Month: November 2018


How Not To Panic About The Stock Market

When the bailout plan was formed, many people were hopeful that the stock market would rise again, but the failure of the bill to pass caused panic in the market and thus led to the greatest single-day point drop! But before everyone starts to transfer their investments to other places, one must consider that this is not the worse we have seen. If your consider point wise, it may be the greatest drop but percentage wise its not the greatest drop. Also, if your original intention was to invest for a long term, then you might be making a mistake in transferring your investments, as it might be an opportunity to buy rather than to sell.

If you are young, then this might be a good buying time for you to start on long-term investments. If you’re older, just try to make sure that your investments are balanced and are going according to your plan for long-term investment. The Iowa Public Employees Retirement System has designed a calculator to help you estimate the investment and the return by adjusting the sliders to correspond to your age, income and requirements.

One thing to be careful about when making any type of investment is the expense ratios. These are the different types of fee the fund charges you when you invest. Make sure that the expense ratios are low (index funds offer lower ratios) as these can accumulate over the time and go up to tens of thousands of dollars.

The best way is to make a strong long-term investment plan and stick to it no matter what the market conditions are. The market will eventually rise and sooner or later, a bailout plan will come.…

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Hard And Soft Credit Inquiries, And How One Hurts Your Credit Score

There are two types of inquiries that a company may make into your credit record,i.e. “hard inquiry” or “soft inquiry”.

If a company makes a hard inquiry into your credit record,it will damage your credit score temporarily.Your credit score may be damaged only by a hard inquiry while a soft inquiry does not affect your credit.
If you are planning to get a mortgage or you need a car loan then in this situation even a few points difference in your credit score cannot be ignored and this small difference in your credit score may magnify into a considerably big change. So we need to know that how can we decide whether the inquiry is going to be “hard” or “soft”?
Whenever,a person or organization has to take decision on lending you money,in this case they would make a hard inquiry into your credit record.If you apply for a credit card or need to get approved for mortgage loan or apply for a car loan,all these cases would lead to hard inquiries into you credit record. From a credit union’s point of view, these inquires into your credit record may be divided into different categories. Trans-Union terms these inquiries “regular inquiries,” Experian terms them “requests viewed by others,” and Equifax terms them “Inquiries in the last 12 months”. Normally, hard inquiries may temporarily bring your credit score down by a few points. After six months, their effect is removed.

All inquiries other than that have been discussed above may be categorized as soft inquiries. Soft inquires are usually used by a person or organization when they do not have to make a lending decision. However, this is not a hard and fast rule, not all the companies do this; exceptions to this may also be seen. Prospective employers and landlords will use soft inquiries to appraise your financial risk. Banks usually use them for confirmation of your identity. Mortgage lenders or credit cards base their decisions on soft inquiries into your credit record to pre-approve you for a loan or a card. When you check your own credit history, this is also regarded as a soft inquiry.

Apparently, differentiating between hard and soft inquiries seems quite simple, but this is not actually the case. In your view, applying for a checking account might be a soft inquiry. It is, in fact, a hard inquiry. Someone on a forum I visit regularly has prepared a list of financial institutions that make hard inquiries when requesting you credit history and credit score for reasons other than loan approval and credit card. This list may be very helpful to a common man who does not have much knowledge about financial matters.…

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What is Money Jar Trap? (As in Savings)

It is a traditional way of saving money to place the extra coins into a jar. For centuries people have been using this way as it is quite easy way. Just collect the coins in a jar that have been saved daily and at the end of month count them and deposit them into your saving account of local bank. But in reality when we go in depth of money circulation it is actually way of losing money not saving it. People prefer this way to banks and other enterprises as they charge people for placing their money.

Another way to keep your money in market is to change it at a grocery store, coin star and other business. They will issue you a receipt that you can use for your grocery shopping, but they’ll also take a huge fee to do so. In result it would definitely decrease your saved money.

If a bank accept all the money you have they will charge you for it as well. As banks are paying on amount that you have in your saving accounts in a bank, so people left their money in banks for several years. This all results in down of money and become similar to jar trapping of money. That is actually losing money not saving it.

To actually know whether you are saving money or losing it few steps can be taken into account. First never change your money at a grocery store or any other similar place because this will automatically reduce your money to 10%. When you wish to place your money in bank check the policy of bank regarding charge on money. It differs widely from bank to bank and make sure you don’t have to be charged fro your amount. In this regard credit unions are better than banks as they don’t charge fees on your money. Incase you don’t found any bank that cant take coins without charging the fees. Then use that coins for your everyday needs. It would be much better than placing them in jars that ultimately reduce the value of money by the time.

Instead of saving coins, move up to $1 bills for your money jar. In this case you’ll be saving $1 bills instead of change. You don’t spend any $1 bills you receive, but any coins you receive are fine to use. This means use your coins for purchases that you made. At the end of the day, you place all your $1 bills into your savings jar. Since banks will not charge you anything to deposit $1 bills, you avoid the fees you would get for the change and save even more money than with coins. Another way to change the money is buying the stamps with the coins. By this you will get 100% value for your coins, which is better than paying fees to have the coins switched to bills.

So its valuable to remember that you can get full face value of a coin by spending them on time rather than collecting them and then paying fee for their deposit.…

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