Whether you’re 60 years old and getting ready to quit working or are 20 and wondering what financial options may be available to you in the future, it’s never too early to start thinking about retirement. Most retirement strategies revolve around accumulating wealth through a balance of investments throughout your working decades, culminating in a principal valuable enough to sustain you indefinitely. But what happens then? Assume you’re doneworking and you have enough money to hypothetically survive indefinitely. How should you invest and balance your portfolio to ensure you have a consistent stream of income for the rest of your life? Prioritizing Your PrincipalYour first priorityneeds to be preserving your principal, preventing it from shrinking excessively due to volatile market conditions. Most financial experts insist you withdraw no more than 4 percent of your principal per year to avoid running through your savings before the end of your life, but if you want to be even safer, you should consider sticking to 3 percent (or even less). The bulk of your portfolio should remain distributed across a variety of investments and asset types, aiming to continue growing in excess ofwhat you take out each year. However, you’ll also want to set aside a fixed amount of your principal to guarantee yourself some safe, stable income in your retirement years. There are many options that allowyou to do this. Term Deposits and Rotational AccountsFirst, you could consider using term deposits, or certificate of deposits (CDs) on rotation to guarantee yourself a fixed interest rate. These accounts allow you to deposit a fixed amount of money with a financial institution at a guaranteed annual interest rate, often between 2 and 3 percent. This interest rate is higher than you’ll get with a traditional savings account and lower than what you might get investing in stocks,but is practically zero risk. The only catch is you’ll need to leave your money untouched for a defined term, such as 6months or 3 years. Using multiple accounts like this, on rotation, can ensure you have a constant stream of cash available to you while taking advantage of a stable, predictable interest rate. DividendsMany retirees focus on stock-based dividends as a primary source of income. Many blue chipcompanies offer a quarterly dividend to their investors, oftenbetween 2 and 4 percent of the total share price, as a distribution of profits from that period. Retirees often hold a diversity of stocks like these indefinitely, increasing their principal by capitalizing on share price growth while using the dividend distributions as a main source of income. You could also use an index fund based around dividend-paying stocks to diversify your portfolio further. Real Estate and REITsIf you like the idea of holding tangible assets, you could put some of your principal into rental properties. In the right neighborhood, your property will grow in value over time. In the meantime, you’ll be able to collect rent from tenants in excess ofyour ongoing expenses. This strategy can be a bit riskier, especially if you don’t have much experience in real estate. It also requires some upfront work; unless you hire a property management company, you’ll have to serve the role of landlord, which comes with many responsibilities. As a retiree, you’re likely looking for more of a hands-off approach, so you could consider generating revenue from real estate investment trusts (REITs) instead, which work similar to index funds, but backed by real estate. AnnuitiesThere are also annuities. In an annuity, you’ll pay a lump sum to a financial institution in exchange for a set payment for the rest of your life. Depending on the type of annuity you purchase, this could be a fixed monthly amount,or a variable amount based on the performance of a specified investment asset. Annuities tend to be highly secure and predictable, especially if you opt for a fixed distribution, but they also have a much lower rate of return than other investments. Terms and payment amounts can vary wildly from bank to bank. The Importance of DiversificationOne of the most important rules you followed in building your wealth initiallywas diversifying your portfolio, and that same rule should dictate your strategy into retirement. Every investment choice has strengths and weaknesses; diversifying your strategy with multiple simultaneous approaches is a way to protect yourself from the weaknesses that could otherwise compromise your strategy. You’ll be less exposed to risk and volatility, and more likely to maintain your principal—all while stabilizing your income well into your retirement years. Choose multiple income streams, and try to keep your finances as consistent as possible. The post How to Plan Your Investment Income in Retirement appeared first on NuWireInvestor. from https://www.nuwireinvestor.com/plan-investment-income-retirement/
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As one of the most important and influential capital cities in the world, there are many reasons why real estate investors should pay attention to Berlin’s property market. To give you an idea about available rental inventory in the market, you can visit sites like this one that help you find your apartment in Berlin. Once you have a good feel for what’s out there already, and what type of apartments tenants are interesting in, you’re ready to start really evaluating the market. Here are a few high level reasons for why Berlin is an attractive investment market. The City’s Rental Culture People in Berlin tend to be keener to rent a place than to own one. Research suggests that ownership in the city is at 16 percent, which is substantially lower compared to London or Germany as a whole, which are rated at 50 percent and 45 percent, respectively. Those who are looking to invest in the real-estate market in Berlin won’t have a shortage of potential tenants. On average there are 33 viewings for each rental property that is put up in the market. Rent Prices on the Rise What makes Berlin very interesting to many real-estate investors, locally and abroad, is how its rent costs are steadily increasing, while still being one of the cheapest in Europe. Recent studies show that a one-bedroom apartment alone can earn you at least EUR1,000. That represents an increase of 103% over the past decade. Improvements in Lifestyle Berlin has been ranked extremely high in lifestyle compared to other cities in the European Union. This has led to significant growth in the city’s population, which was 60,000 in 2016, and although it has dropped to 42,000 in 2017, it continues to grow at a nice pace. Even more important is that this growth in its population consists mostly of individuals who are below the age of 30 – this makes the growth even more significant when it comes to investing in real estate. Economic Growth While Berlin has lagged behind other major EU cities for many years in terms of economic growth, the city is on a new trajectory. With its growing young population & global appeal, more companies are being attracted to the city. This has lead to lower unemployment, and solid economic growth. These reasons alone should be compelling for investors to consider investing their money in the city’s real estate market. Not only does it open up opportunities, but it also gives them the chance to experience a culture that is beyond its past, but also progressively thrusting itself to the future.
