Personal Finance

Debt Settlement And Investment: How Are They Related?

2009-09-11T15:58:00.000+08:00

You choose an investment vehicle on the basis of its return on investment or ROI. There are different forms of investment vehicles such as stocks, bonds, pension funds, forex trading and so on. Among all these, forex trading has undoubtedly become the most popular form of investment due to the multitude of benefits it provides. How can investment be related to debt settlement? If you have fallen into a debt trap and looking for options to dig yourself out, investing wisely can make you debt free.

If you have discussed with a credit counselor about your financial situation and he has recommended that you go for a debt settlement program after reviewing your financial condition comprehensively, you should sincerely start thinking about the funds that are necessary for settling your debts. If you are getting steady returns from forex trading or any other forms of investment, the credit counselor might advise that the proceeds received from forex trading can be utilized for debt settlement. If your profits are not adequate for fulfilling your monthly obligations, you can utilize the income received from your investment and a part of your salary income (or regular source of income) for settling your debts. What takes place in debt settlement and how can investment help you settle your debts?

When you sign up for a debt settlement program, you don’t make any direct payments to your creditors. You make deposits into a trust account for a significant period of time. As soon as your trust account accumulates adequate cash, the debt settlement company engaged by you begins negotiations with your creditors. As a result of the negotiation, you arrive at paying a much lower amount than you’re obliged to pay. The overall amount owed by you can be lowered to the extent of 40%-60%.

Hence, the profits gained from your investment vehicle (for example, forex) can assist you to make deposits into the trust account. In this manner, investment can support a debt settlement program. The advantages provided by the forex market should not be underestimated. It is known for high liquidity, high profitability and you require a nominal amount of cash to begin with. The forex market operates 24 hours a day and at any moment, one trading hub stays open for buying and selling. The most important benefit is that no single industry or government can regulate the yields hence if you are familiar with the techniques of foreign currency trading, it would not take much time for you to get back on track.

How to find a good lender for bad credit refinance loans

2008-09-17T12:00:00.002+08:00

Economy crash, your job is in risk, living cost is hiking and your personal finance need to rearrange. You really need to refinance your home loan and you knew that you have a bad credit record. So how you are going to find a very good lender?

In this tremendous economy crisis you may find many lenders out there offering variety of choice. Yes, interest is down now but still you need to be careful since many finance institutions have a big problem now.

Check Your Personal Finance

Here I mean is your credit records. You should have all the information needed and evaluate by your own and not totally depends on credit reporting company. You compare both and if there is any mistake, consult with the company.

You should calculate your credit score because higher score means lower rate you need to pay for the refinance vice verse. This is to make sure you be prepared to details from a lender. So that you don't get shock if the rate suggest higher than you hope for.

Make comparison between lenders

Get as much information for every possible lenders for your refinance. Check their interest rates, type of loan, period of repayment and any related information such as their track record. You may use online tools to find the information and compare the quotation. Most of the finance institution provide tools such to calculate your interest rate, period of repayment, scheduled of repayment based on your credit. So check around.

When you have all those information from all possible lenders, check carefully. Make a comparison for interest rate and fees charge. You should know how much you can afford to pay monthly and how long you plan to pay. Then you need to total up the fees and interest with amount of loan. That amount is your exact total payment.

The Decision

After you compare the information between lenders, now is time to make a decision. Don't made your decision because of the how good the mortgage lenders persuade you. Decide based on your need and the most reasonable interest rate and fees.

Read through the offers in details. Understand carefully the terms and conditions to confirm that there is no hidden facts such as extra fees or penalty charge. If possible bring partner which can assist you through reading the offers. This is the most critical phase always neglected by borrowers and the cost is very high later. After you sign the paper, nothing can be change anymore.

Some companies allow you to process the loan through online. You can fulfill the form given and they will provide the quotes for you also through online. In this case, no emotion judgment because of the agents, just you and the quotation. You may want to check this out. It is more faster and cheaper compare to you went around from one company to another.

That's it, do what you need for your own personal finance.

To your personal finance's success!

What is your personal finance plan for retirement?

2008-09-17T11:43:00.003+08:00

You should have personal finance plan for your retirement. It doesn't matter how old are you now, it is very important step you should not avoid to assure your comfort during your old age. Maybe you just start your job, just married or five years towards retire. What ever stage, you should plan for your financial security when you not work anymore.

At the moment you need to leave your job you should already have financial security in term of saving or investment. At that time some of you may have a pension fund from government and some of you will not. I believe pension fund alone is not enough to survive in the economy condition nowadays. If you not have any pension fund than you might be more suffer. That's why you need a retirement plan.

As I said earlier, it doesn't matter how old are you now, you need to start saving or invest for your retirement now if you not start yet. You should not be regret later if you are not doing so. If you start saving or invest early, you will accumulate much more money by the moment you retire compare to start later. But better been late than nothing.

The advantage of start saving early is you only need to put aside a small amount of money, maybe $100 monthly or 10% of your income if possible. Again if you start saving early, you have a longer period of investment towards retire. So, you can invest your money into stocks, bonds or mutual funds where that kind of investment contain risk and need long term of investment. You not in hurry to cash your money. That kind of investment will give you higher return compare to saving your money into saving or current account.

I suggest you read any suitable resource such as books, magazine or from internet to learn how to plan, type of investment and what ever information you need. Usually they provide you a worksheet to fill for your plan for retirement and also there is calculator to helps you decide how much amount you need to saving monthly. You can estimate how much money you will accumulate by the time you retire depends on your monthly investment.

