Brokers

There are many kinds of brokers – not just the stockbroker type that facilitates your stock purchases and sale. There are business brokers, commodities brokers, futures brokers, insurance brokers, mortgage brokers, online brokers, real estate brokers, stockbrokers, and ticket brokers, among others.

Brokers facilitate your purchases and sales from products and services to stocks and equities, and businesses. For example, when corporations want to purchase a stake in another company, they will need a business broker to lay down the groundwork for the acquisition. The broker scans the environment for the best buys and makes recommendations to the client. Businessmen often rely on these brokers, especially when they are entering or expanding into a relatively new industry. Brokers have a wide range of networks that are useful for business partners, investors, or areas for growth.

Becoming a broker requires training and keen strategic and planning skills. Brokers are also well versed in their areas of expertise. They keep their ears to the ground and are often the first to know about corporate developments. Clients rely on their analyses and often risk large amounts of money on the basis of their advice and recommendations.

Many businesses depend on many types of brokers. A manufacturing company may have a business broker to serve as a consultant for acquisitions or joint ventures. It may also rely on a freight broker to arrange and provide for its logistical needs. But you need not be company owner or millionaire to require the services of a broker. If you invest in stocks or bonds, you may need to keep just one stockbroker to manage your stock portfolio. He can give you sound advice on when and what to buy or sell.

Each broker, by the nature of the job, gives out a personalized service to cater to a client’s unique requirements. Retaining a broker will prove to be an important and necessary decision, especially for businesses that always need to keep track of their environments.

Brokerage Firms

Brokerage firms facilitate the trading of stocks, commodities and currencies by providing opportunities to the interested sellers and buyers for a specified fee. These firms also provide borrowing facilities against an underlying asset to enhance liquidity in the markets and to spur trading.

Brokerages are required to register with a recognized exchange, such as the New York Stock Exchange or NASDAQ. Exchanges are meant to regulate trading in their role as the guarantor of final settlement between a buyer and seller. Further, exchanges also regulate trading to ensure that the game is played by the rules. Therefore, exchanges and brokerages inspire confidence in traders and in turn ensure smooth functioning of the markets.

Big banks, hedge funds, mutual funds and insurance companies are key players in the financial markets. Banks usually play a key role in currency markets, where the private players are not allowed to buy and sell currencies directly from the open markets. Banks also act as stock brokers in addition to investing money in the markets. Banks may also be active in the trading of commodities like gold and silver on exchanges.

With the advent of internet-based exchange trading, the brokerage business is growing at a fast clip. With online discount brokerages such as E*Trade, anyone interested in “day trading” can log in from anywhere and begin to trade, provided that they have access to the Internet. This increased access to the markets has in turn led to a phenomenal increase in exchange-based trading transactions, particularly by small players who had limited access before the arrival of web-based trading. The trend is often seen wherever small players are allowed to participate in trading, and has been hailed by many as the “democratization” of the financial markets.

Best CD Rates

Certificate of deposits with longer maturity periods pay higher rates than those with shorter maturities. It could be said that the best CD rates have the longest maturities. Some investors believe that a certificate of deposit is the best and safest investment. Others invest in a certificate of deposit to supplement their retirement income. Regardless of the reason, all types of investors want to earn the highest CD rates i.e., best CD rates.

In order to achieve best CD rates, investors need to shop around either online, through newspapers, banners on local institutions, or with the help of brokerage firms to find out which banks and credit unions offer best CD rates all the time. Before purchasing CDs that offer best rates, customers need to consider two factors, the length of the maturity period and the current interest rate environment. Investors who lock up their money in long term CDs will earn a better rate of interest than those who buy short term CDs. This is due to the fact that when customers purchase CDs with longer maturity periods, they commit their funds in the investment for the entire maturity period before they can withdraw. The investor foregoes alternative courses of investment. For all these risks that investors experience, banks pay best CD rates on such units. Similarly bulk buying also fetches investors best rate because banks may insist on meeting minimum requirement for offering best rates.

It is not advisable for the investor to stay with the same bank for more than one year. By sticking with the same bank, investors lose the chance of getting the highest and best CD rates offered by other banks and credit unions. Generally, the interest rates offered by credit unions, which are non-profit organizations, are the best when compared to those offered by commercial banks.

