Oil Prices Fall As Production Freeze Expectation Fades

Oil Prices Dropped – Oversupply/Decline Expectation of Production Freeze

Oil prices had dropped on Thursday while market concentrated on oversupply and declining expectation of a production freeze. Global crude oil benchmark Brent had been down by 10 cents at $48.95 per barrel by 1230 GMT after closing down at 1.8% on Wednesday and U.S. light crude oil fell by 15 cents at $46.62 a barrel, after slipping by 2.8% on Wednesday.

In the first three weeks of August the oil prices had increased over 20% on talk of a probable deal by oil exporters to freeze production levels in an attempt to support prices. On September 26-28, members of the Organization of the Petroleum Exporting Countries would be meeting on the side-lines of the International Energy Forum, with groups and consumers in Algeria.

There are rumours that the meeting would agree to some kind of output curbs when similar attempts for production freeze had failed in April. Expectations however of a deal have been restrained by the record of OPEC output where some analysts envisage the vision of voluntary restrictions. Senior oil analyst at Commerzbank in Frankfurt, Carsten Fritsch, states that speculators pressed the price up expecting an output freeze that is doubtful to take place and perceives downside risk if the expectations are being scaled back.

Effects Minimal on Physical Market

U.S. investment bank Jefferies approved informing clients recently that even if a freeze had been agreed, the effects would seem to be minimal on the physical market. It was mentioned in a report that they did not expect a production freeze, let alone a production cut from the OPEC meeting.

With the output reaching almost record levels from several of the top producers and the demand unsteady, there seems to be little vision to the end of the surplus which had pulled down the prices of crude from more than $100 per barrel in 2014 to their present sub-$50 stages.

High storage levels too seemed to be weighing on the market. Commercial crude oil stocks, in the United States had increased by 2.5 million barrels to 523.6 million barrels, higher by 16% than a year ago.

Stocks across the world, with regards to refined products also brimmed as the demand slowed while refinery output seemed to stay high. BNP Paribas has commented that `ample inventories were due to weaker demand in Asia though more generally were driven by excess supply generated by refiners maximising runs, notably to produce gasoline in the U.S.’.

China’s Indirect Demand of Oil Dropped

According to Reuters’ calculations utilising official data, the indirect demand of oil of China had dropped by 0.3% from a year earlier to 10.58 million barrels a day in July.

After Saudi Energy Minister Khalid Al-Falih had informed Reuters that oil had paired some gains, he was of the belief that any substantial oil market intervention would be essential as the demand for crude would be picking up well around the world. He informs that there has been no discussion of substance still on the production levels of OPEC.

His comments strengthened the belief of several market participants which the September meeting would not resort to any production curbs particularly with the recent data portraying the Saudis and fellow OPEC member Iran were driving as much as they could.

Do You Own the 10 Best Dividend Stocks?

Last week Barron's came out with an article that identified what it says are '10 companies with above-market (dividend) yields, below-market price/earning ratios' and other favorable characteristics that 'could reward shareholders in multiple ways in coming years.'  The stocks they identified, in order of highest current dividend yield (4.3%) to lowest (2.4%) were:

• Verizon Communications (VZ)
• MetLife (MET)
• AbbVie (ABBV)
• Dow Chemical (DOW)
• Qualcomm (QCOM)
• Cisco Systems (CSCO)
• Target (TGT)
• Carnival (CCL)
• JPMorgan Chase (JPM)
• U.S. Bancorp (USB)

Despite the fact that 'expert opinions' are just as likely to be wrong than right, the description of these stocks certainly sounds appealing.  Fortunately, at Trinity Financial Planning we don't have to worry about whether we should buy these stocks now or not.

Our clients all already own them.

It's reassuring to know that we own every one of those stocks as part of our globally diversified index-based investment philosophy.

And that when they get overheated from a run-up in their sector, we are selling them at incrementally higher prices.

And that when they sink because of market sentiment, we are adding more at attractive prices.

And we are doing that all through a disciplined investment process including systematic rebalancing - not in any way relying on predictions, forecasts, hunches or other guesses.

Do you already own these attractive stocks, or maybe are thinking of buying them with bond yields so low now?  Leave a comment and let us know your thoughts.

Important Information About Incorporating Stock Market Projections into Investment Planning

There is a lot of information coming at us every day about what is going to happen to the markets in the future and what we should do about it.  This three-minute video gives some insight into how we view that information in the context of designing an investment portfolio.



As you can see, the most important thing about incorporating market predictions into an investment plan is - with apologies to Nancy Reagan - Just Say No.

If you agree that the evidence does not instill a lot of confidence in the conventional wisdom on Wall Street and you are interested in an approach where the academic evidence has shown favorable results, consider looking into how we work and who we serve.

If you disagree and believe that stock market projections have merit, let us know your opinion below.

