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Art Has Cachet — and Risk Art can be a tempting investment, with its creative mystique and potential for soaring values. Attending glittering events such as the annual Art Basel Miami Beach, a four-day, celebrity-studded event representing more than 2,000 contemporary artists, makes it that much harder to resist. Whether your tastes are classic or avant-garde, art is a tangible commodity and, as with any commodity, many investors view it as a hedge against stock market volatility. But before you drop a bundle at a gallery or raise your bidding paddle at auction, understand that art comes with its own [...]

If you’re considering getting into the landlord game, you might wonder whether it’s best to buy a single family home or a condominium. Many people say to stay away from condominiums because of all the issues with homeowners associations, and they have a point. However, single family homes have many issues, too, so don’t make up your mind so quickly. Here are several things to consider in this “Rumble in the Investment Property Jungle.” Round 1: Investment returns When you’re buying an investment property, the first thing you should do is pencil out your real estate deal to see if [...]

If you work at a company providing a 401(k) plan, it behooves you to understand your fund options. Most plans offer three types of investment alternatives: target-date mutual funds, actively managed mutual funds and index funds. The funds you choose will depend on your investment philosophy, your risk tolerance and how much time you’re willing to spend on allocating your assets. With target-date funds, you select the fund with the date closest to your planned retirement. Target-date funds are made up of other mutual funds — a combination of stock funds, bond funds and sometimes funds with alternative assets. In [...]

For investors trying to play the election game, the rules just got a lot more blurry. With less than two weeks before voters head to the polls, President Barack Obama and Republican challenger Mitt Romney are neck and neck, making it hard for investors to make their portfolio plays based on who will occupy the White House for the next four years. Historically, Wall Street rises leading up to an election, according to Sam Stovall, chief equity strategist at S&P Capital IQ. He said that the economy, stock prices and corporate earnings post stronger growth during Democratic administrations compared with [...]

Real estate investment trusts, or REITs, have outperformed both stocks and bonds in recent years, making this alternative asset class an essential component for any investor’s portfolio, experts say. A real estate investment trust represents the pooled funds of many investors, which are used to buy and manage income-producing properties. REITs trade on public exchanges, just like stocks. They invest directly in properties and are required to pay out at least 90% of their taxable income as dividends to shareholders. “Investors should absolutely have them somewhere in their portfolio,” says Philip Martin, REIT strategist for Morningstar in Chicago. “They are [...]

Looking for a safe hedge against inflation if grocery prices rise? Then try Treasury Inflation-Protected Securities, or TIPS. They pay a fixed coupon interest rate, just like Treasury bonds, but they also have a nifty kicker that can increase your principal. The value of TIPS is pegged to the U.S. consumer price index, or CPI, a key barometer of grocery and service price increases. They might be an attractive investing option for you. Here’s how TIPS work. Issued by the U.S. Treasury, TIPS have face values of $ 1,000 per security. Twice a year, the government resets the value of [...]

Texas Instruments is changing how it invests in wireless chips because of difficulties it is having in competing in that market, but a top executive declined to say how such a shift is expected to affect the company financially. TI has been under pressure from investors to pull back from wireless, where it has lost ground to rivals like Qualcomm Inc and to smartphone makers Apple Inc and Samsung Electronics Co Ltd, which are developing their own chips. “We believe that opportunity is less attractive as we go forward,” Greg Delagi, senior vice president for embedded processing, said during a [...]

It’s never too early to create a retirement plan, but before you dive in, make sure the water is clear. Retirement investing takes careful planning to get the results you want. With a few simple tips you can start to make the most out of your plan. Tip 1: Budget Every solid retirement plan starts with a concrete budget. Budgeting allows you to determine the amount of money you can contribute and save inside and outside of your retirement plan. Budget calculators are a useful way to determine your expendable monthly income and the amount you have available for savings. [...]

Since the financial crisis, analysts have speculated on the degree to which municipalities and their ability to pay creditors would be hit. Unemployment, the foreclosure crisis and sprawling pension obligations have intensified the struggle in some areas — for instance, San Bernardino, Calif., and Stockton, Calif. While default rates remain low, several high-profile bankruptcies have recently thrust municipal financing back into the spotlight. Though experts insist that the municipal bond market is generally safe, a recent report from researchers at the Federal Reserve Bank of New York may undermine those assertions in the minds of investors. Defaults reported by credit [...]

It’s not your imagination: The rich have been getting a lot richer. The Congressional Budget Office reports that real income for the top-earning 1% of the population soared 275% between 1979 and 2007, compared with a 40% increase for the middle 60%. There are various reasons for the widening wealth gap. One of them is that individuals with $ 1 million or more in investable assets, or an annual income exceeding $ 200,000, are considered accredited investors. This status has given them access to special investments such as hedge funds and private equity funds, which most investors don’t have. But [...]