Your Questions About Investing In Foreign Coins

John asks…

What are the reasons to invest property in Brazil?

Justin answers:

Why Brazil

Low Prices
Brazil and the Bahia region in particular ofers excellent prices in a beautiful idyllic setting – property can be anything up to half the price of Spain, and is cheaper than the Caribbean. Construction costs are much cheaper too.
Booming tourism
Foreign tourism is developing fast. Internet travel company Opodo has predicted that Brazil will be one of the top emerging destinations in 2007. From 2007 – 2014, tourism is set to grow at 4.3% per annum. (source WTTC).
Solid economic future
Te BRIC countries (Brazil, Russia, India and China) have all, in recent years, taken steps to reform their political and economic systems in order to compete in the world economy. Te term “BRIC” was originally coined in a 2003 paper by Goldman Sachs, which predicted that this group of countries has the potential to become economically stronger than the current richest countries in the world by 2050. Increasing wealth amongst the population will increase demand for property and push up prices.
No restrictions on Property ownership
Tere are no restrictions on foreign ownership as the government is keen to encourage inward foreign investment. All property in Brazil is freehold.
Local Mortgage Market expanding
Falling interest rates and increasingly accessible mortgages will push up property prices. According to Te Daily Telegraph (13/01/07), only 22% of the population have fnanced their property with a mortgage, compared to 70% in Europe and USA. As banks diversify and develop their mortgage products, the market will grow, and the knock-on efect will be increasing demand for property.
Government economic improvments
President Luiz Inacio Lula da Silva, popularly known as Lula, was elected for a second term in October 2006 with a strong agenda of economic reform and improvement. Under his government, interest rates have dropped to 15.75% from 26.5% in 2003. He is also working to bring down infation – it is currently at 5% after reaching a dizzying 2,500% in 1993. While these fgures may still seem high to us, the improvement within Brazil is enormous.
Getting in early
Brazil’s property market is in early stages of development which means there is lots of room for growth, balanced by the government’s stated policy of “high-priority sustainable development”. Additionally, with the pound strong, UK investors have increased buying power there.
The beautiful People
Anyone who has been to Brazil or who has encountered Brazilians will tell you how passionate, energetic and friendly they are – they embrace a love of life and love a party – their carnivals are renowned the world over! Tey are passionate about life, football, music and food – their heartfelt belief is that life is there to be enjoyed!
Low cost of living
Te cost of living in Brazil can be as little as 20% of that of the UK. Tis means that it is possible to enjoy high standards at relatively low cost.
Increased local buying power
Recent economic growth, the government’s fscal improvements and growing fnancial confdence have meant that Brazilians are becoming increasingly well-of. Tey have increased buying power and as mentioned, their mortgage market is set to expand and grow. Brazilians love their country and are waking up to the possibilities of investment property ownership. Tey are eager to invest in high quality developments for second homes and holiday homes. City-dwellers in particular aspire to owning somewhere they can escape the noise, trafc and mayhem of the big cities of Sao Paulo and Rio de Janeiro.

Steven asks…

I want to trade with coins, but to get intrest too on my holding, how do i do it?

I want 20% of my portfolio to be held directly in foreign coins, but i dont want it to be static, but to get intrest rate on my holdings
i dont know any tool that can give me that, except bonds issued by countries, if there is such, please let me know, and in any case, how do i buy those bonds, for example, if i want to buy colombian bonds issued by the goverment, how do i do it?
thanks alot in advance
by coins, i dont mean old coins, but foreign currency, thanks 🙂

Justin answers:

Trading foreign currency is not done with foreign coins.

To trade in foreign currency, you buy options on millions of, whatever currency you particularly like.

For $5,000, you can probably control more than $1,000,000 of foreign currency. So the leverage is fantastic.

But if you don’t know what you are doing (Coins?) you will lose a lot of money real fast,
Stay away from “Forex” until you have had tens of years of investing experience and are really understanding of markets and what affects them.

Charles asks…

I wanted to invest in unique ventures such as valuble art?Anyone have any other ideas?

Justin answers:

First of all – why??

Why art or other exotic or offbeat stuff? Do you have any expertise to evaluate the advice you might get? Are you really expecting a return on your investment?

