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Comfort Zone Investing: How Much Money Is Enough?

Comfort Zone InvestingWhen John D. Rockefeller was asked how much money was enough, he replied: "A little bit more." If you're looking to make a little bit more on your investments, here are places to find extra cash. Unfortunately, rates are very low and the emphasis has to be on "little" rather than "more."

Please note: none of these stocks or funds are recommended as buys. They may, however, be a good place to start research.

Continue reading Comfort Zone Investing: How Much Money Is Enough?

Bank of Japan is buying Japanese government bonds

Japan, the world's second largest economy is facing a sharp downturn. To try and stimulate its economy, Japan is using the financial tools used by the US and UK. The Bank of Japan( BoJ) said that it is increasing its purchases of JGB's (Japanese Government Bonds) from y 1,400 billion to y 1,800 billion per month. A central bank buying its bonds has the effect of creating new money that will flow into the economy. Japan is careful to say that this is not "quantitive easing" or just printing money, but in reality it will have the same effect.

Continue reading Bank of Japan is buying Japanese government bonds

Fund expert offers tip on TIPs

"Like other US Treasuries, Treasury Inflation Protected Securities (TIPs) have virtually no credit risk," explains fund expert Mark Salzinger.

The editor of The No-Load Fund Investor adds, "Unlike other US Treasuries beyond short-term bills, however, TIPs also have no inflation risk." Here, he looks at an EYF based on TIPs.

"Twice a year, TIPs' principal valuis are adjusted upward by the amount of the increase in the Consumer Price Index Urban (CPI-U), thus protecting their holders against increases in inflation.

"The total return of the bond equals its yield plus the change in principal value based on inflation, changes in real interest rates (published interest rates minus inflation) and supply-demand in the market for TIPs.

"TIPs' yields are lower than those of regular Treasury sercurities of similar maturities. That's one of the disadvantages of TIPs.

"The other is that any increase in principal value due to the biannual inflation adjustment gets taxed every year as if it were received income.

Continue reading Fund expert offers tip on TIPs

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DJIA-89.2312,801.23
NASDAQ-23.352,903.88
S&P 500-9.311,342.64

Last updated: February 12, 2012: 01:03 PM

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