Year: 2019

  • Traders are Worried Due Economic Recession

    Traders are Worried Due Economic Recession

    3 min read

    Economic Recession is Here

    Gorica Gligorijevic

    Investors are worried due to the economic recession. Traders have invested a huge capital into bonds over the past 3 months. Actually, they invested a record $155 billion into bond funds during the past three months.

    So, what’s going on? This activity shows that traders and investors are looking for safe assets and the global crisis is on the door. Traders are purchasing sovereign debts. If they continue as it seems they will, we can be pretty sure we will have a huge recession. This trend isn’t good.

    Investors prefer bonds as increased global economic difficulty induces a need for safety.

    According to data collected by Bank of America Merrill Lynch, investors put a record $155 billion into bonds during the last three months. And we all know what is the safest investment when crisis knocks on the door. The government bonds are the safest assets.

    Worries expressed in money

    In just one week, the week behind, the bonds lured $7.1 billion. For one week only. By the way, it was one of the biggest inflows ever.

    Investors have a risk aversion. They don’t like to see their capital is at risk. And as they recognized the symptoms of this financial illness called the economic recession they started to invest in safer bonds. But their action caused another problem. Everyone in the markets feels anxiety, the trade tensions are rising along with worries the global economy is worsening. 

    The markets are volatile and everyone would like to put money in assets that perform better during the crisis.

    “What we’re seeing from a risk standpoint at this point in the market is really investors that are seeking haven in longer duration US treasuries,” Charlie Ripley, a senior investment strategist for Allianz Investment Management, said Markets Insider in the interview. 

    What does stand behind this traders’ action? 

    Fear! Fear of a coming economic recession. Fear is a powerful force. And that fear is caused by an inverted yield curve. It appears for the first time since 2007, and traders and economists noticed it several days ago. 

    View this too

    That’s important because such an inversion has happened before every economic recession since 1950.

    The yield curve is inverted again. Meanwhile, China ramped up its trade war with the US. The previous developments in trade war have pushed companies of an economic slowdown. The new situation added more stress to investors.

    Trump’s “Sorry”?

    President Donald Trump, at a press conference at the Group of Seven summit in Biarritz, France, said he was not concerned that his more volatile attitude toward China would threaten stability in the global economy. 

    “Sorry! It’s the way I negotiate,” he told reporters. “It’s done very well for me over the years. It’s doing very well for the country.”

    This comment occurred after a woozy week of economic announcements from the White House. These reports have caused uncertainty among businesses and investors. 

    Trump said that China asked the US to restart consultations and negotiations. He also said about President Xi Jinping that he is “a great leader who happens to be a brilliant man”. Yes, only a few days before, he called him “enemy”.

    The Global Times, an organ of the Chinese Communist Party, also disputed Trump’s enthusiasm.

    “Based on what I know, Chinese and US top negotiators didn’t hold phone talks in recent days,” the Global Times editor Hu Xijin wrote in a tweet. “The two sides have been keeping contact at the technical level, it doesn’t have significance that President Trump suggested. China didn’t change its position. China won’t cave to US pressure.”

    All of this caused great uncertainty among investors. We will follow what is next.

  • The Most Valuable AI Startups In Europe

    The Most Valuable AI Startups In Europe

    2 min read

    AI startups in Europe

    The field of AI and MA is one of the most interesting businesses for European venture capital. From the beginning of this year, there were 323 VC contracts in Europe in these businesses. That brought almost $2.1 billion in total.

    Much more than the last year.

    The reason behind is that there are so many fields to apply AI technology.

    This variety is seen in the top five most important European AI startups. Let’s take a look at them.

    Graphcore (Valuation: $1.7 billion) 

    This is one of the most valued AI startups in Europe. As a difference from the other companies, Graphcore is essentially involved in the hardware behind AI tech. This England-based unicorn develops a new-generation computer processor to hasten machine intelligence learning. Graphcore carries the highest valuation of AI startups in Europe. It reached $200 million Series D co-led by Atomico and Sofina.

    Darktrace (Valuation: $1.65 billion) 

    Based in the UK this cybersecurity startup utilizes AI and machine learning to examine and recognize security vulnerabilities and malicious traffic. Darktrace reached its current valuation when it raised a $50 million Series E led by Vitruvian Partners last September KKR and TenEleven Ventures also funded this startup

    Meero (Valuation: $1 billion)

    The France-based developer of an on-demand photography platform is one of two French startups on the list. It uses AI to quickly process digital images for customers in over 100 countries. Meero funded $230 million in a Series C co-led by Eurazeo and Prime Ventures. 