As mentioned, art is rather risky and should only be bought if you like the piece and have a *lot* of money (you aren’t even eligible to buy some investments unless you have more than $1/4 – 1/2 million available).

On the other hand, old masters have appreciated greatly recently. See Southeby’s or the ‘Fine Art Fund’ (ref 1) or the Artist Pension Trust as examples – not recommendations.

(BTW, had you heard how Steve Wynn put a hole in his $139 million dollar Picasso?)

Anyhow, there are lots of other odd things to invest in like venture capital [not too odd but risky],
coins,
comics,
trading cards,
stamps,
micro-loans (not bad and it helps people),
cars,
whole businesses,
casinos,
foreign businesses,
etc

Write to discuss if you like.

George asks…

Where should I put my money?

Right now I’ve got about $1500, some foreign money, and a few gold and sliver coins. Disregard college funding; that’s going to be left to my summer job and family help.

If I just want to make this stuff have the greatest amount of buying power in the future, what should I invest in?

Justin answers:

If you do go the CD route, as some have suggested above, consider taking advantage of Patelco’s current promotion and putting $1000 of it towards a 7% 1-year CD.

Https://www.patelco.org/accounts/certificates.aspx

You can probably find a good CD for the remaining $500 in this thread on fatwallet.com about the best current CD rates:

http://www.fatwallet.com/forums/finance/682884/

Mark asks…

Algebra is too hard for me can anyone help me complete it ?

Question 37 2 points Save
Solve.

Mary and her brother John collect foreign coins. Mary has three times the number of coins that John has. Together they have 140 foreign coins. Find how many coins Mary has.
Question 37 answers
21 coins
35 coins
98 coins
105 coins

Question 38 text Question 38 2 points Save
Solve.

Six times a number, added to -63, is -105. Find the number.
Question 38 answers
-42
-252
-7
7

Question 39 text Question 39 2 points Save
Solve the inequality. Graph the solution set and write it in interval notation.

14x – 6 2(6x – 11)
Question 39 answers
(-, -8]
(-, -8)
[-8, )
(-8, )

Question 40 text Question 40 2 points Save
Solve the inequality. Graph the solution set and write it in interval notation.

35x + 30 > 5(6x + 7)
Question 40 answers
[1, )
(-, 1)
(1, )
(-, 1]

Question 41 text Question 41 2 points Save
Graph the inequality on a number line. Then write the solution in interval notation.

-4 < x < 0
Question 41 answers

[-4, 0)

(-4, 0)

[-4, 0]

(-4, 0]

Question 42 text Question 42 2 points Save
Solve.

Attendance this year at the homecoming football game is 174% of what it was last year. If last year's homecoming football game attendance was 33,000, what is this year's attendance? (Round to the nearest integer, if necessary.)
Question 42 answers
574,200 people
57,420 people
190 people
5273 people

Question 43 text Question 43 2 points Save
Solve.

A chemist needs 130 milliliters of a 75% solution but has only 43% and 95% solutions available. Find how many milliliters of each that should be mixed to get the desired solution.
Question 43 answers
70 ml of 43%; 60 ml of 95%
60 ml of 43%; 70 ml of 95%
80 ml of 43%; 50 ml of 95%
50 ml of 43%; 80 ml of 95%

Question 44 text Question 44 2 points Save
Solve.

A chemist needs 70 milliliters of a 69% solution but has only 60% and 81% solutions available. Find how many milliliters of each that should be mixed to get the desired solution.
Question 44 answers
40 ml of 60%; 30 ml of 81%
30 ml of 60%; 40 ml of 81%
50 ml of 60%; 20 ml of 81%
20 ml of 60%; 50 ml of 81%

Question 45 text Question 45 2 points Save
Substitute the given values into the formula and solve for the unknown variable.

V = Bh; V = 63, h = 7
Question 45 answers
70
27
441
9

Question 46 text Question 46 2 points Save
Graph the set of numbers given in interval notation. Then write an inequality statement in x describing the numbers graphed.

[-3, )
Question 46 answers

x -3

x -3

Question 47 text Question 47 2 points Save
Solve.

Jeans are on sale at the local department store for 30% off. If the jeans originally cost $57, find the sale price. (Round to the nearest cent.)
Question 47 answers
$39.90
$55.29
$74.10
$17.10

Question 48 text Question 48 2 points Save
Solve.