Fast Loans Same Day - Faster to Arrange Additional Funds Anytime

Hey body, you are looking for exterior monetary assistance offered in as little as possible time of same day. Yes, you need money today then fast loans same day may be the prolific products and help you grabbing hold of cash that is suitable to take care of your entire financial needs gamely. These loans are known as short term payday cash advances that don't require any kind of protection in lieu of given finance. So, don't wait in any way as soon as submit your details to the lender and get your loan immediately.

The planned cash under the provision of fast loans same day is varied in ranging from $100 to $1000. In addition, it is released for small repayment duration of 2-4 weeks. If it is sometimes not possible to payback then the repayment period may be easily extended on the request to the lender, but it may be slightly charged on this process. There're many payments which you can easily managed by taking the assistance of these loans such as paying for schooling or examination fees of your child, paying for previous credit card dues, outstanding bank overdrafts, making small improvements in home, fixing up sudden breakdown car, household expenses, light, telephone or grocery bills, traveling expenses, throwing a part to friends on the event of birthday or wedding anniversary and so forth.

Straightforwardly meet with simple terms and conditions in order to quickly access these loans. In regard of pre-requisites, you need to be a resident of United State living anywhere in the country for the past 12 months and you have residency proof. You are legally aged 18 years or more at the time of applying. You are permanent employee with monthly earnings up to $1000. In addition to these, you are having an active checking account or savings account. You have qualified these criteria then you marked with adverse credit factors like defaulted payments, bank arrears, skipped payments, missed payments, CCJs, IVA or bankruptcy can also easily take these loans in hassle free way.

Way to apply for quick loans same day is online that is the right medium. You do not need to take any step out from your comfort home or office. You are just to fulfill an application form on the website in order to submit your details to the lender for confirmation in order that the loan is approved right away. The approved money is directly transferred into your bank account safely on the day you submit your application.

Same Day Bad Credit Loans - Well Enough for People with History of Poor Credit

What is important to take a loan earliest within 60 minutes? There are numbers of things to do profoundly ahead of applying for any loan. You are asked to fax lengthy confidential data, do lengthy paperwork, exhibiting history of credit records or even pledging collateral to the lender for security of the loan. But you are unable to meet with any of these procedures. On the other hand, you don't need to get concerned since same day bad credit loans are specialized monetary products for people who are suffering from history of poor credit performances.

Therefore, bad credit factors that consist of late payments, missed payments, due payments, skipping of installments, insolvency, defaulted payments, bank arrears, CCJs, IVA or foreclosure are not the subject of hassles. So, don't waste your precious time and immediately apply for same day bad credit loans without undergoing any credit check procedures. But commit to memory that you have to reimburse the money in specific reimbursement time period in order that you might avoid yourself from extra penalty.

All exhausted procedures are ended when you meet with all eligibility criteria that are qualified as: your age should be eighteen years old or more, your residency should be of the US, your earning should be permanent at least $1000 net per month and you have an active checking account.

Your above qualifications enable you grabbing hold of best amount in ranging from $100 to $1000 without putting any kind of collateral to the lender for securing the amount. On the other hand, commit to memory that you have to reimburse the fund in small time frame of 14-31 days. Moreover, you are absolutely freedom to use the money in various short term financial purposes such as paying for unexpected health check fees to the lender or even other medical expenses, household expenses, repairing of car, child's school or tuition fees, repairing of car, light or telephone bills and the list goes on.

To find out the best monetary deal with quick loans for bad credit same day you firstly have to make a systematic online research to fetch the best lender. After it you have to fulfill a simple online application form with entire accurate data like full name, permanent address, telephone or mobile number, bank account details, employment status etc and then submit it on the website so that the lender might instantly confirm your details and declare your loan approved and so that it might be transferred direct into your bank account safely on the same day.

Faxless Payday Loans - Choose Easy Way for Making Funds Faster

To get a loan approved is really a pain striking because of lengthy paper works that are mandatory to accomplish. Other than, you can't defer unavoidable expenses so you need funds in fast way. In that case you can choose easy way of faxless payday loans for making funds in the least possible time of 24 hours. These are amazing monetary products endowed to all kinds of borrowers without performing credit records also.

The procedure to arrange documents and sending them to the lender for verification is not done in order to apply for faxless payday loans so you are always perfect to access finance in ranging from $100 to $1000 without tedious paperwork. Moreover, you do not need to wait for longer for cash decision as the loan is approved in just 60 minutes.

That's why you need to go online where you have to find the best lender of different loans' lenders and then you have to fulfill a simple online application form with relevant details like name, address, bank account, email id, contact number, age, etc and then submit the form on the website. This application process consumes a few minutes to be accomplished and then the lender will approve your loan and it is sanctioned direct into your bank account safely on the day you submit your details.

