Tag Archive | financial

Why Dividend Yielding Stocks Are Essential to Your Portfolio

investment portfolioThere are many portfolio management strategies to consider when investing your money, but the first and most important is one that relates to diversification. When your investment portfolio is properly diversified, you will have protection from a downturn in the economy, and at the same time, you will have potential for growth. The first step in achieving this is with dividend yielding stocks. The following are three observations about this type of stock.

Dividend yielding stocks can grow in value

Many investors do not realize that companies that pay dividends have a tendency to grow over time. The reason why they pay dividends is because they are profitable companies. Some of these profits are invested back into the company, and this leads to further growth. Of course, without paying dividends, there would be more money to invest in the company. This could lead to higher share values, but the idea that paying dividends will restrict the growth of the company’s future stock price is incorrect. A company can pay both a dividend and increase the value of the company and the stock price over time.

Dividends can be reinvested

There is no law saying you must spend your dividend or even invest it elsewhere. You can take the money paid to you and purchase more stock. Over time, your number of shares will increase, so when you reach the age of retirement, you will have a large number of shares, each paying dividends. This type of company has a reputation for being a solid investment to those on a fixed income, so you will have the perfect retirement vehicle, and a portion of your stock holdings came from reinvesting your dividends.

The key to buying dividend yielding companies

When looking for companies to invest in that pay dividends, the focus should be on consistency. Over time, a company should have paid dividends to its shareholders most of the time. The reason for this is that it is too easy for a younger company to pay a large dividend. Although this high dividend will attract lots of attention, the truth is that the company will not be able to sustain a high yield for their investors for a long time. Older companies, those that are not as glamorous, will usually pay lower dividends, but are committed to paying those dividends to their shareholders.

There are many ways to diversify your investment portfolio, but diversification should begin with a stable, but growing, companies, and the best way to accomplish this is by buying stocks of companies that pay dividends.

Why the Country’s Economic Recovery is Vital

Charles PhillipsOne of the oft-debated issues in the US is what the country needs to do to achieve lasting economic recovery. Policymakers often disagree with each other on the cause of economic issues and what the appropriate steps to resolve these issues must be. However, one thing that most policymakers can agree on is that these decisions need qualified, expert advice.

What Types of Experience Are Needed?

The members of the President’s Economic Recovery Advisory Board serve as an example of people who have the right credentials to help fix economic problems. Looking up Charles Phillips Infor, for example, shows that economic experts frequently have educational backgrounds in more than one concentration. A mixture of technology, law, and business administration degrees makes it easier to provide sound economic advice. There are increasing numbers of professionals who obtain degrees in different areas of study for a more well-rounded experience.

Influence Outside the Business World

Phillips and many other professionals also have involvement in many other pursuits unrelated to running businesses that help their ability to offer economic advice. While these experiences do not supplant business experience by any means, they provide additional skills that no professional will want to be without in their career. Economic experts who have additional backgrounds have a much broader range of experiences to pull from in making decisions.

Military Experience

Former military members have a range of experiences that translate well into other areas of life. Veterans, especially officers, have learned to make decisions quickly under adverse conditions. A professional with a military background will often find it easier to make decisions under crisis. When the country is facing serious financial issues, economic experts who know how to make decisions under crisis situations are essential.

Cultural Experiences

Professionals who serve on the boards of museums and other cultural institutions know how important it is to maintain them for future generations. When economic times are tough, these institutions often feel the effects fairly quickly. Professionals who serve on the boards of these groups or have other relevant experience can help make the case for their preservation a lot more easily. In some areas of the US, a thriving cultural and arts community is essential to meaningful economic recovery.

Educational Experience

It is also not uncommon for business professionals to serve on the boards of colleges and universities. When a professional has this sort of experience, it serves two important purposes. One, a professional involved with a state university can easily underscore how important their need for funding is. Another advantage of involvement with a university is knowing which programs students are most interested in and whether they will benefit the economy. A director on the board of a school can help make the case for students to get an education in the most beneficial concentrations.

Economic experts have the right tools to bring about recovery. However, it makes a major difference when these experts know how to present their ideas in effective ways. Bringing in additional, non-business experience does help professionals under these circumstances. Experts who can work together can bring about meaningful changes.

