Brittany Waldrep

Archive for the ‘Finance’ Category

Money is one commodity that most of us is in need of, not because we handle our money poorly, but because of sudden and unexpected expenses! Sudden expenses may involve medical expenses, car repairs, sudden vacation trips with friends, and the list of possible unplanned events goes on and on!

In times that we are in need of fast cash, we can always avail of a Payday loan! There are online lending companies that offer this type of services. However, when we say payday loans, this only involve a relatively small amount and an important thing we should be aware of is, payday loans are payable only until our next payday! Thus we should only borrow an amount that we could easily pay off and still have enough cash left! And also, the credibility of the lending company! We definitely do not want to be victimized by scams! In times of sudden need of cash, payday loans from certified lending companies online or not, can really help us make it through!

I was about to go to work, when my car suddenly won’t start! And I was resorted to take the bus, and with time against me, I knew I had to run all the way to the bus stop! It was such a hassle! And unfortunately for me, all my running was of no use, I arrived at the office late!

The next day, I decided to have my car checked on my next pay check, so, again I took the bus, and again I was late! This time the bus broke down! My car being broken is surely causing so much trouble on my part. But I was short on cash to have it repaired, luckily, I knew the right place where to get the money for my car repairs, the internet! At an online lending company, I was able to avail of Cash Advances. And the next day, my cash loan was deposited in my account, and I instantly had my car repaired! And the next day, I was no longer late!

A lot of people don’t know that in 1983 Bank of America bought Charles Schwab & Co. lock, stock, and broker, with my dad staying on as chairman and CEO. Within four years he had bought back his company. But in those first few months of being under the Bank of America corporate umbrella, Schwab employees were offered the option of purchasing shares of BofA stock commission-free. Fresh out of college and just having received my broker’s license—and never having actually placed a stock order for myself—I purchased two shares. Not two dozen shares or two hundred shares or two thousand shares. just two shares, which I still own. I always joked that while my dad was one of the largest Bank of America shareholders, I was the smallest. Still, eighteen years later, with the two shares that I bought for $44 now grown to almost $400, a tiny sliver of that BofA pie remains mine. Stocks (also referred to as equities) represent ownership. When you buy even a single share of stock, you’re actually buying a piece of that company. That’s what sets buying a stock apart from any other investment. Of course, this gives you not only the greatest opportunity for growth but also the greatest exposure to volatility if that company doesn’t perform well.
Depending on the company’s market value (the share price multiplied by the number of shares outstanding), stocks are classified as either large-capitalization (the top 5% of companies, generally with market value greater than $8.2 billion), small-capitalization (the bottom 80% of companies, with market value less than $1.3 billion), or mid-capitalization (the 15% in between). Both the Dow Jones Industrial Average and the S&P 500 Indexes are made up of mostly large-cap companies, with General Electric, and its more than $250 billion market cap, currently leading the herd. Though each category carries different levels of risk and reward, the object isn’t to choose one among them but to come up with a mix.
Other terms you’ll hear are growth and value styles. A growth stock is just what its name implies; its earnings (and usually its share price) are expected to grow rapidly. It pays negligible dividends because most of its profits are funneled right back into the company—to foster more growth. Growth investors are optimistic about the future of the firms in which they invest and are willing to pay a premium for this potential. This strategy has been most effective when new industries are developing and advancing, such as the rise of technology and biotechnology throughout the l990s.
A value stock is a different creature. Investors who take a value approach are looking for fundamentally strong companies whose share prices might be depressed for any number of short-term reasons. Because a company’s stock is believed to be underpriced, it is thought to represent good value. Value investors believe that, at some point in the future, the true value will emerge, the share price will increase, and they’ll profit from buying at a lower price today. Some value stocks also tend to pay higher dividends, which may help increase your overall return.

Many of us neglect to talk to our spouses, our parents, and or our children about investing because we feel uneasy about our own financial knowledge and skills. As we saw so clearly with Kate’s dad and even her siblings, that uncertainty—or fear—not only leads to avoiding the topic of discussion, it can also lead to avoiding investing altogether. Like anything else, however, once you break investing down into its basic components, it’s just not that complicated.
In this section I’ll introduce you to the world of investment vehicles—from stocks to bonds to mutual funds. As you begin to learn (and talk) about them, you’ll soon realize that each type of investment has its own advantages and disadvantages, as well as its own risks and rewards. Just remember that a properly diversified— balanced—portfolio will include a mix of investments.
Once again this overview is directed primarily to beginning investors. If you’re a bit rusty, you may find it a useful review. Or if you’re encouraging a friend or family member to jump in, this could be a good place to start.

Earlier I have told my friend about the importance of “paying yourself First.” Not only does it help you start—and keep—investing on an ongoing basis, it can launch you into a strategy that works well for a lot of investors. Dollar-cost averaging, as it’s called, not only provides you with the structure and the discipline to invest consistently over time, it also works well for anyone who is feeling a bit hesitant about diving right in—and wants to spread out his or her investments over time.
This is how it works. Every month (or at any regular interval) you invest a set amount of money—regardless of how the stock market is performing. When the markets are down and prices are low, you wind up purchasing more shares for your money. Your friends will wonder why you’re able to maintain your composure as the value of your stocks tumbles—but since you’re in this for the long haul, a dip in the market means an opportunity to scoop up a greater numher of shares at lower prices. When the market and prices are up, you’ll buy fewer shares (just as you do when a sale ends and prices return to full retail). Over time your average share cost (how much you actually spend) can wind up being lower than the average share price.

You mention the stock market and most people hove mixed emotions about risk and reward. Some seem to react almost viscerally to risk particularly in a dawn market or a recession, when in the mind of the mass public risk turns into RISK’
Granted, as of this writing we are experiencing one of the worst bear markets in history. In times like this it’s extremely hard not to get emotional and want to run for the hills. But this is exactly when it’s essential to maintain a long-term perspective. Every kind of investment has some inherent risk whether the investment is stocks, bonds, real estate, or gold. In fact risk is a part of everything we do— from investing to relationships to business. Risk is a part of life.
Given this reality, what is your best defense? Understanding how much risk is appropriate for your circumstances and creating a portfolio to match, In the late nineties, when the stock market was going straight up, investors didn’t think too much about risk—it simply didn’t seem real, But once people suffered severe losses, their tolerance for risk suddenly came into clearer focus.
Carrie tells me I’m a risk-taker: that I ski aggressively and that I’m a tough businessman. That may be true, but I would qualify that by saying that I take risk in a calculated way. I wouldn’t take risks if I were skiing for the first time. I’d find an instructor and rely on help and advice from a pro. But because I have a fair amount of experience, I do ski fast—if the conditions are great I go into the lodge as soon as things get ugly My intention is to always stay in control.
I handle investing risk in the same way I stay alert and informed, so that when I take a risk, I do so with awareness and understanding And as an investor you can do the same thing As Carrie explains in the text if you have the proper asset allocation and are adequately diversified, you will be able to take an appropriate risk Of course I know there are no guarantees and that things can still go wrong But I know also that I’ve done all? can to minimize unnecessary risk And that to me, is enough.