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Investments

Beware the Latest Investing and Trading Traps

While most of us, concerned investors that is, have been glued to CNBC and other screens for information and explanation on what is happening with the markets, our 401(k) and IRA, there has been a surge in activity on the part of the brokerage houses promoting trading tools and new offerings. Investors BEWARE! In a bear market like this one, brokerages are naturally playing the investors’ fear and disappointment by offering “better” and “more sophisticated” tools, concealing their intent for more risky and expensive trades. Most of those tools are either screening, back testing tools or more advance trading methods, via futures and options. Don’t fall for the trap and do your homework first!

Let me start with the screening. After checking over ten paid and free screening tools I can summaries that they give you so many options that will definitely confuse you more than help. And what good does it do if you have the tools but do not have the knowledge on how and what to search on? The search education offered is rudimentary teaching you to execute a search on low P/E, good dividend yielding, high growth companies. So the screener pulls two unknown firms that fit the screen. Would you invest in them without spending time to read the financials, annual report, message boards and the info on the internet? Well, no, so then you are back to square zero. With or without a screener you are doing the homework. However, if you invest blindly and get lucky, do it a second time, lose your investment in its entirety, you will forget about the screener forever.

What about the back testing programs? All sounds good, until you realize that the past does not predicts the future. Imagine that you are sitting comfortably in front of your computer in August 2008. You know that there has been this financial crisis looming, but the Fed is dealing with it. Cool! You decide to back test some strategy, be it in options, futures or any other instrument. Most probably you will be seeing a bull bias depending on how far back you go to source your data in the back tester. Well, guess what? The back tester did not hold information with such dare consequences that would come in the two months ahead and you will make information based on the wrong inputs. The back testers and statistics behind such programs have played a nasty trick to all these sophisticated investors as well, including financial PhD trying to outsmart the market via statistical arbitrage, black box, algorithmic trading and so on and so forth. What the back testing will do to an investor is set him her for a “Black Swan” event, that is unknown unknown, to lose trillions of dollars as is happening right now.

 

And last, beware the newly pitched products. Options and futures I mean. The majority of the marketed products and brokerage houses offer you many and better ways to LOSE big! And they charge way too much for what they offer. I have signed up and used over five brokerage houses to find out that just one of them that I have been customer of does bring value. Not only in fair and disclosed commissions, but also in education and care of their customer base they provide. Others make you feel comfortable and cozy and charge four times what you expected to pay. Creative marketing and presentation I call this.

This post is not to bash the brokerages direct, but to point out more about the traps they are setting up to the regular and scared investor. Do not fall for them! Do your homework, ask questions and start small to figure out where the trick is. Good trading and investing and wish all the best!

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Investments

The Difference Between a Financial Advisor and a Registered Investment Advisor

According to a survey performed by the Security and Exchange Commission, most individuals are not aware of the differences between a financial advisor and a registered investment advisor. There are several key differences though, and it is important for anyone placing their trust and hard earned cash in the hands of one of these advisors to be aware. If you are considering seeking the counsel of a financial planner or investment advisor, here’s an explanation of the differences between the two.

The Financial Advisor

A financial advisor buys and sells securities on behalf of his or her client. They may set up retirement plans for individuals, or 401(k)s, IRAs, or other types of and pension programs for corporations. Financial advisers may also offer stocks, bonds, mutual funds, and assist with end of life wealth distribution plans.

 

Financial advisers have detailed knowledge in accounting, finances, and an understanding of the way the market works. Other responsibilities of the financial advisor include:

  • Instructing clients on investment opportunities
  • Keeping up with the financial market
  • Assessing the risk in an investment
  • Helping clients cope with the loss of an investment

These advisors may obtain additional certifications and continue their education in order to serve their clients better and obtain more knowledge about the ever-changing financial market.

Financial advisors, wealth managers, investment analysts, and other similar titles are often paid by receiving commissions directly related to the financial products they advise clients to purchase. Financial advisors may also charge fees for portfolio management. This can be a flat fee or a percentage of the value of the client’s investments.

