collection of financial tools

What is the real difference between investing and speculating? it can be defined in several ways. Some define the speculation by the use of leveraged products (warrants, turbo and other CFD), others argue that speculation is to seek gains in the near horizon as opposed to investment is long term – for my part, I like it – Finally, the last say only speculate is to risk unconsciously an important part of its heritage …

In the context of today’s article, whose purpose is I remember being able to sleep soundly without fear of collapse in the value of its assets, I will risk a different distinction:

• · Speculation is placing his money in the light of its forecasts (of economic change, growth, CAC 40, the rates …)
• · Investing means putting your money regardless of predictions (ours or others)

So if tomorrow seeing what you find by doing your shopping is rather of inflation, you think that a return to Phase 2 is the one who convinces you more and buy gold or oil you make a prediction and then you are a speculator … because you selected an area thinking it will do better than the average … and this is the case if you are right because other investors will be referred to other scenarios and lost …
You wanted to make a bet to do better than others, and it is normal for human nature!

Yes, but if you make a mistake … Well, not only you will do less well than the market but ill live your losses. It is this perspective or should I say the fear that disturbs the sleep of our friends we were talking about in the introduction!

I recently read with interest a rather old book, titled Fail Safe Investing by Harry Browne. I discovered his theory of Permanent Portfolio

To summarize, this is a portfolio continuously:

25% or
25% stocks
25% cash
25% bonds

The Permanent Portfolio maintains this division no matter what happens in an adjustment (eg annual) which leads to sell what came up to buy what decreased (which is buy cheap and sell dear is what is I think a much better principle of long-term investment that speculation of following the crowd too late, hoping that what came up “again rises to the sky” …).

The application of portfolio theory Standing requires a lot of discipline , but has the enormous advantage of involving security, stability and simplicity . The results of the Permanent Portfolio for 29 years (1970 to 1998) show a stable growth regardless of the economic environment (inflation, growth and recession).

I was surprised-and a little pride so I confess – I am writing before reading this book described on the page my site optimization investment principle of asset management (imagined from my personal experience) very similar to that theorized by Harry Browne Permanent Portfolio with her. Including proposing to keep a small amount next to the Permanent Portfolio to try to beat the market, making its forecast, try to be smarter than the neighbor, speculating what! Because human nature is such that it is too difficult to subject themselves to the strict sense of discipline imposed by the Permanent Portfolio without such a safety valve!

My contemporary adaptation of the theory of Permanent Portfolio

The Permanent Portfolio of Harry Browne in my opinion two major drawbacks:

• · it does not account for property or debts.
• · place it 25% cash and 25% bonds, while off event of default of the issuer of the obligation these two assets move in the same direction for a single cycle

That’s why I thought a permanent contemporary portfolio making it possible to avoid these pitfalls 2 which is composed as follows:

• · 35% real estate (representing the proportion of depreciated real estate assets, in other words the value of assets minus the outstanding principal on the possible associated credit
• · 1 0% precious metals , mainly gold
• · 22.5% share which is essential:
  - 5% of shares related to raw materials (ie business advantage for inflation): oil services, oil, and to a lesser extent energy services
  - 5% of shares invested in the value (which are usually not growth stocks, but rather the actions to yield large, low PER ) that falls less in a recession.
  The 12.5% ​​is diversified by sector and geographically.
• · 22.5% of cash equivalent (booklets, euro funds, bonds …)
• · 10% holding free and variable
• · debts (mortgages) that are ideally 15% of net assets (ie 15/35 = 42% of real estate assets)

The portfolio constructed contemporary two calls above remarks:

• · On the one hand, it is mainly applicable to a heritage already established , if not from real estate could weigh +. But it makes sense because this article is primarily intended for those who have the new post-2008 economic situation gives sleepless nights to the fear of losing their heritage of its purchasing power. And to have insomnia, this heritage must be established
• · 10% of the free and variable portfolio for investments you choose according to your forecast of the future. Your required dose of adrenaline. You think the stock will go up, increase your 22.5% to 32.5% if you bet on real estate this position go to 45%. These 10% are somehow part of your estate that you’re ready to play! not necessarily double or nothing, but where you can rejoice in your good inspirations and where the limited scope of your failures will be digestible.

