Good Investments

  • Why Financial Literacy Is A Win-win For Australia

    Exactly What do Australian 15-year olds share with their peers in New Zealand and Estonia?

    Well, inning accordance with the Program for International Trainee Evaluation (PISA) report, Australian, Kiwi and Estonian teens rank third-equal in the world for their financial literacy skills.

    The PISA research study, an initiative of the Organisation for Economic Co-operation and Development (OECD), discovered just 15-year olds from the Flemish-speaking areas of Belgium and their counterparts in Shanghai comprehended financing much better than Australian youngsters.

    While this is an encouraging outcome it is necessary not to check out excessive into it. In the first place, PISA surveyed only 18 countries for financial literacy.

    And second of all we had to share third-place honours with the Kiwis (Estonia we can cope with), which reveals that Australia has considerable space for improvement in monetary literacy.

    This has been identified by a broad series of stakeholders, consisting of the Australian Securities and Investments Commission (ASIC), which is coordinating a nationwide push to enhance monetary literacy across the board.

    In its just-published ‘National Financial Literacy Strategy’, ASIC lays out an in-depth strategy encompassing school curriculum, totally free info services, guidance programs, industry partnerships and ongoing research.

    ASIC defines monetary literacy as “a combination of monetary understanding, abilities, attitudes and behaviours necessary to make sound monetary choices, based upon individual circumstances, to enhance monetary wellbeing”.

    ” In today’s fast-paced consumer society, monetary literacy is an important daily life skill. It implies being able to comprehend and work out the financial landscape, handle loan and monetary threats effectively and avoid financial risks,” ASIC says. “Improving financial literacy can benefit anyone, despite age, earnings or background.”

    I totally support the effort to raise the level of Australians’ financial literacy. As a monetary consultant I get to see first-hand the, sometimes large, holes in monetary knowledge in the Australian neighborhood.

    Skeptics might argue that the monetary literacy space actually matches the advisory market. From my viewpoint, the much better the grounding our clients have in monetary principles, the more efficient and efficient the advisory relationship.

    With a financially-literate population, consultants can cut straight to the real issues instead of training financing 101.

    Our money-smart 15-year olds augur well for the future. (Incidentally, while PISA deemed it as “not substantially various”, Australia had a mean rating of 526 in the finance test compared to 520 for NZ, which we can take as a win.).

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  • Evaluating Investment Newsletter Ratings

    Most investors are impulsive, and so they make the mistake of investing in the wrong endeavors. Scam artists are all over the web, and if you want to generate wealth, it is crucial that you look into the investment newsletter ratings. Stay away from biased newsletters that provide misleading information.

    If you’re looking for quality and useful information, you can rely on investing guides but be wary of newsletter scams, emails, or text messages. You have to secure assets from reliable information, and so there is a need to check the source of the ratings. By conducting in-depth research, you will be able to check the investment double. When you find unclear info, there is a possibility that the info has other motivations or objectives.

    Publications that require you to invest in small stocks but without any filings with the SEC (Securities and Exchange Commission) should be checked. In most cases, the recommended stock is an unpopular one and will lead to lost investments. If you simply do your homework, you can make an informed decision. Always watch out for inconsistencies. As you determine your goals, there is a need to consult with SEC, NAAD, and other local registry committees.

    Be sure to check the financial reports of the companies that sent you the investment newsletter ratings. Schedule an appointment with the company and ask pertinent questions that are related to your investments. You can easily determine your investing objectives once you’ve found the perfect asset.

    Once you receive a newsletter that is inconsistent, you can take it to SEC or other concerned securities regulator. The law does not regulate the overflowing newsletters online because of the ‘freedom of speech’. Anyone can send out newsletters, whether legitimate companies or scammers. It is up to the receiver to decipher the info that he/she gets. All accessed information should be evaluated and assessed. You will need to ask for an expert opinion and use your best judgment.

    The one major issue with the investment newsletter market is that there are a lot of con artists trying to get you to invest your hard earned money into risky propositions that are probably not going to make you wealthy. In fact, theyre probably send you to the poor house faster than you can blink an eye. Investing in the penny stocks or trading too often are all bad signs of an investment letter, and you should certainly steer clear of it.

