It just hit me one day!  There are all of these online investment sites urging you to invest, invest, invest, or apply for a loan, apply for a loan, apply for a loan!  Really, these online investment sites seemed to just appear out of almost nowhere and they also seemed to be everywhere. 

I initially found these sites to be just plain old annoying when they first exploded onto the scene.  The advertisements began to blur together in my mind, due to the sheer volume of different company names and slogans, I can only suppose. 

Well, one day it kind of dawned on me.  YOU (the consumer) could use these sites to make some PASSIVE MONEY!  In my opinion, that is the absolute best and most rare form of cash! 

How is it done, let me tell you.  In just 2 sentences.

Here it goes:

Approach one of these flashy online investment/loan sites and request a loan of a certain amount of money.  Get the money and then re-invest the money back into the site.

Yep, it’s that easy.

However, there is an important point that you cannot miss!  You need this key concept to make the investment work for you!  You must re-invest the money into investments with the online site that have a greater return (interest rate) than the loan you took out! 

Now, here is the FUN math part!  The greater the difference between the interest rate of the investment and the interest rate on your loan, the more PASSIVE CASH YOU WILL MAKE!

An example, you get a loan from X online investment site for ,000 at an interest rate of 10%, for a term of 2 years. 

You take all of this money and re-invest it into X online investment site, making sure that the investment has an interest rate that is greater than 10% (remember the investment has to have a higher interest rate than your loan for this to work).

Back to the example, you re-invest the entire ,000 into an investment with X online investment site at an interest rate of 15%, for a term of 2 years.

Here is how it works out: 

Once the 2 year investment/loan term is finished, what exactly will you have?

Loan:

,000 times 10% = ,000 times 2 years = ,000

,000 plus ,000 = ,000

So, after the 2 years passed, you would have paid ,000 in total for your loan.

Investment:

,000 times 15% = ,500 times 2 years = ,000

,000 plus ,000 = ,000

So, after the 2 years passed, you would have made a total of ,000 on your investment.

For your profit?  As usual, investment dollars minus loan dollars.

,000 minus ,000 = ,000

,000 profit.

AND THAT IS ,000 PASSIVE DOLLARS!  THE MONEY WORKED FOR YOU, YOU DIDN’T HAVE TO DO ANYTHING!

Now that is what I call, the perfect online investment idea!  And it can be explained in just 2 sentences!

Lisa Kai Lee is a 30 year old wife living with her husband in the Los Angeles area. Lisa Kai Lee has a website www.lisakailee.com that is filled with useful information that you just might need to know someday! SMART TIPS FOR SMART PEOPLE  Visit and subscribe!!!

A well-planned investment strategy is essential before having any investment decisions. A business strategy is generally based upon long run period. Formation of business strategy largely dependent upon the factors such as long-term goals and risk on the investment.

As the return on investment is not always clear, so the investors prepare the strategy so as to face the ongoing challenges in investment. A balanced investment strategy is generally required in the process of investment, which possesses long time period and some risk tolerance.

In the case, when a strategy is aggressive the chance of attaining a higher goal is higher. An efficient strategy can be obtained from portfolio theory, which shows good estimates on risk and return.

Strathclyde Associates Investment Guide: Investment Strategy is usually considered to be more of a branch of finance than economics. It is defined as set of rules, a definite behavior or procedure guiding an investor to choose his investment portfolio. For example, investing in mutual funds has recently emerged as a very favorable investment strategy.

An investment strategy is centered on a risk-return tradeoff for a potential investor. High return investment instruments such as real estate and mutual funds usually have more risks associated with it than low return-low risk investment opportunities. Return on investment can be calculated on past or current investment or on the estimated return on future investment.

Symbolically, it can be expressed as: Vf/Vi -1 where Vf denotes final investment value and Vi is the initial investment value. (“f” and “i” should be noted as subscripts)

Strathclyde Associates Investment Guide: Return on investment (ROI) is profitable when Vf/Vi-1>0 and the investment is deemed to be unprofitable when the value of final investment is less than that of the initial investment. ROI is calculated to be 1 or 100% when the value of the final investment is twice the value of the initial investment.

Types of investment strategies can be defined as follows:  A passive investment strategy attempted to minimize transaction costs.

An active investment strategy guide used to maximize returns based on moves such as proper market timing. This usually mean, “buying in the lows and selling in the highs” or buying investment instruments when they are cheap and selling them off when their price appreciates. This strategy, however, is not very beneficial for small time investors.

Small time investors can adopt the buy and hold investment strategy to invest in equities, which although volatile in nature, give favorable long run returns. Investing in equity markets for small time investors is associated with the investors holding on for very long periods. In the case of real estate, the holding period extends the lifespan of the mortgage. Notably, in case of this strategy, indexing or buying a small proportion of all the shares in market index or a mutual fund is a purely passive variant of the above strategy.

The strategy of value investing, a classic investment strategy propagated by Benjamin Graham simply concentrates on the strategy that an investor buys shares of a company as if he was buying off the whole company without paying any attention to the stock market scenario or any exterior conditions such as the political climate. At the end of the day, if he can buy the stock at less than that its actual future worth to the buyer, the person is said to have discovered a “value investment.”