The difference of triple a number and is equal to the sum of the number and . Find the number.
Question 48 answers

Question 49 text Question 49 2 points Save
Substitute the given values into the formula and solve for the unknown variable.

V = Bh; V = 12, h = 2
Question 49 answers
18
24
6
14

Question 50 text Question 50 2 points Save
Solve.

Kevin invested part of his $10,000 bonus in a certificate of deposit that paid 6% annual simple interest, and the remainder in a mutual fund that paid 11% annual simple interest. If his total interest for that year was $700, how much did Kevin invest in the mutual fund?
Question 50 answers
$8000
$1000
$2000
$3000

Justin answers:

Maan this is loong!!

Anyway:
1. Let x be john
3x be mary

so: x + 3x = 140 coins

simplify:
4x = 140
divide by 4
x = 35.

2. Let number =x
so
6x + (-63) = -105
6x = -105 + 63
6x = -42
divide by 6:
x = -7

3.
14x – 6 = 2(6x – 11)

14x – 12x = -22 + 6
2x = -16
x = -8

4.
35x + 30 > 5(6x + 7)
35x + 30 > 30x + 35
35x – 30x > 35- 30
5x = 5
x = 1

5.
Cant show the graph here
but the line should be above -4 and doesnt reach 0

6. Let last year = x
this year = x + .74x
so:
x = 33000
33000 + .074(33000)
it will be:
57,420..

William asks…

Is it against ANY law to refuse pennies/coins?

for a store owner/cashier to verbally refuse service to me if i choose to pay in coins, namely pennies? If its on camera can i sue? (CVS)

i needed to buy some pampers and all i had was my coin jar, i could have stopped at commerce bank but my childs pampers were of the essence.
i even offerd to count them.
it was lilke 7 bucks rolled up pennies and $14 in random change, i needed the pampers badly!

Justin answers:

There are a number of opinions expressed here that CVS wasn’t legally required to accept pennies or other coins in payment for the Pampers you were wishing to buy. They’re correct, but what’s missing from those opinions is the authority for those opinions.

Here it is, in the form of a US Treasury Department opinion expressed on the relevant section of the United States Code.

It isn’t that pennies and other coins aren’t “legal tender” – they are – but rather what those words mean in terms of a merchant’s obligations:

http://www.snopes.com/business/money/pennies.asp

“Title 31 (Money and Finance), Subtitle IV (Money), Chapter 51 (Coins and Currency), Subchapter I (Monetary System), Section 5103 (Legal Tender) of the United States Code states:
‘United States coins and currency (including Federal reserve notes and circulating notes of Federal reserve banks and national banks) are legal tender for all debts, public charges, taxes, and dues. Foreign gold or silver coins are not legal tender for debts.'”

“What this statute means, in the words of the United States Treasury, is that ‘[A]ll United States money . . . Is a valid and legal offer [that’s the key word here – Aron R] of payment for debts when tendered to a creditor. There is, however, no Federal law mandating that a person or organization must accept currency or coins as for payment for goods and/or services.'”

“That’s it. All this means is that the Federal Reserve System must honor U.S. Currency and coins, not necessarily anyone else. U.S. Currency and coins can be used for making payments, but merchants do not necessarily have to accept it for all forms of business transactions.”

So what this CVS cashier did wasn’t illegal. Nonetheless, in my opinion, it was scummy of the cashier not to accept coins. Any cashier with reasonable customer service skills should have found a way to accommodate you. One option is that they do so by asking that you carry out the transaction at a customer service counter, so as to lessen the inconvenience for other customers who might be waiting at the regular checkout lines. But they could have found a way.

Complaining to CVS headquarters might be a good idea. But suing them isn’t. We live in a sue-happy society, and despite how strongly you feel about how you were treated, it wasn’t illegal. Your best course might be to let CVS higher-ups know how you felt, and how their employees’ treatment of you affected your family life, its impact on your child or children who badly needed the diapers that day, etc.

You could point out that in today’s economy, many families are hurting and will occasionally need to buy essentials, like diapers and food, with small change. Even families that are doing OK may occasionally only have that means of payment. CVS staff should be aware of that and find ways to serve their customers with respect.

