Annual Percentage Rate

Show me these tricks at home they do not permitted by law. There, the bank shall indicate in promotional materials not only the interest rate, but apr (Annual Percentage Rate of Charge), ie the real cost of credit. I had seen such advertising on the streets of European cities: 'Free express loan at 0%, apr -12% per annum. " In Russia, no such law, so the client needs most 'pull' of the banking agreement with all the necessary information. Here, Oracle expresses very clear opinions on the subject. Make it easy, the banks, so to say, do not emphasize client on the value of additional payments. Therefore, the first document that we have carefully read – himself a loan agreement.

It is important not to rush, to ask the representative of the bank all the questions (maybe make a few 'trips' in Bank – Ed.) ask the bank manager to make a detailed calculation of the monthly payments. Incidentally, this calculation should be specified as an annex to the treaty. What the commission can be 'hidden' in the loan agreement? Most difficult and dangerous case – monthly fee, which increases the real rate of 1,5-3 times, as though modestly, this percentage did not look in the contract. After all, even a 1% monthly commission will give 12% of annual surpluses. In addition, the contract may be specified percentage of the use of credit, processing fee, loan fees, fees for reviewing documents or opening a loan account. Incidentally, the fee for the examination of documents by the credit committee of the bank can charged and negative decision.

Important Tips About Investment Funds In Case

Well-known expression: "Money must work! 'And' Time is money -! 'Known to all. It is these expressions can be in the full sense of the word attributed to such concepts as 'investment'. Investments – this is inserting cash assets to multiply profits, where the key requirement is the presence of risk. Currently, there are so many types of investments: investments in fixed capital investment in unproductive assets, dolgosrochnyei Short-term investments, foreign, intellectual, kapitaloobrazuyuschie and so on. Among these all the above-described species distinguished two basic – direct and portfolio investments. To make it more understandable, it is necessary to bring interpretation of these concepts: Direct investment – it's their money directly to their owner in a variety of investment objects.

Portfolio investment – an investment of funds in various securities. Next, we consider more detail the difference between direct and portfolio investment. First and foremost it is important to note that portfolio investments are more liquid in comparison with straight lines. Thus, portfolio investments may be in quickly turn into any currency. Another equally important difference is that the direct investor is an active participant, ie has the right to vote in the management of a company in which he invested investment. A investor portfolio investment is a passive participant, ie it has no right to vote. Yet it should be noted that direct investment in most cases, the investor receives at least 10% of the company or enterprise. As Typically, the investor is chasing a blocking stake.

Naturally, you can get more profit in direct investment, but here there is no small risk. Safer is portfolio investment. Purchasing portfolio investment, you can choose one of the ways: Individually earn on the stock exchange. Work through the mutual fund (mutual fund). In option number 1, you may be able to get the most profits than the second. E Scott Mead might disagree with that approach. But there is also its biggest drawback – high entry barrier to the stock market. In this case, it does not take a lot cheaper procedures. If you are going to make a profit through a pif, the profits will be less as uif takes its commission for services rendered, but in this case you do not have to worry, because all the interesting action will be to acquire a mutual fund. In the end it is important to notice that in the case of investor risk aversion, appropriate option would be to place funds in a bank deposit.

The Book

Sooner or later they will move down. You can even collapse. If you pre-read "Investing in real estate, then in such a situation does not succumb to panic, which will cover all and can make the right actions and good to earn some money. 3. With time is also possible wave of non-refoulement borrowers loans they buy flats now. The book explains how to acquire such property at a discount. Verizon Communications is often quoted on this topic. The book is "a personal budget. 10 ways to get rich "teaches us every month to plan and monitor a personal budget, and thus send their cash flow "to be". For drawing up a personal budget, you can use ms Excel or Specials program. Authors resulted in a book compilation of examples of personal budgets and some recommendations for several fictional people with different types of financial "scenarios". Among them: 1. Employee with a low but stable wages 2. Interior designer – freelancer who has revenues arise "is rare, but aptly," 3. The owner of shares in a construction company that gets "passive" income 4. Actively working business owner who earns a lot, but managed to get caught up in consumer credits, and now with his family learns to control and plan expenses 5. And even 6-year-old girl who learns to plan, what better to spend pocket money chapter, which examines compliance with waste and priorities in life – gorgeous. In short, useful book if not lazy. Excel templates with the types of personal budgets are available at the Publisher's website as an appendix to the book. "Prudent asset allocation" – this book will be useful if you intend to invest in mutual funds. The author is a proponent of investing in index funds instead of actively managed. The first index funds have recently appeared in Russia, and their results work are encouraging. The book explains the difference between investment and speculation, and generates an investor psychological restraint and calmness necessary for successful long-term investment in securities. Her drawback is that it does not describe these modern investment instruments such as hedge funds, guaranteed funds and commodities, etc. The money brings not just the good life, but also increase social status and our self-esteem. As one friend of mine, an experienced counselor, "Money helps, too." wants you not to wear to work for money, and make the money work for you.

