Financial Independence in a Struggling Economy

With a struggling economy many folks think that financial freedom is not going to occur for them ever. This is not the truth, there’s never been a better time to create your own financial future and take command of your own life without depending on a company to provide your monetary wants. You can provide your own financial freedom during a very rough time.

The news talks about it all the time, corporations having major layoffs that affect thousands of people right now. This is extraordinarily frightful for many because not only are you out of a job, you are competing with all your friends for the most minimal roles available. This is a coarse spot to be in and hinders your financial freedom.

When you find yourself without a job, you lose your entire sense of security. If you’ve been working many years your financial freedom may be torn away from you in an instant. You don’t sometimes have much time to make preparations for a job loss and unfortunately the bills keep coming every month if you have a job or not. If you take your financial future and freedom Probabilities are you will not need to worry about what the economy is doing and you can target what you are doing for yourself and your own private business.

You do not have to be caught up in the downfall of the financial situation of programs make. If you build your own business you can change your life and your financial freedom may supply you with the things you have always dreamed about. This can provide you a incredible amount of time to do the things you would like to do and you will not feel like you are a slave for somebody else’s financial freedom.

When you get financial freedom you select when and where you work and you are not confined to any boundaries. Financial freedom can offer you the power to do stuff the way you need to do them and you are ultimately in charge and in control of your own life. This could be an extremely liberating feeling and will make you feel as if you are actually living any and all of your dreams.

The last tip to get wrapped up in a failing economy that will make you to fail personally; it is possible to take care of yourself and your folks. Financial independence enables you to be your own head honcho and make your own choices. Find your own financial freedom now.



Plan Finances For 2010 in Easy Steps – Tips on How to Improve Finances in New Year

We have entered a New Year. We all must be having a lot of expectations from this New Year. Most of you might have made some resolutions for this year. But have you planned your finances for 2010? If not, then you must plan your finances and take it up as your resolution for this year to follow firmly and strive fulfilling your finance plans.

In the last couple of years of the last decade, the worst global recession stroked the world. World economy is not yet stabilized and is still affected from the consequences of this recession. While the   economy  is moving slowly, growth rate is low and flow of  finances  is also limited. Therefore, in such a scenario, you must plan your finances carefully and make all the efforts to fulfill your plans. In the slow  economy , everybody is saving more but this is not the right step to improve your  finances . In fact, saving touched the record high while spending touched record low. Consumer spending is very much important for the survival of an economy. World’s biggest economy, i.e. U.S. economy, constitutes 70 percent of consumer spending and less consumer spending is the major reason for fragile recovery.

To enhance your financial outlook, this year, you must not only save your money rather invest it properly. Given below are some easy steps to plan easily your finance and enhance your living.

1)Investing your money in stock market – economy is recovering and hence the stock market. After touching the bottom low in March 2009, stock markets are almost up by 59 percent. This impressive growth will continue as business allover the world is now improving. So, if you have cash saved in your banks then this is the time to invest in the stock markets to meet your financial objectives. Continued recovery of economy will power the stock market trading and it will get hotter. However, if you are making mind to invest in stocks then you must ensure that you are doing it for long term. To do this, you can go for, and increase your contribution towards 401(K) account. 401(K) will help you save money appropriately for long term. You must continue to increase saving in 401(K) even if your employer has stopped matching to enhance your long term financial security.

2)Is your credit score accurate? – It is very important for you to maintain your credit score. If you have lost your job in the recent job cuts or just making your mind to switch it then your credit ranking must be appropriate. Many people never bother about credit report but it is an essential element in your life. You must pay extra care to improve or maintain your credit score as an effort to plan for finances. While applying for loans, it can play a major role in deciding your fate.

It is also important for you to ensure that your details in the credit report are correct. Experts believe that around 80 percent of the credit reports contain mistakes and it is responsibility of people to check for accuracy. Credit reporting agencies are not held responsible for inaccuracy in your credit reports.

