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Financial Investments - Complete Controller

Savings and investments are essential for an individual to grow their net worth. Though many have difficulty or even fear when it comes to investing and saving, being educated on types of investments can help drive away from the anxiety and promote healthy saving and investing habits. Here are stable financial investments that every financially responsible adult should be aware of to help them make educated decisions on where and how to invest. Check out America's Best Bookkeepers

Stock Funds

Stock funds are great long-term investments that are mutual funds and perfect for investors who do not have time to study individual stocks. Stock funds feature diversification that pulls in various company’s not necessarily in the same industry. This pulling from different industries protects most of the funds if one of the industries is experiencing a downturn. Stock funds are lower risk than from other types of stocks because they are a diversified mutual fund. They are not totally without risks, but they are extremely low. 

Growth Stocks

Growth stocks are investments in companies that show potential for large or high growth. This growth also offers high investment returns. These stocks were specifically developed with the idea that the dividends would be invested back in the company rather than directly paid out to investors. Investors still receive dividends but not as often as other stocks. Dividends generally come once the growth starts to slow down, so if you are in for the long-term and have patience, this type of stock can pay off big over time. Growth stocks have continually been the best stock performers overall because of long-term growth.

These stocks are considered high-risk because they can be vulnerable to market fluctuations. However, if you hold on to the stock’s long-term and ride out the storms, this stock is what a savvy investor needs to do to get a long-term pay-out on their investment. Check out America's Best Bookkeepers

Bond Funds

Bond funds are when a company or the government issues a bond. The government or company then pays the bondholder a fixed amount of interest each year. At the end of the term for the bond, the bond issuer’s initial principal investment is paid back. These funds are an excellent long-term investment due to their diversity and relatively low risk. While an excellent long-term investment has a lower pay off, if you are looking for higher return rates, they may not be where you want to place all your investment dollars.

Dividend stocks

A dividend stock is a stock that has a regular cash pay-out. These are popular stocks because dividend stocks produce a steady income. Dividend stocks also are the best stocks to grow dividends over time. Like all stocks, they are at higher risk because they are not diversified and are vulnerable to market fluctuations. However, these stocks are a great source of passive income when they are doing well as the dividends are paid quarterly. 

Real Estate Investments

Real estate can be a highly rewarding investment due to the passive income over time as a rental property or a fix and flip. Real estate is a great long-term and short-term financial investment because of the control as the property can be sold at any time. Real estate investments can be highly rewarding and, in some cases, a more significant risk than the investor can tolerate.  Check out America's Best Bookkeepers

Small-cap Stocks

Small-cap stocks are like growth stocks, the difference being that the companies are small. Small-cap stocks have a payoff that can be significant if the company you bought stock in grows substantially, and you are patient for the long-term. 

IRA CD

An IRA CD is a good option if you are risk-averse and want a guaranteed income without any chance of loss. Like the name says, this investment is just a CD inside an IRA. And inside a tax-friendly IRA, you will avoid taxes on the interest you accrue if you stick to the plan’s rules.

Conclusion

Wherever you decide to invest, you must do so and have savings to grow your net worth. The above investments carry varying degrees of risk and reward. Still, if researched and done through a professional investment planner, these investments will offer the investor great options to have money for a strong financial future.

Check out America's Best Bookkeepers About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. Check out America's Best Bookkeepers
Long-Term Financial Investments - Complete Controller

Investments should be as important to an adult as savings though few people do either of those things. Investments and savings should be focused on by everyone who looks to have strong finances. When consulting a financial advisor, they will generally help you with both short-term and long-term financial goals. Here are eight long-term financial investments you should consider. Check out America's Best Bookkeepers

Growth stocks

Growth stocks are investments in companies with the promise of high growth. This high growth also offers high investment returns. These stocks don’t often pay dividends since most of these companies’ profits get invested back into the company. Dividends generally come once the growth begins to slow. If you are in for the long-term, this type of stock can pay off over time, as growth stocks have consistently been the best stock performers overall.

These stocks are considered higher risk because they can be vulnerable to market fluctuations but if you hold on to the stocks long-term, riding out those storms is all the investor needs to do to get a long-term payout on their investment.