Become a Financial Planner

To become a financial planner, you first must know what their job profile is. Financial planners help in determining the financial resources required to meet the company’s operating program. They also help in forecasting the extent to which these requirements will be met by the internal generation of funds, and the extent to which they will be met from external sources. It’s the job of financial planners to develop the best plans to obtain the required external funds. They also help in establishing and maintaining a system of financial control governing the allocation and use of funds. Financial planners formulate programs to provide the most effective cost-volume-profit relationship. It’s the job of financial planners to analyze the financial results of operations, report the facts to the top management and make recommendations on future operations of the firm.

To do all these functions efficiently, financial planners first need to establish the financial objectives of the enterprise. Both long-term and short-term objectives should be established for the effective utilization of the financial resources. Then comes the next step of formulating policies. Policies are broad guidelines. Financial policies relate to procurement, administration and distribution of business funds. The next step financial planners have to do is to formulate procedures. Procedures are the specific order of doing things. They are formed for ensuring consistency of actions. In financial procedures, the financial executives decide about the control system, develop standards of performance and evaluate the performance. Lastly, they have to forecast the future. In order to take proper action to achieve the objectives established, it is necessary to know the future positions. This is facilitated by forecasting the future.

While doing these activities, financial planners must take into perspective the cost of finance and nature of business. In any assessment of the financial needs of the firm, the cost of finance is the basic criterion. This is so because only projects with net positive cash flow can be selected.

Bank Trust Investments

Bank trust investments are emerging as a major source of investments in the financial market. They compliment investment firms as one of the sources for investing money for profit. Some of the banks are able to make huge profits in this field. Most of the banks offer services for managing the assets of trusts these days. These trusts can be of various types, such as charitable trust, corporate trust, personal trusts etc.

The bank acts as a custodian of assets owned by the trust. The assets may include cash, equities and other investments. The banks manage these investments and often make new investments on behalf of the trust. As many trusts have huge financial resources, which need to be managed properly to make them self-sustainable, the services of professionally qualified experts are needed to manage these financial assets. Most of the good banks offer these services for a fixed fee or on a commission basis. Sometime they charge both.

Bank trust investments are generally made in gilt-edged securities or other government securities, which are relatively safer. These investments are made not for short-term gains but for ensuring a steady stream of income in the long run. The banks keep the trustees and other parties informed about all major decisions related to investments on their behalf. The market risk is generally borne by the trust only.

But there have been several scams in the past related to bank trust investments all over the world. So one has to be careful before giving a bank charge of one’s trust.

Bank Checks

When a bank issues a check on its own account to a customer, it is called a bank check. Such checks are issued for payment to a third party and are also variously called as cashier’s check or treasurer’s check. Such checks are generally treated by the law in the same manner as ordinary checks. Many people regard bank checks as equivalent to cash, which it is not. In certain instances a bank check might not be paid. A bank check can be used to purchase large items such as a car.

Bank check payment is often considered an alternative to bank wire transfer. It is ideal for commercial payments between companies. Such checks also find extensive use for the payment of different fees and services. Modern banks issue bank checks even without the customer having an account with the respective bank. The check issue procedure is very simple and takes only a small time to process. Banks also send the issued bank check along with respective attached documents to a check beneficiaries home or business address.

Bank checks are perhaps the most economic way of international money transfer. It is especially convenient when small amounts of money are transferred because it is not necessary to make an extra money transfer. Modern banks sell and collect checks of other banks also, the value of which is denominated in convertible currencies.

Some advantages of bank checks include settlements with foreign partners. Bank checks make it possible to make settlements for products and services with foreign partners, meaning subscription can be made for books or publications, lotteries, goods and education at schools abroad. Even cash gifts can be sent through this way. A bank check is also a very convenient way of settlement if there is little information about beneficiary of the check.

Asset Protection

Asset protection is a legitimate right of any individual to avoid or mitigate the effects of taxation, divorce and bankruptcy. Asset protection is a concept that has arisen out of the estate planning industry. It is an attempt to hinder a creditor’s attack to seize and sell assets to recover debt owed. It changes the character of assets that cannot be legally seized and sold by the creditor.

There are various legal techniques to protect your assets. They vary depending on the type and location of property with limitations. The most essential factors of an asset protection plan are the degree of financial risk, type of assets own total net worth. The kind of asset protection you need depends on your risk factor. It is a standard part of business and estate planning. Traditional forms of asset protection techniques are gift of property, retirement plans, spendthrift provisions in life insurance, turning the business into a limited company, etc. You can also transfer a risk to an insurance company that will protect your asset.

In domestic asset protection strategy you have to legally protect your assets within the country of that you residence in. While offshore asset protection allows you to transfer your assets and form a trust in a foreign land that has anti-creditor law. It is an expensive technique that requires a lot of legal consultation and maintenance.

