Financial Planning – A Road Map To A Secure Financial Future

Would you go for a trip to a new destination without having a map? Think of your financial future? Without a map, you will not get anywhere. It is important to note that financial planning offers a road map your the financial life that affects you. Thus, it is easy to make the journey quite easy on your part, less stressful, more successful, and more fun. Just click here to learn more. Starting immediately is possible.

In this uncertain economy, financial planning has become quite important. This has resulted in an overwhelming number of options for investing and saving. This makes management of your finances quite difficult. It is necessary to create a financial plan, which helps you see the big picture and set your financial goals. It is an important step in mapping one’s financial future.

If you have a plan and a strategy, you will find it easy to make important financial decisions and even be on track to meet your goals. It is advisable to work with a certified professional who can help you secure your financial well-being. In this way, you will have peace of mind when you attain your financial goals.

Need for professional services
Some people choose to carry out their own financial planning. However, it is necessary to seek professional financial advise if you:

Want to ensure there is better management of finances on your part, but you are not sure where to begin.
Do not have adequate time to carry out financial planning by your own.
Need professional opinion about plan you have developed.
You do not have adequate expertise in areas such as insurance, taxes, investments, or retirement planning.
Have unexpected life event or immediate need.

Setting goals
You should note that financial planning begins with the setting of goals. In any case, you want to go to a place you desire. The goals can be long-term or short-term. It is advisable to write down your goals, terms, and dates. Always refer to list to derive motivation as you strive to meet the goals.

Where are you now?
You need to have a realistic picture of your financial situation. It is necessary to list all your liabilities and assets. Moreover, track all your monthly expenses and income in a notebook. Even if the picture is not attractive, that is okay. With good financial planning, your future is bound to be great.

Avoid potholes
It is true financial potholes will come your way. These include stock market downturns, losing a job, recessions, paying for an illness, wrecking the car, and much more.

Guidelines To Penny Stock Investing

Penny stocks are highly speculative stocks valued at less than a dollar. Most of these stocks do not usually trade on the stock exchange. Many investors may buy shares cheaply and then sell them after a while making huge profits. This is possible as an investor can hold thousands of shares for a small amount of capital. There are several guidelines to penny stock investing

Tips on penny stock investing

Use limit orders

Investors may be manipulated to buy penny stocks at prices that may not be the same as the value of the said share. This is because these penny stocks trade very thinly. There is, therefore, a deviance between the bid and the asking price. Market makers can try to make some quick bucks by fooling the investors. Limit orders enable the investors to buy penny stocks at their price.

Trade during regular hours

After-hours trading can occur due to small volumes of stock. This trading is certainly not correct, as it does not effectively show a match between buyers and the sellers of stocks. Trading during after-hours can open gateways for trading stocks above or below the closing price of the stock. When dealing with penny stocks the increase or decrease of a few pennies can make or halt a trade.

Buy or sell for a reason

Investors should not buy or sell the stock just because they are moving. Investors of penny stocks should carefully analyze the stock and know the reason why they are buying the stocks. This is especially for stocks that have already increased in value. An investor must have a good reason to invest in these stocks otherwise they may end up investing in stocks that will not be profitable.

Do not go for performance

graph Many investors chase trade, and this is a big mistake that investors make as they invest in penny stocks. These investors often wait for the stock to take off to start investing in them. This is not right, as time may not be on the investor’s side when they finally decide to invest. To avoid this, investors should be able to invest in stocks at the right time and follow the proper guidelines to make productive investments.

Expects 90-day holding period

Penny stocks can be very unstable in nature. At times, they move up and down. Being unpredictable investors should expect a holding period of up to 90 days. This will give the investors time to study the trends of the stock and even sell them if they see it going down soon.