Personal financial planning is vital to have a financially secured life. First of all it is essential to understand and know what exactly the implications of a personal financial plan are, why it is important and of the right time to devise and develop one. Most of us do plan our career or future life beforehand but that is done roughly without taking in count the risks that can hamper our plan of life. Accidents, injuries or deliberate failures are never a part of our plan but they can just happen. Similarly, we cannot be too sure of life; our course of action in life might bring to us a surprise new job, a big promotion, a baby, a death in the family, retirement, and so on. Now some people act as the course demands while some have managed their plans or financial portfolios systematically covering all the risks that can arise.
A personal financial plan or financial portfolios, hence, define a systematic process of managing one’s personal financial tools and resources to achieve personal gain and satisfaction. Financial portfolios are advantageous in several ways; first of all they make us realize our valuables, all the possessions that we own and secondly they also bring to our foresight the risks that can come up in the due course of time. Through systematic and well planned financial portfolio management, you can control your financial circumstances and save yourself from the stress of becoming a victim of circumstances, a reactive victim. Well devised personal financial plan or portfolio also enables you to achieve all your realistic goals timely. Use personal finance tools to measure the activities in terms of spending and saving.
How does a financial portfolio management work? First of all, get a grip on your current financial status and calculate the net worth of your assets and liabilities. And then keep a track of same year after year. Decide your financial goals, chart your targeted achievements but make sure that these targets are realistic and specific. Make your personal financial budget and manage your income. Measure the risks on a continual basis and just relax…………
Sourav Sharma is freelance market analyst and is writing reviews articles on , Personal Finance tools, financial portfolios, financial portfolio management, and .
With the difficult economic environment we are in and new rules that are likely to apply to property investment from a financial perspective, means that ‘doing the same thing’ may well not work now, or even in the future when the market picks up.
For example, while the property market is in the doldrums and price growth (despite news reports) are not really rising; making money from renovation is incredibly difficult to do. Properties that continue to sell at the moment are typically ones that need renovation work and normal buyers feel they are ‘getting a bargain’ and can ‘work from a blank canvas’. So one of the property types that is still selling, albeit at below the 2007 peak, are properties to renovate, so trying to pick these up ‘at a bargain’ is still difficult due to competition.
Secondly, the other properties that are still selling while the market is in the doldrums are ones that have already been renovated to a good standard. Unlike in a rising market or when demand is high though, they aren’t really commanding a higher price, just selling before ones that are looking ‘tired’.
So if you are looking to make money from renovating, then just ‘doing up a property’ isn’t likely to pay back for a while – unless you are able to bag a property at well below market value.
What you will need to do to make any money from renovation is use several property investment techniques, for example:-
1. Finding a property with a problem that solving it will add instant value, for example a layout issue or a short lease.
2. .
3. Securing tradesmen and materials at discounted/fixed prices.
4. Extending the property so that you take it into another price bracket, for example adding a bedroom.
5. Consider renting it out if you can cover the costs until the market picks up.
In contrast, for to let to work now, you will need to:-
1. Be able to put down a 25% deposit.
2. Check you still receive a positive return if mortgage rates reach 7 or 8%.
3. .
4. a property type that will gain capital growth as it will always be in short supply, eg three bedroom Victorian properties or a two bed terrace in a high demand area.
5. as good a return/better than other financial investments.
So just buying a property and ‘doing it up’ or buying any property and ‘renting it out’ will work more by luck than judgement, unless you employ every property investment technique you can.
It is possible to ensure you secure market beating returns and don’t walk away with nothing, or worst still, lose money, but to do so, don’t ‘go it alone’ take professional advice on every aspect of your potential deal from finance to different property investment techniques, through to finding areas and properties that are in short supply.
Kate is one of the top property experts in the UK and regularly quoted in the press including the Telegraph, Independent, Times, Daily Mail and Express, and has appeared on BBC2, as well as featured on BBC Radio 4 and a number of local BBC Radio stations.
Kate has also been a consultant to the property sector for a number of years and is the author of a number of books, including four for Which? – , Sell, Move House, Renting and Letting, Develop your Property and the Property Investment Handbook.
When it comes to property investment, many people start with ‘what they know’. This means buying a property, renovating it and then selling it on at a profit, or buying a property then letting it out.
