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2012年9月15日 星期六

Comparing A Money Market and a Certificate of Deposit


As investors, we all face common problems. Where can I find the best rate of return? What is a good stock to invest in? What do I do with my money in between investments? With the first two questions, limitless answers can apply. However, with the last question, there are two popular alternatives. A CD or money market account are both viable choices that should be investigated. But which one will give you the most bang for your buck?

CD's or certificates of deposit are basically like you giving the bank a loan. You give the bank a certain amount of money and they give you a certain amount of interest. The interest rate that you get is proportionate to how long the investment is. Before you ever deposit your money into a CD, you decide on how long the money will be invested. The longer you invest, the higher your interest rate will be. This is why older people are notorious for having many CD's because they simply want to keep the money they have at a reasonable interest rate.

CD's can range in time frames from a few weeks to years. It all depends on the investor. The bad thing about CD's is that you don't have access to your money. If you decide that you need to get your money out of a CD before it matures, you will probably have to pay a fine. So if you get a CD, your money is officially tied up.

The other popular choice is a money market account. This is basically like an investor's checking account. Whichever investment firm you have will take the balance from your money market account and invest it into mutual funds and other securities. With this form of investment, the rate of return is directly proportionate to how much money you have in the account. It is not linked to a certain time period as with a CD. This means that if you don't have very much money, you won't make any interest. The main benefit with these accounts is that you have access to the money at any time. Most financial institutions will give you a checkbook that you can use like you normally would. The bad thing is, many people will treat it as an actual checkbook instead of their investment money.

Whichever form of investment you choose, make sure it's the right one for you. They both have positives and negatives that you should consider, before making a choice.




Find the best CD Rates at http://www.gotalkmoney.com/





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張貼者： 於 晚上11:26 0 意見
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2012年9月14日 星期五

Finance Basics: Money Market Funds: Treasury Bill, Commercial Paper, Certificate of Deposit


Some Basic Financial Terms and Definitions

Credit Risk

Credit risk is the risk of default of a security. The higher the risk, the higher the yield of the security has to be to be attractive to investors.

Liquidity

Liquidity is measured according to how easily a security can be converted into cash.

Tax Status

The tax status of an investor matters when investing in securities. The higher the tax bracket of the investor, the more taxes need to be paid on the gains/yield of a security.

Term to Maturity

The term to maturity is a specified term of time (days, months, years) that a security needs to exist to mature.

Call Feature

The call feature is an option that allows the issuer of a bond to buy bonds before the maturity date back, at a specified price.

Conversion Feature

The convertibility clause allows investors to convert bonds into shares of common stock. This is beneficial if the market price of a bond decreases, because an investor will have an additional option of converting the bonds into a specified number of shares of common stock, rather than selling the bonds in the market.

Common Instruments of a Money Market Fund

Treasury Bills

Treasury bills are highly liquid, short-term securities issued by the government to borrow funds from investors. Treasury bills are typically sold through auctioning on a weekly basis; however treasury bills with a one year maturity term are issued monthly. The lowest amount of a treasury bill (par value) is $1000 and thereafter in multiples of $1000 and is sold at a discount rate of the par value whereas at the maturity of the treasury bill, the investor receives the par value and therefore has a profit between the par value and the discount price he/she purchased the treasury bill at. A benefit of treasury bills is that they are free of credit default risk, because they are backed by the government.

Commercial paper

Issued primarily by finance and bank holding companies with a maturity date between one day and 270 days, commercial paper is a short-term debt instrument with a goal to either provide liquidity or finance a company's investment. The minimum amount investment in a commercial paper equals $100,000.

Negotiable certificates of deposit

NCDs are short-term certificates with maturity terms ranging from two weeks to a year with a minimum investment amount of $100,000. Nonfinancial corporations are the most common investors, while individuals rarely invest indirectly invest in NCDs through money market funds. NCDs offer some liquidity.

Repurchase agreements

Repurchase agreements usually amount for $10,000,000 or more with maturity terms between one day and six months and are agreements where one party sells securities to another party with a certain date and price to repurchase the securities specified in the terms of the agreement. Common participants in repurchase agreements are financial and nonfinancial institutions.

Federal Funds

The most common participants in the federal funds market, which allows depository institutions to lend funds from each other at the federal funds rate, are commercial banks. The transactions are usually completed by funds brokers that receive a commission for their service. Common maturity terms of these transactions are between one and seven days with amounts starting at $ 5 million.