If you thought you don't have enough money to invest monthly, you better find solution to that problem. Do some extra work or change your job now if you have other opportunity with higher income. You better find ways now than suffer during your old. There are also many money management company which provide retirement plans program which assist you in managing your financial plan for retirement. If you feel you need help, find them. But make sure they are legal.

Life needs balance. So enjoy your life today but still plan for your future. The decision is in your hand. Let you control your finance not your finance control your life.

To your financial freedom!

When you should start saving your money?

2008-09-15T14:06:00.002+08:00

You young, just start your career and you have so many lifetime to enjoy. But, are you ready to put aside some amount of your money for saving? Do you have plan for your personal finance? Yes, you may think that you are far away from retire and you can wait for another few years.

Do you know about compounding? It is about the growth of your money. The fact is, if you save money from the early age the total amount of your saving will be much more higher compare to if you start saving late. It because the longer the period of your saving the higher total amount of of your saving. Of course this consider you saving the money whether in bank, mutual funds or any financial institution.

How about if you are at late 30s or early 40s? You spend too much and suddenly you realize you don't have any saving and never thought about personal finance? You should be serious by now. No more delay. It's may be late but better be late than nothing.

You should consider your spending routine now to forecast how much you need when you are retire. When you have estimation of how much you need, you need to know how many years left consider you start saving now. From that, you need to learn about type of investment suitable for you because by saving only into the local bank with return about 2-3% yearly will never give you much. You need to really study about saving and personal finance because otherwise you will be regret later. If possible find expert in personal finance management to assist you achieve your target.

You may been scared if you know how exactly your financial position at the moment. But it better scared now than living poor at the old age.

Choosing a Broker

2008-06-07T14:24:00.000+08:00

Depending on the type of investing that you plan to do, you may need to hire a broker to handle your investments for you. Brokers work for brokerage houses and have the ability to buy and sell stock on the stock exchange. You may wonder if you really need a broker. The answer is yes. If you intend to buy or sell stocks on the stock exchange, you must have a broker.

Stockbrokers are required to pass two different tests in order to obtain their license. These tests are very difficult, and most brokers have a background in business or finance, with a Bachelors or Masters Degree.

It is very important to understand the difference between a broker and a stock market analyst. An analyst literally analyzes the stock market, and predicts what it will or will not do, or how specific stocks will perform. A stock broker is only there to follow your instructions to either buy or sell stock… not to analyze stocks.

Brokers earn their money from commissions on sales in most cases. When you instruct your broker to buy or sell a stock, they earn a set percentage of the transaction. Many brokers charge a flat ‘per transaction’ fee.

There are two types of brokers: Full service brokers and discount brokers. Full service brokers can usually offer more types of investments, may provide you with investment advice, and is usually paid in commissions.

Discount brokers typically do not offer any advice and do no research – they just do as you ask them to do, without all of the bells and whistles.

So, the biggest decision you must make when it come to brokers is whether you want a full service broker or a discount broker.

If you are new to investing, you may need to go with a full service broker to ensure that you are making wise investments. They can offer you the skill that you lack at this point. However, if you are already knowledgeable about the stock market, all you really need is a discount broker to make your trades for you.

Determine Your Risk Tolerance

2008-06-07T14:22:00.000+08:00

Each individual has a risk tolerance that should not be ignored. Any good stock broker or financial planner knows this, and they should make the effort to help you determine what your risk tolerance is. Then, they should work with you to find investments that do not exceed your risk tolerance.

Determining one’s risk tolerance involves several different things. First, you need to know how much money you have to invest, and what your investment and financial goals are.

For instance, if you plan to retire in ten years, and you’ve not saved a single penny towards that end, you need to have a high risk tolerance – because you will need to do some aggressive – risky – investing in order to reach your financial goal.

On the other side of the coin, if you are in your early twenties and you want to start investing for your retirement, your risk tolerance will be low. You can afford to watch your money grow slowly over time.

Realize of course, that your need for a high risk tolerance or your need for a low risk tolerance really has no bearing on how you feel about risk. Again, there is a lot in determining your tolerance.

For instance, if you invested in the stock market and you watched the movement of that stock daily and saw that it was dropping slightly, what would you do?

Would you sell out or would you let your money ride? If you have a low tolerance for risk, you would want to sell out… if you have a high tolerance, you would let your money ride and see what happens. This is not based on what your financial goals are. This tolerance is based on how you feel about your money!

Again, a good financial planner or stock broker should help you determine the level of risk that you are comfortable with, and help you choose your investments accordingly.

Your risk tolerance should be based on what your financial goals are and how you feel about the possibility of losing your money. It’s all tied in together.

Determining Where You Will Invest

2008-06-07T14:19:00.000+08:00

There are several different types of investments, and there are many factors in determining where you should invest your funds.

Of course, determining where you will invest begins with researching the various available types of investments, determining your risk tolerance, and determining your investment style – along with your financial goals.

If you were going to purchase a new car, you would do quite a bit of research before making a final decision and a purchase. You would never consider purchasing a car that you had not fully looked over and taken for a test drive. Investing works much the same way.

You will of course learn as much about the investment as possible, and you would want to see how past investors have done as well. It’s common sense!

Learning about the stock market and investments takes a lot of time… but it is time well spent. There are numerous books and websites on the topic, and you can even take college level courses on the topic – which is what stock brokers do. With access to the Internet, you can actually play the stock market – with fake money – to get a feel for how it works.

You can make pretend investments, and see how they do. Do a search with any search engine for ‘Stock Market Games’ or ‘Stock Market Simulations.’ This is a great way to start learning about investing in the stock market.

