A guide to becoming a better novice trader in the United Kingdom

As a novice trader in the United Kingdom, it is crucial to become familiar with different types of options trading to make informed decisions when participating in the market. This guide will provide an overview of the UK’s main types of trading: share dealing, contract for difference (CFD), spread betting, and foreign exchange (forex).

Share dealing is the most common type of trading in the UK and involves buying and selling shares of companies listed on the London Stock Exchange. CFDs are similar to share dealing but allow traders to speculate on the price movement of a security without actually owning the underlying asset. Spread betting allows traders to bet in the direction of a security’s price movement, and forex trading is the act of buying and selling foreign currencies.

When choosing a broker, it is important to compare fees, account minimums, and the types of securities that each firm offers. It is also essential to read reviews and assess customer service offerings before selecting a provider.

Once you have chosen a broker, opened an account, and funded it, you will be ready to start trading. Before placing your first trade, however, it is crucial to develop a trading strategy. This strategy will help you make informed decisions about which trades to place and how to manage your risk.

A fundamental trading strategy

A fundamental trading strategy should consider the following:

  • Your financial goals. What are you looking to achieve by trading? 
  • Your risk tolerance. How much financial risk can you take on? 
  • Your time horizon. How long do you plan on holding your position? 
  • Your exit strategy. How will you know when to sell?

A money management plan

In addition to a solid trading strategy, it is also essential to have a sound money management plan. This plan should consider how much capital you are willing to risk on each trade and how you will manage your overall portfolio risk.

Some key money management considerations include:

  • Position sizing. How many shares or contracts should you buy? 
  • Stop-loss orders. At what point will you exit a losing position? 
  • Take-profit orders. At what point will you exit a winning position? 
  • Risk-to-reward ratio. What is your target profit versus your stop-loss? 
  • Diversification. How can you reduce your overall portfolio risk?

What are the risks of day trading in the UK?

There are a few risks to be aware of when day trading in the UK:

  • Market risk. The market can move against you, and you can lose money. 
  • Liquidity risk. There may not always be someone to buy or sell your security at your desired price. 
  • Margin call risk. If the value of your account falls below the required margin, your broker may force you to deposit more money or close out your positions. 
  • High-frequency trading risk. Algorithmic traders can place orders faster than humans, impacting the prices you pay or receive.

How can I overcome these risks?

The best way to overcome these risks is to have a solid trading strategy and money management plan which takes into consideration your financial goals, risk tolerance, and time horizon. Diversifying your portfolio and only trading with money you can afford to lose is also essential.

When day trading in the UK, choosing a reputable broker with low fees, good customer service, and a robust platform is crucial.

What can you trade in the UK?

The UK’s main markets are the London Stock Exchange (LSE) and the Alternative Investment Market (AIM). The LSE offers a wide range of securities, including shares, bonds, and derivatives. Futures contracts and listed options are also traded on the LSE. The trading hours for these products vary depending on the security.

The AIM is focused on smaller companies and is considered to be riskier. Other popular markets in the UK include the FTSE 100 index, the GBP/USD currency pair, and gold.

Conclusion

Day trading in the UK can be a profitable way to invest your money. However, choosing a reputable broker, developing a solid trading strategy, and having a sound money management plan is essential. Remember to diversify your portfolio and only trade with money you can afford to lose.

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Why Crypto is The Future of Finance Using Earnity from Dan Schatt

Cryptocurrency is a developing ecosystem that is slowly infiltrating the world’s traditional financial systems. According to statistics, the number of crypto users increased by 66 million between 2018 and 2020. Moreover, both private and public sectors are warming to the idea of using cryptocurrencies in their financial transactions, such as making payments, storing value, and investing. Finance legends Domenic Carosa and Dan Schatt have created Earnity to offer people a user-friendly way to transition.

The Dawning of Decentralized Finance

Many people believe that decentralized finance, or DeFi, will soon replace traditional financial processes by providing transparency and better transactional security.

DeFi is rapidly gaining traction in investing, trading, borrowing, and lending, which will spark a revolution in today’s financial services. The increased demand for and accessibility of cryptocurrency exchanges is expanding the global popularity of various DeFi systems. Along with it, cryptocurrency exchanges have grown in popularity among investors. As a result, industry experts expect a cryptocurrency to continue pushing changes to financial systems as you know them today.

