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Know Your Financial Products: Deposits

Deposit is one of the financial products offered by banks. When we see almost all banks provide products of this one. The currency used can be in the form of the rupiah or foreign currency. Here are some important information regarding the deposits.

Deposit and withdrawal of deposits cannot be done anytime, since deposits can only be deposited and withdrawn within a specified time only. So deposits are often also referred to as saving futures. When you attract deposits prematurely then will be subject to penalty.
Term deposits are varied and you can choose namely 1, 3, 6 or 12 months.
Deposit interest is usually bigger than regular savings. So did deposits is one of the safest investment instrument compared to the other. Let alone the first time the monetary crisis deposit interest rates skyrocket briefly to penetrate 60%. A harvest of the depositors and investors at that time.
It can be said of deposit is one of the safest investment instruments is relatively current, even though it is the yield rate is not very exciting anymore:)
Administrative costs and taxes. Usually for deposit is not subject to tax for depositing under 7.5 million. While the difference with regular savings deposit, free of monthly administration fee.

The conclusions of this paper is, when you want to have financial products yield higher than regular savings and deposits are safe, then it could be the right choice.

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Various reasons when deciding to own a home

For people who already have families, have a home is one of the ideals and the biggest  in life. Who would not want to have your own home ideal, comfortable and beautiful place, containing all members of the family from the heat and rain. Have adequate room with space enough to accommodate the entire family members. The grounds of a beautiful flower and garden accompanied by various small. However, it was not easy it could realize a dream home. In addition because the price is fantastic, to make us have to have specific strategies and tips in order to realize a dream home.

Of the many stories of people in its history has a lot of reasons and conditional that makes someone took the decision to have a home. Well, in the writings of this time let’s see together some reasons the process until someone finally dare to decide to buy/build home.

• Have A Home Used To Have A New Wife. The reason for this is usually often appear on the young men the new Pioneer standalone career/work. If I may guess almost every young man craved this. Because his wife is keen to appease the candidates later as evidence of affection and responsibility then they willingly defer have a wife before having the House themselves. But indeed in practice is not as smooth as imagined. Many things make this dream come true, it’s usually because of difficult revenue as new workers has not been sufficient to have your own home, or other expenses so that the  lengthening the process of embodiment has a dream house. Finally, the early idealism has slowly but steadily began slack off slowly. Until then they become realistic, let alone the prospective wife would “struck by” the others then  alternative decision i.e. married first, the new thinking of Home Affairs.

• When saving results is sufficient. This may be one of the most used by the family. After such a long stay in the wonderful In-laws Cottage or contracted/rent with little by little while set aside earnings to buy/build a House, then eventually after enough then they begin where ventured to soon have his own House. Good with buying from a developer or by building it yourself.

• Forced/parents-in-law. Although it may seem awkward, but we’re sure there’s also a “forced” soon had the House because there was coercion “third parties”, namely from the in-laws/parents. Should we realize there is still a lot of parents who don’t have the heart when seeing their children married, let alone an already pretty long family until recently still do not have their own home. Starting from compassion and do not bear this is finally making our parents often end up forced to urge us so that even after all the way to soon have a home. Not even parents rarely will help subsidize the Fund so that the children could soon have a son-in-law in his own home. Of course this is very  for the sons Because we believe together that we as children of course already has its own planning and timing when and how having a home. But due to not wanting to disappoint the parents eventually willingly succumbing as a kid and maybe with a little “forced” finally resigned to his parents ‘ request. Would later mostly after actually occupies the House itself, we the children would have said “Yeah well,  from got home. Not one of our parents forced us to quickly have a home … “.

What about your own experience? Please share your stories and experiences of Your reasons when deciding to have their own home. Please write in the comments of this writing.

Many investors, both beginners and experienced, are stuck with the statement that investing in bonds safer than stocks. This is not entirely true.

Financial Planner Benjamin Graham said, should be the first to ask, “depending on condition and price as well,” before stating which one is more secure.

An example will give an overview of this concept. Imagine you have two options to invest. First, corporate debt, aka bonds with interest of 8.5% per year. If the company goes bankrupt, you are in the third row who will receive your money back, after the creditors and shareholders get a share of the liquidation of assets.

In a bankruptcy situation like this, usually the controlling shareholder funds are preferred, after the last new minority shareholder of creditors, including bondholders. But each company can also apply different things.

