Is Out-Of-State Real Estate Investing Right for You?

Have you made up your mind to start investing in real estate, but you’re torn in deciding where to invest?

Are you thinking about making a local investment, but wondering if an out-of-state investment might be better?

This is one of the first of many choices you’ll have to make when you decide to invest in real estate: the simple question of where you should invest your hard-earned dollars. While there are definite benefits to investing in your area, there are also some potentially profit-limiting downsides.

That’s not to say investing in outside areas doesn’t have its own pros and cons. Let’s take a look at both and see why out-of-state real estate investing might be a profitable option you have not yet explored.

Investing Locally

This is the most obvious choice for many real estate investors, but is it really right for you?

If you choose to buy a property local to you, you’ll rest easier about your investment since you know the market. First, you know your competition. You might know the names of professionals you can trust and you’ll have an intimate understanding of what the cost of living is for that area and how to make things more affordable.

Second, if you like to be hands-on, it will be much easier for you since you’re right there. If you want to see the property, it’s just a short drive away. If you want to talk to the property manager face-to-face, you just put it on your calendar for the end of the day.

Drawbacks to Local Investments

On the other hand, investing solely local can narrow your options. Not every market has the inventory of good investment opportunities that you can avail yourself of if you invest out-of-state. The local inventory of available properties may or may not be big enough or well-suited for investment opportunities.

You also run into the problem of whether your local market is the one you want. The recession made a huge impact on housing markets throughout the country and some areas have recovered at different paces than others. You might find yourself out-priced in your current market, but even if you aren’t, you might not be able to see a favorable future where you’re at.

Investing Out-of-State

If you decide to invest out-of-state, you can greatly increase your options. You can literally choose any location, any market and invest in properties there. Whether you want to invest in Florida vacation homes and coastal villas or homes in the suburbs of Detroit, the sky’s the limit. You can make your investment fit your price point and interests.

By investing out-of-state, you can put your money to work in markets with high ROI. You pick and choose which markets you’re interested in, and which ones are rising stars in the real estate investment scene, ignoring your own market’s changes.

Investing out-of-state also allows you to scale based on your needs. For many would-be investors, their local market is priced too extravagantly to make real estate investment prudent. The cost of living in a different state, just a few borders east or west, might be considerably lower. That means you can snatch up excellent properties at a much lower cost than you might in your own market.

Even better, you can snag those investment deals on excellent properties that would go for three to four times as much, if not more, in your own local market. Your purchasing power becomes much stronger in other markets, because everything’s relative.

Challenges of Out-of-State Investments

There are still some challenges to these remote investments. First of all, you have to learn who you can trust and maintain the peace of mind that comes from having easy local access to your investment. You also have to be able to trust that the property you’re investing in is what it’s advertised as.

The property is also more difficult to visit if you like to be hands on. You might have to fly out to visit the property, which some people enjoy but others are seriously bothered by. If you are the type of investor who prefers the more passive turn-key approach, this is an excellent opportunity.

Finally, the market won’t be what you’re used to. Nothing will be quite the same as being there and immersing yourself in the market, but you can learn and study. You just have to rely on someone else to have knowledge of the nuances of the market.

Doing Out-of-State Right

There is a solution to all of the challenges of real estate investing outside your state. When you find a reputable, proven company to handle your turn-key real estate transaction, you have someone you can count on to know the market you’re investing in. Here are the main reasons you should find a partner to work with you on your out-of-state investments.

  • They can keep a more educated eye on the market, since they know all of the nuances of that area.
  • They’ll serve as your presence near your investment, keeping everything on track, so you don’t have to make numerous trips to the property.
  • If the turn-key real estate investment firm is reputable, they want you to succeed. This means they’ll do anything they can to make sure you do succeed.

The question becomes, whom can you trust? You want to make sure you engage in a partnership with a firm who is reputable, knowledgeable and engaged in your market. Referrals from other investors are key, so be on the lookout for like-minded people who have been there and done that.

You should also investigate what the turn-key operation offers you, and what their fee or cut of your profit is. Ideally, you’ll want a partner who can help you throughout your investment lifecycle, from acquiring the property to managing it.

Getting Started

We’ve gone over the benefits and drawbacks of out-of-state investing, so now the decision is yours to make. Do you still want to invest locally or have you realized that the time is ripe to diversify your portfolio and invest in out-of-state properties? The benefits of out-of-state real estate investment are huge and the drawbacks can easily be mitigated by partnering with someone in the area in which you’re investing.

Organic Food As a Fast-Growing Segment of US Agriculture

Lately organic food is gaining popularity, the trend being stable for at least five years. The recent research conducted by the Food Marketing Institute provides proof that majority of American citizens buy organic food at least once a month.

This segment of US agriculture shows rapid growth. Only in 2007 organic food retailers earned more than 20 billion dollars. The annual growth of organic dairy industry is estimated to be 18 percent by the year 2010.

Let us have a look at the main idea beneath organic food production, i.e. using materials and practices that could improve the ecological balance of natural systems. We cannot be absolutely sure that organic products are free of residues yet there are best practices involved in production that are directed at minimizing pollution from air, soil and water. And organic food production is controlled y strict state and federal standards, too.

Thus mostly people tend to treat organic food as that which is devoid of fertilizers or pesticides. Nonetheless the United States Department of Agriculture (USDA) labelled food as organic if it is 95 percent pure.

Sometimes products contain only 70 percent of organic materials or even less. This kind of food cannot be called organic but it can be labelled “made with organic ingredients”. Thus you should differentiate between these forms of products at the supermarket.

De facto non-organic practices in the USA release more than one billion pounds of pesticides. The USDA’s tests prove that organic products contain three or four times less pesticide residues than in conventionally produced fruits and vegetables.

And conventional practices in agriculture can result in water contamination. According to Environmental Working Group’s research that was conducted back in 1955 across the Corn Belt, in Louisiana and Maryland, scientists concluded that tap water pesticide contamination was at health risk levels. The solution was in organic farming methods, as well as developing the soil.

It is important to notice that the term organic has another meaning than organic. Sometimes food producers seeking higher sales and good reputation make tricks by labelling their food as natural as it does not comply to organic food standards.

The Food and Drug Administration (FDA) allows using the term natural for food that does not contain any added colourings, artificial ingredients or synthetic substances.

That is why more and more non-organic producers try to present their products as good for health and thus, in 2008, about one third of all new US food and beverage products were labelled with the word “natural”.

Finance, Credit, Investments – Economical Categories

Scientific works in the theories of finances and credit, according to the specification of the research object, are characterized to be many-sided and many-leveled.

The definition of totality of the economical relations formed in the process of formation, distribution and usage of finances, as money sources is widely spread. For example, in “the general theory of finances” there are two definitions of finances:

1) “…Finances reflect economical relations, formation of the funds of money sources, in the process of distribution and redistribution of national receipts according to the distribution and usage”. This definition is given relatively to the conditions of Capitalism, when cash-commodity relations gain universal character;

2) “Finances represent the formation of centralized ad decentralized money sources, economical relations relatively with the distribution and usage, which serve for fulfillment of the state functions and obligations and also provision of the conditions of the widened further production”. This definition is brought without showing the environment of its action. We share partly such explanation of finances and think expedient to make some specification.

First, finances overcome the bounds of distribution and redistribution service of the national income, though it is a basic foundation of finances. Also, formation and usage of the depreciation fund which is the part of financial domain, belongs not to the distribution and redistribution of the national income (of newly formed value during a year), but to the distribution of already developed value.

This latest first appears to be a part of value of main industrial funds, later it is moved to the cost price of a ready product (that is to the value too) and after its realization, and it is set the depression fund. Its source is taken into account before hand as a depression kind in the consistence of the ready products cost price.

Second, main goal of finances is much wider then “fulfillment of the state functions and obligations and provision of conditions for the widened further production”. Finances exist on the state level and also on the manufactures and branches’ level too, and in such conditions, when the most part of the manufactures are not state.

V. M. Rodionova has a different position about this subject: “real formation of the financial resources begins on the stage of distribution, when the value is realized and concrete economical forms of the realized value are separated from the consistence of the profit”. V. M. Rodionova makes an accent of finances, as distributing relations, when D. S. Moliakov underlines industrial foundation of finances. Though both of them give quite substantiate discussion of finances, as a system of formation, distribution and usage of the funds of money sources, that comes out of the following definition of the finances: “financial cash relations, which forms in the process of distribution and redistribution of the partial value of the national wealth and total social product, is related with the subjects of the economy and formation and usage of the state cash incomes and savings in the widened further production, in the material stimulation of the workers for satisfaction of the society social and other requests”.

In the manuals of the political economy we meet with the following definitions of finances:
“Finances of the socialistic state represent economical (cash) relations, with the help of which, in the way of planned distribution of the incomes and savings the funds of money sources of the state and socialistic manufactures are formed for guaranteeing the growth of the production, rising the material and cultural level of the people and for satisfying other general society requests”.
“The system of creation and usage of necessary funds of cash resources for guarantying socialistic widened further production represent exactly the finances of the socialistic society. And the totality of economical relations arisen between state, manufactures and organizations, branches, regions and separate citizen according to the movement of cash funds make financial relations”.
As we’ve seen, definitions of finances made by financiers and political economists do not differ greatly.
In every discussed position there are:

1) expression of essence and phenomenon in the definition of finances;

2) the definition of finances, as the system of the creation and usage of funds of cash sources on the level of phenomenon.

