Loading...

Follow Modest Money on Feedspot


Valid
or
Continue with Google
Continue with Facebook

For those with friends, you may have noticed more and more of them expressing an interest in Forex trading. From subtle conversational changes from football to the Euro to segues from girl talk to Japanese Yen, you may be wondering why so many are suddenly so keen on financial exchange.

The answer is likely subject to writing an essay. Maybe one which you would probably be inclined to pay an expert to do on your behalf from services like Write my Essay. While there are many reasons why folks are developing a taste for trading – and especially Forex trading – more commonly, it may lie in the greater exposure trading now enjoys online. It is not just Forex which has caught wider attention, however. Binary options, spread betting, and day trading all seem to be enjoying steady levels of popularity due to the sheer number of novices and would-be traders opening to the attractive advertisements and incentives from brokers.

Ease of Access

Forex trading’s popularity is likely attributable to its ease of access, which is globally pertinent. Traders from across the planet have the opportunity to get involved providing they have a computer/device and internet access. This represents convenience, as these same traders can effectively get involved from pretty much anywhere, and on the go.

The days of trading being a practice which is explicitly reserved for financial-whizzes and those who had a professional, daily interest, more and more folk from all walks of life believe that there is a great opportunity in Forex trading. On a personal level, you may be aware of individuals who work as truck drivers or accountants who have a serious interest in Forex trading, who enjoy varying levels of success. This is one of the great benefits of the internet.

When the Markets are Open

Another key factor behind the success of Forex trading is the fact that the markets are open 24-hours per day, Monday to Friday. Unlike the stock market, this provides an opportunity for individuals to work a day job and engage in trading currencies when they get home. As Forex trading is global, markets will always be open somewhere around the world.

This is a very attractive feature of Forex and one which has definitely instigated a large number of participants getting involved. The production of software and tools from brokers makes it easier than ever to trade currencies and keep on track of your choices in real time. Whether it’s Pound Sterling (GBP) or the US Dollar (USD) in your crosshairs, depending on your location, you should always have the chance to trade.

It Provides a Chance to Earn Extra Money

Forex trading can be lucrative, providing you understand the parameters, risks, and general functionality of the market. Flipping the bird to your boss before appointing yourself as a trading extraordinaire is not the smartest idea in the world if you don’t have the knowledge and capital. Those a little savvier will, of course, do the math and research before committing to dropping everything and pricing up that yacht.

Surprisingly enough, this is not always the case. The allure of making millions often leads novice traders to focus explicitly on their new-found interest. There have been stories of traders making significant money, which has led to others blindly using Forex trading as a life-changer. This has also led to a massive influx of participants, who trust the Instagram photos and testaments of random internet dudes and want in on the action.

While it is a genuine way to make money, it requires a lot of practice, understanding, and expertise to get to the level of a Forex Guru.

Photo Source

The post Why Forex Trading is Still Growing in Popularity in 2018 appeared first on Modest Money.

Read Full Article
Visit website
  • Show original
  • .
  • Share
  • .
  • Favorite
  • .
  • Email
  • .
  • Add Tags 

When it comes to pioneering fintechs, German corporation NAGA Group is one of the outstanding and prominent examples. The company’s objective is nothing less than to revolutionize the financial sector, focusing on the customer’s desire to have their financials needs met through uncompromising digitalization and innovative apps. Hence, the principle “mobile first” is an essential part of the company’s strategic guidelines as well as setting up new services at a top speed in. Consequentially, NAGA is the first and only financial firm in the world having had an IPO and ICO within its first two years of its existence. Now, with its innovation NAGA Trader, it aims to completely change and democratize the private investment market whose methods seem to be rather old fashioned.

Depending on their individual functions, consultants, analysts, rating agencies and financial journalists carefully examine the market and recommend investment classes, currencies and financial products to investors. If the investor finds the information attractive, the fund, the share or the bond is purchased from a bank or a financial intermediary. This is how the division of tasks has been regulated to date when making financial investments.

There are also, of course, friends – real friends. These also provide tips on investments (whether asked or not) which, in retrospect, may have resulted in break-ups. With this actually quite antiquated approach, it comes therefore as no surprise that up-and-coming fintechs have also set their sights on this market segment: as of late, “Social Trading” has now entered the scene. This links communicative Web 2.0 accomplishments with direct stock exchange trading. Using specialised platforms, investors can now find suitable groups where they can chat, exchange information and follow each other.

