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5 Habits of Successful Investors

If you were to take the time to look at someone who’s very successful you would find that, no matter what they do, they have certain habits that they never break, and those habits are the backbone of their success.

It’s the same thing with successful investors; they do certain things habitually that lead them to success. With that in mind, below are 5 Habits of successful investors that, if you want to be successful at investing yourself, you should definitely copy. Enjoy.

Habit #1: Successful investors save regularly. If there’s one key to being a successful investor, it’s that you need to save money all the time, even if you have to force yourself to do it. What we mean by that is setting up things like payroll deductions and scheduling online transfers so that your money is saved for you automatically.

Habit #2: Successful investors are extremely patient. While you definitely want to monitor your investments, keep an eye on your credit reports, watch the stock market occasionally and keep abreast of what’s going on, the best thing you can do is sit back and let the market, and your investments, take care of themselves. Long-term investors have always done well, historically.

Habit #3: Successful investors create a strategy, set goals and take action.  Have you ever written a to-do list? That’s what successful investors do all the time, and then take action on the things they have on their list. They create a strategy, based on their knowledge of the market, and take action on that strategy. If it doesn’t work, or needs to be changed, they make those changes.

Habit #4: Successful investors do their homework. Let’s face it, investing isn’t easy and being successful at investing is just plain difficult. You can make it a lot easier by doing your research, reading white papers, attending seminars and otherwise educating yourself. There’s so much information out there, and so many viable information streams available, that there’s really no excuse not to. Successful investors are always increasing their knowledge so that, if an opportunity arises, they can make a decision and take a vantage of it.

Habit #5: Successful investors know went to say “no”.  Habit #4 is very important for this habit, because an educated investor will know when an opportunity is a good one, and more importantly, when it’s not. Being able to say no and not second-guess yourself is extremely important, maybe even more important than being able to spot an excellent opportunity and take advantage of it. The reason is simple; a good investment will make you some money, but a bad investment might lose you a lot of money.

Could LifeLogger be the next GoPro Stock?

When it first opened on the market, GoPro stock was at $30. Two months later it was already at $95 and, for those who missed its IPO, they were left sitting with their hands in the air, wondering what happened.

Most people now know about GoPro, the extremely small, durable and handy video device that’s taken the world by storm, but very few have heard about LifeLogger (LOGG), wearable technology that some analysts are calling the next big thing in the high-tech industry.

Here’s a question; what’s the actual percentage of your life that you actually remember? Scientists say that it’s approximately 0.001%, and that’s if your memory is really great.

Many people would like to be able to remember more of their lives, and extreme sports enthusiasts have definitely used the GoPro to do just that. But what about everyday life? What if you wanted to record everything that you did all the time so that, if you wanted to recall something extremely specific at a later time, you could?

That’s what LifeLogger promises.

In fact, LifeLogger was just named among the Top-5 startups by entrepreneur.com, even though the technology promises what seems like something out of a science fiction film. The fact is however that the wearable technology industry it Is expected to explode in the next few years, and reach $20 billion dollars by 2018.

LifeLogger has already recognized this fact and allows users to record their lives with a wearable Point Of View (POV) device that records everything they do and say, and then uploads it to the cloud where it can be processed and stored.

This “processing” consists of extracting things like the faces of people you’ve seen and converting the words that you said and heard into a searchable text database. While this is happening your GPS coordinates are also recorded and even the direction that you’re looking at the time is recorded as well.

Like we said, out of a science fiction film.

It’s being called “augmented memory” and analyst predict it’s going to be huge. So, if you missed out on GoPro’s IPO, keep an eye out for LifeLogger when it opens. It might just be the next big thing!

Looking to Invest in Annuities

Saving for retirement means putting as much money away as possible and placing it in different, diverse investments in order to protect it best. When it comes to many of these investments, including employer-sponsored 401(k) plans, individual retirement accounts (IRAs) and so forth, many plans have contribution limits that make them a bit restrictive.

Not to say that they aren’t a great way to put money away, because they are, but if you’re looking for a less restrictive investment option, annuities are definitely a great choice.

Two of the most common contract types of annuities are fixed annuities and variable annuities and, if you want to invest in them, understanding each and the difference between the two is vital if you want to create a good savings strategy.

First is a fixed annuity, which is, like the name suggests, based on a fixed or specific amount of return. What happens with a fixed annuity is that, when you sign a contract to purchase them, the company insuring them is guaranteeing that your gains won’t drop below a certain percentage of the investment you made.

During the first year of a fixed annuity contract, the original interest rate remains the same.  Once that first year has ended however, the insuring company that sold them to you can change the interest rate, but it can’t go below that original, predetermined level.

Fixed annuities also guarantee a payment every month once you start collecting on them and, because the terms of that payment are set in stone when the annuities are first purchased, your capital is protected. This makes fixed annuities a very appealing investment option. Keep in mind however that, if the institution that sold you these annuities happens to fail, you will lose your money because they’re not insured by the FDIC. Luckily this doesn’t happen very often.

Variable annuities, in some ways, might appear to be a bit riskier than fixed annuities. They’re very similar to mutual funds in that the capital in a variable annuity is taken and invested in various bonds and stocks, usually in line with your level of risk. The amount of return that you get from a variable annuity is going to be based on the performance of the investments that are made.

What that means is that you assume the risk of the investments being made but, on the upside, there’s a much greater potential for income then with a fixed annuity.

Variable annuities also come with extra benefits, including a guaranteed  death benefit to the beneficiary of your account if you pass away before payout begins.

If you have questions about annuities, or about personal finance in general, please let us know by leaving a comment or sending us an email. We’ll make sure to get back to you ASAP with answers and advice.

Why you should invest in Stocks

This quick little blog is going to explain why, if you want to invest, investing in stocks is one of the best choices you can make.

The fact is that, over the past 100 years or so, any long-term savings that you invested would have done much better in the stock market than anywhere else you could have invested, including real estate, gold, bonds and definitely collectibles.

Now, before you begin, and before you enter any ticker symbols, track the Dow or look deeply into a specific company’s cash flow, you should definitely set some expectations for yourself.

One of the very best rules of thumb when it comes to investing in stocks is to invest money that you’re not going to need for at least 5 years and, if possible, much longer. Any money you won’t need for the next 5 years should definitely be invested into the stock market for your best chance of a great return.

Any money that you’re going to need in the next one, two, three, four or less than five years, money for your son’s college tuition, a down payment on your first home or to open your first business, should be put into something like a money market account, a CD or simply a savings account. In other words, a short-term savings vehicle where you can access your cash quickly and with few, if any, fees.

And by the way, if you have high interest credit card debt of any kind, you should definitely pay this debt completely down before you start investing in stocks, no question.

Now, here’s the best, strongest, no questions asked reason why you need to put your long-term money into stocks; history.

Historically speaking, there was no better place where you could have put your money in the last hundred years, and gotten a better rate of return, then in the stock market. Since 1926 the historical average annual S&P return has exceeded 10%. Even though the S&P 500 only had a 6% annual return from 1997 through 2007, due to the bear market of 2000 through 2002, you simply can’t argue with historically excellent returns like these.

If you look at history, and you look at everything that’s happened in the last hundred years including depressions, bull markets, elections, recessions and so forth, the stock market has undoubtedly been the best place to put your money for excellent long term returns

And that, simply put, is why you should invest in stocks.

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