Commit to memory that there are some normal grounds which you have to fulfill ahead of applying. So you are at least 18 years of age or more, you are permanent citizen of United State, you are doing a permanent job and getting salary at least $1000 per month and you are holding an active checking account that is mandatory for online cash transaction.

People who are suffering from awful history of credit records like defaults payments, bank arrears, foreclosure, CCJs (Country Court Judgments), IVA (Individual Voluntary Arrangement), insolvency, skipped payments or even payment overdue etc. They are accepted to enjoy no documents payday loans without going through any credit check procedure. Other than, you need to repay the fund in specific repayment period. 

An amount in ranging from $100 to $1000 you can acquire through the provision of these loans and it is released for a period of 2-4 weeks. By taking this aid you can meet with various expenses such as paying for medical bills, electricity bills, grocery store bills, home loan installments, traveling expenses, repairing of car, celebrating birthday party of your child and many more.

Payday Loans Same Day - Appropriate Funds in Least Possible Time

Don't think much about yourself that you have to face bad financial standings without any previous warning. Likewise, fiscal crunches often happen when least expected. As long as you are having some scarcity of money and looking for additional funds, payday loans same day could be the real and friendly monetary helper for you in any situation. The help of these loans may succor you covering up miscellaneous financial purposes in the least span of time. So, hurry up for making better monetary aid provision in least possible time.

Know well about payday loans same day since these are small and temporary financial services that let one accessing the easy and fast cash assistance to live life hassle free for all time. So you can depend on these products for the intension of getting additional support at the mid or end of the month. The most amazing thing about borrowing money through these loans is that there is no collateral placed, nor need to fax any documents to the lender in order to protect the acquired.

These loans are categorized as short term cash advances released for small duration till payday. By and large, you are able to acquire money in ranging from $100 to $1000 for the flexible repayment period of 14 to 31 days. It is specialized to end mid month or small pending bills like paying for medical bills, grocery store bills, pending credit card dues, examination fees of your child, sudden repairing of car, making small improvements in home and many more.

There're some of eligibility criteria that you to qualify to get approved with same day payday loans. These qualifications are as meets- you should hold a valid and active checking account, you are US resident and holding SSN number, you should be in regular employment and monthly salary should be at least $1000 net per month and you are at least 18 years of age or more. Afterward, you being history of bad credit holder like defaults, arrears, foreclosure, late payments, missed payments, due payments, skipping of installments etc are also ok to enjoy these credits without undergoing any credit check hurdles.

Go on easy and fast way of online in order to seek out for affordable monetary deal. You can find a lender with your desired loan available 24 hours a day and 7 days of the week. You are require to do is to fulfill a simple application form with some basic details and submit your details to the lender. After finalizing your details, lender will approve your loan and it is sanctioned direct into your bank account today.

Same Day Payday Loans - Vital Solution for Solving Fiscal Problems

Why are you worried? Has your pocket money been exhausted before payday? Are your expenses unavoidable? Is it urgent to solve fiscal problems to escape from hassles? Are you looking for superior monetary solution? If yes, then you are advised to choose the excellent monetary product that is named same day payday loans without any second thoughts. The excellent ratings about these loans that 99% applications from fair credit and bad credit holders are accepted by lenders. That's why there is no obstructions in way of borrowing.

There're many times when you are not in position to fax documents and do lengthy paperwork. In addition to these, you haven't desire for pledging collateral along with credit checking, however you are worth enjoying same day payday loans without any fear. These loans are offered to the salaried so there is no matter of performing, what your credit history is! As a result, you blemished with defaulted payments, foreclosure, skipped payments, missed payments, bank arrears, CCJs, IVA or even bankruptcy can also take monetary benefits through the described loan anytime anywhere.

The most convenient feature is that you are not required to follow exhausted process in order to apply for loan. Here are basic terms and conditions to fulfill as: you are an individual who has completed @18 years of age, you are US resident and living in the country from the last twelve months, you are doing a job and your income is at least $1000 per month. In addition to these, you are having an active bank account or savings account in your name. The bank account is essential for receiving the amount safely via online medium.

The approval money in payday loans same day may be small in ranging from $100 to $1000 and its repayment schedule may be also varied from 14 days to 31 days. There is no interruption on the usage of borrowed money so you are absolutely freedom to use the cash for paying child's examination fees or other educational payments, paying for light or telephone bills, grocery store bills, paying for doctor's fees for health check up, repairing of unexpected breakdown car, paying of the previous credit card dues or even household expenses.

The simplest and fast approach to apply for loan is internet and so you need to go online. The amazing thing is that it is available everywhere that's all you have to opt for the best lender for reasonable monetary deal. You are just to fulfill an application form in order to submit your details to the lender so that he might approve loan and it is sanctioned direct into your bank account same day.