The Registered Investment Advisor

A registered investment advisor has many of the same job duties as a financial advisor. However, there is one key difference between the two, and this difference can mean a lot to potential clients who are seeking help with their financial investments. This difference is what is known as fiduciary.

Investment advisors are registered and governed under the Investment Advisors Act of 1940. While some financial advisors may be simply working to push financial products to earn a commission, registered investment advisors are held to a much higher standard. Being fiduciaries, and held to a fiduciary standard, a registered investment advisor (RIA) is required to place the best interests of the client ahead of their own or the interests of any brokerage firm. RIAs avoid conflicts of interest by charging a flat fee instead of earning commissions on products sold.

When choosing between a financial advisor or a registered investment advisor, the best way to do so is by asking for a fee disclosure. If your financial advisor earns commissions and bonuses from the sale of mutual funds or other financial products, they may run into conflicts which could skew the advice provided to clients.

A registered investment advisor, held to the fiduciary standard, avoids these conflicts by setting rates according to the work completed, not according to product sales.

When it comes to protecting your wealth and your financial future, the all important first step is to know who you are dealing with. Sound, impartial financial advice is key. Who are you listening to? Is your wealth manager a financial advisor or a registered investment advisor? It may be time to find out.

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Investments

Gold Bullion is a Great Form of Financial Investment

Since the days of the discovery of gold, it has been attracting men and women across several cultures, geographical boundaries, and many centuries and civilizations. In the earlier ages, gold was used extensively in jewelry and even in utensils and artifacts. Even today after several hundred centuries, gold is being used in jewelry and on many other products. The popularity for gold has not even withered for a day!

But off late, a new trend has emerged and that is of investing in bullion. More and more financial advisors believe that their clients should invest in gold bullion because the prices are always on the rise and it is much safer than stock market. Another important aspect of gold is that it retains its luster over time and doesn’t corrode. But before you start investing in gold, it is important to understand the fact that gold will never become worthless although its price might decline somewhere in the near future.

At the close of the market on February 01, 2010, gold futures on the COMEX rose $21.20 to $1,105 per ounce and this has also boosted all and any type of investment associated with the price of gold. Price of gold bullion at close on February 1, 2010 was $1,104.00. This might sound Greek to someone who is new to gold investments and the gold index or market. Hence, it is extremely important that before you jump into gold investment, you should gather enough data and information regarding gold and how the market has been performing in the last two decades. Here are a few pointers regarding investment in gold bullion:

 

– First things first; in order to invest in gold bullion you need to identify your investment budget. You will need to also consider the size of the gold position that you are planning to take. At this point, you need to bear in mind that making small investments in gold bullion will not lead to bigger benefits. If you want bigger benefits then you need to make bigger investments as well.

– Once you have decided upon your budget and your limits, you will need to focus on storage options as well as transport of the gold bullion. If you are looking for something that is less cumbersome then alternatives include gold ETFs and gold exchanges.

– One of the most important aspects of gold bullion investing is that you should never invest if you can’t afford it.

– Before you purchase gold bullion, you need to check the market and compare gold prices. Each dealer will have a different price on offer and all you have to do is find the right price.

– Last but not the least, be informed whether it is about the market or about gold bullion and it rising and falling prices.

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Investments

Government of India in Full Swing to Develop Renewable Energy Investments and Projects

In India, the establishment of renewable energy projects is going in full swing. The banks of Japan and Germany have agreed to provide energy investments to the Indian Renewable Energy Development Agency for fostering their clean energy project. Indian Renewable Energy Development Agency, leading agency which renders financial assistances for the companies, that are executing renewable energy projects and the banks of Germany and Japan have planned to furnish around 630 million US dollars as energy investments to IREDA. The government of India has adumbrated challenging goals for developing the renewable energy infrastructure, in the upcoming decades. Government is also planning to endorse new projects on wind energy, solar energy and several types of clean energy projects. Recent reports declared by the International Energy Agency portrayed that, if the energy investments for the fossil fuel industries and production of fossil fuels are ceased, then it would significantly decrease the problems which are caused by the climate change.

