Oct
31
How to predict bankruptcy
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In case you are planning to invest for the first time there are a lot of apprehensions in your mind regarding the investment to be made. After all it quite a common occurrence where many people are investing in a company which looks good and promises quite a lot of returns but later ends up declaring itself bankrupt. How can you protect yourself from such a disaster. Well, one excellent way is to calculate the financial ratio against the industrial standards and predict whether the company is heading towards bankruptcy or not. How to predict bankruptcy?
The accepted way is by predicting the Altman’s Z score. The formula for calculating the Altman’s Z score requires the ratios EBIT (earnings before interest and taxes) / total assets, net sales / total Assets, market value of equity / total liabilities, working capital / total assets, and retained earnings / total assets. But where will you find this data from? Well, it is all easily available in the balance sheets of the company. After you calculate the score check the result. In case the score is more than 2.7, you can be more or less assured that the company will not run into bankruptcy.
Oct
31
About the FICO scores
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FICO is the abbreviation for Fair Isaac Corporation. If you are wondering what the hell it is, then read along. FICO is a type of a credit score which the money lending company assesses on an individual asking for loan. This score is based on the financial activities of the individual and if they are low, the company can reserve the right not to give loan to that particular individual.
If your FICO score is low, you can contact a credit repair program which is available now days. These programs will increase your FICO scores and make you eligible to get a loan. Fair Isaac, the developers of these scores is the only ones who know to calculate the FICO scores. But it is being said that these scores are based on five factors – The amount you pay, owe, the credit you had, have and the credits you are using at present.
Feb
14
Index investing such as in exchange trading funds (ETFs) are more realistic and fun than investing in mutual funds.
• ETFs are more liquid than mutual fund as they can be sold in the open markets. The moment you feel the markets are according to your liking or you need money then you can easily sell of the ETFs.
• They offer more transparency than mutual funds. You can track the index quote of ETF in the live market and track the performance easily.
• They offer more excitement and fun as you can see them in the live market and clearly monitor their ups and downs.
• The index investment has low management costs. It is on an average just about 0.49% compared to mutual funds which has a management cost of around 3%.
Index investing is thus both profitable and fun. It provides excitement and is realistic investment. Your investment portfolio must have a fair share of exchange traded funds in it
Oct
23
Personal Consolidation Loans
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Personal consolidations loans can be defined as those loans wherein, you can make a single payment to your creditors instead of multiple installments. You also get number of options to choose from while opting for personal consolidation loans.
• Secured Personal Consolidation Loans: This will help you to keep your debt secured against all assets of great value.
• Unsecured Personal Consolidation Loans: You will have a particular loan amount set at your disposal and the rate of interest will depend on your credit history.
• Personal Consolidation Loans Not Needed: This will prevent you from getting into any other possible debt offers.