Category Archives: General Investing

General Investing

Trading Tips Nifty Tips Share Tips Intraday Tips Can Build Up Your Bank Balance

Share Market is a market place where fortunes are made or shattered virtually every day. The stock market has the potential to make you earn cash fast enough. Some of the most pertaining reasons for populace to enter this market place are the promise of high returns in a relatively small time frame, not much financial load involve when investing and a lot more factors. It should not come to you as a surprise if novice investors incur losses on their investment as along with required finance, you also need fitting know how and acquaintance with the market functionalities and an inventive prudence.

In such milieus, opting for assistance of professional stock broking firms which proffer accurate and timely trading tips such as nifty tips, share tips, intraday tips, nifty positional tips, stock Tips, nifty options tips, nifty calls, stock market calls, nifty futures tips, etc. is highly advised. This stride will unquestionably hold out loads of support and backing in uplifting your familiarity and proficiency echelons, when it comes to the spontaneous and unpredictable share market operation. The best place to look out for such help is the internet wherein you will lay your hands upon some renowned and distinguished name in this niche industry segment.

Typically the stock broking firms have unique packages for different kind of investors with varied financial stamina; thus you should really look into the accuracy, timely services and the upshots of the services proffered relevant to share Trading Tips, bank nifty tips, stock Market tips, bank nifty calls, etc. With a bit of research on the World Wide Web, you can find that there are stock brokerage firms out there which continually proffer nifty intraday tips, nifty calls, stock market calls, share tips, etc. with precision to the tune of 99.99%.

You should also aptly comprehend that every investment comes coupled with a definite level of risk and overlooking this reality might do you more harm than good. But before you plunge into any major decisions pertaining to choosing of a specialist stock brokerage firm, you should take some time researching into the assortment of factors that will prove if your verdict is a well versed and a balanced one. You should definitely do aback check on the firm’s history, its infrastructure, its profile, list of satisfied clients and their testimonials, accuracy of the tips, the time responsiveness of the aforesaid services and the discipline of their customer support staff, just in case you face an predicament or quandary.

It is always advisable to invest only that much money which you can bear to lose; hat does not mean that you will lose everything that you invest. But as there is no certain guarantee, it will be foolish of you if you invest more than you can afford to lose in the unpredictable share market. These firms take into consideration various factors to proffer you with precise and pertinent tips; like they do research and analysis on company’s profile, chart patterns and trends prevailing in the share market.

General Investing

New Respect For Variable Annuities

For most of the 2000s, variable annuities got no respect. Here’s an example: in January 2008, a SmartMoney.com piece stated the opinion that “[variable] annuities only make sense for a tiny fraction of the population. The rest of us should be buying plain old mutual funds.”1

Less than a year later, mutual fund investors watched the S&P 500 go into a 39% freefall. As they reached for aspirin, many variable annuity owners saw their account values go up by 6% or more in 2008.2

If you happened to put some money in a variable annuity in the 2000s, you may look back and applaud your decision today. For years, the rap on variable annuities was that they were too expensive. Back in the 1990s, their fees were often near 3% of the account balance, while mutual fund fees were commonly half that or less.2

Then insurers started offering new perks with variable annuities. First came the “death benefits” stating that heirs of an annuity owner could get at least the original invested principal minus any withdrawals. Then came the “living benefits” – guaranteed minimum income benefits (GMIBs), guaranteed minimum withdrawal benefits (GMWBs) and guaranteed lifetime withdrawal benefits (GLWBs) for annuity owners. As the Great Recession hit, some of those that thought variable annuities were overpriced now felt they were underpriced, and we saw a new wave of interest in them.2,3

Variable annuities have their disadvantages. Their “guarantees” are only as strong as the insurance company making them. Additionally, if you’re retired and want to cash out and take a lump sum from a variable annuity, you’re not going to get the “guaranteed” amount. You’ll get the sum that remains in your funds. Yes, you can receive the higher “guaranteed” amount, but you won’t get it at once: the insurer will pay it out incrementally, usually at about 5% per year.2

Maybe it’s time for a second look. The concept of “guaranteed” returns is pretty attractive these days. While variable annuities are complex investments and not for everyone, many of the retirement-minded among us are taking a new look at their potential.**

**A potential annuity investor should consider investment objectives, risks and charges, and expenses of registered annuities or other securities offered by prospectus before investing. The prospectuses for these products contain this and other information about the investment company, and can be obtained from your financial advisor. Please read the prospectuses carefully before deciding whether to invest.

