Judge Some Facts Before Exchanging The Money

When you will go traveling, then you have to take the things, which you will need in that place. It is necessary because you will not get the facilities of your home there and you have to be prepared for every situation. But when the matter comes to the visiting of a foreign country, then apart from our excitement we have to think about the thing first is the money. As all of us know that there is variety in the currency of different place. So, we must take the proper currency of that place as we cannot do anything without it. There are some methods, by which you can exchange the money, like the banks, the ATMs or from some brokers.
The banks are the most reliable medium for exchanging the money. You can be assured by the fact that you will get the service authentically. They will systematically exchange the currency and you don’t have to think about it. You can also convert it from the banks of that place also. You will get the same reliable service. But as you are going to a public sector, then it will take some time and you have to wait for it. So, if you don’t have the time to wait there, then you will face difficulty by exchanging through the banks. The banks also charge high rates for converting the money, then it can be expensive for you.
You can take the money from the ATMs also. It is the most convenient medium for getting your cash, as you yourself will draw the money and you don’t have to depend on someone for this. So, you can take the money whenever you needed and it is the fastest service. But there I also the problem, as the ATMs charge a very high price for drawing the money. It will become more expensive for you as you have to pay more than the normal transaction. If you think that you will get the money at a time, then also it will not be safe for you to carry so much money to an unknown place. But with every transaction, you have to pay the charge.
When you will try to go some brokers for Cash Exchange, then it becomes easy for you as you can get the money by sitting at your home. You can do it by online and the agent will come to your home and will take the money from you and will also return it within the given time. It can be a suitable option for you as you don’t have to do anything for the exchanging the cash. But there also can be a problem as the matter is about your money, then you have to be a little careful and have to know about the broker and the agent, who will be the medium of transaction. If they are not reliable enough, then your money will not be safe enough. There is also the matter of the false currency as it has happened in the services like Australian Currency Exchange. So, be careful about every facet of exchanging your money so that you don’t have to waste your money in the wrong place.

Top 5 Benefits Annuities Can Bring Except The Lifetime Income

Earning a consistent income in their retirement life is a major concern for the seniors approaching their retirement and many of them invest in different annuity insurance plans. These annuities help the insured to receive a guaranteed income for life protects from the fear of outliving their savings. Also, if a senior couple hasn’t saved enough or doesn’t have someone to support after their retirement, these policies help greatly to take care of their daily expenses and maintain a better lifestyle. However, the majority of seniors isn’t aware of all the benefits an annuity can bring. Most of them buy an annuity solely to receive a guaranteed income in their retirement life but the annuities have a lot to offer. Here, we are going to explain five more benefits of a retirement annuity plan that you might not be knowing.

Benefit to your loved ones

At times, seniors pay a long series of premiums to earn them back during their retirement but die at an early age without receiving the complete benefits. Many seniors die soon after their retirement and insurance providers keep their share of investment with themselves. But, the new additional feature allows transferring the benefits to the beneficiaries, if the insured dies early. Along with the immediate annuity plan, you can choose a guaranteed period of 10-20 years that are calculated since the time you start receiving the payments. If you opt for a 20-year guaranteed period with the annuities, your insurer will provide a series of payments for exact 20 years. You can name your spouse or kids as the beneficiary and they will receive the benefits for rest of the period, in case you die early.

Tax deferral on earnings

Most of the investments are applicable for state and federal taxes, but the investments such as interests, annuities, dividends and capital gains earn a tax-deferred status. These investments are tax-free until you withdraw the accumulated amount. The tax-deferral is similar to 401(k)s and IRAs, but there isn’t any limit on the amount and you can put any amount into the annuities that you assume enough to spend your retirement comfortably. Moreover, the minimum withdrawal criteria have more flexibility than that of to 401(k)s and IRAs.

Tax-free investment transfers

Market performs differently at a different time and an investment performing strong today may perform poorly after a certain period. Hence, investors keep transferring their investment amount form one to another fund and there are financial advisors to help with the same. Usually, these investment transfers or rebalancing are applicable for taxes but the annuity retirement plan has no such tax consequences. That means, you can rebalance your investments as per your financial advisor’s suggestion and you won’t have to pay any taxes on that.

Protection from lenders

People take different types of loans to match a better lifestyle and pay the due amount in installments. At times, people reach a stage where they only have the money enough to take care of their fundamental requirements and aren’t able to pay the loan installments. In such cases, if the lender files a lawsuit, they may lose the return on the investments made. Annuities insurance policies also help protect your investment return even if you can’t make the installments. Usually, the premiums you have made to your insurance provider, belongs to them and there are laws that restrict that money to be accessed by the lenders.

