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Archive for the ‘Investment’ Category

Investment boom? What investment boom? – MarketWatch

Posted: May 9, 2019 at 5:49 am


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Investment was supposed to boom after the tax cut.

First-quarter economic growth exceeded even the most optimistic expectations, expanding at a 3.2% annualized rate. The Trump administration was quick to take credit for the continued strength in the U.S. economy.

At a rally in Green Bay, Wis., Saturday night, President Donald Trump again declared that his leadership and policies were delivering what he refers to as the best economy in history.

Kevin Hassett, chairman of the White House Council of Economic Advisers, got more specific.

The gross domestic product report confirms our view that the momentum from last year was not a sugar high but a serious response to long-run policies that have made the U.S. a more attractive place for business, Hassett told the Wall Street Journal on Friday.

Theres just one problem with Hassetts assessment.

The unexpected strength in the GDP report came from inventories, trade, and state and local government spending, not from business investment, which is where one would expect to see the response to the kind of long-run, supply-side policies Hassett implied.

Private final demand, which is known in the GDP report as final sales to private domestic purchasers and which should be the beneficiary of tax cuts and deregulation, rose an anemic 1.3%, the smallest increase in six years.

At the same time, net exports (exports minus imports) and inventories accounted for a combined 1.68 percentage points more than half of the first quarters GDP 3.2% growth and the largest contribution in six years.

So wheres the tax-cut-driven boost in capital expenditures?

Real nonresidential fixed investment business spending on structures, equipment and intellectual property rose at a 2.7% rate in the first quarter, half the fourth-quarter pace.

Yes, there were two back-to-back quarters of solid capex growth in 2018 following the enactment of the Tax Cuts and Jobs Act. Business fixed investment rose 11.7% in the first quarter of 2018 and 8.7% in the second before slumping to 2.5% in the third.

However, investment posted solid, back-to-back quarters in the middle of 2014 as well, with real GDP averaging 5%.

Also read: Manufacturers grow at slowest pace in April since Trump elected, ISM finds

Whats more, investment in structures posted a third consecutive quarterly decline in the first quarter, while spending on equipment rose a paltry 0.2%. A key barometer of future capital spending, new orders for nondefense capital goods excluding aircraft, has seen a deceleration in year-over-year growth since its recent peak in September 2017.

Also read: Construction spending tumbles in March as housing takes it on the chin

Meanwhile, housing, or residential investment, posted its fifth consecutive quarterly decline and seventh in the last eight quarters. Fixed investment, both residential and nonresidential, contributed a combined 0.27 percentage points to first-quarter growth. Not exactly a supply-side endorsement.

Mondays Outlook column in the Wall Street Journal begs to differ. The Supply Side of the Economy is Flashing Strength, reads the headline. The article by Jon Hilsenrath cites a consensus-estimate 2.3% jump in first-quarter productivity growth (which was reported on Thursday as a 3.6% increase) and nascent signs of a pick-up in labor-force growth.

That would certainly be welcome news. An aging population and a 15-year slump in productivity are limiting the economys capacity to expand without creating inflationary pressure. Faster potential GDP, of course, would mean that the economy can run hotter for longer without triggering a response from the Federal Reserve.

If you take the Fed at its word, policy makers would like to see a bit more price pressure after years of undershooting their 2% inflation target. It remains to be seen what will happen if and when inflation pierces that barrier and heads higher.

It is always possible that measured productivity growth will show a lagged response to technological innovation, as it did in the 1990s. Economist Robert Solow famously remarked in 1987 that you can see the computer age everywhere but in the productivity statistics.

As if on cue, productivity growth then exited its two-decade slump in the mid-1990s to exceed 3% over the next 10 years.

If you believe, as I do, that much of todays technology is distracting, addictive and productivity-sapping, then Solows prescience may not come to fruition anytime soon.

Now, the first quarters odd distribution of growth was probably a fluke, or just plain weird, as economist Douglas Holtz-Eakin, president of the American Action Forum, called it. The government shutdown in January may have dampened consumer spending and prompted businesses to delay planned investments. Strong retail sales in March support the idea of deferred consumer purchases.