    Iov42 (Valuation: €520 million)

    This startup rides AI and Blockchain. Iov42 develops an AI-powered blockchain-operating platform that gives service to cryptocurrencies. Its latest investment was a €20 million Series C3. 

    ContentSquare (Valuation: €276.8 million)

    ContentSquare develops a platform that assists businesses to understand how and why clients are associating with their app, mobile and web sites. This Paris-based company applies a mixture of behavioral data, AI and big data to give automatic recommendations, measure content performance and understand visitor intentions. In January, the company raised a €52.55 million Series C led by Eurazeo. Highland Europe and Canaan Partners also funded it.

    Bottom line

    Artificial intelligence (AI) is an important sector for Europe and it can be a hack for economic growth. For some people, it still represents destructive robot troops that will wipe out humans.

    As you can see it is worth business.

    Technology, throughout history, has demonstrated to increase the productivity of countries creating new jobs. But instead, this technology is connected to the deadly robot troops.

    We need a new tech generation. Yes, it is very expensive and not truly strong enough to make a notable impact on economies. But it absolutely will be

     

  • Top Blue – Chip Stocks Today

    Top Blue – Chip Stocks Today

    3 min read

    top-blue-chip-stock

    These top-quality stocks lead their industries, and they’ve been good to investors over the long run.

    We know, you are wondering how to choose the best stock for you. There are a billion stocks out there and it is difficult to find the right one. So, it is time to say something about blue-chips stocks.

    Many investors would advise you to choose the leading company in its industry. So, the biggest companies with long track records of performances are blue-chips stocks. 

    And you are wondering which they are? Let’s take a closer look at some.

    The companies we would like to recommend to your attention are among the biggest in the world. They already have a high market cap but they plan to grow more. 

    Apple

    The famous Apple has had a huge impact on purchases electronics and new technology in modern history. The first Mac users, those from the 90s, still use this Macs. The modern ones, of course, but Mac. That is loyalty. But Apple built consumers’ confidence with diligence. After first Macs, it made a revolution with the iPod, iPhone and Apple Watch were on the scene. And it is still one of the biggest companies in the world. That is a blue-chip company.

    You may ask how it is a great possibility without new products in recent years. Yes, that is true, Apple has started to look more like an old guy in the new era. The added catch is that Apple has yielded huge amounts to shareholders during the past several years. So, you may ask why they didn’t reinvest it? So many investors are asking that almost every day.

    Traders-Paradise wouldn’t bet that they don’t have. I just think they are watching and preparing something revolutionary. Recently, they said they are not a high-tech company anymore. Don’t worry about that, it is due to some taxes and regulations. But it looks like everything is okay now. Their focus is on Apple TV+ service to take part in the video-streaming industry. And beat the rivals. There is still a lot of work but definitely, Apple is worth being in your plan as a top blue-chip company.

    Berkshire Hathaway

    It is one of the most successful blue-chip stocks in history with legendary Warren Buffett. He is still in the head of this company.

    Berkshire Hathaway has a large portfolio of  100-percent-owned companies and publicly traded stocks. Where are the blue-chip stocks out there? Berkshire’s top holdings are Apple and JPMorgan Chase. There is GEICO, also, and railroad giant BNSF, altogether with the Dairy Queen restaurant chain. Its share price is very high, they are traded currently a bit above $300,000. Truly Class A stocks. They have one of the best track record performance over a long long time. This conglomerate isn’t a member of Dow. But you don’t have to be a genius to understand why Berkshire Hathaway is a top blue-chip stock.

    JPMorgan Chase

    The other company from the conglomerate.

    JPMorgan Chase is an important player in the U.S. banking industry.

    But you have to know something. JPMorgan Chase was so close to slipping the edge during the 2008-2009 financial crisis. The bank performed a significant role in supporting the financial system through its buying of Bear Stearns and Washington Mutual and ended up on financial support from the federal government. It took time for the bank to grow from a difficult period.

    Today JPMorgan is recovered completely. This bank is stronger than ever. High returns on net tangible equity provide it a valuable advantage in an atmosphere of low-interest rates. And it is capable to gain on chances to grow in main fields on its business divisions. Investors can be safer than ever with this top blue-chip stock and rank that JPMorgan Chase owns.

    Facebook

    We were thinking should we add Facebook among the top blue-chip stocks.  Facebook exists a bit more than 15 years and is a publicly-traded since 2012. But it is the pioneer of social media and it became a giant.