3) Distribution of finances as social product and the value of national income, definition of the distributions planned character, main goals of the economy and economical relations, for servicing of which it is used.

If refuse the preposition “socialistic” in the definition of finances, we may say, that it still keeps actuality. We meet with such traditional definitions of finances, without an adjective “socialistic”, in the modern economical literature. We may give such an elucidation: “finances represent cash resources of production and usage, also cash relations appeared in the process of distributing values of formed economical product and national wealth for formation and further production of the cash incomes and savings of the economical subjects and state, rewarding of the workers and satisfaction of the social requests”. in this elucidation of finances like D. S. Moliakov and V. M. Rodionov’s definitions, following the traditional inheritance, we meet with the widening of the financial foundation. They concern “distribution and redistribution of the value of created economical product, also the partial distribution of the value of national wealth”. This latest is very actual, relatively to the process of privatization and the transition to privacy and is periodically used in practice in different countries, for example, Great Britain and France.

“Finances – are cash sources, financial resources, their creation and movement, distribution and redistribution, usage, also economical relations, which are conditioned by intercalculations between the economical subjects, movement of cash sources, money circulation and usage”.
“Finances are the system of economical relations, which are connected with firm creation, distribution and usage of financial resources”.

We meet with absolutely innovational definitions of finances in Z. Body and R. Merton’s basis manuals. “Finance – it is the science about how the people lead spending `the deficit cash resources and incomes in the definite period of time. The financial decisions are characterized by the expenses and incomes which are 1) separated in time, and 2) as a rule, it is impossible to take them into account beforehand neither by those who get decisions nor any other person” . “Financial theory consists of numbers of the conceptions… which learns systematically the subjects of distribution of the cash resources relatively to the time factor; it also considers quantitative models, with the help of which the estimation, putting into practice and realization of the alternative variants of every financial decisions take place” .

These basic conceptions and quantitative models are used at every level of getting financial decisions, but in the latest definition of finances, we meet with the following doctrine of the financial foundation: main function of the finances is in the satisfaction of the people’s requests; the subjects of economical activities of any kind (firms, also state organs of every level) are directed towards fulfilling this basic function.

For the goals of our monograph, it is important to compare well-known definitions about finances, credit and investment, to decide how and how much it is possible to integrate the finances, investments and credit into the one total part.

Some researcher thing that credit is the consisting part of finances, if it is discussed from the position of essence and category. The other, more numerous group proves, that an economical category of credit exists parallel to the economical category of finances, by which it underlines impossibility of the credit’s existence in the consistence of finances.

N. K. Kuchukova underlined the independence of the category of credit and notes that it is only its “characteristic feature the turned movement of the value, which is not related with transmission of the loan opportunities together with the owners’ rights”.

N. D. Barkovski replies that functioning of money created an economical basis for apportioning finances and credit as an independent category and gave rise to the credit and financial relations. He noticed the Gnoseological roots of science in money and credit, as the science about finances has business with the research of such economical relations, which lean upon cash flow and credit.
Let’s discuss the most spread definitions of credit. in the modern publications credit appeared to be “luckier”, then finances. For example, we meet with the following definition of credit in the finance-economical dictionary: “credit is the loan in the form of cash and commodity with the conditions of returning, usually, by paying percent. Credit represents a form of movement of the loan capital and expresses economical relations between the creditor and borrower”.

This is the traditional definition of credit. In the earlier dictionary of the economy we read: “credit is the system of economical relations, which is formed while the transmission of cash and material means into the temporal usage, as a rule under the conditions of returning and paying percent”.
In the manual of the political economy published under reduction of V. A. Medvedev the following definition is given: “credit, as an economical category, expresses the created relations between the society, labour collective and workers during formation and usage of the loan funds, under the terms of paying present and returning, during transmission of sources for the temporal usage and accumulation”.

Credit is discussed in the following way in the earlier education-methodological manuals of political economy: “credit is the system of money relations, which is created in the process of using and mobilization of temporarily free cash means of the state budget, unions, manufactures, organizations and population. Credit has an objective character. It is used for providing widened further production of the state and other needs. Credit differs from finances by the returning character, while financing of manufactures and organizations by the state is fulfilled without this condition”.

We meet with the following definition if “the course of economy”: “credit is an economical category, which represents relations, while the separate industrial organizations or persons transmit money means to each-other for temporal usage under the conditions of returning. Creation of credit is conditioned by a historical process of fulfilling the economical and money relations, the form of which is the money relation”.

Following scientists give slightly different definitions of credit:
“Credit – is a loan in the form of money or commodity, which is given to the borrower by a creditor under the conditions of returning and paying the percentage rate by the borrower”.
Credit is giving the temporally free money sources or commodity as a debt for the defined terms by the price of fixed percentage. Thus, a credit is the loan in the form of money or commodity. In the process of this loan’s movement, a definite relations are formed between a creditor (the loan is given by a juridical of physical person, who gives certain cash as a debt) and the debtor.
Combining every definition named above, we come to an idea, that credit is giving money capital of commodity as a debt, for certain terms and material provision under the price of firm percentage rate. It expresses definite economical relations between the participants of the process of capital formation. Necessity of the credit relations is conditioned, from one side, by gathering solid quantity of temporarily free money sources, and from the second side, existence of requests of them.

Though, at the same time we must distinguish two resembling concepts: loan and credit. Loan is characterized by:

o Here, the discussion may touch upon transmission of money and also things form one side (loaner) to another (borrower): a)under the owning of the borrower and, at the same time, b) under the conditions of returning same amount or same quantity and quality of the things;

o The loaning of money may bear no interest;

o Any person may take part in it.
With the difference with loan, credit, which is somehow a private occasion of the loan, represents:

o One side (loaner) gives to the second one (borrower) only money, and _ for temporal usage;

o It may not bear no interest (if the assignment doesn’t foresee something);

o In it creditor is not any person, but a credit organization (at the first place, banks).
So, a credit is the bank credit. To our mind, it is not correct to use “credit” and “loan” as the synonyms.
Banking crediting is the union of relations between bank (as a creditor) and its borrower. These relations touch upon:

a) Giving a certain amount of money to the borrower for definite purpose (though, we meet with the so-called free credits, aims and objects of crediting are not appointed in the assignment);

b) Its opportune returning;

c) Getting percentage rate from the borrower for using the sources under his/her disposal.
The essential foundation of the credit essence and its important element is existence of trust between the two sides (in Latin “credo”, from which comes the word “credit”, means “trust”).
From the position of circulation of money forms (in the abstraction, historical process of formation economical relations and social budget and banking systems expressed by them) comparing different definitions of finances and credit, the paradox conclusion appears: credit is the private occasion of finances. And truly, from the position of movement of the money forms, finances represent the process of formation and usage of the funds of cash means. Very often such movements are fulfilled without returning, but sometimes, it is possible to give loans from the budget for the investment projects of other needs. Also, when a manufacture or corporations use their cash funds and we mean the finances of industrial subject, such usage may be realized as inside the manufacture or corporation (there is no subject about returning or not returning of the usage), so gratis under conditions of returning. This latest is called commercial form because of transmitting the sources to others, but even in this occasion, it is the element of financial system of the manufacture and corporation.

From the point of cash means movement, main character of credit is the process of formation and usage of the funds of cash means under the conditions of returning and, as a rule, taking the value-percentage. If gating the credit value doesn’t take place (even in the exceptional occasions), according to the movement form, credit becomes a private occasion of finances, as from the net financial funds (consequently from the state budget) the loans which bear no interests may be used. If gating credit value takes place, by the appearance form, credit is discussed to be financial modification.

From the historical point of view, finances (especially in the sort of the state budget) and credit (beginning with usury, later commercial and banking) were developing differently for considering credit to be the part of finances. Though, from the genetic-historical point of view, previous loaners, before giving loan, needed gathering the permanent capital not returning, that is the net financial foundation. The banks analogously needed concentration of the important own capital for influxing the consumers’ means and for getting higher percentage rate under the conditions of returning. Herewith, exactly on the financial basis, in the sort of financial fund (which later partially becomes loan fund) part of the bank capital appears to be the reservation (insurance) part of the fund, which by nature is financial and not loan. So notwithstanding the essential distinctions between finances and credit form the genetic-historical point of view, credit appears to be formed from finances and represent their modification.

From the essential position of expressing economical relations of finances and credit, we meet with cardinal distinctions between these two categories. Which mostly expressed by the distinction of the movement forms notwithstanding they are returnable or not. Finances express relations in the aspects of distribution and redistribution of social product and part of the national wealth. Credit expresses distribution of the appropriate value only in the section of percentage given for loan, while according to the loan itself, a only a temporal distribution of money sources takes place.
Herewith, there is a lot of common between the finances and credit as from the essential point of view, so according to the form of movement. At the same time, there is a significant distinction between finances and credit as in the essence, so in the form too. According to this, there must be a kind of generally economical category, which will consider finances and credit as a total unity, and in the bounds of this category itself, the separation of the specific essence of the finances and credit would take place.

