Should Small Cap Penny Stocks Be Part of Your Portfolio?

The small cap penny stocks are shares of smaller companies whereas the penny stock shares of larger companies are called big cap stocks. You may not recognize the term small cap penny stocks but they became more popular recently. If you don’t know about the great opportunities small cap penny stocks present, then you may lose some big investment opportunities.

The small cap penny stocks have potential to grow into big cap stocks and have low valuations; hence they are considered a good investment plan. You may wonder about the meaning of the word “cap”. Cap is referred to the business capitalization of the penny stock market and is calculated with the multiple stock prices of various good shares. Some investors fix the small cap shares at a low priority while others prefer them with higher priority. Some investors feel that the market cap with less than 500 million dollars is always risky and the investment may experience loss because of the low market capitalization. Read the rest of this entry »

We all know what cash is; it’s the stuff we have in our wallets and pockets.

But there is a different way to look at cash in the market.

This is when you invest in things such as money market funds, treasury bills, and overnight government repurchase agreements.

There are stable value funds that can be a shorter term investment, usually found in 401(k) plans.

Here are three reasons why you should make a cash investment position a part of your plan:

One reason is flexibility.

You are able to benefit from opportunities if you have a percentage of your portfolio in cash. Read the rest of this entry »

By Dr. Scott Brown

Let me tell you about some legal ways to avoid getting taxed on profits from the stock market. You can make a lot of money now with the stock market as low as it is at this time as I teach you in my home study course. The very best way is to buy and sell your stock through Individual Retirement Accounts (IRAs).

IRAs can help you legally avoid taxes and they also add a fantastic boost to your retirement plans. The IRA was originally developed in 1974 for people not covered by a company pension plan. “The individual retirement account legislation allowed the average person a chance to put money into a tax-advantaged account,” said Bruce Grace, a Chartered Financial Analyst and Assistant Professor of Finance at Morehead State University. Read the rest of this entry »

By Daniel Lamaute

A SEP is a special type of IRA. Under a SEP plan, the employer creates an IRA account for each eligible employee, hence the name SEP-IRA. A SEP is funded solely with employer contributions. Employees do not make contributions to their SEP-IRA retirement account. Any money that goes into a SEP automatically belongs to the employee. Thus, the employee has the right to take his SEP IRA account money with him whenever he stops working for the company.

Businesses of any size can establish a SEP, but the SEP retirement plan is utilized mostly by the self-employed and the small business with few employees. The SEP IRA rules dictate that if the business contributes for one employee, (i.e., the owner), then the business must contribute proportionately for all of the employees. With few exceptions, anyone who works for the business must be included in the SEP. However, you can exclude from participating in the SEP plan anyone who: Read the rest of this entry »