Other types of investments – outside of the stock market – do not have simulators. You must learn about those types of investments the hard way – by reading.

As a potential investor, you should read anything you can get your hands on about investing…but start with the beginning investment books and websites first. Otherwise, you will quickly find that you are lost.

Finally, speak with a financial planner. Tell them your goals, and ask them for their suggestions – this is what they do! A good financial planner can easily help you determine where to invest your funds, and help you set up a plan to reach all of your financial goals. Many will even teach you about investing along the way – make sure you pay attention to what they are telling you!

Different Types of Bonds

2008-06-07T14:17:00.000+08:00

Investing in bonds is very safe, and the returns are usually very good. There are four basic types of bonds available and they are sold through the Government, through corporations, state and local governments, and foreign governments.

The greatest thing about bonds is that you will get your initial investment back. This makes bonds the perfect investment vehicle for those who are new to investing, or for those who have a low risk tolerance.

The United States Government sells Treasury Bonds through the Treasury Department. You can purchase Treasury Bonds with maturity dates ranging from three months to thirty years.

Treasury bonds include Treasury Notes (T-Notes), Treasury Bills (T-Bills), and Treasury Bonds. All Treasury bonds are backed by the United States Government, and tax is only charged on the interest that the bonds earn.

Corporate bonds are sold through public securities markets. A corporate bond is essentially a company selling its debt. Corporate bonds usually have high interest rates, but they are a bit risky. If the company goes belly-up, the bond is worthless.

State and local Governments also sell bonds. Unlike bonds issued by the federal government, these bonds usually have higher interest rates. This is because State and Local Governments can indeed go bankrupt – unlike the federal government.

State and Local Government bonds are free from income taxes – even on the interest. State and local taxes may also be waived. Tax-free Municipal Bonds are common State and Local Government Bonds.

Purchasing foreign bonds is actually very difficult, and is often done as part of a mutual fund. It is often very risky to invest in foreign countries. The safest type of bond to buy is one that is issued by the US Government.

The interest may be a bit lower, but again, there is little or no risk involved. For best results, when a bond reaches maturity, reinvest it into another bond.

About Online Trading

2008-06-07T14:01:00.000+08:00

The invention of the Internet has brought about many changes in the way that we conduct our lives and our personal business. We can pay our bills online, shop online, bank online, and even date online!

We can even buy and sell stocks online. Traders love having the ability to look at their accounts whenever they want to, and brokers like having the ability to take orders over the Internet, as opposed to the telephone.

Most brokers and brokerage houses now offer online trading to their clients. Another great thing about trading online is that fees and commissions are often lower. While online trading is great, there are some drawbacks.

If you are new to investing, having the ability to actually speak with a broker can be quite beneficial. If you aren’t stock market savvy, online trading may be a dangerous thing for you. If this is the case, make sure that you learn as much as you can about trading stocks before you start trading online.

You should also be aware that you don’t have a computer with Internet access attached to you. You won’t always have the ability to get online to make a trade. You need to be sure that you can call and speak with a broker if this is the case, using the online broker. This is true whether you are an advanced trader or a beginner.

It is also a good idea to go with an online brokerage company that has been around for a while. You won’t find one that has been in business for fifty years of course, but you can find a company that has been in business that long and now offers online trading.

Again, online trading is a beautiful thing – but it isn’t for everyone. Think carefully before you decide to do your trading online, and make sure that you really know what you are doing!

Why Should I Make a Budget?

2008-06-07T14:00:00.001+08:00

You say you know where your money goes and you don’t need it all written down to keep up with it? I issue you this challenge. Keep track of every penny you spend for one month and I do mean every penny.

You will be shocked at what the itty-bitty expenses add up to. Take the total you spent on just one unnecessary item for the month, multiply it by 12 for months in a year and multiply the result by 5 to represent 5 years.

That is how much you could have saved AND drawn interest on in just five years. That, my friend, is the very reason all of us need a budget.

If we can get control of the small expenses that really don’t matter to the overall scheme of our lives, we can enjoy financial success.

The little things really do count. Cutting what you spend on lunch from five dollars a day to three dollars a day on every work day in a five day work week saves $10 a week… $40 a month… $480 a year… $2400 in five years….plus interest.

See what I mean… it really IS the little things and you still eat lunch everyday AND that was only one place to save money in your daily living without doing without one thing you really need. There are a lot of places to cut expenses if you look for them.

Set some specific long term and short term goals. There are no wrong answers here. If it’s important to you, then it’s important period.

If you want to be able to make a down payment on a house, start a college fund for your kids, buy a sports car, take a vacation to your dream place… anything… then that is your goal and your reason to get a handle on your financial situation now.

Rebates - Reward or Rip Off

2008-06-07T13:55:00.001+08:00

Rebates have become increasingly popular in the last few years on a lot of items and certainly on electronic items and computers. Rebates of $20, $50 or $100 are not uncommon.

I’ve even seen items advertised as “free after rebate”. Do these rebates come under the heading of “too good to be true”? Some of them do and there are “catches” to watch out for but if you are careful, rebates can help you get some really good deals.

The way a rebate works is that you pay the listed price for an item then mail in a form and the bar code to the manufacturer and they send you a refund thus reducing the price of what you paid for the item except with a time delay of several weeks.

Rule #1. Rebates from reputable companies are usually just fine.
You can be pretty sure you will get the promised rebate from Best Buy, Amazon or Dell but you should probably not count on getting one from a company you’ve never heard of. If you really want the product and are OK with paying the price listed then buy it but don’t count on actually getting the refund.

