Wednesday, May 13, 2015

401K Stability and How You can Plan Around Inflation

One of the most common steps most people take to prepare for retirement is to invest regularly in their 401k account. However, one of the most common concerns investors have relates to inflation and how it impacts the growth of their investments. 

If you are concerned about how inflation may impact your 401k going forward, you are wise to do so. Inflation can have a detrimental effect on value of your account, and the 401k account return needs to exceed the rate of inflation to have true net growth. 

Choosing the right investments is a necessity if you want to protect and grow the value of your account over time. 


When you make wise stock selections for your 401k account, you will be taking a step to protect your account balance from the effects of inflation over any amount of years. Stock prices may be relatively volatile over a short period of time. 

However, because companies can adjust prices and expenses to compensate for inflation, this is generally a sound long-term investment to consider to protect your growth from the effects of inflation. According to the Jakob Pek Fund, this is particularly true when you buy stocks in companies that have a solid history of long-term growth and great growth potential. 

Do your research before you find a secure place to invest in. Once you know where the stocks will grow you will have a better chance of finding a secure retirement. Research is the key here to know where you will get the most bang for your buck.

Short-Term Maturity Bonds

If you are looking for a relatively stable investment vehicle with minimal risk, bonds are a great option. However, a fixed income asset like a bond can be significantly impacted by inflation. The best bet when investing in bonds with inflation in mind is to choose a short term bond. 

These are less impacted by inflation as well as by movements in interest rates. For those approaching retirement age, moving more funds into short-term bonds may be advantageous. Talk to your bank or financial counselor to see what your options are and what will be best in your situation.

Real Estate

There are different ways to invest in real estate through your 401k account. For example, REITs, and stocks in large real estate investment firms provide you with some options. Real estate is largely seen as one of the best investments to make as a hedge against inflation. 

The value of the best real estate investments typically rise with the rate of inflation. Of course, the housing market is cyclical and has its ups and downs. As a long-term investment, however, this is a sound investment to make. 

It’s best to talk to a professional about where you can get involved and how you can invest in your own property. They will know the best ways to direct you through the turbulent market.

Don’t Forget Savings

It’s also important to invest in some regular savings accounts. Whether it’s your emergency fund or just savings account at the bank you should always have some backups in mind to keep money safe for whatever retirement throws your way.

Understanding how inflation affects investment vehicles is necessary when your goal is to minimize the impact of inflation on your retirement account value. 

By learning about the best investments to make to safeguard your account against inflation, you can create a diversified portfolio with long-term growth in mind. You can have more in your retirement fund than you ever thought possible if you know where to place your money.

Sunday, May 10, 2015

MBA in Finance, an Inside View

Photo of Central Elevated Walkway, toward Two ...
 (Photo credit: Wikipedia)
Management education has impacted all aspects of our lives, at social, organizational as well as individual levels. 

Management education has offered a plethora of programs that provide food of thought for all types of businesses, be it software world, or the industrial, or anything. 

The enterprises demand professionals who can help the smooth functioning of the businesses by coming up with innovative ideas to help the enterprises grow. 

One such specialization is MBA in Finance, which has given the finance industry the best brains and has brought about revolution in the economic sect of the countries across the world.

MBA in Finance is the specialization which the maximum number of MBA aspirants look out for. There are numerous possibilities in this field and the career options are also vast. 

In countries like India, the trend is quite young as compared to other nations, but nonetheless, there is a healthy demand for qualified degree holders in both public and private sectors. In last few years, the trend has been catching up exponentially.

Besides, the regular compulsory courses being taught in an MBA program, there are courses in subjects like Analysis and Management of Financial Services, Corporate Valuation, Financial Statement Reporting, Insurance Management, International Finance, Management Control System, and Investment Management, Taxation and Tax Planning.

Selecting the B School

To pursue any course in MBA, you certainly need to choose the right B school for yourself. B schools argue that MBA is the best course to invest in oneself, but what they won't tell you is that they also need your money (pun intended)!

