Types Of Long Term Investments

November 16th, 2016
types-of-long-term-investment

various types of long term investment

The right tip of earning money and keeping it for long term with increasing it, is investing it in right place. Making investment is not an easy thing to do, if made the wrong choice; chances are there you lose your money. The right way of earning more out of less with less risk is making long term investments. Long term investments are great choice of nurturing your money in right direction. If you want to be successful in making long term investment, you have to prepare yourself to put your money in some stable and long term growth investment. While making long term investments you need to be very much patient as here you will not get your money real soon, you have to wait for long time and see your money grow. Generally most of the long term investments have the same characteristics.

  • Long term investments needs less amount of management as compared to that of short term investments.
  • Long term investments will avail you with long term growth.
  • A long term investment carries less amount of risk.
  • They will carry a history of long term performance.

If you see these characteristics in any of the investment structure, you can consider they are safe and profit bearing. Here are some of the types of long term investments.

  • Index funds

Index funds are one of the best long term investments as they are very much strong and are also diversified product. An index fund will hold up varied range of companies and hence you are funds are not only tied up to profit or loss of any single particular company. If the stock markets have a long term growth then your long term investment will also have a great long term growth which will definitely very much profitable.

  • Bonds

Bonds are considered to be excellent form for making long term investments as they are very much less volatile as compared to that of stock on an average. Bonds which are having maturity date of 10 years or even higher than that are likely to give better income as compared to that which have lower maturity date. If you are ready to put your money aside for that long period of time and then sit back relax and watch it grow then this can be a great source of long term investment for you. There are several types of bond products which come with guarantee. This will not only give long term investment idea but also decreases your risk factor to a great level. Due to this reasons bonds will always be considered as one of the best source of long term investments.

  • Blue chip stocks

Buying and investing in individual stock is not a good option for investment specifically for large net worth investors but still many of the times it can give you a great gains by investing in blue chip stocks. This will basically be the part of a company with billion dollar valuation.

Various Types Of Loans

October 25th, 2016
Various types-of-loans

Different types-of-loans

Loans can be used for many different purposes. Loan can be used for financing a new business or taking new car or buying new home or buying jewelry or any such other reason. With different needs, come different loans. For getting the best and most suitable type of loan, you must be aware about the types of loans in the market. You must also see which type of loans are used for which purposes, what is the rate of interest and then g for the one which suits with your needs in best possible manner. Here are some of the most popular types of loans available on the market.

  • Personal loans

This is most common types of loans and is also offered by most of the banks. The proceeds from these loans have universal usage. It can be used for any purpose. It can be used for paying college fees or paying house rent or paying off the electricity bill or paying the installment of car. It’s a universal loan which can be used for any universal purpose. These loans are considered unsecured and its amount range is also not specified. It can range from some hundred dollars to thousands of dollars. Here the lenders will be in need of some kind of income verification or proof of your having any other asset which is having the value equals to the amount of the loan. The approval of such loans can be granted in few days of its application which is one or two page long. The interest rate of such types of loans is very much high it usually ranges from 10% to 12%. It’s one of the best sources of procuring finance for those individual having short term needs and can repay the amount within some years.

  • Home equity loans

Home owners can get finance against the equity or let’s say the assets they have. In short, homeowners can take loans against the value of the homes they are having. The proceeds from such types of loans can be used for any of the purpose but generally one would never risk their home for any small matters. Usually these loans are taken for home addition purposes or for debt consolidation purposes. The interest on such types of loans is very much reasonable and thus individuals are attracted towards this loan. The time period of such loans ranges from 15 to 20 years. This is a long term type of loans used for long term purposes.  This loan is also somewhat risky as you lose your home in case of failure of payment. Specifically for a family where there is single earning member and disability or death of that person can lead to losing your home.

  • Cash advances

Cash advances are generally offered by credit card companies in the form of short term loans. The interest rate usually remains high and they are also not tax deductible at source. The amount of loan is also usually high and for long term.

Tips on Stock Market Investment for Beginners

August 23rd, 2016

Tips on Stock Market Investment for BeginnersGetting quick and easy ways of money is considered to be the most important factor now days. Yes, we all want that there might some of the way from which we can get the money without getting more of our efforts and hard work. And the only way which can help you for those matters is with the help of investing in stock market. If you are a beginner than trust me this tips on stock market investment for beginners are considered to be the right thing for you. I know there are many aspects which are considered to be important and which you need to go for while getting in to the stock market investment for beginners. Get the exact knowledge of the things and the principles which you need to go for following for getting the proper result which you are in need of.

This article will help you in getting all the information and the tips on stock market investment for beginners which you can go for. Well, we all have that common knowledge of how to deal in getting the stock market investment for beginners but let me tell you that is not important but to exactly getting and understanding it is considered to be the duty of the investor which you need to go for following. There are many tips on stock market investment for beginners which can help you in going further like setting up the goals for long term, taking proper and accurate decisions which is considered to be important, etc. and many more of such facts which are considered to be mandate for the investors while going for stock market investment for beginners.