The post A Growing Real Estate Scene in Berlin appeared first on NuWireInvestor. from https://www.nuwireinvestor.com/growing-real-estate-scene-berlin/ In San Antonio, Texas, the demand for houses is continuously on the rise. The buying and selling of real estate properties have become a lucrative business in this state. It is not surprising, therefore, that there are also many professionals who have made, and who still want to make, a big switch in their career paths to work as real estate investors. But what exactly is real estate investor? This term is also another designation for what is more commonly known as a real estate entrepreneur. What they do is to invest in real estate, either passively or actively. This article provides you with the gist of what it is precisely that real estate investors in San Antonio, Texas do as a job.
When real estate investors that buy in the San Antonio, TX area sees an attractive property, this property cannot immediately be considered as acceptable for resale. However, real estate investors still take a chance on these properties by purchasing the same for meager prices, as they take on the responsibility of developing these properties. After the real estate investor has improved the property, that is when they put the same house up for resale again. This above mentioned process is also what is commonly known as active investment in real estate.
In the business parlance, appreciation refers to the rise in the value of a property. When a real estate investor first purchases a property, what they have in mind is what they can do, or how long they will have to wait until the property appreciates. Real estate investors are trained in this manner, such that they know what to do with a property from the moment they first take a good look around it to make the value increase.
One of the most basic tasks that a real estate investor does is that they purchase property. Without the act of buying property, they cannot go about with the responsibility that they have to accomplish. Yes, there are so many properties up for sale; some are not even limited only to houses. Here are some of the sources of real estate property that these investors purchase:
The process that a real estate investor has to complete when purchasing property happens in this manner:
In some cases, the closing of the deal is quite easy; however, in others, it can be more complicated. Hence, before you jump right into the bandwagon of becoming a real estate investor, make sure that you have already put much thought into it, and that you have done ample study and research as well.
Just as is the case with any other job, real estate investors strive to make a living out of the buying and selling of property. Do keep in mind that a real estate entrepreneur still operates or works as a business entity with profit in mind. Therefore, these real estate investors have the expertise and the skills to filter out and select only those properties that they know have an excellent resale value. When you venture into this kind of occupation, you have to learn how to quickly compute in your mind how much return you will potentially earn from reselling the property. Without this skill, you might fall into the trap of buying expensive properties that have little to no chance at all of being sold again. There are many ways to earn a profit out of the property that these investors have bought, apart from just the resale of the same. Examples of these other means include:
A majority of the real estate investors do not pay for the properties that they bought in full. Often, what they pay is merely what is known as the earnest money. This earnest money is like a down payment, where, through this amount, the property is reserved for the same investor and not sold to anyone else until they finish paying for the same. With this, a considerable part of the job of a real estate investor is to also study the various available financing options and select the best choice possible for each property that they are looking to purchase. It is also along this line that the real investor has to carefully calculate the pros and cons and other expenses that they will incur as well, such as interests payable to the financing corporation, and the like.
