[ad_1]

There is so much information on investing for beginners and experts alike on the internet today that it can be difficult to sort it all through.

Regardless of the type of markets and industries you’re interested in, or what level of knowledge you’re interested in, here are a few smart investment tips anyone can follow:

1. Only invest in things you understand. Don’t just put your money where your broker (if you have one) tells you to without first knowing WHY you should put your money there. For example, we all know that technology is the future, but that doesn’t mean everything technology-related is a good investment.

2. Don’t just assume that investing in multiple mutual funds will automatically “diversify” your portfolio. Always look under the surface of each fund to see what is there. It’s not uncommon for many mutual funds to actually own many of the same stocks.

3. If you want to put your money in a bank to earn interest, be it through CDs, money market accounts, or savings accounts, go to an online bank that has many positive views. Online banks are better able to generate higher returns than traditional banks.

More intelligent investment tips

4. One of the most important “smart investment tips” is to NEVER let your emotions get in the way. The stock industry has no place for emotion. No matter how wonderful you feel about a given occasion, it may not really be the best. Always take some time to do your research first. It is similar with the sale of shares. Don’t think that just because you’re having a good day is a good time to sell. Always be calm – never allow yourself to panic. Try to look at the bigger picture as objectively as possible.

5. Everyone has a “tolerance for risk” and it is important that you learn yours as soon as possible if you have not already done so. Even if all the indicators are suggesting that you are making a huge profit, do not invest more money than you can afford to lose. What if the unexpected happens and you lose money anyway? Will you be able to cope with the loss?

You can get many, many more clever investment tips from some of the best experts at the Motley Fool. It’s the best place to find out about all aspects of investing. Whatever your level of knowledge or experience, the Motley Fool has everything you need to conduct research.

[ad_2]

Source by George Botwin

[ad_1]

Investing is complicated for many people. The fact that no one knows what the market is going to do overnight enables many so-called experts to give their opinion on where the market is headed. Just search for the term “investment strategies” and you will find over 10 million results. Yes, 10 million.

So it’s no wonder why when investing, most people choose to do nothing instead of doing something. The classic “analysis paralysis” comes into play. The question is how can you make investing easy? Below is how I invest. My approach is pretty simple.

I don’t watch the market every day. I don’t make that many trades in a year (in fact, if I checked, I’m sure the number would be under 20). I’m not trying to find the “next big thing” either. I don’t care about anything.

Why I don’t analyze the stock market

Why i don’t care I have two reasons:

• I don’t want to spend my free time analyzing investments
• If you look back at the beginning of this article, I have no idea where the market is going tomorrow

Let’s take a closer look at each of these points. First, I value my time. I like to play golf and ride a mountain bike. I enjoy spending time with my friends and family. If I spent every weekend researching stocks, I would have less time doing the things I love to do. Plus, my performance is doing well with the way I invest (more on that later).

Next comes the problem of not knowing where the market is going. Why should I spend my free time researching stocks I want to invest in when there is a 50/50 chance tomorrow the market will rise?

Simple steps to investment success

That’s how I invest and keep things simple. First, I choose inexpensive investments. I am a firm believer in passive investing. I don’t pay a professional fund manager money if he or she can’t consistently beat the market every year. I just take what the market offers me.

Next, I invest money in the market every month regardless of whether the market is trending up, down, or sideways. For me it does not matter. I invest for the long term, so I don’t care about the daily fluctuations. Though I get excited when the market falls and I can buy more stocks.

After all, as already mentioned, I will remain invested in the long term. This is important to be a successful investor. If you want to make money in the short term, you shouldn’t be on the stock market. It’s too volatile in the short term. But the long term at hand is a different story. In the long term, the stock market is trending up. If you want to make money in the long term, the stock market is for you.

Final thoughts

Overall, investing is easy. All you need to know is that you are ignoring all of the advice you hear every day regarding investing. All of this conflicting advice makes many people think that investing is too complicated. It really isn’t. Breaking it down into a few simple, vital steps will help you invest.

