Returning Home

From Marsha A. Hall

From Working To At-Home Mother
We often hear about mothers returning to the workplace after staying home with their children for a few years. Special guest author Marsha Hall shares the story of her transition from working mother to stay-at-home mother.

Failed Expectations and Unexpected Peace

One woman's story of the transition from working out of the home to stay at home motherhood.

by: Marsha Hall

I never even considered staying at home with my daughter. I was educated and informed, and for four years, I didn't think I needed to. My reading revealed that children who attend daycare are as healthy and well-adjusted as children who stay home with a parent. I believed that Jessy's social and academic skills would be stronger. I did my homework and located good day care providers. Jessica consistently affirmed my beliefs.
She was always affectionate but never clingy. She loved her baby-sitter, she loved the other children, she was a happy child. Her mental and physical development was always 2-3 months ahead of the norm.

Routines were established, and I told friends and family how Jessy enjoyed having "her own little life". I marveled at the day care providers, wondering how they could spend fourteen hours a day or more surrounded by children. I enjoyed my nine hours of adult conversation and intellectual stimulation.

Something was missing and I didn't know what it was. I told myself that I had an easy and affectionate relationship with my daughter, that I was a better mother when I was working because I could compartmentalize my life and be truly present for my child when I was at home. The truth is, I wasn't.

Every weekday I arrived home at nearly 6:00 p.m. I made dinner, we ate, Jessy took a bath. Every night I read two stories to her, not always because I wanted to, but because I felt I had to in order to justify the nine hours I had spent away from her that day. I adore my daughter, but some nights I was just too tired and distracted. I tried to make it up on the weekend, but on Saturdays I did laundry, grocery shopping, paid bills, and cleaned the house. I usually collapsed sometime after 8:00 p.m. On Sundays I tried to do something fun with Jessy, but I never lost the feeling that I was compensating for the rest of the week, and that put a damper on the activities.

Last year, my husband and I decided that I would quit work and stay home with our daughter. She starts school in the Fall and I really wanted that last year. We had financial concerns, but when we wrote out a budget we realized that the cash flow difference could be overcome.
To Stay-at-Home Mom

I really had to talk myself into it. I did draw a good deal of my self-esteem from working. It was a place where I felt needed, competent, and in control. It was difficult to break away. I worried that I would become isolated and depressed. But the desire to know what it was that I felt was missing in my relationship with my daughter was stronger than my fear and we did it.

I had several preconceived notions about life at home. Not one of these has revealed itself as truth.

I believed that the housework would be a snap. After all, I had seven days to do what I formerly accomplished in one day. My husband would come home every afternoon to our tidy and polished corner of the world. What I failed to consider is that my daughter and I were home to create a mess. I also failed to realize how differently I would feel about the standard of cleanliness in my house.
When I was working I cleaned on Saturdays and expected a natural progression of clutter and buildup of dust. Now I have transferred the guilt I used to reserve for my family to the appearance of the home. I feel that care of the household is my contribution to our family work and if my husband does more than throw a uniform into the washer, then I am not doing my job.

I thought I would have all of this time on my hands. I would create a home environment which was educational, enlightening, and enjoyable. I planned lessons and made time for teaching my child the basics of Math, Spanish, Science, and Social Studies. I would develop in Jessy a passion for culture and the arts and raise her social awareness. I planned to keep the vegetable garden in year round operation and we would beautify our yard with flower beds and rose bushes. I thought we would be frequent visitors to local playgrounds and the beach since I had so much time on my hands. I had no clue.

I tried to implement my plan of action as if it were a project, but Jessica was easily distracted, clearly not interested, and the sessions usually deteriorated until I was frustrated enough to quit. I couldn't understand what I was doing wrong and I am still trying to fully understand it. I do know that I was still trying to make up for time lost. By planning thirty minutes to an hour of what I considered to be quality time well spent, I was still following my old pattern of squeezing it in when I could. I forgot the definition of quality time-- being fully present for your child during any length of time while participating in an activity or conversation which the child finds enjoyable. I was trying to force my needs and my dreams into a space that I told myself was for the benefit of my child.

This transition hasn't been easy. It has taken some time for both of us to adjust. The most painful insight I have had is that even though Jessy has always seemed to be happy and secure, she didn't trust me in this. She didn't believe me when I told her I would be home with her for a long, long time. I realized that after spending her days in child care, she didn't believe I could really stay home. In her memory, I hadn't ever been home with her for more than two weeks and she seemed to view this new development as an extended vacation. She also wanted to use this time to extract as much of my attention, good or bad, as she could before she returned to real life.

Gardening has proven to be the hobby that Jessy and I truly enjoy together. I can pull weeds by the hour while she digs into the soil, pulling from it every creepy crawly she can find, house, and feed. I love watching her lay out a pound of grass for the culinary delight of a quarter inch roly poly. Jessy loves to plant the seeds herself. Seeing a sprout come up for the first time through the eyes of your child is a pleasure not enough of us have known. The down side is that it's hard for me to find time to spend in the garden and lately Murphy's Law seems to dictate that when I have the time, El Nino is rearing its ugly head. By the time I get home and outdoors again, I have to repeat tasks and as a result, the garden I envision is still little more than a dream.

I had many plans and good intentions, so many ideas about how this would be. It hasn't worked out that way at all. I have discovered the answer to the question that led me down this path. What was missing? Me. I was missing. I was well meaning but self serving. In this experience I have not only formed a deeper and more honest relationship with my daughter, but I have touched that part of me that is not the face I put on when I go to work, or when I interact with others. Incredibly- I like her. I have given up the desire to be seen as the woman who has it all together and gained the knowledge that I really do have it all.

Top Ten Money Tips for Women

Turn Your Financial Life Around
Why do so many women delegate their financial security to a spouse or signficant other and allow divorce or death to plunge them into poverty? Why do so many women spend more than they earn and become mired in debt?

A National Center for Women and Retirement Research (NCWRR) study showed a direct correlation between a woman's personality characteristics and her financial habits. Assertiveness, openness to change, and an optimistic outlook are the qualities that tend to lead to smart money choices.

Financial Planner, author, and TV host Suze Orman believes our problems with money are manifestations of problems in our life and relationships. Work on the money issues and many of the other problems will take care of themselves; or, work on the other problems and the money problems will take care of themselves.
For many people, money is an emotionally charged issue. It may represent power, or love, or control, especially in relationships. Our beliefs about money and our emotional attachments to it strongly influence the way we spend and handle money.

Stock Trading Or Stock Investing

By Justin Blasi

As I study the markets daily, I find a unique trade or see a stock that looks beautiful, technically, on one of my numerous monitors. Occasionally, I find myself curious how a Warren Buffet, or some other master in the market, would view it. I then tell myself it is irrelevant; our style of capitalizing off the markets is completely contradistinctive to Mr. Buffet and most investors. One of the many lessons and rules of playing the markets is to comply with your technique. At Elite Trading & Speculation our style has more of a characteristic of a trader. On the contrary to many opinions on trading, we find this trait to have such a great paramount over the classic buy and hold strategy. I am not completely opposed to this casual technique of buy and hold, but I have found short term trading to be superior in allowing us to manage risk and returns. With recent market volatility and short term trading in general, this technique has become more interesting and admirable to the novice and retail investor.

