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.
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