The new American past time these days is making your money grow. This can involve so many things. One is that you can place your money in the bank and go for time deposits with a guaranteed return. These days, perhaps your money placements can only give you a return per annum that is not to your liking. But there is a market for time deposits and especially for seniors and retirees, bank time deposits are attractive to them since there is less risk involved. Other people place their money on mutual funds which may give them a slightly better interest rate than time deposits. Normally, mutual funds are a low risk investment but with the financial crisis happening last year, people do realize that there are risks involved still in this market. Others who are more aggressive play the money market. The money market has many arenas on which people can play. Some play the stock market, others play the futures market and still some like to do the foreign exchange market.
People who play the stock market are more of risk takers and often times; they take an aggressive stance on where to place their moneys. Playing the stocks used to be done through stock brokers who get a commission on every transaction, whether they make or lose money. And until the advent of the internet, this game was based on a relationship between the stock broker and his or her customer. The stock broker would be given a lot of leeway in investing in the money by buying and selling stocks, that is buying stocks when they are cheap and then selling stocks when they are expensive. The trick for them is to know at what point the stock is going to turn. If some stockbrokers catch the stock before its price is about to rise, and sell before its price is about to fall, then they make money both for themselves and their customers.
The forex market has benefited from the acceptance of the internet. These days anyone can learn how to trade in the forex market. There are even forex trading demo software which enables you to practice trading without the risk of losing money. Forex trading demos help illustrate the workings of trading currencies. It shows you what base currencies are, how margins work, what kind of leverage do you need, and what bid and offer prices one should take given certain currencies. Forex trading demos are good utility tools for you to understand foreign exchange trading.
Monday, January 4, 2010
Do You Need a Financial Advisor?
You may have considered this question before. I'll explain what financial planners do, what they don't do, and why/when someone might need or want to enlist their help.
What does a financial planner do?
Well, that depends. Many individuals refer to themselves as "financial planners" or "advisors", but not all perform true multidisciplinary financial planning. Investment, insurance and tax pro-fessionals sometimes specialize in certain areas of financial planning (such as retirement plan-ning, estate planning, tax planning, or investment management). A CERTIFIED FINANCIAL PLANNER™ practitioner is qualified to give you comprehensive financial advice, as a result of examination, continuing education, board certification and accumulated experience.
In general, individuals who call themselves "financial planners" aim to help you plan for your goals and needs and improve your unique financial situation.
What doesn't a financial planner do?
A financial planner cannot make you a thriftier shopper, a better saver, or help you earn more money. He or she will look at your financial "big picture", help you clarify your goals, accelerate progress toward them, and keep you focused on them when the distractions of life come up. They may recommend specific investments, long-run investing strategies, insurance options, re-tirement planning, risk management methods and more.
Who needs a financial planner?
If you have some significant assets built up (a home, a retirement fund, savings, etc.) and are wondering about how to protect and/or grow those assets, you're probably ready for a financial planner. If you currently live pavcheck to paycheck or have less than $50.000 combined in your savings and/or any retirement accounts, then you're probably not vet in need of a financial plan-ner, and our "average" client is several times larger than this. If you're under the $50,000 mark, what I recommend you do is research savings strategies and take a good look at your spending habits so you can begin to build your wealth at a faster pace.
What is a "Certified Financial Planner"?
If you see the designation "CFP®" after a planner's name, you have found a CERTIFIED FI-NANCIAL PLANNER™ practitioner (alternately called a CERTIFIED FINANCIAL PLAN-NER™ professional). A CFP® has passed a comprehensive examination, amassed years of qualifying full-time work experience, and regularly participates in continuing education courses. A CFP® practitioner must also adhere to a strict code of ethics as set forth by the CFP® Board.
Can you claim to be a financial planner without being a CFP®? Yes, The field of financial plan-ning remains vastly unregulated - meaning almost anyone can call themselves a "financial plan-ner". Does that mean a planner without their CFP® designation is unqualified? Not necessarily. But if they aren't certified, you probably should inquire about their experience and training.
How do I choose a planner?
In two words ... ask questions. Ask trusted friends or colleagues for referrals. Sit down with any planner you're considering and find out how long they've been in business, the number of clients, what their credentials are, how they operate, etc. Most importantly, make sure if and when you hire a planner that your personalities will mesh. This is someone you may well be working with for the rest of your life, so you should choose someone you feel comfortable with.