First, let us remember how the classic investing technique works in general. A buy and hold portfolio needs to be diversified; this helps control risk and helps maintain the portfolio through market cycles. The portfolio should contain quality stocks and dividend paying stocks. Speculation is usually not included in a classic portfolio; however more aggressive investors do have a percentage of their portfolio in speculation, but a very small percentage. Fundamentals of each stock are very important. Most classic investors base 100% of their decision on fundamentals and ignore the technicals of the charts, although technical techniques do exist on the long term view and prove to be very effective if followed. The more advanced investor usually utilizes options and hedging techniques to manage risk, however the novice and retail investor lack knowledge in these techniques, therefore they leave this risk controlling variable out of their investment plan. The long term investor does and must trade, but they do this on a longer term basis. Once a component of their portfolio makes a great return over a long period of time the investor will either take some profits by selling a percentage of the position or swap into another stock. There are many more variables that go into classic investing, but by going through it generally will tell us this technique can work; history also tells us this technique works successfully from famous investing gurus. This technique may work well and satisfy many market players, but may put many retail and novice investors obliviously at a disadvantage. One con is the amount of capital it may take to realize gains. Starting out with little capital can be frustrating especially when the market is in a bearish mode for a lengthy period. Most classic investors do not play the market in every aspect. They usually lack the knowledge of or find it highly risky shorting stocks. When the market makes a huge correction, it always scares off a big percentage of classic investors out of the market indefinitely; although the correction could have been used as a huge buying opportunity and inevitably the market does go back up after a correction. If they would overcome their fears and hold their positions, they would go back up in parallel with more gains from new positions bought in the lows. The physiological effects are hard to bear for some when a considerable amount of an investor's capital is lost. A retail or novice investor, working a classic day job watching the market on a casual basis, may lack discipline. This does not mean investing or trading cannot be done part time, but many casual players become torpid as time goes by. This is a huge set up for complete failure.

Why do we use the edge of a short term trader here at Elite Trading and Speculation? We find numerous advantages, on top of the fact that the markets are a passion of ours wanting to be actively involved in them full time. We hold positions for periods ranging from intraday to 3months. Although we are short term traders, we still have long term outlooks on stocks as well as long term price targets. For example, we have had a long term outlook on Google since December of 2005. We have not bought and held our position, but rather traded around it since 2005. Let's compare our gains based on a $25,000.00 investment, to gains that would have been made if we just bought and held our position.

Our entry price was $412.50 in December of 2005. Go to our web site to view a chart of our entry points and exit points. Our rough average of holding a position is a little over 2 months. At today's current prices, by trading the position with $25,000.00 we have a gain of $32,899.00 a 76% return. If we would have bought and held using the classic buy and hold technique; selling around today's levels we would be sitting on a gain of $15,450.00 a 62% return. This only shows that trading can have a superior advantage if executed correctly! At the same time of capitalizing on this stock, we have controlled our risk. How have we controlled our risk? First of all, we constantly research the up to date fundamentals, news, the streets outlook, and conference calls. All these variables shows us our long term outlook, but one of our most important tools that we use for the short term entry and exiting points is the chart technical's. If there was to be a turn in the outlook at any point we could have quickly closed out our position, and waited for a pull back on the charts and at that point reevaluate the stock. The saying is a trader is always on the edge worried and stressed, but on the contrary I feel more comfortable knowing I am on top of my research and if the markets turned I could quickly turn with them and profit from the downside. If we would have shorted this stock on the pullbacks we would have almost doubled our gain.

Diversification in trading is not an important variable. If technology is working at the present time, that is what we put to work. If the market cycle changes we could quickly reposition into new stocks that do well in that type of cycle. In doing this, your full portfolio is always working for you; as opposed to classic investing diversification is what keeps you a float; when one part of your portfolio is not working the part that is working helps you stay in the game. One could have debated years ago that trading is not worth it due to brokerage fees. That debate is obsolete today with discount brokerage firms such as E-trade, Trade Station, and so on. These firms provide trading at deep discount fees. One could have also debated years ago that you would need a professional to trade the markets, and you would need to be in the trading pits all day. Today with the internet we can make trades at lightning speeds, and as far as information goes that is also delivered today at lightning speeds through the internet. Not to mention CNBC, and Bloomberg Television, these networks provide a great wealth of information, debates, interviews, and breaking news. Benefiting from options is also a advantage to a short term trader. There are numerous complex and also fairly simple strategies to insuring your short term positions. This is a general overview of investing and trading; we could study the technique of trading, investing, and the markets for many life times. Bottom line, the two forms of capitalizing off the markets described here will work; it is up to you to find your niche and what works best for you. Once you discover your style, study it and execute it with passion.

Founder of Elite Trading & Speculation. I am a student of the markets; I research and trade the markets daily. I founded Elite Trading & Speculation to network our research and the research of our contributers and in doing so providing investors like yourself access to our information to shadow our trades and gain knowledge of the markets.

www.elitestockpicker.com

Article Source: http://EzineArticles.com/?expert=Justin_Blasi

Online Investment - How To Make And Save Money Online?

By Micheal James

Stock Exchange is the symbol of the free market economy. Here the bull and the bear does the talking for the open market and participate in the uncertain roller costar ride of buying and selling and investing in company derivatives known as shares. You can call it a gamble or you can speak the expert words and address it as place of actuarial science. Look at it at whatever way you can but stock market is now the place to make some quick bucks.

Money has two forms of use. Money can be used as a common way of transaction and be used for buying and selling things or money can be used as store value of assets. This is known as the speculative use of money. Investing in stocks is like investing in the speculative value of money. Stock market allows us to invest in shares. Shares are small units of the company, which are listed in the share market. People can invest their money in the form of stocks and expect their money to appreciate along with the expansion of the company.

Investing in stock has it share of subtle risk but profit is the reward of the risk. Stock market investing has become very lucrative. It is those rare forms of business where people become over night millionaire by just investing in stocks and selling them. But for stock market investing one thing that is the most important is the sound knowledge. Perfect knowledge about the volatile market can save a person from the uncertainty of the stock trading.

Stockbrokers and online stock trading has made the job of your investment easy. Online trading and investing has various advantages over conventional modes of stock trading. Online trading in stocks is much more hassle-free and cheap. Online trading should be taken care of in various senses. One should do a good profile check of the company in which they want to invest. One should keep a good know how about the companies past performance and its future prospects. Before quoting any share one should keep in to account the stock quotes, trading options of shares, payment mode, commission rates, etc. one should know about the financial condition the company is in present moment. One should also take care of the broker's service, which it is using for stock market investing. Efficiency and expertise of the broker can make a big difference to the trading of stocks and also your bank balance.

Various advantages of online investing are as follows:

* Online investments are much more hassle-free than any other conventional way of investing. A click of the mouse is all that you need.
* Financial data and service of the online broker who sells certainty in this uncertain world of stock exchange is very minimal.
* Internet connects all the major stock exchanges of the world and hence one can open their option of foreign portfolio investment.
* Getting updates and minimal establishment cost are other advantages of online investment.

Therefore, it's the right time to invest your money and get maximum profit out of it.

Make Money, Cut Losses - A Practical Approach

By: Micheal James

Making way for profits has always been difficult task. Whether in jobs or business profit making and cutting down losses is the crust of every activity. Similarly, making profit in the stock world is also quiet tedious. At times there are situations that can lead to treasures at your accounts and some wrong shots can get you on the way of bankruptcy.

However, there are some disciplines that can track profit to your way and cut down your losses. Enlisted are just few words on some of them.

* Thorough analysis: fundamental and technical analysis gets an evaluated assessment to the trader for proper investments. Stock investments do not work on gut instincts and hence there is a need of proper analytical statements. Fundamental analysis is the process of studying the company's management and current position in the market and technical analysis involves a study of charts to identify trends of the targeted company. These analysis helps in deciding upon the investments, thus, reducing the risks of losses.

* Diversification: integration of investments helps diversify losses and profits. The 2% rule is quiet beneficial to countering risk of major losses. This process includes the integration of stock investments to shares of many companies. This avoids the risk of major loss as the money is segregated to different channels. It is advised that not more than 2% of total investment in shares must be invested in one company. That helps maintaining a balanced portfolio and avoids heavy losses.

* Automate your trading: this option is best for the traders who are quiet emotional with their shares. The automated investments set a limit for trader and the stocks are automatically sold on particular prices. This option helps to avoid holding of shares that are going down, in hope of them to again get a hike. Thus, avoiding major losses.

* Stop order technique: this is quiet similar to automated investments. Here also, the limit for each share is directed to the stock broker and he does not retain the share below that price limit. This also helps in avoiding major losses due to holding the shares in hope of rising prices.

* Stock market risk: though concept of risk and managing it is a difficult part of trading but working on it gets loads of future benefits. Defining the perception of risk and its identification can help the trader to make wise decisions, hence, increasing profits in long run.