Setting up long term goal is considered to be one of the tip which can help you in going for stock market investment for beginners. Saving is considered to be one of the good decision but trust me it is not going to give you back any of the return because your money is not going to be used rather investing in stock market will help you in getting your money in doubled and not only that, you can also get good amount of return if you are going for taking the decision of long term goals by investing in such type of stock which can help you in taking for longer time of your money and getting a perfect return which you are in need of.

Let me tell you there are many tips which can help you for the matters of getting the understanding about the stock market investment for beginners like getting known to the risk factor which you are going to take for your money which you are going to invest. Take proper and valid decisions which are considered to be in your benefits because many times we take for wrong decision in stock market and the result would be liable to have more of loss than the profit which we have thought of. Taking in to account properly about the tips of stock market investment for beginners is considered to be mandate criteria to follow.

Offshore Investing: Pros And Cons

July 26th, 2016

Offshore investmentOffshore investment has grown a lot in some of the past years and it has become a great source for investment. Large number of investors invests in varied nation and the party to investment gets benefited. But offshore investing is not for every person. If you are thinking of making offshore investing then you must make some research and seek advice from your financial planner if you have one. Offshore investing has created very negative image in the mind of people as whoever makes offshore investing is always indulged in some kid of illegal activities or money laundering process which is definitely not true. Offshore investing is a risky thing and you need to have proper courage to handle all that. Make proper research about the country, their terms and conditions about offshore investing and then make the decision of investment. Get proper idea about the tax rate and also interest rate and also check the bank in which you are going for offshore investing. Here are some of the pros and cons of offshore investing which will help you decide whether to go for offshore investing or not.

Pros

  • Low regulatory environment

Market of investment can flourish a lot and can grow very rapidly if the regulatory environment is low and bit flexible which is definitely there in case of offshore investing. Just for instance take example of hedge funds; it is such a thing which can capture good amount of market if there is low regulatory environment. If the regulations are very tight, people would not be much interested in making offshore investing if the environment is very stubborn and there are lots of rules and regulations and procedures to be followed.

  • Tax benefits

If you are into offshore investing and you choose such a jurisdiction where the tax rate is much lower than that of your country then you are benefitted a lot. You can have lots of savings on your tax. Many people also take undue advantage of it but if thought in a positive way, it is one of the major benefits of offshore investing.

  • Confidentiality

Confidentiality is must when you make an offshore investment and you are given guarantee as to no one else except you will be provided with your matters in case of offshore investing. As per the matter that it is for illegal stuff then such things do require high level of confidentiality.

Cons

  • High risk

As these market is not much regulated that too in a proper manner, the risk has much increased in this market. There are chances that you lose your potential investments when there is change in inflation situation to recession situation.

  • Less transparency

As these types of investments are highly confidential, chances are there that illegal business is carried on. Lacks of transparency can one of the major sources in illegal matters. It can also encourage criminal activities which is not at all a good thing.

 

Things to Consider before Refinancing your Mortgage

June 22nd, 2016

Things to Consider before Refinancing your MortgageRefinancing you’re your mortgage id considered to be very much important thing which the investor must go for thinking before going for refinancing your mortgage because it is considered to be that property which you have possessed and then again your are going to finance it or mortgage it back. Whether the refinancing of mortgage is right for you or not is being decided on the circumstances and for the reason where you want to go for mortgaging your property. It is more advisable of taking this issue to be on a serious base because it is considered to be having your property to be issued for some or the other reason. The further discussion will help you in getting all sorts of information which you need to take in to account before refinancing your mortgage.

This article will help you in getting the details regarding the things which you need to take in to consideration before refinancing your mortgage. No doubt you can easily go for of refinancing your mortgage but under certain things which is considered to be important like checking for your credit score, refinancing cost, debt-income ratio, etc. and many more of the things which Is considered to be important factors which the investor must not neglect at the time of going for refinancing your mortgage.

Things to be consider before refinancing your mortgage

  1. Checking for your credit score

Well, there are many things which you need to take in to account at the time of going for refinancing your mortgage and amongst them one is checking for your credit score. Well for getting the lowest mortgage interest rates, the lenders have also tightened the scenario of providing it and for getting the lowest mortgage interest rates you need to have at least 720 or higher than that of the credit score which can help you in getting the lowest mortgage credit score which can be considered to be in your benefits.

  1. Refinancing cost

Other things which the investors need to take in to account while refinancing your mortgage is to measure up the refinancing cost which is considered to be important factor which you must definitely take in to consideration. Normally the refinancing cost is considered to be between 3 to 5 percentages but the loan provider can also go for lowering it. It also depends up on the your equity which can help you in getting the new loan if you have enough of its amount with you to invest up on.

