• Investment Ideas

    Becoming an successful Investor

    Some 80 to 90 years ago when our forth fathers were starting their lives and careers, the only option to
    invest they have at that time was to consult a local broker in their town. Every time they have to make a
    trade of stocks, mutual funds or shares they would have to pay an amount to the broker as their fee or
    sometimes they would have to pay a yearly fee for their trades. As this was the only option it worked
    perfectly and our forth fathers retired not depending upon their insurance policies. So if we want to
    invest now in our age we can use the same method too but the up gradation of technology has made
    our life easier and gave us some new ways to invest even without a broker. These methods are easy to
    use and we can save a lot of money by using them and the chance of getting profit is very much higher
    in these scenario.
    Reasons you want a broker
    Even though the internet has revolutionized all the industries but this industry of brokerage is not going
    anywhere because of the amount of interest people have in the field of investing. Every town contains a
    small brokerage or a full time brokerage service provider for the people of town. Their aim is to provide
    the service for the people who want to invest money for the betterment of their future and some for
    investment. If you do not know a bit about how, where and when to invest and you are afraid to make a
    decision or you want that your decisions should be taken by the professionals and if you want to get one
    on one conservations with your service provider then you need a brokerage of your town because if you
    exhibit one of the above habit then you need a brokerage. You can use a broker and there is nothing
    wrong in it if you are comfortable with it but in this case you are missing to boost up your investing
    potential because you are not stepping towards DIY investor.
    Brokers might be expensive
    If you ever have invested money you should have aware of the fact that there are two type of
    brokerages services the one is the commission based broker that charge a fixed percentage every time
    you invest in a stock for example if you are investing $1000 then your broker will charge you like 5% that
    is $50 for that investment and you will be left with $950 for investing. The other type of service is the
    fee based broker that charges a yearly fee that is a fixed percentage of your total worth. The
    commission based broker might invest your money in a way that gives him more profit but it is not good
    for the market so the federal reforms has enforced the brokers to become fee based brokers and now
    they charge only 1.36% of your yearly investments that means if you invest $1000 a year than in this
    case you will be only charged $13.6 until your others assets are included. Hence that provides a saving
    opportunity to the investors.
    Online brokers are cheap
    There are many online applications and websites that now help you to invest money without a broker
    and sometimes without the trading fee. If you are user of Schwab, Vanguard, Fidelity etc you can use
    their broker option for a very small fee and you can also invest by yourself without using any broker and

    if you are aware of what you have to buy like the mutual funds or ETFs you can directly buy them and
    the only fee you will have to pay is the trading fee and you can save the trading fee also by buying the in
    house funds that you can find the in the list that is on their app and these mutual funds includes mutual
    funds and ETFs.
    Investing by yourself is so much satisfying you can save a lot of money and can gain a lot of experience
    by doing it yourself. As you are investing in the mutual funds online the broker expenses are only 0.03%
    to 0.15% that are extremely low as compared to the other. So if you are investing $1000 then you would
    only have to pay a maximum of $15 from your account. By following this method of investing you can
    save a very big amount every year and you can invest maximum of your amount by following these
    methods. When we talk about this method on life time scale you will be amazed to know the amount of
    profit that you will earn.
    Robo Advisory
    You will be amazed to check the stats because you will get to know that most of the successful funds are
    run by the computers. As the traditional brokers are not going anywhere but they are becoming less
    popular and common. Many of the online investing companies has introduced their own Robo Advisor
    app which have some mutual funds and ETFs to deal with. The companies will charge you a small
    amount and for some this function is free. Your portfolio will be managed by a computer and it will
    invest in the mutual trade funds and the ETFs according to you priorities from the portfolio. So if you are
    not yet ready to for do it yourself investing and you are not willing to pay to the brokers that charge you
    a very big amount then you can go for robo advisory because as it will charge a very less amount and it
    we be safe as your portfolio will be managed by a computer. The robo advisory is a mandatory phase as
    the computer does not become too aggressive towards investing and your amount is invested safe
    according to the priorities you set. They buy low cost mutual funds and ETFs. Many websites like
    Betterment, Wealthfront and Charles Schwab has introduced their own robo advisor so people can save
    more.

    The most famous and successful investor Warren buffet also says that you do not need a broker all the
    time to invest. As the technology has automated the way of investing and with the introduction of robo
    advisory it is very easy to invest and earn. So these were some tips for becoming a successful investor
    and doing the investing process by yourself. This will help you a lot to step up in to the world of do it
    yourself investing.
    Drop a comment below in the comment section and also share your experience of investing money and
    saving the heavy fees you pay for the investments all the time.
    Have a good Day!

  • Investment Ideas

    Best Ideas to Invest Intelligently

    Everyone around wants to earn passive income so that they could spend their future life in peace
    without working. But for that you have to invest money or start a business. Investing money is not as
    simple as you think and if you need results like that you won’t have to work in your future and enjoy
    your life by resting at home. Earning passive income and trying to work for that has a very big impact on
    your life. Have you ever thought what if you got sick in your 60’s or 70’s then who will earn for you and
    what will be your source of income? To overcome this you have to work to get passive income and the
    easiest way to earn passive income is to invest your money.
    As you would be now thinking who you can invest so that you can get the maximum results. There are
    some tricks for that and today in this article I have come up with some ideas that will help you invest
    your money intelligently and you would earn a maximum profit. Everyone has his own plans but the
    factors you should consider here is your age and income. Let’s start with the 1 st idea,

    1- 401(k)

    This a savings plan that is mostly offered by your employer in which a specific amount is being cut off
    from your income every month and is being invested. One of the benefit that 401k provides is that you
    won’t have to worry about the income tax on investment made at 401k. To get the maximum from 401k
    make sure you match your employers match. To explain that let me give you an example that your
    employer offers a 50% of match on contribution up to 6% and now you are paying 6% of your pay for
    401k then your employer will pay the 3% of your contribution every money. That is a good amount for
    savings though and if your employer does not offer a match it is still worth it. So you should better be
    looking up to this to take a start. You could pull out your amount with profit at the end of your
    retirement.

