If you’re approaching retirement, you are probably focused on a single issue: Do I have enough money?

This is indeed the crucial question. But as you try to figure out whether you can comfortably retire, I would also encourage you to ponder three less obvious questions.

1. Where are we in the market cycle?

Suppose you retired in October 2007 with a $500,000 nest egg. Those savings were split 60% in the S&P 500 stock index and 40% in the Barclays U.S. Aggregate Bond Index. You used a conservative 4% withdrawal rate, which gave you some $20,000 in portfolio income during your first year of retirement.         

Result? By the end of February 2009, your nest egg would have shrunk to less than $320,000.

What you’re seeing here is the impact of the 2007-09 bear market — and a classic example of sequence-of-return risk.

The big worry: You retire, get hit with a market crash, and the combination of tumbling markets and your rising need for spending money quickly eviscerates your portfolio. Even if markets fully recover, your portfolio may not, because it’s been so depleted.

Fortunately, in this instance, things worked out OK for retirees who stayed the course. According to Baltimore fund manager T. Rowe Price Group, as of March 31, 2014, your portfolio would have been worth almost $515,000. “Looking at this can relieve people of some of their anxiety,” says Christine Fahlund, a senior financial planner with T. Rowe Price. “Lo and behold, after a fairly short period, you’re back to where you started. That’s pretty darn good.”

What if you’re retiring today? It’s unlikely we’re facing another economic meltdown, but there’s plenty of reason for caution. The S&P 500 has almost tripled since its March 2009 low. It yields just 2% and trades at a relatively rich 18 times trailing 12-month reported earnings.

From current levels, U.S. stock returns will likely be modest over the next decade, perhaps averaging just 6% a year, and there’s a chance we could see a nasty selloff. Meanwhile, bonds offer modest yields and they, too, could fall sharply.

With that in mind, you might head into retirement with a cash reserve equal to perhaps five years of portfolio withdrawals.

How much should you allow yourself to withdraw each year, including dividends and interest? Don’t be lulled into complacency by the strong returns of recent years. I would stick with the 4% withdrawal rate that many financial experts now advocate — and be mentally prepared for rough markets.

2. What embedded tax bills do you face?

Let’s continue with our example of a $500,000 portfolio and a 4% withdrawal rate. You pull out $20,000 in your first year of retirement. But how much spending money will you have?  

That’ll depend, in part, on where the money comes from. If you tap a bank account or a Roth individual retirement account, you should have $20,000 in spending money, with no taxes owed. Meanwhile, if you sell stocks held in your regular taxable account, you may have to pay capital-gains taxes.

What if you withdraw from a traditional IRA? The entire sum will likely be taxable as ordinary income.

Thanks to your standard or itemized deduction and your personal exemption, the tax bill on $20,000 may still be quite small — unless you have other taxable income, in which case you could lose a fair amount to taxes. That tax bill will mean less money to spend, so you should factor that into your retirement budget.

3. What are your monthly fixed living costs?

At issue here are monthly expenses that are pretty much unavoidable — things like your mortgage or rent, groceries, utilities, phone, cable TV, insurance premiums and property taxes.

While it’s easy to cut out discretionary spending, such as vacations and restaurant meals, it’s harder to trim these monthly fixed costs.

As a precaution, you may want to ensure you have enough regular income to cover these fixed costs, because you’ll have to pay them, no matter how rough markets get.Where will the money come from? Calculate how much income you will collect each year from dividends, interest, Social Security and any pensions or income annuities. You can supplement that with occasional withdrawals from your portfolio’s cash reserve.

If you won’t have enough regular income, you might delay Social Security to get a larger monthly check or purchase an immediate fixed annuity.           

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Are you considering about going into stock trading? Do you need to brush up on your skills? Do you need to know where to start and being? Look no further than your own computer. The internet is filled with information, yet only a few websites reigns supreme in educating you. So here are the top 6 best online Stock Market Education Websites (And they are free).