In 2016, 2017, and 2018 the dominant source of growth was households and businesses, which had contributed more than 100% of growth on average, Holtz-Eakin writes. That compares with 43% of the growth in final sales in the first quarter.

Even a reversal of the first-quarters contributions to growth in the second quarter wouldnt settle the question of whether last years 3% GDP growth was a tax-cut-driven sugar high or a supply-side miracle.

It would take a consistent improvement in productivity growth from the 1.4% post-2004 average and sustained 3% growth in real GDP compared with the sub-2% estimate of potential, before we can extrapolate a new trend, not to mention a new normal.

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Investment boom? What investment boom? - MarketWatch

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May 9th, 2019 at 5:49 am

Posted in Investment

Investment Analyst Program – IFC

Posted: February 28, 2019 at 2:44 am


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IFC is seeking Investment Analysts to support investment teams to develop new business, execute transactions and actively manage portfolio projects in any of the following industry areas: Financial Institutions; Infrastructure and Natural Resources; Manufacturing, Agribusiness and Services; and Telecommunications and Venture Capital.

Positions will be located in IFC Headquarters (Washington, DC), Asia (e.g. Beijing, Singapore, Delhi, or Mumbai); Europe and Central Asia (e.g. Istanbul or Vienna), Middle East and North Africa (e.g. Cairo or Dubai), Africa (e.g. Dakar, Nairobi, or Johannesburg), and Latin American and the Caribbean (e.g. Mexico City, So Paulo, or Bogota).

Responsibilities

Qualifications

IFC recruits investment analysts globally on two-year term contracts extendable to a maximum of four years. Upon completion of their contracts, investment analysts typically leave to pursue a graduate degree or additional work experience, while a select number are promoted to Associate Investment Officer positions.

Application and Selection Process

Expressions of interest will be reviewed by our recruitment experts on a rolling basis, and you may check the status of your application(s) online at any time.

We will place the profiles of short-listed candidates in a database accessible by interested IFC hiring managers. Individual hiring managers will then contact selected candidates directly for interviews. IFC departments hire investment analysts on an as-needed basis throughout the year, so applicants may remain in the database for up to six months after application. Applications will be received until June 30, 2019. Not all short-listed candidates will be contacted for an interview.

We also encourage interested candidates to visit the Current Opportunities section of our Careers website to view and apply for open Investment Analyst positions in specific locations.

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Investment Analyst Program - IFC

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February 28th, 2019 at 2:44 am

Posted in Investment

Investment Services – ifc.org

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Sound corporate governance helps businesses attract investment on better terms. Clients are more accountable to investors and responsive to stakeholder concerns. They also operate more efficiently and are able to better manage risks.

As understanding of the business case for CG grows, our clients seek to take advantage of our global knowledge and experience to help them identify needed improvements. Many of our partners are planning IPOs and understand the need to build their reputation in this area if they are to have a successful listing. Others are growing family businesses with a need to formulize their CG structures.

Research shows an increasing correlation between good CG policies and practices and the ability of companies to attract reliable business partners and expand their access to capital. Better risk management, internal controls, financial disclosure and a well-functioning board working together with management all contribute to the stability and sustainability of an enterprise.

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Investment Services - ifc.org

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February 28th, 2019 at 2:43 am

Posted in Investment

Quality Infrastructure Investment (QII) Partnership

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FY

Grant type

Country

Activity

GP

Grant Amount

Project Size

FY17

Just-in-time

Argentina

Support for the Preparation of ToRs and Early Implementation of the Salado Integrated River Basin Management Support Project

Water

$ 70,000

300,000,000

FY17

Just-in-time

Bangladesh

Enhancing Quality of Municipal Infrastructure in Bangladesh

Social/Urban- Rural/Resilience

$ 70,000

410,000,000

FY17

Just-in-time

Ecuador

Quality Infrastructure Investment Partnership (Ecuador Manta)

