Asset Allocation Management Without Mutual Funds

Many Investment Gurus, with a straight face and a gleam in their eye, will insist that successful investing is a function of expansive research, skillful market timing, and detailed technical analysis. Others emphasize fundamental information about companies, industries, and markets. But trends and numbers are secondary to a thorough understanding of the basic principles of Investing and Management, and their interrelationships. The ingredients for a successful investment portfolio are these: stubborn belief in the Quality, Diversification, and Income trinity from Investments 101, and operations that employ the Planning, Leading, Organizing, and Controlling skills introduced in Freshman Management. Here are some things to keep in mind while you season your experience with patience and marinate your investment process with discipline:

* A viable Investment Program begins with the private development of an Investment Plan. The first step is the identification of personal goals and objectives and a time frame for goal achievement. The end result should be a near autopilot, long-term and increasing, retirement income. Asset Allocation is used to structure the portfolio so that it operates in a goal directed manner. The finished Plan must be flexible in design, based upon reasonable expectations, simple in structure and operation, and easy to supervise.

* Use a "cost based" Asset Allocation Model. Although most of the Investment World operates on a Market Value basis for everything from performance analysis to Asset Allocation and Diversification decision modeling, you will improve your long-term results and stay within your allocation and diversification guidelines better by using a system based upon Working Capital. This widely unknown Asset Allocation "model" takes the hype out of daily stock market reporting and keeps the income investor's focus on appropriate statistics.

* Control your emotions, among other things. Clearly, fear and greed are the two that require the most control in the investment environment... particularly in these days of a reckless media, Internet empowered scam merchants, high-speed information gathering/processing, and cheap personalized trading capabilities. Love and hate need to be dealt with as well, but there are fewer out-of-body influences on these. Only strictly disciplined decision makers need apply for your Investment Management position... and you may not be the ideal candidate. Investment Management is a continual responsibility, not a weekend and occasional evenings avocation.

* Avoid hindsightful analysis, and uninformed (or salesperson) criticism. It is painfully comical how hindsight has taken over in our society... in sports, finance, politics, and the professions, everywhere... everyone you hear is second-guessing and finger pointing. No one is willing to take responsibility for their own actions and everyone is willing to sue whoever coulda', woulda' or shoulda' prevented whatever happened. Investors cannot afford to be Little League crybabies. Make one of the three basic decisions (which are?) and don't look back. No person or program can predict the future, and your portfolio requires management today. The playing field for the investment game is uncertainty.

* Establish a profit-taking target for every security you purchase. The purpose of investing is to make more money than you could in a guaranteed, non-negotiable instrument. This larger money making expectation comes with an assumption of some form of risk... there are several, and its "in there" in all investments. In Equities, set a reasonable profit target and take less if you can get it quickly. With income investments, never say no to a profit equal to a year's income, or 10% if you like round numbers. There are always new investment opportunities, and there is no such thing as a bad profit... or a good loss.

* Examine Market Value numbers at intelligent intervals. Frequent examination is stressful and non-productive. There are no averages or indices that compare with a properly diversified Investment Portfolio, particularly if your Equity selections are screened for Quality and Income. Investing is a long-term endeavor, and neither Shock(sic) Market symbols nor current yields operate on a calendar year schedule. Look at market peaks and troughs over significant time periods that include "cycles"... and do separate your analysis by class.

* Avoid what the crowd is doing and shun investment products. Consumers buy products; Investors buy securities. The crowd is driven by the very emotions that you must learn to control. Stay focused on your plan; analyze your annual income and trading statistics. Buy and hold creates more real tax problems than real millionaires, and gimmicks and fads last just slightly longer than spring fashions. Always buy good stuff on bad news and sell into good news announcements.

* Don't try to save the world with your investment decisions. Never limit your investment opportunities artificially. Votes work better when it comes to changing your world, and corporations should not be the targets of your political hates... get rid of incumbents, state and local, until there are changes in the tax code, social security, tort law, environmental issues, etc. In the meantime, invest with your head, not your heart. The business of a capitalist society is...

