Investing

Will Your Investment Portfolio Last Throughout Your Retirement Years

investingStarting to plan your investment portfolio early enough is a good idea but many people lack the financial resources or skills to undertake that step. As a result, they have to begin investing later in life, which makes them wander whether the money would be sufficient for all of their needs during retirement years.

Will your investment portfolio last throughout your retirement years? You have to think about your needs, about diversification and about your investment ability. A consultation with a professional is essential, as well.

How long will Your Portfolio Last?
Most investors wonder whether they will get enough money for their senior years, possibly leaving some of their assets to children and grandchildren.

An investment portfolio contains different investment types that are all held by one person. Having a balanced portfolio is essential because it will guarantee profitability. Most investment portfolios contain high risk items alongside safer types of investment.

A consultation with an investment advisor and a forensic accountant is a must for the creation of an investment portfolio that will last throughout your investment years. Many people lack the specialized knowledge and instinct to come up with the best possible portfolio. To learn more about the role of forensic accountants in the process, contact forths forensic accountants.

Your investment experts will calculate dividends on the basis of your investment and expenditure and suggest lifestyle or portfolio changes that will guarantee the longevity of your funds. Instead of enjoying a costlier lifestyle, some investors may also consider reinvesting the money in an attempt to increase the stability and profitability of the portfolio.

Tips for the Creation of an Investment Portfolio that will last:
The easiest way to make your investment portfolio last throughout your senior years is a conservative strategy. High risk investments are more profitable but the risk of losing money is much higher. A conservative or moderate approach will result in profitability without the risks.

Making adjustments as you go is a good idea, as well. During one period of time, a high risk investment may seem like a good way of making more money. As you age, you should probably try to be a bit more conservative in an attempt to make the assets last. For example, in your 60s, you can have a moderate portfolio approach consisting of 60 percent stocks and 40 percent bonds. As you approach your 80s, switch for a more conservative portfolio that consists of 20 percent stocks and 80 percent bonds or cash.

Finally, you need to have a separate emergency fund. Set some money aside in a bank account, for example. The sum should be sufficient to cover your needs and estimated expenses for at least one year. This emergency fund will be lifesaving in the case of extraordinary circumstances that may affect your investment portfolio.

Begin planning your retirement investment early enough. Research opportunities and consult a professional that understands the little tricks that will help you create a balanced and profitable investment portfolio. Understand your needs and current financial abilities. Stay open to change and get ready to make adjustments on the basis of current circumstances. All of these elements and techniques will help you create the perfect investment portfolio that will last throughout your retirement years.

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Investing

Investment Ideas That Will Not Cost You A Lot Of Money

Most people today figured out the fact that it is really important to invest in order to make money in the future. After all, your main purpose should be to create a long-term income stream that you can use in order to be financially safe at all points in time.

The problem with investments is that we are used to having to invest a lot of money. Obviously, this is something that is great since you would end up that financial security fast. You can see an example of a service that helps investors with over $3,000 available at incomestore.com. However, most people out there do not have so much to invest. Many can only invest around one hundred dollars.

The good news is that various options are available. The bad news is that not many are aware of this. You need to always keep your eyes open. There are cases in which you may miss out on some great opportunities simply because you missed them. Acting fast is usually really important.

With the smaller investments, a return of around 10% is something that is perfect at the end of the year, although this is not what you want to see. When being aggressive, you will be able to even come up with a profit of 1000 percent, which is definitely what you want.

The trick when you invest small amounts of money is to look for the big payoff. We say this due to the fact that you will not actually feel a loss if the investment is low. Aggressive investments with the main goal of gaining a high ROI is something that you want to do.

Let us say that you divide your money into 10 equal shares. Invest in high risk, high ROI potential and if 6 of them will make you a large return, you will end up with a lot of money when the year is over. Obviously, you do not want to end up losing money but when you hedge your investments and you do understand the fact that you just need one big win, it is possible to end up with quite a lot of money that can be used in the future for investments that are much larger.

If you do not know that much about investments, we do recommend that you work with a company that does know what has to be done in order to be successful. You will quickly figure out the fact that such help is really valuable.

Book Reviews

Should You Buy This Book? Review: The Accidental Entrepreneur

The-Accidental-EntrepreneurAre you an accidental entrepreneur? Want to be? Entrepreneurism is the way to go especially in this day in age. I’m working on that dream by building websites. I’ve taken a skill set and read a lot to expand that skill set. Find a skill you’re good at and start building it and then find a way to sell your skills.

This book covers a lot of things that you’ll need to know in a very readable format. The subtitle of the book is “50 things I wish someone had told me about starting a business”. It really does a good job of laying out how to start a business and gives a lot of good ideas to make your business succeed. It covers everything from getting an idea to hiring people and all of the in between.

Should You Buy This Book?

If you’re thinking about starting your own business then for sure. It’s not really towards the online business crowd so I wouldn’t recommend it for that. It’s always good to learn from other people who have already gone through it.