How to Set Financial To Not a Wasteful

financial plansMonthly payroll runs no trace? It was difficult to save? Current salary is not enough? If the answer is yes, you are not alone, many people are experiencing the same problem, regardless of their nominal salary. Maybe you’ve thought if your salary rises surely the problem is solved. In fact, this problem is not endless and indiscriminate salary. So how to avoid wasteful? Here are the steps.

1. The first step, allocate at least 10% of the income / monthly salary to set aside in savings as a reserve fund. Trends, if we wait for the rest of the end of the month to save or invest, the probability is very small. Therefore, the allocation of savings / investment must be made in the beginning. In order for discipline, for education savings account that uses the auto debit facility from the bank where you receive a salary transfer. Set the date auto debit day after payday date. Bother coming to the bank? No bank account opening facilities of Internet banking without having to come to the branch.

2. Know your spending items in detail. If lazy to record routine in an excel file, download the app on your smartphone registrar cash flow. (As a reference, try using Toshl for Android users) Write down every night after the activity or the morning when starting work, or whenever you are holding the gadget. Routine to do this every day. No need to wait until receiving a salary, just start today up to 30 days.

3. From the data that you noted earlier for a month, will form the pattern of expenditure. For example, transportation and meal turned out to spend 50% of the salary / income, weekend entertainment to the mall apparently spent 20% of salary, and so on. Armed with the data last month, draw up a budget for the next month. Divide budget into a daily and weekly expenses, including for entertainment at the end of the week. Further Discipline to go to the ATM once a week take only nominal weekly.

4. Setting the account. Have two accounts, one for the account receive a salary / income (account A) and one for daily expenses (account B). After receiving a salary, the transfer of a number of monthly living expenses from account A to account B (account B only contains money monthly living expenses) and only carry an ATM card from the account B every day. Account A is only used to pay monthly bills such as savings / investment, electricity, water, child school fees, etc. and leave the ATM card account A at home. This way you can discipline your own financial budget.

5. Be careful to distinguish between needs and wants. Eating is a necessity, but the meals are craving. Gadgets / smartphone probably is a need, but buy a new gadget every exit is the latest type of desire. Lunch in the office canteen is a necessity, lunch at the cafe / mall next to the office every day is desire. Desires that are the main reason for the financial wasteful every month. Prestige is the biggest cause why the salary is always sorely lacking.

6. Check the credit card as the card bailout, not card debt. That is, prior to swipe a credit card make sure that the funds to pay for it already owned. Pay full credit card bill every month.

7. Motivation. In order to regulate the financial discipline to undergo the steps above, have a purpose why you have to do all that. For those who are married and have children, keep in mind the cost of education is increasingly expensive and should be prepared from now. For those who are not married, have specific purposes such as holiday abroad, buying a gadget or branded goods without debt, fund married, fund the purchase of a house or even a pension fund.

8. Find information on financial planning / financial planning. Info about financial planning is now very widely circulated, on radio, television, internet, twitter, and very easy to access. For starters, you can read the articles on this website.

Managing finances is not easy. There will be many temptations and pressure environment, but you have to remain consistent and sticking to your goals.

Family Financial Arranges in Early Years

manage my financialIn addition to preparing the year-end party, Also means it is time to re-organize your financial planning in the year ahead.

Manage finances properly will provide many benefits, Including first Achievers the ideals of family, such as quality education for children, pension plan, buying a second home a bigger, buy a car, start a business / venture. Second, anticipating the family’s financial problems, such as up in debt. By doing financial planning, the risks that may Arise can be anticipated. Thirdly, there is always the control of financial flows in and out of the family, so it could be detected well and there is no “Bigger stake than the pole”

What should be re-done at the beginning of this year in managing the family finances?

1. Evaluation (review)

Time to reopen and gather all of your financial records and see how your financial situation this year. Is it in accordance with the planning at the beginning of the previous year? If it is Appropriate, you can continue or be added to the next year’s plan. If not fit, you need to check in advance where it Died, so the error will not happen back in 2015 this plan.

2. Financial Check Up.

Know all your expenses and income. After an evaluation, the first thing to do is to identify what your family expenses and especially knowing where your only source of financial income and how much. The first stage is important to Recognize your financial capabilities.

