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Learning about Private Equity in High School

Posted by on 7-07-15 in Uncategorized | Comments Off on Learning about Private Equity in High School

High school finance classes are a great way to learn about the world of investments. If you’re learning about the stock market and how to invest your money, you may also be learning about private equity. What exactly is private equity? Put simply, private equity is a group of alternative forms of investing. There are many alternative forms of investments. Here are three of the most common types. Leveraged Buyouts Leveraged buyout funds are used to obtain controlling interest in a company. Investors use a combination of funds to purchase companies that are in sound financial condition – meaning they’re presently making money. Investors that participate in leveraged buyouts use a combination of funds, including bank loans, equity in other companies, and personal funds. In most cases, the investors will use as little of their own money as possible. This limits the personal losses they may experience should the investment fail. Venture Capital When Mitt Romney ran for president, he put venture capital funds in the spotlight. In fact, one of the companies that Mitt Romney was a partner in, invested in start-up businesses – businesses that have little equity but have the potential to earn significant money. Venture capital funds are used to help new companies gain access to customers and partners that will maximize their earning potential. Most venture capital funds are divided into two groups – early stage funds and late stage funds. Early Stage Funds Companies that are starting up – or are in the early concept stage – often need funds to develop on their ideas. Early stage funds are used to develop talent and improve technology that will make the company more desirable to potential later stage investors. Later Stage Funds Once a start-up company has developed its talent and improved its consumer desirability, later stage funds will be used to make the company viable – or make it operational. Growth Equity Funds Companies that are looking to expand into other areas may look to growth equity investment funds for help with the expansion. In some cases, companies will scale back their normal operations to make room for expansion. When that happens, they may need additional funds for that new growth. Growth equity funds provide the financial stability a company will need while it ventures into other markets. Private equity is a crucial aspect of corporate investments. Now that you’re learning about investments in school, this guide will help you understand how private equity funds...

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Fixed Income Investments For Your Retirement Portfolio

Posted by on 4-04-15 in Uncategorized | 0 comments

When saving for your retirement, it is vital to have the right allocation of variable investments, such as stocks, and fixed income investments. Fixed income investments are those that have a specified return for a certain length of time. Financial advisers recommend increasing the percentage of fixed income investments in your portfolio as you near retirement. A general rule is to subtract your age from 110 or 120 to get an approximate percentage of how much of your portfolio should be in fixed income investments. Fixed Rate Annuities When investing in a fixed rate annuity, an investor can choose a deferred or immediate annuity. A deferred annuity permits the principle investment to grow tax-deferred during the accumulation phase. The investor then receives periodic payments when the payout phase begins. With an immediate fixed rate annuity, the investor receives periodically scheduled payments as soon as the money is invested. The size of the payments depends on the current interest rates, the amount of the investment, and the investor’s age. Bonds When you purchase a bond, you are loaning money to a company or government in exchange for regular payments at a predetermined interest rate and the return of the initial investment.  A bond is a fixed income investment because the amount of interest is guaranteed. Some bonds are backed by a third party who guarantees the principle portion of the bond, while others do not have such a guarantee. Guaranteed bonds are considered safer than non-guaranteed bonds and generally have a lower interest rate. Bonds also trade on a secondary market, permitting investors to purchase them at a discount or premium. This can affect the ultimate overall return of a bond, though the interest rate remains the same. Certificate of Deposit A certificate of deposit, better known as a CD, is a savings instrument that pays a stated interest rate for a specified term. Terms vary anywhere from a month to five years. Investors can elect to receive the interest payments during the CD’s term, or they can reinvest the interest so that their money grows even faster. The rate of a CD varies based on the amount of money invested, the term, and the interest rate climate. Some banks offer promotional rates for new customers or for those investing money from another financial institution. CDs are issued by banks and are insured by the Federal Deposit Insurance Corporation (FDIC) for up to $250,000 with a standard account. Specialized accounts or unique owner situations may be insured for a larger amount. When it comes to preparing for your retirement, you want your money to work for you. The best way to do this is to invest in savings vehicles that meet your personal comfort level, age, and financial situation. Fixed income investments are a necessary component of most investors’ portfolios, enabling them to safely grow a portion of their savings. For further assistance, contact professionals, such as those from Fogel...