Stock funds

Stock funds are mutual funds and are a great long-term investment for investors who don’t have time to study individual stocks. The fund’s return is based on the average return of all the companies in the fund. Stock funds are generally diversified, pulling in various companies, not all in the same industry. This diversification is an advantage over keeping it all in the same industry for those times certain industries will have a downturn as a whole.

Stock funds are lower-risk than growth stocks because they are a mutual fund with diversification. But they do still carry some market risks. Check out America's Best Bookkeepers

Bond funds

Bond funds are when the government or a company issues a bond. They then pay the bondholder a certain amount of interest each year. At the end of the bond term, the initial principal is paid back by the bond issuer. Bond funds are an excellent long-term investment due to their diversity and fairly low risk.

Bonds, while a good long-term investment, have a lower pay off so if you are looking for higher rates of return, they may not be where you want to place all of your investment dollars.

Dividend stocks

A dividend stock is a stock that has a regular cash payout. Dividend stocks are popular because they produce a regular income. They also are the best stocks to grow dividends over time. Like with all stocks, they are at higher risk because of the lack of diversification and the vulnerability of market fluctuations. But they are a great source of passive income when they are doing well as the dividends are paid out quarterly.

Real estate

Real estate is a great investment due to the passive income over time as a rental property. Real estate is a great long-term financial investment because of the control as the property can be sold at any time.  Check out America's Best Bookkeepers

Small-cap stocks

Small-cap stocks are similar to growth stocks, the difference being that the companies are fairly small. If you stick with these stocks long-term, the pay off can be significant if the company you bought stock in grows substantially.

Robo-adviser portfolio

Robo-advisers are great if you don’t want to invest yourself. Robo-advisers leave the investing up to a professional; all you have to do is deposit money into the Robo account. A professional automatically invest it based on your goals. The Robo-adviser is another diversified portfolio, which makes it have a high return. It is also more stable because of diversification, but that contributes to its low rate of return.  

IRA CD

An IRA CD is a good option if you’re risk-averse and want a guaranteed income without any chance of loss. Like the name says, this investment is just a CD inside an IRA. And inside a tax-friendly IRA, you’ll avoid taxes on the interest you accrue, as long as you stick to the plan’s rules.

Check out America's Best Bookkeepers About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. Check out America's Best Bookkeepers
Millennials Investing - Complete Controller

There has been some debate that Millennials are the best generation at making investments. According to the leading names from the financial industry, Millennials are best known for having student loan debt, but they could be the smartest investing class. This means that their generation is making the best use of their finances by using their money more intelligently than other generations.  Check out America's Best Bookkeepers

In terms of personal attributes, Millennials are known for possessing promising qualities to become intelligent and successful investors. Though most Millennials are deep in educational loans, they have certain traits and skills, which makes them great candidates for placing their finances in some of the best possible investment options. Though recent times have been bad for investment purposes because of the recession-era economy, Millennials have been able to navigate their way through and find successful investment opportunities through extensive research, which allowed them to make smarter choices.

 

Here are a couple of reasons due to which Millennials have become the best investors of their time:  

Making Financial Plans

One step towards successfully investing your money is to make financial plans. You would know where your money is being spent and how much return you are going to generate. According to research conducted by the Koski Research in June 2017, about 74% of Millennials were found to have made a financial plan. Of those, 34% had put that plan in writing. In comparison to other generations, only 18% of baby boomers and 21% of Generation Xers had written financial plans.  Check out America's Best Bookkeepers

Hustling While You Can

While Millennials might not be the best at making much money from their primary job, however, a more significant percentage of them have their side hustles going on. This means that they are involved in more activities on the side besides their primary job and are earning extra income for themselves. A report by CareerBuilder showed a decline in the number of people hustling on the side who are 35 and above.

Choosing Wise Health Insurance

While Baby Boomers or Generation Xers have difficulty selecting the right health insurance for themselves, Millennials actively choose better health insurance options, according to the Employee Benefits Research Institute. They do thorough research since they have access to unlimited information and are at the advantage of selecting the right plan for themselves, their coworkers, or their family members. This allows them to save hundreds of dollars over the years, which otherwise can be used for smart investment options. 

