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Friday, July 31, 2009
GLOBAL FINANCE
Amid the global financial crisis, China's forex reserve experienced a downturn in October 2008, which continued in January and February 2009. Starting from March this year, forex reserve began to grow again. Reserve increased by 177.87 billion USD in the second quarter, beating market expectations. Ding Zhijie, deputy dean of the School of Banking and Finance at the University of International Business and Economics, explained that there are three key reasons behind the surge in forex reserve: Firstly, China's foreign trade has generally maintained a favorable balance of trade, recording a cumulative surplus of 96.94 billion USD in the first six months of this year. Secondly, the value of non-US dollar assets in forex reserve has continued to increase due to the US dollar's depreciation. And thirdly, the optimistic outlook for China's overall economy has led to an inflow of international capital. Generally speaking, forex reserve stems from trade surplus, foreign direct investment (FDI) and favorable balance of international payments. It is estimated that the combination of China's trade surplus and FDI in the second quarter stood at around 50 billion USD, far less than the newly-added 177.87 billion USD forex reserve, marking a notable inflow of capital. Experts believe that it is necessary to keep a close watch on the trends of the world economy, international financial and forex markets, to adjust asset and currency portfolios in a timely and prudent manner, to ensure forex reserve's value preservation and appreciation. In respect of future trends for forex reserve, Ding believed that since China's economy is quite likely to lead the world in recovery, the inflow of international capital will continue, maintaining the trend for a rapid growth in forex reserve. Meanwhile, because the depreciation of the US dollar was a main factor in the surge of forex reserve in the second quarter, and there is not much room for further depreciation, in the near future the growth rate of forex reserve will narrow compared to the second quarter.
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International Forex Traders Affinity Group (IFXTAG) was established to unite individual traders, creating a force of magnitude and influence. We are fighting for the actual democratization of the global forex market. Working closely with influential government regulatory and private organizations throughout the world IFXTAG advocates for its membership: Fair Trading Conditions Responsive Analytical Support Professional Training Real Time Access to Critical News and InformationWhat is an Affinity Group? A group of people, who have an interest, a concern, an idea or an argument in common.Our international membership base is currently thousands strong and growing daily. IFXAG is becoming the market force to be reckoned with. Our sheer number of subscribers enables us to work with the forex industry’s leading content providers, financial publication editors, and training professionals. As a united force we can now deliver the same resources and operational efficiencies as the most powerful financial and corporate institutions. For IFXTAG members the training, trading tools, information, real-time data and other services are offered with a substantial discount.
We are not a trading company. We are an independent Group. We do not solicit or accept sponsorships or advertisers. If, in any shape or form, we refer to, indorse or give our IFXTAG Seal of Approval to a product or service, it is solely for the good of the Group or an individual trader.
Our might is in our membership. Only unified we shall excel. Join us!
International Forex Traders Affinity Group (IFXTAG) was established to unite individual traders, creating a force of magnitude and influence. We are fighting for the actual democratization of the global forex market. Working closely with influential government regulatory and private organizations throughout the world IFXTAG advocates for its membership: Fair Trading Conditions Responsive Analytical Support Professional Training Real Time Access to Critical News and InformationWhat is an Affinity Group? A group of people, who have an interest, a concern, an idea or an argument in common.Our international membership base is currently thousands strong and growing daily. IFXAG is becoming the market force to be reckoned with. Our sheer number of subscribers enables us to work with the forex industry’s leading content providers, financial publication editors, and training professionals. As a united force we can now deliver the same resources and operational efficiencies as the most powerful financial and corporate institutions. For IFXTAG members the training, trading tools, information, real-time data and other services are offered with a substantial discount.
We are not a trading company. We are an independent Group. We do not solicit or accept sponsorships or advertisers. If, in any shape or form, we refer to, indorse or give our IFXTAG Seal of Approval to a product or service, it is solely for the good of the Group or an individual trader.
Our might is in our membership. Only unified we shall excel. Join us!
Sunday, July 19, 2009
TIPS WHILE INVESTING
If you are a first-time property investor, be aware that investing in property involves a number of important steps, including:
Educate yourself – read books and magazines and speak to people you truly trust.
