Smart Money

Have you ever experienced a failure in investing? if ever I will provide information about investing from smart money books written by Ken and Daria Dolan

 

Chapter 1

Dealing with Your bank

 This par tell we about how to determine if your bank is healthy, and help we to choose the best savings and checking accounts, and explain the many  services now found in your local bank. And we can need all the help we can get in this confusing and expensive world of deregulate bank.

Because, before you commit your money, get we know the banker and services. If we can’t have access to your own personal banker, do your business elsewhere. And bank are not for profit orgazinations, exiting seloly to provide safe haven for our money.

The new  competition in the banking world, we need to take the time to find the best rates and services available. Cause competition isn’t necessarily bad for the depositor, but it does mean we must examine each institution carefully to find the right combination of hight yield, individual attention and safety. Smart investing begins wih smart banking . Here are the steps to find the best bank :

•   Compare rates. Track them for a number of weeks and see how they compare with others in the area.

• Check out the lobby. If there are long lines, don’t expect quick and efficient service.
• Consider whether the bank is convenient. Find out if it’s open evenings and weekends and if the cash mechines are close to home or work.
•  Put bank fees under a magnifying glass. Deregulation has forced banks into offering higher rates, which many try to balance with higher fees. Good banks will provide you with a list of fees and charges.
•  Assess the services. Make sure the bank will fit your needs 

Chapter 2

The stock market

This chapter to provide some of those looked for answers and help educate and enable you to have a better working understanding of what makes the stock market tick. The crash of 87 should be used not an excuse to avoid all stock investing forever, but rather as the reason to learn more about what stock and stock markets are so that you’ll be able to take advantage of certain situations.

In addition, by investing in stocks, anyone with a few dollars can become an owner of a piece of corporate America and perhaps make a good deal of money. For story of an investment gone sour, there are an equal number of success stories. Successful stock investing is a combination of smart planning and good timing. There are profits to be made if you keep these suggestions in mind :

•   Educate yourself before you invest.
•   Don’t jump on emotional bandwagons. Buy stocks that make economic sense.
•   Have patience : rome wasn’t built in a day.
•   When you make a mistake, admit it and sell.
•   Don’t be greedy. When you have good profit , take it.
•   Don’t follow hot tips. They often lead to cold stocks.
•   Set profit and loss limits when you first buy a stock, and stick with them. It’s better to leave the game early and retrun to play another day.

Chapter 3

Bonds

            Bonds is a debt security. It represents a creditor a company, not an owner. Before company can pay divindends to stockholders, it must first pay interest to bondholders. If a company files for bankruptcy, the bondholder receives his or her share of the company assets first. These claims are settled before the claims of any stockholders. For this reason bonds are called senior securities.   This chapter recomend some caution before we invest :

•   Stay on top of the general  prediction of interest rate directions. The underlying value of your bonds will react in the opposite manner.
•   Know the rating of the issuer before you buy.
•   Check the rating of your bonds periodically.
•   Keep your bonds at the firm where you bought them when possible instead of taking possession of the certificates.
•   Remember that short-term bonds face less interest rate risk than long term bonds.
•   Know all call dates before you put your money down.

 Chapter 4

Investing with uncle Sam

            This chapter tell we if measuring risk and reward is the key to successful investing. By investing with uncle sam , we are able to minimize the risk and yet maintain a reasonable reward. And goverment securities offer a great deal of liquidity, with safety and moderate returns. There are few cauntion to mention to an investor in goverment paper, unlike some other investment alternatives :

•   Take the time to learn how to quotes.
•   Simple because uncle sam guarantees an investment doesn’t necessarily make it right for every investor.
•   Interest rate movement affects the market value of goverment bonds and series HH bonds are subject to more interest rate risk than short term treasury notes and bills.
•   Some goverment agency issue are not backed by uncle sam.

•   Don’t look for a lot of help from brokers with goverment securities purchases.

i hope that can help we for investing, wait for the next chapter. thanks for read my blog.😊💗💗💗