3. Arrange Financial Goals

Why do many people have financial problems? Insufficient income the cost of living, cannot even pay the debt? Turns out the main reason is Because they do not plan where the money they have to be used. Important elements in good financial planning, financial goals are clear. There are two (2) factors that we have to Consider in setting financial goals items, namely the duration and type of needs.

Based on the time period, we can divide Become financial goals:

• Starting with the current financial purposes, meaning that the fund in the form of liquid available as a source of funds to provide for the family, ranging from the purpose of payment of electricity, telephone, school fees, transport, up to the needs at the end of the week, such as eating in a restaurant, roads. This requirement needs to be designed and budgeted funds that can be controlled on a regular basis every month.

• Short-term financial goals are only taking 1 year to Achieve (e.g. Saving to buy a motorcycle, a laptop) or the funds for the purposes of a family vacation can be planned repeated every year.
• While the medium-term financial goals is a plan that takes 2 to 5 years to Achieve (e.g. Investment to provide children’s education expenses, buying a home).

What about the needs of your children’s education? Supposes next year your child starting school from, whether the investment you’ve done the previous year are sufficient for school fees? If you have not been allocated, you only have to have 1.5 years to prepare ahead of the new school year next year. Nowadays we know that the longer fund education will increasingly burdensome bag you as a parent, but the Earlier we prepare through investment ( ” The Variety Of Shapes on Investment ”  ) will Become lighter to do.

Long-term financial goals. Your purpose is Categorized as a minimum in the next 5 years. Whether the investment for purposes of your own pension fund in accordance with the targets until the end of this year? are the investment products we choose are in accordance with the requirements? If it is Appropriate, you continue with the design of the investments made the previous year. If not done, Immediately calculate your retirement funding needs from now on, and Immediately invest to meet them. Do not be put off! Also think how to Achieve it, perhaps by setting aside separate funds each month for the purpose.

Emergency Fund needs Also need to be prepared as a protection or money precaution on the risk of death / accident on yourself as a funding source provider of the family.

While based on the type of requirement, you can divide the financial goals into three types of goods, such as consumer goods, i.e. Goods that we routinely use, relatively cheap price, but it needs to be large enough accumulated annually (e.g. The need toothpaste, bath soap, laundry soap, shampoo, groceries). Next is durable goods, i.e. Goods that are rarely purchased, the price is relatively expensive, but can be used for a long time, at least 3 years, so as to fulfill before we can the make investments (e.g. Cars, motorcycles, TV). And the last is the intangible goods, are goods that cannot be touched, but very Necessary for your family items, namely medical expenses, education expenses, your retirement living expenses, the cost of a vacation. The need for these items can be customized as per priority when the goods are needed, whether it should be Provided Immediately or they can be delayed to meet the needs of others first.

The next step of preparing the family’s financial goal is to do the classification of our financial goals and priorities based on both the above categories.

4. Create a Family Budget.

Next the make your shopping budget. Calculate the costs. At this stage it should be made very detailed with a nominal value of dollars already incorporate the budget for each institute to all financial goals, Including basic needs of your family.
Most importantly, the values ​​you entered is reasonable numbers, so you can know the approximate real conditions of your family’s needs for a year ahead.

Inflation is an important factor that should be included in the calculation of the cost that you’ll need in the future.

5. Execution

Do what you already collated in the financial plan.

6. Commitment

Good financial planning, without accompanying discipline would have no meaning. So there needs to be a commitment to discipline you will be running your own family financial plan.

7. Back to Evaluation

Evaluation is important to Determine Whether your financial plan is still Appropriate. E.g. investment for the purpose of education of children are reviewed restaurants on a regular 3-monthly basis from, whether the results are in accordance with the expectations of investment return is expected, if there is an increase of the value of money in the school, so that the value of your investment should be Increased?

But do not Also too strictly monitor your investments, your financial goals Because stacking is a medium or long term.
Finally, if it was easy not Regulated financial family done with a good plan and Carried out Gradually and discipline?
You and your family will be Able to enjoy your vacation plans in the coming years with calm without worries overshadowed an error Occurs excessive expenditure of funds from sources of funding your family.