Variety of investment options

Insurers help the investors with a range of annuity options at retirement including the fixed and variable one. The first one credits a certain rate of interest on the amount you deposit while with the later, your money is invested in the stock or bonds like mutual funds and provide a return based on the market performance. Also, various insurance providers have introduced different types of floors that set a limit by which your investment value may not fall further. That means, if you have invested in a variable annuity, you return won’t fall below a certain value, despite the fluctuations in the market.

Does Social Media Help In Getting An Auto Loan?

We live in a world dominated by technology and social media. Whether they are your shared posts, status or your connections, social media platforms play a key role in carving your virtual personality. A well-known fact is that technology is an inevitable yet an integral part of our lives. When it comes to financing your car, social media is building its way and becoming a relevant medium of profiling. For instance, John walked into a dealership to purchase and obtain financing for a car. The quickest and easiest way to search for a tentative background of John would be to get a grasp of his personality on the basis of his behavior on Facebook and Twitter account, respectively. Currently, a small percentage of lenders use social media for judging an individual’s creditworthiness. However, the developing presence of social media is gaining mind share of the lenders.

Can Social Media help in ascertaining the Creditworthiness of an individual?

1) Facebook can build your Credit Circle

The very essence of Facebook lies in networking. A creditworthy profile does not require millions of posts or many friends. However, if you have a genuine profile and do not pose any abnormal social behavior, your profile is likely to get approved for an auto loan. Additionally, the presence of certain contacts in your friend list with a clean history and a strong credit score further add to your creditworthiness. Lenders can look for mutual contacts that have been previous customers. The payment history of the mutual contact can then be used as a basis to judge your creditworthiness. In order to get the most out of your circle, seek a person with a good credit score and make him a cosigner and your auto loan process will become smooth.

2) With LinkedIn, lenders can check your Employment Stability

A stable employment speaks volumes about your personality and trustworthiness. LinkedIn can serve as the best source of obtaining information regarding your job history, duration, professional position and interests. The documentation of an auto loan requires you to display evidence of a source of income through pay stubs. However, there is less proof one can gather regarding the stability of employment. Social media can become a tool to ascertain not only if there is job-hopping, but also the financial strength of the individual. A person with a 500+ connections, long duration of employment history and a considerable profile activity can become a favorable applicant in the eyes of the lender.

Buying a Car: Making the Most of your Social Media Profile

Social media has made its way into the minds of auto buyers as well as lenders. As primary sources of guides, nothing comes above your credit score, current income status and payment history. However, virtual platforms such as Facebook and LinkedIn are starting to occupy mind share in terms of creditworthiness. Once the primary sources of information seem insufficient, lenders may turn to social media to get an idea of your personality. A few helpful ways to make sure your social media positively adds to your credit score is to be careful with your online posts, invite only genuine friends into your virtual circle and to always keep your professional profiles updated.

Beta – A Useful Tool in Our Stock and Option Investing

When we defined the Greeks in a previous article, it included a discussion of the price sensitivity of the option premium as it relates to the underlying equity, time and other factors. One of the rules was that (all other factors being equal) an increase in share volatility will increase an option premium. An equity with greater volatility will be associated with an option premium which generates greater profit but is also associated with higher risk.

One way to measure the volatility or systemic risk (market risk) of a security is to compare it to the market as a whole; the S&P 500 being the most commonly used benchmark. This is known as beta. This number is calculated using a process known as regression analysis wherein the “market” is assigned a number of “1″. Beta is the tendency of a stock’s returns to respond to changes in the market.
The Numbers:

– Beta of 1- the equity price will move in conjunction with the market. If the market is up 2%, so will the stock (be expected to).
– Beta of less than 1- the stock will be less volatile than the market. An example would be utility stocks
– Beta greater than 1- the security price will be more volatile than the market. An example would be tech stocks.

An example:

If a stock has a beta of 1.5, it is considered 50% more volatile than the S&P 500. If the market appreciates by 8%, the expected return of that equity, based on its beta, would be 12%. On the other hand, if the market declines by 8%, that equity would be expected to decline by 12%. There you have the two faces of enhanced volatility…greater potential returns with enhanced risk. If an equity had a beta of.5 and the market was up 8%, one would expect that security to appreciate by 4%.

Negative betas:

A stock with a negative beta tends to move in the opposite direction of the market. An equity with a beta of (-) 2 would decline by 10% if the market appreciated by 5%. It would increase by 10% if the market declined by 5%.