  1. Break-even point importance

Well, you must go for refinancing your mortgage but not at the risk of your monthly incomes which you are being earning because it is going to affect up on it. So a particular calculation is required which can help you in making up the decision that it is worth taking loan and mortgaging your property to the lender and is not going to affect up on to your monthly incomes which you are earing.

Tips To Pay Off Your Loan Faster

June 3rd, 2016

LoanLoan is very burdensome and we all we want to get rid of it soon as possible. When you are working towards paying off your loan faster, you try every trick and tip you can. While trying to pay off your loan faster, you try to save more money, you also try to increase your income and you also try to cut on your expenses. Your loan can be of any type like home loan, car loan, credit card loan, it doesn’t matter which type it is the important thing is to pay off your loan faster. Here are some of the tips which will help to pay off your loan faster.

  • Make Bi-weekly payments

If you make payment monthly you might be slow in paying off your loan faster. Thus try and make payment of your loan twice in a month that is every fifteen days or every two weeks. By doing so you will be able to pay off your loan faster and along with that you will get three things.

  • You will have to pay less amount of interest as you are making payment more often.
  • You will be able to pay a extra payment as there are fifty two weeks in a year which equals to twenty six monthly payments or you can say one extra payment.
  • By doing this duration of your loan is shortened and you could save several months and you will able to pay off your loan faster.
  • Round up the payments

Rounding up your payment is a very efficient way and also effortless way of paying off your loan faster. By doing so, you will be paying extra without missing out your funds. By doing so you will not be needing lots of extra bucks and make your savings empty you can gradually pay off your loan faster and you would not even know when it is over. You can even go a step further and you can increase your payment after sometime and by doing so you can pay off your loan faster. By doing so the life of your loan will be shortened and the amount of interest will be lessened.

  • Find extra money

You must be addicted to buy stuff on usual base but sometime do the opposite thing. You can sell out your extra things and generate extra money from that and increase your money and pay off your loan faster from that extra money. Although selling old stuff is not going to earn you a big fortune but it will definitely avail you with making payment of at least one of the instalment.

  • Make one extra payment

If you are not comfortable with making bi weekly payment of instalments for paying off your loan faster than you can try and make one extra payment every year. This will also help you to pay off your loan faster. Making one extra payment will also make you burden free early.

Savings Account

July 29th, 2015

savings accountBanks have different types of accounts which are formulated on the basis of the needs of the depositors. Like current account is opened by the business entrepreneurs to operate their business transaction, checking account to regulate the routine affairs of the depositors and not to involve money their routine transactions. Like that savings account also plays their role in the banking field. The most used account in the banks, financial institutions or the credit union is the savings account. Savings account is very helpful for the depositors who want to deposit their money in their respective banks. Savings account can also be considered as the account which provides a rise to the money deposited by the account holders.

Savings account is provided to pay off the interest on the money you have deposited in the account. Account holders can make deposits, withdrawals of cash from their savings account. This account is considered similar to that of the checking account but with different features of it. Opening a saving account in the bank is very easy and simple. This account can be opened with the nominal fee which is charged by the bank at the time of opening the account. This amount is just for the deposits and the proof of the savings account opened in the name of the depositors. Savings account is found in all the banks, financial institutions or the credit unions so any one can access this account with their respective banks.

Savings account provides with the facility of interest rate on the amount which is deposited in the account. This rate is higher than that of the checking account but is less than the certificate of deposits or the money market account. Transactions which are going to be performed are not restricted in savings account. It limits specific number of transaction of withdrawals because it is considered as the saving s account which has the main purpose of saving the money deposited. Now the facilities of multi banking have increased, so the person can withdraw or deposit the money in any bank to their respective bank account.

Savings account provides with the facilities of bank statements, passbook, Debit account to the account holder because this will maintain the track record of the transactions which are taken place. Debit card is very useful for the account holders because it helps the holder of not going to the bank for withdrawing the money but can easily access the amount they want to withdraw from the ATMs. People can now withdraw their money from different ATMs of different banks but a nominal fee is charged by the respective bank whose ATM is been used. There are many benefits of savings account.

Some of the banks charge the minimum balance fee. This means if there is minimum balance in the savings account than additional fee is charges for maintaining the minimum balance in the account. Every bank has their different rules and regulations which can be differed from other banks. The facility of messaging to the account holders is been regulated by the bank, so that if any transaction takes place, direct message is end to the holder including and stating all the details regarding the transaction done by him in the bank.