Forex Trading With ECN PRIME

Trading Forex

If somebody wants to trade on the interbank forex market, which is an OTC (over the counter) market, then the clients need to open a trading account at a forex broker. The forex broker provide all of tools and technology and settle trades to the market through its Liquidity network. Trading can be done either over the phone or through electronic networks, but the most popular way is using an online trading platform, where clients can analyze the market movements and based on their expectations and opinions, they can make investment decisions and place trades on the real market. The Forex trading is a 24-hour market, because of such a worldwide distribution of trading centers. Sydney, London, Tokyo, New York, and Frankfurt are the main hubs of trading. The market makes the biggest movements when markets overlaps each other. Trader mostly like London and New York session.

It is very important to learn Forex trading before taking up this trade. For instance, one should know about basic terms like currency trade. A currency trade is a synchronized purchase of one currency and selling of another. The currency combination used in this exchange is known as a cross (for instance, the euro/US dollar, or the GB pound/Japanese yen). The most frequently exchanged currencies are called "majors" and include EURUSD, USDCHF, USDJPY, and GBPUSD. 

The spot market is the most important Forex trading market as it has the biggest volume. The market gets its name because all of the exchanges are settled immediately, or "on the spot," although this is practically accomplished in two working days. Other than these terms, ECN PRIME offers access to real access to interbank forex market with ultra-fast order execution with very low spreads and costs via award winning MetaTrader 4, cTrader and Currenex platforms. ECN Prime provide real time market quotes and charts as free of charge. It gives you the possibility to trade on real market with virtual money and you can test your trading strategy and learn trading without any risk. 

Opening a real Forex account is very easy. It is done in three simple steps. The first step is to select the account type. You should decide in advance whether you want to open a live account in your name or in your business's name. Also, there is an option between Innovative Liquidity Connector and xLeverage accounts.

The next step is the online registration. The proof of ID and proof of address documents needs to be submitted to complete an account application. These documents are necessary to complete account application, because ECN Prime needs to follow and comply with the international and local Know Your Clients and Anti-Money Laundering rules and regulations.

Once the broker receives all the paperwork required, you will receive an email on how to fund your trading account with real money. After this process is complete, you will receive a final email with a username, password to login your trading account. You can now also open a MetaTrader 4 and cTrader demo account with ECN PRIME. 

So, if you are looking for benefits and want to invest and make money from Forex trading, then choose ECN PRIME. They are the best forex broker you could ever find. One of the main benefits of an offshore trading account is that there is no capital gain tax acquired from trading activities. If you make $500 or even $1 million, ECN PRIME has no obligation to report the capital gain to any tax authority. They hold client funds on segregated accounts.

5 reasons to hire a Virtual Chief Financial Officer

When it comes to dealing with the financial aspect related to a business, some companies prefer to do it on their own due to budget constraints. But, it is always advisable to seek professional help of a CFO as he is equipped with the knowledge and expertise to do the job right. For companies that cannot pay large amount to a CFO, virtual CFO is the solution. 

A virtual CFO is an outsourced service provider who offers skilled assistance in financial needs of an organization. He works same as a Chief Financial Officer but does not charge more for his services. Here are 5 reasons to hire a virtual CFO.

Saves you money

Hiring a virtual officer enables you to save your money since you need not appoint him for full time. He can be hired based on the needs and can be paid accordingly. Additionally, you can get the same quality of work you receive from a full-time officer. 

Offers flexibility

It cannot be denied that one of the biggest benefits of availing virtual CFO services is flexibility. It is due to this flexibility that you can access bespoke services that your organization requires. You can increase or decrease the services as per your needs. 

Provides access to experience and expertise

Finding an experienced and skilled virtual CFO is easier than seeking a traditional option. You need to simply mention the skill set along with minimum experience you require and the professionals will come to you. The best part is that these virtual officers have the experience of working with different organizations and they can bring a fresh perspective to your table. 

Increases your chances of better results

Having an opportunity to work with many companies before, they are already aware of common financial problems that your organization might encounter and can thus provide solutions based on what they have learned from their past experience.

Adds a new perspective

Regular employees usually operate within a single company and have the same approach to perform tasks and address any issue. But since a virtual CFO has worked with diverse clients before, he can introduce a new perspective to solving issues - something that can be extremely beneficial to your company. 

Running a business involves money. You need to ensure that you are able to make the most out of what you are investing. 

Proactive CFOs operates as a full time and part time CFO Sydney, helping the businesses with their financial modeling. Implementing various business strategies, we help improve the bottom line of your business.

How To Compare between the Islamic Banking System and Conventional Banking System?

The journey started with making efforts to establish Shariah objected the conventional banking system in Pakistan and across the Muslim world and insisted to introduce Islamic banking. The concept of Islamic banking was to provide people with Halal banking along with safety from Riba (interest). The basic purpose was to avoid foreign financial services, especially banks and their overall banking system, in almost every single Muslim country. The core vision behind this concept was to establish an Islamic Economic System around the Islamic World. 