Transactional And Banking Advantages

Acceptability and accessibility continue to receive attention as cryptocurrency use grows daily. In addition, the cryptographic technique and technology continue to evolve and advance, resulting in the development of a stronger cryptocurrency financial system.

Privacy

Because various cryptographic techniques power the systems, it allows for anonymity while transacting. These methods ensure data security, preventing sensitive information from falling into the wrong hands. All data sent is hidden from unauthorized individuals.

Security

Transactions made with cryptocurrency cannot be changed or forged, and the system transmits them over highly secure networks. On the other hand, entities can still trace financial records for proof.

Accessibility and Effectiveness

Cryptocurrency provides a viable and concrete solution in a world where a large population still lacks access to formal financial services. Dan Schatt and Domenic Carosa know that traditional banking is restrictive. People worldwide who do not have bank accounts can now take advantage of this financial model using Earnity, which provides instant access from anywhere, lower transaction costs, and quick transaction processing.

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Crypto Regulation Around the World

Regulation around cryptocurrency is still very unclear and governments around the world have very different ideas about it. While some jurisdictions are trying to ban it outright, others just want to have a bit more control over how it’s traded. Some jurisdictions still don’t fully understand crypto and still don’t know if it should be qualified as a currency or a security. Understanding regulations is very important for traders as they can have serious tax and legal implications. Let’s look at a few examples of how crypto trading is regulated around the world.

United States

Even if crypto trading and mining are very popular in the US, the country still doesn’t have a clear regulatory framework for cryptocurrencies. The SEC, the Treasury, and the Commodity Futures Trading Commission all see cryptocurrencies differently, calling them a security, currency, and a commodity respectively. Not only that, but the IRS classifies cryptocurrency as property, which further complicates things for traders.

The country has done a great job at regulating exchanges in the country, however. All exchanges have to comply with the Bank Secrecy Act and be registered with the Financial Crimes Enforcement Network. They also have to abide by the Anti-Terrorism Act and anti-money laundering (AML) legislation.

Japan

Japan is another country that has decided to embrace crypto, and like other regions has seen a rise in the popularity of crypto trading via a range of providers that seek to serve this booming market. These include “regular” crypto exchanges, to decentralized exchanges known as a DEX, to online brokers of crypto derivatives like contracts for difference. All locally based trading platforms have to be registered with Japan’s Financial Services Agency (FSA), which is one of the most rigorous financial regulatory agencies in the world. All exchanges have to be compliant with AML obligations as well. Crypto gains in the country are taxed under “miscellaneous income” and crypto is viewed as property from a tax standpoint.

United Kingdom

The UK, like many other countries, does not recognize crypto as legal tender, but as property. All exchanges operating in the country have to be registered with the UK Financial Conduct Authority. They also have to abide by special ‘know your customer’ (KYC) regulations and follow AMT and CFT guidelines.

Canada

Canada is one of the countries that has taken the most proactive measures to regulate crypto trading. All exchanges in the country have to be regulated by provincial agencies. The country is also one of the first to accept crypto derivatives by being the first to approve a Bitcoin ETF in February 2021.

Australia

Australia is relatively proactive when it comes to crypto and has some strict rules about what exchanges can offer services to Australians and even which coins they can offer. Australia is one of the only countries to formally ban privacy coins, and exchanges operating in the country have to register with the Australian Transaction Reports and Analysis Centre while abiding by AML/CFT regulations. Australia also has strict rules regulating initial coin offerings (ICOs) and crypto is treated as legal property under the tax code.

Even if most countries have similar legislation governing crypto, there are still some nuances. This is why traders living in these countries or thinking of trading within their borders should learn more about the regulatory framework in each country before starting.

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What to Do When Your Reverse Mortgage Becomes a Financial Burden

Did you take out a reverse mortgage? Many seniors consider reverse mortgages to deal with financial issues that they encounter during retirement.

There can be a lot of great reasons to take out a reverse mortgage. However, they are not without their own issues. You need to be aware of the potential pitfalls that you are going to encounter when you have a reverse mortgage.