Millennials Save Better than Boomers and Gen Xers

According to Schwab’s study, there are 31% of boomers and Gen Xers who have their monthly savings goals intact compared to 28% of Millennials. This is a very close difference between the generations, signifying that Millennials realize the importance of savings, one that would last them a couple of months or one that can be used for investment purposes.  Check out America's Best Bookkeepers

Millennials Practice their Plans – They Don’t Forget

More often than not, there will be a moment where your investment may underperform, contradicting with your hopes and investment plans. However, in such scenarios, when Millennials are compared with Gen Xers and Boomers, a study found that Millennials were able to adjust their investment portfolios better than their counterparts. This signifies that they keep some room for a rainy day, which might hurt their finances and investments.

Bottom Line

With the world of information at their disposal, it is only right that Millennials are rising ahead of Boomers and Gen Xers compared to their investments, finances, and stock portfolios. They are naturally savvy to the events taking place around them, which allows them to make much more informed and better decisions logically. Hence, if you are reading this and are a Millennial, you might have the right background and skills to become an all-star investor.

 

Check out America's Best Bookkeepers About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. Check out America's Best Bookkeepers
Stocks - Complete Controller

When it comes to investments, one has to be very careful about where to invest and when. Saving money is not easy, and when those hard-earned savings are invested into assets that don’t pay dividends, it can be a catastrophic financial setback.

For an average investor who does not live and breathe stocks, making money in this market can be extremely challenging, especially if one is looking at short-term growth. The risk factor with stocks is high, and most people buy on high and sell at the bottom as they are unable to hold investments for a prolonged duration. This article looks at various reasons as to why it may not be such a wise idea to invest savings into stocks even though many around you might encourage you to do so. Check out America's Best Bookkeepers

  1. You are not an expert on the stock market

 

Investors who make their living trading stocks know much more about the market than you can ever hope to know. Stock prices can fluctuate due to so many factors that unless you have an idea of what is transpiring, your chances of making any money are next to none. Everyone gets lucky once in a while, but just like in a casino, the house will always win. It’s the same case with stocks. You might get lucky and have a particular stock rise 1000% over a matter of days. However, this is just a way to pull you in, and soon you will realize that all that was made by the trade of that stock has slowly been eater away by the losses of other shares on your portfolio. Check out America's Best Bookkeepers

 

  1. The entire stock market, in many ways, is rigged and can even be called a ‘scam’

 

Top players in the stock market have many methods of acquiring information that you could never hope to uncover because the stock market is their domain, and they know all the tricks of the trade. Even these top investors earn an average return of 15% annually, which is reasonable, but remember this is what they do day in and day out. To expect that the average Joe would be able to make even close to that is hysterical unless that person proves to be unbelievably lucky. Stockbrokers out there are always pushing to get your money by saying whatever it takes to invest. It is up to you to understand that not all that glitters is gold.

 

  1. Only invest in stocks if you can hold forever and not diversify

 

The only successful long-term solution of making a reasonable sum of money investing in stocks is to purchase blue-chip shares and hold them for as long as possible. Instead of diversifying your portfolio, invest in one well-recognized company, not likely to be going anywhere anytime soon. Invest periodically in the company’s stock when prices are low and hold for as long as possible. Buying low and holding is the only way to make good money in the long-term, investing in stocks. Check out America's Best Bookkeepers

 

  1. Other investment avenues

 

Before investing in stocks, one should look at all other potential investment avenues. Sometimes if you have money saved up, it may be a good idea not to do anything and keep it on the side when a perfect opportunity arises. The investment game is all about timing, and most average small-scale investors only invest when they have funds available. When funds are available, investments should be made regardless of whether it’s in stocks or any other commodity or asset. A wise investor holds funds until an opportunity arises that is worth the investment opportunity. Just because you have a sizeable amount saved doesn’t mean you should go ahead and invest it in stocks. Hold the money until you are sure of your investment and never rush a buying decision regardless of external pressures.

 

If you invest in stocks in the past and know what you are doing, then investments in stocks can be a worthwhile enterprise. However, if you are a novice when it comes to stocks and the stock market in general, our advice is to stay well clear of investing in stocks and instead look at less risky and more secure saving platforms. 