Banker's acceptances

Banker's acceptances are slightly credit risky short-term (usually between 30 and 270 days) agreements between (most commonly) exporters and a bank with the bank accepting responsibility for future payment. For this risky agreement (from the bank's perspective) the bank is reimbursed the funds by the importer in addition to a fee.

Municipal Bonds

A municipal bond is a bond issued by the federal government to finance the difference between spending by the government and the revenues they receive. Municipal bonds have a credit risk of default; the level of risk can be measured by the bond rating issued by Standard and Poor's. The minimum amount for a municipal bond equals $5000. The majority of municipal bonds are callable; generally interest is paid out semiannually to investors and the interest gained from municipal bonds is tax-exempt. Secondary markets for municipal bonds can be either active or inactive. Finally, municipal bonds generally offer a lower yield than Treasury bonds.

Over-The-Counter Transactions

Over-The-Counter transactions are completed through a telecommunications network, which means that a stock is traded through a telecommunications network in a market without a trading floor. Over-the-Counter trades do not require the purchase of a seat for the trade, because they are not listed as organized exchanges.




Nicole Elmore
Entrepreneur. Artist. Writer. Business Woman. Friend. Designer. President and CEO of Elmore Marketing.

My Blog: http://myblog.nicoleelmore.com
My Website: http://www.nicoleelmore.com

Providing readers with tips, tricks, deals, and reviews in areas of Lifestyle, Shopping, Deals, Health & Beauty, Business, Travel and More





This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

張貼者： 於 凌晨4:06 0 意見
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2012年9月1日 星期六

Certificate of Deposit Rates Can Beat the Stock Market


Will Certificate of Deposit rates beat the stock markets? First, what exactly are these certificates? Abbreviated as CD, these certificates verify that you deposited a given amount in a bank for a given time in return for a guaranteed interest rate. CD's offer guaranteed returns, no risk, insured accounts, and no rollover penalties.

You're Guaranteed To Make Money

The bank promised to pay you a fixed interest rate for your C-D deposit. The bank uses your deposit to help other customers, and pays you the interest in return. C/D rates are often much higher than standard savings and checking interest rates. You may earn 3%, 5%, or even more annually. Online banks sometimes offer slightly higher returns. There may be fees or penalties of the deposit is withdrawn prematurely, so leave it alone! Deposit terms can be half a year, one year, or several years. Banks will often pay more if you choose a longer period for your deposit.

You Won't Lose A Penny

The rollercoaster stock market can make or break a fortune, as the market zooms up and down. Market investments can change value very rapidly. There is no such volatility with Certificates of Deposit, because you know up front how much you'll earn. Stock investing simply cannot provide the peace of mind offered by deposit certificates.

The Government Protects Your Money

The FDIC guarantees that depositors of U.S. banks will not lose their money. In the event of a bank failure, you can withdraw all your funds up to the FDIC limit. When a company fails, however, its stock becomes worthless and your investment is lost.

Rollover Safety

When your CD matures, you can immediately roll it over into another CD, with no money lost. You'll then be earning interest of both the initial principal, plus the interest you earned before. IRA and 401(k) rollovers are subject to losing value when rolled over, if the rollover occurs on a day when the stocks are down.

Long term investors like the conservative benefits of the CD. For these reasons, Certificate of Deposit rates offer safer and steadier gains than volatile stock investments.




Find The Best High Interest Savings Accounts to Make Your Savings Grow Risk-Free. Take Advantage of Our Free Financial Information on Bad Credit Loans and Dozens of Other Money-Saving Topics.





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張貼者： 於 晚上8:15 0 意見
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2012年7月6日 星期五

The Retracting Self-Certification Mortgage Market


Once upon a time self-employed workers found it nearly impossible to get a mortgage unless they had an enormous deposit and a large income from their business activities that spanned many years. Those times may be about to return as lenders are pulling their self-certification mortgage products from the market as if they are tainted beef.

Many years ago lenders had strict criterion regarding who they would lend money to and the circumstances under which home loans would be approved. Life was simpler then as the great majority of the workforce had steady employment, a salary or wage, and monthly payslips.

However, as time went by the workforce slowly evolved into a mix of employed and self-employed workers, business owners, investors, and freelancers. Although a large portion of the workforce remained employed, a significant portion of those workers began to receive bonuses and commissions instead of a salary. This created uncertainty regarding their monthly incomes. Additionally, many other workers became self-employed and others became proprietors of small businesses which provided their daily bread.

Finding a standard employee with a steady, provable and predictable salary was no longer easy. This meant that traditional mortgage products were no longer applicable to a large portion of the workforce so lenders were forced to invent a new type of home loan to ensure they could keep on lending.