* Keep in mind that you need Income to pay the bills, and that your cost of living in retirement will be higher than you think. If you insist on some income from every Equity security you ever own, and beat-the-bank income from income securities, you will obtain two important things: An annually increasing cash flow that will rise at a rate greater than most normal inflation rates, and a higher quality investment portfolio for better long-term investment performance. (If you use a cost based Asset Allocation model with at least 30% invested in income securities and no open end Mutual Funds or Index ETFs.) Never settle for tiny short-term yields or get hooked on those that are unsustainably high.

* Investing is not a competitive event, ever. You don't need to beat the market. You need to accomplish a set of personalized goals. Not even your twin's portfolio should be the same as yours. The faster you run, the less likely it is that you will succeed over time. Big risks, foolproof gimmicks, and exotic computer programs occasion more failures than success stories. Remember the Investment gods? They created Stocks and Bonds... only Stocks and Bonds!

* Avoid Unrealized Gains, Embrace Volatility, Increase Annual Income, and remember that all key investment moments are only visible in rear view mirrors. Most unrealized gains become Schedule D realized losses. As of today there has never been a correction (rally) that has not succumbed to the next rally (correction). Only an increasing income level can beat back inflation... a bigger market value number just doesn't do it.

Perge'

Steve Selengut http://www.sancoservices.com http://www.valuestockbuylistprogram.com Professional Portfolio Management since 1979 Author of: "The Brainwashing of the American Investor: The Book that Wall Street Does Not Want YOU to Read", and "A Millionaire's Secret Investment Strategy"

All About Business to Business Property Management

Business to business property management requires some aspects that point out the professionalism and competitiveness of the employees. Which are these aspects? The main requirements of business to business property management are screening and appraisal of the market pyramid.

Business to business property management specialists provide professional business administration, establishment of profitable goals and their realizing, as well as making decisions for the benefit of the customer. Consultancy and assistance is offered in case of need for business to business property management, be it the case of market research, maintenance, land use and development or issues regarding marketing and leasing.

Business to business property management has five major functions: leading, planning, coordinating, organizing and controlling. Being given the fact that all these functions require various tasks, competences and abilities, business to business property management aspects are accomplished by different professionals, trained for these special roles. All of them have special skills and abilities, respecting an ethical code of behavior in business to business property management and offering outstanding services. Leading the major project of business to business property management is a matter of a huge responsibility, as the leader should know the direction and main tasks of the property management process. The one responsible with planning should be aware of the tasks that have to be accomplished and the methods and manner of dealing with this process. Coordinating various activities, organizing events, market research, studies and statistics is another important part of the business to business property management process. Being in control with the entire situation or several aspects is another aspect that can?t be neglected and requires specific skills and abilities.

The performance of business to business property management companies should meet the high standards of the economic and technological development. Professionals involved in various functions of business to business property management companies offer their abilities and guarantee the performance and wealth of customer?s properties. Highly trained employees involved in the business to business property management meet the customer?s needs and special requirements, providing extensive reports, market searches and studies concerning the effective and successful property management.

People involved in business to business property management have specific roles and accomplish specific tasks, contributing to the great results of the company they work for. Business to business property management process involves the market study, the negotiation on the behalf of the customer, maintenance, repair and other tasks. Business to business property management involves many other tasks and responsibilities, requiring much attention, capacity of establishing new tasks and of accomplishing them successfully.

Business to business property management supposes the involvement of not so pleasant details, such as effective income management and other activities related with construction, repair and maintenance. In order to face all requirements and needs one should have many skills, knowledge and patience. That is why business to business property management companies are so successful, providing assistance and advice for those who can?t cope with so many roles and responsibilities. The rewards for professional services offered by business to business property management companies are worth the time and efforts spent in hard trying to achieve something that a professional can solve almost immediately.

