Businesses or individuals that assist in facilitating transactions in between buyers and sellers charge brokerage fees. Depending on the structure of the brokers fees and the value of the transactions, the quantity that is involved could be gigantic. It is therefore essential for every trader to know how to cut down on this cost.The accessible price saving measures are easy to follow and could be adopted by any individual who really desires to decrease the amount that he pays to brokers.
Coming up with a list of priority would be a sure way to help you steer clear of paying a lot of money to the broker. Other than helping people scout for fantastic investment services, the brokerage companies also help people in carrying out research. You could decline to permit them carry research on your behalf and rather do it yourself. Nevertheless, if you can't do this, you can select a business that charges a lower amount of charges.
You need to figure out the most effective and economical ways of placing your orders. You can select to location your orders using the method of the broking business and this way, you will not be charged. However, you might have to pay if you ask the broking firm to location the orders on your behalf.If you look at these tasks, some of these are quite simple hence yo can handle them on your own.
Also, it is crucial that you check the structure of your commissions. This is simply because some trades offers for a lower payment in terms of commissions. Depending on your volume of transactions and the frequency at which you trade, a commission structure that charges you per share would be the most cost efficient.
The web is a rich source of information and allows you to carry out a comparison about what companies have on provide. There are usually some fantastic deals that are on offer therefore you could choose to go for them. You will be astonished at how a lot money you will save by carrying out correct comparisons.
The internet is a wealthy source of information and it is important that you use it correctly. Compare the brokerage fees that are charged by various broking companies prior to you enter into a deal.Given the fact that all of them have websites where enough information is displayed, you can choose what you require to make decisions.This comparison translates to saving money in the lengthy run.
Brokerage charges have turn out to be a thorn in the flesh of many investors.Individuals are paying too much to obtain particular services.However, the great factor is that this cost can be minimized by anyone who understands how to go about it.The above easy suggestions could allow you achieve that goal.
Brokerage businesses that facilitate transactions between buyers and sellers normally charge Brokerage Fees.
View the original article here
Friday, June 29, 2012
Monday, June 25, 2012
Don't Invest In Gold and Silver, Save In Gold And start Your Own Nest Egg
Saving in precious metals is not hard. It doesn't take a lot of money to start doing it either.
All it takes is knowledge, a little bit of money (not much, but some) and a bit of discipline.
Once you get started, saving this way will become a habit for life. With the most proven asset you will preserve your wealth The one with thousands of years positive record: Gold and Silver.
Gold and Silver will never be obsolete, and will always be immediately liquid.
Saving with gold and silver will make your life financially sounder. Your savings will not evaporate through inflation.
You will naturally start saving more and more. The sooner you start the better your financial future will look.
The Difference Between Investing and Saving Investing and saving are completely different financial strategies. This is a distinction that is well understood by the very wealthy. The financial elites take investment risks to grow their wealth. They save in gold to protect their wealth.
Now, you might be thinking - "I don't have enough wealth to protect, I need to put all my efforts into investing for increase.
"
That could be true in normal times. But these are not normal times. In the current situation, EVERYTHING you have needs protection. It doesn't matter if you are rich, poor, or somewhere in the middle. You MUST make saving precious metals your #1 priority. Here's why..
The global financial system on which we all depend is a house of cards. Today, the house of cards is expanding out of control. And it is bound to collapse in its present form. The whole system is based on debt - consumer debt, company debt and national debt. This pile of debt has become unmanageable, as we see from the Euro crisis and the brinkmanship with default in the United States.
The direct result of a debt-based money system is inflation.
Your paper money is already losing half its buying power every 10 years. As of January 2012, inflation has become the official declared policy of the central banks.
Inflation is a "silent tax" - and you are paying it every day, just by owning cash. There is only ONE sure protection against inflation. And that protection is gold.
What Makes Gold Different
There are three factors that make gold different from anything else in the financial world:
The Real Value of Gold
Forget about the recent bull market for gold. Forget about the corrections likely to come.
Here's the chart you should be looking at:
Crude Oil Prices (Base of 100)
What you see here is the secret power of gold. Over a 50 years period, the amount of cash you needed to buy a barrel of oil has shot up and down, while the amount of gold you needed remained almost completely fixed. This chart shows the astonishingly consistent buying power of gold.
You'll find the same story repeated over 2,000 years. In Roman times, an ounce of gold would buy you a fine
suit of clothes. Same today.
The price of gold goes up and down which really means that currencies go up and down. The value of gold stays the same. This has always been recognized by the truly wealthy. It is more important now than ever, because today inflation is the greatest enemy to your financial wellbeing.
When you hold cash, you lose your buying power. When you buy gold, you maintain it. It's that simple. There's no need to get lost in complicated theories, or risky speculations. In the real world, all that matters is what you can and cannot buy.
When you own gold, you have more buying power. Period.
View the original article here
All it takes is knowledge, a little bit of money (not much, but some) and a bit of discipline.
Once you get started, saving this way will become a habit for life. With the most proven asset you will preserve your wealth The one with thousands of years positive record: Gold and Silver.
Gold and Silver will never be obsolete, and will always be immediately liquid.
Saving with gold and silver will make your life financially sounder. Your savings will not evaporate through inflation.
You will naturally start saving more and more. The sooner you start the better your financial future will look.
The Difference Between Investing and Saving Investing and saving are completely different financial strategies. This is a distinction that is well understood by the very wealthy. The financial elites take investment risks to grow their wealth. They save in gold to protect their wealth.
Now, you might be thinking - "I don't have enough wealth to protect, I need to put all my efforts into investing for increase.
"
That could be true in normal times. But these are not normal times. In the current situation, EVERYTHING you have needs protection. It doesn't matter if you are rich, poor, or somewhere in the middle. You MUST make saving precious metals your #1 priority. Here's why..
The global financial system on which we all depend is a house of cards. Today, the house of cards is expanding out of control. And it is bound to collapse in its present form. The whole system is based on debt - consumer debt, company debt and national debt. This pile of debt has become unmanageable, as we see from the Euro crisis and the brinkmanship with default in the United States.
The direct result of a debt-based money system is inflation.
Your paper money is already losing half its buying power every 10 years. As of January 2012, inflation has become the official declared policy of the central banks.
Inflation is a "silent tax" - and you are paying it every day, just by owning cash. There is only ONE sure protection against inflation. And that protection is gold.
What Makes Gold Different
There are three factors that make gold different from anything else in the financial world:
- Gold is the most liquid asset on the planet - meaning, you can always exchange it for cash, goods or services
- Gold, when privately owned in the correct form, is free from government control
- Gold has tangible, inherent value
The Real Value of Gold
Forget about the recent bull market for gold. Forget about the corrections likely to come.
Here's the chart you should be looking at:
Crude Oil Prices (Base of 100)
What you see here is the secret power of gold. Over a 50 years period, the amount of cash you needed to buy a barrel of oil has shot up and down, while the amount of gold you needed remained almost completely fixed. This chart shows the astonishingly consistent buying power of gold.
You'll find the same story repeated over 2,000 years. In Roman times, an ounce of gold would buy you a fine
suit of clothes. Same today.
The price of gold goes up and down which really means that currencies go up and down. The value of gold stays the same. This has always been recognized by the truly wealthy. It is more important now than ever, because today inflation is the greatest enemy to your financial wellbeing.
When you hold cash, you lose your buying power. When you buy gold, you maintain it. It's that simple. There's no need to get lost in complicated theories, or risky speculations. In the real world, all that matters is what you can and cannot buy.
When you own gold, you have more buying power. Period.
View the original article here
Saturday, June 23, 2012
The Significance Of Acquiring A Data Management Software Before Starting Business Operations
The disregard of many establishments towards the safeguarding of data integrity and quality is one of the main causes of these establishments' collapse. Before starting operations, every establishment should consider the significance of providing a system that can offer data security, maintenance and quality. You should think of this as your primary focus if you aim to have a smooth running business operation. Previous solutions require the employment of professionals yet now many establishments can acquire aid from data management software tools.
The internet can show you an extensive selection of tools and you can always make comparisons to identify the tool that can provide your needs. A reliable data management software tool has the capability to control the construction, maintenance and uses of a database. The database is where you will find the assortment of data records, files and other information. A good software tool should be able to provide users with access to various databases at the same time.
The latest tools have features that permit data recovery, data access, data integrity and concurrency control.
They are exceptional when it comes to promoting data efficiency. They can boost the productivity of your employees by allowing employees to transfer information into your LAN quicker compared to manually distributing and encoding data. In addition, instead of searching for the data you need manually, they can search the data you require for you.
They can lessen the cost of business operations. The tasks that usually take you a week to complete can be done in just a day since you can identify, comprehend and assess data faster. They can help you avoid unnecessary expenses by saving you from paying repairs done on errors that resulted from data mismanagement.
They contain backup features that can be used to pile up valuable information. They can assist in the restoration of data that resulted from accidental or unexpected data loss by giving you access to their backup storages. Doing manual attempts to protect data is effective; however, these tools have the capability to speed up the procedure.
By now, you must have some idea on the significance of prioritizing the maintenance of data integrity and quality. You should shun away from committing the same mistake of neglecting the possibility of a problem to occur or even worsen. It is important that you make a decision on the right way to organize, manage and collect data efficiently. It is not difficult to adjust to a new data management system. In fact, you will find it a good investment decision.
There have been many technological innovations that enhanced the quality of several data management software tools. The data you enclose have a big influence on your investment decisions so it is significant that before starting business' operations, you already have an effective data management system.
View the original article here
The internet can show you an extensive selection of tools and you can always make comparisons to identify the tool that can provide your needs. A reliable data management software tool has the capability to control the construction, maintenance and uses of a database. The database is where you will find the assortment of data records, files and other information. A good software tool should be able to provide users with access to various databases at the same time.
The latest tools have features that permit data recovery, data access, data integrity and concurrency control.
They are exceptional when it comes to promoting data efficiency. They can boost the productivity of your employees by allowing employees to transfer information into your LAN quicker compared to manually distributing and encoding data. In addition, instead of searching for the data you need manually, they can search the data you require for you.
They can lessen the cost of business operations. The tasks that usually take you a week to complete can be done in just a day since you can identify, comprehend and assess data faster. They can help you avoid unnecessary expenses by saving you from paying repairs done on errors that resulted from data mismanagement.
They contain backup features that can be used to pile up valuable information. They can assist in the restoration of data that resulted from accidental or unexpected data loss by giving you access to their backup storages. Doing manual attempts to protect data is effective; however, these tools have the capability to speed up the procedure.
By now, you must have some idea on the significance of prioritizing the maintenance of data integrity and quality. You should shun away from committing the same mistake of neglecting the possibility of a problem to occur or even worsen. It is important that you make a decision on the right way to organize, manage and collect data efficiently. It is not difficult to adjust to a new data management system. In fact, you will find it a good investment decision.
There have been many technological innovations that enhanced the quality of several data management software tools. The data you enclose have a big influence on your investment decisions so it is significant that before starting business' operations, you already have an effective data management system.
View the original article here
Monday, June 18, 2012
How To Buy American Silver Eagle
It is clearly written that American silver eagle that it is not old to the public. It is only sold to big dealers that directly sell them out to the public. It is practically good to understand the fact over this dealing that the product is a well certified value. It is sold by America mint resources to reach the point of spreading the product.
This will basically introduce the product manipulation in the course of buying it. It is really important to know that the process is highly dependent on the dealers buying the product in a large scale and this in-turn will bring the actions of the retailers to spread their own wings of making the sale of the product to the public. These means will help the product to go across the world.
After understanding the precept taking from the parts of the dealers, they are are allowed to come with a huge amount to buy this product and use it in the way that benefits them the most. It is practically great to understand the standard way to run these things carefully with no delay.
The American silver eagle buying process has taking the value of the product due to the magnificent way that it is sold to the dealers. It is just to maintain security in its fullness. This way things will move on to the best ability that is required if not the best. It satisfies the quest of the outside members that are willing to get some.
This process is really a good approach in the buying of the needed product for the use of its client. These days dealers buy the product in a large quantity to be able to keep up to the standard of the regulating body that does not allow it to be sold to the public. For this reason, it is really expected of the dealers to abide by the simple laws given to buy the product from the hands of the public.
Getting a real value in this business is really good. The quest of buying the product in the market is only accessible by the help of big dealers that buy in large quantity. This gives rise to the spread of the goods by the retailers so that the common people will be able to get their share of the products. Using this method will satisfy the salience of the product in the real sense of it.
