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Passive Income digitally - Complete Controller

These days, many people have passive income (also referred to as “side-hustles”), which allows them to save, splurge and even plan for retirement! While this may sound like the ideal situation, finding additional revenue ideas may prove to be harder than you think. To better understand the logistics of passive income and to get some new ideas, read on! Check out America's Best Bookkeepers

Passive income involves generating revenue automatically without exerting any additional time or money. Once the source is established, it should continue to provide income without depleting your resources.

Passive income is divided into two types. The first involves money generating money, regardless of redundancy. For example, establishing returns or interest generated by an investment in the stock market or a Collective Investment Fund (FIC). The second does not depend on the capital you own; it is obtained from creating a product or service that lasts over time and becomes an automatic source of income, such as owning a restaurant.

Why Should You Invest in A Collective Investment Fund?

The Internet has proven to be an infinite source of ideas for passive income. The following are some of these ideas explained. Welcome to the digital world. Check out America's Best Bookkeepers

  1. Photographs and graphic pieces: Are you a good photographer? There are image banks that receive photographs and graphic pieces. Customers can buy these images while you receive a percentage of the profit.
  2. An online course: This will require your effort only once. You can structure your class and upload it to a web platform that interests you. From there, those who wish to learn must pay to see it.
  3. Publish an audiobook: If you know a lot about a subject, turn that knowledge into money and record an audiobook. You can upload it to platforms such as iTunes or Audible. If the content is well-researched and clearly stated, customers will buy it.
  4. Publish eBooks: The most popular option is to publish an eBook on Amazon. Almost half of the best-selling books on Amazon are self-published.
  5. Social trading: This refers to an investment system that replicates the movements of the largest experts in the stock market. This increases profits, although it is important to note that this system is prone to fluctuation.
  6. Create audio tracks or jingles: Are you a musician? Spend some of your time and talents, creating jingles and audio tracks and upload them to Sound Cloud, Audio Socked, or Song Freedom. Consumers may download them, generating royalties paid to you.
  7. Invest in Crowdfunding organizations: These are platforms where people with business ideas seek resources to finance their ventures. If you are smart and well-researched with your choices, you can receive profits from these investments. You can also serve as a lender to entrepreneurs. Briq, Financial Borrower, Kickstarted, or Inedogogo are some examples of these platforms. Check out America's Best Bookkeepers

All these examples have something in common: they require a unique effort. Once you have a service or product to offer, it can be monetized without continuing to work on it.

Experts recommend avoiding being persuaded by “easy money.” The best way to reap big benefits from a business that provides passive income is to plan wisely and carefully. Continuing to pursue your current source of income will relieve the pressure of needing immediate results.

All in All

In conclusion, everyone would love to generate more money with minimal effort. It is important to remember that knowledge is worth money; so, what is your specialization? Figure that out and then stick to that area and work your business ideas around it. Also, welcome the digital world; it is the future. Good luck!

Check out America's Best Bookkeepers About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. Check out America's Best Bookkeepers
Invest wisely - Complete Controller

The average money earner does not have a savings account, let alone look into investing. When asked if they invest or have an investment portfolio, most people will tell you that they don’t. When further asked why a high percentage will answer that they don’t believe they can afford it. Investing can be a great way to finance your future and your retirement. But due to lack of funds and fear of investing, many Americans never engage in investments. Here are six investments you can invest in for very little capital. Check out America's Best Bookkeepers

Savings Accounts

Most don’t think of having a savings account as an investment. However, most savings accounts these days have some interest attached. Whether you want to stay within the safety of actual savings, account through your bank with a smaller interest gain, if you want to do a savings account with more risk than higher returns, it’s important to have a savings account. The most important things you need to remember when considering a savings account is access and the amount of interest you can gain. You also want to consider the risks as you would with any investment.