Enter the self-certification mortgage. A product originally designed for self-employed workers who did not receive a pay slip from their boss each month. Instead these workers contracted out their services to business that would pay them by the hour, or they ran their own small businesses and billed their clients when their work was done. Many self-employed individuals who worked in this manner had high levels of income so it seemed ludicrous that they should be excluded from the mortgage market.

Self-certification mortgage products were therefore launched onto the mortgage market with the best intentions - to satisfy the needs of self-employed individuals who lenders believed could service the loans. Unfortunately, due to lax lending rules, self-certs were also approved to people with low incomes who simply lied on their application forms about how much they earned. In addition to this, many lenders reduced their required deposit levels, meaning that people with little or no savings could also apply for a self-certification mortgage.

Because of this, great sums of money were loaned to people who should not have been approved for a mortgage. Mortgage brokers and borrowers alike took advantage of the lethal combination of low deposit requirements and not having to prove earnings to the lenders. Self-certification mortgage products are now being squarely blamed for much of the damage that has occurred via the global credit crunch. As a result lenders have pulled hundred of self-cert products from the market and are refusing to lend to anyone on a first-time-buyer basis.

For existing home owners looking to remortgage, lenders have reverted to the stricter criteria that were attached to self-certification mortgages in the first place. These include low loan-to-value ratios and proof that applicants are truly self-employed. Perhaps the lenders had it right in the beginning.




Get in touch with an independent Mortgage Broker for impartial advice on your next mortgage today at http://www.ukmortgagesource.co.uk through our online form





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張貼者： 於 上午8:41 0 意見
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2012年6月23日 星期六

How to Get Help With a Property Deposit Through the Open Market Homebuy Scheme


Experts are warning that many will be disappointed with the UK Government's initiative to help first-time buyers on to the property ladder. The Open Market Homebuy Scheme allows those who qualify to buy from private sellers, as opposed to a housing association or other low-cost housing organisation.

The scheme works bt the Government providing a subsidy to reduce the initial costs of the mortgage and then the private sector mortgage lenders involved waive interest on part of the purchase price. However, the terms of the scheme are restrictive and the Government expects only a small number of buyers - around 20,000 per year - to qualify.

It works like this: A homebuyer selects a house in the usual way, but they only need a mortgage for 75 per cent of the purchase price. Of course they still need to demonstrate that they can afford the mortgage repayments. The 25 per cent difference is financed by two additional "equity" loans: one of 12.5 per cent of the purchase price from the private sector and another 12.5 per cent from the Government. Both these extra loans will be interest-free for the initial five years.

 

After five years, the private lender can charge interest but the Government loan remains interest free. Interest on the private lenders loan is is capped at 3 per cent until year 10 of the mortgage. But homeowners on the scheme have to pay 25 per cent of the sale proceeds from their home to the lenders when they move. This includes any rise in value ot the property.

So who is eligible to take advantage of this scheme? In theory, all first-time buyer can apply. Applications are vetted by housing associations, which issue what are called "eligibility certificates". The Government has said that priority has to be given to key workers such as nurses and teachers, as well as social housing tenants.

Buyers have to meet the scheme's rules as well as qualify for the mortgage. One advantage of the scheme is that applications are only assessed on the basis of the 75 per cent of the property's price as there are no interest or capital payments for five years on the remainder. The buyers do not have to find a deposit and there are no higher lending charges.

The drawbacks is that the scheme is complicated and may put offsome buyers. Not all mortgage lenders take part in the scheme and so the choice of lenders is currently limited to the Nationwide and Yorkshire building societies, HBOS and Advantage, which is part of Morgan Stanley. Buyers have to organise their main 75 per cent mortgage with the same lender that provides their equity loan.

One of the burning questions is what happens if property prices fall further?

If house prices fall and you sell the house at a lower price than you paid for it, the Government will bear its share of any loss, asking for 12.5 per cent of the sale price. Of commercial lenders, only Advantage will accept a reduced capital sum if house prices fall.

 

If house prices rise, and that could be some time off, then the equity lenders will demand their share of that rise. They will claim 12.5 per cent of the sale proceeds net of legal costs.




Michael Challiner is the editor for Brokers Online, one of the UK's largest finance sites. Visit Brokers Online to find out more about Home Insurance Quotes, Life Assurance Cover and much much more.





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張貼者： 於 晚上8:06 0 意見
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2012年6月6日 星期三

Finance Basics: Money Market Funds: Treasury Bill, Commercial Paper, Certificate of Deposit


Some Basic Financial Terms and Definitions

Credit Risk

Credit risk is the risk of default of a security. The higher the risk, the higher the yield of the security has to be to be attractive to investors.