10 Money Saving Tips

March 4th, 2014

Money Saving TipsAre you trying to save up some extra cash for an upcoming event? Be it for an occasion in the near future or for the long run, little tips like the ones below can help you save loads. Little changes in your day to day life can help you to minimize expenses and save money. Below are ten tips that can help you to have a financially safe future:

Saving on gas: When possible, try to walk or bike more. Not only is it beneficial for your body, but it can also save you a little on gas. If you can carpool with other people, that would also be another great way to save on fuel.

Save On Mortgage: Oftentimes a person isn’t financially secure enough to pay for their home in cash. If you are applying for a mortgage, make sure it’s the best on the market. Lots of loan options are available so pick the one is that is most cost effective. You can save loads this way.

Save on food: As an alternative to eating out on a regular basis, try to eat more home cooked meals. Not only will you save a lot more this way but you’ll also stay fit and healthy. While going grocery shopping, make a list in advance, so that you don’t end up buying extra items on a whim.

DIY Chores: By doing small household repairs yourself and not relying on experts for every chore, you can save a substantial amount. These professionals are absolute experts in the field but they don’t come cheap. Try to take up DIY project in hand to save money. However, there are times when you cannot do the repairs yourself and you might need to call them. In times like that, it’s best to consult a true expert like Allstate Roofing.

Early Booking: You can save a substantial amount by booking your airline tickets in advance. Try to plan your trips in advance and don’t leave the job of booking your tickets to the very last moment.

Do not hoard: Some people have a habit of hoarding stuff because we don’t want to dispose of them. Some items can be close to our heart, but there are quite a number of things which we have been hoarding unnecessarily. Selling them on an online platform can help you earn some extra cash.

Do your research before buying insurance: Make it a point to conduct thorough research before buying insurance. There are lots of insurance agencies on the market and checking what each ones offer will help you make an informed decision that is cost effective.

Water Meter: By installing a water meter, you can keep track of the amount of water you are using and hence save money.

Cut down on your electricity bill by switching certain electronic devices off that you don’t use all the time.

Say No When Needed: Last but not least, learn to say no to things you don’t absolutely need. Just because your friends have it or it looks attractive doesn’t necessarily mean that you need to get it. Steer clear of such temptations.

5 Tips To Get Easy Student Loan Approval

February 27th, 2014

Student Loan ApprovalNot everyone can pay the ever increasing school fees with ease. Besides the tuition, you also need to think about food, dorm expenses and other such expenses. One of the safest things you can do in the case of financial struggle is to get a private student loan. It will help you to get more organised and get things under control too.

Instead of worrying about your debts, you can get back to focussing on your studies and extra-curricular activities.

Here are some tips for getting your student loan approved:-

• Improve your credit score

One of the best ways you could possibly get your loan approved is by having a very good credit score and a co-signer. Not many people have impressive scores, so if you can clean yours up, you just might land the approval.

• Find a partner

You can partner with your family, close friends or relatives. However, even they must have a very good credit score. They need to have at least a few years of credit history and a low debt-to-income ratio.

• Exploit your relationships

If there are institutions that are familiar with your record, then you should try to get them to aid you. You need to reach out to banks that you already have a well-established connection with. You can even try local community banks.

• Reach an impasse

Sometimes banks don’t hand out loans to schools with low graduation rates or high default rates. The best you can do here is talk to your lender and reach an impasse

• Prove your family or financial problems

Your parents may be unable to co-sign due to financial problems or in cases of broken homes. If you can prove you are a hardworking person with potential, the bank would be ready to help you.

Mutual Fund Investment Risk

January 3rd, 2014

Mutual Fund Investment RiskMutual funds advertisements disclaim, “Mutual Funds are subject to market risk. Please read the offer document carefully before investing”. This disclaimer has been going on for innumerable years now just to make sure that the statutory requirements are taken care of. Only a handful of people must have heard this line when it flashes by at a speed faster than lightning on the television or radio or internet videos. In the case of print media (magazines and newspapers), it is published in such small fonts that you will have to look for it in order to read it. The advertisements are rarely educative, hence it is only the investors, who already do know the statutory requirements, who would know the full statement.

So what actually is the mystery behind this statement? This flash statement means that the money that is collected from investors is further invested by the mutual fund schemes in instruments that are “subject to market risk”. Every person investing in mutual funds must read the offer document thoroughly before they trust the fund house with their money.

So what exactly is “market risk”?

The risk that can reduce the value of the investments in the mutual funds due to market conditions is called market risk. With fluctuations in the market, value of property, gold and every type of asset goes up and comes down. The fluctuation that causes the market value to go down, and subsequently the investment value too, is referred to by this “market risk”. The various types of market risk are currency risk, interest rate risk, commodity risk and equity risk.

Currency risk: This kind of risk happens due to variations in foreign exchange rates.

Interest rate risk: This kind of risk happens because of variations in interest rates.

Commodity risk: This kind of risk happens because of commodity prices changing.

Equity risk: This kind of risk happens because of variations in stock prices. The mutual funds invest in these stock prices.