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5 Top Investing Strategies For Your Financial Gain

October 30th, 2018 Comments off

1. Advertising: Advertising now occupies the first position amongst all the other investment strategies. With world racing with enormous speed, there is also a subsequent development in the field of media. There are plenty of organizations and companies that are totally dependent on the public people-they manufacture products expecting the public to buy them so that they can make a fortune. And for these products to gain exposure, it needs some level of advertisement among the public. This is where the advertising companies come into the scene. As the number of products increase rapidly, there have been a great demand for advertisements in the same pace. Investing in such advertising companies can ear you good fortune.

2. Using Long-Standing Investment Strategies: Prefer long run investing strategies that will help guard the investment capital from losses and risks. Enduring strategies comprise dividend investing, with the intention that one can bring in compounded interest which actually sums up in the long run. Investment strategies like these seek to decrease the losses in capital, and are generally more conventional than temporary investing strategies and practices. One might receive a little a smaller amount of a come back with this conservative investing, however the advantage is that the risks are very much lower.

3. Saving from your own income: There is no clever investment strategy than saving some bucks from your own pocket. It is very advised to gather hay when the sun is till shining. Set aside some part of your income and invest in the form of bonds or certificate deposits so that you can use them in times of need. They also can be a form of ‘security’ at times when things around you get worse.

4. Diverse Investments: Diverse investments are investments that are invested in an organization or in a company for a certain period of time until the investors feels satisfied with the amount accumulated. Generally, diverse investments are made keeping the long term high returns in mind. People belonging to both the parties agree to a set of conditions and sign on a contract that clearly specifies the benefits that an investor would get. The company agrees to pay the investor certain percentage of amount from its profits in regards to his investment. Upon accumulating some considerable amount of money, the investor can either choose to withdraw from the company or can choose to continue with the company to make more profits. Generally, it is highly advised to continue with the company as much as possible because, the value of the investment tends to increase with respect to time. The more time the investment is in the company, the more will be its value. This form of investing strategy can draw you higher returns with respect to time.

5. Always do remember that the financial markets always go in a cyclic fashion: Maintaining ones viewpoint is very necessary to evading silly and reactive moves. To finish “extreme” anything works only in sports – not in investing. Multiplicity and calculated action is only the way to go ahead. Never stop investing. Always maintain a habitual investing strategy.

The top investing strategies do not occupy the same positions every time. The positions keep on changing according to the market trends. It is highly advised to research the market and recognize the ‘fruit-yielding’ areas that promise you higher returns for the investments you are making. Also, be prudent in your decisions and never make hasty decisions in a hurry. Thinking before you act twice can benefit you a lot and can possible help you employ a safer approach.

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Trading Software: How To Select The Best

October 17th, 2016 Comments off

The world of Forex has become very influential today and the major power behind it is to know what kind of software to chose. A good trader today should learn how to work with a Forex. The major question people will ask is why needing this software? The work of trading software is to get maximum amount of data possible from the market within a short time period. What we mean by this is that the trader gets instant data from the market and can remain competitive with this. It is for this reason that the trading software is very necessary.

To get trading software is so easy. All you need to do is either download online or you can use the one that the online Forex brokerage offers. This second option requires you to have a computer and a rapid internet connection for you to create an account with the Forex Brokerage sites. You will be granted access to the site only after you have opened a funded account. You can then use their forex for your trade.

selecting the best trading software is not that difficult. You only have to base the program you selected on 3 criteria. They are namely: reliaptitude, the type of application, and the user’s detailed personal needs. We will examine each one of them so that you will be able to get the best trading software.

The first one we will look into is reliaptitude. You must pay absolute attention to this criteria. It refers to the aptitude of the program to deliver real time data from the market. Does it provide you with instant access to market data? Does the system often get downtime? Is the data accurate? These are the questions you need to ask yourself first before purchasing software. You can always check the forums or message boards about the product. By doing so, you will be able to check out if previous users have any complaints about the product.

The next one on our list is determining which type of program works for you. There are two types of these applications. They can be either web based or server based. Server based applications have data machines that store data from the web and transactions between the traders and the users. The primary concern of server based programs is the delay of the transfer of data. The delay will be based on the physical distance of the main server to the trader’s machine. Internet connection will also play a element in the delay. You will also need a very good machine to act as the server. This will cost a lot of money because you will need to take care of your server, too. Web based programs, on the other hand, are more popular because of the fact that they do not need servers. The content is just in the website of the trader. All the trader needs to do is access it.

The detailed needs of the user are also very important. The user has to judge by him if he has really selected the best software. This can be done by checking the applications provided by the software and determine if it corresponds with what you need. This criterion is so important to consider since it will make you chose the best software.

It is vital not to forget that the Forex market is a dangerous place. This is the reason why you should make sure you grab the best program with the best characteristics. If you want to know which program will best suit you, just try many different programs by creating a dummy account with the Forex Brokerage Company. Most of the Forex Brokerage online give you the possibility to try their software programs for free in order to help you chose the software you need.

There are several sites that deal with forex and the essential thing to do to get good forex software is to try as many as possible. Getting the best forex simply means you want to maximize your chances of earning money in the forex market and reduce the risk of losing money.

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Buying Term And Investing The Difference

October 22nd, 2012 Comments off

I am sure that some of us has heard of the saying “Buy term, invest the difference” when buying insurance and investment products. However do we really understand what this means? So why do most financial planners recommend that we should “buy term and invest the difference” while some insurance agents keep on bugging you to get their recommended product ?