StockTradingToGo.com - Stock Trading to go offers educational articles to read on the best investment books to read, how to do stock trading online, Day Trading tips, and the most important 10 question you need to ask your investment broker before you being, plus so much more. On this site as well you get a handy stock market dictionary guide filled with the entire stock market lingo you may encounter so you are never left in the dark. You also get information on.

• Best online Stock brokers
• Personal Finance
• General investing
• ETF’s (Exchange Traded Funds)
• Stock Orders
• How to Read Stock Charts

WallStreetSurvivior – This is free online stock trading game you can play. What better way to learn except by doing. Here you can take all your stock market know how you have learned and test it in this online virtual world. The stock market world is not for the weak so what better way to test your chops in this fun game. The game also features some contests too for a chance to win real money.

FreeInvestinglessons.com - You get a 8 part in depth video series all about stock trading.
Part 1: You learn about the difference between stocks and shares, and bonds.
Part 2: Will deal in investing.
Part 3: Deals in some knowledge of how stocks are bought and sold and tax information.
Part 4: Talks about where you should invest and how much effort is required on your part once you do.
Part 5: Explains what to do when you purchase a stock and what happens after.
Part 6: Delves in how to read the stock charts so you can follow your stocks.
Part 7: Gives you building your stock portfolio tips, and when to diversify.

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Stock Market For Beginners Guide - This is a great site for beginners to learn the ins and outs of stock trading. The choices of topics are in-depth not just an overview. You can read about what stock trading is exactly to learning about what a penny stock is and how to invest in them. There is no order you have to read each section either so this site is good fit for your beginners as well as your mid -level Traders.

Technitrader.com – Quoted to being the best stock trading learning website ever, and it well could be. They offer free personalize lessons which you can customize to fit your needs, whether you need a little or a lot of training. Each course is constructed to your needs and you can take it on your own time, at your own level. This is not a site to just read and learn it’s an actual course, with actual interaction with the teachers.

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A new study provides perhaps the strongest evidence to date that certain human-capital metrics can predict a company’s performance in the stock markets.

The research was nothing if not robust. Through extensive use of regression analysis, it tested the relationships between a set of human-capital metrics and stock-price movements at 22,100 companies over a 16-year period, 1996 through 2011.

A key finding of the study – performed by Jeff Higgins, CEO of the Human Capital Management Institute, and Pepperdine University professor Donald Atwater – may surprise investors, stock analysts and finance executives themselves.

Generally speaking, a company’s net income and to a lesser extent revenue are considered the gold standards for shaping expectations of its stock’s future performance. But the research found net income per full-time-equivalent employee (FTE) and net revenue per FTE – both commonly used financial metrics – to be the poorest predictors among the studied human-capital metrics. In fact, both are statistically insignificant, as is pure net profit without association with any human-capital metrics.

Instead, two metrics used by some human-capital analysts, but few other people, are powerful predictors of stock price, the research found. One, called “Return on Human Capital Investment” (Return on HCI), compares “Total Cost of Workforce” (TCOW) to net operating profit. (TCOW includes: all direct and indirect cash or equity compensation for employees and contingent workers; paid employee benefits, perks and rewards; retirement-related costs for both current and former employees; and costs for worker training, recruiting, employee relations, and severance and legal settlements.)

The other highly predictive metric is “Human Capital ROI Ratio.” It measures the ratio of return on revenue (net of non-workforce expenses) to TCOW. For example, say a company has $1 billion in revenue and $800 million in total expenses, $500 million of which are people costs. To arrive at HC ROI ratio, subtract the $300 million nonpeople costs from revenue, leaving $700 million, and divide that by the $500 million in people costs.

In essence, the two metrics are different ways of measuring the percentage return on $1 invested in the work force, assuming all other factors remain constant. In the above example for Human Capital ROI Ratio, the result is expressed as 1.40, or a 40-cents positive return on the invested dollar.