The process taking by the dealers to maintain this properties is really the idea that is needed to fight the level of corruption in its entirety. It is really a great value of importance that people can really have this time as they grow on the value of their business as required by anyone.
The American silver eagle is dedicated on bring the generation of its product close to the hand of reliable dealers so that they maintain the power of real. It is really a great approach to understand how important this product is to every dealer. For this reason, it is important to use the principle of buying it to get the best of it. This is really good in the point to settle fraud and other factors that will be associated with it.
View the original article here
This will basically introduce the product manipulation in the course of buying it. It is really important to know that the process is highly dependent on the dealers buying the product in a large scale and this in-turn will bring the actions of the retailers to spread their own wings of making the sale of the product to the public. These means will help the product to go across the world.
After understanding the precept taking from the parts of the dealers, they are are allowed to come with a huge amount to buy this product and use it in the way that benefits them the most. It is practically great to understand the standard way to run these things carefully with no delay.
The American silver eagle buying process has taking the value of the product due to the magnificent way that it is sold to the dealers. It is just to maintain security in its fullness. This way things will move on to the best ability that is required if not the best. It satisfies the quest of the outside members that are willing to get some.
This process is really a good approach in the buying of the needed product for the use of its client. These days dealers buy the product in a large quantity to be able to keep up to the standard of the regulating body that does not allow it to be sold to the public. For this reason, it is really expected of the dealers to abide by the simple laws given to buy the product from the hands of the public.
Getting a real value in this business is really good. The quest of buying the product in the market is only accessible by the help of big dealers that buy in large quantity. This gives rise to the spread of the goods by the retailers so that the common people will be able to get their share of the products. Using this method will satisfy the salience of the product in the real sense of it.
The process taking by the dealers to maintain this properties is really the idea that is needed to fight the level of corruption in its entirety. It is really a great value of importance that people can really have this time as they grow on the value of their business as required by anyone.
The American silver eagle is dedicated on bring the generation of its product close to the hand of reliable dealers so that they maintain the power of real. It is really a great approach to understand how important this product is to every dealer. For this reason, it is important to use the principle of buying it to get the best of it. This is really good in the point to settle fraud and other factors that will be associated with it.
View the original article here
Friday, June 15, 2012
How To Come Up With High Probability Trading Strategies
Participants in the financial market are interminably learning the trading strategies that can supply the most security to their investments. A number of traders are aiming for high probability trading strategies that entail less effort as well as produce zero risk. The fact is, there is no strategy that involves minimum effort and risk, yet they can help you lessen or even avoid risks to increase assurance to your investment.
No holy grail exists when it comes to trading strategies. The strategies you can utilize will depend on your market choice, trading tactic and personal risk appetite. You require a variety of high probability trading strategies to match every market condition. Despite the fact that a large amount of wealth can be attained in the financial market, you should find a way to manage risk as well as know the wealth you are prepared to lose on every trade relative to your capital.
Every market circumstance entails a strategy that can work best with it
While there is a certain trading strategy that can generate high rewards in the equity market, it can produce the opposite if used on futures or options due to expiration. A certain strategy that can work effectively in the currency market cannot work well in mutual fund investments, primarily because mutual funds can only be traded once a day while currency can be traded 24 hours a day and seven days a week.
Above are just some of the examples why even an extremely good trading strategy cannot generate the same success on diverse trading markets. If you are aiming to invest on options, then it is best to produce a trading strategy that can work well in the options market and by doing this you should already understand that it won't produce the same result when the same strategy is applied on the equities market.
Your trading strategy should work well with your trading style
The trading style of every trader should be unique just like the size of a trader's portfolio. A huge portfolio permits traders to expand as well as be able to apply dollar cost averaging. That trader can get involved on less than 1% and be free from worries about commissions. A tiny portfolio size only permits a trader to partake on a single stock. This trader can settle on utilizing margin trading, and this trader has to constantly drag out a number of the profit's percents of commissions and other bills.
All traders must scrutinize their personal investments in a distinctive way in order for it to work well with their strategies in trading.
Despite the fact that there is no holy grail when it comes to creating high probability trading strategies, there are specially designed software tools that can enhance efficiency of analysis of these strategies. An investor or trader must remember that their strategies in trading should work well with the market condition, personal appetite for risk, personal trading tactic and personal portfolio size.
View the original article here
No holy grail exists when it comes to trading strategies. The strategies you can utilize will depend on your market choice, trading tactic and personal risk appetite. You require a variety of high probability trading strategies to match every market condition. Despite the fact that a large amount of wealth can be attained in the financial market, you should find a way to manage risk as well as know the wealth you are prepared to lose on every trade relative to your capital.
Every market circumstance entails a strategy that can work best with it
While there is a certain trading strategy that can generate high rewards in the equity market, it can produce the opposite if used on futures or options due to expiration. A certain strategy that can work effectively in the currency market cannot work well in mutual fund investments, primarily because mutual funds can only be traded once a day while currency can be traded 24 hours a day and seven days a week.
Above are just some of the examples why even an extremely good trading strategy cannot generate the same success on diverse trading markets. If you are aiming to invest on options, then it is best to produce a trading strategy that can work well in the options market and by doing this you should already understand that it won't produce the same result when the same strategy is applied on the equities market.
Your trading strategy should work well with your trading style
The trading style of every trader should be unique just like the size of a trader's portfolio. A huge portfolio permits traders to expand as well as be able to apply dollar cost averaging. That trader can get involved on less than 1% and be free from worries about commissions. A tiny portfolio size only permits a trader to partake on a single stock. This trader can settle on utilizing margin trading, and this trader has to constantly drag out a number of the profit's percents of commissions and other bills.
All traders must scrutinize their personal investments in a distinctive way in order for it to work well with their strategies in trading.
Despite the fact that there is no holy grail when it comes to creating high probability trading strategies, there are specially designed software tools that can enhance efficiency of analysis of these strategies. An investor or trader must remember that their strategies in trading should work well with the market condition, personal appetite for risk, personal trading tactic and personal portfolio size.
View the original article here
Monday, June 11, 2012
Achieve Success In Gold And Silver Trading By Performing Technical Analysis
Despite the many risks involved in gold and silver trading, people continue to deal with these commodities due the huge profit that can be gained. This form of trade is often compared to a form of gambling due to its tendency to rely on chance. Although this is not entirely false, this shouldn't be perceived as a pure form of gambling. You can achieve success in this trade by developing the right strategies as well as making smart decisions.
You should be completely prepared before deciding on transacting these commodities. The majority of people who benefited from this type of trade did not rely on luck. They have undergone the process of collecting and comprehending essential data such as price movement, market history and present market condition. Gold and silver are frequently traded in large volumes, generally because major investors keenly get involved in the trading procedure which can then lead to an imbalance in the movement.
Coming up with the proper set of trading strategies can assure success in the outcome of dealing with these commodities. The supply and demand have a massive control in this form of trade thus making technical analysis a good tool to use. This tool comprehends the market's supply and demand in order to recognize the trend or direction that will carry on in the future. It aids in the recognition of market emotions by learning the market itself.
Technical analysis can give you a perception on the price's path in the future by evaluating market volume, price and historical data. It utilizes the charts to recognize price patterns in financial markets as well as market trends.
The appropriate strategy can reduce or even help you avoid risks that are frequently present in trade and investment. It is crucial that you have the required knowledge, skills and tools to add security to your investments. Currently, there are a number of online sites that can help you trade these commodities.
They provide tutorials and important information such as the "risks involved in trading gold and silver", "history behind gold and silver trading", "methods employed when trading these commodities" and "ways technical analysis can help produce effective trading strategies".
In addition to tutorials and information regarding gold and silver trading, there are advanced tools that investors and traders make use of to make analysis of market strategies more efficient. These software tools are usually matched with their own historical database that investors and traders can exploit. They supply charts, graphs and other applications that can aid in analysis. In addition, they can supply you with updates on trends and market conditions.
Usually investors and traders go into gold and silver trading to acquire security in today's uncertain times. You can effectively shun away from the risks that are frequently present in the market by enhancing your knowledge on this form of trade as well as by obtaining tools that are designed for analysis.
View the original article here
You should be completely prepared before deciding on transacting these commodities. The majority of people who benefited from this type of trade did not rely on luck. They have undergone the process of collecting and comprehending essential data such as price movement, market history and present market condition. Gold and silver are frequently traded in large volumes, generally because major investors keenly get involved in the trading procedure which can then lead to an imbalance in the movement.
Coming up with the proper set of trading strategies can assure success in the outcome of dealing with these commodities. The supply and demand have a massive control in this form of trade thus making technical analysis a good tool to use. This tool comprehends the market's supply and demand in order to recognize the trend or direction that will carry on in the future. It aids in the recognition of market emotions by learning the market itself.
Technical analysis can give you a perception on the price's path in the future by evaluating market volume, price and historical data. It utilizes the charts to recognize price patterns in financial markets as well as market trends.
The appropriate strategy can reduce or even help you avoid risks that are frequently present in trade and investment. It is crucial that you have the required knowledge, skills and tools to add security to your investments. Currently, there are a number of online sites that can help you trade these commodities.
They provide tutorials and important information such as the "risks involved in trading gold and silver", "history behind gold and silver trading", "methods employed when trading these commodities" and "ways technical analysis can help produce effective trading strategies".
In addition to tutorials and information regarding gold and silver trading, there are advanced tools that investors and traders make use of to make analysis of market strategies more efficient. These software tools are usually matched with their own historical database that investors and traders can exploit. They supply charts, graphs and other applications that can aid in analysis. In addition, they can supply you with updates on trends and market conditions.
Usually investors and traders go into gold and silver trading to acquire security in today's uncertain times. You can effectively shun away from the risks that are frequently present in the market by enhancing your knowledge on this form of trade as well as by obtaining tools that are designed for analysis.
View the original article here
Thursday, June 7, 2012
Top 3 Ways To Spot A Reliable Market Data Provider
The various online sources of market data made it less difficult for us to assess the market even with its continuous alterations. An effective analysis of this data can enable you to produce smart investment and trading decisions. Data distribution is now faster with the development of real-time which also gave investors a chance to react faster to market changes. However, you cannot attain these benefits if you do not receive accurate data which is why you need to be cautious in selecting a market data provider.
The number of market participants that are availing online products and services are rapidly growing. Aside from the increasing complexity of catching up to market alterations, these services and products offer efficiency and convenience.
So how will you recognize a market data provider that is reliable and authentic? A lot of the answers can also be obtained online. Investors and traders must understand the risks involved in every market and their aim should be to minimize or evade these risks. You can't attain the wealth you are aiming for unless you can come up with a high probability trading strategy for a specific market condition. It is crucial that you spend some time searching and understanding each provider in order to be assured that the data you are receiving is accurate. The process of searching does not need to be difficult and below are some of the sources where you can gain some assurance.
Forums and Testimonials
There is a variety of online sources where you can acquire information such as joining forums and reading testimonials. Forums are where you can get recommendations from current and past clients of a certain provider. Testimonials can tell you about customers' experiences and comments about a data provider. However, some testimonials and conversations in forums may not be authentic so you shouldn't limit yourself on only a few searches.
Ask For Advice
You can ask reputable financial analysts and market analysts for tips and advices. You can contact most of them at the provider's main site and they can supply answers to your concerns and tell you more about their services.
Do Comparison
The internet can supply you a list of various providers. Most likely, they will offer free trial versions of their services and products. This is an opportunity to experience how reliable their services are. You can compare the data they provide and try to learn how extensive the range each of their data is.
A good market data provider has the capability to allow you to catch up to market alterations. Its accuracy enables you to perform effective analysis of the market. The benefits you receive from acquiring the right provider is worth more than the time you spent searching for it.
View the original article here
The number of market participants that are availing online products and services are rapidly growing. Aside from the increasing complexity of catching up to market alterations, these services and products offer efficiency and convenience.
So how will you recognize a market data provider that is reliable and authentic? A lot of the answers can also be obtained online. Investors and traders must understand the risks involved in every market and their aim should be to minimize or evade these risks. You can't attain the wealth you are aiming for unless you can come up with a high probability trading strategy for a specific market condition. It is crucial that you spend some time searching and understanding each provider in order to be assured that the data you are receiving is accurate. The process of searching does not need to be difficult and below are some of the sources where you can gain some assurance.
