Your stock broker is an important person helping you achieve your investment objective. He should be able to give you proper advice, comply with regulations governing the intermediary and provide you good service. There have been several cases of investors losing their entire savings because of entrusting their money and securities to dubious characters.

The first step is to understand the difference between a broker and a subbroker. Both entities are registered with SEBI and stock exchanges but their responsibilities are different. Brokers are liable to fulfill contracts with the investor. The sub-broker is the broker s agent and a local facilitator only. If you do not receive your securities or payments, then it is the broker you should hold responsible.

There is a six-month time limit for making claims; if this expires, you have to approach the general courts, which is very time-consuming. Stock exchanges award claims within four months. Thus, contracts may be issued only by brokers and payment of securities and money should be in his name and account only. A broker cannot be held responsible for payments made in the name of sub-brokers and securities delivered in an account other than his own.

The next important criterion is the quality and impartiality of advice given by the broker and his method of delivering it. Investors often want investment tips. Those that have a trading mentality want several technical calls during the day. Check the infrastructure used by the broker for giving advice. Some brokers would employ a full-fledged research analyst to analyze companies and give advice while others tend to merely pass on what is called market information. Advice, backed by a written communication, explaining the logic behind the recommendation, should be sought. Nearly 95 per cent of advice given pertains to buying; selling recommendations are rare. Therefore, the decision to sell should always be yours. The broker does not always know whether you have acted on his advice; hence, he does not keep track of your portfolio. If the broker is a portfolio manager also, then his duties are different. It is necessary to understand the difference between a broker giving advice as a value-added service and a portfolio manager.

If it s a value-added service from a stock broker with all disclaimers it will consist of a list of investment opportunities. It is for you to understand your own profile and find the ones that suit your investment objective. Understand that the risk is yours, and also know that having taken advice based on research, it is solely your decision to exit with profit or loss. You have also to decide the allocation of your resources amongst the various asset classes, within the amount allotted for equity, or whether to further bifurcate into short-term and long term; you have also to take into account how much you want to apportion for investment and how much retain as margin for speculation.

The portfolio manager, on the other hand, is a separate registered entity with a more comprehensive responsibility, and competence for which you incur an additional cost in terms of his fees over and above the regular transaction cost. He undertakes asset allocation, evaluates various opportunities as per your risk profile, deploys your funds and keeps shuffling the portfolio to generate target returns. His fees are largely related to performance. SEBI has prescribed Rs 5 lacs as the minimum amount to be managed by a portfolio manager and this has to be invested in cash market instruments. These funds cannot be used for managing a derivatives portfolio. Derivatives will be used for hedging only.

Besides good advice, the primary role of a broker is to provide a reliable trade execution platform. Connectivity to stock exchanges, depositories, links between the broker s head office and your location, links to and from the bandwidth service provider, network hardware, computers, software, etc, are all interlinked for the speedy and smooth execution of service. The complexity and number of components makes this a high-risk element in the entire trading process. It is therefore necessary to understand the technological risk associated with trading and the broker s preparedness in this. A poor network response or stoppage can lead to heavy losses.

Settlement and reporting issues are other criteria. A broker having payment gateways with banks helps you get your funds quickly. Most brokers today provide 24×7 web access to their back office. This enables you to have access to information relating to trades, confirmations, depository holdings, gains and losses on investments made by you, financial statements etc. Automated systems for pay-ins and pay-outs of shares and money ensures timely settlement on a regular basis. If you have to keep asking for your rights, namely, securities on payouts, dividends and so on, then it can be frustrating since settlements happen every day and you could miss out on certain transactions.

Some investors select their brokers based on the brokerage rate they offer. Several low-rate schemes are circulating in the market. Volume conditions attached to these offers must be clearly understood before you opt for them. Transaction cost and leveraging facility are relevant factors for day traders and speculators who shuffle their portfolios frequently. They need very little service from the broker since they usually end up writing cheques for their losses. For the average investor, brokerage cost is a very small percentage of his total investment.

Money is one of the biggest motivations for individuals running to the day trading world. Naturally there are many things that need to be done, obstacles to be averted. As you’ve probably guessed, there have been many people who succeed, and there are a number of things that they did to achieve success. Based on that, there are a few tips that you can use to make yourself successful.

