Tag Archive for Investing

5 Investing Excuses You Shouldn’t Give In To

Investing Excuses

graph-163509_1280Everyone knows that it is a good idea to invest your money for the long term. You don?t have to play the stock market actively in order to be invested ? there are plenty of passive, simple ways to allow your money to work for you. Whether you want to take on very little risk, or you would welcome risk in order to aim for a big profit, there are plenty of investing options for everyone.

Many people simply sit on the sidelines and come up with excuse after excuse for why they haven?t yet started investing. Perhaps, you have used some of these excuses yourself. Take a look at the following list of five investing excuses to see if any of them sound familiar. Once you better understand why these are just excuses and not valid reasons, you may be a step closer to investing in the stock market?yourself.

Excuse #1 ? It?s Too Complicated

This might have been a valid excuse twenty years ago, but not today. With the wealth of investing information that is available online today, and much of it for free, ?there is no reason you can?t learn what you need to know. Even if you don?t care to get into the complicated world of advanced trading techniques, you can educate yourself on things like index funds?and mutual funds?so that you can make safe and smart choices.

Excuse #2 ? I Don?t Have Thousands of Dollars Available

You don?t have to invest thousands of dollars right up front to start?investing. It is possible to open an account with as little as a few hundred dollars, and you should be able to add to that account a little bit at a time as you have money become available. The important thing is to just get started, even if the numbers are small to begin with. In fact, you can open an account with Motif Investing for as little as $250?to get you started investing.

Excuse #3 ? I’ll Lose Money

This is an investing excuse I hear nearly every day. Investors see the stock market go down and they fear that they’ll lose all their money. Of course, it’s certainly possible that the you’ll lose everything, it’s not very probable. The market, as a whole, has had a positive return each decade for the past century – aside from The Great Depression. In the case of the Depression the loss was slightly below one percent for the entire decade. The moral…the market goes up and down – don’t let fear paralyze you from growing your money.

Excuse #4 ? I?ll Do It Next Year

This is probably the most common excuse, but it is one that you should ignore. Starting next year will never happen, as you will just continue to put it off. Take a stand against your procrastination and open your investing account right away. Plus, the benefits of investing are even greater the younger you are?when you get started investing.

Excuse #5 ? I?d Rather Keep It in the Bank

You are never going to make the same kind of return by keeping your money in a savings account that you can by engaging in some simple investments. By placing your money in a low interest savings account, you will be missing out on a great opportunity to grow the size of your account passively over the years.



Have you heard any of these investing excuses??What investing excuses have you been guilty of? What are some other reasons why people stay away from investing?



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Savings Accounts vs. Investing Your Money

Savings Accounts vs. Investing Your Money

pig-632117_1280If you are trying to build up your wealth, then you are probably considering both saving and investing. There are benefits and drawbacks to both of these methods, and you should understand what those are before you start putting your money anywhere.

Saving Accounts- Pros and Cons

A savings account can be more than just the basic long term or short term savings account most banks offer. These basic accounts simply grow interest over time based on how much you deposited. Each bank offers a different rate, so you want to look into what is available and find the highest possible rate to get the best return.

Savings accounts can also be accounts where the money is put into certificates of deposit or insured money market accounts. The upside to all these means of saving your money is that they are very secure. There is little to no chance that you will lose the money you put into a savings account. Most of the time it is insured, even if the bank were to go out of business or the currency were to lose some value. That’s why the U.S offers FDIC insurance.

These accounts are also very liquid, which means that you can get your money back fast, usually within hours. Some banks offer easy to access accounts for savers specifically for this need.

The main disadvantage of using a savings account to grow your wealth is that the rate of growth is usually very slow. It is often fixed, meaning you will know how much growth to expect year over year, but those rates are usually quite low in comparison to investments.

Investing- Pros and Cons

Investing can be done through any number of means. You can invest in stocks, in bonds, in property, in business and more. The main advantage to this kind of wealth accumulation method is that your chance for a great result is much higher. Incredible gains are the goal of every investor, and those who know the markets they are investing in know where to expect such gains.

That chance of making it big with an investment also means there is a possibility for significant losses. There is a lot of risk involved in investing, and anyone who has been doing it for some time has probably lost quite a bit of money.

Investments are far less predictable than savings accounts. There is no fixed rate and no insurance. Once you lose your money, your only hope of recouping it quickly is to invest it once more. It can be a vicious cycle, but it also offers many opportunities for success.

The best and soundest investments often take years to actually come through. You may have to cultivate and grow a portfolio or an investment before it pays off. Investing in a rising celebrity or in a collection of antiques can earn you big money later, but it may take many years to actually get that investment to a point where it becomes profitable.

For anyone looking to grow their wealth, it is recommended that they use both savings accounts and investments. Make the savings the foundation of the wealth, growing your money steadily to cover any losses that may be made while investing.