In your communications with the company, it is also useful to be clear about what you are asking for: An apology? A refund, or coupons, or some other form of renumeration for your treatment? (You can decide whether it’s better to be up-front about this, or simply let them take the initiative.) Some promise of a) guidance to employees about how to handle purchases made with lots of coins and/or b) employee training around this topic, either chain-wide or at your local store? The latter would seem to be one of the most important outcomes, as it would help ensure that you and others aren’t again treated in the way you were that day.

Some contact info:

Names of executive officers of the parent company that owns the CVS drugstores, CVS Caremark Corporation:
http://investing.businessweek.com/research/stocks/people/people.asp?symbol=CVS

Contact info for the executive officers:
http://www.cvscaremark.com/our-company/contact-us
(see under “Corporate Contacts”, near the bottom of that page)

General contact info for the drugstore part of the company, CVS/Pharmacy. Even if you write one of the executive officers, be sure to also write – or cc – the customer service managers here:
http://www.cvscaremark.com/our-company/contact-us
(see under “CVS/Pharmacy Customer Service”, the second main heading on that page)

You might also consider writing about your experience – ideally after CVS management and/or customer service management has had a chance to respond, so you can tell the whole story from problem to resolution, if any – on one of the complaint boards such as:

http://www.my3cents.com/search.cgi?criteria=CVS

http://www.complaintsboard.com/?search=cvs

and others you can find through a search on Yahoo, Google, etc.

Donald asks…

Will the appreciating PESO be appreciated?

When the PESO reaches Php 35.00, or less will this value be appreciated by the Filipinos?
thanks for the answers….

would it mean that the PESO should stay in the high Php 50 or even higher for the 10million OFWs and Immigrants? How about the rest of the 80million folks left behind?

How will you appreciate a strong peso? Or do you prefer a weak one?

Justin answers:

For some, yes. For others who depend on the high exchange rate of the US dollar, no. There are two sides of a coin and the issue of the peso appreciating in value against the US dollar has the same theory. No one is more pleased with the decline of the US dollar than the importers and the jetsetters. And no one is more disturbed and anxious with this event than the OFWs and their families, the exporters and the foreign investors who invested in the country like for example call centers.

Ken asks…

Do you think that this will be known as the Great Panic of ’08?

In historical context, think of the long depression era of 1876 – 1896, the panic of 1907, and the Bank Panic of 1932.

Justin answers:

No, I think this will be known as the Pandemic of ’08. More banks will fail. The bailout of Fannie Mae and Freddie Mac puts us in disfavor of international investors. We basically switched their sound investments in US backed Treasuries for junk bonds. If they had wanted to invest in those mortgage buyers, they would have, but they bought Treasuries, which are now getting less valuable. The AIG bailout sets a dangerous trend– we can not bailout unscrupulous companies with unsound management. No one’s insurance policies were at stake, just shareholders investments…ANY market interference causes problems down the road. Banks are now hoarding money, afraid to make new loans at ANY rate, since no one is willing to invest in them, they are doing what they can to maintain some liquidity. The Street.com has a list of problem banks and their ratings, and Dr. Martin Weiss of Money and Markets took it one step further and figured in derivatives to show what banks to avoid. Get your money to safety, then use inverse ETFs to hedge against investments you can not touch, for whatever reason. Dr. Weiss and his colleagues predicted these events, and are on the mark about the future (See their “Plague to Pandemic” video to see how the Wall Stree and bank failures will ripple through the retail sector, affecting companies such as Intel and Google even. No, we’re far beyond just a mere “Panic”….when foreign investors stop funding our Unconstitutional wars and deficit spending habits, no matter how much money we print up, we will be, in essence, bankrupt. I don’t suggest anyone put dollars in a safe at home and think their money is safe….convert it to Gold coins first, and you may be OK. Many people will come out of this richer than before with prudent investing, and with the right information, YOU could be one of them.

Joseph asks…

Trade antique foreign GOLD COINS for income?

Can foreign minted Antique gold coins be traded for income? If so how? Like stocks?Daily? Weekly? Monthly? Thanks

Justin answers:

It can be traded for cash, but not income. The only way it could be traded for income is if you found a buyer and you were willing to let him pay you for the coins over time but that’s not what you are thinking of I presume.

