• 19Mar

    The lessons we should learn from investors in 2009

    Crisis, Economy, Finance, investment No Comments

    1. Make sure their own funds
    You must understand where their money is invested and why. You can rely on consultants, but at the end of the day, you have the results, not them.

    2. DO NOT RELY ON AN INVESTOR
    Thank God not everyone is Bernard Madoff, but most of the best and brightest of Wall Street lost 40% or more this year.

    3. DO NOT INVEST IN SOMETHING THAT DOES NOT UNDERSTAND
    For years I refused to recommend the shares of Fannie Mae and Freddie Mac for this reason, despite the efforts of various market sources.

    4. EXPERTS ALSO FAIL
    Take all the predictions of experts with a pinch of salt. Some economists predicted successfully 12 of the last four recessions, but some were wrong.

    5. His grandmother was right: SAVE
    A penny saved is a penny earned. In an economy where it is easier to borrow $ 10,000 to find an electrician, this is a problem.

    6. Avoid unnecessary risks
    Most investment mistakes are usually those that you take that and not lost.

  • 03Mar

    Obama uses Harvard for brains as did Kennedy

    Economy, Finance No Comments
    Jody Freeman, professor of law at Harvard University, helped to pressure the government of former president George W. Bush in a lawsuit to regulate greenhouse gases. Freeman is now advising Barack Obama to the president on how best to combat global warming.

    Freeman is one of at least 11 Harvard professors who have joined the government of Obama, the most since the sixties in President John F. Kennedy enrolled at the university intellectuals often based in Cambridge, the state of Massachusetts. A new staff are being recruited from the Department of Economics, Kennedy School of Public Administration and Law School.

    Obama, a graduate in law from Harvard in 1991, is surrounded by intellectuals who, as president, have gravitated toward public service. Bring expertise in public policy and partisan politics, not ideology that characterized the Bush Administration, said Jeffrey Frankel, Professor of Capital Formation and Growth at Harvard’s Kennedy School

  • 22Feb

    Real yields in the U.S. (1900-2009)

    Economy, investment No Comments

    John Auters writer for the Financial Times shows the actual performances (which offset the effect of inflation) in assets available for investment in the United States from 1900 to 2009.

    In this interesting chart we can see how the equity market shares or assets that are more historical yields have offered a 6% year on year. Although it is a very good performance in terms of dollars, it is important to note that this rate corresponds to the change in share price plus reinvestment of dividends to be paid over time. Moreover, if we look at the gray line of the chart, notice the simple appreciation in stock price, has they have surrendered so interannual just 1.7%. Here the importance of the reinvestment of dividends and the power of compound interest. The red line shows the real yield on bonds or fixed income market, which includes everything that is corporate debt, with a 2.1%, and finally the American Treasury notes up to a 1% real return, which Obviously by being classified as instruments of lower probability of default in the world.

    From this graph we can obtain three key findings.

    • The long-term investors perform better in terms of performance and decrease the volatility of their investments.

    • The need to reinvest the dividends received by our assets to achieve optimal results.

    • The long term has had the ability to overcome all the crises of the last century as much of this.

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  • 11Sep

    stablish credit as well?

    Credit Cards, Economy, investment No Comments

    It is very frustrating to know you need a loan, or need to make an investment in your business but when you go to your bank application is denied for lack of credit history. It is very important to understand that having no credit history is much better than having bad credit. The only thing we have to start doing is planning to begin establishing your credit immediately.

    Myths

    Some people believe that if you have a cell phone, or electricity or pay rent this affects your credit, and this is only partially true. If you make your payments on time and do not be late, this information will NOT be on your credit, only when your account is in delinquent status (usually after 90 days no pay) is that this will affect your credit. Your deposit account at the bank also has to do with your credit, but this will help you if you want to establish a credit with your bank.

    Secured credit card

    The easiest way to get credit is to open a secured credit card. To obtain this card you will have to deposit at the bank the same amount of the cash in a certificate of deposit or savings account as a guarantee if it fails to meet this obligation. The bank will give you the card with the same amount (say $ 500) with a competitive interest. This can use the card like any other, remember to make your payments on time and never leave a balance of more than 30% of your card. The money will be invested as a deposit will be returned after a few years and have accrued interest receivable.

  • 05Aug

    Takes to organize your financial crisis

    Economy, Finance No Comments
    After the storm comes the calm. This is the same philosophy that you should have when you have economic problems. This is the vision or you expected the signal to put your life in order. Many people concentrate on their way out of debt without thinking about the reason they have debts first. While you have a plan to escape alive, you should also take into account the things you should do to make sure this does not happen again, and the first step is the organization.

    Organize your home

    An extremely important step to take steps towards a better future is to start by having an organized environment. Simple things like cleaning your house, tend the bed in the morning, put your desk in order, etc.. will help you clear your mind and concentrate on the tasks you should perform.

    Establishing a plan

    The trazarte goals is very important to bring order to your life. Goals give you purpose and help you establish a system of a positive stimulus to move forward. Your goals should be realistic, easy to watch your progress, and always tries to see beyond the target. You have to aim your goals in a lead role and a thorough report on how to do this, this will help you know how you go.

  • 17Jul

    The best financial advice for Retireds

    Economy, Finance, investment, pension No Comments

    I was reading this article from CNN Money entitled “The smartest advice I received (in English)” and I started thinking how to do a Hispanic version of these tips. Among the best tips that are on the list of over 40 are the following:

    * “Do not follow the flock” tries to use your own discretion and informed enough to make decisions concise. The fact that for many does not mean that it will pay off for you.
    * Do what you like “Do not work for money, working with what you like. This will help you feel better as human beings. There is no better job than your hobby full time.
    * “No one becomes rich with his salary” All people who accumulate wealth do not expect that the next fortnight to recover, they think of accumulating wealth and for that there is only one way: Savings.
    * “It is moderate, but not stingy” No boats your money, but he learns to find balance andalusia educarte. For example, do not buy a car last year for which the value of a car is reduced by 80% the first year and most often changes from year to year are minimal.

    What advice would you give to our loved ones about finance to help them have a better future?

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