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  • Life Insurance Explained In Simple Terms

    The last thing anyone would like to think about is their death. Let alone planning for it. Unfortunately, it is part of life, and if you want to care for your family, even after your death, then this is something you must consider. It is essential to get some general knowledge about life insurance, as this will enable you to make an informed decision when choosing a policy.

    The first thing you need to understand is that there are several different policies you can choose from. Everyone is different. Therefore the type of plan will depend on your needs, as well as your age and health status. We will break the kinds of policies up into two major categories, namely permanent life insurance and term life insurance.

    Term life insurance policies are only valid for a specific period, and it is much more affordable than permanent life insurance. The term can be 1, 10, or 20 years The death benefit will only be paid out to the beneficiaries if you pass away during that period. Should you reach the end of this period still alive, your protection will end. With many insurers, you have an option to renew the policy at this time. This policy does not build up any cash value.

    Permanent life insurance can be limited to a certain age, but mostly it covers you for the duration of your life. If it is a limited policy, the cash value of the plan will be paid out to you when you reach the specific age. Contrary to term life insurance, this policy builds a cash value. For this reason, you will be able to withdraw money from the plan to pay for some necessary expenses. The other great thing about these policies is that the value it builds is tax-deferred. However, this usually only applies when the insurance policy is in force.

    Permanent life insurance can be divided into two kinds of policies, namely universal and whole life policies. The advantage of full life insurance is that the premiums are fixed. It will pay dividends under certain circumstances.

    The premium payments of universal insurance can be changed by the policyholder. This can be an advantage if you suddenly have a change in your lifestyle, maybe due to a life-changing event in your life.

    If you are interested in long-term insurance and life the fact that your policy will be building cash value over time, then permanent life insurance is perfect for you. The most prominent reason people instead buy term life insurance is that permanent life policies are usually more expensive. The final thing you should keep in mind is that your death benefit will be removed if you take out a loan against your policy.

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  • Nuggets of Investment Wisdom For Personal Finance

    If you want to be the best then you will have to learn from the best. Investment gurus are there to help beginners to start on the right foot. It all starts with taking care of the cents and the rest will fall in place. A solid primer on how it goes is all you need.

    Warren Buffet

    For more than 50 years, Warren Buffet’s investments have been nothing less than legendary, prompting observers to name him the “Sage of Omaha.” As a result, he has grown his wealth to become the world’s richest man ($58.5 B) several times over. A recent study also reveals he is the best investor ever in U.S. history. Thus, it’s no surprise that many individual investors and investment houses base their strategies on his financial philosophy, which emphasizes value, discipline and patience. If you want to broaden your money skills, get to know more about this surprisingly frugal and altruistic financial genius and check out his holdings via Stockpickr.

    George Soros

    George Soros is a Hungarian-born business mogul, investor and philanthropist who is best known for closing one of the greatest trades of all time, which earned him $1 billion in a single day. That trade, which involved short selling the British pound, earned for Soros the reputation of being “The Man Who Broke the Bank of England.” Soros is a short-term speculator who makes huge bets on day-to-day currency rate movements, and the price fluctuations of commodities, derivatives, stocks, and bonds. His extraordinary investment track record is highlighted by the 30% average annual return generated by his Quantum Fund from 1970 to 2000. George Soros is also a prominent supporter of human rights, public health, education and other democratic causes around the world.

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    Now there are books that you can read and get very good information on investment. You can save time and money by knowing what to go for straight. You will get to learn some very fascinating facts for instance, before you make money, make friends.

    Jean Chatzky for Money Management

    I’d recommend Jean Chatzky to people who aren’t really in debt but want to be in control and happy about their finances and particularly to women who have decided to take control of their money.

    I became a fan after reading her book You Don’t Have to Be Rich. The book focuses on two themes: first, finding balance in your life so that you can be happy even if you’re not rich; second, managing your money so that even if you don’t have a huge income, you can build wealth.


    Suze Orman for Personal Finance Education

    I’m not as fond of Suze Orman as I am of Jean Chatzky. I’m not entirely sure why, something about her doesn’t appeal to me as much.

    I do admire her motto: “People first, then money, then things.” From what I’ve read, she seems relationship-oriented. She emphasizes that money isn’t everything. And on her show she addresses a lot of relationship/money questions.

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