STOCKS VS. SHARES: WHAT’S THE DIFFERENCE?
TYPES OF STOCKS: BY OWNERSHIP...
--------------Financial Literacy 101 AT:
FRUITAL INVESTMENT GROUP..
Prepare for market volatility by investing in mush secure assets. Smart investors must start investing smarter. BY: VISIONONE HOLDING COMPANY - 
Stock market volatility can be financially damaging for investors, especially as you near retirement. You could move your investments into a savings account, treasury securities etc. But have you seen interest rates lately?
Reasons To Love Equities …
Equities haven’t been the most lovable asset class lately but there are reasons to love them despite these prickly times.
The first reason to love equities in rising rate times is that they have gained significantly. Since 1971, the S&P 500 (TR) has gained about 20% on average in rising rate periods, has gained 8 of 9 times and has gained nearly 40% twice with less than a 4% loss for its worst rising.
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If there is accelerating growth and inflation, like now, rising interest rates can result in appreciating assets, which is the second reason to love equities in this rising rate time.
Since the rising rates are happening in a profitable economy with strong growth forecasts and increasing dividend payouts (with an extra boost from the income tax reduction,)
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The third reason to love equities in rising rate environments is that on average for every 100 basis point increase, every single sector, size and style gains. Small-caps led, gaining 7.3% on average for every 100 basis point rate increase, followed by mid-caps that gained 5.9% and large-caps that gained 2.5%.
The growth acceleration that cancels the negative equity duration is the same growth that propels small-caps so much, putting them in a leading spot to rise with interest rates – especially since monetary policy is not too tight so that rising interest rates don’t hinder the borrowing by small companies too much.
Also, look to the sectors reporting strong profits and paying high dividends to perform in this rising rate environment.
Nurses have been voted by Buyheremarket Enterprise - buyheremarket.blogspot.com the most ethical and honest profession and the world.
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TYPES OF STOCKS: BY OWNERSHIP
-------------- Financial Literacy...
Looking for financial literacy basics? Learn how to manage money with our financial literacy guide.
Financially literate individuals use financial knowledge to make better financial decisions. From everyday spending to long-term financial planning, effective money management means using money to further your personal goals.
The first step towards realizing your financial goals is creating a realistic budget.
A budget is simply a spending plan that is based on your expenses and income. A written plan helps you stay on track, day to day and month to month, for meeting your financial goals.
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- Investing Success 101: If You Have More Than $1,000 in Your Saving/Checking Account, Make These Moves.Investing Success For A Better Retirement.----------------Congrats! You’re on the right path. Now it’s time to think about letting money working for you.Do you want to buy a big price tag item someday?Just Invest Today?Take control of your finances to go to the next level?We’ve got some ideas for you:Invest in Real Estate. Real estate stocks, real estate funds, real estate investment trust { REIT'S } You can get started with a minimum investment of just $500..Real estate has traditionally been one of the most sought-after asset classes for professional investors1 — now it’s available to you.Smarter diversificationNow you can diversify outside of the public markets with private real estate, allowing you to reduce risk and improve stability.With Flexible Investment Minimums---------------Knowledge Financial Group was Built to help smart investors invest smarter, wiser.---------------------------INVEST IN BLUE CHIP STOCKS......Investors in blue chip stocks are generally assured of receiving regular dividend payments and having their portfolios protected against inflation.Most investors understand that blue-chip stocks have stable earnings. During an economic downturn, investors may turn to these perceived "safe havens" because of their steady nature.----------------------INVEST IN INDEX FUNDS....When you buy an index fund, you get a diversified selection of securities in one easy, low-cost investment. Some index funds provide exposure to thousands of securities in a single fund.----------------------Index Funds: How to Invest and Best Funds.....Index funds are a low-fee, no-fuss way to invest. It might be the smartest and easiest investment you ever make.1. Pick which index2. Select which index fund3. Decide where to buyIndex funds are investments made up of stocks that mirror the companies and performance of a market index, such as the S&P 500. Index funds are passively managed and have lower fees than actively managed funds, and often generate higher investment returns.----------------Pick which indexIndex mutual funds track various indexes. The Standard & Poor’s 500 index is one of the best-known indexes because the 500 companies it tracks include large, well-known U.S.-based businesses representing a wide range of industries.But the S&P 500 isn’t the only index in town.----------------Company size and capitalization. Index funds that track small, medium-sized or large companies (also known as small-, mid- or large-cap indexes).Geography. These funds focus on stocks that trade on foreign exchanges or a combination of international exchanges.Business sector or industry. Funds that focus on consumer goods, technology, health-related businesses, for example.Asset type. Funds that track domestic and foreign bonds, commodities, cash.Market opportunities. Emerging markets or other nascent but growing sectors for investment.Despite the array of choices, you may need to invest in only one.--------------------WARNING: The investing information provided on this page is for educational purposes only...----------------------CREDIT RESTORATION... How to Build Credit? How to Repair Your Credit? How to Upgrade Your Credit Score? www.visionairebiz.blogspot.comHow to Establish Credit When You Have No Credit History?--------------Pay all your existing loans diligently. Payment history is the most important aspect of your credit score, so pay close attention to your existing debt. Make sure to submit all your payments in full and on time to maintain a good payment history.----------Installment loans can give your scores a lift. If you don't have a long credit history, an installment loan, which you pay back through set monthly payments, could help you build your score.-------------Have your monthly bills added to your credit report. While you may have a long history of paying bills on time, things like your cellphone and utility bills won't automatically help you build your credit score. www.buyheremarket.blogspot.com--------------Ask someone with established and good credit to help you get a loan or to add you as an authorized user to one of their existing credit card accounts.Doing this will allow you to have your first account listed in your credit report, allowing you to build a positive payment history. Over time, your payment history and experience with this account will help you build a score of your own. wwwfacebook.com/.buyheremarket------------Types of CreditCredit accounts come in many forms, but when it comes to your credit reports and scores, there are three major types of credit that you will encounter.Revolving credit: Revolving credit accounts have a set credit limit that you can draw upon, pay back and draw upon again. Credit cards are the most popular form of revolving credits, followed by lines of credit.Installment credit: Installment credit is debt you borrow and pay back in fixed monthly installments. This includes personal loans, student loans, auto loans and mortgages.Service credit: Service credit is the type of account you have with anyone who provides you with a service and bills you monthly. Your utility and cellphone bills are examples of service credit accounts. These bills can help increase your FICO® Score powered by Experian when you use....On the other end of the spectrum, your account could be sent to a debt collector if you miss payments. If a collection account is opened in your name, this could appear on your credit report and negatively impact your score. www.fruitalinvestmet.blogspot.
