Investing wisely takes time, knowledge, and a detailed strategy in order to reap the best rewards for your efforts. Just like any major commitment in life, best practice investing requires putting a plan in place that includes setting goals, monitoring progress, and when necessary, making modifications. When you hear a seasoned investor boasting about successful results, just remember they most likely started with a few investments and grew them over time.

Here are a few tried and true “best practice” tips for investing wisely and minimizing related taxes along the way:

1. Timing

When it comes to investing, sooner is better. Starting a small investment for a child or teenager is a great way to introduce the concept of consistent investment. As an adult, you will need a more detailed plan to meet your goals. Younger adults may feel they can make more risky investments earlier in life. Older investors usually feel the need to invest in less risky options since recovery time from a loss decreases with advanced age. A knowledgeable financial advisor can help make the process smooth and successful. The main thing to remember is that the timing is always right for starting some kind of investment and a financial professional can help you find the right choices for your situation.

2. Creating a Plan

Before meeting with a financial advisor, investment counselor, or personal banker it is important to clarify your goals for the investment. Best practice suggests that you should consider your short-term, intermediate, and long-range goals; it
is a great idea to list them and take the notes with you to your first investment meeting. Different investment vehicles will serve a variety of needs; it will help the meeting go more smoothly if you are clear about what you are expecting out of your investment. Finding the right match with an advisor that you feel comfortable with may take a couple of tries. It is fine to shop around to be sure the person you choose to work with is someone you feel best understands your goals and has the knowledge to help you achieve results. As your investment grows, you may needto consult a CPA to be sure you are taking advantage of all possible tax breaks.

Most financial planners work closely with a CPA who has successfully passed the CPA exam. Sometimes students in the CPA Exam review process may offer their services which are then reviewed by a licensed CPA; if your investments are few and your questions are simple this may be one way to save a little money.

3. Be Consistent

Whether you choose to invest bi-weekly, monthly, or quarterly, the point is to be consistent. This is a great habit to build in children and teens, as well. Long term fiscal responsibility and long term financial planning is a learned behavior.
Today, investors of any age can take advantage of many affordable investment services that exist to make the process both understandable and rewarding. If your investment is growing regularly it is easier to maintain the commitment and feel great about your choice to invest in your future. In lean times, the investment amount may need to decrease, but the important thing is to keep making regular deposits into your investment accounts, even if they are small at first (or need to fluctuate over time).

4. Utilize Investments that can Minimize Tax considerations

Because older adults are more often in a lower tax bracket than younger adults, investing in a Roth IRA can allow you to put money away during your highest earning years and withdrawal it when you will owe less taxes on it. A skilled
investment planner can help you to avoid rookie mistakes like forgetting to subtract your reinvested dividends from your total taxes owed. For more seasoned investors whose investments in municipal bonds help build large ticket items like schools, there are several tax deductions available that a certified financial planner can help you sort through to get the most from your money.

5. Diversify with Top Choices

While the best investment options will vary based on the amount you have to invest, your age, your goals, and the advice of a seasoned financial professional, some of the most popular investment options include:

• Roth IRA – tax structure advantages
• Mutual Funds – packaged investment with varying degrees of risk
• Individual Stocks – online or direct purchase plans are generally most affordable
• Municipal Bond – low risk, long-term

A reputable financial advisor should be able to go over a comprehensive selection of investment products and help you choose a well-diversified set of investments that best fit your life situation and goals.

Conclusion:

For many people who have never invested in anything but a savings account, meeting with a financial planner or hiring the right CPA may seem intimidating at first, especially if your budget is already stretched. Today, there are a wide range of investment options and financial professionals who can help you set goals and achieve progress along the way. Many credit unions have low-cost financial planners; another place to find a certified financial planner is through their professional website at: http://www.cfp.net/find/EnhancedSearch.aspx. No matter how much you have or don’t have to invest, the important thing to remember is to just make a plan and get started – you just might be surprised how much your money will grow over time with a little careful attention and some skillful planning along the way.

References:

• http://www.forbes.com/sites/schifrin/2012/01/04/guru-round-up-best-investment-ideas-for-2012
• http://www.sec.gov/investor/pubs/begininvest.htm
• http://www.aicpa.org/INTERESTAREAS/PERSONALFINANCIALPLANNING/Pages/default.aspx

If you are a proud American, you might want to skip to another page. This might hurt a bit. If you are a Canadian, you get relief from the pain.