The financial ministry of G20 recently mentioned that, around 550 billion US dollars have been allotted as energy investment to the fossil fuel industries. Many people across the world think that, the environmental concerns such as global warming and climate change would reduce the investments allocated for this sector, but it was false. For the past couple of years the amount of investments has increased drastically. In the recently held G20 summit at Pittsburgh, the president of the United States planned to phase out the energy investments and other benefits to the fossil fuel industries, which were welcomed by respectable number of people. Iran, leading supporter of fossil fuel in the world has furnished more than 100 billion US dollars to subsidize fuel industries. In 2008, Iran has delivered more than one-third of the budget of the nation towards the development of fuel sector.

National Solar Mission is established to provide assistance for promoting the infrastructure of solar energy projects in India. Additionally it aims to implement methods which would intensify the energy efficiency on several market-based approaches. The various sectors of the clean energy receive subsidies from the government and these subsidies are furnished to the project developers via premium tariff rates or incentives or by tax benefits. To fasten the development and implement critical technology the subsidies and tax benefits are offered to the power distribution companies and equipment manufacturing companies respectively. Financial guidance is provided to the costumers who are implementing special attempts to develop the clean technology. Many plans are carried out by the government to provide solar lighting system which would be helpful for poor people.

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Investments

Your 401(k) Investments And The IGVSI

Smack, right up alongside the head. Your 401(k) investment program deteriorated rapidly as the stock market and the economy weakened. Who would have thought that there was so much risk of loss in those mutual funds, and ETFs? Fortunately, the pain is most often temporary, but the timing of the recovery could alter some participant retirement schedules and benefits— not to mention the hefty confiscation level retirees can count on from Uncle Sam.

The popularity of self-directed 401(k) benefit plans is understandable. Employees typically get an instant profit from generous employer matching contributions, a variety of investment products to choose from, and portability between jobs. But the benefit to employers is far greater— an easy, low-cost, employee benefit plan with virtually no responsibility for the safety of the investments, and no lifetime commitment to benefit payments. In some instances though, employees are required to invest too large a portion of their account in company stock— a situation that has caused major problems in the past (Enron, for example).

401(k) plans have virtually replaced the private pension system, and in the process, have transferred total investment responsibility from trustee caliber professionals to hundreds of millions of investment amateurs. Employees get little professional guidance with regard to selecting an appropriate mix of investment vehicles from the glossies provided by 401(k) fund providers. Few Employee Benefit Department counselors have degrees (or hands-on experience) in economics, investing, or financial planning, and wind up using the “unbiased” counseling services of the funds’ salespersons. How convenient for them. Interestingly, most salespersons also have no hands-on investment experience either— go figure.

 

Similarly, the financial planning and accounting communities seem to have little concern about such basic investment tenets as QDI (quality, diversification, and income). If they did, there would never be instances where individual investors lose everything in their one fund, one stock, or one-property investment programs. QDI is the fire insurance policy of the investment plan, but few 401(k) participants hear about anything beyond: past market value performance numbers, future performance projections, and the like. They are not generally aware of the risks inherent in their investment programs.

This is where an understanding of investment grade value stock (IGVS) investing, the IGVSI and related market statistics becomes important to 401(k) participants, company benefit departments, accountants and other financial professionals. IGVS investing is just perfect for long-term, regular-deposit-commitment investment programs.

Somehow, we’ve got to get 401(k) investors to understand the framework of an investment/retirement program and, then, we have to get participants and/or their professional advisors to look inside the products being offered. As much as I hate the idea of one-size-fits-all investment products, they are generally accepted as the best way to deal with larger employer 401(k) programs— most employers don’t even know that more personalized approaches exist.

Only when some form of company, sector, or economy melt down occurs, does the head scratching (and the investigating) begin. 401(k) participants need to understand that they are not immune to the vagaries of market, economic, and interest rate cycles. Along with their employee benefit plan comes total responsibility for the long-term performance of the investment/retirement program. Are you in good hands?

Historically, IGV stocks fluctuate enough (both in general and by sector) to allow for mutual fund and ETF investors to select the less risky offerings from among the 401(k) product menu at the most advantageous times— but all individual investors need to learn how to identify the risks and to learn how to deal with them. Typically, 401(k) participants buy the higher priced, last-year-best-performing, and hot sector offerings while they sell or avoid the various products they feel have “under performed” the market.