FYI: Gold is one of the riskiest ways to invest and should only be left to professionals and they too can lose big-time.

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Investing in Mini Storage Amenities – What Most Individuals Don’t Know

In contrast to other investment opportunities, investing in mini storage facilities is extremely lucrative with restricted monetary risk. Other than the initial investment utilized to purchase the facility, there is extremely small related or hidden investment price. Unlike other company ventures, a mini storage facility is nearly totally hands off. Function employees is minimum. Many mini storage facilities boast 20 four hour on premises supervision, other people merely use one office manager whose duty it is to lease out and manage the person storage models. Also, when owning a mini storage facility, there extremely couple of recurring month to month costs. Utility charges are usually reduced and there is generally no or small maintenance required of the property.

While other companies invest massive sums of money is superficial and beauty enhancements to lure people through their doors, mini storage amenities merely need to provide basic facilities to retain a strong clientele. Investment in advertisements is also completely up the individual investor. However, the mini storage marketplace is usually a marketplace that does not need the help of flashy or costly ads to draw in clientele. In today’s, purchase and consume marketplace place, everybody needs a small additional area to shop these holiday dishes, winter clothing, or previous furniture. Therefore, a constant stream of customers is nearly assured. And because, a mini storage facility is a need primarily based marketplace (that is customers require to store items regardless of the price concerned) money and power does not require to be wasted on attempting to persuade clients through your doorways with advertisements.

When investing in mini storage amenities, earnings are attained nearly instantly. Due to the reduced recurring expenses related with upkeep, maintenance, and marketing already discussed, as soon as an investor has recouped his or her preliminary investment, a very large portion of earnings is revenue. Current revenue margins will differ based on the number of individual models in the storage facility, location of the storage facility, and the general look of the storage facility. Nevertheless, relaxation assured that the revenue margin will be significant when in contrast with other investment possibilities.

The largest investment associated with investing in mini storage amenities, other than buying the real buildings and land, is the money associated with security. More than marketing, a sense of security oftentimes will bring in those clients. A person is not going to shop their items unless they have a perception that their items are safe and safe. Because of to improvements in technologies, even these costs are coming down. Gone are the days of security guards and guard canines. It is now feasible, for a minimal investment, to install a safety system with dozens of cameras with 20 4 hour recording and playback.

With the current financial downturn and constant negative news reviews about consumer confidence and credit crunches, it can be hard to think about monetary investments. However, the smart businessman looks at the present market and sees deflated costs and reduced investment costs. There has never been a better time to invest money in the market as long as you are smart, financially accountable, and select the correct company. And, due to low recurring costs, large revenue margins, and simple of conduite, that proper market is the mini storage facility marketplace.

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What happened to traditional casino growth now the online casino industry is so big?

Over the last decade online and mobile casino sites have revolutionised the way players enjoy all their favourite casino entertainment. The development of sites like Mobile Casino Australia have brought players all the best entertainment to their PCs and mobile devices and made gaming even more easily accessible, convenient and portable than ever before.

Have you ever wondered what happens to the traditional casino industry when the online and mobile casino industry grows? Has development in land based casinos slowed down because players are getting their entertainment elsewhere?

This is not a case of where did the money go, there is no question as to how the movement of a trend has shifted the focus from one style of gaming to another. It’s a clear cut case of a development of an industry that has, to a large degree replaced the original industry with a more convenient option with numerous different advantages. If you review a site like Mobile Casino Australia, which you can do easily by visiting http://www.mobilecasinoaustralia.com.au/  you will be able to determine just how much the face of gaming has changed since the development of the first online casinos over a decade ago. State of the art gaming and cutting edge technology have influenced an industry that is one of the fastest growing online, and because so many resources and so much money has been pumped into the development of this, land based casinos have not been able to keep up with the incredible range of online and mobile casino sites around.

Traditional casinos have taken a hit and the savvy investors will realise that a traditional casino is not perhaps the wisest choice when online and mobile casino sites are performing so well. The revenue of traditional casinos has been affected and in turn there have been job losses and cutbacks, which result in a major economic repercussion for people employed in the industry. Online casinos don’t require many staff and with fewer players visiting traditional casinos the economic growth has shifted from existing in a tangible world to existing in one online.