Problems with beta:

There is no such thing as a panacea in the stock market. This ratio does have its flaws and should not be relied upon solely in determining the risk of our investments. Here are the drawbacks:

– Beta does not account for business changes like a new line of products.
– Beta looks backward and history is not always an accurate predictor of future events.
– Beta ignores the price level of a stock.
– Beta makes the assumption that the volatility is equal in both directions.

The drawbacks are more significant for longer term investments. Beta can be extremely useful to us as 1-month covered call investors. For our purposes of selling 1-month call options, beta is a good measure of risk.

Implementing beta into our decision-making process:

High beta stocks will outperform the uptrending stock market and underperform the downtrending market. Low beta equities will underperform the uptrending market and outperform the downtrending market. In a bullish market, I lean towards high beta stocks and sell O-T-M strikes. In a bearish market, I favor low beta stocks and sell I-T-M strikes. In neutral markets, I “ladder” (use a mix) my beta stocks, in much the same way that I “ladder” my strikes.

Using Betas to Measure Risk

What does a beta really tell you about a stock?

A beta is a measure of the market risk of investing in a stock. It aids investors in picking stocks that meet their risk requirements.

But have you ever noticed that different Web sites often report different betas for the same stock? How does that work?

The beta is basically a score that measures a stock’s risk against the rest of the market. Betas are calculated using regression analysis. The market — usually the S&P 500 — is given a beta of 1. If the stock is more volatile than the market, the stock’s beta will be greater than 1. If it is less volatile than the market, the beta will be less than one.

For example, a stock with a beta of 0.4 would be expected to return 40% as much as the overall market. A stock with a beta of 1.5 would move 50% more than the overall market. However, there are more than one way to calculate betas. This is why there are different betas on different Web sites for the same stock. One of the variables in calculating betas is how far back you go with the calculation. Some calculations look at three years of data, while others look at five years.

What does the beta tell you? It doesn’t tell you if the beta will be more or less next year. The calculations look to the past, not to the future. It will not predict the future of the stock.

The beta tells you how the stock has historically reacted to market-wide or systemic conditions. However, you will not find any information in the beta in regards to the company’s strengths or weaknesses within its industry. For example, the beta will tell you how a stock will react compared to the whole market when a change in interest rates occurs. But it will not tell you anything about the effect of legislation on the importation of a product, which could have a strong impact on several businesses or one specific industry.

Betas are helpful in determining the likelihood of price swings, but are not indicative of the entire picture. Make sure that you find a financial source that you like and use it’s betas every time. This will ensure that you are comparing the same type of betas each time.

Finance Theory And Risk Management

In this final article on finance we’re going to review some finance theories. There are plenty of them to go around.

Finance theories themselves are the foundations for understanding the role of finance in markets. It is a way of measuring investment value and risk and return on investment. Some of the theories include foreign currency transactions, value at risk and portfolio theory, which is the basis of investment analysis. An example of investment analysis is the CAPM model.

CAPM stands for Capital Asset Pricing Model. This is fundamental to all finance theory. The CAPM model tries to explain the relationship between risk and return on investment. This risk includes both systematic and unsystematic risk.

Systematic risk is the risk factor common to the whole economy and the risk associated with investments in general. These are also non diversified risks, meaning they are invested in one area.

Unsystematic risk is the unique risk associated with a company such as bad management, strike or disaster and with diversification, can be eliminated or at least lessened.

Only systematic risk is compensated for in regard to the investor.

Here is the CAPM formula for you mathematicians out there.

re = rf + beta (rm – rf)

rf is the risk free rate. This is the rate that the investor gets for no risk. rm is the risk of the market as a whole in general. re is the expected return incorporating the risk free rate, market risk and beta value.

In the ideal world you want to maximize your re while minimizing the risk factor. Sometimes this is not always easy or possible. But this is what you shoot for.

Then there is the SML or Security Market Line.

How does this relate to the CAPM formula? Actually, the SML is a graphical representation of the CAPM. This tells us that if a security is priced accurately the expected return of the security will meet the security beta at the securities market line. However, if it falls below the line then that means the security is undervalued and overvalued if it falls above the line. In either case, adjustments have to be made.

All of this leads to the theory of risk management itself, which you could write several books on alone. However, we won’t attempt that here. Instead we’ll just do a brief overview of risk management.

Risk management is trying to identify, control and minimize the financial impact of events that cannot be predicted. By minimizing potential risk, a company can minimize the potential loss associated with that risk.

