Want to save some money and increase your capital all at once? Saving doesn’t have to be hard, and there are several ways to accomplish your savings goals with just a little effort.

The most difficult part of saving is actually accruing the money you will save. There are always pressing financial needs in any lifestyle, and the hardest part of setting aside money is having money but not spending it. This challenge is compounded by the fact that those of us with the biggest need to save money and grow the value of our assets are also the ones with arguable the most pressingly immediate financial burdens. But this is the first step and you can’t save anything without it.

Make a plan to set the money aside in advance. For example, commit to putting away 2% of your next five paychecks, and then actually do it. Don’t wait until you have “extra” cash in your account—this may never happen, and you may overextend yourself if you haven’t planned your savings into your budget.

Next, decide where to put the money that you’re saving. Popular choices are high-interest savings accounts or CD accounts. More seasoned investors may think about investment accounts or other stock market options, but for a basic savings account, you may want to choose an investment type with less risk.

Decide how long you’ll put the money away for and what it will be dedicated to once you take it. This may just be the decision to use the money as “rainy day” savings, but it’s important to decide that in advance so you won’t “accidentally” spend your hard saved money on the wrong thing once you take it out of the account.

You may have heard that Alpacas make a great investment because of their high annual yields of fiber and the lucrative income it can provide. But did you also know that the tax code makes offers huge benefits to Alpaca owners?

Investing in Alpacas has many advantages

Whether you’re an individual with the ability to raise an Alpaca for fiber on a small farm or breed alpacas to shear or sell on a larger area of land, the tax code is full of deductions that will make investing in an Alpaca even more profitable than many other forms of investment.

Section 179 of the tax code allows for taxpayers to begin claiming deductions for some capital assets, the things purchased as investments toward profits, as soon as they are purchased. Alpacas are among the limited number of purchased investments that are included in this section. These are benefits that you will not be eligible to receive if you put money toward a traditional investment opportunity, like buying stock or a CD.

If you own an Alpaca for over a year, it is subject to capital gains tax, like most other investments. Capital gains are profits from an investment that has been resold. Your initial livestock will be subject to this provision if you sell them, as will any offspring from your livestock.

At the end of the day, Alpacas are a form of investment that offer significant and unique tax deductions that will start benefitting you as an investor right away. As long as you keep them, you won’t need to pay capital gains taxes, so Alpacas an be a great long-term investment opportunity. Or, if you choose to sell them, take the profit and pay the capital gains taxes on the sale, you still come out ahead—you will have accumulated enough tax benefits between the time of purchase and the sale to compensate for paying livestock capital gains taxes on your Alpacas.

Thinking about investing to build your retirement, establish an emergency fund or just watch your money grow a little faster than with a savings account interest rate? Before you invest stock, there are some things to consider so you can invest well and in a way that best suits your needs and investment size.

1. Diversify
   Don’t put all of your money into one fund. Look for ways to diversify your investment and capitalize on as many of them as possible. Whether it’s national or international or just multiple industries, spreading your money around will give you safety because it one fund fails, you’ll still have the opportunity for growth in other areas of your investment.
2. Buy the Company
   When you put your money into the stock market, what you’re really doing is putting your money behind companies. You are putting your trust in their success and your money toward helping them succeed. Think carefully about which industries and individual corporations you want to support in that way and which you feel are going to succeed in the long term.
3. Large and Stable
   Look for large and stable industries to invest in, such as utilities and basic commodities, which people still buy even in times of financial hardship. Even when the market takes a hit, people let other things go from their budgets before electricity and necessities like soap and nonperishable food.
4. Assess Risk
   Depending on the type of investment you’re looking for, you’ll prefer aggressive, moderate or conservative investments. Aggressive investments put money behind funds that have a higher risk of failing, but if they succeed they will provide the largest returns possible. Moderate risk is the most common choice because it provides reasonable returns with less risk. If you’re investing less and depending on maintaining the original amount invested, very conservative investments and bonds are the safest, although lowest, return possible.

CBS News recently released an interesting list: the college majors with the highest unemployment rates. In an economy where finding a job is almost impossible, the one last bastion of hope is that getting a college education will set you apart just enough to get you at least a decent job. Yet, I still have recently matriculated friends who are doing jobs previously unthought-of for graduates with international studies or psychology degrees: these jobs include working a deli counter and waiting tables.

So, the recent list from CBS is particularly interesting… if so many graduates aren’t getting jobs, who are the hardest hit? The top three they have listed are: Psychology, Fine Arts, and U.S. History. Honestly, these don’t surprise me. These degrees are relatively open-ended when it comes to finding a post-baccalaureate job.

I do have something critical to say about their list, though, and it’s this: I wonder if they took into account degrees where continuing education is assumed. For example, I first noticed this when I saw that Architecture is number six on their list. I know an undergraduate student of architecture very well, so I asked him about it. He told me that it’s assumed you’ll get a Masters degree immediately after you graduate… you can’t even be a practicing architect without it!

So, of course job placement is low, he told me. His primary concern when he graduates isn’t going to be finding a good architecture job, it’s going to be getting into a good graduate program.

I wonder if the same might be true of degrees like psych and history. The people who get these degrees often have a longer-term plan, like getting a doctorate in psychology to become a psychologist or going on to law school.

The bottom line is this: even a college degree doesn’t guarantee you a job in this economy. That’s unfortunate news for the hoards of students who flock to universities across the country every year hoping for a leg up on the competition.

For Rent?

Are you considering entering the market of property management and leasing? The Wall Street Journal reports that there may be more to consider than just the buying and renting.

The market is rife with would-be renters who have just lost their home to foreclosure or an untimely sale. On the other end of the deal, there are also those with solid savings who are looking for new investment opportunities and seeing the door to becoming a landlord wide open.

