by: Satish Budhrani
Many find investments to be a risky deal not because investments of any kind require fair amount of speculative measures for comparatively larger returns, but because they lack the knowledge about what to invest in and when.
Investments, irrespective of financial class of a human are mainly divided into three categories, which are
1) Short Term Investments
2) Middle Term Investments
3) Long Term Investments
Short Term Investments
Short Term investments are those kinds of investments, which are made for a very short period; in a financial year such investments can be made for a day to eleven months of that financial year.
The major financial investment tools for short-term investments are
1) Stock market
2) Derivatives market
3) Commodity market
4) Currency market
5) Bond Market
6) Bullion Trading
7) Short term mutual funds investments
8) Systematic investment plans
9) Short term Deposits with banks
10) Recurring deposit schemes
11) Institutional deposit schemes
12) Money landing
One can investment in the above for short term from one day to less than an year of any particular fiscal year, however it is not a mandatory condition that one cannot invest for longer period in these tools. Majority of the short-term investment tools are speculative and hence yield high but may result in a loss as well if not invested properly.
Middle Term Investments
Middle Term Investments are made for a period of more than one year but unto three years. These investments are generally made for saving taxes and the yield on such investments is usually guaranteed. These investments are not as risky as many of short-term investments are. The majority of middle-term financial investment tools are different schemes floated for infrastructure development by institutions and governments under strict regulatory guidelines of government or regulatory authority that protects the interest of investor.
Below is the list of financial investment tools for middle term investment.
1) Tax exempted Government bonds or bond funds or tax saving investment schemes floated by Governing body or local government like municipal tax exempted funds
2) Corporate Bonds
3) Unit Investment trusts
4) Market Linked Tax saving Insurance plans
5) Tax saving mutual fund schemes
6) Treasury and agency instruments or Government securities (GSECs)
7) Bank Deposits
8) Investment in stocks (Debentures)
Middle-term investments tools unlike many of short-term investment tools are much safe and yield considerable profit. These investments can be called as risk free investments and are least speculative, seldom there is any chance of loss in these investment tools and most of them are highly secured investments.
Long Term Investments
Long Term Investments are those, which are made for a period of more than three years, and they are planned till retired age as well. Taking capital gains and risk cover factors into consideration, which provide solid foundation of financial self-dependency in retired age and platform for heirs, makes these investments. Apart from low tax on capital gains long term investments also have other tax benefits.
Long-term investment tools are
1) Real Estate Investments
2) Annuities
3) Life Insurance
4) Long term deposits with government bodies
5) Long term deposits in bonds
6) Capital investments in corporate sector or in any secured business in form of asset
Long-term investment tools are common for everybody irrespective of financial class however; investments and return are subject to one?s financial capacity.
Financial planning plays a vital role in one?s life as it gives clear picture of one?s position and the strategic direction in which one is going ahead and it is the only mode to prepare oneself from those events which will inevitably occur in ones life irrespective of whether one anticipate with them or not.
Intelligent investors realize the importance of financial planning first and begin to work on savings before investing which enable them to generate surplus cash and start planning strategically.
About The Author
Satish Budhrani is an expert in Investment and Portfolio Management and writes regularly on latest trends in the investment arena. For more investment advice, visit his blog at http://investmentfordummies.blogspot.com/.
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Tips and Simple Guidelines On How To Calculate Payroll Taxes
Tips and Simple Guidelines On How To Calculate Payroll Taxes
by: Sara Jenkins
Managing a business small, medium or big requires you to pay your taxes, as well as your employees taxes. Managing a payroll can be an arduous and taxing job, no pun intended. There are laws that require us to pay taxes and everyone have to comply with that. But keeping up with the payroll can give many people sleepless nights. There are so many deductions needed to be done and they have to be exact to avoid confusion and complications later on. State and federal taxes are very strict and you don?t want the IRS pounding on your door because of some mistakes. Make sure that you do your calculations correctly to avoid a mess later on. Keep your payroll records and tax payments as your reference so you have proof of the deductions and payments you have done. Different states have different laws about records; check it out with your lawyer or accountant to make sure.
So...
Tips and Simple Guidelines On How To Calculate Payroll Taxes
Tax help > Tips and Simple Guidelines On How To Calculate Payroll Taxes
Know How To Take Your Lumps
Know How To Take Your Lumps
by: Ken Morris
If you are about to retire or change jobs, or if your employer is terminating the company retirement plan, you may be eligible to receive a "lump sum distribution" as defined in the Internal Revenue Code.
Such a distribution may be substantial and may represent the cornerstone of your retirement security.
So it is important to consider your options carefully before making a decision regarding distributions.
Basically, you are faced with two main options.
Should you take a direct distribution and pay your taxes now?
Or should you roll your distribution over into a traditional Individual Retirement Account (IRA)?
If you decide not to roll the distribution over into a traditional IRA, you must pay tax on the distribution in the year you receive it. You will, of course, be able to invest the remainder as you please.
The main benefit of paying taxes on your...
Tax help > Know How To Take Your Lumps
Be Nice to Your Payroll Department
Be Nice to Your Payroll Department
by: May Bowden
Ok, so next to the taxman, your company payroll department might well be the most criticised people on the planet. Of course, when your pay is accurate and on time then you love the payroll people with a passion but when things go wrong it is a completely different matter. Rightly or not the payroll professionals come in for an awful lot of abuse if your pay is not perfect.
