Tag Archives: Investing

Investment Options

As most people will know, the Bank of England base rate – a figure that was barely discussed before the recession – remains at its historic low and looks set to stay there for at least the next twelve months. Whilst this is good news for homeowners, it’s less good for people looking to save and get a good return on their money.

In response to this, banks like Santander have been looking to increase their range of savings and investments on offer, but how do you pick the right one?

Before looking at products, however, it’s worth considering that due to low interest rates, cheap mortgages, and recent drops in house prices, perhaps the best investment out there can be found in the form of property. If you have the means to get approved for a second mortgage, and are willing to put a little work into development, a second home represents your best option for making a good and steady profit.

If property is a little bit out of your reach, you have several options. The first is a tax-free ISA, these come in two forms: cash, and stocks and shares. Cash ISAs generally offer lower rates, but are extremely cost efficient if you’re a higher rate taxpayer because you don’t have to pay income tax on the interest you earn.

Nonetheless, one of the problems with ISAs at the moment is that the inflation rate is quite high. So even the best paying cash ISAs struggle to beat inflation – unless your investments offer a better return than inflation, your money is actually decreasing in real value regardless of the interest rate. This problem at least looks set to be corrected in the medium term with most experts predicting that inflation will tumble.

The other alternative to cash ISAs are stocks and shares ISAs. There are a huge range of these products around and they can offer great returns. However, all stocks and shares ISAs carry a certain amount of risk with them, and it’s down to the customer to decide what sort of risk they’re willing to take on in the hunt for a profit. You can also pick to invest in certain types of stocks, or certain types of companies, in fact, you can invest in stock in just about any format and protect it within the ‘wrapper’ of a stocks and shares ISA, all of which means you don’t pay for the interest that you earn.

Another option that’s attracted a lot of interest in recent months are bonds. Bonds are the company version of gilts, which is the financial world’s term for government debt. Investing in debt is always risky, but the bonds of the best companies represent a fairly safe bet, and a decent return.

Of course, the problem here is that the best companies to invest in – the safest ones – are the ones that offer the lowest rates of return.

Ultimately, if you’re thinking about investing, the best thing to do is to consult an independent financial advisor, and to see what sort of products are available at your local bank. Usually it all comes to a decision between like return and the risk involved in your investment, and only you can make the final decision – but it’s best to only make that decision after thinking about all the options.

Stock Market Investing Tips : Online Stock Trading Advice

Getting out of debt by investing in your future

You might be too much worried because of your existing debts. When you were falling trapped, it seemed like it was not a big deal. You might have thought that the credit card payments can be made later. You also may not have given a second thought before purchasing anything.

Well, because of your purchasing habits, you swiped your credit card excessively and bought one item and then another. One day you woke up and saw your credit card statements and realized that it is now killing you. The only thing you want to do is to find a way and come out of this mess.

If you are trying to pay off your credit card debts, you will have to make larger payments so that maximum portion can go towards the principal and less in interests. Paying just the minimum amount will not help because it is eaten up only in interests and fees and the outstanding balance will keep moving higher. Due to the present economic condition, chances of making more money at work are probably very slim. So how to get out of debts??

You have to concentrate more towards your savings and get rid of excessive spending habits. This will be one big step towards achieving a debt free life. Pay more than the minimum amount on your credit card bill. You may also spend money by investing in yourself so that the cash flow can increase and it will allow you to pay off the bills even faster.

Investing in yourself means that instead of turning your money over to a financial advisor to place in mutual funds, you spend your money on things that will allow you to earn more money in a way that you control. One good way to start this will be by starting a home based business. Start selling a new and unique product, or you may buy and sell books online. Starting a franchise or MLM home based business can also help.

Your step towards a debt free life will become a lot easier of you have any sources of secondary income. Each opportunity will require different things of you, and your past experience may make one option better than the other.

You should have some experience before you start selling and buying your products online. There will be lot of logistics in getting that operation off the ground and a large financial investment. If you are already in debts and do not know much about buying and selling skills, then you might fall deeper into troubles.

If you have no experience about doing a business, MLM home based business is worth trying. MLM home based business has many advantages of a franchise without the disadvantages.

Whichever option you choose, take the money from your business and put it towards paying off your debts. This will speed up the process towards getting a debt free life.