com --------------Important Tips to Improve Credit This Year...Whether you're feeling confident or anxious about your finances heading into, your credit score will be a key contributor to whether you'll be able to meet your goals.Good credit means having a FICO® Score☉ of 670 or higher, and the closer your score is to the maximum of 850, the better. That will give you access to the most favorable, least expensive loan and credit card options. www.facebook.com/knowledgefinancial ----------Set Up Automatic Bill PaymentsThe best way to avoid missing a student loan or other monthly loan or credit card payment is to put your bills on autopay. Make sure you have enough money in your checking account to cover each bill to avoid an overdraft. www.knowledgefinancial.blogspot.com ------------Pay Down BalancesThe second most crucial component in your credit score is how much revolving debt you're carrying compared with your total available credit.Make it a goal to reduce any high-interest credit card debt first, since that likely costs you more money in interest than, say, an auto loan or federal student loan does. Decreasing your credit card balances also shows potential lenders that you're responsible with credit. www.facebook.com/knowledgefinancialgroup -------------Handle Debt in CollectionsIf you currently have an unpaid debt that's gone to collections, consider negotiating it down or disputing the debt if you think it's an error. A debt in collections is likely more than three months past due.-----------Seek Out a Secured Credit CardAnother option for building credit is to get a secured credit card. It requires a cash deposit, typically around $200, which becomes your credit limit (you may be able to provide a larger deposit for a higher credit line). You can then use the credit card as you would any other, and the deposit protects the issuer from the possibility that you won't pay off your balance.--------------Join an Account as an Authorized UserYou can also improve credit by joining a trusted family member's or friend's credit card account as an authorized user. You'll be able to use the card to make purchases, and the card's payment history will show up on your credit report. www.knowledgefinancialgroup.blogspot.com ===================================INVEST IN TAX LIEN CERTIFICATES, TAX DEEDS..Tax Lien Investing: What You Need To Know...What Is A Tax Lien?Tax lien investing is a type of real estate investing where individuals purchase tax lien certificates.These certificates are created when local governments place liens on people’s property due to unpaid property taxes.There are 28 states that currently allow for the sale of tax lien certificates. And considering there are $21 billion of delinquent property taxes each year, it’s a booming business.It’s important to clarify that tax liens are different from mortgage liens.Mortgage lien gives your lender a claim to your property until you pay back your mortgage loan.A tax lien gives the government or owner of the tax lien certificate claim to the property.-----------------------How Can I Start Investing In Tax Liens?Have you considered investing in real estate? Tax lien investing is an indirect way of real estate investing. Rather than buying properties, you’re buying tax lien certificates with the hope of a return later.Considering investing in tax liens? The first place to start is to determine what type of property you want to bid on. Are you interested in single-family homes or commercial properties? It’s important to do your research ahead of time.Once you’ve decided to enter a tax lien auction, contact your local tax revenue office to learn about upcoming auctions and receive information about the property liens up for bid.The most important step of the process is researching each property. It’s important to understand the property value and current state of the property. Make sure you know all of the payment requirements and deadlines before bidding. Finally, make sure you fully understand what’s involved in the foreclosure process, since it may come to that.-----------------------How Does Tax Lien Investing Work?Tax lien investing is quite different from the traditional stock market or bond investing you might be used to, so it’s important to understand what you’re getting yourself into.1. The Local Municipality Creates A Tax Lien CertificateLocal governments charge property taxes to help fund government programs and services. If a homeowner fails to pay their property tax bill, the local government places a lien and creates a tax lien certificate. This certificate includes information such as the amount of tax due, as well as any interest or penalties.If the homeowner still doesn’t pay their tax bill (with interest), then the government has the right to foreclose on the home.2. The Tax Lien Certificate Is Put Up For AuctionIn 28 states, the government can sell tax lien certificates to private investors, which allows them to recoup their losses more quickly. This sale usually happens at a tax lien auction, where the certificate goes to the best bidder.To find tax lien investing opportunities near you, contact your local tax revenue office. They’ll have information on local tax lien auctions and can tell you what’s required to participate. Keep in mind that not all states allow for the sale of tax lien certificates, so this may not be an option near you.----------------3. Investors Bid On The Tax Lien Certificate---------------------Depending on the auction, bids may be based on either the cash amount someone is willing to pay for the certificate or the interest rate they’re willing to accept. In the case of cash offers, a certificate goes to the highest bidder. In the case of interest rate, it goes to the lowest bidder.Keep in mind that the lower the interest rate you bid on a tax lien certificate, the lower the profit you could potentially receive. Bidding wars on tax liens can drive the interest rate – and therefore the profit – down.---------------4. Winning Investor Takes Control Of The PropertyThe winning bidder of a tax lien auction takes ownership of the tax lien certificate. This doesn’t technically give them ownership of the property.But it gives them the right to take ownership of the property through foreclosure or be paid back when the homeowner eventually pays their tax bill.-----------------------5. Investor Pays The Amount Of Taxes OwedWhen you win a tax lien auction, you’re immediately responsible for paying the tax bill, including any interest or fees owed. Then, the homeowner has a certain period of time before the redemption deadline, by which time they must pay the new investor or risk foreclosure.6. Repayment Or ForeclosureWhen you purchase a tax lien certificate, there are two potential outcomes: either the homeowner will pay their property taxes, or they won’t.If the homeowner pays their property taxes, then you make back your initial investment, plus the interest rate you bid at the auction.================INVEST IN ETF'S = EXCHANGE TRADED FUNDS...How to Invest in ETFs?
How to start investing in ETFs
- Open a brokerage account.
- Choose your first ETFs.
- Let your ETFs do the hard work for you.
What is an ETF?
An exchange-traded fund, or ETF, allows investors to buy many stocks or bonds at once. Investors buy shares of ETFs, and the money is used to invest according to a certain objective. For example, if you buy an S&P 500 ETF, your money will be invested in the 500 companies in that index.
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ETFs vs. mutual funds
One common question is how ETFs differ from mutual funds since the basic principle is the same.
The key difference between these two types of investment vehicles is how you buy and sell them. Mutual funds are priced once per day, and you typically invest a set dollar amount. Mutual funds can be purchased through a brokerage or directly from the issuer, but the key point is that the transaction is not instantaneous.
On the other hand, ETFs trade just like stocks on major exchanges such as the NYSE and Nasdaq. Instead of investing a set dollar amount, you choose how many shares you want to purchase. Because they trade like stocks, ETF prices continuously fluctuate throughout the trading day, and you can buy shares of ETFs whenever the stock market is open.Choose Your ETF Investing Goals and Timeline
------------Before you start investing in exchange traded funds, decide on the financial goals you’d like to achieve. How you intend to use the returns from your ETF investing.Here’s how to decide how much of the four main types of ETFs you should include in your asset allocation:
- Bond ETFs. When you purchase a bond ETF, you’re investing in hundreds of bonds at once. Bond exchange traded funds—also referred to as fixed-income ETFs—are less volatile than stock funds, meaning their value remains relatively consistent and may see modest gains over time. This makes them a good option if you have a shorter investment timeline or would like to add stability to your portfolio.
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- Stock ETFs. Generally offering more risk than bond funds but greater returns, stock ETFs make sense when you’re investing for long-term goals, such as retirement. If you are decades away from your financial goals, your portfolio should be mostly in stocks to give your money the best chance to grow.
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- International ETFs. Investing in international stocks and bonds adds even greater diversification to your portfolio. International ETFs give you easy exposure to companies based outside of the United States as well as forex, or currency trading. According to Vanguard, international ETFs should make up no more than 30% of your bond investments and 40% of your stock investments.
---------------------With that in mind, here’s a list of ETFs, and a brief description of what each invests in, for beginners who are just starting to build their portfolios:
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What is an ETF's expense ratio?
An ETF's expense ratio indicates how much of your investment in a fund will be deducted annually as fees. A fund's expense ratio equals the fund's operating expenses divided by the average assets of the fund
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Welcome to our Web site, where you will find a wealth of information in the form of newsletter articles, calculators, and research reports.
We hope your visit will help you understand the opportunities and potential rewards that are available when you take a proactive approach to your personal financial situation. We have created this Web site to help you gain a better understanding of the financial concepts behind insurance, investing, retirement, estate planning, and wealth preservation.
Most important, we hope you see the value of working with skilled professionals to pursue your financial goals.
We’re here to help educate you about the basic concepts of financial management; to help you learn more about who we are; and to give you fast, easy access to market performance data. We hope you take advantage of this resource and visit us often.
Be sure to add our site to your list of "favorites" in your Internet browser. We frequently update our information, and we wouldn’t want you to miss any developments in the area of personal finance.
This material is intended to provide educational information regarding the features and mechanics of the product and is intended for use with the general public. It should not be considered, and does not constitute, personalized investment advice.
For many, "financial protection" means life insurance. For others, it's protecting retirement assets from market volatility, taxes and inflation. But what about unexpected health-related expenses? Or funeral planning?