    Moreover, Facebook still has a lot of ways in which it can develop. Its Instagram app is strong followed among youngsters. But, the company still didn’t generate large revenue from WhatsApp or from Oculus. One is for sure, the future could make those parts much more important to Facebook’s overall returns. Facebook is the clear leader in the social media field.

    Little after its IPO, Facebook’s stock experienced huge declines. It didn’t take too long and Facebook’s stock price rose. The company successfully turn its PC-focused platform to mobile devices and showed the ability to keep up with the times. So, profitability is out the question. So, it is a top blue-chip stock.

    Visa

    The credit card giant originally had the name BankAmericard, formed by Bank of America. In the 1970s, the company changed its name to Visa. A long time before its IPO, it was a private corporation. In 2008, Visa finally became a publicly-traded company.  

    Visa is a blue-chip stock because of its leading position in the credit and debit card industry. With billions of cards issued, Visa exists all over the world. Moreover, Visa pioneered in electronic payments. Visa is producing huge profits.

    The competition has risen, and that’s forced Visa to be careful in its territory and been successful. Visa aims to maintain its status by making it easier for clients to use mobile devices to transfer money more efficiently.  Taking all this into consideration, Visa should be a top blue-chip stock in the payments industry for a long time.

  • Planning When You Are Insolvent

    Planning When You Are Insolvent

    2 min read

    How to reduce costs and improve credit score

    You don’t have enough cash, right? And you don’t know how to reduce costs.  Well, it’s more likely you don’t have a plan. First of all, try not to spend more than you earn. If you do, you would prevent the growing credit card debts and you would not have broken credit score. So, what to do when you have all of this? Honestly, you are not a lonely case. Don’t worry, you still have the chance to reach your financial intentions. 

    All you have to do is to take several steps. So, let’s start. We don’t need all this stress surrounding us.

    Neglect the 10% savings rule. This isn’t time for it. Forget it.

    Puting10% of your salary into your savings account is a tricky part if you’re surviving paycheck to paycheck. You cannot save a cent. So, wait with that. So, the first step is to balance your budget.

    Further, how to reduce costs…

    Ask for bill extensions. It is often allowed. Talk to your landlord if you are worried to save a roof over your head. But consider the other possibilities to decrease your bills. For example, maybe you don’t need all the services your mobile provider is giving, or you may spend less money on electricity bills, and so on.

    If your biggest worry is eviction from your apartment, talk to your landlord, but, also, see if you can get increases on any other expenses to free up money for keeping a roof over your head.

    Let’s see what else you can do.

    Analysis of your credit card payments. What? Do you want to tell you are using that for minimum payments? Well, you are on the right path to disaster. You will ruin your credit score! Don’t even try to avoid credit card payments. That will make your debts even worse.

    Rather make the highest payment you can support. 

    Decrease spending in other fields and stay focused on your debt. Yes, you may think are not saving money while you are increasing credit cards payments. But, honestly, you do. In this way, you will be able to save up to 30% per year in interest rate. For example, if you manage to pay $2,000 added this year, you will pay almost $600 ahead. It can be on-month-rate and you are on a good way to avoid eviction.

    Moreover, prioritize your bills. Check what you have to pay as first and make a plan based on your paydays. If you already have some late bills, talk to representatives from bill company. Be honest with them and say you are going on a more stringent budget. Just tell them how much you can pay per month and don’t promise you will pay more with the next paycheck. What if some other costs arise? What are you going to do? So, just be honest.

    Review your spending in the last month. Make a list of different categories or use online banking or some app for that. Call your credit card company or companies and try to reduce the interest rate. Negotiate!  

    How to reduce costs else?

    Try to reduce your expenses. Actually, you have to do so. Check your fridge! Is there rotten food? Of course, you have to shop for less fresh food. Make a menu for one week, for example, and stick with it. The big result will come with small steps. Cut back on coffee, invite friends to your home, instead to see them in restaurants. Eating out is expensive anyway. You will not need that for a while.

    Give your budget a one-month chance. Make notes every day, use the app on your mobile or some software on your computer. Follow the spending of every cent. And you will see where you need to adjust your spending. Decide where to cut. Oh, yes! Don’t try to exclude supermarkets, utilities, and rent. You have to buy food, you must have a place to live and you need electricity and other utilities. Just reduce the light (you are not living in the surgery room, for God’s sake), and start to cook.

    And try to find more income.

     

  • U.S. Government is Blacklisting the Bitcoin Addresses

    U.S. Government is Blacklisting the Bitcoin Addresses

    2 min read

    Blacklisting the Bitcoin Addresses

    The blacklisting results are three sanctioned Chinese persons and 11 Bitcoin addresses and 1 Litecoin address added to this list for now.  The U.S. government said that is investigating criminal activity linked with Bitcoin and other cryptocurrencies.