Forums and Testimonials
There is a variety of online sources where you can acquire information such as joining forums and reading testimonials. Forums are where you can get recommendations from current and past clients of a certain provider. Testimonials can tell you about customers' experiences and comments about a data provider. However, some testimonials and conversations in forums may not be authentic so you shouldn't limit yourself on only a few searches.
Ask For Advice
You can ask reputable financial analysts and market analysts for tips and advices. You can contact most of them at the provider's main site and they can supply answers to your concerns and tell you more about their services.
Do Comparison
The internet can supply you a list of various providers. Most likely, they will offer free trial versions of their services and products. This is an opportunity to experience how reliable their services are. You can compare the data they provide and try to learn how extensive the range each of their data is.
A good market data provider has the capability to allow you to catch up to market alterations. Its accuracy enables you to perform effective analysis of the market. The benefits you receive from acquiring the right provider is worth more than the time you spent searching for it.
View the original article here
Monday, June 4, 2012
How To Perform Well In Financial Data Analysis
The desire to produce quick and effective trading decisions directed investors to seek solutions that can improve their efficiency in financial data analysis. Our tactics in the trading market are widely affected by the information or data we enclose. Data should be manageable and presentable in order to enhance the efficiency of our analyses.
Innovative software tools became very attractive to many institutions as well as private investors or traders for their analytical applications. The right tool can lead to the growth of a shareholder's income as well as an increase on a company's overall profit.
The information you produce from performing financial data analysis is crucial to your success yet you need to fully understand it to experience the rewards.
• Profits are evaluated in the "Income Statement". The balance sheet is where you can view the list of assets as well as the financing of these assets with debt and equity.
• You can determine how fast a company's asset can transform into cash in the "liquidity ratios". Usually, institutions use this data when they buy additional assets and pay back creditors.
• You can determine how prepared an establishment is in generating money in the future as well as realizing long-term obligations in the "solvency ratios". In addition, it can help you recognize and avoid establishments that have inadequate funds.
• You can view the chances a company can create profit in the "profitability ratios". An establishment's actual profit cannot be seen in the large revenues it is generating since there are expenses that still need to be deducted to perceive the actual profit.
• You can perceive the possible future income of an establishment in the "valuation ratios". This is where you can view the difference between the prices of the stocks of an establishment with the returns it will generate on a per-share basis.
How do you make this task less complicated and more efficient? The undertaking of sorting out the data required can take some time and you can always acquire tools that can solve this problem for you. Below are some of these tools' benefits:
• They allow users to better comprehend data by utilizing graphs, charts and images
• They don't permit obscurity on the main topic when being presented
• They provide descriptions or definitions on charts and graphs
• They can supply related or precise data
The desire to be able to make faster actions on market variations directed traders, investors as well as many establishments to acquire assistance from specially designed software tools. These tools increase the efficiency of your performance in financial data analysis by transforming data into useful and easy to understand information. There are a number of tools you can select online yet you need to be cautious in choosing which among them you will rely on.
View the original article here
Innovative software tools became very attractive to many institutions as well as private investors or traders for their analytical applications. The right tool can lead to the growth of a shareholder's income as well as an increase on a company's overall profit.
The information you produce from performing financial data analysis is crucial to your success yet you need to fully understand it to experience the rewards.
• Profits are evaluated in the "Income Statement". The balance sheet is where you can view the list of assets as well as the financing of these assets with debt and equity.
• You can determine how fast a company's asset can transform into cash in the "liquidity ratios". Usually, institutions use this data when they buy additional assets and pay back creditors.
• You can determine how prepared an establishment is in generating money in the future as well as realizing long-term obligations in the "solvency ratios". In addition, it can help you recognize and avoid establishments that have inadequate funds.
• You can view the chances a company can create profit in the "profitability ratios". An establishment's actual profit cannot be seen in the large revenues it is generating since there are expenses that still need to be deducted to perceive the actual profit.
• You can perceive the possible future income of an establishment in the "valuation ratios". This is where you can view the difference between the prices of the stocks of an establishment with the returns it will generate on a per-share basis.
How do you make this task less complicated and more efficient? The undertaking of sorting out the data required can take some time and you can always acquire tools that can solve this problem for you. Below are some of these tools' benefits:
• They allow users to better comprehend data by utilizing graphs, charts and images
• They don't permit obscurity on the main topic when being presented
• They provide descriptions or definitions on charts and graphs
• They can supply related or precise data
The desire to be able to make faster actions on market variations directed traders, investors as well as many establishments to acquire assistance from specially designed software tools. These tools increase the efficiency of your performance in financial data analysis by transforming data into useful and easy to understand information. There are a number of tools you can select online yet you need to be cautious in choosing which among them you will rely on.
View the original article here
Thursday, May 31, 2012
A New Option for the Retirement Crowd
As a growing number of Americans worry about outliving their retirement savings, the government is encouraging employers to offer an old-school, pension-style option for 401(k) holders.
The proposed revamp of retirement fund rules would make it easier for workers to convert part of their 401(k) savings into an annuity that would pay guaranteed income checks for life -- no matter the ups and downs in the markets.
And in keeping with the new assumptions about retirement, there is an unconventional component; a "longevity option" would let 401(k) savers take a lump sum portion at retirement age and defer it for 20 years, so retirees would start getting steady checks in the mail at age 85 and beyond.
Investment advisers say that's a big improvement on the "all-or-nothing" choice of many current plans, which allow retirees to take their entire 401(k) as a lump sum in cash or convert the whole thing into an annuity, instead of a combination of options.
"The new regulations give people more flexibility," says Warren Ward, a financial planner in Columbus, Ind. "You could put a third into an annuity and invest the remaining lump sum or keep some cash handy for medical needs and emergencies. It can give people piece of mind, which is important. After you work for your whole life, you don't want to worry about money when you get to retirement."
The U.S. Treasury proposal to encourage partial annuity options for 401(k) investors comes as Americans contemplate longer life spans while being spooked by the drop in value of retirement portfolios in the wake of the 2008 financial market meltdown.
A recent survey from global financial services association Limra found that 40 percent of Americans don't feel well informed about generating retirement income, investing their nest eggs, or managing their risks and expenses.
The survey, cited in a recent edition of Financial Advisor Magazine, also found that less than 50 percent of Americans plan for more than 20 years of retirement.
Only a handful have factored in how they might cover the cost of health care, long-term care, rising taxes and inflation, and what they might do in the event they outlive their savings.
View the original article here
The proposed revamp of retirement fund rules would make it easier for workers to convert part of their 401(k) savings into an annuity that would pay guaranteed income checks for life -- no matter the ups and downs in the markets.
And in keeping with the new assumptions about retirement, there is an unconventional component; a "longevity option" would let 401(k) savers take a lump sum portion at retirement age and defer it for 20 years, so retirees would start getting steady checks in the mail at age 85 and beyond.
Investment advisers say that's a big improvement on the "all-or-nothing" choice of many current plans, which allow retirees to take their entire 401(k) as a lump sum in cash or convert the whole thing into an annuity, instead of a combination of options.
"The new regulations give people more flexibility," says Warren Ward, a financial planner in Columbus, Ind. "You could put a third into an annuity and invest the remaining lump sum or keep some cash handy for medical needs and emergencies. It can give people piece of mind, which is important. After you work for your whole life, you don't want to worry about money when you get to retirement."
The U.S. Treasury proposal to encourage partial annuity options for 401(k) investors comes as Americans contemplate longer life spans while being spooked by the drop in value of retirement portfolios in the wake of the 2008 financial market meltdown.
A recent survey from global financial services association Limra found that 40 percent of Americans don't feel well informed about generating retirement income, investing their nest eggs, or managing their risks and expenses.
The survey, cited in a recent edition of Financial Advisor Magazine, also found that less than 50 percent of Americans plan for more than 20 years of retirement.
Only a handful have factored in how they might cover the cost of health care, long-term care, rising taxes and inflation, and what they might do in the event they outlive their savings.
View the original article here
Saturday, May 26, 2012
8 Questions to Ask Yourself Before Retiring
Pulling the trigger on retirement can be a costly mistake if your finances aren't in good shape.
"It's a very uncertain time for people," says Doug Kinsey, a certified financial planner with Artifex Financial Group. Luckily, there are steps you can take to make yourself feel more secure as you approach retirement age. How can you tell if you're ready to retire the way you imagined? Here's a checklist of questions every pre-retiree should examine. Pulling the trigger on retirement can be a costly mistake if your finances aren't in good shape.
What kind of lifestyle do I want in retirement?
Several studies have tried to pinpoint how much money people should specifically have on hand before they retire. The truth is, though, that this amount is going to vary dramatically depending on what type of lifestyle you're looking to lead once you've left the workforce.
"Your entire financial plan is going to stem from that vision," says Suzanna de Baca, vice president of wealth strategies at Ameriprise Financial(AMP). She suggests considering where you see yourself living, whether you plan to get another job during retirement and how you plan on spending your time.
"Free time is very expensive," agrees Diana Palmer, a certified public accountant with Family Financial Planning. "If you like to travel, your budget needs to be set much higher."
Will my debts be paid off?
Unpaid debts will contribute to your monthly expenses and play a huge part in how much money you will need to have on hand before you go ahead and leave the workforce. This is not to say your house needs to be paid off in full before you retire.
"If you have a low interest rate [on your mortgage], you'll have to ask, 'Do I want to pay this off in full?'" Kinsey says. On the other hand, if the mortgage is more substantial, you may want to consider taking money out of your investment portfolio so you don't have to worry about it moving forward. The point is, whichever option you chose will have a significant impact on your cash flow.
If you have other debts on the books, such as high credit card balances, you may want to look into what other factors may be behind the balances so you can get them paid off as much as possible before you abandon a steady paycheck.
View the original article here
"It's a very uncertain time for people," says Doug Kinsey, a certified financial planner with Artifex Financial Group. Luckily, there are steps you can take to make yourself feel more secure as you approach retirement age. How can you tell if you're ready to retire the way you imagined? Here's a checklist of questions every pre-retiree should examine. Pulling the trigger on retirement can be a costly mistake if your finances aren't in good shape.
What kind of lifestyle do I want in retirement?
Several studies have tried to pinpoint how much money people should specifically have on hand before they retire. The truth is, though, that this amount is going to vary dramatically depending on what type of lifestyle you're looking to lead once you've left the workforce.
"Your entire financial plan is going to stem from that vision," says Suzanna de Baca, vice president of wealth strategies at Ameriprise Financial(AMP). She suggests considering where you see yourself living, whether you plan to get another job during retirement and how you plan on spending your time.
"Free time is very expensive," agrees Diana Palmer, a certified public accountant with Family Financial Planning. "If you like to travel, your budget needs to be set much higher."
Will my debts be paid off?
Unpaid debts will contribute to your monthly expenses and play a huge part in how much money you will need to have on hand before you go ahead and leave the workforce. This is not to say your house needs to be paid off in full before you retire.
"If you have a low interest rate [on your mortgage], you'll have to ask, 'Do I want to pay this off in full?'" Kinsey says. On the other hand, if the mortgage is more substantial, you may want to consider taking money out of your investment portfolio so you don't have to worry about it moving forward. The point is, whichever option you chose will have a significant impact on your cash flow.
If you have other debts on the books, such as high credit card balances, you may want to look into what other factors may be behind the balances so you can get them paid off as much as possible before you abandon a steady paycheck.
View the original article here
Wednesday, May 23, 2012
How to Invest on Rising Bond Yields
Good news for some is bad for others. And when worries rise, cash is king.
That's the takeaway from the Federal Reserve's mildly upbeat comments Tuesday about the health of the U.S. economy. While growth is good, it could be costly to investors with money tied up in low-yielding bonds, including those near or in retirement. Good news for the U.S. economy may make long-term bonds harder to dump.
By early Thursday, some bond yields had started to inch up. The yield on the 10-year U.S. Treasury note, while still a low 2.27%, was hitting highs investors hadn't seen since November.
Of course, fixed-income investors have been desperate for higher yields. But rising yields are a double-edged sword due to the inverse relationship between yields and bond prices. As yields on new bonds go up, prices of older, stingier bonds fall.
Many factors determine just how much they fall, but the principle is simple. Imagine you paid $1,000 for a bond yielding 2%, or $20 a year. If a new $1,000 bond paid 4%, no one would give you $1,000 for your old one. In a worst case, you might get only $500 for it. At that price, the yearly earnings of $20 would equal a 4% yield, the same as an investor could get on a new bond.