Not all properties that a real estate investor purchases end up in the same manner as they have first been bought. For example, the investor may have bought a house but, later on, decides to turn it into an apartment complex. With the training and skills of the real estate investor, they are better equipped to determine what it is they can do with the property that they purchased. With this comes another necessary trait of a real estate investor in San Antonio, which is always to have a vision. The moment that you see a property, you must already know what it is that you are going to do with the same so that it doesn’t stay a stagnant property that doesn’t get sold for many years. Examples of visions that a real estate investor may have towards a property include:
As is the case with any other investment, the real estate industry is not without risks. The risks are very high, being that the investment itself and the projected returns are also high. Real estate investors have to learn how to strategize proper risk management so that they can avoid falling into this trap. Examples of risk management strategies include:
Risk management is a crucial aspect of any real estate property transaction so that investors do not make the mistake of owning properties without having any recourse if these properties turn lemon.
Real estate transactions go beyond just buying and selling. There is so much more to it; hence, the investors have to learn the trade. There are others who take the time to go to school, but there are online courses that you can take. As for basics, before you start to work as a real estate investor, be sure that you have mastered the following skills first:
As inviting as the idea may seem to you, it is still best if you take the time to first develop and hone the skills and knowledge needed before you even enter into the business of real estate. In this manner, you can avoid any costly mistakes in the future just because you lacked knowledge thereof.
To others, real estate property that may be up for closure can be considered as a non-profitable property. Not everyone can see the advantages of these properties that are up for closure, but real estate investors can. Foreclosure properties are properties wherein the homeowner has defaulted in their payments. Hence, the real estate investor takes over the same, continues the fees, and then analyzes how to put it up for sale to earn a substantial profit out.
One of the most critical backbones of any real estate transaction is building relationships with others. It is impossible for anyone to ever succeed in the real estate industry unless they are willing to connect with others. Hence, it is imperative for you to learn to build a network. Apart from the technical knowledge that real estate investors possess, they also have excellent character and relational skills. Real estate entrepreneurs know how to build excellent relationships so that they can form a permanent network. For example, they know how to make friendships with lending companies and banks, lawyers, real estate agents, brokers, and companies that can help them out in the success of their investment process. Another advantage of building friendships and networks across the real estate industry is that you can learn from each other. Many others have come before you, and who have more experience than you do. Take advantage of this, therefore, by allowing yourself to learn from these other expert real estate investors as well. The best lessons you can learn are really from those who have first-hand experience in the same.
As you are purchasing property to resell, you can equate your act to running a business. The only difference is in the type of product you are selling, wherein you are selling more valuable, hard, and expensive assets. However, the business aspect of it is still quite the same. For example, you will have to do the following as a real estate entrepreneur:
Conclusion This article shows you that there is more to the world of real estate than just the buying and selling of property. There are so many technicalities that go behind every successful deal, and one of the key players of the same are the real estate investors, more commonly called real estate entrepreneurs. If you are interested in this line of work or business, be very sure first to learn all the essential skills and knowledge requirements that you would need to be successful. Being a real estate investor is not an easy job, and you must be entirely dedicated to it so that you can excel in this field, and compete against numerous other investors as well. The post What Do Real Estate Investors In San Antonio, TX Actually Do? appeared first on NuWireInvestor. from https://www.nuwireinvestor.com/real-estate-investors-san-antonio-tx-actually/ Lawyers are very helpful in some aspects of your life. One of those concerns real estate transactions. Be it from the perspective of the seller, or of the buyer, a real estate lawyer can help you out in every step of the way. This article presents you with the nitty gritty details of how a real estate lawyer can help you. The brief background of the job description of a real estate lawyer. What exactly is a real estate attorney, you may ask? They are attorneys who specialize in legal skills concerning property. From simple transactions, up to more complicated property disputes, for example. The most basic task that a lawyer can do is to prepare all the legal documents necessary, and legal advice as well, with more difficult roles of filing your claim case in court. Real estate lawyers have specialized fields, too. Generally, real estate lawyer practices to provide legal services related to real estate transactions. Just like in any other field, however, real estate lawyers have specialized fields, too. Some of these specialized fields include:
