With the availability of credit shot, consumers borrow easily and tend to get what they want immediately, so no money. Go with your impulses are not so good for your personal finances.
Have you seen that TV you want, that console video of your dreams, or maybe those shoes that go well with your new jacket, also has been a difficult week and wants to go to a restaurant and go to party, therefore, decides to forward your credit card. These behaviors are the product easily and quickly classic living debt Colombians. FinanzasPersonales.com.co will give you some excuses you can use when you feel all these impulses in your pocket are not the healthiest.
1. Finance your purchases do not show self-control. Not having control their expenses and willpower to exercise, can rob you of financial security later. The worst that can happen to your finances is to have an impulsive attitude toward the purchase, it can become boring, but will bring rewards later, as the possibility of paying your own home. Remember that financial health is one of the most important aspects of your life.
2. By spending by credit card, you may be going out of your budget. Do not have a budget? Well you should start with that. For many people the budget is a tool to keep spending under control. It's easy to not realize how much each thing you want to buy, add at the end of the month and see if that was what I had planned and I could spend.
3. Interest rates on credit cards are more expensive. The interest rate on consumer loans is 17.69% effective and the usury rate is 26.54%. Interest rates for credit card payments are about 26% and advances near the border on usury. This makes the financing of their purchase is very expensive. At an effective rate of 26% annually, for a purchase of a million dollars a year may be paying up to $ 128,746.
At this point it is important to note that interest rates are rising, and that first up are the consumer and their debt will rise over time if it is carried away by their impulses.
4. Defaulting is very expensive. When you do not pay on time your credit card, the bank begins to charge the usury interest rate on their debt, this will generate additional costs to your budget. Maybe you're saying it never will happen and everything will pay a fee, but the unexpected or simply lose their jobs could go through this if you do not plan enough managing your money.
5. Take care of your credit history. Not having a good credit history can hurt the ability to make significant purchases, like a house. Failure to pay the credit card on time, your credit rating and decrease their chances of getting more things or advantages on interest rates, which may not get a boost to have. If a customer is risky for the bank, you may not deny credit, but at a higher rate, which ultimately translates into costs and additional money.
6. Bad financial habits jeopardize their relationships. Money is one reason why couples and families apart. This is a very complicated issue, so do not forget to budget with your family and within the rules to avoid any impulse to rescue them from their true financial goals.
7. Finance purchases lead to higher spending. Some people spend more money, either buy more or buy more expensive items. When you pay the credit is easy because it is just sign a paper and get what you want. While, when paying with cash, feels that the money is in your hands. Paying cash will you really know how much you are spending and how much less is in your wallet.
8. In the worst cases, the habit finance all your purchases can lead to bankruptcy. If you decide to use their credit cards to the top, without a plan to pay them, or if the plan goes wrong, either because they lost their job or facing a domestic calamity, you will inevitably face a large debt, which will take the bankruptcy is not easy to recover.
9. Avoid debt will bring peace of mind. If you do not owe anyone money, will not have to worry about. Interest on arrears, late payments and management fees. will not be your concern. The best way to enjoy some really nice is if your pocket permits.
Remember, do not finance your purchase does not mean you should not have a credit card or never use it. Defer purchases a share and reap the full benefits and rewards they offer, discounts and agreements. If used wisely, credit cards become a very useful tool.
Monday, July 4, 2011
Reasons to say NO to credit cards
Ecopetrol reached the highest production volume in its history
The oil company announced that on June 23 the Group's production reached 753,440 barrels Business equivalent per day (boepd), which represents the highest volume recorded in the 60 years of the company.
By discriminating the new record in production, 642,048 barrels per day were for oil, while 111,392 barrels were of gas equivalent.
Of the total production of the Business Group, Ecopetrol SA accounted for 92.8%, 4.1% Hocol, Echion 1.9% Peru 0.9% Savia and participation in K2 in the Gulf of Mexico 0.3%.
The agency reported that the increased production was driven by the fields of direct operation of Ecopetrol Castilla, Chichimene Apiay, La Cira, cassava and Cantagallo.
Recall that the extraction of crude oil fields operated by Ecopetrol reached 307,920 bpd, while that of the associated operation was 288,233 bpd. Production subsidiaries totaled 45,565 Bpd.