Liquidity

Liquidity is measured according to how easily a security can be converted into cash.

Tax Status

The tax status of an investor matters when investing in securities. The higher the tax bracket of the investor, the more taxes need to be paid on the gains/yield of a security.

Term to Maturity

The term to maturity is a specified term of time (days, months, years) that a security needs to exist to mature.

Call Feature

The call feature is an option that allows the issuer of a bond to buy bonds before the maturity date back, at a specified price.

Conversion Feature

The convertibility clause allows investors to convert bonds into shares of common stock. This is beneficial if the market price of a bond decreases, because an investor will have an additional option of converting the bonds into a specified number of shares of common stock, rather than selling the bonds in the market.

Common Instruments of a Money Market Fund

Treasury Bills

Treasury bills are highly liquid, short-term securities issued by the government to borrow funds from investors. Treasury bills are typically sold through auctioning on a weekly basis; however treasury bills with a one year maturity term are issued monthly. The lowest amount of a treasury bill (par value) is $1000 and thereafter in multiples of $1000 and is sold at a discount rate of the par value whereas at the maturity of the treasury bill, the investor receives the par value and therefore has a profit between the par value and the discount price he/she purchased the treasury bill at. A benefit of treasury bills is that they are free of credit default risk, because they are backed by the government.

Commercial paper

Issued primarily by finance and bank holding companies with a maturity date between one day and 270 days, commercial paper is a short-term debt instrument with a goal to either provide liquidity or finance a company's investment. The minimum amount investment in a commercial paper equals $100,000.

Negotiable certificates of deposit

NCDs are short-term certificates with maturity terms ranging from two weeks to a year with a minimum investment amount of $100,000. Nonfinancial corporations are the most common investors, while individuals rarely invest indirectly invest in NCDs through money market funds. NCDs offer some liquidity.

Repurchase agreements

Repurchase agreements usually amount for $10,000,000 or more with maturity terms between one day and six months and are agreements where one party sells securities to another party with a certain date and price to repurchase the securities specified in the terms of the agreement. Common participants in repurchase agreements are financial and nonfinancial institutions.

Federal Funds

The most common participants in the federal funds market, which allows depository institutions to lend funds from each other at the federal funds rate, are commercial banks. The transactions are usually completed by funds brokers that receive a commission for their service. Common maturity terms of these transactions are between one and seven days with amounts starting at $ 5 million.

Banker's acceptances

Banker's acceptances are slightly credit risky short-term (usually between 30 and 270 days) agreements between (most commonly) exporters and a bank with the bank accepting responsibility for future payment. For this risky agreement (from the bank's perspective) the bank is reimbursed the funds by the importer in addition to a fee.

Municipal Bonds

A municipal bond is a bond issued by the federal government to finance the difference between spending by the government and the revenues they receive. Municipal bonds have a credit risk of default; the level of risk can be measured by the bond rating issued by Standard and Poor's. The minimum amount for a municipal bond equals $5000. The majority of municipal bonds are callable; generally interest is paid out semiannually to investors and the interest gained from municipal bonds is tax-exempt. Secondary markets for municipal bonds can be either active or inactive. Finally, municipal bonds generally offer a lower yield than Treasury bonds.

Over-The-Counter Transactions

Over-The-Counter transactions are completed through a telecommunications network, which means that a stock is traded through a telecommunications network in a market without a trading floor. Over-the-Counter trades do not require the purchase of a seat for the trade, because they are not listed as organized exchanges.




Nicole Elmore
Entrepreneur. Artist. Writer. Business Woman. Friend. Designer. President and CEO of Elmore Marketing.

My Blog: http://myblog.nicoleelmore.com
My Website: http://www.nicoleelmore.com

Providing readers with tips, tricks, deals, and reviews in areas of Lifestyle, Shopping, Deals, Health & Beauty, Business, Travel and More





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張貼者： 於 凌晨3:53 0 意見
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2012年5月30日 星期三

Comparing A Money Market and a Certificate of Deposit


As investors, we all face common problems. Where can I find the best rate of return? What is a good stock to invest in? What do I do with my money in between investments? With the first two questions, limitless answers can apply. However, with the last question, there are two popular alternatives. A CD or money market account are both viable choices that should be investigated. But which one will give you the most bang for your buck?