If you need the help of a real estate attorney, do ask for their specific area of specialization so that they can be of better assistance to you. Real estate lawyers can help you draft and create legal documents A lot of the transactions that you might go through concerning the sale or purchase of real estate properties are document-based. It is essential that you have the assistance of someone who is well-equipped with the skills and knowledge to complete it, to ensure that all your rights and concerns will be met. Some examples of documents that a real estate lawyer can prepare for you include:
Real estate lawyers can represent you in legal land disputes For more complicated and more profound problems in real estate, you might have to bring your case up to the courts. The only way to do this successfully is through the help of your real estate lawyer. These attorneys are equipped with the knowledge and skills to help you get the most out of legal land disputes. For example:
Real estate lawyers are trained on how to take the side of both parties properly. Through a real estate lawyer, the best resolution for both parties can be obtained. Real estate lawyers can help clarify vague or technical terms for you There’s no doubt that real estate transactions are filled with technicalities. Some of the terms in real estate contracts aren’t as simple as they seem, and if you take these for granted, you might find yourself falling into hot water. Remember that the purchase and the sale of real estate property always involves thousands of dollars. You might lose a lot, just because haven’t understood some of the technicalities. To avoid this mistake, it is best to be prudent and ask for the help of a real estate lawyer. In connection with helping you understand the terms of contracts, your real estate lawyer can do the following for you as well:
Real estate lawyers allow you to have control over the process Whether you are a seller or a buyer, you want to have the most control in the transaction that you will be taking. You can achieve it through the assistance of a lawyer. Because the real estate attorney is knowledgeable with the ins and outs of real estate transactions, they can assure you that your desires and your rights about the sale will be met. In the absence of a lawyer, sometimes, you may fall prey into dealing immediately without securing the particular needs and conditions you have in mind. Conclusion Whatever your concerns are with regards to real estate transactions, the best line of professionals that can help you are lawyers. When you are going to purchase a property, and there are some matters that you’re unsure about, do not hesitate to ask the help and advice of your lawyers. With the help of your real estate attorney, you can be rest assured that all your rights will be claimed. The post What Does A Real Estate Attorney Actually Do? appeared first on NuWireInvestor. from https://www.nuwireinvestor.com/real-estate-attorney-actually/ If you find yourself in need of funding for your solo venture, don’t worry; there are many options out there to provide you with the funding your project needs. From online lenders to traditional banks, the possibilities are truly endless, but which ones are the best? We’ve put together five different ways for you to secure funding as a solopreneur. Lenders Look At Solopreneurs A Bit DifferentlyIf you consider yourself a “freelancer” or “contractor”, you’re considered a solopreneur. This simply means that you do the work yourself, instead of owning a small business that consists of a team of people. Lenders look at an established small business as carrying less risk for a loan than someone who’s out on their own. They’re likely to be concerned about the predictability of your income as a solopreneur as well since you’re probably taking jobs as they come. 1. UpstartUpstart is a financial platform that was formed by ex-Google employees and has since become the first company of its kind to integrate AI into the lending process. (For those of you who aren’t tech-savvy, that’s artificial intelligence.) How does this make a difference? For one thing, Upstart looks at the entire person when approving a loan, rather than just their FICO score. If you don’t have the greatest credit, it can be frustrating to be rejected over and over again simply because of a number. The AI lending system has pushed Upstart to the forefront of online lending and in fact, the company has one of the highest ratings of any online lender. By the end of last year (2018), the company’s automation had reached 60%, meaning that more than half of the lending process was done by machine. Upstart is a great place to start for solopreneurs since the system takes into consideration more than just a credit score. The company also has a fast turn around time and can provide you with an interest rate in about five minutes. Check out these Upstart loan reviews to see for yourself why the company comes so highly recommended. 2. CrowdfundingCrowdfunding is a simple way to ask the public to fund your startup or small business project. Instead of getting a loan, you’ll create a “fund this!” campaign in which users will donate money to your project, sometimes in exchange for a premium version once its complete or other types of rewards for their contribution. Kickstarter and GoFundme are two of the most popular crowdfunding options, though Kickstarter is more focused on launching creative projects and funding business ventures. Crowdfunding has becomea viable source of funding for all kinds of entrepreneurs, with such companies as Oculus Rift and Tile App Locator becoming million dollar companies after crowdfunding campaigns. This can be an excellent alternative to traditional loans. You won’t have to pay any money back, and your friends and family can help contribute to the success of your project. Best of all, it will give you a pretty good idea of how viable your idea is when the donations start coming in. 3. Angel InvestorsAn angel investor is essentially someone with a lot of working capital who’s willing to invest in and help mentor your project or business. This usually means they’ll want a share in the company or some other trade-off, but with their expertise guiding you and their capital filling the bank, you’ll have a great foundation to work with. An angel investor can be tricky to impress. You’ll want a good idea, a solid plan, but most of all, angel investors want to see the passion. We’re all human and respond to human emotion. Angel investors are the people who look for passionate individuals who want to take their dreams to the next level. Traditionally, angel investors provide less capital though than say, a venture capitalist, for instance. However, you shouldn’t write the idea off completely, as the added benefit of mentorship from a successful businessperson can be invaluable to the growth of your business. 