In real life the damage isn't usually that great, but a 1 percentage point rise in prevailing yields can easily drive a bond's price down by 10%, wiping out years of interest earnings. The longer the bond has to mature, the greater the damage, since its owner would be saddled with a below-market yield for longer.
View the original article here
That's the takeaway from the Federal Reserve's mildly upbeat comments Tuesday about the health of the U.S. economy. While growth is good, it could be costly to investors with money tied up in low-yielding bonds, including those near or in retirement. Good news for the U.S. economy may make long-term bonds harder to dump.
By early Thursday, some bond yields had started to inch up. The yield on the 10-year U.S. Treasury note, while still a low 2.27%, was hitting highs investors hadn't seen since November.
Of course, fixed-income investors have been desperate for higher yields. But rising yields are a double-edged sword due to the inverse relationship between yields and bond prices. As yields on new bonds go up, prices of older, stingier bonds fall.
Many factors determine just how much they fall, but the principle is simple. Imagine you paid $1,000 for a bond yielding 2%, or $20 a year. If a new $1,000 bond paid 4%, no one would give you $1,000 for your old one. In a worst case, you might get only $500 for it. At that price, the yearly earnings of $20 would equal a 4% yield, the same as an investor could get on a new bond.
In real life the damage isn't usually that great, but a 1 percentage point rise in prevailing yields can easily drive a bond's price down by 10%, wiping out years of interest earnings. The longer the bond has to mature, the greater the damage, since its owner would be saddled with a below-market yield for longer.
View the original article here
Saturday, May 19, 2012
A Frugal Retirement: How to Live on Less
How much of your retirement savings can you withdraw each year -- 7% or 1.8%? Or something in between?
The answer, of course, will make a huge difference in your lifestyle. Fortunately, if you need a smaller withdrawal to keep your nest egg going, it may not have to be permanent, and people in or near retirement can consider some attractive short-term lifestyle changes to keep life interesting on a reduced budget. You could find yourself living large or living on little. Here's how to be flexible and frugal with your funds.
The key: Keep flexible by avoiding big long-term commitments such as a second home, a large mortgage, oversized car payment or owing a pricey, unsalable condo with big association fees.
Since the early 1990s, many financial advisers have recommended starting retirement with a 4% annual withdrawal rate, or $40,000 for a $1 million nest egg. If you start there, you can increase the annual withdrawals by enough to offset inflation and keep going for 30 years.
That was the theory, anyway. But recent research says that as conditions change the withdrawal figure could be as high as 7% and as low as 1.8%. That impressive $1 million nest egg could therefore generate a tidy $70,000 a year, or a stingy $18,000 -- before taxes.
The first thing to note is that unless you can live on a very, very low withdrawal rate, your fund would have to include some stocks and long-term bonds as well as cash. After all, a five-year certificate of deposit yields only 1.157%, according to the BankingMyWay.com survey. But stocks obviously have risks, and you could face lengthy downturns.
The second point: You might well have to trim your withdrawals if the markets dip. Taking a full withdrawal when your stocks are down could inflict permanent damage on your nest egg, especially if the markets stayed down for several years.
View the original article here
The answer, of course, will make a huge difference in your lifestyle. Fortunately, if you need a smaller withdrawal to keep your nest egg going, it may not have to be permanent, and people in or near retirement can consider some attractive short-term lifestyle changes to keep life interesting on a reduced budget. You could find yourself living large or living on little. Here's how to be flexible and frugal with your funds.
The key: Keep flexible by avoiding big long-term commitments such as a second home, a large mortgage, oversized car payment or owing a pricey, unsalable condo with big association fees.
Since the early 1990s, many financial advisers have recommended starting retirement with a 4% annual withdrawal rate, or $40,000 for a $1 million nest egg. If you start there, you can increase the annual withdrawals by enough to offset inflation and keep going for 30 years.
That was the theory, anyway. But recent research says that as conditions change the withdrawal figure could be as high as 7% and as low as 1.8%. That impressive $1 million nest egg could therefore generate a tidy $70,000 a year, or a stingy $18,000 -- before taxes.
The first thing to note is that unless you can live on a very, very low withdrawal rate, your fund would have to include some stocks and long-term bonds as well as cash. After all, a five-year certificate of deposit yields only 1.157%, according to the BankingMyWay.com survey. But stocks obviously have risks, and you could face lengthy downturns.
The second point: You might well have to trim your withdrawals if the markets dip. Taking a full withdrawal when your stocks are down could inflict permanent damage on your nest egg, especially if the markets stayed down for several years.
View the original article here
Tuesday, May 15, 2012
Investment Fees Are Something, but Not the Only Thing
The big talk in the 401(k) world is fee transparency and lower fees. It seems as if everyone has concluded that, "If we can get fees down, the rate of return will improve."
But the cheapest index funds cost 0.1% to 0.4%, and the most expensive active open-end funds cost between 1.2% and 2%. Assuming both have the same annual total return, the most you can increase your return is 1.9%. Lower fees may mean a better rate of return, but they're only a piece of a much bigger picture.
No doubt 1.9% compounded over 20 years or more is a significant increase, but that is an extreme example; the normal difference is maybe 0.5 to 1%. The lower the additional yield, the lower the long-term impact.
The real issue is that fees are only a piece of a much bigger picture.
Investing is not simple. Index funds and active funds are not always the best answer. The best answer is that sometimes, for some assets, indexes are best, and sometimes, for some assets, active funds are the best. The 401(k) industry and the Department of Labor have been looking for the holy grail of simple investing so the average person can make a good rate return to be able to retire on their 401(k) balance, but the problem is there is no simple investing concept -- and even if an approach works for a time, it will not always work.
Pre-retirees should know 401(k) investing is built on Modern Portfolio Theory, and the most important point here is that MPT is nothing but a theory.
View the original article here
But the cheapest index funds cost 0.1% to 0.4%, and the most expensive active open-end funds cost between 1.2% and 2%. Assuming both have the same annual total return, the most you can increase your return is 1.9%. Lower fees may mean a better rate of return, but they're only a piece of a much bigger picture.
No doubt 1.9% compounded over 20 years or more is a significant increase, but that is an extreme example; the normal difference is maybe 0.5 to 1%. The lower the additional yield, the lower the long-term impact.
The real issue is that fees are only a piece of a much bigger picture.
Investing is not simple. Index funds and active funds are not always the best answer. The best answer is that sometimes, for some assets, indexes are best, and sometimes, for some assets, active funds are the best. The 401(k) industry and the Department of Labor have been looking for the holy grail of simple investing so the average person can make a good rate return to be able to retire on their 401(k) balance, but the problem is there is no simple investing concept -- and even if an approach works for a time, it will not always work.
Pre-retirees should know 401(k) investing is built on Modern Portfolio Theory, and the most important point here is that MPT is nothing but a theory.
View the original article here
Friday, May 11, 2012
Getting Fat Yields From Municipal Funds
Searching for income, investors have been pouring cash into high-yield municipal funds, which hold bonds that are rated below-investment grade. According to Morningstar, the tax-free funds yield 4.0%. That is the equivalent of a taxable bond with a yield of more than 6% for someone in the top tax bracket. In comparison, intermediate municipal funds -- which emphasize investment-grade bonds -- deliver tax-free yields of only 1.6%.
While low-quality municipals can be enticing, they come with considerable risk. During the market turmoil of 2008, high-yield municipal funds lost 25.3%, trailing intermediate funds by 23 percentage points. Because of the big losses, the high-yield funds rank as the worst-performing municipal category for the past five years.
To get decent income without taking on much risk, many investors should consider those investment-grade funds that deliver above-average yields. The funds fatten their yields by holding big stakes in bonds rated A and BBB, the two lowest rankings in the investment-grade universe.
This strategy is different from the approach of typical investment-grade portfolios, which steer away from BBB bonds and focus on issues that are rated AAA and AA, the top two categories. While they yield 2 percentage points more than top-rated AAA issues, the BBB bonds have tiny default rates. Defaults should remain limited because many municipalities have reduced budget deficits in recent years by cutting payrolls and raising taxes.
Intermediate funds with above-average yields and strong long-term performance records include BlackRock Intermediate Municipal (MEMTX), Commerce National Tax-Free Intermediate Bond (CFNLX), USAA Tax Exempt Intermediate-Term (USATX), and Vanguard High-Yield Tax-Exempt (VWAHX).
A steady choice is USAA Tax Exempt Intermediate-Term, which yields 2.5%. During the past 10 years, USAA returned 5.0% annually, outdoing 85% of intermediate competitors. While the average intermediate fund has 63% of assets in bonds rated AA or AAA, USAA only has 32% in the top two grades. The average fund has 8% of assets in BBB bonds, compared to 27% for USAA.
"We manage our fund with an income focus, and a lot of times we have the highest yield available in the intermediate-term category," says portfolio manager Regina Shafer.
View the original article here
While low-quality municipals can be enticing, they come with considerable risk. During the market turmoil of 2008, high-yield municipal funds lost 25.3%, trailing intermediate funds by 23 percentage points. Because of the big losses, the high-yield funds rank as the worst-performing municipal category for the past five years.
To get decent income without taking on much risk, many investors should consider those investment-grade funds that deliver above-average yields. The funds fatten their yields by holding big stakes in bonds rated A and BBB, the two lowest rankings in the investment-grade universe.
This strategy is different from the approach of typical investment-grade portfolios, which steer away from BBB bonds and focus on issues that are rated AAA and AA, the top two categories. While they yield 2 percentage points more than top-rated AAA issues, the BBB bonds have tiny default rates. Defaults should remain limited because many municipalities have reduced budget deficits in recent years by cutting payrolls and raising taxes.
Intermediate funds with above-average yields and strong long-term performance records include BlackRock Intermediate Municipal (MEMTX), Commerce National Tax-Free Intermediate Bond (CFNLX), USAA Tax Exempt Intermediate-Term (USATX), and Vanguard High-Yield Tax-Exempt (VWAHX).
A steady choice is USAA Tax Exempt Intermediate-Term, which yields 2.5%. During the past 10 years, USAA returned 5.0% annually, outdoing 85% of intermediate competitors. While the average intermediate fund has 63% of assets in bonds rated AA or AAA, USAA only has 32% in the top two grades. The average fund has 8% of assets in BBB bonds, compared to 27% for USAA.
"We manage our fund with an income focus, and a lot of times we have the highest yield available in the intermediate-term category," says portfolio manager Regina Shafer.
View the original article here
Monday, May 7, 2012
Protect Nest Eggs With Stable Value Funds
With the Federal Reserve holding down interest rates, plenty of cautious savers feel forced to accept puny yields. Money-market funds pay next to nothing, and most five-year certificates of deposit yield less than 1%. But investors in 401(k) plans have a richer alternative: stable value funds, which yield 2.9%.
In recent years, stable value funds have served as workhorse investments, accounting for 12% to 15% of assets in 401(k) and other defined contribution retirement plans. The funds have $540 billion in assets, according to the Stable Value Investment Association.
The value of the stable funds became clear as the financial crisis savaged 401(k) plans. During 2008, stocks plummeted, and many bond funds dropped sharply. But throughout the turmoil, millions of savers were protected by holding stable value funds. Nearly all the funds stayed afloat, returning more than 4% for the year.
8 Stocks Rising Fast on Rich People's Spending
Some investors think of stable value funds as bank accounts. The funds protect principal and pay interest. But the stable value accounts are not guaranteed by the Federal Deposit Insurance Corp. Instead the returns of the funds are protected by insurance contracts known as wraps that are offered by banks and insurance companies.
In some key respects stable value funds resemble intermediate-term bond mutual funds. Both kinds of funds invest in portfolios of bonds. When interest rates rise, the value of the bonds tends to fall. If that happens, a shareholder in a typical bond mutual fund could lose principal. In contrast, a saver who makes a withdrawal from a stable value fund would not suffer because the insurance contract protects against principal losses.
In the event of bankruptcy or other problems, stable value funds can lose the insurance protection. But when the insurance lapses, savers do not necessarily suffer big losses. After Lehman Brothers went bankrupt in 2008, insurance coverage terminated for the company's 401(k) plan. Lehman employees with assets in the stable value fund lost about 1% of their principal. That was an annoying outcome -- but not as devastating as the losses that many investors suffered in the stock market.
View the original article here
In recent years, stable value funds have served as workhorse investments, accounting for 12% to 15% of assets in 401(k) and other defined contribution retirement plans. The funds have $540 billion in assets, according to the Stable Value Investment Association.