Check out America's Best Bookkeepers About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. Check out America's Best Bookkeepers
sources of Capital - Complete Controller

Capital has a diverse range of sources, and these sources have a diverse range of needs and objectives. Thus, these sources are divided into debt financing, which means to borrow money and pay interest on this, and fund equity, which means investing in one’s business and exchange partial ownership.

 

Debt Financing Sources

 

Check out America's Best Bookkeepers Commercial banking: Once the first phase is completed, small businesses often draw the attention of employees to commercial loans. In deciding whether to offer financing, bankers must first consider credit ratings, guarantees, and payment options. Bankers can also study the nature of their businesses, management teams, competitors, industry trends, and how they plan to use revenues. Well-designed loans can play a long-term role in demonstrating your company’s ability to lend to future lenders and repay loans. Moreover, bookkeeping is also easy in commercial banking.

 

Companies in finance that refuse to accept bank loans have become commercial finance companies. These companies generally charge much higher fees than other creditors, but if you register for other services such as for salary administration, they can offer lower rates. Due to the low number of state and federal regulations, commercial finance companies have a more flexible credit policy and greater risk tolerance than commercial banks. But they offer higher interest rates and adjust credit guarantees for undeveloped companies.

 

Leasing Companies: If you need funds to buy assets for your business, leasing can replace traditional debt financing. Instead of buying equipment, leasing what is needed while building the business can be a positive choice. If the agreement is correct, the operating lease will include a clause that gives you the right to cancel the lease with minimum penalties or without penalties. The cancellation terms provide flexibility if the sales volume decreases or if the equipment becomes obsolete. Financial leasing is different from operating leasing, as it generally does not include any maintenance service and allows them to participate in the use of equipment throughout their lives. Check out America's Best Bookkeepers

 

Local and state credit plans: The local and state governments promote economic development. Through support services and even credit guarantees, providing direct assistance to capital or small or expanding partners. Financing conditions are generally governed by regulations that allow the creation of state agencies or local development.

 

Trade receivables and P2P loans (point to point): Many companies do not see obvious sources of financing or loans like customers and suppliers. Suppliers interested in the long-term growth of their customer base may be ready to provide favorable business conditions for loans and even provide direct financing to facilitate customer growth. The same principle applies to customers who rely on companies as suppliers of key resources. You can also explore online P2P platforms, such as a circle of lenders or a credit club.

 

Equity Capital Sources

 

Private investors: Most of the first investor companies are the first shareholders of private investors, be they are individuals or small groups. These investors are called “bands of angels” or “angels.” This is the fastest-growing private equity market sector. Check out America's Best Bookkeepers

 

Institutional Risk Capital Companies: In recent years, traditional venture equity companies can be the source of capital for entrepreneurs. These groups form a formal venture capital organization to promote the prosperity of high-tech industries and Silicon Valley. However, these funds generate a small increase in general capital each year, so they are ready to expand their horizons.

 

Venture capitalists and strategic investors: Often, large companies have established venture capital to manage operating businesses to find investment opportunities (usually in their main branches), not just for profit, but also to achieve strategic goals, such as unique talent that can grow your company or technology purchases.

 

Foreign investors: A large number of foreign exchanges, leasing companies, and banks, seem to be interested in corporate finance with US companies, particularly with Saudi Arabia, Germany, China, and India, and other growing economies. Before making any international financial transaction, carefully study the differences in the methods of planting and management, as well as in contractual and legal management.

 

Intermediaries: Growing companies are starting to seek funding through brokerage agencies, such as brokers, investment banks, financial advisors, or commercial bankers. These individuals and companies are not direct suppliers of shares, but they help growing companies to organize financing through insurance companies, commercial lenders, private foundations, or other institutions. Investment banks often also organize private investors to invest in shares for the public issue of corporate securities.

Check out America's Best Bookkeepers About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. Check out America's Best Bookkeepers

Taking the first steps in investing can be scary and difficult. Making investment decisions requires thought and timing. Investing earlier in life will help you build greater wealth over time. After you have done your research, chosen and purchased your investments, you know that you can afford to relax while being fully aware that your money is being invested wisely.  But you must keep it in mind that you can’t afford to put your feet up and forget all about your investments altogether.

