Financial Planning Online

August 1st, 2014 | La Grand 1520 Financial | No Comments »

Well do you need Financial Planning? In this article, I will show you how you can answer this question.

Immediately after we complete our college education, we automatically participate in a race call rat race.

Everyone started the race with a cart. In this cart, we’ve personal bills, loans and our allowance. As we’re single, everything is good and manageable. We can spend what we earn without worry.

Then we meet our partners and get married. Thus we begin our next chapter in life. Our cart becomes heavier and we now worry about our spouse’s bills and loans and kids allowance. Some of us must support our parents too. We may even need to bring our family to vocation. As we grow older, our carts get heavier and heavier. Do you have enough savings to meet these expenses?

As we know, life is never a straight and smooth path. We will encounter obstacles. Some of these obstacles may set us back in terms of our financial standing . If we do encounter a big obstacle (e. g. critical illness, operation, surgery, business failure) and need a huge sum of money to recover, Do you have enough money to meet this expense? What if the big obstacle results in us being permanently bed-ridden or out of work for a long time, what’s going to happen to our cart? Do you have enough money to support yourself and family if that happens?

Several may say, well we’ve friends and relatives to turn to for help. But our friends and family have their own carts to pull too. If they help push our cart, whoever is going to push theirs?

We will all retire from work eventually. From then on till we all rest in peace, we do not have regular income but our life must still go on. We still need to pay our bills and we still need to eat. Do you have enough money to support yourself during retirement?

At old age, our body is no longer working as well as they used to. Our health conditions deteriorate, as we get older. We will need to seek medical help frequently. We may even need to employ a person to take good care of us. Do you have enough money to spend on these medical expenses?

So do you need Financial Planning? If you answer ‘Yes’ to all the above questions, then you’re safe and need not worry about Financial Planning. Otherwise, I suggest you start thinking about it.

Guest Speaker: Jason Payne, Personal Financial Planner and Friend Objective: 1. Understand careers in financial planning.

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Financial Independence

July 31st, 2014 | La Grand 1520 Financial | No Comments »

The innovative spending idea for the Gen-next is a Student Credit Card. Popularly knows as cards or the Plastic money these open a gateway to financial freedom to the contemporary youth. On one hand student credit card also provide an opportunity to an adolescent to start building up his credit profile but on the other hand these are known to generate a vicious circle of debts and money short falls.

Various companies and banks offer lucrative schemes to lure students to opt for credit cards. These offers vary as low interest rates; cash back rewards, no annual fees, etc.

Various credit card companies have specifically launched student credit card towards the adolescent and youth. This card offers a bonus towards financial freedom and an opportunity to live independently away from the parents. Many parents also open bank accounts and also provide supplementary card to their kids to offer independence of expenditure. Most of the student credit cards require parents consent to offer a credit limit.

Student credit cards provide low credit limit as the students mostly do not have credit ratings plus credit companies often suffer non-payment and bad debts problems with students. Due to high non-paying student population mostly the interest rates are high on student credit cards. Student credit cards also offer various schemes to lure students towards more expenditure. Some cards offer cash-back offers at purchases from supermarkets, drugstores and gas stations. These cards also do not attract any annual fees on these cards. Free online account access and bill pay facility are other attractions attached to student credit cards.

A Student Credit Card offers the opportunity to enjoy the benefits of financial freedom by having credit. It also teaches the value and responsibilities that go along with those freedoms and credit limits. This venture is although a risky option from the service providers like banks and financial institutions, but it also is the first step towards building good credit rating. It is also first step towards learning to use your credit ratings and credit limits wisely.

In some cases many students are unable to take advantage of the benefits offered by the banks or financial institutions because they carry a balance on their credit card from mo to month, paying finance charges that can go up to a whopping 23 percent. Many find it hard to resist using the old ‘plastic’ for impulse purchases or buying things they really cannot afford.

Student credit cards also offer various benefits to the students. Most of the student credit cards offer 0% introductory APR for first 6 months. These student credit cards also offer 0% liability to any unauthorized charges to the card that means if someone else uses the card there is no liability to the card holder. Usually student credit cards do not attract any annual fees moreover they also provide free online account management also.

Most of the student credit cards also carry reward point programs. The points earned for every purchase made can be redeemed for the gifts specified by the card company. Platinum student credit cards offered by some banks do not require any minimum income or co-signor for the card. Some student credit cards are exclusively designed for students enrolled at an accredited four-year college or university. These cards are universal entertainment student credit cards which not only have 0% APR for first 6 months for any purchases or cash advances but they also have no annual fees as well. These student credit cards carry reward point programs. The points can be redeemed for free CDs, DVDs, Movie Tickets, and much more. These student credit cards also offer free movie ticket with the card.

Other attractions with the student cards are for earning extra reward point for every dollar spent at restaurants, bookstores, record stores, movie theaters and video rentals stores. These points can be redeemed for gift cards, MTV events, and airline tickets, etc.

Jim Rohn talks about Financial Independence.

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Get Stock Quotes

July 31st, 2014 | La Grand 1520 Financial | No Comments »

Stock quotes are always in flux. The price of a stock is changing because it underlies the laws of supply and demand. Imagine that the price of a stock on the stock exchange always reflects the value of the underlying company in the far or near future and not the current value, then you will understand that the stock price has to change in the present all time. People’s belief about the company’s future value drives the stock pricing.

Stock quotes are made by the market makers. It’s their job to make the market in a stock and therefore they have to post a current bid and ask price at all times during market hours.

The bid price is the price where the market maker will buy from you. The ask price is the price where he sells to you. You must always buy the higher ask and can only sell to the lower bid price. The difference is called the spread and it is the income of the market maker.

If you put yourself in the role of the market maker then you will understand how it works. He has to buy or sell from you even when he has nobody else to trade with. That’s his job but it has big risks. The only way to control this risk is to control the spread.

That’s why stock quotes are changing as well because the spread changes. The spread will widen for instance when there is very low share volume or when the stock moves very fast. Both situations inherit higher risk for the market maker, therefore the higher spread. On the other side a slow market will narrow the spread. Also when a lot of buyers and sellers lining up the risk is reduced and the spread goes down. The spread can be several points or dollars in the worst case but in the well known big stocks it is only a few cents.

Normally a stock is just a portion of the company and therefore should reflect the value of the company and nothing else. In the very long term this is maybe true but short and mid term there are too many things that influence the perceived value. The stock quotes can change several points or percent within hours although nothing new had happened to the company itself but certain factors were interpreted to have effect now or later.

If the overall market is positive for instance, then your stock is likely to go up too because people believe it will. The stock price can go down dramatically in one day although the company reported good earnings the very same day. Just because there were bad general or sector news. The market went down and took your stock with it.

Don’t make the mistake to believe that you can predict share prices. Nobody can even predict the price for the next five seconds. Successful traders don’t try to control the stock quotes but take the whole environment and its possible impacts into consideration.

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