The value of the stable funds became clear as the financial crisis savaged 401(k) plans. During 2008, stocks plummeted, and many bond funds dropped sharply. But throughout the turmoil, millions of savers were protected by holding stable value funds. Nearly all the funds stayed afloat, returning more than 4% for the year.
8 Stocks Rising Fast on Rich People's Spending
Some investors think of stable value funds as bank accounts. The funds protect principal and pay interest. But the stable value accounts are not guaranteed by the Federal Deposit Insurance Corp. Instead the returns of the funds are protected by insurance contracts known as wraps that are offered by banks and insurance companies.
In some key respects stable value funds resemble intermediate-term bond mutual funds. Both kinds of funds invest in portfolios of bonds. When interest rates rise, the value of the bonds tends to fall. If that happens, a shareholder in a typical bond mutual fund could lose principal. In contrast, a saver who makes a withdrawal from a stable value fund would not suffer because the insurance contract protects against principal losses.
In the event of bankruptcy or other problems, stable value funds can lose the insurance protection. But when the insurance lapses, savers do not necessarily suffer big losses. After Lehman Brothers went bankrupt in 2008, insurance coverage terminated for the company's 401(k) plan. Lehman employees with assets in the stable value fund lost about 1% of their principal. That was an annoying outcome -- but not as devastating as the losses that many investors suffered in the stock market.
View the original article here
Thursday, May 3, 2012
Get Fat Yields With Foreign Dividend Funds
Hungry for reliable income, investors have been embracing dividend-paying blue-chips. Plenty of solid utilities and consumer companies yield 3%. That seems like a rich payout at a time when 10-year Treasuries yield 2.0%.
But to get an even higher yield, consider funds that focus on foreign dividend stocks. Many foreign blue-chips yield more than 4%. Forward International Dividend(FFINX), a mutual fund, yields 5.9%.
Besides paying higher yields, foreign dividend payers tend to be cheaper than their U.S. counterparts. While the S&P 500 has a forward price-to-earnings ratio of 13, the stocks in the Forward fund have a P/E of 8.6.
Foreign small-cap funds can be attractive. WisdomTree International SmallCap Dividend(DLS), an exchange-traded fund, yields 3.8% and has P/E of 11. In comparison, the Russell 2000 small-cap index yields 1.4% and has a P/E of 17.
Foreign stocks have traditionally paid higher yields than their U.S. counterparts. Investors in many countries have preferred fat dividends, and companies have paid out relatively large amounts of their earnings.
But these days, the foreign yields are especially rich because the stocks are out of favor. At a time when debt problems plague Europe and Japan, many foreign economies are struggling, and the markets are depressed. As share prices fall, dividend yields rise.
To find the best dividend payers, Forward International portfolio manager David Ruff considers stocks of all sizes that yield more than 2%. The companies must have strong earnings and the ability to increase dividends at double-digit annual rates.
Ruff pays close attention to the dividend payout rate, which is the percentage of earnings that goes to cover the dividend. He typically prefers stocks with payout rates of 30% to 60%.
When the payout rate is lower, Ruff worries that management is not committed to paying dividends consistently and could spend extra cash on reckless acquisitions. Companies with high payout ratios could be on shaky ground.
"If the payout rate is 95%, then there is not much room to increase the dividend in the future," he says.
A big holding in the fund is Unilever(UN), the Dutch maker of Lipton tea and Hellmann's mayonnaise. The stock yields 3%. Another holding is Sanofi(SNY), a French drugmaker that yields 4.7%.
View the original article here
But to get an even higher yield, consider funds that focus on foreign dividend stocks. Many foreign blue-chips yield more than 4%. Forward International Dividend(FFINX), a mutual fund, yields 5.9%.
Besides paying higher yields, foreign dividend payers tend to be cheaper than their U.S. counterparts. While the S&P 500 has a forward price-to-earnings ratio of 13, the stocks in the Forward fund have a P/E of 8.6.
Foreign small-cap funds can be attractive. WisdomTree International SmallCap Dividend(DLS), an exchange-traded fund, yields 3.8% and has P/E of 11. In comparison, the Russell 2000 small-cap index yields 1.4% and has a P/E of 17.
Foreign stocks have traditionally paid higher yields than their U.S. counterparts. Investors in many countries have preferred fat dividends, and companies have paid out relatively large amounts of their earnings.
But these days, the foreign yields are especially rich because the stocks are out of favor. At a time when debt problems plague Europe and Japan, many foreign economies are struggling, and the markets are depressed. As share prices fall, dividend yields rise.
To find the best dividend payers, Forward International portfolio manager David Ruff considers stocks of all sizes that yield more than 2%. The companies must have strong earnings and the ability to increase dividends at double-digit annual rates.
Ruff pays close attention to the dividend payout rate, which is the percentage of earnings that goes to cover the dividend. He typically prefers stocks with payout rates of 30% to 60%.
When the payout rate is lower, Ruff worries that management is not committed to paying dividends consistently and could spend extra cash on reckless acquisitions. Companies with high payout ratios could be on shaky ground.
"If the payout rate is 95%, then there is not much room to increase the dividend in the future," he says.
A big holding in the fund is Unilever(UN), the Dutch maker of Lipton tea and Hellmann's mayonnaise. The stock yields 3%. Another holding is Sanofi(SNY), a French drugmaker that yields 4.7%.
View the original article here
Sunday, April 29, 2012
5 ways to blow your retirement
It's far from impossible to save enough for a comfortable retirement. But these blunders could come between you and your financial security.
A comfortable retirement is definitely achievable. Yet, many people face tremendous retirement challenges because they spend years neglecting simple measures that would make having enough money in their golden years a certainty.
Here are some common ways people blow their chances of having a comfortable retirement:
Not saving enough for a rainy day. Everyone needs to have an emergency fund. But while that's a good start, you need much more than just 12 months of expenses stashed somewhere safe. People get laid off, have their salaries decreased, or their businesses shut down because of changing business climates all the time. (Are you saving enough for retirement? Use MSN Money's calculator to find out.)
Assuming your current salary will continue. It might be overly optimistic to believe that if you save 5% of your paychecks every year for the next 30 years you'll have enough to retire comfortably. You might not be making the same level of income or get regular raises for three decades in a row. That's why you can't really be saving too much unless you've already hit your ultimate retirement goal.
Failing to factor in inflation. You might think you're playing it safe by putting your nest egg in a bank account that is FDIC-insured. But earning next to nothing in interest each year can be dangerous, because inflation will erode the purchasing power of your money. It's important to select some investments that are likely to keep up with inflation in retirement and maintain diversification in your portfolio.
Not looking far enough into the future. Some people get interested in stock investing while they are young, spending hours every day trying to pick a winning investment. But when you are young, your nest egg is small, so you should spend your time trying to maximize your earnings potential instead.
As your assets grow, it is prudent to start spending more time on your investments simply because there is more to lose. There is no shame in finding an investment adviser to help you manage your money, but you should still be very much involved. You are responsible for growing and protecting your own nest egg. (Use MSN Money's 401k calculator to see if yours is likely to provide enough.)
Allowing lifestyle inflation. It's easy to inflate your lifestyle as you earn more. Just one more night out, more frequent updates to your possessions and a few upgrades will exponentially increase your expenses.
Though there are a few ways to buy a bit of happiness, too many people make the mistake of thinking that spending more money will create lasting joy. In reality, it's having the ability to spend whenever you want that will truly make you happy. Learn to control your spending, and a comfortable retirement is really just a byproduct.
View the original article here
A comfortable retirement is definitely achievable. Yet, many people face tremendous retirement challenges because they spend years neglecting simple measures that would make having enough money in their golden years a certainty.
Here are some common ways people blow their chances of having a comfortable retirement:
Not saving enough for a rainy day. Everyone needs to have an emergency fund. But while that's a good start, you need much more than just 12 months of expenses stashed somewhere safe. People get laid off, have their salaries decreased, or their businesses shut down because of changing business climates all the time. (Are you saving enough for retirement? Use MSN Money's calculator to find out.)
Assuming your current salary will continue. It might be overly optimistic to believe that if you save 5% of your paychecks every year for the next 30 years you'll have enough to retire comfortably. You might not be making the same level of income or get regular raises for three decades in a row. That's why you can't really be saving too much unless you've already hit your ultimate retirement goal.
Failing to factor in inflation. You might think you're playing it safe by putting your nest egg in a bank account that is FDIC-insured. But earning next to nothing in interest each year can be dangerous, because inflation will erode the purchasing power of your money. It's important to select some investments that are likely to keep up with inflation in retirement and maintain diversification in your portfolio.
Not looking far enough into the future. Some people get interested in stock investing while they are young, spending hours every day trying to pick a winning investment. But when you are young, your nest egg is small, so you should spend your time trying to maximize your earnings potential instead.
As your assets grow, it is prudent to start spending more time on your investments simply because there is more to lose. There is no shame in finding an investment adviser to help you manage your money, but you should still be very much involved. You are responsible for growing and protecting your own nest egg. (Use MSN Money's 401k calculator to see if yours is likely to provide enough.)
Allowing lifestyle inflation. It's easy to inflate your lifestyle as you earn more. Just one more night out, more frequent updates to your possessions and a few upgrades will exponentially increase your expenses.
Though there are a few ways to buy a bit of happiness, too many people make the mistake of thinking that spending more money will create lasting joy. In reality, it's having the ability to spend whenever you want that will truly make you happy. Learn to control your spending, and a comfortable retirement is really just a byproduct.
View the original article here
Thursday, April 26, 2012
The big business of 401k plans
Investors could be in for some unpleasant discoveries when a pending regulatory change brings more transparency to fund fees.
America's conversion to the 401k plan has certainly created a new world for future retirees, who have been discovering just how tricky it is to prepare for retirement in their spare time. But one party hasn't been complaining: the financial-services industry.
Though most Americans know them primarily as brokers or banks, the Fidelitys, Merrill Lynches and INGs of the world also dominate the 401k packaging business. That allows those companies to introduce millions of workers -- and $4.3 trillion of their savings -- to the packagers' own hand-picked rosters of mutual funds. In total, financial firms take home somewhere around 1% of those assets a year, and few workers understand how that money flows. (One confusing concept: "revenue sharing." More on that in a bit.) But in coming months, the shroud of mystery may be lifted a bit, as the government is expected to implement regulations for disclosing fund fees.
Lori Lucas, a defined-contribution-plan specialist at consulting firm Callan Associates, says the new rules "will improve transparency and put additional pressure on plan vendors to make fees reasonable."
What investors see once that transparency arrives might be quite eye-opening. By rough estimates, 401k fees add up to anywhere from $30 billion to $60 billion a year. Do the math and that comes to as much as $164 million every day. The companies say they more than earn that impressive income stream, given the complexities of record-keeping and accounting for tens of millions of accounts -- not to mention investing the money. In testimony to regulators, fund companies have said their 401k charges compare favorably to the costs of getting the same services outside the plan.
There's just one problem: Most employees don't or can't comparison shop. In one recent study by AARP, seven in 10 workers said they didn't realize they were paying any 401k fees at all.
"There are enormous dollar amounts involved," says former plan consultant Frank Cirullo. "Employees are getting ripped off."
Indeed, even though advisers always stress the importance of keeping investing expenses down, many 401k plans don't do so. At a midsize company, annual fees can run less than 0.3% of assets for a no-frill plan that emphasizes inexpensive index funds. The fact that the average plan member pays three times that much suggests that cost efficiency isn't high on the agenda.
Oddly enough, employers don't always know what the bill for their 401k plan adds up to. When you ask them, says Glenn Jensen, managing director of New England Retirement Consultants, "you get a deer-in-the-headlights look."
Some of the problem, according to critics, comes down to that practice known as revenue sharing. In many plans, the packager charges the employer little or nothing. But the packager maintains leeway over which investment choices get included. And it makes up its costs by steering plan investors toward mutual funds -- usually more expensive, actively managed ones -- that route a slice of their fees back to the packager. On some funds, those revenue-sharing fees alone can cost an average of $33 a year per $10,000 invested, according to human resources consultants Aon Hewitt, enough to put a serious dent in an employee's investment performance.
Critics like Ryan Alfred, co-founder and president of financial research firm BrightScope, say this arrangement effectively discourages packagers from offering lower-cost index funds, because they can't pull in as many fees. The result: Plan members pay much higher fund-management fees, yet another factor that can eat into their returns.