Investment tips for Contemplation

Revising Your Portfolio

Check out America's Best Bookkeepers If you fail to keep track of your portfolio, it can turn out to be one of the biggest amateur investor mistakes. Many experts recommend that you revise and keep track of your portfolio around every 6 to 12 months or so. Check and see how much your funds are, but make sure that you don’t consider them in isolation. How do you manage to do this? Bookkeeping will help you in providing all of the necessary and relevant information from which all of your accounts are formulated.

For you to get the complete picture, compare your funds with others in the same group. Over time, don’t just let your savings and investments drift. You need to make sure that your asset provisions are still suitable and fitting as per your risk level.

How should you evaluate your portfolio?

If you happen to have more money than you can invest, and you feel that the returns you will get on your present investments will be quite impressive, you may start contemplating on buying more. If your salary happens to have risen, or if you happen to have some programs you wish to invest in.

If your portfolio happens to do well, and your attitude, timeframe and goals risk happen to remain the same, the most straightforward approach you can take is to spread out all your money through your existing investments.

Nevertheless, at this stage, just as your confidence grows in your investing skills, you will find many investors who wish to start enhancing their portfolios, especially with higher risk and with more interesting funds. This is a sign of adding in minor companies or more specialist or international funds. Check out America's Best Bookkeepers

 Investment tips when Buying Shares

The most assured and confident all of the investors, who happen to have the conviction and courage to hand-pick all those businesses and companies they think will perform well, might want to enhance their portfolios with some zing and direct shareholdings.

Focusing on individual companies and investing a share of your portfolio can be a prudent way for you to boost up your returns. That is, only if you happen to make the correct and right choices.  We admit that it is easier said than done.

Chances are, if you are taking and following the tips from a stranger you met in the bar, then your money will most probably go down the drain.

It is wiser and more sensible for you to buy shares of those companies you are aware of and familiar with. You have a clear understanding of that company and its reputation. If not, it wouldn’t hurt you to do some research. Check out America's Best Bookkeepers

Another easy way an investor can learn all about buying shares can be by joining an investment club. This is a place where you can meet up with other like-minded people who wish to pool in and buy shares together.

You should find yourself a financial advisor located in your area

It is easy and cheap to invest in a diverse range of investments. Still, if you happen to be confused about the options or have huge sums of money you are looking to put away, or if you have big goals in your mind that could be early retirement or school fees, you should seek an independent financial adviser.

Check out America's Best Bookkeepers About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. Check out America's Best Bookkeepers

Financial stability and success are something every individual looks forward to achieving. It is a point in life where a person achieves peace of mind; they need to spend their life with ease.

Financial investing is one of the many routes to achieve financial stability. The investing step comes after savings. It is a smart strategy to save an emergency fund equal to one’s six month’s income and then step into investing. With this approach, an individual can secure their financial position because investment does not always work!

There are numerous ways one can begin investing, but the right one must be chosen only after carrying out thorough research.

  1. Company Shares:

One of the most common types of investing is purchasing shares of a company. If the company invested in, performs well and generates high profits, the price of the shares rises and can make way for a high return if sold at the right time. On the other hand, if the company’s performance is subpar, it can be a significant loss for the investor. As the risk factor in investing in the corporate bonds is high, the return as compared to other bonds is higher! Check out America's Best Bookkeepers

  1. Cash Value Life Insurance:

It is an insurance technique through which a person can secure the future of their family members after they die. Along with a death benefit to a person’s beneficiaries, the cash value life insurance with an investment portion in payments allows accruing the values. The value accrued cannot be imposed with tax, which is another added feature of this investment technique.

  1. Forex:

Forex or the Foreign Currency Exchange is a type of investment that is not suitable for beginners as it involves high risk. To earn high returns from this type of investment, an individual needs to have the ability to predict patterns and the buying power of different types of currencies. Much care must be taken while going for Forex. Without having a sufficient understanding of the currency patterns, jumping into this investment type can expose an individual to huge losses!

  1. Real Estate:

Investing in real estate is a very common investment technique. A person who is too much into real estate knows the location, their values, and about properties must be the one opting for this investing technique. With sufficient knowledge about the trends in the price of property can be highly lucrative. A common practice is to buy homes, work on its condition, improve it, and then sell it for a higher price. Also, these properties can be given off on rents. It is a long-term investment that has the potential to provide high returns over time!