- ==========Obtion contract is a right not an obligation.A future contract is an obligation you must perform.Call option gives the investor the right to buy a stock or stock index at a given price and time.A put option gives the right to sell a stock or stock index at a given price and time.====================Zero coupon bon paid at maturityConvertible bonds have possibility to convert to commom stocks--------------------------Investor's knowledge about security fraude that can include:Manipulation stock pricesMisleading investorsInsider's trading--------------------Common mistakes investors must avoid...1. Not having a plan or philosophy2. Have an idea where you're going and how you are going to get there.3. Not thinking about time orizon, and risk tolerance4. Not having enough information5. Not checking on quality advice you're getting6. Investing money that shouldd put aside like emergency fund7. Be optimistic at the top and pessimistic at the botton8. Buying on the basis of rumors, fake news, emotion9. Do not attach sentimental value to any stocks becuase the stocks do not know if you love them10. Attaching too much to low price penny stocks in expectation of big returnsLow price are there for a reason11. Not knowing the different between investing and speculating12. Investing money you don't own
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=================='New Investor's Complete Guide to Everyone
How to Get Started with Brokers, Brokerage
Accounts, and Brokerage Firms ''..= LEARN MORE HERE...Investment Accounts: Brokerage Account - Managed And Margin Account (knowledgefinancialgroup.com) ==========================THE STOCK MARKET
A place where investors can buy and sell stocks of all kind...LEARN MORE HERE = Stock Market Knowledge Info At Knowledge Financial Group---------------------------------------------- HERE IN THIS PAGE, LEARN BOUT:Preferred Stocks vs. Common Stocks . CLICK ON THE LINK.-----------------------HERE IN THIS PAGE, LEARN BOUT: MUTUAL FUNDS...Mutual Funds: What are mutual funds-DIFFERENT TYPES OF FUNDS... CLICK ON THE LINK..----------------Investment Tools and Resources...LEARNING CENTER.. LEARNING VIDEOS..-------------------------------------------- LEARN ABOUT INVEST SEMINAR...== Investment Seminar - Webinar- Training Videos / Financial Education (knowledgefinancialgroup.com) ==------------------------------------- ETFs Vs Index Funds:INDEX FUND, Index Stocks: ETF's. What You Need to Know About Trading and Investing in Leveraged ETFs..LEARN MORE HERE... Exchange Traded Fund / Index Fund | Stoks Index Guide| Knowledge (knowledgefinancialgroup.com)== -------------------------Investment Seminars: What You Need to Know?LEARN MORE HERE... Investment Seminar - Webinar- Training Videos / Financial Education (knowledgefinancialgroup.com)= ----------------PORTFOLIO: What is a Portfolio ?=============--------------IMPORTANT SOCIAL MEDIAL PAGES AND LINKS...Knowledge Financial Group Is The Ultimate Guide To Financial Independence And The Pathway To EnjoyingThe Freedom That Comes With It.THIS PAGE IS RICH WITH INFORMATION AND VIDEOS...------------SOCIAL MEDIA PAGES WITH EXCELLENT INFORMATION..VISIT THIS FACEBOOK PAGE: https://www.facebook.com/visiononeholding ------------------------------Invest With Knowledge And Enjoy The Fruits Of Your Investment With Pride.VISIT THIS PAGE: https://www.facebook.com/zonebusiness -------------------------------- =============================Types of financial markets...LEARN MUCH MORE HERE:----------------------------Here You CAN Learn About: Fixed-Income Investments and types of fixed income...---------------------THIS IS AN EXCELLENT BLOG... http://knowledgefinancial.blogspot. com/ Financial Knowledge - Financial Literacy And Financial Education's Blog. THIS HAS GORGEOUS ARTICLES, AND WONDERFUL LINKS... WWW.KNOWLEDGEFINANCIAL.BLOGSPOT. COM ---------------------------------------------- =============My finance: How to trade stocks for a living?= CLICK ON THE LINKWhat is a 'Credit Default Swap - CDS'?What is a 'Derivative? = LEARN MORE HERE...---------------Market advice: Learn about Hedge Funds...Knowledge Center: Learn about... Preferred Stock, Common Stock, Buyer's Market, Seller's Market, etc.= CKICK ON THE LINK... Investment Knowledge Center And Hedge Fund Info By Anthony Jeanty (knowledgefinancialgroup.com)=------------------------Academy: Here, learn about banking positions... / What Is an Equity Fund?Click on the link: Personal Finance, Banking Jobs - Femkonsa Capital Investment (knowledgefinancialgroup.com)=---------------------Investing: Here, learn about... Sophisticated investors and Accredited Investors.also Institutional Investor...= Learn about:The 7 New Rules of Financial Security = Click on the link...= ------------------------------- '' Here, learn about: Banking Fees People Can Avoid '''' Learn about: Investment risk - simple rules to follow =Learn about: Living Trust Versus a Will =--------------------------Economic: Understanding Credit... = Understand, Financial Market -- Understanding,Types of financial markets = LEARN MORE HERE...=-----------------------= THE RULES OF SUCCESS := LEARN MORE ABOUT Exchange-Traded Funds (ETF) http://www.knowledgefinancialgroup.com/ rulesofsuccess.html ------------------------------- Ivestment: ''Sufficient Knowledge To Live Comfortable'' = CLICK ON THE LINK=-----------------------------RETIREMENT PLANNING: HERE, LEARN ABOUT... IRA / INDIVIDUAL RETIREMENT ACCOUNT.=----------------'' THE ULTIMATE RETIREMENT GUIDE; HOW TO RETIRE EARLY AND RETIRE REACH. =====================Everything Entrepreneurs - Investors - Traders - Business Oriented People Need To Know...
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Reasons I Invest in Index Funds…
The vast majority of my portfolio is invested in traditional low-cost, broadly-diversified index mutual funds and their exchange traded fund (ETF) equivalents..
Top Ten Reasons to Index
# 1 Better Performance
This is the main reason I use index funds as the major building blocks in my portfolio and the main thing I look at for those minor portions of the portfolio where I consider doing something different from indexing…
Buying individual stocks (or bonds) introduces uncompensated risk, a risk that you are not compensated adequately for taking.
This is the risk of a company going bankrupt or a borrower defaulting or being downgraded.
This is when an individual security goes down in value when the overall market is going up and it happens all the time to people who buy individual securities.
It doesn’t happen to me though, because I invest in mutual funds. Mutual funds give you broad diversification, pooled costs, daily liquidity, and professional management all for a very low cost.
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# 2 Less Time-Consuming
Another important reason I invest in index funds is that it takes dramatically less time to invest in this manner. While I have to spend additional time on my own portfolio to direct significant ongoing contributions.
When you invest in index funds you don’t have to spend any time at all researching stocks or following companies.
You don’t watch CNBC. You don’t read Forbes or The Wall Street Journal. You don’t have to, because it isn’t going to change anything you do.
Nor do you want to, because once you realize all that information is completely unactionable, you see just how boring it is to pour through when you could be doing something else
Here’s another issue. Most stock pickers or mutual fund pickers don’t subtract the value of their time from their portfolio. For a high-earning professional, that cost is hardly insignificant. In fact, it may be your highest investing cost.
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# 3 Less Risky
Not only do you get to avoid taking uncompensated risk with individual securities, but you also get to avoid manager risk. This is the risk that your manager is stupid, makes a mistake, or retires. “But Warren Buffett is brilliant!” Yes, but he’s also mortal, just like every other money manager out there.
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# 4 Lower Cost
Costs matter, and over the long run, they matter a lot. The main reason index funds outperform actively managed mutual funds is that they have dramatically lower costs. You avoid mutual funds loads and 12b-1 fees.
Your expense ratio is likely to be only 1/10th that of an actively managed fund (0.02-0.2% versus 0.5-2%.) There are hidden costs as well- commissions and bid-ask spreads that come from the higher turnover most actively managed funds have.
# 5 More Tax-efficient
An index fund portfolio is generally much more tax-efficient than an actively managed portfolio. The turnover is lower, so there are fewer capital gains distributions, particularly with a broadly diversified index fund, such as the total market funds. The only time these funds have turnover is when there is an Initial Public Offering (no capital gain distribution) or when a company gets delisted from the exchange (again, no capital gain distribution.) Theoretically, the turnover ought to be 0%.
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# 7 Wide Availability…
401(k), our individual 401(k)s, our Health Savings Account, our Roth IRAs, our children’s 529s, our children’s UGMAs, our children’s Roth IRAs, and our taxable account.
It is a component of the portfolio in our partnership defined benefit plan too. Even my old 401(k), the TSP, has a similar fund.
It’s as universal as it comes. So no need to find a different mutual fund for every account you invest in.
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# 8 Capture Market Returns
l love that index funds guarantee me the market return. If the market goes up 8% one year, I got 8%. The S&P 500 index is up 1% today? So’s my fund. No worries about tracking error. Beating the market is very tough, and most who try fail (and fail big). Of those who succeed, they usually only do so minimally.
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- How to Invest In Real Estate without Having to Buy Houses, No Mortgage?
WWW.FACEBOOK.COM/
Real estate is a very lucrative asset classes and should be a component of every well-diversified investment portfolio.
Real estate investments offer capital gains and investment income while having a low correlation with the traditional asset classes stocks and bonds.
That makes real estate an excellent alternative asset class for portfolio diversification, but also aids in boosting your portfolio returns.
Nonetheless, many small investors stay clear of real estate as an investment because of the need to take out a mortgage on an investment property and then
having to deal with tenants and property maintenance.
Nowadays, however, if you want to invest in real estate but you don't want to have .
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Real Estate Related Stocks == WWW.TWITTER.COM/
You can receive exposure to real estate by holding real estate related stocks in your investment portfolio. Real estate related stocks are stocks of large
companies that engage in real estate related business..
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REITs --= WWW.KNOWLEDGEFINANCIAL.
REITs; Real Estate Investment Trust are another great way to gain exposure to the real estate sector. REITs (real estate
investments trusts) are companies that own investment properties. They are listed on the stock exchange and shares in REITS can be bought and sold just
like stocks. REITs traditionally hold a range of real estate including apartments, offices, shopping malls, warehouses, etc.
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Real Estate Funds
Real estate funds are mutual funds that invest in REITs, real estate related stocks and in properties directly. They are an excellent way for investors to hold a
diversified portfolio of real estate investments without the need for a large amount of capital to get started.
