Investing in gold, yes or no?

Is it a good idea to invest in gold? At this time I found two quite substantiated opinions about investing in gold. Both are by people who I think are experts on the subject and I do not have a secondary interest in the subject. So I find it interesting to hear.

On one side in favor of investing in gold is Marc Garrigasat, the blog author Investors Conundrum and president of the Koala Capital SICAV. According to Marc Gold is the true currency of payment of the planet universally accepted, is much older and is not affected by debt that may have taken the issuing state.

On the other side is that of John Reed, author of several books and articles on real estate investment in the United States and one about protecting the savings in bad times. He says that gold is a bad asset to hedge against inflation. Although he recognized advantages such as high density value, says that gold holds its value can lower long-term, and that in the future end up losing because value is above its historical average inflation-adjusted.

In full crisis investing in gold this who would be at the whim of rich sound, but we must also recognize that the turbulence and the high price of it are causing many mediates class people engaged in buying gold, no more than see the shops and businesses that have emerged, some of them with great success and attention given by the media. In fact it has spoken to install gold vending machines . All this without counting the movements of large investors (investment funds, banks, etc.) that are around gold.

Who is right? Should we sell everything we have and buy yellow metal or should we invest in other intangible assets? Personally I think the future imagined by each of the persons mentioned is different, and the period in which the investments contemplated. Meanwhile asks readers? Invest in gold or invest in gold?

The Compound Interest (part II)

In the previous article we discussed that with compound interest was not very difficult to arrive at a figure of, say, € 300,000.

Well, needless to say, despite not be complicated requiring high doses of patience and discipline. Highly difficult thing when you have a considerable amount of money in hand, the temptation to eat uncontrollably or buying a luxury item, see a car, a house etc. exponentially increase.

A major plus point is the age at which you start, it is clear that the longer devote the most amount of compound interest can gather during a given period of time. So begin no later than age 30 would be ideal.

The first is to score a goal. Then decide how we figure that we will be around for a few years head.

Suppose we do not want risks and we're moving from, for example, 3-4% will give us a bank deposit and give us 5-7% by acquiring quality corporate debt. We mark a savings rate X which in monthly maturities of our investments go humble adding interest.

 

 

At the end of each year will add to the annual CPI rate of savings we had last year so we make sure we do not lose purchasing power over the years and inflation were not gaining ground.

An example. Monthly savings rate € 500, in a year together € 6,000. The next year we will have € 6,000 in an investment for example at 4.5% APR so that at the end of the second year we will have € 6,000 the first year, plus interest of € 6000 to 4.5% (213 euros after tax ( 21%)), but the 6000 euros (plus CPI should have risen to the saving rate) in the second year. A total of 12,213 euros in two years just.

Do you get the idea right? The third year we invested 12,213 euros, for example, the 4.5% that we will generate € 434 after tax, but the 6000 (plus annual CPI) for the third year, in total € 18,647.

In three years we will have € 18,647 without having updated the saving rate not to complicate the explanation. I think it's pretty clear the concept.

It is clear that more and more savings rate interest we reached the goal faster. But the same does not increase the interest savings. If you double the interest rate at which you are making your money work the result will not bend but is multiplied by 3'5. So imagine that can happen maximizing the savings rate and get a higher annual interest average. Spectacular.

It happens snowball effect, the principle is much start but once we have run for anyone.

To give more examples and see how it affects a slight increase projected interest rate over time.

Starting with 0 and with a savings rate of 610 € monthly, 3% compound interest capitalized through in 20 years we will have about 200,000 euros, in fact rather more in the calculation because we have not updated the CPI savings rate.

Just changing the 3% to 5% and we almost € 250,000. Can we imagine if we get over it?

If for whatever reason we can start from a number other than 0 that we have gained in time.

Let everyone do their calculations, charts and projections and let your imagination run wild. On the net there are plenty of calculators and compound interest tables .

Anyone is more motivated? You just have to want it.

Waiting for the big-market bond rotation

The OECD issued its latest revision on global economic growth prospects, in the first of his two appointments or annual reviews. The overall impression is of slow growth and downward adjustments in earlier projections.

In USA GDP will expand even more slowly, at rates of 1.9% this year and 2.8% in 2014.

In Europe much more pessimistic, expecting a contraction of 0.36% of GDP this year and moderate growth of 1.1% in 2014. The main problem remains the debt.