However, once you have some property investment under your belt and before you look to do ‘more of the same’ then it’s worth making sure that your next investment(s) work in good and bad economic conditions, perhaps deliver a return at different times or in different ways to your existing investments.
So what does your property investment deliver at the moment? Not sure? Then write down the following:-
What have you invested? Don’t forget to include all the costs you have incurred from legal fees to surveys, required certificates (building control sign; gas safety certificates etc), any agent’s fees as well as large sums such as deposits.
What have you earned? . Increased capital? Net income?
Work out the return Then take the total amount your investments have/are delivering to you and divide this by the amount you have invested.
Check this against other potential returns If you are investing in residential to let, check the returns you could be getting against commercial investments. If you are doing renovations, check what you could get if you bought land and built a property. Even better, check the to let returns against .
Always check your investments against your exit strategy! It’s not easy to work out whether an investment works for you unless you have a clear exit strategy. Make sure that you know what you expect your properties value to increase to, what income you need to make it worthwhile holding on to your property asset.
Understand market conditions! . Some people worked out that selling in 2007 at the height of the market was a good idea, they are the ones investing back in the market now as they have the cash to do so.
Having done your research you may find something that gives a better return to your investments. However you also may decide to ‘carry on with what you know’. Either way, at least you will have done your investment due diligence and know if there is a property investment opportunity that makes sense to add to your investments or not!
Kate is one of the top property experts in the UK and regularly quoted in the press including the Telegraph, Independent, Times, Daily Mail and Express, and has appeared on BBC2, as well as featured on BBC Radio 4 and a number of local BBC Radio stations.
Kate has also been a consultant to the property sector for a number of years and is the author of a number of books, including four for Which? – , Sell, Move House, Renting and Letting, Develop your Property and the Property Investment Handbook.
Precious Metals ETF have gone wild the past 2 weeks. Last week we saw gold and silver prices drop sharply as it shook out short-term trader’s stop before breaking out and moving higher. Also there is a disconnect between gold and the dollar.
Energy commodities like natural gas and crude oil are moving in opposite directions and look to be picking up speed. Natural gas is losing pressure and oil is on fire.
GLD ETF Trading – Pivot Trading Low
Last week we had our pivot trading low generate another signal for gold. Trading pivot lows is a simple trading strategy. I call them low-risk setups and take advantage of buying a stock, commodity, or currency after a pullback to support and when a reversal candle is formed. The chart clearly shows when you are trading with the trend buying on the dips is generally a low risk play with great up-side potential.
Precious Metals ETF Trading – Gold Bullion Takes Control
The chart shows the performance of gold stocks (red), silver bullion (blue) and gold bullion (green). As you can see the past 2 weeks while the market has been selling down, precious metals stocks have been hit harder than silver and gold.
Because of the heavy selling in stocks recently, the smart money had been going into commodities, especially gold bullion. Gold stocks are a great play but this is telling us investors feel safer in physical bullion than stocks.
Gold is the most known precious metal and safe haven which is why it’s holding value better than silver and stocks. This week we are seeing gold become more valuable in several major currencies which means gold is actually making a real move higher.
USO ETF Trading – Breakout & Bull Flag
Crude oil has had some great breakouts this year and it looks like we are about to get another signal shortly. We had a breakout in October from the large pennant and are now flagging which is very bullish. We could see USO reach $50 in the next month or two.
UNG ETF Trading – Pivot Low or Waterfall Sell-Off?
Natural gas is at a crucial level for a higher low bounce or another massive panic sell-off. Trading right now with UNG is a 50/50 shot so we will just have to wait and let things unfold more before taking any action.
The Stock Markets, Precious Metals & Energy Trading Conclusion:
The market is starting to feel a little squirmy as it tries to find support. Small cap stocks continue to get crushed while blue-chip (large cap) stocks are holding more of their value. Gold has broken higher this week while silver and precious metal stocks under- perform their big sister Yellow Gold.
Crude oil is holding up nicely, forming a 3 week bull flag and showing signs of life while natural gas continues to get hammered.
The market has been jumpy the past 2 weeks because market participants are very uneasy about the future direction of the US dollar.