Rule #2. Check rebate expiration dates.
Many times products will stay on the shelf of a retailer after the date for sending in the rebate offer has expired so check that date carefully.

Rule #3. Be sure you have all the forms required to file for the rebate before you leave the store.
Rebates will almost always require a form to be filled out, a receipt for the purchase and a bar code.

Rule #4. Back up your rebate claim.
Make copies of everything you send in to get your rebate including the bar code. Stuff gets lost in the mail all the time and if the rebate is for $50 it’s worth the trouble to back up your claim.

Avoiding Impulse Spending

2008-06-07T13:51:00.002+08:00

Answer these questions truthfully:

Does your spouse or partner complain that you spend too much money?
Are you surprised each month when your credit card bill arrives at how much more you charged than you thought you had?
Do you have more shoes and clothes in your closet than you could ever possibly wear?
Do you own every new gadget before it has time to collect dust on a retailer’s shelf?
Do you buy things you didn’t know you wanted until you saw them on display in a store?

If you answered “yes” to any two of the above questions, you are an impulse spender and indulge yourself in retail therapy.

This is not a good thing. It will prevent you from saving for the important things like a house, a new car, a vacation or retirement. You must set some financial goals and resist spending money on items that really don’t matter in the long run.

Impulse spending will not only put a strain on your finances but your relationships, as well. To overcome the problem, the first thing to do is learn to separate your needs from your wants.

Advertisers blitz us hawking their products at us 24/7. The trick is to give yourself a cooling-off period before you buy anything that you have not planned for.

When you go shopping, make a list and take only enough cash to pay for what you have planned to buy. Leave your credit cards at home.

If you see something you think you really need, give yourself two weeks to decide if it is really something you need or something you can easily do without. By following this simple solution, you will mend your financial fences and your relationships.

Some Reputable Online Stock Brokers

2008-06-07T13:45:00.001+08:00

In this section we’ll look at a handful of established online broker companies that you may wish to consider opening your first account with. Remember however that as time goes by, so the deals offered by online brokers change.

Online Stock Trading With Fidelity

Fidelity is a highly reputed online stockbroker and offers execution only stock trades for as little a few dollars. This online stockbroker has a good range of traders/investment tools available and a wide range of products may be traded including stocks, options, ETFs, Mutual Funds, IPO’s and more.

Trading Online With Scottrade

Another big broker with a very presence in the market, Scottrade offers a competitive price structure and has several portfolio tracking/management tools available for the trader including statistics and trending information. http://www.scottrade.com/

Etrade – Offers Free Stock Trades

At the time of writing Etrade was offering 100 commission free stock trades. As well as having good trending tools this is a good choice for options traders. https://us.etrade.com/e/t/home

TD Ameritrade – Interesting Deals For New Traders

Another esteemed online broker, Ameritrade offers competitive pricing, access to independent research and a range of investment tools for the trader. http://www.tdameritrade.com/

Schwab – Big Online Stock Broker With Wide Variety Of Investment Products

Schwab offers both investors and traders a wide range of investment products to trade. Traders get access to a wide range of research and tools to help them pick out winners. http://www.schwab.com/

Sharebuilder – Stockbroker With A Difference

If you have a very low capital base then Sharebuilder could provide an interesting option. With the Sharebuilder service investors can buy as many or few shares as they wish. http://www.sharebuilder.com/

I have to mention that I'm not work with any of above online brokers. I just want to share the informations with you.

Have a good online broker!

The Factors To Consider When Choosing An Online Stockbroker Account

2008-06-07T13:35:00.001+08:00

As you can imagine, there are a huge number of online stockbrokers trying to compete for your account. This high competition means that if you look around you’re likely to find an online stockbroker service that has low fees, good reliability and a fair amount of “bells and whistles”.

Before committing consider the following issues:

Low Commissions Aren’t Always Low

Look at the commission charges and structure of the different online broker companies. Some companies may display very low charges on their ads only for you to discover that the special unbelievable rate applies to certain sized trades, or kick in only after a number of trades have been executed. Also be on the lookout for admin or handling charges that are tagged onto some online broking accounts.

What Is The Minimum Amount Needed To Deposit?

If you’re a smaller, casual investor then an account that needs $10,000 deposited before you can open an account would not be suitable, even if the fees associated with each trade are quite low.

Do You Need Margin?

If So What Is The Rate? A margin account allows you to borrow money to trade with. Different online accounts have different rates for trading on margin so if you’re going to do this make sure you pick an account that’s best suited for this.

The Bells & Whistles

By this we refer to the type and depth of research available to account holders, whether there is any “back up” for problems that may be experienced, the track record of the company (if new it may experience the occasional glitch) and the level of detail available on the trading account. Some online brokerage firms also provide broker research on various companies, charting, relevant news-feeds and other valuable information that can help your trading and research.

Additional Phone Service?

Some online broker companies also make trading via phone, or at least some form of telephone support available. Always a benefit.

Reliability Of Service & How Well The Trades Are Executed

You may find an online broker service that has incredibly low fees…but which has frequent bouts of downtime where trades cannot be executed. This can be a frustrating and expensive experience, so ensure that your potential online broker service has a good level of reliability. What have others said about its service? Are there any reviews for it online?

The Advantages Of Having An Online Broker Over An Offline One

2008-06-07T13:28:00.001+08:00

We live in a new digital era and an increasing proportion of the worlds stock trading is being done online. Sophisticated technology means that someone in London can buy a NYSE stock within a minute with a few simple clicks of the mouse.