3)Do you know the new credit card regulations? Government and Federal Reserve have approved new policies and regulations for usage of credit cards. The step has been taken in order to protect consumers from prohibiting unfair practices of credit card issuers. The new policies are taking effect from February 22.

Many credit card companies have planned to increase the fees and rates. Therefore you must get your hands on the changed regulations and read the credit card agreement and related policies regarding fees and rates carefully. So in this year, you must know the new rules to use your credit card properly. In fact, assess right now that would you be able to afford the credit cards with changed fees and rates or not.

It is also to be noted that credit card issuers have planned to increase the minimum payment mark.

4)Have you prepared your will? – It seems away from the topic but an important factor to plan your finance. If you have not prepared your will yet then you cannot control the negative financial effects that will surround your family after you. Better, make a will to ensure that your property gets divided after you, the way you wanted.

Also, teach your children about financial responsibility. It would not only help them in their life but also guide you the ways that you can use to manage effectively your finances.

Planning is very essential for attainment of any objective in your life. If you want to enhance your financial capability then start planning your finances. The article talks about ways you can manage the flow of your finances, investment options, etc.



Top 10 Books on Personal Finance

Many people entering the workforce today are making money, but are struggling to manage it. For many, personal finance is a mystery. They struggle to understand the basic personal finance principles, concepts and ideas.

Are you one of those who are struggling to manage money? Then seek assistance from the experts in the field. Read their books and learn the basics of personal finance. Gain the knowledge of saving and compounding your wealth over a period of time.

Here is a list of top 10 books on ‘Personal Finance’ which will help you manage your finances in the right way.

• The Total Money Makeover: Dave Ramsey

Dave Ramsey gained popularity as the author of the best-selling book, ‘The Total Money Makeover’. In this book, Dave provides simple personal finance advice on how to get out of debt, no matter how worse the situation is, by falsifying popular myths. He explains the concept very clearly using simple techniques, so that even a layman can understand and follow. The strategy involves how to pay-off debts by focusing on paying-off small debts first, while paying only the minimum for all other debts.

• The Millionaire Next Door: Thomas Stanley

The best-selling book ‘The Millionaire Next Door’, authored by Thomas Stanley, identifies some common traits of Americans who have accumulated wealth. He says that most wealthy people do not live in Beverly Hills or on Park Avenue – they live next door. The author finds common connections among millionaires after conducting a survey on them in U.S. He discovered that millionaires ‘live below their means’ and this is the secret of becoming wealthy. The book “The Millionaire Next Door” examines both sides of wealth equation: saving money and earning money.

• Rich Dad, Poor Dad: Robert Kiyosaki

“Rich Dad, Poor Dad” covers Kiyosaki’s philosophy and his relationship with money. The author has achieved his unique economic perspective from two different persons. The story is about two dads – one, the author’s father, who was the superintendent of education in Hawaii, ended up dying penniless and the other is his best friend’s father, who was a drop-out of school at age 13 and went to become one of the wealthiest men in Hawaii. Kiyosaki uses the story of these two men and their financial strategies which varied a lot. He illustrates the need of a new financial paradigm in order to achieve financial success in the new millennium.

• Your Money or Your Life: Vicki Robin and Joe Dominguez

This is one of the best personal finance books which focuses on how to gain control of your money and begin to make a life, instead of just making a living. The authors explain the concept of “time is money” in a very literal sense and how to transform your relationship with money and finally achieve financial independence. These authors encourage readers to sort out their priorities, cut expenses, and then to seek passive income and retire early in the pursuit of financial independence.

• The 9 Steps to Financial Freedom: Suze Orman

Ms. Orman, a former waitress and stockbroker turned personal-finance adviser, combined practical investment tips with more psychological advice in her first book “Financial freedom”. This book teaches us how to approach money from a spiritual and emotional point of view. She advises people to do nine things in nine steps that are needed to attain financial freedom. She says, when we have power over our fears and anxiety, we have attained success to financial freedom.