Establish a clear property investment strategy – do you want a property investment that provides sufficiently high rental returns to be self-servicing or are you chasing capital growth. Your choice of property investment strategy will dictate what kind of property you buy and where you look for it.
Thoroughly research the areas you are interested in for first property investments.
It’s a must to get a property valuation and a building inspection report before signing up to buy your first investment property.
Here are some of the pitfalls why first-time property investor’s investment properties fail to perform:
The purchase price was too high.
The property is in an area of low capital growth potential.
The property is too high maintenance.
The rent is too low.
Vacancy periods are too long or too many.
The loan taken out was structured incorrectly.
Some tax deductions are missed.
The Australian Securities and Investment Commission has outlined the following recommendations for first-time property investors before buying real estate as an investment asset:
1. Be wary of pressure selling techniques and high pressure seminarsSome sales people can be extremely persuasive and persistent.
2. What are your overall financial plans?Before investing in any asset make sure your decision fits into your overall investment strategy. If you don’t have an overall investment strategy then now is the time to develop one:
Think about what you want to achieve financially and how soon do you want to achieve it.
Set yourself goals.
3. Understand the risks involvedMake sure you are comfortable with the risks associated with a particular investment. All investments carry risks. Generally the higher the risk the higher the returns.
Do you know what the risks are in real estate? Can you sleep at night knowing this? If you can’t then perhaps you should invest in an asset with less risk.
All good financial plans will split your money up against a range of assets in order to spread the risk. Think about this as you think about investing in real estate. Will you have all your eggs in one basket if you buy a particular piece of real estate?
Remember that all types of investments have cycles of profitability and cycles of losses. These cycles can last for years. Will real estate cycles fit your financial plans?
4. Getting adviceDecide whether you need professional advice. If you’re dealing with a financial adviser then make sure they’re licensed by ASIC.
6. Do your homeworkFind out as much as possible about any investment you are making. Make sure you really understand the pros and cons of the choosing a particular investment asset. Weigh the advantages and disadvantages against your financial goals.
7. Tax and social security issuesThere may be tax issues to consider that your real estate agent may not understand. Your tax accountant could be a good place to start to check the numbers and tax issues.
8. Looking after your investment assetsLove your paperwork. Read and keep all documents you receive about your investment.
If your asset is being managed by someone else, then make sure they keep you informed of what is happening:
Insist that they give you written records and reports. Chase them up if they don’t arrive.
Ask questions if you’re not sure. Reputable investment managers will be happy to answer your questions and will expect you to take an interest in your investments.
Make sure you give all your instructions to a manager in writing. Also tell them what limits they have to act on your behalf.
Educate yourself – read books and magazines and speak to people you truly trust.
Establish a clear property investment strategy – do you want a property investment that provides sufficiently high rental returns to be self-servicing or are you chasing capital growth. Your choice of property investment strategy will dictate what kind of property you buy and where you look for it.
Thoroughly research the areas you are interested in for first property investments.
It’s a must to get a property valuation and a building inspection report before signing up to buy your first investment property.
Here are some of the pitfalls why first-time property investor’s investment properties fail to perform:
The purchase price was too high.
The property is in an area of low capital growth potential.
The property is too high maintenance.
The rent is too low.
Vacancy periods are too long or too many.
The loan taken out was structured incorrectly.
Some tax deductions are missed.
The Australian Securities and Investment Commission has outlined the following recommendations for first-time property investors before buying real estate as an investment asset:
1. Be wary of pressure selling techniques and high pressure seminarsSome sales people can be extremely persuasive and persistent.
2. What are your overall financial plans?Before investing in any asset make sure your decision fits into your overall investment strategy. If you don’t have an overall investment strategy then now is the time to develop one:
Think about what you want to achieve financially and how soon do you want to achieve it.
Set yourself goals.
3. Understand the risks involvedMake sure you are comfortable with the risks associated with a particular investment. All investments carry risks. Generally the higher the risk the higher the returns.
Do you know what the risks are in real estate? Can you sleep at night knowing this? If you can’t then perhaps you should invest in an asset with less risk.
