The Convenience of Online Loans

We all need a quick infusion of cash from time to time, which is why popular online loans are some of the most helpful and convenient options we can explore at a time of need. Between the hectic schedule at work and the errands that we all need to run afterwards, who has the time to go out and actually apply for a loan at a local bank? With online loans, these are no longer concerns that you need to worry about, and yet you should still be able to apply for a loan when you most need it.

Online loans are essentially loans that will consider your application without having to come into the office for a face-to-face discussion. Often, these loans post all their loan requirements on a website that you can check. You can then call their number or send them an email to express your interest for applying a loan. With your documents attached, they will then begin assessing your suitability for the loan and if approved, they will deposit the money straight to your bank account.

Now, of course, convenience is not the only consideration that you have to think about with loans. As you may already know, you are essentially trading up convenience for a few other considerations that you need to be familiar with.

  • First, because most online loans do not require a collateral asset, the interest rate may be just a little higher than what conventional loans offer. You need to consider if this is something you want to absorb or if you are better off heading to a bank or lender for a more traditional face-to-face discussion resulting in a lower interest rate.
  • Second, you need to properly scrutinize the identity of the lender just so you are sure of who you are dealing with. Any responsible borrower knows that you can’t be too careful with anything involving money, even if you are the one to receive the money in the transaction. With a bank, you know exactly who you are dealing with; not so with online loans so you need to do your research before applying for a loan.

Online loans are great options for quick cash because it is convenient but it does come with its fair share of concerns that you need to pay attention to. Make sure you do your homework before submitting your documents to a lender so you know the risks and trade-offs that come with the convenience of online loans.

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Steven Anderson: Don't let fears hold you back from investing in equities

Steven Anderson: Don't let fears hold you back from investing in equities

For the past few years, many investors have fled the stock market. Their flight might have been ill-advised, and you could benefit from their experience. Just how significant has the equities exodus been? Consider this: U.S. equity mutual funds
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Your Questions About Stocks And Bonds Are Collectively Known As

George asks…

Need help with crossword for homework. Please Help!!?

2.The democratic platforms in 1936 and 1940 promised to _______ expenses and balance the budget. (6 letters)

5.In the election of 1936 the Republicans nominated this man to oppose FDR. (6 letters)

7.To stop this on the stock market, Congress passed the Security Act, which forbade the sale of stocks and bonds unless they were registered with the government. (11 letters)

9. The new dealers believed they could reduce this by increasing agricultural prices. (12 letters)

13. the purpose of the CCC was to provide jobs and an _____ for young men from ages eighteen to twenty-five. (6 letters)

8. the PWA made loans available to many cities to replace these with low-income housing.(5 letters)

16. This act, known as the Magna Carta of Labor, guaranteed workers the right to join unions and to bargain collectively with emplayers for better wages and benefits.(6 letters)

17. the FDIC increased confidence in the banks because it guaranteed the ____ of bank depositors. (7 letters)

18. One purpose of the REA was to bring the convenience to rural areas of the United States. (11 letters)

19. In 1936 this third party sought to return prosperity to the United States by printing large amounts of paper money. It nominated William Lemke as its candidate. 5 letters

THANKS FOR HELPING!!! 🙂

financi4 answers:

2. Reduce
5. Landon
9. Unemployment
13. Income
8. Slums
16. The “Wagner” Act.
17. Deposit ?
18. Electricity ?
19. Union

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Your Questions About Investing In Stocks

Chris asks…

Investing stocks in Facebook and Apple?

Would it be a good idea to invest money in Facebook and Apple? How much money does it cost for one stock? Would I make money back?

Justin answers:

If you need to ask this question you should not be investing quite yet. Learn what you are doing first. And don’t learn by asking people on Yahoo Answers because they are all idiots except me (that’s a joke, I’m far from perfect myself). Anyway, let’s start learning and look at these two stocks because they are very different.

You should always look at what is called the “fundamentals” of a company before you invest. But before we do that, let’s look at a quote. You find those on various web sites, I like Google Finance.

Http://www.google.com/finance

At the top of the page you will see a field you can type the company name into. Start typing A-P-P-L-E slowly and watch for the symbol to come up. The symbol is AAPL. All stocks have a symbol. You will see that Apple sells right now for about $675 per share. So the minimum you can invest is $675.