4. Traditional Bank LoansA personal loan can actually be a good option for a solopreneur. Since it’s just you, you’re the one taking all of the risks and reaping the reward. A personal loan will have a set amount, so you can’t go over the balance like you can with a credit card, and it will usually have flexible repayment plans. Some banks even offer deferment for a few months while you get established. The drawback to seeking traditional loans is that they depend largely on credit history and your FICO score. If you’re not looking too great in those areas, you might want to consider an investor or crowdfunding. 5. BootstrappingBootstrapping involves lifting all of the financial weight yourself. This can mean dipping into personal savings accounts, retirement accounts, or even working a full-time job on the side to fund your project. This is absolutely the least risky way to secure funding. You can spend your own money however you want, and there’s no one to pay back at the end of the term. You don’t have to worry about interest rates or loan approvals or trying to get the public to help back your idea. Your savings account has been sitting there waiting for a moment like this, why no use it? After all, there is no better investment that one can make than an investment in themselves. The post 5 Ways To Secure Funding As A Solopreneur appeared first on NuWireInvestor. from https://www.nuwireinvestor.com/5-ways-secure-funding-solopreneur/ Would you willingly enter a building or a vehicle without knowing for sure that there was a clear and obvious way to get out if you needed to? Then why would you create a property-investment portfolio without thinking about how to exit it in case of emergency or even just because the time was right for you to do so? Why you need an exit strategy for your property portfolio Think about driving a car. If you brake or swerve suddenly, you (and any passengers in your vehicle) will probably find it very uncomfortable. If, however, you slow down, or turn, gently, then life is much more pleasant for everyone concerned. What’s more, you’ll extend the life of your car and save on fuel. Similar comments apply to investment, including property investment. You want to avoid situations when you’re forced into making changes at short notice because that’s the situation when you have least control and are most at the mercy of external forces. You may be lucky, you may not. Instead, you want to think ahead and be mindful of your short-, medium- and long-term goals along life’s journey in the same way as you would if you were planning out a car journey. By thinking ahead, you can be prepared for the places you need to come to a stop, or make a turn, and so make these changes as smooth as possible. This is true of any form of investment and arguably nowhere is it more true than in the world of property investment, which still moves very much at an analogue pace in an increasingly digital world. Creating a practical exit strategy for your property portfolio The first step in creating a practical exit strategy for your property portfolio is to have a robust strategy for determining which of your investments deserve to keep their place in it and which do not. In very simple terms, you generally want to hold on to investments which show that they are still the best available options for the goals you want to achieve and divest yourself of those which are not. This, of course, requires you to set “Specific, Measurable, Achievable, Realistic Targets” for your property portfolio and to keep these updated as circumstances change (both at a personal level and at a macroeconomic level). The second step in creating a practical exit strategy for your property portfolio is to think about the best way to divest yourself of investments which no longer meet your requirements. In particular, it is generally recommended to look for (legal) ways to minimize the amount of tax payable upon the sale of your investments. One way to achieve this is to spread the sale of your properties over a number of years, to make the most of your annual capital gains tax allowance. Another option might be to gift a property to someone instead of selling it on to another investor or passing it on to them when you die. If you live another seven years after giving the gift, it will be excluded from your estate when inheritance tax is calculated and even if you do not, it may be eligible for “taper relief” i.e. a lower rate of IHT. Author Bio The post Do You Need a Property Investment Exit Strategy? appeared first on NuWireInvestor. from https://www.nuwireinvestor.com/need-property-investment-exit-strategy/ Even though the uncertainty over Brexit shows absolutely no sign of being resolved any time soon, the UK property market is standing firm and rewarding those who have kept faith with it. The ancient laws of supply and demand hold true in modern Britain Prices are a function of supply and demand and the simple fact is that the UK has long had a massive shortage of housing which has only been exacerbated by population growth (only part of which has been due to immigration of any sort and only a very small part of which has been due to immigration from EU countries). The government has been actively working to encourage and facilitate the development of new homes, however while this is of course welcome, it has to be set against the fact that the UK also has a significant