The Big 401k Picture

By Michael Swanson

Your grandparents probably had pensions. They worked in an era where their loyalty was rewarded even after they retired. Almost every company had a pension plan and almost every employee was able to take advantage of it because they kept that job forever. Heading into the 1980s, they all but disappeared. Companies no longer felt obligated to their employees. But you need 401k advice to invest. Employees changed job because there were now more jobs to go to. As pension plans became history, the 401k emerged as a successful replacement.

This type of retirement plan became very popular very quickly. It was an added benefit companies in that they didn't need to do anything other than select a brokerage house to manage these accounts. Most companies that weren't unionized elected to offer these plans to employees, and many of them even had plans where they would contribute right along with the employee, sometimes doubling the investment. However, this is optional and no company is obligated to contribute on behalf of any employee. Many companies either stopped, never did, or reduced their contributions significantly.

The law allows employees to invest a maximum of $15, 000 a year. It doesn't matter how much they make. These funds are comprised of mutual funds of varying degrees of safety, and you can choose which ones you'd like to invest in. Keep in mind that you can only invest in what the brokerage firm sponsors.

Even though the concept of a 401k is attractive, not all plans are worth the investment. Many employees choose not to participate in their company's plan because after doing some research they may find that the funds (mutual funds) have not performed well.

When you do contribute to a 401k, you are using pre-tax dollars. If you need to make an early withdrawal (before age 59), therefore, you will be penalized and taxed at your regular rate.

When the time comes to leave your company, don't forget to take your 401k with you. Get some professional financial advice on rolling it over into another 401k or a Roth IRA. - 23226

About the Author:

For more on the stock market go to our stock trading newsletter.

Understanding Forex Pips (Part I)

By Ahmad Hassam

A forex pip is the smallest unit of price movement in the exchange rate of a currency pair. Pip is an extremely important concept in the foreign exchange trading. Forex trading revolves around pips. Pip stands for Percentage in Points or some refer to it as Price interest point.

Traders trade foreign exchange in order to make as many pips as they can. Earned pips are the reward for a good trade. And lost pips are the punishment for a bad trade. Pip is almost similar to the tick found in other financial markets like the futures market.

Forex pip refers to one point change in the fourth decimal place of the most major currencies. Why most? Because there is a currency that is expressed up to two decimal places relative to the other currencies. Japanese Yen!

The convention is to express for most of the currency pairs the exchange rate like x.xxxx where a change of 0.0001 would constitute one pip. A pip would be the equivalent of 1/100th of one percent or one basis point. You must be familiar with the concept of basis points used in calculating the interest rate changes. You must have often heard that the FED or for that matter any other central bank has increased or decreased the interest rate by 15 basis points. Pip is almost similar to a basis point.

For the handful of currency pairs featuring the Japanese Yen like GBP/JPY or USD/JPY, the exchange rate format would look like xxx.xx where a change of 000.01 would constitute one pip.

Calculating the exact value of each pip for the currency pair and lot size traded is the job of the brokers trading platform which should include a pip calculator created especially for this purpose.

But you can use this simple calculation to calculate the pip value. Here is a simple calculation: Pip= (Lot Size) (No of Lots) (Pip Size). It is better that you also know how the exact value of a pip for a currency pair is calculated. The result of this equation will be denominated in the quote currency.

The first currency in the pair is known as the quoted currency. However, the most popular name for the first currency in any currency pair is the base currency. Quote currency is the second currency in the pair. The second currency in the pair is also known as the counter currency. So in the currency pair, EUR/USD, EUR is the base or quoted currency. USD is the quote or counter currency.

If the quote currency is already in US Dollar, no conversion is needed for the US Dollar denominated trading accounts. For example no conversion is needed for the currency pairs, EUR/USD, GBP/USD, CHF/USD, JPY/USD etc. In such a case the value of the pip will always be equal to $10.

It simplifies many things for the forex traders whose accounts are primarily in US Dollar when the US Dollar is the counter currency or the quote currency. This includes heavily traded pairs like EUR/USD, GBP/USD and AUD/USD. It helps to keep in mind that all currency pairs with the quote currency as US Dollar (ending in the US Dollar) will be $10/pip for a standard lot, $1/pip for a mini lot and $0.1 for a micro lot. - 23226

About the Author:

Mr. Ahmad Hassam is a Harvard University Graduate. He is interested in day trading stocks and currencies. Try 1500 Pips a day Forex Signals. Discover a revolutionary Forex Robot Trading System!

Some Tips On Forex Trading

By Jason Myers

In general, the answer is affirmative, and you can be encouraged to consider trades in foreign exchange. The primary benefit of trading in foreign currency is that, though the risk factor is high, money exchange trading is 24 hours a day. This is different from the regular Stock Exchanges with opening and closing periods across different time zones.

When you consider Forex Trading in today's market, there are some elements you must take into consideration. Among these include your risk exposure and management, and your actual involvement in trading versus being a new trader; and likewise your sense of willingness to approach Foreign exchange Trading with a learn-first-practice-second mentality.

Your capacity to manage risk, particularly highly volatile foreign exchange, should be assessed when thinking about forex trading in your risk portfolio. The gains may be rewarding in a foreign currency deal, but high profits correspondingly imply high risk of loss. Significant losses, if you are not cautious. Approach the forex trading with a smart game plan.