* Stop holding mediocre performers: if a stock is generating low returns there is no need to hold it for long. Though holding it for a decent time is advisable but after some time when you evaluate it and it maintain to be an under-performer it is advisable to sell it before it under-performs and start incrementing losses.

* Say yes to sell for minor gains: greediness always takes one to loss hence, if a decision is made to sell a particular stock, there should be no delay in the decision. Postponing selling for last fractions of profits may turn out to be costly for any trader.

* Say no to rebound expectation: you are holding a stock and the prices are going down, still holding it expecting the rise in the price in the near future is not recommended. It is beneficial to sell that stock immediately even if that means little losses. This bit of loss may be recovered but steep fall in prices of that holded stock may kick you out of the game. Hence, to avoid high losses, do not look for rebounds in stocks.

Is There Really A Magic Formula For Investing?

By:Geoff Gannon

One question almost every investor asks at some point is whether it is possible to achieve above market returns by selecting a diversified group of stocks according to some formula, rather than having to evaluate each stock from every angle. There are obvious advantages to such a formulaic approach. For the individual, the amount of time and effort spent caring for his investments would be reduced, leaving more time for him to spend on more enjoyable and fulfilling tasks. For the institution, large sums of money could be deployed without having to rely upon the investing acumen of a single talented stock picker. Many of the proposed systems also offer the advantage of matching the inflow of investable funds with investment opportunities. An investor who follows no formula, and evaluates each stock from every angle, may often find himself holding cash. Historically, this has been a problem for some excellent stock pickers. So, there are real advantages to favoring a formulaic approach to investing if such an approach would yield returns similar to the returns a complete stock by stock analysis would yield.

Many investment writers have proposed at least one such formulaic approach during their lifetime. The most promising formulaic approaches have been articulated by three men: Benjamin Graham, David Dreman, and Joel Greenblatt. As each of these approaches appeals to logic and common sense, they are not unique to these three men. But, these are the three names with which these approaches are usually most closely associated; so, there is little need to draw upon sources beyond theirs.

Benjamin Graham wrote three books of consequence: “Security Analysis”, “The Intelligent Investor”, and “The Interpretation of Financial Statements”. Within each book, he hints at various workable approaches both in stocks and bonds; however, he is most explicit in his best known work, “The Intelligent Investor”. There, Graham discusses the purchase of shares for less than two – thirds of their net current asset value. The belief that this method would yield above market returns is supported on both empirical and logical grounds. In fact, it currently enjoys far too much support to be practicable. Public companies rarely trade below their net current asset values. This is unlikely to change in the future. Buyout firms, unconventional money managers, and vulture investors now check such excessive bouts of public pessimism by taking large or controlling stakes in troubled companies. As a result, the investing public is less likely to indulge its pessimism as feverishly as it once did; for, many cheap stocks now have the silver lining of being takeover targets. As Graham’s net current asset value method is neither workable at present, nor is likely to prove workable in the future, we must set it aside.

David Dreman is known as a contrarian investor. In his case, it is an appropriate label, because of his keen interest in behavioral finance. However, in most cases the line separating the value investor from the contrarian investor is fuzzy at best. Dreman’s contrarian investing strategies are derived from three measures: price to earnings, price to cash flow, and price to book value. Of these measures, the price to earnings ratio is by far the most conspicuous. It is quoted nearly everywhere the share price is quoted. When inverted, the price to earnings ratio becomes the earnings yield. To put this another way, a stock’s earnings yield is “e” over “p”. Dreman describes the strategy of buying stocks trading at low prices relative to their earnings as the low P/E approach; but, he could have just as easily called it the high earnings yield approach. Whatever you call it, this approach has proved effective in the past. A diversified group of low P/E stocks has usually outperformed both a diversified group of high P/E stocks and the market as a whole.

This fact suggests that investors have a very hard time quantifying the future prospects of most public companies. While they may be able to make correct qualitative comparisons between businesses, they have trouble assigning a price to these qualitative differences. This does not come as a surprise to anyone with much knowledge of human judgment (and misjudgment). I am sure there is some technical term for this deficiency, but I know it only as “checklist syndrome”. Within any mental model, one must both describe the variables and assign weights to these variables. Humans tend to have little difficulty describing the variables – that is, creating the checklist. However, they rarely have any clue as to the weight that ought to be given to each variable. This is why you will sometimes hear analysts say something like: the factor that tipped the balance in favor of online sales this holiday season was high gas prices (yes, this is an actual paraphrase; but, I won’t attribute it, because publicly attaching such an inane argument to anyone’s name is just cruel). It is true that avoiding paying high prices at the pump is a possible motivating factor in a shopper’s decision to make online Christmas purchases. However, it is an immaterial factor. It is a mere pebble on the scales. This is the same kind of thinking that places far too much value on a stock’s future earnings growth and far too little value on a stock’s current earnings.

The other two contrarian methods: the low price to cash flow approach and the low price to book value approach work for the same reasons. They exploit the natural human tendency to see a false equality in the factors, and to run down a checklist. For instance, a stock that has a triple digit price to cash flow ratio, but is in all other respects an extraordinary business, will be judged favorably by a checklist approach. However, if great weight is assigned to present cash flows relative to the stock price, the stock will be judged unfavorably. This also illustrates the second strength of the three contrarian methods. They heavily weight the known factors. Of course, they do not heavily weight all known factors. They only consider three easily quantifiable known factors. An excellent brand, a growing industry, a superb management team, etc. may also be known factors. However, they are not precisely quantifiable. I would argue that while these factors may not be quantifiable they are calculable; that is to say, while no exact value may be assigned to them, they are useful data that ought to be considered when evaluating an investment.

There is the possibility of a middle ground here. These three contrarian methods may be used as a screen. Then, the investor may apply his own active judgment to winnow the qualifying stocks down to a final portfolio. Personally, I do not believe this is an acceptable compromise. These three methods do not adequately model the diversity of great investments. Therefore, they must either exclude some of the best stocks or include too many of the worst stocks. It is wise to place great weight upon each of these measures; however, it is foolish disqualify any stock because of a single criterion (which is exactly what such a screen does).

Finally, there is Joel Greenblatt’s “magic formula”. This is the most interesting formulaic approach to investing, both because it does not subject stocks to any true/false tests and because it is a composite of the two most important readily quantifiable measures a stock has: earnings yield and return on capital. As you will recall, earnings yield is simply the inverse of the P/E ratio; so, a stock with a high earnings yield is simply a low P/E stock. Return on capital may be thought of as the number of pennies earned for each dollar invested in the business. The exact formula that Greenblatt uses is described in “The Little Book That Beats the Market”. However, the formula used is rather unimportant. Over large groups of stocks (which is what Greenblatt suggests the magic formula be used on) any differences between the various return on capital formulae will not have much affect on the performance of the portfolios constructed. Greenblatt claims his magic formula may be used in two different ways: as an automated portfolio generation tool or as a screen. For an investor like you (that is, one with sufficient curiosity and commitment to frequent a site such as this) the latter use is the more appropriate one. The magic formula will serve you well as a screen. I would argue, however, that you needn’t limit yourself to stocks screened by the magic formula, if you have full confidence in your judgment regarding some other stock.

These four formulaic approaches (the three from Dreman and the one from Greenblatt) will likely yield returns greater than or equal to the returns you would obtain from an index fund. Therefore, you would do better to invest in your own basket of qualifying stocks than in the prefabricated market basket. If you want to be a passive investor, or believe yourself incapable of being an active investor, these formulaic approaches are your best bet. In fact, if I were approached by an institution making long – term investments and using only a very small percentage of the fund for operating expenses, I would recommend an automated process derived from these four approaches. I would also recommend that 100% of the fund’s investable assets be put into equities, but that is a discussion for another day (in fact, it’s a discussion for Tuesday; my next podcast is devoted to the dangers of diversification). If, however, you believe you have what it takes to be an active investor, and that is truly what you wish to be, then, I would suggest you do not use these approaches for anything more than helping you generate some useful ideas.