"For all workers in Ecopetrol's very satisfying to have reached this milestone in the production which brings us closer to our goal of producing one million barrels of oil equivalent in 2015," said Javier Gutierrez, president of Ecopetrol.
In 2010 the average production of the Business Group Ecopetrol of 616,000 boepd and ending the first quarter of 2011 amounted to 686,200 boepd.
Portugal announced plan to meet rescue program
The new center-right government sent to Parliament its proposals for four-year program, promising to strictly comply with the obligations imposed on the country under the rescue agreement with the European Union and the IMF.
As previously agreed with both entities, the government said it would raise the Value Added Tax (VAT) for certain products, sell shares in companies like Energias de Portugal and the operator of the country's electricity grid, REN, while reducing social security contributions companies.
"The Portuguese State has to abide scrupulously by its obligations internationally, something that is necessary to resume external financing and return to growth and job creation," the program.
Also, would sell shares in national airline TAP and the insurance business of Caixa Geral de Depósitos, although no dates were set for the two disposals.
In addition, the program envisages the suspension of the project to link Madrid and Lisbon with a high speed train.
Lusos media reported that the Government probably acelerararía this program to ensure it complies with the budget deficit target of 5.9% of Gross Domestic Product (GDP) in 2011, although the document did not contain any deadline to implement the measures .
Prime Minister Pedro Passos Coelho said this month that his government would go even beyond the conditions imposed on the loan, with the intention of creating "a wave of confidence in the markets."
Portugal ended 2010 with a deficit of 9.1% of GDP, above the official target of 7.3%. Under the rescue deal, the country has significantly cut the gap to a deficit of 3% in 2013.
Parliament, where the center-right coalition has a large majority, will discuss the program on Thursday and Friday, and the Government may give you more details about the package.
The previous minority Socialist government resigned in March, deepening the country's debt crisis that forced him to follow in the footsteps of Greece and Ireland and ask for ransom.
Know the types of debt that exists and can take
Today there are many credits and other ways to pay a debt.
Know the types of debt there is and how it can be assumed, given the resources it manages. And that proper management of personal finances can focus resources on the costs associated with priority needs. So, when applying for a credit note the following "tips".
• To know if you are over-indebted, must review the payments on your debts do not exceed 50% of their net income. If overcome this limit, you should review what expenses can decrease.
• Analyze income and expenses well, do not let your expenses exceed your regular income.
• Before taking a new loan to analyze very well if your income is able to support a new debt load, no credit is free.
• Analyze the destination of great credit, do not be tempted by super-offers and see if you can postpone the purchase.
• When analyzing different alternatives for funding will not be swayed solely by the interest rate, ask if you need to take additional products, if you charge for the study of credit and if you have any penalty for paying early.
Do not accept all credit cards that offer the quota of credit card debt capacity reduces the time to process a loan. Take advantage of handling fee waivers offered by financial institutions.
• Before taking a loan should be clear that it will invest, remember that there are debts of investment and consumer debt. The investment generates a return.
• When you have loans with financial institutions, remember to clear your payment date and the value of the share, and organize their income to have money available for that date.
• Before borrowing should be saved, because for some cases to provide equity capital to financial institutions that do not pay, for example, to acquire housing.
· Paying on time means no surcharges for late payment.
• It is not advisable to borrow money to pay other debts.
Do not consider using the savings to pay debts.
Do not be borrow to cover basic expenses.
We must remember that there are two types of debts. First, debt investment, which are those in which the funds received are used to purchase goods that maintain or increase their value over the long term, or that can produce income over time, loans to purchase real estate, loans to set up their own businesses and education credits.
Second, consumer debts are given a scenario in which the funds received are used to acquire assets that lose value over time and do not produce income, such as loans for vacations, cars, clothing, among others.
Your partner ... your main trading partner
Without love there is no possibility of establishing a successful family company. But if money is not the focus of this company should not be overlooked. A story that demonstrates the importance of talking and sharing financial information with your partner.