If you would like to receive these free trading reports visit my website: www(dot)GoldAndOilGuy(dot)com
Chris Vermeulen is Founder of the popular trading site TheGoldAndOilGuy.com. There he shares his highly successful, low-risk trading method. Since 2001 Chris has been a leader in teaching others to skillfully trade in gold, oil, and silver. Subscribers to his service depend on Chris’ uniquely consistent investment opportunities that carry exceptionally low risk and high return.
Some people fix and flip houses for extra income, others, as their primary source of money. But no matter what reason people have in doing this business, they commit common errors. Here are a few of the mistakes investors hardly notice:
Blowing the trumpet. Some investors just can’t keep their mouths shut. Keep on doing this and you’ll notice that you’ll close less and less deals. Remember that information flies fast and sometimes it accidentally and unfortunately lands on the lap of a competitor. Some house flippers, in pure jubilation that found a house they want to flip, call their friends to tell about it. Others tweet or blog about it even before they fix and flip or even the property. When they go back to purchase it, they’ll be surprised that a competitor has begun rehabbing the house. Apparently, news about the good deal got to him and he had the money first. Yes, if only you kept your mouth shut.
Waiting for the best bus. Investors often forget that flipping houses is a fast-paced business. Confident with what they’ve done with the property, they wait until someone offers the price they really want. They then fail to notice that the property has been sitting in the market for more than 90 days and has already depreciated. Maintenance costs have also gone up. To avoid this, accept the first deal you get for the house if the offer isn’t far from your selling price.
Ignoring the grass. Take this advice literally: do not ignore the grass. Untrimmed lawn means the property is not well taken care off. A terrible looking yard will immediately turn off a buyer and will lead to the house’s depreciation. What you can do is invest well in the landscaping of the garden or the front yard. Put some potted plants here and there. Remember, first impressions last and in this case, they can make buyers snap the property.
Falling in love with the house. It’s the prospective buyer who must fall in love with the property, not you! When you fix and flip a house, always remind yourself that you are doing it for business, for profit. A lot of rehabbers overspend because they fail to keep their emotions in check. They imagine the property as their home to-be and spend on it. Before they realize it, they’ve already shelled out money double their repair budget.
To learn more about common mistakes committed by those who properties, go to . The website is a good source of educational material about and other real estate investing topics.
When it comes to investing in real estate, doing fix and flip projects is probably one of the easiest ways to earn money. Over the years, dozens of real estate investors have made millions of dollars by fixing and flipping houses and it looks like this trend won’t end anytime soon.
Also known as rehabbing, fixing and flipping properties basically involves the process of buying and refurbishing a house, usually single-family homes, for profit. Although some people might be intimidated by the thought of renovating a rundown house, being successful in this type of real estate investing is not that difficult, especially if you know exactly what to do.
To give you an idea on how things work in this business, here is a list of things you should do to ensure a successful fix and flip project:
1. Determine the repair cost. Do a walkthrough on the property by checking the roof, the general structure, as well as the plumbing and electrical systems. You can also ask contractors to do an appraisal on the house so you can determine how much money you will need for the property’s makeover.
2. Make sure that you have enough cash when rehabbing property. If you don’t have ready money on hand, you can apply for a loan. You might want to consider seeking the assistance of hard money lenders since the loans they offer provide coverage for a property’s repairs.
3. Create a budget and a rehabbing schedule to ensure that you won’t spend too much time and money on the property. One of the common mistakes that most rehabbers commit is to go overboard when it comes to the property’s renovation. As a result, they lost a great deal of time and money. Thus, to avoid making such a costly oversight, always remember that you are renovating a property to earn money, not to win a home improvement contest.
4. Don’t forget to secure permits for the property you want to rehab. Repairs on the plumbing and electrical systems, as well as on roofs, walls, and windows require permission from the local code enforcement department. Thus, you have to make sure that you are prepared when enforcement officers drop by for a surprise inspection.
5. While there are investors who urge rehabbers to advertise the property as soon as you bought them, there are some who warn against such a move. According to them, you shouldn’t advertise the house unless you are close to completing the repairs. They said that such a move will help maintain your focus on repairing the property.
To make it big in the business, just always keep these pointers in mind. But if you want to learn more about houses, log on to . REIWired.com is home to top-notch articles and videos on real estate.
Golfers are getting ready to tee it up this Friday, May 4 at the sold out Third Annual HOPE on the Green tournament, a fun-filled day that raises critically needed funding for The Will Herndon Fund for Juvenile Batten Disease Research, a fund of the Beyond Batten Disease Foundation.