• How to Get Out of Debt: Jerrold Mundis

“How to Get Out of Debt” provides step-by-step guide to getting out of debt once and for all. It is based on the proven techniques of National Debtor Anonymous Program. Jerrold Mundis was actually a debtor, and the story is based on his own experience. This book contains real tips and is based on real stories of people.

• Clark Howard’s Living Large in Lean Times: Clark Howard

“Living Large in Lean Times” is a powerful guide to save money. The book covers everything from cell phones to student loans, coupon websites to mortgages, paying electric bills, and beyond. This book paves way to financial independence and wealth. It offers more than 250 tips on saving money.

• All Your Worth: Elizabeth Warren and Amelia Warren Tyagi

Warren and Tyagi will tell you the truth about money in this book. They show you how to balance your money, how to get out of debt, cover your bills etc. They make people learn how to balance money into three essential parts: 1) the Must-Haves (the bills you have to pay every month), 2) the Wants (some fun money for right now), and 3) your Savings (to build a better tomorrow). They help you to get your finances on right track. Warren and Tyagi advice not to keep complicated budgets. In this book, they both simply show a whole new way of looking at money and yourself.

• After Shock: David Wiedemer

An aftershock helps you know how to protect and grow your assets before, during, and after the next global financial/economic crisis. Placing your cash in on the best new investment opportunities will make you know which jobs, careers, and business sectors will gain the most rather than lose when asset bubbles collapse around the world. The author says that for those who act quickly, there is still time to protect yourself, your family, and your business in the coming ‘Aftershock’. Thus, this book shows you what to do right now to protect yourself from aftershock before it’s too late.

• The Money Book for Young Fabulous and Broke: Suze Orman

Suze Orman, the world’s most trusted expert on money matters advises on how to get out of generation’s debt in her book “The Money Book for Young Fabulous and Broke”. She depicts the specific financial reality that young people encounter today by credit card debt, student loans, credit scores, buying a first home, lack of insurance (such as auto, home, health) and the financial issues of the self-employed. She says that this generation should be aware of the urgent need to take the matter under their control.

We hope these books help you attain financial freedom.



The Philippines Economy

The Philippines is the thirty-seventh largest economy in the world in terms of purchasing power parity, according to the International Monetary Fund. The country has a mixed economic system and it is Southeast Asia’s fastest growing economy. The GDP growth rate was of 7.3% in 2007.

Experts believed that the Philippines would become a great economic power in Asia after the end of the World War II, instead of Japan. The population speaks English, the country was allied with the Americans, it had rich natural resources and able workforce.

In 1984 and 1985, the Philippines went through an economic recession. Economic conditions were reduced by 10%. The political turbulences during this time also had a negative effect on the country’s economy.

Filipinos went searching for jobs in other countries, as they had no opportunities at home. They are spread throughout North America (more than four million), Europe and the Middle East. There are eleven million Filipinos working abroad, almost 11 per cent of the entire population.

Agriculture and industry are the most important sectors in the Philippines. Agriculture products produced in the Philippines include sugar, rice, bananas, mangoes, coconut, pork, eggs and corn. The service sector is starting to dominate. The manufacturing sector is also very strong: textiles, electronics, garments, automotive parts and food processing. The industrial sector is focused on the urban regions like the Manila area.

Heavy industries are dominated by the production of glass, fertilizers, cement, steel, iron and refined petroleum products. Mining, one of the country’s most important industries, is also very developed, as the country has rich reserves of nickel, copper or chromite. In the Palawan islands, gas has been recently discovered. The Department of Environment and Natural Resources is not equipped well-enough for the current mining activities. The Philippines has created the first commercial scale geothermal energy installation in the world. Underground heat sources generate 25% of the country’s energy.

The Philippine economy has grown 7.3 per cent in 2008. Recently, the national debt has been reduced considerably. The country is doing better, although a consumer surplus is still a long way off. There is still the need of higher sustained growth rates in order to reduce the levels of poverty and reach its full potential.