For Asia disparate and curious vision, the two largest economies China and Japan grow although downgrades the first, to 7.8% and the second upward to 1.6%. Curious because if China grows below 7.8% will be a warning sign of weakness and would alert the government while if Japan grows by 1.6% all happy ... not the Nikkei has left a 5.15% on the session.

U.S. bond markets nervous, considering that the expected growth without being robust, it could be enough to affect the asset purchase program by the Fed.

Furthermore bonds approaching resistance area (in profitability or price support, as you look) interesting from a technical perspective, the 10 years in 2.4%, which if exceeded invite managers to modify some strategies.

The technical aspect of fixed income USA invites caution for months, as I come through the graphic exposing long stretch following:

Bonds "high Yied" are also suffering falling sales and prices in line with the sovereign. You can read at this link an interesting article about the risks of rising rates, derived from the tendency to convexity hedging.

A reference to the debt market USA is the ETF (AGG) designed to track the performance of all U.S. debt, Total U.S. Bond Market ETF (37% Treasuries, 28% MBS and the rest in corporate and agencies) capitalization of $ 15,600 million is also falling in price and this will be five weeks straight and falling sales.

Generally, when the bonds fall weak moves financial markets assembly and intermediate trends ruptures tend to bring major changes in the outlook and portfolio adjustment, feeding additional losses in assets.

This time, before such change in the mindset presumed investor and as turbulent markets, handled all markets fall? Unison or there will be a mass migration of Fixed Income Funds Equity?.

Uncertainty about the Great Rotation is debated and concern among fund managers and selectors will depend largely on market confidence about staying "apuntaladora" Bernanke and real economic opportunities.

In view of the behavior of the Fed, it could be argued that the Great Rotation want to further enhance asset reflation and get the expected wealth effect that can finally bring down the pernicious tendency of the money multiplier.

Specific corrections in stock prices are necessary and "healthy" for the strength of trends, there should be an adjustment at any time, perhaps coinciding with breaks bearish on bonds.

After an eventual correction will attract capital bags different sources, one of them raised liquidity proceed with the settings fixed income portfolio and if the helicopter flies over satin, as the FED-BAG correlation is 85%.

True, stock valuations discounted cash flow worsen with rising interest rates and subtract bag. However, the bag can also grow through multiples expansion as we tested several times.

The music continues to play and as said the CEO of City before the debacle, must keep on dancing ... but unlike Mr. Charles Prince also closely monitoring the situation to avoid being caught in an artificial rise will end in tears, as the rest.

Equities vs. fixed income

We want to invest but do not know where to start. We heard that a neighbor buys shares, another has-bills ... but it sounds like Chinese. The most common among the ordinary people, not familiar with the investment world is to know the stock exchange. Equities bag not associated with on many occasions.

If we go a step further, on the other side of the sidewalk, no bonds. Four out of five people questioned in the street has never heard of the bonds, but the bonds of state and treasury bills.

There is a lack of knowledge of concepts and the association has to be clear that equity = stock exchange = buy / sell shares on an exchange.

And fixed income = letters / bonds / debentures, although in this case it is not so easy to explain as above.

I am often asked which is better, if the fixed or variable?, is an open question as it is not a duel to be the best way to invest, but every one of the options requires a plan or strategy determined and made ​​to measure.

By email I have received a comment on why equities RECOMMEND even. I have to say that I've never done, just position myself where best suits me and I adapt to the rules of the game on the fly. Who else who ever invested less in stock, if not he will have done so indirectly through your bank in a structured deposit or a mutual fund. Of all the people who have bought shares being aware of what they did, probably 8 out of 10 will have lost money, have won something and that ten will be made ​​in August. It's pure statistics. To earn a few most be missed.

The bag is fascinating. But never an individual investor may invest to a "higher level" because just as fascinating is equally manipulable. If I want to buy shares of Google I can do with a few mouse clicks. I can think that the company is "on fire" and that will go far. But managers may hedge funds, pension funds and large investment funds do not think the same and withdraw their positions. In that case the action begin letting down caught out if I have not heard before, either by choice or by the use of a stop loss (stop loss).

The strategy followed by these three groups of investors is quite simple in concept. They come in solid companies with good growth and the mere fact of having a reputation draws lots of people, and I do not mean people like you and me (also), but managers and smaller funds and large investors capital private. When the action is "hot" is said, the great go through the back door, by stealth, reaping the benefits and leaving others with an action that is devalued by simply taking away a part of its value . This happens every day, and is to blame for that 8 out of 10 of us lose money in stock market.