Lending Clubs

Lending clubs are one of the best ways for people to get started in investing. Lending clubs are where your money is pulled together with other lenders. Those who need a loan will come to the lending platform and borrow from these lenders. In exchange for extending these loans, investors, a.k.a. lenders, will often get returns in the double digits. The buy-in to a loan can be as little as $25. Most lending clubs have an overall minimum buy-in. Generally, between $100 to $1,000, give or take. You then take that initial investment and make decisions on where you want to lend money. Check out America's Best Bookkeepers

Crowdfunding Real Estate

For those who do not have a lot of capital and want to invest in real estate, crowdfunding real estate investments are the way to go. You need very little capital, and there is a lot more protection and crowdfunding. Though there can still be losses, they are generally a lot less than if you were taking ownership of a property.

Some crowdfunding real estate by ends is as little as $500. The more you invest, the more opportunities you will have to make money. Most sites that offer crowdfunding real estate investing will have sought out investment projects and opportunities.

Employer-Sponsored Retirement Plan

it is no secret that most larger companies have retirement plans that are also investments. In most cases, you have to do nothing more than sign up through your company in the HR department, and they will deduct the amount you want to invest. Many of these same employers will match your investment up to a certain percent. Even if you can’t afford to invest a large portion of your paycheck, you should at least invest the amount your company will match because that is free money. Most retirement plans or 401(k)s still carry some risk as they are generally grown through mutual funds and investing. Check out America's Best Bookkeepers

Dividend Reinvestment Plans

Dividend reinvestment plans allow for smaller investments in stocks only in companies that pay dividends. Your initial buy-in is generally a small amount many can afford. Once the stock pays a dividend, it is reinvested into buying more of that same company’s stock.

This dividend reinvestment will continue to build until you reach a limit on the stocks you can own in the company. Because of the way dividend reinvestment plans build, this is an excellent opportunity for you to get in with a smaller amount and build to larger investments in major companies. This type of investing is not only very profitable but lower risk.

Online Brokerage Firms

Investing in online brokerage firms can be great because most of them have a buy-in of $1,000 or less. Once you have chosen your investment plan and have paid the minimum buy-in, these firms will act as any other brokerage firm and invest your money for you. You need to be aware of what percentage the company will take of your returns and choose a company that takes the lowest percentage. While this will cost you in shares of your return, this is an inexpensive way to invest through a brokerage firm.

Check out America's Best Bookkeepers About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. Check out America's Best Bookkeepers
Invest as a Couple - Complete Controller

Creating wealth management is something every financially responsible adult should do. This doubles whenever you become a couple. Regardless of your plans for marriage, owning a home, and having kids, planning for your financial future should be a priority for you as a couple. To plan wealth management requires you as a couple to sit down and have a financial discussion.

Some couples don’t combine their finances or manage them together, let alone invest together. Whether you have joint accounts or keep your finances separate, you can still invest as a couple. It is a matter of communication. You need to come together and discuss what your investment goals are, clarify your expectations, and discuss your risk tolerance. Check out America's Best Bookkeepers

Once you have established what you desire and expect, you can find common ground and work your way from there. If you invest as a couple, it is essential that you are on the same page, or the investment process could be overly challenging and even contentious.

After you have firmly established where you want to invest and how much you want to dedicate to investing, you have to choose where to invest as a couple. Here are six ways you can invest as a couple.

401(k) or Workplace Savings Plan

Like you might do as an individual, you can both invest in your company’s 401(k) or other workplace savings plans. If both of you have company 401(k) or other savings plans, both of you should be investing money into them. However, this investment needs to be strategic. If your company (many do) offers to match up to a certain percentage of your income, you should choose the one that carries a higher percentage.

You should be investing as much as you can afford this investment. The most important thing is to leave the money in the 401(k) because withdrawals have penalties, and they also get taxed after they come out since they go into the 401(k) before taxes. Check out America's Best Bookkeepers

Traditional and Roth IRAs

Traditional IRAs or Roth IRAs are individual retirement accounts opened by the investor at the banking institution of their choice. A traditional IRA has tax-deductible contributions and is tax-free until withdrawal. A Roth IRA is tax-free going in and coming out as long as you withdraw after retirement.

