Browsing Tag

Investing

A Different Kind Of Account Terminator

There exists an issue that actually adversely affects trading accounts but is hardly ever mentioned. The practice of trading is something that is quite aggressive. It pits a person against the entire world- and challenges him or her to survive.

This can be particularly difficult when a person is trying to divide time between trading and all the other things that are permanent fixations in his or her life. It is a fact that trading requires serious concentration. Sometimes, it even calls for the trader to keep thinking about potential trading issues when he or she is involved in other things or endeavors; for example when one is attending to family matters. If a trader is not careful, all the combined demands in his or her life, along with trading, will result in a sort of mental overload.

This can be very dangerous because it will directly affect how the trader views potential trading issues. This does not come immediately. In fact, there are few traders who even realize that they are overburdened with responsibilities. This is because the mind does not actively let an individual know when he or she is stressed with too much responsibility. It just starts to ‘rescue’ him or her from themselves without their permission because it senses that they will be unwilling to give it permission to slow down even if they were aware of the situation.

May 12, 2013

Investing

5 Tips For Investing Lawsuit Settlement Money

Whether you’ve sued your employer for a wrongful termination, you got injured in an auto collision that wasn’t your fault or you’ve slipped and fallen while you are out shopping, it is crucial to hold onto your settlement money for as long as you can. Your first impulse will be to spend all of it at once, but the wisest thing you can do is invest it. If you want to make the money last, possibly for a lifetime, you have to look at the funds not as a windfall, but as a nest egg that could secure your financial future.

Here are 5 tips for investing lawsuit settlement money:

Make sure that all your financial records are in tip-top shape. It is important to know how much you should invest and how much you should keep liquid for expenses, like paying off medical bills if you were injured or for bills if you were laid off. While it is smart to invest your settlement winnings, you typically don’t want to go all in, because you can end up not having enough for your immediate expenses. In this case it might be wise to consult with a financial advisor who can better estimate how much you should invest and how much you should hold on to.

May 9, 2013

Investing

Four Tips For First Time Stock Investors

If you have never purchased stocks before, then you need to read this first. Yes, stocks are a great way to invest your money but they are still risky if you don’t know what you are doing. It is because of this that I recommend that you learn a little bit about stocks before you put a penny into them.

Before I get into the four tips for first time stock investors I just want to make sure that you have money in savings first. The reason I say this is because a stock investment should not be considered a savings account as they carry risk.

Don’t Buy Before Doing Research – Just like you wouldn’t buy a property without first doing your research, likewise if you don’t research a stock, then you won’t know the first thing about it. What most people don’t understand is that all stocks carry different risks and rewards and you need to know that in order to make the best decision. There are courses you can take to learn how to research companies. I highly recommend that you take a reputable course if you are planning on trading stocks for a living. If you are married, it’s a good idea to both take the course so that you will both understand the risks involved with investing.

April 29, 2013

Investing

5 Tips For Managing Your Income In Retirement

While most Americans spend a great deal of time thinking about retirement and planning out their investments to make sure they enjoy their golden years, most people fall far short of those goals. There are simply too many distractions early in life, and too many ways that even the best laid plans can take a wrong turn. Even if you did everything right, changes in the economy and the cost of living can leave you with the scary realization that you’ll outlive your savings account. The fact that most traditional pensions are disappearing doesn’t help matters, and it’s often too late to do anything about it when you finally do realize you’re behind the eight ball. But regardless of how bleak it may seem, there is always a silver lining. The sooner you get back in action the better. So here are five tips to help you manage your income in retirement.

You won’t be able to decide on a plan of action until you fully understand the reality of your situation. So start things off on the right foot by performing a detailed cash flow analysis. Most people fall short of their goals because they don’t take the time to understand exactly how much money they need to maintain a comfortable lifestyle during retirement. You can get things rolling by making an easy calculation. If you can save around 80% of your pre-retirement income you’ll be okay. But that doesn’t leave much room for vacations and fun purchases. So take a look at your monthly expenses, and compare that number to the money you reasonably expect to take in each month during retirement. This is the baseline you’ll take action on from here on out.

April 3, 2013

Investing

5 Tips For Protecting Your Investments

Whether you are a seasoned investor or just starting out, there is no “easy switch” to make investing less of a challenge. Due to the volatility of the market place your hard earned money can disappear in the blink of an eye. While certain sectors are improving, the economy is still sluggish, despite slight signs of rebound. Yet, for anyone to have any semblance of longevity in the stock market, you have to play your cards right and protect your investments anyway you can.

Here are 5 tips for protecting your investments:

You never want to take irrational steps to withdraw all your money each time you see the market temporally take a dip. This is one of the biggest ways to lose money. It is recommended that you let your money “weather” the storm. Even if the stock market hits a record low, soon enough the high tide will come back in and you’ll be back on top. In the long run, letting your investments ride the multiple, daily waves of the stock market will have bigger returns in the long run.

Another important way to protect your investments is to find the lowest risk possible so that you aren’t left paying high taxes on possible losses. This might sound confusing, but one of the biggest mistakes newbie investors make is not considering the value of their returns after taxes. Depending on the sector you have invested in, what can look like a positive or winning reward on paper won’t look so great after the IRS takes a big chunk.

March 23, 2013

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