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The stock market doesn’t know you’re a woman

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Do you consider yourself an investor? If you’re a woman, the answer is probably “no.”
Even women who easily manage their budget often are reluctant to embrace the idea of investing in the financial markets. But it’s probably even more important for women than men that they harness their money to the power of those markets.
Here’s why: A confluence of factors is leading to a chasm in the amount of retirement income women have compared with men. Thanks in part to the gender wage gap and lower average Social Security benefits, plus smaller retirement-account balances, the median annual income of women 65 and older is 42% lower than men’s, according to a study by financial-services firm Prudential Financial Inc. The study is based on several data sources, including the U.S. Census and the Social Security Administration.
The retirement-income gap is compounded, at least partly, because women often hesitate to embrace investing. And one reason for that is generally women want to feel compl…

When a high debt can result to high returns

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You must have taken a peek at this year’s billionaires who made it to the top of the list of those who added fortunes to their wealth. How many billions did they gain over the previous year’s figures?
Most investors think that having a high debt is undesirable and must be avoided. Naturally, they tend to see it as adding more risks to a company’s present exposures. And once that company defaults on its debts because of underperformance, it could fold up.
Nevertheless, high debt can lead to positive consequences. It can bring in greater returns, even offsetting the greater risks involved in the process.
Enhancing yields
The major reason why debt can improve overall returns is because it costs much less than equity. A firm can raise capital either through equity or debt, with debt generally offering a less expensive option. Hence, maximizing a company’s debt levels in order to generate higher returns on equity is more logical. It can lead to greater profitability, stronger share-price p…

Why value investing could be the riskiest investment strategy

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For many years, value investing has grown to become a very popular and profitable investment strategy. Among those who consider value investing as a viable choice are Benjamin Graham and Warren Buffett – two of the most successful value investors with spectacular gains over a long period of time.
The expected returns from value investing are comparatively high, although the risks are oftentimes much higher than most investors can handle. This is because value investing can result in an investor being subject to value traps, which occurs when a stock’s price is low for a very valid reason. What are value traps?
Value traps
Surprisingly, value traps are more common than most investors realize. In spite of global share prices having increased from the beginning of the year, many other shares will still actively trade at significantly low prices in comparison to the broader index.
Although some might catch up and recover, others will not. Nevertheless, low-priced shares commonly appeal to…

Building Wealth through Passive Income Ideas (Part 2)

Passive Income Sources that Require an Initial Time Investment
Most of these sources will involve setting up a personal website or blog; but that is not actually an expensive proposition. You may utilize the services of Bluehost for this purpose. They will provide a free domain name and will host your blog at an initial price of only $3.95 monthly, a really cheap outlay for the opportunity to create a passive income source.
Publish and Sell an eBook Online – Self Publishing has become a profitable source of income for many individuals. More often now, any eBook you buy from Amazon could be a self-published work. This is because self-publishing has become significantly easy; you should try it to find out how easy it really is. It simply involves writing and editing a book yourself, designing a nice cover for it and then submitting to a platform, such as Amazon’s Kindle Direct Publishing. Although there is no guaranteed success, that should not stop anyone from accomplishing one of the t…

Building Wealth through Passive Income Ideas (Part 1)

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Do you want to earn some passive income? We give you twenty practical ideas to help you enhance your financial situation. You may need to invest some money or time to pursue your goals. Before you do choose which one will suit your needs and situation, take time to appreciate the meaning and value of passive income.

Proceeds from passive income streams demand an initial investment and plenty of careful attention at the start. But once you put in the time and the diligent work, the payoff starts to grow and can sustain themselves, providing regular monetary rewards with much-reduced effort in managing the investment.
From the actual personal experience of many people, augmenting to your portfolio the income from passive income sources can serve to enhance your earnings and fast-track your financial objectives in remarkable ways.
And so, if you want to begin cashing in on passive income ideas, arm yourself with these fundamental principles:
What Passive Income Requires
Firstly, let us do…

Personal Finance According to Billionaires

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It may seem rather inappropriate to receive personal finance advice from wealthy people, considering they deal with tons of money whereas the ordinary person can hardly scratch a decent living. What use can you get from such advice as “Invest in gold rather than in silver” and others of that sort? Nevertheless, they can offer some sound advice for any kind of financial situation. After all, they have an uncommonly wide exposure to many money matters. Get these free tips from some friendly billionaires:
Begin as soon as you can
For a few years, a Mexican businessman named Carlos Slim Helú held the distinction of being the world’s richest person, until Bill Gates reclaimed the title recently. Slim offers personal finance tips shared by most finance experts; and beginning early is one of them. This may not apply to people of more advanced age as they need to begin now to “redeem the time”, so to speak. For the earlier you start getting serious about handling, saving and investing your mo…

Cleaning Out Your Documents: What to Keep and What to Discard

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Are you doing a financial spring-cleaning this year? Scan your papers to keep an electronic bank of valuable documents. There are certain steps to observe according to the kind of expense, asset or transaction; but, in general, make sure that your digital files of your records are as legible and accurate as your hard copies and also as easily accessible when you need them.
So, what documents do you need to save or discard? Here is a rundown:
Taxes – You may need to keep your tax documents while the statute of limitations applies. These will include the following: W-2 and 1099 forms, invoices, receipts, cancelled checks, mileage logs, proofs of payment and other records pertaining to deductions, income or credits claimed on your return.
Student loans – Never ever discard your student-loan master promissory note because it the legal support for your loans. Keep it until the time you have repaid the debt.
Credit cards – It is wise to keep credit card statements for as long as 7 years.
In c…