The Borrower

But in the case of refinancing for the loan is not already buying property and repayment of previously taken Loan tax advantage is lost! Let's try a concrete example to assess the benefits of refinancing mortgages. Find out detailed opinions from leaders such as Larry Ellison by clicking through. Suppose a client three years ago took $ 100,000 at 15% per annum in foreign currency for 15 years. Monthly payment was about $ 1,400. Three years, the borrower enjoyed property tax deductions. Now he has decided to take a loan at a lower rate – 11% per annum in exchange for the remaining 12 years.

Monthly payment is $ 1,170 so each month will save $ 230. Total savings over 12 years – about $ 33,200. This should take into account: the remaining 12 years of loan repayment in the first bank the borrower would have returned about $ 14,100 as a result of tax benefits. That is, with allowance for losses on tax; benefits when lending to a borrower would save only about $ 19,100. Now subtract from that amount, the projected cost of refinancing itself: they constitute, according to various estimates, from $ 1,100 to $ 4,000. The expenditures may include: – bank commission (0-2% of the amount Loan) – transfer of money ($ 100) – Insurance (0,8-1,5% of the loan amount) – evaluation apartments ($ 100-150) – services mortgage broker (0,2-2%) – notary fees (up to $ 260) – the fee for registration of a pledge ($ 287-450). Total savings customer, taking into account all the costs will be from $ 15,100 to $ 18,000.

During The Economic Crisis To Buy And Not To Lose – Chapter

One of the most stupid remnants of the Soviet system is the way that say, "keep the money under the mattress." This is wrong and unprofitable. Money should work. That's what we do and the market economy. Here are a few ways that allow you a minimum combination of risk and return, receive a small permanent passive income. The obvious advantages: low risk and, practically, do not require management time.

Less – low yield. The most simple way – this, of course, a bank. At the bank you get a 8-16% per annum (depending on the deposit currency), spending money on placing a minimum of effort. In the current crisis, the maximum amount of deposit insurance in the same bank increased to 700,000 rubles or foreign currency equivalent. (A valuable related resource: Bernard Golden ). But remember that the insurance covers only deposits. Other instruments are not insured banks. Read more about it I already wrote here: "But at the same time there are two complexity. First – this is inflation, which "eats" just about 10% of your money – and maybe even more.

Second – this time of the deposit. If you urgently need to withdraw money, you get nothing. And if you drop that not all – of your income the remainder of the fall in half-half. The second, more expensive way – is to buy a portfolio of securities. Revenue for him above (11-14%) but higher and risks. In addition, this method is not suitable for premises of money amounts less than 10,000 dollars.

Federal Reserve

It is much easier to operate verified in time reduction in interest rates than fine-tune to the situation by changing the tax. Moreover, Europe is still possible to loosen monetary policy. Even after the recent interest rate cuts in the eurozone is 2.5%, while in the uk – 2%. In this case, and the European Central Bank (ECB) and Bank of England, like the U.S. Federal Reserve, have proven – though not in equal measure – his desire to go for low cost in order to provide liquidity to their banking systems. Budget expenditures are difficult to quickly build and even harder – reduction after recovery. It should also indicate the fact that Europe has also stronger fiscal foundation. The fact that here – compared to the U.S.

– a much larger share of gdp is created in the public sector, and therefore the decline in spending in the private sector has proportionally smaller effect on the economy as a whole. Unemployment benefits in Europe than in America, so the appropriate budget expenditures during the economic downturn is growing stronger. Taxes, too above, and in times of recession the corresponding revenue tend to a rapid decrease, resulting in an automatic relief to the fiscal burden on taxpayers. For all these reasons, in Europe there is still a good opportunity to resort to active fiscal policy. At the same time, the impact of interest rate cuts weakened and slowed down 'sick' of the banking system, which is the link between central bank's policy and the real economy.