Now do the same for facebook. The symbol is FB. You will see the price is $19.34 (it was when I wrote this anyway). Does a lower price mean facebook is cheaper or better? NO!!!!! Look at the bottom of the leftmost column where it says “P/E”. That stands for Price/earnings and it is a good general gauge of the “value” of the stock. Note that facebook’s P/E is 107. Now look at Apples, it is about 16. When it comes to stocks, the lower P/E is GENERALLY a “better value.” There are lots of factors to consider, P/E by itself is not a perfect guide. But in this case it tells you that Apple is fairly priced (considering the fast growth and profitability of the company) while facebook is an overpriced stock that you should stay away from.

Here is a homework assignment for you to start your learning process. Look up these stocks and decide if they are good or bad. Symbols are KO, MCD, AMZN, F, SBUX, and DNKN. Have fun!

Michael asks…

How do you start investing in stocks?

Obviously; I’ve never invested in stocks before I wanted to know where I should even start and how the stock market works. Any assistance will be appreciated.

Justin answers:

The short answer is: don’t start buying individual stocks. You’re competing against pros with advanced degrees in finance. Buy mutual funds or ETFs based on broad market indexes (QQQ is a good start).

If you insist on gambling with your money (not investing), then read these three books before you pretend that you are investing:
One Up On Wall Street – Peter Lynch
A Random Walk Down Wall Street – Burton Malkiel
The Intelligent Investor – Benjamin Graham (a bit more challenging, but a true classic)

James asks…

College class to learn about investing in stocks be called?

I want to learn, and my Economics teacher in high school taught us about them, and I really want to get into it, but it’s a bit complicated.. how could I learn? would a college even offer that? would it be business?
MY QUESTION IS, WHERE COULD I BE TAUGHT ABOUT INVESTING IN STOCKS?

Justin answers:

What about getting a Series 7 study guide? This is the guide stockbrokers study to get their license.

Charles asks…

Is investing in stocks best during an economic depression?

During a depression, stock prices are very low so I could buy a bunch of stocks for very little money and then hold on to it until the market improves and then sell it. But, during a depression, businesses fail. Would it be a good idea to invest in stocks during a depression? Why or why not?

Justin answers:

Not all businesses fail, so long as you do your due diligence and diversify across a handful of solid companies that have the resources to weather the storm then dollar cost averaging through an economic depression is your best option for a gain.

However the concept of investing in a business is that the business operation itself brings value to the company hence intrinsically the stock should appreciate so long as the business model is valid and the management competent hence you should not look to selling unless there are better opportunities. Keeping the investment invested compounds the equity and if it’s a growth stock, defers the capital gains taxes. Just because it has gone up is no reason to sell unless there are better opportunities or you’ve come to the end of the accumulation part of your life.

Joseph asks…

How to does investing in stocks work?

how do you buy and sell stocks? how much do they cost (approximate). is it easy? is it time consuming? are shares and stocks the same thing? how do you make a profit?

Justin answers:

You need a broker to buy stocks. You could use Ameritrade, Scottrade, etc. When you buy a stock you are purchasing a share or % of the company.
Companies have an IPO or initial public offering. This is used to raise money for the company. So for instance in 2004, google IPO’d at $85 a share. That money google uses to further the business. After that they do not receive any money based on the price of the stock. There are millions of shares for a company. So then you use your broker to buy shares. So if you had $850 to invest when Google IPO’d you could have bought 10 shares. So when you have shares you own a percentage of the company. If you happen to acquire more than 50% of the shares of a company then you own the company. So for instance, if Microsoft wanted to purchase Google, they could have bought up a big percentage of the shares. The more shares you have the more you can vote for different things. Example, you could vote yourself to be a board of directors. Every Monday thru Friday the stock market is open from 9:30 – 4. People buy and sell shares for whatever price the market will bear. Going back to google, they are something like $650 a share now. How you make money is if you buy a stock for a price, then sell it for a higher price. As far as time consuming, if you really want to know how your stocks are doing you have to spend alot of time. People spend tons of time, research, etc to try to figure out how stocks will do.

Daniel asks…

What are the basics for investing in stocks? What’s good to put money into?

I’m intrested in trying to invest my money. I would like serious help not someone joking around. I have absolutely no experience in stocks but it’s something I would like to learn and try. I don’t really know how the market works or where I should put my money or anything. Would someone be kind enough to explain it to me and give me some pointers? What are good stocks to invest in? What seems to work for you? Tell me how the whole process works! 😀 Thank you!

