401K and IRA Best Investment Strategy for 2014 and 2015

If you invest money in a retirement plan on a regular basis the best investment strategy for 2014 and 2015 is an investment strategy that will keep your investment portfolio on track without subjecting you to a lot of risk. Most of the investment options in a typical 401k and many IRA plans are mutual funds. To achieve long-term growth with only moderate risk you need to invest money in both stock funds and bond funds. What’s your best strategy for 2014 and beyond?

After 30 good years bond funds will turn sour when interests rates turn around and go up (that’s the way bond funds work). Stock funds have returned well over 100% since early 2009. Interest rates are near all-time lows, and an abrupt reversal in rates could cause havoc in both fund categories, resulting in big losses for investors in 401k and IRA plans. It’s time to get proactive to protect your retirement assets.

The best investment strategy for average long-term investors traditionally focuses on a mix of stock funds and bond funds. Picking the best stock funds and best bond funds to invest money in from your list of options is a secondary consideration. Concentrate instead on asset allocation and investment strategy. In other words, how do you spread your money across the different options offered and what kind of strategy do you use to make sure you stay in a position that fits your risk profile? We’re talking money management here, and we’re talking about your financial future.

Let’s say that you consider yourself a middle-of-the-road investor. You are willing to accept moderate risk in pursuit of higher than average returns. Wall Street has traditionally suggested that the best investment strategy is to invest money with about 60% in stock funds and 40% in bond funds. To protect yourself against the possibility of heavy losses in the future, why not get more conservative with your asset allocation?

In a 401k plan asset allocation is your responsibility and you must make decisions on two levels. First, for the investment assets you already have in place (your portfolio allocation). Second, for the new money you invest each payday (your contribution allocation). These allocations can both be the same, or they can be different. For example, upon review of your statement you might see that 70% of your portfolio assets are in stock funds, with 30% in bond funds. And you have 50% of your new contributions going to each.

Here’s my suggestion for the best investment strategy for cutting your risk while keeping stock and bond funds an integral part of your investment mix. No matter what your portfolio allocation is now, change it so that you have equal amounts invested in these three areas: stock fund(s), bond fund(s), and a safe investment option. If your 401k offers a STABLE ACCOUNT option that pays a decent interest rate, use it as your safe option. If it doesn’t, go with the money market fund. Remember, interest rates are extremely low, so money market funds presently pay very little interest. On the other hand, some 401k stable accounts pay higher interest rates than you’ll find anywhere else.

For your allocation for new contributions set it up the same way with one-third going into each of the three options. If you have an IRA that you intend to contribute to on a regular basis, have it set up so that money automatically flows from your bank account to your IRA account. Split the existing money in your IRA into the same three areas as above, and set it up so that equal amounts flow into a money market fund, stock fund, and bond fund each month.

The above strategy will not be the best investment strategy vs. the traditional 60%-40% strategy if both stocks and bonds continue their winning ways in 2014 and beyond. You have traded higher growth potential for greater safety. If, on the other hand, interest rates rise significantly and throw a wrench into the stock and bond markets, this investment strategy should work to your advantage.

Let’s say that stock funds and/or bond funds decline significantly in value for a couple of years or more before rebounding. My suggested strategy has two primary advantages. First, your losses will be lower. Second, the new money you have flowing into stock funds and bond funds each month or each payday will buy more and more fund shares as fund prices get cheaper. When prices rebound you will break even and start to show a profit sooner because you bought stock funds and bond funds at cheap levels. That’s called dollar cost averaging… which is a crucial part of the best investment strategy.

Sometimes the best investment strategy is to take aggressive action – like after a major decline in stock prices. Other times the best strategy is to be more cautious by cutting the risk in your portfolio… while you continue to invest money in stock funds and bond funds. In 2014 and beyond, I believe that caution is your best strategy.

A retired financial planner, author James Leitz has an MBA (finance) and 40 years of investing experience. His complete investing guide for beginners, Invest Informed, teaches how to invest starting with investment basics.

Buying Cartier Jewelry-the Best Way To Invest Your Money

The gold is precious alloys that has already been the foundation associated with world economic climate when it was in the primitive times. Gold has and will extend in order to maintain up the recognized outline associated with investment and has productively accomplished to grasp investors’ interest. The return of precious metal is actually made welcome through just about all sectors and more importantly; it is a worldwide recognized form of steel. Most of the individuals are discovering this likely to consider precious gemstone as well as gold as a status image. It is regarded as the secure hedge towards cost increases as well as helps in supplying finances within the long term. Investing in gold is actually certainly a good advantageous choice since it’s acquire associated with becoming changed into considerable money. The only thing ought to be kept in mind that whatever you are invested in, such as the gold jewelry, gold coins, diamonds, gold cash. These will not end up being short term foundation. You should wait for a cost to rise and then just market or vice-versa. In addition, the rate of Gold may effortlessly end up being rehabilitated because it’s directly associated to the inventory market which also makes its calculation is easy to make.

Similar holiday to a commodity, the provision and need together constitute the substantial element which helps in order to determine the actual price associated with Gold. Gold apparently is a useful ownership and its need may merely intensify as it has proved to be during periods associated with rising cost of living. Precious gemstone happens to consider enjoyment within several advantages so far as its metallic forms are concerned it’s utilized in jewelry, so if you purchase the cartier jewellery then not it will be fashionable but also it’s the standing symbol. Cartier jewelry too can’t end up being classified to get pleasure from the prospects of monetary benefits. Besides, the investor and also the customer have to take safety precautions in investing because such sort of expense isn’t made upon little scales. After complete study as well as nicely outfitted understanding concerning the actual market info ought to be carried out before purchasing the cartier gold jewelry. In mainstream of instances, gold at all occasions comes with an uphill inclined as well as people tend to reveal a certain bond with it. You need to usually purchase gold when the price reaches immense amplification since it’s widely believed that precious metal could be highly beneficial once the current recession period is over.