I have used this method of investing for the past 16 years. This includes 2 wars, 2 recessions and the bursting of a big bubble. I started out with $ 20 a paycheck in a 401k. Since then, I’ve added a few other accounts and now I’m joining a million dollars. How did i do it By keeping an eye on things and thinking long-term when it comes to investments.

[ad_2]

Source by Jon Dulin

[ad_1]

The new escrow rule restores the previous 1975 ordinance and its five-part test defining investment advice, which was amended by the 2016 escrow rule. Currently, a financial institution or investment professional as defined in ERISA Section 3 (21) (A) (ii) is an investment advisory trustee provided that it is “… in relation to funds or other ownership of such a plan …”

According to the ministry’s five-part test, for any advice to qualify as “investment advice”, a financial institution or investment professional who is not a trustee under any other provision of the law must:

1. advise the plan on the value of any securities or other asset or make recommendations regarding the advisability of investing in securities or other assets, buying or selling them,
2. Regularly,
3. Under any mutual agreement, arrangement, or understanding with the Plan, the Plan Trustee, or the IRA Owner that
4. The advice serves as the primary basis for making investment decisions regarding plan or IRA assets, and that
5. Counseling is individualized based on the specific needs of the plan or IRA.

Pursuant to 29 CFR § 2509.96 (d), DOL provides examples of investment-related information and materials that are not “investment advice” under ERISA.

However, this new rule does not affect the status of a financial institution or investment professional as an investment advisory trustee if the financial institution or investment professional has discretion over a plan covered by ERISA.

The five-part test does not need to be used to determine the status of the financial institution or investment professional as an investment advisory trustee.

The US Department of Labor also announced that it would propose a new exemption for trustees in investment advice.

In a July 7, 2020 notice from the Federal Register, the DOL proposed exemption would “allow investment advisory trustees under both ERISA and the Code to receive compensation, including as a result of the advice, assets from a plan to an IRA Transfer and engage in major transactions that would otherwise violate ERISA Prohibited Transactions and the Code. “

“The exception would apply to registered investment advisors, brokers, banks, insurance companies and their employees, agents and agents who are investment advisory trustees. The exception would include safeguard terms designed to protect the interests of plans, participants, and beneficiaries. and IRA owners. “

Fiduciary Litigation Background

In previous litigation, the US Chamber of Commerce, the American Council of Life Insurers, and the Indexed Annuity Leadership Council filed lawsuits against the “Trust Rule” promulgated by the Department of Labor (DOL) in April 2016.

The escrow rule was a package of seven different rules that broadly reinterpreted the term “investment advisory trustee” and redefined exceptions to the trustee provisions contained in the Employee Retirement Income Security Act of 1974.

The lawsuits filed by the three groups of companies, which were later merged into one case, alleged the following:

(a) the incompatibility of the rule with the applicable statutes,
(b) regulate DOL’s excess, services and providers outside of its powers,
(c) the imposition of legally unapproved contractual terms by DOL to enforce the new regulations,
(d) violations of the First Amendment and
(e) the arbitrary and arbitrary treatment of variable and fixed indexed pensions, as a rule.

The US Court of Appeals for the Fifth Circuit (No. 17-10238) upheld these objections, overturning the District Court’s judgment that dismissed the challenges.

The DOL guidelines of June 2020 on the term “investment advice trustee” are a reaction to the 2018 ruling by the appellate court.

In March 2018, we wrote an article entitled “Court Address ERISA Fiduciary Duties,” which discussed two court rulings addressing fiduciary requirements under the Employee Retirement Income Security Act of 1974 (“ERISA”). The US Department of Labor announced that it would no longer enforce the 2016 escrow rule. At this point, the future of the escrow rule remained uncertain.

[ad_2]

Source by Mark Johnson, Ph.D., J.D.

