Ponzi Schemes VS Pyramid Schemes How Do They Work?

Pyramid schemes and Ponzi schemes share many of the same traits where unwary people are tricked by unethical financiers who guarantee amazing returns. Nevertheless, in contrast to a normal investment, these kinds of systems can supply steady "earnings" just as long as the amount of investors continues to rise. 

Ponzi and pyramid schemes are self sustaining provided that money outflows can be matched by money inflows. The fundamental distinction emerges in the kind of items that schemers deliver their customers and the structure of the two schemes.

Learn more by checking out this infographic courtesy of www.EasyLifeCover.ie

Nurture Your Nest Egg: 4 Investment Ideas to Prepare For Retirement

Securing a comfortable retirement does not happen by accident. Rather, it’s the final result of a thoughtful strategy of saving and investing that continues over many years. 

Always remember that saving for retirement generally occurs over a timeframe that allows your savings and investments to grow. If you start with these 4 tips today, you will have a significant start on ensuring you will have sufficient funds to enjoy your retirement years to the utmost.

1 – Automatically Deposit Savings Every Month

A good way to save for retirement is to set up an automatic savings program that will take money from your checking account every month and put it into a savings account. Most banks offer this type of program for their customers. 

In addition, mutual fund companies also offer automatic monthly purchases so you can use dollar cost averaging to increase your mutual fund investment throughout the year.

2 – Maximize Your 401k

If your employer offers a 401k plan for retirement, join it and maximize the amount of money you can contribute to it during the year. 

If the employer will match your contribution at a certain percentage, try to contribute as much as you can to take advantage of this extra money. Carefully choose your investment vehicle, avoiding those with high management fees. 

Index funds are generally a good value for most people. If you get a raise, put all or most of it in your 401k to prepare for your retirement years.

3 – Purchase Rental Property

Thoughtful real estate investments can also be a good way to create an income stream for your retirement years. A rental property can provide a steady income that will supplement other retirement funds. 

However, choosing real estate for rental income requires considerable research and collection of information. A real estate professional, like those at The Alan Smith Team - RE/MAX Professionals, can provide the in-depth data you need to make an informed decision on your purchase.

4 - Join A Direct Purchase Stock Reinvestment Plan

If you don’t have enough money to buy a bundle of stocks on the stock market, you can still purchase small amounts of stock in prominent companies that are likely to increase in value over time. 

If you purchase stocks regularly throughout the year, you will be employing dollar-cost averaging to help increase your investment. You can purchase stock from well-known companies, such as Microsoft, General Electric, Lockheed Martin and many other industries.

It’s never too late to save for your retirement. If you haven’t yet developed a strategy, start today. Experts recommend a mix of savings, real estate holdings and long-term investments like stocks and bonds. 

If you follow these 4 tips, you will see how quickly your retirement nest egg grows.

What is an Installment Loan and How Exactly Do They Work?

When you need to make a large purchase, such as a house or a car, you often take out an installment loan to do it. Student loans also are installment loans, as are personal loans. Here is a rundown of what an installment loan is and how it works.

Specific Amount

One of the hallmarks of an installment loan is that you borrow a specific amount one time. This can be $200,000 for a house, $20,000 for a car or $2,000 for personal use. 

Installment loan amounts can vary greatly, but they all have one thing in common: Once you have agreed on an amount and signed the papers with your lender, the amount is set, and the only way to change it is to take out a new loan.

Set Payment Schedule

Perhaps the thing that defines installment loans more than any other factor is the set payment schedule. With an installment loan, you pay a set amount each month for a predetermined amount of time. 

If you have a mortgage, your term is often 15 or 30 years. With a car loan, it might be five years. Personal loans may be only one or two years. 

Secured VS Unsecured

Installment loans can be either secured or unsecured. A secured loan is a loan in which the asset for which the loan was issued acts as collateral, meaning it can be foreclosed on and repossessed if you don't make the payments. 

Home and car loans are examples of secured installment loans. An unsecured loan is a loan with no collateral backing it, meaning the only recourse the lender has for nonpayment of the loan is to sue the borrower. 

Some companies, like Las Vegas Finance, know that personal loans and student loans are examples of unsecured installment loans.

Amortization

Most installment loans are amortized, meaning that while you make the same payment every month, the portion of the payment going to principal and interest changes. 

With most installment loans, most of your early payments go toward paying the interest on the loan and very little goes toward the principal. In the latter stages of the loan, that ratio flips. 

If your installment loan allows you to make extra payments or pay off the loan in full early, you can save money on interest costs by doing so.

It's likely you will take out an installment loan at some point in your life. Knowing what they are and how they work will help you make better decisions regarding the loans.

How to Avoid Being Ripped Off When Buying Emeralds

The gemstone market is a challenge to navigate for those who don’t know what to look for and what to consider when searching out a quality stone. 

That is one reason that learning about emeralds and the various factors that increase or decrease value is important before you start looking at stones and discussing price with a merchant.

Emeralds are a beautiful stone and can be worth the price, but for those who don’t know about potential factors like treatments or color value it is far too easy to spend too much on a stone that is not worth that price tag. 

Below are details on the factors that weigh into the purchase of a valuable emerald and avoiding overpayment due to inexperience with the market. 

Consider the Color

The darker the color, the better quality the stone. This is important in the search for emeralds, as people tend to look at other qualities when this quality is a big determination in quality and a correlating factor in the cost of the stone. 




Looking at a stone can give you an idea, but keep in mind that dying stones is common. It is important to know the signs of dying an emerald to avoid paying too much for a treated or an imitation stone.

Look Into Whether They Have Been Treated

Emeralds are not readily available in the market, at least in comparison to other gems. This is a big reason when gems with a lesser value are treated. They can be dyed or fractured to give them the appearance of a more valuable gem. 

However, the treatment actually makes the gems less valuable. When searching for an emerald, it is important to ask about treatments and look for signs so you aren’t paying higher prices for gems that have been treated and are not worth that price tag.

Consider Imitation if Cost is an Issue

Imitation emeralds can look great, and they can be a worthwhile investment if the market is currently running too high for your budget. The important thing is to know that they are imitation and not be expecting a natural stone for that price. 

Learn the Grading System

The best gemstones are in the AAA bracket. This typically covers 10% of the gemstones. These stones have a high brilliance and a deep, rich color. They also are moderately to slightly included.

Meanwhile, the next level down is AA, which is roughly 20-30% of the stones on the market. They are medium green and moderately included, usually with a mid-level brilliance.

The largest portion of available emeralds on the market fall into the A bracket. These gems are considered good, are a dark green and are opaque. They are moderately included and usually are available through mall jewelers.

In order to avoid being ripped off when buying emeralds, it is important to know the market and have your expectations in order when you are hunting for the right gem. Knowledge is a helpful asset to have in any search, and the search of the emerald market is no exception.