Money Q&A Articles by Jeremy Biberdorf

20 Up-and-Comers to Watch in the Stockbroking Industry

by Jeremy

Stockbroking involves the buying and selling of stocks and other securities for both institutional and retail clients. Over the years the brokerage industry has advanced since brokers not only compete by relationship, service and price, they also compete regarding commission and the quality of duty.

There are many companies at the top of the brokerage industry like CMC markets, but there are many more still fighting for their fair share of the top ranks in the brokerage industry.

National Bank Direct Brokerage is a company to watch out for since it has decided to improve it services and approach and most especially ensuring investor satisfaction. NBDB decided to get serious and stop the motions. It has an online advice support called InvestCube and also provides an all-round service for DIY investors. NBDB has decided to up its game and should be watched out for.

TD Direct Investing is also among 20 up and comers in the brokerage industry since it has managed to iron out its flaws by providing account reporting tool and has also managed to modernize its website this is a strategy to attract more clients, and therefore it is upcoming in the industry.

Raymond James Financial, which was also not doing well, has decided to come up and improve diversification, therefore, reducing investment risk.

eOption is also coming up in its respect as it offers lower commissions hence making trading cost effective. It has also enhanced the front end of its platform to make it more user-friendly and client efficient.

Capital One Sharebuilder is also a company to look out for as it has improved its services through adding features that enable the client to understand their portfolio.

Wells trade is also working to be at the top as it provided personalized service to its customers, with online and mobile support. Also, there is no minimum balance to establish an account hence its attractive to clients. Therefore, this will help in making it climb the ladder.

LPL Financial was not doing so well as of 2015 final quarter. Hence it has drawn it energy towards improving operation and capital plans; through introducing multi-client portfolios designed to improve efficiency and save time.

BMO Investorline is another superior firm that has not been leading since 2005 but is working towards adding commission-free trading of exchange trade funds as its strategy to be at the top.

FirstTrade is also back eyeing for the top ranks as it has improved its services by introducing a mobile application provide better services to clients and a more interactive site like translation to Chinese.

Is it Ever Appropriate to Invest While in Debt?

by Jeremy

Should you invest while still in debt? When should you start investing? You may want to start investing despite still being in debt.

Is it ever appropriate to invest while in debt? The presence of the word “ever” in that question should be a hint that the answer is “yes”. If you figured that already, then good for you and right you are.

Is it Ever Appropriate to Invest While in Debt?

But it’s a “yes” with qualifications. Investing while in debt should be the exception to the rule. There are, however, a number of exceptions, some of which we’ll talk about here.

Investments that can be engaged in with skill, like binary options trades through Banc de Binary, are one such exception. These are trades that can be completed in seconds, which have the potential to multiply invested amounts several times over.

For those skilled at this method of trading, it’s a great way to make money, and can be used to gain the funds necessary for total debt cancellation. It’s also a risky proposition and one that should only be taken part in with money that won’t be missed if the investments don’t pan out. But for people who enjoy past paced and fun investment models, this can be a great one to add to your repertoire.

Most of the argument against investing while in debt comes results from a simple concept: debt tends to add up much faster than wealth. Investors hope for 7-9% annual returns from mutual funds and other stock market gains. But high interest credit card debt can accumulate at 25% annually – sometimes even more!

The math is simple. You won’t make money if you’re taking on debt faster than you’re growing wealth. If you have high interest consumer debt, there is almost no good reason to invest until it is paid off.

The Top 5 Reason Why You Are Unable To Save Money

by Jeremy

There are many reason that you have been unable to save money. Saving can feel like an impossible task that many Americans struggle with. A study revealed that half the population—47%—had zero or negative savings accounts.

In the same year, the Federal Reserve found that the average saving rate was 4.8% of disposable income—not nearly enough to handle expenses should an illness or job loss become your reality.

Having a savings account should be a non-negotiable in your financial planning, and if you’ve found putting money away to be an insurmountable challenge, you may be struggling with one of the following reasons. Read on to find out how you can change your financial situation and start putting money away for a rainy day.

Why You Haven’t Been Unable To Save Money

1. Forgetting to Budget

If you don’t budget out each month, you’re doing yourself a disservice. Taking an hour or less to draw up your financial plans for the month allows you to visualize where your money goes, and highlights any inconsistencies or overspending that you might have otherwise missed.