Funding of the cash means is common to the researched economical categories. It takes place in any separate system of finances and credit, which have been touched upon during the analyses of defining finances and credit. Word combination “funding of the cash sources (fund formation)” reflects and defines exactly essence and form of economical category of more general character, those of finances and credit categories. Though in the in economical texts and practice, it is very uncomfortable to use a termini, which consists of three words. Also, “unloading” with an information hardens greatly its influxing into the circulation even in the conditions of its strict substantiation and thoroughness.
In the discussing context we consider:

1) wide and narrow understanding of economical category of the finances;

2) discussing finances in narrow understanding under general traditional meaning;

3) discussing finances, as funding of the cash means, in wide understanding, which concerns finances – in narrow meaning and credit – in complete meaning.
Termini “funding” and its equivalent “fund formation” are used by us as the purposeful structuring of cash means, which is based on two poles – accumulation of money sources (gathering) and its usage for definite purpose in the way of financing and crediting.
We have established a new termini – “finance-investment sphere” (FIS). Analyses about interrelation of finances and credit made by us give us an opportunity of proving, that in the given termini, the word “financial” is used with the meaning of funding cash sources, its purposeful structuring. In this process we consider at the same time financial, credit and investments’ economical categories.

Let’s sum up middle results of discussing new concept – “finance-investment sphere” and discuss its investment consisting parts.

The concept “investments” was brought into the native economical science from the West. In the Soviet economical science they for a long time used in the place “investments” the termini “capital placement”, which expressed the usage of the industrial factors in the sphere of real industrial activities during realization of capital projects. From one glance, this termini in its concept is identical to the “investments”, consequently it is possible to use them as synonyms. Though the termini “investments” and “investing” have the advantage towards the termini “capital placement” from linguistic and philological points of view, because they are expressed with one word. This is not only economical and comfortable in the process of working with the termini “investment” itself, but also it gives an opportunity of termini formation. More concretely: “investment process”, “investment domain”, “finance-investment sphere” – all these termini are much more acceptable.
Changing native economical termini with foreign ones is purposeful, if it really matters (by keeping parallel usage of the native termini for the inheritance). Though we must not change native economical termini into foreign ones all together, when by ordinal traditional language easy to explain private and narrow concrete processes and elements get their own termini. The “movement” of these termini is approved in the narrow professional bounds, but their “spitting out” into the economical science may turn economical language into the tangled slang.

Let’s discuss termini – “investment” and “capital placement’s” usage in the economical literature.
Investments are placement of funds into the main and circulation capital for the purpose of getting profit. “Investments in material assets – are the placements of funds into the mobile and real estate (land, buildings, furniture and so on). Investments in financial assets are the placements of funds into the securities bank accounts and other financial instruments”.

We don’t meet with the termini “investments” in the earlier economical dictionary, but we meet the combined termini “investment policy” – the union of the industrial decisions, which guarantee main directions of the capital investments, the activities of their concentration in the determinant suburbs, on which the reaching of planned rates of development of the society production is depended, balancing and effectiveness, getting more and more production and profit of the national income for every lost Ruble”. For today, in the most actual definitions, the capital investments are bounded only by financial means, when not only financial, but also the investment of natural, material-technical and informational resources takes place. Labour resources take an actual place in the investment process. They themselves fulfill this or that investment process.

A positive side of the discussed definitions is that they connect investment policy and capital placements (investments):

– economical development according to the key directions to the concentration;

– providing high rates of economical growth;

– raising an economical effectiveness, which is expressed:

a) by growing the throw off of the production and national income for every lost Ruble;

b) by fulfilling the branch structure of the investments;

c) by improving their technological structure;

d) by optimization of their further production structure.

Compared with such definition of the investments (capital placement) the definition of investments in the dictionary attaching the “Economics” seems to be unimproved: “investments – the expenses of gathering production and industrial means and increasing material reserve”. In this definition current expenses (production expenses) are mixed with the investment (capital) expense. Also, not the investment expenses but (though the investments are followed by the appropriate expenses) exactly advancing. It differs from the expenses by that the means (means) are put by returning the advanced values, also, under the conditions of growth, to which the concept-advanced capital is corresponding. the advancing may be realized in the money, natural-material and informational forms.

Except the termini “investments”, there are two more termini related with the investment. They are shown below.

“Human capital investment” – any activity provided for rising the workers labour productivity (in the way of growing their qualification and developing their abilities); at the expenses of improving the workers’ education, health and raising the mobility of the working forces”. It is very useful to use the mentioned termini, though it needs one correction: the human capital investments do not concern only workers, but also the servants, representatives of every kind of labour.
“Investment commodity, capital goods – a capital.”

In the official manuals of political economy of the reformation time the capital investments are discussed as “expenses for creating new main funds and widening, reconstruction and renewing the active ones”. In this definition the investments (capital placements) during separation of the forms (types) of further production of the main funds are bounded only by main funds (without increases of the circulation funds and insurance reserves):

a) creating new ones;

b) widening;

c) reconstruction;

d) renewing.

Also, the concept of the industrial gathering appears, at the expenses of widening of basic, circulation funds and also insurance reserves takes place”.

You’ll meet below the definitions of investments from “the course of economy”: the investments are called “placements of fund into the basic capital (basic means of production), reserves, also other economical objects and processes, which request long-termed influxing of material and cash means. “According to the division of capital into physical and money forms, the investments too must be divided into material and cash investments”.

They apportion investment commodity, to which belong industrial and nonindustrial building objects, vehicles purposed for changing or widened technical park and the furniture, increasing reserves and others.

“They call the total investments of production an investment product, which is directed towards keeping and increasing the basic capital (basic means) and reserve. Total investments consist of two parts. One of them is called the depreciation; it represents important investment resources for compensation of renewal till the level of before industrial usage, wearing out and repairing of the basic means. Second consisting part of the total investments is represented by net investments – capital investments for the purpose of increasing basic means”. Depreciation is not a compensation resource of wearing the basic funds out, but it is the purposeful financial source of such resources.
Human capital investment is “a specific kind of investments, mostly in education and health protection”.

“Real investments are the investments in the economical branches and also, they are kinds of economical activities, which provide influxing the increases of real capital, that is increasing material values of the industrial means”. We can agree with such definition with one specification that material and nonmaterial values too belong to the real capital (wealth), consequently science-researching experimental-construction results, various information, education of he workers and others. Such service as organization of the excitable games, also the service of redistribution social wealth from one private person to another (except charity).

“Financial investments represent placement of funds into the shares, obligations, promissory notes, other securities and instruments. Such investments, of course, do not give increases of the real material capital, but they help getting profit, consequently at the expenses of changing the course of the securities in the time of speculation, or distinguishing the course in different places of sell and purchasing”. We share wholly such definition, hence it follows that financial investments (if it is not followed by real investments as a result) do not increase real material wealth and real nonmaterial wealth. According to this context, the expression below is very important: “we must distinguish financial investments, which represent placement of the funds in the ways of selling and purchasing the securities for the purpose of getting profit and financial investments, which become cash and real, moved to real physical capital.”

In the “economical course” quoted before long and short-termed investments are separated. Recognizing the existence of the bounds between them, the authors ascribe short-termed investments to “one month or more” investments. If we get such conditioned criteria, that we can call the investments which overcome the terms of some months, long-termed ones, which is very doubtful and we don’t agree with it. A long-termed character of the fund placement is a significant feature of the investments (short-term doesn’t combine with the concept of investments). Principally, it would be better to point out quick compensative, middle termed compensative and long-termed compensative investments:

– less then 6 months – quick compensative;

– from 6 months up to the year and a half – middle termed compensative;

– more then the year and a half – long termed compensative.

We stopped at the definition of the investments in the capital work “economical course” for the special purpose, as, in it the author tried to discuss the concept of investments systemically and quite completely, herewith the book is published just now.

We’ll return to the discussion the definition economical category of “investments” in different publications in the following chapter. The definitions given here are quite enough for having a notion of the level of lighting up the given category in the economical literature.
What conclusions may be made according the definition of the mentioned economical category in the published works, except the made notions and specifications?

There is quite deeply, concretely and thoroughly defined the concept of “investments”, different definitions in the economical literature; but mostly in every works about the investments discussed by us until now, there is not opened the essence of investments as an economical category. In every monograph , even if it has a title investment, as an economical category , there is given only the definition, concept of investments. But, as the Academician Vasil Chantladze explains, “a concept is a discussion, which proves something about the distinguishing feature of the researched object. A concept out of much essential characteristic features represents only one, and essential in it is only – definition”.