    Experts are expecting more and more similar activities. On Wednesday, the Treasury Department issued sanctions against three Chinese because they were allegedly using Bitcoin for laundering profits from drug selling.

    The Treasury’s Office of Foreign Assets Control (OFAC) by adding 12 crypto coins addresses more, ensure that no one in the US can make business with people behind any of those addresses.

    This action isn’t the first blacklisting.

    During the past year, it is second. The first was against Iranian residents 8 or 9 months ago. On November last year, OFAC issued a sentence for two Iranians with the same arguments – laundering dirty money using Bitcoin.
    The unprecedented move happened last year. That was the first time ever, the US government has attached two Bitcoin addresses to a list of sanctions. The addresses were linked to those Iranians who ran an ad-hoc crypto exchange. 

    So, we have to remind you that Bitcoin or any other crypto is anonymous as many people like to believe. 

    Traders-Paradise recently wrote about that HERE 

    The newly revealed addresses are, as the previous two,  listed on the Specially Designated Nationals list. All with their names, email and physical address.
    The addresses are linked to two Iranian nationals who ran an ad-hoc crypto exchange in the country. Their bitcoin addresses are now listed on the Specially Designated Nationals list alongside their names, email addresses, and physical address.

    In a  statement last year, the US Treasury Department revealed:

    “We are publishing digital currency addresses to identify illicit actors operating in the digital currency space. Treasury will aggressively pursue Iran and other rogue regimes attempting to exploit digital currencies and weaknesses in cyber and AML/CFT safeguards to further their nefarious objectives.”

    These actions are the beginning of larger activities, said to Chainalysis Global Head of Policy Jesse Spiro. This kind of criminals collected about $4.3 billion in 2019 so far, stated the new statement

    “We anticipate further action by OFAC to include additional cryptocurrency addresses attributed to these individuals and others that are involved in narcotics trafficking going forward,” Spiro said to Decrypt. He pointed out that those cases confirm the need for “strict cryptocurrency compliance programs to immediately identify high-risk behavior and activity.”

    So, we can expect more blacklisting the Bitcoin addresses in the future.

    The criminal and money laundering are problems by their nature. The other problem is cryptocurrency lost in these crimes.

    “As lawmakers and regulators focus their attention on the industry, it is more critical than ever that cryptocurrency businesses demonstrate compliance best practices,” said John Dempsey, VP in Chainalysis. “Every minute counts when managing exposure to sanctioned entities, hacked funds, darknet markets, and other illicit activities.”

    The US exchanges are now obliged to screen for blocked persons. Contrary, anyone who breaks these sanctions can face penalties up to $10 million and criminal charges, also.

    “By having such procedures in place, institutions and exchanges can work with governments and law enforcement in detecting and preventing such illicit activities,” stated Spiro.

    The regulations are a necessity for the crypto ecosystem. How it will keep the anonymity of transactions is another question. And we have to ask, will they blacklist banks which launder money?

  • Spelling Errors Cost Investors Millions Every Year

    Spelling Errors Cost Investors Millions Every Year

    Spelling errors cost investors millions
    Is really possible that spelling errors can cost investors millions? Here is the full story.

    By Guy Avtalyon

    You entered the stock market but still make mistakes. This time spelling errors. Okay, you are not the only one. Spelling errors cost investors millions every year. re you happy now? Of course not. 

    As we said billion times when you enter the stock market you have to be very aware of which company you want to invest in. What Traders-Paradise wanted was to present you with a wonderful world of investment. And you can find a lot of articles that we offered numerous examples, from how to choose the broker to how to calculate your profit. A lot of times we tried to teach you how to check the company in the market. And how important their ticker symbols are.

    What we saw is that you invested in FORD! 

    WOW, good choice indeed. But did you really want to invest in “Forward Industries” or “Ford motor”?

    Under this ticker symbol, FORD is “Forward Industries” not the car company. What, you already invested there? You should be more careful. Ford motor is under the ticker (F), just F.

    Take care of it because Ford Motor will publish its Q3 earnings on October 24th. 

    Why investors are losing millions every year?

    If you did invest in FORD, the only problem is that you invested in a manufacturer of “carrying cases for medical monitoring systems”  worth $10 million, so don’t expect too much from them. Experts calculated that this error costs investors about one million in trading only for the fees. 

    Where is the lower or lost return? Can you calculate that?