CD's or certificates of deposit are basically like you giving the bank a loan. You give the bank a certain amount of money and they give you a certain amount of interest. The interest rate that you get is proportionate to how long the investment is. Before you ever deposit your money into a CD, you decide on how long the money will be invested. The longer you invest, the higher your interest rate will be. This is why older people are notorious for having many CD's because they simply want to keep the money they have at a reasonable interest rate.

CD's can range in time frames from a few weeks to years. It all depends on the investor. The bad thing about CD's is that you don't have access to your money. If you decide that you need to get your money out of a CD before it matures, you will probably have to pay a fine. So if you get a CD, your money is officially tied up.

The other popular choice is a money market account. This is basically like an investor's checking account. Whichever investment firm you have will take the balance from your money market account and invest it into mutual funds and other securities. With this form of investment, the rate of return is directly proportionate to how much money you have in the account. It is not linked to a certain time period as with a CD. This means that if you don't have very much money, you won't make any interest. The main benefit with these accounts is that you have access to the money at any time. Most financial institutions will give you a checkbook that you can use like you normally would. The bad thing is, many people will treat it as an actual checkbook instead of their investment money.

Whichever form of investment you choose, make sure it's the right one for you. They both have positives and negatives that you should consider, before making a choice.




Find the best CD Rates at http://www.gotalkmoney.com/





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張貼者： 於 下午4:38 0 意見
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2012年5月13日 星期日

Certificate of Deposit Rates Can Beat the Stock Market


Will Certificate of Deposit rates beat the stock markets? First, what exactly are these certificates? Abbreviated as CD, these certificates verify that you deposited a given amount in a bank for a given time in return for a guaranteed interest rate. CD's offer guaranteed returns, no risk, insured accounts, and no rollover penalties.

You're Guaranteed To Make Money

The bank promised to pay you a fixed interest rate for your C-D deposit. The bank uses your deposit to help other customers, and pays you the interest in return. C/D rates are often much higher than standard savings and checking interest rates. You may earn 3%, 5%, or even more annually. Online banks sometimes offer slightly higher returns. There may be fees or penalties of the deposit is withdrawn prematurely, so leave it alone! Deposit terms can be half a year, one year, or several years. Banks will often pay more if you choose a longer period for your deposit.

You Won't Lose A Penny

The rollercoaster stock market can make or break a fortune, as the market zooms up and down. Market investments can change value very rapidly. There is no such volatility with Certificates of Deposit, because you know up front how much you'll earn. Stock investing simply cannot provide the peace of mind offered by deposit certificates.

The Government Protects Your Money

The FDIC guarantees that depositors of U.S. banks will not lose their money. In the event of a bank failure, you can withdraw all your funds up to the FDIC limit. When a company fails, however, its stock becomes worthless and your investment is lost.

Rollover Safety

When your CD matures, you can immediately roll it over into another CD, with no money lost. You'll then be earning interest of both the initial principal, plus the interest you earned before. IRA and 401(k) rollovers are subject to losing value when rolled over, if the rollover occurs on a day when the stocks are down.

Long term investors like the conservative benefits of the CD. For these reasons, Certificate of Deposit rates offer safer and steadier gains than volatile stock investments.




Find The Best High Interest Savings Accounts to Make Your Savings Grow Risk-Free. Take Advantage of Our Free Financial Information on Bad Credit Loans and Dozens of Other Money-Saving Topics.





This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

張貼者： 於 晚上11:49 0 意見
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2012年4月15日 星期日

Finance Basics: Money Market Funds: Treasury Bill, Commercial Paper, Certificate of Deposit


Some Basic Financial Terms and Definitions

Credit Risk

Credit risk is the risk of default of a security. The higher the risk, the higher the yield of the security has to be to be attractive to investors.

Liquidity

Liquidity is measured according to how easily a security can be converted into cash.

Tax Status

The tax status of an investor matters when investing in securities. The higher the tax bracket of the investor, the more taxes need to be paid on the gains/yield of a security.

Term to Maturity

The term to maturity is a specified term of time (days, months, years) that a security needs to exist to mature.

Call Feature

The call feature is an option that allows the issuer of a bond to buy bonds before the maturity date back, at a specified price.

Conversion Feature

The convertibility clause allows investors to convert bonds into shares of common stock. This is beneficial if the market price of a bond decreases, because an investor will have an additional option of converting the bonds into a specified number of shares of common stock, rather than selling the bonds in the market.

