Let a Financial Advisor Guide You in Money Decisions

As you age, you begin to worry about money. Retirement only yields you so much income, and other assistance, like disability or Social Security, may not cover all your bills. Even if you have all the money you need, you don’t always know if you are investing it in the wisest way possible. A financial advisor helps you as you age, so you have control over the money you have saved.

Future Planning

Think about where you want your funds to go. Is it a retirement plan so you can quit working without worry? Is it saving for assisted living or medical expenses that are costing you lots of money? Or do you have funds invested and you don’t know what to do with the excess profit? A financial advisor sits down with you and discusses your plans for your earnings, then guides you to right decisions that can help you invest so you can live comfortably.

Right Now Investing

You may not have to worry so much about where your money is going, but still want to watch your limited earnings grow into better profit. A financial advisor is helpful in guiding you toward real estate investments, CDs, stocks, and bonds, and even savings accounts that gain interest over time. One of the best ways to take care of your money is to invest parts of it that you don’t need right away so you can watch your dollars grow over time.

Managing Expenses

Perhaps the best way a financial advisor can assist you is in handling your immediate debts. As you age, your bills are going to increase in some ways and decrease in others. For example, your home may be paid off, but you now have many medical expenses, including medications, to worry about paying. An expert walks you through your current debt and helps you find ways to spend your money wisely while still being able to set aside funds for things you will need in the future. They help you reduce debts by advising you to sell vehicles and other expensive items you no longer need and using the funds to invest in healthy ways.

Choosing A Professional

You need to look for a professional who has experience in helping retired or older people manage their money. Work with someone who can help you with your current income or earnings and who can explain things to you in an easy way. This way, you can confidently take charge of your finances and the future of your earnings without worry.

A financial advisor is beneficial in helping you with your expenses and saving for future needs. If you don’t know what to do with your income or worry about limited funds running out, choosing a professional to assist you is a great way to feel confident about the money you do have. Whether you need to save for the future or are worried, you aren’t managing your retirement correctly, the right expert can put you at ease and walk you through the right steps to take.

Sticking To Your Stock Trading Strategy

After going through the process of developing a stock trading strategy that works and suits your lifestyle, you’ll have to train yourself to follow your trading plan without losing sight of what you’ve already determined to work.

Following and sticking to the original trading plan is a tough obstacle to overcome for many, but a necessity in most cases. Ideally, a trading plan will have an entry and an exit strategy to help manage positions, lock in profits AND minimize losses.

As an example, if your stock trading strategy produces three winning, profitable trades once you begin to put it to use, what happens when the next trade is a loser? A losing trade can take hold of one’s emotions and cause one to “hope” that things will turn around.

The next thing you know, the losing trade becomes an even larger losing trade and you’re still holding on to the position. “But the stock is so cheap now that it can’t really go much lower”. Sound familiar? What happened to the exit strategy to help minimize losses?

Worse yet, what happens if the first trade you enter with a new trading strategy becomes a losing position right from the start? Do you hold on to it forever, waiting for it to become profitable? What happens if you do hold and the company goes bankrupt?

Psychologically, people have a real tough time selling, or closing out a position, when they’re losing money. Conversely, people also have a tough time selling and closing out a position when they have an un-realized profit because they think they were right, and say “why should I sell if I am right and making money?”

These are the exact reasons why developing a stock trading strategy with a plan that has rules and guidelines for when to buy AND when to sell.

For those who realize this and actually have a trading plan in place, the next, and probably most important thing, is to stick to what you have already decided to do and follow your plan without second guessing yourself.

In the long run, you’ll realize and be much better off taking the losing trades by following your rules then letting your emotions take control. In fact, I once read that you should actually pat yourself on the back for closing out a position that is a loser, as long as you followed your guidelines.

If you treat losing trades as a positive like this AND the winning trades as the obvious positive they are, your life as a trader will be much more manageable over the long term.