Some of the problems with reverse mortgages might creep up on you over time. Fortunately, there are ways that you can deal with them.

Here are some things that you can do to offset any issues that were created by a reverse mortgage.

Consider refinancing your reverse mortgage

According to All Reverse Mortgage, “You can also refinance your reverse mortgage if you don’t like the interest or other terms associated with it. This might be your best option if you think that you will need to sell your property in a few years.” Refinancing will keep you from losing a large amount of money and interest. It would also be ideal if you want to make sure that your kids or other people inheriting your estate will get more.

The process of refinancing your reverse mortgage is very similar to that of refinancing a traditional mortgage. The only caveat is that you generally need to wait at least 18 months after taking out the original reverse mortgage before you can refinance it.

You should take a close look at your credit history before submitting a refinancing application. Your payment history keeping up property charges is going to be the most important factor for qualifying for a better HECM in most cases.

If your credit has improved since you took out the last reverse mortgage, you will possibly be able to qualify for that terms. You can also try to take steps to improve your credit score if you want to take preemptive measures to get a better deal. You should start by looking at your credit reports and seeing if there are any errors on them. Around 20% of all credit reports contain errors, which could be hurting your score. You should also take a close look at any outstanding debt that you have. If you still have a large amount of money from your reverse mortgage, then you should use it to pay off high interest debts, such as credit card bills. This will both boost your credit score and minimize your long-term expenses. It will be a win-win, especially if you get a cheaper read on your reverse mortgage.

You should also settle any possible liens on your property. They could be hurting your potential of getting a better read on your reverse mortgage.

Lease your home instead of selling it before you move

When you take out a reverse mortgage, the bank is going to give you money that will later be taken out of the value of your home. Unfortunately, you have to hold onto the property if you don’t want to pay the reverse mortgage loan back.

You might end up in a situation where you really can’t stay in your home. You might feel like you are a prisoner to your loan, because it is keeping you from relocating if you can’t afford to pay it back.

You might not have been concerned about this when you first took out your reverse mortgage. You probably thought that you would never relocate. Unfortunately, problems happen. You might get an unexpected divorce. You might develop health problems that prevent you from living in an area with bad weather or excessive pollution. Your kids might take new jobs in another state, which forces you to move as well if you want to be close to them.

Before you bite the bullet and sell your home to repay your reverse mortgage, you should explore other options. One idea that you might want to consider is leasing out your home and using the cash from it to pay for new housing wherever you want to relocate.

This might give you the best of both worlds. You get to keep the money that you secured from your reverse mortgage and have the flexibility to relocate at the same time. You don’t even have to physically deal with your tenants if you are willing to outsource that obligation to a property management company.

Explore property tax relief services

Property taxes are among the reasons that people when face problems with their reverse mortgages. You might be required to repay your reverse mortgage if you stop paying your property taxes.

You might be able to get ahead of the problem by seeking property tax relief services. The terms of these services vary between jurisdictions, so you should pay close attention to the requirements. The governor of Idaho recently signed a property tax relief bill, which is an example of how these services work. If you are eligible, you might avoid property tax problems that could trigger a requirement to repay your reverse mortgage.

Make sure that you are reverse mortgage is a benefit rather than a liability

There are a variety of reasons that reverse mortgages have become popular in recent years. They really do offer a lot of benefits. However, there are some situations where they could become a burden, so you need to take steps to avoid that from being the case.

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Reaching Financial Freedom Through a Side Hustle: Things You Can Do to Change Your Life

Reaching financial independence is something many of us dream of, and people often fantasise about the luxury of being able to never worry about money. However, this is only practical if you’re motivated and have the time to do something on the side. Side hustles have been something certain individuals do without even thinking, while others simply stick to their day job. There is absolutely nothing wrong with not wanting to earn more money and spending time with your family at home rather than taking on another work commitment. Still, one of the best ways to create financial stability for yourself and your family is to do something else that can help towards special occasions and luxuries. 

Certain side hustles will cost nothing other than a get-up and go mindset, whereas others require the initial start-up capital in order to make it successful. Regardless, you should think about the side hustle you’re starting before you decide on what will work best for you. Only do a side hustle you’re passionate about and know will bring you financial stability in the long-term to keep you going.

