Investments and the Ways to Make Money

Most people don’t spend much time wondering what money is. Their only major concern is how much they have, and how to get more!

What is money?

It is a medium of exchange.

What does it do?

It ensures the success of exchange by being the one item on offer that is ALWAYS acceptable.

Why is it necessary?

Because human beings must exchange to live together in peace, and to prosper!

That’s all!

On the other hand, without money, the production and exchange of anything but the most rudimentary goods and services is impossible. It is not difficult, or time consuming, or inefficient, it is IMPOSSIBLE!

 

Animals don’t exchange (or trade) amongst one another. They are self-sufficient, or they take from each other, or they exercise the prerogative of superior strength and/or cunning.

There are some human beings who get along in a very similar fashion, but the overwhelming majority recognise the benefits of voluntary exchange.

Strictly speaking, the use of the word “voluntary” in this context is redundant. The phrase “your money or your life” is not the precursor to an exchange, whether the person uttering it brandishes a gun or a government identity card!

The first rule of any voluntary exchange is simplicity itself. If two people are willing to exchange, each must view the results of the exchange as being beneficial. If either of them is not of that view, the exchange will not take place.

The ways to make money in this world are simple:

Marry someone who is already rich.

Have a rich person die and will you their money.

Strike oil.

Discover gold

Win the lottery.

Rob a bank.

Work for it …

Or have it work for you through investments!

In investing, you don’t have to be an expert to take advantage of real opportunities!

But, in order to invest with confidence, profitable success and consistency and be able to take advantage of opportunities, first you should assure, that all your essential financial needs and responsibilities are met.

Then, start with:

1. Setting aside sufficient liquid funds for cases of emergency.

2. Making sure you are completely and adequately insured.

3. Building a reasonable retirement plan.

4. Getting out of debt — and staying out!

5. Determining your time frame, and

6. Start investing with the aim of becoming financially independent!

As each of us enters different stages of life, our changing family status and objectives, incomes, expenses and living standards shape our investment strategy.

By having a clear idea of what you want your investment to accomplish, you’ll be able to put your money to work more productively.

Investing is generally defined as the conversion of risk-free assets into risky ones with prospects of greater return.

Every investment has a certain amount of risk associated with it. You can minimize risk, if you are able to understand the different characteristics of the various investments and build your portfolio accordingly.

Given the existence of risk, why invest at all?

Because historically, the existence of greater risk is commensurate with greater rewards for investors.

You are almost certain to pick a bad investment sometime. The secret then is to cut your loss as soon as possible.

Unfortunately, most people find this very difficult to do. No one likes to think that he has made a mistake and there is a big temptation to hold on and hope for better days.

But there is almost always a time when an investment starts to turn sour that you can get out with only a small loss.

If you hold on you could be on the losing side for many years and then lose even more money in the end.

Having the courage to admit that you were wrong is an essential technique of successful investment as well as in other aspects of life.

A Swiss banker put it rather well:

“If you are losing a tug-of-war with a lion, give him the rope before he gets your arm …

You can always buy a new rope.”

Financial Advisors and How to Choose Them

Don’t know stocks from bonds? Not sure how mutual funds compare to ETFs? Money can be confusing, but you can’t afford to stay confused.

When in doubt many people turn to a professional advisor. There is certainly no shortage of people willing to tell you what to do with your money, financial advice is one of the growth professions of the new millennium, though its reputation often fails to inspire confidence. This article helps you make the most of the mass of advice available.

There are various types of advisor.

Tied advisors work for a particular institution and only advise on that institution’s products. Tied advisors will not necessarily advise on the best deals available (unless they just happen to be provided by their employing institution). If (and it’s a big if) you use tied advisors, be sure to compare quotes from 3, 4 or however many you have time to go to.

 

Independent advisors advise across the whole spectrum of available products. They should find the very best deal for your needs.

Independent advisors are paid in 2 ways:

  • Commission based – advisor earns commission from products they recommend
  • Fee based – client pays advisor’s fee, advisor refunds part/all commission to client

Commission based advisors charge nothing for their time, but they may have ulterior motives (ie higher commissions) for recommendations.