Less predictive than those two metrics, but still statistically significant, are TCOW as a percentage of operating expenses and as a percentage of revenue.

“Everyone thinks net profit drives stock price,” says Higgins, a former CFO, “and in my old finance world I thought so too. But what really drives stock price is productivity. Some might say Return on HCI and Human Capital ROI Ratio are synthetic profit metrics, but we see them as productivity metrics – the return on people’s productivity. And when those numbers improve, your stock price jumps.”

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First of all, let's remember that bears are sluggish and bulls spirited and burly. The terms are used to describe general actions and attitudes, or sentiment, either of an individual (bear and bull) or the market. A bear market refers to a decline in prices, usually for a period of a few months, in a single security or asset, group of securities or the securities market as a whole. A bull market is when prices are rising.




The actual origins of these expressions are unclear. Here are two of the most frequent explanations given: 

The terms "bear" and "bull" are thought to derive from the way in which each animal attacks its opponents. That is, a bull will thrust its horns up into the air, while a bear will swipe down. These actions were then related metaphorically to the movement of a market: if the trend was up, it was considered a bull market; if the trend was down, it was a bear market.
 

Historically, the middlemen in the sale of bearskins would sell skins they had yet to receive. As such, they would speculate on the future purchase price of these skins from the trappers, hoping they would drop. The trappers would profit from a spread - the difference between the cost price and the selling price. These middlemen became known as "bears", short for bearskin jobbers, and the term stuck for describing a downturn in the market. Conversely, because bears and bulls were widely considered to be opposites due to the once-popular blood sport of bull-and-bear fights, the term bull stands as the opposite of bears.

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Technology for your portfolio has made rapid advancements in the past few years. If you are a do-it-yourself investor, low-cost online solutions can help you build a better portfolio. Some of the solutions below also consider taxes and help you locate investments in the appropriate accounts to deliver an outcome that may lower your tax bill.With online investment managers, you will pay the internal expenses of the funds used. With some services listed below you choose your own brokerage account and pay trading fees; with other services trading fees are included in their price or service package. All information below was compiled from each service’s website, and nothing is intended as a recommendation.

JemStep

Jemstep is an online portfolio manager. Their patented methodology determines the appropriate asset allocation for you and evaluates up to 20,000 mutual funds and ETFs to come up with a recommendation. What I like is that their market scenario modeling considers what you might expect in poor and average markets, not bull markets. This is a more appropriate way to test a portfolio; if you get a bull market for your next 20 years you are going to be just fine. What you need to know is how well-off you’ll be if you get a bad 20 years. The software evaluates what you currently own, then recommends changes that can lower your taxes and expenses and provide an improved risk/return tradeoff. They have a free option you can try, and if you like it, portfolio management runs from $17.99 - $69.99 a month, depending on your portfolio size.


Betterment

Betterment is an automated online portfolio manager that can also help recommend how much to contribute to accounts to reach certain goals. You can model the effects of increasing your savings and then set up automatic deposits. They use exchange traded funds (ETFs) along with tax-efficient algorithms to create an optimal asset allocation of stock and bonds that can be easily implemented right there with a click or two. Their pricing ranges from .15 - .35% of portfolio size and they offer a 30 day free trial.


SigFig

SigFig is an online portfolio management software tool that allows you to optimize your portfolio around risk, return, and expenses. They evaluate what you currently own, then recommend a portfolio of diversified ETFs, and you can set it up to automatically rebalance for you. Their process doesn’t appear to be tax sensitive, so this can be a good option if all your money is inside retirement accounts where there are no tax consequences to making investment moves. Their service is free for portfolio sizes under $10,000 and runs only $10 a month for larger portfolios.