IRAs could be invested jointly, or you could have separate IRA accounts. It would probably be more profitable to put it all in a joint IRA so that more could be invested to get you a higher rate of return.

Health Savings Accounts

Though the Health Savings Account can only be used for qualifying medical expenses, the contributions and withdrawals are tax-free; therefore, it can reduce healthcare costs. These accounts can also gain extra revenue if your company does matching contributions.

Taxable Brokerage Accounts

Taxable brokerage accounts are accounts opened at a brokerage firm after the application approval. These accounts allow the firm to trade and buy or sell stocks on your behalf. There are no limits to the number of these taxable accounts you can have. Some investors may choose to have accounts at multiple brokerage firms. Diversifying your brokerage account investments can protect you in case of a downturn in the market in which you are invested. Check out America's Best Bookkeepers

Individual stocks

As a couple, you can buy individuals docs and companies, which means you are buying ownership. This can be done after a company goes public and offer shares in ownership to those who can afford to buy them. These stocks can later be bought and sold on an exchange between sellers and buyers through a stockbroker. Money can be made when the stock appreciates, and you sell it, or it can be made when profits are made on the company, and you receive a portion of those profits for being a shareholder.

These investments have no limit as far as what you can make; however, that means there is no limit regarding the losses either.

Mutual Funds

Mutual funds are an investment in which you pull your money and other investors to buy more shares in a collection of bonds, stocks, and securities. The price of a mutual fund is called the net asset value. It is the total value of the securities in the portfolio then divided by outstanding shares. The price varies based on the value held by the portfolio at the end of each day. One of the differences between mutual funds and individual funds is that be investors do not own the individual stocks or investments they are investing in the fund itself.

Check out America's Best Bookkeepers About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. Check out America's Best Bookkeepers
Tips for Investing - Complete Controller

People who want to become rich faster need to find new ways to earn while holding on to the money they already have. However, that’s not enough. To grow money, a person needs to make smart investments.

Being a smart investor, it is important to invest in things that will offer a reasonable return. A great investment can offer interest and dividends from savings, real estate, etc. To become a successful investor, a person must be fully devoted and focused. Thanks to advance investment options, now a person can start investing with a little as ten dollars. Here are some essential tips for investing everyone should know. Check out America's Best Bookkeepers

Why Should You Invest?

The main reason to invest is related to the growth of money. Investing allows a person to earn potential compound returns. Thanks to the compounding, a person can earn a million-dollar by just investing one. People who make smart investments are often richer as compare to those who don’t.

Investing sounds a lot more intimidating than it is. Even though every kind of worthy investment has some risk, there is always a larger portion to gain. Investing can be scary, especially if the person is new. Below are a few smart ways to make money grow through investing. Check out America's Best Bookkeepers

Risk Vs. Reward

It’s no secret, investing comes with a risk. Everyone knows somebody who lost all of their money investing in the wrong places. Some people lost money due to bad decisions, other losses due to scams. However, if invest wisely, a person can reduce risk. The best part about investing young is that a young person will likely invest long-term, for example, a retirement account. Such investments aren’t only less risky but also give bigger benefits. Investing can be risky and scary at times, but a person who never took a risk never did anything.

Where Should You Invest?

Choosing what to invest in can be tricky, especially if the investor is new. There are many investment options available in the market today. Below are a few worthy investing options that one can consider:

Mutual Funds: In this type of investment, an investor will pool a person’s money with other investors. The fund manager will utilize that amount to buy a security for the whole group. According to experts, new investors should invest in mutual funds rather than individual stocks due to the low-risk factor.