The Basics of Stock Finance

Introduction:

The field of finance includes markets with diversified functions. Some of these markets assume a role of financing and so they are called capital markets and they hold the financial market by long-term financing and the money market by short-term financing. The financial market is thus presented as a component of the capital market which allows the   financing  of the  economy . It is the place of emission and exchange of the transferable securities, mainly the actions and the obligations. The stock market or the share market is the wing of the  economy  where the activities of stock  finance  takes place.

The organization and the structure of this market:

It is an official and organized market in which the exchanges of foreign transferable securities take place under the guidance of a centralized authority. The operation of the financial market rests on the activities of the share market. It is where investors from within the country and the foreign investors invest their money and participate in buying and selling of the stocks. This trade leads to huge amount of profit generation which is then utilized by the government and the private sector for various development activities. The government earns revenue from stock  finance  and so it is necessary for the swift functioning of a country and its  economy .

The economic growth of a country can be ascertained from the amount of Foreign Direct Investment (FDI) that is received by its stock market. When investors have faith in a country’s financial possibilities, they invest in that country for long term returns. The individual citizens of a country can also benefit from it by investing smartly on the shares of companies that are profitable and have shown rapid improvement in their annual balance sheets.

Stock finance is ideal for aspiring entrepreneurs who intend to make good money in a short period of time without having to start any venture of their own; they can instead be share holders in established companies and reap the benefits. However, it is a very volatile and risky market and investors can also end up losing a considerate amount of their money when the economy is not doing very well. For example, during the recession period, stock value of various Fortune 500 companies decreased by more than 25 % which resulted in huge losses for the investors. Thus, it is necessary to have a good understanding of stock finance before taking the risk of investing in any shares.



George Washington on Eurekonomics

Americans today have been misled and misinformed about almost every aspect of wealth creation and personal financial management. Americans today need to relearn what the Founders knew about money.

Joseph J. Ellis in His Excellency George Washington [Vintage books, NY] writes that the Father of our Country, unlike Thomas Jefferson and others from the elite class of the day, demonstrated “…concern for his own economic interest…” The author adds parenthetically, “Perhaps this is the underlying reason Jefferson and so many other[s]…would die in debt, and Washington would die a very wealthy man.”

It may also be one of the main reasons the founders and citizens of early America chose George Washington to be our first President. Early America knew that looking out for our country’s financial well being was a primary duty of our Presidents.

Washington, unlike many of his peers, chose “to act in a direct and personal fashion to recover his own independence from” the British government and their elitist allies in business and commerce who treated Americans with a certain amount of disdain and ignored their cries for justice and pleas for liberty.

How did Washington unfetter himself from the British elite? The Ellis biography describes it this way: Starting in 1766 he abandoned tobacco [a British obsession at that time] as his cash crop at Mt. Vernon. From then on he grew wheat, constructed his own mill to grind it into flour, and sold the flour in Alexandria and Norfolk. He also built his own schooner to harvest the herring and shad in the Potomac and sold the fish locally. In addition, he purchased a seagoing vessel to carry his flour, fish, and corn to such distant markets as Lisbon.

Washington continued to diversify. He developed a full-scale spinning and weaving operation. He made it quite clear that he was determined to defy the pattern of indebtedness to the British Behemoths that swallowed up his contemporaries and that he was determined to free himself from the clutches of the British Behemoths of the day.

What the Father of America and the other Founders discovered and understood in 1766 was that people that are subservient to government or to the businesses, unions, and lobbyists that maintain symbiotic relationships with government do not have liberty and are not free. George Washington knew EUREKONOMICS in the terms of his day.

Americans today do not.

Americans today have been misled and misinformed about almost every aspect of wealth creation and personal financial management. Americans today need to relearn what the Founders knew about personal finances; they need to practice what the Founders practiced when they created wealth and managed their personal finances.

Americans today are blessed with advanced financial products that the Founders were just beginning to develop. In particular, Americans in the 21st century have access to the most powerful, versatile, and flexible financial product ever conceived: participating whole life insurance, which allows today’s Americans to control the money that flows through their lives.