This, however, has nothing to do with holiday photos or comments on private interests and hobbies. Instead, followers can see with which investment strategy and with which portfolio someone else is successful. They can then copy these recipes and, for example, use the same app to purchase the stock immediately. With its social trading network NAGA TRADER, the fintech The NAGA Group, based in Hamburg, is one provider and innovative pioneer in this novel idea. With the app, formerly known as SwipeStox, members can follow other members and directly copy their selections of financial products.

NAGA management board member, Benjamin Bilski – listed by Forbes as one of this year’s “30 most important technology pioneers in Europe under 30 years of age” – explains the philosophy behind this method: “It was really paradoxical! Up until now, all possible market participants – who have rather pursued their own interests – recommended financial investments. Discussion forums have also been around for a long time, but there wasn’t any one place where you could systematically follow successful traders – whilst also buying the products at the same time. With NAGA Trader, we’ve changed this.” Everyone can use their amounts and investment decisions to generate their own followers. If you can convince them of the contents of the respective portfolio, the customer receives a bonus.

Comprehensive news, discussions and a TV programme all round the service nicely off. Transactions are settled in classic currencies – or in the company’s own crypto money, NAGA Coin. In turn, the NAGA Wallet – which bundles all NAGA products and services together – can be used to manage and store the values.

Typical social media functionality plays a decisive role in the application’s success: “Every social media platform lives from a large and active community which, above all, is interactive. So, it’s have, follow, link and comment on interesting content. In addition to this and especially for financial products, people have a huge need for information. With NAGA Trader, we have created attractive offers for both”, Bilski told us.

Usually with social trading fintechs, only exchange-traded or regulated products can be bought and sold. However, there are no regulations on the manner of investment consultation itself, nor on the interactive generation of information and opinions. The big question therefore for investors is what mechanisms guarantee that a follower can trust the trader, his/her experience and opinion when replicating this particular portfolio?

This question has already been answered for NAGA Trader, meaning that Benjamin Bilski give the all-clear: “With our self-learning algorithms, we index the users’ activity, their actual performance – and create a so-called risk score. This ensures that traders are ‘real’ and do not trade with automated systems or try to ‘cover up’ trades. For example, some traders keep extra negative positions open to keep up the high level of their own performance based only on positive and closed trades. We’re aware of this, just as much as a regular interaction rate within the application. Because only active and real traders are good traders.”

However, investment funds or asset managers also have to take criticism for their lack of transparency. They’re not exactly known to be independent. In fact, they often pursue their own interests or even trade only a tiny selection of products from one supplier. In general, there are also no forums for discussions where you can comment live on the performance. Advocates of social trading therefore also find that it makes the entire investment process becomes much more transparent – especially as the community with its collective intelligence, can appraise every trader in real time. NAGA management board member, Bilski, therefore regards social trading not only as a successful supplement, but even as “democratisation of the investment market”.

The NAGA WALLET is here! - YouTube

Photo Source

The post NAGA Paves the Way for Our Financial Future appeared first on Modest Money.

Read Full Article
Visit website
  • Show original
  • .
  • Share
  • .
  • Favorite
  • .
  • Email
  • .
  • Add Tags 

Read the newspaper or magazines or watch the television and you will see capitalism is under attack. Inequality reigns supreme. While it is true that there will be inequality in capitalism, what many overlook is that with capitalism, you control your destiny.

You can choose to improve your situation and get out of life exactly what you want. Without capitalism, this isn’t an option. You are stuck in your current situation forever.

Let’s look at all of the benefits of capitalism to see why it is truly great.

3 Basic Reasons Why Capitalism Is Great #1. It Promotes Freedom

One of the greatest benefits of capitalism is that it promotes freedom. You have almost unlimited choices thanks to capitalism. You can chose what brands of food you buy, what brands of clothes you wear, and what type of car you drive. You can even choose to invest in the stock market or not.

All of these choices are a direct result of capitalism. Without it, you might be limited to one brand of clothing and no car at all.

Furthermore, it allows companies and businesses to set prices they want to charge for their services. They can choose to set a higher price and earn more revenue from a smaller pool of customers or they can set a lower price and have a larger pool of customers.