  1. Start a Business

There are difficulties and complexities when it comes to starting a business, but if you’re determined enough to make it succeed, you will! Start a business with an idea you feel will benefit others and something that you’re passionate about at the same time. It’s not difficult to think of ideas either, especially with the availability of the internet and countless opportunities on there. Ensure you officially set up your business with HMRC if you’re serious about making some good money from it, as it’s a legal requirement to do so. 

Whether you want to sell some custom made jewellery or you think a recruitment business is the best way to go, get started and set up a business plan. After you’ve done it, get going with your plans and ensure you put all your efforts into it. Bear in mind, if you’re starting a business as well as having a full-time job, you will be busy at times, but that’s why this is ideal for people who love to keep active and motivated!

  1. Invest in Property or Stocks and Shares

Investment has long been considered one of the top ways to make money and reach financial independence. It is, for this reason, we have added both property and stocks and shares investment into this side hustles list. With property investment, you can take a hands-off approach, which means you’ll effectively make money passively and won’t have to worry about tenant demands and issues. However, with investing, despite what you’re investing in, you will need some initial money to use. Property company RWinvest have a range of guides, blogs and podcasts to help you with any initial research you will do before investing. Their website is full of interesting and innovative ideas for you to make use of. As an investor, you need to be sure you’ve got a good company and team behind you in order to succeed, which is why conducting due diligence is vital before handing any money!

  1. Start Freelancing

Do you have a skill or talent you could offer out as services to people who may need your help? Freelancing has become somewhat popular in the last few years as people need more money for luxuries and wish to save for other aspects of their life. Freelancing may not get you to the point of financial independence in the short-term, but if you’re persistent and make the most of all the opportunities that come your way, you can save up your income and eventually have a pot of savings to use if any emergencies occur. The best freelancing websites such as Upwork and Freelancer are great for starting your career as they offer a start-up platform for people who may never have freelanced before and don’t know where to begin. 

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Is A Payday Loan Right For You?

Before taking out any kind of loan, it pays to make sure that it’s definitely the right decision for you and your financial circumstances. Different kinds of loan suit different situations; a long-term DIY project, for example, might be better suited to a second mortgage or a heftier loan from a bank, while a short-term expense means taking out a short-term loan might be a good idea.

Nowhere is this maxim more true than in the world of payday loans. Payday loans have garnered a bit of a bad rep from the media, but that rep is undeserved; they’re just like any other kind of loan, but some unscrupulous shark companies managed to gain a bench in the court of public opinion before greater financial regulations led to these companies ceasing business operations. In reality, there are a number of situations in which a payday loan is a great idea for you. Here are a few situations where payday loans would come in handy.

When your credit rating isn’t great

No matter how reputable or understanding your bank may be, if you don’t have a great credit rating you’re just not going to get accepted for a loan. Credit score is often the watermark by which you’re judged for a loan; if the score is low, you won’t get credit, no matter how solvent you may currently be. There are a number of ways to improve your credit score, but most of them are long-term and some of them even involve taking on more debt. Payday loan companies, by contrast, will usually approve you for loans even when your credit score is low. By taking out a payday loan, you can easily avoid the embarrassment and difficulty of applying for a loan only to be rejected when your credit score isn’t up to scratch.

If your car stops functioning

If you’re anything like us, then your vehicle is the absolute backbone of your life. You can’t imagine going anywhere without it, and on the rare occasions when you do use public transport you feel naked. Your car is crucial, especially if you’re driving somewhere remote or distant for work. With that said, if your vehicle breaks down and you just don’t quite have the cash to cover the repair cost before payday, that’s when a payday loan might come in handy. You can apply for a quick, easy cash injection, then pay it back once your pay comes in. There’s nothing more important than peace of mind when it comes to your primary mode of transportation, so if you find yourself at a loose end, don’t be afraid to go for a payday loan.

