockstep fashion. And the effect is strongest on bonds with the longest term, or time to maturity. That is, long-term bonds get hit harder than short-term bonds when rates climb, and gain the most when rates fall.

7. Inflation may be the biggest threat to your long-term investments.

While a stock market crash can knock the stuffing out of your stock investments, so far - knock wood - the market has always bounced back and eventually gone on to new heights. However, inflation, which has historically stripped 3.2 percent a year off the value of your money, rarely gives back what it takes away. That's why it's important to put your retirement investments where they'll earn the highest long-term returns.

8. U.S. Treasury bonds are as close to a sure thing as an investor can get.

The conventional wisdom is that the U.S. Government is unlikely ever to default on its bonds - partly because the American economy has historically been fairly strong and partly because the government can always print more money to pay them off if need be. As a result, the interest rate of Treasurys is considered a risk-free rate, and the yield of every other kind of fixed-income investment is higher in proportion to how much riskier that investment is perceived to be. Of course, your return on Treasurys will suffer if interest rates rise, just like all other kinds of bonds.

9. A diversified portfolio is less risky than a portfolio that is concentrated in one or a few investments.

Diversifying - that is, spreading your money among a number of different types of investments - lessens your risk because even if some of your holdings go down, others may go up (or at least not go down as much). On the flip side, a diversified portfolio is unlikely to outperform the market by a big margin for exactly the same reason.

10. Index mutual funds often outperform actively managed funds.

In an index fund, the manager sets up his portfolio to mirror a market index - such as Standard & Poor's 500-stock index - rather than actively picking which stocks to purchase. And average is often enough to beat the majority of competitors among actively managed funds. One reason: Few actively managed funds can consistently outperform the market by enough to cover the cost of their generally higher expenses.

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My Updown Monthly Report

This is the report I received for the month of November overall I have earned $4.35 since September.

Dear Eric,

Following is your monthly portfolio performance report from The UpDown Congratulations! You earned $2.01 at The UpDown for November 2007.

Your portfolio return in November was: -2.4% compared to the S&P 500 return of -4.4% for the same period

Your portfolio return since you started on 9/4/2007 has been 12.62% compared to the S&P 500 return of 0.49% for the same period.

Your portfolio performance earned you $2.01. You also earned $0 from the performance of members you referred. To refer friends to The UpDown, click here

To determine earnings, we consider your portfolio performance last month, the length of your track record, and your performance since you started.

Our goal is to reward members who beat the market in the long run and, by doing so, contribute to our ability to derive a community-based investment strategy that consistently outperforms the market.

Your market-beating performance this month also means you are well positioned to earn even more next month if you continue to manage your portfolio successfully. Well done.

Visit http://www.theupdown.com/displayProfile.do to view your portfolio performance chart on The UpDown

You can claim your money, via PayPal, by visiting http://www.theupdown.com/home.do and following the "Claim Your Money" link in the "My Updates" section.

Please note: * You can only claim amounts equal to or greater than $0.50 * All money must be claimed through PayPal. If you don't have a PayPal account, simply create one for free using the link provided in the money claiming process. * You must certify that you are at least 18 years old and that you are legally allowed to accept money from The UpDown. * You, and not The UpDown, are fully responsible for all potential tax implications related to you accepting money from The UpDown.