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Lifelong Money Plans

Eurgh, we’re already in enough of tizz about our short term money plans, so why would we want to throw in lifelong ones as well. We’re sure that’s what you thought when you read the title, but there’s so many things that you should be thinking of when it comes to money. Money really does make the world go round, and there’s not much that you can do without it. And there’s a lot less you can do when money starts to go downhill. So if you’re someone who is always focused on the short term stress of your money situation, rather than thinking about what could be done in the long term, then you really are doing it wrong. Short term problems are short term for a reason, they will go away in no amount of time. But it’s the long term things that you really want to be thinking about. The problems and scenarios that are going to follow you through life, and that you really want to have plans in place for. So keep on reading, and see how your lifelong money plans could change.

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Payments That Last A Lifetime

There are some payments that will literally last you a lifetime. The ones that once you’re tied into, you know you just can’t get out of because your lifestyle depends on it. We’re obviously talking about your mortgage, and it definitely can feel like it’ll last a lifetime. But what makes it worse, the payments can just be so hard to manage, and getting them down seems near enough impossible. But have you ever thought to compare equity release, and see how that might benefit you? Releasing equity can take so much off your mortgage each month, you just have to look into it, and look into the right lenders. Remortgaging is also a good idea. Again, it will take your monthly payments down, even if just by a little bit, and improve your monthly expenditures on your home.

Investments Into Your Family

Your family should be one of the things you’re constantly investing in. As soon as you have children, your whole life begins to revolve around them, and there are easy ways that you can invest in the future of it. One way of doing so, would be to try and set up trust funds, which can then be transferred to your children when they come of age. Trust funds are an excellent way of making money on investments, far better than just putting your money into a normal savings account for them.

Working Your Way Out Of Money Troubles

Money troubles can stick with you for life if you don’t work on them now, and it’s so important that you really do work on them now. We’re thinking about debt, and how crippling that can be over a lifetime. So, if you really have got yourself into a pickle, you should think about contacting debt advice services. They can set you up with a plan to pay it all off, and to help you get your life back on the right track!

A Quick Introduction to Short Selling Currency and Its Use in the Forex Market

There are many strategies used when trading in the financial markets. Traders in the markets often buy shares or assets when they think that their value will go low. When a trader does this, the expectation is that the value of that asset will go high just in time for them to sell. By doing this, therefore, the trader is able to make some money. This is what shorting is all about in the markets. In the currency market, this process is a bit different since it involves two currencies where the short position sees one currency in the pair falling and the other one rising. Let us look at the strategy in detail.

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Short Selling in the Currency Market

As stated in the introduction, short selling in the forex market involves a pair of currency. Take the USD/EUR pair for instance. This pair comprises of base currency (the USD) and the quote currency (EUR). If the quote of the currency is USD/EUR=0.88 and the trader decides to go short, then they will basically be short selling the base currency while going long on the quote currency. In the hypothetical situation here, quote indicates that 1 USD equals 0.88 EUR.

The Premise of Shorting in the Forex Market

The premise of every trade done by a trader is that their move will allow them to make a profit. When a trader is short selling the USD therefore, they are expecting that at a point in time, the USD will be lower in value compared to the EUR. The ideas that inform such a move come from the research done on the market. Short selling in the currency market is pretty straightforward. There are no special requirements that a trader needs to comply with, nor are there special rules on the trade.

Risks Involved in Short Selling

Like in every other market, there are risks involved in going short particularly in the currency market. When a trader decides to go short, they are putting themselves at risk of losing money exponentially. This is because short selling assumes that the price will fall. If the price decides to rise however, there is no upper limit on how much the price of the currency can rise. Long selling does not have such a risk since the price of the currency can only fall to zero and not beyond. Traders thus are exposed to risk when going short and there needs to be a means of limiting the risks.

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How to Limit the Risks?

Fortunately, there are a number of ways through which a trader can limit the risks of short selling. One of the most effective ways of doing this is by using a stop loss. Stop losses are used across the financial markets and they provide a simple mechanism of exiting the trade when there are no profits to be made. The stop-loss tells the broker to exit the trade when a set short value limit is reached. The opposite this is placing a limit order, which exits the trade when the projected profit is met.

Crucial Issues to Note When Short Selling

As previously indicated, the forex market is great for traders who want to short sell. It is a flexible market that welcomes traders of all calibers. The market is nevertheless quite risky when it comes to short selling, especially when compared to other markets. The upper limit of loss is virtually infinite even though the lower limit of profit is 100%. Traders need to be prudent when trading in this market, therefore.