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Dog Gone! How To Relocate To Ecuador With A Beloved Family Dog

Posted by on 4-04-15 in Uncategorized | 0 comments

In the United States, over nine in ten people consider their dogs to be members of the family. When Americans choose to relocate to other countries, it is no secret that the transition’s impact on the family dog is an extremely important matter. If you are buying international property for yourself and your dog, or to market to Americans, you will be considerably more successful if you know the ins and outs of that country’s stance on dogs. The Republic of Ecuador, located in northwestern South America, is consistently praised as one of the best relocation destinations and best real estate investments for Americans. Thus, buying investment property in Ecuador, either for yourself or to lease to American citizens, is a wise decision. Here is a look at Ecuador’s laws on dog importation, and tips for relocating there with a pet. Importing Dogs Into Ecuador Ecuador is also very accommodating to pet owners. The country does not have a mandatory quarantine. Before relocating to Ecuador, American dog owners must provide proof of up-to-date vaccinations, and the dog must also pass a parasite test. Furthermore, a veterinarian must complete an official exam and find the dog in good health. The pet owner should call the Ecuadorian Agency of Quality Assurance in Agriculture three days prior to arrival. Things That American Dog Owners Should Consider Whether you are purchasing property for yourself or for other Americans, learn how relocation will impact family dogs. For example, the mean elevation in the United States is 2,500 feet. Ecuador, on the other hand, has a much higher elevation. The capital is 9,000 feet above sea level! Altitude sickness affects not only people, but also pets. An American dog relocating to Ecuador must overcome this altitude difference, and older dogs and dogs with respiratory illnesses will not adjust as well as younger, healthier animals. Also, the selection of pet foods available in Ecuador will differ from those available in the United States. Before relocating to Ecuador, an American should find out what kind of food the dog will eat in Ecuador, and slowly wean the dog off of the American food and to the new food. As an alternative, the dog can switch to a homemade diet that will be continued once in Ecuador. Consider, also, that Ecuador has its own wildlife and insect populations that differ from those here in the United States. As a result, all American dogs should visit an Ecuadorian veterinarian as soon as possible after arrival to ensure that the pet is protected against current diseases and parasites. Parting Thoughts More and more people are relocating to countries outside of the United States, including Ecuador. The more that you know about how this relocation will affect family dogs, the more smoothly your personal relocation will be. Or, if you are purchasing Ecuadorian property for the purpose of marketing it to Americans, this knowledge will better prepare your clients in their own...

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3 Reasons To Start Investing While You’re In Your 20S

Posted by on 3-03-15 in Uncategorized | 0 comments

If you are in your 20’s, you might think that you have many years to start investing in the stock market and other potential investments. Now might seem like a time to have fun and start acquiring things for yourself and your family, but you should know that it’s often smart to start investing while you are young. If you haven’t yet thought about talking to a financial advisor about investing now, consider these main reasons to do so. 1. Get in the Habit Saving money is never easy, no matter how much you make. If you wait until you are older to start putting money away to invest and save, you might find that it’s harder to get in the habit than you think. If you start now, however, you can go ahead and get accustomed to putting aside part of your paycheck for the future. Then, we you have a home of your own, kids and other responsibilities that you don’t have now, you’ll already be in the habit of it. 2. Have a Safety Net As someone who is young, you might feel relatively untouchable. Hopefully, you will have good health for a long time to come, and your income should just get higher and higher as you get older and get more experience in your field. Unfortunately, however, you never know what could happen. If you get sick, get laid off or deal with another personal tragedy, you won’t want to know that your money has all been spent. If you start investing now, you’ll have a bit of a safety net that you can tap into if you find that you really need it. 3. Acquire More Wealth You’ll be able to acquire more wealth if you start investing now for a couple of reasons. First off, you will obviously be putting in more years of investing before retirement age if you start early. Secondly, your money will have more time to accumulate interest. Therefore, if you want to be truly comfortable when you get older, investing in your 20’s is a great way to ensure more wealth. As you can see, there is no reason to wait until you are older to start investing. In fact, you can enjoy many benefits if you start investing now. Luckily, if you talk to a financial planner, you can get advice for the best investing for your age and...

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