Why You Should Invest

Investing has become increasingly important over the years, as the future of social security benefits becomes unknown.

People want to insure their futures, and they know that if they are depending on Social Security benefits, and in some cases retirement plans, that they may be in for a rude awakening when they no longer have the ability to earn a steady income. Investing is the answer to the unknowns of the future.

You may have been saving money in a low interest savings account over the years. Now, you want to see that money grow at a faster pace. Perhaps you’ve inherited money or realized some other type of windfall, and you need a way to make that money grow. Again, investing is the answer. 

Investing is also a way of attaining the things that you want, such as a new home, a college education for your children, or expensive ‘toys.’ Of course, your financial goals will determine what type of investing you do.

If you want or need to make a lot of money fast, you would be more interested in higher risk investing, which will give you a larger return in a shorter amount of time. If you are saving for something in the far off future, such as retirement, you would want to make safer investments that grow over a longer period of time. 

The overall purpose in investing is to create wealth and security, over a period of time. It is important to remember that you will not always be able to earn an income… you will eventually want to retire.

You also cannot count on the social security system to do what you expect it to do. As we have seen with Enron, you also cannot necessarily depend on your company’s retirement plan either. So, again, investing is the key to insuring your own financial future, but you must make smart investments!

Understanding Bonds

There are certain things you must understand about bonds before you start investing in them. Not understanding these things may cause you to purchase the wrong bonds, at the wrong maturity date.

The three most important things that must be considered when purchasing a bond include the par value, the maturity date, and the coupon rate.

The par value of a bond refers to the amount of money you will receive when the bond reaches its maturity date. In other words, you will receive your initial investment back when the bond reaches maturity.

The maturity date is of course the date that the bond will reach its full value. On this date, you will receive your initial investment, plus the interest that your money has earned.

Corporate and State and Local Government bonds can be ‘called’ before they reach their maturity, at which time the corporation or issuing Government will return your initial investment, along with the interest that it has earned thus far. Federal bonds cannot be ‘called.’

The coupon rate is the interest that you will receive when the bond reaches maturity. This number is written as a percentage, and you must use other information to find out what the interest will be. A bond that has a par value of $2000, with a coupon rate of 5% would earn $100 per year until it reaches maturity.

Because bonds are not issued by banks, many people don’t understand how to go about buying one. There are two ways this can be done.

You can use a broker or brokerage firm to make the purchase for you or you can go directly to the Government. If you use a brokerage, you will more than likely be charged a commission fee. If you want to use a broker, shop around for the lowest commissions!

Purchasing directly through the Government isn’t nearly as hard as it once was. There is a program called Treasury Direct which will allow you to purchase bonds and all of your bonds will be held in one account, that you will have easy access to. This will allow you to avoid using a broker or brokerage firm. 

Investing for Retirement

Retirement may be a long way off for you – or it might be right around the corner. No matter how near or far it is, you've absolutely got to start saving for it now. However, saving for retirement isn't what it used to be with the increase in cost of living and the instability of social security. You have to invest for your retirement, as opposed to saving for it!

Let’s start by taking a look at the retirement plan offered by your company. Once upon a time, these plans were quite sound. However, after the Enron upset and all that followed, people aren't as secure in their company retirement plans anymore. If you choose not to invest in your company’s retirement plan, you do have other options.

First, you can invest in stocks, bonds, mutual funds, certificates of deposit, and money market accounts. You do not have to state to anybody that the returns on these investments are to be used for retirement. Just simply let your money grow overtime, and when certain investments reach their maturity, reinvest them and continue to let your money grow.

You can also open an Individual Retirement Account (IRA). IRA’s are quite popular because the money is not taxed until you withdraw the funds. You may also be able to deduct your IRA contributions from the taxes that you owe. An IRA can be opened at most banks. A ROTH IRA is a newer type of retirement account. With a Roth, you pay taxes on the money that you are investing in your account, but when you cash out, no federal taxes are owed. Roth IRA’s can also be opened at a financial institution.

Another popular type of retirement account is the 401(k). 401(k’s) are typically offered through employers, but you may be able to open a 401(k) on your own. You should speak with a financial planner or accountant to help you with this. The Keogh plan is another type of IRA that is suitable for self employed people. Self-employed small business owners may also be interested in Simplified Employee Pension Plans (SEP). This is another type of Keogh plan that people typically find easier to administer than a regular Keogh plan.

