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Facing drop Stock Market

Some people predict the financial market volatility will continue for several months and through many challenges. One of the things that could be considered is the concern over the economy of Europe and the United States (U.S.) back into a recession. Debt crisis in Europe, at times can be very serious threat. While the U.S. Federal Reseve can not seem to do much, though it lowers the interest rate of short and medium term.

There are five steps that can be done in the face of poor market:

Arrange the right strategy before the market gets worse
If you want to invest in stocks, there is a chance in a bearish market. You can buy high quality stocks when the stock market crashed. Find a company that will provide dividends in the near future. If you do not want to spend too much, invest in stages through the stocks that give dividends after that you can get out.

Plan before investing your money
Focus on short-term needs first, such as emergency funds, insurance expenses, tax bills and others. Avoid save money on insurance or banks that have exposure to Europe. Find low-interest bank deposits but safe.

Fatten your ‘pension fund’ 
Pension fund is not a pension, but the more money you can make from the stock market. Do not stop investing just because the market is down. You can buy more shares so the index drop. Find good companies, not only in domestic market but are looking to developing countries. This is the best way to get great benefits.

Protect your assets

Be honest to your financial adviser
If you think the risk has increased, you need to communicate with your financial adviser immediately. If you’re approaching retirement, ask your financial adviser to hedge against your stock portfolio when the market is falling.

debt

The loan is identical to the debt then it is definitely the debt must be returned along with interest in accordance with the agreed timeframe. Debt is very different from the investment, the investment obligations to provide investment returns may go up or down from expectations of being debt generally has a yield (interest) which remain in any condition.

Thus the concept of debt has a very strict (return under any circumstances) then it is a debt obligation that must meet the rule-making work productive, constructive rather than consumptive. So for a prospective borrower, if you want to take the debt then consider the following factors:

There are three possible allocations of the loan funds:
1. Productive use of debt to capital investment or working capital
2. The consumptive use of debt to buy goods that are used without any productive activities of goods
3. Constructive use of the debt used to pay old debts that have high levels of interest and repayments are higher than the new debt, the debtor in this case constructive restructure the payment obligations of debt that is running.

Namely the ability to pay the mortgage amount does not exceed 35 percent of income every month, this means very closely related to:
1. Term of the loan and advances paid
2. Interest debt rate

Management of risk on the debt, ie, if the debtor dies then the debt should have been protected with life insurance with a minimum sum assured equal to the amount of the debt.

Candidate who will owe the debtor must pay attention to the use of funds and ability to pay, if not bound to fall into a bigger debt hole. These two things must be done simultaneously even before the debt is taken.

If we use the debt to productive use, then the debt is a potential to accelerate the growth of our assets, in this case serves as a lever of debt (leverage) and will impact on asset growth significantly.

So which is better to use the funds in cash or in debt?, If we believe that debt is debt that is productive, then you may owe, but cash shall be allocated on a safe investment instruments such as mutual funds or fixed income can be combined with of gold.

investment

Maximizing Investment in Stock Market. Every person has a style different transactions. There are just going in and out (buying and selling a stock) same day. They do not want to hold the position when the market is closed. Some people love to hold them until the sale of one week or until the price they are targeting is achieved. Whatever our style, one thing to always remember is do not get greedy.

Make a target return on investment or return desired. As soon as we reach these targets and go out. Greed is always trying to hold us to stay afloat in issuer’s stock because we think the price will go up even higher. Make a tolerance limit losses eg 1% or 5% of our investments before we get out (cut loss).

Mistakes are often made ​​by many novice players are not dare to come out or cut loss. They do not want to admit that they have the wrong decision or wrong position, so a loss. But they still refused to come out or cut loss. As a result they have to survive the loss who suffered in the hope that one day will return and share their money back.

When studied properly, trading stocks is actually a fun and exciting activity. Especially when the market is down like now. Return the key word is discipline in the transaction. When we discipline our investments on a regular basis will undoubtedly provide a satisfactory total return on investment.

Understand the first estimate of funds needed prior to determining the investment option. Before determining the type of investment in education, parents should first know what are the estimated funds needed. Not a few people buy products without thinking about the benefits of that goal. Even parents tend to buy products for educational attached behind it.