If you look at a recent case we can see if Apple / Google. The first was the world's most powerful company, shares more than 700 usd and bank account filled to the brim, to say nothing of the benefits you get. Until one day a great manager decides he has had enough and leaves, of course others are wary and follow him. There is no reason. Humans are like dogs when you shoot with a stick.

Source | Yahoo! Finance

So where has the money gone? Much of it directly to Google. In six months is up 40% to more than 900 usd per share, your business is going well or very well, but Apple is stronger and gets more benefits. And the box (cash money) is several times larger than that of the search engine block. But the funds are positioned in the search, making skyrocket while Apple already looks like 700 usd far and passes through a discrete (to be what it is) 400 usd.

Source | Yahoo! Finance

Until some lit, some other privileged information worldwide leading company, decides to abandon positions. The action will begin to lose because it is what makes the law of supply and demand. If a site is removed as there are less.

With fixed income this can not happen in this measure. Market does not work like this. As much as the bond is not fixed for the purpose of this type of investment is not the same. In this market, commonly, it comes knowing what is going to win, and although we can speculate without any problem, large funds do not use this method. In this market, which we are most knowing the outcome. Knowing that the current uncertainty is no reason for you to lose money, and if all goes well I will recover the initial capital plus interest at maturity.

Clearly positioning myself for fixed income, but that does not mean they do not use the equity (if I use it) but I move into what best suits my investment method.

I see it like a business. Imagine you are the manager of a company and you have two possible scenarios for the end of year results. Think of your choice dependent jobs. On one side of the table is the aggressive option (the reference to equities), this option is as follows: if the thing goes well the company will earn a 25% in this fiscal year. If something goes wrong the company will lose 15% and you have to make a cut of 30% of the workforce.

Across the table is the most relaxed (relating to bonds), in that you will not lose in that year but the benefits will not 8%.

Which do you prefer?

Sure you reflect on this example you have decided that the bond is better. No, not better. It's different. It is used for different things. It depends on your plan and your ambition. Not the same winning by 8% to 25%, but it is the same to win by 8% to lose 15%.

Quite some time I am in favor of adding 8 at 8, and not from adding 25 +10 -15 -8. I hope you understand. I am more than convinced that long-term earning just over fixed income than equities.

Just to give an example, a well-known blog (I will not say the name), which have a public investment portfolio. Since 2008, have achieved 16% revalue. A 16% cumulative, then dividing by the years from the start date is plus or minus 3%.

  In fixed income, and without being a "master business" minimum multiply that number by two.

This is not to say it's easy and those who invest in equities fools. Not at all. Only that each tool is used to a certain way of working.

Bank deposit. You know how it works?

When hiring a bank deposit must look at several things and although it seems to be the easiest investment there, it is not the end of the post and I will tell you that if it is, we have to fix on the characteristics of product we hired, mostly to give us for a ride and at the end we get on a good scare and anger.

Before everything. A bank deposit, fixed term or fixed-term deposit is the same. You will leave some money to the bank to do its thing and he in return gives you a interest as compensation. It has a fixed duration and fixed remuneration contract is fixed, ie before entering already know what you're going to win. They are also guaranteed by the state (FGD) 100,000 per entity and person in case of bank failure.

This strong interest is mainly governed by the Euribor (interest rate to lend money to, including, entities) but with the whole issue of the crisis the illiquidity of banks have had to forget the taxes low interest rates by the European Central Bank (ECB) and make aggressive campaigns to individual customers a higher interest rate.

While official interest rates are at 1% banks are paying them to liabilities with 4.6% APR and without any connection from the client.

We will explain in more understandable words what the previous sentence. THE European Central Bank fixed in 1% the interest rate at which it lends money to banks, that is, that when you decide to open a window of liquidity to banks in need come to him to refinance because only charged 1% APR, which is very little.

But as always there are windows of liquidity banks must ingéniaselas to get more money and this is where the competition starts to get money from ordinary citizens.

Clearly, there are many people who prefer not to earn a little extra to have to change banks but there are many people and with real money if you are willing to move to earn more.

Therefore, the most interest is willing to offer, in theory, is the one with more numbers to get more funding. (Although other factors influence how the country of origin of the entity, rating rating and even if you drop close to home or if you are good at managing the Internet).

Once we are clear because there are going to explain bank deposits which typically offer entities and that we'll be looking.