More and more people have saves and they planning to make investment, however, most of the people were not clear about the objectives. The follwing may help you get some conclusion

1 investment financial goals are not clear
First need to identify a good financial investment a financial goal, why should we engage in money management? Determine a good target, and in consequence is half the battle. For financial goals, many people will say, I want to save marriage with a sum of money, I want to give children an educational fund raising, I want to buy a house and a car, I’m going to leave some of their retirement pensions. Indeed, these are very good financial aspirations, but it is not clear financial goals. Have you ever wondered, if you want to buy a house, you want to buy Bedroom 80 square meters or 130 square meters Sanshiliangting? You want to buy multi-layer, high-rise or high-rise? You are ready to buy in the inner, outer or Central? When you are ready to buy a house? We selected financial goals, many times only to give a more vague concept, its financial results often can not be accurately calculated in monetary terms, there is no specific deadline to achieve its objectives, and this is often only a vague notion that we are dream state, unable to develop an appropriate financial plan, even if there are financial plan will also make the program look quite blind and empty.
(2) personal goals earnings expectations are too high
Each person will finance the development of their own financial goals, have hope that some of the accumulation of financial means and time to realize their dreams. But not all goals are achievable, some goals for many people it is out of reach. Such as the income of 2,000 Dollar a month a small staff, plans to buy a set of values ​​within five years more than 200 million homes and a $ 200,000 car. Although these are his dreams, but in just five years to achieve its operational probability it is almost zero. The reason why people in the development of financial management financial goals will be high when the expected return is because everyone has the desire, the desire to be as unrealistic expansion. But this is not a good investment and financial management, high expectations of the first target is not realistic, it will cause financial manager has been in a dream state, there is no corresponding plan to go to achieve this goal, and secondly it leads to In the financial plan in more risky to use the tools to win more revenue, it does not meet the financial activities has consistently adhered to the safe and sound, increasing the value of the principles.
3. Often only a single target for financial
There are various financial goals, there is a car or house to get married, have children to education and training, there are retirement pension for life, etc. These basic financial goals of our life will encounter. However, in general financial management process, these goals will tend to separate, that is just a single goal for financial management, financial management is also in the development of financial goals often a mistake. Because these targets are in different stages of our life cycle, at a certain stage of our financial activities only because the stage has some special needs, to meet this need, we would not have thought of life after a stage there may be other potential needs, such as we are about to enter only after a life-cycle, this potential demand is imminent when beginning to understand the potential demand for this financial need, but this time we have lost the best financial opportunity. We lack is the person throughout life from the perspective of the development of financial goals, so many financial results are often trade-off, financial results can be imagined.

When we talk about money, sure we think is present in almost all aspects of our lives: from the money received for work, loans, we pay, income from our investments or pension plans, etc.. But many times we could optimize all these expenses and revenue, always choosing the most beneficial financial products.
To help compare and make the best choice, there are many financial tools and calculators. The most useful may be the mortgage calculators and loan calculators or retirement plans or investments.

Loan calculators
The operation of loan calculators is similar whether it is mortgages or not. Recall that the difference between a personal loan or a mortgage consumer and the mortgage are that the amounts are higher and the guarantee offered by the borrower’s own home is purchased.
Within loan calculators, there are several utilities:

Calculator debt capacity
It indicates the maximum amount to apply in our current financial situation (income and balance already committed, as existing debt, overhead, etc.). Because the maximum borrowing by banks is typically 35-40% of our net monthly income. Calculators monthly

For fixed rate loans
This is easy to calculate the monthly payments because the interest remains fixed throughout the life of the loan. Knowing the amount requested, the fixed interest and the number of years to return, we know the fees (monthly, quarterly, semiannual, etc.. As appropriate) fixed to the end of the loan.

For variable rate loans
This calculator is much more complex than before, and it provides results that are not accurate, because it is an estimate that will predict how interest rates vary in the future.
The data required are paid-up capital, time, initial interest rate of variation of that interest, frequency of assessments, frequency of rate revisions, and benchmark (usually EURIBOR).
However, these calculators are useful themselves for comparison between loans, as the data variables such as interest rate will remain the same when the comparison.