If you choose this path, you need to be clear about what being an active investor entails. Read this next part very carefully (it is correct even though it may not appear to be): I have never found a screen that generates more than one buy order per hundred stocks returned. Even after I have narrowed the list of possible stocks down by a cursory review of the industry and the business itself, I have never found a method that can consistently generate more than one buy order per twenty – five annual reports read. Here, I am citing my best past experiences. In my experience, most screens result in less than one buy order per three hundred stocks returned, and I usually read more like fifty to a hundred annual reports per buy order at a minimum. You may choose to invest in far more stocks than I do. Perhaps instead of limiting yourself to your five to twelve best ideas as I do, you might want to put money into your best twenty – five to thirty ideas. Do the math, and you’ll see that is still quite a bit of homework. That’s why remaining a passive investor is the best bet for most people. The time and effort demanded of the active investor is simply too taxing. They have more important, more enjoyable things to do. If that’s true for you, the four formulaic approaches outlined above should guide you to above market returns.

Article Source: http://articles-4-free.com

Why You Must Invest In Gold Today

By: Scott Michaels -

Gold. Rare, beautiful, and unique. Treasured as a store of value for thousands of years, it is an important and secure asset. It has maintained its long term value, is not directly affected by the economic policies of individual countries and doesn't depend on a 'promise to pay'.

Completely free of credit risk, although it bears a market risk gold has always been a secure refuge in unsettled times. Its ‘safe haven’ attributes attract wise investors. Gold has proved itself to be an effective way to manage wealth.

For at least 200 years the price of gold has kept pace with inflation. Another important reason to invest in gold is its consistent delivery within a portfolio of assets. Its performance tends to move independently of other investments and of key economic indicators. Even a small weighting of gold in an investment portfolio can help reduce overall risk.

Most investment portfolios are invested primarily in traditional financial assets such as stocks and bonds. The reason for holding diverse investments is to protect the portfolio against fluctuations in the value of any single asset class.

Portfolios that contain gold are generally more robust and better able to cope with market ncertainties than those that don't. Adding gold to a portfolio introduces an entirely different class of asset.

Gold is unusual because it is both a commodity and a monetary asset. It is an 'effective diversifier' because its performance tends to move independently of other investments and key economic indicators.

Studies have shown that traditional diversifiers (such as bonds and alternative assets) often fail during times of market stress or instability. Even a small allocation of gold has been proven to significantly improve the consistency of portfolio performance during both stable and unstable financial periods.

Gold improves the stability and predictability of returns. It is not correlated with other assets because the gold price is not driven by the same factors that drive the performance of other assets. Gold is also significantly less volatile than practically all equity indices.

The value of gold, in terms of real goods and services that it can buy,has remained remarkably stable. In contrast, the purchasing power of many currencies has generally declined.

Traditionally, access to the gold market has been through: investment in physical gold, usually as gold coins or small bars,or, for larger quantities, by way of the over the counter market; gold futures and options; gold mining equities, often packaged in gold-oriented mutual funds.

Article Source: http://articles-4-free.com

Why Not Forex Trading System?

By: Kenneth Langlet -

The foreign exchange markets are all about Forex trading systems. If you are interesting in expanding your investments and learning more about how you can make money in the foreign markets, Forex is what you should be looking to understand and learn more about. Just as there are all types of investment strategies in your own country, in products and companies that are sold near where you live and work, you can also get involved in the companies and products that are sold abroad. Foreign exchange markets are some of the hottest markets that you can find to make money in your investment portfolio.

The exchange rate from country to country can be just one step in where you are going to make money. For the dollar, changed to another currency can equal more opportunities to purchase additional stocks. The companies you are going to be investing in will be based in that other currency so you will need to exchange your money into that other currency before investing.

You can invest in Forex trades on your own or through a broker firm. If you are going to invest your money on your own, it is suggested that you learn about the company, about the other methods of trade, and you learn more about the currencies where you are going to invest your money. There are over one trillion dollars in trades made per day in the Forex markets. If you are careful and study where you are going to put your money, you can earn more by making the right choices. It takes at least two months worth of trading on the US market to equal the trades that are going on in the Forex markets. Foreign companies are open to investors, and will give great returns to those who ‘do’ their homework.

You will need to learn and study the charts of the companies you are going to consider investing with. Charting and following the growth and the downfalls of companies can be seen if you take your time before jumping in and investing. This is one thing that a Forex trading system is going to open you to. Forex trading systems are methods that are already proven for watching and detailing companies as they change and grow. Without some type of Forex trading system to follow you could be shooting in the dark to find that company that is just right for your needs while investing.

Forex trading systems are becoming so very popular because there are so many additional methods that can be used to get into the markets that are not available through the New York Stock exchange. If you want to reach a Forex trader you could be reaching on that works from their home, or in an office that is around the world. Following a particular Forex trading system is something you will become more comfortable with as you learn more about the individual markets, the companies, and about the value of foreign currencies. Open your mind to make money using the methods you can learn, and complete on your own time.

Article Source: http://articles-4-free.com

What Is Forex?

By: Willie Reynolds -

It may come as a shock to the investment rookie, but Forex is the largest market in the world. Forex is an abbreviated form of the term Foreign Exchange, or simply currency. These terms refer to the monetary value of one country’s money value (as measured by the country’s largest single-value denomination) and is usually measured in comparison to the unit of currency used by the country in which the investor is a citizen.

The measure by which Forex is considered the largest market is in terms of cash value traded, and it is used by every type of investment imaginable, from individuals (who use brokers or banks) to governments to international banking firms. Forex is extremely popular due to its extreme liquidity and its time capacity (with three large stock markets open day long during the week, it is possible to exchange foreign currency at every hour of the day). Liquidity is a term that is short for market liquidity, which refers to the ability to quickly buy or sell without causing a dramatic fluctuation in price. As currency for countries is determined mostly by internal (domestic) factors rather than external ones, Forex is not subject to the fluxes caused by a panicked sell-off.

As the industrial market place and arguably the defining center of the world, the dollar of the United States is used by far the most in Forex transactions. Involved in 89% of transactions, the US dollar was way ahead of other currencies, followed distantly by the euro (37%) and then the yen (20%). Remember that the numbers here do not add up to 100% because every transaction will contain at least two different currencies.

Forex speculators are a controversial topic among economists and politicians alike. One school of thought posits that currency speculation can contribute to a country’s economic downfall, as a lower currency value causes the price of inflation in comparison to imported goods to rise, snowballing the problem. Countries that are primarily exporters to a country with a higher currency value, however, receive benefits when their dollar is lowered in comparison, as their goods are thus inherently easier to purchase. The opposing view to the speculators as instruments of economic downfall is that speculators serve to keep currency regulated according to international agreements, and that their profits are the results of basic economic laws. Those who subscribe to this theory often point out that the opposing view is held all too often by leaders seeking to deflect attention away from their own domestic policies when explaining to a populace why their economy is in the toilet.

Individuals wishing to become involved in the Forex market need to remember that they must do so through a broker or bank, bodies regulated by their governments and international agreements to prevent the unlawful profit resulting in economic damage to a different country. Investing through these bodies inevitably means that the individual will not see the full results of their investment, as they naturally provide some insulation for themselves against loss in the fluctuating market.

Article Source: http://articles-4-free.com

Forex - What is Technical Analysis?

By: Katerina -Mitrou

When trading in the foreign exchange market, part of the process involves forecasting future price movements in order to determine the best time to buy and sell. One method, called technical analysis, takes a look at the market’s past price movements to determine where the numbers will go in the future. Most investors who employ this type of analysis look mostly at price data, but sometimes information such as volume and open interest in futures contracts are also taken into consideration. If you’re just starting out in forex, the rule of thumb is to keep your methods simple - follow the basics, which have been proven over time, and only when you have gained some experience introduce more difficult techniques into your plans.

Technical analysis is almost always used on some level because price charts provide a good visual representation of the price history of a particular currency. At the very least, they can help you determine ideal entry and exit points for a trade based on the historical data. You can decide whether or not you’re buying at a fair price, selling at the top of a cycle, or entering into a shaky market.

