Get the most out of your bank

Get the most out of your bank

Banks can be very unscrupulous at the best of times, as shown by the recent banking crisis, when it seemed like banks were only acting on the best interests on themselves and not their customers. naturally, most banks are not like this though and with a little shrewdness you can make the most out of your bank.

bankSteps to Take

The first step to doing this is to review all the savings accounts you have with your bank. You have to ask yourself the question: am I getting the best savings rate I could get? Analyse all the savings rate on offer and ensure that you select the one that suits you. Do this with caution however, as some accounts (i.e. bonds) can lock your money away (admittedly at an increased rate of interest), with penalties for early closure. Don’t be afraid to shop around and look at other banks too to ensure that you are getting the best deal on the market.

Another useful thing to do is (if possible) to use your ISA allowance in full. In an era where tax is charged on almost every commodity and interest in any bank account, it is a wise option to use all the tax-free savings you can. If you do this, you would be surprised at how much your savings can grow. Furthermore, this effect is compounded- if you do this year on year, then the long-term financial future suddenly looks a lot brighter.

Yet another tactic you can do is to book a financial consultation with a memeber of staff at your local bank. It can be quite confusing to distinguish between the quality of different accounts amidst the plethora of jargon and numerical data. If someone well versed in it can explain it for you and put you on a savings plan which matches your needs, then you will make more for your money. Check if there are any rewards or perks for loyalty in sticking with the same bank for a long time.

Your Guide to Penny Stocks

Your Guide to Penny Stocks

A person can make a lot of money investing in the stock market. Penny stocks are becoming a big craze. They are cheap to purchase many of them costing only a fraction of a penny per share. Penny stocks also present the highest risk for a person to lose their money.

Penny stocks are usually unknown companies where there is not a lot of information available on their progress and sales. Top companies such as Apple (AAPL) started off as unknown penny stocks. The companies that are offering penny stocks are those just starting up or are small companies.

guide to penny stocks

Buying and Selling Penny Stocks

When a person is purchasing penny stocks they need to include the price of commission for their stock broker or the website they are using to make their purchase. Penny stocks can be found with a simple internet search. They can also be found on finance reports. There are stock brokers that specialize in the sales of penny stocks. When purchasing penny stocks a person needs to realize that they are not traded often. In order to make a large profit a person should be prepared to hang onto these stocks for a long period of time. It can be several years before these stocks increase in value if they do increase at all.

Where Penny Stocks are Traded

Penny stocks are usually traded over the counter where a person can use a website to trade. These websites are run by brokers and brokerage companies. Penny stocks are also traded on United States securities exchanges, facilities of the United States exchanges, and even traded on the foreign market. Before purchasing a penny stock be sure to inquire about what market they will be traded on and do some research on these markets. Be careful when buying penny stocks that are not currently being traded on any market as they present a higher risk.

While penny stocks are risky a person can make a nice profit if they are lucky enough to find the right penny stocks to buy. While there is not usually a lot of information on these companies a person should try to find out as much as they can. They should also evaluate the market as to what good or services are becoming popular. It is also important to have a diversified portfolio as markets tend to change. Stocks especially penny stocks are risky so a person needs to be prepared to make money but lose money with the same investment.

Ways to increase your income

Ways to Increase Your Income

In an era where money is tight and the recession bites hard, sometimes an ordinary full-time job is not sufficient enough to live sustainably on. There is an increasing trend of individuals turning to other avenues to make money to fund their lifestyle. This article explores some of the ways to do that.

The most obvious way is to take on additional job. Many people these days work a second job, part-time of course, as a way of supplementing their income. This is a viable strategy as the income obtained from such a job can generate some much needed relief on a constrained budget. Administration or work from home positions are a useful way of doing this without adding travel expenses to expenditure and saving on time also.

Starting up your own business can generate a substantial amount of money if done successfully. You have to identify a niche and something you are passionate in, follow a few key business principles in constantly networking and demonstrating reliability and efficiency, then you should be on the road to success. Being your own boss can be very satisfying and there is also the advantage of being in completely in control of income distribution and shift patterns.

increase income

Alternative Strategies

Another feasible strategy is to complete surveys or participate in focus groups online. The internet truly is a breeding ground for such opportunities and there is a fair amount of money to be made. With surveys, one should aim to sign up to as many survey sites as possible to maximise income, similarly with focus groups. Online is a good marketplace for advertising your own skills and doing a spot of freelancing, such as writing, proofreading and translating. If you have a specialist skill or expertise in any area, consider tutoring. This is a stress-free and constant source of income, with some jobs being fairly high paid.

Fundamentally, there are numerous ways to make money in addition to your full-time job. With some hard work and effort, you can take full advantage of the innumerable opportunities out there.

Saving for your Retirement

Saving for retirement

is one of those things that most people spend a great deal of time thinking about. For most people, it is not as easy to save for retirement now as it used to be.

The thought that you graduate from high school and get a good job that allows you to pay your bills and put money away for retirement in 20 or 30 years really does not work that well for most people anymore. Part of this is because people are living longer and thus, they need more money for retirement.