    2- Savings account (online)

    Saving money in your traditional bank is not intelligent anymore as your bank pays you very less interest
    rate that is not making a big difference in your life. Now a days there are online banks that gives a big
    amount of interest rates in compairision to your traditional banks and you can also open your account
    for free and manage them for free. You should use these online funds for short term goals and you
    should first save an emergency fund before going to any vacation. One of the benefit that these online
    bank account gives to you is that you can easily pull out your money whenever you are in need. This
    could not happen in your traditional bank or in your 401k plan where you will be charged for that. CIT is
    an online bank where you can get interest rates as high as 1.85%. In these type of banks it is very easy to
    invest like you can connect your debit card or credit card with it and set a percentage that should be put
    up in to your savings account every month. By this you would be able to save good without disturbing
    your budget and you would also earn a good amount of profit on that too. These savings accounts are
    one of the best methods to save a good amount of money.

    3- Crowdfunded Investments

    Crowdfunded investments basically means that a lot of people from different places invest in a single
    mutual fund and that fund could be a property share or something else that can give profit and after
    that when that mutual funds gives profits it is shared between all the participating members. To get the
    maximum benefit you should look for real estate crowdfunded investment. You can earn about 8% to
    12% of profit or even more in some cases in these type of investments. There are some online
    companies that will help you out in this regard. For example there are companies like Fundrise, Equity
    Multiple and Realty Mogul that help you invest in residential or commercial properties with as little as
    $500 to $1000. The profit could be different according to the type of investment you choose. There is
    another platform named as Lending Club that provides loan to people who are in need of that for short
    period of time. My suggestion to you would be that you should take a start from another investment like
    401k and then after spending some time in that then you should look for crowdfunded investment.

    4- Mutual Funds

    If you are looking for long term savings then you should go for mutual funds as they are a pool of money
    developed by other investors. You should make a portfolio of stocks or bonds to make the best out of
    mutual funds. You need not to worry about the profits as these funds are managed by professional
    managers who work for it all the time. In order to invest in these mutual funds you had to go through a
    brokerage account but if you want to save money from these brokers you can look for online companies
    like Vanguard or Fidelity as they charge a little or no fee.

    5- ETFs

    ETFs are similar to stocks. Exchange Traded Funds mainly known as ETFs are a type of stocks or
    securities that enables you to access a number of markets around the globe. These type of funds can be
    bought from stock exchange through a brokerage. These type of investment are best when you are a full
    time investor and you are ready to go with the flow of stock market and take necessary risk where
    required. You have to set your goals and make a portfolio so that you could have a clear image of where
    and who much to invest. ETFS comes with many benefits like you won’t have to pay any sales fee. In
    these kinds of Funds you would have to pay a brokerage commission.

    6-CDs

    CDs is a bit different from other kind of investment funds. CD means certificate of deposit and here you
    would deposit your money for a fixed amount of time and you cannot take that amount out in that
    period unlike other online savings account. And if you would take out your money you would be fined so
    there is no benefit of saving then. The CD offers you a big amount of interest on your deposit but you
    have to wait for your time. The time limit depends upon you and the time you set for your deposit is

    called the maturity time and the interest rates are fixed. This is a great idea if you have an amount that
    you do not need for a time. This kind of deposits are risk free and you do not have to pay any kind of fee
    here. To explain how much you would earn let me give you an example let us suppose you deposit
    $10,000 at an interest rate of 2.5% for 5 years you would get $1250 for that after the maturity time.

    7-Investing for a longer period

    One of the best way to build up an empire for your future is the stock market. You could definitely get
    that much income in the future after working for some years in the stocks. It could be fun while
    investing in singles stock but this is not a reliable idea for your future. To earn a good amount you need
    to be very consistent with your investing and you should be calm enough to go through the ups and
    downs of the stock market as the shares will sometimes go in loss and sometimes in profits. But if you
    are investing for a longer period of time then one thing for sure is that you would get a very good result
    in the end. This could be a stressful job to do and you would have to embrace a lot of things in this
    process. Famous persons who had become millionaire from the stock markets always suggest to invest
    in the Index funds in the starts because these funds are risk free and gives a good amount of profit. One
    of the thing that matters here is your age because if you start investing in a young age you would be
    able to make a big empire out of it because it will give your money the time to grow. Buying individual
    stocks is never the safe and it is big gamble so if you are not ready for losing your money then you
    should not go for that.

    So these were some of the best ideas that will help you to invest intelligently. Make sure you go through
    them before you start investing. Do comment in the comment section below and also share your
    experience of how motivated are you and who relaxed are you feeling about investing your money after
    reading this article?
    Have a good day!