Common Instruments of a Money Market Fund

Treasury Bills

Treasury bills are highly liquid, short-term securities issued by the government to borrow funds from investors. Treasury bills are typically sold through auctioning on a weekly basis; however treasury bills with a one year maturity term are issued monthly. The lowest amount of a treasury bill (par value) is $1000 and thereafter in multiples of $1000 and is sold at a discount rate of the par value whereas at the maturity of the treasury bill, the investor receives the par value and therefore has a profit between the par value and the discount price he/she purchased the treasury bill at. A benefit of treasury bills is that they are free of credit default risk, because they are backed by the government.

Commercial paper

Issued primarily by finance and bank holding companies with a maturity date between one day and 270 days, commercial paper is a short-term debt instrument with a goal to either provide liquidity or finance a company's investment. The minimum amount investment in a commercial paper equals $100,000.

Negotiable certificates of deposit

NCDs are short-term certificates with maturity terms ranging from two weeks to a year with a minimum investment amount of $100,000. Nonfinancial corporations are the most common investors, while individuals rarely invest indirectly invest in NCDs through money market funds. NCDs offer some liquidity.

Repurchase agreements

Repurchase agreements usually amount for $10,000,000 or more with maturity terms between one day and six months and are agreements where one party sells securities to another party with a certain date and price to repurchase the securities specified in the terms of the agreement. Common participants in repurchase agreements are financial and nonfinancial institutions.

Federal Funds

The most common participants in the federal funds market, which allows depository institutions to lend funds from each other at the federal funds rate, are commercial banks. The transactions are usually completed by funds brokers that receive a commission for their service. Common maturity terms of these transactions are between one and seven days with amounts starting at $ 5 million.

Banker's acceptances

Banker's acceptances are slightly credit risky short-term (usually between 30 and 270 days) agreements between (most commonly) exporters and a bank with the bank accepting responsibility for future payment. For this risky agreement (from the bank's perspective) the bank is reimbursed the funds by the importer in addition to a fee.

Municipal Bonds

A municipal bond is a bond issued by the federal government to finance the difference between spending by the government and the revenues they receive. Municipal bonds have a credit risk of default; the level of risk can be measured by the bond rating issued by Standard and Poor's. The minimum amount for a municipal bond equals $5000. The majority of municipal bonds are callable; generally interest is paid out semiannually to investors and the interest gained from municipal bonds is tax-exempt. Secondary markets for municipal bonds can be either active or inactive. Finally, municipal bonds generally offer a lower yield than Treasury bonds.

Over-The-Counter Transactions

Over-The-Counter transactions are completed through a telecommunications network, which means that a stock is traded through a telecommunications network in a market without a trading floor. Over-the-Counter trades do not require the purchase of a seat for the trade, because they are not listed as organized exchanges.




Nicole Elmore
Entrepreneur. Artist. Writer. Business Woman. Friend. Designer. President and CEO of Elmore Marketing.

My Blog: http://myblog.nicoleelmore.com
My Website: http://www.nicoleelmore.com

Providing readers with tips, tricks, deals, and reviews in areas of Lifestyle, Shopping, Deals, Health & Beauty, Business, Travel and More





This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

張貼者： 於 清晨6:36 0 意見
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2012年4月14日 星期六

Delay Before Starting To Do Stock Market Trading


You have probably heard lots of stories that you can make tons of money from cheap penny stocks or something similar so you thought you would see what it was all about. You probably do not want to be delayed at all and are eager to start investing in the stock exchanges as soon as possible. However, it is a tricky business and I recommend that you do delay a little until you understand it all more.

It is a lot easier to lose money than make it when stock market trading. Sure some lucky whatsits make a fortune in a week but they are very few and very far between. In truth you may have started investing without really realizing it with a bank savings account which is a very safe investment normally, although there have been some mishaps in the past couple of years.

One way to lose spending power on your money for certain though, is to stick it in a tin or put it in the safe at home. Inflation will bite into it and it will not be worth as much in real terms when you try to spend it. At least with the bank they do give you a little interest, albeit a pittance these days plus here is a government based scheme in place too just in case the financial institution gets into trouble.

When you get to the stage of wanting a bit more action with your investments consider the money markets. You will, however, have to commit to a bit longer time period to tie up your money. That is the main difference. A standard time frame is a year or 13 months. They will give you a higher interest rate for making this commitment.

Certificates of Deposit are the next upwards step on the ladder but an even longer period of time is needed for these. A lot of financial institutions offer a higher interest if you invest more money with them. They will do the same if you contract for a longer period as well.

Your intention through these steps is to gradually increase the amount of capital that you have to invest without too much risky. Whilst doing this you get the opportunity to learn all that you can about investing. There is plenty of information on the internet and in the bookstores to help you get a grip of stock trading.