Part of the problem is that pensions of most people have been adversely impacted by economic events that have occurred over the last several years. All of these things have conspired to make it more difficult to come up with a viable strategy to save for retirement. This means that you have to be more vigilant when it comes to finding ways to put enough money back to live comfortably later on.

How Can You Save?

There are a number of things that you can do to save for retirement. One of the most important things you can do is find a stockbroker or an accountant that you can trust who can offer you sound financial advice and help guide you in your investments.

Investing in stocks and bonds is a great way to save for retirement, but unless you want to lose money while you learn the ropes yourself, it is a good idea to have someone who is experienced by your side. The stock market is often very volatile and as such, it is a good idea to have someone that can offer you solid advice before you start investing money in anything.
Putting money away in a savings account is another way that you can save for retirement but you typically need additional strategies as well. Saving money is always a good option, but if all you are doing is putting money away in a savings account, you are not maximizing the potential to make as much money as possible during your retirement. You may choose to exercise other options when it comes to certain types of accounts that you can get with your bank in conjunction with investing in the stock market as a means of ensuring that you have enough money to live comfortably throughout your retirement.

retirement

Diversify

Finally, the most important thing that you can do is diversify. Ensure that you are guaranteeing your financial well being in the future by putting your money in several different places. That way, if a certain stock crashes or your pension goes south, you will still have other options available and you will not find yourself in severe financial trouble to the degree that you would if you put everything into a single entity.

Can I Make a Living Day Trading?

Can I make a living day trading?

You may know someone that has done relatively well investing in the stock market. You may even know someone that has purchased stocks as a day trader and wondered if you too can make a living day trading. This is a question that has a lot of different answers, depending on the person that is asking the question. For example, some people are able to make a living day trading quite easily. Others attempt it and fail miserably. Still others do very well for a period of time and then make a single bad investment and lose much of the wealth that they had previously built.

Day Trading Obstacles

Day trading, like much of the stock market, can be a relatively volatile situation and as a result it is possible to lose a great deal of money in a very short period of time. The ability to make money day trading really depends on how well an individual understands the stock market and how good they are at making decisions about whether or not a particular stock will go up or down. In addition, a lot of it depends on how bold a person decides to be. Those who take the bigger risks either reap the bigger rewards or suffer the largest failures, depending on the outcome of their decision. Those that are only willing to risk a little will certainly only lose a little, but it is also difficult to make a great deal of money when trading in this fashion.

day trading

The short answer is that it is possible to make money as a day trader but if you plan on making a living at doing this and that is your only source of income, you should have a system that works where you only use a certain percentage of your total income to trade. Otherwise, you may find yourself losing practically everything you own. It is a system that has the potential to offer tremendous rewards but it also has the potential for dramatic failures of epic proportions if you are not paying attention to what you are doing.

In all likelihood, your best bet would be to use day trading as a way to make a decent side income. At least use it for those purposes while you are learning the ropes and getting your feet wet. It is definitely not a wise choice to try to become a day trader all at once. You would be much more financially secure to use it as a means of earning a few extra dollars or to start small and build your way up as you learn all of the details about working as a day trader. Once you have learned these details well and if you have a knack for day trading, you may make the decision to make a living as a day trader provided that you have put enough money aside that you can live comfortably if things go wrong.

Choosing the Right Stock Broker

Choosing the right online stock broker

is essential if that is how you plan on investing in stocks. There are a lot of variables that you have to consider when choosing a stock broker, especially when you are doing it online. After all, it is your money and you want to be certain that the money that you are investing is money well spent and that you are not using someone who does not have your best intentions in mind.

You also want to ensure that the person that you choose knows what they are doing. Investing in itself is constantly changing according to economic conditions. In truth, practically anything can set off a trend concerning the stock market that may cause it to go up or down. Therefore, you need to choose an online stock broker that has experience and that is willing to work with you on a one on one basis.

stock broker

How to manage the relationship

Perhaps the most frustrating thing when it comes to choosing a stock broker is that relatively few of them actually listen to anything that you as a client to have to say. A lot of them have the idea that they are the consummate professionals when it comes to investing and that you really do not know anything about it to begin with. As a result, they make a conscious decision not to listen to your questions and concerns. As a client, this is beyond frustrating because you may have genuine concerns. Chances are you know more about investing than most stock brokers would give you credit for.
One of the foremost things that you need to consider when choosing a stock broker is whether or not that individual is going to listen to you and work closely with you or if you are going to have to struggle to be heard when you try to contact your stock broker. If you find one that is willing to work closely with you and they are experienced in what they are doing, you are likely well on your way to choosing the right stock broker. Of course, other variables will come into play.

Broker Fees

One of the most important variables is the amount of fees that you will be charged for the stock broker that you choose. Ultimately, choosing the right stock broker is up to you but you should always be careful when it comes to deciding who you will allow to invest your money on your behalf.

Mutual Funds or Individual Stocks?

Mutual Funds or Individual Stocks?