Nowhere else in their lives do they adopt such a perverse strategy. And nowhere else in their thinking would they blindly accept the premise that any one number represents what is, or should be, going on in their personal investment portfolios. Risk minimization begins with quality, is enhanced through diversification, and is compounded with realized income.

The first two steps require research, greed control, and discipline. The income part just requires discipline, so it should be much easier to manage. If you cannot identify and understand the individual securities within an investment product, and assess the overall quality (economic viability and risk protection), don’t invest in it. If you have more than 5% of your portfolio in any one individual security, or 15% in any one sector (industrial, geographical, social, political, etc.), make some changes.

Since 401(k) plans are almost exclusively mutual fund shopping malls, it is difficult to assess the income or cash flow component of the risk minimization function. Product descriptions, or your benefits representative, should provide the answers. You can stay away from products that refuse to share the income with you, but the best way to benefit from a fund based benefit plan is to establish selling targets for the products you select. If your Blind Faith Fund Unit Value rises 10%, sell all or part of it and move the proceeds to another opportunity that is down 20%. Profit taking is the ultimate risk minimizer.

So long as we are in an environment where retirement plan income (and principal in the case of all private plans) is subject to income taxation, 401(k) participants would be wise to establish an after tax income portfolio invested in tax exempt securities— or to vote more selfishly.

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Investments

Why Invest and How To Do It: Avoiding Landmines In Your Investing Life

At the beginning of the New Millenium, the concept of
investing, of “doing something” with your excess capital, has
never been stronger. While this applies to citizens
everywhere, nowhere has it hit home as much as in the U.S.
where many of our clients live and do business.

SAVINGS SHMAVINGS

Various “analysts” and “experts” have moaned that the
savings rate of the U.S. citizen has gone negative. What
they fail to understand…or choose to ignore…is that savings
no longer represents anything in the United States. First,
there is inflation, always understated by the government,
usually by at least 50%, which uses various tricks and
numbers games to convince the unwary that all is well. The
value of savings is constantly going down.

Additionally, the American Internal Revenue Service has
chosen to tax even the negligible rate of return on savings,
actually punishing sound savers for doing so. The “market”
has responded by pulling savings out of the banks and
risking it on what is arguably one of the strangest bull
markets in history.

KEY QUESTIONS

 

But two questions come to mind: (1) Why should anyone
invest? and (2) how should they go about it?

While we would not claim to have the definitive answers to
either question, we feel we have enough background to at
least offer some suggestions.

WHY DO IT AT ALL?

1. To get a better rate of return than one can get on bank
savings.

2. To create a large enough egg to retire on without having
to sacrifice your current quality of life, particularly if you
happen to live longer than expected.

3. To provide for the ever growing cost of your children’s
university educations.

4. To safeguard yourself should major illness strike.

5. To ensure that your spouse and children are not left
destitute should you die.

6. To provide funds for travel, study, rest and recreation.

7. To pay off debts and obligations and to live as credit-free
as possible.

8. To take full responsibility for your life and not rely on
government doles, pensions and/or Social Security
Systems should they fail, a distinct possibility in the
future.

9. Add

10. Your

11. Own

How?

Here we’re going to explore a lot of possibilities. Some of
the thoughts are ours; others came from sources whom
we’ve come to both admire and respect. In any case, you’ll
need to choose what works for you.

First, we believe you need to work out who you are
as an investor. Much of what you do should be based on
your own personality, knowledge and what makes you feel
comfortable.

We suggest that you honestly evaluate the kind of person
you are. Do you really like risk? Are you the kind of person
who likes to plunk down $20 to $100 bets on impulse at the
racing track or casino?

Or are you the kind of person who, 50 years ago, would have
been exclusively into blue chips, utilties and similar “safe”
investments, holding on for the long haul? And who, if he
does visit a casino, plays quarter slot machines and avoids
the expensive games?