Concerning Stock Trading Strategies

Getting into the trading world has never been easy. Once having got there, keeping your head above the water is even more difficult since there is capital and currency involved! Whether you are an investor or a broker, you are under constant stress. Hence, stock trading strategies play a pivotal role in easing the pressure.

Stock trading strategies can be compared to the blueprint drawn up by the engineer who is constructing a house. They are comparable to the pre-planning of a basketball game, or even the outlines of a literary composition before the writer puts the whole story/poem on paper.

Here are some “whys” of stock trading strategies–

(1) First of all, why would you invest in stock markets? The answer is found in this principle–“let your money work for you”. The idea is to ensure that your capital grows and grows.

(2) Without a lump sum to use as an investment, it would not be possible for you to participate in active trading. You are now in the driver’s seat to ensure that your money goes in the right direction as well as control its wanderings, since money cannot steer itself. It is for this reason that stock trading strategies are so crucial.

(3) If well-researched and tried and proven strategies are not in place, you are going to find it an uphill task to recover from unhealthy situations and conditions involving your capital.

(4) In this power game involving stock market transactions, if you can make the strategies work for you, you will stay on top always! You are setting an example on how to work effectively, efficiently and wisely!

(5) Never heard of stock trading strategies? You are throwing away your hard-earned money, since you have no safety deposits to protect your earnings! In fact, you run the risk of losing your capital itself! There are plenty of stories about investors incurring huge losses as a result of unsound moves and actions.

(6) Sometimes, stock markets are influenced by unscrupulous factors, influences and market movements. These come on suddenly when you are least prepared for it. The right strategies can therefore shield you from harm.
(7) New companies are coming up all the time and the market is expanding constantly. Economic conditions around the world can result in the making or breaking of a company and its stocks.

(8) Again, another risk factor is specific developments taking place at different locations around the world. Unexpected events can lead to stock prices moving up and down very rapidly. Political influences and happenings can affect the micro as well as macro economy. Thus, educate yourself on stock trading strategies!

Here are some sundry details about how the stock market works–

(1) Business houses and institutions cannot run on their initial capital alone. They are constantly trying to raise more funds to finance current operations, expansion plans, or additional new projects that may not be directly connected to the company. Trading in stocks is an easy way out for them, hence the popularity of stock markets.

(2) Well-known companies and institutions are registered on stock exchanges around the world. Where US corporations and organizations and institutions are concerned, their names can be found on the list at the New York Stock Exchange. There is information about each one and the stock offered, which is displayed as relevant data.

(3) If you invest your money in any of these corporations, organizations or institutions, you are given the designation of a shareholder/part owner. These are the perks offered to you.

(4) There is nothing to be distributed of course, if there are no profits, or probably even losses! But if profits come rolling in, you get your share as a shareholder or a stock owner. The money is given out in the form of distribution payments or dividends.

(5) Now, you, along with many other traders, would need some guidance on the right places to invest in. Well, freelance analysts and professionals employed by stock market brokerage houses are ready to offer their services for a fee. They are even ready to share information about stock trading strategies.

Take Heed of Sound Financial Advice

We are aware that the economy worldwide is struggling to maintain its stability. People around the globe are having a hard time coping and surviving to maintain its own personal economic finances. Choosing your destiny is not an option, but deciding your future is the best opportunity that you can offer to yourself and your family. We fully understand that everything we do involves monetary value. That is why we should prepare ourselves to have extra funds for emergency purposes and for future reasons. We can acquire this through saving our money, economising our resources, and protecting our assets. Employing a person or a company to handle and manage your finances and giving you financial advice on how to economise and save money is the ideal thing to do.

One of the soundest advices a professional planner can tell you is to invest in health and life insurance while you are young and fit. The reason behind this financial advice is that with youth comes vigour and wellness. A person has a very low risk of dying at a young age. Although it is not impossible, the probability of it happening is very minute. Health wise, a middle aged person’s physical condition gradually starts to deteriorate while a twenty something individual is more or less at the prime of his life. In the insurance company’s point of view, older individuals are more likely to make a claim than younger individuals. Therefore, it would be a wise move to start working through your contributions at a young age while the premiums are still cheap.