It may seem as if adherents of technical analysis disregard market fundamentals in favor of mounds of charts and data, but they argue that these fundamentals are ingrained in the actual numbers. Something unpredictable may cause the numbers to unexpectedly spike, but you can still analyze the data, and identify patterns that will aid you in forecasting future prices.

Essentially, technical analysis can be summed up in three points. First of all, as mentioned above, technical traders assume that market fundamentals are tied to the price data. This is why factors such as the fear, hope, and mood of market participants are not contemplated directly.

Secondly, the idea that history repeats itself is core to this system of analysis. It is possible to look for patterns in price movement (called signals) because the market is predictable. When you look at past market signals you should be able to predict future signals.

Lastly, technicians rely on trends. From this analytical perspective, the market is not irregular or unpredictable. Rather, you can determine, to a high degree of accuracy, what direction a price will take: up, down, or sideways. In addition, trends are expected to continue for a period of time, making it possible to formulate predictions.

But it’s important to understand that technical analysts use more than price charts to determine good entry and exit points. Price charts are used in conjunction with volume charts, and other mathematical representations of market signals. Called studies, these additional pieces of information add another layer of data to the analysis. They let the trader look at the strength and sustainability of trends, in addition to the bare statistics.

Technical analysis is, of course, quite complicated - but for the new trader just starting out in forex, following the basics is a good place to begin. After you gain some experience and learn more about the foreign exchange market, you can delve into more complex research strategies.

Article Source: http://articles-4-free.com

Finance Tips

By: jupita

Here are some useful finance tips to get you started on the
right path to your finance success. Knowing how to secure
your financial well-being is one of the most important things
you'll ever need in life. You don't have to be a genius to do
it. You just need to know a few basics, form a plan, and be
ready to stick to it. No matter how much or little money you
have, the important thing is to educate yourself about your
opportunities.

There is no guarantee that you'll make money from investments
you make. But if you get the facts about saving and investing
and follow through with an intelligent plan, you should be able
to gain financial security over the years and enjoy the
benefits of managing your money.

No one is born knowing how to save or to invest. Every successful
investor starts with the basics. A few people may stumble into
financial security - a wealthy relative may die, or a business
may take off. For most people however, the only way to attain
financial security is to save and invest over a long period of
time. Time after time, people of even modest means who begin the
journey reach financial security and all that it promises: buying
a home, educational opportunities for their children, and a
comfortable retirement. If they can do it, so can you.

Your "savings" are usually put into the safest places or products
that allow you access to your money at any time such as a savings
accounts. But there's a price to pay for security and ready
availability. Your money earns less interest as it works for you.

Most smart investors put enough money in a savings product to
cover an emergency, like sudden unemployment. Some make sure
they have up to six months of their income in savings so that
they know it will absolutely be there for them when they need it.

But how "safe" is a savings account if you leave all your money
there for a long time, and the interest it earns doesn't keep
up with inflation? Let's say you save a pound when it can buy
a loaf of bread. But years later when you withdraw that pound
plus the interest you earned, it might only be able to buy half
a loaf. That is why many people put some of their money in
savings, but look to investing so they can earn more over long
periods of time, say three years or longer.

You may prefer to invest your money in order to achieve a higher
return compared to savings but you should be aware that when you
"invest," you have a greater chance of losing your money than when
you "save." You could lose your "principal," which is the amount
you've invested. That's true even if you purchase your investments
through a bank. But when you invest, you also have the opportunity
to earn more money than when you save.

All investments involve taking on risk. It's important that you
go into any investment in stocks, bonds or mutual funds with a
full understanding that you could lose some or all of your money
in any one investment.

Article written by John Mussi.

Article Source: http://articles-4-free.com

Finance Guide Basics

By: jupita

Every one or rather almost every one in this world would
definitely want to have his or her future secured. Thus,
every person who earns even a bit would like to save some
of the money and this is where the topic of personal financial
management comes into picture. Whatever be your purpose of
saving money, it needs to be regulated and updated.

Investment in stock markets is one option for the same. With
the advancement in technology and thereby, in means of
communication (for instance, the internet), the behavioural
pattern of the stock markets can be known within an instant
of time. Moreover, as the presence of the stock markets being
in every country, one can see the maximum numbers of investments
all over the world are made here.

Another option where you can regulate your finances is by
buying stocks. It is argued that although they are the diciest
and most fickle instruments for investments, they can bring
tremendous returns in the long run and can even leave you
resistant to the rate of inflation. By owning a particular
amount of stock, one is deemed to be the owner of a certain
value of a company i.e. the more stock is owned by you the
more faction of the company is in your hands. The prices of
the stock ca change in accordance with all the factors
affecting the stock markets for instance, economic,cultural
and business trends.

Often it is seen that we tend to leave the saving for college
and retirement till the last minute and then certain unwilling
consequences have to be borne. College planning resembles
retirement planning. There are bound to be questions in one’s
mind like how much one should save for such kind of expenses
etc. it is recommended that where the planning for retirement
should start in one’s early twenties, the planning for college
should start right from the birth of the child. It is agreed
by many that early planning and savings can be of huge benefits
in the long run. Planning for the college will include looking
for various colleges for alternatives, tuition fees and any
extra expenditure that might occur at the time for sending a
child to the college. Starting all this early enough will
provide adequate time to the parents to look for availing loan
facilities and decide their strategy accordingly. Retirement,
which is inevitable, has to be planned on the similar lines as
that of the college planning. Starting early and being realistic
are the keys for such kind of planning. Starting early means
to start soon after one has completed his or her graduation.
By being realistic it is intended to convey that one has to
save according to one’s requirement of the kind of life proposed
to be lived after the retirement. This is to say that one has
to focus on the facts basically, for instance, if one plans to
live like a king with housemaids serving all the time and a
castle like house then one has to save much more than a person
who chooses to live a modest life with a simple house and an
off-hand vacation.

Hence, you should manage your finances cautiously with investing
in the right thing at the right time and saving money for the right
time, because surely, time is money!!

Article written by Mansi Aggarwal.

Article Source: http://articles-4-free.com

Do You Want To Know Dissimilarity Between a HYIP and a Ponzi?

By: David Vagner

$8289.68 is a reality in month without work. I made it in this month without HUGE efforts. In this article I will tell you difference between a ponzi and a HYIP.

All you know that you can made money from investing into HYIP. Online HYIPs rarely provide information to their investors of what is done with their money. This makes it easy for fraudulent programs to succeed. Dishonest organizers can set up a website to look like the other HYIPs available on the net, wait for investors to place their money in their hand and then stop the activity and walk away with the cash.

What exactly is a ponzi scheme

Ponzi schemes or pyramid schemes has nothing to do with investments, business or sales. Simply because they don't trade your money or they don't sell you anything. The fact is that a ponzi scheme uses the money of new investors to pay out old investors. Some ponzi schemes are surviving a few weeks and some of them even a few months. But this is for sure they all go die after some time. Why? Because mathematically it's impossible to find new investors. Or sometimes the legal authorities find out the ponzi scheme and close it.

A true Ponzi scheme usually promotes what appears to be a real investment opportunity which investors may contribute to without actually being an affiliate, distributor etc. A pyramid scheme, on the other hand, usually requires that participants make a payment for the right to recruit other people into the scheme, at which point they will receive money.

There are a number of ways to spot a Ponzi scheme from a genuine HYIP opportunity. Firstly, be wary of schemes that offer a high daily percentage return. If a site offers you 40% a day on your investment, you should question where the funds will come from to make that level of payment. Secondly, although HYIPs often pay you for referring others to their schemes, these payments are often low. If you are offered 10% per referral it is worth considering if that may be because referrals are the only way for the system to keep going. Lastly, look closely at the site and its design and functionality. If you spot a lot of content that looks as though it has been simply copied from another website, or if the design and layout is particularly amateurish, it could well be that the organizers know that it will not be needed for long as the system is only a short term thing to make them money.

Be wary of anything that sounds too good to be true. It probably is if it sounds like it might be. Anyone that promises a guaranteed return in any amount of time is probably not legitimate. There is no such thing as a guaranteed return when it comes to investing money. And on any return there is no guaranteed amount that can be returned. So either promise is someone out to scam you. Common sense goes a long way when it comes to investing money anywhere.