While there are some situations that may make having an offline broker advantageous, here are the primary benefits that come with having an online stock broking account:

It’s Far Cheaper To Trade Stocks Online – When a customer has a phone line and executes a trade via a live broker, it costs the company a lot of money to pay the brokers wages and have a physical location for that broker to operate from. When the same trade is done online, it’s an automated process handled by a system. This is far cheaper for the company allowing it to reduce the price it charges for execution only trade.

Faster Execution – With an online stock brokerage account, execution is immediate. There is no need to call a broker and wait while the trade is executed. In addition, online broking accounts enable the user to access their account status immediately via internet connection. In the offline world, a customer would have to wait for monthly statements or phone the stock broking company to know the exact status of their accounts.

Availability Of Tools To Help The Investor – Today, a lot of online broker houses provide key information, statistics and investment tools that can help keep the trader informed and help them to analyse stocks. Such services are rare with offline only options.

Here is my recommended link for you:
Stock Market Timing Signals for QQQQ and Mutual Funds

How To Open A Brokerage Account

2008-06-07T13:22:00.000+08:00

With the rise of digital fraud has come an increased amount of red tape to go through, for the individual who wants to open a stock brokerage account. Global issues such as money laundering has made it important for stock broking companies to put in place procedures to verify your identity.

Typically, here’s how a simple execution only broker account would be opened:

1. The potential account holder must provide information such as proof of address and national insurance number. Physical copies may also be requested in some cases.

2.The potential account holder must submit their bank account details.

3. A certain amount of cash must be deposited with the stockbroker to open the account. The actual amount varies depending on the stockbroker.

4.After all the details are processed the account will be opened for business.

What Do You Need From Your Stockbroker?

2008-06-01T02:20:00.000+08:00

There’s no “one size fits all” in the world of stock-broking. An old lady with a $200,000 inheritance to spend and no knowledge of investments will have a very different need from her broker than a swing trader who skips in and out of trades several times a week.

Here are some of the factors that will impact your choice of broker:

How much money you have to spend – those with budgets of $100,000 and more who would like a professional to invest it on their behalf may be best off with a discretionary service, particularly if they have a very limited knowledge of investing. Beware however that if you choose an advisory service of any type, if you’re putting less money on the table then you’re more likely to get a junior advisor.
Frequency of trading – If you’re a frequent trader who trades several times a week (or day) then brokerage costs will be far more of an issue than a long term investor (who may only make a handful of trades every year). If you do make frequent stock trades, and know what you’re doing, then you may be better off with an online execution only brokerage service. This type of service tends to be least expensive with some stockbroker companies offering execution trades for just a few dollars. Other brokerage houses also offer special deals that benefit frequent traders, with special rates and a host of tools to facilitate traders.
Knowledge & experience – if you’re a hotshot who’s on the ball then you’re not going to want to spend the high fees associated with advisory stockbroker services.
What types of products you will trade – some investments, such as Ofex and other small markets, may not be freely available with some execution only online brokers. The same may be true of stocks in particular global markets. For those wanting to trade such irregular products, an online execution only service may not be suitable.
Will you be paid interest on any cash balances? If you have a large amount of capital that moves in and out between the form of stocks, bonds and cash then you will want to ensure that your broker pays interest on any cash balances you may have.
The type of trader you are – we’ve touched on this on other points but the category of investor/trader you are will determine the type of brokerage account that will suit you best. Day traders often trade on very short time frames and may require more sophisticated brokerage & system options than a longer-term investor.

Once you analyse these issues you will have a clear understanding of what you need from a broker, and which type of broker may suit you best.

The Different Types Of Stockbroker Services

2008-06-01T02:19:00.000+08:00

There are three basic types of stock-broking services available to the investing public:

1. Advisory Service – Any firm that offers advice to the public as part of an advisory stock-broking service must be registered and authorised by the Financial Services Authority (FSA). The FSA is a government body that is set-up to ensure that financial companies comply with the many regulations that ensure a fair and fraud-free environment.

A company that offers an advisory service must ensure that any staff members that offer financial advice are adequately qualified to do so. A list of companies that are FSA approved can be found on the FSA website (www.fsa.gov.org).

Obviously, most stockbrokers will charge a fee for their advisory services. Typically, the stockbroker will discuss your investment aims and objectives and then recommend a range of investments that they feel would best suit your needs. You can, of course, accept or reject their proposals. Advisory services tend to be done via the broker in person – either at their office, your home or over the telephone.

2. Discretionary Service - With a discretionary service, the stock-broking company will take a sum of money that you provide and invest this on your behalf. It’s significantly different to an advisory service because the stockbroker does not have to tell the investor about every trade that is made on their behalf – the stockbroker has a lot of “discretion” on how to invest the clients’ money.

3. Execution Only - As the name suggests, execution only trades are when the broker is simply instructed to buy or sell a particular investment. The broker has no say about the trade (even if they thought the stock was going to drop by 90% tomorrow they are not obliged to say anything). This is the type of service that has recently been made available to the masses via online brokerage houses that typically offer trades for $10 or so each.

An Introduction To Choosing A Stockbroker

2008-04-30T23:34:00.001+08:00

The Internet Has Changed The Stock Trading Scene Considerably!

The world has changed incredibly over the past couple of decades and there is no greater indication of that than in the world of stock trading and investing.

In times gone-by, the majority of investors would pick their stocks via a traditional stockbroker at a brokerage firm. The transaction would involve paper based stock certificates being issued to the investor. The types of investments available to the “average investor” were also somewhat limited.

Today, the same “average investor” can trade anything from single stocks to currencies, commodities and indices, all with the simple click of a mouse and without ever leaving the home.

