All parents feel protective towards their children and while this is most often for their overall safety, it can also mean helping them with money by ensuring they have a child savings account set up. Parents want their children to achieve great things and this is perfectly normal but this requires great sacrifices to be made. Many of the problems children face as hey grow older will revolve around money, or rather the lack of it, so it makes sense to start a savings account from a young age along with the standard insurance policies and bonds.
Placing money into a savings scheme with regular payments means this financial provision can start early and does not become a burden early on in their lives. Children should also learn how to save too and having an account set up for them is the best way for them to discover the benefits and how easy saving is. This can help offset the cost of tuition for college as education costs are always on the increase; or for any further education programs they might need in the future.
Often, college savings plans are promoted but ultimately these can only be used on educational needs whereas a child's savings account is not restricted in this way. Their money will always be there for them no matter what and they can withdraw it whenever they wish knowing that they will not be charged for the privilege.
Several financial institutions offer special accounts just for children, so finding one should not be a problem but, finding the best child savings account that has a comparatively high interest rate will probably require a little homework. This has been made simpler since the advent of the Internet and the many comparison sites now available which make the task simpler and much faster.
If you are able to invest a lump sum then a bond may another method of saving for your children's future because the money is tied up for a predetermined period but as a consequence the interest rate is higher than those for regular savings accounts. The downside is that the money is tied so you should split any lump sum investment you have between the longer term bond and the shorter term savings account. Usually, bonds must sit for about three years before they mature, and in many cases, much longer, before you can actually cash them in to receive full value.
Regardless of whether you decide on savings, purchasing bonds or both, you'll create a financial cushion for your children's future when they may need it most. This provision also gives you the peace of mind to know that your children will be taken care of long past your initial investments in them financially and with a little research, choosing the best one and making regular deposits into your child savings account, a strong financial foundation will be laid.
Monday, March 30, 2009
Sunday, January 18, 2009
The world of forex trading can be mysterious, especially for someone who is newbie on this industry. This have similarities to the stock market, but there are many differences too. And even more confusing due to some terminology they are using even the stock market veteran and trader have to study and learn to move on the forex trading.
Luckily, a lot of companies now are offering forex trading seminar to help the newbie to understand the complicated but profitable game before they jumping into it. Some seminars are held free of charge in the hopes you will sign up on the their brokerage firm. Other are more intensive and longer training and bit more depth at those free seminars but require a fee.
At a forex seminar you can expect to learn:
- The basics of forex trading -- what it is, how it works, etc.
- The differences between forex and the stock market.
- How to know when to buy and sell currencies.
To find a seminar, search the Internet for forex brokers and browse their pages until you find one offering live seminars. A lot of major cities host forex trading seminars regularly. In some cases the firms offering seminars aren’t brokerage companies at all, but simply financial training firms that teach on how to do trading and then leave it to you to find a broker to actually do it.
At a forex seminar you’ll find a variety of people. Some will have had experience in the stock market or took business classes in college. Others will be complete novices interested in diversifying their investments. Still others might not have a lot of income but are looking for a way to use the money they do have more wisely.
One of the latest innovations in forex trading seminars is to hold them exclusively online. This is much cheaper for the company offering the seminar, obviously, as they don’t need to rent a hotel conference room. It also allows people from all over the world to participate. Hosting online makes the seminar more useful to more people, and since anyone can ask a question, you don’t have to worry about being lost in the crowd.
Saturday, January 10, 2009
Mutual Funds
A lot of people start to jump into the mutual fund investment game. While mutual funds have shown themselves over time to be a safer bet than regular stock trading, But there is always the chance you could lose in your investment. But the type of fund you choose will have a lot to do with the amount of risk you take on and the kind of return you’re looking for. For starters, mutual funds are usually broken down into six main categories.
1) Equity mutual funds allow you to invest in typical shares of common, everyday stock.
2) Fixed income mutual funds allow you to invest in corporate or government securities that usually offer a set rate of return on your investment.
3) Balanced mutual funds allow the investor to take on a fund that includes both stock and bond options.
As far I know the safest form of mutual funds are known as money market mutual funds. They offer a high degree of stability for your principal, as well as high liquidity if you need to back out.
Bond mutual funds are popular since they invest in tax free as well as taxable ones.
And finally, sector funds are used to help diversify your holdings within a particular industry.
Each of these types of funds can be both aggressive and risky with a high level of reward possible, or they can be safer and lower risk. It all depends on which fund you choose.
To break things down further, equity funds are usually divided up into four different categories: Growth and Income mutual funds, International mutual funds, growth mutual funds and aggressive growth mutual funds. Each different type of fund has a particular goal in mind. For some, it’s to aggressively pursue income, even in risky situations, while others seek to preserve the initial investment and only take smaller chances.
As we can see, the mutual fund landscape is filled with so many options, it can make a green horn head spin. But fear not, there is almost limitless information available on which mutual fund is right for your particular investment strategy. Not only do most mutual funds and those that run them have their own website, there is endless advice as to which fund is right for you on the Internet, as well. Don’t forget to utilize publications like the Wall Street Journal, as well as friends and family who might have had particular luck with a specific fund. Welcome to mutual fund investing!