All annuity guarantees are based on the financial strength and claims-paying ability of the issuing insurer, who is solely responsible for all obligations under its policies. Generally, annuities have contract limitations, fees, and charges, which can include mortality and expense charges, account fees, underlying investment management fees, administrative fees, and charges for optional benefits. Most annuities have surrender charges assessed during the early years of the contract if the contract owner surrenders the annuity. Withdrawals of annuity earnings are taxed as ordinary income and may be subject to surrender charges plus a 10% federal income tax penalty if made before you reach age 59 1/2.

Withdrawals reduce annuity contract benefits and values. Any guarantees are contingent on the claims-paying ability of the issuing insurance company. Annuities are not guaranteed by the FDIC or any other government agency; they are not deposits of, nor are they guaranteed or endorsed by, any bank or savings association. For variable annuities, the investment return and principal value of an investment option are not guaranteed. Variable annuity subaccounts fluctuate with changes in market conditions; thus the principal may be worth more or less than the original amount invested when the annuity is surrendered.

General Investing

What is a ROI (Return of Investment)

Analyzing ROI, or Return on Investment, is one of the most important things that you can do to evaluate the consequences of a financial investment or decision. ROI analysis is used when deciding whether or not to invest in the stock market, bonds or any other financial decision, including starting a business. It is extremely important to know what the return of investment is, to determine whether or not the decision is sound. Learning how to do a proper ROI analysis can help you to determine whether or not you want to make the investment.

Return of Investment analysis takes many forms but most work by figuring out a ratio, or percentage to use. Anytime that a ROI is more than 0.00 for ration, or a percentage greater than zero percent on percentages that means that the investment will return more than it initially costs. This tiny number is often how financial experts come up with which investments to go with, and your financial adviser may recommend a certain investment simply because it offers a better ROI, even if it is only better by a very small ratio or percentage.

However, one thing that you should keep in mind is that while ROI is a great way to analyze investments, it does not tel you how risky the investment will be. This has nothing whatsoever to do with the return of investment ratio, because the ROI simply predicts what the investment will return if it performs as you think it will. There is still a risk of investing and that can be calculated differently. Other financial measuring tools such as Net Present Value and Internal ROR (rate of return) also do not calculate the risk.

Learning how to use ROI for investments is fairly simple if you can do some math. Basically, it is the return divided by the cost of the action, which is the simple way to do it. For instance, if you invested $100,000 into an advertising campaign that will probably bring in additional revenue of $180,000 then your simple ROI would be 1.8, or one and a 8/10 return on your investment. In percentages that would be 180% return on your investment. This is obviously a very good return, as it is almost $100,000 in profit from that advertising campaign.

Knowing the ROI of an investment does not mean that the investment is sound however. It is only part of the story. There are many financial metrics such as Net Present Value or NPV, Internal Rate of Return (IRR) and payback period. Each one tells a different part of the story as well as the risk of the investment and several other factors. A professional investment consultant is needed to determine whether or not an investment is a good idea. Finding a qualified Fort Worth Financial Adviser is important to protect your money.

General Investing

All You Need to Know About Gold Proof Coins

Gold proof coins are especially minted for those who are interested in collecting coins and for presents to be gifted for special occasions. Such coins are not meant for purposes of circulation. These are usually manufactured as samples of preproduction and are a definite designation for such coins. The blanks are specifically created to mint proofs and are quite highly polished prior to their striking. These coins are produced using a special procedure giving it a shinier and glossier appearance in comparison to its bullion counterpart. Even the dies of such coins are thoroughly polished and specially prepared before using to mint them.

Gold proof coins are struck in a unique way and are given a special finish as well. Being produced in fairly limited amounts, they are quite rare. With the passage of time the value of these coins has been consistently increasing. Most often they are more expensive than their bullion cousin. The main reason for the difference in price between these two items of gold lies in the fact that the coins are rarer and their process of minting is comparatively expensive. Before you invest in such coins, you must bear certain essential factors in mind. Some of them have been outlined and explained in the following section.