Fidelity declined to discuss the relative costs of its plans, but says that in some cases, employers get to decide whether they want to use a revenue-sharing system. Bank of America Merrill Lynch and ING declined to discuss costs or revenue sharing, although -- irony alert -- both companies said they were in favor of transparency on fees. (Employers and workers "should fully understand costs and get real value," Merrill said in a statement.)
Some consumer advocates are optimistic that the new fund-disclosure rules will untangle some of this mess and bring costs down. Still, problems are likely to persist. As currently proposed, the rules require packagers to disclose revenue-sharing fees to employers, but not directly to plan members, who will have to dig through regulatory filings to get them. And employees still lack straightforward ways to pressure their employers to cut costs.
View the original article here
America's conversion to the 401k plan has certainly created a new world for future retirees, who have been discovering just how tricky it is to prepare for retirement in their spare time. But one party hasn't been complaining: the financial-services industry.
Though most Americans know them primarily as brokers or banks, the Fidelitys, Merrill Lynches and INGs of the world also dominate the 401k packaging business. That allows those companies to introduce millions of workers -- and $4.3 trillion of their savings -- to the packagers' own hand-picked rosters of mutual funds. In total, financial firms take home somewhere around 1% of those assets a year, and few workers understand how that money flows. (One confusing concept: "revenue sharing." More on that in a bit.) But in coming months, the shroud of mystery may be lifted a bit, as the government is expected to implement regulations for disclosing fund fees.
Lori Lucas, a defined-contribution-plan specialist at consulting firm Callan Associates, says the new rules "will improve transparency and put additional pressure on plan vendors to make fees reasonable."
What investors see once that transparency arrives might be quite eye-opening. By rough estimates, 401k fees add up to anywhere from $30 billion to $60 billion a year. Do the math and that comes to as much as $164 million every day. The companies say they more than earn that impressive income stream, given the complexities of record-keeping and accounting for tens of millions of accounts -- not to mention investing the money. In testimony to regulators, fund companies have said their 401k charges compare favorably to the costs of getting the same services outside the plan.
There's just one problem: Most employees don't or can't comparison shop. In one recent study by AARP, seven in 10 workers said they didn't realize they were paying any 401k fees at all.
"There are enormous dollar amounts involved," says former plan consultant Frank Cirullo. "Employees are getting ripped off."
Indeed, even though advisers always stress the importance of keeping investing expenses down, many 401k plans don't do so. At a midsize company, annual fees can run less than 0.3% of assets for a no-frill plan that emphasizes inexpensive index funds. The fact that the average plan member pays three times that much suggests that cost efficiency isn't high on the agenda.
Oddly enough, employers don't always know what the bill for their 401k plan adds up to. When you ask them, says Glenn Jensen, managing director of New England Retirement Consultants, "you get a deer-in-the-headlights look."
Some of the problem, according to critics, comes down to that practice known as revenue sharing. In many plans, the packager charges the employer little or nothing. But the packager maintains leeway over which investment choices get included. And it makes up its costs by steering plan investors toward mutual funds -- usually more expensive, actively managed ones -- that route a slice of their fees back to the packager. On some funds, those revenue-sharing fees alone can cost an average of $33 a year per $10,000 invested, according to human resources consultants Aon Hewitt, enough to put a serious dent in an employee's investment performance.
Critics like Ryan Alfred, co-founder and president of financial research firm BrightScope, say this arrangement effectively discourages packagers from offering lower-cost index funds, because they can't pull in as many fees. The result: Plan members pay much higher fund-management fees, yet another factor that can eat into their returns.
Fidelity declined to discuss the relative costs of its plans, but says that in some cases, employers get to decide whether they want to use a revenue-sharing system. Bank of America Merrill Lynch and ING declined to discuss costs or revenue sharing, although -- irony alert -- both companies said they were in favor of transparency on fees. (Employers and workers "should fully understand costs and get real value," Merrill said in a statement.)
Some consumer advocates are optimistic that the new fund-disclosure rules will untangle some of this mess and bring costs down. Still, problems are likely to persist. As currently proposed, the rules require packagers to disclose revenue-sharing fees to employers, but not directly to plan members, who will have to dig through regulatory filings to get them. And employees still lack straightforward ways to pressure their employers to cut costs.
View the original article here
Monday, April 23, 2012
Texting and stock investing don't mix
It was just one line, with more information promised on the website vipstockpicks.mobi. Another text came two hours later, saying TRON "is already up 20%+ today. Get in now before the BIG news comes this week!"
With about 20 minutes left in the day's trading, a third message arrived: The stock was up 41%. The text again urged me to get in before big news came this week. About 48 hours later, there was another text, suggesting that it was not too late to act on Toron.
The truth, however, is that anyone buying stock on the basis of a text message from a service about which they know virtually nothing is making a mistake, which is why Toron is the Stupid Investment of the Week.
In fact, Toron's pick is less about the company than about the way investors found out about it; it's hard to believe any stock being pumped via text message would be a good idea for average investors.
The interesting thing, of course, is that somebody would actually trade on advice from an anonymous text, from an anonymous website, where the information amounts to "Buy now!' without any real knowledge of the company.
Michael Whitehead, Toron's president, said the company was unaware it was the subject of the text messages and has no idea who is behind the push. It's not the first time in the company's short history, however, that it was used this way; Whitehead's wife once received a spam email touting the stock.
"We want to attract investors, but not this way," Whitehead said in a telephone interview late last week. "I believe we can attract investors by moving the company forward and having some success, which would attract investors who want to be part of this for the long-term, and not somebody who is going to buy today and sell tomorrow."
Anyone who followed up on the text by going to the VIPStockPicks website didn't exactly get any real information. The reason to invest in Toron was summed up by the site: "We all know it's the big announcements that make these small gems move."
But it would be news to Toron's president if the company had a big announcement to make.
"Whoever is behind (the texts) is making that up," Whitehead said. "There is no big announcement coming right now."
Toron was organized in 2008 and according to its own filings with the Securities and Exchange Commission was "engaged in the marketing, sales and re-sales via the Internet of web domain names."
Last summer, however, the company made the completely logical decision to move from that business into "identifying and pursuing options regarding the acquisition of mineral exploration properties." At that point, it effectively went from a shell company to an operating company, although you can't tell it by the company's revenues because there have never been any, through its latest quarterly report, dated Oct. 31, 2011.
When it made the change, the company acquired "an undivided 100% interest" in 62 mineral claims in Canada. The company then underwent a 32-for-one stock split, increasing its float to 185 million shares.
View the original article here
With about 20 minutes left in the day's trading, a third message arrived: The stock was up 41%. The text again urged me to get in before big news came this week. About 48 hours later, there was another text, suggesting that it was not too late to act on Toron.
The truth, however, is that anyone buying stock on the basis of a text message from a service about which they know virtually nothing is making a mistake, which is why Toron is the Stupid Investment of the Week.
In fact, Toron's pick is less about the company than about the way investors found out about it; it's hard to believe any stock being pumped via text message would be a good idea for average investors.
The interesting thing, of course, is that somebody would actually trade on advice from an anonymous text, from an anonymous website, where the information amounts to "Buy now!' without any real knowledge of the company.
Michael Whitehead, Toron's president, said the company was unaware it was the subject of the text messages and has no idea who is behind the push. It's not the first time in the company's short history, however, that it was used this way; Whitehead's wife once received a spam email touting the stock.
"We want to attract investors, but not this way," Whitehead said in a telephone interview late last week. "I believe we can attract investors by moving the company forward and having some success, which would attract investors who want to be part of this for the long-term, and not somebody who is going to buy today and sell tomorrow."
Anyone who followed up on the text by going to the VIPStockPicks website didn't exactly get any real information. The reason to invest in Toron was summed up by the site: "We all know it's the big announcements that make these small gems move."
But it would be news to Toron's president if the company had a big announcement to make.
"Whoever is behind (the texts) is making that up," Whitehead said. "There is no big announcement coming right now."
Toron was organized in 2008 and according to its own filings with the Securities and Exchange Commission was "engaged in the marketing, sales and re-sales via the Internet of web domain names."
Last summer, however, the company made the completely logical decision to move from that business into "identifying and pursuing options regarding the acquisition of mineral exploration properties." At that point, it effectively went from a shell company to an operating company, although you can't tell it by the company's revenues because there have never been any, through its latest quarterly report, dated Oct. 31, 2011.
When it made the change, the company acquired "an undivided 100% interest" in 62 mineral claims in Canada. The company then underwent a 32-for-one stock split, increasing its float to 185 million shares.
View the original article here
Friday, April 20, 2012
What Does Trade Volume Mean?
At Money Runners Group, we pride ourselves on educating our clients – and the general public – on the ins and outs of successfully investing in stocks, whether you are interested in purchasing one share of Berkshire Hathaway, or investing in the hottest penny stocks. Our penny stock advice is pretty simple: Principals of sound investing transcend all markets. If you apply time-honored methodologies, educate yourself, and utilize common sense, you could turn a profit no matter what type of stocks you invest in. With that in mind, we would like to talk a little bit about trade volume, specifically, what does trade volume mean?
Here is a simple definition: Trade volume is the amount of shares traded among parties in a certain period of time. In many cases, the time frame is a single day, but it also can be much longer, like a week or month. It is a term that is commonly used when talking about the stock market or other financial markets, and for traders it may not seem an important statistic on the surface. But do not be fooled by the simplicity of the definition, as trade volume plays a vital role in the stock market and how it operates. How so? Because it takes into consideration securities that are bought and sold, meaning trade volume paints a picture not only for the overall market on a particular day, but for an individual stock.
Trading volume is important because it tells you how significant a price shift is, and gives clues as to how legitimate those shifts may be. Here is an example: Company A and Company B is both worth $12, but suddenly gain $5 in one day and close at $17. If the volume of Company A was 1,000,000 shares whereas the volume of Company B was only 10,000 shares, there is a much bigger shift in Company A. This could mean that the stock for Company A caused a much greater increase in investor confidence. A key here is to keep your eyes open and sniff for a pattern. If the same scenario with the same two penny stocks continues to play out, or Company B peters out a bit, then stock in Company A may be worth than a passing glance. As trading volume increases, so does the amount of investor interest – many of whom may decide to get involved, continuing to drive the price up even further. At this point, you have to ask yourself: Should I get involved now? And if I invest, am I confident this pattern will continue, making my investment worthwhile enough to sell?
Here are some other penny stock tips to consider.
As trade volume rises, so does the liquidity for traders. Remember, liquidity refers to the degree to which a stock can be bought or sold without affecting its price. If the volume is light, it may be problematic to find another party to trade against at an attractive price. Translation? You may have to buy at a price higher than you expected to originally. Again, look for patterns.
This is something else to watch for with trade volume. In many cases, trade volume for large companies may spike up to four times each year, coinciding with quarterly earnings reports. If these reports, and related announcements about the health of the company, are positive, a price increase will follow.
Finally, remember that penny stock trading does not occur in a vacuum. Trade volume and other tools at your disposal, such as the relative strength index, can be important in investing success. Do not dismiss anything that can give you an advantage.
View the original article here
Here is a simple definition: Trade volume is the amount of shares traded among parties in a certain period of time. In many cases, the time frame is a single day, but it also can be much longer, like a week or month. It is a term that is commonly used when talking about the stock market or other financial markets, and for traders it may not seem an important statistic on the surface. But do not be fooled by the simplicity of the definition, as trade volume plays a vital role in the stock market and how it operates. How so? Because it takes into consideration securities that are bought and sold, meaning trade volume paints a picture not only for the overall market on a particular day, but for an individual stock.
Trading volume is important because it tells you how significant a price shift is, and gives clues as to how legitimate those shifts may be. Here is an example: Company A and Company B is both worth $12, but suddenly gain $5 in one day and close at $17. If the volume of Company A was 1,000,000 shares whereas the volume of Company B was only 10,000 shares, there is a much bigger shift in Company A. This could mean that the stock for Company A caused a much greater increase in investor confidence. A key here is to keep your eyes open and sniff for a pattern. If the same scenario with the same two penny stocks continues to play out, or Company B peters out a bit, then stock in Company A may be worth than a passing glance. As trading volume increases, so does the amount of investor interest – many of whom may decide to get involved, continuing to drive the price up even further. At this point, you have to ask yourself: Should I get involved now? And if I invest, am I confident this pattern will continue, making my investment worthwhile enough to sell?
Here are some other penny stock tips to consider.
As trade volume rises, so does the liquidity for traders. Remember, liquidity refers to the degree to which a stock can be bought or sold without affecting its price. If the volume is light, it may be problematic to find another party to trade against at an attractive price. Translation? You may have to buy at a price higher than you expected to originally. Again, look for patterns.