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3 Reasons to Save for Retirement When You’re in Debt


hand-588982_1280Do you dream about retirement? I do every now and then. I like to think about what my life will be like when I don?t have to work every day to pay my bills and instead I can relax, travel, and enjoy life to it?s fullest. But I know I won?t be able to make that dream come true without a lot of hard work now.

I?ve still got a ways to go to get out of consumer debt, about $15,000, and while that is my main financial goal right now, I haven?t let that stop me from saving for retirement and building my emergency fund.

Splitting my money between these three financial goals: debt freedom, emergency savings, and retirement savings, does mean my progress toward each is a little slower, but I?ve found that is that works best for me. Here are three reasons why you shouldn?t put off saving for retirement even if you are in debt.

Taking Advantage of a Match

The biggest reason I decided not to stop my retirement contributions was because of my employer?s 401(k) match. They offered a generous 6% match in addition to a 3% investment for each employee. The good news about their plan was that even if I decided not to participate they would be putting 3% into my 401(k) anyway. There’s no better money in my opinion than free money. 😉

I always participated in the 401(k) at my job because I wanted to take advantage of that matching money. Think about it ? if you put in 6% to get the full match you are automatically doubling your money right off the bat. There?s no other investment that can get you a guaranteed 100% return on your money.

There?s Always a Reason to Put Off Savings

One of the most common things I hear from people my age who decided not to start saving for retirement is that they are saving up for a big purchase ? like a house, a car, etc. The problem with this is there will always be a purchase or reason to delay saving for retirement. The moment you think you have your home and car repairs and maintenance finished something will break or need replaced. That?s just part of being a home and car owner.

Instead of putting off retirement savings to pay for these things you need to budget for both of them every month. That way you won?t have to scrimp on either of your financial priorities.

Don’t give into the belief you?need?to have a lot of money to invest. There are many online brokers, such as Motif Investing, that allow you to start investing with as little as $250 or less. If you don’t have the funds to start at that level, then budget a small amount each month til you do have the necessary funds. The earlier you start, the longer your money has time to grow and work for you.

Retirement Will Be Here Before You Know It

Time flies by very quickly and while retirement might seem like it?s a lifetime away, it will be here before you know it. Plus you won?t be ready when it?s time for retirement if you don?t start saving right away. It takes a lot of money to retire comfortably and not have to worry about money. It?s always better to overestimate expenses instead of underestimating them.

I started saving for retirement at 19?and I?m so glad I did. I may not be debt free yet, but it makes me feel better to know that I have money socked away in my investments?earning interest for the dreams of my future self.



What are your thoughts of saving for retirement while paying off debt? How much of a match does your employer provide? What are some common excuses you hear from others as to why they’re not investing?



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Is Becoming A Stock Broker The Right Career Path For You?

Stock Broker

Stock BrokerWorking in the financial industry can be a very profitable career choice. Any finance-related career will mean it’ll be that much easier to manage your own finances as you will have advanced knowledge that the rest of the population didn’t have the privilege to receive. One potential career choice is that of a professional stock broker. According to the Bureau of Labor Statistics, the expected job growth to this career is 11% which is about average.

So, who exactly is a stock broker?

A stockbroker is basically a person who takes the role of an agent when it comes to buying and selling stocks, shares and other securities for customers of a brokerage firm.

How to become a stockbroker

Get an Education

In the past, as long as you had a solid understanding of investment matters you could successfully become a stock broker without a college degree. However, with today?s competition a college degree is necessary. In fact, most employers only accept bachelor?s degree graduates for entry level stockbroker jobs.

Of course, when pursuing a career in the finance industry, you’ll want to earn a degree in either business, finance, economics or any other finance related field. Additionally, ensuring you?go to a good college?in terms of reputation and education quality is a wise move also.

Get Experience

Internships are a good way to learn more about this prestigious field. Even if the internship is unpaid, it is for your own benefit. This is because in order for you to be licensed as a broker you must have been in employment as a broker for at least four months.

Have an Individual Investment Portfolio

By the time you are out of college, you should be old enough to start and manage your own investment portfolio. This will also add to your level of experience. If you can successfully do it for yourself then you can do it for others as well.

Three Distince Career Paths

Full Service Broker

If you decide to seek employment at a full service firm, you’ll be allocated an office, a salary and the required training. You will also be given a high sales target that you must meet so as to be retained.?This calls for exceptional sales skills.

Discount Broker

As a discount broker you will not be charged with sales but only investment management. You’ll be assisting walk-in clients with buying and selling stocks and bonds. Discount brokers get a flat rate salary and little or no commission.