In summary

Short selling is a great way to make money in the forex market. For this strategy to succeed, the forex trader needs to be a good risk manager. The use of tools like stop loss is advised as the market is rather unpredictable. It is advisable to never risk more than 1% of the account. The basic premises of shorting in the market is similar to what is common in other financial markets. With proper strategies on risk elimination, there is a lot to be gained when shorting in the foreign exchange market.

Your Checklist: 5 Brilliant Investment Tips That Will Generate You Millions

In today’s modern society where debt is national and public debt is higher than it’s ever been, and no matter how much some of us don’t like it, money is the tool for achieving freedom and allows us to do what we want, it’s no wonder so many have their eyes set on the 1-million-dollar milestone.

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Having this amount of money in your bank account will typically mean you’ve reached a level of financial security and you can focus on the more positive aspects of life. One of the best ways to do this is to invest your
money now and get the return in the future, but you’re probably wondering how to do this.

While there are plenty of ways to invest your money, today we’re going to explore the five most brilliant investment tips you need to know in order to hit seven digits in your bank account.

#1 – Don’t Worry About Small Losses

It’s easy to get caught up in the trap of checking your investments every second of every day. However, this a sure-fire way to caught up and disappointed with your everyday losses, which are to be expected when you’re on an investment plan.

This can then cause you to make rash decisions that are going to leave you worse off in the long-term. Instead, remember to play the long game and remember that small losses are expected on your way to large wealth.

#2 – Avoid Penny Stocks

The common problem with investment is the temptation to invest your hard-earned money into penny stocks. After all, surely there’s less to lose over the long-term? However, this just a misconception because even if your $10 stock plunges to zero, mathematically, you’ve still lost 100% of your original investment.

This means the risk is just the same, but you’re not opening yourself up to the opportunity of earning more profit back on your original funds. Penny stocks also tend to be less regulated than higher earning stocks.

#3 – Don’t Chase the Highest Tips

During your time in the investment industry, you’re going to be presented with ‘tips’, or ‘hot tips’ that are going to try to persuade you into buying into certain stocks or shares for maximum, lucrative returns.

While these tips could be right, never take them at face value and always do your own research prior to investing your hard-earned money. The more you know about an investment yourself, the safer the bet will be.

#4 – Have an Open Mind

One of the most important things to remember is that you need to go into your investment strategy with an open mind. There are a ton of smaller stocks out there, especially in tech or in other industries that may be small now but have a huge potential to become blue-chip clients in the future.

Again, do your research and get as educated as you possibly can. The more informed you are, the more likely you are to get the best results.

#5 – Stick to Your Guns

When you’re investing your money, most of the time you’ll have a strategy, whether that’s one you’ve made yourself or developed using a professional financial advisor, like this Sydney finance broker. Strategies are designed to work well over the long-term; and if you panic and keep changing it, you’re never going to get the results you’re aiming for.

Summary

This is just scratching the surface of what tips are out there when it comes to turning a small fortune into millions. The best way to go is to get as educated as you can on the subject and use a professional advisor to help you make these all-important decisions.

Branching Out: How to Choose the Best Investment Broker for Your Needs

For people who have taken the audacious step towards investing, you cannot do so without first owning a brokerage account. Technological advancements coupled with the way the internet has infested every nook and cranny of day-to-day financial institutions, and there has never been a better time to invest your funds.

Competitions are rife amongst brokerage firms, with every broker offering new deals, the ability to trade stocks, and even involved in options trading—all of this done to convince you to join forces with them.

Choosing the right broker for your investment should be as important as choosing the right bank for your transactions. One should not outweigh the other. As a young investor, for you to become successful in the journey of investment, you need to properly deliberate on what services and products these brokers offer that will suit your needs. Many investors have fallen prey into nefarious brokerage firms in times past due to the lack of proper information

So, how do you choose the best investment broker that is right for you—in a sea full of brokers?

We’ll be looking at some of the factors that should aid your decision in selecting a broker for your investment. You can view here for more information regarding investments. 

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Cost per trade

This is a necessity in every brokerage firms. Since the costs can be compared with other competitions, you should take out your time and look at every cost per trade each broker offers. The importance of this cannot be overemphasized. Take your time and investigate all the costs. There are some brokers that have minimum commission off trades from stocks but will not be suitable for you if you mostly invest mutual funds where the commission may not be attractive to you.

Investment options

Flip through the list of brokers and check out the variety of investment options they provide. A young investor should be armed with this information; a good broker offers you the options of investing an assortment of assets, be it bonds, treasury securities, exchange-traded funds (EFTs), options, stocks, futures, real estate investment trusts, and even certificates of deposits. For investors planning to only invest in ETFs, you need to choose a broker that will offer that service, the cost of that service and the possibility of spreading your wings in the future.