The best for last; investing in real estate would be wise the value of housing or property will not drop. It’s on the rise every year you can reap all the financial benefits leaving inheritance for your children and children’s children.

Whichever retirement investment you choose, just make sure you choose one! Again, do not depend on social security, company retirement plans, or even an inheritance that may or may not come through! Take care of your financial future by investing in it today.

Importance Of Saving: Saving The Best For Last

The value of money cannot be underestimated. In a recent national survey, more than 96%  people agreed that early monetary savings would help one achieve a fruitful and stable life.

Saving is a way of insulating oneself from the many symptoms of health and natural adversity. While an average youth of yester years thinks more about short-term financial goals such as purchasing a new pair of signature shoes, owning a new jet ski or a brand new car, statistics show that more and more are starting to realize the importance of keeping a personal savings.

Long terms goals are described as goals that have a lasting effect should a person’s present actions be religiously maintained.

The following statements are outlined to provide information and tips on how you can start up your money-saving gimmicks and ensure a happy and financially stable future and list the reasons as to why saving money should occupy a greater place in our list of priorities in life.

Reasons for Saving:

1. Saving for your Future and Present Needs – Saving today will provide you with flexible financial resources in the future.
2. Keeping at least 20% of your monthly earnings while using the other for your household, personal and unexpected expenses will surely play a big part in your pursuit for a stable future.
3. Saving for an Investment Need – Savings can also be a source of your future capital for engaging in business enterprises.
4. It will provide you more opportunity for venturing on your unexplored talents and earn you a huge potential in increasing your money exponentially.
5. Saving for your Retirement – More than 23% of today’s elderly were shown to have failed in one instance in their lives, to save and strategically used their money for preparing their way to retirement. As a result, these folks extend their entire retirement career working on an equally satisfying job that pays them enough to cover their basic expenses.

Keys to Fulfilling your Saving Goals:

No matter how good our intentions and objectives for saving are, we should also take note that goals can fall and touched the following baselines or characteristics.

• Attainability – Goals should be something attainable and one which can be achieved without you doing something extraordinary or illegal. A little amount of patience and hard work are key.
• Consistency – Changing your goals from time to time due to incidents that may arise in the near future are sure ways to deterring your intention to save.

While we need to focus on the present incidents, we also need to take hold of our original intention and continue until you have gained enough leads to get it.

Similar Articles:

Importance of saving money

Understand the importance of Saving Money

How to Avoiding Impulse Spending

 Answer these questions truthfully:

1.)        Does your spouse or partner complain that you spend too much money?

2.)        Are you surprised each month when your credit card bill arrives at how much more you charged than you thought you had?

3.)        Do you have more shoes and clothes in your closet than you could ever possibly wear?

4.)        Do you own every new gadget before it has time to collect dust on a retailer’s shelf?

5.)        Do you buy things you didn't know you wanted until you saw them on display in a store?

If you answered yes to any two of the above questions, you are an impulse spender and indulge yourself in retail therapy.

This is not a good thing. It will prevent you from saving for the important things like a house, a new car, a vacation or retirement. You must set some financial goals and resist spending money on items that really don’t matter in the long run.

Impulse spending will not only put a strain on your finances but your relationships, as well. To overcome the problem, the first thing to do is learn to separate your needs from your wants.

Advertisers blitz us hawking their products at us 24/7. The trick is to give yourself a cooling-off period before you buy anything that you have not planned for.

When you go shopping, make a list and take only enough cash to pay for what you have planned to buy. Leave your credit cards at home.

If you see something you think you really need, give yourself two weeks to decide if it is really something you need or something you can easily do without. By following this simple solution, you will mend your financial fences and your relationships.  

God bless

Working at home online jobs

Intrigued by working at home my question is whether it’s possible for one to earn a living working at home on an online job. Who is going to give a job to someone they have not meet? How will worker get compensated? By which standard will your work be evaluated and can you work without supervision?

Who is going to give a job to someone they have not meet?

The deal is not as to whether they have not met this person it is whether they can do the duties assigned satisfactory in the time lines given. Trusting this person with important company information would be risky, therefore precautions and choice of right people is necessary.