There are several types of deposits but of course we say that we are interested only pure and hard deposits without additional links, no credit, no insurance, or payroll or anything.

Being a low-risk investment, and suitable for every investor profiles, we can see that the investment triangle occupy a very relaxed site to be a liquid investment, low risk and therefore unprofitable.

Investing in this way we will not get rich but how low we will not lose money, and I say now lose because if you go to a lot of companies and they offer a lower interest rate to 3% and enter missing. So clear.

If you want a band inflation eats it otherwise you better grab your money and spend it how you will at least give pleasure.

We also have to look at whether the associated account where interest is exempt receive commissions or we will charge between 6 and 20 euros per year. Thing that still remains for the low profitability that we provide.

Now we are chastened and they do but you have to be careful that we do not give any kind of product then selling costs or recover the money, you can leereste article preferred to go deeper on the subject.

Remember that the bank is to serve. 's not your friend , and if not keep his promises or not treating you how you deserve there are dozens of them scattered throughout the geography.

As a final conclusion and summary say that everyone who has "some" money should try to get some performance to keep purchasing power and try to at least get something "extra". Do not be charging for anything and remember that it is you who is indebted to the bank money and not leaving you giving interests.

Finally, always read the fine print to take no surprises.

Indeed, investment is simpler than having no money at home. In contrast is the least profitable of all but ultimately is an investment at 0% APR.

I hope this clarification have no hesitation in going to the bank to make "some investment" and if you do not hesitate to contact me.

APPLE Magic: Succulent PROFITS poor TAX

The U.S. Senate has set to work to investigate the major tax fraud occurring in their country. The genius of Apple to evade taxes has no limits, the Senate knows and wants to end it. They have made a report and the data are chilling.
Fraud is the concentration of profits in some subsidiaries that are not based tax.
The report highlights the possible agreement by Apple to Ireland for a tax rebate of 10%, from 12% to 2%.
A clear example is the holding of foreign affiliates (AOI), which in the past four years has made ​​a profit of 30,000 million dollars even stated anywhere.
On the other hand, we have (ASI), which is responsible for billing the sales in Spain, using companies from Ireland to escape the Spanish hacienda, specifically 74,000 million in the past four years.
In 2011, for example, of the 22,000 million profit paid 10 million dollars, less than 0.05%
Apple has more than 100,000 million U.S. dollars outside. 61% of its sales are overseas records.
Large experts believe that the problem is that "the tax system is not up to the digital age"
The U.S. Senate has launched accusations against Ireland to facilitate such companies to enter its country attracting them with their "tax incentives"
with these statements, Gilmore, Irish Deputy Prime Minister, leaving the way of a U.S. Senate report which states that the technology giant created two subsidiaries in Ireland that had no employees or physical presence, and whose sole purpose was to channel thousands of million of its global profits to avoid paying U.S. taxes, saying the tax problem comes from other countries, not yours. How do you think that affects the economy? Could eradicate extreme poverty by taxing big companies? Yes, but 2 times.

The U.S. economy grew 2.4% in the first quarter

Washington, May 30 (Thomson Financial). - The U.S. economy grew at an annual rate of 2.4% in the first quarter, a tenth less than originally planned, as a result of public spending cuts approved by Congress, especially on defense. However, Commerce Department data released today highlight that consumer spending rebounded in the first three months of the year at a rate of 3.4%, the highest in the past two years. The data is particularly significant in an economy like the U.S., where private consumption accounts for almost 70% of the total Gross Domestic Product (GDP). In its first estimate, the federal agency had estimated GDP growth at 2.5% for the period between January and February. In this way, the U.S. economy recorded over two years of sustained growth, despite its still palpable warmth accelerates its expansion over the last quarter of 2012, when it expanded 0.4%. The U.S. trade balance data also showed positive, with an increase in exports of goods and services by 0.8% compared with a fall of 2.8% reported for the fourth quarter of 2012, and imports which grew by only 1.9 % compared with a decrease of 4.2% in the previous period. Also, the real estate sector seems to consolidate its recovery from the 2008 crisis, and residential fixed investment grew at a rate of 12.1%. As a brake on economic growth, in contrast, behaved steep spending cuts amounting to 85,000 million approved last March to the end of the fiscal year in September 2013. Government spending fell 4.9% compared to 4.1% forecast in the first of three official estimates, with special emphasis on the defense sector which fell by 12.1%, compared with 11, estimated 5% previously. Without these cuts, the U.S. economic growth would have been 3.4% in the quarter. Meanwhile, prices remained controlled behavior, registering a growth of 1% in the annual adjusted, down from 1.6% at the end of last year, let alone the 2% threshold marked by the Federal Reserve ( Fed) U.S.. Although the data show some optimism about the U.S. economic discourse, the truth is that it is too weak to continue lowering the high unemployment rate in the country, which remains a major concern of citizens and which closed April in a 7.5%. In a parallel data released today, the figure weekly esempleo subsidy claims in the U.S. rose by 10,000 and stood at 354,000 last week. Experts valued the good performance of the economy in the context of sharp cuts in public spending, but said that is unlikely to affect the aggressive monetary stimulus policy implemented by the Fed to stimulate growth. In a recent appearance before the Joint Economic Committee of Congress, the Fed chairman, Ben Bernanke, stated that the policy stimulus including interest rates between 0% and 0.25% and monthly program billionaire bond buying is changed unless finding an economic expansion "continuous and sustainable." The third and final data on U.S. GDP will be released on June 26. MarketWatch