Following the initial phase, people raised the basic question "Is Islamic banking really according the Islam? This article will try to answer this question by discussing why comparison between conventional and Islamic banking systems is crucial. 

There are two major aspects behind this specific question or matter. At first, what is the basic distinction in the banking methodology or the system the lay person can see while dealing with an Islamic bank in comparison to a conventional commercial bank? In the second place, whether interest is totally eliminated from the Islamic banking system, even at the benchmarking level? 

The problematic issue emerges when the Islamic banking system is only taken as a simple change of name, not the whole system. So, it is necessary to understand the difference between Islamic banking system and conventional baking systems, which can be possible to make comparison between them.

Conventional Banking System 

Conventional commercial banking system, money refers to a commodity along with medium of exchange and store of value. For this very reason, despite of its face value it can be sold at high price as well as it can be rented out. In this system, charging interest on capital is based on time value. Interest is the basic part of this system charged even in such a situation when a business organization experiences losses by using bank's funds. Hence, profit and loss sharing is not its basis.

There is no concept of exchange of goods & services while disbursing any type of finance including cash finance, running finance or working capital finance, no agreement. Money is used by conventional commercial banks as a commodity which results in inflation.

Islamic Banking System 

In Islamic banking system, money does not refer to a commodity though it is employed as a medium of exchange and store of value as in the conventional system. Thus, money, despite of its face value, in Islamic system can't be sold at a higher price or rented out. Moreover, earning profit is based on profit on trade of goods or charging on facilitating people with service. It suggests that profit and loss sharing is the basis of Islamic banking system and its operational activities. Further, if the businessman or an organization has experienced losses, the bank has the responsibility to share even these losses on the basis of the mode of finance used (Mudarabah, Musharakah). 

In Islamic system, it is necessary to make agreements for the exchange of goods & services, while disbursing funds according to the contracts of Murabaha, Salam & Istisna. 

Islamic banking system inclines to establish a connection with all the real sectors of the economic system through activities associated with trade. Since, the money is connected to the real assets thus its contribution is direct in the overall development of the economic health.

In-Depth Comparison between Islamic Banking System and Conventional Banking System 

If we talk about conventional mortgage, a finance facility, if a person decides to purchase a property he as the customer borrows some financial support (money) and repays it with an extra amount (interest) over a specific time period. The extra amount the customer will pay is called the interest amount which is not according to the Shariah and Islam. On the other hand, if we talk about Islamic mortgage, Islamic bank is responsible for sharing with the customer in purchasing the property. So, both the bank and the customer make ownership and become the property's joint owners along the lines of their share in purchasing the property. So as to own and use such a property, the share of bank's property is purchased by the customer over a time period, while paying the rent for using the bank's property share. With the passage of specific time, the customer manages to buy the total share of bank. The customer acquires the sole property ownership finally. 

Moreover, as far as the Islamic mortgage finance is concerned, the rent will be charged once the delivery of the property has been taken by the lessee and it is in workable/usable condition. Keep in mind that rent cannot be charged from the moment the price was paid with the aim of acquiring the property. In case of delay from the end of the supplier regarding the delivery even following receiving the full price, there will not any liability on the lessee for the rent of the delayed period. In the conventional mortgage finance, on the other hand, the lease rentals typically commences from the date the bank pays to purchase the property.

Which is the best capital protection investment plan?

Protecting your capital, a BIG task, Isn't it? You have your higher studies planned, EMI to take care of and a huge college fees for your children awaiting to empty your purse in couple of years. And, of course, unwanted emergencies like health issues and uncertainty at work which can lead to unexpected personal finance problems.

The usual way Investors protect the capital:

Normally, in two different situations, the investors look into protecting the capital by preserving it.
1. When the asset prices are too volatile
2. When risk is alleged to be high with any particular product

In these scenarios, the investors hide inside their shell to safeguard their hard earned money rather lose it by trying to invest in high risk instruments. After looking at the capital that doesn't grow due to fear of losing it, the investors seek advice from the experts for options.

Are bank FDs the safest and the best mode of protecting your capital?

The answer is 'yes' and 'no'. When you invest in bank FDs, your money is safe. But, the investors get confused when they struggle to beat inflation with the return they get from bank FDs. Normally, bank FDs offer you an interest of about 8.75%-9.25%. After you pay taxes on the interest earned, you earn returns approximately at 7%. Did you know for the last five years, the inflation rate is at 7.5%? It makes your investment value as same as what you invested initially. You gain nothing extra here.

Understand how these safest capital protection mutual fund schemes work?

