This is a video I found on YouTube by InformedTrades.com. Hopefully the information I provide will be useful to everyone.
The second lesson of two on interest rates, why they are so important to the stock market and to traders and investors in the stock, futures, and forex markets with a...
Saturday, May 9, 2009
Build a Financial Planning Business
Financial planning is gaining ground as a popular career choice. Individuals in this profession assist clients with money management both for the short- and long-term. A career in financial planning can be extremely rewarding. The following steps will guide you as you start your new business.
Get the right education. Though a degree is not needed to start your own financial planning business, it is almost impossible to form a legitimate and successful venture. Consider obtaining a degree in accounting, business, economics or finance.
Consider accreditation and membership from a professional industry organization. Though certification or a license is not necessary to be a financial planner, becoming a member of a professional organization has benefits including access to networking and educational opportunities. This can only help you with credibility and building a client base.
Decide whether you want to provide additional services such as the trading of bonds, stocks, mutual funds, or helping clients with real estate investments. Make sure to secure the necessary licenses applicable to your state.
Create your business. Your next step will be to file the necessary paperwork to create the framework of your business. This means registering your business name, deciding what type of company you want to start, and opening up the necessary bank and credit accounts.
Invest in promotion. Now that you have your company legally set up, it's time to promote your services. You should create a marketing strategy based off of your budget, target population and long-term goals. The more viable promotion that you can introduce to the market, the more clients you will attract.
Create relationships with financial institutions and other businesses in your area. Once you have started to get a client base as well as a reputation, it's time to start making as many business connections as you can. Having local business connections will only aid in new client referrals.
Get the right education. Though a degree is not needed to start your own financial planning business, it is almost impossible to form a legitimate and successful venture. Consider obtaining a degree in accounting, business, economics or finance.
Consider accreditation and membership from a professional industry organization. Though certification or a license is not necessary to be a financial planner, becoming a member of a professional organization has benefits including access to networking and educational opportunities. This can only help you with credibility and building a client base.
Decide whether you want to provide additional services such as the trading of bonds, stocks, mutual funds, or helping clients with real estate investments. Make sure to secure the necessary licenses applicable to your state.
Create your business. Your next step will be to file the necessary paperwork to create the framework of your business. This means registering your business name, deciding what type of company you want to start, and opening up the necessary bank and credit accounts.
Invest in promotion. Now that you have your company legally set up, it's time to promote your services. You should create a marketing strategy based off of your budget, target population and long-term goals. The more viable promotion that you can introduce to the market, the more clients you will attract.
Create relationships with financial institutions and other businesses in your area. Once you have started to get a client base as well as a reputation, it's time to start making as many business connections as you can. Having local business connections will only aid in new client referrals.
Tips & Warnings
- Even though there is not a specific licensing or education requirement to run a financial planning business, remember that you are going to be helping your clients with money. If you do not know what you are doing you could do a great amount of damage to the finances of your clients.
Monday, April 13, 2009
56. How Interest Rates Move Markets - What Traders Know
This is a video I found on YouTube by InformedTrades.com. Hopefully the information I provide will be useful to everyone.
A lesson on the second two components of the US Economy the Private and Government Sector and how these each affect forex, futures, and stock traders. In our last...
A lesson on the second two components of the US Economy the Private and Government Sector and how these each affect forex, futures, and stock traders. In our last...
Use the current ratio when evaluating a stock
This article will tell the reader how to calculate a company's current ratio and exactly what this figure tells the investor about the company.
The first thing that you will need to do is obtain a company's balance sheet. Lets say that you wanted to calculate Wal-Mart's current ratio. An easy way to get their balance sheet is to go to www.yahoo.com and type in their ticker symbol in the quote area. On the left side of the page is a list of different pieces of data about the company. Under the Financial tab click "Balance Sheet". Next Click the Annual tab at the top.
