The Moneymunch editorial staff is a team of experienced financial writers and analysts with over a decade of experience in the financial markets. They have previously contributed to popular financial blogs and newspapers, and are passionate about providing accurate and up-to-date information to help both investors and traders make informed decisions. Trust the Moneymunch editorial staff to provide reliable and effective financial advice that can help you achieve your financial goals.
This is the Second course in a series of 7 called ” Your financial goals”
Owning your own business is an Indian dream for many. But managing your own business takes a lot more than hard work. You need a financial plan — one that addresses financial needs and products for every stage of your business life cycle and that takes into account your personal financial goals and dreams.
Tax strategies
As your goals and financial situation change over time, so will the strategies for managing your taxable income. A financial advisor can help you keep your financial plan aligned with your current needs.
Retirement plans and employee benefits
Offering competitive benefits are often the key to attracting and retaining good employees. As a business owner, you’ll want to develop a benefits strategy that fits your and your employees’ needs. This may include workplace financial planning.
Business valuation
A financial advisor can help you assess the value of your business and integrate that information with your personal financial situation. This will give you the comprehensive view you need to plan for a successful future.
Business succession planning
Someday you may want to sell your business or pass it on to a family member, employee or another organization. We can help you develop a detailed succession plan that meets your business and personal needs.
Business insurance and protection
We can help you develop an insurance and protection plan in the event of a disruption, such as the departure or disability of an owner or key employee.
Message for you(Trader/Investor): Google has the answers to most all of your questions, after exploring Google if you still have thoughts or questions my Email is open 24/7. Each week you will receive your Course Materials. You can print it and highlight for your life Goal.
Your financial goals ( 7 Days – Comprehensive Course)
This Completes the List of Courses.
Wishing you a wonderful learning experience and the continued desire to grow your knowledge. Education is an essential part of living wisely and the Experiences of life, I hope you make it fun.
Learning how to profit in the Stock Market requires time and unfortunately mistakes which are called losses. Why not be profitable while you are learning?
Earlier this year, Goldman Sachs’ Peter Oppenheimer said that compared to bonds, US stocks were the cheapest in 50 years.
If Peter is correct, that could be good news for your gold stocks, because there is an ongoing correlation between the Dow and most gold equities.
Unfortunately, Goldman also believes that the fiscal cliff situation could drive stock markets 8% lower by year-end.
You are looking at the daily chart for the Dow, and you can see that it made a small top in mid-September. It has declined about 8% from the high.
Gold stocks are more volatile than the Dow. GDX declined about 18%, during the period in which the Dow fell 8%. There is a lot of symmetry between these two charts.
If the Dow is set to fall another 8% from the lows of last week, GDX could fall another 18% from its recent lows. That would put GDX at about $37, and below the May-July lows.
Some of the largest gold companies are already trading near their summer lows, which is somewhat alarming.
If you own a home, it is wise to purchase home insurance. If you own gold stocks, carrying some cash and short positions is a form of insurance. That’s the daily chart of DUST, which is effectively a triple-leveraged bet against GDX. The performance is calculated on a daily basis. I’m a buyer, moderately, in the $28 and $22 areas.
What would happen to gold stocks, if Goldman Sachs is correct about the Dow falling another 8%, and then they called for an even harder fall, instead of a rally?
The situation could get quite ugly. A small position in DUST may help gold stocks investors to professionally manage fiscal cliff fear.
Gold recently sold off along with the other so-called “risk on” markets, but it bottomed quickly. The daily chart shows a nice head and shoulders bottom pattern in play.
The daily gold chart looks superb. The H & S pattern sits near the demand line of a beautiful rising channel.
HSR (horizontal support & resistance) at $1758 is the initial upside target, and then $1800. A “price pop” to the $1825 price zone could be a game changer for gold stocks.
Silver looks even better than gold. Yesterday’s price action was important, because it took silver above the neckline of a head and shoulders bottom.
At this point in time, gold has yet to rise above its neckline, so silver is clearly the leader.
Silver seems eager to race to $35.50, and if gold can rise above $1800, that could catapult silver into the $40 range.
There’s more good news. Ben Bernanke makes a speech in New York today, and he may give more hints about ramping up QE3. Currently, QE3 is being “diluted”, because the Fed is selling short term Treasuries.
There are rumours that the Fed may cut back on that practice, or even halt it, before the end of the year. If “Big Ben” speaks boldly about ending the dilution of QE3, gold and silver could spike higher, very quickly.
Most investors in the gold community like speculative resource stocks. If you are looking for action, my favourite play right now is the “Global X Gold Explorers” fund.