Important points in making your choice:

  • Is the advisor licensed?
  • Does s/he belong to the relevant professional bodies?
  • Is s/he bound by any code of practice?
  • How long has he/she been in business?
  • Has he/she been recommended by trusted friends/associates?
  • Can he/she provide references?

Ask around. The effectiveness of a financial advisor is difficult to gauge until some time after their advice is given. Do your friends recommend a particular advisor? Why?

Advisors can assist in the financial planning and investment process, but always remember it’s YOUR money at stake. The best advice is not to delegate your money management decisions to a (disinterested) 3rd party. Instead make just a little time and effort to acquaint yourself with the available choices. And – should you choose to use one – do this BEFORE consulting a financial advisor, ie you should have a pretty good idea of what you’re looking for before the meeting. Ask your advisor difficult questions – and lots of them.

Avoid signing up for anything there and then. Always sleep on decisions, even if that means the opportunity is lost. There are few opportunities so golden that they won’t exist next morning.

Some advisors are guilty of “blinding with science.” Don’t invest in anything you don’t understand. The advisor’s job is to advise. Your job is to listen carefully and then make YOUR decision.

Personal Finance Company – What Kind of Services Offered to You

Have you ever heard about personal finance company? If you’re availing of services of certain company, a personal finance company will play its job to intermediate you and the company in the field of financial services. Prudential, Merrill Lynch, and many more are some of the most admired finance companies that have helped lots of people to grow and sustain their wealth.

You can use personal finance company to increase or protect your wealth from availing the services of such companies.

Learning the Various Types

Each personal finance company offers certain kinds of services to their clients. These comprise life insurance, long term care insurance, whole life insurance, and investments as well as annuities. You can choose between permanent life insurance and term life insurance as far as a company gives the life insurance services.

Annuities are also offered by this company. In actual fact, there are four dissimilar kinds annuities offered including variable annuities, modified guaranteed annuities, fixed annuities, as well as immediate income annuities. Other services that you can expect to get from this company include getting the right type of investment advice is it for short or long term investments. Furthermore, such companies can also deal with mutual funds and make it easier for you to joining hands with experienced financial hands.

If you require becoming well-informed about money management, you should also check out a personal finance company. Furthermore, a Money Management Program will assist you deal with issues such as your long-term aims, strategy your entire portfolio as well as tolerance to risk.

A personal company will be the best choice for you to achieve your retirement purpose. Furthermore, this kind of company can also help you with the landed property.

Government of India in Full Swing to Develop Renewable Energy Investments and Projects

In India, the establishment of renewable energy projects is going in full swing. The banks of Japan and Germany have agreed to provide energy investments to the Indian Renewable Energy Development Agency for fostering their clean energy project. Indian Renewable Energy Development Agency, leading agency which renders financial assistances for the companies, that are executing renewable energy projects and the banks of Germany and Japan have planned to furnish around 630 million US dollars as energy investments to IREDA. The government of India has adumbrated challenging goals for developing the renewable energy infrastructure, in the upcoming decades. Government is also planning to endorse new projects on wind energy, solar energy and several types of clean energy projects. Recent reports declared by the International Energy Agency portrayed that, if the energy investments for the fossil fuel industries and production of fossil fuels are ceased, then it would significantly decrease the problems which are caused by the climate change.

The financial ministry of G20 recently mentioned that, around 550 billion US dollars have been allotted as energy investment to the fossil fuel industries. Many people across the world think that, the environmental concerns such as global warming and climate change would reduce the investments allocated for this sector, but it was false. For the past couple of years the amount of investments has increased drastically. In the recently held G20 summit at Pittsburgh, the president of the United States planned to phase out the energy investments and other benefits to the fossil fuel industries, which were welcomed by respectable number of people. Iran, leading supporter of fossil fuel in the world has furnished more than 100 billion US dollars to subsidize fuel industries. In 2008, Iran has delivered more than one-third of the budget of the nation towards the development of fuel sector.