But with choice comes confusion, deciding on what stockbroker fits your needs like a glove can be a daunting process. This guide has been designed to give you an understanding of the different types of stockbroker services that exist, and help you decide which one is right for you.
Here are just a few of the many issues that you will need to consider when deciding on your preferred stockbroker:

Do you feel comfortable executing your trades online, with one click ease, or do you prefer doing your business with an actual person, on the phone or even in person? The availability of technology has meant that firms are able to process large volumes of trades cheaply so if you don’t need a live person to talk with to make your trades then there are a large number of “no frills” online brokerage services that will allow you to do business for a few dollars per trade.

How many transactions you make will go a large way towards deciding which brokerage service is the right one for you. Some firms will offer price breaks for frequent traders so if you’re a day trader then you can find a service that’s far better equipped for your needs than if you are an infrequent investor.

Do you require a basic “execution only” service or do you require some advice when making your trades? Clearly, an execution only service is going to be cheaper but those with large amounts to invest and limited knowledge of the markets would benefit from an advisory service.

Know Your Budget

2008-04-29T08:52:00.000+08:00

Only you really know where your budget spends to. Most of us always have thought in our mind including myself "if I was earning more money....then I would have some freedom". But the truth is the only way to create an excess it to spend less than you earn, instead of spending all that you earn. If you earned $3,000 and spending $3,500 you might end up spending $7,000 if you earned $6,000.

You can count your net worth by deducting the value of all the liabilities or loans you have from the income-producing assets owned to give you the net value of your income-producing assets. Do it now if you really want to achieve your financial freedom.

Let we think for a while, why aren't high salary earners retiring wealthy? Survey found that how much we earn, we spend, some of us maybe spend more than we earn and charge it on their credit card. That was a very “magical card” that makes us feel like a richer even though the truth is we end up caught with the debt.

Most of us do these steps, we pay the bills, shopping and spend what is left over, never put aside any left to save or invest. The right way is, we pay ourselves first by put aside an amount of our money for investment. It will control the temptation to spend it.

If you write down a list of your monthly net income, then in another column write down a list of the essential items that you have to spend money on. Work out an average of how much is spent on grocery shopping and petrol. Now before you start to think...."well I don't have any excess left...if I was earning more money....then I would have some freedom". The only way to create an excess it to spend less than you earn, instead of spending all that you earn.

Your Finances

2008-04-22T16:59:00.002+08:00

Which category do you fall in?

I have determined that financially, people fall into one of three categories.

1. Family 1 has all the money they need for necessities and more and manage it very well.

2. Family 2 has all the money they need for necessities and more but live payday to payday with ever increasing debt.

3. Family 3 don't have enough money for necessities.

The funny thing about the three families above is that they could have exactly the same income and family size. This is not to say that special circumstances has nothing to do with it, but on the average most people live above their means.

Family 1 has established a workable budget. They don't pay more than they can afford for housing, transportation, utilities, etc. They also have money set aside for long and short term savings. This short term savings provides two things. First, it makes money available when the car breaks down, you need a new washer or any number of unexpected expenses that crop up. Second, it prevents the need to use credit cards for these items. The savings here could be hundreds of dollars. Family 1 planned.

Family 2 is still struggling to establish a budget. In many cases their house payments or rent is much more than they can afford. They don't take the time to evaluate the money that could be saved with little effort. Usually there is no short term savings, let alone short term. They use credit cards as if they were cash and pay hundreds of dollars in unnessary finance charges and penalities. These people find themselves with financial problems that often leads to bankruptcy. Family 2 either didn't plan or may not know how the handle their finances.

Family 3 has given up on a budget. No matter what they do there isn't enough money to pay for housing and other necessities. They struggle to put food on the table. Most don't qualify for credit cards, which is a good thing. In some cases this situation is self inflicted and some are due to circumstances.

What is the answer to these problems?

Family 1 - Leave these people alone unless you plan to ask their advice.

Family 2 - These are the people that need to seek help and stand a chance of becoming a family 1 family. The possible solutions include a debt management company like Consumer Credit Counseling Service. They need to establish a budget and stick to it. If their housing and other expenses are too high, then they need to cut back, even if they have to move. They also need to cut up the credit cards and think about consolidating. Depending on how far they are in debt, this could take years.

Family 3 - While their struggle seems useless, there are things that can be done. First, they need to see to it that everything is being done to keep expenses down. The electric bill is a good example. There is federally subsidized housing that only charges a small fee based on your income. Make sure that they are receiving all federal and state benefits that they are entitled. If they are able, they should seek job training or some other means to make their life a little better.

Which family are you? No matter whether your are family 1, 2 or 3, there is hope. The primary thing that must be done is to educate everyone that learning to managing their finances is
absolutely for their peace of mind. With the vast amount of information on the internet providing help, this is possible.

If you are a family 2 or 3 family, "The Complete Budget and Bill Organizer" http://www.homemoneyhelp.com/BBOonline.html can help.

by Terry Rigg

Terry Rigg is the author of Living Within Your Means - The Easy Way

http://www.homemoneyhelp.com/ebookadpage.html and editor of The FREE Budget Stretcher Newsletter and Budget Stretcher web site http://www.homemoneyhelp.com. He has 25 years of experience counseling individuals and families concerning their personal finances. Use this email link to get a list of all of

Set Your GOAL

2008-04-18T03:03:00.002+08:00

Many articles have been posted in this blog regarding investment, buying home and loan. Full of information loaded in those articles but are we really understand and apply all tips given? Here I just want to highlight a very simple thought…

Have you set your GOAL related to your own personal finance?

You want to get rich? How much it means?

You want to go for a vacation without worried about how much you spend?