Financial Tables to calculate fees
There are tables that appear in a column different interest rates, and ranks the possible loan terms, to find data across different monthly fees to pay (for example, for every 1000 euros of loans). So we have a rough idea of ​​the fees we pay.
Loan calculators therefore help us to know what maximum grant us, what fees will pay in the future, and most importantly, help us to compare different options.

Calculators pension plans.
We estimate the total amount of the pension plan at the end of his term, knowing the annual contribution, which will increase the annual contribution of each year, and the term of the plan, keeping in mind that this is an estimate according to the profitability varies year.
In addition, many of these calculators pension plans also indicate the expected annual tax savings, according to the tax base from income tax of the person doing the calculation.

Investment Calculators
To calculate the returns of an investment, as in the case of mortgages, the investment performance distinguish safe and known investments with variable yields and uncertain.

Safe yield Investment
To secure crop (bonds, fixed deposits, etc.). It is sufficient to know the amount to invest, the type and run for the annual returns, monthly, etc.

Variable return investments
for uncertain investments (stocks, mutual fund, foreign exchange, etc.). Calculators are meaningless. Known is the phrase Past performance is no guarantee of future and all we can calculate the gains or losses are already occurring.

It is true that there are mixed investment funds, which combine certain investment income and other equity investments, which guarantee (except massive meltdown of the economy and massive bankruptcies) yields a possible range. We can then calculate the difference in profitability of these mixed products evolve according to the equities.

Stock Trading Course may restrict prove essential to Unde Stock Trading Course: Improving opportunities in your Stock Trading

Trading in the stock market does not easy. He will be terribly difficult and can require a lot of your time, data, skills and patience. If you do not follow the negotiation of a smart and very strategic, you will surely end up losing more than you bargained for.

Besides the classes of the stock market, here are some important points you want to improve your negotiating opportunities for successful actions. Let us discuss what these things are and how they will facilitate the negotiation of common sense: a stockbroker.

With Trade Cash Course you can manage to Lose commercial stocks will be quite a coincidence. Your chance to be roughly equal to your chances of losing, and in some cases, there are even bigger risks losing more. Money you might need to survive should never be used in trades.

As a result of most trading markets will be terribly unpredictable, the positive construction that you use money you afford to lose. It might be too risky to take a position of money you are going badly needed for daily life or for your future. Constantly take note of risks involved, and what you are particularly risk in the exchange:

Currency Trading Training: Forever Trade In Cheap Sizes

Some markets in the exchange are ready to allow people to trade very massive amounts of leverage.. And so a lot of people into the store massive amounts in order to ensure higher profits. However, this could also open the likelihood of losing money in such large quantities as well. It is always wise to change your job in order to reduce risk. Never trade sizes that you can erase all your money. And you don’t ‘have nothing to lose if you start really small, and growth of your transactions from there.

http://stockcourse.net/: Identify Market States Before Trading

It is also very important that you pay attention to how the market is doing before you begin trading. Invest time in the negotiation of training options for research on whether trends are increasing or decreasing. If you know whether or not the trends are weak or strong, so it could become easier for you to make the correct selections in your transactions.

By obtaining an image sensitive things on the market, you can easily make any provision for making a successful exchange. Things would be easier for you to predict what that must do when you have a reasonable idea about what could happen. In this approach, you can stop making a bunch of bad choices:

Day Trader. Training Set A Time Frame For Trading

Although most objective of trading on the market is to just build a pile of money, from conception to the advance when you want to feel like the game will allow you to saved from a lot of risks. The trading industry is always in motion, and the passage of time, the costs may change. following this, there will also an exit price increasing. Although it can not be completely possible to confirm when you leave is precisely the market, it could be useful if you have at least put your business in perspective and realize when you’d better collect the exit price. This practice contributes to liquidity in the market movements.