Now we need to introduce the Current Ratio formula. It is as follows:
Current Assets / Current Liabilities
This step is easy. On the Balance Sheet find the Total Current Assets title and get their latest value recorded. Now under the Liabilities section locate the Total Liabilities section and get the latest value recorded. Now just plug these values into the formula discussed above. For example here is WMT's current ratio:
47,585,000 / 58,454,000 = .8140 (Current Ratio)
Now we need to understand what this figure means. Simply Put this figure tells us that Wal-Mart can convert their current assets to cash and pay off about 81% of their current Liabilities.
You might be asking yourself "Is this Good?" Now you might want to evaluate what some of WMT's competitors current ratio's are. Costco has a current ratio of 1.058 and Target has a Current Ratio of 1.529. Both of these companies can pay off all of their current liabilities and still have current assets left over. In this evaluation Target has the most favorable current ratio because they can pay off their liabilities a little over 1.5x with their current assets. Remember to always compare a companies current ratio to other companies within the same industry. In this example Wal-Mart would still have about 18-19% of their current liabilities remaining they used their current assets to pay off their obligations.
The first thing that you will need to do is obtain a company's balance sheet. Lets say that you wanted to calculate Wal-Mart's current ratio. An easy way to get their balance sheet is to go to www.yahoo.com and type in their ticker symbol in the quote area. On the left side of the page is a list of different pieces of data about the company. Under the Financial tab click "Balance Sheet". Next Click the Annual tab at the top.
Current Assets / Current Liabilities
47,585,000 / 58,454,000 = .8140 (Current Ratio)
Sunday, April 12, 2009
55. The Business Cycle and Fiscal Policy - What Traders Know
This is a video I found on YouTube by InformedTrades.com. Hopefully the information I provide will be useful to everyone.
A lesson on the second two components of the US Economy the Private and Government Sector and how these each affect forex, futures, and stock traders. In our last...
A lesson on the second two components of the US Economy the Private and Government Sector and how these each affect forex, futures, and stock traders. In our last...
How to Compare Investment Brokers
Investing is both a risky and rewarding experience. An investment can be risky due to the unknown factors such as the economy, but on the other hand, a good investment can yield a great return for the investor. There is always some level of expertise needed in order to make an informed and rewarding investment decision. By comparing investment brokers, you can seek out the best options available to assist you in securing your financial future. Use the information below to assist you in comparing investment brokers.
Surf the Internet. Today's technology makes it easy to compare investment brokers. Go to the website linked in the Resources section below, and research various investment brokers from the comfort of your home.
Find an investment broker who can accommodate your financial investment plans. Keep in mind things like stock commissions, option commissions, bond trading, mutual funds and annual fees (if applicable). Many brokers will charge a stock commission and/or option commission. Commission fees range in price anywhere from $4.95 to $19.95 or higher, depending on the broker. There are brokers who do not charge a stock commission, but they may charge an option commission, so be sure to find out what commission, if any, the broker charges.
Decide on your financial goals and choose the investment broker accordingly. Though it is possible to manage your investments on your own, many people tend to gravitate towards hiring an investment broker to manage their investments for them. Look for local advisers so you can meet with them in person. This can be very reassuring, since you can deal directly with a person and receive one-on-one attention.
Choose the investment broker that you feel offers what you need in terms of options and services provided. After deciding on the broker you feel meets your needs, carefully read their terms and agreements--really read the information they provide you and don’t just look over it. Be sure you know the services and options you are paying for in advance to eliminate any future miscommunication.
Surf the Internet. Today's technology makes it easy to compare investment brokers. Go to the website linked in the Resources section below, and research various investment brokers from the comfort of your home.
Tips & Warnings
- Make an informed decision about the options and services you want.
- Take your time to research the broker before investing.
- Never do business with a broker before seeking professional financial advice.
Tuesday, January 20, 2009
Understand Aggressive Growth Funds
The stock market and its lingo can be confusing sometimes, but it is important to know about the economy. Here is a brief tutorial on what aggressive growth funds are and what they mean for you!
Know that an aggressive growth fund is a specific type of mutual fund. Its main goal is to achieve the largest capital gains possible. Due to this, it is not as diverse as other funds that you may choose from.
