May 14th, 2013
A financial advisor is generally thought of as a person who advises on what stocks and shares to buy and sell. Not quite, today it is much more than that. A financial adviser has to look into not only investments but, also insurance, budgeting, taxes, retirement, education expenses and estate planning. But, before that one would have to determine on what areas one requires help. Two things are achieved because of this exercise.
One, it will make one more aware on what one can do with the available finances and two, one will be able to make a judgment on the expertise possessed by the financial advisor. It is not enough if a prospective financial adviser has passed all the academic examinations required by law. It is paramount to find out his experience in real-life situations too.
An advisor should be held to fiduciary standards, meaning that he has to act in the best interests of the client. Stock brokers are not held to these standards so they cannot be expected to be good and reliable financial advisers. If one needs only taxes to be handled, a chartered accountant would be sufficient. For something more comprehensive, a financial planning organization would be required.
April 16th, 2013
Do you love the Stock? Why?
You love the stock because it is a great investment. Or Stock becomes a great investment because you love it. Whatever may be the perspective; there are two types of Stock Investors.
First type of Stock Investors is the Stock Geek who knows about the stock investment and they make a right move at the right time. Profit is their habit and they have deep understanding of the stock market which they love. A Stock Geek will take some more dates to know well about the stock before he loves to invest in it.
The Second type of Investors is the Quick profit lovers who are in blind love with the stock. They fall in love with a stock without knowing the true value. These Quick profit lovers can lose all their money in the unexpected market crash and has to undergo therapy at least for a year to recover.
So it is good to be as Stock Geeks and save yourself from therapies resulting of market crash. Learn the great truth of stock investment, learn to love the correct stock, and you will never lose your heart to the wrong stock again. Then you will learn to love Stock investment again!
March 14th, 2013
Financial development is considered as an important determinant of economic growth. But the micro determinants for the financial development are not understood well, particularly in the countries of emerging markets. Two views are considered for the low demand in formal financial services. One is the high fixed costs and the other one is the limited financial literacy. While testing the leading theories for low demand in emerging market financial services, it is found that there is a strong relationship between the financial literacy and the behavior towards the financial services.
A financial education program brought out significant effect on the demand for bank accounts. Small introduction of subsidies brought out great demand. The study showed that subsidies are two and a half time more effective than the financial literacy education. This is consistent with the common practice of US banks, which offer cash gifts and incentives for opening a new bank account.
The study results also suggest that demand in financial services is much more easily attained by reducing the price for financial services, promoting low technological solutions such as mobile banking. A cautiously designed and target focused financial literacy program is more cost effective than taking large scale effort; serve as a valuable complement in bringing such a financial reform.
January 18th, 2013
In merchant services, the scope for merchant banking is wide and far-flung and involved in the following:
1. Management of customers’ securities
2. Management of portfolios
3. Management of projects, their counseling and appraisal
4. Management of underwriting of shares and debentures
5. Avoiding obstacles in the syndication of loans
6. Management of interest and dividends
Globalization of the national economy has made the whole economy open and has more multinationals in this era of open financial services. More private players are also offering financial services along with the public and government operators. They are more innovative and different from earlier offers. Financial markets are being re-defined, re-invented and reconfigured on a continuous basis.
It has been a tradition in our country to offer mass banking products. Financial institutions are re-designing products/services aiming to provide global solutions. Technology has also played a major role in the re-structuring of financial markets. It is easy for anybody to transfer funds by the simple click of a Mouse. Telephone banking is another concept which would have been simply incredible a few years back. What is welcome is that governments are designing their policies to pay heed to these advances made.
December 26th, 2012
Most of the people find their home as the largest investment and the largest debt.
If you can do some extra money, you could pay off your mortgage early. Here there are 4 ways to pay off a mortgage early. Even a little more regular payment would save you more time and money.
1. Just Round up the monthly payments. Instead of paying the exact monthly installment, do the round up payment amount. Check that extra payment goes to the deduction of principal amount.
2. Make bi-weekly payments: Biweekly payments take advantage of a payment schedule based on weeks. Paying half of the mortgage payment every two weeks, make 26 payments in a year, roughly 13 mortgage payment instead of 12 and so reduces 6 years in the 30 year mortgage term.