National Solar Mission is established to provide assistance for promoting the infrastructure of solar energy projects in India. Additionally it aims to implement methods which would intensify the energy efficiency on several market-based approaches. The various sectors of the clean energy receive subsidies from the government and these subsidies are furnished to the project developers via premium tariff rates or incentives or by tax benefits. To fasten the development and implement critical technology the subsidies and tax benefits are offered to the power distribution companies and equipment manufacturing companies respectively. Financial guidance is provided to the costumers who are implementing special attempts to develop the clean technology. Many plans are carried out by the government to provide solar lighting system which would be helpful for poor people.

Due Diligence For Long Term Investing and Trading Success

Well executed due diligence conducted before investing is the foundation on which everything else you do stands.  It is the process by which you narrow down the choices on your watchlist.  It is the process by which you do what you can not to be the victim of  fraud, ala Madoff or any of the other thousands of ways people lie to get your money.

There are lots of ways to make money in the world of investing and trading over the long haul when you figure out where you have an edge and you stick with taking advantage of it.  You don’t need to win on every trade and you don’t need to try to make your fortune on any one trade.  What you do need to do is manage your trading so that you limit the risk of losing all of your money in any particular trade as well as spreading out the risks you are taking over a number of ideas so that if any one of them is a total loss you still have money to stay in business.

Too slow?  Boring?  Want to “swing for the fences”,  “throw the hail Mary”,  “put it all on one number”?  That is gambling.  It’s your money and you are free to do with it what you will,  but here’s a tip:  if you do your gambling in Las Vegas, you may get free drinks.  In stock, commodity, Forex, and other such markets, when you’ve lost your money all you’ll hear is someone saying “NEXT”!  What I am trying to get at here is that gambling is fine when you realize that’s what you’re doing.

 

How can you do that?  Well, it does take some time and effort, but not so much as you might fear.

Having some structure to guide your research can make all the difference.  The old standard for this thought process is the SWOT analysis .  The letters stand for –

  • Strengths –  What does this company have going for it from your perspective?    Is it well run?  Does it have a strong history of earnings increases?  Does it control a particular sector?  Is it a small company that institutions can’t invest in?  Is its price unreasonably low for some reason not associated with bad results or internal flaws?  Does it stack up well against its competitors?  and so on.
  • Weaknesses –  What is working against it?  Is it in a stagnant industry?  Does it face strong competition in key areas? Does it have too much debt relative to similar companies?  Is it subject to heavy government regulations?  Are there recent unexplained changes in the management team?  Has it changed auditors recently?  Does it have enough cash to do business?  and on and on.
  • Opportunities – What do you see in its future?  Has it got a patent on a popular product?  Is it’s field just opening up?  Is it growing to the point of perhaps beginning to be followed by analysts for the first time?  It it set up in a newly booming geographic region?  etc.
  • Threats – What dangers does it face? What could change that would make its position worse?  Are competitors challenging its key product?  Are there rumblings about nationalization of its foreign properties?  Is there a major court case coming up?  Do it rely heavily on a charismatic CEO?  Does hurricane season affect it?  Whatever you can think of,  put it on your work sheet.)

There is no right answer to this kind of research.  You will probably find some article, news item, financial report, or analysis that could be taken either as good or bad on just about every point on the worksheet.  What you will find is how you feel about all the facts and information you have collected, net positive or net negative.

When you do decide to enter a trade, the analysis will be your format for the ongoing due diligence as whether this is an investment to stay in or not.  You will be much quicker to notice if a positive is deteriorating, a weakness getting worse, an opportunity not panning out, or a threat coming to be, so that you know when to get out of a bad situation and move on.

In each phase of the investment, this is the way of thinking that lets you move forward with your eyes open, actively managing your decision making process from entry to exit.

How Do I Select a Financial Advisor and Investment Firm? What Makes One Different From Another?

Q: We were taking a walk in Princeton, New Jersey and were shocked by how many investment firms lined the streets. What are the major differences investors should consider when evaluating different investment firms, their services and their Financial Advisors?

