Every business owner wants to be successful. Properly managing your business and finances is a key to business success. For massive growth and higher productivity, your business should be well-organized.
Check out the top ways that can transform your office into an efficient workplace:
A mutual fund house selects many stocks from different sectors and creates a balanced portfolio. This diversification helps mitigating risk, but it also polarizes your funds. Once a sector gets hit, the total fund value comes down. You cannot choose to shift away from these stocks and have to wait till it gets better. It is always wise to select a bunch of stocks yourself and bet regularly. There are more than, 7000 stocks in BSE & NSE combined. It is like searching a drop in an ocean, tedious but possible. There are several factors on which a stock is screened before qualifying it as a potential multibagger. Given the technological tools we have today, it is a lot easier than it was a decade back. Before searching for a multibagger we must first decide on our risk capacity.
Ask yourself two questions:
How much can I save from my monthly income?
How much can I save from my monthly expenses?
Spend more time on the second question. Make no mistake, I am not asking you to decrease expenses. Just add a little more to your expense each and every time you spend. In other words, tax yourself. Transfer a percentage of the total expense to your trading account (call it an iTax, myTax or whatever you wish) but do it for every transaction you do. It might sound crazy, but believe me, it works wonders! You can either invest this taxed amount in certain stocks or use it as a risk manager when your stock trades lower than previous highs.
Now let’s search for the drop. Our ocean is made of different sectors and all these sectors are dependent on each other in one-way or other. There is no fool-proof way to find an ever bullish sector. Instead, find a visible problem the world is facing today and the sector which is directly related to solving the problem. For example, pollution is an alarming issue throughout the world, and it is only getting worse day by day. Many governments have already started taking steps to control pollution in every possible way. Hence, we can find a stock which deals with pollution control. On the same lines is cybersecurity. Every business is online and all need to be safe. Companies which offer cybersecurity are going to be in demand, hopefully, in the near future. Next challenge will be to square in on a stock in this sector. That is where fundamentals of a company come in handy. Look at few important factors like Market Cap, Book value, P/E vs Industry P/E and Dividend yield. Check the financial trend of the company. Many growing companies report negative net profit but their net sales might still be increasing which is a positive sign. Above all, this is the credibility of promoter group; make sure you have read their activities in the market.
“Disciplined investors built their own empire, others just made money”
Stock markets are for the rich, who can throw their money at anything and wait for a bigger fortune. This is the biggest myth I have ever heard, and also the most common myth among retail investors. In the hindsight, this is the only place where millionaires are made from nowhere. All you need to do is to follow few strategies and stick to a discipline. Among many investment strategies in the stock market, Systematic Investment Plan (SIP) stands out to be the least complicated one. Investing in SIP is like learning to swim. The earlier you invest, the greater your returns in the long run. There are two ways to invest in SIP. Either you choose a mutual fund available in the market or you can choose few stocks yourself and keep investing. It is like paying Pre-EMI. When you buy something and pay EMI, you are actually paying an interest to the bank, thereby increasing the cost of the product you bought. The bank decides the interest and the EMI. Longer the duration, higher is the interest. You cannot skip an EMI and have to pay it on the specified date. If you wish to… close in-between, you will have to pay a penalty. The interest rate fluctuates depending on the market condition.
No matter where you are in life, contributing to your employer’s retirement saving plan may be an investment in your future.
So, where are you on the road to retirement planning?
These snapshots reflect the challenges and opportunities you could face at each stage of your life as you prepare for retirement:
You’re a grown up now and on your own. Enjoy this time of your life, but realize that the future will begin coming at you sooner than you think – like tomorrow. You’d be wise to plan for it today by opening a bank savings account or signing up for your employer’s retirement savings plan. After all, the more time you have, the more you can invest and the longer your investment has the potential to grow.
Remember when you started out on your own and vowed to save more money? How’s that going? Many things in your life keep you from investing more: credit card debt, vacations, cars, maybe starting a family. The spending list is endless, but the time you have to invest for retirement isn’t. If you haven’t already, investigate your employer’s 401k or similar retirement savings plan.
Now’s probably the busiest time in your life. You may be managing a career and family – and list of things keeping you from investing more for your retirement has only grown in the last few years. Although time is still on our side, you have 15 or more years before retirement. It’s time to seriously focus on retirement planning. If you’re saving for retirement through your employer’s 401k plan, your investment portfolio has the opportunity to grow tax-deferred for some two decades.
No one wants to have to work during their retirement. But time is starting to work against you. If you’re not currently investing for your retirement, it’s time to get busy with an action plan.
If you are not currently investing for your retirement, it’s time to get serious. You may need to make a lifestyle change now or you’ll be experiencing a much different lifestyle in retirement than you expected.
You may have a good start on your retirement investments, but it’s time to hone in of what lies just over the near horizon.
Keep in mind assets withdrawn from a qualified plan may be subject to a 10% penalty tax if withdrawn prior to age 591/2, and all may be subject to income tax.
Now that you’re thinking about your retirement future and what you should consider at each stage in life, remember that you don’t have to be a financial expert to take action. You don’t even have to do it by yourself.