And as the client, you can choose who you want to do business with. Without capitalism, many of the choices and things we take for granted would be gone.

#2. Allows For Opportunity

Another benefit of capitalism is opportunity. No matter what your situation, you have the opportunity to improve. You can work on the side to increase your income. You could go back to school to earn a degree and get a different job.

The possibilities for opportunity are not limited to you. Some make the mistake of thinking opportunity is limited, for example, not being able to attend college because the price is unaffordable. But this is flawed thinking.

You can attend college. You just have to figure out how to make it affordable to you. This could mean going to a community college for a few years, or going to school part time. You might have to work jobs on the side to earn more money or even earn scholarships and grants. In some cases, you might have to use debt to attend college.

While going this route isn’t going to be easy, it is still possible. And you have this opportunity thanks to capitalism.

Without capitalism, you don’t have much, if any opportunity to improve upon your situation. What you have is what you have and that is what you will have forever.

#3. Promotes Hard Work

Finally, capitalism promotes hard work. If you want something, anything, you just have to work hard to achieve it. Let’s say you want to become a millionaire one day. Thanks you capitalism, with hard work you can get there.

All you need to do is get a decent paying job and then make the choices each day on what and what not to spend your money on. Then you save and invest the rest. If you can save and invest a good portion of your income, say 15% annually, odds are you will become a millionaire one day.

Final Thoughts

Capitalism is a great thing. It offers a wealth of benefits to the people that live under its reign. It allows you to have choices, work hard, and improve your circumstances. It doesn’t have a level playing field for all participants, but that is part of its beauty.

You can start off on the lower end of the ladder and work your way up. Alternatively, if you aren’t smart financially, you can easily start at the top and fall down too.

But at the end of the day, it allows for doors to be open and for you to strive for and be exactly what you want, no questions asked.

Photo Source

The post 3 Basic Reasons Why Capitalism Is Great appeared first on Modest Money.

Read Full Article
Visit website
  • Show original
  • .
  • Share
  • .
  • Favorite
  • .
  • Email
  • .
  • Add Tags 

If you’re thinking about getting into the real estate market with your first investment property, there are a few things to consider before you jump straight in.

While property can prove to be a great investment, if you don’t do your research there’s a very good chance you could find yourself with a property that ends up costing you more than it makes you.

To set you up for a successful venture into the world of property investment, here are some tips to help guide you through the process and come out on top.

Familiarise yourself with the market

The first step for any new property investor is to familiarise yourself with the market.

Start by browsing through a real estate listing website to get an understanding of what properties in your preferred areas are selling for, and the weekly or monthly rate rental they’re being advertised at. Most leading real estate listing websites will also provide access to a wealth of useful data and statistics aimed at investors, including median sales prices and average rental returns throughout the area which can give you a good idea of the current market conditions.

It’s also worth speaking to a few real estate agents who work in the area to gain a more in-depth understanding of what’s happening in the local market, including how easy or difficult it is to find good tenants and how long properties are typically on the market for in case you need to sell quickly.

Know what you can afford

The next thing you should consider is how much you can afford to spend—and this doesn’t just relate to how much your lender says you can borrow.

Because you’re purchasing the property as an investment rather than as a property to live in yourself, it’s integral that you make your decisions using your head rather than your heart, with the anticipated financial performance of the property forming the foundation for your decision-making.

While it can be difficult to predict exactly what’s going to happen in any real estate market, you should consider the historical sales growth data in the suburb and surrounding suburbs to get an idea of the type of capital growth you can expect to achieve. This is particularly important if the property will be negatively geared to ensure you can offset any losses.

You’ll also need to consider if you’ll have enough disposable income to cover the costs of a vacant property and whether you can afford to make higher repayments if there is a rise in interest rates.

Pick the right property

Finally, it’s important you select the right property for what you’re looking for, considering if it will be a smarter move to purchase an established property or build a new property.

Whether you’re considering an apartment, house or unit, there are a range of benefits to purchasing an established property, with the key benefit being that you can move tenants in straight away and start earning rental income sooner. Because they’re generally also located in more established suburbs, it’s likely they’ll also generate more capital growth. However, the downside to purchasing an older property is the need for more ongoing maintenance which as the owner, you will be liable for.