The Problem – Choosing the Right Financial Advisor at the Right Firm. A recent internet based yellow page search for the words “stock broker” lists over 50 results in Princeton, New Jersey alone. They all seem the same, with one name fancier than the next. Their services range from stock brokerage to financial planning and wealth management. With so many firms to choose from, investors can easily make a wrong decision, which they will regret for the rest of their lives.

The Solution – A Little Due Diligence Goes a Long Way. Choosing the right financial advisor at the right firm is similar to selecting the right surgeon at the right hospital, but with a couple twists. Every investors needs to understand the different types of investment firms before they can make an educated decision.

Let’s start with the largest firms in the industry. These are the firms we see advertising during the events like the Super Bowl. Please pay attention to the upcoming twist. These firms are publicly traded companies that trade on the stock exchange like any other stock. And, like any other stock, the Board of Directors must act in the best interest of shareholders – not clients of the firm.

 

Many of the middle and smaller sized firms are not publicly traded and can act in the best interest of their clients – not the shareholders. Finding out if the investment firm you are considering is a publicly traded company is as easy as looking it up online or calling the firm directly.

Understanding the Firm’s Registration is Critical. Fiduciary duty is the highest level of duty an investment firm can exercise. When accepting fiduciary duty an investment firm must, by law, act in the best interest of its clients – above and beyond those of its shareholders or employees. All investment firms must register with security regulators. Most of the large investment firms register as a broker dealer, avoiding the obligation of fiduciary duty in the process.

If a firm registers as a Registered Investment Advisor (RIA) they are obligated by law to accept fiduciary duty. Here comes another twist. Some investment firms register as an RIA, but claim those aspects of their business are ancillary to their practice – mitigating their responsibility in the process.

If you can only remember one thing from this article, here it is: If you want the investment firm you are dealing with to place your interests above and beyond their interests, have them clearly accept fiduciary in writing on their company letterhead.

Understanding the Firm’s Services is Critical. Many of the larger firms imply they provide independent financial planning and investment management services. In reality, their financial plans are “free” reports designed to lure you into their own investments. No doubt, there is some disclosure buried somewhere in the documents explaining all the conflicts, but most people do not have the time to search for them.

Many of the middle and smaller sized firms imply they provide independent financial planning and investment management services. In reality, they are insurance salespeople trying to sell as much insurance as you can afford, and then some. One good litmus test is to find an investment firm that can assess a fee for a financial plan, whether or not you choose to utilize any of their other services. Another good litmus test is to find an investment firm that does not have their own investment products.

The Financial Advisor’s Background is the Most Critical Aspect of Your Evaluation. When meeting with a Financial Advisor, consider it an interview. The reality is you are hiring them for the most important part of your life… well, at least your financial life.

Some important questions to ask include:

1. Where did you go to college or graduate school?
2. What degrees do you have?
3. What licenses and certifications do you have?
4. How long have you been in the industry?

Ideally, your Financial Advisor should have a strong academic background, carry the appropriate licenses for your needs and have good experience. Two designations stand out in the industries of financial planning and investment management: Chartered Financial Analyst (CFA), a program based on a series of progressively more difficult exams, and the Certified Financial Planner (CFP), a program based on one exam.

Conclusions. Selecting the right investment firm and Financial Advisor is a critical decision. Utilizing the criteria discussed in this article can turn a difficult task into one of ease. If you are already working with an investment firm and a Financial Advisor be sure they can provide the level of service and independence you deserve.

UNDERSTANDING FINANCIAL INSTITUTIONS

The Company is a combination and variety of natural resources such as economic, labor, capital, and management (managerial skills) in producing goods and services in order to achieve certain goals. Various corporate objectives include: to get maximum benefit, ensuring the survival of the company, meeting the needs of the community, creating employment opportunities, and some financial management experts argued the company’s goal is to maximize corporate value or shareholder wealth maximization.