Another good thing about this scenario is that you will be able to pay off your premiums earlier thus allowing you to reap whatever benefits it has in store for you. This means that you won’t have to wait until you are too old to be able to enjoy the rewards of your investment. If you play your cards right, you might be able to live a comfortable life in your late fifties even before your retirement age. Imagine the things you could do by then. You could travel the world, explore the cultures of other countries, go on a cruise, or purchase things you’ve only dreamed about before. Apart from that, you will be able to secure your family’s future.

Some people may not agree, but there are parents who worry about the inheritance they want to leave to their children. As a parent, there is that part of you that wants to make sure your children, no matter how old, will not be left empty-handed. Others would want to make sure that everything is in place, from their retirement to their funeral arrangements so that they would not be a burden to the loved ones they would leave behind. With that said, it is indeed a wise effort to perform wealth management, be it by yourself or with professional help.

Financial Advice You Can Take Advantage

If you are just starting your twenties, then consider it to be the perfect time to start investing your money, and let it work for you. If you start this early, it will be easy for you to accomplish the financial goals you have set in your life. You can ask for financial advice from those who are older than you, or even the experts. This is the perfect time to develop good spending and budgeting habits. Doing so will help you prevent unneeded debt, and you can save money for the things that are necessary to you. Given that you invest on a regular basis, it is possible to start saving for retirement and amass retirement properties with just minimum effort.

It is important that you identify your short-term, medium-term, and long-term goals as early as your twenties. Short-term goals usually comprise of your wedding, furniture, a car, and the like. These usually last for five years or less. Medium-term goals are made up of owning your own house, and your children’s education. Long-term goals are your travels and retirement. You can make use of an online calculator in order to find out the amount you need to save monthly so that you can achieve your goal within your set time frame. It will also help to budget for your goals as long as you do not sacrifice one for the other.

It will help you to benefit in the stock market for your medium and long-term goals. Just keep in mind that this is a volatile market and is not for the faint of heart. It is an unfavourable investment for your short-term goals. You can also find out from your employer if they have a tax-deferred retirement plan. If they have it, you can take advantage of it. Whatever contributions you will make will be made with pre-tax money, and the taxes on earnings will be delayed until you withdraw them upon retirement.

You can even ask a financial planner for the best options suited to you. They will research and consult with you before making a decision. Going online and researching on the wealth of information is not a bad idea as well. After you have talked to the experts and have done enough research, you can take advantage of it all as early as your twenties and have an easy time in accomplishing all your goals.

Online Trading Tips For Beginners Venturing

The foreign exchange market is considered the most profitable market in the world. Because of its faster money making capability, it draws more number of people to start investing in it. Beginners & experts who want to earn their fortune trading profits faster feel equally excited at this option. Though one can enjoy trading in the Stock market for 24/7 but it is not always possible to get desirable profit. Only successful trading tips can help you become the hero in the stock trading business.

Though investment in stock trading seems attractive & can bring you instant money, a first timer should be little careful while venturing into it. It is only because most of the people hurriedly jump into the online foreign exchange market without proper idea on trading tips in use so that they can become successful. They don’t just bother to predict the trends, analyze the Stock data & gather sufficient intraday trading tips & incur losses in investment. So it is always recommendable to take some time off your busy schedule & start learning on trading tips applicable for varied market situation. After becoming fully well versed with them, you can take the risk of investing money in the Stock currency market.

There are instances where traders, speculators as well as investors have invested carefully & made a lot of profit. Thus profit can be made if you have sufficient knowledge on trading tips. By gathering trading information from reliable sources, one can easily avoid the failure & reach at the destination.

