personal finance
The ABCs of personal finance and investing; how to invest wisely and grow your wealth.
9 Key Considerations When Sending Money Overseas
There are some key factors to consider when sending money overseas. With multiple service providers and different reasons for payments and amounts being transferred, the best choice in each case varies. Here are nine key considerations to help you choose wisely.
By Veselina Dzhingarova4 years ago in Trader
Survey: More Investors Say Bitcoin Likely To Hit $10K Instead of $30K
Bitcoin bulls guard Wall Street expects the cryptocurrency’s crash to get a whole lot worse. The token is more likely to tumble to$,000, cutting its value roughly in half, than it’s to rally back to$,000, according to 60 of the 950 investors who responded to the rearmost MLIV palpitation check. Forty percent saw it going the other way. Bitcoin fell2.4 to$,474 on Monday morning in New York.
By Chandler Voca4 years ago in Trader
Insurance: the one bet in your life that you don’t want to have pay off
Welcome to the latest post in my journey to build financial literacy for young adults and their families. Today’s post is the third part on insurance. In the first part, I discussed why insurance is necessary and provided an explanation of legally-required types. In the second part, I covered the insurance types which are not legally required but will be required by other parties such as your mortgage lender, your local or state government or a professional association. In today’s final post on insurance, I will cover additional insurance types which are not legally required, but serve important purposes, nonetheless.
By Sudhir Sahay4 years ago in Trader
Determining Flexible Hurdle Rates
When properly used, flexible hurdle rates can provide reasonable yardsticks for judging prospective spending proposals, and they also avoid the pitfalls associated with using a single hurdle rate. To apply flexible hurdle rates to your capital spending program, you will need to rate each proposal according to its degree of risk. High-risk proposals should require a relatively high rate of return to be acceptable; medium-risk, a somewhat lower return; and low-risk proposals, an even lower rate. Minimum-return standards for each risk category are based on assumed-risk capital costs. This approach involves three basic, relatively easy steps:
By Daniel Joseph 4 years ago in Trader
Finding the Right Type of Loan
Despite the intimidating procedures involved in negotiating a loan, your banker wants to lend you money. That’s the institution’s business. He has to be certain, however, to keep the bank’s money under control. One way to impress your banker is to speak his language; structure your loan proposal so that it fits neatly into one of the many loan categories that the bank uses.
By Daniel Joseph 4 years ago in Trader
If Your Banker Turns You Down . . .
Most businesspeople have been turned down for a business loan at least once in their careers, and it can be a wrenching experience. If your loan request is refused, don’t panic. Your company will probably prosper, even without the extra cash. However, you have some work to do. The first task is to find out why you have been turned down. Ask your banker directly. Ask for specifics; don’t settle for a vague answer, such as “undercapitalization.” You can’t correct the situation unless you know what is wrong. Most loan requests are turned down for one of the following reasons: 1. Poor communication. If you and the banker don’t hit it off, the chances for your loan drop precipitously. Solution: Ask to be serviced by another loan officer. You have a right to expect that the person serving you will be empathetic about your problems. 2. Uncontrolled expansion. Banks shy away from a company with a revenue growth rate that surpasses its ability to finance necessary expansion. Solution: If you want to finance an expan¬sion program, make certain that your business plan includes a full explanation of how your company expects to keep pace with sales growth. 3. Overly optimistic business plan. Your bank will check your sales and earnings forecasts against industrywide forecasts and may also match your projections against those of a company in a similar business. If your forecasts appear too optimistic, your loan will probably be turned down. Solution: Keep forecasts realistic, even conservative. 4. Past misuse of loan funds. If you use funds for a project not in your statement of purpose and the bank finds out, your chances of receiving another loan from that bank are slim. Solution: If circumstances beyond your control make it impossible to fulfill loan conditions, inform your bank at once. 5. Rapid inventory buildup. To a bank, a sudden surge in inventories means one of two things: poor planning or an unanticipated drop in sales. In either case, there is reason to hold off new credit. Solution: Make sure your inventories are in reasonable shape before you apply for a loan. Don’t expect the bank to finance inventories above the range you normally carry.
By Daniel Joseph 4 years ago in Trader
The Loan Application
A lender will make you fill out a loan application. Typically, the application asks for a great deal of information, some of which will be contained in the business plan: ● The loan amount requested. ● How, when and from where it will be repaid. ● Description of collateral. ● Names, personal financial statements and income tax returns for anyone who will personally guarantee the loan. ● General information about the business: name, addresses, phone numbers, tax ID numbers, year-end statements. ● Type of business and history of the busi-ness. ● Structure, management and ownership, including résumés. ● List of other businesses that the owners control. ● Complete audited financial statements for the last three years, including bal¬ance sheets, income statements and projections through the end of the year. ● Cash‑flow projections for the term of the note. ● Recent aging of accounts receivable. ● References from financial institutions with which your business has any kind of relationship. ● Customer references. ● Report on any significant developments for the business. ● Any additional material you want to include, such as brochures to help the lender understand the business.
By Daniel Joseph 4 years ago in Trader
Understanding What a Mortgage Is and How it Impacts Your Finances
Most Americans dream of homeownership, and many of them eventually achieve it. Doing so is often the biggest single financial transaction of a person’s life, and the benefits are enormous in terms of generating wealth and monetary stability throughout their adult life. Still, this only happens after someone understands what a mortgage is.
By Saagar Gupta4 years ago in Trader
Understanding When to See an Accountant
Accountants are defined as professionals who can offer vital advice to their clients when they have tax or financial questions. It is not uncommon for people to be hesitant about involving an accountant in their lives, but understanding the circumstances where an accountant will come in handy is crucial if a person wants to make the most of their money and get clear-cut answers from experts.
By Saagar Gupta4 years ago in Trader
If It's More Money You Seek Listen To The Tips Of The Rich
With the looming fear of a recession, caused by the Federal Reserve aggressively raising interest rates to combat inflation, money has been on everyone's minds. From the lowest rung on the ladder, fuel, to the highest rungs and the millionaires that control them, we’ve all seen the signs that there’s reason to worry. With so many different strategies, there’s one that makes good sense and benefits anyone using it.
By Jason Ray Morton 4 years ago in Trader