All good financial plans will split your money up against a range of assets in order to spread the risk. Think about this as you think about investing in real estate. Will you have all your eggs in one basket if you buy a particular piece of real estate?
Remember that all types of investments have cycles of profitability and cycles of losses. These cycles can last for years. Will real estate cycles fit your financial plans?
4. Getting adviceDecide whether you need professional advice. If you’re dealing with a financial adviser then make sure they’re licensed by ASIC.
6. Do your homeworkFind out as much as possible about any investment you are making. Make sure you really understand the pros and cons of the choosing a particular investment asset. Weigh the advantages and disadvantages against your financial goals.
7. Tax and social security issuesThere may be tax issues to consider that your real estate agent may not understand. Your tax accountant could be a good place to start to check the numbers and tax issues.
8. Looking after your investment assetsLove your paperwork. Read and keep all documents you receive about your investment.
If your asset is being managed by someone else, then make sure they keep you informed of what is happening:
Insist that they give you written records and reports. Chase them up if they don’t arrive.
Ask questions if you’re not sure. Reputable investment managers will be happy to answer your questions and will expect you to take an interest in your investments.
Make sure you give all your instructions to a manager in writing. Also tell them what limits they have to act on your behalf.
INVESTOR FINANCE
Investor Finance has helped me double my portfolio within 12 months and profited at least 50% of my investment.
The best part is Investor Finance staff members are also investing in property and well trained to help other investors in achieving their g
‘We didn’t think we could ever afford to buy an investment property – we struggled to budget our weekly expenses with three teenage children. We owned a nice home though that had grown in value since we had bought it in 1995.
In 2003 we discovered the power of the equity in our family home. We realized that we didn’t need to wait until we had saved a deposit as the equity allowed us to borrow 105% of a new investment property’s value.
So we bought our first investment property late in 2003. The rental income paid for most of the loan, we managed to pay the rest and then we got a great surprise at the end of the financial year by getting some of our tax payments back from the government!
Before we knew it, we were hooked – within 3 years we had purchased 5 investment properties, in places all around Australia. We currently are organizing to buy a new home, and our equity growth has allowed us to keep our original home and turn it into an investment also.
So our property portfolio now totals 7 properties worth a combined value of $2.7 million. My husband and I often say “if only we had understood the power of equity in our own home even 5 years earlier…imagine where we would be
‘Living in QLD, renting and on not on huge wages, we thought we would never afford to buy our own home , let alone an investment property – they were all just too expensive.
But in speaking with an Investor Finance strategist they showed us how we could get into a property and that we need to think ‘outside the square’. Once I had got my head around the fact that I don’t need to live in a property or even in the same town it opened up so many more possibilities. We ended up buying our first investment property in Western Australia, finding a block of land for $45,000 and constructing for about $110,000.
Straight after completion this WA property was worth $220,000, however we left this equity alone at this stage and went into a joint venture in QLD with some friends to make some quick cash. They had the deposit & we had the income to service the loan. We did a land and construction which cost about $410,000 all up – which we turned around and sold for $485,000. (it took about a year to complete as we did a lot of the work ourselves).
The money we made from this joint venture we used as a deposit to get into our first owner occupied property in QLD (we paid $335,000 which is now worth $410,000 –with a couple of minor renovations).
Whilst waiting for the construction on our Joint Venture to be completed we unlocked the equity from our first property (which had since doubled due to the boom in WA).
Over a period of 18mths, we have now managed to unlock & use this equity to purchase a further 5 investment properties – 2 in QLD & 3 in SA. Bringing our total to 7 properties including our own Owner Occupied property, with a total value of $1,765,000. Not bad for a couple of 25year olds.’
‘Thanks Scott for all your help getting an approval for us.
We were convinced no main stream bank would touch us with our list of previous issues but you were positive, confident and tenacious enough to pull it off!
Not only did you get us an approval, but an awesome interest rate to match, we are truly impressed and grateful for what you have achieved.
Thanks also for your great communication throughout the whole process, you always made us feel like we were the most important people to you at any given time.
We cannot speak highly enough of your service look forward to giving you plenty more business in the future.’