You wanting an upside with bank FDs and seeking risk free protection is a clear paradox, you can't have a cake and eat it too.
You need to understand things clearly. Say For example, you are investing 30 lakhs in a fixed deposit. You are amazed at the statistics comparing capital protection mutual fund schemes over bank FDs given by the banker who sells these, right?
From your capital protection mutual fund scheme investments, the bank earns a huge sum of approximately 1 lakh as a fee and the banker earns an incentive. This is the reason banks broadcast and advertise extraordinary about their high risk averse HNIs over other capital protection plans. Remember, you gain no hot revenues which does any good to your portfolio.

So, what is the best alternative capital protection plan if not bank FDs?

Well, you have liquid funds to choose from mutual funds. The bankers will not advocate such plans as they incur low fees for them. These fixed mutual liquid funds are the best alternative to your 'so called safe' plans in name of bank FDs. There are debt funds that offer low risk products such as capital protection funds and FMPs(Fixed maturity plans).

How does the capital protection funds work?

Understanding how capital protection mutual fund schemes works is not a rocket science. Let me explain it simply. When you choose capital protection mutual fund scheme, 80% of your investment goes into fixed income securities and the remaining 20% is invested in equity funds. This arrangement makes sure your capital is safe as the 80% invested in FDs are kept until the tenure of the scheme. You gain an excess return on your capital through the 20% invested in equity products. A point to remember here is the risk associated with this small portion when the market is volatile. If you are ready to take a little risk with 20% of investing your capital in equities during a volatile market, then go for this scheme.

How does the FMPs work?

The fixed maturity plans gain returns as they are invested in bonds and held until maturity. Your capital is invested in couple of certificates which trade at 9.5% or more. These investments are held until the period of maturity. After deducting the incurred expenses, the investors get a return at the rate of approximately 9%. This is slightly higher than other short term funds or liquid funds.

Ok, how do these investment products differ from bank FDs?

Safer Investment Option - Well, I can't say this as a difference, but these mutual fund models offer the same level of protection as the bank FDs since these are invested for a fixed period. But, the key difference is the multiple options you get here.

* If you want to invest your capital for a shorter period, FMPs offer options to invest for minimum 30days onwards and available even for 3 years.

Works best at all times -If you want to protect your capital when the bond yields are high, safely invest in FMPs.

Save on Tax with long term capital gains:

You pay taxes of about 20% with indexation and 10% without indexation from long term capital debt funds gain. This helps in adjusting the buying price in accordance with inflation and you get an edge from your taxes on interest over normal FDs.

Alternatives to Capital Protection Funds:

Capital protection funds invest 80% in debt and 20% in equity. You can do this on your own. That is you can invest 80% of your money in FD or FMP or debt fund and invest the balance 20% in equity funds.

Mostly, the capital protection funds have high expense ratio.
So instead of investing in capital protection funds, you can create your own capital protection asset allocation combination.

Remember, you need to make the investments to work for you, not to the banks. Plan well and save your hard earned capital!

The author is Ramalingam K, an MBA (Finance) and Certified Financial Planner. He is the Director and Chief Financial Planner of Holistic Investment Planners (www.holisticinvestment.in) a firm that offers Financial Planning and Wealth Management. He can be reached at ramalingam@holisticinvestment.in

How healthy your personal finance management is?

Like how we take care of our physical health through periodic check-ups, inspecting the financial health from time to time is very important. We tend to look at what we eat, how we keep our lifestyle in order to have a healthy life.
In the same way, having a disciplined way of managing your portfolio will safeguard your future spending, earning and saving.
Personal finance management helps to plan our future appropriately. Read ahead to understand how one can analyse their personal finance strength with some easy to do ways.

Monitor Budget Vs actuals:

I have seen families starting their monthly expenses after budgeting. They allocate a particular amount for each fixed expense like rent, education fees, petrol, commuting, etc., But, if you ask me how many of them check at the end of the month whether the money they spent on each task matches with what they budgeted. My answer is 'not so positive'.
Yes, it is very important to check, compare and monitor the budget with the money spent actually. This exercise will help you in,
Identifying the current and future cash flow
Achieving your finance goals by managing cash outflow very well

This can be achieved by simply, but unfailingly following two steps.

 Organize personal finance records properly
 Fix a period to monitor and compare the budget with the actuals

Formulate Proper Financial Plan: 
Attaining financial goal is like a journey. Planning is necessary if you want to travel from one destination to another even within a city. Because planning gives us proper,safer and easier route to reach our
destination. Likewise, planning is necessary in order to reach your financial goals which include but not limited to retirement benefit, healthcare etc.

Focus on identifying short term & long term financial goals and list some key factors like,

Your current financial position
Think about the current cash flow and list down all sources of income
Estimation of amount and time required to achieve your short term & long term financial goals
Measure the financial securities that you have in hand like current assets
Consider possibilities of future financial expenses and emergencies like medical treatment, marriage, child education, etc

Group them to make a considerable financial plan to secure your future.

Monitoring Your Finance Activities:

After making financial plans, the most powerful process in personal finance management is supervising or monitoring the activities.