The difference between REITs and real estate mutual funds is that real estate funds invest in REITs, real estate related stocks and in property directly, while
REITs will only hold direct property investments. Hence, you receive more diversification with Real Estate Funds.
--------------- WWW.KNOWLED GEFINANCIAL GROUP - KNOWLEDGEFINANCIALGROUP.COM
Real Estate Crowdfunding
Real estate crowdfunding is a new innovative way to invest in real estate that has emerged in recent years. Crowdfunding refers to funding large projects
using small contributions by a large number of individuals, usually through the use of online platforms.
In the U.S., there are several real estate crowdfunding platforms, such as Fundrise and RealtyShares for example, which offer small investors to gain
exposure to real estate investments using the concept of crowdfunding.
Nowadays, there are enough possibilities to gain investment exposure to the real estate sector without having to purchase costly physical properties. REITS,
real estate stocks and funds and real estate crowdfunding make it possible. ==
WWW.FACEBOOK.COM/
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# 10 Minimize Regret
I owned Apple before it skyrocketed. I got in on the ground floor. Same with every other high-flying stock out there.
Sure, I own lots of losers too, but I never have to worry about missing out on the meteoric rise of a stock.
That helps me control the most important thing in my portfolio- my own behavior.
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# 1 Eliminate Uncompensated Risk
This is one of the easiest to do, and probably the only one that adds on no additional risk at all. There is no sense whatsoever in taking on risk that you are not paid to take on.
Two risks you shouldn’t expect to be paid to take on include manager risk (i.e. investing in actively managed mutual funds) and individual security risk.
# 2 Decrease Taxes
Having an excellent tax advisor / CPA’s
There is very little risk involved in this step too. Most high-income professionals I meet aren’t maximizing their use of tax-protected accounts like 401(k)s, cash balance plans, Backdoor Roth IRAs, and HSAs.
They also know precious little about investing tax-efficiently in a taxable account. Becoming smarter about taxes is a great way to boost returns, but there can be additional risk when you decrease your taxes.
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# 3. Decrease the Cost of Advice / Broker’s Costs…
Way too many physician investors are paying too much for their financial advice. That’s not even considering the fact that many are getting bad advice despite spending a lot of money on it.
Decreasing the cost of your advice by negotiating a lower rate with your advisor, moving to a lower-cost advisor, or learning to manage your own portfolio and becoming your own financial planner decreases your investment costs, and thus boosts your after-fee returns.
There is some risk there too, of course. Firing a good advisor and becoming your own advisor without learning what you need to know to do that effectively could be “penny-wise but pound foolish”
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# 4 Increase Stock:Bond Ratio – Increase your real estate portfolio…
Stocks have higher expected returns than bonds over the long run, primarily because the risk is higher. So the more of your money that you put into stocks (and similarly risky assets) the higher your expected returns, long-term.
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# 7 Add Alternative Asset Classes and Accredited Investments
Ideally, you want to fill your portfolio with assets that all have high expected returns but very low correlation with each other. So when you add an asset class, look for something with low correlation to the rest of your portfolio.
That said, a pile of manure has low correlation to your stocks and bonds. If the investment doesn’t also offer a decent rate of risk-adjusted return, take a pass on it.
The most common investment added is real estate, which enjoys similarly high returns to equities, but fairly low correlation.
In addition, physicians and other high-income professionals, by virtue of being accredited investors, have access to a whole slew of investments not offered to those with lower net worths and incomes.
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# 8 Add Sweat Equity
Another way to boost returns is to put some work in, I’m talking about putting labor/knowledge/expertise
That business might be an investment like a rental property down the street, or it could be an outpatient surgical center, imaging center, or free-standing ED. It might also be a website you purchased.
Real estate advocates often brag about their high returns; however, part of their high return often comes from the fact that they’ve created value through hard work. Nothing wrong with that–it’s a great way to boost returns.
Investing basic 101 – Methods, Techniques, Strategies…
This one seems so obvious when you say it like that, but it is an incredibly common thing that people do. “I didn’t know that investment could do that.”
“I didn’t know there was a surrender fee.” I didn’t really understand how that worked.”
“I didn’t understand the tax consequences of that investment.” Every day I run into somebody who has purchased something they didn’t understand, and it isn’t always whole life insurance.
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Limit Speculation
Investments that don’t generate income are speculative and should make up a very limited if any, part of your portfolio. The classic speculative investment is empty land.
You know, a real estate investment that not only doesn’t provide any immediate income but actually has expenses like Maintenance fees, insurance and property taxes.
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Higher Risk is a Necessary But Not Sufficient Condition For Higher Returns
Lots of people have heard the old adage that higher risk = higher returns. While there may be a correlation there, it certainly isn’t always true. Some risk isn’t compensated. There are plenty of risky investments out there with low, no, or even negative expected returns. Don’t buy those.
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Invest When You Get the Money…
Timing the market is hard. It’s so hard that I’m confident far more money has been lost trying to time it than has been made successfully timing it. Obviously buying low and selling high is ideal. But it’s incredibly hard.
The next best thing- buying all the time, however, is very easy. Successful investors buy all the time. You earn money at your job, you carve a portion of it out to invest, and you invest it. Right then.
If you happened to buy high? No big deal. Because you did the same thing last month, last year, and last decade. And you’ll do the same thing next month, next year, and next decade. Eventually, you’ll have bought both low and high and in the long run you’ll be rich.
Time in the market matters more than timing the market. There are lots of people out there advocating a “Dollar Cost Average” (DCA) approach to investing a lump sum. But guess what? Every day you leave your money invested it is just like you lump summed in that day
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Don’t Catch a Falling Knife
While we’re on that subject, remember that just because something went down a whole bunch, doesn’t mean it will go back up any time soon, and vice versa.
There is a certain amount of momentum in investing, but it’s awfully hard to get it right. See above section about “investing when you get the money.”
It’s wonderful to own a good investment, but the difference between a good investment and a bad investment is often just the price you pay for it.
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Past Performance Does Not Guarantee Future Performance
Your natural tendency as a human being is to look at what has done well in the past and buy it. When it comes to picking stocks, mutual funds, or asset classes, that is usually a recipe for underperformance. This is such a truism that mutual funds are required by law to put it in their paperwork.
In fact, there is a phenomenon often called “mean reversion” which suggests that asset classes that have done poorly in the recent past are likely to do better in the near future
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Stop Playing When You’ve Won the Game….
Investing is a single player game. The object of the game is to reach your own investing goals. You don’t need to beat the market or your brother in law or that guy at the water cooler. Ideally, you take on only enough risk to have the best possible chance to reach your goals, and no more.
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Rebalance Your Portfolio Every Now and Then
Intermediate investors are fixated on rebalancing. They come up with mantras like, “It isn’t buy and hold, it’s buy, hold, and rebalance.” Rebalancing doesn’t make that much of a difference, and it often hurts portfolio performance.
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Stay the Course in Bulls and Bears…
Beginner investors don’t stay the course in a bear market. Intermediate investors don’t stay the course in a bull market. Successful investors do both
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Don’t Mix Investing and Insurance
Some products are made to be bought, but many are made to be sold. A large quantity of those are sold by insurance companies and their representatives. The agent will tell you it isn’t an investment. Believe him, and walk away. No to whole Life Insurance…. Investment should be investment and insurance should be insurance.
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Use Retirement Accounts… Don’t be scared to prepare in advance your retirement portfolio..
When given the choice, invest preferentially in tax-protected and asset-protected accounts. Hint, that choice is a lot more common than most people realize.
An HSA is your best investing account. You can still use a Roth IRA after you start making the big bucks. You can have more than one 401(k). Don’t fear the Age 59 1/2 rule, there are lots of exceptions to it, including early retirement.
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Don’t Let the Tax Tail Wag the Investment Dog
Don’t be so tax paranoid that you forget the goal isn’t to pay the least amount possible in taxes, but to have the most after paying them.
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Costs Compound Just Like Returns…
Cost matters, and it matters a lot, especially over long time periods. Every beginner investor knows about the magic of compound interest.
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The Investor Matters More Than the Investment….
The most important determinant of your investing success is your own behavior. Are you saving enough? Can you stick with your investing plan? Can you limit yourself to a reasonable withdrawal rate in retirement? Can you avoid performance chasing, greed, and fear? That all matters a whole lot more than a few basis points in fees or extra return.