This and more educational hyip articles can be found on HYIP rating For more information check site HYIP rating or visit http://thehyips.net/lessons/

Credit cards for students - are they a help or a hindrance?

By: Michael Hanna

Debt and credit cards have become an inevitable part of a
modern UK student's life. With graduate debt running at an
average of over ?13,000, it is easy to see the appeal of
gaining the ability to spread the day to day living costs,
putting them off until that high paid post college job
appears.

Visit most University Freshers Fairs and it will be easy
to find several different banks offering student financial
services, alongside Virgin and Barclaycard student credit
cards,all with low introductory rates, shopping discounts,
free CDs, or other new gift idea.Despite having a low irregular
income and no credit history, students represent an ideal
target for the banks. The reasons that students are desirable
as new customers is that over their working lifetime graduates
earn on average of ?400,000 more than non-graduates UK,
combined with the fact that once they have accounts in place,
people are generally reluctant to switch to other providers,
and so by attracting students early in their financial life,
they are liable to remain with the same credit card provider
for life. Obtaining a student credit card can also be of great
benefit to students, not only by assisting with the daily
budgeting, but also by initiating the creation of a credit
history that can be used to support future loan and mortgage
applications. There are drawbacks however, and it is however
important to be remember not to abuse these newly obtained
credit facilities, as any credit obtained will always need to
be repaid and building up a poor credit history can prove
damaging to future finance applications.

It should be noted that students are not restricted to just
choosing a student credit card, however as some standard
credit cards do not require the applicant to maintain a minimum
regular income, however there is generally little or no difference
between the cards themselves, and the various free extras combined
with the ease of obtaining a student credit card rather than a
standard one, frequently make student targeted cards a better
option.

With online fraud protection, travel assistance, online account
management, 24 hour helplines and free text alerts set up to
notify when payment dates are due, the beneficial reasons for
students to obtain a card are numerous, and as long as care is
taken to not over use the facilities and repayments are met,
then a credit card can provide a useful flexibility for their
personal finances.

An important point to remember whenever taking out any form of
finance is to take the time to compare as many of the currently
available deals that are available. With a little care and a simple
check on the suitability and interest rates which will be payable,
using free credit card comparison services like Moneynet can help
to minimise the potential repayment costs involved in the future
as well as maximizing the various benefits.

Disclaimer:

All information contained in this article, is for general
information purposes only and should not be construed as
advice under the Financial Services Act 1986.

You are strongly advised to take appropriate professional
and legal advice before entering into any binding contracts.



Article written by Michael Hanna.

Choosing A Broker - Your First Step To Forex Sucess

By: Smith Chen

As the online Forex trading market becomes increasingly saturated and the choice of brokers becomes wider, the decision of which broker to run with becomes increasingly important for the trader. Although the majority of brokers provide the same basic trading platform, there can be a vast difference in what they offer their clients, both in terms of trading conditions as well as customer support. By simply visiting a company's homepage it may be hard to separate the second-rate firms from the professionals, therefore this article will examine the main parameters that should be taken into consideration before creating an account and depositing.


Account type
The decision of which type of account to open will most likely depend on the amount of capital you have to invest. Most brokerages offer two main account types: a "Mini" ($100-$200 minimum deposit) and a "standard" account ($1,000-$2,000 minimum deposit). Mini accounts are best suited to new or amateur traders looking to gain market experience and confidence with a smaller investment, and offer higher leverage, which you’ll need in order to make money with such a small amount of initial capital. "Standard" account holders can expect to enjoy a wider variety of leverage options, but will have to invest a greater sum of money for the privilege. Although not as commonly advertised, many brokers provide a premium service for large investors (perhaps $100,000 - $250,000+), including additional VIP services, such as a dedicated fund manager and tailor made conditions.


Common to nearly all online brokers is the offer of a demo account, which allows users to get a feel for the software and gain trading experience without the risk of market exposure. Such simulations are undoubtedly beneficial to potential clients wishing to test the waters, but caveat emptor: they are not always representative of real-market, real-platform conditions, despite claims of full functionality. Do not be afraid to question a brokerage on this matter - an honest, reliable broker will admit the downfalls of a demo account.


Software Considerations
The foreign currency market can move at a fast pace and will often require you to make quick decisions and executions, regardless of where you happen to be. Depending on your level and frequency of trading as well as travel habits, it may be wise to choose a brokerage that offers a web-based Java trading platform, which requires no download and enables you to trade from any location worldwide.


Payment Options
Look for brokers that allow you to pay with credit card, as this is the easiest option by far and does not involve the necessity of transferring funds from online e-account. Other payment options typically offered include wire transfer, which is equally as secure as credit card, but expect to wait a number of days for it to clear and to have access to your funds.


Support
Perhaps one of the most crucial considerations and one that may potentially have a significant effect on your trading success is the issue of customer support. Whether you are a first time forex amateur or a FX vet, having the support and advice of a reliable, dedicated customer service team is undoubtedly invaluable, so it would prudent to do your homework on this one. The only way to gauge the quality of a support team is to contact them and see how they deal with your inquiries: are they fast, do they give reliable technical and market advice; do you get the sense that they know the industry well enough to advise others, or are they simply good sales people? This might not be so easy to find out, but as the only point of contact between yourself and the brokerage, it is important to do so. As with any business, pre-sale service might be more satisfactory than post-sale, so again, try to judge whether or not you are being helped or simply pitched.


Platform, Tools & Analysis
In the present online market place it is rare to find a company which does not offer real-time tools such as charting and price updates, but predictably the quality and availability of such applications will vary from broker to broker. Ideally you should have access to a wide range of tools, enabling you to assess the market 24 hours a day, making your trading decisions accordingly, and in addition your broker should also provide you with daily market reports, prepared in-house by professional analysts. These reports should cover the basics: economic news relevant to the major currencies, technical movements and general commentary. The better known, more reputable analysts have their reports published on a number of the larger online forex portals and forums, which is an indication that their data is considered accurate and reliable, which in turn tells you a little more about the reliability of the brokerage itself.
As previously mentioned, many trading platforms offer the same basic functions, but not all brokers cover all areas of the forex market, so before committing make sure your chosen platform will let you trade the currency pairs you require.


Spreads
Spreads are an important factor to consider before investment and will certainly require some shopping around in order to find the best offer to suit your trading habits. The spread is the difference between the price at which currency can be bought and the price at which it can be sold at any given point in time. FX brokers don't charge "commissions", so this difference is how they make their money; therefore, the lower the spread, the lower the commission, and unlike stocks, currencies are not traded through a central exchange, so the spread may differ from broker to broker. Spreads differ according to account type, with mini accounts offering spreads between 1.5-2 times higher than those offered for Standard accounts, which in turn are higher than those offered to large volume traders with VIP status.


"Fixed" spreads remain the same day or night, and despite market conditions, and although they are usually somewhat wider than the narrowest of variable spreads, they can be safer over the long term by providing a slightly higher level of predictability and a slightly lower level of risk. "Variable" spreads change according to market conditions (which may initially be attractive during a calm period, but once the market becomes busy, they are likely to widen considerably, meaning that the market will then have to move significantly in your favor before a profit is turned).
Leverage


Unless you intend to invest a six-figure sum of capital, the use of leverage will be essential in order to make decent profits in forex. Generally speaking, the sum of money made during a successful trade amounts to just fractions of a single cent per unit, so if you are buying lots worth just a few thousand dollars or less, your profits will be minimal. This is where leverage comes into play: in effect by "borrowing" your broker's funds temporarily you will be able to make larger trades, which, if all goes according to plan, will lead to larger profits. Obviously, this practice involves an inherent risk: if the market takes a turn for the worse you risk losing a substantial sum of money, depending on the amount of leverage taken. For this reason it is advisable to do some further reading on leverage and margins prior to using leverage, so that you are fully informed before exposing yourself to the open market. Under normal market conditions, some common currency pairs are generally less volatile, and may warrant a higher level of risk taking, while more exotic currencies may not be predictable enough and traders would be advised to use less leverage when getting involved with such pairs. Mini accounts provide the highest levels of leverage, with some brokers offering up to x 400.