If you are a veteran market trader, from the shares platform, then you may do well with currency estimating. When you engage in foreign currency prediction, make sure you educate yourself first. Before making a plunge like a tactless gambler, study the playing field first by gathering much info as possible. Make wise decision to minimize unnecessary loss and increase the chances of earning good profits.

Formulate a good exit plan. When you study the market enough, you'll see some patterns of movement triggered by different economic pressures. The currency rate will peak and trough and your goals are geared towards making a deal when there is a trough, and exit at some point near the peak. Never wait for the rate to peak at its maximum, since this is when you could take the greatest hit if your timing is just off-key. Remember for that! - 23226

About the Author:

Jason Myers is a professional writer and he writes mostly about daily forex trading news. He's also interested in forex daytrading.

Using Mutual Funds That Match Your Personal Needs

By Adriana Noton

A mutual fund is a collection of a wide number of stock and bond combinations held by individuals that are entrusted to a mutual fund company. The manager of the mutual fund will develop the mutual fund with the purpose of making a certain investment objective.

Mutual funds are popular because they are low risk and they can be chosen to one's personal needs.

Mutual funds are a diversified investment which makes them less of an investment risk. Mutual funds can follow diverse investment areas such a specific industry area. There are general industry areas as well as new and innovative type of investment funds such as mutual funds that only invest in environmentally conscious industries.

An important feature of a mutual fund is that one gains immediate access to hundreds of individual stocks or bonds, thereby drastically decreasing one's exposure to high risk volatility in the market. As well, to meet one's personal needs, a mutual fund is available in a number of types. These types include: money market mutual funds, stock funds, balanced funds, sector funds, and much more. The various types of funds allow people to build a diverse portfolio based on their personal needs.

Another benefit of mutual funds is that it does not require a significant amount of money to invest in a mutual fund. One can make regular investments in a mutual fund for little as about $50.00 a month. One can arrange to have a direct deposit made into their fund from their bank account once a month. As well, if one needs extra money, they can make a withdrawal from the mutual fund into their bank account. The flexibility and convenience make this form of investment popular with a broad range of consumers. Mutual fund holdings are available for public viewing so one can keep track of their investment.

Normally you will have to pay a tax on the money you make from the mutual fund. Although, if you hold your mutual funds in a registered plan, you will not pay any income tax on the money until you make a withdrawal.

For those who do not have the knowledge or time to research and analyze stocks and bonds in order to build a low risk portfolio, mutual funds are a great choice. As well, one can take their earnings and have them reinvested into other mutual funds without hassle or expense.

For ones personal needs, mutual funds provide a wide variety of investments that will allow you to choose investments that you are comfortable with so that you do have to worry. You have the ability to buy the type of mutual fund that you want and you can include low risk investments with a few high risk ones. You can invest at any phase of life, that is, young, middle age, and old. Because there are so many funds to select, you will find one that meets your particular needs.

A mutual is a safe method of investment for those who want to earn extra money for retirement or any other future expense that requires a significant amount of money. - 23226

About the Author:

When you're deciding to buy a house, some of the factors that you have to take into account are mortgage rates. As mortgage rates are important for home-buyers, GIC rates are important for investors. If you're interested in a customized financial plan, remember to visit us.

Should GM Go Through A Corporate Name Change?

By Jennifer McClelland

There have been quite a few companies that have replaced their names after coming under attack and falling into economic failure. Some of the businesses that have done that consist of ValuJet or currently known as AirTran, Altria or as you may have some time ago known it, Philip Morris, and Xe, which was once known as Blackwater. Even electronics manufacturer LG has altered its name from Lucky Goldstar to only LG and said that it stood for Lifes Good and now its performing just fine with its sales of consumer electronics and appliances.

These companies have done well with the name modification; it is as if they are detaching what they once were and becoming a another company with a shiny, pure representation.

Marketing professionals nationally are in agreement that the rebranding of GM could be a respectable thing. If the goal is to attempt and put this company on a enormous diet and just turn it into a less significant car manufacturing venture, Im not sure thered be that much harm in rebranding, said Jean-Pierre Dube, a University of Chicago marketing professor. The title isnt in good form, he stated, so they have little to lose.

The General Motors brand name has already grown to be a stained brand, with a reputation of building shabby quality cars and now with a gigantic bankruptcy filing under its belt, not to mention what everyone thinks about the company taking all that federal cash to keep from having to file for the gigantic bailoutwhich they filed nevertheless.

Certainly, at present many GM officials are sticking to their guns and not wanting to rebrand the corporation. CEO Fritz Henderson claimed that rebranding wasnt awfully high on his list of things to do in the business. Which is probably a good thing to do bearing in mind all the troubles he inherited, but couldnt rebranding be given to the marketing unit? In spite of everything, GM still has one of those and it actually doesnt have the money to be throwing into high-cost tv spots for now.

Bits and pieces of GM have already begun to be rebranded; GMAC financial services has changed its name to Ally Bank and General Motors Asset Managemnet is now known as Promark Global Advisors.

But, with a company that is as well known as GM could it work?

I dont think something wrong with trying to perhaps promote the company another way than previously, but an entire new brand could be tricky to pull off for the business. I think that the best implementation of rebranding could come from if it were to rebrand a number of its brands such as Chevy or Cadillac. - 23226

About the Author:

Find out more about Quality Cars and get the best Investment Advice.