Financial Advisors Make Money

The appeal of having financial advisors helping out your individual or organizational cash allocation is clear and apparent. Instead of having to pour over spreadsheets, instead of having to do endless research on investment opportunities, instead of studying how similar individuals and organizations spend their money, you can simply use your time more productively by focusing on more productive or enjoyable tasks. When getting ready to hire a financial advisor it’s wise to have a good idea of how you’re going to pay those advisors. Not all financial advisory services make their money the same way, and there’s no one “best” method of payment appropriate for every organization or individual.

Salaried Financial Advisors

At the simplest level there are financial advisory services who are paid regular salaries regardless of their performance. While salaried financial management employees often receive a sliding scale of bonuses for the accounts they bring in to their firm, these individuals don’t rely on performance incentives. Salaried financial advisors most often work for banks and less expensive brokerage firms which often charge a fixed fee for their financial advisory services.

Fee Based Financial Advisors

You may also hire financial management professionals who receive their compensation entirely from fees. These individuals will charge you a flat fee for their services, like you would pay for a bank’s services, but they are generally unaffiliated with any larger organization. Some fee based financial advisors work for RIA firms, but many of them work freelance. The only incentives fee based advisors receive from their advice’s performance is client loyalty. This is a double edged sword. On the one hand these advisors make the same money regardless of how their advice performs. On the other hand they have no financial or organizational incentive to recommend an investment opportunity they don’t agree with.

Financial Advisors

The Best Social Media Networking Strategy

There has always been a song for every mood. Now there is a social network for every conceivable need of ours. From Twitter to Tinder and Facebook to Flickr, networking is now fine tuned and fine grained to match your likes and requirements. The real question however is how to make the most out of this social bubble that we live in. Having a practical social media networking strategy with definite goals could help you.

Ask yourself these three How’s and find out the answers to execute a social media networking strategy successfully:

1) ‘How is it going to help me one year down the line?’: Lets face it, everyone wants to be successful and famous no matter what they do. We wouldn’t be into social networking otherwise and Mark Zukerberg wouldn’t have been a billionaire. Prioritize your primary goals in life and align your social media networking strategy to it. If you are studying to be an architect, it is better to spend your online networking time on LinkedIn looking for architectural design firms in LinkedIn and getting introduced to influential people in the industry. Chances are, you might have worked as an intern or work on freelance projects. Leverage it to showcase your work online on image sharing sites such as Flickr, Pinterest, Instagram etc. You could also set up a Facebook page to display your work. Given that you are good at what you do, this could open up several opportunities for you. From getting noticed by the right people to getting some more freelance work coming your way, benefits are undoubtedly huge. Not a bad deal if you love what you do.

2) ‘How much time I can afford to take out daily?’: You want to navigate your way towards the goal without stumbling often and getting lost

Money Education For Young Adults

Every parent knows that we need to talk to our children about ‘sex’ and ‘drinking’. Opening up the lines of communication will help many make better decisions. One area that is still not talked about enough is ‘money’. Consequently, young adults are experiencing major debt and credit problems that will plague them through their late 20’s and if not their entire life.

You wouldn’t give your sixteen year old the keys to your car without drivers training; so don’t let them move out without a practical financial education? Both scenarios could devastate your child’s financial situation for years.

Everyday we send young adults out in the ‘real world’ with dangerously little preparation for the financial realities of life. Tiny errors can mess up your childs financial future for a lifetime. Just one simple missed credit card payment will blemish their credit report for seven years. These mistakes lower their confidence; which can result in a downward spiral of financial blunders.

Most parents are already aware that public high schools do not provide young adults with a practical financial education. And these guardians or parents already know how important financial literacy is for their kids stress levels, health and overall lifestyle. So parents it’s up to you to provide your children with the financial skills they need to make it in today’s society.

There are important financial lessons you can teach your children. But before you do, it’s important you recognize your teaching beliefs and style. There are three common parenting styles that affect the way your children lean about money.

– Parents that don’t feel qualified. This is the most common parenting problem when it comes to providing children a practical financial education. These parents often feel stressed out because they realize how important receiving financial education is; however they just don’t know where

Using a Financial Advisor

Financial advisors help people assess their financial situations and give them helpful information on how to best save, invest, and utilize their money. The financial advisor usually has a client make an in person appointment for an initial consultation. The client will often bring in some basic financial information, such as tax returns, pay stubs, bank statements, and any information he may have on his stock and bond market portfolio, if he owns one.

Some clients are more prepared and they even come in with balance sheets describing their assets and liabilities. Many times the advisor will ask the client to bring in information about their current debts, including a budget of income and expenses, as well as credit history information. If the client cannot do this on his own, this is where the financial advisor comes in to help him create and assemble these documents.

All this information is then assessed and used to determine how the client can best prepare for retirement. The qualified advisor will know all about directing the client into the very best retirement plans. He’ll also be able to help formulate an updated budget to help the client start to regularly save for retirement.

He’ll instruct his clients that a minimum amount of money needs to be saved or invested each month for a given set of years in order to amass adequate funding for a quality retirement. The advisor will detail the benefits and risks of different type of investment vehicles that he may suggest his client regularly put money into.

These investment vehicles can include individual stocks, bonds, mutual funds, certificates of deposit, money market funds, and regular savings accounts. In the UK, there are many highly qualified and reputable financial advisors. It can help to get a recommendation from a work colleague, a banker,

Developing Your Stock Trading Strategy

There is both a science and an art to successfully trading stocks. The science part requires doing your due diligence and having a firm grasp on the fundamentals. But the art side is something that will be unique to each individual trader. Part of succeeding as a trader is having the courage to determine what really works best for you personally. Use the following questions to help you determine which strategies fit best with your style:

Do I have enough money available to invest in such a strategy without suffering financial ruin?
Does this strategy require I have a passion for the industries in which I buy stocks?
Is the volume of data required to follow this specific strategy something I can realistically handle?
Do I really have the courage and resilience to handle the ups and downs which may occur with this particular stock trading strategy?
Do I really have the patience and perseverance to see this strategy through to its completion?

Past Performance

The first and most basic trading strategy is often referred to as simple investing. Basically, you look at a company’s past data in combination with how it behaved relative to the changing economy. You use this past history to determine buy and sell trigger points. Then you adjust the strategy as necessary each quarter based on the changed data and behavior of that last quarter.

This is a good strategy for those who require low volatility and are willing to sacrifice a little on the total potential. However, you must be thorough before you execute the strategy or you will waste quite bit of time.


Time is the most distinct way to delineate different stock trading strategies. For people with the financial resources and mental resilience, short trading cycles — even day trading — may be the optimum way