On the other hand, there can also be a range of benefits to buying a new property like an off-the-plan apartment, or a house and land package like these home builders in Melbourne offer. Because every element of the property is brand new, it’s unlikely the property will require a lot of maintenance and it should be relatively easy to attract tenants. When you build in a new or emerging suburb, the property may also come with a more attractive price tag compared to some expensive city markets, and depending where you’re building, may also come with a range of tax benefits and incentives which are well worth investigating.

Ultimately, whatever type of property you’re looking at, with a little research and some careful consideration your property investment journey could prove to be the smartest move you ever make!

Photo Source

The post Top Tips for First Time Property Investors appeared first on Modest Money.

Read Full Article
Visit website
  • Show original
  • .
  • Share
  • .
  • Favorite
  • .
  • Email
  • .
  • Add Tags 

Here are some lessons about building wealth I’ve learned from Jeff Bezos, the CEO of Amazon.com, during my short time working with his company.

  1. Drive down costs. For companies this means don’t overpay for input costs. If there are capable workers who are happy to do the job for $15/hr, don’t offer anything higher for this position. If nobody is willing to do it for less, consider investing in automation. For me this means I should cut my spending wherever I can, like on snacks. Find ways to save time such as combining my errands. Minimize redundancies like reducing the number of investment accounts I have. The more resource I save the faster my net worth will grow.
  2. Foster innovation. Instead of thinking about what’s working right now, Jeff recommends thinking about what is likely to work in the future. I should consider how the economy might change. Ask myself which way is the job market moving? Which skills do I need to develop to stay relevant in tomorrow’s art industry? By getting good at adapting to change I will be able to stay ahead of the curve. Being laid off in February made me realize I did not adequately prepare for the future. I did not innovate and improve my skill sets. But I have learned from this mistake. Thanks to Jeff Bezos I now understand the importance of thinking ahead. Next time I will see the changes coming, adapt, and be ahead of the curve.
  3. Choose long-term value over short-term results. Similar to a grandmaster chess player Jeff believes thinking 5 or 6 moves ahead is the best way to win in business. This is true for personal finance too. Some people didn’t understand why I invested money into stocks in 2009 instead of paying down my mortgage. I admit reducing my debt is a good feeling. But that’s only in the short term. Nearly 10 years later I’m very happy I chose to invest because the returns have outpaced the cost of borrowing money over this time period. In the short term, buying blue-chip dividend stocks today may not give me the high returns as a more exciting stock such as Spotify, which recently had its IPO. But 10 years from now my dividend stock will probably give me an overall higher return. Creating a Facebook post and waiting for people to like it will give me some level of satisfaction today, but will not help me in the long run. To build more wealth I only have to ask myself, “what can I do today that would make me the most money 10 years from now?”

From a personal finance perspective, doing all three things above should grow our net worth. Driving down costs means spending less money. Fostering innovation is about finding more efficient ways to do the same thing – for example, utilize online banking services instead of commuting to the physical location. And investing for the long term means making wise decisions that will withstand the test of time and not chase after hot story stocks.

Amazon has really ramped up its hiring over these last few years. 5 years ago it had about the same number of employees as Microsoft. Today it’s grown to about 5 times Microsoft’s workforce. With over 560,000 total Amazon employees around the world there’s no telling how much further it will expand.

It is astonishing how Jeff Bezos is able to balance the interests of everyone who’s involved with the company. Amazon’s customers are overwhelmingly satisfied with its services. Prices are cheap, shipping is fast. What’s not to like? Putting customers first really pays off. The Amazonians are generally satisfied with their working environment too. I’ve talked to many coworkers and everyone seems to like it there. Amazon treats and pays everyone fairly, which is why the majority of its employees are opposed to unionization. And finally Amazon shareholders have been handsomely rewarded. About 5 years ago I saw a lot of potential in Jeff Bezos and purchased 10 shares of AMZN for $290/share. Today they are worth $1,580/share. Not only did Jeff make himself rich, but he’s also made a ton of money for other people.

The post Investment Lessons from Jeff Bezos appeared first on Modest Money.