Coming back to the point, most of the students remain confused about the B school they want to get into. 

While selecting for a B-school, the students need to consider different aspects such as alumni networks, faculty, infrastructure, placement record, specialized courses as well as foreign affiliations, among others.

The Education

The overall objective of the MBA in Finance is to train professionals interested in the investment process by making use of different types of models, techniques and tools to facilitate and improve the performance of investors in the securities markets, and financing in the company.

Career Prospects

The growth prospects are high after an MBA degree in finance and the opportunities are immense. Banks, financial consultancies and financial institutions are the temples of employment for the candidates with an MBA in finance. 

Entering the world of consumer and investment banking, corporate finance and international finance are also some of the options. If you get hands on experience working with some of the important government or private sector bodies, your career growth can be really interesting.

Career opportunities

The job market is already on the path of recovery and to meet the demands for finance related issues, the businesses seek professionals having a degree of MBA in finance. The functional area includes banks, non-banking financial companies (NBFC), insurance companies, financial advisory, and consultancies, among others.

The salary packages are directly proportional to the B school from where you have graduated. Better the reputation of the school, heavier will be the salary package. Kind of business school you graduate from. Finance MBA degree holders are known to have got the creamiest offers from the best of companies in the related industries. 

On a Concluding Remark!

MBA courses are aimed to bring together the potential entrepreneurs with some really creative ideas that can have positive effects on business as a whole. India has emerged as a fast growing economy globally, which is all set to be included amongst the top three economies by end of this decade. 

Such a tremendous economic growth asks for some new projects and new projects create a number of job opportunities. The increased demand for some best managers is an obvious outcome of such developments.

Author Bio: Rashmi Karan has been writing professionally since 2010, most recently publishing for various websites on topics like employment and education.

Tuesday, May 5, 2015

Tight Budget? How you can Save Money on DIY Home Improvement Projects

No one wants to break the bank when it comes to remodeling or upgrading their home, but a quick look at even some basic DIY projects will have many homeowners shying away. 

One of the main benefits of DIY is saving some extra cash, and here is a look at a few simple tips and tricks that you can use to keep your next project on time and under budget. 

Rent Specialty Equipment

Anyone that plans on becoming a DIY expert is going to need a good set of basic tools, but there may be some specialty equipment that isn't quite practical to purchase right away. Many hardware and home improvement stores offer tool rentals by the hour, day, or week. 

As long as the rental rates are reasonable, then you may want to plan on renting unless you will use that specific tool at least a few times per year. Some commonly rented tools include industrial air blowers, cement mixers, winches, and power saws.

Keep Trim Colors Identical Throughout the Home

Many homeowners want to make every room as unique as possible when it comes to the paint scheme, but this can be prohibitively expensive. Even purchasing enough paint for simple touch ups may be overwhelming, and one simple way to cut down on costs is to keep the trim color consistent throughout the house. 

Everything from windowsills to baseboards can be painted with an off-white tone which matches practically any accent colors on the walls. 

Buy in Bulk Whenever Possible

English: Small community shopkeeping in Whitin...
 (Photo credit: Wikipedia)
From the moment that you know which supplies you will be using a lot of, start looking around for sales on bulk purchases. 

Materials such as flooring and wood paneling should be kept within a close margin of how much you will be using, but other items such as bolts, nuts, and washers from companies like will be much more affordable when larger amounts are purchased. 

This will also save you from taking multiple trips to the hardware store to buy box after box. 

Time Your Projects Wisely

Many homeowners tend to consider spring as the best time for home remodeling due to the weather, but the popularity of projects during this season often means that supplies and professional services will be slightly more expensive. 

It may not be as fun to remodel in the dead of winter or the hottest months of summer, but trying to steer clear of popular remodeling seasons could save you hundreds. Almost any services involving your plumbing system, roof, insulation, and HVAC system will be less when done off-season. 