Water

$ 70,000

100,000,000

FY17

Just-in-time

Ecuador

Ecuador Ibarra Transport Infrastructure Improvement Project

Transport

$ 70,000

52,500,000

FY17

Just-in-time

Mexico

Quality Infrastructure Support for the Mexico Urban Transport Transformation Program

Transport

$ 70,000

150,000,000

FY17

Just-in-time

Tuvalu

Implications of Sea Level Rise on Coastal Infrastructure

Transport

$ 70,000

2,880,000

FY17

Standard

Argentina

Preparation and Implementation of Management and Results Plans (PGRs) for main Water Supply & Sanitation Operators of Northern Provinces

Water

$ 275,000

125,000,000

FY17

Standard

Bangladesh

Bangladesh - QII Enhancement to Clean Air and Sustainable Environment (CASE) Project

Transport

$ 450,000

87,200,000

FY17

Standard

Egypt

Support for the Implementation of Infrastructure Aspects of the Upper Egypt Local Economic Development (UELDP) PforR a US$ 500 Million Flagship Operation in the MENA Region

$ 500,000

500,000,000

FY17

Standard

Ethiopia

Support to Establishment of Effective Pperation and Management Model for Sanitation Facilities in Addis Ababa and 10 Other Selected Cities

Water

$ 300,000

445,000,000

FY17

Standard

India

Urban Infrastructure for Amaravati City Development

Social/Urban Rural/Resilience

$ 700,000

300,000,000

FY17

Standard

Mexico

Technical Assistance to the Water Utilities of the MAS Oaxaca Program

Water

$ 275,000

55,000,000

FY17

Standard

Peru

Supporting Measures to Develop New Management Models and Improve Efficiency of Water Supply and Sanitation Service Providers in Peru

Water

$ 275,000

100,000,000

FY17

Standard

Tunisia

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Quality Infrastructure Investment (QII) Partnership

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February 28th, 2019 at 2:43 am

Posted in Investment

Best Investment Companies: List of 10 … – brokerage review

Posted: February 2, 2019 at 12:44 pm


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Commissions and Fees

Services

Best Investment Companies Overview

Some of these top 10 investment companies allow opening an account with no initial deposit requirement ($0 down) and no obligation (customers can close non-retirement account with no fee with all of these firms; and some brokers, such as Scottrade and Charles Schwab, also don't charge retirement account closing fees). This is a great opportunity to open a few brokerage accounts, and see first-hand which one you like better.

All of the top financial investment firms in the list above do not charge account maintenance fees for non-retirement accounts (except IB). Some of the companies have retirement account fees: we suggest to check our Fees pages for a complete information (links to these pages are available in our brokerage reviews). IB is the only broker in the list above that might charge account inactivity fee in some instances.

As you can see, commissions on stock and ETF trades range anywhere from $0 charged by Firstrade all the way up to $6.95 at TD Ameritrade and Etrade. Some of the investment firms have lower pricing for active traders. TD Ameritrade will also give traders better pricing but they don't advertise this ability - customers that can show that they are active traders can call the firm and negotiate lower rates.

Mutual funds commissions have even wider range of prices: the rate is anywhere from $0 at Firstrade and all the way up to $76 for purchase transaction at Charles Schwab. Many of these investment firms also offer no transaction fee mutual funds and that allows their clients to buy and sell mutual funds without paying commissions.

On the surface it may seem that some of the brokerage firms mentioned are expensive (TD Ameritrade or Etrade) while others are very cheap (Ally Invest and Firstrade). Generally speaking it's true. But for many clients there is a way to invest with some higher priced brokers basically for free. TD Ameritrade is the best case: the firm offers 296 commission free ETFs, thousands of no transaction fee mutual funds, and a promotion that offers 60 days of trading for free. With all these perks most customers could essentially create a diversified portfolio at the firm without paying any commissions.