Read Full Article
Visit website
  • Show original
  • .
  • Share
  • .
  • Favorite
  • .
  • Email
  • .
  • Add Tags 

If you never lived in a development with a homeowners association, you might think that having your lawn mowed for you and not having to take care of the swimming pool sounds great. You might even think you would save a lot of money.

But the truth is that homeowners associations can be a nightmare to deal with. From ever rising fees, special assessments and myriad of rules to follow, some homeowners wish they never bought a home that was in a development overseen by an HOA.

Before you buy a house that has a homeowners association, here are 4 terrifying things you need to know.

4 Terrifying Things To Know About Homeowners Associations #1. The Fees Go Up….A Lot

When you are considering buying a house that has a homeowners association, don’t be fooled into thinking that the monthly or quarterly fee you would be paying now will be the same next year or even the next.

The fees you pay increase. And in some cases every single year. This makes sense when you think about how economics works. Every year, thanks to inflation, the prices for goods and services increases. Therefore a homeowners association has to increase the fees that homeowners pay in order to continue paying for the services it provides.

When I owned a condo in a development that had an HOA, my annual fees went up every year but one. That’s 8 times in 9 years. And the average increase was around 3% each year.

That might not sound like a like, but when you are getting a 3% raise at work, you will have a tough time getting ahead financially.

#2. Some Homeowners Associations Don’t Care

It might sound nice to have an HOA that doesn’t care. But I don’t mean that they don’t care about enforcing rules, I am talking about a homeowners association that doesn’t care about managing the development.

Grass won’t be cut as often as it should be and the landscaping leaves a lot to be desired. Even the units are slowly falling apart because regular maintenance isn’t being completed.

But they are still collecting your monthly dues. Before you buy in an area with an HOA, make sure they are keeping up with their duties. It might not sound like an issue now, but when you go to sell your house and the development looks like a dump, you are going to have a hard time selling or even be forced sell at a loss.

#3. You’ll Get Hit With Special Assessments

When I bought my house, I had no clue about special assessment fees that the homeowners associations charged. I found out though that winter. Even know the HOA had budgeted for snow removal, we got dumped on and the costs for snow removal exceeded the budgeted amount.

Guess who pays to make up the difference? The homeowners. In addition to my usual April bill, I had an additional $300 snow removal assessment to pay. In fact, I had to pay this special assessment 5 times I lived there.

And don’t think for a minute when the HOA doesn’t exceed the budget they give you money back. Nope, they keep the money for other improvements.

If you are not worried about this because you don’t live in a snowy climate, special assessments don’t end there. If the parking lot needs paving, you will pay for it. If your building needs a new roof, you will pay for it.

The bottom line is to put some money aside in a savings account, because odds are you are going to need it at some point.

#4. You Have To Follow Rules

Homeowners associations have all sorts of rules you have to follow. If you don’t, they fine you. In some cases, if they fine you enough times, they have the right to force you out! When I bought my condo, the rulebook was 80 pages long, all single spaced.

I couldn’t have a grill. There were certain pets I couldn’t own. My front door had to be a certain color. In fact, when I wanted to paint my front door because it was looking old and weathered, I had to buy the exact color red paint that the homeowners association approved. It wasn’t red, it was cardinal red.

So before you buy a home in a development with an HOA, make sure you get the rulebook ahead of time and read through it. It will save you a lot of potential headaches down the road.

Final Thoughts

So there are 4 terrifying things you need to know about homeowners associations. Don’t get me wrong, there are some HOA’s out there that are great. They manage the property well and they budget smart so you don’t have to deal with ever increasing fees.

Sadly though there are more bad HOA’s than good. So be sure to do your homework before you buy a house in a development that is overseen by a homeowners association. You will save yourself a lot of potential stress.

Photo Source

The post 4 Terrifying Things to Know About Homeowners Associations appeared first on Modest Money.

Read Full Article
Visit website
  • Show original
  • .
  • Share
  • .
  • Favorite
  • .
  • Email
  • .
  • Add Tags 

The pioneering electric car company Tesla Inc (NASDAQ: TSLA) has suffered a number of public challenges since the beginning of 2018. It’s high profile CEO, Elon Musk, calls the period a production hell. He is known for pulling all-nighters on the factory floor and sleeping in the office. There are many things plaguing Tesla these days. But the most important thing on Musk’s mind these days is solving the production delays for the new Tesla model 3 sedan.