Property related issues explained in detail at http://propertymeet.info Up to date property business and management factors affecting your monetary return.

How to Choose A Property Management Firm

When you are comparing the services and fees of property management firms it's a bit like comparing apples and oranges. How do you accurately evaluate the sum total of all the various fees and expenses so you can estimate your annual net revenue? Are there hidden charges and monthly administrative fees that reduce your income? What is a fair commission rate to charge? In Incline Village, the range of property management services and fee structures runs the gamut from bare bones to deluxe.

If you are perplexed and confounded by these issues, then you are not alone. It seems that many property management firms (especially in the vacation rental business) try to nickel and dime their clients to death with excessive charges for cleaning, maintenance, credit card fees, administrative charges, processing fees, the list goes on and on.

Some firms in Incline Village charge a monthly administrative fee on top of the commission that they earn for managing a property. One can make an argument in favor of charging monthly administrative fees for short term vacation rental properties as they require more hands on attention to paper work with guests always coming and going. But charging this type of fee to the owner of a long-term rental property when all the paper work is done up front when the lease is signed is merely a form of gouging and should not be tolerated.

Processing fees are another bone of contention. Why should an owner or an owner-guest pay a processing fee? Companies that engage in this practice are trying to squeeze every penny possible out of the people who are really their clients. If you, your extended family or your guests have ever been charged a processing fee for making a reservation to occupy your own property, then you should seriously consider finding a firm that has more respect for you as a client. Cleaning fees are another area that merits scrutiny. As a property owner you should not be forced to pay a cleaning fee every time you use your place, especially if there are no paying guests coming to the unit between your personal visits.

Also, you should not be required to pay exorbitant sums for the annual "spring cleaning" that many firms insist on doing. If your property is supposed to be cleaned thoroughly after each paying guest, then why does it take several hours and cost hundreds of dollars just to clean a 2 or 3 bedroom condo in the spring time? Are the cleaning services padding their bills? Should you as a property owner and client of the firm have excessive fees extracted from you just because someone at the management firm claims that it took X number of hours to do the work in a unit that should have been reasonably clean to begin with? If you're skeptical about the charges for "spring cleaning", then it's best to either do the work yourself or hire a reputable independent cleaning service. The place will look just as good and you will save substantial amounts of money each year.

It is not easy to find the right combination of great customer service, reasonable commission rates and high-quality care for rental properties. You can expect to find 2 of the 3, but finding all three things is very difficult. Since many firms in this business tend to experience high levels of staff turnover, finding a firm with a well-trained and stable pool of employees should be your first priority. Even if you have to pay a slightly higher commission rate, you will more than make up for it with increased bookings, better service and fewer problems.

On-line booking capability is another big issue, especially when you realize that searching on the Internet is rapidly becoming the research method of choice for both vacation rentals and long term rentals. Any firm that does not offer this service is way behind the times and should not even be considered. The Internet is a great tool for both marketing rental properties and managing the vacation rental business. Just having a web site with pictures and text is not sufficient in these competitive times. If you are working with a property manager who refuses to set up on-line booking by the time you are reading this article, it's time to change services and go with someone who cares enough about you as a client to market your property 24 hours a day on the Internet with on-line booking.

You can find more information about real estate and property management at http://www.InsideIncline.com.

Remember, when the rental office is closed, the only way that someone can book your unit is on-line via the Internet. If your property manager does not offer this service, you are losing business. Customers who search on-line normally want to book on-line and they will go somewhere else if they cannot book your property at the moment they are ready to make to a buying decision!

Don Kanare of Lakeshore Realty, Incline Village, NV is a former business consultant from the Bay Area who uses his entrepreneurial and problem solving skills to help his clients achieve their goals. Don received his Bachelor's Degree from Boston University in 1977 and relocated to the west coast shortly thereafter. Don is an avid fan of the Tahoe lifestyle and enjoys skiing, hiking and outdoor adventures