Currency Investing – The Ultimate Method of Making a Fortune From Currencies, Or is There Better?

Posted on March 27, 2023 by schatzi

Currency investing is one way to make money from dollars, euros and the like. What does it involve and how does it work? Finally, is there a better alternative?

What Is Investing?

Many people these days, especially those not involved in the financial industry, use the term “investing” to mean many things. Generally, it is used to refer to putting some money, time or other resource down and then waiting for an unquantifiable return at some point in the future.

When it comes to financial specifics, investing is the act of putting money into something with the aim of achieving long term returns. Generally speaking, there is no intention to access the invested money quickly. It is not unusual for a person’s money to be “locked up” for a period of ten, twenty or thirty years.

Although anyone can invest at any time, over any time horizon and in any amount (and are often given tax incentives to do so), most investments are those made by pension funds. Pension funds invest billions of dollars each and look to achieve better than (stock) market returns.

One of the most important themes with investing is to minimise risks as much as possible. This is because people’s pensions are at stake and nobody wants to work for 35 years or more and end up with nothing. This is why returns such as 5% per year might sound paltry but you must think of higher returns having been given up in return for much lower risks.

Currency Investing

A person or a fund can invest in many things such as stocks, bonds and commodities. Currencies are just one more thing to invest in.

The notion of putting regular money into something and holding onto it for a while in order to get a return is an alien concept to currencies. In many ways, the word “currency investing” is actually an oxymoron.

This is because few people take a long term view on currencies. Few people can say that one currency will outperform another over a period of 20 years. If people do expect this, then this will already be factored into the price.

It is more common to invest in currencies for other reasons e.g. to minimise risks.

Is There A Better Way?

The currency market is the largest financial market in the world and turns over more than $4 trillion each day. Very little of this arises from currency investing. A much larger chunk is a result of speculation.

Speculators, or traders, do not want to buy a financial instrument and hold onto it for 20 years. Over 20 years, an annual return of 5% would give you almost triple your money. Speculators don’t want to wait 20 years to triple their money. Some of them are so impatient that they want to achieve that in a single day!

Trading currencies is much more risky than investing them but it delivers far greater rewards. With appropriate controls, the risks can be kept low too.

And thanks to the internet and advances in technology, trading currencies is no longer exclusively the realm of large financial institutions. Today, any Joe can trade currencies and start off low, trading as little as a penny per pip.

Currency investing has its place. But, ultimately, it cannot be compared to currency trading. In my view, the latter if far superior to the former.

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Ensure Timely Collection From Your Insurance Company

Posted on March 26, 2023 by schatzi

Addressing an insurance company for a car insurance policy you have to be extremely careful and farsighted not to have troubles in the future. You have to clearly understand that you buy a policy not because everybody does, but to insure fair compensation in case of an accident. That’s why first of all you need to gather information, shop around and choose a reliable insurer and the most appropriate policy terms. Even if your insurance provider is noted for excellent service, there are several things that you should do to speed the process along and ensure timely collection from your insurance company in case of an insured accident.

First of all, it is important for you to know the scope and limitations of your coverage. This is to avoid wasting time and effort on details, only to find that you are have no legal grounds for the compensation you are seeking. Read your insurance policy and clarify any questions you may have with your insurance agent.

If you are satisfied with all terms of your policy written in the contract then you have to carry your obligations thoroughly. If you are a good policyholder who has had no problem making premium payments and who has had a generally good relationship with your provider, the claims settlement process would usually be much easier.

After an insured accident happened and you are sure to have legal grounds to receive compensation from your insurance company, than you have to act. Your rights as a consumer of the insurance industry are protected by an “Unfair Insurance Practices Act” or an “Unfair Claims Settlement Practices Act” which were adopted by most states.

The specifics of these regulations vary widely from state to state, but, generally speaking, an insurance company is obliged to:

1. Acknowledge your claim within a certain time period, such as 15 days;

2. Investigate your claim promptly;

3. Make a good faith attempt to process a prompt, fair, and equitable settlement of claims in which liability is reasonably clear.

Additionally, an insurer may not refuse to pay your claim without a valid reason.

If an insured accident takes place, you need to contact your insurance company as soon as possible. You should give them the most detailed picture of the accident, such as the police report, photographs, evidences and witnesses’ accounts. Provide them with documentation of any injuries which happened to you in the accident as well. If you also have a written evidence of the date and time of your conversations with your insurance company, the names and contact numbers of the agents you have talked to, it may help you greatly to prove that you cooperated with your provider and gave them all the information they needed.

You are also recommended to get an appraisal from your car repair shop of the expenses for repairing your damaged car. In such a way you can ensure a fair damage appraisal by comparing it to your company’s variant, if they will try to cheat you.

Writing a letter to your insurance provider detailing your expectations and rights, as well as their obligation to compensate you in accordance with your policy limits and your contract with them is also recommended by the experts.

If ever you are uncertain about any step in the claims settlement – such as waivers or releases that need to be signed – it would be best to consult with legal counsel before taking action.

