Finance

Things to do before investing

Friends, family, and readers always ask me that question. What do I need to do to start investing?
The answers to this question will be a little unparallel.

The same way stocks grows in value and pay nice dividend is the same way a business can also go bankrupt or cease paying dividends. When I mentioned to look for business with value and business that has been around for century doesn’t always guarantee that you are 100% safe from volatility. Look what happen to GE. I believe you should approach the market with caution and be vigilant. Don’t put all your eggs in one basket. In investment the terms you need to know is “diversify”.

It’s important to informed yourself, I’m not talking about the daily news. The daily news can impact things also but that should be the least thing you need to worry about because the market have a funny way of responding to daily activities. Do research about the business you want to invest in. Your hard earnings should be investing in valueable assets.

You don’t have to do it alone if you don’t want to there is a lot of Investment manager out there. Most of them have that saying “we do better when you do better”. It’s a way of telling you that they want you to make money so in return they can make their own profit. If you are not comfortable doing that you can also pick stocks base on valueable research.

One other thing to keep in mind is that the younger you are more aggressive you might be while someone that’s over 50 will want to be very conservative.

The next step is you must have the money to invest. It’s unwise to invest money that you will soon need. When the time comes the market might not be favorable to sale in your portfolio.
So make sure you have some kind of emergency fund which can cover all your bills for about 90 days. Lesson one in the Investment industry is to never ever borrow money to invest because in this game there is never guarantee. Also keep in unlike the banks the money you Invest are not FDIC insured! So words to the wise, make your investments count and invest wisely.

Finance

Limit Order

If you have been keeping up with me and blogs you will see In my previous article I talked about different types of Investments. This is a follow-up and I also will be answering some questions. Investing is a lot easier to manage than one thinks. With commitments and fancy technologies this days you can let AI (Artificial Intelligence) do all the hard push for you.

There are a few terms that you will probably only hear from people wearing suits on MSNBC or Bloomberg business. Your casual friends don’t use them. Well I’m here to tell that they are available to all us and there is a lot of advantage in them today I’m only going to shed light on limit orders which involves both buy and sell

According to investopidia: Limit Orders
A limit order is an order to buy or sell a stock for a specific price. For example, if you wanted to purchase shares of a $50 stock at $50 or less, you can set a limit order that won’t be filled unless the price you specified becomes available.

Similarly, you can set a limit order to sell a stock once a specific price is available. Imagine that you own stock worth $75 per share and you want to sell if the price gets to $80 per share. A limit order can be set at $80 that will only be filled at that price or better.

Now keep in mind they have the Pros and Cons.
A limit order offers the advantage of being assured the market entry or exit point is at least as good as the specified price. The key word here is certainty.

Disadvantages of Buy Limit Orders does not guarantee execution. Execution only occurs when the asset’s price trades down to the limit price and a sell order transacts with the buy limit order. The keys word here is not guarantee.

Yes you can start investing with as little as $100
And you don’t need to pay money to invest as of last year I believe Charles Schwab was the first to vanquished it. It’s always important to set up beneficiaries.To get away from negativity you don’t have to share your investments idea with people that are not in that circle.

People ask me that question consistently how do I know what and when to buy?
It’s simple I’m always in buying mood because I’m a dividend collector. But you can check within your brokerage for trending stocks and most movers from there you’ll see what others are doing.

I will answer 3 more questions next Friday
Until then invest with confidence and responsibly.

Finance

Type of Investments

To start investing one needs confidence and tolerance, most importantly you need to have goals. You’ll need to choose an investing firm that meant all the crucial things that you are looking for. There are many of firm out there and you will need to selective. Also research and decide what you want to invest on don’t rush the process. After selecting which investment firm you feel comfortable with, open an account that platform will be where you manage when to buy or sell.

According to wikipedia Stock, Equity and Share market: is the aggregation of buyers and sellers of stocks which represent ownership claims on businesses; these may include securities listed on a public stock exchange, as well as stock that is only traded privately, such as shares of private companies which are sold to investors through equity crowdfunding platforms. Investment in the stock market is most often done via stockbrokerages and electronic trading platforms. Investment is usually made with an investment strategy in mind.

Money Market Deposit

A money market account (MMA) or money market deposit account (MMDA) is a deposit account that pays interest based on current interest rates in the money markets. The interest rates paid are generally higher than those of savings accounts and transaction accounts; however, some banks will require higher minimum balances in money market accounts to avoid monthly fees and to earn interest.

Money market accounts should not be confused with money market funds, which are mutual funds that invest in money market securities.

Money market accounts are better than CDs if you’re looking for a more accessible account. … MMA rates are typically higher than basic savings accounts and short-term CD rates. CDs can have higher rates than a money market account, but those are often the long-term accounts from two years and upwards. And you won’t be able to touch your money without being fine before it comes to terms.
Interest on money market accounts is usually compounded daily and paid monthly.

Index Fund

An index fund is a mutual fund or exchange-traded fund (ETF) designed to follow certain preset rules so that the fund can track a specified basket of underlying investments. The main advantage of index funds for investors is they don’t require much time to manage as the investors don’t have to spend time analyzing various stocks or stock portfolios. Many investors also find it difficult to beat the performance of the S&P 500 Index due to their lack of experience/skill in investing.

ETFs are bought and sold throughout the day on stock exchanges while mutual funds are bought and sold based on their price at day’s end. An ETF holds assets such as stocks, bonds, currencies, and/or commodities such as gold bars, and generally operates with an arbitrage mechanism designed to keep it trading close to its net asset value, although deviations can occasionally occur.

Annuities

An annuity is a contract between you and an insurance company in which the company promises to make periodic payments to you, starting immediately or at some future time. You buy an annuity either with a single payment or a series of payments called premiums.

Some annuity contracts provide a way to save for retirement. Others can turn your savings into a stream of retirement income. Still others do both. If you use an annuity as a savings vehicle and the insurance company delays your pay-out to the future, you have a deferred annuity. If you use the annuity to create a source of retirement income and your payments start right away, you have an immediate annuity. 

*Stocks
*Bonds
*Investment Funds
*Bank Products
*Options
*Annuities
*Retirement
*Saving for Education
*Alternative and Complex Products
*Initial Coin Offerings and Cryptocurrencies
*Commodity Futures
*Security Futures
*Insurance