What does a financial planner do?
Well, that depends. Many individuals refer to themselves as "financial planners" or "advisors", but not all perform true multidisciplinary financial planning. Investment, insurance and tax pro-fessionals sometimes specialize in certain areas of financial planning (such as retirement plan-ning, estate planning, tax planning, or investment management). A CERTIFIED FINANCIAL PLANNER™ practitioner is qualified to give you comprehensive financial advice, as a result of examination, continuing education, board certification and accumulated experience.
In general, individuals who call themselves "financial planners" aim to help you plan for your goals and needs and improve your unique financial situation.
What doesn't a financial planner do?
A financial planner cannot make you a thriftier shopper, a better saver, or help you earn more money. He or she will look at your financial "big picture", help you clarify your goals, accelerate progress toward them, and keep you focused on them when the distractions of life come up. They may recommend specific investments, long-run investing strategies, insurance options, re-tirement planning, risk management methods and more.
Who needs a financial planner?
If you have some significant assets built up (a home, a retirement fund, savings, etc.) and are wondering about how to protect and/or grow those assets, you're probably ready for a financial planner. If you currently live pavcheck to paycheck or have less than $50.000 combined in your savings and/or any retirement accounts, then you're probably not vet in need of a financial plan-ner, and our "average" client is several times larger than this. If you're under the $50,000 mark, what I recommend you do is research savings strategies and take a good look at your spending habits so you can begin to build your wealth at a faster pace.
What is a "Certified Financial Planner"?
If you see the designation "CFP®" after a planner's name, you have found a CERTIFIED FI-NANCIAL PLANNER™ practitioner (alternately called a CERTIFIED FINANCIAL PLAN-NER™ professional). A CFP® has passed a comprehensive examination, amassed years of qualifying full-time work experience, and regularly participates in continuing education courses. A CFP® practitioner must also adhere to a strict code of ethics as set forth by the CFP® Board.
Can you claim to be a financial planner without being a CFP®? Yes, The field of financial plan-ning remains vastly unregulated - meaning almost anyone can call themselves a "financial plan-ner". Does that mean a planner without their CFP® designation is unqualified? Not necessarily. But if they aren't certified, you probably should inquire about their experience and training.
How do I choose a planner?
In two words ... ask questions. Ask trusted friends or colleagues for referrals. Sit down with any planner you're considering and find out how long they've been in business, the number of clients, what their credentials are, how they operate, etc. Most importantly, make sure if and when you hire a planner that your personalities will mesh. This is someone you may well be working with for the rest of your life, so you should choose someone you feel comfortable with.
Thursday, November 26, 2009
Benefits of Choosing Comprehensive Car Insurance
Comprehensive car insurance is more expensive than it has ever been in the past in Australia. But it is also true that comprehensive car insurance plans have never ever provided the variety and vastness of the cover that they provide today. Before comprehensive car insurance became what it is today, taking a car insurance such as this meant cover for the car and mandatory third party car insurance rolled in one. Today comprehensive car insurance includes much more. Comprehensive car insurance plans cover overnight accommodation and travel insurance. They also cover you for a rental car if you lose your car till the time that you get your car back or buy a new one. In cases where you have a trailer, comprehensive car insurance can cover the trailer along with all your belongings as well. These additional benefits can be availed for old and new cars alike and if you have an old car that has a comprehensive car insurance plan that was created years ago, you can always ask for an upgrade. If you find the cost of comprehensive car insurance too high, you can try and reduce the cost to some extent by opting for a restricted driver discount or fitting your car with approved security systems and availing the security device discount. While choosing comprehensive car insurance you should ensure that you shop around and get various quotes from comprehensive car insurance agents before you make your final choice of the plan that you want to go with.
Saturday, November 14, 2009
Ten Real Keys to a Good Credit Score
You know how important your credit score is, so try these ten approaches to make your credit score soar.
1.Don't ever close your oldest accounts - these give your credit history its timeline and the longer, the better.
2.Have a good mix of credit. This includes retail store charges, car loans, credit cards, gas cards, mortgages.