Justin answers:

Investing in “individual” stocks takes a lot of knowledge and practice; so I would not suggest doing this until you understand completely how the stock markets work.

Instead visit Vanguard.com and learn about mutual funds, index funds, and exchange-traded-funds (ETFs). Trading funds is less risky than trying to trade “individual” stocks.

If I was starting over again, I would find (4) ETFs that have had consistent returns with strong chart uptrends, and simply invest my money evenly over the (4) funds.

Listed below are some good websites for a beginner.

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5 Things you must never do when in debt

Picture yourself in this position; the company you worked at for the past 10 years has suddenly found itself in trouble. Before you know it, you’re facing a redundancy package and you’re looking for a new job. All the while you’ve been unable to afford even the basic essentials. The question that always comes to mind is ‘What do I do?’ Well, in this article, we’re not only going to tell you what you should do but also what you should never do. Here are 5 things that you should never do when you’re in debt:

1. DON’T pay bills with credit cards –
If you’re already struggling to pay your bills, then using credit cards or loans to pay them will only make things worse. Remember that any balance you put on a credit card will accrue interest and cost you more, meaning that you will likely end up increasing your debt!

2. DON’T ignore your bills –
Don’t just ignore the demand letters. If you do, you will likely end up getting late payment fees/charges and a higher rate of interest being charged on your account. If you talk to your lender and inform them you are in financial hardship, they may be willing to agree to a payment plan. At the very least they will know you are in difficulty and can suggest ways to deal with it.

3. DON’T take out a payday loan –
Payday loans are notorious for being part of the cycle of debt. All of them have very high interest rates and charges that kick in as soon as you miss a payment. They might seem like a quick and easy way to pay your bills during a hard month, but if you’re in financial difficulty then you will very likely be unable to afford a payday loan!

4. DON’T rob Peter to pay Paul –
When you have serious debt and overdue payments, it often seems like a good idea to move money around from one source to pay another. This is rarely a good idea and is often a never ending cycle; if there simply isn’t enough coming in, you can’t manage to pay everyone.

5. DON’T bury your head in the sand –
Most people in debt say they wish they had done something sooner but the majority of them don’t. The problem is that if you aren’t dealing with your debt, it won’t get any smaller; it will only ever increase.

So what should you do when you get into debt? It’s very simple; get expert advice. Debt advice from Your Debt Expert is free and confidential, and easy to get, but the most important thing to do when you find yourself in the situation is speak to someone about it. An expert will give you the right information about how to go about dealing with your debts and is legally obliged to give you the correct advice.

For more Debt news and advice follow Peter Dean on Twitter – @your_debtexpert

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Your Questions About Investing In Bonds

Daniel asks…

How does one actually LOSE money off of investing in T Bills/Bonds?

I am thinking of starting my own T Bill ladder and was warned many times that one would have to be cautious investing in T Bill’s because one could lose their money, however articles and blogs never really specify how (besides the initial investment), Does anybody actually know how you could actually LOSE money?

Justin answers:

With both T Bills, bonds, and long term CD’s, you sign on for a fixed interest rate. If you have to sell any of it before the term is up, and if the interest you are earning is less than current interest rates on similar products at the time you want to sell, your investment is worth less and you couldn’t find a buyer for your $10,000 bond which pays 2% when he could buy a $10,000 which produces 5%. So your bond would have less value to a buyer, and you might sell, but for less money than you paid for it. (He might offer $7500 because he could get more than twice the interest from a different bond.)

Chris asks…

Can a company choose not to pay the interest on bonds that they issue?

I’m considering investing in bonds, issued as subordinated debt by a company. While I doubt that the company will ever go bust, is it possible for it to choose not to pay the interest on a bond, as opposed to simply defaulting?

Justin answers:

Deciding not to pay interest on a bond is absolutely defaulting. On YA there is this misperception that “default” = “debt repudiation”. That’s just not the case. If you miss an interest payment on a bond, you are in default on that bond. That means that the bond becomes immediately due and payable. Since missing an interest payment puts you in bankruptcy, the company will not pay interest on any bonds (and if they did, the bankruptcy court in the US would require that receivers of the coupon payment give it back in a clawback since that was unauthorized preferential treatment of a creditor). That means all the bonds are due and payable.

The “subordinated” part is only important for determining your recovery rate in a bankruptcy.

Robert asks…

I’m thinking of investing in bonds. Is Pioneer Strategic a good choice?