When you’ve done your research

We said earlier that payday loans are just like any other industry when it comes to disreputable companies, and that’s absolutely true, but despite tighter financial regulations, there are still companies operating out there which – simply put – shouldn’t be. Before you take out a payday loan, make sure you’ve done solid research into which companies will do right by you. Before taking out a loan, the loan company should make your options clear and obvious; they should, optimally, discuss the loan with you before approving; and they should make the process of repayment, as well as what would happen should a repayment be late or non-forthcoming, crystal-clear. Don’t take out a loan until you find a company that satisfies these criteria, as well as any you might personally have.

When a friend or family member needs help

Here’s a situation that will be intimately familiar to many: a close friend, relative or partner suddenly loses their job. They turn to you for help, because they trust you and they know you’re financially solvent, but you’re saving for something important. How best to help them? Well, why not consider a payday loan in this circumstance? Taking out a small, quick loan will enable you to help them in the short term, then when they’re back on their feet again they can see about repaying you. You’ll be able to dip into your funds in a much more consistent fashion to repay the loan rather than drawing out money in a lump sum to give to your loved one, and they’ll thank you for being their rock in hard times.

When another debt is close to being repaid (careful!)

We want to slap a massive caveat onto the front of this one: do not use payday loans to attempt to pay off significant debts elsewhere in your life. Doing this will only lead to heartbreak as the loans pile up; if you’re not solvent enough to make regular repayments on debts, you’ll need to speak to a financial advisor or someone at the loan company to make bespoke arrangements rather than simply transferring the debt somewhere else. That said, a payday loan can be a great option if you just need to cross the finish line on a loan that’s seriously close to repayment, but for whatever reason you just don’t quite have the funds to spare in your bank account. Paying off the payday loan once payday comes will be easy, and you’ll rest easier knowing that the bigger and more pressing debt is paid.

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Banking Backtrack – 6 Tips For Reconfiguring Your Financial Priorities

What are your Financial Priorities?

In order to achieve your goals, you need to make them concrete. Evaluating your financial priorities is the first step in successfully restructuring your expenses to meet your long term goals. Making a list of priorities in order of importance is necessary in order to restructure your financial priorities and ensure that you are taking steps forward, rather than simply making ends meet. Achieving your financial goals may require assistance from a personal loan to put you ahead, or may involve assistance from a trusted financial advisor. The following six tips are essential in order to successfully re-evaluate your financial priorities.

1. Remain on top of bills

Are you earning more than you are spending? The most important step in separating our most fundamental financial needs from the rest is ensuring that your income exceeds your expenses. Debt consolidation using a personal loan allows you to combine your existing debt and make one monthly payment through a lower interest rate as offered by a personal loan. This makes your debt easier to pay off, providing you with an allocated time frame to repay the consolidated loan rather than having multiple and confusing monthly payments of various debts. Consolidating your debt through a personal loan saves you a lot of money in interest and helps you remain on top of your bills.

2. Decide what is important

Your financial priorities will change over the years, particularly if you start or expand a family. Reviewing your spending habits over the last few months will give you a general idea of what your spending habits indicate is important to you. For most of us this will be food, education needs and other necessities and preferences. However, it is important to view whether your spending habits align with what you hope to accomplish in the future. What would you most like to do with your money? This leads us to point three.

3. Look at the big picture

While immediate needs and obligations are important, it’s important to consider your finances in accordance with your ‘big picture’. Too many people configure their financial priorities simply to make ends meet. Whilst this may be all that your income can afford, the only way to truly get ahead may be to apply for a personal loan. Using a personal loan to start-up your dream business, take the holiday your family needs or get the surgery you have been waiting for, ensures that you are taking steps forward rather than remaining financially stagnant. Creating measurable goals that can be accomplished, keeps you motivated and ensures your money is being used to further your ambitions.

4. Maintain an emergency fund

For many of us, an emergency fund is something we will “start later in life when I have more money”. However, when reconfiguring your financial priorities, ensuring you have money aside for an emergency situation is vital. When the financially unprepared are hit with an unexpected and expensive emergency, they are left scrambling for whatever funding is available. Often this will result in costly terms and interests rates. Comparing the rates of various personal loans in advance can ensure that if you require a loan for an emergency situation, that you receive the best terms available.