In addition, assume the cost of education every state. Here are some educational investment choices:

Insurance education. According to its function, the insurance is for protection. Owners insurance is the father or mother who became the main breadwinner. Owners are required to pay insurance premiums in the amount and time suitable choice. The advantage, the owner of the insurance will get funds every time the sons and daughters enter the new education level. In addition, insurance funds will still be given if the owner dies without paying premiums again. Instead the funds were taken before his time will be subject to penalties, required to pay a certain amount.

Savings. Saving funds investing in savings may be the most popular because the process is easy, create an account at the bank and save some money by gaining interest rates ranging from 1-2% and cut taxes by 15% to 20% depending on the balance of savings. The advantage of saving money is not bound by time, you can withdraw funds at any time.

Deposits. Almost the same as saving money, time is money in the bank, but the flowers larger than the savings.

Property. Buying land or homes. Two types of investment the result is quite large, although the new can be enjoyed in a long time. You can buy a property with the calculation will sell 7 or 10 years when the price was high. This means that the property was purchased when the child was a child and planned to enter PT. It could also rent out the property. The result of the rent can be used for education expenses monthly. To remember is to sell your property takes time, hard sold within 2 days.

Mutual funds. Investments whose money is managed by an investment management company. Mutual progress report will be sent every one or a few months. There are several types of mutual funds, so it can be used on a regular basis over the term of each child’s education. Mutual funds can be used to combat inflation higher education. Mutual funds can also be purchased at any time and liquidated at any time according to the applicable provisions in the prospectus.

While the value of stocks rose and fell like mercury in a thermometer, there is a special constant whose value generally remains high: the ground. While we intuitively know that precious land, can buy something else altogether. Here are some tips to fund the purchase of land:

1. The amplifier itself to high interest rates.

Why get a loan will be no higher ground than to build buildings on the land? Well, it’s actually the key problem! Lenders know that you’ll probably do some buildings on the land, and that probably will need to take another loan. So the double-whammy loan payments that you may experience means that paying property loans is likely to become as hard as nails. Ergo, the higher the risk of higher interest rates.

2. Determine the function of the future of the land.

Before the bank lends you money, you must create a plan that states specifically what you will use the land for. Since you asked them to invest in you, they will need to know how beneficial soil. In turn, that is can affect how quickly you can pay back the loan. This does not mean you will not get credit if you do not use the land for business-but you still need to make a clear and concise plan.

3. Do some research on zoning.

This is an important step, as zoning laws can have an impact on the construction of the building. In fact, strict zoning codes may prevent you from making a house or building with exact specifications you want.

4. Apply for a loan in the bank community.

If you plan to buy a vacant lot, then it is recommended that you are applying for loans at local banks, rather than in a large bank chain. The former is usually more precise than the latter to provide loans for vacant land.

5. Remember the mantra: location, location, location.

The location of parking will have a big impact, large, and giant in the cost and how much you’ll need to borrow. Of course, there are obvious fact that the land in the city and suburbs will usually be more expensive than land in the country. However, do not ignore the fact that many in remote locations could ultimately much more expensive than the actual cost of land. That’s because you probably will need to run the lines for electricity, water, telephone, and cable TV for the purposes of the most important!

6. Visit the property.

This will help to determine whether you still want to buy a lot. You may find that some terms of logistics would make it impossible to maintain the structure on the property.

7. Find the lowest interest rates.

One of the keys to retrieve all types of loans, is to obtain the lowest level. That also applies to the purchase of land. It’s recommended that you seek a fixed rate, so you do not have to worry about the ups and downs of the variable interest rate loans. It also helps to make a big down-payment. That certainly will help to maintain a lower interest rate.

Parents are often advised to invest our treasure in the form of “gold”. That said, gold has never exchange rate has fallen dramatically. It could certainly be safer and more profitable than save money in the form of savings which are always cut administrative expenses. Does this mean we should withdraw all our savings and bought gold jewelry bejibun?

However, please note that the gold in question is in the form of Precious Metals. and not in the form of jewelry. Gold bars available in various sizes ranging from 5 grams, 10 grams, 25 grams, 50 grams, and 100 grams. There’s even a 1 kg.

He did not advised to invest in gold jewelry such as bracelets, rings, earrings, or pendant. Why? Since you will be burdened with the cost of manufacture, and when you sell back these fees are not considered (or omitted). So you will lose money in the cost of manufacture.