First off, you are going to need to ensure that you employ the services of a decent robot trading program. You might be tempted to just jump in head first, but you will no doubt lose money. Having a robot help you along the way, and showing you the best way to make a trade is how you will turn a profit when you want to day trade for a living.

Look over every single change that you have made. You need to look at every trade, whether it was successful or not. This will help you determine where you have made your successes and your failures so that you know how to do it better next time. As you look at your trades, see what kinds of trends are developing. Find the ones that have turned up favorable results and repeat them as much as possible. It’s going to be a lot of hard work, but if you turn a profit in the end, wasn’t it worth it?

From this, you may be able to develop a specific system which you can employ for day trading for a living. Devising a system is certainly a better option than wandering aimlessly among your many trades. A little cohesion will be needed to make your trading ventures work. Hence, devising and sticking with a system is recommended. It increases the chances of future success because the process becomes a manageable one.

You aren’t obligated to make any trades, keep this in mind. When you trade, you need to be trading because it’s something that will work out well for you. You don’t have to trade every single day either! If you do this, then you will find that you aren’t making quite as much as you planned, if you make anything at all!

If you’re losing money, then find out where the money is going, but don’t take a gamble. Just figure out a way to make more money later on. By trading smartly, you’ll lengthen your career and be happier overall. Make sure that you don’t spend too much time trying to change things that you simply cannot. Remember that the market will change constantly, and it’s not something that you can fix. It won’t always go your way!

It’s not going to be easy, and it will require a lot of learning. By absorbing as much knowledge as possible, you’ll be a step ahead and you’ll be able to do things the way you’re supposed to. Learning is not optional when you are day trading for a living!

There are a lot of choices of destination when you are going on vacation. The main questions are how big is your budget, what sorts of things do you and your family love doing, and are you traveling domestically or internationally.

Ask any traveler and they will have numerous suggestions, but here are top-rated places to go that should suit every taste and budget. The overseas suggestions will be worth a visit no matter what the exchange rate.

1. Singapore

This is a fantastic island-country and city with the best food in the world at the most affordable prices. The accommodation ranges from tourist to five star, all at affordable prices. Book online for a package deal.
There’s so much to do that you won’t be spending time in your room. The public transportation is superb, so you can get anywhere you need to go. Buy a travel pass when you arrive at Changi airport and head out for adventure.

The tourist buses called “ducks” will take you around every attraction in the city center, plus onto the river. Nearly everyone speaks English and the British influence is still strong. Try the chocolate buffet at the Fullerton Hotel on Saturdays and the original Singapore sling at the world-famous Raffles bar. Even the height of luxury is affordable in this paradise.

2. New Zealand

If you get a good deal from Air New Zealand during the “off season”, which are the spring and fall in the Northern Hemisphere, you can head down under for a song. They also offer multi-airfare passes so you can get up to six internal flights for only a bit more than the cost of the international ticket. You will usually fly into Auckland on the North Island and branch out from there.

For those who love the tropics, head north to the beautiful Bay of Islands for a beach holiday. If you want a spa holiday, head to the middle of the island, Rotorua.

Are you a fan of Lord of the Rings and The Hobbit? Head to Wellington on the North Island for tours of many of the locations used. If you love skiing, head for Queenstown on the South Island to ski the Remarkables, filmed so lovingly in the movies just mentioned.

Best of all are the backpackers hostels – you can stay in a Microtel for around 6 USD per night. The food is fantastic, as is the local wine.

3. Ireland

Ireland is full of fun, food and fabulous attractions. A flight to Shannon Airport is only about five hours from the east coast of the US.

Ireland is full of castles, unspoilt nature, and seafood. Public transportation is easy and cheap, everyone speaks English, and they are all very friendly to North Americans. Great bed and breakfasts abound. Expect to pay around $13 for a meal and $35 for accommodation each night outside Dublin.

Dublin caters to tourists, so it does not have the real Irish feel of Cork or Galway, but it does have a fantastic amount of attractions, including Trinity College and the two cathedrals. The youth hostels near Christ Church Cathedral are clean and modern. Expect to pay $20 to $100 per night, depending on season and number of people in the room.

4. Portland, Oregon

This is a family-friendly city with lots to do and superb public transport. It is also the gateway to all sorts of scenic locations, including the glacier Mt. Hood, where you can ski all year round. The variety of restaurants is as good as New York City, but for a fraction of the price. Don’t miss Powell’s – the largest bookstore in the world.