Any person who lead you to believe it ‘is simple and c ‘is always something positive to form the money in stock trading is misleading. Keep in mind that the contract explicitly, by nature, is a volatile sector and constantly moving. And yes, you need to remember the various trends also develop a sound strategy and strong

To do a thriving business, you must consider factors in addition to basic skills to make informed decisions and sensible. Make sure you use your skills and information to determine a strategic plan in place to go on your trades. Achieving success during this industry is not as straightforward as it may appear, but with a little hard working and law-related courses you’ll just stock trading

In the “Run Liu Xiang does not win, but CPI is hit “sentence in the history lies the most daring in love with many people know nothing of financial management have developed their hard earned money to buy financial products, trying to beat the mad CPI.

However, from enormous losses of money, the stock of very sharp slow down in the market.Are all investors “risk class “For several months and rising inflation pressure of CPI has also begun to investors’ s disturb the after their of investment: how to ensure that my safety is wealth?

We believe that investors in a comprehensive consideration of the following three aspects:
First, diversifying the funding side.
“Do not put all eggs in one basket” diversion of funds for this proposal as long as the controls have the following three accounts, you can achieve risk diversification, the purpose of preservation of assets.
First of all, about to spend the money (next 6 months living expenses), on the savings account. The next 6 months, with or without income, the family must be able to guarantee the quality of life does not change.
Second, being without money, on the bonds, fixed investment account. Investors can develop a bond, fund or insurance program is scheduled to vote in order to achieve the target sand into the tower.
Finally, do not have the money and put investors, financial accounts. Investors are advised to return the money to do large investments, both to enjoy the benefits of national policy to us, but also a good situation in the capital market to get some extra income.
Second, prudent investment, pay attention to security.
Continued pursuit of financial gain is a long-term behavior, not the short-term speculation, keep the money than make money important. Therefore, in terms of investment and financial management is the core of a rainy day, meaning the future is far greater than now.
This account must be free from household spending, business profits and losses, wage increase or decrease the impact of earmarking and independent than in ordinary savings accounts, this one can make up for investors in general, “light heavy investment in security” loopholes, on the other hand We can solve the future of the pension can not be determined, serious illness, accidents and other risks caused by financial pressures.
Also, do not overlook insurance. The reason why the insurance should be regarded as a necessary means of financial investors, the main reason is that insurance products can protect and investment while achieving the two major functions, from youth to middle-aged for all stages of investment, “was the most prominent is participating insurance products. ”
Third, choose financial products adhere to three principles.
First of all, to see the product structure and redemption conditions. Investors need to understand the product at least linked to the subject;For those of the underlying financial products, investors need be treated with caution. Second, consider the possibility of profits. Set the number of financial products is limited to certain income conditions in the period, while for other financial products are limited to certain income conditions, a day of observation. Finally, we should look period products. A issued a number of short-term peak in the stock market financial products, if there is a loss in the short term to achieve ” Return of capital, “the hardest part may be considered a prepayment. The period of financial products, some longer period up until five or six years, the design of the structure and better, even if the loss, but the next two to three years if the market for the best, these financial products is entirely possible.

Profitability Summary: financial management, even if you don ‘t have no tax, financial, you know. However, products of investment to more than watch and listen, watch departure. And should protect the property, the real long-term financial planning, the insurance is a good tool, which can make safety and low risk.

Equity investing is one of the hardest to become proficient it for personal investments. The endless variables to consider include political, social and economic. Other factors include corporate malfeasance, misinformation, self-serving financial advisors, and the general speculative nature of the market.

Equity investing in your personal investment portfolio can create a lot of stress if you do not understand a few facts. When equity prices plunge you may be tempted to make irrational decisions. A basic understanding that corrections in the equity market are good things also when interest rates slowly raise that can be a real boon or just a temporary set back in the equity market.

The five basic truths that all income and equity investors must realize are as follows.

1 – changes in market value for fixed income securities that you own will have no impact on assumptions about the worth or credit of the securities issuer.

2 – Market factors should not determine or change the amount of income you allocate for investing

3 – Purchase fixed income securities when interest rates are rising as the compound effect improves your capital gain

4 – The income you receive on a recurring basis is not affected by a change in your fixed income assets market value.