In general, companies can be divided into two, namely:
· The company’s first financial and
· The second, non-financial companies. Non-financial company is a manufacturing company that produces products in the form of goods such as: cars, steel. computer and or companies that provide non-financial services such as: transportation and computer programming. While financial companies, generally known as a financial institution, the company that provides services related to finance

1) Transformation or transfer of financial assets through the market.
Namely the transfer of funds and that have excess funds (surplus) to the party underfunded (deficit). This is a function undertaken by financial intermediaries (financial intermediaries), which is an important role and financial institutions. Services performed by banks, insurance companies, pension funds and finance companies.

2) Trading financial assets on behalf of customers.
Services performed by the broker (hi-ocher) to buy or sell securities on the orders of customers.

3) Trading financial assets for the benefit of its own
Services performed by the company’s securities (dealer) to buy and sell securities for their own corporate interests.

4) assist in the creation of financial assets to customers, and sell financial assets to other market participants. Services performed by the company’s underwriters in the issuance of shares.

5) Provide investment consulting to other market participants.

6) Manage the portfolio of other market participants (Fabozzi, 1994: 19).
Financial institutions can be defined as an entity whose assets primarily in the form of financial assets and bills can be stocks, bonds and loans, rather than in the form of real assets such as buildings, equipment and raw materials (Rose & Fraser, 1988: 4).

According to Law No. 14 of 1967 on Principles of Banking, which meant financial institutions are all bodies through activities in the financial sector and society to withdraw money and funnel it back into the community. Financial institutions lending to customers or invest funds in securities in the financial markets. financial institutions also offer a variety of financial services and protection from insurance, pension plan to sell the storage of valuables and providing a mechanism for the payment of funds and transfer of funds.

The process transfers that occur between parties who have extra money to those who need funds in general is in need of an intermediary or mediator financial institutions. Intermediation process gives also key benefits:

· First, it provides the opportunity for the unit to invest surplus funds and make a profit, thus helping to mobilize funds to not idle.
· Second, the process will move the risk from savers and surplus units to financial institutions and the users of funds. So the existence of financial institutions is intended to allow the allocation and transfer of funds and the surplus units to the deficit units can be run more efficiently.

Financial institutions in the financial world to act as an organization that provides financial services for its customers, which in general is governed by regulatory agencies of the government’s finances. The general form of the financial institutions are including banking, building society (a type of co-operatives in the UK), Credit union, stock brokerage, asset management, venture capital, cooperatives, insurance, pensions, mortgages and businesses alike. Financial institutions in Indonesia is divided into 2 groups: the banks and financial institutions non-bank financial institutions (insurance, mortgages, securities firms, financial institutions, etc.).

The function of this financial institution provides services as an intermediary between the owners of capital and money markets are responsible for channeling funds from investors to companies in need of funds. The presence of these financial institutions that facilitate the flow of circulation of money in the economy, where the money collected from individual investors in the form of savings, so the risk of these investors turn to financial institutions who then distribute these funds in loans owed to the needy. This is the main objective of the institution to generate income depositors.

Wealth Building – How to Stop Stressing With Your Investments and Start Building Financial Freedom

Life is too short to spend it stressing out over your investments…whether they’re going up or down or directly into the dirt. All of the uncertainty surrounding investments is enough to make you want to stick your cash into mason jars under your bed and be done with it. Thankfully, you can put a stop to stressing over investments and start enjoying peace of mind and success. All you have to do is start focusing on the investment strategies are timeless and which give you the greatest sense of control. Let’s look at two investment strategies which I’ve found to be pretty pain-free and great for increasing personal wealth.

Investment Strategy #1: Real Estate

No matter where you are, I want you to think about just how persistent the need is for people to purchase real estate. Everyone who needs a home needs to live somewhere, whether they’re renting from someone or mortgaging or purchasing a house outright. This means that if you invest your money into real estate, you’re investing it into something which is always going to have value. Real estate is one of the only investments which can never hit zero, although it can go down quite a bit at times.

 

However, even when the real estate market is taking a nose dive, you can still rent out the properties which you own until you find yourself in a position where selling them for a profit is an option. Many people think of real estate in terms of only buying low and selling high, which is why a lot of people end up losing money. However, if you learn how to read the market, you’ll know when to buy, when to rent and when to sell. This is when real estate starts becoming a smart and stable investing strategy.

