Thursday, February 4, 2016

3 Things You are Not Doing Today that can impact your finances tomorrow

Murali, a 32 year old HR consultant, is worried about how his finances will shape up. His mind is often plagued with questions such as “will I have enough money to live my retirement years peacefully? how would I pay the fee for my child’s engineering degree? What would happen to my family if I am not there? Will they be able to sustain their living expenses in my absence?” Murli is not sure if his finances are on the right track and whether he is control of his future.

Murli’s questions can arise on anyone’s mind. While these concerns are very reasonable, what really matters is that how you address these concerns. You are already doing ‘X’ number of things to manage your finances, but perhaps you may not be doing some things (which you should do!) that can impact your finances tomorrow. Let’s take a look at these things.

1.   Not investing with a goal in mind
When you talk about the future, it usually referred in two timelines: immediate and distant. In the financial language, you can call these timelines as short - term (such as buying a car or renovating your home) and long – term (such as child’s marriage or your retirement). If you don’t classify your investment goals, according to the time horizon, you wouldn’t know how, where and how much to invest.

When you want to accumulate wealth (financial freedom) for the future, you need to start investing early and keep a long term perspective. More the number of years to invest, higher the corpus you would have.

2.   Not Diversifying the Investment Portfolio
In an online survey conducted by ET Wealth recently, 53% respondents admitted that have neither fixed their asset allocation nor follow it. Also, 15.7% respondents said that portfolio doesn’t need rebalancing. Now, if you are not doing asset allocation or rebalancing your portfolio every year, it's a financial slip up at your end. It could affect your financial security in the future.

Let’s say, you are a regular investor. You invest a substantial part of your savings at fixed intervals. But, if you don’t diversify your portfolio, then the chances are you are not going to benefit from the risk-return trade-off in the long run. Have you heard of the saying, “Don’t put all eggs in one basket?” The same logic applies to your investment too.  At the same time, you should also monitor your investments closely and make changes in the allocation as and when you deem necessary.

An investment instrument such as wealth plans from ICICI Prudential are a fine example of sensible asset allocation. These plans give you an opportunity to choose your own percentage of equity and debt funds to earn healthy market-lined returns. You also get the flexibility to switch from one fund to another based on your financial goals and market fluctuations. Additionally, you also get a life cover, which will take care of your insurance needs. Hence, it is advisable to have at least one wealth plan in your portfolio.

3.   Not Automating Your Investments

Surprised? Well, not setting up monthly standing instructions towards your investment could be a serious financial mistake on your part! Let’s take an example here. If you have taken a life insurance policy and decide to pay through a non – ECS mode of payment, you have to depend on manual or automated reminders to pay the premium. If you forget or delay the payment, not only your policy will lapse, but you will also have to pay a late or penalty fee. This may put a brake on your investment till the time you renew the policy again.

To avoid such a situation, it is advisable to go for automated standing instructions. This way, your investments will work like SIPs with multiple benefits. You start it and forget it, without worrying about payment reminders, policy lapse or non – payment charges. The deductions will happen automatically, thereby instilling financial discipline in you.

Your today is like a financial opportunity that you can encash tomorrow. Take advantage of these opportunities as much as you can in your present!
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Sunday, January 24, 2016

China’s Forex Fast-Track

The news agency Reuters recently reported that China is to boost risk controls and speed up the development of its foreign exchange market during 2016. The State Administration of Foreign Exchange (SAFE), posted information on its website detailing the proposals which also include the opening of China’s capital account and improvements to the management of its foreign exchange reserves.

The statement was posted after an internal meeting in Beijing that was attended by Pan Gongsheng, who is the newly appointed deputy governor of China's central bank and the party secretary for SAFE. The news came just as the yuan reached its lowest level compared to the dollar in five years, news that sent markets around the world into a panic for fear of competitive currency devaluations. China has also ordered some of its biggest banks to limit the purchase of the US dollar.  

The integration of China into the world economy has been led by its move to a private sector economy and the growth it has achieved from this has been a global phenomenon. Further policy change is in the making and will see more liberalisation of China’s Forex markets. Will this lead to continued growth for the Chinese economy?

