Basics for Newcomers to the Stock Market

If you live in Arizona then you’re probably familiar with the shaky housing market that has affected many people. Arizona still has a ways to go toward stability and with so many investing a large portion of their livelihood in the housing bubble, many lost big. As an article on State Press reported, houses are not stocks and it ís time that people stop using them as such. If you’re looking for ways to introduce more stable assets into your portfolio, consider investing in the stock market. If you’re looking to move your assets out of the housing and into the stock market, but youíre just not familiar with how it works, there are a few basics terms and principals to get you started.

  • Defining Stocks

  • Why Most People Invest?

  • How To and How Much?

Defining Stocks

A stock is capitol raised by a corporation through the issuing of shares. A share is a divided-up portion/unit of the value of a company. A stock is simply a share in the ownership of a company and is a representation of the company’s earnings and assets. The more stocks acquired in one company, the more ownership stakes a person possesses of any given company. Owners of stock are known as shareholders, and these shareholders are entitled to their share in the companyís earnings.

Why Most People Invest?

The overarching goal with stocks is to make money. Many people were lured into the housing market because they saw it as a similar opportunity but ended up loosing their livelihoods. Investing in real estate proved to be a volatile investment and it hurt a lot of people who bought into the hype. This isnít to say that stocks don’t carry a certain level of risk but you can more easily manage your assets than other types of investments because you have greater control. If you’re looking to shore up your investments then some wise planning and approaches could help any person in establishing finically stable future.

How To and How Much?

There are stocks sold through a formal stock exchange, such as AMEX or NASDAQ and there are also stocks known as “over-the-counter”. Over-the-counter stocks refer to stocks traded by a dealer network rather than a centralized exchange like the more traditional NASDAQ. The variety of stocks you can buy is extensive and the prices of stocks also vary considerably. A person can invest in stocks in upwards of $500 or as little as a $0.01. It all depends how much capital you have on hand to invest and what kind of companies you wan to invest in.

Once you’ve done your research on which stocks you want to invest in, youíll need to have a broker or set up a brokerage account to handle your purchases. This can easily be done online. A broker will give you the stocket market help necessary to diversify your investment portfolio, and will determine whether you want to put your funds in long or short-term investments. Itís really up to the individual as to what kind of level of risk they’re comfortable with.

Consult A Market Professional

These basic terms and approaches will be helpful towards getting you started but for a more compressive understanding with the intricacies of the stock market, you’ll want to consult a market professional that can better guide you through the process and advise you on which stocks are right for your unique investment needs.

If you live in Arizona then youíre probably familiar with the shaky housing market that has affected many people. Arizona still has a ways to go toward stability and with so many investing a large portion of their livelihood in the housing bubble, many lost big. As an article on State Press reported, houses are not stocks and itís time that people stop using them as such. If youíre looking for ways to introduce more stable assets into your portfolio, consider investing in the stock market. If youíre looking to move your assets out of the housing and into the stock market, but youíre just not familiar with how it works, there are a few basics terms and principals to get you started.

Defining Stocks

A stock is capitol raised by a corporation through the issuing of shares. A share is a divided-up portion/unit of the value of a company. A stock is simply a share in the ownership of a company and is a representation of the companyís earnings and assets. The more stocks acquired in one company, the more ownership stakes a person possesses of any given company. Owners of stock are known as shareholders, and these shareholders are entitled to their share in the companyís earnings.

Why Most People Invest?

The overarching goal with stocks is to make money. Many people were lured into the housing market because they saw it as a similar opportunity but ended up loosing their livelihoods. Investing in real estate proved to be a volatile investment and it hurt a lot of people who bought into the hype. This isnít to say that stocks donít carry a certain level of risk but you can more easily manage your assets than other types of investments because you have greater control. If youíre looking to shore up your investments then some wise planning and approaches could help any person in establishing finically stable future.

How Much Money Do You Need?

There are stocks sold through a formal stock exchange, such as AMEX or NASDEQ and there are also stocks known as ìover-the-counterî. Over-the-counter stocks refer to stocks traded by a dealer network rather than a centralized exchange like the more traditional NASDEQ. The variety of stocks you can buy is extensive and the prices of stocks also vary considerably. A person can invest in stocks in upwards of $500 or as little as a $0.01. It all depends how much capital you have on hand to invest and what kind of companies you wan to invest in.

How to Buy Stocks?

Once youíve done your research on which stocks you want to invest in, youíll need to have a broker or set up a brokerage account to handle your purchases. This can easily be done online. A broker will give you the stocket market help necessary to diversify your investment portfolio, and will determine whether you want to put your funds in long or short-term investments. Itís really up to the individual as to what kind of level of risk theyíre comfortable with.

These basic terms and approaches will be helpful towards getting you started but for a more compressive understanding with the intricacies of the stock market, youíll want to consult a market professional that can better guide you through the process and advise you on which stocks are right for your unique investment needs.