5. Nashville

Affordable, family friendly, with lots to see and do. It beats Disneyland/world by a mile in terms of value. There are seven theme parks within driving distance and attractions of every kind to enjoy, from music to museums – all at affordable prices.

Tracking your expenses on vacation is essential if you don’t want to overspend and end up with a huge credit card bill to pay off once you get home. There are a number of ways to keep track. The easiest is a notebook and pencil. The more complicated will be a spreadsheet, online calculator, or app on your smartphone.

Start by estimating an overall budget. Then deduct the upfront costs you have already paid to see how much you have left. Many people prefer to set a per-day budget once they get to their destination, but this is not always practical because there can be hidden costs, forgotten costs, and cost of living issues.

Upfront Costs

You will have already purchased the tickets such as the airfare, or committed to train, bus or driving costs. You’ve also usually had to pay for the accommodation up front, and a car rental if you opt for one.

Package Deals

In many cases, you can get competitively priced package deals through websites like Expedia and Travelocity, which allow you to order all these items for one low price. In some cases, they might also offer various excursions as add-ons to the package.

It is important to do your research prior to going so you know what things cost. If you’re heading to Disney World in Orlando, for example, it is important to know the regular price of the tickets versus the discount being offered at the travel site. The list price, for example, might be $100 per day per person, but you can get the tickets through the package deal for $40 per person – a significant savings.

Other Costs Before You Go

Other costs might include visa fees, vaccinations, new clothes better suited to the climate, sunscreen, insect repellent and so on. All of these will add up.

Choosing the Right Accommodation

The websites will offer a range of accommodation, but it is important to pick something that will suit your family and lifestyle as well as your budget. For example, some inexpensive hotels include breakfast, meaning you only have to worry about two meals a day. Some suites will have a refrigerator, so you can buy milk and cereal for the kids and microwavable meals and save money that way.

Eating out, drinks and snacks can take a big bite out of your budget if you’re not careful.

The Location of the Accommodation

You might reject getting a rental car because you think you are saving money, or are nervous about driving overseas. But, factor in the cost involved in staying at the accommodation of your choice. It may seem cheap, but if you have to take taxis everywhere in order to see the sights, it can all add up.

Admissions

Admissions to the attractions can really bite into the budget. Your per-day calculations should include these as well as your food and drink.

Some apps, like Trail Wallet, will help ensure you are not over budget, but they don’t allow you to put your expenses in categories to see where all the money is going. In this case, an online calculator or printed out spreadsheet can help. Or again, just write everything down in your handy notebook. Tuck your receipts into your notebook and do your tallies at the end of the day.

Cost of Living Overseas

In many cases, you will find the cost of living to be very different from what you are used to. In the US, for example, you can get a breakfast at McDonald’s for around $3 to $4, but go to New Zealand, for instance, and it will cost $7. Cigarettes and gas are hugely expensive in the UK compared to the US.

Know before you go and keep track of everything you spend, and you should be able to have a good time without going over budget.

Millions of Americans prepare for retirement with 401k plans. With these plans, employees contribute money through payroll deductions. In many cases, employers match. That money is invested and it continues to grow overtime. When used correctly, the individual is able to retire comfortably with the money invested, made, and saved. The keyword is saved. Those in financial distress often turn to their 401k plans and opt for an early withdrawal. It is a good idea? No.

When withdrawing money from a 401k plan, you are charged a penalty. This is 10% of the amount withdrawn. Although 10% is a relatively low figure, it is still money you lose and for no good reason. Moreover, you pullout from your investments. Overtime, they likely would have grown.

Since there are financial consequences to tapping into your 401k early, what are your alternatives?

Plan wisely. A 401k is a retirement savings plan. As you near retirement, you should aggressively put money in your account. Still, it is important to save money the traditional way. If you do not already have a savings account, get one. You have a set amount you contribute to your 401k plan each paycheck. Set the same plan for your savings account. In fact, most companies with direct deposit allow you to scatter your funds. Deposit some in your checking and some in your savings account.