Mutual funds allow a person to invest in a huge portfolio regarding stocks rather than just relying on one stock. They aren’t only safer but also require fewer investments. Buying mutual funds through a fund company such as Fidelity will save a lot of money on trade commission; however, mutual funds can also be purchased through any brokerage account. Check out America's Best Bookkeepers

Retirement Accounts: To save for retirement, IRA gives a certain amount of tax-related advantages. The downside comes depending on how much a person can fund that account yearly and when they can withdraw the money.

Traditional IRA: With such types of accounts, a person’s contributions can qualify for deductions on their tax returns. With, that there is a potential that those earning will also become tax-deferred until a person’s retirement age.

Real Estate: No doubt investing in real estate can change a person’s life in days. Investing in real estate is a long-term process, and a person can also choose to rent their property for monthly rent. The best part about real estate is that with time, the property’s value will only go up with the rent. However, just like any other investment option, real estate also has a few risks that a person should consider before investing.

Conclusion

There is no question that you should be investing your money. Investments are a way to secure your future and ensure that you can retire with ease. It is a matter of learning how and where to invest. If you aren’t comfortable making investment decisions on your own, you can always hire a professional to help you make the best investment choices for you.

Check out America's Best Bookkeepers About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. Check out America's Best Bookkeepers
Positive Energies - Complete Controller

By not emitting toxic waste and being ecologically aware, positive energies have an important role in pursuing sustainable energy development. But to what extent can small businesses benefit from these advancements in positive energies?

There are many things to consider when deciding whether to invest your company’s money in renewable sources of positive energy. However, most companies find that the expense upfront to implement positive energies is well worth the savings for years to come. Here is what you need to know about positive energies. Check out America's Best Bookkeepers

Positive energies use renewable sources

By definition, positive energies are considered those that do not release gases or polluting residues that contribute to the greenhouse effect or global warming during the production or consumption process. Among the main forms of energy classified in this industry are the following:

  • Wind energy: generated by the force of the wind.
  • Solar energy: generated by the incidence of solar rays
  • Tidal energy: generated by the movement of tides in the oceans
  • Hydroelectric energy: generated by the hydraulic potential of a river
  • Biofuels: highlighted by ethanol produced from sugarcane and corn; and biogas, generated by the decomposition of organic matter. Check out America's Best Bookkeepers

The Challenges for Small Businesses

When it comes to small businesses, the main challenge is to reduce carbon emissions and still have competitive prices. That is why it is necessary to evaluate each company’s energy potentials calculating the expected time for the investment return.

The advice is to transition without advancing more than the company accountant feels doable. In this case, the investments and changes should be gradual, modular, and scalable investments. Change one energy source at a time, in small steps. For companies that generate organic effluents, it is worth betting on a small scale on energy recovery as a reactor and small size boilers.

The electricity usage within an office often consumes many of the company’s budget, and renewable energy can help reduce these expenses. How is it possible? According to recent research, companies buy renewable energy of around 13.4 gigawatts from long-term contracts’ earned income. This purchasing amount becomes double as they bought that energy a year before.

The majority of businesses take care of the private resources on their property that generates renewable energy. Now, the question is, what is the reason that businesses prefer renewable energy? With it, they can gain numerous environmental benefits and save money. Those benefits can be a reduction in electricity bills, secure fluctuations in costs, advanced initiatives that make energy-efficient, energy selling to the grid as an ability, timeless reliability, green energy incentives, authoritative efficiency, and improved investors’ status for clients in terms of reputation and confidence. It also helps you in taking minimum risks that will have long-term benefits. Check out America's Best Bookkeepers

Energy bills being a high expense when running a business can significantly strain the company budget.  Only the integration of renewable energy in the form of the wind turbine, solar panels, power operation’s usage, and other forms of renewable energy can reduce the cost of energy bills. The cost of energy fluctuates because energy transmits variations influenced by current energy prices. You don’t need to worry about electricity fluctuations if you have renewable energy resources.