This is something else to watch for with trade volume. In many cases, trade volume for large companies may spike up to four times each year, coinciding with quarterly earnings reports. If these reports, and related announcements about the health of the company, are positive, a price increase will follow.
Finally, remember that penny stock trading does not occur in a vacuum. Trade volume and other tools at your disposal, such as the relative strength index, can be important in investing success. Do not dismiss anything that can give you an advantage.
View the original article here
Monday, April 16, 2012
Selecting A Mortgage Plan
The luxurious homes have become the basic need of the modern era. Mortgaging a house is an attractive option for buyers from all walks of life to own a luxurious house. Selecting a mortgage plan remains a critical aspect in owning a house because the mortgage rates vary from plan to plan.
Since the houses are an important need, they are an attractive option for the investors to invest. House mortgages are in fact a kind of loan for the houses but it works in a different manner.
In mortgage, you get a house and you are required to pay a monthly installment of your mortgage as per your mortgage plans. These mortgages also play as a guarantee for getting any additional loans from companies.
The advent of technology has also affected the mortgage field. Now you do not have to run from office to office searching for a suitable mortgage plan. Instead all the necessary data is now just a click away. By using different websites that host a collection of mortgage plans, one can simply select the plan that suits him. All the data is sorted and sifted in an orderly manner and you are truly just a click away from your dream house.
Like all other commodities, the rates of mortgages also vary from company to company. The mortgage plans include a down payment followed by the monthly installments plan. Obviously the mortgages involve a particular rate of interest and furthermore, the interest rates may increase due to defaults and late payments.
However now one does not have to worry about the varying mortgages plan as the entire details of such deals are available online and one can easily access his choice plan.
Mortgages for houses have numerous benefits. They are ideal for the people with small income but they are equally popular amongst the rich people. Due to the varying interest rates, the investors also like to invest in the housing industry as it promises easy and befitting returns for their money. Since the houses remain one of the basic needs, there is no getting away and the business of mortgaging houses continues to flourish. Also the competing companies have played a major part in reducing the rates of mortgages for houses.
View the original article here
Since the houses are an important need, they are an attractive option for the investors to invest. House mortgages are in fact a kind of loan for the houses but it works in a different manner.
In mortgage, you get a house and you are required to pay a monthly installment of your mortgage as per your mortgage plans. These mortgages also play as a guarantee for getting any additional loans from companies.
The advent of technology has also affected the mortgage field. Now you do not have to run from office to office searching for a suitable mortgage plan. Instead all the necessary data is now just a click away. By using different websites that host a collection of mortgage plans, one can simply select the plan that suits him. All the data is sorted and sifted in an orderly manner and you are truly just a click away from your dream house.
Like all other commodities, the rates of mortgages also vary from company to company. The mortgage plans include a down payment followed by the monthly installments plan. Obviously the mortgages involve a particular rate of interest and furthermore, the interest rates may increase due to defaults and late payments.
However now one does not have to worry about the varying mortgages plan as the entire details of such deals are available online and one can easily access his choice plan.
Mortgages for houses have numerous benefits. They are ideal for the people with small income but they are equally popular amongst the rich people. Due to the varying interest rates, the investors also like to invest in the housing industry as it promises easy and befitting returns for their money. Since the houses remain one of the basic needs, there is no getting away and the business of mortgaging houses continues to flourish. Also the competing companies have played a major part in reducing the rates of mortgages for houses.
View the original article here
Thursday, April 12, 2012
Home Equity Loan
Equity Loan allows people to borrow money by pledging their house as a guarantee. The loan money is free of tax because it is not an income. The person pledging their property can receive the loan in a single payment, or is offered a check book to borrow money against the pledged property. The interest to be paid on an equity loan is much lesser than other loans because the person before receiving equity loan has pledged his/her house.
An equity loan allows a borrower to borrow money by involving collateral. The money borrowed can be paid off when the property is sold or whenever the borrower can afford to pay it back. There is no stern schedule to follow when it comes to paying back the loan. Some banks also lend money against an equity loan to facilitate the borrower.
There is no specific time slot mentioned at the time of lending the loan, as to when the person has to pay back the equity loan.
The amount can be paid off whenever the borrower has money, or once the house is sold.
The interest rate charged on an equity loan is considerably low than other loans e.g. credit card debt; because equity loan includes collateral and the other one does not.
Equity loans are easy to get as the property that is pledges can easily cover the amount of the loan being borrowed. These loans have lower interest rates, and they can be used to get whatever the loan borrower desires. The amount received on such a loan is tax deductible because it does not qualify as an income.
Another favorable point about equity loans is that a person can be eligible for the loan even if they have a poor credit score, unlike other financing loans where the person with a good credit score is considered more likely to be given the loan. A person applying for an equity loan can get fairly higher amount of money as a loan.
The most common usage of such a loan is paying for school tuition, college, and funds or paying for a holiday. In the past borrowing an equity loan was considered to be the best available option to pay for children’s education because of the interest rates being so high, but not anymore, now loans for educational purposes are a better option to pay for a child’s tuition.
Equity loans have some disadvantages as well, if a person has invested the money in a child’s college or school tuition, and they fail to pay it according to the time slot planned, the child’s future will be in jeopardy along with your home. Another factor to really think about is that now there are a lot of scams going around, where the lenders trick the borrower into pledging their house and offer very attractive deals, and when the borrowers fails to pay up, they end up losing their home.
View the original article here
An equity loan allows a borrower to borrow money by involving collateral. The money borrowed can be paid off when the property is sold or whenever the borrower can afford to pay it back. There is no stern schedule to follow when it comes to paying back the loan. Some banks also lend money against an equity loan to facilitate the borrower.
There is no specific time slot mentioned at the time of lending the loan, as to when the person has to pay back the equity loan.
The amount can be paid off whenever the borrower has money, or once the house is sold.
The interest rate charged on an equity loan is considerably low than other loans e.g. credit card debt; because equity loan includes collateral and the other one does not.
Equity loans are easy to get as the property that is pledges can easily cover the amount of the loan being borrowed. These loans have lower interest rates, and they can be used to get whatever the loan borrower desires. The amount received on such a loan is tax deductible because it does not qualify as an income.
Another favorable point about equity loans is that a person can be eligible for the loan even if they have a poor credit score, unlike other financing loans where the person with a good credit score is considered more likely to be given the loan. A person applying for an equity loan can get fairly higher amount of money as a loan.
The most common usage of such a loan is paying for school tuition, college, and funds or paying for a holiday. In the past borrowing an equity loan was considered to be the best available option to pay for children’s education because of the interest rates being so high, but not anymore, now loans for educational purposes are a better option to pay for a child’s tuition.
Equity loans have some disadvantages as well, if a person has invested the money in a child’s college or school tuition, and they fail to pay it according to the time slot planned, the child’s future will be in jeopardy along with your home. Another factor to really think about is that now there are a lot of scams going around, where the lenders trick the borrower into pledging their house and offer very attractive deals, and when the borrowers fails to pay up, they end up losing their home.
View the original article here
Monday, April 9, 2012
Set and Manage Your Budget Online Free
Having a budget and tracking expenses vs income is important for small business survival. If you are just starting out, have a one-person home business and want to save some money, here's a helpful free resource you can use.
Mint is a free online tool that you can use to manage your money. Designed mainly for personal use, there's no reason why you can't use it to help you set and track a simple budget for your small or home-based business.
Mint lets you connect your Mint account with your bank and credit card accounts, so that you can easily track your business income and expenditures and compare them with your budget goals - without wasting a lot of time.
View the original article here
Mint is a free online tool that you can use to manage your money. Designed mainly for personal use, there's no reason why you can't use it to help you set and track a simple budget for your small or home-based business.
Mint lets you connect your Mint account with your bank and credit card accounts, so that you can easily track your business income and expenditures and compare them with your budget goals - without wasting a lot of time.
View the original article here
Sunday, April 1, 2012
Best Way to Become a Money Saving Expert
One of the best ways you can turn yourself into a money-saving expert is through cutting down the cost to spend on your bills. You may not realize, if not checked, bills can really be large monsters. Having a record on your billing expenses will allow you to checked if it will dig more into your pocket. And can apply strategies how to lessen it without hurting your necessities.
How to save money on electricity bills
Electricity bills come first in line because we largely rely on electric-powered appliances. We use a lot of electric appliances every single day in our homes. These things consume a lot of energy, which is best reflected on our monthly electric costs.
With the cost of energy rising seemingly constantly, it’s worth to find ways to curb the use of electricity. Simple but often neglected energy-saving tips are a big help in lowering electricity use most especially in households. You can use time –tested formula and other creative ideas you can find. And depending on your situation, this can be accomplished without making any major sacrifices.
Here are simple ways you can apply to become more energy-efficient and save money on electricity bill:
Some appliances known to use up a lot of electricity during summer include air conditioners, refrigerators, freezers, electric fans, water pumps and entertainment appliances like TV’s and computers among other appliances.
For further ways of reducing your electricity bill, visit Meralco website and find money-saving ideas and help.
How to save money on groceries
There many things you can cut down expenses on grocery shopping. This doesn’t necessarily mean that you have to compromise the quality of the products that you’re going to buy. Instead, you just need to take note of certain techniques that will help you save money on groceries.
Ways to save money when grocery shopping:
How to save money on phone bills
The telephone is an essential tool inside the house as this allows you to communicate with family and friends.
Here are some tips to reduce your phone bills:
View the original article here
How to save money on electricity bills
Electricity bills come first in line because we largely rely on electric-powered appliances. We use a lot of electric appliances every single day in our homes. These things consume a lot of energy, which is best reflected on our monthly electric costs.
With the cost of energy rising seemingly constantly, it’s worth to find ways to curb the use of electricity. Simple but often neglected energy-saving tips are a big help in lowering electricity use most especially in households. You can use time –tested formula and other creative ideas you can find. And depending on your situation, this can be accomplished without making any major sacrifices.
Here are simple ways you can apply to become more energy-efficient and save money on electricity bill:
- Try to use the new compact fluorescent light bulbs rather than traditional bulbs. Compact fluorescent lamps (CFLs) can last up to 15 times longer than incandescent light bulbs and consume much less energy. By upgrading your lighting to CFLs, you can save 10 to 15 percent on your monthly energy bill.
- Unplug appliances when not in use,specifically those which have a stand-by mode function. Simply turning these appliances off is not enough because electrical appliances/devices still consume power while in stand-by mode.Give your air conditioner or heating devices an annual check up and cleaning. This is to make sure your cooling or heating systems are running at their highest efficiency.
- Replace your major appliances or air conditioners that more than 10 to 15 years old. They are definitely costing too much to run. Modern appliances that conform to energy-saving efficiency are 10 to 20 percent cheaper to operate than other products.
- At night, turn off refrigerator’s cooling control system at night but not unplugged. This will lessen around 10% power consumption.
- If it’s a sunny day, open the blinds rather than turning on lights.
- Turn lights off every single time you get out of your room.
- Do your ironing and laundry in bulk.
- Open refrigerators only when needed.
Some appliances known to use up a lot of electricity during summer include air conditioners, refrigerators, freezers, electric fans, water pumps and entertainment appliances like TV’s and computers among other appliances.
For further ways of reducing your electricity bill, visit Meralco website and find money-saving ideas and help.
How to save money on groceries
There many things you can cut down expenses on grocery shopping. This doesn’t necessarily mean that you have to compromise the quality of the products that you’re going to buy. Instead, you just need to take note of certain techniques that will help you save money on groceries.
Ways to save money when grocery shopping:
- Don’t waste money on prepared foods. Instead, prepare meals ahead of time and freeze them, or double a recipe when cooking, and freeze the second for a hectic day coming up.
- Take the farmer’s market approach: Buy produce that’s fresh, inexpensive and in season. With less middlemen involved, you get good buys and your family gets the freshest food.
- A grocery store’s main aisles, like the paths to milk and bread, are usually strewn with high-priced land mines. Avoiding those pricey areas will really help.
- Try to shop when you’re alone. Those little helpers can quickly boost your bill.
- Shop early in the day. You get through the store faster with your list and spend less.
- Avoid shopping for food when you’re hungry; you’ll buy more.
- Don’t grocery shop when you’re tired, you’ll buy more sweets, more high-carbohydrates. When you’re angry you go for crunch food, the junk food.