At about $8 a share, the GLDX ETF is something that is probably priced “just right”, for action-oriented investors. In contrast, GDXJ is trading at about $22.
It’s a lot easier to look down from $8, than it is from $22. Aggressive investors should considering accumulating GLDX on every 25 cent decline, inside the highlighted $7-$9.75 “price box”.
I like both GDXJ and GLDX, but there’s no question that GLDX is a lot easier to handle, emotionally.
A move above $1800 in gold could be the catalyst that takes GLDX above $10. From there, the target would be $13, which is about 50% higher than today’s price!
This is the first course in a series of 7 called “Your financial goals“
Saving for education
Are you planning to help your children or grandchildren with their education expenses? Or thinking of taking classes yourself? There are many options to help you achieve this goal.
Determine your education needs
You can begin to create a college savings plan by defining your education needs and preferences:
Would you prefer a private or a public school?
What will it cost? How much is too much? Make sure you take college inflation rates into account.
How long will it take, or how long do you have, to save?
The cost of college education
College costs increase at about twice the rate of inflation, from 5% to 8% per year. And these costs are already steep. According to google.com search over the India, the average tuition and fees for 2011 – 2012 for students are:
Type of college or university
Cost per year**
Two-year public college in state
Rs. 1,50,000
Four-year public college/university in state
Rs. 4,00,000
Four-year public college/university out of state
Rs. 8,00,000 or more
Four-year private college/university
Rs. 15,00,000
**In addition, you may have to pay for room and board. In 2011 – 2012, average room and board costs for a public four-year college or university full time is Rs. 4,44,350
Several other factors may also affect the cost of an education:
Student’s age
Academic record
Financial aid opportunities
Scholarships available
Degree goal
Housing costs (on- or off-campus)
Military service
Common college saving plan options
Accounts allow you to make an irrevocable gift to a minor to an account that your child ultimately controls when he or she turns 18 or 21 (depending on state law). He or she will be able to use the funds for education and other expenses.
College savings plans are generally sponsored by states, state agencies or educational institutions for college tuition and expenses. These investment plans stay under your control and offer certain tax and contribution advantages.
Education Savings Account (ESA) You can contribute to this investment account until children turn 18 unless the child is a special needs beneficiary. This type of account can be used for elementary, secondary and college expenses and tuition. It includes tax benefits but has a maximum contribution limit of (Find as per you state rules) per year.
Traditional/Roth IRAs. Penalty-free distributions are allowed from IRAs for eligible educational expenses for you, your children and your grandchildren. (Income taxes may apply to IRA and Roth IRA withdrawals). IRAs are not counted as assets for financial aid calculations, but withdrawals are considered financial aid income for parents.
Other options. In addition to savings, current income and borrowing, there are other ways to finance higher education:
Financial aid from federal and state governments
Work-study programs or a part-time job for the student
Loans from private, federal and college sources
Scholarships and grants from different sources
Family gifts
Borrowing from your retirement account to pay for education expenses
Borrowing from your home equity or retirement account — or reducing your retirement savings contributions to help pay for college — is an option. However, doing so could mean you’ll need to work longer than you planned before retiring. Encouraging your child to take out a loan for college, such as a Stafford loan, may mean that he or she will graduate with some debt. But remember that he or she will also have a much longer period of time to pay off the loan.
Other financial considerations for a college savings plan
As you explore college financing options and determine which program, or combination of programs, will best meet your needs, you may wish to talk to a financial advisor to guide you through the finer points such as:
How does saving for education fit into your financial life? How can you resolve competing needs to save for retirement and a child’s education?
What calculations are used by institutions in determining financial need?
How will a college savings plan affect your taxes, financial aid eligibility and tax credits?
What investment options do you have based on your risk tolerance and when the funds will be needed?
Which currently held funds are accessible and what are the penalties for early withdrawal?
(Note: As Per Indian, you search in google to get perfect plan while you are studying)
Message for you(Trader/Investor): Google has the answers to most all of your questions, after exploring Google if you still have thoughts or questions my Email is open 24/7. Each week you will receive your Course Materials. You can print it and highlight for your life Goal.
Your financial goals (7 Days – Comprehensive Course)
College education
Business ownership
Investment planning
Estate planning
Insurance
Long-term health care
Charitable giving
This Completes the List of Courses.
Wishing you a wonderful learning experience and the continued desire to grow your knowledge. Education is an essential part of living wisely and the Experiences of life, I hope you make it fun.
Learning how to profit in the Stock Market requires time and unfortunately mistakes which are called losses. Why not be profitable while you are learning?
