Investing in telecommunications could involve investment in a wide range of different industry specific aspects and companies. Telecommunications includes television, radio, telephone, cell phone, and even broadband communications companies and technologies. Some of the major companies will have branches devoted to a number of different areas while other companies will specialize only in one thing. Also, portfolios have grown in size due to the merging of many of the larger telecommunication companies – mergers that seem to be continuing on a never-ending basis. As more mergers and acquisitions occur it has made it easy for all of these companies to evolve even further.

Investing in telecommunications may mean actually investing in one of the major carriers or providers of telecommunications, like Verizon. Of course, your money could also be invested in companies that provide the fiber optic cables that carry today’s signals across the world or the equipment that the major carriers use to create their infrastructure. Both are relatively safe bets, and rather than bankruptcy the majority of the various companies usually end up merging with other companies instead. In short, telecommunications is among the most stable options for investing your money and investing in telecommunications is very likely to pay off.

Broadband is growing rapidly and is likely going to continue to do so. Whether you invest in infrastructure companies, equipment manufacturers, or the providers themselves it’s in your best interest to do a bit of research into all areas of each company no matter how large or small it may be. Investing in telecommunications is well worth doing, but like any other investment opportunity it should only be done after you examine the risks and benefits associated with it. This way you can make an investment you’ll be confident in and ensure success.

The Ideal Fine Wine Investor

Although almost anyone with a budget can make a fine wine investment, it’s usually only those passionate about wines that truly reap the benefits. That’s because it takes a deep knowledge of the market and a certain shrewdness to be a successful wine investor in the long run.

But above all, to succeed in fine wine investments you need an exquisite taste, which you usually develop only if you’re passionate about wines and drink them yourself with pleasure. Enjoying drinking wine also comes of help in case the investment goes wrong. If you take pleasure in drinking the fine wine you’ve bought, you’re not likely going to complain if you find you cannot sell some bottles.

Many Varieties to Choose From

Despite the many, many wines produced in Europe, relatively few are regarded as worthy of investment. Those few are the fine wines, the best bottles renowned vineyards can produce. Such bottles see their value dramatically increased by their label, and whether the actual quality of the wine is great or not, their value does not easily decrease.

If you’re serious about investing, choose the best bottles you can get your hands on, even if this may mean buying smaller quantities of wine. When it comes to wine investments, quality is clearly far more important that quantity.

You Have to Do More Than Just Buy It

Fine wine needs to age well to reach its full potential. And since good wine can easily be ruined by poor storage conditions, it’s imperative that you store it in a controlled location, with an ideal temperature and humidity.

When investing in wine be prepared to support additional costs besides the investment proper. Here’s where wine lovers have an advantage – they are likely to already have a cellar suitable for wine storage.

Invest on Your Own or Let Experts Do It for You?

Investing through investment experts eliminates your worries about storage, and maybe even those about buying and selling. But it also diminishes your returns on investment. You’ll be expected to pay for the services others handle for you, either as a percentage of the final sale, or, more commonly, as a recurring fee. Joint fine wine investments are more accessible but also less rewarding, because you usually won’t have the wine in your cellar, nor would you be able to drink it.

Investing in fine wine is about the best alternative investment you can settle for if you are wine lover yourself. Your exquisite taste will help you recognize the best bottles, while your connoisseur’s thirst will make you gladly consume any wine you don’t manage to sell.

What are the Prerequisites of Institutional Investment?

Excellent financial planning: Before going for this, the company needs to have a financial plan in place. Financial planning will give a proper dimension to the investment planning as it lets the companies know how much they can investment and how much risk they can afford. As the amount of investment is very high even the risks are high. If done in a systematic and carefully researched manner institutional investments gain good returns on their investments and in case the damage can be hard to pay back.

Sound Market knowledge: Every company that has made a fortune in it, has a strong base in the form of sound market knowledge. There are market research experts who keep their eyes on the stock markets 24/7. They assist investors in taking crucial decisions like when, where and how to invest capital, the time duration and the possible risks that can be encountered in the worst case scenario. Stock market research is like the backbone of institutional investment.

A growing number of financial establishments are turning towards it, main reason being the high profit margins. As these companies purchase large number of shares at a single point of time they are eligible for discounts on the brokerage charges too. The individuals who invest their money in small amounts in companies who do institutional investments are also at benefit, as they too are rewarded with high dividends. There are many such benefits of investing in a firm that carries out institutional investment but the fact that there is certain amount of risk involved in the stock market cannot be ignored. The companies that are actively undertaking institutional investments are many and thus individuals should do a background check and then decide where they want to put their capital.

Main stream market investment is and has always been a high risk high returns business with institutional investments coming in the picture the probability of high returns is always present. The companies have become the risk takers.

People with little capital may not be eligible for this, but does not keep them away from enjoying the benefits. They can invest money in companies that do such investments and ultimately get good returns.

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When we invest in anything, we are attempting to maximize our return on that investment, given some level of acceptable risk. All financial investments involve a balance between return and risk. Investing in art is no different. We have to ask: “What is the expected rate of return, and what are the risks?” Besides these criteria, art investment offers other investment advantages. So let’s take a look at these issues in art investment.