A vital aspect while buying gold proof coins is that you must be aware of the fair price of the coin that you are interested in. This will prevent you from overspending while purchasing such a coin. It is recommended that to do some research on various dealers before buying such coins. Another vital aspect that you must know in this context is the distinction between such coins and gold bullion coins that closely resemble them. In this way you will be able to avoid the mistake of buying the wrong type of coin.

Another essential aspect while purchasing gold proof coins as opposed to the gold bullion is to know about the rate at which such a piece appreciates with the passage of time. You can do this by making a comparison of the difference in prices of such identical coins that had been produced in various years. One basic rule is that the older such gold coins, the more valuable it will be in comparison to its identical, newer counterparts. However, there is one exception to this rule. That is applicable if in a particular year lesser than usual coins are produced. In such a situation of scarcity, a newer coin can have greater value than its older identical counterparts.

Similarly, there are official figures which reveal that prices of gold bullion have steadily risen over the years. Historically, these items have proved to have the ability to supersede global recessions by being able to do well even when various other methods of investments fail to do so. It has managed to soar in value even when currencies have fallen drastically and has grown from strength to strength during situations of high inflation. Therefore, if you wish to reap some monetary profit, you can consider investing on these or gold proof coins. There are many around the world who stick to this safe and reliable method of investment.

General Investing

Fixed Rate Bonds ‘Effective Tool To Beat Inflation’

Fixed rate bonds continue to dominate the higher end of the savings market.

Although these savings accounts offer guaranteed returns, there is a small gamble involved when using fixed rate bonds, as the general census follow the Bank of England base rate so there is no guarantee that you will continue to benefit from the best rates throughout the full term.

On the other hand, the base rate can also remain low or fall significantly as we saw when the recession emerged. In this case if you were lucky enough to put your savings into a fixed rate bond you could still be earning well above the average.

Some might think that because the base rate is at its lowest level on record, it can only go one way – up. But on closer inspection you will see that it hasn’t moved in over 18 months, and with the inflation rate exceeding 3% for the fifth month now, unless you find an alternative savings engine your savings account rate is unlikely to be strong enough to avoid the effects of erosion.

A basic rate tax payer currently needs to be earning at least 3.88% from their account to stop inflation eroding their savings, while a higher rate tax payer must earn 5.17% – a rate that’s unheard of in today’s market.

Savers hit hardest by the rise in inflation are those that rely on the in interest earned from their savings as a source of income, many of whom are pensioners. The average savings pot held by a basic rate tax payer is in effectively being eroded at an annual rate of 2.51%.

Darren Cook, spokesperson for Moneyfacts.co.uk, said: “Inflation is a stealthy enemy for savers and when rates are low, it quietly erodes the spending power of a hard earned nest egg. Savers may have had a short respite from a marginal fall in inflation, but savings rates have hit a plateau and may be there for a while.

“The average one year fixed bond rate has fallen from 3.07% in January to only 2.54% today and the average five year fixed bond rate has fallen from 4.56% to 4.08% for the same period.

“The average instant access savings rate is still at rock bottom at a rate of only 0.74%. The only trigger for any improvement in savings rates may be a surprise increase in the Base rate by the Bank of England, but this is most likely not to happen soon.

“To just break even, higher rate tax payers need to find an account paying 5.17%, a level that is nigh on impossible to achieve.

“Only 87 out of a possible 1,244 accounts allow a basic rate tax payer to just break even at 3.88%. 51 ISA accounts beat inflation at 3.10%.

“It is difficult for savers to try and beat inflation but at best, they should try and stay within an arms length and try and weather the storm of low rates and high inflation.”

Some economists believe that the base rate will remain at it’s historic low of 0.5% until 2014. If this were the case, then by investing in a 4-5 year fixed rate bond could allow you to earn at rate of 4.75% – around 2% higher than some of the best savings accounts on the current market. ICICI fixed rate bonds offer a range of terms and sit at the top of many comparison tables.

If you’re willing to lock your funds away for a period of 5 years, you could earn 4.75%, with the ICICI fixed rate bond.