Wednesday, April 22, 2015

How to Build a Complete Financial Portfolio

Chasing your desired lifestyle is something that is attainable with the right investment knowledge. Learn exactly how to build a financial portfolio.

Tips for Building a Complete Financial Portfolio
For most every one of us, there are hopes and dreams that drive us. These include where we want to live, what attire we wear and how we choose to invest our cash. For many folks, the true costs of attaining that type of lifestyle are difficult to ascertain. Fortunately, there are several methods that can be used to empower action by building a financial portfolio. The question that needs to be asked is what comprises a good financial portfolio? In short, the answer is a 6-month emergency supply of cash, a well-stocked retirement account, zero debt and a broad range of investments across the financial spectrum.

Planning is Paramount
Getting started is a breeze. It requires a handful of resources in a pen and a piece of paper. First start off by listing all the assets that you currently own such as liquid cash, CDs, retirement accounts, cars, bonds, stocks and mutual funds. Next up, list all of your liabilities – long-term loans, short-term loans, credit card debts and so on. All liabilities should be listed since the best way to accurately create a complete financial portfolio is with all relevant information. Your balance sheet will list total assets and total liabilities, and compiling a financial portfolio can take a significant amount of time.

Fire Up Your 401k
For the most part, companies will match all of your contributions to your 401k account. The longer your tenure at the company, the greater the matching contributions will be. 401k accounts can grow at a tax deferred rate for many years (20, 30 or 40 years) and this can translate into millions of dollars.

Pay Down Credit Card Debt
High interest credit card debt is a burden that can kill an investment portfolio. Funds can be diverted from investment accounts and mutual funds to the reduction of debt on your credit cards. The maximum payments should be made on the cards with the highest interest rates, while minimum balances should be paid on the other cards.

6-Month Emergency Cash Reserves
Homeowners are best served with a 6-month cash reserve for emergency purposes. This allows for coverage of all exigencies such as medical, home repairs, student loans, fixed payments, and unemployment related issues.

Purchase Roth IRAs
For American investors, Roth IRAs are ideal for individuals with an annual income of $150,000 (married couples) or $95,000 (singles). The benefit of funding a Roth IRA is that you can withdraw your funds anytime you want at no cost. At age 59.5, the withdrawals are tax-free. Further, you can use Roth IRAs to buy stocks and mutual funds. And you can use your Roth IRA funds to enjoy zero-penalty medical insurance premiums if you have been unemployed for 3 months or more.

Making a Down Payment on a Home
Making a down payment on a property is an effective way to move away from an expense item to transforming something into equity. All interest-related payments are tax deductible and there is a capital gains tax exemption of $500k for married couples and $250k for single couples. Homes can be purchased with a 20% down payment and a 3% - 4% annual gain.

Author’s Bio: Brett Chatz is a graduate of the University of South Africa, and holds a Bachelor of Commerce degree, with Economics and Strategic management as his major subjects. Nowadays Brett contributes from his vast expertise for the globally renowned spread betting and CFD trading company – Intertrader.
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Thursday, April 16, 2015

Three Simple Strategies That Will Help You Build Substantive Wealth

These days, many individuals are interested in building substantive wealth for themselves. Whether you're attempting to accumulate wealth to pay off loans, put your child through college, or retire well, it's important to note that you can realize your vision. To get you started on the path to developing the type of economic freedom and power that will improve your quality of life, consider implementing the following three simple strategies:

1. Study Financially Successful People.

One great way for you to start building a strong financial future is to study financially successful people. This will help you in numerous ways. First, it will function as motivation as you see that everyone who is now rich did not start their life journey in a wealthy place. Additionally, studying the lives and ideas of wealthy people will empower you with knowledge regarding the systematic steps and strategies they took to start accruing assets and capital. Once you start the process of studying financially successful people, consider an individual such as Robert Rosenkranz. Rosenkranz is currently the CEO of Delphi Financial Group, and he has developed extensive financial wisdom that you can learn from to start building your own capital. Additionally, Rosenkranz is a successful photographer and is a member of the Visiting Committee for the Department of Photography at The Metropolitan Museum of Art.

2. Invest.

Another strategy that you can implement to start building financial wealth is investing. This method can prove very efficacious because it empowers you to develop a stream of passive income once you learn how to make prudent decisions in this venue. If you are unfamiliar with the world of investing, it can be helpful to take several classes and/or hire a professional financial adviser who can provide you with sound counsel regarding how to make economically prudent investment decisions.

3. Develop Multiple Streams Of Income.

One of the things that you may notice as you begin to study the lives of financially successful people is that they tend to develop multiple streams of income. This is an important and advantageous strategy because it empowers you to continue earning money from one venue even if another well dries up. There are infinitely many ways that you can develop an additional stream of income, including but not limited to investing, creating a blog, participating in money markets, and selling clothes on eBay.


If you're serious about building a strong financial future for yourself, you should know that there are numerous ways that you can turn your vision into a reality. By implementing some or all of the financial strategies outlined above, you will likely find that your money starts to grow

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