5. Optimize your returns

Are there any other strategies you could employ in order to maximise your goals? This may include seeking advice from a financial advisor in regards to investing your money in stock or a property. Investing your money can further your wealth and help you gain financial independence. Considering ways to optimize your returns is therefore an important step in the assessment of financial priorities.

6. Review regularly

Once your priorities have been ordered it becomes vital to remain on track and regularly consult your list of priorities. It can also help you track when your strategies have been successful and when may be the best time for you to make your move, secure a personal loan and achieve what you outlined in your ‘big picture’.

Being aware of your financial priorities ensures that you remain focused on the most important aspects of your financial life. Evaluating your goals and your spending habits ensures that your money is spent in a way that reflects your priorities, and furthers your ambitions. Reviewing your situation periodically will ensure that your financial priorities are current, so that your money is used in a way that most satisfies you.

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How Forex Makes You Better at Making Money

Forex is an interesting way to make money, but it also gives you money making skills that transfer into other financial endeavors. To understand that, you have to understand how Forex works. We’ll start with a simple explanation.

Forex terms can get a little complicated, so a free trial with a brokerage source like ETX Capital is really the best way to go. When you get there, you’ll see a lot of different currency pairs. The first currency listed in the pair (if you were to bet money on it) is the currency that you think will gain value relative to the other listed currency, over a specific amount of time.

Forex trading allows you to leverage your trades, sometimes as much as 200:1. This was, you might be able to effectively trade one hundred thousand pounds, for example, while only being required to deposit a thousand or so.

The finer points of Forex (and its cousin, spread betting, also available through ETX Capital) are best learned through experience, so try out free accounts with reputable brokers to learn the ropes. Alternately, you can watch plenty of Youtube videos about Forex trading, which use images to convey concepts which are harder to grasp through words alone.

How Forex Gives You Money Making Skills in All Disciplines

Now that you understand more or less what Forex trading is, it’s time to explain how trading Forex will give you transferable money making skills for all kinds of purposes.

At its core, this form of trading is all about exploiting opportunities. You’ll quickly learn when you make an account of your own that you won’t have much success if you’re simply guessing about value behaviors. There are so many complexities that influence the relative value fluctuations of global currencies. In order to make money regularly, you’ll have to do some homework. Fortunately, this will yield an education that can make you a very sophisticated investor in disciplines outside of the world of Forex.

Let’s say you do really well at Forex trading and earn $100,000 in your first year. You want to use some of this money in the traditional stock market so that you can earn excellent returns without having to make regular trades as you do in your fast-paced Forex account. Your knowledge of the United States Dollar gives you the inside scoop on companies like Coca-Cola, who are being challenged globally by the strength of the US Dollar.

You knowledge of currency would tell you that because the dollar is so strong, money that Coca-Cola makes outside of the United States (an international market which the soda giant is actively trying to increase its market share within), loses value every time it is brought back into the United States where Coca-Cola does its banking.

You would expect, therefore, that the international brand would be having revenue difficulties in the present (they are), and that any time the Dollar starts to lose some steam, that revenue for Coca-Cola would increase (it will).

Then you hear that President Donald Trump is announcing measures to slow down the progress of the too-strong Dollar, as a way of preventing another market bubble. We’re not recommending that you take action on this hypothetical scenario, but just as an example, what would you do next?

If you thought that Coca-Cola stock would be a good bet based on that information, a lot of investors would agree with you. And you made this insightful decision based solely on your knowledge of the power that global currencies have over consumer brands. This is knowledge that the average investor lacks, and you got it just by trading Forex. Forex is a great way to make money on its own, but it’ll also prepare you for all kinds of other opportunities.

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When You Should and Shouldn’t Take Out a Loan

There are many reasons why people apply for a loan. Sometimes people apply for loans out of necessity. Sometimes people apply for loans to buy products or services that are not really needed. It is important for people to understand the cost of taking a loan. There are many factors affecting the cost of getting a loan, such as your credit score, your assets and your job. The size of a loan varies from a few thousand dollars to a few hundred thousand dollars. There are many reasons why someone should take a loan or should not take a loan.

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Why you should take a loan

1. Buying your first home

This is one of the good reasons for you to apply for a loan. A home loan allows you to own a home instead of renting an apartment. The loan can be repaid in 15 or 30 years and you will get the lowest interest rates if your credit history is good. A home loan also gives you tax benefits, and can be easily calculated with a no charge tax tool!.