The model 3 is the first affordable, mass market electric car. The entire business of Tesla hinges on the success of this new car. Last year Musk was quite confident Tesla could make about 5,000 new cars per week by the end of 2017.

Looks like we can reach 20,000 Model 3 cars per month in Dec

— Elon Musk (@elonmusk) July 3, 2017


However, the reality is far from his expectations. The production pipeline has been experiencing problems which has hindered the company’s output. According to a recent shareholder’s report, there was an average production rate of 830 cars per week in the first quarter of 2018. That’s less than 20% of the goal. In February of 2018 production was even halted for a week. As for the cause of the slow production, “excessive automation at Tesla was a mistake,” Elon Musk mentioned in the CBS morning show which gave a sneak peak into what’s goes on in the factory. “We got complacent about some of the things that are in our technology. We’ve put too much new technology into the Model 3 all at once but this should have been staged,” he clarified. High tech doesn’t just go into the cars, but it also builds them. The Tesla plant is widely regarded as the most robotics driven assembly factory in the world.

The forecast has now been pushed to 5,000 cars by later this summer. But other complications may get in the way of that. Tesla recently has decided to shut down its assembly line again for six days to fix some issues.

As of last month Tesla was making about 2,000 Model 3s per week. So from a big picture point of view, the company would be able to produce and deliver about 220,000 in 2018. That’s not far from 330,000 cars sold by BMW in the us in 2017. But when the Tesla Model 3 was announced, an estimated 400,000 pre-orders were initially made for the car. Even if that number did drop off it’s still a record amount for the auto industry in terms of prospective owners. No other manufactures has had so many advanced vehicle orders. But the question still remains as to just how long Tesla customers will have to wait to get theirs.

Some people may say that Musk is over promising and under delivering. That’s why Tesla stock is often seen as a story stock. Another unknown factor is the rising competition the car maker is facing. Ferrari and Buick are getting into electric cars now as well. How much longer will investors trust Tesla’s story and future promises. Just because it’s the first to enter a new market doesn’t necessarily mean it’ll remain successful in the long run.

Other concerns investors have is the high amount of debt on Tesla’s balance sheet, and how the company seems to be burning through money. One thing is for sure – without Telsa, other car companies wouldn’t be engineering and building electric cars as fast. Musk is paving a path for the future, which is good for society as a whole but in terms of an investment, I would stay away from this stock until the company has proven that it can reliably hit production targets.

This author does not have any shares in TSLA and does not plan to own any within 72 hours of this post.

Research TSLA
Show Tweets Mentioning TSLAHide Tweets Mentioning TSLAShow Tweets Mentioning TSLA

The post Tesla’s Greatest Challenge Yet appeared first on Modest Money.

Read Full Article
Visit website
  • Show original
  • .
  • Share
  • .
  • Favorite
  • .
  • Email
  • .
  • Add Tags 

ETFs and index funds are all the rage right now. And for good reason.

They provide essentially the same results for a substantially cheaper price than mutual funds, and people are getting fed up with paying their banks for lackluster results.

I am all for that, you should be saving and investing your money where you can get the most out of it. In an age where the cost of living is ridiculously expensive, you just can’t be wasting up to one third of your portfolio in fees.

But I just can’t justify switching my portfolio over from an individual stock picking strategy to ETFs or index funds. Why?

There is more potential in individual stock analysis

This is pretty cut and dry. You’re never going to pick lets say, a marketing tracking ETF and get it to nab you a ten bagger in 5 years.

With individual stocks, the potential is definitely there, and that is why I just can’t seem to make the transition.

I’ve purchased two stocks over the last 8 months through thorough analysis and am now sitting on 300 percent in gains on those two stocks. If you’re curious, the stocks are SHOP.TO and WEED.TO.

My portfolio contains over 20 individual stocks. The two biggest holdings in my portfolio were Shopify and Canopy Growth. Why?

Because I knew they had a high potential for growth, and now my portfolio is literally years ahead of someone who tried to focus on an ETF or index fund strategy.

Individual stock picking isn’t without risk, I know this

Now, you may say I got lucky with those two picks. But I can tell you right now they were carefully analyzed and deemed more than likely to go up rather than down.

As a former professional poker player, I can tell you this:

You will not be right every time, you just need to be right more times than you are wrong.

