Personal Investing Advice

6 Month CD Rates Vs 12 Month CD Rates - Basics

If you’re contemplating opening up a certificate of deposit, you’re making the right choice for your financial future. The confusion in selecting the best CD account comes in when people have to decide which deposit term is right for them. Most people commonly choose between a 6 month CD and a 12 month CD, but what are the advantages and disadvantages of each? Neither is a bad choice, so let’s take a closer look at what each offers you.

6 Month CD Rates

Shorter term certificate of deposit accounts are ideal for people who may need access to their money in the near future, or are uncomfortable not having access to their funds for a long period of time. 6 month certificates are perfect for these situations because they can still offer a good return rate with a minimal deposit term. You may also want to consider a 6 month CD if you just want to earn a little more interest on your money before a large purchase. Here are some quick features of this type of CD:

• Short deposit term
• Average rate of return
• Very little commitment required

12 Month CD Rates

These types of deposit accounts are considered medium term, since they do not go longer than a year or more like some CDs. 12 month certificates are great for people who are looking for a little bit more interest and do not mind having their funds tied up for half a year. Usually, people who choose to invest in a 1 year CD have a higher tolerance for inaccessibility to their funds. They usually have a higher amount of money saved for emergencies and so do not need access to their money. They are also great because you can switch over to another CD rate after only a year, unlike with longer term certificates or jumbo CDs. Here are some quick features of this type of CD:

• Average deposit term< Read the rest of this entry »

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16 Steps to Building Blocks of Inheritance For Your Children

You shouldn’t confuse wealth with prosperity. Wealth is abundance of properties and money. Prosperity is no lack i.e. wealth, health, peace, protection, grace etc. Therefore, wealth is much less than prosperity. Prosperity, therefore involve the fruit of the spirit. You cannot price prosperity. The box-chest of prosperity includes victory, good health, preservation and protection, meeting and seizing good opportunities, and reward.

The building blocks can be summarized in 16 steps below:

1.Paying to God at least 10% of all your monthly income including material gifts.

2.Paying to yourself at least 10% of all your income every month and save this in a dedicated account.

3.Open savings account for all your family members, and save at least 10% of your monthly income proportionately as would be determined by you and your spouse.

4.Cultivate the attitude of putting aside at least 10% into an emergency account to take care of other extended family members’ request on monthly basis.

5.Use the remaining 60% of your monthly income to provide the good things of life for the members of your family.

6.Understand the difference between assets and liabilities, and decide to increase assets, and reduce the acquisition of liabilities.

7.Pay up all your debts on monthly basis, or buy only what the 60% of your income can accommodate. If it is not enough, go and do more work to earn more.

8.Never spend more than your income. It will put you into debt. Do more work or reduce your expenditure.

9.Seek knowledge on how to manage finances by reading books and engaging the services of experts who understand the language of money.

10.You must stop impressing people with materials things. The main reason for impoverishment amongst people today is ostentatious living.

11.Open fixed deposit account, and let your Read the rest of this entry »

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How to Invest Money to Make Money & Avoid Bad Investments

The question is how to invest money to make money. The answer is to invest money only after asking a few questions about investment basics. Here are the questions to ask, and how to invest money to avoid scams and bad deals in general.

How to invest money, rule #1, is that there is no such thing as a perfect investment. A perfect investment would have the following features: guaranteed safe, guaranteed to make money and lots of it, high liquidity, zero costs and expenses, big tax breaks, and easy to monitor… so you always know where you stand financially. All investments can be compared based on investment basics, but no honest proposition contains all of the above features.

A scam will generally IMPLY that safety and high profits are guaranteed. Your first question before you invest money: what are the specific guarantees for safety and investment returns? If the answer you get sounds confusing or misleading, you have no need to ask any more questions. Something is rotten in Denmark, since no investment offers high safety and high profits… except scams. Now, let’s move on to some other investment basics and questions to ask. Remember, a large part of knowing how to invest money involves knowing how to avoid bad investments or those that don’t fit your needs.

Ask about LIQUIDITY. How quickly and easily can you get your money back if you want to cash in? What will it cost you? This is a very honest question, and the answer you get should be straightforward. You’re out to invest money to make money; not to get stuck with a loser that will cost an arm and a leg to liquidate.

The COST OF INVESTING is another investment basic you need to ask about. Most investments involve charges and fees to buy, hold, and/or sell. Many times the details are in the fine print, so make sure to ask upfront. High investment costs can turn a wi Read the rest of this entry »

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What Does a Futures Broker Do?

Futures are also sometimes called commodities. They are traded on the stock exchange in the form of agreements made by the buyer to purchase a commodity at some date in the future for today’s price. The buyer is assuming that the price of the commodity will be higher on that future date, meaning that their purchase will be below market, and if then sold on that date, he will make an immediate profit. Futures brokers execute the buy and sell orders placed by clients.

Futures are not the same thing as options. As the name implies, options are instruments that give the client the option to purchase at a predetermined price. Futures, on the other hand, are obligations, and the buyer must fulfill that obligation. His broker may liquidate his position prior to that date, if the client so desires, by selling the client’s position to someone else. If the client chooses to hold his investment, the broker will finalize the trade.

A futures broker may or may not have a seat on the trading floor. If he does not, he will utilize the services of the broker in his firm who does have a seat. Information received from the futures broker will be executed by his co-worker who is licensed to trade “in the pit” on the stock exchange.

A discount futures broker will execute the orders received from a client. Few discount brokers include any other services for the client, at least without a separate fee. Those who use a discount broker will seldom have access to any market research or advice that is tailored to the client’s situation. Instead, most discount brokers merely buy or sell what is requested.

You can trade with a futures broker online or at a traditional brokerage firm. Typically, the online traders will charge lower fees, but their support services may be more limited. It would be beneficial for those considering the use of an online se Read the rest of this entry »

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