Then, when you actually start real trading, do not get disheartened if you lose a bit on your first couple of trades. You cannot expect to understand everything right from day one.

I put money on the fact that you had several driving lessons when you fist tried to drive a car. You should look at trading in the stock market in exactly the same way. And, just like driving, do not go too fast at first. Gain the confidence slowly and you will be the winner.




With the way that the economy is today I have had to become the money advice expert for our family and would like to share some ideas that I have found.

This one is about being very careful if you are just starting stock market investing without a solid beginners investment strategy.





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2012年1月21日 星期六

Comparing A Money Market and a Certificate of Deposit


As investors, we all face common problems. Where can I find the best rate of return? What is a good stock to invest in? What do I do with my money in between investments? With the first two questions, limitless answers can apply. However, with the last question, there are two popular alternatives. A CD or money market account are both viable choices that should be investigated. But which one will give you the most bang for your buck?

CD's or certificates of deposit are basically like you giving the bank a loan. You give the bank a certain amount of money and they give you a certain amount of interest. The interest rate that you get is proportionate to how long the investment is. Before you ever deposit your money into a CD, you decide on how long the money will be invested. The longer you invest, the higher your interest rate will be. This is why older people are notorious for having many CD's because they simply want to keep the money they have at a reasonable interest rate.

CD's can range in time frames from a few weeks to years. It all depends on the investor. The bad thing about CD's is that you don't have access to your money. If you decide that you need to get your money out of a CD before it matures, you will probably have to pay a fine. So if you get a CD, your money is officially tied up.

The other popular choice is a money market account. This is basically like an investor's checking account. Whichever investment firm you have will take the balance from your money market account and invest it into mutual funds and other securities. With this form of investment, the rate of return is directly proportionate to how much money you have in the account. It is not linked to a certain time period as with a CD. This means that if you don't have very much money, you won't make any interest. The main benefit with these accounts is that you have access to the money at any time. Most financial institutions will give you a checkbook that you can use like you normally would. The bad thing is, many people will treat it as an actual checkbook instead of their investment money.

Whichever form of investment you choose, make sure it's the right one for you. They both have positives and negatives that you should consider, before making a choice.




Find the best CD Rates at http://www.gotalkmoney.com/





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2012年1月18日 星期三

What is a Money Market Deposit Account?


A money market deposit account is mainly opened with the aim of investing your savings in the money market world. These accounts are also called as deposit accounts which are almost similar to savings accounts. But unlike a savings account, these accounts have certain restrictions with regard to writing of checks are concerned. Just as other saving accounts are insured, money market deposit account is also insured. These accounts are usually managed by the bank or you also have the brokers handling it too. This account is an easy way to deposit money which is used for upcoming investments.

These accounts are totally safe though the interest rate is also low. You can find similarities in a money market deposit account when you compare it with a saving account. Yet I must say that both of them still differ with respect to certain features. Only few withdrawal transactions are allowed per month, when it comes to dealing with third parties. Banks try to discourage customers from going beyond their limit while their withdrawal transaction is concerned. If banks find the account holder to exceed the number of withdrawal transaction, then in such a case, the bank might impose high fees. Also it may go to the extent of closing their accounts. Actually, banks are using this above mentioned system in order to limit the customers transactions. This may not include ATM transactions. All this technique helps the bank to invest the money in a more appropriate way and thus open doors for higher return.

Money markets can easily be compared to a mutual fund, whereby the share price is kept constant. The manager's who manage their funds in these accounts, will invest them in financial product, such as saving bonds, Certificates of deposit etc. The money earned is then paid out to the money market account holders. In a money market deposit account, cash can be easily made available for other investment plans. The rate of interest in this case depends on how much assets have been deposited by the investor. It does not depend on the maturity date, unlike in h the case of Bank certificate of deposit. So the rich investors may enjoy the benefits, depending upon their investment plan.

The main feature of this account is that, it has restrictions as far as writing a check is concerned. In the case of money market deposit account, you can save money and at the same time you can have access to your funds.




Amit Bhawani writes a Tech Blog and also offers How To Tutorials. You can check out his website at AmitBhawani.com





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2011年12月27日 星期二

What Are Term Deposits, Government Bonds, Treasury Bills & Money Market Funds?


Financial instruments found in the debt market include:

1. Term Deposits

2. Government bonds

3. Treasury Bills (T-Bills)

4. Money Market Funds

5. Corporate Bonds and Debentures

6. Domestic Bond Funds.

In this article, we will only discuss the term deposits, government bonds, treasury bills and money market fund.