1) Equity mutual funds allow you to invest in typical shares of common, everyday stock.
2) Fixed income mutual funds allow you to invest in corporate or government securities that usually offer a set rate of return on your investment.
3) Balanced mutual funds allow the investor to take on a fund that includes both stock and bond options.
As far I know the safest form of mutual funds are known as money market mutual funds. They offer a high degree of stability for your principal, as well as high liquidity if you need to back out.
Bond mutual funds are popular since they invest in tax free as well as taxable ones.
And finally, sector funds are used to help diversify your holdings within a particular industry.
Each of these types of funds can be both aggressive and risky with a high level of reward possible, or they can be safer and lower risk. It all depends on which fund you choose.
To break things down further, equity funds are usually divided up into four different categories: Growth and Income mutual funds, International mutual funds, growth mutual funds and aggressive growth mutual funds. Each different type of fund has a particular goal in mind. For some, it’s to aggressively pursue income, even in risky situations, while others seek to preserve the initial investment and only take smaller chances.
As we can see, the mutual fund landscape is filled with so many options, it can make a green horn head spin. But fear not, there is almost limitless information available on which mutual fund is right for your particular investment strategy. Not only do most mutual funds and those that run them have their own website, there is endless advice as to which fund is right for you on the Internet, as well. Don’t forget to utilize publications like the Wall Street Journal, as well as friends and family who might have had particular luck with a specific fund. Welcome to mutual fund investing!
Friday, January 2, 2009
Criticism about mutual funds
Mutual fund investing has exploded over the past 50 years to become one of the most popular forms of investing anywhere, there are still possible pitfalls that you can fall into if you’re not careful. Investing is still a risky business, even if everyone is doing it. Here are some tips to help you through any problems you might have.
One common criticism about mutual fund investing is that they don’t have a high enough return on their investment and that index funds, which aren’t as popular have historically returned a higher investment than the much more popular actively managed mutual funds.
Second common problem that some have with mutual fund investing is the use of load funds. You have probably seen the phrase “no-load mutual fund” in the newspaper or on television. The reason the no-load type of fund is preferred is because load funds come loaded with fees. These fees can run anywhere between half a percent, all the way up to 8.5 percent of however much you chose to invest. It’s thought that these fees are a clear conflict of interest as they clearly benefit the people making the sale and hurt the person making the investment. Load mutual funds are also thought to make your broker recommend funds that will maximize his fee, and not your investment portfolio.
Some investors also point to a perceived conflict of interest in regards to the size of the mutual fund. Most companies that manage the mutual fund charge a fee of between half a percent up to two and a half percent of the total amount of the funds assets. It’s thought that this fee could cause a fund to spend more on advertising than is actually needed so that they can get more people to invest in the fund and maximize their fee as much as possible.
The mutual fund market isn’t immune to scandals, either. In 2003, a scandal involving the practice of unethical and dishonest trading practices. Many funds were found to have participated in late trading and market trimming, both of which are illegal practices. You obviously don’t want to invest in a mutual fund that is engaged in illegal activities.
Mutual fund investing is gaining in popularity on an almost weekly basis, and a few bad eggs in the business won’t ruin it for everyone. However, it is always good advice to enter into any kind of investing with your eyes open, and if you feel your mutual fund is behaving improperly, there are authorities you can report them to.
One common criticism about mutual fund investing is that they don’t have a high enough return on their investment and that index funds, which aren’t as popular have historically returned a higher investment than the much more popular actively managed mutual funds.
Second common problem that some have with mutual fund investing is the use of load funds. You have probably seen the phrase “no-load mutual fund” in the newspaper or on television. The reason the no-load type of fund is preferred is because load funds come loaded with fees. These fees can run anywhere between half a percent, all the way up to 8.5 percent of however much you chose to invest. It’s thought that these fees are a clear conflict of interest as they clearly benefit the people making the sale and hurt the person making the investment. Load mutual funds are also thought to make your broker recommend funds that will maximize his fee, and not your investment portfolio.
Some investors also point to a perceived conflict of interest in regards to the size of the mutual fund. Most companies that manage the mutual fund charge a fee of between half a percent up to two and a half percent of the total amount of the funds assets. It’s thought that this fee could cause a fund to spend more on advertising than is actually needed so that they can get more people to invest in the fund and maximize their fee as much as possible.
The mutual fund market isn’t immune to scandals, either. In 2003, a scandal involving the practice of unethical and dishonest trading practices. Many funds were found to have participated in late trading and market trimming, both of which are illegal practices. You obviously don’t want to invest in a mutual fund that is engaged in illegal activities.
Mutual fund investing is gaining in popularity on an almost weekly basis, and a few bad eggs in the business won’t ruin it for everyone. However, it is always good advice to enter into any kind of investing with your eyes open, and if you feel your mutual fund is behaving improperly, there are authorities you can report them to.
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