Proper crafted asset protection strategy could reduce the damage caused by a plaintiff’s attorney. Asset protection has been practiced for ages because it is legal, effective and trusted. It is the best way to protect your savings, investments and other accumulated assets.

Asset Protection Trusts

Asset protection trust is an institution works to insulate assets from creditor attack. It is established to save and regain control over the protected assets upon the termination of the trust if there is no risk of creditor attack. Normally the trust structured in an offshore jurisdiction for a certain term of period. The person who established the trust called the ‘settlor’. It is almost impossible for the creditor to reach the assets provided the trust drafted properly and timely. In other words you can say that an asset protection trust is effective instrument to settle or discourage litigation. It keeps the proprietor of the assets very confidential.

Asset protection trusts are of two types namely, domestic and offshore. Domestic asset protection trust formed in the states of residing country. While offshore trust formed in a foreign land with different jurisdiction beyond the reach of residing country’s laws. Both of them have same anti-creditor features. There are varieties of techniques to protect different categories of assets. Some are common and appropriate for everybody while others are appropriate for rich class people. There is one thing common in all asset protection trusts: they make it tough and difficult for a creditor to find or take assets. Properly drafted asset protection plan include asset protection trust and family limited partnership. In this plan anyone can legitimately put some of his assets out of the reach of creditors and still retain complete control over it. Traditional forms of asset protection techniques are gift of property, purchase of property in family member’s name, squanderer provisions in life insurance contracts, etc. These are the oldest and common techniques that keep your creditor at bay.

As litigation is increasing day-by-day shielding of assets has become an important issue for rich and business class people. Asset protection trust is morally and legally right to protect one’s assets from creditors, lawsuits and scams.

Asset Protection Teams

We all know that frivolous lawsuits necessitate asset protection planning. Asset management teams are firms or groups that help protect our assets. These teams use their expertise in this area to advise their clients on prudent ways of protecting their assets.

These asset protection teams mainly work towards four goals: First, to protect one’s assets from lawyers and lawsuits; second, to guarantee complete financial privacy; third, to preserve your estate for posterity; and finally, to reduce personal and business taxes. They undertake a complete study of the legal framework at the state and the federal level, so as to be able to give their clients the best possible alternatives.

For example, they will advise the client on sheltering their home, auto, savings and other assets from particular kind of lawsuits. Again, they might offer advice on protecting money in offshore havens safely and legally. They even offer advice on seemingly strange but extremely practical probabilities such as protecting assets against sudden eventualities like a divorce.

There are a number of groups and teams today that offer such services across the length and breadth of the country. They specialize in their own specific areas and conduct business. For example, Donlevy-Rosen & Rosen PA handle asset protection and offshore trust matters. New York State Asset Protection and Elder Law Firm helps seniors avoid probate, save estate and income taxes and protect assets from nursing home costs. Inc. in Nevada offers a full line of corporate and asset protection products to corporations and family limited partnerships.

Choosing an asset protection team is an important decision. Remember, your hard earned savings or your dream house, your favorite SUV or your priced yacht is at stake. So it is always wise to do a thorough background study before you take a decision.

Asset Protection Strategies

The best way to protect your assets and earnings is to follow the best asset protection strategies. These act as the walls between your assets and overzealous government officials and creditors. It is too late if you act to protect your assets after a claim or suit is filed. Therefore, it is better to consider a well-structured asset protection strategy in advance. Good strategy results in sufficient tax reductions that ultimately increase your savings. Asset protection strategies should be made when your business is small and growing.

Transferring the family nest egg to a trust, offshore or domestic, is the most sophisticated strategy to follow. It is easy and convenient to maintain. In this case, the beneficiaries would be the client and family members. A family limited partnership is also an asset protection strategy. In this strategy, all management and control of the assets remain with the client.

There should be a careful review of all the necessary programs included in the strategies like contract procedures, hire procedures, employment contracts, etc. It is important to remember that any common asset protection strategy cannot apply to each individual and family as the assets, goals and opportunities of each are different. Asset protection strategies vary depending on your situation, i.e. your country of resident and citizenship, your age, annual net income, and so on. Political and economic stability of the offshore jurisdiction should be satisfactory before making a decision. Transport and communications are another aspect to consider in offshore asset protection strategy.

Asset protection strategies should be effective and legal to make your assets safe and secure. For financial planners, business owners and high-income individuals protection of assets has become a prominent issue. These people consult and hire top lawyers to get popular and established strategies to follow. Hire any good competent attorney who is willing to develop a practical asset protection strategy.