3.Have someone co-sign for a credit card. Ask a close friend or family member with good credit to add you to their account as a signer. This is known as “piggybacking” and allows you to leverage the good history as your own.
4.Don't ever max out a credit card by combining all your debt on it if it puts you near your limit. Instead, spread a large debt over two or more low interest cards.
5.Call creditors to ask for a lower interest rate. Many will give it to you. If you don't ask, they won't offer.
6.Work out a payment plan with creditors if you're struggling. This will prevent your account from being turned over to collection agencies - the kiss of death to your credit score.
7.Ask a family member for a loan to pay off debt; their terms will likely be far more agreeable.
8.Increase your credit limits. This will help your credit utilization ratio. When your limits are increased, your existing debt represents a lesser percentage of your total available credit (the goal is to bring it under 30%). But do NOT increase your balances.
9.Pay bills immediately as they arrive. If you send the money out before the next statement is generated, your creditor will report your paid balance ($0) versus your statement balance (what you owed).
10.Use old cards occasionally. Your oldest accounts count toward your credit history length but may not be factored in if you don't use them every 6 months or so.
Soon, you’ll be on your way to excellent credit health and can use your credit rating to save money each month through lower interest rates on new loans and credit cards.
1.Don't ever close your oldest accounts - these give your credit history its timeline and the longer, the better.
2.Have a good mix of credit. This includes retail store charges, car loans, credit cards, gas cards, mortgages.
3.Have someone co-sign for a credit card. Ask a close friend or family member with good credit to add you to their account as a signer. This is known as “piggybacking” and allows you to leverage the good history as your own.
4.Don't ever max out a credit card by combining all your debt on it if it puts you near your limit. Instead, spread a large debt over two or more low interest cards.
5.Call creditors to ask for a lower interest rate. Many will give it to you. If you don't ask, they won't offer.
6.Work out a payment plan with creditors if you're struggling. This will prevent your account from being turned over to collection agencies - the kiss of death to your credit score.
7.Ask a family member for a loan to pay off debt; their terms will likely be far more agreeable.
8.Increase your credit limits. This will help your credit utilization ratio. When your limits are increased, your existing debt represents a lesser percentage of your total available credit (the goal is to bring it under 30%). But do NOT increase your balances.
9.Pay bills immediately as they arrive. If you send the money out before the next statement is generated, your creditor will report your paid balance ($0) versus your statement balance (what you owed).
10.Use old cards occasionally. Your oldest accounts count toward your credit history length but may not be factored in if you don't use them every 6 months or so.
Soon, you’ll be on your way to excellent credit health and can use your credit rating to save money each month through lower interest rates on new loans and credit cards.
Friday, November 13, 2009
Irish Credit Cards with the Best Designs
Depending how you interpret the word "design," you can pick a "best" in many ways. If you're looking for a credit card that looks nice, then there are credit card issuers like Capital One whose platinum MasterCards can be personalized in many different ways. However, if you get a credit card with the lowest interest rate that does not have a "smart chip" as some European Visa cards do, you can personalize your card in an almost infinite number of ways with credit card skins.
Think of credit card skins like the "skins" that people choose to dress up their iPod. It's like a wardrobe of tiny clothing that won't keep your card from working like it's supposed to (unless you have a "smart chip" Visa). Credit card skins are basically super thin stickers that you apply to the front of your card with a hole over where your name, card number, and expiration date go.
There are websites where you can choose from a dizzying array of credit card skins with every kind of graphic or message you can imagine, from gay pride to preppy Argyle designs. Creditcovers.com has hundreds of designs to choose from and an opportunity to make your own design and make royalties from it if it sells.
Businesses can order custom credit card skins as unique and fun promotional giveaways. You can also make your own graphic credit card skins using a template in Adobe PhotoShop or a similar graphics program using t-shirt transfer paper and a color inkjet printer. Once you have the design the right size and the right shape (with the hole for your name, card number, and expiration date), print it out onto t-shirt transfer paper then cut the design out with scissors. You then put spray mount on the card, peel the backing from the transfer paper and place the design on the card. Put the ironing paper that comes with the t-shirt transfer paper over the card on an ironing board or reasonable facsimile. Preheat iron to "low." Iron the card for 15 seconds. Check if the design adheres. If not, iron for 15 more seconds. But be careful, lest you melt your credit card with too much heat. Let cool. After the card has cooled cut away excess transfer paper with a mat knife.