Understand that aggressive growth funds are most accommodating for investors who are willing to take the higher risk to produce a bigger return on profit, but still want the safety net of a fund rather then an individual stock.
Realize that these types of growth funds are also beneficial for those who want a closer balance between mutual fund returns and stocks. However, as mentioned before, these types of mutual funds are not risk averse compared to something like an index fund.
Know that aggressive growth funds tend to produce fantastic results in good economic times, and horrible results during bad economic times like a recession.
by ehow.com
Know that an aggressive growth fund is a specific type of mutual fund. Its main goal is to achieve the largest capital gains possible. Due to this, it is not as diverse as other funds that you may choose from.
by ehow.com
54. Simple Explanation of The US Economy For Traders Part 2
This is a video I found on YouTube by InformedTrades.com. Hopefully the information I provide will be useful to everyone.
A lesson on the second two components of the US Economy the Private and Government Sector and how these each affect forex, futures, and stock traders. In our last...
A lesson on the second two components of the US Economy the Private and Government Sector and how these each affect forex, futures, and stock traders. In our last...
Monday, January 19, 2009
Thrive in Harsh Economic Times
When "The Secret" aired on Oprah, showcasing the Law of Attraction; people began to furiously think positive thoughts to magically transport what they wanted into their lives. Many unrealistic expectations were dashed because of what became better known as "wishful thinking". These same people didn't realize they needed to envision what they wanted with clarity and ask for it, be patient and take note of opportunities that came along, AND take action to bring what they wanted into their existence.
Soon after the law of attraction (via The Secret) hit the airwaves, the US economic climate began it's most noticeable landslide. No one knows where it's headed and fear is in the air. Is it possible, to not only survive, but thrive in the harsh times of today? Many believe it is. Read on to find out how from one perspective.
HAVE PATIENCE:
Many Americans can remember tough times. The Depression Era symbolized hardships of epic proportions. My grandmother is an active 96 years young and would be hard pressed to say that anything we're facing now is as bad as it was then.
In a statement, John D. Rockefeller said that "These are days when many are discouraged. In the 93 years of my life, depressions have come and gone. Prosperity has always returned and will again." (Quote from Wikipedia-see resource below.)
Patience will be key in thriving in the current harsh economy.
BE PREPARED:
Although waiting it out patiently is important, so too, is being prepared.
Be cautious what financial institutions you place your money in.
Pay equal attention to current, and future, investments. A savvy investor will realize that the current situation with the stock and real estate markets may very well be a cloaked opportunity.
With mounting food prices; you may want to watch more closely for sales, begin using coupons, store some staples in bulk amounts, eat at home more, and pare down on non-essentials.
Shop thrift stores for excellent buys on gently worn (and often times high quality, or designer, clothing).
Carpool when you can and save from making multiple trips when unnecessary.
Learn other skills to expand the value of your current work situation; or in the possiblility of losing your job and your income.
FIND PERSPECTIVE:
The harsh economic forecast is on the television, radio, internet, talked about around the water cooler and over coffee in restaurants. It's a non-stop projection of doom and gloom.
*How does one find perspective?
Start with a news fast. This is simply a break from the media -generated "top stories". It means DON'T start your day with the morning news and end it with the late news before bed. In fact, don't listen to any of it.....at least for a day or more, if you can stand it !
*Consider the following sobering thoughts and questions:
-Do you have a job? Many people in our country and all over the world are unemployed, or work for pennies.
-Do you have a home, electricity, running water, heat? Millions of people will sleep on the street, under a park bench, in an unheated shack on a dirt floor tonight. Running water is rain. Electricity is unheard of. Heat is a prayer that it won't reach low temperatures and a piece of cardboard or newspaper for a blanket.
-Have you eaten one, or more, meals today? Millions, including children and the elderly, will not eat this day...or the next. Or perhaps they will find scraps in a trash can or be fortunate enough to have rice broth.
-Do you have your health, in full, or partially? People all over America and the world will suffer, or die, today because they will not have access to medical facilities or treatment.