number of older homes which require either significant refurbishment or to be completely rebuilt. Therefore, the gains are, realistically less than the headline figures would suggest. February 2019 saw UK property price rise on a monthly, quarterly and annualized basis According to figures from the Halifax, UK property prices rose 5.9% month-on-month, 1.8% quarter-on-quarter and 2.8% year-on-year. This is the first time the UK has seen monthly, quarterly and annualized growth since October 2018. These figures might comes as a surprise to those who have been reading up on the performance of the London property market, which has been sluggish for some time now, but while London may be the biggest city in the UK, it is not the only one and its minimal growth has been more than counterbalanced by robust local markets in other parts of the country, particularly the north of England. Outside of England, Aberdeen is the only major city which is clearly struggling, although that fact will come as no surprise whatsoever to anyone familiar with the local economy, which has long risen and fallen in line with oil prices, both Edinburgh and Glasgow continue to do well as do Wales and Northern Ireland. The UK is still an attractive investment destination for global investors Far from being deterred by the prospect of the UK’s exit from the EU, international investors seem to be viewing it as a useful buying opportunity. This relates, in part, to the previous comments about the laws of supply and demand. It does, however, also reflect a certain level of confidence in the UK’s ability to manage its economy when it exits from the EU. The simple fact of the matter is that the UK has numerous advantages as a business destination even without access to the common market many of which revolve around the fact that the country has long had a very accepting attitude towards businesses in general and disruptive businesses in particular. For example, the UK has exceptionally flexible labour laws together with a significant talent pool of highly-skilled workers. In the EU, only Ireland comes close to offering similar advantages, but Ireland’s “business-friendly” credentials have already brought it into (expensive) conflict with the EU, a fact which is unlikely to have passed unnoticed by the world of business. Author Bio
The post The UK Property Market Stands Firm in the Face of Brexit appeared first on NuWireInvestor. from https://www.nuwireinvestor.com/uk-property-market-stands-firm-face-brexit/ Forex Market The forex market is the most prominent financial market in the world. Traditionally, the word forex was only used to refer to exchanging different currencies to do business or when traveling. Today, forex is more of a businessand an investment. Some people survive purely on forex trading as their only source of livelihood and income. Unlike stock trading, forex trading and investment are not centralized. Participants who include individual traders, banks and other financial institutions exchange through the ECN (electric communication network). This network allows more people around the world to participate in it. Forex trading is purely the simultaneous selling and buying of currencies. The currencies are traded in a pair, for example, EUR/USD. The EUR, in this case, is the base currency while the USD is the quote currency. For example, if the exchange rate between EUR and USD is 1 Euro for 1.2 dollars, then you will quote as follows EUR/USD= 1.2. If you believe that EUR will rise in value to 1 Euro for 1.3 dollars, then you enter the buy position. The focus should be on the base currency. If you believe that Euro will lose its value, then sell. Unless in some cases, where the government pegs the exchange rate at a fixed price, the exchange rate is dependent on demand and supply. The exchange rate of a currency reflects a number ofthings, chief among them, the economicstatus of a country, political environment, interest rates as well as people’s perception. Forex differs from stock and options markets in some ways. Firstly, forex trading is not centralized; there is no centralized governing body or even a clearinghouse. Secondly, in forex trading, there is no limitation as to the position you want to take. Another difference is in the manner in which brokers get remunerated. In the stock market, brokers charge commission while in forex, brokers earn through the bid-ask spreads. Stock Market Trading When we talk of a share or a stock, we are referring to a section of an organization or company quantified in monetary terms. When you purchase a share in a particular organization, you are investing in its future. The valuation of that share will keep changing based on how investors perceive that organization and of course how the company performs. At the end of a specified period, the company may opt to distribute its profits (dividends) to the shareholders. In other cases, the profit earned may be invested back into the company to improve its operations. These stocks are commodities; they can be transferredfrom one person to the other. A broker will buy as well as sell these stocks through an exchange. When we talk of a broker, this could be any person specially licensed to trade the shares via the exchange. These brokers could physically be on the floor or could do so through a phone. On the other hand, an exchange is like the trading ground, a form of a warehouse where people will sell and buy those stocks. A buy request must be matchedwith a sell request. In short, there must be sellers for there to be demand and vice versa. The process of matching sell and buy orders can be done by people or by computers. Options Market An option is in simple terms a right to sell or buy a stock at a future date. Note I used the word ‘a right’ and not ‘an obligation.’ If for example, you have a contract to buy 50 shares of company X at the end of the month. Currently, the shares are trading at $5 per share, but you have agreed to purchase them for $6 a share at the end of the month. If at the end of the month, the shares are trading at $7 per stock, then you have made a profit of $ 50. Likewise, if by the end of the monththe price is at $5, then that is a loss, so you don’t have to buy it. An option to sell is calleda put option, while an optionto purchase is referredto as a call option. Options have some benefits Options can be less risky than the stock and forex market. Options generally cost less than shares; therefore, the overall risk is reduced in that sense. On the other hand, as a buyer, you have a right but not an obligation. It is only the sellers who have a responsibility, not buyers. Take advantage of future events If you expect a particularcompany to announce a product that is going to revolutionize the way we do things. You can participate in their options. It is a proactive way as opposed to reacting to changes in the market. Commodities/Futures The commodity market works more or less the same as any market you know. Commodity market provides us with a physical or virtual space to trade. One may opt to trade the commodities at their current price or do it for a future pre-determined price. Some of the commodities traded in these markets include agricultural commodities such as sugar and wheat or mined commodities such as oil and gold. Future contracts are contracts whereby a buyer and a seller agree to transfer certain commodity to the buyer in the future at an agreed price. In this case, the buyer has to promise the seller a certain amount of money once the seller delivers the item in the agreed future period. Investing in the commodity market The most popular way of investing in the commodity market is through future contracts. The primary buyers and sellers of these commodities are speculators as well as users of the products. The users make use of futures to plan their budgets with figures in mind properly. They try to mitigate financial losses attributed to extreme price changes. Manufacturers of beer in an attempt to normalize barleyprices will enter into future contracts where they are allowed to buy barley at constant rates over a period. In case of sudden spikes in prices, it will not affect their expenses or cash flow negatively. For speculators, you will need to research on a good broker or brokerage firm. You will then open an account with your broker. You will then fund your account, and you will be good to go. Just like forex, the commodity price is primarily determinedby the forces of demand and supply. Other factors affecting the commodity prices include the political environment of the producing country. For example, the gulf war affectedthe pricesof oil by a significantmargin. Brazil political environment by far affects sugar prices in the commodity market. Speculators will typicallyanalyze all these factors in order toknow which direction the market is likely to take.
The post Structure of the Financial Markets (Forex, Options, Stocks and Commodities) appeared first on NuWireInvestor. from https://www.nuwireinvestor.com/structure-financial-markets-forex-options-stocks-commodities/ If you have a small to medium-sized business, you know very well that managing your business’ financial aspect is just one of the things that need attention. Aside from allowing various payment channels for your clients through the use of a PDQ machine or other payment methods to ensure smoother incoming financial transactions, you also must ensure that you maintain a good credit standing. Having good business credit is crucial in the effective management of your business. Doing this means paying your business credit cards regularly and on time. Owning multiple credit accounts is beneficial for your credit standing as it demonstrates your ability to manage various accounts effectively. Here are some tips on how to manage your business card payments:
This is a basic yet crucial part of managing your business. Ensure that your business’ financial affairs don’t mix with your personal accounts. It is helpful to keep a systematic record of your business’ financial transactions, which can be made simpler with the help of monthly reports from your business credit cards.
An important step in successfully managing your business is keeping an eye on cash flow. Bad cash flow can easily get you out of business, which is where credit cards can offer tentative help. When your cash is insufficient to fund your supplies or when you encounter unexpected expenses, for example, using your credit card can help you solve this trouble. The monthly statements can also give you a concrete idea on how much funds you have spent on what and when. With your monthly statements, you can easily spot red flags such as overusing or misusing your business cards.
As trivial as it may sound, your business’ finances depend largely on your mail since this is where you get your bank statements and bills. Review your business card statements as soon as you can after receiving them. If you find an error, you can immediately have it clarified through a phone call or a visit to the bank.
Banks usually offer incentives to entice you in using your credit cards. These incentives can vary among banks, so it’s quite helpful to know more about these incentives and make use of them. The incentives can vary from discounted or free equipment, office supplies, fuel, or airline tickets.
Managing your expenses well is making sure that everyone in the business is spending the business money honestly and carefully. Here are some tips to keep in mind:
Today, most credit cards come with fraud alerts where the card company notifies you to approve a transaction, which could be fraudulent. But there are some companies that provide additional notification alerts that you can customize to give you better expense management information.
Most credit card companies provide a user-friendly app to help you effectively manage your business’ expenses. You can use the app for making payments, viewing new transactions, and checking incoming or outbound payments. You may also use the app to remove or add authorized cardholders and adjust spending limits.
