Who To Speak To About Investing Money

Understand Your Investment Options

Whether you invest through a 401 or similar employer-sponsored retirement plan, in a traditional or Roth IRA, or in a standard investment account, you choose what to invest in.

Its important to understand each instrument and how much risk it carries. The most popular investments for those just starting out include:

Teach Your Kids How Money Works

First, start getting familiar with money early on. Although the amounts change over time, the fundamental nature of how money works stays the same. Take for example when a child is 10. Earning or spending $20 may seem like a lot at this point based on how much they may have saved up . This same fundamental rule of relative amounts applies as a child gets older, just with larger numbers.

In my opinion, its important for children to be around money early and to earn and have their own money so they understand how it works. Rather than parents just buying gifts for their children I would suggest giving their children shares of stock or money so they can make the decision of how to use their money on their own. Being responsible for money at an early age allows children to learn about money management early. Theyll quickly learn that if they spend more than they have, their savings will quickly run out .

Although giving a child money rather than a gift might not sound like the most elegant thing to do and obviously you wouldnt just hand a friend money at a birthday party, the purpose of this for a child is different. Often gifts and perhaps an allowance is a childs only source of income. By being responsible for their own money early on, a parent can observe their childs money decisions and help advise them on strategies that will be right for them later on in life, plus its likely the child will learn good money habits on their own.

Ways To Make Money With 2023 Fertilizer

The double whammy of global fertilizer supply uncertainty combined with high cash corn prices provides an incentive for farmers to fine-tune their 2023 crop nutrition practices.

Thats because fertilizer prices will continue to stay above the long-term average, says Gary Schnitkey, a University of Illinois agricultural economist.

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In November 2021, farmers could buy anhydrous ammonia, potash, and diammonium phosphate for roughly $800, $600, and $717 per ton, respectively. Farmers who locked in those prices also locked in certainty.

Currently, those prices hover around $1,400, $983, and $862 per ton, respectively. Because of global uncertainty and healthy demand spurred by high cash corn prices, fertilizer prices are expected to stay at these levels, adds Schnitkey.

Break-even prices will likely be much higher in 2023, near $5 for corn and $11 for soybeans. Continuing high fertilizer prices and increases in all production costs point to the need for high corn and soybean prices to remain profitable, Schnitkey says.

Here are 11 tips for maximizing fertilizer dollars.

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Understanding Tissue Testing Timeliness

Growers who use tissue testing have a short amount of time to take corrective action, says Isaac Anderson, a WinField United agronomist.

Growers need to talk to retailers about the turnaround time on tissue sampling, he says. Some retailers can turn around tissue samples in a day, others a week. Anderson says the average life of a corn plant from emergence to physiological maturity is relative to a 75-year-old human.

• READ MORE: How to build carbon-rich soil

That ratio is that one day for a corn plant equals six months for a person, he says. If we let our plant be deficient or out of balance for a week, youve set that plant back several years of its life. Thats why its important to know the turnaround time and what you can do for in-season management.

Building Wealth Requires Time And Patience

Building wealth is a lot more than a numbers game its a tournament with yourself that requires consistency and dedication. While there are plenty of ways to build an investment portfolio that stands the test of time, youll want to think over your investment time horizon and risk tolerance before you dive in.

But since time is one of the most important factors in building wealth, its important to get started as soon as possible. So if you have money that isnt invested in either a short-term or long-term asset, take some time to consider your options so you can make sure your money is working for you.

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Realize Soil P And K Test Numbers Aren’t Perfect

One common misconception is that the soil test results are 100% on the money. Thats not always the case, Slaton says.

Soil P and soil K numbers are merely an avail- ability index, and not the absolute truth, he says. They are an indicator of availability to the depth sampled, but there are nutrients available below that depth. I think in many instances, we short- change the amount of nutrients a soil can supply the crop.

Remember, too, that consistency when obtaining a sample is important. Soil test results and the subsequent recommendations will be different in season vs. out of season.

You can see a dip by a couple of points in the middle of the growing season, and there will be a soil pH difference between fall and spring, says Waypoints Ruiz, who adds that hitting the same field locations that youve drawn soil samples from is just as important. Be consistent in time and space.