If you feel that your insurance company has violated your contract’s terms file a complaint with your state’s insurance department. If the department receives enough similar complaints, it will conduct an investigation. If you sue an insurance company privately some legal rules may help you, such as:

1. Coverage provisions will be construed broadly;

2. Limitation and exclusion provisions will be construed narrowly;

3. Ambiguities in the policy will be interpreted in your favor.

In some states, if the court’s decision is in your favor, the insurer may only compensate you the amount of your claim. But, in other states, you may also be awarded legal fees and punitive damages. So to get the most prompt coverage from your insurance company, just be well-informed of your rights and abilities. And these small tips may serve you a useful guide not to get lost in the insurance industry.

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Basic Roles and Responsibilities of a Nonprofit Finance Committee

Posted on March 25, 2023 by schatzi

The Finance Committee is a standing committee of the Board of Directors and is typically chaired by the Board Treasurer. The committee is responsible for reviewing and providing guidance for the organization’s financial matters. Specifically, the committee assures internal controls, independent audit, and financial analysis for the organization.

The Finance Committee reviews all financial statements and reports on financial activity to the full board. The full board may be better able to respond to aggregated information with important financial trends and issues highlighted in an accompanying narrative report. While each board member should have the opportunity to review organization-wide income and expense reports to understand the impact on the organization, members who are inexperienced at reading financial statements may get lost in overly detailed statements. To help the board fulfill its oversight function, it is important for the Executive Director and the Finance Committee to present the information in as clear and concise a manner as possible.

Here are the Finance Committee’s basic responsibilities:

1. Provide direction for the entire Board for fiscal responsibility.
2. Regularly review the organization’s revenues and expenditures, balance sheet, investments and other matters related to its continued solvency.
3. Approve the annual budget and submit it to the full Board for approval.
4. Ensure the maintenance of an appropriate capital structure.
5. Oversee the maintenance of organizational-wide assets, including prudent management of organizational investments.

Here are some specific tasks the Finance Committee might undertake:

1. Review revenues and expenses at a monthly Committee meeting.
2. Ensure that organizational funds are spent appropriately (i.e., restricted funds).
3. Develop an investment strategy.
4. Ensure the preparation of an annual audit, tax form (990), and audited Financial Statements.
5. Provide support to staff as needed.

A committee of about 5 or 6 knowledgeable people should be able to provide invaluable financial leadership to your Board.

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Understanding Climate Change to Build Sustainable Small Businesses

Posted on March 24, 2023 by schatzi

Business readiness is essential to increase one’s chances of business survival. Ensuring a business is ready for any threat includes preparing for extreme weather. According to a recent survey by AXA Group insurance three out of four respondents believe future climate will become more extreme more often, while only five percent believe the weather will become calmer. 88% of the respondents believe that it is possible to limit the consequences of climate change. Understanding how climate change might impact your business is essential to making a preparation plan and having it ready to implement when necessary.

As small businesses are integral to any economy, it is imperative that they develop independent and complementary programs across their industry to stay competitive and afloat in tomorrow’s shifting climates. Since all economies are dependent on this vulnerable sector, development of strong and actionable response plans is essential to national and global stability.

Recent examples of climate disaster include Hurricane Sandy, the typhoon that precipitated the Fukushima Nuclear Disaster, and the many F5 tornadoes in central Oklahoma. Business Continuity Consulting Oklahoma lighting more severe and frequent climate variations, businesses will need to re-assess and re-engineer their existing disaster risk management practices. The greater and more pronounced the climate change, the greater the disruption to product and service creation and delivery. Unlike larger organizations that tend to adapt to recurrent disruptions, small organizations cannot devote as many resources as frequently. Thus, small organizations must learn how to plan and implement climate change adaptation plans more efficiently and fluidly.

Developing rapid response and implementation plans for increased and more severe climate change are beneficial not just for climate change. Having a plan in place and ready to execute helps small businesses respond to and minimize damages in response to many threats. The same plan that helps small businesses respond to natural disasters can help businesses become profitable by offering technology that helps consumers and other businesses work through a natural disaster.

There are many things a new or existing climate change response plan can benefit from. Taking into account new weather predictions, business survival plans should implement the following steps:

  1. Create a plan: Developing a plan is essential to know what to do beforehand. When an emergency is imminent, there will only be time for execution.
  2. Insurance: What is and what is not covered. Based on the organization’s budget, assets, and an assessment of what needs to be covered will help determine the best type of insurance policy.
  3. Weatherproofing: What aspects of the business can and cannot sustain a natural disaster. Looking at purchasing products that come weather-proofed and what existing fixtures need to be weather-proofed is essential to respond effectively to future weather events.
  4. Data backup: Developing a system to ensure all data is safe in case of a natural disaster. This can include data virtual or site backup.

Each organization has different needs and goals. Therefore, climate change response plans must be individualized for each organization’s needs and future goals. DCS Planning manage many organizations have planned for short-term needs, planning for long-term needs, in light of rapidly changing weather and the increased frequency of weather disasters necessitates long-term planning. Along with planning, organizations that are able to adapt efficiently will help their organizations survive and thrive despite any emergency, weather or otherwise.

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