Church of England sells equity shares fearing global slowdown. With a Gloomy Global Outlook Projected, many are doing different things with their investments. For instance, some are selling off equity shares that they own even if the market conditions are stable and even favorable at the moment. One such instance is Church of England. It has offloaded about 250 million in pounds of the equity shares it has owned. The investment fund that the Church of England owned had achieved a return of 8.2%. It was a fall compared to previous year performance. This year it has not waited to see how much return, it would earn till the end. The religious organization stated that it has feared that an economic slowdown is coming forth. Governments would probably not be able to do much to push up growth in such a scenario. As a result, it has decided to offload much of the holdings that it has in the stock market.
About the church investment funds
The church has commissioners who manage the investment fund of the organization, amounting to £7bn. The organization stated that they had earned about 8.2% in the last year. But the forecast was that the fund might not be able to generate returns at the same pace in the coming year. The fund has been able to provide a return of 9.7% on an average over the last 30 years. Sir Andreas Whittam Smith is currently the church estates commissioner. He stated that the global markets being in a jittery state now, had prompted them to take such a decision. There have been several articles published in the Current State Of Global Economics as can be Found Here. The decision was taken in March when £250m was sold among the global share holdings of the organization. It represented about 6% of the equity holdings of the organization. Its holdings in equity amount to £4bn in total.
Recommendations and forecasts
The recommendations of the commissioner were put in the annual report. Here the past performance of the fund for thirty years was highlighted and the ending suggestion was that that equity holdings might as well as sold as the same performance might not be seen in the future. In general, it is felt that investors are jittery in the present stock market. They feel that governments do not have any effect or influence in being able to reverse the economic activity and the general direction of the stock market. Earlier governments would take the stance of reducing interest rates in order to stimulate growth. Today the same policy or stances can no longer work. Rates are already around zero and hence, that remedy will not work. Hence, many are apprehensive that the economic slowdown will occur and it will be moored at that stage without any stimulus known to get it out of the mire. Returns from the investment fund of the church helps to pay for most of the work and tops the donation that is received from church goers.
If you are saving to buy a house in the near future, you might wonder how to invest that money to make it grow. The stock market is a good option for generating wealth in the long run. However, if you wish to park your funds for use in the near future, that might not be the best place to invest in. Markets usually plunge with short notice and that can put a dampener on your plans. The market will be able to offer you gains around ten percent every year. That is again an average figure that is not guaranteed. When there are funds that you might need to tap into in the near future, it is best to park it in safer places than in stocks, for that reason look at deposits in banks or accounts in the money market.
Here are some useful tips on investing that you can refer to.
Investing in poison pills
This is an uncommon plan for shareholders that are a strategy which is deployed by companies which do not wish to be taken over. It involves additional company shares or stock that is offered to shareholders at a discount. Here the share values are diluted which makes buyouts difficult and not cost effective. Another tactic similarly used by companies is to allow shareholders to buy stocks of a would-be acquirer at discounts if there is a merger.
Avoiding short term losses
When you have bought company shares or stocks you need to avoid short term losses through them. For instance, you might have purchased shares of companies that have gone down in the last few months. It is best that you do not count these losses that are a short term trend. You need to stay invested for several years in order to reap rich dividends. Usually shares slump for a short term and then bounce back to gain new heights. When you allow your shares to continue in the market and encash them after a long time, a decade or more, you will find certain of profit from the original purchase price that will be assured.
Stay invested in reputed companies
Companies that have been around for ages and seem to be continuing on the growth path are sure to have sound business practices. As a result, it is best to stay invested in these companies for the long term. Have you considered investing in Visa, the company who is a giant in payment processing? In this domain this company holds a major share and has been a market leader for a long time. It has a geographically diverse operational model as it is based out of different countries. Hence, if it faces a slowdown somewhere, it is likely to be countered by growth in profits in other places. The credit card industry is poised for growth as money transactions are still dominant in cash in most parts of the globe. Investing in such companies will ensure your success in your portfolio investments for sure. To know, How To Legally Build Massive Tax-Free Wealth, Visit This Link.
Forex trading market has some unique characteristics. If you want to be a good trader, then you need to learn more about these characteristics.
The Forex market or the foreign exchange market is a marketplace for trading all currencies. It is a decentralized and globalized market for trading currencies. You can buy exchange and sell currencies for the current prices as well as determined prices. If we are to consider the overall volume of the trading, it has to be the largest market in the world today. Who are the key players in Forex trading? Well, large international banks definitely play a big role in Forex trading.