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SOCIAL SECURITY; THE ULTIMATE RETIREMENT GUIDE. HOW DOES
SOCIAL SECURITY WORK? https://www.knowledgefinancialgroup.com/ RETIREMENT.html What Are Self-Directed IRAs? How Self-Directed IRAs Let you
Invest in Almost Anything? https://knowledgefinancialgroup.com/ FRAGRANCES IRA / INDIVIDUAL RETIREMENT ACCOUNT. What is an IRA? And what does it matter? https://www.
knowledgefinancialgroup.com/ IRA Retirement Planning Guide = Retirement can be a time to explore new possibilities or to slow down and fully enjoy the life. https://www.
knowledgefinancialgroup.com/ retirementplanning.html ----- THE ULTIMATE RETIREMENT GUIDE; HOW TO RETIRE EARLY AND RETIRE REACH.
WHAT ARE 401K, ROTH 401K, INDIVIDUAL 401K, 403B, 457 PLAN, THRIFT SAVINGS PLAN.
What is a SEP IRA? What is a SIMPLE IRA? https://www.knowledgefinancialgroup.com/ PENSION-PLANS.htm
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Exchange Traded Funds (ETFs)
An ETF is similar to an index mutual fund in that it also follows an index (it’s not actively managed). However, unlike an index fund, an ETF trades like common stock on an exchange and can be bought or sold throughout the day.
As a consequence, ETFs have a number of options not present in mutual funds, including the ability to purchase shares on margin or make short sales, whether for speculation or hedging.
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United States Market Indexes. These ETFs track such indexes as the S&P 500, Dow Jones, Nasdaq-100, or CRSP US Total Market.
•Foreign Market Indexes. Some ETFs track other countries’ stock indexes such as the Japanese Nikkei Index or the MSCI Germany Index.
•Sectors and Industries. ETFs are available that track a particular industry or sector of the economy such as pharmaceuticals (PowerShares Dynamic Pharmaceuticals ETF – PJP) or biotechnology (iShares NASDAQ Biotechnology Index ETF – IBB). Other sectors include consumer goods, utilities, and high tech.
•Commodities. These ETFs track the price of specific commodities such as gold (GLD) or oil (USO).
•Foreign Currencies. Some ETFs track a specific currency against the U.S. dollar, such as the Japanese yen (FXY), or a basket of currencies against the dollar, such as the eight currency markets of Asia (AYT).
•Market Capitalization. These ETFs include indexes based upon large, medium, and small capitalizations, such as the Vanguard Total Stock Market ETF (VTI), SPDR MidCap Trust Series I (MDY), and PowerShares Fundamental Pure Small Growth Portfolio (PXSG).
•Bonds. Choices include international, government, or corporate bond-based ETFs, and include funds like the SPDR Capital Long Credit Bond ETF (LWC).
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Superior Market Performance of Index Funds & ETFs
While the goal of every investor and portfolio manager has been to beat the market (in other words, have investment returns greater than the broad market averages), the reality is that few, if any, can consistently deliver exceptional gains. Economists and investment professionals recognize the futility of such efforts and recommend the purchase and holding of index funds.
According to experts, “Most institutional and individual investors will find the best way to own common stock is through an index fund that charges minimal fees. Those following this path are sure to beat the net result [after fees and expenses] delivered by the great majority of investment professionals.”
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Reasons to Invest in ETFs Over Index Mutual Funds
1. Investment Flexibility
ETFs come in a wide variety of categories, ranging from the broad U.S. market or global stock market, to a single asset category, such as individual commodities (gold, energy, agricultural) or industry sectors (small cap energy, metals and mining, homebuilders, alternative energy). Investors can even buy ETFs that represent the economy of a single country (such as Brazil, Germany, Canada, or Russia).
The availability of different (though related) ETF categories allows investors to “hedge” – using one investment to offset the risks of another.
For example, an investor holding a position in Apple, Google, or other high tech stocks who doesn’t want to sell his position – but is worried about a short-term pull-back – could short-sell a technology sector ETF to reduce his or her risk.
Reasons to own index funds
1. There is no reliable method of finding skilled fund managers. Short-term performance cannot be used to do so. Some studies I've read indicate it may take 20 years to mathematically separate manager skill from luck.
2.
3. Finding a fund that will outperform its benchmark index over the next 15 years is like trying to find the proverbial needle in the haystack.
2. According to Standard & Poor’s, in the 10 years ending June 30, 2015, 75% of actively managed domestic stock funds underperformed the S&P 1500 Total Market Index.
Additionally, 40% of actively managed equity funds available to investors on June 30, 2005, were no longer in existence 10 years later. So how can actively managed mutual funds be considered good stewards of shareholder money?
3. The turnover ratio of the average actively managed domestic stock fund exceeds 100%. This means that the average fund manager holds a stock for less than one year in a vain attempt to "beat the market," outperform competitors and attract new investors to the fund.
But frequent trading has its costs — assume a 1% increase in annual costs for a 100% turnover ratio. I'm a long-term investor, yet many fund managers are short-term traders. There's a big disconnect here.
4. Most actively managed funds underperform their benchmark index after costs are deducted. This has nothing to do with investing and everything to do with arithmetic:
•Index funds, by design, will earn the stock market's return before costs are deducted.
•Actively managed funds, as a group, will also earn the stock market's return before costs are deducted.
•All index funds and the average actively managed mutual fund will underperform the market by the amount of their expenses.
•Since index funds have lower expenses than actively managed funds, they will outperform the
5. I desire is to capture, as efficiently as possible, the growth of the global economy. The most cost-effective way to do this is to own a globally diversified portfolio of index funds.
6. Life is too short to become a stock-market addict. Watching the market every day will drive you crazy and won't increase your chances of outperforming market averages. If the pros can't do it, you don't have a prayer. In fact, the more you trade, the higher costs you'll incur, and the lower your returns will be. If that's your idea of a good time, have a nice day.
7. I like to know the precise asset allocation of my portfolio. Active managers have too much flexibility to chase returns and invest in assets that are not contained in their stated benchmark index. This "style drift" makes it difficult for fund shareholders to know exactly where their money is invested.
8. Mutual-fund companies offer to sell you last year's winners when they advertise funds with recent good performance. Past performance is an easy sell, but suffering from reversion to the mean isn't any fun. Chasing past performance will wear you out emotionally and devastate you financially.
9. The most often-cited reason that most actively manage funds underperform index funds is their higher expenses. There's another significant component to this underperformance. The best-performing stocks in a market index will have much higher returns than most stocks in the index.
The index's annual return depends heavily on these few stocks. Active managers must own a limited number of stocks from the index they seek to outperform.
Since the best performers are few in number, it's more likely that managers will select underperformers, not the few big winners. The probability that a fund will underperform is inversely proportional to the number of stocks in its portfolio.
10. The benefits of index investing are apparent to Warren Buffett who gave this advice in his 1997 letter to shareholders: "The best way to own common stocks is through an index fund that charges minimal fees. Those following this path are sure to beat the net results (after fees and expenses) delivered by the great majority of professionals."
If there ever comes the day when we define investment failure as earning less than what the stock market freely offers, there will be no excuse for not owning index funds.
Until then, clients of financial advisors who promote actively managed mutual funds will likely underperform a passive investment strategy that their advisors so often mock.
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STOCKS VS. SHARES: WHAT’S THE DIFFERENCE?
As traders and investors, we usually use the words stock and shares interchangeably, even without realizing these are not same. To be frank, there is very thin line of difference in between the two.
Not only the beginners but also the advanced traders are many times confused about these crucial terminologies In this article we will try to explain Stocks vs. Shares, the key difference between the two important stock market terms.
WHAT ARE STOCKS?
These are securities that the company issues when they intend to raise capital or funds to add to its growth or expansion. They offer ownership in exchange for money from investors. Stock is basically a cluster of shares. When an individual says they hold stocks, it could mean they hold a cumulative number of shares in a certain firm or several other firms.
TYPES OF STOCKS: BY OWNERSHIP
Stocks can be classified on a number of parameters like market cap, ownership, location, investment cycle, etc. For details you can explore Types of Stocks Every Investor Must Know.
Following are the different types of stocks based on ownership:
1. COMMON STOCK:
Under these, the holder has rights to dividend and voting rights during corporate decisions. However, they don’t get priority when it comes to liquidation.
2. PREFERRED STOCK:
Preferred stock holders receive priority for payments during liquidation over other members. They can be categorized into cumulative, non-cumulative, participating and convertible.
Now, let’s move further and understand the meaning of Shares. Of course, we’ll catch up with some of the similarities and dissimilarities between stocks and shares.
A share is unit of capital which has an underlying ownership clause added to it. In simple terms shares are units of ownership in a corporation. In technical terms, they are actually the smallest denomination of a stock.
TYPES OF SHARES:
Following are the different types of shares:
1. EQUITY SHARES:
These are the most common type of shares. You might have heard a lot about them! Equity shares provide its shareholders with voting rights. The dividend is variable and relies upon the availability of surplus capital or earnings or company policy.