If you want to wear gold jewelry as well as investing, it is enough you have 2 sets of jewelry that you can spend on a daily and moment of the party. The rest you’d better invest in Precious Metals. Precious Metals to maintain the value of your money because it almost always beat the inflation rate. Congratulations farming in precious metals!

So far, gold was chosen as one antidote to inflation, because its value is relatively stable from year to year. Facts prove, if there is high inflation, gold prices will rise higher than inflation. Statistics show that, when inflation reached 10 percent, then gold will rise 30 percent. In fact, when inflation rose to 100 percent too, the gold price will rise by 200 percent. This is why investing in gold is considered very profitable.

However, the price of gold is going to tend to a constant when the inflation rate low. But gold is now available in a variety of investment options. Not only in physical form, but also by buying shares of gold mining companies as well as buying gold contracts on futures exchanges. Well, here’s the advantages and disadvantages of each type of gold investment.

1. Gold Jewelry
If your investment goals for the short term, usually it will be difficult to benefit from gold jewelry. The reason is, when you buy gold jewelry, you not only pay the price of gold alone, but also must pay the cost of manufacture. Usually, when you sell gold back to the store, they are reluctant to pay the cost of manufacture. So they will only pay the price of gold alone. Therefore, investment in gold in the form of jewelry will be more profitable if the long-term goal, over 10 years. Because the price of gold has increased many fold, so that the selling price is much higher. Also, choose 24-karat gold jewelry, because of the possibility of much greater advantage.

2. Gold Bars
Gold investment is fairly good and safe is an investment in the form of gold bullion (precious metal gold.) Gold bullion will be easier to resell than gold jewelry. The reason is, when buying gold bars, you do not have to pay the cost of manufacture. That means, you will not suffer losses when selling gold bullion. If you want to invest in gold, this one option to consider.

3. Gold Coins
Gold coins is usually called by gold coin ONH (Fees Naik Haji), because this gold coin is expected to become an alternative investment for those who want to have savings to prepare for the pilgrimage costs. These investments are in fact similar to other gold investments, because it has the gold price following the price of foreign currency (U.S. dollar), and secure against inflation. ONH gold coins can be bought and sold on the branches throughout Indonesia PT Pawnshop, gold shops, and the unit of processing and refining of precious metals miner PT Aneka Tambang Tbk. For its size, usually available from the weight of 1 gram, 5 gram and 10 gram. The price of a gram of approximately USD 394,000.

4. Gold Certificate
Gold investment is not always in physical form, can also take the form of gold certificates. This is a piece of paper that proves ownership of the gold stored at the bank in a country. The owner of this certificate is only holding a single sheet of paper which will only be cashed at the bank concerned. That said, this gold certificate is a very profitable investment alternative and safe. Since you do not need to pay gold storage. Unlike gold investment in physical form which requires the cost of storage in safe deposit box.

5. Gold Mining Stocks
Alternatively, buy shares of gold mining companies. If the state of the gold market is being increased, the price of company stock will usually move faster than the price of physical gold. Although profitable, however, should still be careful, because the investment risks remain. It is better you learn the first equity investment, so no trouble following the development of gold mining stocks to you.

6. Gold Futures Contracts
With the help of technology, the gold can be traded as a commodity on the trade in futures (futures trading / margin trading). That is, you only need to have proof of ownership administration. Investing in gold on the Jakarta Futures Exchange was impressed flexible, because you could sell gold when the price is expensive and buy when prices are cheap. The advantage gained from the difference between the buying and selling price. To play in the futures market, you simply pay USD 4 million per lot (contract size lots. One lot equals 1,000 grams of gold), to open an account at one broker. Furthermore, the value per contract (lot) will fluctuate in line with the rise and fall of gold prices in the stock.

Congratulations to invest in gold.

Diamond investment trends more impressive, because when it was sold again tend not to shrink sharply in value as gold. As an investment, if the resale value of diamonds only to shrink 5 percent based on the current selling price.

There are several other factors that affect the high value diamond investment:
* Diamonds are mined from nature with the formation of a long process. The availability of diamonds in nature is also limited and will be a rare commodity. Seeing is only fair if the market price of diamonds continues to rise.