Unique characteristics of the market
The Forex market is very unique compared to several characteristics. What are those characteristics?
- It has a very complex and large trading volume. All thanks to the large volume of representation, one can expect to see liquidity in higher amounts.
- One has to consider the great geographic representation as well when it comes to Forex market.
- The Forex market is up and running 24 hours a day. However, the Forex market is not operational during weekends, except in New York and Sydney.
- As far as exchange rates go, there are several factors that come into play.
- When we compare Forex market with other markets based on fixed income, low margins of profit is a concern.
- If you want to improve profit, you can use leverage. You can also improve loss margin as well. The overall size of the account is considered here. If you are Serious About Forex Trading then you should, Read This Article Here where you will see lots of trading tips.
What affects the Forex rates?
When it comes to the Forex, there are a couple of factors that play a part. This happens due to the fact that these currencies are traded on an open market. In this open market, other entities like computers, cars, stocks, bonds etc. are also being traded. Depending on demand and supply the value of currency changes. As in the case of all other entities, the decrease in demand and an increase in supply can result in the fall of rates of currencies and vice versa. One thing that you need to firmly understand here is that borrowed money is the key to all these trades here. And that means you can take advantage of this particular leverage. In fact, your success depends on how you take advantage of these leverages presented to you.
Secret of a successful trade
When it comes to many people out there, the Forex market is too risky. But one thing that you shouldn’t forget is that returns are as high as the risk involved. You may walk away with incredible profit when you play your cards right. Without any doubt, it is a market that you should give a try. However, before you invest your money into the system, make sure that you know what you are up to. You are not just picking currency pairs randomly here. And that is exactly what makes it more challenging. You should develop an ability to assess currency trends, so that you can make smart decisions. Or in other words, it is pretty much gambling and guesswork. And luck plays a big factor. I would suggest you to gather informational sources that are trustworthy to predict the current trends. We are talking about forums, signals, news outlets etc. here.
As far as pension plans go, you have 401ks and traditional pension plans. Which is better? Difficult to answer as both have pros and cons.
As for retirement, there are several employee compensation programs there. But many employees don’t know about them. Well, the most common ones are 401ks and traditional pension plans. We are referring to a defined contribution plan and defined benefit plan respectively here. These two are not the same. Therefore, they come with their own advantages and disadvantages. Let’s take a look at them below. If you want to learn more about the Pension System In The US, Take A Look At The Articles Presented Here.
Advantages of 401ks
There are several advantages attached to 401ks. Let’s Take A Look Below.
- Here employees have more control over the investment plans offered to them. They can decide on the assets to invest on while choosing this plan.
- You can expect better portability when it comes to the funds. You can easily transfer these funds to another retirement account or IRA.
- Employees have the flexibility to make additional contribution to the plan from their salary. This can result in greater funds.
- The good thing is that most of the plans allow you to borrow funds early or make early withdrawals. When it comes to defined benefit plans, this is not allowed. In fact, defined benefit plans won’t allow you to touch the money until your retirement age. That means you can’t access the funds even if you retire early.
Disadvantages of 401ks
Well, now let’s take a look at the disadvantages of 401ks.
- You have to deal with reduced investing options. If we take a closer look we can see that more companies are reducing the investing options. This will affect your investment possibilities and the ability to diversify funding.
- Employers can change the plans anytime they wish. For example, the employers can reduce the percentage of their contribution. That means you have less amount of the funds.
- There is no guarantee that you will get money at retirement. It can be a risky scenario for you. First and foremost, your funds are not protected. The positive growth of your assets in the stock market is going to decide the fate of your return in the end. As we know, the economy is still recovering from a recession. So, one cannot expect things to be pretty so soon.
Advantages of traditional pension plans
- You will walk away with guaranteed money at the retirement. This is the biggest advantage of traditional pension plans, we can think of. The Federal Government makes sure that you get the money promised by the employer.
- You don’t have to worry about making wrong investment options. Here you don’t have to worry about the high reward/risk scenario of the stocks you invest in, in the case of 401k plans. You don’t need to spend time to review these things at all.
- You don’t have to invest a single penny from your salary towards the plan. In most cases, the employer provides the contribution to your pension plan.
Disadvantages of pension plans
- You have less opportunity to score big. Since you are not dealing with investment options, you might lose a higher pension amount.
- You are not allowed to access the funds until you retire. Even in the case of an emergency, they won’t allow you to access the pension money.
- Limited availability is another big problem. Traditional pension plans are hard to come by.
If you are intelligent, you can avoid tax in a legal manner. And when you do it in the right manner, nobody can stop you from becoming rich.