The ways that companies do this is through diversification of investments. A company might do any one of the following to diversify and reduce risk including long term forward contracts, currency swaps, cross hedging and currency diversification. By doing these things a company is placing it’s funds in various areas so that if one area is hit hard by something unforeseen the other areas should be unaffected. So whatever diversification is done should be done with careful planning to ensure the areas invested in do not overlap each other. This makes it highly unlikely that multiple areas are affected by one event.

Top Five Intra Day Trading Tips To Become A Better Trader

In words of Warren Buffet The stock market is a device for transferring money from the impatient to the patient. Let’s read between lines. The investor or trader who is impatient (frequent buy/sell strategy) transfers money to the patient (holding strategy).

Find below herewith five tips which should be followed by a day trader:

Take advice of professional trader

Before one starts day trading it is better to take advice from experienced and expert day trader trainer. Every trainer will have different teaching method and style. See for one who has good teaching method. He should also suit your trading style. They may be ready to teach in their free time. He may charge the fee. As he is spending his free time with you. But it is worth. You can assume that paid fee as an investment, which you need to get knowledge. They are the best share tip providers when you trade.

In future when you grow big, many newbies’s will come to get knowledge from you. At that time you can charge them likewise.

Gather information from financial news

One has to gather news from across the globe. Segregate relevant news, which affects your business. Analyze and set priority which news will most affect your business. Stay updated on news like meetings, change in government policies and rules. Local, national and international news should be followed.

M&A, financial results, entry/exit of members of BOD, etc. These types of related news of the company one have shares in, make sense.

Though the news does not impact a common man but may have an impact on your investment in the concerned company. This news helps to take a smarter decision, especially while trading shares. Through nifty future tips also one can gather information.

Treat trading as any other business

Take day-trading as any other business. It is not a hobby, but a serious business. It is not for fun that one is in day trading. Like any business, it needs devotion and dedication. Trading is a part. One has to devote a lot of time preparing a plan. Study different charts before coming to any conclusion. Follow news on TV, read business magazines, study reports etc. It is a full day activity.

Keep eye on professionals

One should study professionals. What they are buying, when they are selling. For how much time do they hold the script? Since they have experienced one can learn a lot by keeping eyes and ears open and mouth shut. If one makes mistakes, then analysis the mistake. What went wrong and where? You can find them in many share market advisory companies.

Patience

It needs time, energy and devotion to master the skills. As the old saying goes Rome was not built in a day It was destroyed and then rebuild. This process was repeated many times over. Even if one makes loss he has to get up again for a fight.

Traders do not profit all the time. Many a time they incur losses. So one has to be prepared for losses and have patience during the time of loss. Commodity tips are also helpful to know the market trends.

Today’s successful traders were also novice once in a while. They got success by their hard and smart work. They had put in their efforts, made mistakes, but kept up their learning process.

Day Trading Strategies With Beta

In stocks trading and Forex trading, a trader should be well verse with technical analysis as well as fundamental analysis and it is in these analysis that traders should look at Beta to manage their risk takings.

Beta is the measurement of risk in trade and investment. It measures the volatility of a stocks or mutual funds in relation to the entire market It is usually used as a tool to assess the risk in buying and selling of stocks. The total market has a Beta of 1. If stocks have a Beta of above 1, it means the stocks move more then the market overtime (stocks price will be more volatile then the market). If the stocks move less then the market (stocks price will be less volatile then the market), its Beta will be less then 1.

The importance of Beta is that it helps the investors and traders to make trading and investing decision. In stocks trading, stocks with higher Beta are far more risky but have a potential of giving higher returns while stocks on lower Beta are less risky and thus may face a lower returns.

Traders and investors could find utility stocks to have a Beta of less then 1 while high tech stocks and financial stocks to have Beta of greater then 1.

1. What is a finance Beta?
A finance Beta indicates the expected return of a stock that is correlated to the return of the overall market.

2. Where can traders or investors locate Beta?
Beta can be found easily in most stock brokerage sites, trading platform and trading system.

3. What does a zero Beta means?
A Beta of 0 means that its price is not at all correlated with the market.

4. What does a positive Beta means?
A positive Beta means that the stocks generally follow the market.

5. What does a Beta more then 1 means?
It means the stocks are highly volatile in correlation to the overall market.

6. What are the disadvantages of Beta?
Beta is poor indicators of what lies ahead as they reflect only what had happened. Thus, it is useful for short term trading and not for long term investing.

Traders could use the Beta readings to manage their risk in the trading system and their trading strategies. It is basically an important Risk Management Tools.