I met Peter and Mary during one of my seminars on personal financial planning. It was a lovely couple: intelligent, kind, educated, and the best students of the course. The classes was that they wanted to assimilate every word, every idea, and then, during intermissions, came to talk to me, trying to delve into each new concept, each new technique learned. It is difficult to find a couple so permeated and eager to learn about the topic of personal finance ...
They themselves were ordered to clear my anxiety.
At the end of the day stayed to talk to me and told me Peter was recovering from a terrible car accident that left him out of the game for some time. For several months he had been bedridden, unconscious, with a guarded prognosis.
By his prayers, had Mary, The Creator had mercy on her and her husband had returned "safe and well." But they also had made a hard but valuable economic experience. When you have an accident, Mary found herself suddenly without money and without knowing where to draw.
Since the beginning of their marriage Peter was responsible for handling financial matters at home and never missed anything. Mary always have enough money to market, household expenses and personal expenses.
Larger commitments: mortgage, credit car, school children and all other similar accounts, Peter was responsible. Always paid on time and Mary does not even know, and when it was ending the money in the drawer of the bedside of Mary, where Peter put him each week for household expenses, he simply completed, no questions asked, without reproach, without complaints, all within the greater harmony and understanding.
-Silver appeared as if by magic, I did not have to worry about anything, 'said Mary. At home there was no talk of money. No need, everything was under control ... Everything but the unexpected as they happened.
A few days after the accident, the money drawer of the nightstand was exhausted and failed to appear as if by magic. Mary found herself suddenly without resources to cover basic household expenses, he had to go to his family to the market and the bills were piling up. She did not know how to pay, nor have the money to do so.
Accompanied by her father went to the bank where she knew that Peter had the account, but the manager of the same, although understand and regret the situation, apologized for not being able to do anything about it ... 'They were hard days. Luckily my parents supported me and with your help I could get a bank loan to cover expenses, said Mary priority.
However, mortgage payments had accumulated, the schools their children were late, they cut services, several days passed without a phone. Mary had to beg the electric service employee who does not cut the light ...
'They were hard days' repeated Mary. And the sad thing is I knew I had money, but I had no idea how to access it. 'Fortunately, God remembered my family and allowed Peter to recover. But we learned our lesson and we are in this course. I am determined to learn to manage the family finances.
Now consider the following: Is it reasonable business associates with a person who is unwilling to share information about the financial situation of the society? Or how about a partner who does not want to know about the accounts, or intervene in any financial aspect of the company? While it seems absurd that someone was willing to do, that's normal, what is commonly accepted, when the company is more important in society: the family.
It is important that your partner talk about money, understand that both the administration of it to plan your financial goals together and which are kept permanently informed of currency movements of his or her partner in bed.
Of course, love is the key, without which there is no way of establishing a successful family company, but although the money is not the focus of the family business as if it is the trading company, should never be left aside, it is important to discuss from the moment that is brewing in the project to share life with another person. And, of course, it is essential that both improve their knowledge about personal finance. A solid financial education will guarantee economic success.
There are happy marriages, and local stock market ETFs
ETFs (Exchange-Traded Funds) represent an important category within the range of financial products that contribute to the development and sophistication of capital markets in terms of liquidity, depth and professionalism.
ETFs have experienced explosive growth since its inception in the 90s, and May 2011 focused around USD1.5 trillion in assets globally. Initially, it was used by professional traders but over time have become investment vehicles used by all types of investor. Its appeal is based on that allow efficient exposure to traditional assets such as commoditties, currency, debt or equity.
Just started my career as an analyst in New York, I heard my boss say that the more accurate description of an ETF was a "happy marriage" between an action and a mutual fund. Just as in a mutual fund, when you buy an ETF, in effect buying a representative basket of assets of an index / portfolio, with the advantage of in a single transaction. On the other hand, as happens with a stock, ETFs can be purchased through a broker, with ratings almost immediately that there are open spaces for premiums / discounts on their respective NAV (arbitration), and has its own elements of negotiation: limit orders and stop orders to facilitate the exit strategy of the investor during the trading day.