But the categories are much wider; it is “a key, the most fundamental concept of every science”. Economical categories theoretically represent real, objectively existed productive relations. A category is the defining of occasions of existed characters, connections, relations of the objective world. Generally, any educational process is fulfilled by the categories, which give opportunities for dividing the processes and occasions semantically, for expressing the definitions of a subject and realize their specific peculiarities and economical relations of a material world.
Our goal is exactly to substantiate investments – as an economical category and also, as a financial category in the narrow understanding.

Here we apply for another manual thesis made by the academician Vasil Chantladze: “every financial relation is an economical one and every financial category is and economical one, but not every economical relation and economical category is financial relation and financial category”.
In the process of defining the investments, it is important to take in mind the sides of resources, expenses and incomes, because investment, from one side, is the result of the manufacture’s activity, and, from another one, – a part of income, which, in this case, is not used for usage.
Another occasion: it is advisable to discuss investments in two aspects: as a category of reserve and flow, which will reflect exactly the connection between “placement of funds” and “investments”.

As we’ve mentioned above, not long ago, in the well-known Soviet literature the concepts of “the placement of funds” and “investments” were accepted to be the synonyms and concerned to be investment of sources for further production of the main funds and formation of the turnover funds. We meet with such understanding of the concept of “investment” (here, they separate three types of the investment expenses: investments in the basic capital of investments, investments in the house building and investments in the reserves) in the modern economical publications and it is mostly used on the macro level during a statistical analyze of economical processes. In this concrete occasion investment is the category of reserve.

Signs of Global Sanity? Sharing of Innovative Agricultural Solutions to Help Farmers and Consumers

Agriculture is the direct or indirect livelihood of three quarters of the world’s poor, who live in rural areas.

The 2008 food crisis and the subsequent global financial crisis, showed the extreme vulnerability of developing countries to fluctuations in food prices and supplies.

But the impact was not only on developing world farmers – it affected consumers world-wide in food scarcities, eg rice in Thailand, and higher prices.

In Nov 2008 Egypt – UNIDO (United Nations Industrial Development Organisation) sponsored the first ever international conference on Sharing Innovative Agribusiness Solutions – From Farms to Markets: Providing Know-how and Finance.

If the conference activities can be sustained it’s an initiative that would potentially benefit small farmers in developing world, consumers everywhere and the planet as a whole.

“Our vision is sustainable development”

In his opening speech Dr. Ibrahim Abouleish, Founder of SEKEM said that Sustainable development could satisfy our needs and aspirations without decreasing the chances for future generations……but that we need to learn the basic principals of ecology.

“….. Being ecologically literate means understanding the principles of organisations of ecological communities including our educational com¬munities, political and business communities. So that principles of education, management and politics include the principles of ecology.”

A little about SEKEM

In 1977 the economic and social hardship of his countrymen galvanised Social Entrepreneur and medical doctor Dr Abouleish into buying 70 hectares of desert scrubland, 60 km north-east of Cairo and close to the River Nile.

He called the new experimental farm there SEKEM – from Ancient Egyptian: “vitality from the sun”.

SEKEM was able to transform the desert into a showcase example of sustainable agriculture and a healthy ecosystem through biodynamic farming methods.

Its efforts in organic cultivation led to the conversion of the entire Egyptian cotton industry to organic methods.

Starting off with a dairy and crop farm, SEKEM soon began to produce herbal teas and to market its biodynamic produce in Europe. This initiative helped other farms in Egypt to switch to biodynamic farming. A part of its mix of activities the farm uses bio-fertilizers.

The 2008 Cairo conference brought together over 400 agribusiness stakeholders from more than 65 countries, including representatives of private and public institutions (technical and financial), international organizations, donor countries, civil society, universities and research institutions to share innovative agribusiness solutions

Topics covered supply/value chains, market access and linkages, Compliance with standards and conformity assessment, Technology and value addition and Innovative forms of financing

Participants were enthusiastic about working together to achieve change. central to the debate were “Innovation and opportunity”, “partnerships based on trust” and “the need for commitment”, also the need for a holistic approach to agriculture taking into account the needs of specific groups, and avoiding the mistake of thinking that “one size fits all”.

Four key issues were identified:

1. Financial: small producers need finance to bridge the gap between initial costs and eventual benefits to help them enhance their productivity and agricultural product distribution.

2. Up to date information: small farmers and SMEs need access to up-to-date market information to enable them to compete effectively in local, regional and international markets.

One example cited was an Indian project, an e-Choupal (“choupal” means gathering place in Hindi) programme that places computers with internet access in rural farming villages; e-Choupals acted as both a social gathering place for exchange of information and an e-commerce hub.

3. Investment in supply-chain infrastructure: Governments, the food industry, agribusiness and consumer goods retailers need to invesr in supply-chain infrstructures, which have a long economic life.

e-Choupal had a role here too: Out of an initial effort to re-engineer the procurement process for soy, tobacco, wheat, shrimp and other cropping systems in rural India grew a highly profitable distribution and product design channel for the company – an e-commerce platform and also a low-cost fulfilment system focused on the specific needs of rural India

4. Use of technology: using technological know-howfor improving yields, includingbio-fertilizers applied as soil or seed inoculants and foliar spray, reduction of post-harvest losses through better product preservation techniques, quality preservation processes and innovative ingredients to reduce microbial and toxin contamination, increased cost-efficiency related to local production, collective brands and quality criteria enhancement to strengthen small-scale producers, packaging technology and efficient logistics.

A range of follow-up activities was reportedly initiated, including a new project (supported by the Italian Development Cooperation) to extend ETRACE(UNIDO’s Egyptian Traceability Centre for Agro-Industrial Exports) activities and help other developing countries to establish similar centres.

Further follow-up initiatives will focus on promotional and outreach activities such as the development of an interactive networking and matchmaking platform for agribusiness practitioners, which will allow continuous sharing of more innovative solutions and best practices with more participants and thus foster more business and development partnerships

If the momentum from this conference can be sustained the future could be brighter for all of us, consumers and farmers alike.

Copyright (c) 2010 Alison Withers

Cheap Flights to Athens

A glorious and magical worshipped by gods and humans alike, happens to be one of the most famous vacation destinations in Europe. With the sun shining over the city all year through, the climate is one of the best in that part of the world, making it an ideal place for tourism. There are several cheap flights to _3″> Athens plying on a regular basis, board one and embark on a vacation of a lifetime. This enchanting birthplace for civilization is laden with breathtaking views. If it’s not the magnificent landscapes that inspire you, the ancient and contemporary architecture will.

The city with distinct aspects is at once appealing and exciting. A walk around the famous historic triangle of Plaka, Thission and Psyri overwhelms you, a stroll in the old neighborhoods reveal the coexistence of different eras, and the mansions of yore, some well-preserved and some worn out by time present a striking contrast to the modern. The Greek capital dates back to mythological times and as a result the place is dotted with stamps of antiquity all through its surface. The city that you see in its entire splendor is a consequence of several influences, including ancient and medieval Greek, Roman, Byzantine and the contemporary era. Do a wise thing, come to the Greek capital equipped with a rather long stay, reason? The historical attractions are one too many. Start your journey with the South Slope of Acropolis, go on to the ancient Agora, visit the temple of Olympeion Zeus, spent a few hours admiring the Hadrian’s Arch and Library, go atop the Hill of Areopagus, the Hill of Philopappou and that of the Nymphs, and see Kerameikos. Attractions like Lysicrates’ Monument, Panathenaic Stadium, Roman Agora, Temple of Hephaestus, and the Tower of the Winds is also not to be missed.

Museums and art galleries showcasing creative arts are omnipresent throughout _4″> Athens with some giving a great insight into Greek archeology, history, modern art, while others dedicated to ceramics, music, railway etc. One of the unique selling points of _5″> Athens as a tourist destination is its close proximity to the whitewashed Greek islands. Enjoy one-day getaways, charming villages, ancient historical cities and equally fascinating and picturesque countrysides, each one with a varied color, culture and character. If you happen to be visit _6″> Athens with family, fret not. The city presents myriad options for all of you to enjoy together. These include parks and gardens, National Zoo, planetariums, educating and entertaining cultural centers, go-karting areas, and amusement parks. Places to stay and crash in are as varied as the attractions of the city itself. You can opt to stay at a luxurious five-star hotel, book yourself a bed and breakfast, stay in a holiday home or an apartment, or check into a cheap hotel accommodation. Culinary delights and gourmet foods can be relished and savored at any of the several world-class restaurants, or try a meal at the local eating joint, which is equally scrumptious and satisfying. For a prefect start to your holidays in Europe, come to first.

Online Agriculture Career Preparation

Becoming a part of the agriculture industry is a process that requires students to complete schooling and meet specified qualifications. Students can enter a degree program online where they learn all of the integral parts of the field. Many colleges provide online education to help students prepare for a career.

The field breaks down essential key areas that need to be learned in connection with business principles. Students can prepare for a career by completing key steps.

Key Step One: Research the Career Possibilities

Students can enter many careers in agriculture. Before enrolling in an online program it’s recommended that students consider what area of agriculture they would like to work in, as this decision often dictates what educational level and concentration to pursue. Online information can be found on the various careers to help students pin point their preferred area of interest. Greenhouse manager, plant and soil technician, ranch manager, soil composition specialist, policymaker, and educator are a couple of career options students can pursue.