As a Canadian, you are probably used to looking with envy across the border at all the great new products, new varieties, new flavours that Americans get access to before you. Or you might go cross-border shopping, and your friends look upon you with envy.

But when it comes to money and banking, it is Americans who must look across the border with envy.

Consider these advances in Canada that still have not come to the USA:

Email Interac.

Within Canada, anybody can send anybody else money with no fees, instantly with an email address. All you have to do is pre-arrange with the other person the correct answer to a security question. Although this service is limited to $1000 per day, all major banks participate and you don’t have to leave home or write cheques. And after several years, it is still available only in Canada.

Coins.

Since 1987, Canadians have been using “Loonies” – coins featuring one of my all-time favourite birds, the Loon – instead of dollar bills. In 1996, the Toonie was introduced, featuring a polar bear, to replace the two dollar bill.

In 2012, Canada issued a glow-in-the-dark quarter (25 cents), featuring a Pachyrhinosaurus Lacustai, the first dinosaur discovered in Alberta, which is now one of the top treasure troves of dino bones. Oh, come on. You can’t tell me that isn’t cool.

Pennies.

Sometimes progress is measured not in the new products introduced, but in the anachronisms that are discontinued. Like Sweden, Australia and New Zealand before us, Canada has just discontinued the penny. This little coin that costs more to produce than it’s worth, and costs the economy countless Loonies and Toonies in pocket-hole repair, will no longer plague our fair land. Don’t hold your breath, though, for Americans to be saved from this scourge. Now, if we could just stop producing mosquitoes…

Mosquitoes.

Just kidding. There are no mosquitoes in Canada’s banking and monetary system (which might just be the only place in Canada without mosquitoes!).

Colour.

I cannot remember the day when Canadian currency was monochromatic. To my memory, it has always been a display of colour – as are most currencies in the world. I would be tempted at this juncture to make some typically Canadian snide remark about Americans missing the “u” in “colour”. But in this case, they are in fact missing the “c”, “o”, “l”, “o”, “u” and the “r”. Wait. Hold the presses.
The most recent American bills have traces of colour. Not quite an explosion. Not even a display. But traces are progress, right?

Plastic.

To those who yearn for the olden days, for traditional ways, for more natural displays, plastic
currency might not be seen as “progress” or “advantage”. But Canada has introduced polymer money,
including see-through notes, such as the $50 bill introduced last year.

Canada has many other differences – advantages, some have described them – in its banking and monetary system, but I am not the one to recount these. I will stick to those consumer products that you and I can see, touch and feel.

Canadians might have to wait to pick up the latest fashion trend or taste the latest flavour of yogurt, but at least we have the latest money that money can buy.

If you have an old, near-worthless vehicle, you can usually make a few extra hundred dollars from it by doing some research and using a few simple online tools.

Here are a few ideas to consider when getting rid of your old car.

1. Car donation.

You won’t get any cash for donating your vehicle, but with Donate Car USA, you can get papers that prove the value of your donation. At tax time, you can deduct your donation to save yourself a nice chunk of cash.

Dozens of charities take car donations, including many well-known national organizations and clubs. Even if your car isn’t running, you can usually donate at a solid value, but make sure that the relevant paperwork is in order before finalizing your donation in order to secure your deduction.

2. Father and son projects.

If you have a collectible car or if your vehicle’s model has a good reputation for safety and reliability, you can often sell it to families looking for a project vehicle.

If your old car doesn’t run, they won’t pay much money for it, but you’ll get the satisfaction of knowing that your vehicle’s giving a father-and-son mechanic team some quality bonding time. To sell your vehicle as a project car, write a brief ad describing what’s wrong with it and post the advertisement online. Check out services like Craigslist and eBay. You can also post an ad in your local paper.

3. Junk yards.

Some junkyards pay for vehicles. When you give them your vehicle, they’ll tear it down and sell the parts one at a time.

When you junk a car, you generally don’t get very much money for it. In fact, your local junkyard might not pay for anything other than a tow depending on where you live and your vehicle’s model and condition. Still, if you’re willing to search online for nearby junkyards and call them individually for a few minutes, you might find a local junkyard that will pay a modest amount for your vehicle.

With any of the options above, you’ll need your vehicle’s registration and title. Be sure to get money or a proof of donation before transferring these documents to your vehicle’s new owner. Research your options thoroughly and check the value of your car on websites like Kelley’s Blue Book before you make a decision. Even if your vehicle isn’t worth much, it’s still worth your time to get as much money as possible.