Maybe you are a combination of these, wanting solid
investments, but willing to take a risky flyer now and then?

Whatever the case, we feel you need to consciously
recognize who you are as an investor, what kind of player
you’ll be at the table, no matter in which country that table
may be set up. (There is nothing “wrong” with being at one
end of the spectrum or the other. One is not “better” than the
other.) The reason is simple: If you invest contrary to your
nature, you are not going to be happy with your investment
strategy nor will you sleep well.

CONSERVATIVE?

If you’re strictly conservative, making a lot of high risk
investments will leave you feeling out of control, nervous
and very out of sorts. You won’t trust your choices, will trade
emotionally, getting out of those which frighten you because
of their volatility, just when you should be letting some of
them ride. Or, worse, remaining in losers long after they
should have been dumped, buying more of that stock on the
downhill run, desperately trying to recoup your losses. Your
emotions will seriously colour your choices, never a good
investment method.

GAMBLER?

At the opposite end, if you’re risk taker, trading slow moving,
stodgy and conservative stocks will leave you totally bored
and unsatisfied with what you’re doing. You’ll miss the
excitement of the game and will constantly be wanting to get
out of the slow movers into something with more pizzaz, as
the Americans put it.

So, to quote the old adages, “Know Thyself” and “To Thine
Own Self Be True.” Only in this way will you find satisfaction,
happiness and peace of mind.

Secondly, we believe you need to work out a
philosophy of things in which to invest. Find areas of
investment which interest you. If you understand energy
issues, for instance, there are plenty of both high risk and
conservative stocks and commodities in which to invest.
You’ll enjoy continuing to study the field, happy that you are
working with known values.

If you have a good background in technical or biomedical
issues, you’ll be far more knowledgeable in your investment
choices sticking to these areas.

One group which we’ve studied, relies on what they call
“freedom” issues, companies which produce goods or
services which empower individuals, which makes things
either cheaper to buy or easier to use. They scour the world,
willing to make investments anywhere they find solidly
managed companies which are making a difference in the
way we live, “freeing” us up to expand our lives. We find this
particular philosophy a sound one. However, you may have
an entirely different one which suits who you are and what
you know. Keep to it.

Thirdly, you need to plan some constant study.
Never before in the history of humankind has there been
such a rate of change as we’re experiencing now. And the
rate itself is increasing. What was sound six months ago is
unworkable today, simply because some new technology
has entered the picture. Old industries, once considered
financially sound, are being overtaken by newer
technologies…or being undercut by the same industries
located in other countries with a far lower labor rate and
materials cost.

Technology changes even the old. Robotics, really
instituted by the Japanese whose “old” infrastructure was
completely destroyed during WWII, almost totally overtook
the American auto industry which was relying on 1930s
technology in old and very outmoded factories. That
particular US industry either had to change…or fold. They
changed. Note, however, how that changed the fate of the
autoworkers unions. They, too, had to adapt, to go with the
new realities.

CONSTANT EDUCATION

So you must keep constantly educated as to the newest
developments in your field of interest. And no longer can
you restrict your education to just what is happening in your
own country. Changes and improvements in other
countries will rapidly impinge on world markets. Keeping
up with such changes is your best insurance that you’ll stay
ahead of your investment game.

GLOBAL VISION

Fourthly, Learn to Think Globally! It would be
difficult to overstate this critical strategy. Virtually all markets
are now international. India, as an example, has some of
the best computer programmers in the world. Their
software products are world class. They can compete with
anyone. And they do it at wages lower than most of the
“developed” nations. If you’re investing in technologies and
ignore the information and products coming out of India,
you’re playing with a short deck.

Other countries, too, are growing in their competitive
structures. Individuals, as never before, are acting as
corporations, able to do business from anywhere in the
world which connects to a modem….or a satellite. Creative
entrepreneurs, carrying six pound laptops, are complete
businesses, able to compete with anyone, anywhere.

ADAPTATION

And Fifth, learn to adapt. Even if you’re a
conservative, work to become used to the idea of being
ready to change your game plan quickly when new
information becomes available. Sticking with the old, which
has already become outmoded even though it’s only a few
years – or a few months – old, is a recipe for financial
disaster. Think of being a chameleon, ready to shift to the
new background while still maintaining your sense of who
you are and how you best work.