The beginners should first concentrate on learning the past history as well as the present trend of the Stock market. By analyzing the past Stock market records, they will be able to predict the chances of such patterns arising in the future. Even at times they may feel confused to find rapid ups & downs but knowing the trading tips can really prove out to be useful for them in minimizing the investment losses & generate gains.

The next step is that one should try to learn the tit bits of Stock market. It would be better if he/she makes a detailed study & does not adapt any short cut means. The trading tips give them the lesson to realize the value of their hard earned money first & then consider investing it in Stock market. However, introduction of online Stock software has made Stock investment a lot easier these days & just pushing of buttons can do the same.

Many professional share broker firms are nowadays providing stock traders with highly essential intraday tips to help them make regular profits from day trading in stock market. They use advance technology & sophisticated Stock software to evaluate the data of important stocks. They prepare intraday tips after carefully scrutinizing, analyzing & selecting stocks on various criteria. The stock traders can just follow these highly accurate intraday tips to come out successful in day trading.

Best Online Trading Tips

Online trading has become the most popular method of trading stock and other securities after the advent of internet trading. Speed, ease of use and instant information on a global scale twenty four hours a day has added to the popularity of online trading. Making informed choices based on valuable tip and advice from experts will make online trading a profitable experience for beginners.

It is not difficult for a novice to get valuable tips and advice on the internet. There are many e books, articles in ezines, expert articles and on financial websites like ‘investopedia.’ These articles are written by trading experts. Online trading is about gaining and losing money and learning is the key to mitigate one’s losses.

Considerations to keep in mind before trading online are that the internet is a vast resource of knowledge. However, the internet is also a place where anyone can upload any information. Double checking the tips and advice with two or three websites will ensure that the tips are followed by more than one expert. All tips that are followed must be well considered and reasoned.

Attempting to trade with real money and absolutely no experience is a mistake. There are many websites that simulate trading platforms where novices can trade without using real money. This is the best way to learn online trading without risking money. This will help to clearly understand strategies and methods of trading safely when investing real money.

While exploring tips and advice, a beginner can learn the finer points of trading. These finer points include how to identify trends, understand indicators and simple moving averages, the trends of the stock over a period of time, and how to time the entry and exit while trading.

There are great potential profits in online trading for the prudent and the patient. Investing small and learning as you earn is the best advice for online trading. Keeping a budget at all times and refusing to budge from the budget is another valuable tip. Experimenting with different strategies and working with the strategy that offers the best profits is another valuable tip to follow while trading online.

Experts believe that while tips and advice on online trading available on the internet promise great profits to potential online traders, a trader will have to learn by trial and error. Following tips and advice are not a shield from risks and the consequences of possible loss of money however; they are a sword which arms the trader with prudence and diligence to withdraw before making a huge loss. Experts advise potential online traders to use simulators to the best advantage. Traders should start trading using real money only after at least ten successful simulated trades. The first account should be with a discount broker who will charge low fees and have less hidden charges.

Looking For Financial Planners

Investing your money in the financial markets and earning lucrative rates of return seems to be an attractive option, right? After all, all of us would like to choose profit-making investment projects, and add to our stock of wealth in the long run. However, the process of actually making profits in finance markets is not very straightforward. This is the point where services of financial planners come in handy. The most expert and best financial planners can guide you in your investment decision-making, often choosing the right investment projects that should be added in your portfolio. Indeed, in order to arrive at wise, informed and profitable investment decisions, you need to find a financial planner at the very outset itself.

Finding financial planners is not an extremely easy process. One of the basic questions that every potential investor (and more particularly, the beginners in this field) needs to address is how to find a financial planner. There are plenty of financial planning companies that offer their professional services to the common investors, and their services can be varied over a wide range. Hence, an investor needs to be exactly certain of the type of financial advice (s)he requires, before actually hiring the services of a financial planner.