China’s economy is growing at a slower rate now than it has seen in the past 25 years and the International Monetary Fund is predicting that over the next two years growth will slow further, falling from 6.9% in 2015 to 6.0% in 2017. China is pushing a move from an economy driven by exports and investment to one driven by consumption and services. However, some experts are arguing that this transition is being made too quickly and that a sustained focus on productivity is what is needed in order to sustain growth and that doing so would ensure a more stable move to the consumption and services economy they desire, over time.

When China sneezes, the rest of the world catches a cold, is a cliché that has been used time and again, but maybe now is a pertinent time to time to ask yourself, how will China’s changes to their foreign exchange regulations affect global trading and whether it is good for China, or not, is there an opportunity for you to fast-track some financial gain?

While pondering this, bear in mind the words of economist Tony Nash, who told the BBC; "China's growth in 2015 was equivalent to the size of the entire economy of Switzerland or Saudi Arabia.”

“That's not an easy feat and shows the magnitude of the accomplishment,"  Nash added.
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Wednesday, January 13, 2016

Luxurious Seattle Condos for Sale

Once you’ve decided you are ready to take the next step in buying Seattle condos for sale, it’s time to find the right team of realtors. Don’t look to just any realty group – you need a team you can trust and depend on.  The Stroupe Group offers over 20 years of experience in the Seattle real estate market. We specialize in the downtown market, but also work very closely with properties in the Seattle suburbs.

Each member of our highly respected team is dedicated to helping you along every step in the process purchasing your next investment. We’ll meet with you to discuss your requirements. We take the time to know you and your preferences. It’s easy to get started with our online form for submission – simply enter your name, your email, a phone number, the best time to reach you and your reason for inquiring.

We respect your time and your privacy. We’ll meet with you based on a time that meets your availability. Scheduling appointments or showings is quick and painless. Let us help you get started on your journey to the right property for you. Choose from Seattle condos for sale that are only within your budget and your requirements. Contact us now to set up your appointment and to get started!
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Thursday, January 7, 2016

Investing in People – Your most valuable resource

Give a man a job he loves, and he’ll never work again. An expression that’s as old as the hills, but still holds true today. Research by the University of Warwick has proven the idiom that a happy workforce is a productive one. When it comes to predicting any fluctuations within the share price of a company, a lot of interesting information can be gleaned from looking at employee satisfaction. If we are to look at Fortune Magazine’s list of 100 Best Companies to Work For, topping their poll is Internet Search Behemoth Google, who turns over an average of $60 Billion every year. Other recognisable names that fall into the top 100 include Twitter, American Express, Marriott International and KPMG.

By looking at this list what we see is that some of the world’s most profitable companies have some of the world’s happiest employees. It would therefore be prudent to have a look at what business owners can do to improve employee satisfaction as a means of improving profitability and share price. Gretchen Rubin as cited in believes that one factor that can create a satisfied employee is to give them more control. She states that taking steps as simple as allowing employees to customise their own workspace or considering their work-life balance. This lets employees know that their bosses care about them as individuals.

Opportunities for Development make up an important part of building satisfaction among employees. Having a clear path towards a better career is an excellent motivator and encourages people to do their job better. Their effort can be reciprocated with a possible promotion and a move up the ladder. Many retailers offer graduate programmes to their employees, but it is McDonalds who win in the game of offering employee prospects. Hamburger University was set up as a training centre to allow the many people employed by the fast food giant to expand their skill base. Today over 80,000 people have graduated onto positions within the company, more educated and committed than before. 
Another means of improving employee satisfaction make take the form of offering company perks. These can vary from simple things like a bonus system, flexibility with working hours or extended holidays, to highly desirable incentives such as offering a company car or comprehensive health insurance for their workforce. Not only will offering perks such as these increase the job satisfaction of your current employees, they will also go some way to encouraging the best talent to want to come and work for you. Overall it’s a win win situation!

Having read this article, you will now have a greater appreciation of how having happy employees really works for everyone. Several simple steps can be taken, but in terms of how much you are willing to invest in your employees, the sky’s the limit. Increasing satisfaction increases profit, which in turn increases the share price, which increases shareholder satisfaction, which should, overall, increase your own personal satisfaction! 
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Friday, December 25, 2015

Popular Forex Trading Strategies - Trend Following

What are Forex trading strategies?

Forex trading strategies are important for every Forex trader to become a profitable trader in the long run. A Forex strategy is a set of rules for Forex trading and helps in minimizing the effects of external factors on the trading of the Forex trader using the strategy.  It helps a trader to trade systematically and with discipline which is really beneficial in the long run and provides a path of success to the Forex trader. There are many types of Forex trading strategies popular in Forex world but we will discuss here the strategy of trend following here.