Monitoring your financial activities will help to

Identify new sources of income (extra income)
Identify unwanted cash outflows such as impulsive buying or extra vacation
Control and strengthen your financial securities
Identify the best ways to spend your income
Finding proper ways to save your money
Identify the sources of new investments
Identifying financial trouble:

Identifying risk is an essential part in personal finance management.

"Risk is much more about what you don't know than what you think you might be able to control."- The Wall Street Journal

Couple of things where trouble/risk can occur:

Extra penalty towards late payment fees such as rentals, maintenance, electricity bill payments, telephone and cable charges etc.
Exceeded credit card limit and late payment of credit card bills leads penalty and excess interest
Not keeping minimum balance in bank accounts.
Unnecessary credit card usage

Managing Financial Crises: 

Many times, financial urgencies like illness, loss of job, family changes, long term disability, legal problem cause finance crisis.

Follow some basic rules to manage such situation:

Always maintain contingency reserve to manage emergencies
Take health insurance, accident & disability insurance and critical illness insurance policies which can support you long term 
Use credit cards as a trump card, only during emergencies

Handling un-managable debt or bankruptcy:

Understanding the tactics to handle un-avoidable debt is very important in personal finance management. Not able to manage debt go to the extent of suicide. In case of insolvency, reach out for expert's guidance instead of taking any foolish step. There are legitimate ways that can help manage bankruptcy or unavoidable debt.

Most important advice given by Warren Buffet is "Don't put all the eggs in one basket". Follow the key points given in this write-up and make a wonderful plan to strengthen your finances. Believe me, luxury follows those who plan well and keep their finances a healthy one.

The author is Ramalingam K, an MBA (Finance) and Certified Financial Planner. He is the Director and Chief Financial Planner of Holistic Investment Planners (www.holisticinvestment.in) a firm that offers Financial Planning and Wealth Management. He can be reached at ramalingam@holisticinvestment.in

Financial Advisor In Richmond

The site at atlasfg.com has all the information you need for a financial advisor in Richmond or a financial planner in Richmond. Everyone who is trying to get the best results for their finances needs to make sure that they are going to have someone who will help them with everything that they are trying to do. That usually means that you are going to have someone who is going to help you with all your investments, and you need to be sure that you are going to be able to change your life with extra money that you are making from these investments. 

The investments that you make with the financial advisor in Richmond or The Fee only Financial planner in Richmond are going to be very good because that is going to point you in the direction of an investment that really makes sense for you. Every person has to make their own investment decisions, but you will have someone on your side who actually knows what they are doing. You will have all that you need when it is time to get these things done, and then you can make changes any time that you need. There are a lot of things people might choose to do, and they have to be sure they are working with someone who will help make the changes easily.

Your first step is going to have to be with someone who knows the stock market, and you have to check and see what they can do for you. They will teach you a lot about your money, and they can share with you some things that will make it a lot easier for you to make money. They can help you with stocks, property and other investments that might work for you, and it will be really fun for you to work with someone who knows all of this.

The people that do this every day are going to have access to a lot of things that will make your life better, and you should start thinking about how you are going to have a chance to get help that really means something to you. Your own work can be done a lot easier because you are speaking to someone who will help you make money on investments, and they will handle all your accounts so that you do not have to worry about it. It is so much simpler for you to do this when you are working with the right person, and you should start thinking about how you are going to get results from the things that you are doing. Everyone who is working hard on these things will make more money with an advisor.

Gaining an insight into job responsibilities of a Chief Financial Officer

The CFO is a corporate officer responsible for handling finances of an organisation. From financial planning and record-keeping to financial reporting to higher management, he manages all this and more. He supervises the financial unit and operates as the chief financial spokesperson of the company. 

The typical day-to-day job responsibilities of a Chief Financial Officer may vary. However, the three basic areas include the following.

Accounting and reporting

The Chief Financial Officer is responsible for maintaining accurate financial records and preparing financial reports on a company's financial status. When working for a small company, the CFO handles basic accounting duties and generates monthly and annual financial reports. Contrary to this, his duties shift toward analysis and management while working in a larger corporation. The actual accounting and reporting is carried out by the divisions and the CFO reviews them to analyse the corporation's financial status. CFOs working in larger organisations usually submit an annual financial report to the board of directors of the organisation. 

Management and budgeting

In a smaller company, the CFO handles matters such as cash flow, salaries, budgeting, and investments. His other job responsibilities include signing employee paychecks. On the contrary, the CFO plays more of an administrative role in terms of management and budgeting in a larger corporation. He decides on pay scales and allocates resources on the basis of reports from division manager. CFOs often seek opportunities for capital investment for their organisations.