Is it possible to build massive tax-free wealth? Is it even legal to do that? Well, everything is possible. In this article, we are going to explore those possibilities. Financial education is a must to make informed financial decisions. Let’s take a look at some of those strategies below.
It’s not the government’s money
Yes, first and foremost, you need to understand the fact that it is your money, not government’s money. In general, people are scared of tax filings. But you have got to remember the fact that you are the one making the business work. And you create the value; not otherwise. Therefore, you have got to be smart. Utilize smart tax strategies and reduce the tax burden. This way, you can maximize your investment. The point we are making is tax avoidance and it’s not as same as tax evasion, which is illegal. We are only talking about IRS approved tactics.
Don’t focus too much on rate of return
- You have to remember the fact that Tax laws are basically for permanently reducing your taxes.
- Stop focusing on rate of return too much.
- You may make initial gains with rate of return. But eventually in the long run, you will end up losing your money.
- If you don’t know already, 99% of the tax law is written to encourage people to start their own business.
- The government has written Tax laws in favor of businesses because businesses create jobs, thus helping the economy.
Focus on reducing business expenses
Well, there are legitimate ways to reduce your taxes. As you all know, business needs investment. But when you make an investment in business, you can combine more than one thing to evade tax. Travel, R&D and other business expenses are part of the business investment. For example, you can combine vacation and work and later file it as a business expense. While travelling to another location, you can make sales calls. If you are looking for Tax Free Investment Options, Take A Look At The Article Here.
Build passive income
Yes, through your tax savings, you can build a huge passive income. This has to be the best wealth builder, we can think of. Here you consider things like leverage, velocity of money and compound interest. When you consider these 3 along with investment stacking, you will find an easy way to be rich. First and foremost, build your business and make money out of it. How can you convert it into passive money? Well, you can invest that money in cash flow investments (real estate is the perfect example here). Or in simpler terms, you are making your money work harder than you.
When you make money from your business, you can convert this money to generate passive income instead of keeping it static. You will be considering three aspects here as stated before, compound interest, velocity of money and good leverage. Once you understand the basic concepts, you will find it easy to make more money by avoiding tax as much as you could. And most importantly, remember the fact that the government has written tax rules in a way to help the businesses.
Filing your taxes late can invite penalty from the IRS. However, there are ways to reduce the penalty. Let’s find out.
As we all know, federal income taxes have to be filed before April 15th every year. But in some cases, you may not be able to keep the deadline. You might assume that you have to deal with harsh consequences; but that is not the case at all. All that you have to do is to take some simple steps prior to the deadline so that the IRS (Internal Revenue Service) will understand that you have started the process. That means doing nothing about the due date will be problematic. I would suggest you to contact IRS if you are going to delay filing the papers.
Request a filing extension
- In case if you are unable to file it by April 15th, you can obtain a four-month extension if you want.
- Studies have revealed that close to six million people apply for an extension every year.
- If you want to file an extension, fill out Form 4868. This will extend your time to file a Tax Return.
- However, you have to file for an extension before the deadline, which is April 15th.
- Once you apply for an extension, you will get a new deadline of August 15th.
In case if you need a second extension, you need to fill out Form 2688. The thing is that you have to submit this form before August 15th. You have to remember that probable reason for the extension is must. Once you get an extension, you will have time until October 15th to file the tax returns. However, you need to understand that, you have to pay the amount by April 15th when you file for an extension. At least 90% of the amount has to be sent with the extension request if you don’t want them to come after you with penalties. Otherwise, you will have to deal with the penalties attached to it. If you have more questions regarding Income Tax Filing In The US, Take A Look At This Article Here.
Extension is not sought, what will happen next?
In case if you don’t seek an extension by April 15th, you will be subjected to penalty from the IRS. You will be required to pay 5% every month (not to exceed 25%). This interest amount will be based on the money you owe the IRS.
What if I don’t pay?
There can be scenarios where you are unable to pay back the amount due to various reasons. In case if you are not able to pay the full amount, try to send as much money as possible. Well, you have to deal with penalties in both cases but you have to remember that harsher penalty is meant for the case of not filing an extension at all. Not paying after filing also can be worthy of penalty, but it’s not going to be as bad as you think. You will be subjected to a 25% penalty if you choose to not file an extension at all. It is very important to pay your taxes on time. Otherwise, you will get into all sorts of unwanted scenarios. You have to always remember the due date and plan accordingly. In case if you can’t file it by April 15th, you have to file an extension.
It’s important to be an intelligent investor. And as an intelligent investor, you will value investment diversification more than anything else.