As Kimberly Foss, president of a wealth management firm in California, tells the Wall Street Journal, her clients that are looking to invest in becoming landlords have an average of $4 million in net worth and see buying and leasing as an investment opportunity—after all, there are plenty of homes left without residents and plenty of residents left without homes. It seems like the perfect storm for quick thinking investors.

And although the market is right for leasing, Foss warns that there are “traps” that potential landlords may not see, including deadbeat tenants and unforeseen market fluctuations that change a property’s worth.

How can you mitigate the risks and make property investment a smart move? Some advice includes screening your potential tenants heavily—and not limiting that screening to credit checks, only renting out properties close to where you live (or hiring a property manager,) and covering all your bases when it comes to planning realistically for the cost of investment.

If you do it right, property management can be a great investment that will pay itself off quickly and then keep providing you with revenue. But if not, it can be a deadly trap for your financial security and cause you no end of headaches.

Ask anyone in this economy if they’ve got any money to spare and they’re almost definitely going to tell you:

No.

But as hard as it is to set money aside for savings, let alone for something as far off as retirement, experts say that adults in their 20’s should begin saving now to get the maximum benefit from their retirement accounts.

MSN Money reported last week that,

“Someone who puts $4,000 a year into retirement accounts starting at 22 can have $1 million by age 62, assuming 8% average annual returns. Wait 10 years to start contributing, and you’d have to put in more than twice as much — $8,800 a year — to reach the same goal.”

This is both encouraging and discouraging news for those of us in our twenties. The job market is sparse and beyond that, the jobs that are available require young adults to go thousands of dollars into debt for proper education and training. Then again, we see our parents struggling through retirement and realize: we could be so much better off if we could only plan ahead now.

I even heard one financial advisor on NPR go so far as to advise those of us in our twenties to put saving for retirement ahead of paying off debt—we’ll end up with a big enough return on retirement accounts to justify the hit to our credit in mid-life. Something to consider critically for a generation that’s waist-deep in credit card debt, minimum wage jobs and a low-interest economy.

I’ve had a retirement account since I was 17-years-old, and I can tell you first hand that the small amount of graduation-gift money I put in it at the end of high school has multiplied exponentially since then. Knowing this, I can believe what they say about saving now for a huge nest-egg later, but the question has to be asked: If I save $4,000 a year for retirement, who’s going to pay my rent?

Groupon, the company known for offering hot discounts at local businesses, has jumped into the stock market and filed to become an IPO.

The Chicago Tribune quotes Groupon CEO Andrew Mason, saying, “Our IPO is a small milestone on our journey. I feel incredibly grateful to serve as CEO of Groupon. With our IPO behind us, I couldn’t be more excited about what lies ahead.”

Although Groupon has started trading publicly, it is doing so with extreme caution. The company started by selling only 5.5% of their company’s worth. This may be a protection for buyers as well, consider the prediction by the Chicago Tribune that the value of shares will vary greatly depending on the volume and type of business the company is doing at that particular time, something that could be risky for a publicly traded company.

Groupon works by asking local businesses all over the country to offer steep discounts on their products and services, on the condition that a certain number of people will pay in advance for that service. For example, a restaurant might offer a $30 gift card at the cost of only $15, as long as over 200 people buy the gift cards up front in the specified window of time. If not enough people buy into the deal, those who did choose to purchase the gift card are not charged for their purchase and the deal is called off.

This business model has been replicated by Google under the name of “Google Offers.” This type of discount-sharing service has risen in popularity as the market as continued to hold steady in its decline over the past several years, creating an unexpected new source of business in a country who’s consumers are only looking to save.

The irony is: because consumers are out of money and looking for ways to spend less of it, we’ve created yet another corporation, Groupon, worth close to $13 billion dollars.

Looking to add some fiber to your investment diet?

Alpacas produce a premium fiber in 22 vibrant colors, the demand for which is ever increasing. Annual fiber yields vary from about five pounds from a single female to a reported thirteen pounds from a larger male. Breeding and selling in this ever increasingly popular industry is another easy way to add to your investment dollars!

Not to be overlooked as a very important aspect of raising alpacas are the great tax benefits provided to both farms and any small business. An alpaca can typically be depreciated over a five-year span or 20% per year.  In addition, Section 179 of the tax code to allows for the deduction of a capital asset.

Effective as of 09/27/2010, H.R. 5297 (the Small Business Jobs and Credit Act of 2010) had a substantial impact on Section 179 – below is quoted from “section179.org”:

• An increase of the total amount available for deduction to $500,000 (up from $250,000)
• An increase to the total amount of equipment purchased to $2 million (up from $800,000).
• The above numbers are to be in effect for 2010 and 2011.
• In addition, the bill also extended the 50% bonus depreciation to tax year 2010 (it was rescinded earlier, but has been restored.)

Capital gains can be available on the sale of breeding animals and their offspring. Current expenses are deductible.

Consult a tax advisor for specifics as they relate to you.

Add to all of this that alpacas are 100% insurable. Can stocks do all of this?

All You Need Is Love  Alpacas are so easy to raise, practically all you need to give them is love. They eat very little food and therefore require only a small amount of acreage per animal. Veterinary costs are minimal. Besides their endearing qualities of warmth, friendliness, and trainability, they have an enduring quality of strength and toughness. That means you’ll have a friend for a long time to come. Coming from the rugged Andes makes life on the farm a piece of cake…for your alpaca and for you!

The Many Benefits Of Breeding  As your alpaca herd breeds and grows, the return on your initial investment multiplies at a strong and steady rate. Along the way, you’ll receive numerous tax benefits and incentives that make your investment even more attractive! Deductible expenses, capital gains benefits, and insurable, depreciable investments are just a few of the many ways you can save money while also taking part in one of the most exciting industries in the world.