The purpose that I had in mind when I began this blog in 2010, was to give investors some insight into how the markets worked. Several blogs gave readers basic investing guidelines that were tried and true, and which stood the test of time. In my readings this week, I came across some writing from Gatis Roze, who was repeating the wisdom of Jesse Livermore, a legendary person in the markets. Some of the comments pertained to methods of trading, but some were also pertinent for value investors. I will quote extracts from that writing herein. The following is valuable and mirrors my commentary.
The Most Important Rule is Patience
If you are a trader, you are competing against modern technology that measures trades in milliseconds, rather than seconds. Some say that 80% of all trades are from computerized trading programs, that operate faster than any human could ever trade. Without massive expenditures on technology, day trading is a losing game.
Trend trading, which essentially is trying to find and interpret trends, and then follow them, is alive and well, but again computerized trading is usually better and faster at this than mere humans.
Value Investing
That leaves the good old value investing. In the long run, finding value, buying that value and sticking with that value, provides a good profit over time. In finding value, it is essential to realize that not every pick will be the right one. Factors that are unknown to you, or changes in the environment of that stock over time, will cause the loss of value that you cannot predict. Spreading the risk, mitigates this problem. I don’t believe in diversification in sectors as a basic tool. This simply ensures that profits in one sector will be offset by losses in another.
Spreading the risk means having a large enough number of value stocks in your portfolio, to ensure that the occasional loser will be offset by a number of winners.
But the very basic rule of investing, is to have patience. Ignore the screaming headlines, the stock market pundits, the media that has to fill the screens to sell advertising. Have patience with good value.
Some excepts from that blog follow:
The Secrets I Learned from Jesse Livermore Posted: 2012-10-19
When seasoned traders get together, we have a sort of “secret handshake” that the uninitiated may not notice. We ask each other if they’ve read “Reminiscences of a Stock Operator”. The insiders reply by telling you the number of times they’ve read the book. Novices ask for the author’s name.
Money Management:
* “I trade on my own information and follow my own methods.”
Business of Investing:
* “I believe that anyone who is intelligent, conscientious, and willing to put in the necessary time can be successful on Wall Street. As long as they realize the market is a business like any other business, they have a good chance to prosper.”
* “It cost me millions to learn that another dangerous enemy to a trader is his susceptibility to the urgings of a magnetic personality when plausibly expressed by a brilliant mind.” (In simple terms, IGNORE THE PUNDITS. If they know so much, why ain’t they rich?
Buying (Averaging Down):
* “It is foolhardy to make a second trade, if your first trade shows you a loss. Never average losses. Let this thought be written indelibly upon your mind.”
Monitoring (Patience):
* “After spending many years in Wall Street and after making and losing millions of dollars, I want to tell you this: It never was my thinking that made the big money for me. It was always my sitting. Got that? My sitting tight!”
Selling (Get Rid of Losers):
* “Losing money is the least of my troubles. A loss never troubles me after I take it. I forget it overnight. But being wrong – not taking the loss – that is what does the damage to the pocket book and to the soul.”
Trade well; trade with discipline!
– Gatis Roze
How to Make Money in the Stock Market
Repeating these basic rules in simple terms follows. Violating these rules makes losing money in the stock market more probable than making money in the stock market. Remember that for every winning trade, someone has a losing trade. The trick is to tilt the odds as far as you can in your favor, to put the odds on your side.
Rules of Investing
First, buy value stocks; stocks that make sense to you; stocks that are not the hot ones of today, but the long term excellent assets.
Next, ignore the media; ignore the hype; ignore the screaming headlines. If you want to prove this point, try and remember the last time you heard a commentator admit to picking a losing stock. To listen to them, they have never picked a losing stock.
Next, diversify. Forget about sectors. Diversify by picking a bunch of value stocks and never put too much into any one stock.
Next, have patience. You will always have a loser or two. But quality will win in the long run.
Next, judge your stocks. When a pick goes bad, get rid of it. Losers usually stay losers. Redeploy your capital elsewhere.
Next, never ride a stock to the moon. When you have a good profit, move on, with at least some of your profits.
Next, never, ever, average down. A loser is a loser. Doubling your losses is never a wise policy.
Lastly, we believe in the juniors for the most part, and we believe in resources. A winner in the junior resource sector can be a 10 bagger or a 20 bagger. That compensates for a lot of losers.
Summary
Smart investors always make money. Here are some simple rules to follow that are tried and true. They worked well last year, 50 years age, and will work well in 50 years.
No matter where you are in life, contributing to your employer’s retirement saving plan may be an investment in your future.