Education
While practicing on a demo account may help you improve somewhat and trading with real money might teach you some hard-learned lessons, the best way to improve your trading ability and provide yourself with a solid knowledge base is to educate yourself. To this effect, more and more online brokers are offering trading courses or tutorials, ranging from free five minute "introductions to forex" to curricula covering the smallest of details and costing thousands of dollars. Well established educational centers, such as the Online Trading Academy (OTA), with years of technical training experience are your best bet, providing solid instruction that will not only teach you the basics of the market, but also the technical side of the business (advanced technical analysis, charting, chart reading, Fibonacci calculations etc.). Some brokerages produce their own courses in conjunction with such trading centers, such as the course offered by Forexyard.com. Without educating oneself, the vast majority of built in market tools offered by trading platforms will be wasted on the amateur forex trader.


In summary, there are numerous factors to consider before choosing the right online forex broker, all of which should be researched to ensure that your trading account and broker will allow you to get the most from your investment. You must be aware that some brokers do not have your best interests at heart, but do not despair, as there are many reputable and reliable companies eager and capable of providing a professional service. As part of your research, be sure to visit the many online trader forums, where you can discuss any of the issues raised in this article with other traders, many of whom will already have been through the process of choosing a broker and will be able to advise you from their own experiences.

Smith Chen is an author and internet marketing consultant. Find more about Finance Information and review page more

Can Talking To A Finance Professional Really Improve Your Finances?

By: Geoff Morris

In today's fast-moving world, credit facilities, credit ratings, and pressures of bank lending through credit cards, brings financial know-how very high up the agenda of importance for most people. That is why financial advisors are very useful things to have, since not all of us are equipped to deal with matters concerning finances. The reality is that our finances have to be dealt with.

Mind you, sometimes a financial advisor will be of the 'old school', and if you are an entrepreneurial type, he or she will go up the wall if you put risky schemes to them.

I know, my old financial adviser once told me my acceptance of risk was so high I was half way up the Eiger!

Three life changing events drive the majority of people to seek professional financial advice, according to a study done by the Certified Financial Planner Board of standards -

Namely:

1) Handling an inheritance (72%);

2) Facing a complex investment product (61%); and

3) Making portfolio/401(k) investment choices (52%). Amazingly many people do actually seek professional financial advice, as they have realized how much easier it becomes to handle financial issues.

Before seeking professional help, you should ask yourself how much money you have and how complex your financial situation is.

If you find that your financial situation isn't all that complex, you might want to reconsider talking to a professional financial advisor.

You wont get advice from a financial professional for free, so you should avoid consulting one unless necessary.

However, timely and correct advice even for a fee can be worth more than its weight in gold.

Remember though - Free advice is just that - Free.

In situations that only require you to do a little bit of research on your own, you are probably better off avoiding the financial professional.

You should instead determine what you need to know, research that topic, and then make an informed decision based on your work and your financial needs.

Alternatively, if you are in a serious financial quagmire, getting professional advice might be the best thing you can do to get back on track. You will find it a liberating experience to finally understand all this financial jargon. And it could then help you to better understand and handle your finances.

As Benjamin Franklin once put it: If a man empties his purse into his head, no one can take it from him. An investment in knowledge always pays the highest return.

Article written by Geoff Morris.

Buying a House at Auction is Very Good Investment

By: Kotia Kot

All house prices are still rising popular areas, homes usually already under contract by the time the estate agent’s board goes up. People should also find another sources a part from estate agent

Every year around 40,000 properties are sold at auction in the UK - many at up to 30% below high street prices. Auction firms always focus on unusual, hard-to-value premises like churches and village halls, commercial lots with potential for change to residential property.Usualy properties which need renovation get sold though the auction. This is why most of the time you going to find yourself in competition with professional property developers.

To get property at auction requires very careful planning, full attention to details and good nerves.
If you succeed the reward - dream house at good price. But if you don’t do carefully groundwork then your bargain could turn out to be very costly under- the-hammer horror. It is worth know that some superficially good looking properties go to auction because they have hidden problems like dry rot, strict planning restrictions, bad neighbors

Where to start?

About 250 companies run residential property auctions every single year in the Great Britain. One, estate agent FDP Savills, holds ten national auctions a year in London and seven regional auctions. It says there is very strong demand for all types of property at auction and there is good market for flats and houses which requiring refurbishment.

Every auctioneer will send you catalogue for all coming auctions at list one month in advance. That is time for you to do you homework. Examine property; surround area to make sure it is suitable. It is also time to have the property surveyed. Ask you solicitor to check the title to the property and arrange mortgage for you. If you are successful buyer you need to plan to complete the purchase with in 25 days of the auction. The list of auctions you can easily find online. You also need to be ready to insure the property from the moment you get it.

Before you go to auction set your highest bid.

You need to estimate the total costs of decorating repairs, surveying fees, mortgage, legal and removals and any other expenses – and then work out how much you are willing to spend. Please do not forget buyer’s premium will add another 1.5 per cent on the top of selling price and also you need to pay stamp duty.

Pre-sale catalogue prices very often wildly below the real sale price to get buyers to auction. Property prices can go up and down throughout per-sale period. Please keep in touch with the agent. The actual price usually set on auction day and it will be 10 per cent
Of the reserve price which is minimum price the owner will accept. Once the price met reserve vendor legally obliged to sell the house to the highest bidder.


If you are successful bidder you will need to sign a legally binding contract after the auction also you need to pay ten per cent of the property price by cheque. Remember they do not accept cash.

Try to attend auction a few times before you start bid. It helps to get confidence. Check all local estate agent just to see at what price similar property have sold for.

http://www.articlefinance.com -It is all about money

Buffett's Big Bet

By: Geoff Gannon -

Over the past few days, there have been several stories written about Warren Buffett’s $14 billion bet on global stock markets. I believe these stories are all in reference to this excerpt form Berkshire Hathaway’s annual report:

“Berkshire is also subject to equity price risk with respect to certain long duration equity index put contracts. Berkshire’s maximum exposure with respect to such contracts is approximately $14 billion at December 31, 2005. These contracts generally expire 15 to 20 years from inception. Outstanding contracts at December 31, 2005, have been written on four major equity indexes including three foreign. Berkshire’s potential exposure with respect to these contracts is directly correlated to the movement of the underlying stock index between contract inception date and expiration. Thus, if the overall value at December 31, 2005 of the underlying indices decline 30%, Berkshire would incur a pre-tax loss of approximately $900 million.”

It’s impossible to evaluate what exactly this means for Berkshire or what it tells us about Buffett’s thinking without knowing more details. But, there are a few things I’d suggest you consider when reading the news reports.

First, the $14 billion headline number makes this bet look larger than it really is. According to the above disclosure, a 30% decline in the underlying indices would only create a $900 million pre-tax loss. One article stated that a decline in the indexes to zero was highly unlikely given historical trends. It’s a lot more than highly unlikely. But, since we don’t know the details of Berkshire’s exposure, we can’t evaluate the real risk of a very large loss.

A lot of these news stories have called Berkshire’s “long duration equity index put contracts” a bet on global stock markets. A few individuals have been quoted as saying Buffett has become bullish long-term. Buffett’s always been optimistic about the very long-term insofar as he recognizes how better things are today than they have been at any other time in history, and how that is likely to remain true for some time. Despite Buffett’s concerns about nuclear war, he doesn’t see a return to the Dark Ages and those kinds of anemic returns on capital.

That’s important to keep in mind, because I’m not sure this bet is much more than that. If you assume returns on equity will be similar to those achieved in the years since industrialization began, and you assume central governments will continue to cause inflation, a long duration equity index put contract isn’t much of a stretch.

Equity will earn returns, much of those returns will be retained by the businesses, and inflation will increase (nominal) stock prices regardless of whether the underlying businesses’ assets are increasing or remaining stable.