FolioInvesting

FolioInvesting is not online portfolio advice; instead it is an online brokerage account that provides over 100 ready-to-go packaged portfolios called Folios. You can buy or sell these Folios much like you would buy or sell a mutual fund and with their unlimited package you can have virtually unlimited commission-free trades for $29 a month. This may be a good alternative for those currently picking their own mutual funds or stocks.  Folio allows you to easily diversify, but you will need to pick the portfolio and tax location of your investments (tax location means what choices are best held inside your IRA vs. in a non-retirement account.)


MarketRiders

MarketRiders is an online portfolio manager that offers something for the self-directed investor, the advanced investor, and for those seeking an advisor. For the do-it-yourself person they use an online questionnaire to recommend a diversified index fund portfolio which you can implement at your choice of numerous online brokers. They then monitor and send you rebalance alerts. They have a minimum recommended portfolio size of $25,000, and their services run $14.95 a month, or $149.95 a year. They offer a 30 day free trial.

Rebalance IRA 

Rebalance IRA focuses on managing your investments with low fees by building a diversified portfolio using low cost index funds, and they will rebalance it on an ongoing basis. Their process starts with a phone interview. Like WealthFront, they list Burton Malkiel and Charley Ellis as part of their team on their advisory board. They recommend you have at least $75,000 in your account, and they charge .50% of your portfolio value. Although their fees are slightly more than some of the other options, the services looks like it offers more personal contact with the phone interview, and that would be reason for a slightly larger price. This service is affiliated with MarketRiders and uses their investment platform, methodology, and rebalancing algorithms.


Robotic Stocks Trader

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As a trader, it’s vital to establish a firm set of rules before buying or selling shares. Once you know your limits and your criteria for choosing stocks, your decision-making process becomes simpler and easier. You'll rarely feel torn about where to place your money. And if, say, a risky stock that you pass up skyrockets, you probably won’t feel as bad. You may even feel proud of yourself for sticking to your principles.

Factors in Investment Limitations

Setting day trading rules isn't merely important for psychological reasons. It’s also an effective route to building a portfolio that will earn you a significant amount of money over time. When you have limits, you know exactly when to sell a stock; you’ll cash it in when its price reaches a certain upper limit or bail when it falls to a certain lower limit. Thus, most of your stocks should prove profitable, and none of your picks will devastate your savings. 

You might set daily limits as well. That is, as soon as you earn a set quantity of money in one day, you'll immediately pull out for the day. Similarly, once you lose a specified amount in a single day, you'll cease your investing activities. That way, you're less likely to fall victim to a sharp, sudden downturn. 

Your trading rules must deal with more than dollar amounts, however. You should also keep up with market news and know which events would compel you to buy or sell. For instance, if a mega-investor started buying up a hefty percentage of a company in which you owned stock, that event might trigger you to sell those stocks right away. Additionally, earnings reports often induce investors to act. 

Putting Your Plan Together 

 

So how do you go about crafting those limits? As with almost everything in life, knowledge is fundamental. Give yourself a few months to learn everything you possibly can about the industries and companies in which you might invest. Attend courses, seminars, and conferences. Read books, trade journals, relevant periodicals, and charts. Quiz experts. Eventually, you’ll develop keen, insightful expectations for various stocks. 

Some trial and error may be necessary as well. Thus, you might set aside a modest amount of money with which to experiment. You can then test various rules to see which pay off the most for you. You can also go for Automated Trading Systems. These are known to be the best tool to earn profit as per your strategy, thus the risk factor is almost negligible.

Don’t be afraid to modify your rules on occasion. Keep reviewing the performance of your investments. Keep educating yourself on the market. And then make alterations as necessary. Once you have a portfolio that consistently performs well, you’ll know that you've instituted a winning set of restrictions.

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Trading in the stock market can be both fun and of much interest, provided you know how the market works. Many people have been lucky enough to earn millions in the stock market overnight while some have lost fortunes. So, if you want to try your hand at stocks then better take some preparation.

Below are a few tips which would help you to invest in stocks in a sensible manner:

 

 1) Buying and selling of stocks frequently

A major mistake Most of the beginners, trade their securities rather too often. If you buy and sell frequently, then the benefit will be negligible compared to the losses. Being greedy does not pay instocks.