There are places on the Internet where you can easily find financial planners. These websites help you gain access to the services of the best financial planners ideally suited to satisfy your requirements. It has a huge database of financial advisor firms (with over 8963 financial firms in the US), and can easily match the required type of advisor, based on the type of help that you need. At these websites, you can come into contact with financial planners who are well-qualified, experienced in dealing in the financial markets, and are pre-screened to match your needs. You can also compare among a number of financial planners in your area, before actually hiring the services of any one firm.

The financial advisors whom you can access online provide a variety of services (including portfolio management, retirement planning, estate planning, education planning and 401K Rollover services). All that you need is to specify the type of finance service that you require, the present size of your portfolio (in monetary terms) and your contact information. This would provide for easy matching of the top financial planners in your area as per your requirements.

Investors should ideally have a pre-determined target rate of return they desire from investment projects. Financial planners can help their clients achieve these targeted investment return rates. The advisors also can recommend particular projects on which clients should invest their money, in order to earn significant profits in the long run. Planners should ideally be able to gauge the “risk-tolerance” (i.e., the risk-bearing capacity) of the investors, and accordingly advise certain types of projects to clients. Investors also need to be totally candid about their current financial positions, in order to reap maximum benefits from the services of financial planners.

In case you are a beginner in investing, and wish to earn profits from the financial markets, you need to find expert financial planners The latter can guide you in your investment decisions, often choosing the most profitable investment projects for his/her clients. If you are a potential investor, and is looking for a qualified and well-experienced financial planner, these are ideal places where you can get contacted to the best financial planners in your locality.

Choosing a Financial Planner for Your Future Retirement

Designations (training/certifications) for Financial Planners

Certified Financial Planners or Advisors must demonstrate that they have undergone in-depth training and competency testing in financial planning and investment management. It is recommended that an advisor must hold the Certified Financial Planner™ designation. Many advisors hold other degrees and designations, including the following:

  • Certified Public Accountant (CPA)- A CPA is an experienced accountant that has met strict education and licensing requirements. A CPA will be a good choice for tax issues.
  • Personal Financial Specialist (PFS)- CPAs can undergo additional financial planning education and after passing meeting exam and experience requirements can use the CPA/PFS designation.
  • Certified Financial Planner (CFP)- The CFP is one of the most respected financial planning designations that requires a minimum of three years of experience, follow a strict code of ethics, and pass a series of three exams. These individuals will be able to provide a broad range of financial advice.
  • Chartered Financial Consultant (ChFC)- These are typically insurance professionals who specialize in some aspects of financial planning by meeting additional education requirements in economics and investments.
  • Chartered Retirement Planning Counselor (CRPC)- A CRPC designation is offered through the College of Financial Planning to allow planners to specialize in retirement planning. These individuals must also pass an exam and meet a strict code of ethics.

These are the most common designations in use, and there are over 50 designations more common designations in use. Just remember that if you see a designation that is unfamiliar, ask for clarification it is your funds being discussed and you should know their training and who has certified their credentials

Financial Planner Compensation Methods

Financial planners may receive fees, commissions, or both, and the distinction between them is important to you, because it may affect your cost and the service you receive.

  • Fee-only: This can be an hourly fee, a flat fee for a comprehensive plan or an annual retainer amount. “Fee-only” planners charge a fee for their services, but don’t receive a commission when you purchase a product. The advantage is that you may get more objective advice, however a disadvantage may be that the planner may have little incentive or detailed training to help you follow and implementing you plan, and may lack the ability to coordinate all facets of its implementation. Hence you may pay twice one to them for the basic planning and again for other assistance for implementation.
  • Commission-only: A commission-only planner earns his or her compensation when you actually purchase an insurance or financial product, such as a mutual fund, from him or her. When dealing with commission-only planners, exercise caution because their only source of income is the revenues generated from selling. In some cases commission – only “planners” are seldom planners at all, but are focused solely on the products they sell.
  • Fee and commission: Also known as fee-based planning, this is the most popular form of financial planning compensation. The planner earns an hourly fee for meeting with you and providing advice as well as commissions on financial products you may purchase.
  • “Fee-based” planners charge you a fee that’s enough to fairly compensate for planning work, but they may also get a commission on any products you purchase. By law, their “engagement letter” must disclose conflicts of interest and all terms relating to the engagement, allowing you five business days for a full refund of any fees paid. The disadvantage here is that you will need to be sure you understand fees, loads, charges, and expenses of any recommendations offered. The advantages will probably include increased convenience, one-stop service, broader competencies, and increased influence when it comes to representing your needs with major financial institutions. And you’ll probably not be paying double when it comes to implementing recommended product purchases: both a fee to the planner for oversight and a commission to the product salesperson.
  • Money under management: Some planners manage your investments for you and charge you a percentage of the assets under management as their fee (usually around 1%). Again, exercise caution when choosing a money manager especially if you are giving someone discretionary power over your money. Other then the fee structure they are similar to a fee based advisor in supporting your needs.