Albert and Rachael Koster
‘We had a client who came to us with his own home and 3 investment properties. All of his properties were with the same lender. The client wanted to keep as many of these properties with that lender as possible because he was a loyal customer. However, he wanted to purchase another 3 more properties. With his current lender he could only purchase 1 more. Taking his wishes and goals into consideration, we were able to show him that by taking only 1 property to another lender that this would allow him to purchase 2 – 3 more properties. Imagine the growth of his portfolio when he chooses to do the same with his other properties!’
‘I have been working with Scott for near on 12 months and have found him to be an invaluable part of my investing team. Scott is very knowledgeable in the finance arena and having an investment mind set he quickly understands what I am trying to achieve. With this wealth of knowledge Scott has been able to source some fantastic solutions for us. I look forward to working further with Scott in the coming year.’
‘We just wanted to say a huge ‘Thank You’ for helping us buy our first home! You made the process so easy… to know you were looking after the financial side of things meant we could concentrate on everything else involved in purchasing a home!
We loved the fact that you discussed all our options and recommended a few strategies to help us pay our home off quicker… as well as discussing possibilities for the property in the future.
When we did come across a small hiccup with one bank, you straight away took charge to find us another suitable lender, without wasting any precious time.
You were such great source of enthusiasm… your excitement was infectious and even when we were stressed, you were there to pick us back up again and helped us find the excitement again.
You kept in constant contact… something a lot of people lack these days. You were there to keep us informed EVERY step of the way and you always made yourself available.
Now we have the keys and will be moving into our first home on Friday
Once again, thank you so much Scott… we couldn’t have done it without you. VIVEK
The best part is Investor Finance staff members are also investing in property and well trained to help other investors in achieving their g
‘We didn’t think we could ever afford to buy an investment property – we struggled to budget our weekly expenses with three teenage children. We owned a nice home though that had grown in value since we had bought it in 1995.
In 2003 we discovered the power of the equity in our family home. We realized that we didn’t need to wait until we had saved a deposit as the equity allowed us to borrow 105% of a new investment property’s value.
So we bought our first investment property late in 2003. The rental income paid for most of the loan, we managed to pay the rest and then we got a great surprise at the end of the financial year by getting some of our tax payments back from the government!
Before we knew it, we were hooked – within 3 years we had purchased 5 investment properties, in places all around Australia. We currently are organizing to buy a new home, and our equity growth has allowed us to keep our original home and turn it into an investment also.
So our property portfolio now totals 7 properties worth a combined value of $2.7 million. My husband and I often say “if only we had understood the power of equity in our own home even 5 years earlier…imagine where we would be
‘Living in QLD, renting and on not on huge wages, we thought we would never afford to buy our own home , let alone an investment property – they were all just too expensive.
But in speaking with an Investor Finance strategist they showed us how we could get into a property and that we need to think ‘outside the square’. Once I had got my head around the fact that I don’t need to live in a property or even in the same town it opened up so many more possibilities. We ended up buying our first investment property in Western Australia, finding a block of land for $45,000 and constructing for about $110,000.
Straight after completion this WA property was worth $220,000, however we left this equity alone at this stage and went into a joint venture in QLD with some friends to make some quick cash. They had the deposit & we had the income to service the loan. We did a land and construction which cost about $410,000 all up – which we turned around and sold for $485,000. (it took about a year to complete as we did a lot of the work ourselves).
The money we made from this joint venture we used as a deposit to get into our first owner occupied property in QLD (we paid $335,000 which is now worth $410,000 –with a couple of minor renovations).
Whilst waiting for the construction on our Joint Venture to be completed we unlocked the equity from our first property (which had since doubled due to the boom in WA).
Over a period of 18mths, we have now managed to unlock & use this equity to purchase a further 5 investment properties – 2 in QLD & 3 in SA. Bringing our total to 7 properties including our own Owner Occupied property, with a total value of $1,765,000. Not bad for a couple of 25year olds.’
‘Thanks Scott for all your help getting an approval for us.
We were convinced no main stream bank would touch us with our list of previous issues but you were positive, confident and tenacious enough to pull it off!