You can establish a strong edge as they like to call it in poker. As long as you dont place all your eggs in one basket and minimize your losses, taking the position that provides you with an edge will in the long run deem to be profitable, regardless of the actual results at the present time.

Nabbing these large returns can add up exponentially for when you move your portfolio to a more passive approach in retirement

I advocate individual stock picking over ETFs and Index Funds. But, at a later age or stage of your career, I definitely would advise to move towards a more passive approach to investing.

This could be done via Index Funds, ETFs, or even bonds. But you want to maximize the amount that is in your portfolio at an early age so that you’re better prepared to retire, or even retire early.

To do so you have to take risk, and individually picking smart growth stocks can get you there.

Note the bolded. I’m not advocating you go out and invest 50 percent of your portfolio on some hot penny stock. That’s not the way to go about things.

Intelligent,careful and well thought out investments in high potential growth stocks is the best way to accelerate your portfolio.

Who did I learn all this from?

Well, I can sum it up by saying I’ve read a ton of Peter Lynch books. He had a huge influence on my investment mentality and it’s paying dividends early on in my investing career.

You’re gonna lose some investments you thought were for sure winners. You’re also going to strike oil where you thought the well was completely dry.

The fact is, at a young age a certain amount of your portfolio has to be dedicated to making educated decisions on riskier stocks. For me the magic number was 30 percent. I own 3 stocks I would determine to be speculative growth stocks. SHOP.TO,WEED.TO and PKI.TO.

It all depends on your risk tolerance

I understand some people can’t stomach even marginal risk. Its your money and you’ve worked hard for it. As long as your money is earning something you’re doing it right.

There’s also this. If you don’t know what you’re doing in terms of picking high potential growth stocks, you may as well just head to the casino and play Roulette instead of attempting to purchase them.

I’ve developed a growth stock analysis guide on Stocktrades, and you can head there and sign up to receive it if you wish. Its a 5 part guide developed by us free to you, and it will show you how to navigate through these stocks.

Good luck, and here’s to your next ten bagger!

Photo Source

The post Why I Will Always Prefer Stocks Over ETFs appeared first on Modest Money.

Read Full Article
Visit website
  • Show original
  • .
  • Share
  • .
  • Favorite
  • .
  • Email
  • .
  • Add Tags 

There are many possible unforeseen dangers that can threaten an unprotected home. Home security cameras are an effective way to keep your home secure and safe from outside threats. There are many options for installing a home security system. The ever-increasing consumer technology at your disposal allows for a do-it-yourself approach that saves you money. This article will offer advice on how to prepare for and install a security camera system that will provide you the comfort of a safe and protected home environment.

Cost

The cost of a home security system can be greatly reduced by installing it yourself. Most financial advisor companies would agree this is a wise investment. Despite the long-term cost-benefit analysis being positive, purchasing and maintaining the system can be very pricey upfront. The costs of home security cameras may range from as little as $300 to a couple of thousand dollars. The price difference has to do with how advanced the technology of the camera and the number of cameras needed to secure your premises. Professional installation may cost more over time as you may have to pay for monthly monitoring charges.

Preparation and Technological Concerns

There are aspects of your home security system that you do not want to cut corners on to save yourself from bigger troubles down the line. You must ensure that you have the proper number of cameras and length of cable. If you’re wondering where to start, check out a few of the best home security systems online. Another detail is to make sure that you have a great number of megabytes or terabytes for digital storage. A cloud-based storage system will provide you ample space to store your hours of recording.

Another precaution you must plan for is the camera’s power source. Analog powered connections, USB or ethernet cables can be installed any place where you do not mind running wires. Even battery-powered cameras need a power source. Some battery powered security cameras do not have to be placed near wall sockets, while others will have to be plugged into an outlet. Also, with battery-powered cameras, you must be aware of how close they are to the router. A weak connection will overexert the camera’s battery causing it to drain faster.

Camera Placement

Since the ground floor of your home is the most natural entry point, you will need a camera to cover each entranceway including the garage and basement doors. You may want to have more than one camera at central entry points to gather more detail about the possible intruder. When it comes to front doors, backdoors and garages it is wise to place cameras inside and outside of the home to track entry from multiple angles. If budget allows, several night vision cameras are also a great idea when considering home security. You want to ensure that you are covered at all times of the day or night.