Investment Strategy #2: Your Own Business

Investing money into your own business is perhaps the most stable investment strategy which you can engage in. It’s like investing into your education, where you’re also acquiring assets that can help to create wealth using your specific knowledge and expertise. For example, if you invest money into having a product created which you can sell for years to come, you’ll have a form of wealth which can help you to earn money over and over and over…perhaps even for life (depending on the type of product).

Thankfully, with the automated technology of the internet and the global economy, creating your own signature product is now easier than it has ever been. As long as your investment goes towards building an asset which has real value to people, investing in your own business or brand can prove to be the most profitable and secure investment moves that you can make.

Finance Companies Understand That People Want a Decent Reliable Car

When considering vehicle finance it’s highly recommended to look at all the different packages available. In the current economic climate the rates will be very competitive. Finance companies understand that people want a decent reliable car, if the potential borrower meets certain criteria it could be as simple as going out and choosing your dream car, with no need to settle for just a basic one.

An application for a loan can be approved within an hour in some cases. The loan terms can range from 6 months to 5 years. An older car will have a shorter loan term.

The loan can however be paid off earlier, in these cases an early settlement fee will normally be charged.

If you plan to get a car in a particular price range then the finance will be able to pre approve the amount before you start looking. This makes the selection process easier. Whether you choose a motor vehicle dealer or a private seller the fees will be transferred directly.

It’s normal for companies to have a minimum loan amount of $5,000. The borrower must be at least 18 year of age. Some borrowers will need a guarantor who will be held responsible for any default in payments. Interest rates will often vary considerably depending on a variety of factors. For those with bad credit history the process will be longer and the rates will change.

Specialist finance companies will be able to offer excellent rates and will be able to tailor details specifically to clients needs.

Entrepreneurial Management – How to Create Your Favorable Financial State and Influence

An entrepreneur is one who is successful in business. To lead the kind of life you want you should command a favorable financial state and you can do this through entrepreneurial management; the ability to create a business and be your own boss. The more people own their own business in a country, the better and safer the country will be; people who have a stake in their nation and community are its best citizens. A well-run business can generate unbelievable profits, outperform any other source of gaining wealth and surely bring you fame. Build a solid foundation for a business in order to build great investment for your future.

Entrepreneurial management demands you bring to stage your wits and wisdom to make things happen in exceptional ways. Before you start your journey to riches, you must take inventory of your current situation. The goal in wealth building is to do things far beyond your current demands you motivate yourself, go outside your comfort zone to maximize your abilities and potentials. In order to succeed in what you do, you need to expand your thinking outside your reality zone and aspire for greater heights. This is an ageless and timeless concept that I discovered in the life of all successful entrepreneurs. They strengthened their ability to manage and lead the affairs of life.

Are you ready to take absolute control of things and bring yourself to a focus with the rightful state you desire? Build assurance through concentration, affirmation and harnessing your skills in line with what you aspire for. Plant the seed of greatness in your mind and fertilize it. What is the degree of your idea power? Idea is the life blood of entrepreneurship. Fill your mind with reliance and also fill it with positive thoughts that paint your passion and produces productivity. Take a detailed look at your current reality and form a clear picture of where you would like yourself and your business to be in future. Define your niche, be smart, identify your customers and give them the best of services.

 

The secret of successful entrepreneurial management is to love what you do. The entrepreneurship lifestyle is for those who have the great mind to stand tall even in difficult situations. To make things easier for you, raise people and mentor/coach them to run the business and you have time for other things. Establish a good relationship with people. Once you are making a lot of money from your business, use the income realized to invest in additional assets in order t make more passive income. If you are in a paid job, I advice you not to quit your job when you are just starting your journey towards your entrepreneurship dream. You need that salary to help leverage your way to success in your entrepreneur goal. Synergy is the sagacity you need to make things happen faster and in a greater way. Partner with like-minded visionaries. Re passionate about the business you are in. this creates motivation and keeps going even in front of difficulties. Establish your entrepreneurial management capacity and create your favorable financial state to be a person of influence in this day and age.