Should you really avoid bankruptcy situation like this because it is very complex and many new investors are not fully aware of the bankruptcy procedure in situations like the one above.

The second option, the shares in a company that did not have debt trading at p / e ratio of 10, with the yield of 10%. Good management, sales grew more stable and higher than inflation. If something happens to the company, the shareholders being the first to be served because no debt especially bond holders.

In situations like this, you will choose to invest shares in the company because it is safer than bonds. Do not be surprised, there are many more reasons to confirm this theory.

Here are a few reasons stocks safer than bonds as quoted from beginner invest

1. Risk stocks similar to bonds, but stocks will be in front of the queue more than bonds if the company went bankrupt. In his book output in 1934, Graham said, in a normal situation (in the sense of risk is not high), holding the shares as safe as bonds. If there is something in the company, shareholders’ funds will be returned immediately after the employees, landowners, and other vendors to get the liquidation.

2. Usually the minimum interest on the bonds of about 8.5% per year but it has not cut taxes, so the net yield of about 5.53% has been cut in income taxes. So about 35% of the yield or profit that you can run into tax. While the stock, the dividend yield is usually about 5% and only 15% of taxable net yield so much as 4.25%. So the difference between stocks and bonds rather than 3.5% but only 1.28%.

3. If everything goes well, dividend stocks have the potential investors could be improved in order to enjoy a higher share of profits from the rate of inflation. This is usually done after the company raised prices of products and enjoy a surge in profits. This can not happen in bonds, because in the beginning you’ve set a fixed interest that can not be changed. If inflation suddenly rose high as the crisis in 1998, is still interest you received as agreed earlier.

If Not Forever More Safely From Stock, Why Many People Think the contrary? The answer, as many new investors who can not distinguish between volatility and risk.

Volatility is a term used to describe price movements are frequent, fast and sometimes very high or very low. A stock may go up or down as much as 50% in one year.

Volatility and risk is not always the same thing. Perhaps both are still difficult to distinguish, because there are still many people who choose to avoid such volatility. For example, people prefer to get a yield of 8.5% per year, although only 5.53% after taxes, whereas about 11% inflation.

Although inflation eroded, many people feel comfortable with investing in bonds is not to have struggled with all the ‘roller coaster’, as often happens in the stock investment.

In conclusion, the bond today is not as safe as before, such as stocks that are already not too risky. All returned to that statement at the beginning, “depending on the condition and the price also.”

So where is the safest according to you?

Investment plays an important role in our survival. At the present time, saving money is not enough, especially with the interest savings are still far below the annual inflation so the value of your money will be increasingly eroded from year to year.

For example, if you have a USD 100 million is stored securely in a bank with an annual interest of 5%. Thus, in one year you will have a Rp 105 million. That number is increasing, but the actual value falls.

With the inflation, which on average is usually around 6% per year, then if one year ago with the money of Rp 100 million you can buy a car, this year the car price to $ 106 million. The money you save in one year was not even enough to buy a car, even with interest the bank.

To avoid this happening, you need investment. The place could be anywhere, stocks, bonds, mutual funds atua property. This last one is the way of investments that do not require a lot of money, but with a fairly high yield.

By investing in mutual funds, money in the long run will result in higher values ​​of inflation. Mutual Fund is an option for potential investors who do not have large funds, lack of time and access to information and want to have a diversified portfolio.

How do mutual funds invest safely? Here are tips for beginner investors provided by the Senior Financial Planner Akbar’s Financial Check-Up, Lisa Soemarto as he said at the launch of his book “Reaching the future with the Mutual Fund” in the Grand Indonesia, Jakarta, Saturday (26/11/2011) .

1. Consult with your Financial Planner (Financial Planning)

There are plus minus if we direct it to the dealer mutual fund, because of course the sale is limited. It is worth consulting with a financial planner because it is an independent profession. So it can be directly recommended products, continues then we will be more confident to invest.

2. Determine the types of mutual funds based on financial goals

Setting usability funds invested in the Fund. Are the funds for the purchase of assets, to fund children’s education, for retirement or for any other purposes in the future.

3. Set a time period based on the investment needs

Set a time period when the funds will be used. Thus, investors can specify the type of Investment Fund that will be purchased in accordance with the time period. Not all of Mutual Funds in accordance with investment objectives.