One question one may ask; is my financial advisor overcharging me? If you’re paying more than 1% of assets, he probably is. It’s much cheaper to do the easy stuff yourself, and then pay a financial professional by the hour to advise you on the more complicated items. An honest and knowledgeable financial advisor who won’t try to “pad” his hourly charges might be worth as much as $300 an hour.

Personal Finance Advice For This Christmas

To be honest, I don’t like Christmas. I like the essence and the significance of the festive season. I am equally happy about celebrating Christ’s birthday, and it’s not that I don’t like Santa either. Personally I value Christmas, but not financially. Instead of enjoying the season, I usually found myself stressed and worried about giving gifts, welcoming people, and arranging parties.

I, along with my wife, strive to keep the expenses under control every Christmas, but we always overspend. That’s the only reason why I adore Thanksgiving instead of Christmas.

I am quite unlike Mr. Moore, my neighbor. He just love parties, invites friends home, or goes to some of his friend’s place every night. I am a little introvert, may be due to my financial status. I like having fun, hospitality, friends, parties, etc, but not an overdose. However, we both respect each other for what we are. He likes me because I am not a party freak like him, and I keep reminding him that it is perfectly normal not to party sometimes.

I am always worried about my retirement expenses. Hence, I have decided to save some amount every week that would go directly to my 401k account. I have been adjusting my expenses for this since last 4 years, so my lifestyle is quite modest. Distributing gifts, therefore, is an expensive way for me to express love and affection. I know it’s not mandatory but there are few people whom I cannot avoid. I have to purchase gifts for my wife and my kids, I cannot escape that. Then there is Mr. Moore’s family, my in laws, and my grandmother. They are someone whom I really love and appreciate. It’s completely okay for me even if they are not able to reciprocate. However, I cannot gift them a Barbie doll, right? I have to give them something that they value and appreciate.

Moreover, contributing for gifts at workplace or giving a gift in return is an added trouble.

Here are few ideas I have come up with. It may work for you. Maybe not.

1. Homemade articles: I am sure that I won’t be able to come up with anything exciting or something that people might appreciate. However, I have a creative personality in my house, my wife. I have shared this idea with her and she is quite excited about it.

2. Budgeting and saving: Probably a fantastic idea. But for you. I have no room for any additional saving or adding any item in my budget. Although I have managed to save a diminutive amount for retirement, this year has been a disaster. I am not able to pay my bills on time.

3. Rebuff politely: If you really don’t have any money to gift your relatives, I am sure this one will definitely work for you. It has worked for me. I have been rebuffing since many years. They now don’t expect any gift in return and keep sympathizing. I hate this, hence I will gift them something this year. I am sure my wife will come up with something.

I have been noticing that this is a problem faced not only by me. Each year, during Christmas, I keep meeting more and more people unable to gift them. Some buy expensive gifts even if they are not able to afford it. They have to face very harsh consequences in January.

I hope this personal finance advice for this Christmas may be useful for you. If you can come up with any economical sources of gifts, kindly let me know.