Remember the Golden Rule: Whoever controls the gold makes the rules.

To the extent that others – especially governments – control the money that flows through the personal economies of individuals, to the same extent those others deny Americana their individual liberties.

“Individual liberties create and nurture free markets. Free markets encourage and nurture healthy personal economies. Limiting individual liberties necessarily damages personal economies. Damaging personal economies necessarily limits individual liberties.” – Dr Agon Fly

Think it through. Who among us has the greatest liberty? Is it not those who control and are good stewards of their personal economies?

~ The construction worker that lays aside extra ready cash to carry him through a tough winter or a downturn in new housing construction

~ The nurse that adds a specialty to her RN degree and makes herself more employable even during the bad times

~ The small business owner that reduces inventory and overhead at the first sign of reduced sales to insure the jobs of his or her employees

~ The entrepreneur that nurtures his business to create personal wealth

~ The retiree that opts to reduce current income to accommodate a longer life span

Unfortunately, many Americans have been led astray, have relinquished control of their money to investment advisors, qualified retirement plans like 401(k)s, and have opted-out of actively creating wealth and managing their personal finances.

Beginning during the Carter administration and recurring during the Clinton, Bush, and especially the Obama Presidencies, the federal government, financial entities, and social institutions seized control of more and more of the personal   finances  and  economies  of individuals and families based on the faulty premise that BIG knows best. The effect of these decisions on personal economies is apparent today in the painful rate of unemployment, the high foreclosure rate, falling investment values and returns, and the tsunami of bankruptcies.

However, in the past few years, an old and thoroughly proven idea – that each American and each American family can and should keep control of the money that flows through their lives – has risen like a Phoenix from the ashes of a conflagration of disinformation and misinformation that started in the 1970’s.

We call this resurrected idea EUREKONOMICS!

EUREKONOMICS aims to show Americans how to create a personal economy that lets them…

Thrive in good times and bad, Grow rich without risk, and Secure wealth without worry by taking advantage of the power, flexibility, and versatility of participating whole life insurance and following the same set of rules that the Founders followed.

Here is a list of the 13 Immutable Laws of EUREKONOMICS that the Founders knew and followed.

1. The Law of Liberty: When others – especially governments – control your economy, they deny your personal liberty.

2. The Law of Economic Know-How: Successful personal economies rely on knowledge of personal economic principles, understanding the application of those principles to one’s personal situation, and wise decisions about how and when to apply them.

3. The Law of the Behemoths: The economic system in the modern world champions the economies of Behemoths – big government, big unions, big bureaucracies, and big businesses – at the expense of individual personal economies.

4. The Tax Law: The government always writes tax law to its own advantage. Tax deductibility is a trap.

5. The Foundation Law: Every successful personal economy rests on the foundation of accessible cash money and participating whole life insurance policies are the best product available for that foundation.

6. The Law of the Four Pillars: There are four, and only four, measures of successful personal economies: freedom from debt, ready cash, secure income, and a legacy.

7. The First Law of Wealth Creation: You must manage cash flow to create wealth.

8. The Second Law of Wealth Creation: You cannot buy wealth.

9. The Law of Debt: Debt is never good. It can be useful and important, but it is never good in a personal economy. Borrowing money from others is NOT how the rich do it.

10. The Law of Speculation: What conventional wisdom refers to as an investment is really a speculation according to Benjamin Graham. Speculation is gambling.

11. The First Law of Investing: Investing is appropriate only for a very small number of Americans.

12. The Second Law of Investing: If you invest, invest only from savings, never from income.

13. The Law of Returns: Average rate of return, whether illustrating past performance or future results, is useless in managing a personal economy. The actual rate of return – year after year – provided by participating whole life insurance is the surest, safest, and fastest way to wealth

The Behemoths would have Modern America believe that these laws are no longer valid and that we should trust the government, the financial Behemoths, the unions, A-A-R-P and its ilk… NOT!