Using a budget allows you to control every last cent in your wallet, helping you avoid unnecessary expenses and cutting down on the excess spending that comes along with lack of planning. If you find it difficult to do on your own with pen and paper, use one of the many electronic budgeting apps like PocketGuard that will allow you to monitor exactly where you’re spending your money and take steps to cut out unnecessary spending.

2. Paying Off Debt

Paying off your debt is important, especially because high interest rates can rack up, making your savings account moot point. In fact, the interest you pay on a lingering debt is, nine out of 10 times, way more than the interest you’ll make off of your savings account.

The sooner you pay off your debt, the more money you’ll have to put into savings (and the psychological relief isn’t too shabby either). Tackle your debt through the avalanche method, focusing your payment efforts on the accounts that charge the highest interest first. Be sure you always keep enough to dedicate to minimum payments on your other accounts and ensure you don’t rack up numerous late fees.

I Can’t Pay My Taxes: What Should I Do?

by Jeremy

We’re in the thick of tax season, and if you’re having anxiety about handling what you owe whether personally or for your business, you’re not alone. You’re not alone if you think, “I can’t pay my taxes”. If you’re expecting to owe a large sum to the IRS by the April 15^th deadline, and know you’re not going to be able to pay off your debt, there are various ways to approach your situation.

Filing Issues

Even if you can’t pay what the IRS expects of you, you absolutely need to make filing a priority. While the date usually falls on April 15^th, this year is a bit of an anomaly, with a filing deadline of Monday, April 18^th. With this deadline only a month away, time is of the essence, and the penalties for missing this filing date can be pretty severe, at least from a financial standpoint.

The maximum penalty can add up to a massive 25% fee on the total cost of your debt if you don’t file within the five months following the deadline, in addition to the interest, the initial amount will gradually accrue as long as it takes you to pay back. By filing prior to the deadline, you can avoid this steep penalty fee, and the IRS will be more willing to work with you.

Can I Use Credit to Pay?

While not always the most viable option, there is something to be said about using your credit card to handle a debt to the IRS that would go unpaid. You’ll need to determine whether the interest on your card is higher, or whether the interest charged by the government would be more desirable.

In most cases, a credit card has lower rates than what the IRS enforces in efforts to get their money. If you can’t put the entire debt on your card, you can make a partial payment and avoid penalty fees and lessen the amount of interest you’ll pay over time. The IRS interest rate comes in a half of 1% each month, and continues rising until it hits the maximum of 25% during the following 50 months.

The IRS does accept credit cards, but be aware there’s a fee for using one of the approved processors, which depends on the processor chosen. Right now it looks like Pay1040.com is the cheapest processor, charging a 1.87 percent fee on your transaction.

How Not to Screw it Up, When Things Go Unexpectedly Right

by Jeremy

We all know what it’s like to lose money. And, just as it’s easier to fall down than it is to get back up, losing money is something we deal with more often than suddenly gaining it.

But, sudden acquisitions of money do happen in the lives of most people. And, even if we’re just talking about a few hundred or thousand dollars, these windfalls can be game changers for the average person.

Because windfalls are most significant in the lives of people who are not prepared for them, it’s best for everyone to have a plan for what they’d do if they got their hands on some cash all of a sudden. Remember, this can happen a lot of ways: inheritance, settlement, game winnings, etc.

Check out more ways at the Cash in Your Annuity Blog. If you get a windfall this way, or through some novel method I haven’t thought of, make sure you are ready well in advance to make sure this money lasts a long, long time. Here’s how people…don’t do that.

Tweaking Your Life Stage Investment Strategy

by Jeremy

No matter what your attitude is toward money, the one thing that we all have in common is the need for financial security. The safest approach is to start a savings account, but that won’t get you too far when it comes to big life events like buying a home, raising a family or getting ready for retirement. While it’s important to accumulate cash for emergency liquidity, it’s equally important to devise a smart investment strategy to grow your wealth. You have to make sure that it’s flexible enough to change as your life circumstances change. This approach requires you to think realistically about your future and get really specific about how much money you need to live comfortably at each … Read more