Arizona Payday Loans: Not For Everyone

Arizona Payday Loans: Not For Everyone

The popularity of borrowing against your next paycheck – what a payday loan is – suggests it is the fast cash solution for everyone in Arizona.

But if you live in Arizona, payday loan are not necessarily the best way to cover emergency bills and surprise expenses. If you have a credit card with a sufficient credit limit and a low APR, that might be a better choice. Some people use a home equity line of credit for extra cash (although many financial experts caution against it). Of course, a short-term loan from a friend or family member might be a good idea as long as you honor a repayment date and add some interest or other “thank you” fee.

But those options simply are not there for millions of people. For them, their best choice (assuming they have been employed for at least one month, are 18 years of age and have a bank account) is a cash advance against their paycheck.

What factors should be present in the Arizona life of payday loans borrowers?

 

  • Have a short-term need

 

  • Can repay it in about 30 days

 

  • Are busily engaged in work and family

 

 

Have a short-term need

An Arizona payday loan should not be used to purchase a home or car. These are for emergency expenses, including bill paying.
The process for getting such a loan is streamlined with the Internet. It is possible to apply entirely online, get your loan confirmation within an hour and the money is direct deposited into your account by the next business morning.

Can repay it in about 30 days

An Arizona payday loan should be thought of a short-term loan to be paid off very soon. A 30-days (or less) repayment period is ideal.

Busily engaged in work and family

Within the other choices available, including the option to take out a car title loan, it might take hours to study where to find quick cash. In Arizona, payday loans are a simple, easy-to-understand and fast solution.

What is Right For You?

Remember that all these important factors aren’t required for an Arizona payday loa, but they are highly suggested so that you can handle the financial weight of an Arizona payday loan. Consider all of your options before deciding on any financial decision. Carefully planning your financial future will help prevent situations that would require a need to get an Arizona payday loan.

A Look At Retirement: IRA’s and Roth IRA’s

No one can predict the future when it comes to retirement especially as we look at real estate, mortgage rates, savings rates or the stock market. While there are experts can anyone really predict with any great degree of accuracy what’s going to happen? Personally I don’t think so.

But based on past performance, one of the best investments for retirement is an Individual Retirement Account – IRA. There are many types of IRA’s and one of the first questions I know I asked when I started looking at them was which is better: Roth vs. Traditional IRAs.

  • Are They Differences
  • Traditional IRAs
  • Roth IRAs

Are They Differences?

What are the differences between them? Which one is better for you? Although I can’t tell you which one to choose, I can give you a mortgage guy’s rundown on what I know about each one to help you make your own decision. After you read this, your next step ought to be to call a financial planner or tax professional to fill in the gaps from what I have written about here.

Traditional IRAs

Basically, a Traditional IRA is a tax-deferred retirement account. That means contributions to a Traditional IRA may be tax deductible, depending on your income.

One advantage of the Traditional IRA is that, because the money is invested before taxes are paid on it, it potentially allows you to lower your tax bracket at the time of investments. Another advantage is that, when you retire you usually make less money and therefore the taxes you have to pay on your withdrawals will be less. Also, the money grows tax free until you withdraw it.

Here are a few more facts about the Traditional IRA:

  • Income limits – Everyone is eligible to own a Traditional IRA, but there are limits on tax deductions you can take.
  • Withdrawals – You can start withdrawing from your IRA at age 59 1/2, and your withdrawals will be taxed as regular income. You will pay a 10% penalty for early withdrawal, although there are exemptions to this rule.
  • Required minimum distributions – You must make withdrawals starting at age 70 1/2.

Disadvantages of the Traditional IRA include the required minimum distribution, which must be taken whether you need the money or not, and the fact that it isn’t easy to know in advance what your tax rate may be in retirement.

Roth IRAs

While the Traditional IRA is tax deductible, the Roth IRA is tax exempt. That means that, while contributions to the Roth are taxed, withdrawals made during retirement are tax-free. Another advantage is that there is no required minimum distribution.

  • Income limits – Unlike a traditional IRA, the Roth has income limits that limit who can participate in the program. Income limits can change every year. You will need to check with your financial planner to see whether you exceed the Roth IRA income limits in any given year.
  • Withdrawals – The minimum age to withdraw from a Roth IRA is 59 1/2. The principal can be withdrawn at any time without penalty, however if the interest is withdrawn early there can be penalties. One exemption to early withdrawal penalties is if the IRA owner uses the money as a down payment on a first home (I have had several mortgage customers take advantage of this program feature to buy a home). This is true for both the Roth and Traditional IRA.

Which One Is Better?

So which one is better? Well, there are pros and cons to each. I can’t tell you what is going to be more advantageous to you, so maybe the best course of action would be to discuss it with a financial planner or tax professional.

This site is for informational purposes only. It is not sponsored or in any way affiliated with the government. If you are in need of a mortgage loan, consult with a licensed mortgage professional. All fair housing and equal housing opportunity laws apply when applying for a mortgage or buying a home. Copyright 2012.