Golden Rules Of Investing

• Pay off your debts first pay off any loans, like a credit card or personal loan, before you invest.
• Have emergency savings aim to have enough set aside to cover three months expenses, so you wont have to sell an investment if you need cash quickly.
• Develop an investing plan define your financial goals, risk tolerance and investment time frame.
• Research different asset classes understand the risks and returns, and how they can help you reach your financial goals.
• Diversify your investments spread your money across and within asset classes to lower your portfolios risk.
• Keep track of your investments review them regularly and make sure youre on track.

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Alternatives To Financial Advisers

MoneyHelper, Citizens Advice Bureau and Pension Wise provide free and impartial financial guidance.

In contrast, advice from an IFA is a service that will recommend a specific product based upon your personal situation. Guidance will give you information to help you narrow down your choices – read more about free guidance services here.

Know What Financial Services You Need

Identify why you’re looking for financial help by asking the following questions:

• Do you need help with a budget?

• Do you want help investing?

• Would you like to create a financial plan?

• Do you need to get your estate plan in order or create a trust?

• Do you need tax help?

Your answers to these questions will help determine what kind of financial advisor you’ll need. If you just want assistance investing, a robo-advisor can invest for you for a minimal fee. If you have a complex financial life you may want to work with an online or traditional financial advisor.

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Determine Your Investing Approach

The first thing to consider is how to start investing in stocks. Some investors choose to buy individual stocks, while others take a less active approach.

Try this. Which of the following statements best describes you?

• I’m an analytical person and enjoy crunching numbers and doing research.
• I hate math and don’t want to do a ton of “homework.”
• I have several hours each week to dedicate to stock market investing.
• I like to read about the different companies I can invest in, but don’t have any desire to dive into anything math-related.
• I’m a busy professional and don’t have the time to learn how to analyze stocks.

The good news is that regardless of which of these statements you agree with, you’re still a great candidate to become a stock market investor. The only thing that will change is the “how.”

Invest In Brokerage Accounts That Reduce Taxes

Just as owning the right investments will help you reach your financial goals, where you invest is just as important. The reality is, people don’t consider the tax consequences of their investments, which can leave you short of your financial goals.

Simply put, a little bit of tax planning can go a long way. Here are some examples of different kinds of accounts you may want to use on your investing journey. In each of these accountsâexcept for a taxable brokerageâyour investments grow tax free..

Here are some more points to keep in mind, based on why you are investing:

• Maximize employer-based 401 plans, at least up to the maximum amount your employer will match, is a no-brainer.
• If your earnings allow you to contribute to a Roth IRA, building up tax-free income in retirement is an excellent way to help secure your financial future.
• Use the Roth-like benefits of the Coverdell and 529 college savings plans removes the tax burden, resulting in more cash to pay for education.
• A taxable brokerage account is an excellent tool for other investing goals, or extra cash above retirement account limits.

The bottom line is that everyoneâs situation is different. You must consider your investment time horizon, desired return, and risk tolerance to make the best investment decision to reach your financial goals.

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Give Your Money A Goal

Figuring out how to invest money starts with determining your investing goals, when you need or want to achieve them and your comfort level with risk for each goal.

• Long-term goals: The universal goal is often retirement, but you may have others as well: Do you want a down payment on a house or college tuition? To purchase your dream vacation home or go on an anniversary trip in 10 years?

• Short-term goals: This is next years vacation, a house you want to buy next year, an emergency fund or your Christmas piggy bank.

In this post, were largely focusing on long-term goals. Well also touch on how to invest with no specific goal in mind. After all, the aim to grow your money is a fine goal by itself.

Money for short-term goals generally shouldnt be invested at all. If you need the money youre saving in under five years, check out our recommendations for how to invest money for short-term goals.

Consider 2x2x2 Fertilizer Application

The practice called 2×2×2 is gaining traction. Farmers who equip planters accordingly are adding two bands of fertilizer to their corn crop at planting, each band 2 inches deep and 2 inches from either side of the row.

The seed company Becks says that practice 2×2×2 bumps yield nearly 5 bushels per acre compared with applying fertilizer on one side only .

Through its Practical Farm Research Program, Becks tested two fertilizer products:

• 50/50 blend of 28% and 10-34-0

Through several years of research, the yield bump appears to come from the N instead of the P. Becks believes in the system so much it has earned the PFR Proven label, meaning it has shown a return above investment for three consecutive years.