* Diamond carat with larger sizes and higher value. Frank & Co. said the price of one carat diamond (as of 6 April 2010) worth 17,300 dollars. The higher the carat, the higher the value of its investment.

* Although the size and the rust is growing, but the diamond is still easily carried and moved (portable). Portable character is what makes diamond investment can be used as an accessory to the ring, for example. That way, investment diamonds not only serves as an accessory but also as an emergency fund. When in need of money, diamonds can be sold directly.

Even so, U.S. Tanya Permato AJP from Frank & Co. asserted, should buy and sell diamonds in the same place, so the price did not decline further.

* The diamonds continue to rise an average of 15 percent every year. The possibility of increasing the value of diamond is stable. Even diamond experts predict the demand for diamonds will increase 10 percent in 2015.

How, Are you interested in investing diamond? There is still time to save the five years to prepare.

Improving the financial conditions could begin to save, then continue with the investment. So, should begin to distinguish between wants and needs. Including the desire to invest by looking at the portfolio (profile) investment.

But avoid taking shortcuts by selecting any investment. Choosing investment products also require calculation by analyzing the portfolio, namely age and your status.

Everyone has a different investment portfolios. View of the needs, age, and status. Whether you are single, but the backbone of the family, or single people who do not bear the needs of others. Especially for those who are married, accurate calculation is needed.

Choosing investments based on portfolio can not haphazardly. In fact, if necessary, consult with experts before deciding on the appropriate investment product according to ability and needs.

- Age 20-30 years
At this age, low risk and high investment is still quite safe. Its composition can be balanced (50:50). Investment products are quite varied, ranging from gold, investment insurance, unit link up to share.

- Age 30 – 40 years
At this age, the investment focus should be on products with high risk. Its composition is more dominant (60-70 percent). Instruments can include property investment, mutual funds, and unit links. Reduce investment in low-risk product, and avoid high-risk investments.

- Age above 50 years
Nearing retirement, you should focus on investing with low-risk product, the composition is 50 percent. One low-risk investment product which ORI. You are still safe to invest high-risk products, but should reduce high-risk investment.

- Retirement age
We recommend selling medium-and high-risk investment that you have had before. It is OK menyisakannya, but portions of each 10 percent for middle-and high-risk investment. The rest, 80 percent should invest in products with low risk, gold is one such example.

Happy investing.

If already established with your financial goals, it’s time to start investing. The main principle of investing is to equip themselves with information as possible so you do not get lost or even feel stuck with a choice of investment instruments. When selecting mutual funds, the following stages:

1. Find information and select investment managers
Investment managers (MI) is an institution that manage, analyze, and make decisions on the investment you put in through mutual funds. While other institutions that manage mutual funds are the custodian bank that functions more as a store of funds.

Before choosing a MI should collect more information. Then select that if convenient and easy for you. There is a MI who sell mutual fund products directly. There is also a selling MI products through an agent (in this case the bank).

Choose the MI that provides comfort and convenience for you. But before the vote, watch the prospectus as well as product performance reports from each MI. You can get information through various media such as newspapers or the official website of the institution.

2. Choosing and buying products
Whatever your choice of investment managers, consult with product details, and how performance. If through an agent (bank), ask the customer service at the bank about a variety of information about mutual fund products.

The following options mutual fund products are:
* Mutual funds protected, the target average investment returns zero percent per year, a period of three years.
* Money market mutual funds, the target average investment return of seven percent per year, a period of less than five years.
* Mutual funds and a mixture of conservative fixed income, the target average investment return of ten percent per year, a period of 5-10 years.
* Mutual funds mixture moderate / aggressive, target average investment return of 15 percent per year, a period of 10-15 years.
* Mutual fund shares, the target average investment return of 25 percent per year, a period of more than 15 years.

3. Creating an investment portfolio
There are three profiles of investors, ie investors conservative, moderate, and
progressive / growth. Based on these three types of investor profiles, you can create an investment portfolio that suits your needs. Of course, it is convenient if you already know as an investor with a clear investment objective from the outset.

Portfolio investment is required to be utilized properly. That is, what percentage of investment funds should be used in the instrument of shares or other instruments. This is of course back to your investing needs and objectives, whether short, medium or long.