Washington, May 30 (Thomson Financial). - The U.S. economy grew at an annual rate of 2.4% in the first quarter, a tenth less than originally planned, as a result of public spending cuts approved by Congress, especially on defense. However, Commerce Department data released today highlight that consumer spending rebounded in the first three months of the year at a rate of 3.4%, the highest in the past two years. The data is particularly significant in an economy like the U.S., where private consumption accounts for almost 70% of the total Gross Domestic Product (GDP). In its first estimate, the federal agency had estimated GDP growth at 2.5% for the period between January and February. In this way, the U.S. economy recorded over two years of sustained growth, despite its still palpable warmth accelerates its expansion over the last quarter of 2012, when it expanded 0.4%. The U.S. trade balance data also showed positive, with an increase in exports of goods and services by 0.8% compared with a fall of 2.8% reported for the fourth quarter of 2012, and imports which grew by only 1.9 % compared with a decrease of 4.2% in the previous period. Also, the real estate sector seems to consolidate its recovery from the 2008 crisis, and residential fixed investment grew at a rate of 12.1%. As a brake on economic growth, in contrast, behaved steep spending cuts amounting to 85,000 million approved last March to the end of the fiscal year in September 2013. Government spending fell 4.9% compared to 4.1% forecast in the first of three official estimates, with special emphasis on the defense sector which fell by 12.1%, compared with 11, estimated 5% previously. Without these cuts, the U.S. economic growth would have been 3.4% in the quarter. Meanwhile, prices remained controlled behavior, registering a growth of 1% in the annual adjusted, down from 1.6% at the end of last year, let alone the 2% threshold marked by the Federal Reserve ( Fed) U.S.. Although the data show some optimism about the U.S. economic discourse, the truth is that it is too weak to continue lowering the high unemployment rate in the country, which remains a major concern of citizens and which closed April in a 7.5%. In a parallel data released today, the figure weekly esempleo subsidy claims in the U.S. rose by 10,000 and stood at 354,000 last week. Experts valued the good performance of the economy in the context of sharp cuts in public spending, but said that is unlikely to affect the aggressive monetary stimulus policy implemented by the Fed to stimulate growth. In a recent appearance before the Joint Economic Committee of Congress, the Fed chairman, Ben Bernanke, stated that the policy stimulus including interest rates between 0% and 0.25% and monthly program billionaire bond buying is changed unless finding an economic expansion "continuous and sustainable." The third and final data on U.S. GDP will be released on June 26. MarketWatch