Buy It

The Accidental Entrepreneur New

The Accidental Entrepreneur Used

Debt Management

Advice on Secured Loans

When you are searching for options to fund a new purchase, you have to make a choice between unsecured and secured loans. There are advantages to each of these, and it ultimately depends on the financial condition of the borrower, as to which alternative becomes preferable.

Unsecured Loans versus Secured loans

Unsecured loans are a recent innovation in finance, unlike secured loans which have been around for centuries. Even in the older days, people used to borrow money after keeping their land as security. This was the way most farmers were able to get money to finance buying of seeds and fertilizers for their activities. Unsecured loans have led to larger risks being taken by lenders and this has led to rates and terms for such loans being far more costly and stricter. Mortgages are a form of secured loan, because the property being acquired itself is offered as collateral, to guard against default in payment.

Secured Loans and Credit Ratings

Financial institutions always prefer to have clients that have good credit ratings. Even so, where collateral is offered as security for the loan, they may not give this credit rating too much of importance, as their risks are covered by the asset value of the pledged security. A good credit rating and a loan that is covered by collateral can lead the lender to offer much more generous terms. So, interest rates will be lower, conditions will be easier and payment concessions will figure in the final contract. A poor credit rating along with collateral will still allow you to get the required loan, but because of the poor history, terms are likely to be stiffer and more demanding.

Business Secured Loans

Most banks offer businesses secured loans that require some sort of collateral. This can be in the form of any property that the business has rights over. While property is the most preferred, banks will even offer such loans against equipment, vehicles and any other asset that the business has.  Before such loans are granted, the lender will insist on an independent valuation of the assets, so that they cover the full value of the loan being considered. In some cases, banks may even offer to give such loans against shares or stock, as long as the company has a history of being well traded in exchanges. Businesses even in case of secured loans, are expected to provide complete financial details and history, so that the lender can ensure that they have the necessary business acumen to run the business profitably. A well-run company can even further negotiate to get very advantageous terms, that ultimately lower the cost of such financing.

Secured loans must always be preferred by both individuals and businesses as the interest rates in them are much lower. It also enables an idle asset like a home or other property or collateral to realize its potential value, which otherwise lies dormant. Loans are normally offered that can go as high as a hundred percent of the value of the security offered, though eighty percent is more the norm. Click here if you need to get more information on secured loans.

Debt Management

Pay-day loans – the fast, convenient and user-friendly was of borrowing money

Payday LoansPay-day loans are like any other loan products in as much as they need to be treated with respect and due caution. The fact of the matter is that most people have to borrow money at some point in their lives. Whether that borrowing takes the form of a mortgage or a pay-day loan from payday loan giants Wonga – they’re all loans. They all involve paying back interest of the original loan amount, and they all have to be repaid within a certain time frame.

An alternative to traditional bank loans

Pay-day loans have received a certain amount of bad press, but it’s not the actual product that’s at fault as much as some of the borrowers. The fact of the matter is that pay-day loans offer a new, modern alternative to traditional borrowing. In an ideal world most people will approach their bank for a loan. They offer flexible loan amounts, flexible repayment periods, and good rates of interest. But there is a problem.

The problem with banks is that the majority are so staid and stuck in their ways. They’re trying to reinvent themselves, but their hearts are not really in it in the same way as they are in the new Fintech start-ups that are setting up shop and challenging the old financial regime.

The loan application process from a traditional banks can be long and drawn out, and quite invasive. A large percentage of loan applications never succeed. This is where pay-day loans really score. The application process is fast and efficient. In most instances it can be carried out entirely online, which is something that suits South Africa’s young generation down to the ground. Banking innovation is key according to the Africa Progress Panel, and South Africa is not short of innovation.

Higher interest but over a shorter period of time

Admittedly the amounts lent out are relatively small. The initial pay-day loan product that market leaders Wonga (South Africa) has a ceiling of R2500. Given the fact that the loan period is so short (typically no more than 47 days) the interest charged has to be much higher than the interest on traditional bank loans, but it has to be that way in order to be viable for the lender. Its why these products are referred to as high cost short term loans (HCSTLs).

The advantages of speed and convenience

The beauty of pay-day loans is their speed and convenience. This is their main attraction; but it can also open a loophole for unscrupulous borrowers too; those who have little intention of paying the loans back if times are tough, and this is how some of the bad press originates. Even though most pay-day loan companies are responsible lenders, in order to make the loan application process as fast and user-friendly as it is, it does open the door to some “fraudulent” applications.

Responsible lending and borrowing is good for the South African economy

The majority of people who apply for pay-day loans do so carefully. They weigh up their options, and make sure they can pay the loan back when it is due. Having done their research carefully, some people are now beginning to use pay-day loans to start up their own on line businesses. According to a recent article in The-South-African.com there is a tough start-up market emerging, mostly reliant on self-funding.

Pay-day loans are a good product that offers an alternative form of lending. With responsible lenders and responsible borrowers, they can add a significant boost to the South African economy.