Each of the 10 top financial investment companies has its strengths and weaknesses, and not every firm is right for a particular investor. We encourage readers to take a time to read the reviews, to see if a specific firm is a good fit for them.

The top investment companies are not shy to offer new customers promotional deals and incentives for opening a new non-IRA or even a retirement account: anything from reimbursing account transfer fees charged by an old broker; free trades for a period of time (usually one or two months); and up to significant cash bonuses (where amount of bonus often depends on the amount of initial deposit). Investors should definitely take advantage of these offers!

The Bulls and Bears of Investment Firm Advice

Besides selling funds, there could be other conflicts of interest. For example, a stock investment company could benefit from placing trades in a managed account. The firm could also receive compensation by recommending a certain custodian for client assets.

Investors who elect to turn over their assets to an investment advisor also lose the incentive to educate themselves about financial topics. There's a certain level of blind trust when clients simply turn their money over to an advisor.

Despite the disadvantages of investment broker advice, there are certainly benefits. A financial advisor is an excellent choice for beginners who aren't confident enough to make decisions with their own money. Financial planning could also benefit older people who are in retirement or approaching retirement. People who simply don't have enough time to manage their finances could also benefit from the services of a professional money manager. Many of the above top 10 investment companies offer such investment advice.

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Best Investment Companies: List of 10 ... - brokerage review

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February 2nd, 2019 at 12:44 pm

Posted in Investment

Accounting for Investments | Types | Examples

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Investments are assets which represent a companys right to receive cash from its stake in another company, government, etc. Investments are made through purchase of bonds or shares or other financial instruments of the investee. The intent behind making such investments is to generate investment income (interest and dividend) and to benefit from expected capital gain.

Investments are reported by the investing company on its balance sheet, classified into current and non-current portion. Investments which are expected to be sold within next 12 months are called short-term investments while investments other than short-term investments are called long-term investments. Some investments, which are can be easily converted to cash with negligible fluctuation in its value, are classified as cash equivalents.

Investments can be made in debt securities, equity securities, commodities, derivative securities, etc. Debt securities are financial instruments that represent right to a determined stream of cash flows for a definite period of time. For example, government bonds, corporate bonds, municipal bonds, notes receivable, etc. all have a pre-determined payout for a specific period. Equity instruments are securities that represent residual (ownership) interest in a company, for example, shares of common stock, etc. Derivative securities are financial instruments which derive their value from other financial instruments. They are contracts whose value depend on another variable, for example, price of a common share of a company or its bond price or on price of a commodity, etc.

Traditionally debt securities have been classified into three categories:

However, new accounting standards (IFRS 9) require classifying debt investments into two categories: (a) investments carried at amortized cost and (b) those carried at fair value through profit and loss.

Accounting for equity investments depends on the extent of ownership:

Where the ownership is anywhere below 20%, the equity investment can be classified into any of the following categories:

New accounting standards have introduced a new classification framework for equity investments representing less than 20% ownership in companies. They require such equity investments to be accounted for either as (a) fair value through profit and loss or (b) fair value through other comprehensive income.

You are a Treasury Accountant at Flow, Inc., a futuristic technology-enabled financial services company. Its cash and cash equivalents at 1 January 2015 stood at $2.2 billion. A newly appointed Treasury Manager embarked on an aggressive investment spree. During the year, the company entered into the following transactions:

At the year end, i.e. 31 December 2015, investment in Dots, Inc. dropped to $290 million, investment in Air, Inc. rose to $500 million while investment in Fiber, Inc. was valued at $350 million. The company earned dividends of $2 million from Dots, Inc., nothing from Air, Inc., nothing from the equity mutual fund and nothing from Fiber, Inc. Fiber, Inc. net income for financial year 2015 amounted to $15 million.

Classify the above investments into different traditional investment categories and outline the accounting treatment of related gains or losses.

Solution

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Accounting for Investments | Types | Examples

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February 2nd, 2019 at 12:44 pm

Posted in Investment

4 Best Investments To Make In 2018 – forbes.com

Posted: December 25, 2018 at 2:42 am


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Its the dawning of a new year and you finally have some money to invest. Perhaps you just got a raise. Or, maybe an end-of-year bonus is burning a hole in your pocket. Either way, you need to be smart about investing if you want those extra dollars to count.

