Wednesday, September 28, 2016

Online trading explained

Online trading is the act of buying and selling securities such as financial products or just any products through an electronic network. Some of this products may include currencies , stocks and bonds. Practically anyone with a computer or a smartphone can trade online since no papers are needed. 
Online trading has become a very exciting and attractive investment for so many people and this is mostly because of how convenient it is nowadays . The availability and popularity of the internet almost everywhere and the fact that the process of trading is so easy and takes a shorter time than the traditional methods makes it very effective . 
There are also so many online trading platforms to choose from which makes it so easy and fun to trade online. 
One cannot trade online without first choosing a well-fitting trading platform for themselves. The platform you use will directly or indirectly affect the outcome or success of your trade. Finding a perfect and all rounded platform to trade with is getting harder and harder due to the many cases of fraud and misconduct showed by some of the brokers for example in stock trading where the stockbrokers have been the most affected. 
There have been some reports of brokers misguiding the clients and making them lose their investments by giving them wrong information. However, there are some trading platforms like CMC markets which still take online trading seriously and also provide the legit trading tools which you need to assist you to complete the trade effectively in minutes from the comfort of your home. 
Online trading has opened up opportunities for many people as there has been an increase in the number of online brokers too who are also known as discount brokers. These brokers offer the services at reduced price as compared to other brokers who are hired by firms. This has been a viable option for some people and has seen very many discount brokers come up. 
Hiring a broker is a good thing since the person is more experienced in the field than you probably are but it is important to research more about them before hiring them so that you don't fall victim of a scam that will cost you your money and time. There are countless sites that give you the latest news and updates on the online trading market, it is advisable to stay informed this way you know what you are getting into and you will be in a better position to make smart investment decisions. 
Just like other investment projects, online trading can be very risky but you never know whether it might actually work for you as it has for others. We have seen people make millions and billions from trading online. It is a matter of being educated on the market, its trends , and going for it
 In the past, before the internet came along people looking to invest would have to make many phone calls to brokers who would make the trades for them and this used to consume a lot of time and energy. The best thing about trading online is how fast it is to in fact trade , you can do it yourself and at an affordable fee. 
There has been a problem in the online trading market of the new online service providers having to struggle hard to get new clients because the online investors seem not to be interested in changing their providers. The customers seem to be very satisfied with the services they are getting from most of them hence they do not change the providers. This means that the new providers have to find a new way of getting investors.
Online trading may still seem like a big issue to some people because of what the market has grown into but it is really just another opportunity to make more money for yourself. Trading your products online is also a very effect way of getting exposure. Technology has become the centre of everything and some of the most successful businesses have an online presence. 
This has made it a preferred method of making extra money and has seen the online trading providers get to make a lot of money too.

Thursday, September 15, 2016

Are You Investing Enough for Retirement?

George Bernard Shaw probably said it best: “Youth is wasted on the young.” When you’re fresh out of college and starting your first job, setting aside money for your golden years is the farthest thing from your mind. That lack of interest in planning for your future doesn’t negate the proven fact that now is the time to start your retirement savings and learning money management skills

If you do a bit of research on ways to plan for your future retirement, one strategy stands out. It is included in just about every strategic plan that the experts advise: start saving now, keep saving throughout your working years, and stick to whatever goals you set. Invest your savings to see it grow into that next egg you want for your later years.
What’s the plan?
You must have a plan; there’s no getting around that. When you’re working on your investment planning for retirement, the first thing you need to nail down is how much savings you’ll need to fulfill your retirement dreams. Envision what your retirement will look like, then ask yourself – and your financial adviser – how much that dream is going to cost. Take a look at all the different options open to you, then decide which investments will fit best in your individual retirement plan.
Social Security, et al

If your retirement plan has Social Security as its cornerstone, you may want to rethink your retirement planning strategy. The future of Social Security is heavily tied on the political climate of the country, so depending solely or mostly on it could prove risky. Getting an estimate of the amount of funds you may receive from this source can give you a starting point in your retirement plan, however. Also take into account any defined benefit pension benefits to which you may be entitled upon retirement. This can also impact the total amount that you need to be saving now.

Of course, the earlier you retire, the larger a retirement nest egg you’ll need. If you retire later in life, you’ll likely be retired for a shorter time and can get by with a bit less.

The bottom line: how much?

The burning question is, “how much is enough?” The simple answer to that would be, “as much as possible.” A general rule of thumb is to strive for savings of between 10% to 20% of your annual income throughout your working years. That’s every year, not just a few here and there.

In the early days of your career, this may seem like a big chunk of your paycheck. If you can’t muster the full percentage amount recommended, try to at least contribute an amount equal to your employer’s matching contribution.

Check on your nest egg from time to time to see how you’re doing. Most financial planners consider a withdrawal rate of four percent per year to be an acceptable rate of yearly expenditure from your retirement fund.

Do the math, tighten up the belt, and get your retirement savings on the right track. Start saving for retirement while you’re wasting your youth on being young.