3. Refinance your mortgage term to a short duration
Avoid the risk of long term repayment, the borrowers can acquire long term mortgage loan, but make payments equivalent to shorter term, which reduces payment duration and interest also. Be sure, the mortgage does not suffer prepayment penalty.
4. Pay a large amount for principal annually. If you get an annual bonus for your job or any substantial amount, put that amount to mortgage payment, which will reduce the number of years.
A little of discipline with planned organization and follow one or 4 of the above said simple ways is sure to reduce the mortgage years.
November 17th, 2012
INVESTING FOR SAVING TAXES:
It is generally felt that this is a once-a-year affair best dealt with by a friendly financial management guru. My friends, it is not as simple as that. One stands to lose good money if one is not careful. For example, money can be saved by itemizing deductible expenses such as health insurance, charitable donations and if independently employed, a host of business expenses — telephone bills, travel, entertainment, paying an assistant, petrol and driver among a number of others. One has to be careful about the quantum of tax payable, to pare it to the minimum because one will be happy in the feeling that any excess tax inadvertently paid will be refunded. But, the refund will be accompanied by a minimum government rate of interest only while the same amount, if invested in a savings bank will fetch a better rate.
It is always felt that a savings bank account is the least remunerative and attractive mode of investment because of the low interest accrued. But, it is unbeatable as far as is reckoned safely. One however, has to choose a bank which does not insist on a steep minimum balance — for which a dreadfully minimal interest is paid — but, choose a bank with reasonable minimum balance demands. Government-owned banks are best in this regard.
PAYING DOWN DEBT:
It is important to close all extra credit cards or loans because one will need two of them at most. It is most important that credit card or loan repayments are paid within the stipulated date as credit card and loaning organizations have huge rates of interest, if not paid on time.
October 5th, 2012
One has to always focus on maintaining multiple sources of income. In a way it always ensures that our bank accounts have sufficient balance. Besides we need not be astrologers to predict our future economical crisis. We need to plan our budget for every month and execute the same. Planning and execution go hand in hand.
We need act wise in making decisions as the legend goes on that it’s the smart workers who earn a lot more than the hard workers. Who doesn’t like to be rich and happy? Opportunities are better realized when they are leaving us, let that not be the case in our life always look for opportunities to save money. Differentiate between investment and expenditure.
Above all the most valuable money tips for all income levels works only if we tend to save for the retirement from the day one. No matter what we do if we don’t keep a check on our temptations and miscellaneous expenses planning and budgeting may not work much.
September 22nd, 2012
This article is about ‘the reasons behind the denial of loan’. There are several types of loans among home loans, gold loans, educational loans, agriculture loans and vehicle loans are the loans which are widely used in India.
One of the main reasons behind the loan rejection is worst background. During the background check, the ability of the applicant to repay the loan is checked and considered as a major constraint. If the concerned authority was not satisfied with the background check, eventually, the loan will be denied.
In case of gold loan, the quality of the ornaments will be considered as a major constraint. The quality of the gold will be checked according to the standards, by the appraiser. If the quality of the gold is below those standards, then the loan is liable to rejection.
In case of home loans, the possibilities for loan rejection are very less, unless the correct documents of the land are produced. If there are any signs of fake documents, then the loan will be rejected and the applicant may subject to civil actions by the government as, producing fake documents is a punishable offence.
And finally, It is very easy to get educational loans in India. But when the students are unable to perform well in the exams, the loan will get denied automatically and the students will be on their own for paying fee.
August 15th, 2012
Gold is an asset and must-have in the portfolio of any individual’s investment. You should not avoid investing in gold if you would like to have returns in the long term and stay above the inflation level. Just now, in April, the gold has declined very steeply, and it is one of the unexpected biggest falls since 1980. Gold has enjoyed a steady price increase over the recent years and now this is a wake-up call for all the investors.
Gold with bonds was considered as a safe haven for many investors and for governments to get rid of inflation threat and to escape from the economic volatility globally.
However, there are also drawbacks. There is no return. Just you can hope that someone will pay you higher price when you go for selling the gold. And it also depends upon the way you store the metal.
What is the future of the gold? Will the countries invest in more gold? Will the investors exit from the gold investment due to global economic growth? Does Gold suitable for long term investment?
It is certain that Gold will not slow down in the news at any time. It is exciting to follow the twist and turns over the past few months. Anything may change at any time, indeed now, it is the time for the investors to pay attention to the gold metal once again.