So, I’m not sure this is a bullish sign. In fact, it may be a bearish sign, because it suggests Buffett can’t find individual equities to buy, three of the four indexes are foreign, and someone wants to be protected against very large losses in a diversified group of holdings.

Remember, someone is paying for this protection. In my opinion, it’s not the kind of protection investors need. It’s long-term protection on an index. I suppose I can see why a pension fund might want this (to increase exposure to equities), but it seems like exactly the sort of thing an insurance company can make money selling. There’s fear of a very large loss, and a lot of factors that are hard to see that will tend to make that loss pretty unlikely.

We don’t know what premiums Berkshire is receiving, so we really can’t evaluate these contracts. If someone writes hurricane insurance it doesn’t mean they think hurricanes are unlikely, it just means they think someone is dumb enough to pay more than the protection is worth. Knowing the odds of a decline in global stock markets isn’t enough to evaluate Berkshire’s contracts, because we don’t know the price.

I’m not enamored with current valuations in the U.S., but looking out a couple decades it’s not all doom and gloom. Markets tend to overshoot in both directions, but there’s usually someone sane enough to buy when stocks get cheap enough.

What’s remarkable about the way investors move stock prices isn’t the magnitude of the truly major moves (up or down); it’s the frequency of meaningful moves when there’s no meaningful changes in underlying values. Think about the price range of an average stock in an average year – that’s the really irrational part of investor behavior. I wouldn’t want to have anything to do with a one-year contract on a single stock. That’s a very different situation.

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Best Home Equity Loan - Low Rate Home Equity Loans

By: L. Sampson

Home equity loans are a practical way to obtain extra cash for
a multitude of expenses. For example, if you need to finance
an extensive home improvement project or your child's college
expense, these loans make is possible. There are many options
for getting a home equity loan. For the most part, homeowners
want to acquire the lowest rate. Here are a few tips to help
you secure a low rate home equity loan.

Basics of Home Equity Loans

Home equity loans are very easy to acquire. Even with bad credit,
many lenders will approve a home equity loan request. The concept
surrounding these loans is simple. As your home increases in value,
so does the equity. Once you've acquired enough equity, the
opportunity to tap into this equity presents itself.

Home equity loans are essentially personal loans secured by your
home. Unlike reverse mortgages, equity loans must be repaid.
However, because the loan amount and terms are shorter, most
homeowners can have the balance paid within two to ten years.

Compare Home Equity Lenders

You are not required to use your current mortgage lender for a
home equity loan. If a good payment history has been created,
some homeowners choose to apply with their existing lender. Still,
it's beneficial to obtain quotes from other mortgage lenders. In
some instances, new lenders offer lower rates.

Another factor when comparing lenders is choosing a lender to meet
your needs. Individuals with high credit scores may benefit from
acquiring a loan with a traditional mortgage company. On the other
hand, if your credit is less than perfect, high risk or sub prime
lender may present better offers.

Get Knowledgeable about Credit

If you want a low rate home equity loan, it helps to have a high
credit score. When determining mortgage rates, lenders refer to
credit reports and scores. Homeowners with a high credit rating
are good candidates for prime rates.

Moreover, to obtain your desired loan amount, it helps to reduce
your debt to income ratio. Even if your home's equity is $75,000,
the lender may not approve you for the full amount. If undertaking
a large home improvement project, or you need a large sum of money
for another purpose, consider reducing debts before applying for a
home equity loan.





Article written by L. Sampson.

Basic Tips On Personal Finance

By: Oyvind Hennum1

Do you ever wonder where your money goes every month? Does it sometimes seem as though you cannot afford to do things because your financial obligations are holding you back? If you find that you are asking yourself these sorts of questions, perhaps you should take a look at your financial situation and assess whether you are practicing good personal finance management or not. Good personal finance management spends within their income, plan for the future and solve financial problems as they arise. Poor personal finance management pay more, do without and fall behind. If you find yourself in the second category, you can do something about it. You can learn to take charge of your finances by planning your personal finances.

Planning your personal finances doesn’t always come naturally, and even if you’re just beginning to take your financial matters seriously, then you likely need a few personal finance tips.

Evaluate your current financial situation. One of the most important goals for most people is financial independence. Collect accurate information about your personal financial situation. Calculate your net worth which includes the real estate, saving and retirement accounts, and all other assets. This will help you decide how much money you can set aside for meeting future needs and goals.

A basic personal finance tip is to make a budget. A personal finance budget is information made up of your income and expenses and the more accurate this information is, the more likely you are be able to meet your goals and realize your dreams. A personal finance budget should be made for at most one year at a time and include a list of your monthly expenses.

All expenses must be included. To be sure of that go through all your paid bills, check register and credit card receipts to find expenditures that recure every month and expenditures that happen less frequently. Personal finance budgeting requires some small sacrifices. To be able to make good personal financial decisions and set priorities, you must know where your money is actually going. Start your budget and accomplish your goals.

Get an electronic bill pay. This is a very convenient way to pay your bills. You pay them electronically, by direct withdrawal from your bank account. The transaction is processed immediately. You can even link your bill pay service to your personal finance budget, so that your expenditures are automatically entered in the appropriate category. Personal financial management can be really easy.

Make an investment and finance plan. Now that the fundamental state of your personal financial security has been established, the time has come for the more prosperous part of your personal financial life. You need to make a personal finance plan of what you really want in life that money can buy. Your personal financial plan can be as simple or as detailed as you want it to be. Find out how to finally start to implement this plan and get the money to finance it. This is the long term part of your financial. This journey is the most interesting and exciting part of personal financing you can have toward financial freedom.

You can prepare for a secure personal financial future by following these simple tips. When you take control with your money,you don’t have to worry about debt taking control of you.

Article written by Oyvind Hennum1.
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3 Steps to Equipment Financing Success.

By: By Mark Dyer

Mortgage Brokers interested in adding equipment financing to
their revenues can do so by following 3 easy steps.

Starting a commercial equipment financing business can be a
doubly successful endeavour for mortgage brokers because it
can generate a new income stream as well as open up more doors
for building their existing mortgage business. Also, financing
equipment can be a good stepping stone for a mortgage broker
into the more complicated world of project & commercial property
finance. With good commissions available, this area should be
of interest to the expanding mortgage broker's business.

While the thought of commencing a new business venture can be
a daunting one success will come from having sound procedures
and practices. A small amount of work initially will quickly
help you to determine if there is a business opportunity, and
if there is - how to go about taking advantage of it.

1. Establish your footings.

Initially using a broad brush you need to determine if there
is an immediate opportunity for you in financing equipment.
Call some people in your client or personal network and ask
them if their employer or business uses finance for their
equipment. Get some names and contact the people responsible
for the financing and ask them what they finance, and when
they finance. Also what product they use and why. You might
also ask who they use and how they decide who to use.

By doing this you are educating yourself on some of the terms
and jargon that is used plus your are testing your comfort
level in discussing this sort of financing with exactly the
people you will be talking to when you kick your business off.

2. Place your foundations.

If you get some positive feedback you are well on the way to
making your decision to venture into this new area of financing.
Now you need to line up your finance sources. Most banks and
financiers will have a minimum value business introduction
hurdle for accreditation. You may need a number of sources
so call around and find out the criteria. Also ask about
relationship issues. You may want to manage the client
relationship yourself or alternatively simply refer clients
to the financier who will manage the relationship. Find out
about fees & commissions at the front, during and at the end
of a transaction. Investigate marketing and other support the
financier can provide you in your local area. Also what products
are on offer and how do they differ. Importantly, ask them who
their target clients are and their credit criteria, it will
be best if you are working in the same or similar direction.

3. Build your business framework.

A good database tool is essential. You may be able to use your
existing database to manage your new business transactions and
pipeline or adapt it to the new process and information you will
need to store. Remember, you are now dealing with companies and
businesses in addition to the individuals that operate them. How
much income do you want to generate, how much time are you going
to allocate & when will you allocate the time. What marketing
will you use and when. With the end of the financial year
approaching what angle would work now.

If your thoughts are positive and your comfort levels OK you are
ready to now grow your service offering and to add a new stream of
income to your business.




Article written by By Mark Dyer.