Not only did you get us an approval, but an awesome interest rate to match, we are truly impressed and grateful for what you have achieved.
Thanks also for your great communication throughout the whole process, you always made us feel like we were the most important people to you at any given time.
We cannot speak highly enough of your service look forward to giving you plenty more business in the future.’
Albert and Rachael Koster
‘We had a client who came to us with his own home and 3 investment properties. All of his properties were with the same lender. The client wanted to keep as many of these properties with that lender as possible because he was a loyal customer. However, he wanted to purchase another 3 more properties. With his current lender he could only purchase 1 more. Taking his wishes and goals into consideration, we were able to show him that by taking only 1 property to another lender that this would allow him to purchase 2 – 3 more properties. Imagine the growth of his portfolio when he chooses to do the same with his other properties!’
‘I have been working with Scott for near on 12 months and have found him to be an invaluable part of my investing team. Scott is very knowledgeable in the finance arena and having an investment mind set he quickly understands what I am trying to achieve. With this wealth of knowledge Scott has been able to source some fantastic solutions for us. I look forward to working further with Scott in the coming year.’
‘We just wanted to say a huge ‘Thank You’ for helping us buy our first home! You made the process so easy… to know you were looking after the financial side of things meant we could concentrate on everything else involved in purchasing a home!
We loved the fact that you discussed all our options and recommended a few strategies to help us pay our home off quicker… as well as discussing possibilities for the property in the future.
When we did come across a small hiccup with one bank, you straight away took charge to find us another suitable lender, without wasting any precious time.
You were such great source of enthusiasm… your excitement was infectious and even when we were stressed, you were there to pick us back up again and helped us find the excitement again.
You kept in constant contact… something a lot of people lack these days. You were there to keep us informed EVERY step of the way and you always made yourself available.
Now we have the keys and will be moving into our first home on Friday
Once again, thank you so much Scott… we couldn’t have done it without you. VIVEK
Tuesday, July 14, 2009
DEBT MANAGEMENT
This guide explains how debt management works and helps you decide whether it’s the right course of action for you.
Debt management can help some people with borrowing difficulties to adjust their financial repayments to enable them to keep within their monthly budget and without taking on any more borrowing.
Debt management is not right for everyone and there are some pitfalls to consider before you decide to go down this route as a means of easing your money issues.
If your financial problems are only short term and your situation is likely to improve then a debt management plan may be worth pursuing. However, don’t consider them if your ability to repay your debts is very limited and the situation is unlikely to improve over the next 12 months.
This guide explains how debt management works and helps you decide whether it’s the right course of action for you.
Debt management can help some people with borrowing difficulties to adjust their financial repayments to enable them to keep within their monthly budget and without taking on any more borrowing.
Debt management is not right for everyone and there are some pitfalls to consider before you decide to go down this route as a means of easing your money issues.
If your financial problems are only short term and your situation is likely to improve then a debt management plan may be worth pursuing. However, don’t consider them if your ability to repay your debts is very limited and the situation is unlikely to improve over the next 12 months.
Debt management can help some people with borrowing difficulties to adjust their financial repayments to enable them to keep within their monthly budget and without taking on any more borrowing.
Debt management is not right for everyone and there are some pitfalls to consider before you decide to go down this route as a means of easing your money issues.
If your financial problems are only short term and your situation is likely to improve then a debt management plan may be worth pursuing. However, don’t consider them if your ability to repay your debts is very limited and the situation is unlikely to improve over the next 12 months.
This guide explains how debt management works and helps you decide whether it’s the right course of action for you.
Debt management can help some people with borrowing difficulties to adjust their financial repayments to enable them to keep within their monthly budget and without taking on any more borrowing.
Debt management is not right for everyone and there are some pitfalls to consider before you decide to go down this route as a means of easing your money issues.
If your financial problems are only short term and your situation is likely to improve then a debt management plan may be worth pursuing. However, don’t consider them if your ability to repay your debts is very limited and the situation is unlikely to improve over the next 12 months.