  1. Bonds:

Bonds such as Municipal, corporate, and US Savings bonds are moderately risky investment techniques. It is an excellent way of investing for beginners. It is a perfect investment strategy for those who wish to minimize the tax exposure on the profits earned as these returns are exempted from federal income tax. It is one of the safest investment techniques to choose from.

US Savings Bonds, like the Treasury Inflation-Protected Securities, are backed up by the Federal Government of the United States of America. Like the municipal bonds, these bonds are the most stable investment techniques available.

  1. Mutual Funds:

A mutual fund is a group investment technique that is professionally managed to pool the money of all the investors. The pooled money is then used to buy securities. With this type of investment, an individual can invest in a broad portfolio of bonds and stocks. Also, it is a safe way to invest money, and it is a less expensive technique. Choosing a mutual funds company is the right way to invest and earn a good return.

  1. Bank Bonuses:

Many banks in the United States of America offer bonuses as an incentive to the customers for signing up. To earn rewards from banks, a customer must keep their money on deposit for a minimum of 18 months. It is among the safest investing methods as not a single penny can be lost in the process!

  1. Annuities:

Annuities are a riskier form of investment and must only be opted after discussing it with an expert financial advisor. It is a sophisticated technique that needs to be fully understood before a person puts their hands in it. The annuities are backed up by insurance companies and not the federal government. In some cases, investors get a fixed return, which posses the least risk, and in some cases, the return is variable. In both cases, a return is guaranteed!

  1. Peer-to-Peer Lending:

People looking for short-term investments can choose the peer-to-peer lending technique. The working of P2P is simple, but it can be very risky if the screening of loans is done poorly. By selecting the best-rated loans and through a thorough screening process, a good return can be expected.

  1. High-Interest Savings Accounts:

An excellent way for beginners to invest is through the high-interest savings accounts as it is free from all risks of loss. Just keeping an amount in the accounts, an individual can expect a small amount of interest. In terms of strategy, not many efforts are required.

If done right, investing can provide high rates of return. It takes a lot of understanding and research to invest in the right place to generate incredible profits. The best way is to either research the way into investing or take the help of experts to make the best out of this technique to get rich!

Check out America's Best Bookkeepers About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. Check out America's Best Bookkeepers

Unfortunately, films, media and unscrupulous people in the industry have vitiated and damaged the image of investments and especially of the stock market. In this article I will cover the 6 main myths around the bag, hoping to clarify them.

 

  1. Investing is difficult and complicated

Many think that to invest you have to be an expert, or that it is so complicated that we cannot do it. Some even believe that this perception has been deliberately created by those who work in the stock market in order to justify its existence and the collection of brokerage commissions.

Actually, the stock market is as simple or as complex as we want. Certainly there are quite complex products, but at the same time there are many instruments quite simple to understand, to buy and sell.

 

 

  1. Investing in the stock market is very risky

Many times I have heard friends say: “The stock exchange is like going to a casino”, no less true. Although it is important to know that any investments involve assuming a certain level of risk, it can be controlled and determined by you.

Many investments that we make, outside the stock market, are more risky than many of the strategies that are regularly used to invest in the stock market. In fact, I know of no other tool that allows greater flexibility to manage, diversify and reduce the risk of our investments. 

An example of investments that I consider more risky than investing in the stock market is to put all our money in a single financial institution, in savings accounts and long-term certificates in local currency, something quite common.

Country risk (risk of a crisis in the country’s economy), the risk of inflation, the risk of devaluation of the local currency, the risk of non-diversification (having all the eggs in one basket) far exceeds having a adequate portfolio (combination of different products and investments) in the stock exchange divided in local and foreign currency.

 

 

 

  1. You have to have a lot of money to be able to invest

This is another myth where one hears that investing is only for people with money, and that a large amount is required to be able to do so.

Some of this was true years ago, since many products were not available to individual and small investors like you and me.