Each field has students conducting different tasks and overseeing multiple aspects of their area. For example, a greenhouse manager will oversee the support structures and operation of several greenhouses. This includes being responsible for the growing of plants and where they are sold, whether it’s locally or nationally. Another possibility is becoming a soil scientist. Professionals examine the chemical, physical, biological, and mineral makeup of soil in direct relation to plant and crop growth. Students can enter these careers after first completing education.

Key Step Two: Complete Education

Once students know which area of the industry is for them, they will be able to complete the correct level of education. Online accredited schools and colleges offer students programs from the associate’s to master’s degree level. Each level presents specific career related knowledge that allows students to step into the industry with confidence. Each educational program offers students the same general coursework. Specific courses will be taken according to the specialization that students have chosen. General courses may include:

  • Soil Fertility
  • Agribusiness Management
  • Horticulture
  • Livestock Science

Students can expect to study biology, the science of soil, plant cultivation, and how to operate farming equipment. Skills are adapted through online coursework that gives lessons through video and audio demonstrations.

Completing a degree program is the best way to enter the field. Students can enter a career in approximately two years when they earn their associate’s degree. Further study at the bachelor’s level, which is often required, takes four years. Students that pursue a master’s degree can expect to earn advanced training in a two-year program.

Begin preparing for a career in agriculture by learning about the career possibilities. Online education is a great way to learn and students can begin training by enrolling in an accredited program. Full accreditation is given to agriculture schools and colleges that offer the best quality education by agencies such as the Accrediting Commission of Career Schools and Colleges ( http://www.accsc.org/ ).

DISCLAIMER: Above is a GENERIC OUTLINE and may or may not depict precise methods, courses and/or focuses related to ANY ONE specific school(s) that may or may not be advertised at PETAP.org.

Copyright 2010 – All rights reserved by PETAP.org.

Take a Stroll at Athens Greece

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A  city  that was built by gods for gods with a long glorious history, and a  city  that has been worshipped by its people is nothing less than  Athens , Greece.  Athens  is said to be the birthplace of democracy and civilization. The place where many great philosophers were born and where the culture began. In such a city you can wonder in its alleys and feel the ancient spirit. Did you know that Acropolis is considered to be one of the 7 wonders of the modern world? The better way to discover all secret paths of  Athens  is to take some  Athens  private tours and live this lifetime experience.

Whatever your taste is,  Athens , Greece has something special that will draw you back time and time again. When in  Athens  you have to do lots of activities such as visiting the archaeological monuments, the famous sites, and taking a stroll to Plaka, Monastiraki, Thisseion and Psyrri. Have the opportunity to admire the neoclassical buildings in the small alleys the well-preserved architecture in many beautiful buildings. Athens   city  truly has something for everyone.

Take a private walking tour around ancient sites of Acropolis museum, Plaka, Monastiraki and Philopappos hill. In  Athens   city , you will admire The Greek Parliament, the  Athens  Academy and University and so many interesting sites. Do not miss also visiting the museums which hosts unique treasures of greek cultural inheritance such as the Museum of Acropolis, the Archaeological Museum etc. The exhibits in greek museums are always interesting and have something to add to your knowledge. This information from the past may be sound strange but is the truth and the history of Greeks can’t be learn by once.

The sun in  Athens   city  is shining all year around so you don’t have to worry about the climate, which is considered one of the best in Europe. So, embark on a journey full of positive energy and joy for the upcoming sun and the very interesting thing you will see and visit. Ask locals for some traditional taverns with local folklore dancers and local wine.

Last but not least is  Athens  nightlife. Your choices here are innumerable as long as you want to entertain yourselves by numerous ways in this vibrant city. Bars, clubs, traditional taverns and the famous “bouzoukia” are always there to entertain you.

All in all,  Athens  is a divine  city  with lots of choices and places to have fun making your trip memorable.

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Starting Out in the Bu$ine$$ of Agriculture

There are five things to seriously consider when starting up a farm, no matter if you are pursuing an interest in crop farming, raising livestock like cattle or sheep, for instance, or growing fruit:

1) There’s tough, hard work involved

If you want to farm, it’s tough, hard work with little satisfaction in the end. It’s no wonder 90% or more of the young people that come off of farms don’t want to go back to it. No money in it, comprised mostly of blood, sweat and tears, with a little reward in the end. No benefits, no health coverage, no labour unions to say when you should start your day, have your lunch break and end it. That’s all for you to decide. And your hours in your day depend on the weather and how many things you have to have done in a day.

2) Start small (a must!!)

Never go off the deep end if you don’t know how to swim. You could drown in bankruptcy or personal injury if you have no idea what you are getting into. The thing that I have learned over the years and from talking to other veteran farmers is to start small. Especially if you have no prior experience. Unlike those farmer’s sons and daughters that want to continue to farm by taking over their parent’s operation and can go into or continue, a newbie needs to learn first either by working on an existing farm that has been operating for a number of years, or get a mentor, or both.

For example, if I want to get into cow-calf business, I have to do my research and asking questions first before I take the plunge and purchase some cows with calves. I do have previous farming experience which helps significantly, as well as capital to keep the newly founded herd on, so that is not as much of a problem as other folks do who are moving from the big city to the wide countryside.

3) Do your research: Popularity and Fabs aren’t Everything

Don’t give in easily to the fabs and the popular equipment or livestock out there. Often time those popular type of livestock or equipment will not work out for you and your plan of operation. For example, the Angus breed. Angus cattle are not really known for their docility, just the fact that they produce darn good beef off their carcass and are the most popular breed observed in the United States and Canada to date. Yes they are good for range cattle, yes they are good mothers, yes they have great calving ease (depending on selection), yes the A.A.A (American Angus Association) have a great marketing initiative to make them the highest selling breed on the market in competition with the other coloured breeds. But, is that what you want? Not too long ago a genetic disorder has cropped up in the Angus breed called Curly Calf Syndrome, a disorder that results in dead calves at birth from suspected linebreeding of cattle from similar lineages–which is often the case when you have millions of Angus cattle across the continent. Another concern is that the Angus breed is more for those who can handle potentially aggressive mothers and somewhat-nutty bulls, among other things. I could go on.

Another example is rookie producer that has a small farm of 80 acres or less decides on going all out and purchasing large, brand-new machinery that is only suitable for farms with huge tracts of field-land to cover. A farm of only 80 acres maybe only devote half the acreage to the production of barley or corn; the other half would more likely go into living space, garden, and livestock areas. That’s only 40 acres of crop sown, and if that newbie goes out and spends all that money on that kind of machinery that is only going to be used once or twice a year, at the very least, he shouldn’t even be farming: he should be owning an equipment dealership instead. It sounds harsh, sure, but look at it this way: that machinery is probably worth more than the farm is. Depretiation, as well as the long run costs of maintaining this new-fangled equipment just isn’t necessary on a small farm. Either hiring custom outfits to till, sow, spray and harvest the crop for you or purchasing older, and much cheaper machinery from an auction is the best thing to go for. Personally, I’d have it custom done. Or convert it into hay or pasture…

4) Plan, plan, plan!

Planning is a huge deal in today’s world when one is starting a farm right from scratch. A farm is a business, no matter if it involves selling grain and livestock, or fruits and vegetables. A business plan, be it complex or simple, is the best thing to develop and have on hand when planning and implementing those plans to the farm. It also gives the bank an idea of what you want to do if you wish to take out a loan. Back in the old days, you could start farming without needing to form a plan, everything was simple and plain. Now, you have tons of options to choose from and just as much ways to sell your end product. Plan what to do and how to do it: it’s the key to success.

5) Location, location, location.

The most important factor that determines what kind and what size of farm to start up are the varied choices to consider in location, geography and climate. All of these have an influence in your choice to farm in that area and what crops and livestock are best to raise or grow. In the case of livestock, there are at least four factors to contend with that are totally out of your control when raising the critters: topography, climate, vegetation, and soil.

Case in point, look at the differences between that found in Alberta, Canada and in Florida, USA. Alberta has quite the variation in topography, from the rugged Rocky Mountains to the west, to prairie that stretches from the southern border all the way up to Lloydminster and west to the foothills, as well as a significant patch up in Grande Prairie and Peace River areas. We also have boreal forest that extends from south of Athabasca all the way to the northern border and beyond. Florida doesn’t have that much of variation in topography: grasslands and swamps as well as the ocean that surrounds much of its southern, western and eastern borders (note: there are also many swamps found up here in Alta, many of which have no bottom: those are considered “muskeg” or “bog”). Alberta has a drier climate that varies in rainfall: the prairies get less rainfall than the boreal forest. Florida is quite a moist area all around because of the influence of the ocean and its currents. Alberta has four defined seasons, one of which is more wickeder than the other three. Florida’s four seasons are very much less defined, with snow being rare around there.