4. Know your risk profile

Types of Mutual Funds derived are also tailored to the risk profile of investors. This will determine the allocation of Thomasin magnitude of these types of Mutual Funds that have purchased the customizable between investor risk profiles and risk profile types of Mutual Funds

5. Select Investment Managers

Investment Manager’s background can be read in prospekstus Mutual Funds. Select Investment Managers who already have experience in managing a mutual fund.

The following guidelines can you do in selecting Investment Managers:

Select which already have big names
Check the Fund Fact Sheet, if it shows a good performance of return (return on investment since published) is higher than interest rates and inflation rates. Examples of Mutual Funds A ‘return’ since published in 2006 is 100%. Then ‘return’ Investment Fund is a 100% per year: 5 years = 20%. Above 20% is good.
Select which already has a website because we can download Fund Fact Sheetnya and there is an auto debit each month.
Check if the Investment Manager have had problems in the capital markets
Check how much money is managed by the Investment Manager.

Successful investing.

Investments must be Arrested for Long Term

The key to successful investing is the fifth in must be retained for a long enough period of time. This is done to ward off the volatility and risk of loss. The biggest mistake that is often taken by investors is always too ready to protect their portfolios, so often panic when the market crashed and took off the entire investment.

In fact, investors should be sure that the weakening trend that is only part of the cycle that will eventually bounce back, unless it is an investment instrument cycle is nearing its peak.

• Evaluate each investment trends

The key to successful investing is the sixth in a contrary investor, but not against the market. For example, when everyone take action to buy, you must be a seller. Vice versa, when everyone is selling, you must be a buyer. As Warren Buffett said, “you should be greedy when others fear, and fear when others greedy.”

• Know the peak of the cycle of the investment before maturity

The seventh or last key in successful investing is to oversee the investment cycle peak before falling. An investment will reach its peak before it finally entered the downward trend. Indeed peak can not be seen by the naked eye, but there are some features you can consider:

The yield that you get a sudden speeding, higher than that usually you get within a year. Soon this investment cycle will reach its peak.
If all you know, friends, relatives and neighbors talk about the benefits of investment results obtained in the same instrument with you. The characteristics of approaching its peak.
If more people started to stop working and rely on just living by trading stocks through online trading in the stock, or a real estate broker. Examples like these show that both instruments investment cycle has reached its peak, it is time you are looking for a new investment instrument with a cycle that is still young.

Good luck to start investing …

The real estate investment is usually one of the most profitable out there, but it all depends on the type of investments made and properties acquired.

Whether investments in real estate are usually very good but we also have several to give us very good capital, also tend to be long-term investments.

The good thing about this type of investment is that mortgage and they can cover their own investment, but we must also look to leave us some profits.

For investments in real estate is not necessary to be a financial expert or anything like that, we need to know to choose the most suitable properties for us to leave the best possible income.

The good thing about real estate investments is that they never lose value, if not to the contrary, this is always going to increase. Read the rest of this entry »

Mutual fund investments are those made by several persons, which provide money to invest in either stocks, bonds, deposits, etc. All these people are gathered for a fund administration company.

Such companies, working for Commissions, which leave the diversified investment management, but all risk is borne by investors.

Investments in mutual funds, usually a type of investment easier, and you do not need to be very skilled in financial literacy, as well as their investment is very high.

The profitability of investments in mutual funds is very good, not as high as an investment in the stock market, but you can leave good profits, in turn is often a long term investment.

Irrigation is running on this type of investment is medium or low, because the management company is represented by experts in all matters of investment, they make investments in a diversified way. Read the rest of this entry »

The financial analysis of projects is the financial and technical mathematical analysis, and through which determines the profit or loss which may be incurred by attempting to make an investment or any other movement, where one of its objectives is to results to support decision making regarding investment activities.

Also, in analyzing investment projects determined the opportunity costs incurred by investing the time to get benefits immediately, while sacrificing the potential for future benefits, or if it is possible to deprive the current profit and transferred to future to be based on specified investments.

One of the assessments should be conducted to support decisions regarding the investment of a project, referred to the financial assessment, which is based on the calculation of the financial aspects of the project.

Financial analysis is also used to compare two or more projects and to determine the investment feasibility of a single project.

Its aims include:

* Establish financial reasons and indices derived from the balance sheet.
* Identify the impact fund for the use of monetary resources in the selected project.
* Calculate the profits, losses, or both, estimated that future to current values.
* To determine the financial rate of return to be generated by the project, by calculating and matching revenue with expenses, at current values.
* Establish a set of numerical inequalities that give positive or negative for the investment in question.

Read the rest of this entry »