Are Your Money Styles a Match?
This section is especially for those people who are intending to get marries and the implications that must be thought of financially. Planning your wedding and its budget probably is the first major undertaking in terms of financial planning that a couple makes. For you to go ahead in life together and build a future, then the individual approaches of each partner should be considered and respected.
The Following are Types of Money Managements
The Savvy Saver
A Savvy Saver is somebody who takes their personal finances seriously. You will have drawn up a fiscal plan and you will stick to it. Although you understand borrowing, it is something that should be used cautiously. Before you spend, you will earn extra cash to underpin your funds. All your financial habits are good ones and will serve you well in the future. But do not forget that it is OK to spend now and again. Looking for a financially secure future does not mean that you have to be a miser.
Sometimes Savvy / Sometimes Super Saver
Although fully aware of financial planning and saving, on occasion you are tempted to choose an expensive label than an off the peg suit. Sometimes you listen and other times you are prone to ignore sensible advice. Mostly you are prudent with your saving and money, but there are times when a friend calls then shopping becomes a priority.
Most of your expenditure is under control, and you are fully aware of how much you should be putting aside for the future. But you need assistance, to help write out a manageable budget that you can realistically stick to. Identify the things that distract you from any budget plan and develop a plan to overcome them. Perhaps build up a special shopping fund, separate from your budget.
“The next round’s on me!”
Portfolios and savvy tax-efficient investing do not interest you one iota, they are items that are better off being ignored so you can live life to the full. You budget plan is non-existent and does not stretch out past pay day. You are commonly behind on rental payments and credit card bills.
If this is your situation then you really need to stop what you are doing, seek financial help from advisers to help and stop any further downfall. Self-discipline is a major priority and you have to develop a plan and keep to a budget. It may be wise to set up withdrawal limits on your account on a daily or weekly basis to help to keep in line.
Most couples, not surprisingly, have different individual priorities in life and money. You must learn as a married couple to understand each other’s wants and financial leanings and learn to compromise.
For any couples seeking financial advice how the two go forward as one is a good idea. Finances are an emotional issue and an advisor can offer an independent viewpoint based on his experience. If you have already done this then good luck for a happy and financially sound future.
Stocks that are of low value and often start at less than a dollar are called penny stocks. They are mostly traded with promises of great potential.
Companies that are new to the stock market very often issue penny stocks, this is because they may not have been in business long enough to have carved out a successful trading record or a sound financial reputation. The company may also have a fledgling board and inexperienced management team. All these factors can make the market nervous.
Investors considering entering into penny stocks should be aware that a market might not exist to sell the securities later, penny stock are named so for a reason.
A lot of investors are confused by the title, in fact penny stock is considerable high risk security, unless the investor has considerable financial backing to overcome potential severe losses, then this type of trading stock is definitely not for them.
Get the Facts
Low priced shares or penny stock is easily open to manipulation, fraudsters intending on misleading or duping you are praying that you do not do sufficient investigation on the stock.
The common “pump & dump” scam often uses penny stock as the bait. A salesperson / firm accumulates a number of penny stock, and using typical domineering sales techniques, the stock is bandied around to potential investors.
At first in the short term the value of the stock goes up, as long as the originator can keep on selling and bringing in new investors the scam continues (this includes encouraging clients to increase their holdings at a higher price). When new investors purchasing these securities come on the bandwagon the stock becomes illiquid and prices fall. Duped clients now have valueless securities on their hands.
Where to go for Information
Fraudulent people and companies are getting increasingly more sophisticated and keep inventing new ideas how to defraud and spread false information. Therefore it is always wise to cross reference and investigate any information with a reputable source.
Financial and corporate information comes if many forms including:
- Yearly Reports
- Financial Statements
These can all be sought from a number of sources including; the public library, stock exchanges or you financial adviser / dealer.
Before a firm starts trading and looks to sell stock there are a minimum set of listing requirements. These all relate to a firm’s financial positive status the, list of shareholders and current management. If a company cannot satisfy these requirements they can only trade over-the-counter stocks. This over-the-counter market is comprised of a network of dealers who trade together or on behalf of individual investors or even themselves.
The Changing Markets
In most cases penny stocks are traded in over-the-counter markets or on junior exchanges. This does benefit some potential investors as these type of institutions are regulated, have a fair and accessible market, and they do offer protection through regulatory standards, consistent regulation and good market information.
How do you recognize a Penny Stock Scam?
Following is a list of some tell-tale signs –
- Contact made that is unsolicited, normally by phone, fax, internet.
- Pressurized sales tactics, urging you to make a snap decision.
- Unusual high gains in the offer, and such promises are not permitted. No registered dealer would make such claims.
- The claims of associated small risk, high gains come hand in hand with high risk.
- If there is an offer to discount fees and commissions something is wrong, normally penny stocks are traded with higher commissions.
- “Insider Information”, if this term is used run a mile, at the best this is illegal and carries severe penalties.
- Non-disclosure of any shareholder information is a big red flag. No reputable dealer would withhold such information.
The USLCB continually persevere to track and find long-standing stock firms that have been proven to use pump and dump schemes. No matter where the offer or information came from, perhaps a reputable company, get independent advice and do your own research. The USLCB is at the lead in providing investor protection, but you can help yourself by always having the correct information at your fingertips.