Mobile Casino Australia and other popular sites have greatly contributed to the shift in focus from traditional casinos to the electronic versions and we can expect the focus to remain on these online and mobile casino sites for the foreseeable future as they continue to grow and develop on a regular basis.

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Your Questions About Purchased Apps

Ken asks…

How to delete apps from purchased section on the iPhone app store?

I have just noticed that apple have added a purchased apps section in the app store. It has every single app that I have downloaded since owning my phone. Is there anyway that I can delete any unwanted apps that where free or a waste of money?

financi4 answers:

There is no way to remove it other than syncing your itouch or iphone your library after removing the app

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Penny Stock Tips – How Do I Begin Investing in Penny Shares

These days, penny stocks are coming to the focus of numerous traders. This comes as no surprise thinking about the numerous benefits of investing in what others also contact microcap stocks and nano shares. For 1 factor, you can commit a relatively little quantity of money to personal a bundle of shares that can provide for a good profit later on on. For another thing, you can hone your investing and investing skills with penny stocks before moving on to the big guns.

In spite of these advantages, nevertheless, you should by no means make the mistake of pondering that these investments will only cost a penny for your efforts. In reality, you have to exert difficult function in learning the ropes of these small-cap stocks to profit from them.

Then once more, this is accurate whether or not you want to commit in cost savings bonds, certificates of deposits and blue chip stocks. After all, your money is at stake and it truly pays to know the ins and outs of the investments you will be putting them in.

Definition

The initial factor you ought to discover is the definition of penny or small-cap shares. Really, there are 3 definitions based on who you inquire:

* Cost per share on the trading flooring decides whether or not a stock can be considered a penny share, the dollar worth of which is usually set at $5 or much less. In reality, there are shares that really offer for a couple of cents!

* Quantity of capitalization also arrives into perform this kind of that any business that does not meet the capitalization needs of at minimum $50 million issues shares known as penny shares.

* Location of investing – where the shares are traded also determines classification as penny shares. You will find these stocks in More than-the-Counter Bulletin Boards, Pink Sheets and the NASDAY SmallCap Marketplace.

Therefore, if a stock falls into any of these classes, then it is automatically regarded as a penny stock. Also, a penny stock can move in between definitions. For example, a business may exceed the capitalization requirements but if it is becoming traded more than the Pink Sheets, then the shares are nonetheless technically regarded as penny shares.

Investing

When trading in penny or little-cap stocks, you are nonetheless adhering to the principles of trading stocks listed in the Large Boards such as the New York Stock Trade and the NASDAQ. Thus, you have to do your research on the company and the business, carry out your basic and technical evaluation, buy low and offer higher, adhere to the marketplace developments and other sensible tips on stock investments.

Issues to Beware About Penny Stocks

However, there are certain issues that you must beware of about penny shares. Initial, maintain in thoughts that penny stocks are very higher risk investments because of the volatility of the marketplace in addition to the absence of reporting requirements and regulatory control. So, be very careful about investing in companies that you have however to study thoroughly on.

Second, never ever depend on insider information. More often than not, said info is created to lure you into investing in a quickly sinking ship. Always do your study and depend on it as well as on your gut instinct.

So now that you know the fundamentals of penny stocks, you should start obtaining a deeper and wider education and expertise. Your pockets will benefit, that’s for sure.

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Your Questions About Advantages And Disadvantages Of Investing In Stocks

Richard asks…

What website should I go with to invest in stocks? (Points, credit, best answer, etc..)?

What website should I go with to invest in stocks?
I have heard of AmeriTrade, ShareBuilder, etc…

What companies do you all recommend? what is the average fee per stock? what are some advantages and disadvantages to each company and likes and dislies?

will give points

financi4 answers:

I use sharebuilder. I like it, i just use the basic free service. Trades seem to be pretty fast and real time, the site is easy to figure out. Plus i have an INGdirect.com savings account that used to get 3% interest (they dropped it down to 1.5% now) thats linked and i can instantly transfer money back and forth for free where it takes a couple days to clear with other banks that arent affiliated. Its $10 a basic trade, but if you devote a certain % of your pay check and invest at monthly intervals its $4 (i havent tried that yet). If you want a lot of their tools and stuff you have to pay a monthly subscription for the more advanced services, you get a 30 day trial with them and honestly i wasnt that impressed you can find just as good of research stuff for free elsewhere. I think scottrade is the cheapest at $7 a trade but ive never used it, though ive mostly heard good things about it so they might be worth looking into. If you decide to go with sharebuilder send me your email in private message and ill put you in as a referred friend, itd get me 5 free trades and you $25 more to lose in this crappy economy 🙂 i would probably stay away from ameritrade since they seem to be having a lot of financial woos, though maybe theyre fine i havent really paid any attention to them lately