Referrals

No matter how convincing a broker ad may be, there are things that may not be apparent to you. Hence, before making the decision to create an account in a brokerage firm, you need to reach out to those who are currently investing in that firm or have been in times past. In the same vein, be careful of relying on opinions of such brokerage comparison sites, as some of them may, in reality, be an affiliate of the brokerage firm you’re planning to join. The best way to spot them is to look at how they present the information. If they provide unrealistic information, donating 5stars to brokers, your suspicion should be piqued.

Minimum Initial Investment

Most brokers have minimum initial investments that run into thousands of dollars. However, there are some brokers with little low minimum initial investments in hundreds of dollars. You should check for the clause in the minimum trades and also the penalty of not abiding by the requirements.

Types of Retirement Account

It is best to confirm the many types of retirement accounts a broker offers before signing up with them. If you want to set up a regular account with plans of opening an IRA or a custodial account for your kids in the future, you need to check if the broker can meet this need. This will not only save you unnecessary research time in the future but will make your decisions easier to make.

Direct Investment Advice

Before you sign up you with a broker, you need to find out if the broker offers direct investment advice, and if there is a charge for that particular service. Most brokers provide limited investment advice and offer you the opportunity of having full unrestricted direct investment advice for a fee. Also, there are brokers that’d charge you for broker-assisted transactions or for advice on a need-to-know basis. You should understand that the reason why most brokers offer low transaction fees is that they offer little or no assistance. You should inquire into the handiness of such services from brokers before settling on anyone—being aware that it could change the structure of charges should you choose them. 

Interest on Uninvested Funds

While some brokers offer interests on funds that have not been invested, some don’t. Look out for the ones that do while checking with the other parameters listed above before making a choice.

License.

Perhaps the most important factor to note down is to check if the broker is properly licensed with regulatory bodies like the Securities and Exchange Commission, and the Commodities Futures Trading Commission and other state commissions.

Experience

You need to find out the wealth of experience of a broker before choosing to sign up with them. This also involves finding out the number of training he or she has, plus the strategy and manner they approach investment.

Customer service

Finding a broker who is easily accessible and can attend to your questions and needs should be a top priority when choosing a broker. Check for the variety of customer support (direct phone, live chat, email) before making a decision

Visit Local Office

You can also pay a visit to the local office of the broker and talk to an executive there. If you are impressed with your findings there, you can make the choice of signing up.

When you place all these factors into consideration, choosing a brokerage firm that will meet your needs will not be difficult. Always remember that if you are not satisfied with the services of a broker, you are free to close down your account and choose another broker who understands your needs and gives you value.

3 Rules For Investing In Property Abroad

When you’re looking for investment options for your savings, you’ve probably thought about real estate. Property prices are on the rise and there are a lot of different ways that you can take advantage of that to make good money investing in property. One of the best ways to invest in real estate is to buy a property abroad. You’ve got more options for renting it out and you can make better money letting it for shorter periods to people when they’re travelling. The prices tend to be a lot lower as well so the initial investment isn’t anywhere near as high. But there are a whole new set of challenges involved with real estate investment in another country so you’ve got to be careful. If you’re considering it, here are some basic rules that you need to follow when investing in property abroad

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Be Careful With Up And Coming Locations

A lot of people try to get a good deal by finding somewhere that is an up and coming location where property prices are still low. They buy a property now while it’s cheap and in a few years, when the area turns into a tourist hotspot, the value of that property shoots right up and they make loads of money renting the place out. That’s a great strategy, as long as it actually works. Often, there are a lot of rumours about a place that turn out to be nothing more than that. If you buy a property based on these rumours, you could end up stuck with a house that nobody will rent or buy and the value might even go down. When you’re looking at properties for sale, it’s best to go for well established areas that are already popular. You’ll pay more for the property but you can massively reduce the risks involved.

Don’t Forget About Taxes

Every country has their own rules about taxation when you’re buying a property so don’t forget to do your research. You might have to pay stamp duty or some equivalent as well as VAT on the property and the rates might be a lot higher than they are at home. If you don’t factor this in when you’re pricing up properties, you might be in for a nasty shock when you actually come to buy the place and all of the taxes are added on top.

Rental Laws

There are different laws about renting out a property in different countries as well. In some places, only certain properties can legally be rented out. For example, there has been a lot of trouble in New York recently with Airbnb because there are strict regulations about the type of building that can be used for short term lets. If you don’t check the laws before you purchase a property, you might end up with a place that you can’t legally put tenants in.

There are a lot of tricky legal considerations to deal with when you’re investing in property abroad and it can cause you a lot of trouble if you get it wrong so always do your research properly before you make any decisions.