The problem is, you have no clue where to invest your cash. While youre aware of the myriad investing options available, the sheer number of possibilities is overwhelming.

In the investing world, this is called paralysis by analysis. You spend so much time analyzing your options that you wind up putting it off and never investing at all. And eventually, the extra cash you set aside gets consumed by bills or unexpected expenses. In other words, life happens.

If you want to make sure your extra cash doesnt disappear, you need to invest it right away. A certain amount of analysis is fine if it helps you find the right investment options for your goals, but you still need to act fast.

With that in mind, I wanted to share what I believe are the four best ways to invest your excess funds in 2018.

While invest in the stock market is some of the most basic advice youll ever read, please hear me out on this one. While everyone knows that investing in the stock market has historically paid off, there are far too many people who dont trust the financial markets and choose to sit on the sidelines altogether.

Then there are people who think the stock market is so overvalued right now that they would be crazy to jump in. But, heres the thing: Instead, Im suggesting you invest small sums of money over time using a method called dollar cost averaging.

Dollar cost averaging requires us to trickle our money into investments over any length of time. It could be 12 months. It would be 18 months. Heck, it could be five years.

Colorado financial advisor David Henderson of Jenkins Wealth goes further to explain how dollar cost averaging works: When the market is high, you buy fewer shares and when the market is low you buy more shares, he says. This means that, over time, you will have a lower average share price using this method. Obviously, its easy to see why this would be beneficial.

Now that weve talked about the importance of investing in the stock market, lets talk about exactly where to invest your money. What are the best tools and vehicles we can use?

This is yet another situation where the options are overwhelming. Still, I typically suggest people get their feet wet with mutual funds or ETFs.

If you have a financial advisor working on your behalf, they may be able to weed out the well-performing actively managed mutual funds from the ones that arent doing so great. Otherwise, you can invest in index funds, which are not actively managed but have a long history of solid returns.

If you have a brokerage account already, then you may want to stick with it. Otherwise, youll need to find a new place to help you invest your funds. One company I always suggest is Betterment. With Betterment, your money can be invested in ETFs and they dont charge a fee for managing these for you. Plus, they actually pick the ETFs you invest in based on your appetite for risk, investing goals, and other factors.

What does that mean? That means that you can invest your hard-earned money, then sit back and enjoy the returns and let them do the hard work.

If you want to have more control on your investments, online brokerage firms like Ally Financial, TD Ameritrade and E-Trade make it easy to stay in charge with low fees and easy-to-use platforms. Plus, there are a multitude of other "robo-advisors" to choose from.

As a final note, theres one more simple way to invest in the stock market with even less effort boosting how much you contribute to your work-sponsored retirement account. Arizona financial planner Charles C. Scott says this may be your best option yet especially if youre not contributing enough to get a match from your employer.

Every dollar you contribute could get a dollar match, says Scott. Thats a 100% return on your investment.

If youre not making the most of your 401(k) or contributing enough to get a match, then youre probably best starting there.

A second place to stash some of your excess cash this year is in peer-to-peer lending platforms like Lending Club and Prosper. With these companies, youre able to loan money to individuals in small increments as if you were the bank. The best part is, you get to earn a pretty decent rate of return usually upward of 6% or more.

As an investor in peer-to-peer lending, youre investing in other people and their goals. It's comforting knowing you arent lending people you dont know large sums of money. Instead, the money you invest is split up into increments as small as $25 over hundreds or even thousands of loans.

While it may seem strange to hear a financial advisor suggest people invest in peer-to-peer lending, Im not the only one who sees the value in these platforms. Kansas City Financial Advisor Clint Haynes told me he supports peer-to-peer lending as an alternative to the stock market for a few reasons. First, these companies make it easy to sign up and get started. Second, your rate of return can range from 5 7 percent for safer loans and even more for riskier loans. Last but not least, you can typically open a new account with as little as $1,000.