What is Trend following?

Trend following is a Forex strategy in which a trader seems to take the advantages of the long term movement of the prices. This Forex strategy takes the benefit of the trend in the market and tries to make the benefit from both types of movement of the market, whether up or down. Traders who adopt this technique do not aim at forecasting but they just jump into the trend and start riding on it.

Price an important concern

The first and most important concern of all Forex trading strategies trend is the price, and the same goes for this strategy. A trend trader needs to worry only about what the current market is doing and not what the market will do in future. The current price of the currencies and only the price element tells you about this and therefore it is of the primary concern.

Money management

Deciding how much to trade in the course of the current trend is a very decisive and important factor and therefore a trend trader has to be concerned with the money management technique. Some brokers will help you with this, for example, if you open a demo account for Forex trading at, you will get a lot of tools and extensive knowledge library.

Cutting losses should be the rule in trend trading and this implies that during the period of high volatile market you should reduce the size of the trades. During closing times, the positions are closed and trade size is cut. The main motive is to preserve the capital as much as you can and wait for strong and positive trends to appear.x

Benefits of trend trading

Trend following is one of the most popular Forex trading strategies in forex trading and it has many advantages. Most of the market returns are made only near 10 percent of the time and those happen when there is a clear and major trend in the place. Trend trading is widely followed due to its simplicity to identify the trade and many times you find yourself out of an imperfect strategy after you trade along a strong trend. That is why this is a common saying in Forex field- “Trend is your best friend”. Many traders therefore involve trend trading as a critical block of a complete trading plan they follow.
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Monday, December 21, 2015

How to choose the Right Investment Advisor

Choosing the right Investment advisor can be so discouraging with various advisors proving to be of experience in both quality and service rendering making it difficult to decide the best for you.
Getting the right advisor become more tasking. As no one wants to pass through the rigorous stress of the planning phases many times.

If you wish to get the right chose of an advisor at the first attempt, Here is how to ensure you get it.

1.   Define why you need advisor for: Before setting out for an advisor, Try to think of the need. Ask yourself the following questions about why you need the advisor for:

·         To help you outperform and advise you on your investment accounts.

·         To help you stick to personal finance plans or long term investing.

·         To help you device a means out of debt in order to meet your personal finance objectives.

·         To serve as an ad-hoc advisor when it comes to making financial decisions to include refinancing and investing.

When you have gotten answers to the above questions, you will be able to stream line the right advisor for you. Also companies like Openwork can help you find the best investment advisor

2.   Know what you want to pay for: Financial planning services are always charged on a flat fee basis while investment accounts normally operate in one of commission, fee based, or combining both.

A fee based financial planner would be preferable for a simple finance issue while an investment advisor or a broker will suit your investment. If you need someone that will oversee your financial life, then an advisor is to be considered to focus on full service provision.

A commission payment is achieved through trading with investment account. Your advisor gets commission from Mutual Fund Company for every mutual fund sale done. The fees are clouded which can lead to trading your account too often by some selfish advisors. On the other hand a fee based account involves charging of a flat percentage on assets for the management of account.

The advantage here is that you get to know how much your advisor is being compensated with since he gets the payment from your account makes everything to be transparent. Fee based is not good for an investment account while commission based account is preferable.

Keeping your account on commission bases is cleaner and cheaper because fee is generated only when something happens.  Since a trading account is wrapped into a fee based account, it might be better off with a fee based plan with no issue of an investment paying commission higher than the other.

3.   Get to understand the advisor approach: You need to know the advisor approach because an advisor investment approach tends to influence the kind of advice he/she will offer you. For example, the advisor views on debt, budgeting, will likely affect the advice he/she will give. Therefore you will need to take some time to understand the advisor approach if they make sense, seems weird or scary, how do you reason the opinion.

4.   Get to know the advisor personality: In conclusion, you want to know if you will enjoy and trust who you want to work with as some may prefer to have an advisor as a confidant while some prefer to operate formally. Others prefer an older person believing that they are more trustworthy to work while to some peers is their favorite.

Finding from different Investment advisors, to get the right advisor may be a difficult task. Following the above four steps will certainly help you get that advisor that fit your standard.

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