Better Returns than Google and Apple? Yep.

In the past 15 years, we have experienced unprecedented growth in the tech industry. Many have invested in the stocks of the companies that make software, hardware and cutting edge websites. Google (GOOG) and Apple (AAPL) have been all-stars for investors, providing staggering returns over the past few years. But, some stocks offer even better returns. Over the past 5 years, Under Armour (UA) is up over 1,000%! Biogen (BIIB) and Pioneer (PXD) are up over 600% in the past 5 years. Constellation (STZ) is up 500% in five years. Read the full article here.

Choosing a Financial Advisor

Anyone can call themselves a financial advisor. That is a generic term that requires no specific education or certification. Some who are financial advisors will push their clients into products that benefit the customer very little, but they generate a large commission for the consultant. Many annuities and whole life policies fall into this category. Many tasks regarding financial management can be done on your own, utilizing websites where one can buy and sell securities, and obtain advice and information online. But, if one wants to hire a financial expert a good option is to hire a certified financial planner (CFP). Those with the CFP designation must complete certain financial college courses beyond a bachelor's degree, and they must take an oath to act in the interest of the customer, not simply push them into investments that will generate the highest commission. A CFP must pass a rigorous exam and undergo continuing education classes to keep up-to-date on developments in the financial industry. They must have at least 3 years experience as a financial planner. High ethical standards and a thorough background check are required. Honesty and integrity in financial advising has always been an issue, but hiring a CFP is one way to lower your risk of being put into poor investments.

Nothing Ventured, Nothing Gained

Risk is a part of investing. But, you can control your amount of risk. If you are afraid of taking chances you can still invest, but don't count on a good return on your money. A certificate of deposit or a government treasury bill would be safe, but don't look to get rich off of those. Diversification will help to control your risk. Mutual funds or exchange traded funds are diversified since they are composed of many stocks bundled into one investment vehicle. Consider the Vanguard Total Stock Market ETF (VTI). The year to date total return on this is 7.00%. The 52 week range is between $84 and $103. It is currently at $101 per share. It contains large, mid, small and micro cap stocks. So this is an index fund that offers you a way to invest while controlling risk.

More risk can lead to more potential reward. Buy individual stocks to increase risk and potential return. But, don't put all of your eggs in one basket. Let's say you have $1000 to invest. Is it better to put 100% of your money into one individual stock, or better to split it up five ways and put 20% into different stocks, all in different sectors? It depends on your risk tolerance and also your investing time horizon. You might want to put $200 into a tech stock, $200 into an auto stock, $200 into a health care stock, and the like. Young people and those with more disposable income can afford to risk more and lose more.

Jeremy Siegel is a professor at the University of Pennsylvania's Wharton School of Finance, the premier business school in the US. In his book, "Stocks for the Long Run", he writes about how investing in the stock market over a long period of time is a proven way to build wealth.

"The Millionaire Next Door"

What does a rich person look like? What is their lifestyle? From what we see on TV on shows like MTV's "Cribs", they drive outrageous luxury cars by Rolls Royce or Lamborghini, wear expensive Italian suits and live in over-the-top multi-million dollar mansions. That is true for some people, but assuming that all wealthy people live that way is incorrect. They often don't drive luxury cars, they don't always buy $25,000 fancy Rolex watches or have closets full of Armani suits. They have basic credit cards like Visa, Master Card, Sears and JC Penney. They are rich because they are frugal. They stay rich because they are smart with money.

These topics are covered in a book called "The Millionaire Next Door: The Surprising Secrets of America's Wealthy" by Thomas Stanley and William Danko.

There is a phrase that says "The rich get richer and the poor get poorer." This happens since the rich know how to put their money to work for them. They spend time studying personal finance and accounting. They read publications like Forbes magazine and The Wall Street Journal. They know to avoid the pitfalls that lead to financial ruin such as accumulating too much debt. They stay away from wasteful spending like rent-to-own stores, playing the lottery and falling for fraudulent investing schemes. Are there exceptions to the rule? Yes, there are many. Often the rich get greedy and take foolish risks in order to multiply their wealth. Look no further than the likes of Bernie Madoff or the crooked bankers behind the 2008 housing crisis.

Those who have inherited money tend to be show-offs more often, buying expensive possessions, when compared with those who have earned their wealth. Earning something makes you enjoy it rather than having it handed to you with no work involved.

You can't judge a book by its cover. Spotting a truly wealthy person is not as easy as you might think.