Some companies wish to go green and use it as renewable energy with initiatives. They use it as a reduction in energy use. You can save more money on energy bills by enhancing energy efficiency and pairing renewables.

Finally, it is worth remembering that, in addition to the long-term cost-benefit, it is possible to cite, as advantages for the small business owner, the possible fiscal incentives and economic benefits that many governments offer to those who adopt alternative energy production. Depending on the country’s legislation, it is also possible to sell surplus energy to the electricity grid.

Check out America's Best Bookkeepers About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. Check out America's Best Bookkeepers
Save and Invest Money - Complete Controller

Saving and investing money intelligently is based on learning good habits and changing the bad ones.  The goal of savings and investments is to achieve financial freedom and have the lifestyle you desire. While everyone’s goals will be different based on their lifestyle and income, these tips on saving and investing intelligently will work for everyone. Check out America's Best Bookkeepers

Understand Your Investments

Some people will blindly invest in interests because others are doing the same. And while it is recommended that you hire a professional financial advisor to help you plan investments, you still need to understand your investments and how they work. If you don’t have an understanding of them, you could be hit with penalties, fees, and unforeseen taxes. You also need to understand the risks before investing and continue to monitor them.

Manage Risk

Risk management is essential to saving and investing; assessing the risks in potential investments before making them could result in thousands of dollars in savings. Because high-risk is a high reward, many investors take unnecessary risks that have devastating results. It is wise to invest in lower-risk investments and build them slowly. Also, spreading your money to multiple low-risk investments increases security and your rate of return. Check out America's Best Bookkeepers

Minimize Taxes

Saving on taxes may seem like a no-brainer, but millions of Americans per year leave money on the table by not taking advantage of deductions and other tax-saving measures. The bottom line is, if you save money on your taxes, you will have more of it to invest and grow. The best way to fully take advantage of tax-saving strategies is to hire a professional tax preparer. These professionals went to school to learn how to save you tons of money on your taxes.

Control Your Expenses

Controlling what you spend is another obvious money saver, but many people have trouble with this measure. Some of the world’s wealthiest people are thrifty with their money even though they have millions in the bank. Curbing spending in the short-term can have a large effect on your long term net worth. The more money you save by controlling expenses, the more you have to invest and grow. Even small changes or savings like avoiding unnecessary fees or getting an account with a cashback benefit can add up to smart savings and money for investments. You can also look at daily, weekly, and monthly expenses and prioritize to find where you can cut without the changes feeling too strict. Check out America's Best Bookkeepers

Use Automation

Most people who have a hard time saving or investing their money find difficulty in letting it go once they have it in their hand or bank account. One of the most effective ways to help let go of that money and put it to better use in savings or investments is to use automation. Automation means you will set up your income to automatically put money in savings, major investments, or micro-investments. Micro-investments are those that take spare change to make investments. The main advantage of automatic deposits or investments is the money isn’t missed, and you will start shifting your thinking to set your budget with the income you receive after the automatic withdrawal is processed.

Conclusion

You don’t have to be a stockbroker or investment banker to save and invest money intelligently; you have to be willing to do what it takes. Small investors still have the title of “the investor”; this means you are on your way to more savings and investments down the road that will lead to total financial freedom. Understanding your investments, managing risks, saving on your taxes, and controlling your spending are four reliable ways to be a smart investor and save money for your future.

Check out America's Best Bookkeepers About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. Check out America's Best Bookkeepers

A decorated and personalized cake has the power to make events and commemorations even more memorable. If you like the culinary, you must have already asked yourself if you can invest both time and money in this area.

Before opening a pastry shop

You must understand that a pastry shop is a business like any other and will demand the same management capacity that you need for a mechanical workshop or a disinfection company. Once this point is clarified, the first advice is to study the market in which you want to act. You can use specialized professionals in the matter to prepare a document known as a market study. Check out America's Best Bookkeepers

This study analyzes the three pillars for the construction of your business: the profile and behavior of the target audience, the availability of suppliers, and the strength of the competition.