The U.S. economy grew 2.4% in the first quarter - Expansion.com

Washington, May 30 (Thomson Financial). - The U.S. economy grew at an annual rate of 2.4% in the first quarter, a tenth less than originally planned, as a result of public spending cuts approved by Congress, especially on defense. However, Commerce Department data released today highlight that consumer spending rebounded in the first three months of the year at a rate of 3.4%, the highest in the past two years. The data is particularly significant in an economy like the U.S., where private consumption accounts for almost 70% of the total Gross Domestic Product (GDP). In its first estimate, the federal agency had estimated GDP growth at 2.5% for the period between January and February. In this way, the U.S. economy recorded over two years of sustained growth, despite its still palpable warmth accelerates its expansion over the last quarter of 2012, when it expanded 0.4%. The U.S. trade balance data also showed positive, with an increase in exports of goods and services by 0.8% compared with a fall of 2.8% reported for the fourth quarter of 2012, and imports which grew by only 1.9 % compared with a decrease of 4.2% in the previous period. Also, the real estate sector seems to consolidate its recovery from the 2008 crisis, and residential fixed investment grew at a rate of 12.1%. As a brake on economic growth, in contrast, behaved steep spending cuts amounting to 85,000 million approved last March to the end of the fiscal year in September 2013. Government spending fell 4.9% compared to 4.1% forecast in the first of three official estimates, with special emphasis on the defense sector which fell by 12.1%, compared with 11, estimated 5% previously. Without these cuts, the U.S. economic growth would have been 3.4% in the quarter. Meanwhile, prices remained controlled behavior, registering a growth of 1% in the annual adjusted, down from 1.6% at the end of last year, let alone the 2% threshold marked by the Federal Reserve ( Fed) U.S.. Although the data show some optimism about the U.S. economic discourse, the truth is that it is too weak to continue lowering the high unemployment rate in the country, which remains a major concern of citizens and which closed April in a 7.5%. In a parallel data released today, the figure weekly esempleo subsidy claims in the U.S. rose by 10,000 and stood at 354,000 last week. Experts valued the good performance of the economy in the context of sharp cuts in public spending, but said that is unlikely to affect the aggressive monetary stimulus policy implemented by the Fed to stimulate growth. In a recent appearance before the Joint Economic Committee of Congress, the Fed chairman, Ben Bernanke, stated that the policy stimulus including interest rates between 0% and 0.25% and monthly program billionaire bond buying is changed unless finding an economic expansion "continuous and sustainable." The third and final data on U.S. GDP will be released on June 26. MarketWatch

The U.S. economy grew 2.4% in the first quarter - Expansion.com

Washington, May 30 (Thomson Financial). - The U.S. economy grew at an annual rate of 2.4% in the first quarter, a tenth less than originally planned, as a result of public spending cuts approved by Congress, especially on defense. However, Commerce Department data released today highlight that consumer spending rebounded in the first three months of the year at a rate of 3.4%, the highest in the past two years. The data is particularly significant in an economy like the U.S., where private consumption accounts for almost 70% of the total Gross Domestic Product (GDP). In its first estimate, the federal agency had estimated GDP growth at 2.5% for the period between January and February. In this way, the U.S. economy recorded over two years of sustained growth, despite its still palpable warmth accelerates its expansion over the last quarter of 2012, when it expanded 0.4%. The U.S. trade balance data also showed positive, with an increase in exports of goods and services by 0.8% compared with a fall of 2.8% reported for the fourth quarter of 2012, and imports which grew by only 1.9 % compared with a decrease of 4.2% in the previous period. Also, the real estate sector seems to consolidate its recovery from the 2008 crisis, and residential fixed investment grew at a rate of 12.1%. As a brake on economic growth, in contrast, behaved steep spending cuts amounting to 85,000 million approved last March to the end of the fiscal year in September 2013. Government spending fell 4.9% compared to 4.1% forecast in the first of three official estimates, with special emphasis on the defense sector which fell by 12.1%, compared with 11, estimated 5% previously. Without these cuts, the U.S. economic growth would have been 3.4% in the quarter. Meanwhile, prices remained controlled behavior, registering a growth of 1% in the annual adjusted, down from 1.6% at the end of last year, let alone the 2% threshold marked by the Federal Reserve ( Fed) U.S.. Although the data show some optimism about the U.S. economic discourse, the truth is that it is too weak to continue lowering the high unemployment rate in the country, which remains a major concern of citizens and which closed April in a 7.5%. In a parallel data released today, the figure weekly esempleo subsidy claims in the U.S. rose by 10,000 and stood at 354,000 last week. Experts valued the good performance of the economy in the context of sharp cuts in public spending, but said that is unlikely to affect the aggressive monetary stimulus policy implemented by the Fed to stimulate growth. In a recent appearance before the Joint Economic Committee of Congress, the Fed chairman, Ben Bernanke, stated that the policy stimulus including interest rates between 0% and 0.25% and monthly program billionaire bond buying is changed unless finding an economic expansion "continuous and sustainable." The third and final data on U.S. GDP will be released on June 26. MarketWatch

The U.S. economy grew 2.4% in the first quarter - Expansion.com

How the International Monetary Fund work

To get in history, the International Monetary Fund was created in 1945 in the United States, and its main objectives are to promote international monetary cooperation, facilitate international trade, and reduce, ultimately, poverty. It also conducts economic policies international regulatory and conciliatory. It is part of the United Nations being an intergovernmental organization made up of 187 members. Headquartered in Washington DC, but has several offices around the world.

