Financial Opportunity of the Century!
Dec0
With a tough economy, and a lingering recession, most people are tightening their belts and carefully watching their expenses. Most are avoiding investments after disappointing stocks and bonds wrecked havoc on their portfolios. Few are taking chances and are only interested in high yield investments with low risks. Usually this kind of return can only be found in alternative investments, the ones that are off most investors’ radar. However, it is exactly the kind of investment that can quickly bring their portfolios and retirement income funds back to the levels enjoyed just a few years ago.
There is one investment that could be described as the financial opportunity of the century. Rarely do circumstances come together to create such profit margins and high yield investments. In this case it is the combination of a recession and huge consumer debt that is providing an incredible opportunity for debt buying companies to earn substantial returns. The returns are shared with investors who participate in these alternative investments and come out on top in a down economy. Investing in a debt buying company is a smart way to add to a retirement income fund and create a steady cash flow.
Debt buying is not a new tactic. In fact many smart investors have been very successful with this strategy for years. There will always be a certain number of loans and debts that the customer has defaulted on and the bank or loan company will label these non-performing loans. Credit card debt makes up a big percentage of these non-performing loans.
In one year, from August 2008 to August 2009, charged off credit card debt rose more than 41%. The banks need to move these debts off the books so that they can free up funds to loan to others. Usually they sell these debts for 8%-12% of their original value. The collection companies who buy these generally recover about 30% resulting in a profit margin of 6%-10%.
Today the high volume of these charged off debts is pushing the banks to accept much less than in the past, now releasing these debts for less than 5%. This can increase the profit margin to as much as 25%.
However, not every debt buying company will see these high yield investments. Most debt collectors use the old tactics of pressuring the customer with constant and often abusive phone calls. The theory is that the customer will eventually cave in and pay the loan.
Eagle Asset Resolution uses a different strategy they call Polite-Professional-Persistent, and its success is making it one of the best choices in alternative investments. Instead of hounding and abusing the customer they are polite and professional with the customer and put together a repayment plan so that everybody wins. This strategy is showing higher rates of debt collection.
When you combine the volume of debt, the bank release costs under 5%, and the successful collection rate of EAR it is easy to see why this is a once in a lifetime financial opportunity. Anyone who has lost money in the stock market, or wants to increase their retirement income, should consider becoming an investing partner with EAR. They will help you reap substantial returns from your investments.
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Investing in Gold to Balance Your Portfolio
Jul0
In times of economic crisis, some investors turn to gold as an investment hedge (a sort of financial “insurance”) to protect their investment portfolios. That makes a lot of sense today, given the current value of gold.
Gold as an investment will rarely lose it’s value and will help add stability to your investment portfolio. That is why investors have traditionally turned to precious metals in times of widespread financial woe.The lustrous shine will always shine brightly.
Considering the current financial climate, one might consider if it is a good time to buy gold. Even people who have very small or nonexistent investment portfolios are considering purchasing some gold.As Gold prices continue to skyrocket is seems pointless not to have a small investment?
Unfortunately, there is no straight answer to that question. For some people, now is absolutely the time to buy gold. For others, it is not a good time. So how do you know if it is a good time for you to buy gold?
Do you have a significant amount of consumer debt such as credit card balances or car loans? If so, you would be better off applying any extra money you have to your debt. Are you overly concerned with the short-term performance of your investment portfolio?If this is the case, then it may not be a commodity for you. This is because gold does not generally have a good return.
“How can that be?The price of gold is high! If I had bought gold years ago, I could sell it for so much more now!”
True, but all those years you would have kept gold in your portfolio, you would have been paying to keep it there. No matter how you hold your gold investment, it does cost something to keep it. If you keep your gold in exchange-traded funds (ticker symbol GLD), you pay a small fee to handle the price of “storing” the gold, and you pay your broker a fee on whatever you make on your gold. If you keep your gold in a safe-deposit box, you pay for the safe-deposit box and for the insurance you would need to protect your investment. The same goes for storing the gold in your home. The very thing that makes gold so attractive (the fact that it is tangible) is the thing that makes it so risky. If someone steals it, it is gone.
The ways mentioned above are the best ways to invest. It is not wise to invest in gold stocks – you are really investing in the company that mines the gold, so while you get partial ownership of that company’s gold, you are still vulnerable to that company’s business practices and financial pitfalls.
Even buying gold coins, bullion, or bars is potentially risky. You want to make sure you have the purest form of gold if you invest. Paying full price for a precious metal with fillers is a real possibility in a market that is flooded with questionable merchants pushing gold at every opportunity.
With so much to consider, one might be inclined to skip the current “gold rush.” Not so fast. For some investors, now is a great time to buy gold. If you have some extra money for investing and know how gold will affect your portfolio, gold is a great addition that will round out your portfolio and reduce fluctuations.As a long term investment strategy, adding gold to your portfolio is a wise decision.
Additionally, if you have a reputable dealer and some place safe to store it, you could buy gold to store yourself. There is something to be said for having assets you can touch.
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