It’s time for Americans to regain control of their personal finances and to do that Americans need to learn and practice the 13 Immutable Laws of EUREKONOMICS.



Understanding GDP and the Economy

The economy, or GDP, is basically the same. GDP is the gross domestic product of a country and is a measure of the output of that country. Let me explain.

Headlines read, ‘we are now technically in a recession’. What does that mean? A recession is defined as a period of economic downturn. Its exact definition is two consecutive quarters of negative downturn in GDP. So today we are actually in recession, not that that would be a surprise to anyone.

GDP is really a broad measure of a country’s output of goods and services. Data will be gathered on the UK’s personal consumption of goods, government expenditures and incomes received by the relevant sectors of an economy such as agriculture, banking, mining, and manufacturing to name a few.

It is simply an attempt to measure the income an economy is receiving over a set period of time i.e. its domestic product. The word ‘gross’ is used, as physical wear and tear on capital such as factory machines, office equipment etc are not taken into account.

Gross national product (GNP) is slightly different in that it measures overseas income which is also added back into GDP.

Is it any use? Well, it depends what you use it for. When we had our last quarter of growth (Jan- April), were we in a good economy that we should invest into? Hardly.

Like everything, information is what you make of it. The last quarter of 2008 showed the largest drop in any quarter since 1980. (1)

Is it any measure of what you should do, or is it simply a report that your stable is empty, and the dust in the distance is a horse. The latter is my view.

I don’t want to know about history, and GDP is simply a reflection of what has happened and where we are, as opposed to where we are going. A large proportion of the UK’s GDP comes from banking and financial services (31%), 18.2% from public admin and teaching, and 13% from manufacturing.

Its easy to see what has happened in the banking sector and why the UK GDP has been battered. Add in a global downturn and manufacturing is troubled. But it’s all a reflection of where we are, the equivalent of driving by looking behind you or at your lap.

In the US for example, there is a belief that GDP is misleading in terms of our well being, and they have designed a genuine progress indicator (GPI). This indicator looks at whether or not the output of services and goods is positively impacting the well being of a population. For example expenditure on criminal justice and pollution clean up are deducted from total increases in spending to assess if there is a net improvement or decline in social welfare.

Interestingly this graph parted company with GDP back in 1965 with GDP on a reasonably constant rise and GPI falling over that period.

GDP also ignores the drawbacks of living on foreign borrowing. So whilst we, as a nation, through our government borrow from abroad, this is not factored in. Deciding where we are is a futile argument. Deciding where we are going is another.

There are simple measures to look at when making these choices. Do we value the noise of house price indices? They are as useful as a spade when you are trying to knit spaghetti. They all pointed to house prices rising at least a year after I had pointed out that completions in property had plummeted. For advice on your mortgage speak to an independent mortgage broker.

Consumer and global expenditure is key as it’s a sign of confidence and you can often see that in advance by walking round the shops – an investment of your time superior to reading about GDP, as you will be there long before the information.

Source(1) BBC



New Economy

The new economy is coming sooner than later.

I am not predicting the end of the world but an end to the American dollar domination.

I have been very disappointed in the returns on my investments and after much reflection I have come to the following conclusion. After following the stories on the gloomy economic markets I believe there will be a currency crisis followed by a shift in wealth. Naturally I want my family and myself to be on the winning side. Here is my prediction on what will happen to the world economy in the next few months.

Global currency reserves have been invested in the United States dollar and about 24% in euro.

The European Central Bank’s insistence on budget-tightening in a recession is forcing Italy’s finances into a deadly spiral and Greece will eventually default on their loans along with Portugal and the rest of the 17-nation euro area. The countries simply can’t continue spending and borrowing without the means of repaying their debts. Slow recovery is based on growth of the economy but the opposite seems to be on the horizon. After the ruin of the Euro many will flee to the United States dollar currency which will bring up the value of the Greenback temporarily.

