More people, especially younger folks, are getting interested in the stock market these days. With so many brokers out there (about 132 in the Philippines, with 21 offering online services), choosing one can be tricky. Here are some tips to help you decide: 1. Old School or Online? First, you need to decide between traditional and online brokers. Traditional brokers are the ones you call on the phone to buy or sell stocks. They're good if you like talking to a real person, but they charge more for each trade, up to 1.5%. Online brokers, on the other hand, let you buy and sell stocks on a website. It's faster and gives you quick information, plus they charge less, sometimes as low as 0.25% per trade. 2. Reports and Analysis Next, think about what kind of information you need. Some brokers give detailed reports about companies, while others focus more on charts and graphs. Pick a broker that gives you the kind of information that helps you make decisions about stocks. 3. How … [Read more...]
The world’s best investment
Today is Christmas day. But my blogging schedule today is financial management and investments. I’ve been thinking lately about what to write on Christmas day, I don’t want to go about the traditional route focusing on Christmas topics (like the Corruption of Christmas or Should Christians celebrate christmas.) I finally found my topic by reconciling my blogging schedule and today’s special holiday. When talking about investments we always want to consider the rate of return. We want to know how much we will be earning per annum. We then compare it with other investments, weigh the risk versus the rewards and make a decision on the matter based on whether the risk involved is compensated by the reward that can be obtained. But what do you think do you think is the best investment in the world? The answer is found in the pages of the Holy Scriptures. The Bible says in Proverbs chapter 19:7, “He that hath pity upon the poor lendeth unto the LORD; and that which he hath given … [Read more...]
The Magic of the Rule of 72
“The most powerful force in the universe is compound interest” – Albert Einstein. Albert Einstein’s greatest discovery was not the theory of relativity, it was the Rule of 72. (Although some people say that the rule existed long before he was born, most would agree however that he has popularized it) What has the Rule of 72 have to do with investing? Basically knowledge of the Rule of 72 is the basic building block of learning that each budding investor should have. Simply stated the Rule of 72 helps you determine the following: 1.) What interest rate you should avail of in order for your money to double quickly. 2.) How many years does it take for your money to double. In a nutshell the Rule of 72 is stated as follows: 72 divided by interest rate return = No. of years it takes for your money to double. So, if you put P 100,000.00 in a bank account, it will take 72 years for your money to become P 200,000.00 since the bank only … [Read more...]