The majority of whole life insurance products available today is tantamount to “rip offs.” In fact, these kinds of products has already been phased out in the United States. When we talk about “term insurance”, this refers to insurance with life coverage only. On the other hand whole life insurance is a term policy coupled with investments. Your insurance agent will always present whole life insurance as something that will “force” you to save for your retirement. This is actually good, but the problem with this setup is that most insurance companies do not usually give a good rate of return for the “investment” component. Sad to say, whole life insurance products are still actively sold in the Philippines. People still buy these products because of lack of financial know-how.

In order to fully understand this, let me give you an illustration. My mother asked me if she should continue paying an insurance product that she bought for my sister. The insurance product was worth about P 400,000.00 (Philippine Peso) She already paid half of it so the balance left is P 200,000.00.

In order to weigh the pros and cons of the product I asked her to tell me what the benefits were. According to her, the benefits are that after 20 years, my sister (still 18 years old as of this time) will receive P40,000.00 per year until she reach 65. At the age of 65 she can choose to either receive P400,000.00 lump sum or continue receiving P 40,000.00 perpetually. She is also insured for two million pesos.

To determine whether she should pay the remaining balance of P200,000.00, the benefits of the insurance product must be pitted against the benefits of the “Buy term, invest the difference” strategy.

Under the insurance scheme, the total benefits my sister will be receiving is as follows; she will get a total of P1,520,000.00 at age 65. Plus she is insured for P2,000,000.00 giving total benefits of P 3,520,000.00.

On the other hand the benefits of the “buy term invest the difference scheme” is as follows: The P 200,000.00 will be invested at a vehicle of investment that gives about 10 % return per annum. She will then re-invest the profits made through the investment in order to take full advantage of compounded interest. If she does this consistently she will get around P17,639,497.05 when she reaches the age of 65. As for the payment she already made for the insurance product, she will just ask the insurance company to convert what she has already paid into “term insurance.” This is usually good for only 20 years. (That is if her insurance company allows it)

Can you see the big difference? What is P 1,500,000.00 plus P2,000,000.00 insurance vs. P 17,000,000.00+.

But what if her investments will incur losses ? That is no problem at all. She can just buy term insurance and renew it every time it expires anyway, term insurance is very cheap and affordable.

The next thing you could probably ask, what investment vehicle would give me 10 % return per annum? Well there is and there are lots of them. You can put it in mutual funds. It does not guarantee a rate of return but historically most mutual fund companies give you more than 10 % return per annum especially if they are invested in equities. Now that the stock market is very bullish returns ranges from 40 % to more than 70 % per annum. You can even directly invest in the stock market. Even the most conservative investors in the stock market earn more than 10 % per annum.

Now you know why buying term and investing the difference does makes sense !!!

Would you like to know more about investment strategies? Visit the blog of Zigfred Diaz where he writes about several interesting topics such as investments, money management, business, making money online and Stock market investing

Make The Rule Of 72 Work For You !

June 21st, 2012 Comments off

An Overseas Filipino Worker (OFW) started to work abroad. Having worked for several years there at the age of 29 had a total savings of P 100,000.00 (Philippine peso)

Since the only investment vehicle he knew about was putting his money at the bank he went to the bank and deposited his P 100,000.00. The bank manager gladly accepted the money and even recommended that he put it at a time deposit account so that it would yield a higher interest rate at 4 % per annum.

As suggested by the bank manager, he placed his money in the time deposit account and didn’t touch it until he reached the age of 65. Since he is retiring from his job, he went back to the bank to withdraw the P 100,000.00 in his time deposit account. To his amazement his P100,000.00 had already become P 400,000.00. Because he wanted to enjoy his life, he withdrew all his money and lived happily ever after.

So tell me, is this a “live happily ever after” story or not? Do you think this OFW has “wisely” handled his money? Did he really maximize his money’s potential or did he just made others more richer ?

Under the rule of 72, in order to determine how many years it takes for your money to double you only need to follow this very simple equation: 72 / interest = No. of years it takes for your money to double

In the case of this Filipino OFW, every 18 years his money will double. 72 divided 4 % per annum = 18 years. So if he deposited his P 100,000.00 at age 29, his money will become P 200,000.00 at age 47. Add another 18 years then he reaches the age of 65. This time his money becomes P 400,000.00.

Now that the P 100,000.00 is in the bank’s hand, what do they do with it ? Well they basically invest it in other vehicles of investments which gives them a higher interest rate such as mutual funds, the stock market, the money market, government bonds, corporate bonds etc. They even use it to loan it back to the depositors at a much more higher interest rate. But let’s just say that all of the bank’s investing activities gave a return of 12 % per annum. Using the rule of 72, it can be determined that the same amount of money will double every 6 years. (computed as follows: 72 divided by 12 % interest = 6 years)

So after 36 years when the OFW goes back to the bank to claim his P 100,000.00 the bank manager gives back his P 100,000.00 with a smile plus the interest of P 300,000 totalling to P 400,000.00.They wouldn’t need that anyway since they already made a total of P 6,400,000.00 out of the OFW’s P 100,000.00. Talk about hi-way robbery !

Think like the bank if you want to be more wealthy and a more better steward of your money ! The Rule of 72 works ! Make it work for you !

Would you like to know more about investment strategies? Visit the blog of Zigfred Diaz where he blogs about several interesting topics such as investments, money management, business, making money online and Stock market investing