Alberta has a very wide range of soil type, from rich, organic soil created from the grasses of the prairie, to acidic, sandy soil derived from the spruce and pine of the boreal forest. New soil is also found in various areas; clays are also found to the north, south of the boreal. Florida’s soil (forgive me if I get this wrong) ranges from loamy to sandy with not much between, depending on the topography.

Vegetation comes in wide varieties as well in Alberta, thanks to human intervention. We are able to grow C4 grasses (annuals like corn; other annuals that are not C4’s are most cereal crops like wheat, barley, oats, rye and triticale) in the spring and summer months, only to have them die when the cold snows hit. Most of the native vegetation is adapted to withstand cold winters to regrow in the summer, therefore 98% of the grasses found in pasture and hayland are C3 grasses, grasses that start to grow in early April and last until June or July, already completing their life-cycle long before winter arrives. The trees and shrubs too are adapted to a colder, drier climate: our prime example are evergreens. Florida does not have to worry about extreme cold temperatures, thus the grasses that grow there are more commonly C4 grasses, those grasses that will grow later in the spring/summer and complete their life-cycle come fall. C3 grasses are also found there, but grow only during the “winter” months. The trees and shrubs there as well as adapted to a warm, humid climate and thrive as such. Similar differences are found in forbs grown in Alberta and Florida.

When you get these different climates even with cropping systems, this can limit you to what type of crop plants you can/should plant. Some areas of the USA and Canada can be too cold for one crop and too warm for another, or vice versa. Soil type is also very important, as well as topography. You can’t grow a field of wheat in the chaparral desert of Arizona, even if you tried! The mountainous terrain of the Cumberland hills in the Apalachain mountains, for instance, is not a wise place to plant corn. So topography, climate and soil type is critical in determining where to farm, how to farm and what to farm.

6) When you get down to it, it’s all up to you in the end.

There are more variables, such as personal choices and goals, that should also be taken into account when wanting to establish a farm, and this can be considered a sixth factor in choosing where/how to farm. Are you able to contend with Alberta’s cold winters, where the snow gets deep and feeding livestock can sometimes be a challenge, but the summers are warm however short, with beautiful fall days and summer storms to live with? Or would you rather like a warm humid climate where you are able to graze 365 days a year with hurricanes and swarms of bugs (i.e. chiggers, flies, mosquitoes) to contend with? And do you prefer to tinker with machinery and watch your crop grow, or would you rather be happy with looking after livestock, with fixing fence, looking after sick animals, planning pasture rotations, feed diets, breeding and birthing schedules, etc? Perhaps you may want to do both. And perhaps you may only want to have a few acres as a hobby farmer instead of going whole-hog and have a farm that is at least 100 acres in size?

It’s all up to you.

Making Investment Plans

Steps In Investing

Step 1: Meeting Investment Prerequisites-Before one even thinks of investing, they should make sure they have adequately provided for the necessities, like housing, food, transportation, clothing, etc. Also, there should be an additional amount of money that could be used as emergency cash, and protection against other various risks. This protection could be through life, health, property, and liability insurance.

Step 2: Establishing Investing Goals-Once the prerequisites are taken care of, an investor will then want to establish their investing goals, which is laying out financial objectives they wish to achieve. The goals chosen will determine what types of investments they will make. The most common investing goals are accumulating retirement funds, increasing current income, saving for major expenditures, and sheltering income from taxes.

Step 3: Adopting an Investment Plan-Once someone has their general goals, they will need to adopt an investment plan. This will include specifying a target date for achieving a goal and the amount of tolerable risk involved.

Step 4: Evaluating Investment Vehicles-Next up is evaluating investment vehicles by looking at each vehicle’s potential return and risk.

Step 5: Selecting Suitable Investments-With all the information gathered so far, a person will use it to select the investment vehicles that will compliment their goals the most. One should take into consideration expected return, risk, and tax considerations. Careful selection is important.

Step 6: Constructing a Diversified Portfolio-In order to achieve their investment goals, investors will need to pull together an investment portfolio of suitable investments. Investors should diversify their portfolio by including a number of different investment vehicles to earn higher returns and/or to be exposed to less risk as opposed to just limiting themselves to one or two investments. Investing in mutual funds can help achieve diversification and also have the benefit of it being professionally managed.

Step 7: Managing the Portfolio-Once a portfolio is put together, an investor should measure the behavior in relation to expected performance, and make adjustments as needed.

Considering Personal Taxes

Knowing current tax laws can help an investor reduce the taxes and increase the amount of after-tax dollars available for investing.

Basic Sources of Taxation-There are two main types of taxes to know about which are those levied by the federal government, and those levied by state and local governments. The federal income tax is the main form of personal taxation, while state and local taxes can vary from area to area. In addition to the income taxes, the state and local governments also receive revenue from sales and property taxes. These income taxes have the greatest impact on security investments, which the returns are in the form of dividends, interest, and increases in value. Property taxes can also have a significant impact on real estate and other forms of property investment.

Types of Income-Income for individuals can be classified into three basic categories:

1. Active Income-This can be made up of wages, salaries, bonuses, tips, pension, and alimony. It is made up of income earned on the job as well as through other forms of noninvestment income.

2. Portfolio Income-This income is from earnings produced from various investments which could be made up of savings accounts, stocks, bonds, mutual funds, options, and futures, and consists of interest, dividends, and capital gains.

3. Passive Income-Income gained through real estate, limited partnerships, and other forms of tax-advantaged investments.

Investments and Taxes-Taking into tax laws is an important part of the investment process. Tax planning involves examining both current and projected earnings, and developing strategies to help defer and minimize the level of taxes. Planning for these taxes will help assist investment activities over time so that an investor can achieve maximum after-tax returns.

Tax-Advantaged Retirement Vehicles-Over the years the federal government has established several types of retirement vehicles. Employer-sponsored plans can include 401(k) plans, savings plans, and profit-sharing plans. These plans are usually voluntary and allow employees to increase the amount of money for retirement and tax advantage of tax-deferral benefits. Individuals can also setup tax-sheltered retirement programs like Keogh plans and SEP-IRAs for the self-employed. IRAs and Roth IRAs can be setup by almost anyone, subject to certain qualifications. These plans generally allow people to defer taxes on both the contributions and earnings until retirement.

Investing Over the Life Cycle

As investors age, their investment strategies tend to change as well. They tend to be more aggressive when they’re young and transition to more conservative investments as they grow older. Younger investors usually go for growth-oriented investments that focus on capital gains as opposed to current income. This is because they don’t usually have much for investable funds, so capital gains are often viewed as the quickest way to build up capital. These investments are usually through high-risk common stocks, options, and futures.

As the investors become more middle-aged, other things like educational expenses and retirement become more important. As this happens, the typical investor moves towards more higher quality securities which are low-risk growth and income stocks, high-grade bonds, preferred stocks, and mutual funds.

As the investors get closer to retirement, their focus is usually on the preservation of capital and income. Their investment portfolio is now usually very conservative at this point. It would typically consist of low-risk income stocks and mutual funds, high-yield government bonds, quality corporate bonds, CDs, and other short-term investment vehicles.

Investing In Different Economic Conditions

Even though the government has different tools or strategies for moderating economic swings, investors will still endure numerous changes in the economy while investing. An investment program must allow the investor to recognize and react to changing conditions in the economy. It is important to know where to put your money and when to make your moves.

Knowing where to put your money is the easiest part to deal with. This involves matching the risk and return objectives of an investor’s plan with the investment vehicles. For example, if there is an experienced investor that can tolerate more risk, then speculative stocks may be right for them. A novice investor that wants a decent return on their capital may decide to invest in a growth-oriented mutual fund. Although stocks and growth funds may do well in an expanding economy, they can turn out to be failures at other times. Because of this, it is important to know when to make your moves.

Knowing when to invest is difficult because it deals with market timing. Even most professional money managers, economists, and investors can’t consistently predict the market and economic movements. It’s easier to understand the current state of the market or economy. That is, knowing whether the market/economy is expanding or declining is easier to understand than trying to predict upcoming changes.

The market or economy can have three different conditions: (1) recovery or expansion, (2) decline or recession, (3) a change in the general direction of its movement. It’s fairly easy to observe when the economy is in a state of expansion or recession. The difficult part is knowing whether the existing state of the economy will continue on the course it’s on, or change direction. How an investor responds to these market conditions will depend on the types of investment vehicles they hold. No matter what the state of the economy is, an investor’s willingness to enter the capital market depends on a basic trust in fair and accurate financial reporting.

Stocks and the Business Cycle

Conditions in the economy are highly influential on common stocks and other equity-related securities. Economic conditions is also referred to as the business cycle. The business cycle mirrors the current status of a variety of economic variables which includes GDP, industrial production, personal disposable income, the unemployment rate, and more.

An expanding business cycle will be reflected in a strong economy. When business is thriving and profits are up, stock prices react by increasing in value and returns. Speculative and growth-oriented stocks tend to do especially well in strong markets. On the flip side, when economic activity is diminishing, the values and returns on common stocks tend to follow the same pattern.