In addition to the stock market and peer-to-peer lending websites, a third investment strategy to consider this year is real estate. The thing is, Im not suggesting everyone run out and buy an investment property. After all, not everyone is cut out to be a landlord.

Im certainly not. I tried investing in physical real estate seven years ago and almost lost my shirt. I learned a lot of lessons from my foray into becoming a landlord, the biggest of which was that I dont need that kind of stress in my life.

Fortunately, there are plenty of ways to invest in real estate without dealing with a physical property. One option to consider is investing in real estate notes. I got started investing into real estate notes because a really good friend of mine was crushing it with real estate and offering his friends the chance to invest.

He would buy a pool of real estate properties, and then investors like myself would invest money into his project. From there, he would manage the properties and pay me a dividend or interest off that money. For me, this has been an attractive way to invest money without having to be a landlord or deal with tenants.

Obviously, there is a ton of risk in a situation like this. You have to have a lot of trust to invest in real estate notes offered by an individual.

The good news is, there are other ways to invest in real estate outside of real estate notes. One option Im really excited about is a company called Fundrise. Fundrise offers an investing scenario similar to the one above. They buy commercial properties and allow investors to invest small sums of money. Obviously, this is yet another hands-off investment. You may own part of a commercial real estate project, but you dont even see or deal with the property itself.

Like Lending Club, Fundrise requires an upfront sum of around $1,000 to get started. Once you invest, however, Fundrise mostly lets you set it and forget it. Even better, you may receive a pretty hefty rate of return through this platform. On the company website, Fundrise claims its returns have averaged between 8.76% up to 12.42% over the last five years. Not too shabby.

Obviously, there is risk investing in a platform like this one, too. First off, the company is newer so it doesnt have decades of data to share. Second, youre letting a third party choose buildings and investments on your behalf, which means youve given up all control.

Regardless, I think its pretty cool that technology has allowed investors to get access to commercial properties in a way we havent been able to in the past.

This last investment option might sound cheesy, but its one of the best investments anyone can make.

Believe it or not, there are a ton of ways to invest in yourself that dont cost a ton of cash at all. One of the best ways to improve yourself could even be free if you have a library.

Thats right; read a ton of books! But, how many should you read? Minneapolis Financial Planner Morgan Ranstrom says that reading three to five books on successful personal finance strategies or leadership skills will absolutely make you smarter over the course of a few months.

If you have more time, you could read even more than that. If youre not sure what to read, you could even consider signing up for Leaderbox a monthly subscription service that includes books and leadership strategies curated by thought leader Michael Hyatt.

It's been stated that CEOs of major corporations read 60 books per year on average. These guys and gals are managing businesses worth millions or billions, and they can still read 60 books a year. Imagine how busy they are. Now, ask yourself how busy you are.

If you dedicate yourself to reading just one book a month 12 books per year I promise you will be amazed at the results.

Of course, reading isnt the only way to invest in yourself. Another investment you can make into yourself is in courses or investing into material that you can learn from other people. Trust me; everyone has something to learn.

Personally, I have found a lot of success via learning from others in my niche. Recently, I even paid $3,500 for a course on how to launch a successful YouTube channel. That might sound crazy to some people, but I have made investment back and then some already.

A third way you can invest into yourself is through personal coaching. I've done a few different ways. I went to a business and entrepreneurship coach for five years and spent a ton of cash that I could barely justify. The thing is, this investment paid off in spades even though it was expensive.

Youcan also hire a personal coach to help you with whatever your goals are. There are career coaches. There are business coaches. There are fitness coaches. There are life coaches.

While coaching is expensive, its amazing what you can accomplish when you have someone to be accountable to.

Last but not least, dont discount the idea of going back to school. Brian Behl, a Wealth Advisor with Bronfman Rothschild tells me he feels too many people overlook this option when it might be their ticket to long-term wealth.