Beyond Batten Disease Foundation supports research to treat and cure Batten disease, which is a rare, fatal, inherited, neurodegenerative disorder that strikes young children, including 9-year- old Will Herndon of The Woodlands. The condition initially causes blindness and seizures, progressively impairs cognitive and motor capacities, and then ultimately results in death during the late teen years or early 20s. The foundation also has funded the development of a screening test to help prevent the devastating disease along with hundreds of other serious ? and often deadly ? genetic, childhood illnesses.
Because Batten disease is so uncommon, there is not much federal funding for research to treat and cure it. So, in 2008, Craig and Charlotte Benson of Austin started Beyond Batten Disease Foundation after learning that their then 5-year-old daughter, Christiane, had the condition. In 2010, Wayne and Missy Herndon of The Woodlands launched The Will Herndon Fund as part of the foundation, following diagnosis of their son, Will. Based in The Woodlands, the fund has raised nearly $ 750,000 to date.
HOPE on the Green will be at Woodforest Golf Club in Montgomery, Texas. The course was designed by 10-time PGA Tour champion, Steve Elkington, and is the state?s No. 1 public-access course (in the $ 60-$ 81 daily fee range), according to the Dallas Morning News? 2011 rankings. On-site check-in for the four-person, scramble format event begins at 10 a.m. followed by lunch before players tee off at 12:30 p.m. Immediately after tournament play, there will be an awards ceremony, appetizers and a cigar and Scotch tasting bar.
Throughout the day, players can participate in a variety of contests. Sewell Automotive Companies is sponsoring hole-in-one and closest-to-the-pin contests for a $ 35,000 Infiniti G37 sedan and a weekend convertible rental, respectively. Woodforest Golf Club is generously sponsoring $ 1,000,000 shoot-out and $ 100,000 putting contests. Helicopter Services, Inc. again will provide the HOPE Helicopter Ball Drop. Golfers bet on numbered balls, then a helicopter drops the balls onto a green; the golfer who bets on the first ball that lands in the hole wins a brand new iPad 2 courtesy of The Aldridge Company.
?HOPE on the Green is a great way for golfers in The Woodlands and Houston metro areas to truly make a difference in the world ? we are blessed to have more than 216 golfers signed up,? said Missy Herndon, Will?s mother, event chair and fund founder. ?We are in a literal race against time to save Will and the hundreds of children like him. Private funding is crucial to meet our mission. People in The Woodlands and surrounding communities are helping to make that possible.?
To date, The Will Herndon fund has:
????Raised more than $ 750,000 to support a variety of research initiatives in Europe and the United States to treat and cure juvenile Batten disease. These initiatives include promising research at the Jan and Dan Duncan Neurological Research Institute at Texas Children’s Hospital in Houston.
????Sponsored the first conference focused on drug discovery for treating juvenile Batten disease. The conference launched initial efforts to test tens of thousands of existing compounds for their effectiveness.
????Enabled a partnership with a German biotech company to develop an antibody of juvenile Batten disease protein, CLN3. This will help investigators conduct research into how the loss of this protein results in devastating disease.
????Awarded grants to King’s College in London and the University of Iowa to investigate potential drug targets that address the function of the cells at the heart of Batten disease.
About Beyond Batten Disease Foundation
Beyond Batten Disease Foundation works to cure and prevent Batten disease, a rare, inherited neurological disorder that strikes young children, first causing vision loss and seizures, then cognitive and motor impairment, and ultimately death during the late teen years or early 20s. The foundation raises funds for research and is leading development of an easy and inexpensive, groundbreaking blood test to detect the gene mutations that cause Batten disease as well as 600-plus, other rare but serious and often fatal childhood ailments. For more information, visit http://www.beyondbatten.org
In real estate, the term rehabbing mainly refers to the process of buying and renovating a property before selling it for profit. Most real estate investors prefer houses that require minimum repairs to help them reduce their expenses. There are also some who fixer upper homes that are located in the best part of a neighborhood because selling these properties once they are rehabbed are relatively easier.
The business of fixing and flipping properties requires a considerable amount of cash on hand because of the repairs or the rehabilitation of a house. If you don’t have ready money, a good way to obtain financing aside from seeking the assistance of traditional lenders is through . Hard money loans usually provide coverage for the repair cost of a property, which is being offered as collateral.