Well, we all have heard of that famous quote, “don’t put all your eggs into one basket.” This quote holds true in the case of almost everything and especially in the case of investing. If you want to become a smart investor, you have to diversify your investments. There are several benefits to this approach. Most importantly, it is the most sensible thing to do. Talk to those who are successful investors and they will tell you about the importance of investment diversification. These people have made investment portfolios in different sectors to make sure that they have smart investment. And you should do the same, too.
Varied investment portfolio
- How to come up with varied investment portfolio? Well, you have got to purchase various stocks and shares from companies from diverse sectors.
- If you are looking for examples, you can consider properties, government bonds, money market accounts etc. The most important thing is to choose different market sectors.
- If you are looking for a more consistent and stable return of investment, then you have to develop investment portfolios in different sectors.
- When you invest in a single portfolio, chances are less for you to walk away with stable and consistent profits. And your returns can be highly volatile as well.
- When you choose companies to invest, go for sectors like business to business, consumer, retail, industrial etc.
- You have to make sure that risk factor is less for you. The above mentioned sectors will reduce the risk.
Why single portfolio is dangerous?
When you invest all your money into a single investment portfolio, it can turn out to be a dangerous decision. In case something goes wrong, you will end up losing all your investment. But you don’t have to worry about that scenario when you haven’t concentrated your investment in a single company. When you have multiple portfolios, the fall of one or two portfolios won’t hurt your overall chance.
The advantages of diversified investment
When you split your investment into many smaller ones, the risk of losing money is very less. Also, as the time progresses, you will end up making more money. You will enjoy more attractive returns in later stages. Another important thing that you need to remember is that you need to evenly spread your investment. It’s not just about having many investment portfolios – it is also about evenly spreading the amount. This is the best strategy; you can adopt to make sure that you have consistent and stable returns. If it is too overwhelming for you, then you can take The Help Of An Investment Advisor – Read More About It Here.
Also, you need to build a long term diversified portfolio. It may take years. However, once you have it in place, you are going to enjoy a better future. If you ask any successful investor, he will tell you that this is the one of the most tried and tested investment strategies. If you are looking for outstanding investments, you have to adopt smart methods and no less. Also, read as much as you could before you start investing. The key is to choose those sectors that are less volatile and risky. Probably, return of investment may not be as high, but you will definitely have a secure investment strategy.
If you have a start-up business, then it is important to provide exit strategies for your investors. It’s important to provide the best strategies.
When it comes to investing in a start-up business, you need to have an exit strategy. Without which, you might get into trouble with your money. Speaking of entrepreneurs and angel investors, exit strategy is something which is very important. By the way, what do you mean by existing strategy? Well, we are simply talking about when you intend to cash in on your investment. There are different types of exit strategies used by investors and entrepreneurs for getting maximum return on investment. Let’s take a look at the Different Strategies below.
Initial public offer
- When it comes to start-up businesses, Initial Public Offer (IPO) is a common exit strategy where you buy the part of the company in the form of shares.
- As an entrepreneur, you will be paying your investors in this manner.
- The company will be able to get access to more liquidity.
- When they have more money, they can expand their business by acquiring other companies.
Mergers and acquisitions
When it comes to start-up companies, they can run into all sorts of troubles be it problems with liquidity or cash flow. They can deal with such scenarios in an easy manner if they opt for mergers and acquisitions. The company will benefit eventually. Moreover, they will be adding to the confidence of investors. However, start-up companies are reluctant to go for this option unless things are bad. But it’s not a bad choice at all. After all, you want to see your company up and running.
Another popular exit strategy is private offerings, which many companies consider these days. What do you mean by private offering in the first place? Well, it means that you make portions of the shares available for a select group of investors. The aim is to raise funds for the company. Is this is a cost effective method? Indeed, considering the fact that brokers are not part of this scheme. Crowd funding is a perfect example of such an arrangement. The good thing is that such an arrangement is not bound by any reporting arrangements. Also, you can allow existing shareholders to be bought out.
What do you mean by cash cow? Well, we are talking about companies that have high market share in industries with low growth rate. The good thing about such companies is that they have enough capital to run their company for years. As for the profits, it will get improved with time. And they will have no difficulty in paying their investors in a long term basis. They can easily pay the dividends by cashing in on the products. If you are looking for More Investment Advice, you should Check Out The Articles In This Section.
This one has lots of similarities to IPO. If your company qualifies, you will be allowed to put your start-up company on an exchange. As a business owner, you will be able to raise money easily. However, you are supposed to follow the stipulations provided by the Companies House. You don’t have to mandatory paper works or publish accounts publicly here in this case.