The main advantages of ETFs versus mutual funds to include daily price / continuous assessment against the end of the day of mutual funds, transparency, its composition is known at all times, short sales, which occur in Colombia TTVs development, driven securities lending, as the units of participation and underlying assets may be provided for the tracking error dismnuir; provide leverage; offer instant diversification, and have an efficient cost structure. It is easy to see then why my former boss called them "happy marriage", but in my opinion should have called them the "Newlyweds" that combines the benefits of a mutual fund with an action (without losing its essence and highlighting the best of each!), making it an attractive mix of flexibility, pragmatism, cost reduction, diversity and potential return.
Coming soon enter the market the first local ETF replicate one of the indices used as benchmark in equities. Knowing the virtues of this product and its popularity among domestic pension funds at the close of 1Q11 had more than $ 2.5 billion in assets in ETFs (international), you can certainly augur its success.
Additionally, the gain in terms of sophistication and professionalism that will add to market ETFs is as incalculable as it will facilitate reaching the beta increases the chances of generating alpha, allowing portfolio managers to focus their efforts on "beat the market ". The purpose of a portfolio manager is to maximize the return in excess of a certain benchmark. In the active management of a portfolio are two kinds of return: that attributable to mere exposure to the market is known as beta, while the returns from only the skill / talent selection inversion of the portfolio manager is called alpha . Beta liability is to replicate the returns of a given benchmark and the asset beta is based on market timing (overexposure / underexposure depending on the trend).
Thus, an ETF is seen as the most efficient way to get the beta. Meanwhile, the alpha demand a more rigorous, as is the careful selection of assets within a particular class / category as are the actions. Therefore, the ETF, a skilled portfolio manager can easily have a beta of 1.0 relative to its benchmark and value added will depend exclusively on their ability to run a successful stock picking strategy. Eventually, the advantages of the ETF will be transferred to investors who can expect higher returns from portfolios managed with a greater degree of sophistication and professionalism to lower costs. In this sense, Associate Brokers play a key role as an Authorized Participant of the new ETF, contributing their bit in the successful development of the product and the domestic capital market.
Saturday, September 26, 2009
Larger Investment Topics
Google makes the largest investment in U.S. solar panels
Google continues to diversify its business, this time by one who knows very well: the renewables. The Mountain View have announced their alliance with the company SolarCity to install solar panels on residential areas of the United States.
An agreement that translated into dollars yields a figure of 280 million, thus becoming the highest investment of its kind in America. The head of commercial operations of the Internet giant, Rick Needham, values and the agreement:
We expect this investment to see us as a role model. We believe that the world needs a wide range of alternative energies in the future and we are excited to begin this new partnership with SolarCity.
The reply from Lyndon Rive, SolarCity's CEO, has not been expected, reinforcing the new relationship with Google:
If more companies follow Google's lead, we could dramatically reduce our dependence on polluting energy country.
The "courtship" between the two companies have a good start, as both SolarCity like Google have increased their stock value, pushing its effect on other companies involved in solar energy.
The project will provide solar energy panels to about 9000 new homeowners in residential areas and is also framed in the efforts of the Obama administration is taking to boost renewable energy in the country.
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Know the types of debt that exists and can take
Today there are many credits and other ways to pay a debt. Know the types of debt there is and how it can be assumed, given the resources it manages. And that proper management of personal finances can focus resources on the costs associated with priority needs. Thus ...
Eight reasons why you are a disaster to invest in stocks
Because I want to hit him. A few weeks ago, I wrote that the Dow should rise to 20,000 within the next 18 months. I am very optimistic about the stock market and often mention that I like.
But do not be stupid and make their own decisions brokerage. Even if the market goes up steadily, most people are confused by the volatility and do not know how to make money in a bag on the rise, much less a bass player. Here are eight reasons why one is a disaster when it comes to trade stocks, and then I'll tell you what to do in return:
1. You are not so good for this. It's really hard to hold shares. It is not just choosing a stock and see it go up 1,000%. You buy them and sometimes see them fall 80% before the end up 20% above your purchase price. Is expected. Is patience. Psychology is at least 80% of the game. And knowing when to sell? Even more difficult.
No need to review the statistics. Most people sell when stocks are bought on the floor and when the skies. Nine in 10 people believe they are better drivers than average. Nine in 10 people believe they are above average investors. Both are mathematically impossible.