Investment strategies can also denote the investment strategies a national or federal government should follow to bring about economic growth in a country. This can only be achieved by domestic investment as well as significant FDI (Foreign Direct Investment) flows to particular sectors of countries, especially the less developed ones of Asia and Africa.

In case of India, infrastructural problems, excessive government intervention, rigid labor laws and corruption are stifling the flow of FDI in the critical sectors. Less developed countries such as those in the Asia- Pacific region and Africa can bring about much needed development in these economies.

An investment strategy in mutual funds is probably the best bet for a profitable investment. Mutual funds is defined as a pool of money supplied by different investors and in turn used by the mutual fund company to invest in various assets such as stocks and bonds. However, a detailed research has to be conducted for choosing the mutual fund companies and only those should be considered which have a professional investment manger. This will ensure that the funds get channeled towards the right investments. This also applies for investing in stock markets where a decision to invest should follow a through research about the past and current trends of the stock prices and their Net Asset Values (NAV). Analyses from market researchers about the predicted future trends should also be considered otherwise gains from capital appreciation; capital gain distribution (in case of mutual funds) and dividends might not be realized.

Lastly, investment strategies leading to green investments or investments in renewable sources of energy will be the next big thing in the investment spectrum. From Economy Watch. Economy, Investment & Finance Reports.

Strathclyde Associates is a full service brokerage firm with many years experience in providing a wide array of services globally to a vast group of clients that include private individuals, financial institutions, governments and corporations.

The Internet is a great tool for everyone, including investors due to the response speed, and the amount of information that is exchanged. Transactions are executed very quickly, with the click of a button or a few keystrokes. However, the Internet is also another avenue for fraud. Investors must use caution and common sense when using the Internet for securities activities.

The fact that information appears on the Internet does not render additional credibility to the information. Be especially wary if the identity of the source is not identified.

Over the Internet, investors can purchase securities of a company directly from the company. Treat the online transaction as you would a regular investment, and make sure that the securities are registered or exempted under both federal and state law.

Alternatively, investors can trade securities through online brokers. Study and understand the terms, conditions and costs of these services, before you use them. Brokers must be licensed, and must be registered with the Securities Exchange Commission.

Finally, be very careful with information you gather from a “chat room.” It is in these “chat rooms” that persons posing as credible sources send out information to “pump” the price of a stock. Once the price of this stock has increased, they “dump,” or sell their stock at a great profit. These are called “pump and dump schemes.”

Steering Clear of Cyber fraud
The following steps, according to North American Securities Administrators Association (NASAA) and the Better Business Bureau (BBB) can help you keep on guard when you go online.

1. Do not expect to get rich quick – When evaluating an investment you have learned about online; exercise the same caution and deliberation that you would bring to any unfamiliar investment opportunity. The old rule “If it sounds too good to be true, it probably is” applies just as much to offers made in cyberspace as to those made through any other medium.

2. Download and print a hard copy of any online solicitation you are considering – This document may come in handy if problems develop later. Be sure to note the Internet address, date, and time of the offer.

3. Do not assume that an online computer service polices its investment bulletin boards – The vast majority of services take a “hands-off” approach to screening claims made in message postings, and even those that do minimal policing cannot possible keep up with the millions of messages posted each month. Remember, too, that anyone can set up a web site or advertise online, usually without any check on the legitimacy of their claims.

4. Never buy little known, thinly trade stocks strictly based on online hype – Low-volume stocks are the most susceptible to manipulation since their price can be moved through relatively small strategic trades. Even if a hyped stock starts to move up, proceed with caution – this may just be part of the overall manipulation scheme.

5. Be cautious about acting on the advice of individuals who hide their identity – The use of aliases on computer bulletin boards is intended to protect privacy, but con artists also can exploit it. People online may not be whom they claim. What may seem to be two or more different people talking up a stock may actually be a single individual with a personal interest in driving up its price through false information or baseless speculation. In addition, an impressive-looking website can be the product of a laptop computer on the other side of the world, far from the jurisdiction of U.S. law enforcement regulators.

6. Do not get taken in by claims of “inside information” such as pending news releases, contract announcements, and innovative new products – In cyberspace, practically anyone can say anything. Despite the abundance of “hot tips” littered across bulletin boards and discussion groups, it is extremely unlikely that genuine insider information will be publicly broadcasted on an investment bulletin board.

7. Be skeptical about claims that an online stock hypester has personally checked out an investment – One established tactic of investment schemers is to talk up companies, mining operations, and factories in remote corners of the country or the globe, where it can be impossible for the average investor to investigate or visit in person.

8. Take the time to investigate outside sources of information on any investment you learn about online – Check with a trusted financial adviser and always obtain written financial information, such as a prospectus, annual report, offering circular, and financial statements. Ask the online promoter where the firm is incorporated, and call the state’s Secretary of State or Commissioner of Securities to verify that information. Also, make sure that an investment opportunity and the person promoting it are properly registered with your state securities agency. In Hawaii, the agency to contact is the Business Registration Division of the Department of Commerce & Consumer Affairs.

9. If you think you have been duped, do not be embarrassed about complaining – Early action increases your chances of getting your money back and may prevent others from losing money. If you spot a potential online investment fraud, contact your state securities administrator, Better Business Bureau (808) 942-2355, or The Federal Trade Commission (415) 356-5270.

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