Strategy and planning

In all types and sizes of companies, Chief Financial Officers are partnering with CEOs as well as corporate boards to assist with long-term strategic planning. They assess productivity and look for opportunities to develop areas of efficiency in order to improve profitability. They are consulted for their knowledge of markets, funding sources, as well as general economic outlook to help organisations with wise decision making when it comes to analysing risks and allocating resources. 

The qualification for a CFO can vary according to the organisation. Given that they have to undertake financial management responsibilities, most of them are expected to have training as well as experience in accounting or finance. Larger organisations require a CFO to have MBA and/or advanced degree in finance, accounting or economics.

In a nut shell, the Chief Financial Officer has an important responsibility to help organisations and companies to grow. Simply put, he keeps a company going strong.

Proactive CFOs offers both CFO and virtual CFO services to improve financial performance of businesses. The professionals help the business owners to achieve efficiency in operations and set and monitor key performance indicators.

Golden rules to borrowing a personal loan today

There comes a time in your life, where you will need to opt for borrowed funds in order placate your financial requirements. While there are plenty of options available in the market, loans are the ideal option for most cases.
If you have varied financial requirements, then the personal loan is the ideal choice. Through this loan, you can satisfy multiple financial requirements, without any restrictions. Additionally, you can use the personal loan EMI calculator to calculate the ideal loan amount that will suit your needs.

However, when it comes to borrowing funds, there are certain factors you will need to keep in mind. Although borrowing of funds will offer you plenty of benefits, one would also need to keep track of the repayment measures for it. Borrowing of funds come with certain golden, rules, which is given below.

1. Don't borrow an amount that you cannot afford
This is one of the major rules of borrowing funds through a personal loan. A loan should provide you with a relief to your financial woes and not add to it. You must not live beyond your means. Opt for a loan amount that you ca easily repay. The thumb rule for borrowing these funds, especially for this EMI's should not exceed 10% of your net monthly income. Use the personal loan EMI calculator to ensure that you get the ideal loan amount you can afford in this case.

2. Opt for a tenure that is as short as possible
The tenure of the loan affects the value of the EMI's. in this case, the longer the tenure of the loan, the lower is the EMI. This fact will surely make it tempting for those who would want to go for a 20 to 30 long tenure. However, in this case, your interest rates will rise, making you pay for a loan amount that is more than you can afford. Additionally, this will increase your debt to asset ratio, thus reducing your chances to apply for another loan application. Use a personal loan EMI calculator to calculate the ideal loan tenure that will suit your requirements.

3. Ensure you make timely and regular repayments
Opting for a loan would also include repaying the borrowed fund. Whether it is a short-term debt, you must ensure that you do not miss your payments. A delay or missing a repayment will impact your credit profile. This, in turn, will hinder your chances of taking a loan later on in your life.

4. Avoid excessive splurging and investing 
Once you borrow funds, you will need to take the means to repay it back. Therefore, you should ensure that you avoid splurging the funds unnecessarily. Additionally, you must not use these funds to invest in other options. This is because the risks on the returns can be high. Additionally, an even safer option such as termed deposits may not offer you the ideal return on investments to match the interest rates on the loan.

Investment banking for beginners: All you need to know

To put it simply, investment bankers are the middlemen between investors and bankers when it comes to stock. An investment banker performs a number of services that help both the investors and the company in question. This is why they are so important to the financial market. Here are some things they do:

1. Buy and re-sell stock
This form of investment banking does not follow the traditional manner. These investment banks purchase stock from companies who have just had their IPO (initial public offering). In the next step, these companies sell it in the market at a higher price to what they had previously bought it for. This is a major risk, but due to their expertise, they are usually successful at it. Some of the largest corporations in the world are investment banks including JP Morgan, Morgan Stanley, Deutsche Bank, Barclays, and others.

2. Providing advice to clients
The clients of an investment banker include corporations, pension funds, hedge funds, the government of its country and other large financial institutions. Investment banks provide advice as to what is the ideal step that should be done. The Chinese wall is a concept where there is a discord between the advisory and trading divisions of the bank. It is crucial that they maintain their independence otherwise they will not be giving appropriate advice to their clients.

3. Help find investors for debt financing
Debt financing is a way of raising capital for projects through corporate bonds. Corporate bonds are much harder to come about, as compared to government bonds. Therefore, investment bankers are needed to find a client for these corporate bonds.

4. Financing large projects
Traditional banks are usually much smaller than investment banks. This is due to the fact that they do not undertake projects as big as investment banks do. The only way that large projects get funded besides an IPO and selling stocks is through an investment bank. This is why they are so crucial for the functioning of the economy.

5. Asset management and brokerage service
Finally, investment banks also help regular investors. This is because they take money from a client and use it to help those clients make more money. This is done in two main ways. The first is that they select stocks. The second is that they secure mutual funds for their clients as well.
As you can see, investment banking is crucial for the economy and this is the reason why becoming an investment banker is such a lucrative proposition.