Many investors start off using mutual funds or stocks. There are risks and benefits associated with each, and which one to begin with is mostly a matter of finances, as well as preference. Stocks are little pieces of ownership over a company.

It is, of course, not a substantial amount of ownership, that is mostly owned by larger corporations and businesses. However, it does grant the investor a vote in management.

Each piece of stock represents a portion of company earnings, however they do not always pay out.

Mutual funds, on the other hand, is a separate company that pools money from multiple investors in order to put that money into multiple securities. These combined holdings is the portfolio of the mutual fund. There are four basic types of mutual funds, and these pay out in different ways.

How One Makes Money Off Stocks

As mentioned above, stocks are shares of the company they are bought from. The more one acquires of the same stock, the more ownership one has over the company.

The biggest importance of stock ownership is the investor’s claim on their assets and earnings. The profits from the company is paid out with dividends when the company goes bankrupt, however if it is liquefied, one only receives what is left over after all the creditors have received payment.

On the bright side, there is a limited liability for all the investors, and they cannot be taken advantage of in the event of the company failing to pay its’ debts. Stocks are great if the company is successful, as one can earn a high amount of profit from these. However, if the business fails, one can lose out on their entire investment.

It is also true that a large portion of companies never pay out to their investors, as they are not obligated to. Stocks are higher risk, which is a downside to many who try to make a profit off them.

mutual funds

What About Mutual Funds?

With mutual funds, investors purchase shares in it’s portfolio. Each share represents the investor’s partial ownership of the funds, as well as the income they make.

It is generally popular among investors for several reasons. First of all, there are fund managers who handle everything for the shareholders. They do the research, as well as choose the securities to invest in and watch the performance of the companies. Mutual funds are much more diversified than stocks, as they invest in multiple companies and industries.

This means less of a risk, as not all the eggs are in one basket. It is much more affordable, as shares are sold relatively low price. Finally, it is easy to redeem one’s shares at almost any time for the current net asset value, as well as redemption fees.

With four types of mutual funds, one can decide what level of risk they wish to take! There are money market funds, the lowest risk of the four, which can only be used in higher quality, short term investments in US corporations. These are bigger companies with proven success, most often.

There are also bond funds, which are higher risk types that produce higher returns when successful. Stock funds are invested in corporations, and come in a variety of different funds from that. There are target date funds, which are a mixture of bonds, stocks and other investments. These are considered life cycle funds, as they are better for investors who are looking towards retirement.

So Which Do I Choose?

Mutual funds and stocks are both viable sources for income, however choosing which one is best depends highly on one’s financial situations.

Mutual funds offer payments in three different ways. They have dividend payments, which pay shareholders all the income they earn. There are capital gains distributions, which is distributed at the end of the year, and payments when the NAV increases. It is possible to lose some, or even all, of the money invested in either, as values and securities can fluctuate a lot.

It is important to remember that past performance is not an indicator of future performance, however one can use this to determine potential stability of the fund or stock.

Investing in Penny Stocks

Investing in Penny Stocks

Learning how to deal with the stock market can be a daunting task, especially if you have never done it before.

Fortunately, there are many different types of investing that you can participate in which limit the risk that is involved, yet also provide you with an opportunity to save some money for your retirement or to purchase your dream home.

One of these options is penny stocks. They differ from regular stocks and bonds because of the way that you invest in them. In fact, there are many differences between penny stocks and what you would consider regular stocks that are nationally traded.

While the risk is sometimes lower because it costs very little to invest in these types of stocks, there have been instances where people have lost a great deal of money investing in penny stocks. Therefore, it is imperative that you exercise a lot of caution when investing in these or any other types of stocks.

The differences

Penny stocks are unlike the stocks that are nationally traded for a number of reasons. Perhaps the most obvious reason is that they are not nationally traded because they do not meet the criteria that is necessary to do so. However, they are usually sold as shares of major companies, so it is not like you are buying shares in something that you have probably never heard of.

Even though they are called penny stocks they usually trade for an amount that is at or below $5.00 per share. As a result, they are very inexpensive and many people get the idea that they can purchase large numbers of shares and then sell those shares for a large sum of money very quickly. Sometimes this works and sometimes it does not.

Use Caution

While it may make sense to invest in penny stocks, especially if you are getting started with very little money, you should always be careful when investing. These stocks have a tendency to be more volatile than stocks that are nationally traded. Therefore, you may spend money investing in penny stocks that quickly lose their value and become practically worthless.

If you have purchased several shares and you spent a lot of money doing so, you may find yourself out of money very quickly. The best way to avoid this scenario is to carefully investigate each stock that you are considering purchasing before you spend any money. It is also a good idea to carefully regulate how much money you spend on the stocks and use only money that you can afford to lose.

There are many quality stock investing newsletters out there that could help you with the selection process. They usually provide their subscribers with the best penny stocks to watch on a daily basis. Just make sure you read their disclaimers carefully as many of them are paid promoters and someone is often selling large amounts into their subscribers buying.

Penny stocks do offer an opportunity to get into investing without having a lot of money but like virtually every other type of investing, it requires that you do some research before you spend your money.

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