Lets say you could spend $10,000 on a designation or advanced degree but it increases your annual income by $10,000 or more. Thats an incredible rate of return, says Behl, but it becomes an even better investment when you consider how much more youll earn over 20 or 30 working years.

While it would be great to invest these funds in your portfolio, there is no investment which is likely to pay off in this way, says Behl.

And if you think youre too busy to go back to college, dont forget about online degrees says, Orange County financial advisor Anthony Montenegro of The Blackmont Group.

Many of the countrys top-ranked schools also accommodate the busy professional by offering certificate and degree completion programs online, he says. If youre interested in becoming more marketable to your current employer or want to explore opportunities with a competing company, consider carving out time to study for a graduate degree or specialized designation for your industry.

Investing in yourself might sound clich, and it is, but its a bet that could absolutely pay off. And if you want to make the most of your investments this year, betting on yourself is one of thesmartest moves you can make.

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4 Best Investments To Make In 2018 - forbes.com

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December 25th, 2018 at 2:42 am

Posted in Investment

Investment Calculator

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What do Aggressive and Conservative mean?

The Investment Calculator uses two investment strategies that typically produce two different retirement scenarios. Aggressive investing indicates a higher financial risk with a higher potential reward, while conservative investing offers a lower financial risk with a more moderate potential reward.

Aggressive investing typically means that you will invest in more stocks than in bonds. This type of investment strategy is smart when you have a longer amount of time before your retirement. A longer amount of time can also, in theory, withstand all the volatility of the stock market. The other good news is that more time passing will compound your interest, resulting in significantly larger retirement savings.

Conservative investing is a more balanced strategy in which you invest in stocks as well as bonds. The return, or the amount that your money grows, is not as large as it can be when aggressively investing but the risk is lower. Conservative investing is best when your retirement date is nearby. Vanguard published a great article about these types of scenarios, showing the historic risks and rewardsin quantitative form. These table graphs will show the differentstrategies in terms of being growth or balanced oriented anddisplays the assumptions behind each retirement strategy.

The retirement calculator takes the Total retirement savings and calculates how much monthly income a 4% annuity would generate without drawing from the principal. This indicates the type of lifestyle you can expect without running out of money.

Inflation is inevitable. If that word is new to you, it simply determines how much purchasing power of your dollar. Historically, inflation has always increased with time. The average inflation is currently 3.22%.

These recommendations are correlated to a comfortable lifestyle. Comfortable lifestyle is a subjective term used to describe retirement savings that lets you be mostly free from financial restrictions or fears. A recommendation helps you know what your monthly investment and initial investment should be in order to achieve a comfortable retirement lifestyle.

The investment calculator uses three lifestyle terms to depict retirement scenarios: Frugal, Content, and Comfortable. Frugal describes a lifestyle where you will have to carefully monitor your spending to make sure your savings will last. A comfortable lifestyle describes a scenario where you can spend librally and enjoy retirement. Content is somewhere in the middle where you are able to enjoy retirement but still monitor your spending.

No, Social Security is not included in this retirement calculation. The investment calculator leaves out Social Security because it tends to vary too greatly from person to person. Social Security also varies depending on the age that you decide to collect. If you collect at age 62, you will receive 25% less. If you collect at 70, you can collect a check for 32% larger.

Social Security is important in calculating your retirement savings. It can impact your monthly retirement income greatly. The average monthly retirement benefit was $2,687 in 2017, or $32,000 for the whole year. The goal of this calculator is to help you define helpful strategies but not to give individualized investment advice.

Investment Calculator provides a generalized overview of your retirement situation, but it is not intended to replace a financial advisor. Our goal is to help you get a better understanding of your financial outlook and inspire you to save / invest more.

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Investment Calculator

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December 25th, 2018 at 2:42 am

Posted in Investment

The 4 Best Investment Ideas You Can Make (for 2018)

Posted: December 20, 2018 at 8:42 pm


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It's THAT time... Happy New Year party people . If you've got money to invest in 2018 but no idea where to put it? This video is for you... yes, YOU.