SET YOUR GOAL!

WRITE YOUR GOAL! so that you keep it in your sight.

Make it clear, for example:

I WANT TO HAVE A MILLION DOLLAR AFTER ONE YEAR FROM NOW!

Keep it in your mind day and night. Then your subconscious mind will drive you towards your goal. Your mind will comes out with ideas and steps to generate more income. Your body will work to achieve that goal. You will find alternatives to booster your income and investment. You know where were you going and along the way you will work harder and smarter. In addition you know your time limit. It makes you more focused to achieved your goal within the time limit.

So, lets write down your goal NOW!

Debt Consolidation Versus Debt Negotiation

2008-04-17T22:50:00.002+08:00

Debt consolidation versus debt negotiation are two options that are available to you if you need debt assistance. When your monthly bills become too much for you to handle, it makes sense to use debt consolidation or debt negotiation for solving debt and credit problems.

Debt Consolidation

Debt consolidation services have prearranged debt repayment plans with most credit card and collection companies. When you sign up with a debt consolidation company you are offered a lower overall monthly payment based on a lower interest rate they have arranged with the creditor.

This payment is lower than what the credit card companies offer you, saves you money every month and is often the best way to consolidate debt.

One benefit of a debt consolidation repayment plan is it will stop you from getting harassed by your creditors as long as you make the new, lower monthly payments.

The downside of the debt consolidation repayment plan is that you have to cancel all credit cards that you include in the plan. You are also charged your first payment you make toward the program and an additional monthly administration fee. This administration fee ranges from flat fees of $10-$50, while others charge a $5 fee for each creditor. That means you'll pay about $30 a month that doesn't go to paying off your debts.

The debt consolidation program benefits you if you have high interest rates or have higher credit card bills than you can manage. Some people like to make only one payment to one company for all of their debts.

Debt Negotiation

Debt negotiation is sometimes referred to as debt settlement. This is most often offered to people who can't handle a debt consolidation program. If you can't make the minimum payments of a debt consolidation repayment plan or haven't made payments in the past 3 months, a debt negotiation program is the next step for solving debt and credit problems.

One benefit of a debt negotiation program is you stop making payments to your creditors. The debt negotiation company either takes monthly payments from you and keeps it in an account, or lets you keep the money in your own account.

While you are making these monthly payments to the debt negotiation company, they negotiate with your creditors for a lower payoff of around 40-50% of your total amount of debt. Once the negotiated settlement is agreed upon with your creditors, the debt negotiation company makes a one time payment to them.

A downside of the debt negotiation program is it lowers your credit score for as long as you are in the program. However, most debt negotiation companies require the creditor make the credit report show paid in full so it doesn't show up as a negative on your report once your account is settled.

Some debt negotiation companies include a credit repair service that will remove the negative items caused by the debt negotiation program. You pay for this service as part of their program.
Now that you have an idea what debt consolidation versus debt negotiation is choose which one will work best for solving debt and credit problems for you.

By Gary Gresham

Copyright © 2005 Credit Repair Facts.com All Rights Reserved.
This article is supplied by http://www.credit-repair-facts.com where you will find credit information, debt elimination programs and informative facts that give you the knowledge to correct your own credit and credit report. For more credit related articles like these go to: http://www.credit-repair-facts.com/articles_1.html

Home Mortgage Loan Refinance – Benefits To Refinancing Your House Online

2008-04-17T22:35:00.004+08:00

Here are some of the benefits to doing your home loan refinance online:

Everything seems to happen faster

Online, when looking for a mortgage loan you can search around, fill out an application and a few minutes later, you can be receiving a pre-approval letter via email. There was no calling, no driving & no waiting on hold for an answer. The mortgage company will usually contact you quickly and give you all the information you need to move forward.

You will be more informed and make better decisions - People nowadays that use the internet as consumers, use it primarily to make better purchasing decisions. If you are sitting at home on the couch with your phone book calling every mortgage company listed, you are not going to know what the current interest rate is. You aren’t going to know what your contacted companies competitors are like. All you will know is what that loan officer tells you.

Online, you can view a lot of information very quickly.

After looking at a few mortgage loan websites, you will know quickly that when you refinance you have many options. Do you want to get cash out of your home? Do you want to borrow more than your homes current value? Do you want an interest only loan? And, you will know right away which mortgage companies offer these options. There are many different kinds of refinance loans, and all of these options can be learned after a few minutes of searching online.

Deal with large, reputable companies

When applying online, you should quickly be able to spot the larger, more reputable mortgage companies. I always prefer to use the companies that will submit your application to multiple lenders. That way, your credit is only pulled once, and you can receive multiple offers from up to 4 lenders. For a list of these recommended mortgage companies, see the link below.

Save money

Many online mortgage service companies can save you money by cutting out fees like origination fees and underwriting fees. You will also save money using mortgage services where more than one lender competes for your business.

When you can receive multiple offers, you will know that you are choosing the loan with the lowest rate possible and the best terms you can qualify for. I usually recommend applying with about 3 different mortgage companies that will submit your application to multiple lenders and give you multiple offers. That way you can really maximize your options.

Less Commitment

You can search around online and apply to 2-3 different lenders without feeling guilty for working with more than one company. That way you make can make sure you are getting the best deal. Often when you start working with a mortgage broker in person, even if the person isn’t doing the best job for you, you start to feel obligated to continue to work with the person. This is not so online. If you aren’t getting what you want, you are free to move on with no guilt.

For a list of recommended mortgage companies to refinance with online, click on the link here: recommended refinance mortgage lenders. The mortgage companies recommended on my website, for the most part, will submit your application to more than one lender and provide you with multiple offers.