- Check your store for a small section where they discount products that aren’t as popular as the manufacturer had hoped. This area can be a gold mine for bargains.
- Shop with a calculator. That way, you can figure whether the unit price for a case lot is really cheaper than buying one of the same item.
- Check your receipts. No matter how careful you or the store staff might be, mistakes happen.
How to save money on phone bills
The telephone is an essential tool inside the house as this allows you to communicate with family and friends.
Here are some tips to reduce your phone bills:
- Use the same plan as friends and family. Many cellphone service providers offer free in-network calls or allow you to choose a small group of in-network friends and family that you can call for free. Bundle all services. There’s great benefit when you move all of your services – cellphone, cable/ satellite, Internet and home phone to one provider. You’ll likely be rewarded with a bundled service discount.
- Go prepaid. If you only use your cell phone for occasional calls, a prepaid plan may be the cheapest service option for you.Pick a Plan that matches your talk times. Do you make a lot of calls in the early evenings? On the weekends? Mid-day? Examine your phone habits; then, pick a plan that best matches them.
- Switch to unlimited texting. Text messages can cost Php 1.00 in the Philippines to send. If you do a lot of text messaging, a plan with unlimited text messages is definitely the way to go.
- Ask for a better deal. One thing you can be sure of: Your service provider doesn’t want to lose you to the competition. So, ask for a better deal, and you’ll probably get it.
View the original article here
Thursday, March 29, 2012
Investing Money with Compound Interest Calculator in Mind
Albert Einstein is widely rumored to have once said that “the most powerful force in the universe is compound interest.”
What is compound interest?
The term compound interest, also called as the 8th wonder of the World, is a standard word in economics and finance. It is the process of adding interest to the initial amount of an investment, and from then on earning further interest on this new amount. This is distinct from simple interest, in which the rate is applied once to the initial amount and then multiplied by the term of the investment.
Compound interest is a key way to grow savings. It works when interest is paid on interest. This leads to exponential growth over time.
In more detail, interest compounds when money invested earns interest and then – when the original sum and the original interest are unspent – interest in the next period is paid on both. Over many years, the pattern is repeated, growing the original investment at an increasingly rapid rate.
Compound Interest Formula
Where the interest is compounded once a year then the Compound Interest Formula is: A = P(1 + R)Y whereby:
The Two Levers of Compound Interest: Frequency & Time
1. Frequency (or Interval)
In the above example we are simply compounding annually. But some savings and investments may compound quarterly or even monthly. So, it’s important to find this out in advance from the financial institution or broker. The frequency with which returns are compounded is particularly important when investing in Bonds. The following shows the difference in how the formula is calculated.
Quarterly Compounding = P (1 + R/4)4Monthly Compounding = P (1 + R/12)12
The more frequent the interval of compounding is, the greater the impact on compound growth. However, it’s worth noting that although frequency is an important lever in the impact of compounding on the future value of a savings or investment vehicle, it is not as impactful as the term i.e. length of time (plus the compounding frequency “lever” is subject to the law of diminishing returns over time).
2. Time (i.e. the Term)
Compounding exerts its most dramatic effect (for a given interest rate) when the term is extended. In other words, the longer an amount is subject to compounding, the greater the effect.
The secret to reaping the benefits of compound interest is:
How to Calculate Compound Interest
Calculating compound interest is not as straight forward as simple interest, although it is not particularly difficult.
In order to make the calculation it is necessary to know both the periodic rate of interest and the compounding period. Given these two facts it is possible to determine the return on investment over a given period, as well as a nominal annual rate and annual percentage rate (APR), two means of comparing investments offering different compounding periods.
Compound Interest Calculator
Compound interest calculator is the system that calculates the charges or amount to be paid on the original amount, plus the amount accumulated through the charges gained.
If you hate to show your Mathematical skills, online calculators are available in your aid. The calculator is easy to use and available for all of us. Just visit TutorVista, one of the best compound interest calculator online.
Certainly, compounding money is the fastest and easiest way to become financially secure. It allows you to get rich slowly over time but you can speed up this process and get rich quicker by pulling on the two levers of frequency and time. Of course, maximizing your interest rate by choosing the right investment vehicle in the first instance is also a big factor. However, the key take-home message in all of this is, leaving aside interest rate, the amount of capital (principal) you start with is not nearly as important as time i.e. getting started early.
But here’s a reminder, even if compound interest is a really marvelous invention, it can also works to the opposite. When you invest, it works for you. But when you borrow, it works against you!
View the original article here
What is compound interest?
The term compound interest, also called as the 8th wonder of the World, is a standard word in economics and finance. It is the process of adding interest to the initial amount of an investment, and from then on earning further interest on this new amount. This is distinct from simple interest, in which the rate is applied once to the initial amount and then multiplied by the term of the investment.
Compound interest is a key way to grow savings. It works when interest is paid on interest. This leads to exponential growth over time.
In more detail, interest compounds when money invested earns interest and then – when the original sum and the original interest are unspent – interest in the next period is paid on both. Over many years, the pattern is repeated, growing the original investment at an increasingly rapid rate.
Compound Interest Formula
Where the interest is compounded once a year then the Compound Interest Formula is: A = P(1 + R)Y whereby:
- A = the accumulated amount i.e. how much money you’ve accumulated after n years, including interest.
- P = the principal (the money you start with, your first deposit)
- R = the rate of interest (AER) as a decimal (8% means =.08)
- Y = the number of years you leave it on deposit
The Two Levers of Compound Interest: Frequency & Time
1. Frequency (or Interval)
In the above example we are simply compounding annually. But some savings and investments may compound quarterly or even monthly. So, it’s important to find this out in advance from the financial institution or broker. The frequency with which returns are compounded is particularly important when investing in Bonds. The following shows the difference in how the formula is calculated.
Quarterly Compounding = P (1 + R/4)4Monthly Compounding = P (1 + R/12)12
The more frequent the interval of compounding is, the greater the impact on compound growth. However, it’s worth noting that although frequency is an important lever in the impact of compounding on the future value of a savings or investment vehicle, it is not as impactful as the term i.e. length of time (plus the compounding frequency “lever” is subject to the law of diminishing returns over time).
2. Time (i.e. the Term)
Compounding exerts its most dramatic effect (for a given interest rate) when the term is extended. In other words, the longer an amount is subject to compounding, the greater the effect.
The secret to reaping the benefits of compound interest is:
- Saving and/or Investing a regular amount of money each month.
- Leaving you money invested for the long-term.
- Reinvesting your gains (interest), again and again.
How to Calculate Compound Interest
Calculating compound interest is not as straight forward as simple interest, although it is not particularly difficult.
In order to make the calculation it is necessary to know both the periodic rate of interest and the compounding period. Given these two facts it is possible to determine the return on investment over a given period, as well as a nominal annual rate and annual percentage rate (APR), two means of comparing investments offering different compounding periods.
Compound Interest Calculator
Compound interest calculator is the system that calculates the charges or amount to be paid on the original amount, plus the amount accumulated through the charges gained.
If you hate to show your Mathematical skills, online calculators are available in your aid. The calculator is easy to use and available for all of us. Just visit TutorVista, one of the best compound interest calculator online.
Certainly, compounding money is the fastest and easiest way to become financially secure. It allows you to get rich slowly over time but you can speed up this process and get rich quicker by pulling on the two levers of frequency and time. Of course, maximizing your interest rate by choosing the right investment vehicle in the first instance is also a big factor. However, the key take-home message in all of this is, leaving aside interest rate, the amount of capital (principal) you start with is not nearly as important as time i.e. getting started early.
But here’s a reminder, even if compound interest is a really marvelous invention, it can also works to the opposite. When you invest, it works for you. But when you borrow, it works against you!
View the original article here
Monday, March 26, 2012
Online Investing Opportunity for People With Little Time, Knowledge, or Money to Get Into Stocks
For people looking for online investing opportunity but with little time, little knowledge, or little money to get into investing bandwagon, here’s a great opportunity from CitisecOnline (COL). The number one online stock brokerage firm in the Philippines offers COL Easy Investment Program. The purpose of this investment program is to minimize risk and maximize earning potential for investors in the stock market over several years. It encourages investing a fixed amount of money at regular increment over an extended period of time, thus enabling investors to purchase more shares when prices are low and buy less when prices are high.
With the investment program, investors can make their savings multiply exponentially by regularly allotting as low as P5,000 to purchase blue chips or shares in companies perceived to be stable and to have a good performance record.
The program offers the investor to choose from a list of stocks preselected by COL’s analyst. Among the stocks are those of top companies like Philippine Long Distance Telephone Co. (PLDT), SM Prime Holdings Inc., Ayala Land Inc., Jollibee Foods Corporation, Manila Water Co., and Bank of the Philippine Islands.
COL’s services being online, the account holder can execute buy-and-sell orders without the hassle of getting through to a broker every time, unlike in the traditional stock market. Transparent investment processes are ensured at all time because investors can monitor their transactions and stocks anytime from anywhere.
The return on investment from COL Easy Investment Program will be better in the long term. This is a great investment vehicle for people who want to start saving money for retirement, or for those who have long-term goal.
As a personal wealth-building tool and an ideal way to build a retirement fund, the investment program effectively reduces volatility in any portfolio as the risks of investing in the market diminish over time. COL Easy Investment Program is an ideal entry point to the stock market for it uses the dollar cost averaging or peso cost averaging method that involves investing a set of amount at regular intervals over a long period of time to take advantage of the rises and falls in the investment prices. Though, this is not a perfect investment for people who want to invest but not willing to wait three to five years for their money to grow.
The good thing of the COL Easy Investment Program is that it takes the guesswork out of stock investment because the online brokerage firm basically suggest the right stocks and investment vehicles for investors. Investors only have to figure out how much disposable income they can afford to invest for the long term. And because the fund basically shield investors from the market volatility, the return on investment will be bigger in the long run.
How to Start Investing Online with CitisecOnline?
Signing up for CitisecOnline COL Easy Investment Program takes only four easy steps:
For new or prospective investors who wants to familiarize themselves with the stock market trading, CitisecOnline conducts monthly training seminars that seek to educate people on the basics of stock investment and to promote the idea of investing money on staggered basis. The seminar schedules are posted on COL’s website, www.citiseconline.com.
View the original article here
With the investment program, investors can make their savings multiply exponentially by regularly allotting as low as P5,000 to purchase blue chips or shares in companies perceived to be stable and to have a good performance record.
The program offers the investor to choose from a list of stocks preselected by COL’s analyst. Among the stocks are those of top companies like Philippine Long Distance Telephone Co. (PLDT), SM Prime Holdings Inc., Ayala Land Inc., Jollibee Foods Corporation, Manila Water Co., and Bank of the Philippine Islands.
COL’s services being online, the account holder can execute buy-and-sell orders without the hassle of getting through to a broker every time, unlike in the traditional stock market. Transparent investment processes are ensured at all time because investors can monitor their transactions and stocks anytime from anywhere.
The return on investment from COL Easy Investment Program will be better in the long term. This is a great investment vehicle for people who want to start saving money for retirement, or for those who have long-term goal.
As a personal wealth-building tool and an ideal way to build a retirement fund, the investment program effectively reduces volatility in any portfolio as the risks of investing in the market diminish over time. COL Easy Investment Program is an ideal entry point to the stock market for it uses the dollar cost averaging or peso cost averaging method that involves investing a set of amount at regular intervals over a long period of time to take advantage of the rises and falls in the investment prices. Though, this is not a perfect investment for people who want to invest but not willing to wait three to five years for their money to grow.
The good thing of the COL Easy Investment Program is that it takes the guesswork out of stock investment because the online brokerage firm basically suggest the right stocks and investment vehicles for investors. Investors only have to figure out how much disposable income they can afford to invest for the long term. And because the fund basically shield investors from the market volatility, the return on investment will be bigger in the long run.
How to Start Investing Online with CitisecOnline?
Signing up for CitisecOnline COL Easy Investment Program takes only four easy steps:
- Sign up for a COL account.
- Download the forms are www.citiseconline.com/easy
- Decide on the fixed amount and schedule of your payments.
- Choose from the prescreened blue-chip stocks from the list.
- Start tracking your investments through the internet by logging on to your COL account.
For new or prospective investors who wants to familiarize themselves with the stock market trading, CitisecOnline conducts monthly training seminars that seek to educate people on the basics of stock investment and to promote the idea of investing money on staggered basis. The seminar schedules are posted on COL’s website, www.citiseconline.com.
View the original article here
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