2. PREFERENCE SHARES:
INTRADAY TRADING:
INTRADAY TRADING – WHO IS IT SUITABLE FOR?
Intraday Trading is the riskiest of the types of trading. It also requires the highest amount of skill
SWING TRADING:
Swing traders wish to hold stocks for more than one day to capture additional momentum in the price of stocks. They try to predict short term fluctuations overnight. The prime difference between day traders and swing traders is the time frame of holding the stock. Most of the technical traders you might have known come under this category.
SWING TRADING – WHO IS IT SUITABLE FOR?
. POSITIONAL TRADING:
In positional trading, the stock holding time period is quite longer stretching over few months to years. Positional traders anticipate big price movements over longer period in expectation of a large gain. Their trading decisions are based on technical as well as fundamental analysis to some extent. So, any minor short term fluctuations are just ignored in this type of stock trading style.
POSITIONAL TRADING – WHO IS IT SUITABLE FOR?
Positional trading is a form of trading that requires very little monitoring or adjustment. This is best suited for professionals or people who are not willing to devote too much time to trading yet want decent returns. Positional trading is not very risky as the time period is longer than swing trading
TECHNICAL TRADING:
The different trading activities revolve around technical market analysis. Most of the traders utilise their technical analysis skills to determine price variations in Indian stock market. The stock prices are meant to be based upon demand and supply forces. In technical analysis, the view of the market is most crucial in determining stock prices.
However, you need to possess an in-depth knowledge of stocks and fairly good researching capability to become a technical trader.
TECHNICAL TRADING – WHO IS IT SUITABLE FOR?
5. FUNDAMENTAL TRADING:
In fundamental trading the focus is on company specific events. The fundamentalists are basically long term investors who believe in “buy and hold” strategy. The stock prices are predicted keeping in mind the company, industry and economic statistics. The intrinsic value of shares is determined by carefully analysing financial statements, earnings, growth and the management quality.
FUNDAMENTAL TRADING – WHO IS IT SUITABLE FOR?
Fundamental trading is borderline investing, which means that performing fundamental trading is basically investing in a stock. The parameters of fundamental investing is similar to Value investing where an individual buys a shares of a company assuming that it is cheap at that given time and expects it to grow over time. There is no time limit in such trades.
SOCIAL SECURITY; THE ULTIMATE RETIREMENT GUIDE. HOW DOES
SOCIAL SECURITY WORK? https://www.knowledgefinancialgroup.com/ RETIREMENT.html What Are Self-Directed IRAs? How Self-Directed IRAs Let you
Invest in Almost Anything? https://knowledgefinancialgroup.com/ FRAGRANCES IRA / INDIVIDUAL RETIREMENT ACCOUNT. What is an IRA? And what does it matter? https://www.
knowledgefinancialgroup.com/ IRA Retirement Planning Guide = Retirement can be a time to explore new possibilities or to slow down and fully enjoy the life. https://www.
knowledgefinancialgroup.com/ retirementplanning.html ----- THE ULTIMATE RETIREMENT GUIDE; HOW TO RETIRE EARLY AND RETIRE REACH.
WHAT ARE 401K, ROTH 401K, INDIVIDUAL 401K, 403B, 457 PLAN, THRIFT SAVINGS PLAN.
What is a SEP IRA? What is a SIMPLE IRA? https://www.knowledgefinancialgroup.com/ PENSION-PLANS.htm
FUNCTIONS OF STOCK EXCHANGE:
- A stock exchange allows buying and selling of securities
- Stabilizes and standardizes investments
- Companies can raise fund by listing their securities
- Investors and traders have a convenient place to trade securities
- Facilitates fund transfer between individuals and companies
- A regulated market place safeguarding the interest of different parties
You may also wish to learn Stock Market Basics for Beginners
LARGEST STOCK EXCHANGES IN THE WORLD: TOP 10
Let me take you through the top 10 Stock Exchange platforms. (Please note the date and value figures as based on market cap data extracted as on March 2020)
1. NEW YORK STOCK EXCHANGE (NYSE)
This was established in 1792 which officially became New York Stock & Exchange Board in 1817 and ever since has been growing tremendously and is now an inter-continental market for all traders and companies. This is ranked as the biggest stock exchange in the world.
NEW YORK STOCK EXCHANGE: KEY FACTS
- With 2,400 listed companies and market capitalization of 25.53 trillion U.S. Dollars, it’s the world’s largest and most powerful stock exchange in the world.
- As per the latest statistics, approximately 40% of the world’s stock market capitalization is parked in NYSE.
- Trading normally takes either electronically or through the traditional floor method.
- The business hours of operations are from 9.30 am to 4 pm (EST) and are closed on all American national holidays.
- Dow Jones is the best-preferred index for the evaluation stock position.
2. NATIONAL ASSOCIATION OF SECURITIES DEALERS AUTOMATED QUOTATIONS (NASDAQ)
National Association of Securities Dealers Automated Quotations or NASDAQ was formed by a group of stockbrokers in 1971.
NASDAQ: KEY FACTS
- The platform, when introduced, was stated as ahead of time as it never supported only electronic mode alone and no other way of trading since the beginning
- Currently, considering its market capitalization value of 11.23 trillion USD, the platforms rank second globally.
- With companies like Apple, Tesla, Facebook, Amazon listed onto the forum, it has gained heavy popularity.
- NASDAQ100 is the most common index used to evaluate the performance of financial instruments.
3. TOKYO STOCK EXCHANGE (TSE)
The Tokyo Stock Exchange (TSE) was established in 1878. Owing to the Second World War the platform was discontinued between 1945 to 1949 and had resumed its operation in late 1949.
TOKYO STOCK EXCHANGE (TSE): KEY FACTS
- JSE was formed after the merger in between the Osaka Securities Stock Exchange and the TSE in 2013 and is now the largest stock exchange forum in Japan.
- With 3,575 companies listed and total market capitalization value ranging to $5.1 trillion USD, this is ranked as third in the best stock exchanges listing.
- Nikkei 225 is the benchmark index to check the values of financial instruments traded.
4. SHANGHAI STOCK EXCHANGE (SSE)
It is one of the independent stock exchanges in China. The same was formed in 1866 but was closed down during the Chinese revolution of 1949 and was re-established as of 1990.
SHANGHAI STOCK EXCHANGE: KEY FACTS
- It’s a non-profit organization.
- With 1000+ listed companies the total market value ranges up to 4.67 trillion USD and is the fourth largest stock exchange platform.
HONG KONG STOCK EXCHANGE
It was founded in 1891 with the collaboration of stockbrokers in Hong Kong.
HONG KONG STOCK EXCHANGE: KEY FACTS
- With the total market valuation ranges to 4.23 trillion USD, it is the third-largest Stock Exchange in Asia and fifth position when ranked globally.
- The total number of companies listed is about 1955.
- The platform has recently shifted from physical trading to electronic trading modes in 2017.
6. EURONEXT:
It was established in 2000 to encompass the economic development of European countries.
EURONEXT STOCK EXCHANGE: KEY FACTS
- This Stock exchange operated in EURO.
- It is a PAN-European stock exchange with a presence in France, Belgium, Ireland, and Portugal with its headquarters situated in Amsterdam.
- With 1300 listed company and market cap at 3.67 trillion USD that makes it is ranked sixth in the largest stock exchanges list.
- Euronext 100 is the most common index used to evaluate the performance of financial instruments.
7. SHENZHEN STOCK EXCHANGE
It was founded in 1987 but it started its function in 1990.
SHENZEN STOCK EXCHANGE: KEY FACTS
- With a the total market value of 3.28 trillion USD, it stands at the seventh position in the counting.
- It is an independent organization operating in China but needs to compliant for all regulation listed under China Securities Regulatory Commission (CSRC).
- As the major companies listed are Chinese, thus the trading takes place in Chinese “yuan”.
8. LONDON STOCK EXCHANGE (LSE)
It is the oldest stock exchanged and was established in 1698. It was the largest platform across nations until the end of World War I.
LONDON STOCK EXCHANGE: KEY FACTS
- With 3000 companies across 70 countries spread listed and market value which stands at 2.92 trillion USD, it is now ranked as the eighth largest stock exchange platform globally and the largest in Europe.
- FTSE 250, the FTSE Small Cap and the FTSE All-Share are common evaluation index used.
9. TORONTO STOCK EXCHANGE (TMX)
It’s the largest stock exchange in Canada and was founded back in 1852.
TORONTO STOCK EXCHANGE: KEY FACTS
- TSX merged with the Montreal Stock Exchange in 2009 and renamed from TSX Group to TMX since then.