Lead You To The Authentic Zone Of Money Transfer

If you have an international business and you have to move to many countries for the purpose it is the urgent requirement to find a reliable and efficient money transfer service. Business with any other country will require a resourceful money transfer. This transfer should be fast efficient and safe. Your trade shouldn’t be forced by the variation in exchange rates either. For all these reasons, it is prudent to take the assistance of International money transfer Services available. It will be better to find the reputed and quality one on the internet. It is an internet era and you get different types of information on the internet.
Process Involved
This service helps you find a provider that you are comfortable with. After you decide on the money exchange provider you will need to complete some forms. Once you have established contact, you will be informed about the rules, terms and conditions involved with a deal. Finally, you will be asked to complete some forms to set up your account. You can fix a standard rate for your exchange as well. The whole process is hassle free and once you learn how to go about it, the upcoming transactions will be smooth, effortless and quick.
Exchange Rates
When you wish the inexpensive currency transfer to be done, you should be careful about the rate you choose. With large amount of money a little change can make a big variation for your commerce. When you transfer your money to a bank, they will transfer it at a great exchange rate that you are happy with on the day you have mentioned. Exchange rates promised may differ between agencies that are why you should be careful while choosing one.
Staying in the circle
Most good free currency transfer companies will make sure you are kept in the circle about where your money is. When the transaction is being made, you will be sent a verification message and sometimes even a message. You will be consulted before and after the deal, which assures that nothing can go wrong with the deal. This feature gives you more control over your money.
Expediency and safety
Foreign Exchange is a very expedient way of sending money across countries. When you choose a reliable company, along with good customer service, you will also safer transferring your money. This service is as useful for the common man as it is for businesses. Having an overseas exchange agent working for you is an immense way of saving money. In some websites, you get to check the exchanging rates promised before you sign in to transfer money. This makes it easy for you to select the best in the record.
Currency Exchange near me, this thought is quite wise and intelligent as there is lower risk for the safety of your cash. If you are in Adelaide, you can find a good currency exchange company that has a strong team for a powerful deal of money transaction. A reputed and trustworthy company always offers the better rates and a higher security.

The Benefits Of Trading The Commodity Market

Like trading in the Stock market, trading in the commodity market is also very interesting. While one trades on the basis of Stock Cash Tips in the stock market, the trader can trade on the basis of commodity tips in the commodity market. ProfitAim Research is one such advisory firm, which provide both the best Stock Cash tips as well as commodity tips to the traders.
Commodity market seems to be a lucrative avenue to a lot of traders and Investors. In the Commodity market various commodities are traded and one can take benefit of the price fluctuations to trade effectively in the commodity market. Various commodities are listed on the Commodity exchange and the relative prices of various commodities are traded on the exchange. There are various benefits of the Commodity trading like a trader can make huge profits by trying to forecast the Commodity signals. The most important part of the Commodity trading is to anticipate the Commodity trading signals.
Scalping: Intraday Trading Strategy For Commodity Market
One of the important benefits of the Commodity market is that the trader can form a strategy and trade on the basis of it. The Intraday strategies like First hour strategy or scalping techniques can be followed to earn good profits from the trades. Scalping is a technique to look at the price range during the first hour of trade and then look for a breakout from this range. Thus, if the prices break from the high it’s a buy call and a rise in the prices is anticipated. On the other hand, if a breakout from the lower limit of range is observed a down trend is anticipated. Thus, scalping is an important strategy in achieving good profits from the Commodity markets.
Also, there are other strategies available like trading for small profits. In this case small changes in the Commodity signals are generally traded for the profits. Also, a large number of trades are executed to add up to large profits, this will be applicable in Stock cash tips as well. The Commodity trading signals are unassuming but still with a proper plan and a proper strategy good profits can be made through Commodity markets. The trader can also base their trade based on the advice from the advisory firms who provide free Commodity signals initially and then charge a nominal amount for their services. Thus, the Commodity trading is beneficial if done with proper planning and strategy.
Trading based on the Charts
Trading in the stock or commodity market is an art difficult to master. People use various methods and strategies to trade in the stock markets. Trading based on the charts is one of the ways out of them. Various types of charts exist like Candle Stick charts and line charts. These charts can be plotted with varying time scale. The price movement depicted by chart can be an important way of forecasting future prices.
Thus, one can trade on the basis of charts and by applying suitable indicators of the technical analysis, one can anticipate the price movement. Trading on the basis of intraday Stock Cash Tips is the other way of trading.