The United States will have little growth and the Federal Reserve will continue to print the US dollars until it will become almost worthless because of their massive debt. The American house of cards will collapse therefore creating devaluation of the mighty dollar and create massive world economic inflation. The nations worldwide have been living beyond their means for too long and throwing more money towards bankrupt countries will cause total economic collapse.

The medium of exchange has already begun and will shift to precious metals.

Gold will become the new monetary standard and precious metals like silver and gold will increase dramatically in value. Oil and natural gas prices will increase substantially. I still believe in a well planned personal managed real estate investment but would stay away from property investment schemes.

I hope the knowledge I shared with you can be beneficial in your future investment opportunities. Each individual must adapt and correct his or her personal financial situation towards success. You are the only one who can make the right decisions for yourself. The more informed we are the better chance for making the right investments.

Phillip Claeys



Debt is Economic Bondage – Financial Pearl – Credit Card Merry Go Round

Get out on debt and stay out of debt. There are only 3 items that you should consider using credit to obtain. The first would be for transportation such as a vehicle. Consider a used vehicle ( I have had good luck with rental agency used cars ) financed through your own credit union or bank. Second would be a college education, but only if your major was in an occupational field that had good hiring opportunities for graduates. One occupation that will always be hiring is the medical field. There is an abundance of opportunities and openings available, with the aging population. The third item that you should consider using credit to purchase, would be a home. A home which is within your limited budget. All other purchases must be paid for with cash.

The cardinal rule is to “live within your means”. If you do not have the cash to purchase an item, then you may not have it. There is a difference between wants and needs. Only get what you need. Once you are spending within you means, then start to accumulate an emergency fund. You should accumulate enough cash in your emergency fund to last for six months in case you lose your income.

When you have reached the point where you have an emergency fund in place, start to reduce the debt load from your vehicle, student loans and home. Once you are debt free, you can then begin to save and invest with the guidance of a professional financial adviser. But always remember first to “Invest is Something that will make You Wealthy, Invest In Yourself”. The best advice is to accept and understand that “You are Your Own Security”. You are responsible for the actions that you take and it is you that will reap the consequences of your decisions.



What Does A Financial Advisor Do?

The job of the personal advisor begins with client consultation. At this point an advisor with take note of specific information regarding a client’s current finances as well as their future financial goals. Using these to pieces of information, an advisor with then create a thorough plan that identifies problems as well as offer remedies and solutions. A personal advisor will typically meet with the client twice a year to provide updates on the client’s financial situation as well as get updates on any changes to the client’s lifestyle, to include marriage, divorce or retirement. On the client’s behalf, the advisor can purchase or sale a multitude of financial products such as insurance and mutual funds or provide various services including will preparation or the completion of annual taxes.

Some common businesses financial analysts work for are banks, insurance companies, mutual and pension management companies, and securities firms. An analyst’s job in these businesses involves the assurance that the companies make sound financial and investment decisions. Analysts read the company’s financial statements, analyze prices, costs, sales, expenses and tax rates. All of these elements tie into the projection of future earnings as well as the determination of the value of the company. Financial Analysts are also required in the merger and acquisitions departments of each corporate entity to assess and prepare detailed analyses of the costs and benefits of any potential merger or company takeover.

Basically, Financial Analysts are essential to every monetary aspect of business and the global world marketplace.

To become a Financial Advisor, a person must have a bachelor’s degree in business, finance, accounting, business administration or statistics. A high knowledge level of financial analysis methods as well as accounting procedures and specifics of corporate budget are essential for a financial advisor to have in their day-to-day work needs. While a bachelor’s degree is acceptable, a master’s degree is preferred for analysts who work at the highest corporate levels. Like corporate analysts and advisors, personal finance advisors are strongly recommended to posses a degree in accounting, finance, economics, business mathematics, or law to best help their clients.

It’s best to understand Finance Advisors as much as possible so you can make an informed decision and take the best steps possible to reach your objective. Our time is our so precious and despite cell phones and other conveniences we seem to never have enough of it. See below for more information on Financial Advisor.