Repurpose Material

If you are looking to save some serious money, then it may be time to consider using repurposed items. Repurposing and up cycling is a relatively new trend for home improvements in which old supplies and materials are adapted to fit a new project. 

Cheap supplies such as wooden pallets can be sanded, treated, and then painted or stained to match almost any d├ęcor. In addition to being cheap, they are also extremely easy to find and can be used anywhere in the home. 

Explore Home Improvement Credit Cards

Anyone that is good with credit cards or their finances in general may benefit from a credit card directly through their local home improvement company. These companies often offer huge savings such as cash back rewards and blanket discounts on any purchases made with that card. 

Anyone that is struggling with current debt or not quite comfortable with a credit card should probably steer clear of accumulating more debt and stick to the other tips.

Breaking the budget is often the biggest fear that homeowners have when it comes to their remodeling project. These simple tips will help you cut costs without reducing the quality of the finished product.

Tuesday, April 28, 2015

Why Do Many Middle Class Americans Feel Trapped When It Comes To Finances?

Even with some of the recent economic problems slowly improving, more and more middle class families feel as if they are trapped in their socioeconomic level with no options for upward mobility. 

Here is a closer look at just a few of the reasons that many working professionals feel as if the odds are stacked against them. 

Predatory Loans

Predatory loans and the banking industry in general are often seen as the biggest concern when it comes to class mobility. 

Stick to Your Financial Plan by Making Your Goals Exciting
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Teenagers and young adults are expected to earn their degree with loans, enter an extremely competitive job market, take out more loans for a house, and then hope that their income over the next 30 or 40 years is enough to cover payments. 

A single missed payment could mean an increase in the loan's APR or being immediately sent to debt collectors. This means a hit to one's credit score and difficulty attaining any loans in the future. 

Decline of Middle-Skill Jobs

There is no longer any stability when it comes to middle-skill jobs, or jobs that do not require a degree or advanced training. 

The “value” of a high school degree has gone down significantly as well as the return on investment for an advanced degree. No matter whether students are looking to enter into the job market immediately after high school or would like to explore their options for higher education, there is never really an ideal time or field that will come without risks. 

The Threat of Major Injuries or Other Financial Drains

Even a family that has made decent gains when it comes to their savings or financial security may see it all torn away from them in an instant. 

Although sweeping changes have been made to the healthcare industry, medical bills remain the number one cause of bankruptcy. In situations such as an auto accident, victims may not see money for years on end as their bills continue to mount. 

This is one of the reasons that many have turned to financial services such as structured settlement buyers that can offer a lump sum instead of ongoing payments.

Limited Safety Nets

For quite a few years, many workers that were considering their options for retirement simply assumed that Social Security payments would be paid back after years of being taken from their wages. 

Up until a few years ago, these programs were then considered to be a supplemental form of income when retiring, but those days are long gone. Today's middle income families often assume that there will be absolutely no financial safety net unless they turn to the private sector for their savings. 

'The One-Page Financial Plan' -- Simple, But Not Simplistic   
Therefore, when my colleague and New York Times contributor Carl Richards first asked me a couple years ago to think about what a financial plan might look like if it was constrained to a single page, I was skeptical. After all, I'd dedicated my life ...

Medical Bills

Unexpected medical bills can take a toll on anyone's finances. Even though you may get compensation for injuries sustained to due to another person's neglect, you may not see the money right away, making it difficult to pay medical bills. 

If you have won a structured settlement, consider selling it to pay off your debt. Visit for more information.

Studies carried out by the PEW Research Center show that the divide between middle class families and upper class families continues to widen. 

This is why so many must now search for inventive ways to gain some momentum when it comes to financial mobility. 

Talk to a financial expert if you feel stuck or can't find a way to get out of debt. It's important to take control of your finances now if you feel overwhelmed. 

The sooner you make a better financial plan, the better off you will be in the long and short run.
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