Rate of Return

Calculating a rate of return on art investment is difficult. The difficulty lies in devising a performance index that accurately reflects the movement in the prices of art. Since we are concerned with investment, I am considering only what I call investment grade art. This is the art that is offered by the major auction houses such as Christie’s and Sotheby’s — not the art you might find in a downtown gallery. Admittedly, this criterion is not precise. There have been several indexes created to measure the changes in art prices. One of the most respected indexes of investment grade art is the Mei Moses All-Art Index. The index was developed by two New York University professors, and is often quoted as the most reliable in describing art price fluctuations. This index indicates that art prices have almost matched the performance of stocks, and that over some periods, the rate of return on art has beaten the stock market. This would put the annualized rate of return somewhere close to 6%.

Other estimates for price growth in art have not been so optimistic. In fact, some estimates place the rate of return near zero. A study directed by Luc Renneboog at Netherlands, Tilburg University estimates that the rate of growth from 1970 to 1997 to be around 4%. We can speculate that the long-term rate of return for investment grade art is somewhere between 2% and 6% with 4% probably a fairly decent estimate depending on the art bundle.In today’s economy where certificates of deposit are yielding close to 0%, a 4% yield on fine art would appear attractive.

Asset Diversification

It is a fundamental premise of financial management that asset diversification can reduce overall risk of a portfolio of assets. Adding new financial assets to any portfolio should serve to reduce risks, especially if the performance of the new asset does not correlate directly with other assets in the portfolio. Although price swings of stocks and fine art are often paralleled, they are not always perfectly in sync. Stock prices usually reflect economic activity whereas fine art is not as directly impacted.

Inflation Hedge

Real property can provide a hedge against inflation. Whereas inflation can eat into the value of monetary based assets such as bonds and certificates of deposits. Like real estate, coins, and gold, art is real property. Although the supply of art continues to grow, the demand for investment grade art is growing even faster. Renoir and Picasso have long stopped painting. Periods of hyperinflation, have always seen huge increases in the prices of investment grade fine art.

Tax Advantages

As it has been noted earlier long-term profits are taxed at lower rates than ordinary income. Plus, a portfolio in art offers the possibility of other tax advantages if the owner donates the art to qualifying charities, especially museums. In the same vein, fine art assets can play a significant role in an individual’s estate planning.

Although current reduced tax rates for long-term gains and estate taxes have worked to reduce many of these tax advantages, these tax cuts are scheduled to expire in the next few years. New tax schedules could emerge again favoring the tax advantages of art assets.

The Joy of Collecting

There are other gains that can be derived from art investment — the joys of collecting and displaying an art collection. One might argue if you are going to collect art anyway, you might as well pursue the collecting seriously with an aim of ultimately making a profit from the process. There is a danger of developing the mindset of a collector if you are seeking financial gain.

Investors make money in art when they sell to collectors — not the reverse.

Summary

So why invest in art? Probably the most compelling reason is the reduction of portfolio risk by diversification and as an inflation hedge. Although a 4-6% return on investment surpasses money-based assets, it falls behind stocks and precious metals. However, price reflects supply and demand. The supply of investment grade art is diminishing as contemporary artists gravitate to electronic art mediums. Paint on canvas for the current generation of artists is passé, and new electronic forms of art-making add nothing to inventory of marketable art. This trend may not be immediately felt on the art market, but could have a tremendous effect in twenty or thirty years. And art investment is always a long-term proposition.

By combining the possible financial gains from investing in art with the emotional pleasure of owning and displaying the art, then art investment can become “profitable.”

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Passive income idea 1 Take $2,500 and buy two websites (that are already making money) from FLIPPA.

Most of the websites listed for sale can be sorted by earnings and price. Look for a websites that are making $150 or more per month OR that have a high amount of traffic coming in. If the website has a high amount of traffic, but no ads, you can place ads on your site for free or sell affiliate products. This should definitely give your earnings a boost.

But, trust me….if a site is listed for $2,000 or more it is going to have some decent traffic. Join some forums and further promote the site and it’s products. Use some SEO strategies and bring even more visitors to the site. You should be able to make at least one affiliate sale in addition to the $300 you are already making. Let’s say (conservatively speaking you sell one affiliate product at $90 and receive $60 commission. Your total income from this strategy is $360. You will be more than halfway there.

Note I just looked at Flippa’s listings and they have one site listed for $1125 that is making $950 per month!!

Passive income idea 2 Take $2000 and buy a stock option credit spread with one month left to expiration

Buying a stock option spread greatly reduces the amount of money you need to invest when compared to buying that same stock straight out. (I used option spread trading to turn $239 into $1350 in six months so it works, trust me).

Use some technical analysis (fundamental analysis is not a big deal here, because this is a short term income strategy) to figure out if the stock is in an uptrend, flat, or in a downtrend. I will give you a hint…look for trend lines.

Once you determine the direction of a particular stock, do a Bull credit spread (if stock is going up) or a bear credit spread (if stock is going down) on that stock. The beauty about credit spreads is that you get your money upfront and all you have to do is wait for the stock options to expire worthless. If you time this right you should be able to set up a position that would give you about a 30% return with relatively low risk. Your 30% target return with this strategy would be $600.

Combine both passive income strategies and you have just added (at least) $960 in passive income to your life. Ok, I guess i told a bit of a lie…it’s not 10% like we initially planned. It’s more like a disappointing 20% ha ha.

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