IMF Performance

• The main objective of the International Monetary Fund is to ensure the stability of the international monetary system that allows member countries, and therefore its citizens transact with each other, which makes maintaining a stable financial system, sustainable and balanced.
• For this, the International Monetary Fund provides funding to member countries to improve the margin of maneuver of each country in relation to its balance of payments. Between national authorities and the International Monetary Fund made an action plan, ensuring effective both for its compliance.
• It also provides technical support and does a great job as a consultant to member countries to develop effective economic policies, for example on tax administration, monetary and exchange rate policy, supervision and regulation of banking systems and the regulations governing them.

IMF Resources

• Currently, the countries to become members of the International Monetary Fund, quotas must deposit called "subscription fees", which are directly related to the economic capacity of the country.
• These assessments determine the economic aid that the Fund will provide each country as well as their right to vote in decisions about regulations. Thus, the higher the contribution of a country, the more power on joint decisions and have more financial aid when tackling a crisis.
• When a country needs financial aid, IMF gives 25% of its shares, with the country's commitment to return within a period ranging from 3 to 5 years. It is expected that the country must repay the loan as soon as possible to not leave without credit to other member countries.
• In the past, obtaining resources from the International Monetary Fund was made by obtaining the interest on loans outstanding, which made it less effective and solvent, then opting for the model that is currently running .

What are the criteria of banks to lend

Unlike what banks and preach the good credit history of a customer is the most important when lending to this, but taking into account factors that are related to the ability to repay the loan voluntarily or necessity, and that should be very clear.

The ability to pay

The business of a credit institution not sue their debtors and keep their property in the event of default, which also usually results in losses, but to collect the amount borrowed and the interest and fees on time.
For this reason, the main criterion for granting loans is that the applicant can meet the periodic installments. Generally, in the case of mortgages, the monthly fee should not exceed 35% of the borrower's monthly income and your household.
If it is a loan in the medium or long term, banks and fixing the type of employment contract that the customer has, in addition to the strength of the employer. If this does not convince them, may require hiring a payment protection insurance, for example.

The warranty

Second, to ensure that in case of default can recover the borrowed capital and interest, the guarantee granted is very important. If it comes to purchasing a home, precisely the mortgage on the property is essential because the loan shall not exceed 80% of the valuation of this.
In other cases, especially whether to grant loans for amounts higher or long periods, you may require the financial institution, for example, the guarantor, that is, someone other than the client is committed to your estate to pay the debt if it does not comply.
It is also usual for the agency credit loans is fixed in current assets of the applicant, that is, both money and other personal property such as stocks or jewelry that may eventually be left with the first, as a garment, and use it to collect the debt.

How to negotiate with the bank's best interest rate

If getting a loan is in itself complicated, get a good interest rate may seem impossible. However, if you follow certain trading strategies, the results will be more profitable than those which have been finalized to not use them.Trading ResourcesTo get a good interest rate is necessary to have two tools that support robust negotiation otherwise the lender will not even bother to raise a possible downgrade. It is important to feel in a position strong enough to require a modification of the standard conditions.
The first of them is to have a good credit history and be customer for several years. In this case the bank does not lose the customer interested and can offer good rates, in fact, experience shows that once a borrower has a loan with an institution, the tendency is to take it both accounts as the other products .
Additionally, it is critical information in advance, asking for contributions to various lending institutions, preferably in writing, about the interest rate they offer. Only in this way you can tell if the rate you are offering the bank concerned is outside of the standard in the market and if it is reasonable to request a rebate.LinkagesOne of the mechanisms currently used by lending institutions to lower the normal interest rate is called bonding, which is to ask the client to hire some additional products and maintain during the term of repayment of the loan.
Within these there is the payroll debit and utility bills, such as electricity, water, telephone and gas contracting life insurance and payment protection, hiring credit cards, and plans pensions and savings.
It is important to analyze how many basis points interest rate cut each product and determining whether compensated hire and if you are able to keep. In the case of savings funds, for example, the borrower is obliged to make monthly contributions.

tips on to help you save money

 