I'm sharing my 4 best investment ideas with you as we ring in 2018.

#1 - INVEST IN THE STOCK MARKET

While everybody may say to invest in the stock market... the reality is, a lot of people do not even do it. Do you?

What is "dollar cost averaging"?? And how is it going to calm your fears with the ups and downs of the stock market?

Where do I think you should invest? #FreeAdvice

*** HERE ARE MY FAVORITE PLATFORMS TO START INVESTING ***

Betterment - Best company if you don't want to choose the investments. They do all the pickin' for you!

https://www.goodfinancialcents.com/re...

Ally Financial - Pick stocks, ETFs, Mutual Funds, etc with the help of their tollfree number!

https://www.goodfinancialcents.com/re...

TD Ameritrade - The best online broker for online stock trading, long-term investing, and retirement planning.

https://www.goodfinancialcents.com/re...

Etrade - You're in full control of your financial future with them. They have the information, the analysis, and the online investing & trading tools you need. Have at it.

https://www.goodfinancialcents.com/re...

Individual Stocks? STAND BACK, YO!

#2 - INVEST IN PEER TO PEER LENDING Do I sound like a broken record yet? I'm always talking about peer to peer lending and the benefits.

A few peer to peer lending providers I like include:

Lending Club - It's a place where borrowers and lenders alike can connect and make magic happen.

https://www.goodfinancialcents.com/re...

#3 - INVEST IN REAL ESTATE

This is the part where I lost my butt investing and I'm really hoping I can save you from making the same mistakes I've made.

Without being a landlord... there are other ways to invest in real estate - check it out!

What is Fundrise? And why am I recommending it as part of your investment strategy?

GET THE DETAILS

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#4 - INVEST IN YOURSELF

Surprised that I'm calling that a real kind of investment? Whether it is reading more or taking an online course on a site like Udemy or Skillshare, investing in yourself is the best thing you can do in 2018.

What course I paid $3,500 for to learn something... CRAZY? No way!

Bitcoin? My thoughts are all here... and here's WHY I'm not investing in it, yet.

Want More Good Financial Cents?

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Originally posted here:
The 4 Best Investment Ideas You Can Make (for 2018)

Written by admin

December 20th, 2018 at 8:42 pm

Posted in Investment

Types of Investments – Nationwide

Posted: October 3, 2018 at 11:41 pm


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There are three main types of investments:

You can invest in any or all three investment types directly or indirectly by buying mutual funds. Another option is to invest in tax-deferred options, such as an IRA or annuity.

Companies sell shares of stock to raise money for start-up or growth. When you invest in stocks, youre buying a share of ownership in a corporation. Youre a shareholder.

There are two types of stock:

Investment returns and risks for both types of stocks vary, depending on factors such as the economy, political scene, the company's performance and other stock market factors.

When you buy a bond, youre lending money to a company or governmental entity, such as a city, state or nation.

Bonds are issued for a set period of time during which interest payments are made to the bondholder. The amount of these payments depends on the interest rate established by the issuer of the bond when the bond is issued. This is called a coupon rate, which can be fixed or variable. At the end of the set period of time (maturity date), the bond issuer is required to repay the par, or face value, of the bond (the original loan amount).

Bonds are considered a more stable investment compared to stocks because they usually provide a steady flow of income. But because theyre more stable, their long-term return probably will be less when compared to stocks. Bonds, however, can sometimes outperform a particular stocks rate of return.

Keep in mind that bonds are subject to a number of investment risks including credit risk, repayment risk and interest rate risk.

Cash equivalent investments protect your original investment and let you have access to your money. Examples include:

These different types of investments generally deliver a more stable rate of return. But cash equivalent investments arent designed for long-term investment goals such as retirement. After taxes are paid, the rate of return is often so low that it doesnt keep pace with inflation.

Go here to read the rest:
Types of Investments - Nationwide

Written by admin

October 3rd, 2018 at 11:41 pm

Posted in Investment


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