Sometimes the best design for a credit card is the one that brings you the lowest interest rate. Once you have that, if it isn't beautiful enough for you, then skins are the way to personalize your card into a statement about yourself.
Think of credit card skins like the "skins" that people choose to dress up their iPod. It's like a wardrobe of tiny clothing that won't keep your card from working like it's supposed to (unless you have a "smart chip" Visa). Credit card skins are basically super thin stickers that you apply to the front of your card with a hole over where your name, card number, and expiration date go.
There are websites where you can choose from a dizzying array of credit card skins with every kind of graphic or message you can imagine, from gay pride to preppy Argyle designs. Creditcovers.com has hundreds of designs to choose from and an opportunity to make your own design and make royalties from it if it sells.
Businesses can order custom credit card skins as unique and fun promotional giveaways. You can also make your own graphic credit card skins using a template in Adobe PhotoShop or a similar graphics program using t-shirt transfer paper and a color inkjet printer. Once you have the design the right size and the right shape (with the hole for your name, card number, and expiration date), print it out onto t-shirt transfer paper then cut the design out with scissors. You then put spray mount on the card, peel the backing from the transfer paper and place the design on the card. Put the ironing paper that comes with the t-shirt transfer paper over the card on an ironing board or reasonable facsimile. Preheat iron to "low." Iron the card for 15 seconds. Check if the design adheres. If not, iron for 15 more seconds. But be careful, lest you melt your credit card with too much heat. Let cool. After the card has cooled cut away excess transfer paper with a mat knife.
Sometimes the best design for a credit card is the one that brings you the lowest interest rate. Once you have that, if it isn't beautiful enough for you, then skins are the way to personalize your card into a statement about yourself.
Thursday, November 12, 2009
Will Debt Management Plans Affect Your Credit Score?
Debt needs to be handled properly if you want to eliminate it. You may need to enroll into a debt management plan to give your more breathing room in your monthly budget. But, you have heard that debt management plan may badly hurt your credit, is that true?
At the time you start delay your debt payments you are hurting your credit. The longer you let your bad financial situation as it is, the more you hurt your credit score. There is no way out of debt except you pay it off. Therefore, when you enroll a debt management plan, you are putting a solution to resolve your debt issue. If comparing to a problem without a solution, a debt management plan won't hurt your credit score as much as you may think. However, using it to pay off debt may make you difficult to qualify for new credit. But, when you clear it off by following the schedule in the plan, you can always recover your good credit later.
In order to minimum the impact that may hurt your credit score, you can always take a few precaution steps to protect it:
1. Choose a debt-management plan wisely
It is so important to choose a debt management program carefully because if the agency that misses or late in making your payment to your creditors, your credit record will be jeopardized. You have to select a credit counseling service with good reputation and reliable in helping you to get rid of debt successfully. In addition, enrollment and monthly fee for a debt management plan may vary from one agency to another. Some agencies may charge a few hundreds a month while other may only cost $20 or less. You may have to take into consideration of the monthly fee as it will be a huge lump-sum when being add-up for years as the plan may take a few years until you fully pay off your debt.
2. Make on-time payment
Late payment hurt more than the debt management plan itself. You have to protect your credit score by ensuring you make your monthly payment to your account on-time. Always pay early and allocate enough time for your check to be cleared and transfer to your account so that the credit counseling agency can pay your creditors on-time. Although there will be comments stating you are paying an account through a credit counseling agency in your credit report. The comments won't hurt your credit score in the least.
3. Monitor your debt counselor
Even though you make payments to your account on-time, but if the credit counseling agency makes late payment to your creditors, your credit score will also be affected. Therefore, you should ensure that your creditors are paid on-time by monitoring your credit bills carefully. If you discover a problem with bills paid through your debt management account and the problem is not resolved by the credit counselor, then report the company to a local consumer protection agency or file a complaint at the Better Business Bureau.
Summary
Enrolling into a debt management plan won't hurt your credit score as badly as your may think. But, it does affect the easiness of your future credit application. However, you could minimize the negative impact of debt management plan by following the above steps.