I have had experience of working in a payroll department, in fact, I WAS the payroll department so I am going to put forward a few ways that you can help your payroll department perform their job more efficiently and process all the money that you are due correctly. Yes, it is largely up to you I am afraid!
Your payroll department is only able to work with the information that you give it so it is important that you provide them with everything they need. I don?t mean handing in your expense forms the day after they...
Be Nice to Your Payroll Department
Tax help > Be Nice to Your Payroll Department
Investments - Short Term or Long Term?
Investments - Short Term or Long Term?
by: Satish Budhrani
Many find investments to be a risky deal not because investments of any kind require fair amount of speculative measures for comparatively larger returns, but because they lack the knowledge about what to invest in and when.
Investments, irrespective of financial class of a human are mainly divided into three categories, which are
1) Short Term Investments
2) Middle Term Investments
3) Long Term Investments
Short Term Investments
Short Term investments are those kinds of investments, which are made for a very short period; in a financial year such investments can be made for a day to eleven months of that financial year.
The major financial investment tools for short-term investments are
1) Stock market
2) Derivatives market
3) Commodity market
4) Currency market
5) Bond Market
6) Bullion Trading
7...
Tax help > Investments - Short Term or Long Term?
Taxes and Bankruptcy: The Nuts and Bolts
Taxes and Bankruptcy: The Nuts and Bolts
by: Richard K. Gustafson, II
The filing and subsequent discharge of either a Chapter 7 or a Chapter 13 bankruptcy may eliminate some types of personal income tax liability. There are, however, certain restrictions which must be met in order to completely eliminate personal income tax liability through bankruptcy.
Some personal income taxes may be eliminated through the filing and subsequent discharge of a Chapter 7 bankruptcy. The following requirements must be met for the personal income tax liability to be eliminated in a Chapter 7 bankruptcy:
? The tax return must have been filed on time
? The filing should not be fraudulent
? The tax return must have been filed over three years ago as of the bankruptcy filing date (e.g. IRS debts for the last three years generally, would not be dischargeable)
? Alternatively, in some cases, if the tax return was filed late, was not fraudulent...
Taxes and Bankruptcy: The Nuts and Bolts
Tax help > Taxes and Bankruptcy: The Nuts and Bolts
The Person With The Most Money Wins!
The Person With The Most Money Wins!
by: John Michael
The person with the most money wins! This phrase has been used repeatedly but not by the wealthy but by the poor "The have not's".
Money is not the only or even the most important thing in life.
You number one goals should be when it comes to life is:
- Good health
- Take care of Family
- Ability to enjoy life
- Happiness both for yourself and others around you
The above should be at the top of the list of any goal you have. However, wealth does make substantial improvements to each of the four areas of life listed above.
More money can mean better:
- Health Care
- Relaxing Vacations and Adventures
- Education for your children or yourself
- Better home than you have now
Best of all it can reduce stress from not having to worry about money!
Many of us have problems in life...
The Person With The Most Money Wins!
Tax help > The Person With The Most Money Wins!
How to Make a Winter Crafts Snow Globe
How to Make a Winter Crafts Snow Globe
by: Patricia B. Jensen
Snow globes are great for any occasion or holiday, simply by changing what you use to create your scene. Just let your imagination run wild!
For example, make a harvest scene for Thanksgiving, a ghostly haunted house for Halloween, a red Valentine heart or colorful Easter/Spring display for the holiday of your choice.
Other themes could include a special birthday or event, sports team...
florist How to Make a Winter Crafts Snow Globe
Tax help > How to Make a Winter Crafts Snow Globe
How To Know When Not To Buy A Used Car!
How To Know When Not To Buy A Used Car!
by: Dr. Drew Henry
If you are looking to save money by buying a used car, it can be a very viable tactic. However, even though you are on a tight budget, buying a used car should not be immediately decided upon and should take a lot of consideration. Why? This is to avoid throwing your hard earned money away.
Below are some pointers that may help you decide when to buy or not to buy a used car:
1. You should...
How To Know When Not To Buy A Used Car!
Tax help > How To Know When Not To Buy A Used Car!
5 Ways Google Will Help You With Your Traffic
5 Ways Google Will Help You With Your Traffic
by: Tinu AbayomiPaul
If you?ve ever had a severe drop in your Google rankings in search results, you may think of Google more of an enemy than an ally.
But if you knew what I do, you?d realize that there are tools provided by the search engine that help you learn more about your traffic, and may even help drive visitors to your site.
Here are five ways that Google provides free traffic assistance.
...
5 Ways Google Will Help You With Your Traffic electric generator
Tax help > 5 Ways Google Will Help You With Your Traffic
How To Deal With Liposuction
How To Deal With Liposuction
by: Diana Valo
It?s not a secret that every single woman (and even man) wants to look nice and attractive. We can?t image our day without make up, fashion clothes, fresh breath, white teeth, unwrinkled face, and even some extra pounds make us so upset! Yes, sometimes each extra kilo may destroy individual?s self- reliance. Women try to reduce extra weight by diet, exercising, starvation or they try effective fat removal method ? liposuction.
Liposuction...
cosmetic surgery How To Deal With Liposuction
Tax help > How To Deal With Liposuction