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How Do You Start Investing In Stocks As A Beginner

One of the most common ways to start investing is with a broad index fund that tracks either the S& P 500, Nasdaq, or Dow Jones Industrial Average. These products automatically diversify your brokerage account with dozens of the most successful stocks in the U.S. economy. Many ETFs track broad indexes like these, but highly liquid options for the S& P, Nasdaq, and Dow include SPY, QQQ, and DIA, respectively. Of course, these are relatively low-volatility investments, and some investors will prefer the high risk/reward ratio of individual growth stocks or penny stocks, but the stability and popularity of these indexes make them good for learning about how markets work.

What Is Risk Tolerance

Do your hands sweat at the thought of losing money, or does the word âriskâ thrill you? Basically, risk tolerance is how much risk you are willing to take. In other words, how much money are you prepared to lose? Understanding your risk tolerance is key if you are a conservative investor who takes on too much risk, you may end up panicking and selling your shares at the wrong time.

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Determine Where To Invest Your Money

After you feel comfortable with the level of help you have decided to take or not to take and the amount of money you want to invest, its time to decide where to invest your moneyfor the long term. When deciding where you should invest your money, youve got plenty of options. These options include:

1. The Stock Market

The most common and arguably most beneficial place for an investor to put their money is into the stock market.

When you buy a stock, you will then own a small portion of the company you bought into. When the company profits, they may pay you a portion of those profits in dividends based on how many shares of stock you own.

When the value of the company grows over time, so does the price of the shares you own, meaning that you can sell them at a later date for a profit.

Index Investing

Index investing is another way of investing in the stock market, but instead of buying a stock in an individual company, you purchase stock in a stock market index, which tracks a number of the largest companies in the stock market.

Over the past 90 years, the S& P 500 which is an index of the 500 biggest companies in the US and a pretty good reflection of the overall stock market has delivered an average annual return of 9.8%.

401K

There are other investment options, beyond the stock market, too

2. Investment Bonds

Investment bonds are one of the lesser understood types of investments. Heres how they work:

3. Mutual Funds

Heres the kicker:

4. Physical Commodities

Even Though Theres Panic Theres Still Normalcy

What stressed me out the most about adding more money to my investment accounts was the fear that the effects of the coronavirus could be unprecedented and something that rocks the market more than anything ever before.

Jared Machen, a certified financial planner at Black River Capital, reminded me that despite how it feels, price fluctuations are normal occurrences in the stock market.

Before coronavirus, there was 9/11, SARS, the dotcom bubble, the Great Recession the list goes on, said Machen. Through past crises, the downward market has lasted days, months, or some years however, it always sharply rebounded and rewarded the patient investors in the end.

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Key Things To Know About Bonds

With bond basics under your belt, keep reading to learn more about:

What If Things Go Wrong

Financial advisers are regulated by the FCA, and this gives you access to redress should anything go wrong with your advice through the Financial Ombudsman Service .

This means that you can complain to the FOS if you’re unhappy with any advice you’ve been given or if you think you’ve been mis-sold, and the FOS will take the appropriate action for example, ordering your adviser to pay compensation.

The FCA has the power to fine financial advisers who have broken regulations.

You wont be compensated for investments falling in value, or a company in which you hold shares goes bust, unless this poor performance resulted from bad advice given by a regulated Independent Financial Advisor that has since gone bust.

The Financial Services Compensation Scheme may cover up to £85,000 of investments per person, per product. You can claim for free online: theres no reason to use a claims management company.

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Downsides Of Hiring A Financial Advisor

As great as a good financial advisor can be, there are also bad actors in the field. An incompetent advisor can cost you a lot of money. Here are some red flags to look out for when you are working with an advisor:

• Churning your investments: Some advisors may prompt clients to buy and sell securities more than necessary, generating higher commissions for themselves.
• Expensive investments: They may point you to mutual funds with high expense ratios when a similar, low-cost index fund or an exchange-traded fund would be a better choice.
• Bad planning: A well-intentioned advisor who puts together a financial plan that is sketchy or ridden with holes is not helping you at all. Of course, plans do need to be flexible, given changes in the economy, interest rates, and the curveballs that life can throw at you personally . But you need to start out with a detailed blueprint and a clear course of action.
• Not responding: Even an unbiased advisor is useless if they never return your calls or emails when an urgent need arises. Timing can be of the essence in many financial and investment scenarios, and you must feel confident that your advisor will respond to you promptly.