September 18th, 2014 | La Grand 1520 Financial |
While quite a bit of time and research goes into selecting stocks, it is often hard to know when to pull out – especially for first time investors. The good news is that if you have chosen your stocks carefully, you will not need to pull out for a very long time, such as when you are ready to retire. But there are specific instances when you will need to sell your stocks before you have reached your financial goals.
You may think that the time to sell is when the stock value is about to drop – and you may even be advised by your broker to do this. But this is not necessarily the right course of action.
Stocks go up and down all the time, depending on the economy…and of course the economy depends on the stock market as well. This is why it is so hard to determine whether you should sell your stock or not. Stocks go down, but they also tend to go back up.
You have to do more research, and you have to keep up with the stability of the companies that you invest in. Changes in corporations have a profound impact on the value of the stock. For instance, a new CEO can affect the value of stock. A plummet in the industry can affect a stock. Many things – all combined – affect the value of stock. But there are really only three good reasons to sell a stock.
The first reason is having reached your financial goals. Once you’ve reached retirement, you may wish to sell your stocks and put your money in safer financial vehicles, such as a savings account.
This is a common practice for those who have invested for the purpose of financing their retirement. The second reason to sell a stock is if there are major changes in the business you are investing in that cause, or will cause, the value of the stock to drop, with little or no possibility of the value rising again. Ideally, you would sell your stock in this situation before the value starts to drop.
If the value of the stock spikes, this is the third reason you may want to sell. If your stock is valued at $100 per share today, but drastically rises to $200 per share next week, it is a great time to sell – especially if the outlook is that the value will drop back down to $100 per share soon. You would sell when the stock was worth $200 per share.
As a beginner, you definitely want to consult with a broker or a financial advisor before buying or selling stocks. They will work with you to help you make the right decisions to reach your financial goals.
Introduce yourself to the basics of stocks—from learning what they are and how to evaluate them, to identifying when to buy and sell them. Experience Premier Investing Education:
September 16th, 2014 | La Grand 1520 Financial |
The cash crunch raises its ugly head in all our lives. Any individual who has been working and earning his monthly income will have faced debts at some point of time in his life. This is because there are so many expenses that we don’t anticipate that crop up out of the blue and throw us off balance. All that we might have planned out now has to be changed. As a result, we have to keep making more changes to the same. Many of us have to resort to the age-old method of securing loans so that we can get through the financial crunch. Sometimes meeting loan installments becomes very difficult. Thus, many of us find that we are ill-equipped to handle these debt burdens. At such times, it is a good idea to consult a professional in the field.
One can go in for some debt consolidation plan as well. Debt consolidation basically involves compiling all debts into one single payment plan. This helps one to plan out one’s finances in order to be able to settle the debts at a fast pace. What this does is that it makes the person answerable to only one creditor while also lowering the monthly payments that the borrower has been trying to meet. Once the person in debt has decided to go in for debt consolidation, he will be required to divulge all his finance related data to the advisor so that together they can sort out the mess and discover a way out of one’s money woes. This also gives one’s creditors the hope that one is making a sincere attempt to clear the loan. As a result, the creditors also stop pushing further and give the borrower some breathing space. Debt consolidation can be carried out at any level to deal with any amount of debt. However, one must follow the strategy that the financial advisor has mapped out. Deviating unnecessarily may once again place one in the debt trap from which one was trying to escape
The one downfall of having debts is that you fall into the category of people with bad debts. Hence, this will adversely affect your credit scores. However, if you are able to meet all the payments and successfully manage your finances, you will be able to get back on your feet and rebuild your credit ranking. Being in debt causes stress to most people, but with a sensible financial plan, anyone will be able to find a way out of financial troubles. If one has a financial plan in place, panic will not set in. In many cases, debt consolidation loans take the form of secured loans where a house or property is given as collateral. Thus, the borrower needs to make sure that his asset is safe. He can guarantee this by making payments regularly without defaulting. If the borrower is not able to make the payments, then it would be smart to talk to the lender directly to come to a conclusion on how to close the loan and clear the existing debts. Anyone can become debt-free if he only does some financial planning.
Learn what financial planing is and why it is important.
September 14th, 2014 | La Grand 1520 Financial |
A debt management company has the prhyme purpose to help debt laden individuals or business find their way out of debt. Rather than just extend more credit to the consumer; however, the company instead offers services that enables the consumer to consolidate all outstanding debts into a single, more comfortable payment amount that can be easily managed in installments.
Debt management and consolidation opportunities are well suited options for businesses that find themselves on the verge of filing bankruptcy. A common ratio that is seen as the warning point is when more than 40% of the after-tax income is being used to repay debts. Anything above the 40% mark is often seen as unmanageable.
Professional debt management companies have experienced counselors who are trained to take a good, hard look at your income, your expenses, and your spending habits and advise you as to what needs to be done. They are also able to negotiate with your creditors in order to arrange for additional items on your behalf such as lower interest rates, longer repayment periods, etc. Your credit counselor will even talk go the unpleasant and often rude representatives of any collection agents that may have been hassling you. This, in and of itself, is a blessing.
When selecting a debt management company, keep in mind that there are several different types. Some are for-profit and others are not-for-profit. The for-profit organizations charge a somewhat heft fee but almost always provide excellent, high quality services. Not-for-profit agencies often are paid through government funding and grants and therefore may be overworked and backlogged. Selecting a firm of either type should be a major decision for you and you should do some research to find the best possible alternative to assist you in your situation. One thing to look at when selecting an agency is how often they pay the creditors on your behalf. If they pay weekly or frequently you will get lower interest rates and no late fees. If they don’t pay out regularly, there may be some financial instability or a lack of reserve funds. These are big warning signs to you as a consumer and you should probably put your trust and monies elsewhere.
Beyond hiring an agency, however, there are some simple do it yourself debt management solutions you can try. Here are some suggestions:
- First of all find a way to manage credit card debt. For example, replace your credit card with a debit card. By limiting your spending to money you have in hand (or bank) you alleviate the interest rate which equates to money in your pocket. Most consumer debt is acquired through the use of credit cards. If you are uncertain about a debit card, trade the credit card in for the old fashioned and very hard earned cash. If you don’t see yourself losing the credit card or gaining the debit card, you should, at the very least, find the lowest interest rate card you can and transfer your balances over.
- Additionally, if you own a home, consider taking out a home equity loan to pay off the debts. Generally any interest rate a home equity loan would have would be much less than the interest rate on a credit card and thus it is again, a way to ultimately save money. Keep in mind, however, that if you continue with the wreckless spending habits, the home is now collateral on the loan and you could wind up losing it if you default on the loan.
- Consider whether or not you should consolidate debt. Taking out a debt consolidation loan to move all your debts into one loan and minimize your exposure and payments. The interest will be less on the consolidation loan than the cumulative amount it would be between the other debts which would result in a significant savings to you over time.
- Consider selling items you no longer use or need. Extra income generated through any types of sales could be placed toward your outstanding debts.
Any of these debt management solutions will help make a difference in a personal or small business financial plan and will assist in making you debt free and worry free before you know it.
Call Now: (213) 388-8400 3255 Wilshire Boulevard, Suite 1600 Los Angeles, California 90010 Ed@mofradfinancial. Com.