Investing in the cartier jewelry, you will find it that it is a potential thing to get the profit. So you are consider to make an investment and don’t know what to invest. Then choose the cartier jewelry, it will give you the big surprise.

20th Century Business Methods Used Today Are The Problem, Not The Solution

Throughout the 20th century, various business methods for operating and developing the company have been contrived and refined, becoming the conventional business methods that we use today. We improve management and effect business change by laying new contrived business methods and structures over the methods in place. Even with all the improvements, we continue to have fundamental problems with re-organizations, intangible assets, accounting limitations, cost control, information management, alignment, etc. Even with all the business organization and management methods, we still have not found the one right method to organize and manage the company business.
Until now. Result-performance Management, newly launched in 2008, provides the one right method to organize and manage the business in the 21st century company, and leave problems with 20th century business methods behind.

Conventional business methods are the generally-accepted wrong ways

Over the past decade, we implemented breakthroughs like business process re-engineering, business transformation methods, business performance management, and enterprise resource planning. But, these turned out to be just new names for conventional business methods to do the same old things.

Why are there so many different business methods to do the same thing? Why isn’t there just one right business method? It is simply because all of these different business methods are wrong methods, and we do not know the one right business method. Since all the different business methods we use are wrong, we can only define the right method by identifying the wrong methods that are generally-accepted. The basis for our management and accounting methods is not that they are the fundamentally-sound and understood right business methods, but that they are the generally-accepted wrong business methods. When we come up with the one right business method, it will be known and accepted, and all of the wrong business methods will be obsolete.

Conventional thinking prevents the new breakthrough needed

Since the beginning of business, no one has ever stopped to think, “Are the business methods that have always been used the best business methods”. We accept existing business methods as the basis and try to improve the methods.

New business methods contrive ways to alleviate the symptoms of fundamental problems inherent in the way things have always been done. This we can do ad infinitum without ever solving the problems. How many methods do we have and how many books have been written about corporate governance, business organization, change management, investment management, capital development, performance management, cost and value accounting and management, solution alignment, intangible assets, business collaboration, etc. Why do we keep coming up with new business methods, if previous business methods were supposed to have solved the problem?

Management improvement books are written using the existing body of knowledge or published record as the valid basis. Many of the books cut, reorganize, and paste what has already been written. Other books describe innovative ways enterprises are coping with contrived business methods. These approaches prevent new breakthroughs and can, at best, produce some incremental improvement.

Conventional 20th century business methods do not organize and manage the business

The problem is that conventional business organization and management methods do not organize and manage the business. Instead we contrived business methods to organize and manage people, departments, functions, activities, duties, positions, tasks, and numerous other entities. Each business method defines these entities in its own way. Each method is laid over the business obscuring the actual business and compounding the problems of business change. The many different business methods describe the company with different entities and definitions creating information complexity and proliferation of information systems.

The organization structure is laid over the business. The business changes, while the organization structure remains rigid, building pressure for reorganization and upheaval. Other business methods and structures are laid over the organization structure. The actual business lies hidden under a proliferation of methods.

We need one right way to organize and manage the business

We need to step back and take a completely new look at the basics of our company business and build the one right method to organize and manage the business. Conventional business organization and management methods manage contrived entities, but fail to specifically define the business and manage specific business entities.

The business definition is “investments in capital as solutions of worth utilized for costs and effectiveness of performance to produce value and quality in results”. Conventional business management methods do not identify and manage the three entities that define the business and must be managed:

1. Results: Specific economic outputs of value and quality produced at any level from business performance
2. Capital: Specific invested capital available as solutions to be utilized in business performance
3. Performance: Utilization of a specific solutions of worth to incur costs to produce specific results

These three entities are used in Result-performance Management (R-pM) to organize the company. Any other entities used must be defined in terms of results produced, capital investments as solutions, and performance in solutions utilized to produce results.
The business organization changes naturally as results are added, changed, or deactivated. The business organization changes with each new capital investment to implement solutions or to discontinue old solutions. Human capital personnel and capabilities are deployed as solutions where they have the capability to manage and produce results. Other capital is deployed as well as specific solutions to be utilized in performance to produce a result. The business organization changes with each redeployment of a solution to be utilized in performance to produce a result.

R-pM is the new breakthrough needed to organize the business

R-pM is a new breakthrough that defines the results that enterprise management wants to produce and adds and deletes results as needed. R-pM defines the capital utilized as solutions in performance, to show how costs are incurred. R-pM deploys solutions to be utilized in performance to the results to be produced to show total performance costs against the result value created.
Once the organization is simplified, R-pM manages the enterprise in three dimensions for ongoing advantage

1. Result: Manage economic output to reach revenue goals
2. Performance: Manage invested capital in performance to reach profit-margin goals
3. Management: Manage operation and development goals by time period for return and strategic value

R-pM develops new capital solutions over time to create value in new results. R-pM governs the company business performance over time to create strategic value.

R-pM is one simple integrated business method for 21st century management

R-pM removes conventional business complexity and provides one simple integrated business method that eliminates re-organizations, intangible assets, misalignments, ad-hoc development, change management, and unknown costs. R-pM enables strategic value creation, result value-quality chains, transparent governance, innovation technology management, beneficial development, cost and value accounting, result-performance optimization, business collaboration, consulting professionalism, solution-sharing, and many other advantages prevented by 20th century business methods.
When we employ R-pM, we have the one fundamental right business method to organize and manage any enterprise for 21st century management, and leave all the obsolete wrong business methods and unsolvable 20th century problems behind.