Be a Bank Broker

Banks also employ stock brokers to assist their customers with annuities. Working as a bank broker can build your clientele as you’ll be offered referrals by other employees working at the bank. This, of course, is good for business since the bigger your book of clients, the higher the income you will receive.

Take the mandatory exams and get licensed

To be Fully Licensed Take the Series 7 and 63 Exams.

Series 7

The?Series 7 Exam?is also call the General Securities Registered Representative Examination and is administered by the Financial Industry Regulatory Authority (FINRA). It is very long and lasts a whole six hours. Armed with this, you are certified to sell all investments and securities except product futures, real estate and life insurance.

Series 63

This is a 75 minute examinations and is known as the Uniform Securities agent state Law. It is offered by the North American Securities Administrators Association. This exam is meant to test your knowledge as far as all kinds of securities are concerned.

Think about taking and passing additional exams

  • Series 65 to make you become a professional registered investment consultant
  • Series 66 which is merely a combination of the mandatory series 63 and 65
  • Series 3 to give you the knowledge required in selling future contracts for commodities
  • Series 31 to educate you on selling managed future finances

Network, apply for better jobs and scale the heights of success

Once you have the license and experience, you can now set yourself to move out of your comfort zone. If you are working for a small firm you can apply for better jobs at larger firms. Better still, you can decide to venture out as an independent broker.

So it’s obvious that good education is necessary for you to succeed as a?stockbroker. Also, reading valuable books will equip you with the required knowledge as far as your career is concerned. Exposing yourself by keeping in touch with what is trending in the financial markets is a good move too. To learn more about this profession, visit?www.stockbrokersalary.biz.


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Personal Objectives Shape Money Management Choices

Money Management

Money ManagementPersonal financial management means different things to different people, so there is no single “best” way to manage your money. That is not to say sound fundamental principles cannot be applied to most personal financial situations, but there are specific strategies and concerns that distinguish how individuals handle their money. Age, professional objectives, family size, and other factors influence the best approach for each person, so it makes sense to assess your individual needs before setting your course.

Generational differences also exist, prompting those closer to retirement to act in ways that wouldn’t make sense for younger generations. And at the same time, risky speculative behavior undertaken by young people might not be the best path to success for middle-aged individuals. Considering the outside influences is only part of the equation, which also accounts for personality traits and individual life goals. As a result, financial advisors and economic analysts continue to recognize subtle differences in the way individuals think about money. And as they adjust to accommodate differences, some personal money managers are apparently being left behind.

Young People Adopt Distinct Money Views

Each generation is marked by unique phenomena that set it apart from others, so it is not surprising financial concerns are also age-specific. Accounting for these differences is up to each individual, but it is also a responsibility shared by financial professionals and educators.

Up and coming Millennials face an environment very different from the one their parents and grandparents were subject to. As a result, their approach to money is marked by unique priorities and distinct concerns. Employment conditions and student debt, for example, weigh heavily on the lives of young people, who are often struggling to manage these issues. Preoccupied by fundamental financial concerns like debt reduction and upward mobility in the workforce, the younger generation is forced to forego traditional financial objectives like buying homes and cars. Investing in the stock market is also down among Millennials, when compared to the approach taken by previous generations.

In addition to age, personal goals and other influences, financial management is also subject to shifting modes of operation. Technology, for example, continues to alter the way people track and allocate funds. Financial apps and websites dedicated to money matters are favored by young people who are most familiar with these technological advances. FaceTime and Skype are also more popular among the younger set, which uses these and other alternative forms of communication to connect with financial advisors and to increase their knowledge about money matters.

Finding Financial Success at any Age

Sound money management includes meeting daily expenses, but it also relies on strategic planning for future needs. And while each person approaches money matters with unique goals in mind, time-tested understanding is invaluable to financial planners in all age groups.

Money concerns range from retirement planning to mortgage issues, so management emphasizes different aspects of finance for each age group. Surprisingly, those approaching retirement have been the least engaged consulting with professional advisors. In fact, only 36 percent report having done so in their lifetimes. On the contrary, personal money managers in their 30s have become strong advocates for their own security, representing the most active age group seeking professional financial guidance.

Recent research also found that when people do seek financial advice, it isn’t always directed at the most pressing issues. According to industry representatives, retirement planning – especially among those preparing to leave the workforce is the most important financial area to address. In reality, however, greater numbers of those seeking financial advice do so concerning mortgages and other priorities.

Regardless of your age, personal financial success encompasses a variety of issues. And while it appears young people are facing greater debt and delayed access to traditional big-ticket purchases, they are seemingly more likely to seek financial advice from professionals. As you shape your financial direction, account for immediate needs, but also use age, family size and personal goals to plot your course. When in doubt, share your objectives with professional advisors, who are equipped with knowledge and understanding of current financial markets.



Photo courtesy of: Transamerica Financial Advisors