Robert asks…

Which one is better ? having a high salary job or investing and making profits in real state, stocks,…what?

are advantages and disadvantages of each method ? can you make a living just by investing or you need a fixed job beside that ?
Please explain and also mention your own experiences.

financi4 answers:

High Salary Job:
Pros – Job security, insurance, retirement plan, pension
Cons – College degree needed in most cases, 40 hour work week, have to answer to somebody, limited vacation

Investor:
Pros – Work when you want, where you want, take vacations whenever you want, don’t have to answer to anybody, do not need a degree, shorter work weeks
Cons – No job security, a bad decision can cost you greatly, initial capital needed for investment, no insurance, no retirement, no pension

Some people make money solely on investing. But where do you get the money to initially invest? A job. (Or inheritance)

George asks…

How to start investing?

I am 16 years and I am thinking in investing. I know you need money in order to make money, I have about 400 dollars. And I want make it bigger. So what is the advantages and disadvantages of independent stocks and funds. I know the basic concept of independent stocks and funds, but I want to know in detail. And what are they. And what good company should I use to invest in stocks. I know that if you are underage you can get a co-operation from your parents account, that is what I am going to do. (Oh and can someone suggest a good book in which you can use in order to learn about investing). THANK YOU!!
omg sarah I wanted to learn about investing since it would be a correct move towards my future and becuase it is a good way to earn extra cash. I DID NOT ask for online jobs, okay? Sorry if I am being hateful but whatever you said had nothing to do with what I asked.

financi4 answers:

Ok, you need to keep with the times, im 17 and have made quite alot, because of this recession. You need to look for gaps in the market? Answer me this, if the world is in a recession, where are they going to shop? Pound land! I wish i had invested more, however, im only 17, and didnt want to loose my money. I have now £14,000 saved up 🙂
basically, you need to look for gaps. Another one was BP, they were obvioulsy going to get back up, cus they make millions a day, however i chose not to invest. The shares rose by 5% one night!
Yes you do need to look around. I wouldnt buy books, because times change real quick.
Visit the link, and it shows, that you should invest in houses, it says that house prices should go up 5% a year 🙂
good luck, and remmeber its a gamble 🙂

Daniel asks…

Accounting help, please. A company is currently seeking additional capital to expand its operations. ?

Company #1 is interested in investing in the organization and, therefore, would like to have part ownership through the sale of new stock.

Company #2 is interested in providing a loan to the company

Companies have two ways to finance their growth: equity financing or debt financing, right? In equity financing the company is selling stock to generate cash. What are the advantages and disadvantages of selling stock? Debt financing is borrowing money. Is there a difference in the information that a lender and an investor would want? Which would be of interest to the lender and which would be of interest to the investor. What about the statement of cash flows, would this be useful? Explain any differences in the information that you have chosen to highlight and offer reasons why lenders and investors need specific information.

financi4 answers:

Well, if they sell stocks, they lose control of the company. In exchange, they can expand and make more money. But, by selling stocks, they also have a no risk opportunity to expand. If they fail, they do not need to pay back the money generated from the sale of the stocks.
In a loan, the company has to pay back with interest, regardless if they are successful or not. If this loan is large enough, it couple push the company down.
The interest to the lender is to have a strong business plan, which already has a successful track record, and a high interest rate that is back with collateral.
The interest to the investor would be a strong business plan, a successful track record, and a low risk plan that shows reasonable evidence of future profits. Statement of cash flows would be useful to the lender and investor. The investor doesnt want to wait to see their profits. They dont want to wait 40 years to see profits. They want to see it within 3 years. The lender doesnt really care. But, does want to see that the company is definately capable of making their minimum monthly payments.
Each need different specific information because each has different needs as explain earlier.

Mark asks…

Is it better to pay off house with funds or invest for retirement?