 

 

 

  1. You have to be stuck to a computer all day

This is another myth fueled by movies, television series and the media, where they always present the stock market as a means to speculation, where it is only possible to earn money by buying and selling shares, determining when a company’s stock will rise or they will go down

It is important to understand that one thing is speculation and another is investment. If you are looking to invest, it will not be necessary to be stuck in a computer. With good planning and clear objectives you will hardly need to spend a few minutes monthly to color the money you want to invest.

 

 

  1. If you know how to do it, you will become rich in a short time

Another great myth, related to the previous one, is that the stock market is a means to get rich in a short time, no less true. As many authors say “easy and fast money does not exist” . Any person selling you the idea that it will make you rich in a short time with the stock market, or any other type of investment or business, is lying to you.

Many believe that they can be smarter and manage to make a lot of money in a short time, regularly these are the ones that feed the myth that the stock market is like a casino, because in the end they end up losing their money. The reality is that this happens through the greed and the high risk assumed, betting (literally) to achieve big profits and get rich easily and quickly. Do not fall into that trap.

 

 

  1. My broker watches over my interests

This myth is one of the most dangerous. Many people fearful for their inexperience in the investments request the help of a broker to be able to carry out their transactions, and in the end they think that this person is advising them and will watch over their interests and their money, or else they will prevent them from making mistakes.

Unfortunately this is not the case, I do not say that many do not have good intentions, but even these can be vitiated by only knowing the products they represent, and by those who commission, or simply in other cases they are not able to advise correctly their “customers”.

 

 

In this sense, it is important that you investigate on your own and educate yourself on how to invest, and if you have an advisor you should ask specific questions about whether you receive a direct commission for the products offered, as well as what strategy and products uses in their own investments.

 

 

 

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You do not have to borrow. Buying a house implies asking for a mortgage. Investing in the stock market, however, you can do it for a lot less money. Debt to invest is very risky, and if it goes well it is great, but it can also go very wrong.

 

Diversification in assets

If you invest in real estate you can buy one or two floors, nothing more. If you want more, you will need millions of dollars.

If you invest in the stock market, on the other hand, you can buy shares for thousands of companies, or better, investment funds that invest worldwide with just one click.

 

Diversification over time

Buying shares allows you to apply the DCA. If you buy an apartment, you will have to risk buying at a bad time without knowing it, something you can avoid by investing in the stock market.

 

Dividends vs. Rental

Buying an apartment to rent is very good and you get a decent interest (approximately 4-5%), and when the floors went up you could always sell more expensive for each day that passed. The problem comes when the tenants do not pay you, the floor is empty for a while, a pipe breaks…etc.

Not all shares give dividends, but you can choose from those that give (there are those that have been given for uninterrupted decades) and you will charge it even if you don’t know the delivery date exactly on the stipulated day year after year.

 

Liquidity

The average waiting time to sell a house is 1 year, while the average time to sell shares is seconds.

If you need money urgently, the shares will be much easier to sell than the floors.

 

Expenses, taxes and commissions

To maintain a house you have to make periodic reforms, pay the IBI, the community, spills, insurance …, amounts that accumulate potentially can become a lot of money.

The actions, depending on your broker or depository, can involve $0 in maintenance costs, having to pay a small amount only when buying and selling them.

 

Cost effectiveness

The profitability of the stock market is higher than that of real estate, with an average of around 7-8% per year during the last 200 years. If your barrier is that you don’t know how to start investing, I recommend you take a look at my course to start step by step and from 0.

Investment in the stock market is much more profitable, and in my opinion also much simpler. It takes less time and implies less headaches.

 

 

Why do people prefer real estate investments to the stock market?

People continue to invest in real estate, and move completely from the stock market.

 

Why?

The real estate can be touched

Although it seems silly, people like to see their things. One of the biggest barriers when investing in the stock market is that the shares and investment funds cannot be seen or touched.

Actually, they are equally safe, but the fact of not being able to see them pulls people back a lot.

 

The bag is like a casino

Another excuse that people who do not invest in the stock market puts is the fact that money can be lost. True, you can lose money, but only if you are not sure what you are doing.

If you go long term, you understand that fear and greed are your biggest enemies, you make temporary purchases, you invest following a clear strategy and you also do it only with money that you will not need in the near future, really losing money in the stock market is very difficult.