5 – You can and should increase your variable and fixed securities when interest rates rise

Following these basic principals is not always easy and financial professionals do not always help you understand them either. Your market value while you should understand it should not be a surprise to your nor should it overly concern you.

Income investing can be very simple. Investments are affected by interest rate locutions that can cause meaningless and predictable movements.

Lower stock prices can be welcomed as opportunities to purchase. Higher interest rates may be better than low interest rates. If a personal investor did not take their profits from the last rally they may be unhappy with the current market corrections. This can be offset by purchasing at lower numbers and increasing your portfolio.

Corrections are the nature of personal investments. Try to avoid cutting your losses and just moving money around. A sound, calm approach will help you in the long run. In fact you never have a real loss unless you sell or switch your funds. Never fall to the pressure to sell in a down cycle. You should not allow the movements in the interest rate to determine your investment strategy.

Google is an innovator in the Internet. They offer many interactive tools to help you find movies, travel routes and even to analyze your finances. Google Finance or GF is a web-based app that was designed specifically for Google and launched in 2006. As a financial tool you should look at the possibilities of Google Finance.

Google Finance offers news, headlines and financial information on many companies. You can get stock quotes, information on bonds, currency quotes, and detailed sector financial information. There is even a trend section. Financial news and information from Google News, Blog Search and other Google portals are gathered and published on Google Finance. With Google Finance you can set up personal preferences to shift through information that is irrelevant to you.

One of the real values of Google Finance is in portfolio building. You can find and access forty years of historical stock data. Along with this valuable historical information you have access to the most up to date and relevant data on stocks and their values. The ability to customize your portfolio is one of the great features Google Finance offers.

When you create a personal portfolio in Google Finance you can download as well as track your transactions into a spreadsheet. This information if formatted and compatible with many software programs including Quicken. Updates in the Google portfolio is in real-time. Google is partnered with the NYSE and NASDAQ to make this happen. With the Stock Screener you can search for US stocks based on criteria.

There is so much available on Google Finance and it is priced right. Their data is current and is great for the casual investor. Google is free to users. When you log into your Google account you will see information that is tailored and relevant to you both locally and nationally.

Google’s financial tool offers organization to access what is important to you. Tabs include access to the Markets, News, Portfolios, Stock Screener, Domestic Trends and your recent quotes. Then there are real-time tables providing current levels of the world markets, currencies, and bond trending. You can customize the home page to what you want to see.

Google Finance works best with the Chrome browser as it was designed to optimize and compliment the application. Google’s financial tool is a great resource for the beginning investor to track and keep up with their investments.

Today many people spend more than they make every month. Using credit cards does nothing to help their situation. Over the long term you cannot spend more than you make without getting deep into trouble. What can you do to stay out of this situation our get out of it if you are already in it?

Financial planning software is the first step to take to avoid serious financial problems. If you are already in a cycle of debt you can find your way out. Budgeting is the process that you must embrace if you wish to get relief from your debt. Creating a budget is the process of painstakingly tracking all your expenses. You have to know where your money is going before you can reign in your spending habits. Some people are naturally more adept in analyzing logically their finances. But, if you are not you can use financial planning software tools to help you.

When you begin to use financial planning software you can navigate out of your debt situation. With the financial software you can see you income and allocate it to the necessary bills and living expenses. Remember to pay yourself in the form of savings. Any monies left after you pay your basic living expenses and savings is yours to do with as you wish.

Financial planning software is vital in the budgeting process, as it will clearly show you where you money goes.  Most software will help you set, monitor and keep your financial goals. With software you can visually see graphs of your income and expenses and project into the future. The aim of using financial planning software is to get you to think about your purchases. When you track you expenses you will not have the tendency to spend irrationally.

The only way to stay out of debt is to control your spending. You cannot control your spending if you do not know what you are spending your money on. Financial planning software is the best method to know where your money goes.

When you use financial planning software you will think before you spend even on cash purchases. You will be able to calculate the effect of any purchase when you have a clear picture in your head of your financial position.

Saving for a home, car, vacation or plasma TV will become easier when you utilize financial planning software to help you manage and control your spending.