- With total 2,207 companies listed and market capital value of 1.75 trillion USD, it is positioned as 9th place globally.
10. BOMBAY STOCK EXCHANGE
It was the first stock exchange in Asia, established in 1875.
BOMBAY STOCK EXCHANGE: KEY FACTS
- It has the highest number of companies listed with 5,749 in total.
- With the market capital value of 1.51 trillion USD, it is stationed at the tenth position in the global ranking.
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Important Things to Consider When Buying Real Estate..
Our Recommendations for a successful purchase
Be Prepared. This includes several steps:
1. Know why you are buying. Is it for a primary residence, second home or as an investment to rent out, hold and sell in the future. We would be happy to discuss these options with you.
2. Get familiar with properties that would work for you. Neighborhoods, values, rental rates (if for investment) are all important. We can help you with this.
3. Decide how you will take title. Either in your name, you and your spouse or significant other, or a Corporation / LLC. Consult you CPA or financial advisor. We can recommend attorneys or accountants to help you decide.
4. If paying cash, be sure to have access to a recent bank/investment account statement or a letter from your bank or financial advisor showing more funds than necessary to purchase the property.
5. If you want to do financing get pre-approved. We can recommend someone for this too.
6. Have email access as we will use, in most cases, electronic signing of offers to purchase, counter offers and closing statements.
7. Be prepared to wire funds for the deposit (in many cases for cash sales 10% of the purchase price is required).
Upon being fully prepared be ready to act. You can set up customized listing search on this site KNOWLEDGEFINANCIALGROUP.COM that will immediately notify you of any new properties coming on the market that match your parameters or if one that matches your parameters has a price reduction. If you prefer, we can set this up for at no charge AT: WWW.TIMOUN2000.COM
When a property looks like a winner to you it’s time to go see it and if it looks good, make an offer. If you are not in the area and you are serious we can go to the property and take several additional photos showing everything including any faults and email them to you so you can decide to make the offer.
Also, in the state of Florida a purchaser of a resale condominium has the right to rescind the contract for any reason within 3 business days of getting the Condominium Documents and Financials and get their deposit refunded.
TAXES AND MONEY - INCOME TAX DEDUCTIONS TO KNOW ABOUT ...
Estate Taxes, Death Taxes, Gift Taxes: States With the Scariest Death Taxes...
Federal estate taxes are no longer a problem for all but the extremely wealthy
However, state estate taxes, which kick in for estates valued at only $1.5 million or less in several states, could take a big bite out of your legacy. Your home and retirement accounts will be counted when your estate is valued for tax purposes, and proceeds from your life insurance could be counted, too, depending on how the policy is owned and who gets the money
Fourteen states and the District of Columbia impose an estate tax, and six states impose an inheritance tax, which can force certain heirs to give up a portion of their inheritance. The good news is that a growing number of states are increasing their estate-tax exemptions in an effort to dissuade well-off retirees from moving to more tax-friendly jurisdictions.
State-by-State Guide to Taxes on Retirees
Our comprehensive guide to taxes on retirement income, property and purchases, as well as special tax breaks for seniors, in every state.
Click on any state in the map below for a detailed summary of taxes on retirement income, property and purchases, as well as special tax breaks for seniors. See more maps below, including the most tax-friendly and least tax-friendly states for retirees.
Compare up to Five States
See how selected states stack up on taxes that affect retirees. Hover over or click on any state in the map for the option to add the state to your compare list.
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States With No Income Tax
Washington Wyoming, Nevada, South Dakota, Akansas, Texas, Tennessee, Florida, New Hampshire.
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States With No State Sales Tax
Oregon, Montana , Akansas, New Hampshire, Delaware
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States With the Highest Top Income Tax Rate
Oregon, California, Minisota, Iowa, Vermont, New Yourk,
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States With Estate and/or Inheritance Taxes
Washington, Oregon, Nevada, Minisota, Iowa, Illinois, Kinteky, Pensilvania, New York, Vermont, Connecticut, Massassoset, Michigan, Meriland.
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States That Tax Social Security
Montana, Nevada, Minisota, Utah, Colorado, kansas, West Virginia, Connecticut, Vermont, Nebraska, New Mexico, North Dakota, Wyoming, Missouri
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Trust
What is a 'Trust Company'
A trust company is a legal entity that acts as a fiduciary, agent or trustee on behalf of a person or business entity for the purpose of administration, management and the eventual transfer of assets to a beneficial party. The entity acts as a custodian for trusts, estates, custodial arrangements, asset management, stock transfer, beneficial ownership registration and other related arrangements.
BREAKING DOWN 'Trust Company'
A trust company does not own the assets its customers assign to its management, but it may assume some legal obligation to take care of assets on behalf of other parties. A trust company or trust department is usually a division or an associated company of a commercial bank. Trusts and similar arrangements managed for eventual transfer are managed for profit, which may be taken out of the assets on an annual basis or upon transfer to the beneficial third party.
There are many trust companies available to the consumer, ranging in both sizes and fees. The larger companies provide more products and services, but may lack the personal touch of smaller institutions. Some of the larger trust companies are Northern Trust, Bessemer Trust and U.S. Trust. Fees are generally charged on a percentage of assets, ranging from 0.25% to 2.0%, depending on the size.
Trust Company Services
Trust companies offer a variety of services, with the most common being wealth management in the mode of becoming a fiduciary or agent. Trust companies offer asset management services such as bill pay, check writing and other features. Trust companies also offer brokerage services, with a wide array of investments available to the clients. Depending on the level of service needed, some companies can build financial plans for its clients for additional fees. Trust companies also offer a variety of estate-oriented services, such as guardianship, estate settlement and non-financial asset management.
Who Should Use a Trust Company?
A trust company is hired to act as a fiduciary for the client. Therefore, all the investment decisions are made by the trust company, which is acting in the best interest of its client. This is helpful for individuals who are not competent enough to make their own financial decisions. Clients who also don’t want or care to manage their day-to-day finances can also benefit from using a trust company.
Trust companies are also used when dealing with estate planning matters. A trust company can be left as a successor trustee for a trust when there are no financially responsible family members. Upon the death of the grantor, the trust company will become the new trustee and manage the assets according to the terms of the trust.
Trust companies are also good alternatives for preventing future family squabbles when it comes to dealing with estates. If dividing up the assets of an estate will cause family turmoil, a trust company can be used as a third party.
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About Us
Our primary focus is to build a fruitful and long-term relationships with our clients.
Wadalou TRUST Company
Serving as a trustee requires financial responsibility, accountability, investment knowledge, objectivity, and experience, all of which can be found at The Trust Company.
As an independent fiduciary, we have one loyalty – you. We can serve as a trustee, co-trustee, successor trustee, or as agent for the trustee. As agent, this partnership allows the named trustee to continue to serve in this role while The Trust Company manages the daily maintenance,
Trustee Responsibilities:
Trustees are generally responsible for the following:
•Abiding by the fiduciary standard – putting client’s best interest first
•Holding, securing, managing and investing trust assets
•Distributing trust income and/or principal to the beneficiaries
•Making tax decisions concerning the trust
•Reviewing and filing income tax returns on the trust
•Providing statements of account and communicating with beneficiaries
Executor’s Responsibilities:
•Abiding by the fiduciary standard – putting beneficiary’s interests first
•Marshaling assets and preparing an inventory of personal property, arranging appraisals and estate sales
•Working closely with your attorney and accountant to file court documents and tax returns
•Paying funeral expenses, taxes, outstanding bills, and expenses of administering the estate
•Collecting all debt owed to the decedent
•Liquidating, transferring or continuing the preservation of income-producing real estate and business interests during estate administration
•Special handling of artwork, collectibles, and antiques
•Making distributions and providing for the needs of the survivors in accordance with the provisions of the will
Trust Company, we can help you manage your finances so that you can achieve your goals — while at the same time helping you negotiate the financial barriers that inevitably arise in every stage of life. Managing your personal finances is ultimately your responsibility. However, you don’t have to do it alone.
Wealth Advisory and Planning Services:
•Set realistic financial and personal goals
•Assess your current financial health by examining your assets, liabilities, income, insurance, taxes, investments and estate plan
•Develop a realistic, comprehensive plan to meet your financial goals by addressing financial weaknesses and building on financial strengths
•Put your plan into action and monitor its progress
•Stay on track to meet changing goals, personal circumstances, stages of your life, products, markets and tax laws
Investing in Your 20s, 30s and 40s: Tips to Maximize Your Stock Market Returns…
By: Femkonsa Capital Investment And Also Certainly By: Visionone Holding Company
Anybody, no matter what his or her educational background, IQ, occupation, income, or assets, can make solid returns investing in stocks. To maximize your chances of stock market investment success, remember the following:
Before you invest in any individual stock, no matter how great a company you think it is, you need to understand the company’s line of business, strategies, competitors, financial statements, and P/E ratio versus the competition, among many other issues. Selecting and monitoring good companies take research, time, and discipline.