Based on this information, the next step is to create a business plan. In the document, you must specify the projection of growth, initial investment, forecast of income, working capital needed, etc.

Without planning, your company will have difficulty surviving the first moments and remaining sustainable in the medium term. The more you know about bakeries, the lower the risk that your business will fail in the first months. Here are some tips that can help you to succeed.

5 Tips to Open a Pastry Shop

1. Dedicate yourself to the project. If you want to create a lucrative business, you must personally dedicate yourself to the project and specialize in the subject. The staff you hire will not have the same appreciation for the client and for the quality of the processes. Knowing the details of the bakery will show you the performance problems that you must overcome to improve as needed.

2. Attention to quality. Do your best to guarantee the quality of the cakes at your bakery. This may imply higher investments in machinery, for example, but, if the quality is good, you will recover the value invested in the medium and long term.

The importance of quality will be projected in the loyalty of customers. Do you think that, when the novelty wears off in the neighborhood, your patisserie will sustain itself without quality? No one recommends a low-quality product.

3. Invest in a good presentation. A bakery refers to special events and commemorations, such as weddings, graduations, and birthdays. The presentation of the products and your shop need to be impeccable and attractive to consumers. You need to invest as much time, money, and care in the decor and cleanliness of your shop as you do in your products.

4. Engage in personalization. The more the customer can customize their cake, the more satisfied they will feel. Offering the possibility of customization can differentiate your bakery from other bakeries in your area. Other personal touches such as one-on-one consultations and follow-up can also add value to your business.

5. Find partners. Get in touch with wedding and event planners, bridal shops, and establishments specializing in gifts, to organize events together. Partnerships are a great way to make your products known and attract potential consumers.

Opening your own bakery can be rewarding. These tips will make the rewards even sweeter by taking away the stress and making your business a success.

Check out America's Best Bookkeepers About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. Check out America's Best Bookkeepers

To invest in the stock market, knowledge is needed. Without pretending to substitute a good formation on the subject, today we will see a basic guide of points for it. 

 

  1. First of all, you should be clear about what your investment options are. That is, what alternatives do you have to grow your savings: real estate purchases, gold, savings accounts, other investment options of bonds or letters of the state, etc. Not all options are the same.
  2. The second point is to know what the bag is. The Stock Exchange is a market in which savers and companies that need funds to make their operational investments operate. In general, we distinguish between the primary market (in which shares, bonds, etc. are bought and sold directly). Then these bonds and shares can be bought and sold, not by the companies but by savers and investors, forming the secondary market.
  3. It is also very necessary to specify the amount that you will allocate to investment in the stock market. To control unnecessary risks, what you invest must be a quantity that you will not need in the short term. In general, investments in the stock market are safer if you lengthen them over time. In the long term there are usually returns and in the short term there is much more volatility, which may mean losing the amount invested.
  4. Once you have decided that your investment will be in the stock market, you must know what your strategy is. This is perhaps the most complex point of all, since to choose the strategy you must know many concepts.

 

What is your investment objective?

  • In which product do you want to invest? Are they shares of a Spanish multinational or is it an investment fund?
  • Are you looking for a fixed rate or a variable rate yield?
  • What is the level of risk you want to assume? We will see this point with more attention in the next section.
  • Are you going to diversify the investment, that is, invest in several places?

 

  1. It is important to have control and know the risk that you are willing to assume. As we saw in a previous post, not all times are ideal to invest in the stock market. If the interest rate paid by financial institutions for your savings is low, then it may be a good time to invest in the stock market because there the yield will be higher.

Although this argument seems easy, it really is not like that. You have to take into account the risk you want to take with the investment. On the stock exchange performance is variable, which means that you do not know what performance you are going to obtain. And we do not talk about whether we will get 3% or 12%, but that the performance can be negative, that is, that your investment can lose value.