 2) Do not panic 

Stock market is essentially for investors who like to experiment with their money. To win in the long run you should sell only when it yields you proper money. People who are driven by panic are prone to buying high and selling low.

 3) Understanding stock market strategies 

You should be aware of the basic investment strategies before you put your right foot forward. Technical analysis is a strategy that is widely used. Here, charts are used to predict the movement of stocks. It should be noted that this technique works best for short term trade rather than long term investments.

 4) Choose your broker carefully 

Finding out the suitable broker for you can make a difference. You should make sure that your broker has certain qualities. Firstly, the broker should allow you to place trades online. This is important because placing a trade online saves you quite a few bucks compared to doing the same in person. Secondly, don’t hire a broker who charges high fees. More often than not, their advices are not useful. Moreover, if the fees are quite high then it will eat your profits. Finally, if you are a novice then choose a beginner friendly broker. Some brokers are geared more towards veteran investors and their intricate methods may confuse you.

5) Beware of stock market scams   
                      

 Stock market has its share of shady people but if you are careful then you are safe enough. Stay clear of offers which promise more than 50% return. Likewise, a guaranteed return is a doubtful case. Also remember that whenever someone tries too hard to sell you something, his motives are perhaps questionable.

6) Use Robotic Stocks Trader 

Robotic Trading Systems are very helpful to execute a user defined strategy . The Cool Trade system monitors all the stocks via a real time data feed, creates a watch list and do trading according to stock market conditions. 

 Above are few important tips which every new investor should know before getting into the stock market. These tips will help you invest wisely in individual stocks and generate profit.

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Russian lawmakers are working on a draft law to allow the confiscation of property, assets and accounts of European or U.S. companies if sanctions are imposed on Russia over Ukraine, RIA news agency said on Wednesday.

RIA quoted Andrei Klishas, head of the constitutional legislation committee in the upper parliament house, as saying the bill “would offer the president and government opportunities to defend our sovereignty from threats”.

He added that lawyers were examining whether the confiscation of foreign companies’ assets, property and accounts would comply with the Russian constitution but said such steps would “clearly be in line with European standards”.

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Wall Street is the financial district of New York City. It's the collective name for the financial and investment community, which includes stock exchanges and large banks, brokerages, securities and underwriting firms, and big businesses.

Wall Street is the home of the New York Stock Exchange, the world's largest stock exchange by market capitalization of its listed companies. Several other major exchanges have or had headquarters in the Wall Street area, including NASDAQ, the New York Mercantile Exchange, the New York Board of Trade, and the former American Stock Exchange.


  Some interesting Facts Of Wall Street

• Wall Street was laid out behind a 12-foot-high wood stockade across lower Manhattan in 1685. The stockade was built to protect the Dutch settlers from British and Native American attacks.

• The “stock market” began in May 17th, 1792 when 24 stock brokers and merchants signed the Buttonwood Agreement.

• The buttonwood tree was simply the local name for the sycamore tree.

• The first stock ticker was invented by Edward A. Calahan in 1867.

• The Securities Exchange Act of 1934 creates the Securities and Exchange Commission, charged with the responsibility of preventing fraud and to require companies provide full disclosure to investors.

• Despite the New York Stock Exchange’s notoriety, it was not the first stock exchange in the United States. That distinction belongs to the Philadelphia Stock Exchange, which was founded in 1790.

• The Massachusetts Investors Trust was the first official mutual fund, created on March 21st, 1924.

• The Wellington Fund, created in 1928, was the first mutual fund to include stocks and bonds.

• Wells Fargo Bank established the first index fund in 1971. John Bogle would use it as the basis for building low cost index funds at The Vanguard Group.

• The first exchange traded fund, or ETF, was SPDR. It was created in 1993 by State Street Global Advisers and tracks the S&P 500 stock index. 

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