By Carrie Reeder

Carrie Reeder is the owner and webmaster of ABC Loan Guide. Visit her site to read loan articles and find links to recommended lenders for refinancing your mortgage.

Making it affordable: Nine tips for first time home buyers

2008-04-16T18:06:00.002+08:00

It seems that everyone loves a good real estate story. The media is filled with reports about soaring property values and home owners of modest means becoming instant millionaires when they sell. As a result, many first time home buyers, afraid of missing out, will rush into buying decisions and achieve less-than-spectacular results.

As a first time buyer, your biggest challenge is to balance livability and profitability in a way that makes sense for you and your family. Remember, you are buying a home first and an investment second. Of course, there’s no foolproof formula for buyer success, but there are steps you can take to stack the odds in your favor:

Tip 1: Don’t bet on market timing

If you’re waiting for prices to drop you may be waiting a very long time. In regions that are built out with limited room to expand, it’s not realistic to assume property values will fall dramatically. Of course, prices in the nation’s super-heated residential markets should cool down at some point, but there’s no guarantee that higher interest rates won’t eat up any savings from a price correction.

If your personal circumstances say it’s time to buy, high prices alone shouldn’t keep you on the sidelines. Current interest rates are still historically low, so you may consider locking in a mortgage before rates head north. Even in booming markets, there are good deals for those willing to devote some time and energy to finding them.

Tip 2: Leverage free and low-cost resources

There’s an abundance of free and low-cost resources for homebuyers on the Web. A Web search can turn up helpful articles, buyer guides, online tools and purchase/ refinance calculators. Keep an eye out for helpful tools like step-by-step guides and checklists to help organize your search.

Some Web sites now offer online tools to help you estimate home prices and search for undervalued properties. Many offers on the Web for free property valuations actually are come-ons from real estate brokers looking for seller listings, so check first to see what strings are attached.

Tip 3: Check out the new models

Real estate’s old guard seems to be under assault at every turn today as traditional brokers battle competition from discount and Web-based brokers. Today, buyers have more options than ever before. You can use a full-service broker, discount broker or buy without a broker.

To make buying more affordable, consider the homebuyer rebate programs that are becoming more popular. Rebates can help offset closing costs, which are a real obstacle for many first-time buyers. Be aware that some states currently ban real estate rebates all together, and others limit rebates to credits applied to closing costs.

Tip 4: Lock in a realistic budget

To save time and trouble, first time buyers should have a realistic budget in mind before they shop for homes. One way to determine how much house you can afford is to get “pre-approved” by a lender.

Pre-approval means you know exactly how much of a loan you’ll qualify for, so you can limit your search to homes in the right price range. Pre-approval also boosts your credibility and negotiation position with sellers. Most lenders will offer pre-approval as a no-obligation free service, in hopes of winning your business.

Tip 5: Buying — personal decision, business transaction

Home buyers are should create a wish list to help focus priorities. That way, you’ll remember that a spectacular foyer is nice-to-have, but safety and services are essential. Having clear goals will help keep you from getting carried away with emotional factors.

Sellers who love their homes tend to ask too much, and buyers who fall in love can end up overpaying. With a little research, you can get can get an objective estimate of property value to make sure the seller has set a fair asking price. There are tools and resources on the Web to help you better understand home valuations.

Tip 6: Don’t let closing costs surprise you

Once you understand the buying process, you should understand and budget for transaction costs. In addition to your down payment, buyers pay most of the closing costs when purchasing a home, including things like inspection fees, title insurance, taxes and more. Closing fees can add up to 5-7 percent of purchase price, and must be paid before you get the keys.

Your lender can provide what’s called a “good faith” estimate of your closing costs. Most closing costs are not negotiable but some are. When you’re comparing lenders, don’t be shy…ask which fees are negotiable, then ask if any discounts are available. Finally, be cautious about “no-cost” closing promotions because the lender may be simply passing on the costs in the form of a higher interest rate.

Tip 7: Build a support team

Buying a home is a big investment and a big decision, but you don’t have to go it alone. Remember, at each step of the way, there are people and resources to help you. Use the Internet and ask friends for referrals.

Don’t be afraid to pick up the phone and call real estate professionals, mortgage providers, title companies and insurers to ask questions. These professionals should be good resources to help you learn more about home buying, because they want to earn your business. If they are not helpful, then you have also learned something important…that they don’t deserve your business.

Tip 8: Clean up your credit

Low credit ratings mean that buyers won't qualify for the best available interest rates and fees, which could mean considerable extra expense each month for the life of the loan. Most financial institutions today offer risk-based lending – lower credit risk for lenders means better mortgage deals for customers.

Credit reports frequently contain inaccurate information, which can hurt a buyer’s purchasing power. First-time buyers should check their credit scores and fix any problems before applying for financing.

Tip 9: Begin with the end in mind

Author Stephen Covey’s advice for effective living also applies to effective home buying. Resale may not your primary consideration, but it’s an important factor. Can you buy in an up-and-coming neighborhood or region?

How is the “commutability” from your new home to local employers? How good are the local schools? A few queries to your favorite search engine will turn up free or inexpensive school rating services.

Also be on the lookout for outdated features when you buy. If the those small closets and harvest gold appliances seem out of step now, you can bet that they won’t look any better to prospective buyers in a few years.

By Charles Warnock

Charles Warnock is Marketing Communications Manager at Homekeys, a South-Florida based provider of real estate technology and services. He writes often on real estate, finance, interactive marketing and business development. For more information, visit http://www.homekeys.net