When it comes to Forex trading, it is important to be well versed in the basics. If you are not good with the basics, then you can’t be a good trader.
The foreign exchange market is not the easiest thing to master. Even if you know a good deal about trading foreign currencies, you will find it less intimidating. You would want to understand it thoroughly before you make the plunge. Trading foreign currencies can be tricky if you don’t have adequate knowledge. As a beginner, you can learn a lot about it through Forex trading tutorials. These tutorials are really helpful for those who are looking for information. Before you blindly risk your money, you should definitely go through these tutorials.
When it comes to Forex trading, it is really important to stay informed. A tutorial can be your best friend in getting the knowledge you need. These tutorials are going to be very helpful for implementing trading strategies with much ease. It is important to be aware of the factors that are going to affect the trade.
- Even the most experienced Forex traders refer these tutorials.
- These tutorials will give you a fair idea about the factors that affect the trade in general.
- Sudden spike in interest of a particular currency, economic stability, political unrest etc. are few of those factors that usually make a difference when it comes to Forex trading.
- The good thing is that the Forex trading tutorials are available all over the internet for your reference.
- When you sign up on some of those currency trading platforms, they will be open to give these tutorials for free.
- Or you can sign up for the tutorial for a fixed price, usually ranging from $100 to $3,000.
- As for selecting the kind of tutorial you need, your existing knowledge and experience in Forex trading should be considered.
When you are looking for a tutorial, the most important that you need to remember that you need a tutorial that gives valuable information. Most importantly, you need a tutorial that provides much needed basic information. What is the key information you need? First and foremost, you need to know the exchange rate of foreign currency pairs. You also need to know the currency abbreviations. This is very basic information and without which you can’t go further into it. You need to learn the meaning of terms like bid price, ask price etc. to do trading later. If you are looking for a Beginner’s Guide For Forex Trading, Then Take A Look Here.
Forex made easy
The best way to learn more about it is by spending more time with the tutorials. Spend as much time as you can to learn the basics thoroughly as it is going to be very helpful later. When you begin trading, the expert knowledge about the basics will be going to be the key to your success. Therefore, it is important to have access to as much information as you can get. This will make your trade less risky. I would strongly urge you to play with dummy trades first to learn more about it. Sign up for a free Forex trading account for doing dummy trades. Before you get into the actual trade, it is important to understand the nature of the trade and dummy trades will be the most helpful in doing that.
Investing money in your startup business is not the tough part. Making sure that you are making the right investment is the tough part.
Starting a new business can never be an easy process. It is really scary as well. Also, there are several tedious steps involved in it. You have to several important decisions for your business. All these things can be really overwhelming for you. The overall cost of the startup is really important. There are several instances where the stereotypes are forced to close down to financial troubles in the later stages. If you want your business to be profitable, you have to spend the money very carefully. Your success depends on that. We are going to give you some important steps in achieving that.
- Before you make an investment, make sure that how much returns it can bring to the table. Don’t make a move without knowing this.
- When it comes to startups, they have a tendency to spend lavishly in the beginning, since they have the support of angel investors.
- But things will go wrong the moment you face failures. When you stop brining returns as expected, funds of these angel investors will vanish into thin air.
- When you stop getting the help you need the most, it can be the end of the road for your business and you don’t want to be there. So, it is important to have a good plan.
Be a miser
Yes, it might sound like a bad advice, but it is one of the best advices one can give to a new entrepreneur. Instead of investing large amounts in your business, always make small investments at a time. Break your investment into small parts and be patient for the results to come. Also, you have to make strategic investment which should be carried out in different phases. You must have a targeted return for each phase. And in case if you fall behind your targets, it’s time for you to realize that you are not doing it in the right manner.
Are you getting good value out of your investment? What do you mean by value here? Well, good performance, reputation, quality items etc. can be considered as values here. And in case if you get good value for your investment, then you can definitely spend more money as an investment. If that’s not the case, it’s better to wait for that to happen.
Always have an alternative income
Even if you have a startup business, you should have an alternate income source. And you should never give up until you are sure that your start up business in a stable place. However, if you spend too much time on your alternate income, it might hinder the growth of your startup business. So, you need to learn the balancing act. Once you learn it, things will get better for you. As far as alternate income is concerned, you may invest in real estate, stock market, securities etc. Your investment in these areas can give you the security that you need. If you are looking for more Stock Market Investment Advice, Click Here. It will be helpful for you to handle your finances in a more sensible manner. When you act cautiously, you will not have to deal with troubled waters later on.