Putting that aside there are jobs online that need nothing but know how and simple training that can earn good money for example marketing products for commission using affiliate marketing programs, article writing, data entry and market research to mention but a few.

How will worker get compensated?

If you do duties and are not compensated this is very de-motivating, know beforehand how you paid would help in deciding whether to take up the job. Perhaps negotiating for half payment before hand and the half after completion would work in one's favor.

Having a paypal account or signing up to online payment methods would make it easy for your employer to pay you.

By which standard will your work be evaluated and can you work without supervision?

My guess is that if you are paid and asked to do another job this is evaluation in itself of your skill you are good or have potential.

Who can succeed working at home?

The main key is be motivated and have some skills. It will take a lot of hard work, strong will, organization and determination to be real successful.

Setting some goals on how much you want to earn and time you want to devote to this online job be it full-time or part-time will keep you focused.

Requirements for you to work successful at home

·         A separate work space free from distraction

·         Internet connected computer with desk and chair

·         Ability and desire to work un supervised.

·         Basic use of internet and search engines

·         Accountability of your time.

The good and bad of working at home

The good

1.       You will be your own boss; basically you will decide what to do when to it success is your decision.

2.       There will be no communing to work this will cut your transport expenses.

3.       You will be in control your future

4.       Perhaps you want to raise a family or spend quality time with family and friends this online job will give you a chance to do this.

The bad

1.       No guaranteed salary at end of every month like you are used to

2.       You may have a small steady income no paid medical or dental benefits

3.       Distractions while you’re working that may hinder finished work

In conclusion

Working at home online pays because there will be a balance between work and family time you gain the benefit of both.

Working at home online: Research resources

Work from home data entry jobs:
http://makemoneyathome-intel1.blogspot.com/:            
http://goo.gl/6u0g8
                                                         

Customer service group:  www.customerservicegroup.com/pdf/42415_At_home_FAQs.pdf

Manage Your Debt Today

Submitted by ppiclaims49
Sat, 22 Sep 2012

Today, most of us have taken at last one loan and some more than one. Taking a loan is easy; its repaying them which is hard and needs proper planning and this is where we come in. our experts are ready with debt management plans to assist you with the management of your debt as is best for you. Our debt management plans are individually tailored based on what you can be afford to pay on a monthly basis. To achieve an accurate figure, an income and expenditure test will establish what monies are coming into the household and what is being paid out. Income and expenditure includes everything, such as rent/mortgage, secured loans, utility bills, and essential living expenses (food & TV license etc.). Once the income and expenditure is completed, the leftover amount is considered to be your disposable income which is divided amongst your creditors.
First step towards managing your debt is ti understand the services available to be free from debt. These include:
• Debt Management through Consolidated Loans- All the loans you have taken are consolidated and instead of paying off several loans you have to repay one larger debt off.Paying interest on one loan only saves your money. Many people owe their financial survival to the debt consolidation loans that helped them counter bankruptcy and other debt related problems. Loan provide helps in the settlement of loans.
• Debt consolidation through Debt settlement- under this type, a debt settlement company settles all your debt while you have to repay the company monthly installments to the company.
• Debt Management Education Programs- Many companies are now offering programs on how to control your debt, how to select a loan and how to budget. It helps o keep you from getting caught in debt trap again.
• Debt Consolidated Mortgage- it is a second mortgage that includes some of the debts taken for the previous mortgage. The benefit is that borrower gets to repay at the rate of mortgage.
If your self repayment plan has failed, then it is time to hire a specialized firm to help you out. Never forget to check their license. Profile, their client's testimonials etc. You can go to Attorney General or Better Business Bureau to find out about the company's client services. It would be better to go through their information-privacy policy as well.
Points you should keep in mind while adopting a DMP include:
• Agree on a plan which suits you or else the problem might mount up.
• Inform your creditors and get their approval or it will not work at all.
• Make regular payments on your DMP as not doing so will reduce your credit rating.
• Go for written agreements instead of verbal.
• Maintain a record of your payments to avoid any hassles that may arise in future.
• Get a written agreement from the company to keep your personal information confidential.

Aim of a debt management plan should not be only to reduce the debt and make its payment easier but also to make the borrower aware so that he remains debt free forever.