Bonds and Interest Rates

Bonds and other forms of fixed-income securities are highly sensitive to movements in interest rates. The single most important variable that determines bond price behavior and returns is the interest rate. Bond prices and interest rates move in opposite directions. Lower interest rates are favorable for bonds for an investor. However, high interest rates increase the attractiveness of new bonds because they must offer high returns to attract investors.

Four Horsemen of the Cultural Apocalypse – Criminology, Psychology, Sociology and Theology

Historic attempts, feeble and selfish at best, the four horsemen of the cultural apocalypse long endeavored to establish their relevance for defining human nature. For the tip of psychic iceberg, the regression devolved from philosophical contemplation to pretentious claim of scientific validity. Behold, they came from the darkness of human intentions, to claim truths yet to be found in the shadowy mysteriousness of human intentions, motivations and eternal damnation. As to pundits, politicians, the public and the proselytes for each cause, or school of thought, or cult of confession, they fostered arrogance of speculation deemed “scientific”.

Of those not seriously qualifying as a science, as in astronomy, biology, chemistry, anatomy and physiology, by way of rigorous analytic contention, philosophical conjecture conspired to make its creations inventive nightmarish creatures. In the realms of academic, the path of least resistance, the trails the herd frequently travels and the walkways crowded with mass gullibility, sleight of hand mesmerized the many. As to the usual suspects, in the treachery of myth, magic and metaphor, the four collude their smug piety in egregious fallacies of inference. Of that, the wayward pretenses of magical thinking deludes the masses in simplistic thinking.

Complicity is found in the ease by which degreed sanctification blusters in the hallowed sanctuaries of anecdotal regurgitation, flashbacks through history and bogus claims of research validity. Where the challenge comes in mathematical analytics, biologic physicality, subatomic microscopy, astronomical forensics, and proof of scientific validity, the horsemen excuse their shortcomings in appeals that hope springs eternal. Subjective validation supersedes facts. Their bafflegab trespasses upon many boundaries, as criminology, psychology, sociology and theology strike back with a vengeance. None dare disagree and breaks from the formation.

In the adventures of pseudosciences, anything is possible, and yet, the mere mention of the word should not engage fear, animosity or condemnation. Nothing about the term should invite excommunication, exorcism or execution, but instead encourage the intensity of continuous investigation. No silver bullets, holy water or laying on of hands should amass a counteroffensive against those who might question the scientific authenticity of myriad conjectures. Healthy skepticism in the pursuit of intellectual vitality, by insistence upon investigative scrutiny, questioning and doubting specious generalizations, is creative and productive.

Nonetheless, the mention of anything that might sound like, look like, or feel like a hint of something akin to “pseudoscience”, the emotional reactivity transmutes a seemingly normal looking individual into a venomous demonic entity. The question arises as what constitutes normal, or better yet, what is a “reasonable person”. Additionally, the query begs the timeline as to when it became acceptable to advance varying levels of stupidity or ignorance in terms of hunting down the truth and proving evidence to support any assertion. The negativity is nauseous.

As to that historic point of reference, in article of major online science journal, the writer ponders at what point in U.S. history it became part of the social mainstream to accept fiction over facts. Further, as one of the founding fathers claimed well-reasoned thinking processes, supported by scientific validation, and persistent testing and systematic study to prove or disprove, are essential to the revelations of truth beyond doubt. The hint is in the writings of historic scientific investigators and those who contributed to the Declaration of Independence.

While people have a right to their beliefs, at least to some degree in the West, knowledge advances wisdom which transforms civilization, not by mere conjecture based on opinion, but by intense study, rigorous testing and analysis, argument and dispute. Additionally, belief systems either transform over time, or remain static prone to stagnation. Regardless, continuous introspective assessment within each individual is essential.

Further, ongoing discourse is vital, as each ought to understand the other given their perspective, time and place, maturity, experience, innovation, growth and discovery. As most are where they are at a point in time, based on at least the forgoing, but also their selfless attention to rigorous analysis of their ideations that channel into propositional viewpoints. Disagreement is indispensable, while peer review is a fraud, unless the laboratory, or the crime lab, the microscope proves the assertion at hand by the physical nature of scientific validation. Alternative philosophical fascinations often remain fixated on unsubstantiated illusions.

Ideological claims are insufficient without the stringent testing of evidentiary authentication by the weight of physical realm provability. As to that, beliefs, especially those of an occultic, supernatural or cultic philosophical standpoint are immensely tainted by the bias of subjective validation. Key to the maturation of experienced real-world credibility includes the degree to which transformation has chosen a higher path of informed enlightenment. While everyone should labor to transcend their personal egoistic intentions, most will be unwilling to concede their self-interests. Unfortunately, arrogance contrives to make pseudoscience into a science.

For non-practitioners in the various schools of philosophy, particularly those who transferred from the classroom to the faculty room, and never set foot in the real world, the challenge of credible scientific validation remains daunting. So much so, that “field research” often passes on as anecdotal observations, interviews, surveys and speculations regarding other research. In the regurgitation of previous opinionated speculations, sometimes, a facade of “scientific” is attached to the inquiry. Sooner or later, others begin to accept the “scientific validation”.

The gamesmanship becomes even more pervasive as that public begins to accept ideological perspectives as “conclusive proof” of an unsubstantiated claim. While some investigators have tried to foster a round table discussion on issues of “real science” versus “pseudoscience”, as well as “peer review” versus critical analysis, the experience has been less than satisfactory. Particularly in the world of academia, where fantasy sometimes becomes a defensive theory, challenges to the pretentious allegory of fiction masquerading as fact, usually invites severe reaction.

To claim or otherwise perpetrate the illusion of a science, a particular school of thought, or ideology, etc., does little to promote problem solving in everyday matters of human behavior. While various doctrinal and dogmatic traditions assert a scientific basis, the reality is such that a claim of using “scientific methodology” is a shallow appeal the practicality. By the convolutions of magical thinking, it is a leap of faith from theory to evidentiary validation. And, in the 21st century, reflecting the words of one scientist, people may have forsaken the ability to distinguish between science and science fiction. Personal bias skews every point of view.

For the inclination to subjective validation, bias enters every query. Control of that predisposition by way of some effort at objectivity is vital to any investigation. Accordingly, this suggests the influence of the investigators personal beliefs. Attempts have been made to identify preconceived notions and their influence in relation to ideological partiality. Depending on the survey and the organization conducting the survey, results may vary to some degree. In this regard, one study of religious inclination by a major research agency, as pertains to a “belief in God”, suggested little of 80% of the participants believed in a “higher authority”.

That is to say, the majority claimed a belief in a divine being or supernatural entity that influences their lives. On an education basis, those with graduate degrees were reported to have a believability range of about 70%. Of course, the temptation here is to speculate on the influence of belief systems and the claim of “scientific methodology” among the pseudosciences. Where two thirds of educated persons believe in the supernatural, how does that impact objectivity?

The illusionary intricacy assumes many parts of the whole. Taking belief systems from “cultic”, or dogmatic sources, the comingling of presumptive errors compound the mythic proportions by which fallacies of inference transition to accepted hastily drawn conclusion. In collusion with multiple facetious claims, unsubstantiated by the organic rigors of physical evidence, whether microscopic or cosmic, viewpoints, opinions and gossipy flirtations mutate into grotesque forms of imaginative superstitions. In most controversies of argumentation and debate, as regards human behavior from a mental analysis, interactivity of interpersonal exchange should be cautiously anticipated.

One or more participants may not have achieved sufficient maturation.
To confront or otherwise interact in more profanely productive ways, a certain degree individualization is necessary. Bias, prejudice, immaturity, inexperience, lack of close contact with reality, and so on, stifle energetic intensity for enlightened liberation. As suggested in the forgoing, dogmatic and doctrinaire beliefs constrict visionary processes. This suggests probable generational rift, as younger generations may not have arrived at levels of competency strengthened by years of experience, education and personal transformation. Mature, adult, grownup and wiser insightfulness requires extraordinary investment of well-differentiated selflessness.

An example of the youthful indifference to adventurous discovery outside the monogamous constrictions of institutional conformity, comes in the form of limited and defensive perspectives. One aspect is easily attacking alternative points of views, such as the ease by which schools of thought in psychology quickly condescend the medical specialty of psychiatry. That is fascinating intrigue of extraordinary bias, especially considering the roots of psychology. Opinions are not evidence of extraordinary discovery for the complete explanation of human nature.

But of course, in mainstream American society, any conjecture can be accepted without question as scientific efficacy. Of which, the frauds perpetrate the worst afflictions over a weakened society. In a dumbed down culture, self-imposed of course, anything is believable. Plus, bias reflects the academic arrogance of fearful, self-absorbed, child-like infantile narcissism. In this, as for example within the collegiate communities, academia perpetrates the fantasy as fact, absent materiality of scientific proof. And yet, the hypocrisy runs rampant.

On the offensive, in a celebrity worship culture, any actor of famous characterization can pontificate on any social issues and be accepted as authorities. While free speech is one thing, and an opinion is good anyone else’s, expertise is quite an exception. Opinions, gossip and rumors are not evidence. To use one’s wealth, status and influence is not equitable.