When installing your own camera security system, you may have to drill a few holes to ensure they can all be installed in the essential places. You must inspect the area around where you want to drill as thoroughly as possible. Avoid areas that have water pipes and electrical wires. Additionally, try not to run wires through insulation but around it. Shut off electrical power and water in the area of installation in case you unintentionally puncture electrical wire or a water pipe.

After Installation

Most security systems allow for remote viewing through your computer, tablet or smartphone so spend ample time tweaking the system to fit your needs. If help is needed, contact technical support to ensure everything is set up properly. Taking these precautions will ensure a home that is efficiently surveilled and well protected.

Photo Source

The post Financially Wise Home Security Camera Installation appeared first on Modest Money.

Read Full Article
Visit website
  • Show original
  • .
  • Share
  • .
  • Favorite
  • .
  • Email
  • .
  • Add Tags 

When you’re borrowing money, whatever the reason may be, it is essential to read the fine print and comprehend everything you are signing up for. Many people end up in more trouble than they started in because they failed to take the time to understand what’s required of them.

It’s understandable, as many people find themselves in a situation where they need cash right away (learn more about getcashnow.net). To best protect yourself as a borrower, you want to ensure the lender you are working with adheres to the Federally mandated Truth in Lending Act (TILA). What is this law and how will it help you? Here’s what you need to know:

What is the Truth in Lending Act

The Truth in Lending Act was passed in the late 1960s to oversee borrowing situations between lenders and consumers. The law is intended to protect borrowers by mandating that lenders share key information regarding a loan before the borrower is contractually obligated to paying it. This means that while there may be small print, there is nothing explicitly hidden that could damage the borrower down the road. In a nutshell, it’s the difference between getting a loan from a recognized institution and signing up for a mob loan that you’ll regret for the rest of your life.

The Truth in Lending Act mandates that lenders must share the:

  • annual percentage rate (APR);
  • term of the loan; and
  • total costs the borrower will incur.

The information must be shared in an upfront, noticeable way on documentation presented to the potential borrower before they sign anything. Depending on the loan and organization, they may also be required to have the information repeated on subsequent statements and correspondence to keep it fresh in the borrower’s mind.

So, regarding small print, if the information governed by the Truth in Lending Act is hard to see on a document, you could make an argument that the lender is not adhering to the law. Regardless, it’s important to be aware of your rights and use this knowledge when evaluating a potential lender.

Types of Loans Covered by TILA

The Truth in Lending Act covers both open-ended revolving credit and closed-end credit agreements. For example, your credit card would be an example of open-ended credit. Before receiving your card, you should have been presented with paperwork outlining all the information listed above. Closed-end credit would be something like an installment loan or mortgage. Essentially, it’s something you pay back by a certain date with a scheduled payment plan.

What TILA Doesn’t Cover

The Truth in Lending Act covers almost everything, but not quite. For example, interest rates charged by a lender as a part of their service offering are not regulated by TILA. Furthermore, beyond the basics of discriminatory practices, TILA does not dictate to whom a lender approves or declines for credit. As long as they can prove they aren’t breaking any laws surrounding discrimination, they may lend to whoever they wish.

Other Things to Know

In addition to being presented with information about the loan itself, you are also entitled to receiving a documented explanation of the type of loan you are getting and how it works. Lenders are legally not allowed to show you only one option that would best benefit them. While they may make a recommendation, they must also show you all loan options available that suit your needs.

The Truth in Lending Act also gives borrowers the right of rescission, meaning if you decide within three days that the loan was a mistake, you can back out of the contract without penalty. All of these rules are to help protect a consumer from predatory practices and give them room to correct their actions if they felt pressured into taking a loan.

Now that you know your rights as a borrower, you can move forward with your plans and take comfort in the fact that there are rules in place to keep you safe.

The post What is the Truth in Lending Act? appeared first on Modest Money.

Read Full Article
Visit website

Read for later

Articles marked as Favorite are saved for later viewing.
close
  • Show original
  • .
  • Share
  • .
  • Favorite
  • .
  • Email
  • .
  • Add Tags 

Separate tags by commas
To access this feature, please upgrade your account.
Start your free month
Free Preview