A. Don’t try to time the markets. Anticipating where the stock market and specific stocks are heading is next to impossible, especially over the short term. Economic factors, which are influenced by thousands of elements as well as human emotions, determine stock market prices. Be a regular buyer of stocks when prices are down and sell when prices are high.
B. Diversify your investments. Invest in the stocks of different-size companies in varying industries around the world. When assessing your investments’ performance, examine your whole portfolio at least once a year, and calculate your total return after expenses and trading fees.
C. Keep trading costs, management fees, and commissions to a minimum. These costs represent a big drain on your returns. If you invest through an individual broker or a financial advisor who earns a living on commissions, odds are that you’re paying more than you need to be.
D. Pay attention to taxes. Like commissions and fees, federal and state taxes are major investment expenses that you can minimize. Contribute most of your money to your tax-advantaged retirement accounts. You can invest your money outside retirement accounts, but keep an eye on taxes. Calculate your annual returns on an after-tax basis.
E. Remember, there is long term capital gain which is investment that last more than a year on which you pay less taxes. And then there is short term capital gain which is investment that last less than a year in which you pay more taxes on capital gains.
F. Broker conflicts: Some investors make the mistake of investing in individual stocks through a broker who earns commissions. The standard pitch of these firms and their brokers is that they maintain research departments that monitor and report on stocks. Their brokers use this research to tell you when to buy, sell, or hold. It sounds good in theory, but this system has significant problems. Many brokerage firms happen to be in another business that creates enormous conflicts of interest in producing objective company reviews. These investment firms also solicit companies to help them sell new stock and bond issues.
G. Short-term trading: Unfortunately (for themselves), some investors track their stock investments closely and believe that they need to sell after short holding periods — months, weeks, or even days. With the growth of Internet and computerized trading, such shortsightedness has taken a turn for the worse as more investors now engage in a foolish process known as day trading, in which they buy and sell a stock within the same day! Whether you hold a stock for only a few hours or a few months, you’re not investing; you’re gambling. Specifically, the numerous drawbacks to short-term trading include higher trading costs, more taxes and tax headaches, lower returns from being out of the market when it moves up.
H. Because the financial markets move on the financial realities of the economy and companies, as well as on people’s expectations and emotions (particularly fear and greed), you shouldn’t try to time the markets. Knowing when to buy and sell is much harder than you may think.
I. As a young as you may be, you’re in a position to take more risks because you’re investing for the long haul. However, you should be careful that you don’t get sucked into investing a lot of your money in aggressive investments that seem to be in a hyped state. Many people don’t become aware of an investment until it receives lots of attention. By the time everyone else talks about an investment, it’s often nearing or at its peak.
J. Simply buying today’s rising and analyst-recommended stocks often leads to future disappointment. If the company’s growth slows or the profits don’t materialize as expected, the underlying stock price can nosedive.
K. You don’t necessarily need to sell your current stock holdings if you see an investment market getting frothy and speculative. As long as you diversify your stocks worldwide and hold other investments, such as real estate and bonds, the stocks that you hold in one market need to be only a portion of your total holdings.
L. Psychologically, it’s easier for many folks to buy stocks after those stocks have had a huge increase in price. Just as you shouldn’t attempt to drive your car looking solely through your rearview mirror, basing investments solely on past performance usually leads novice investors into overpriced investments.
M. Timing the markets is difficult: You can never know how high is high and when it’s time to sell, and then how low is low and when it’s time to buy. And if you sell non-retirement-account investments at a profit, you end up sacrificing a lot of the profit to federal and state taxes. ====
Automatic Investment Plan (AIP)
What it is:
An automatic investment plan (AIP) is a strategy whereby an investor can arrange for funds to transfer into an investment account automatically on a regular basis.
Automatic Investments
Schedule regular, automatic transfers from your bank account to you automatic investments account.
One of the easiest and most popular ways to make investing a regular habit is to set up automatic investments.
Take control of your cash with regular money transfers
Set up monthly, quarterly, or semiannual investments into your brokerage account…
How it works (Example):
Let's assume you want to save money for a down payment on a house. You could A) attempt to set aside whatever money you have left at the end of the month, or B) implement an automatic investment plan into a savings account.
Here's how it works:
Each month, on the same day of the month, the bank deducts a predetermined amount of money from your checking account and deposits it into a savings account. That money then compounds over time.
Dividend reinvestment plans -- where investors use dividends to purchase more shares of the stock paying the dividends -- are one common type of automatic investment plan. Employees who contribute to their 401(k)s are also taking part in an automatic investment plan, whereby their employers deduct a specific amount from every paycheck and automatically deposit it into a retirement account.
Why it Matters:
Automatic investment plans can help investors maintain their discipline and accumulate thousands of dollars they otherwise may not have saved or invested. Through these plans, investors can save for retirement, fund college educations or a much-needed vacation.
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'Automatic Investment Plan - AIP'
An automatic investment plan is an investment program that allows investors to contribute funds to an investment account in regular intervals. Funds can be deducted from an individual’s paycheck or paid out from a bank account
Automatic Investment Plan - AIP'
An automatic investment plan is one of the best ways to save money. Numerous market mechanisms have been devised to help facilitate automatic investment plans. Investors can contribute through their employer by scheduling automatic deductions from their paycheck for investment in employer sponsored investment accounts
Employer Sponsored Automatic Investment Plans
Employers offer various options for automatic investing through their benefit programs. Investment options help to support both short-term and long-term investment goals for employees. The most common investment vehicle for employer sponsored automatic investing is a 401k. Employees can choose to automatically invest a percentage of their paycheck in an employer sponsored 401k. Many employers will often match a percentage of their employees’ automatic investment as part of their benefit program.
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Individuals also have a wide range of options to choose from in the investment market. Nearly every available investment account offering provides investors with the option to make automatic investments.
Some of the most common investment accounts for making automated investments include retirement accounts and brokerage accounts. Some retirement accounts offer incentives for investors to make automated investments such as Capital One Investments.
Ways to Invest in Real Estate Without Buying Property…
Real estate investing made easy.
With the invention of real estate investment trusts in the 60s, real estate ownership is a mouse-click away. REITs own income-producing real estate in various.
Reit’s - These investments are governed by the Securities and Exchange Commission, trade on major stock exchanges and pay regular dividends. In fact, REITs are required by law to pay out 90 percent of their income in dividends. Beyond REITs, there are numerous ways to own real estate, without buying a property.
Equity REITs
Buy an equity REIT in the same way you would buy a share of stock or an ETF. An equity REIT owns the asset. You can buy a diversified REIT that owns a smattering of properties across various sectors such as Vanguard’s REIT ETF (ticker: VNQ)
“REITs are my favorite way to invest in real estate as they solve real estate’s biggest drawback, liquidity,”
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Mortgage REITs
Mortgage REITs finance the income-producing real estate by either buying or originating mortgages and mortgage-backed securities. The mREIT owner then enjoys income from the interest on these investments. A smaller slice of the REIT pie, mortgage REITs make up less than 10 percent of the REIT market.
In the current economic environment, as interest rates rise, mortgage REITs might benefit from higher interest rates. Several mortgage REITs include Apartment Investment and Management Co. (AIV) and commercial mortgage REIT Capstead Mortgage Corp. (CMO). For investors, mREITs give you access to the mortgage market with the liquidity and transparency found in the stock market.
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Real Estate Mutual funds
Most REITs charge a commission at purchase and sale. That makes them expensive when used in dollar-cost averaging or for frequent purchases. If you prefer to invest regularly or are deploying money in a retirement 401(k) or 403(b), then you might take a look at real estate mutual funds. Real estate mutual funds typically invest in REITs of various flavors.
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Limited partnerships and private placement
Real estate private placements are direct ownership in a property or properties, typically as a limited partner. They are generally illiquid and have relatively high investment minimums and are attractive to investors with long-term investment horizons.
Real estate private placements and limited partnerships, for high net-worth individuals, take advantage of the illiquidity premium. Because they don’t trade on typical markets, they offer higher returns. Illiquidity is the price you pay for a crack at higher returns.
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Interval funds
Interval funds are a hybrid investment that offers a combination of liquid and illiquid real estate investments. Fund managers are free to use both public and private securities to build the real estate portfolio.
“The availability of these mutual funds has dramatically increased over the past few years, and they now offer investors additional asset classes that were historically unavailable to all but a few
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