At the time you start delay your debt payments you are hurting your credit. The longer you let your bad financial situation as it is, the more you hurt your credit score. There is no way out of debt except you pay it off. Therefore, when you enroll a debt management plan, you are putting a solution to resolve your debt issue. If comparing to a problem without a solution, a debt management plan won't hurt your credit score as much as you may think. However, using it to pay off debt may make you difficult to qualify for new credit. But, when you clear it off by following the schedule in the plan, you can always recover your good credit later.
In order to minimum the impact that may hurt your credit score, you can always take a few precaution steps to protect it:
1. Choose a debt-management plan wisely
It is so important to choose a debt management program carefully because if the agency that misses or late in making your payment to your creditors, your credit record will be jeopardized. You have to select a credit counseling service with good reputation and reliable in helping you to get rid of debt successfully. In addition, enrollment and monthly fee for a debt management plan may vary from one agency to another. Some agencies may charge a few hundreds a month while other may only cost $20 or less. You may have to take into consideration of the monthly fee as it will be a huge lump-sum when being add-up for years as the plan may take a few years until you fully pay off your debt.
2. Make on-time payment
Late payment hurt more than the debt management plan itself. You have to protect your credit score by ensuring you make your monthly payment to your account on-time. Always pay early and allocate enough time for your check to be cleared and transfer to your account so that the credit counseling agency can pay your creditors on-time. Although there will be comments stating you are paying an account through a credit counseling agency in your credit report. The comments won't hurt your credit score in the least.
3. Monitor your debt counselor
Even though you make payments to your account on-time, but if the credit counseling agency makes late payment to your creditors, your credit score will also be affected. Therefore, you should ensure that your creditors are paid on-time by monitoring your credit bills carefully. If you discover a problem with bills paid through your debt management account and the problem is not resolved by the credit counselor, then report the company to a local consumer protection agency or file a complaint at the Better Business Bureau.
Summary
Enrolling into a debt management plan won't hurt your credit score as badly as your may think. But, it does affect the easiness of your future credit application. However, you could minimize the negative impact of debt management plan by following the above steps.
Monday, November 2, 2009
Loans For Unemployed By Joseph Kenny
It is one of life’s small cruelties that the times when you need credit most badly, are also the times when lenders are least willing to give it to you. When you are finding it hard to meet your obligations, your car payments are behind, your credit cards are all fully loaded, and you’re barely meeting your rent or mortgage payments, your credit score takes a nose dive. Even if you are meeting all your payments, credit reporting companies can show lenders that you are at your limit, that you’re fully extended on all existing lines of credit, and you’ve been searching vigorously for more. This will be looked on very poorly by lenders and make them much less inclined to lend to you.
Between Jobs
One of the periods when you are most likely to be in this sort of situation is when you are between jobs. There are a million reasons why you might lose your job, many of which will not be your fault, and if you are unlucky enough to have this happen to you when you’re under heavy debt, then things can quickly get out of hand.
It may seem like stating the obvious, but the surest way to get out of this situation is to find a new job as soon as possible. In many cases you can be back to work within a month or two so if you have enough money to keep you afloat for this period you will be ok. However it is not always easy to find a new job quickly, especially if the reason you lost your original job is due to difficult conditions in your industry or area.
Insurance
The other thing you might consider is credit protection insurance. This is an insurance policy you will need to have taken out before you lost your job. If you did, there is a good chance you will be covered for exactly this situation. Most credit protection plans provide that if you lose your job through no fault if your own, they will kick in the meet your repayments for you, until you can get another job. They have many strict conditions, for example, they will probably expect you to accept the first job offer you get, even if it does not pay as well as your last job etc.
Alternatives
The other option is to borrow some money to tide you over till you get a new job. While it may seem unlikely that a lender will lend to a person who is out of employment, there are situations when they will lend to you. If you can demonstrate a good previous repayment record, and have very good prospects of finding a job soon, they may be willing to back you, especially if you have security such as your home to offer them. If you do opt for this route however, make sure you are very confident of finding employment before putting your home at risk.
Resource: http://www.isnare.com/?aid=19805&ca=Finances
Subscribe to:
Posts (Atom)