In addition, if an investment “promises” very high returns, its risk will be high and that can imply high losses. How to balance profitability, risk and opportunity cost of the investment (which would give us that money invested in another option) is something difficult that should not be improvised.

 

  1. In addition, you must understand that, to operate in the Stock Exchange, there are entry, purchase, sale, custody commissions, etc. Not to mention that, if you do not have experience, we recommend that you either train thoroughly, or do it through experts .

 

  1. The stock market is a market. There are many competitors, agents and brokers who are very well trained. You will be able to compete with them if you form thoroughly and are up to date in stock terms.

 

  1. Do not forget how the returns on investments in the Stock Exchange will be taxed. An investment can be more profitable than another, but at the same time, have a worse tax and that the bonus obtained was cancelled by the tax effect.

 

  1. Remember that it is not enough to choose the stock investment. You must follow the investment made, become informed of the results obtained by the company or the evolution of the investment fund. And you must do it systematically over time. With this information over time, you must be able to determine when to maintain the investment, when to sell it or when to expand it.

 

  1. Lastly, a very concentrated last recommendation: prepare yourself in this regard, use savings that you do not need in the short term, be clear about the term of investment, what risk you want to assimilate and always diversify your investment portfolio.

 

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We all are aware that stocks rise and fall all the time. However, sometimes it seems as though the stocks you own continue to drop and drop and your fear begins to rise and rise. 

In this article we will talk about things that surely you have already read, but they are fundamental things, and that you should remember in times of falls like the current one.

 

 

1- No One Knows What the Stocks will do

 

When the stock market is up, everyone want to get in on something. The stocks will rise and rise and seem like they will never stop. Suddenly they start to drop and then the stock holders being to wonder if they should dump their shares before their shares are no longer worth a profit. When the stock price is down, people tend to not buy and wait for more. 

My opinion is that nobody knows what the stock market will do in the short term, let alone the tabloid economic news. Do not get carried away by the noise and follow your strategy, without letting yourself be influenced by what people say.

Therefore, I make monthly purchases, regardless of how the market is. If it is expensive, I will buy fewer shares, and if it is cheap I will buy more. In the end, I will have a better average price than many who try to guess the movements of the stock market.

 

 

2- The Short Term does not Matter

 

Really, the short term doesn’t matter. If we invest in the stock market in the long term it is because it is the safest strategy, and you always have to keep in mind that in the short term you do not know what will happen.

The short-term stock market is unpredictable, so your movements should not affect you in the least. Personally I don’t look at how much my actions and my funds are, since I don’t care at all.

In the long term, of course, I will be interested in the fact that they have risen as much as possible, but at the moment the descents do not affect me at all. In fact, if the bag goes down I’m glad, since I can buy much cheaper what was previously more expensive.

 

 

3- Do Not Let Feelings Influence your Decisions

 

Fear and greed are the worst enemies of any investor. Now we are in a time of fear, as it seems that the stock will go down and down. But, if we look back, we see how in the long term the stock market always rises, and although there are moments of panic we have always recovered.

It is essential that you do not get carried away by the feelings when it comes to investing, that you have a mechanical strategy. Not to complicate, an Index account and automatic monthly contributions without looking at how the market is may be the best alternative.

 

 

In conclusion, that the bag goes down should not matter to you at all. If you are clear about what you do, continue with your strategy as if nothing. If a decrease of 15% in the stocks has made you go crazy and have a bad time, maybe you are not prepared to invest the current percentage in equities, and you should spend a part in fixed income to eliminate some volatility.

The best protection against these losses is preparation and training. I have it clear, I have continued shopping as if nothing, I have even slightly increased the amount of my purchase to take advantage of the moment.

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About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file, critical financial documents and back office tools in an efficient and secure environment. Complete Controller’s team of US based accounting professionals are certified QuickBooks™️ ProAdvisor’s providing bookkeeping, record storage, performance reporting and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay services. With flat rate service plans, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.