We wish you happy and successful investing.

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Investments

Looking For Financial Investment Advice?

Investing in financial instruments is widely regarded as an advisable and profitable channel of income-generation. However, the risks of incurring large financial losses remain too, particularly if you are a newcomer in the financial market. In fact, prudent investment decisions need to be formed, so that profits can be enjoyed, over the long-run too. There are many professional business firms that offer investment services to individuals. Apart from taking help from these firms, individuals also should hire an expert financial planner. The latter would be able to provide knowledgeable and viable financial planning advice to clients. Such advice, if followed properly, can go a long way in securing the financial future of the investors.

Recommendations related to financial planning and investment services can be varied in their nature and quite large in quantity as well. Some of the very basic rules that need to be followed while forming investment decisions are:

a) A certain portion of income needs to be put away as savings on a monthly basis. A portion of all increments should also be saved. This helps people build a decent stock of wealth over time.

 

b) Investments that are deemed to be extremely risky should be avoided, at least when one starts out in investment.

c) While making investments, individuals need to diversify their portfolio. Ideally, not more than five per cent of one’s total invested amount should be in a single sector. This, guards against any potential drastic losses due to a severe downturn in a particular segment of the market.

d) The basics of borrowing from different sources, including banks, need to be thoroughly understood. In particular, one needs to know the difference between the quoted ‘nominal’ interest rate of banks on loan amounts, and the actual ‘effective’ interest rate that is charged.

e) The frequency of payment of your interest (monthly, quarterly or yearly) needs to be kept track of. If people do not have the time or knowledge to invest directly on shares and monitor the proceedings, they can invest on unit trust funds as well, and

f) The costs of the different investment products need to be considered. A detailed break-up of the different components of the total cost should be studied. Cost levels vary across investment instruments, and one should know if they are too expensive or not.

The above are some of the simplest financial investment advice, which a financial advisor might provide you with. These would help to a great extent in ensuring that the investment decisions you take are correct, profitable ones.

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Financial Investment Planning Process to Get Started

Investing your money is probably the best use of funds you own. However, if it is invested in various financial products without proper research, you can lose every thing you owe. Hence, the process of financial investment starts with effective planning and research.

But you cannot start with financial investment planning if you don’t have a specific goal in mind. Hence, one of the foremost requirements is ascertaining a goal. It can be either of the two goals mentioned below:

– Conservation of existing funds
– Growth of existing funds
– Or both of them

What you do with the money you conserved or grew depends on your personal preferences. Unfortunately, not many people have goals in their mind before investing their money. Hence, they money they create or conserve is misused often. Financial investment planning involves going through a step-by-step process. Let us have a look at it.

 

– Setting goals
– Analyze your risk taking ability
– Asset Allocation or portfolio designing
– Select investment products that suits your needs
– Regular monitoring of your investment
– Redesigning your portfolio when necessary

This is one of the money processes to go about investing your funds. You can alter this process according to your needs. This is, however, a very broad one and may be applicable to every individual.

Just knowing the process isn’t important. You must know about all the available investment options and know which one to invest in.

If you don’t intend to take much of risk, you can invest your money in cash products or cash equivalent products like currency, bank balances, money orders, coins, GIC, commercial papers, T-Bills, money market accounts, saving accounts, Certificate of Deposits, and so on. These are comparatively safe investment products.

If your risk appetite is a bit higher, you can invest in products like mutual funds, stocks, and real estate. It must be noted that there are various ways to invest in each of these products. For instance, you can invest in real estate by investing in REIT (Real estate Investment Trust), Real Estate Funds, Property, Rental Property, and so on.

For people who want to seek high profit and are ready to take bigger risk, products like stocks and derivatives are probably the best options. Specialized knowledge, however, is required to gain from these products. Stock may be further divided into aggressive growth stocks, common stocks, and American Depository Receipts. Derivatives too can be divided into futures and options.