2. Your competition wants to slit his throat in a dark alley. All good investors out every day and take advantage of the mistakes of amateurs. Want to take your wallet, steal their diamonds, and then, after you have removed what can you stick a shot in front of their children and disappear into the darkness of night.
3. Competition, Part II. I know otherwise. Has a program that searches the databases of the Food and Drug Administration looking for microscopic changes in any document. Do you know what happens when some of those documents change just a little? Comes a press release a week later. An action is paralyzed. Opens upward or downward by 50%. Who will win the dollar? Do you or the guy who wrote 100,000 lines of code to scrutinize the data?
4. It is mostly a fraud. I have been in senior management or linked with it in two publicly traded companies, and also I have met many CFOs. Never trust any of the quarterly reports on Forms 10Q, no matter how compliance with government standards. Enron complied with generally accepted U.S. accounting principles (GAAP, for its acronym in English), until it declared bankruptcy and were all in jail or died mysteriously. If you were fully charged for such actions would have killed you too, because what happens to shareholders in such cases is not fun.
5. The fortune in the bag only comes if you take all the wrong choices and then you're lucky. Give you an example: imagine that most of its portfolio is an action, without being diversified by 20 or 30 years and have seen it fall sometimes more than 50%, perhaps even one day. Guess who makes mistakes like that? Bill Gates (who made his fortune with Microsoft) and Warren Buffett (Berkshire-Hathaway shares). So the people who actually earn a fortune in the stock portfolio diversification rarely and never sold. Do you know how people get rich that way? Less than 100. Then there are the other 100 million people hold shares.
6. Competition, Part III. Some brokerage firms provide their operations right next to buildings with computers that process all negotiations for the bags. Then pay for high-speed cables to go directly to these bags for their transactions get there before your own. These people make a lot of money in the markets to reach each offer and buy before the others. It's a race to the bottom but they earn billions. So now we see that the way to enormous wealth is either negotiate in millionths of a second or have huge blocks of their net worth in an action for several years. This is not a good strategy for 99.9% of people.
7. And what about transactions that are done in one day? Many people seem to do it successfully. I was criticized a lot to say to people who never invest in this way. Some wanted to show their tax returns to prove how well negotiated. Do not waste your time. Some people get rich playing the violin, too. Not that the other 6,000 million people on the planet should play at Carnegie Hall.
8. Actions are really boring. Outside of Apple, which is fun. Now I have a stock of a company that manufactures a drug against irritation of the bowel. Do you know how many hours I had to research on medications for irritable bowel syndrome? And then talk for hours with the CEOs of each company to produce these drugs? And then try to find out how big the market? No easy task.
You admit you have a survey that irritable bowel syndrome? And some of the cures sound worse than the disease. And then how would you rate one of these companies? God is so boring. And now I have this action I believe will do well. But when? Perhaps falling for five years before the rise 1,000%. Who knows? Maybe someone has a bad day at the FDA (perhaps a small irritation that was not diagnosed) and a drug that everyone assumed that would be accepted is rejected. Who knows? No matter how much information you have about an action, we will be dead within 100 years anyway. But, hopefully, fewer people die by irritable bowel syndrome.
What then? Follow the best investors. Diversify through their portfolios. Specifically, buying more shares recently acquired by Warren Buffett.
Mastercard is a new choice. It shares for $ 54 million. Buffett is an investor population, so it would look at their actions on health (bet a population of aging baby boomers in): GlaxoSmithKline and Sanofi. His energetic action, Exxon is trading at eight times earnings.
UPS is a bet on a growing economy also has. But Costco, chosen by his right hand, Charlie Munger, is a bet that we will look at our wallets more carefully. I like Washington Post, one of the oldest elections. Not for the newspaper but by the fact that all profits come from the increasing division of Stanley Kaplan educational testing.
Also, I think Don Graham is one of the best CEOs. Financial action needed. The second largest portfolio of Buffett is Wells Fargo, which purchased during the financial crisis. And a good deed for the consumer: Buffett has bought Wal-Mart in recent years.
Buy these shares and retain them regardless of all the headwinds that means throw against him. This portfolio is diversified, is cheap and the best investor in the world has chosen the following to you. No messes. It's sad but many people fall into the errors when you trade stocks.
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