2. Student loan

If you are a student, then applying for a student loan is a good choice, as it allows you to get a degree in an area that offers good job opportunities. The government backs most of the student loans and the payment terms are very generous. The loan offers a way of funding your future.

3. Loans for Investments

If you are financially independent and responsible, then you can take loans to fund your investments. For example, you can borrow money to buy investment properties. These kind of loans are not suitable for regular folks. You must have the necessary financial knowledge and assets to apply for such loans.

Why you should not take out a loan

1. Bad credit history

If your credit history is not good, then you will not get the best loan terms. You must work on increasing your credit score before you applying for a loan. Typically, banks and lenders will charge you higher rates if your credit is not good. If you are someone with a poor credit history, then you should refrain from taking a loan.

2. Purchasing assets that are depreciating

If you are planning to buy assets such as automobiles, which are depreciating over periods of time, then you should not consider taking a loan. It is always recommended to take a loan to purchase items such as a home, which are appreciating in value and act as a hedge against inflation. Most people are in the habit of purchasing depreciating assets such as furniture, TV, smart phones, and automobiles by taking high interest loans. This is not a good idea.

3. Private loans

There are many private loans available today. These are very expensive. You will end up paying very high interest rates. It is always recommended to get a loan from major banking institutions and lenders. If your credit is not good, then you may be tempted to get private loans. You should not consider this option unless it is for an emergency situation.

4. Borrowing from credit cards

Credit card companies offer balance transfers. However, after the initial period of lower interest rates, the interest rates will increase drastically. Your monthly payments will go up. Do not fall for high interest balance transfer offers from credit card companies.

There are many reasons why people take out loans. However, there are not many good reasons why people should take a loan or should not take a loan. Some of the reasons listed above are helpful if you are a would-be borrower planning to take a loan. Taking a loan is a financial burden and should be avoided unless it helps you to accumulate real assets, which are appreciating and lead to financial independence.

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How to Become a Top Financial Advisor

Today we are going to take a look at one of the World’s top financial advisors and what skills you are going to need if you wish to be a financial advisor. Being skilled with numbers and finance is a skill that you can of course learn but in order to be able to give advice to people you are going to need far more than this. Financial advisors need to have a firm understanding of the financial markets and how people can wisely invest their cash in stocks, shares, bonds, bank accounts and property. Let’s take a look at an example of a great financial advisor, Patrick Dwyer Merrill Lynch wealth manager and what skills you are going to need to replicate his success.

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Patrick Dwyer

Dwyer is currently managing over $2 billion worth of assets for wealth management giant Merrill Lynch and is considered one of their key advisors. After gaining his MBA from the University of Miami, Dwyer went straight into the MBA program with Merrill Lynch and has been with the company for over two decades. During his time with the financial services company he has been regularly featured in the Barron’s list of top 100 advisers as well as being featured as one of the best advisors in the World by the Financial Times In 1999 he joined Merrill Lynch’s elite group of professionals who would solely advise the ultra-rich in managing their finances which is where he currently plies his trade.

Here are Some of the Skills You Need

If you want to be a top advisor like Patrick then you are going to need to be an industry expert, this involves you constantly keeping an eye on market trends and global positions as well as new industries. You will never stop becoming a student of the financial world and the moment that you think you know all that there is to know, is the moment that the industry will pass you by.

Math and Computer Skills

Math and computer skills are the basic requirements for any financial advisor and the industry relies heavily on these skills. You cannot hope to achieve anything in the world of finance with poor math skills and your computer literacy should be high as you will be using them for a huge range of tasks on a daily basis.

Communication Skills

If you are going to be advising people on what they should do with their vast wealth then you need to have a good bedside manner. The wealth management industry is highly competitive and you need to ensure that, for the good of the company, that you can gain your client’s trust and loyalty. Your communication with your clients should be outstanding.

Salesman

When you are offering your advice to a client, you are essentially selling them an idea of yours and you need to be able to do so in such a way that will make the customer want to go ahead. In order to do this you need to be able to analyze complicated details and present in a way that your client will understand.

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