The Variety Of Shapes on Investment

time to investIn the modern era at the moment, Investing has become a promising new business land. In a world that increasingly today everything is growing, the investment has already been sought and is run by many people. Not just the money that could be invested, this time in gold, property, apartment, even bonds can be used as ingredients or capital for investment. It is causing growing investment coverage today is increasingly widespread.

There are actually several types or kinds of investment. And most people only know about investing and yet understand about the actual investment. In investing, in general, there are two types of assets, i.e. assets of real and financial assets. A real asset is an asset that has existed. For example land, gold, home, and other precious metals. Investing in real assets are financial Assets while the public, i.e. assets that his form is not visible, but still have a high enough value. In general, there are financial assets in the world of banking and capital markets. Some examples of financial assets such as money market instruments, equities, mutual funds and bonds. Both these assets equally could be considered as a means of investment in order to achieve financial goals you want. In investing, there are some that should be kept in mind that there is always a risk of losing capital. Therefore, the very need to figure out properly matching assets you choose to invest according to your needs and requirements.

All kinds of investment

The following are the types and various forms of investment that you need to know:

1. Mutual Fund

Tthat is the container that is used to gather the funds of the society are managed by a legal entity named investment manager to then invest into other financial assets. The funds are typically deposited in banks of storage, which is called by the custodial bank. Mutual funds are a solution for people who want to invest in a lot of assets but has limited funds. This is possible due to the funds collected from many parties, large enough to then be invested in stocks, bonds and money market instruments in accordance with the policy of investment managers.

In addition, mutual funds are also a solution for those of you who have limitations in knowledge and information in conducting investment analysis, as well as for those of you who do not have enough time to keep an eye on the daily movements of stocks and bonds.

2. Foreign currency

All kinds of foreign currencies can usually be used as investment tools. Investments in foreign currencies are higher risk compared to other investments such as stocks, especially if the value of the foreign currency has a free-floating (free float) that really depends on the demand and supply in the market. Foreign currency float freely making the value of the currency is so volatile.

3. Property

Investment in property means investment in the form of land or houses. The advantages to be had from the property, i.e., rent the property to the other party so get the rent or sell the property with higher prices.

4. The goods collection

Usually collectible items such as stamps, paintings, antiques, rings, a dagger, and others. The benefits of investing in collectibles is to sell the collection to other parties who likes to stuff the collection. If the person we offered the goods like the stuff that normally could buy at a price that is high enough. Continue reading

What are Investment Management Companies?

Investment Management CompaniesAn investment management company will make investment choices for a wide range of clients. The company will invest in many different types of assets such as stocks and bonds, real estate and more. According to Pete Briger, investment managers will not only help their clients get a good return on investments, they will also help them realize their financial goals.

Who Makes the Investments?

An investment management company will employ various professionals who specialize in different aspects of financial management. These professionals, called investment consultants, know how to analyze assets to select the right one for their clients’ portfolios. They also regularly monitor these portfolios for performance and may make changes as necessary.

What is an Investment Consultant?

Investment consultants are different from investment brokers. Brokers execute trades and investment transactions for their clients. Consultants do much more than help with transactions. They suggest ways in which their clients can invest money. Their clients may be wealthy individuals, or companies that invest for profit. Consultants also suggest strategies and inform their clients about risks. Consultants may suggest ways to diversify portfolios to minimize risk.

Investment consultants take into consideration the long term for their clients. This means they craft investment plans that offer the best chance of giving a good return no matter what is the volatility or conditions of the market. Consultants also help their client’s about the tax burden of a particular investment, to minimize the client’s overall tax burden.

The Benefits of an Investment Management Company

An individual needs to decide if the fees that are charged by an investment management company are worth the returns on his or her investment. Most management companies have the means to provide higher returns that are ordinarily seen on market investments. This will depend on their philosophy and process for investing. The consultant’s job is one of responsibility and accountability for the client. It is their duty to maximize the profits for their clients and not just make their own income.

Different Types of Consultants

Financial consultants will have the right credentials to invest your money. There are two things you must know about your adviser. One is how does he or she get paid. Advisers, who are fee-only, do not get commissions for selling certain kinds of products. The second thing to know is if your adviser is a fiduciary. This means they must act in your best financial interest.

Certified Financial Planner is a very qualified to advise you about your financial situation including long-term goals, and estate planning. This is the person you want for investment advice. You can make money investing if you have good advice from a qualified person.