Financial Investment Planning wouldn’t happen just by itself. It requires enormous planning, proper implementation, efficient follow-up, and essential redesigning. There is, however, a popular myth that investment is for rich people. Rich or poor, every one wants a secured future. Every individual is vulnerable to financial emergencies, and one must always be prepared to face it. And there is no right age to start investment planning. Even if you are nearing retirement, you must start investing. However, the early you start, the better it would be for you.

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An Overview of Banking, Investment and Insurance

A wide range of employers feature in the banking, investment and insurance sector of the UK, including building societies, investment banks, commercial banks, broking firms and insurance companies.

Investment/ Wholesale Banking – Offering the highest risk, investment banking relies upon the state and performance of the world’s economy. This sector is based on providing specialised financial advice and services to commercial, industrial and government clients. It is said that half of all European global investment banking happens in London.

Retail – This sector cover the services provided in high street banks to small business and individual customers via the banks branch network. Private banking is one of the fastest growing areas in all financial services in recent times; it is when services are offered to high net worth individuals. It is similar to traditional retail banking but offers more services to help wealthy clients look after their money better.

One of the main concerns of retail banking in the future will be coping with identity fraud and the result from the Office of Fair Trading bank charges investigation.

 

Investment/Asses Management – Asset management firms have had to develop and improve their operations by provided better opportunities for clients due to the global market and improved technology. The UK is home to third largest market for asset management. Individuals who work in this sector will need to be aware of both national and international trends and to keep up for new emerging markets.

Financial Advice – IFAs/Independent financial advisers supply advice and information to both businesses and individual clients on products and services that include, investments, pensions, insurance and mortgages.

Many IFAs are self employed and have a group of clients that they will work for on a commission basis. But moves have been made to make fee based services more common than commission services to improve public confidence.

Insurance – The insurance sector in the United Kingdom is the largest in Europe and the third largest in the world. It is considered to be the largest employer in the financial services sector with an estimated 340,000 people working in it, which is a round a third.

So does working in one of these sectors sound appealing? It should be noted that while jobs in the financial, investment and insurance world are often well paid and with excellent benefits packages, they do require a lot of time and effort and can be extremely stressful. Talk to a professional Finance Recruitment company to discuss your options and how to start your career.

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Wealth Building – How to Stop Stressing With Your Investments and Start Building Financial Freedom

Life is too short to spend it stressing out over your investments…whether they’re going up or down or directly into the dirt. All of the uncertainty surrounding investments is enough to make you want to stick your cash into mason jars under your bed and be done with it. Thankfully, you can put a stop to stressing over investments and start enjoying peace of mind and success. All you have to do is start focusing on the investment strategies are timeless and which give you the greatest sense of control. Let’s look at two investment strategies which I’ve found to be pretty pain-free and great for increasing personal wealth.

Investment Strategy #1: Real Estate

No matter where you are, I want you to think about just how persistent the need is for people to purchase real estate. Everyone who needs a home needs to live somewhere, whether they’re renting from someone or mortgaging or purchasing a house outright. This means that if you invest your money into real estate, you’re investing it into something which is always going to have value. Real estate is one of the only investments which can never hit zero, although it can go down quite a bit at times.

 

However, even when the real estate market is taking a nose dive, you can still rent out the properties which you own until you find yourself in a position where selling them for a profit is an option. Many people think of real estate in terms of only buying low and selling high, which is why a lot of people end up losing money. However, if you learn how to read the market, you’ll know when to buy, when to rent and when to sell. This is when real estate starts becoming a smart and stable investing strategy.

Investment Strategy #2: Your Own Business

Investing money into your own business is perhaps the most stable investment strategy which you can engage in. It’s like investing into your education, where you’re also acquiring assets that can help to create wealth using your specific knowledge and expertise. For example, if you invest money into having a product created which you can sell for years to come, you’ll have a form of wealth which can help you to earn money over and over and over…perhaps even for life (depending on the type of product).

Thankfully, with the automated technology of the internet and the global economy, creating your own signature product is now easier than it has ever been. As long as your investment goes towards building an asset which has real value to people, investing in your own business or brand can prove to be the most profitable and secure investment moves that you can make.