Save money. Many individuals only believe those in debt need to save money. This is not true. Saving money benefits everyone. There are many ways to save money. Reduce your phone, internet, or telephone packages. Look for sales and use coupons at the grocery store. Another effective, yet simple approach is to save your change in a jar. Take all of the money you saved by creating a budget or limiting your expenses. Deposit into your savings account. This money can come in handy during an emergency. If you never use it, it is still there when you retire.

Opt for bank loans. For those with poor credit, this may not be an option. If you have good credit, apply for a loan. Personal loans are harder to get, as they are unsecured. With that said, financial lenders give them to those who need help paying medical bills, paying for costly car repairs and so forth. As for buying a new home, going to college, or buying a new car, there are specific loans for these. They are mortgages, student loans, and automobile loans. Apply.

If you are denied a bank loan, your next instinct is to move on to the next option. We will get to that in a minute. For now, why were you denied? It likely had to do with your credit. If you are indebt, work to repair this as soon as possible. Take a percentage of the money saved and apply towards overdue bills. You should never enter retirement indebt. Even if you are not planning to retire for 10 years, work on improving your credit now.

If you cannot get a bank loan and do not have a savings account with emergency cash on hand, you may consider tapping into your 401k. Before doing so, speak to your employer. Many allow their employees to take 401k loans. This is different from an early withdrawal. You are borrowing the money. As opposed to a 10% early withdrawal fee, you may only be charged a small $50 administrative fee. If you opt for a 401k loan, you must repay. It may sound nice to just take your money and run, but consider the consequences. You lose money. Aside from the 10% withdrawal fee, the money does not continue to grow with your investments.

Finally, be sure to speak with friends and family. If you only need a small amount of cash, such as one or two thousand dollars, someone you know may be able to help. Often times, you are able to payback these loans without interest. They are “off-the-record,” loans. Just know that you are not the only person facing financial difficulties in this struggling economy. Family members and friends you thought were once wealthy, may have tightened their budget too. Do not be offended if your request to borrow money is turned down.

It’s never too early to start saving for college and your child’s ongoing educational expenses. These days, there is such a variety, it’s probably not a case of either/or so much as which investment options to include to create a tax-saving portfolio that will meet your family’s needs.

Getting Started

The first step is to guesstimate how much it will cost to send your child to college for four to six years – the average time it takes to earn a degree. Calculate in-state and out of state tuition. Look at housing, food and transportation back and forth at least a couple of times per year, with books and incidentals added on. Get your target number. Scary, huh?

Now look at your child’s age. How much time do you have to save that amount? And will your child need any other educational expenses before they reach school, such as private education or extra tutoring?

Choosing the right savings methods

529 college savings and prepaid plans

529 plans are the most popular education-specific savings plan. They are similar to a 401k in terms of choosing investments. In some cases, they are a pre-paid tuition plan.

A 529 savings account allows you to invest in mutual funds with the same risk and return on investments of other stocks and shares. Pre-paid tuition plans allow you to effectively “lock in” tuition costs and avoid the impact of ever-increasing fees. Each state administers their own 529 account, so options vary. Many states offer tax breaks or credits to residents. Some even offer matching funds if you contribute. Your after-tax contributions will grow tax free.

Coverdell Education Savings Accounts (ESAs)

Education Savings Accounts (ESAs) are similar to a 529, and offer tax-free growth. But contributions are limited to $2,000 per year, and only until the beneficiary turns 18. There are also income limitations. The main advantage is that they offer more flexibility than 529 plans, with educational expenses from Kindergarten to grad school eligible.

Savings Accounts

Savings accounts can be opened and the money used for any purpose, but the return on investment will be small.

Roth IRAs

A Roth IRA uses after-tax contributions and will grow tax free. Withdrawals from a Roth are allowed penalty free for qualified education expenses, though they will generally be included as income in determining financial aid eligibility if they are in the name of the parent rather than another relative.

If your child gets a lot of scholarships, the money can keep growing for your retirement.

CDs and Savings Bonds

These both carry low interest rates these days that don’t keep up with inflation. But savings bond income is tax free if used for educational purposes.

Trusts

Trust accounts are assets transferred to a child’s account and invested on their behalf until they reach the “age of trust termination” as defined by the state in which they live – usually between 18 and 21. They can then do what they want with the money, such as pay for college or backpack around the world. Once the money is theirs, it can affect their financial aid eligibility. There are some tax advantages for those making contributions to the trust.