1. Term Deposits

Term Deposits are qualifying instruments for tax shelter and will share the following characteristics.

a) Short-Term Deposit: less than 1 year

b) Long-Term Deposit: to 5 years. Interest Rate: depends on length of deposit and competitive interest rates available in the marketplace.

Long-term investments are called Guaranteed Investment Certificates (GICs) and can be purchased for a lesser amount such as $500. They are also called a Certificate of Deposit (CD). Rates may vary as little as 0.10% amongst the deposit takers.

Term Deposits may be cashed prior to maturity, but this may incur a penalty. GICs generally cannot be cashed before they mature, although some deposit takers are now more flexible.

2. Government saving bonds

Country residency is required and guaranteed by the country of issuer.

a) Are registered bonds that provide protection against loss, theft or destruction.

b) Are not transferable.

c) Can be purchased for a minimum of $100 to a maximum of $500,000.

d)The interest is taxable and is competitive with GICs.

e) Mature in 10 to 12 years.

In Canada, Canadian saving bonds are issued as either R bonds or C bonds.

In US, US saving bonds are issued as series EE bonds, Series I Bonds.

The investment risk for government savings bonds Issued by Canadian government or US government is nil, since the bond is guaranteed by the federal government.

3) Treasury bills (T bill)

Treasury bills are a short term money market instrument and issued by the federal government in terms of 30, 60, 91, 182 and 364 days. They are sold by auction.

Banks and investment houses buy at wholesale in multiples of $5 million denominations. They then sell these T-Bills to brokers and investment dealers who break down their purchases into $1,000 lots.

T bills are sold discount to their face values and also sold on the secondary market and their value fluctuates depending on competitive interest rates at the times of resell.

The short-term nature of T-Bills does not cause a large exposure to interest rate risk, but to some extent there is an inflation risk.If a T-Bill is sold before maturity, any gain is taxed as interest.

4. Money market funds

Money market fund holds T bills and other short term money market contracts. Investors pool the investments through the mutual fund. Units in this fund can be bought and sold daily. Money market funds produce capital gains although their primary function is to generate interest income. Interest is generally paid monthly, while capital gains are paid annually.

The benefits of money market funds include

a) security of principal

b) liquidity.

c) eligible for plan registration

I hope this information will help. If you need more information, you can read the complete series of the above subject at my home page:




Kyle J. Norton

http://lifeanddisabitityinsuranceunderwriter.blogspot.com/

http://financialinvesting12.blogspot.com/

All rights reserved. Any reproducing of this article must have all the links intact.

I have been studying natural remedies for disease prevention for over 20 years and working as a financial consultant since 1990





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2011年12月11日 星期日

Certificate of Deposit Rates Can Beat the Stock Market


Will Certificate of Deposit rates beat the stock markets? First, what exactly are these certificates? Abbreviated as CD, these certificates verify that you deposited a given amount in a bank for a given time in return for a guaranteed interest rate. CD's offer guaranteed returns, no risk, insured accounts, and no rollover penalties.

You're Guaranteed To Make Money

The bank promised to pay you a fixed interest rate for your C-D deposit. The bank uses your deposit to help other customers, and pays you the interest in return. C/D rates are often much higher than standard savings and checking interest rates. You may earn 3%, 5%, or even more annually. Online banks sometimes offer slightly higher returns. There may be fees or penalties of the deposit is withdrawn prematurely, so leave it alone! Deposit terms can be half a year, one year, or several years. Banks will often pay more if you choose a longer period for your deposit.

You Won't Lose A Penny

The rollercoaster stock market can make or break a fortune, as the market zooms up and down. Market investments can change value very rapidly. There is no such volatility with Certificates of Deposit, because you know up front how much you'll earn. Stock investing simply cannot provide the peace of mind offered by deposit certificates.

The Government Protects Your Money

The FDIC guarantees that depositors of U.S. banks will not lose their money. In the event of a bank failure, you can withdraw all your funds up to the FDIC limit. When a company fails, however, its stock becomes worthless and your investment is lost.

Rollover Safety

When your CD matures, you can immediately roll it over into another CD, with no money lost. You'll then be earning interest of both the initial principal, plus the interest you earned before. IRA and 401(k) rollovers are subject to losing value when rolled over, if the rollover occurs on a day when the stocks are down.

Long term investors like the conservative benefits of the CD. For these reasons, Certificate of Deposit rates offer safer and steadier gains than volatile stock investments.




Find The Best High Interest Savings Accounts to Make Your Savings Grow Risk-Free. Take Advantage of Our Free Financial Information on Bad Credit Loans and Dozens of Other Money-Saving Topics.





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