Justin answers:

It is ok for a bond fund but if you invest in the A shares, you need to realize there is a front end load of 4.5%. There are a couple of other things you need to be aware of. There are no load funds that have similar yields and returns such as Fidelity Strategic Income. It has no load and a slightly lower expense ratio about 0.3% lower. It does however have a higher minimum investment amount $2500 vs $1000 if that is a consideration. Another thing to be aware of is that a bond fund such as these might be appealing for their current returns but long term they are not too appealing. If inflation heats up they can be disasterous.

Paul asks…

i need to know about bonds! investing in them??? help?

im soon about to turn 18 and start working and im thinking of saving money to buy a bond, im thinking if i buyt a bond for 20 thousand dollars,, wat happens after tht wat do i get!? people tell me the money doubles and u cant lose in bonds at all? any expert advice? gimme ur e-mail if you know about bonds i would like to chat! thnx!
can someone answer my question??? thts not what im askin lol!

Justin answers:

Bonds are one step above putting your money in a savings account….lucky if you keep pace with inflation/taxes……like Cramer says there is always a bull market out there in the global stock markets…..one of the easiet ways is just following the trend ie Latin America FLATX, Natural Resources RIO, Agriculture POT, Gold GLD, oil USO, at the same time when markets have been dropping you can short them SDS, DUG, DOG, etc… I became a millionaire investing in stocks for 15 years and never invested in bonds…..you want to know how, read The Successful Investor by William O’Neal

Donald asks…

Which online trading tool is best for investing in stocks and bonds?

I would like to start trading and investing but I don’t know which company should I open the trading account with. Can someone tell me which one of the following is the best? and why?
E-trade
Scottrade
TDAmeritrade
Fidelity

Thanks!

Justin answers:

All major brokerage firms provide their clients with on-line services, including trading platforms, latest market & financial news and research.

Customer need to select the site that is best for them. Traders have requirements in a site, while investors have other requirements.

Although most sites are geared to general securities and commodities, however customers may have special needs for the types of products they trade, and the markets in which they trade. For example I use Fidelity for investing. Scottrade for equities trading and ThinkorSwim for option trading

It seems that the most popular firms for on-line investing/trading all of which provide excellent platforms and services are; Scottrade; Chas.Schwab; TDAmeritrade; Fidelity; E-Trade and Thinkorswim. In your situation, you may be best served if you select Fidelity or Ameritrade since they provide more products and services for investing rather than trading

Joseph asks…

Ginnie Mae bonds invest program and the federal government?

Explain the Ginnie Mae bonds invest program with the federal government and how it works. What are the minimum requirements to be involved in the program and other factors involved?

Justin answers:

What Is a Ginnie Mae?

The Government National Mortgage Association (GNMA) operates as an agency of the U.S. Department of Housing and Urban Development.

It buys home mortgages from the financial institutions that made these loans and groups them into pools of $1 million or more. Ginnie Mae either keeps these pools to sell directly to investors or sells the pools to mortgage bankers and other institutions, which market them to investors.

Ginnie Mae or the mortgage banker continues to collect mortgage payments from the homeowners in each pool, and when you invest in a Ginnie Mae, you usually receive a monthly payment that includes both interest and a portion of the outstanding principal. Alternatively, you may receive monthly payments including only interest, and then receive the principal back when the mortgage matures.

These government agency bonds are also sometimes called Ginnie Mae pass-through securities, since the mortgage payments pass through a bank, which takes a fee before passing the remainder of the payments to investors.

Besides providing a higher return than Treasury notes and having the U.S. Government’s backing against default, Ginnie Maes have another advantage: they are highly liquid and can be resold on the secondary market.

The minimum investment for a Ginnie Mae is generally $25,000. Thereafter, the securities are available in increments of $1. Of course, you sometimes can buy Ginnie Maes that are selling for less than $25,000 at a discount on the secondary market, if their interest rates are low compared to more recent issues or if their principals have been substantially reduced. Finally, you can purchase shares in Ginnie Mae mutual funds for less than $25,000. Ginnie Mae funds or investment trusts buy these government agency bonds and offer shares to the public.

In addition to individual investors, a wide variety of organizations buy Ginnie Maes–for example, retirement pension funds, credit unions, real estate investment trusts, commercial banks, insurance companies, and corporations. Likewise, many different types of institutions issue Ginnie Maes–including mortgage companies, banks, and credit unions. Ginnie Maes are readily available and easy to add to your portfolio.

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