[ad_1]

One of the biggest concerns for people of working age is their ability to retire in comfort. This concern is present, regardless of whether you are just about to start work or are about to leave. That is why it is so important, with the right care and preparation, to take away the fear of retirement provision, namely with saving, no matter how small it is.

Twenties

For most 20-year-olds, retirement planning is typically not a top priority. While this feeling is certainly understandable, as 20-year-olds are more focused on building their careers, preparing for their retirement could not begin at a better time. When it comes to 20 year olds, however, the preparation doesn’t look quite the same as the preparation for a person who is in their fifties. Namely, you can prepare for a better financial future by paying off credit card and student loan debts. In addition, they can make other smart financial decisions, such as: For example, sign up for a 401k or rollover IRA and stay on a budget. It also helps to live well and stay healthy so that the exit from professional life is as pleasant as possible.

Thirties

Retirement planning for the 30-year-old is very similar to that in the 20s, with a few small differences. In your 30s, not only is it important to do things like budgeting, staying healthy, and contributing to your 401k employer, but you should also maximize your contributions to your plans and have your savings automatically deducted. In particular, you should try to live on 50 percent of your income and save more than 10 to 20 percent in addition to avoiding too much debt. Obviously, the last part is a little tricky since the 30s are usually the years when home debt accumulates, but if you save properly before buying a home, you will reduce your debt on the property.

Forties

At this point in your retirement plan, you should seek financial advice from experts if you have not already done so. An expert can provide specific pointers to help you meet your personal financial goals in preparation for your exit. Other recommendations include aggressive saving, including hiding any bonuses and raise you might get, as well as focusing on more conservative investment strategies.

Fifties and beyond

For those over 50 and the elderly, old-age provision is likely to reach its peak. In the years leading up to retirement, two things are important: aggressive saving and conservative investing. For example, you might want to cut your spending so you can save as much as possible, and that includes reducing your debt. Another important note is that people over 50 want to get used to living on a reduced income as this will make it easier for them to move into the next phase of life.

Approaching it right is crucial in making your golden years as comfortable as possible. It is never too early to think about and prepare for the later years.

[ad_2]

Source by Andrew Stratton

[ad_1]

This year we can observe that cryptocurrencies are even moving up and down by 15% of their value every day. Such price changes are known as volatility. But what if … this is perfectly normal and sudden changes are one of the characteristics of cryptocurrencies that can help you make good profits?

First of all, cryptocurrencies only recently made it into the mainstream, so all the news and rumors about them are “hot”. After every statement by government officials about a possible regulation or ban of the cryptocurrency market, we observe enormous price movements.

Second, the nature of cryptocurrencies is more of a “store of value” (as gold has been in the past) – many investors view these as a backup investment option for stocks, physical assets like gold, and (traditional) fiat currencies. The transmission speed also has an impact on the volatility of the cryptocurrency. The fastest even take a few seconds (up to a minute) to transfer, making them an excellent asset for short-term trading when other types of assets are not currently trending well.

What everyone should keep in mind – this speed also applies to the lifespan trends of cryptocurrencies. While trends in regular markets can take months or even years, here they happen within days or hours.

This leads us to the next point – even though we are talking about a market worth hundreds of billions of dollars, it is still a very small amount compared to daily trading volume compared to traditional forex markets or stocks. Hence, a single investor making 100 million transactions on the exchange is not going to cause large price changes, but in terms of the cryptocurrency market, it is a significant and notable transaction.

Because cryptocurrencies are digital assets, they are subject to technical and software updates of cryptocurrency features or the expansion of blockchain collaboration that make them more attractive to potential investors (like the activation of SegWit basically resulted in the value of Bitcoin being doubled).

These elements together are the reasons why we observe such large price changes in cryptocurrencies within a few hours, days, weeks, etc.

But answering the question from the first paragraph – one of the classic trading rules is to buy cheap, sell high – therefore there is much more chance of having short but strong trends every day (instead of much weaker ones that take weeks or months persist like stocks) to make a decent profit when used properly.

[ad_2]

Source by Mike Alexander