Perspective is a way of seeing things differently. If one chooses to chime in with the country-wide mindset of panic and forecasts of recession and depression, then that will be YOUR experience according to the Law of Attraction. This law states that what you focus on is what you will draw to you. If you think about your life, you'll realize that it is so.
Soon after the law of attraction (via The Secret) hit the airwaves, the US economic climate began it's most noticeable landslide. No one knows where it's headed and fear is in the air. Is it possible, to not only survive, but thrive in the harsh times of today? Many believe it is. Read on to find out how from one perspective.
HAVE PATIENCE:
Many Americans can remember tough times. The Depression Era symbolized hardships of epic proportions. My grandmother is an active 96 years young and would be hard pressed to say that anything we're facing now is as bad as it was then.
In a statement, John D. Rockefeller said that "These are days when many are discouraged. In the 93 years of my life, depressions have come and gone. Prosperity has always returned and will again." (Quote from Wikipedia-see resource below.)
Patience will be key in thriving in the current harsh economy.
Although waiting it out patiently is important, so too, is being prepared.
Be cautious what financial institutions you place your money in.
Pay equal attention to current, and future, investments. A savvy investor will realize that the current situation with the stock and real estate markets may very well be a cloaked opportunity.
With mounting food prices; you may want to watch more closely for sales, begin using coupons, store some staples in bulk amounts, eat at home more, and pare down on non-essentials.
Shop thrift stores for excellent buys on gently worn (and often times high quality, or designer, clothing).
Carpool when you can and save from making multiple trips when unnecessary.
Learn other skills to expand the value of your current work situation; or in the possiblility of losing your job and your income.
The harsh economic forecast is on the television, radio, internet, talked about around the water cooler and over coffee in restaurants. It's a non-stop projection of doom and gloom.
*How does one find perspective?
Start with a news fast. This is simply a break from the media -generated "top stories". It means DON'T start your day with the morning news and end it with the late news before bed. In fact, don't listen to any of it.....at least for a day or more, if you can stand it !
*Consider the following sobering thoughts and questions:
-Do you have a job? Many people in our country and all over the world are unemployed, or work for pennies.
-Do you have a home, electricity, running water, heat? Millions of people will sleep on the street, under a park bench, in an unheated shack on a dirt floor tonight. Running water is rain. Electricity is unheard of. Heat is a prayer that it won't reach low temperatures and a piece of cardboard or newspaper for a blanket.
-Have you eaten one, or more, meals today? Millions, including children and the elderly, will not eat this day...or the next. Or perhaps they will find scraps in a trash can or be fortunate enough to have rice broth.
-Do you have your health, in full, or partially? People all over America and the world will suffer, or die, today because they will not have access to medical facilities or treatment.
Perspective is a way of seeing things differently. If one chooses to chime in with the country-wide mindset of panic and forecasts of recession and depression, then that will be YOUR experience according to the Law of Attraction. This law states that what you focus on is what you will draw to you. If you think about your life, you'll realize that it is so.
Tips & Warnings
- Consider what you can be grateful for. Friends, family, a home, warm clothing, food, a job?
- Support your local merchants and business' to boost your community's economy.
- Shop "made in the USA" if possible.
- Try to maintain a more positive perspective by reading articles and blogs from others who are interested in helping people to improve their lives; physically, mentally, and spiritually - such as eHow writer and blogger: Kevin Freeman. See resource below.
- If you eat, sleep, and breathe bad news on the state of our country's economy, then by the Law of Attraction you will contribute to it.
Tell if My Money is Safe or is Your Money Safe
Is my money safe? This is a question that many people are asking in these unknown financial times. Read on to learn how to tell is your money safe?
First you need to take stock of all your investments, whether it is in savings account
Next remember that your bank investments and CDs will not drop depending on the stock market
Look at your stock investments and decide whether you think stocks will go lower. When stocks are low it is not a good time to sell. If you do not need the money then keep the money in the market and know that the stocks will rebound and decide is my money safe?
By ehow.com
First you need to take stock of all your investments, whether it is in savings account
By ehow.com
Subscribe to:
Posts (Atom)
Posts