Then read ten helpful tips on to help you save money, either for special projects, education of your children, your retirement or family emergencies that may occur.Record your expenses for a monthSaving money is not as complicated as it seems, but before cutting your expenses, you need to know exactly what the money is going.To find out, write down your expenses for a month daily, weekly and monthly. You can do a mobile app or a book that you always carry in your bag. It is quite possible that you take a surprise.Once you realize what you spend the money, you can decide what things are necessary and what you can do without. That coffee shop you way to work or bottled water you usually drink, they can add a considerable amount at the end of the year, you could have saved with a little planning.You can for example, always go home with a bottle filled with tap water or buying you a thermos to take to work homemade coffee. If your work have a coffee machine, another option is to wait to get your job facilities to take the coveted coffee.What about that beautiful baby clothes shopping with your credit card? Think of the interest they charge you every month if you do not pay all of the purchases. Do not think that you can not enjoy your daily cup of coffee or dress your baby with these great fashion garments. Sure you can! The important thing is to find alternatives that allow you to save. Ask yourself the goal of spending a little less and save a little more each month. If you think so, maybe you'll have more motivation to avoid unnecessary expenses.You pay yourself firstThe secret to make saving a habit is to give priority to you. This does not mean you buy everything that catches your eye, but you will pay each month as you pay all your creditors usual.Ask yourself a realistic long-term and then "pay yourself" saving a fixed amount of money in a savings account or investment. Be sure to do the same day of each month (for example, every 10th of the month). If you wait until end of the month to see what's left, probably you will find that not much left.The easiest way to do this is to schedule an automatic transfer of a portion of your salary, however small, from your checking account to a savings account, a pension fund or a savings account for your children's college . Your goal is to make saving a habit so ingrained that it can not imagine your life without him. At the end of each month you will have the satisfaction of knowing you've got to protect your future and your family a little more than before.Plan your transfers in stagesMost pension funds, like the IRA (Individual stands for Individual Retirement Accounts and Pension Funds), savings accounts or other college savings options, allow you to choose the date for automatic transfer from your account. Plan these dates so that you know that you will not transfer money the same day to several accounts.If you are paid every two weeks, a transfer program every two weeks. If you are self-employed and the money will arrive irregularly, planning two dates in half of the month, if not usually pay most of your bills.Reduce your debtsSettle your debts is one of the best ways to save money, because the interest you pay on most loans (especially credit cards) is much higher than you earn on most savings accounts. So as you can reduce your credit card debt, student loans, loan to buy the car and any other debt you may have, so you can save more. The only large debt is reasonable to have for a long time is that of a home mortgage.For more information on how to pay your debts, see our guide.Become your own loan officerWhen you finish repaying a loan, continues to make monthly payments, but you! Schedule an automatic transfer of the same amount from your checking account to a savings account or an investment fund.Motivate yourself for a specific purposeDecide what you really want or need (a new couch, a new phone, a holiday) and see what it costs. Then set yourself a realistic goal, for example, take six months to save enough. Post photos of your goal in the refrigerator or in your wallet. Every time you will want to buy some new shoes or buy your child a toy more, you really do not need, look at the picture and ask yourself if you want this fad as much purpose for which you are saving.Open a savings account you can not touchSave for bigger expenses, like a down payment on a house or a car, opening CDs. These bank accounts pose no risk and offer a higher interest rate than normal savings accounts, but the money must remain in the certificate of deposit for a period of time (if you take it out ahead of time, you have to pay a penalty). That way, you can not touch it when you're feeling tempted to buy something you do not really need.Fill a jar with loose changePlace a large bottle narrow mouth (so you can not stick your hand) in a conspicuous place, and empty the coins there every night that's in your wallet. When the jar is full, you can make yourself packets (in banks will give the papers to wrap coins) or use the change counting machines found in some supermarkets, so you change coins for bills. After a few months, this may be enough pocket money to pay for a Christmas gift or membership in a gym, for example.Save the extra revenueEach time you receive a lot of extra money, for example, a tax refund, a payment had been delayed a lot, a bonus at work or a monetary gift, enter it in your savings account. Or, if you have debt, use it to pay your credit cards and loans, or to make an extra payment on your mortgage (money capital to reduce the amount of interest you pay over the years).Gasoline CutGasoline is expensive and the less you use, the more you save. If you can not buy a car that uses less fuel, is less often handle.Make turns with other moms and dads to pick up the kids from day care or with co-workers to get to and from work. Plan your errands so that you can make several in the same area at a time. Whenever you can, walk from one store and another or use public transport. And for your next vacation by car, consider traveling to a nearby location.