When choosing investment properties, you might want to consider buying houses from motivated home sellers because you can save a lot of money. These people are in a hurry to get rid of the property due to various reasons that may include, divorce, relocation, or foreclosure. Because of this, they don’t usually ask for a higher selling price. As long as you can get the property off their hands the soonest possible time, they would be willing to accept your offer.
Before starting the rehabbing process, find out the property’s repair cost. If you don’t know how to do it, you can ask professional contractors or appraisers to check out the house. Doing a walk through on the property will also give you an idea on how much it would take you to get it back on shape. Check the roof for wood rot or termite damage, as well as the house’s overall structure for cracks on the walls.
Once you got the estimates, make sure that you have secured the necessary permits to repair the property. Some code enforcement agents drop by unannounced and if they catch you tearing down the house without the necessary papers, it can spell disaster for your rehabbing project. But if you are prepared for such a scenario, you can proceed with your project without the fuss. Renovating the property on your own can help you save a lot of money. However, if you’re not a full-time rehabber, it could take some time before you finish doing the repairs on the property. In addition, if the repairs are not at par with the local building code, you’re bound to face a lot of problems in the future. So if you don’t have experience with handyman jobs, you better hire contractors to do the renovations.
Meanwhile, if you want to know the dos and don’ts of rehabbing, log on to . The website features quality articles and videos on real estate investing as well as fixing and flipping properties.
Investors need to be aware of all the types of investments they can put their money in, so that they can know where they can get the best returns at a low risk rate. In the mutual funds category of investment, there is the speculative bond fund, which is referred to as a bond with a low rating. The rating is per the BAA3 or BBB rating and if they do not reach this level, they are referred to as low rated.
It is also important to note that speculative grade bonds are sometimes referred to with other names like high-yield bonds and junk bond. Having this knowledge will help you to know what is being talked about in the reports about the stock exchange market. The one factor that may be considered a disadvantage is the fact that the investments are considered high risk on the part of the issuer, the reason being that investors have a tendency to default without prior warning.
The risk on the part of the speculative grade bond holder is widespread and cuts across interest rate, liquidity, market, maturity, inflation and duration risk among many other types of risk. All these types of risk refer to different things, but just to mention a few, interest risk is the chance that the value of the bond will change, as dictated by the market forces. Changes in the value affect the rate of interest payable to the investor.
As earlier mentioned, the bonds are rated using the AAA, B, BB, BAA3, BBB or the CCC rating system. This is what determines whether they are high yield, medium yield or low yield. As such, an investor needs to be aware of this indexing when investing so as to know what kind of returns to expect from the investment.
Peter Gitundu Creates Interesting And Thought Provoking Content On Mutual Funds. Read More Of His Articles Here If You Enjoyed This Article, Make Sure You Read My Most Recent Posts Here
Average Return on Investment, also known as rate of return, rate of profit or sometimes just return, is the ratio of money gained or lost on an investment relative to the amount of money invested. It is usually expressed as a percentage rather than a fraction. It is derived by combining some bigger numbers and some smaller numbers, some years better than the average and some worse than average years. This is how averages work.
It measures the cash generated by or lost due to the investment. It measures the cash flow or income streaming to the investor from an investment, in relation to the amount invested. The Cash flow can be in the form of profit, interest, dividends, or capital gain/loss. Capital gain/loss occurs when the market value or resale value of the investment increases or decreases respectively.
Any investment carries significant risk, the investor will lose some or all of the invested capital or even gain. For example, investments in company stock shares put capital at risk; the capital value (price) of a stock share constantly changes. Since all stock shares have some changes in price with time, the changes in price directly affects Average Return on Investment for stock investments.
It should be noted that this investment is a measure of profitability and not a measure of size. In general, the higher the investment risk, the greater the potential investment return, and the greater the potential investment loss. Financial experts advise customers to just hang in there through the bad times, taking advantage of the drop in your fund’s share price to more at bargain prices. Switching from one fund to another in Average Return on Investment can sometimes be a big mistake.
Peter Gitundu Creates Interesting And Thought Provoking Content On Mutual Funds. Read More Of His Articles Here If You Enjoyed This Article, Make Sure You Read My Most Recent Posts Here