I am planning to retire in about 10-12 years and have a windfall from a stock spilt. What are the advantages and disadvantages from paying down my house loan with the funds from the stock spilt or would it be better to invest the money until retirement to take advantage of writing off interest from my mortgage on my income tax? Would buying an investment property be a better solution?

financi4 answers:

Excellent Question! Most people are faced with this.

Let me explain how I think and you should then be able to decide for your self.

When you take a mortgage, the interest paid is tax deductible. Hence even if you have a 6% Mortgage, your effective interest paid is just 3.7%. Where else will you get money at such ridiculously low rates?

I have been with a financial planner and he is pitching me post tax 9.2% which is pre-tax 14%.

So if you don’t repay your mortgage and invest it, you will stand to gain atleast 5%. This implies atleast $5000 more each year for every 100K in Mortgage.

I am myself a realtor, so I understand a bit more in real estate. The way it works in Real estate is very different. Say you invest in a financial instrument, you get a return of 9.2% after tax on the 100K. But if you invest the same 100K in Real Estate, you would be buying a property worth atleast 500K, or 1 Million. If this property appreciates at just 4%, much higher in places like California / Florida etc. If you consider that you are buying a 500K property with 20% down, the return on your investment will be 4% X 5 (Leveraging) = 20% per year. You can manage this investment pretty well using 1031 exchange etc. To be able to defer payment of taxes till retirement.

If you buy a property with a 10% down at 1 Million, your return will be over a 40%.

You need to seek a right reward to risk ratio. If you plan your investments well using a Estate Planner, Financial Planner and a Realtor, you will be able to reap good returns and save money from taxes.

Disclosure: I am a Realtor in San Jose, California working with Century 21.

Thomas asks…

Can someone please tell me about the benefits that CFD has to offer?

People have told me a lot about the disadvantages of “Contract For Difference”. I got to know that it is expensive to run for a long period and it makes taking up of stock difficult unless it is pre- arranged. I was just wondering, there must be some advantages too why people actually still invest in CFD. Can someone please tell me about the benefits that CFD has to offer?

financi4 answers:

Basically it comes down to gearing. You don’t have to put down the full value of the shares, only a percentage of the full value.

Larger gains for smaller initial capital outlay but larger losses also.

Paul asks…

33% Company Stock: Real Significance?

Hi there!

I have been offered a job in a growing company beginning a start-up operation in a new country. I have been offered a basic starting salary and the option to enter a partnership with them after a year. After two years I would be transferred 11% of their stock, after three years, 22%, and after four years, 33%. There are currently two owners. I would be an “equal” partner with them after four years.

I understand that stock values rise if the company is doing well, meaning that you can then sell them for a good price and profit. But does it mean anything for me in terms of cash in hand BEFORE I sell them?

Question one: is it a guarantee that a company will pay out dividends (cash in hand, right?) and use only SOME money to re-invest, or is that something very important to ask? Is there any other way, if dividends are not paid out and I do not sell, that owning stock gets me cash in hand?

Question two. When the offer says that stock will be “transferred” to me, does that mean as a gift? Or am I “paying” for it by accepting an ongoing basic salary without a rise? Or do I pay in real cash, and the term is misleading?

Question three: is there anything else I should know re: advantages and disadvantages of being a company owner like this?

Many thanks!

financi4 answers:

1st… Having stock in a small company doesn’t mean that you can trade it. There’s no market for a stock with 3 owners. Secondly as a insider and large shareholder your shares would most likely be restricted anyway, even if there was a market. You would only be able to sell your shares under certain circumstances after a period of time. Of course I’m basing this on US Secs Law. Look up Rule 144a

You would have a direct participation in profits as a large shareholder but small companies do not usually pay dividends, there is no guaranty of dividends. You will not get cash in hand unless you sell or dispose of your stock in some way.

You would be receiving equity in lieu of cash as part of your compensation package. You will have to claim it as income. If the equity has value, you will have to pay taxes on that value, whether you sell the stock or not.

An offer like this can be a great thing if the company takes off, or it can be a bust. One thing for sure is that you should have an atty look over any employment contract you recieve, as I’m not sure you really understand what you are getting into here, They might say something, but the contract can say somethign completely different. And the contract would stand up in court, should you ever find yourself there.

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