Where bias clouds conjecture and otherwise influences conclusions, observational misinterpretation hazes over the reliability of personal perspective. All utterances should be suspected of cognitive bias, as eyewitness testimony is subjected to cross-examination. Yet, frequently, to leverage one’s apparent status of supposedly famous stature and notoriety, to espouse an opinion as though fact or scientific validation, is to use the force and effect of egoistic intimidation. It is insulting and abusive to presuppose one’s socio-economic political status is more relevant than some else. Power and privilege do not infer intelligence.

Such arrogant notions, as for example a Hollywood actor, blabbering about guns and school violence are essentially private opinions. Often such blathering are superficial for fame and personal promotion, and avoid any semblance of scientific or evidentiary authentication. Unsubstantiated speculations do more harm than good and serve to mislead others. In the use of wealth, pretense of authority, and presumed reputation, many frauds are perpetrated.

Given the nature of egregious fallacies of inference, public policy can be adversely affects, as politicians tend to be easy targets of pseudoscience. Such exhibitions of notoriety use the unfair advantage of material success to promote a particular economic or political agenda. Often the result is further erosion of any aspect of intellectual discourse to serve the greater good, or protect the general welfare of the republic. Too frequently, stupidity advances instead of wisdom. When the four horsemen enter the scene of societal interactivity, pseudoscience quickly becomes the imposter impersonating the reality of scientific validity. Fiction replaces fact.

A very quick admonition is to exercise a sense of healthy skepticism by common sense application of cynical analysis. People say and do what people say do because it’s what they desire to do. Claims, assertions and studies of any kind are to be carefully investigated by testing the data, insisting upon replication and ensuring scientific efficacy. At one of the inquiry is the immediate understanding that correlation cannot be confused with causation. Regardless, the intentional collusion is committed every day in the not so hallowed halls of academia.

In the non-science realm of philosophical speculation, anything is possible. Pseudoscience can easily concoct an explanation and assert a correlation as a causation. While comparing an apple and orange side by side, one can infer the relationship as examples of fruit. In terms of a distinctive differentiation, a dissimilar nature emerges. Nonetheless, many can easily conjure along a simplistic continuum claim a specificity of correlation to causation generalities. No matter what the facts may show, some will insist every apple is actually an orange.

Since the comparison of the fruit was conducted over a bushel or a basket or two, the observational bias, and the resulting survey assessment, extrapolate a very broad generalization. Given the fruit’s family tree, seasonal abnormalities, and agricultural inequities, it is easy to infer that all apples and oranges are exactly the same. In other words, one template fits all. After labeling one or more as “bad apples”, or “rotten oranges”, the diagnosis, or cultivation, transitions to a “cure”, which typically means a drug therapy, or pesticide to kill off the psychic contagion.

In the end, a question lingers in the haze of magical thinking, regardless of protestations and threats of retaliation for political correctness violations, and that is what does the scientific evidence show? Followed up by, what does the blood test, x-ray, ultra sound or other lab test reveal? Offenses are easily taken when serious speculation challenges viewpoints. However, when consensus, or by majority vote, a theoretical construct becomes a “diagnosis”, skepticism ought to fill the void in the empty spaces around the special conjecture.

The insightful inquisitor chases every element of claims said to be true to the exclusion of every other possibility. Unfortunately, in a devolving society, facts are easily circumvented for the satiation of the most convenient and simplistic explanation. Of which, conjecture is not really an explanation at all. Speculation as to the superficiality of an alleged “mental illness” issue is an opinion based on a theory. It is centuries old dogma exorcizing demons, or fortune telling masquerading as “criminal profiling”, or pseudoscience pretending to be science.

Doctrines of the supernatural are schemes of myth, magic and metaphysical suppositions, for which something called faith accepts undefinable phenomena. Faithfulness to an ideology does not insist upon the rigors of scientific validation. Meanwhile, in the hypocrisy of belief, if 80% of the population, including adherents of certain schools of “social studies”, believe in things supernatural, bias of speculation has been influenced before the fact.

So, bias influences conclusions about one thing or another, while observations of the biased inquirer has preconceived notions as to subsequent observations. In conjunction, designing a form of investigation, or model to be tested, in conjunction with predisposition aforethought, influences the outcome determined in the results. To this primordial mix, throw in “scientific sounding” jargon and anecdotal references similarly supportive, and a whole scheme of conjecture becomes believable. Now add a spiritual dimension, or occult symbolism, or doctrinaire admonition, and eventually the unsubstantiated claims will be accepted. By politicians, pundits and the public. Willful acceptance follows the easy path of simplistic acquiescence.

Easy trouble free receptivity does not provide the motivational basis of in-depth inquiry. To say that “it turns out that”, “it has been reported that”, or “it is assumed that”, and so on, does not substantiate anything. In fact, to the contrary, immediate challenge should be issued. Any and all claims are to be vigorously tested, debated and questioned. Alleged data ought to receive critical analysis, while opinion, rumor and gossip are never to be accepted without thorough investigation. Likewise, jargon, labeling, and so-called diagnoses from a philosophical viewpoint are to be questioned without hesitance. Included in this inquisition is any pretentiousness relative to anecdotal claims of supposed credibility. Similarly, faith proves nothing.

Motive, means and opportunity is an illusion. This typical “crime solving” rubric sounds nice in a movie or television drama. The public finds this sort of simplicity easy to digest. However, it is misleading. At best, a starting point. Nonetheless, such a perspective can be misleading and counterproductive. In a classical criminological spectrum, such admonitions by an inquirer are meaningless unless evidentiary substantiation suffices the authenticity of scientific validation. Every critical analysis invites the provocation as to whether or not an issue can be elevated to a scientific sufficiency by matters of reliable proof of technical authentication.

Absent serious evidentiary verification, credible legitimacy and substantive multifaceted verification, supposition based on opinion remains insufficient. As research comes in many forms, and data often manipulated to ensure subjective validation, intense scrutiny of any claim is essential. Otherwise, conjecture, assumption, inference, and so forth, are speculative points of interests that demand deeper investigation. To the reference of motive, means and opportunity, yes, fiction writers are fond of any phrase redundantly torturing one cliché after another.

Outside the hardcore sciences of forensic analysis, the “soft sciences”, “social studies, or more adversely the pseudosciences, perpetuate grievous fallacies of inference that render an assortment of hasty generalizations. Especially in detective fiction, movies, television, etc., the repetitive nature of fallacies of inference unfortunately carry over into the real world. Unfortunately, people will believe anything. Faulty conclusions, lazily drawn through the zeal of immediate gratification for a definitive “singular theory”, erroneously pontificated upon cognitive bias, results in unsubstantiated conjecture. This sets the stage of divisive social policy and hastens the eventual demise of the human species. That point relates to the regressive inclinations of human devolution. In a world losing the imaginative edge of innovation, the decay of analytic insight, and the loss of rational methodology, self-serving infantilism invites a dystopic set of consequences.

Observing post-election vehemence in the grotesque rhetoric of condescension is but one example of a regressively adversarial trend in the American society. An entitled sense of retaliation for perceived claim of “victimization”, irrationally justifies a “get even” mentality. Selfishness, the grand scheme of personal enrichment, easily allows the seduction to any mythic or supernatural means to exert power, control and domination over others. From the standpoint of personal belief systems, influenced by ideological extremes of one form or another, the baseless claims of over-simplification justifies egregious fallacies of inference clinging to hasty generalizations.

Lacking the backbone, expressing cowardice in avoiding courageous actions toward wiser ascension, and degrading the freedom of individuality, the social mainstream exhibits an illicit collective consensus that conspires to stifle mature growth. In the process of perpetual putdowns toward another perspective because they disagree, expresses the erosion of the free exercise of competitive ideations. Maturation to higher states of mental and physical individuality demands fortitude beyond the normal routine of daily interactivity.

In addition, such evolving transformation bears the signpost of pointing in the direction of an attendant possibility toward a more probable outcome of higher self-realization. Across the superficiality of social media and “opinionated” news reporting, the shallowness of bloated “mindless” conceit wallows in the shortsighted inebriation of degrading arrogance. As such, anti-thinking pervades the array of communal connections with a range of nonsensical notions for the sake of emotional reactivity. In support of the status quo consensus of myriad small-minded illusions, meaningful levels of rational understanding stifle the elevation of society.

As alleged in one major publication, representing one of the four horsemen (criminology, psychology, sociology and theology), an author for the “psyche” realm accuses religion as being representative of faulty reasoning that leads to magical thinking. In so doing, the claimant suggests gross errors of “cognitive bias” in the spheres of religiosity and the paranormal. The argument proposed is that such things are the result of wishful thinking not scientific validation.

Such is a fascinating notion emanating from field closely allied to the psychological aspects within the arena of “social studies”. But wait, one could offer by contrast that the “four horsemen” are very closely related in that real science is not a strong element in their entrenched domains. All such accusations, claims and ideological perspectives devolve to speculations based on philosophical biases. Hope springs eternal in the non-reality of subjective validation and ensuring consistent patterns of simplistic conjecture. As such, the status quo remains secure.