 

The floors always go up

Directly, lie. In 2007 they fell approximately 50%. You simply do not have an app on your mobile that tells you the price of your home every day. Forget about looking at short-term stock quotes, as that is irrelevant.

 

I don’t have time to invest in the stock market

Fortunately, there are very good ways to invest your money without spending more than 5 minutes. I, without any doubt, prefer to invest in the stock market than to invest in real estate.

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About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file, critical financial documents and back office tools in an efficient and secure environment. Complete Controller’s team of US based accounting professionals are certified QuickBooks™️ ProAdvisor’s providing bookkeeping, record storage, performance reporting and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay services. With flat rate service plans, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

The simplest definition is: passive income is income that you generate without actively taking care of it. This means that you make money by doing nothing or very little to generate that income. Most of the time when a person wants to increase his income, he is offered to find a job or to work overtime. No question of that with passive income. Anyway, do you have the time and / or energy to do a job in addition to yours? I did it and I know that is not the right solution. I exchanged my time for money. It is not as interesting as making money by doing nothing or almost nothing! It takes a little time and investment.

Here are some ideas that I hope will inspire you. These passive income ideas will help you save money while you sleep.

Invest in crowdfunding

There is probably no safer investment than placing your money on a Livret A and touching the interest. Unfortunately, the interest rates are so low that it is only worth it for your precautionary savings. Touching 0.75% a year will not make you richer.  Obviously at this rate there are risks.

What risks?

Risks of bankruptcy concerning the companies to which you lend your money. Most loans are covered by insurance but there is always a risk. To smooth this risk, you need to invest small amounts on several medias. If you have $1,000 to place, do not invest it all on a single company but rather $50 on 20 companies. So you do not risk losing everything on a single investment. Despite the risk of default, it is very likely that you will earn more than putting your money on a booklet. Even life insurance. I have a gross return of 9.53% currently thanks to crowd funding organizations. I lend essentially through the pretup platform. If you invest $200 in less than 3 months on one or more projects you will earn $15 and me too!

Try index funds

An index fund is a fund that replicates a stock market index, for example the CAC40. Passive fund management leads to lower fees than traditional funds. Trackers are called trackers in English. Warren Buffet said trackers were the best stock market for beginners. The CAC40 has gained more than 10% since January 1st! It’s a very simple investment. You have nothing to manage, buy, sell, choose your funds, or rebalance your portfolio. Everything is managed by the index fund.

With any broker, you are free to choose a fund that is based on any index. For example, there are index funds created for almost all market sectors – energy, precious metals, banks, emerging markets, and so on. All you have to do is decide which one you want to buy, then invest money and relax. Your stock portfolio will then be on autopilot.

Binck.fr is an online broker that will allow you to invest in a tracker. $0 account keeping, $0 custody fee. I recommend investing 5regularly in a tracker reflecting a fund such as the CAC40 or the S & P 500. For example, put $50 every month in the tracker lyxor cac40 and you will be long-term winner. To compare online brokers, use Online Broker Comparison software. 

Invest in real estate

Real estate is an easy way to create wealth. Everything may seem difficult when you are not used to it but there is no magic. You have to train, read, listen and learn. Once you have bought one or more apartments or buildings, you repay the loans and collect the rents. This gives you an interesting passive income. You still need to manage your property.

If you want to be quiet, you can delegate management work to a real estate agency. Obviously, you will lose profitability. Or invest in real estate crowdfunding through Homunity . You have nothing to manage except to select your project and collect between 8 and 10% yield. In addition, it is practical for the small budgets, you can begin to invest in the real estate from $1,000.

Write a book and earn royalties

As for writing an ebook, a lot of work upstream is mandatory. But once the book is written and marketed, it becomes a totally passive source of income. If you manage to sell your book to a publisher, it will pay you a percentage on each sale and if the book sells well the pay could be substantial!

There are still many other passive income ideas to put in place. Before you become passive income, you will have to build these revenues with work upstream. Believe in yourself and try. Thousands of people have sources of passive income. 

 

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About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file, critical financial documents and back office tools in an efficient and secure environment. Complete Controller’s team of US based accounting professionals are certified QuickBooks™️ ProAdvisor’s providing bookkeeping, record storage, performance reporting and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay services. With flat rate service plans, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.