Sunday, July 5, 2009
REASONS OF INSURANCE
Insurance is a defensive measure used against future conditional losses to hedge the possible risks of the future. It is a legal contract that protects a person from contingent risk of losses through financial means and provides a means for individuals and societies to handle some of the risks faced in daily life.
These contracts of insurance are called policies and are provided by insurance companies. The Insurance companies charge a regular amount from the customers, which is paid back, either in part, or entirety, to the customers in case of a definite loss. This regular amount charged from customers is called Insurance Premium
.
REASONS OF INSURANCE
REASONS OF INSURANCE
Sometimes in life it is not possible to avoid the losses. For example People may become ill. They may die of illness or accidents or their homes or other property may undergo damage or theft. So in all these cases and they have to face the loss of income or savings. So insurance is a manner of financially insuring that if such an incident comes about then the loss does not affect the present well being of the person.
DOCTRINES OF INSURANCE
There should be a certain definite loss taken place at a known time, in a known place and from a known cause. Therefore the time, place and the cause of loss should be clear enough.2 The incident that represent the cause of the claim should be accidental or beyond the control of the beneficiary.3 The size of the loss must be significant from the perspective of the insured. Insurance premiums should cover both the estimated cost of losses, plus the cost of policy, regulating the losses, and providing the principal required to logically assure that the insurer would be able to reimburse claims.4 The amount of premium should be affordable.5 The possibility of loss and the cost of compensation should be calculable or estimable
TYPES OF INSURANCE
Below are some kinds of insurances.LIFE INSURANCE:
Life insurance policy insures the life of the insured. The insurance company is legally bound to provide a monetary benefit to a decedent's family or the beneficiary after the death of the policyholder. The proceeds are paid to the beneficiary either in a lump sum amount or an annuity
MEDICAL INSURANCE:Medical insurance is also called medclaim. Under this policy the insurance policy pays the amount to the insured for his health purpose. This amount covers the cost of medical treatment.
DISABILITY INSURANCE:There are two types of disability insurance.One is simple disability insurance and the other is total disability insurance. In case of simple disability insurance,a financial support on monthly basis is provided by the insurer to the policy holder if he is unable to work due to an injury or an illness. But permanent disability insurance provides the reimbursement if a person becomes permanently disabled.
GENERAL INSURANCE:It includes automobiles insurance, business insurance, property insurance etc.
Automobile insurance
In UK this insurance is called motor insurance. It compensates the loss or damage occurred to the vehicle. But in United States auto insurance policy is essential to legally operate a vehicle on public roads.
Business insurance:Business insurance protects the businesses against risks of losses and damages and compensates in case of loss
Property insurance:This type of insurance protects the property against the risks like fire, theft etc. This category also includes fire insurance, flood insurance, earthquake insurance etc
Fire Insurance:It is an insurance covering the damage to the property caused by fire.
Flood Insurance:This type of insurance pays the policy holder in case of any loss or damage to the property due to flood. It protects the property against the flooding.
Earthquake Insurance:This insurance compensates any damage to the property caused by earthquake.
Business insurance:Business insurance protects the businesses against risks of losses and damages and compensates in case of loss
Property insurance:This type of insurance protects the property against the risks like fire, theft etc. This category also includes fire insurance, flood insurance, earthquake insurance etc
Fire Insurance:It is an insurance covering the damage to the property caused by fire.
Flood Insurance:This type of insurance pays the policy holder in case of any loss or damage to the property due to flood. It protects the property against the flooding.
Earthquake Insurance:This insurance compensates any damage to the property caused by earthquake.
IMPORTANCE OF INSURANCE
Insurance plays an important role in sharing the risks of people in an affordable form.It helps the people to quickly recover from damages and losses.
HOW TO INCREASE INCOME ?
Achieving an instant income from Forex trading (currency trading) online is a dream of so many traders yet so few actually manage to turn their dreams in to a reality.
The question is why? We all know there are traders out there making a fortune so we know it is possible.
What most people want to know is how these traders can come to earn so much that they not only make a living but also earning moreA in a month than most people earn in a year.
The question is why? We all know there are traders out there making a fortune so we know it is possible.
What most people want to know is how these traders can come to earn so much that they not only make a living but also earning moreA in a month than most people earn in a year.
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