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Sometimes, we forget that investment returns do not always come directly in the form of money. Sometimes a return is an experience, or a skill, or knowledge, or some other something that is not easily quantified. And while these types of investments can lead to more money or to saving money, the real return is often not in actual capital.

Investing in yourself

I really liked an article on The Street about the importance of investing in yourself. The article focuses on indirect ways that investing in yourself can help your financial situation. Jeffrey Strain offers some of the investments you can make in yourself:

• Health. This is a big one. You can save time and money — lots of money — if you keep yourself healthy. You will also be able to enjoy life better, since you will be active and better able to do what you want. However, like all investments, it may not pan out. My uncle, who lived a healthy life and is a perfect example of Someone Who Should Not Get Cancer,  ended up with lymphoma and thyroid cancer. Of course, the fact that he was healthy in body and mind did help him through the therapy and he appears to be on the road to recovery.
• Self-improvement. Strain suggests obtaining further skills and knowledge that can better help you in your job. An education can help you get a better job. But I also think that developing your particular talents and improving yourself in that way can be a good way to invest in yourself. It provides enjoyment and a feeling of satisfaction that can contribute to your overall well-being.
• Time management and organization. You can get more done, and work more efficiently if you take the time to organize and manage your time. Additionally, you can apply this to your finances as well, learning efficient ways to organize and manage your accounts.

If you take a few minutes each day to invest in yourself, you may find that you reap amazing rewards.

The election is over, and now it is time for all sorts of people, from amateurs to experts, to start making their stock market predictions for 2009. Tough (and nearly impossible) as it is to accurately predict the market, people still keep trying to do it. I still maintain that the only prediction you can count on is that, over the long term, the stock market gains. But I digress.

At any rate, the current forecast made by quite a few economists is that the stock market will rebound in 2009. CNN Money reports on what some are saying about the stock market:

If that forecast pans out, you can expect the market to bottom around the end of 2008. Even if the recession drags on longer than the pros currently think it will, we’re probably still looking at a stock market rebound at some point during the first half of 2009.

“Any way you look at it, we think prices will likely turn higher before the economy or corporate earnings do,” says Stovall.

What does that mean for you? Well, if you believe these guys, it means that now is a good time to buy. Buy before the market recovers.

And I tend to agree. Even if the experts turn out to be wrong, now is a good time to buy. There are some real bargains out there. Trying to time the bottom is usually a foolhardy move, so it makes sense to buy while the buying — in general — is good.

Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss. You are responsible for your own investment decisions and any loss that may result from your decisions.

Tags: stock market, stock market rebound, investing blog, stock market predictions,
stock market 2009, investments, bargains stock market

There has been some speculation lately about what kinds of stocks would benefit under either a Barack Obama administration or a John McCain administration. Now that question is getting closer to being answered. However, it is also important to look at other effects that a Barack Obama presidency might have on your investments. And by that, I mean taxes.

CNN Money has great coverage of the main points of the Barack Obama economic policy. While we’ll still have to wait to see what actually happens and what is sacrificed to political expediency or to reality, it is probably a fairly safe bet that proposed taxes on investments will go through. The country needs the revenue.

Taxes on investments

There are two main taxes on investments that will likely be seen in a Barack Obama presidency:

1. Tax on carried interest. Right now, tax on carried interest is seen as an investment for tax purposes. This could change under Obama. Instead, this carried interest would be taxed as income, automatically subjecting it to a higher tax than the 15% rate that exists on investments.
2. Raise the capital gains and dividend tax rates. While #1 is unlikely to affect much beyond hedge funds and private equity, capital gains and dividends may affect retirement savings. However, the rate is to be raised to 20% from the current 15%, and only on couples making more than $250,000 and singles making more than $200,000. So if you make less, little is likely to change in terms of your retirement account.

Your retirement investments

Of course, your retirement account is made up of investments. Obama wants to provide a match on retirement savings for families that earn less than $75,000 a year. It’s a nice thought, but this is probably something that falls by the wayside, since funding it will be tough.

As always, though, it is up to you to do what you can to make the most of any situation. No matter who is president, you bear ulitmate responsibility for your decisions — and the success they bring you.