The credit card company may offer reporting tools to help you observe the behavior of each authorized cardholder, check individual transactions, and summarize spending into categories. Checking credit card transactions can help you discover fraud while also helping you manage your business’ expenses by checking for potential misuse of funds. Closing Thoughts Ensuring that you pay your business credit card on time will help maintain your good credit standing. This means that you must manage your business finances well, including monitoring individual employee credit cards to watch out for overspending or misuse issues. With the help of automated alerts, mailed bank statements, mobile apps, and some finance management skills, you can make card payments on time. The post Tips on Managing Your Card Payments in Your Business appeared first on NuWireInvestor. from https://www.nuwireinvestor.com/tips-managing-card-payments-business/ In 2018 Musmne, FIFA, Facebook and Bundestag became the latest victims of major Internet security breaches. While many media publicized breaches affect larger companies, government and other organizations in the US, companies in the UK and Europe are being increasingly targeted. Major Breaches
In the e-commerce industry, there are hundreds, if not thousands of sites in operation. The confidentiality of identification and financial data cannot be placed at risk, making safe data handling of vital importance. If customers do not feel adequately protected, they may opt for a better-protected competitor. Modern-day clientele can be just that fickle. Are we prepared?The biggest data breaches in the UK make it clear that online security is now a top priority. At the same time, a study of CEO cyber security preparedness makes it clear that many businesses are woefully under aware of the threat and which measures must be taken to protect online security in the future. Because of this fast-evolving scene, business owners now view a VPN service as one of the most comprehensive security features businesses should employ for online security. Opting for one of the best VPNs on the market means SMEs obtain a packaged service, as opposed to a single security feature. When surfing on a VPN, any hacking and data mining apps will only see the location of your VPN provider, hiding your real identity and location. Since there are no company details shared such as network ID, router information or where in the world the server or customers are, a VPN acts as armor that cannot be penetrated by modern-day hackers or data miners Why protect online data?Cybersecurity isn’t new. Anti-virus, spy and malware protection programs have been around for decades, and data mining protection applications are fast becoming the new wave of security. But in the fast-changing landscape of online networking, new solutions must adapt. Technologies employed by companies change quickly and these new-fangled ways of conducting business must be secured. While one security system may beef up security for certain data, new channels may be vulnerable. Impact of the Dark WebThe Dark Web has become a serious threat to online security and credentials can be bought and sold for large sums, making significant breaches a greater possibility than ever before. Millions can be exchanged in pursuit of sensitive information, including card data, client lists and contact details. Is it really that urgent?If the attacks on large companies don’t seem to apply to smaller concerns, consider that hackers on the Dark Web target smaller niche markets too. Is there a real threat to SMEs? While larger companies are often under greater threat, every business needs to be prepared for potential vulnerabilities. Cloud Security and Privacy expert, Jon-Michael C. Brook, explains that the pace of security updates lags behind chosen technologies. Online security has evolved from the days when businesses knew they needed a firewall and some kind of browser protection. The use of cloud technology means that these protections are not enough. Supply chains are now very complex, which means there are many more potential danger points. But that’s not allHackers have changed. Hackers used to write their own codes to breach weak points. Now the code is shared and readily available to online thugs. Even more dangerous is that cyber breaches make use of the same tools that security manufacturers use making it easier to get in. Efforts to make websites and activities more user-friendly for consumers create a creates a weaker barrier. But let’s not forget the motives of the average modern hacker. In days of yore, hackers were motivated by a sense of malevolent, or anti-establishment pleasure. These days the real motivation is money and lots of it. Data and private records and data can be worth hundreds upon thousands. A VPN acts as a failsafe barrier ensuring that not even the location or computer ID is revealed. Bear in mind that if a company’s data is compromised, the company is held responsible for the breach and leak of personal or business data. Social security information, passwords and routing numbers can also be used for identity theft. Whether you run a (B2C) or (B2B) concern, the security of sensitive data should be popping up on your radar, and prompting questions about how using a VPN might just save your company reputation and protect your future online security. The post Why Cybersecurity Should be a Business Priority appeared first on NuWireInvestor. from https://www.nuwireinvestor.com/cybersecurity-business-priority/ |
AuthorHi I am Sara 30 years old from Liverpool. I am working as an assistant in a local real estate office. I like to share tips with friends and family about real estate investment. ArchivesNo Archives Categories |