“82 percent of millennial workers(age 21 to 34) are making contributions to the 401k plan” [1] Despite the popular belief, the new generation is very much interested and are active participants of the 401k plan. The 401k retirement plan is still one of the safest ways to save for the old age. It’s a powerful financial tool that has served baby boomers over the past several decades. Yet, some employers do not offer a retirement plan and prefer to pass the responsibility to the employees themselves. There could be many reasons why they choose to do so. Maybe the employer...
A New Generation of Money Management
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Should I take a Personal Loan to Pay off High-Interest Credit Card Debts?
Loans which aid the lenders in times of financial crisis or emergency often end up leaving the lender stressed due to sky-high interest rates. Credit card debts which are most readily available, in just a swipe, have no doubt eased the task of obtaining a loan and acting as secure backup in times of economic tensions. The problem is with their sky-high rates of interest. These high-interest rates, in the long run, put a financial burden on lenders, and they eventually run in the loss. Personal loans consolidating credit card loans Personal loans, which are unsecured and do not require...
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The Top 4 Technology Mutual Funds for 2018
According to a recent post on Facebook, the technology sector hasn’t been doing so well lately. A 19% loss of stock in one day and 120% loss over a week have added to the woes of Facebook. The quarterly results of Netflix to have not had impressive profit figures. Investors now are quite apprehensive that the technology sector had rallied 30% in the previous year. It is fairing well when looking at the larger picture, will not have favorable outcomes now. The tax plan by Trump is expected to assist the large companies for the rest of the year in...
What is the Capital Asset Pricing Model?
The Capital Asset Pricing Model or CAMP can be defined as a financial model that can be used in order to determine the theoretically relevant required rate of return from an asset so that decisions can be made regarding the addition of assets to a well-diversified portfolio. Thus, the main aim of CAPM is to calculate the required return depending upon the risk management. This model uses a risk multiplier, known as beta coefficient to calculate the required return. Founders of this model: This theory of Capital Asset Pricing Model was first introduced by Jack Treynor, William F. Sharpe, John...
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What is a Treasury bond (T-Bond)?
A treasury bond which is also commonly referred to as the T- bond is basically a debt security of the US government which has a fixed interest and is marketable with a maturity period of more than 10 years. Understanding the Treasury bond A treasury bond is a long term debt security which has a fixed interest rate for the entire given duration of time. This type of bond generally matures after 10 years and sometimes even more than that. The interest payments that are made in the T bonds are generally on a semi- annual basis. Also, the income...
Planning Personal Finances is not too tricky – Here’s How to do it!
Financial planning is one of the essential things to do if you want to make sure that your future is finically secured. Planning out your finances will provide you with numerous benefits. Also one doesn’t have to be an expert in planning their finances. There are ways in which you can easily plan out your personal finance. Have a look at it. Planning a budget that suits you It is the first and the most basic rule that should be applied to the whole process of preparing your personal finance. To start with, first, try to analyze why you need...
What does a worker’s compensation insurance entail and why is it important for a business?
What is the worker’s compensation insurance? The worker’s compensation insurance is basically a type of insurance which provides coverage to all the workers in terms of both medical and wage benefits if they ever fall ill or get injured at the workplace. This is mandatory in many places and also the term and conditions, as well as the benefits provided by it, may vary from one place to another. Many businesses carry it out because it is considered to be a necessity bylaw. What does the worker compensation insurance entails? Now the worker’s compensation insurance is one of the most...
5 Factors that Influence Business Environment
For any business to be successful, it is necessary that the business is able to carry out an effective interaction with its environment. This is because the business environment has quite an impact on its direct relationship with the various other organizations. Also, the extent to which a business will success depends quite a lot on the manner in which it is able to interact with its environment. Now there are 5 different factors that can affect the business environment. They are discussed in detail below- Political factor The ease with which the business of any particular company can be...
How to Determine the Salary Scale of your Employees?
In any kind of firm that may exist, one of the top concerns for any employer is the salary that they will be getting. Now it is very essential for the owner of the business or the one who facilitates the salary to be able to determine the compensation that an employer should be getting. This can be done by referencing to a payment scale. This enhances clarity in the fiscal transaction and encourages clear communication. Now here are some of the best ways to determine the salary scale for the employer that you must follow- Access the position So...
Financial Planning you must do Before Investing in Real Estate
Investing in a real estate is considered to be quite a good option with respect to your future planning. But before making an investment one needs to know few of the essential things that may affect their financial situation. Here are a few important things that one must know before you make your first investment in the real estate- Having a household budget First things first, you need to have your household budget planned already. This way you can arrive at the surplus after considering all of your income and expenditures. Take note of the various sources of your income...