    A lot of those investors usually don’t even correct this mistake until it is too late. They still think they made a good investment until they see in the quarter or annual reports. Some of them notice the error several days after and try to sell their stocks, but is the game with poor results. Actually, it is very rare they can bring the invested money back.

    So, let’s see again where you can make similar errors?

    For example HP. Do you really think it is a giant company, Hewlett Packard? Nope! It is the ticker symbol for Helmerich & Payne. You are free to check their official website:

    “H&P is the leading U.S. unconventional driller, and our drilling experience spans the globe. Our company currently owns and operates land rigs across North America, South America, the Middle East, and Africa, with offshore rigs in the Gulf of Mexico.”

    Do you still want to invest there instead of Hewlett Packard, it trades under (HPQ)?

    Also, Hewlett Packard Enterprises, you will find under (HPE).

    Would you like to invest in ZOOM? Yes? That is another mistake. It is an unclear Chinese wireless business. We suppose you wanted to invest in ZM which is $25 billion worth video conferencing platform.

    Spelling errors cost investors millions 

    For example, you want to invest in Twitter. What is their market ticker symbol? TWTR or TWTRQ? Don’t invest in TWTRQ, it bankrupted. Yes, several years ago, in only one year, during 2013, it’s stock rose1000%. What a market star! But a shooting star. There is no more this home entertainment retailer. 

    But TWTR is still there ready for you to invest in. 

    There are more.

    Two professors at the Rutgers School of Business-Camden discovered that over half of listed US companies deal with a “meaningful part” of their tickers with a different company. 

    It can be in a different industry and, also, with huge differences in market capitalization. Those professors found almost 250 so-called, company pairs that can lead you to wrong decisions. Professors claimed, “250 company pairs where the possibility of confusion is particularly high.”

    For example R1 RCM (RCM) vs RCM Technologies (RCMT) where market cap difference is 3,215%

    The problem appeared due to a phenomenon known as “fat finger trades.” 

    So, take care, avoid spelling errors that cost you a lot of your hard-earned money.

    Also, the robo advisor can make mistakes. Yes, of course. The inputs are given by the people and the people make mistakes. The algorithm will follow inputs without the question. You can be sure.

    What we want from you is to “spellcheck” your investments. Proofread the tickers from your preferable company and make corrections on time.

  • A.I. chip Ascend 910 – The New Huawei’s Product

    A.I. chip Ascend 910 – The New Huawei’s Product

    2 min read

    A.I. chip Ascend 910 - The New Huawei's Product

     

    Despite the pressure from the U.S. government and a blacklist known as the Entity List, Huawei proofs ability to develop new technology. 

    Huawei declared the market availability of an artificial intelligence chip Friday named A.I. chip Ascend 910. By putting it against Qualcomm and Nvidia, it shows resistance to U.S. pressure. 

    This AI chip, named the Ascend 910, appeared in October last year. The usage of it is intended for data centers. Companies applying AI apps need tremendous volumes of data to raise smart algorithms. The whole process can last for weeks. Huawei declares that its chip can treat more data for a shorter time than its rivals and is able to end the whole process in a few minutes.

    “We have been making steady progress since we announced our AI strategy in October last year,” Eric Xu, one of Huawei’s chairmen, stated in a press release. “Everything is moving forward according to plan, from R&D (research and development) to product launch. We promised a full-stack, all-scenario AI portfolio. And today we delivered.”

    Huawei is on a blacklist in the U.S. that limits American firms from doing business with this Chinese firm. But Huawei is connected with a lot of U.S. providers for key technology.

    A.I. chip Ascend 910 despite the pressure

    Taking the blacklist in view, Huawei has adjusted its works on homegrown technology. It recently released an operating system named HongmengOS, or on English HarmonyOS.

    Huawei already gives cloud services. By selling the hardware with software altogether, Huawei is expecting to stimulate more expansion to its company. It is currently suffering a slowdown in its core networking program and hopes the new project could neutralize that slack.

    China company will be represented with two AI chips in the market. The chip Ascend 910 and the other chip, already launched, called the Ascend 310l. Huawei is hoping that their products could play the main role against opponents such as Intel, Samsung, Qualcomm, Nvidia.

    At the beginning of this month, Huawei has launched its own and new operating system called the HongmengOS (HarmonyOS).

    The advantage of this operating system is that it can be used on smartphones, smart speakers and even sensors. It’s part of Huawei’s performance in the so-called Internet of Things, meaning devices connected to the internet.

    HarmonyOS will first be practiced on televisions, which is Huawei’s plan. Later, this OS will be utilized in other devices, such as wearables and car head units.

    At first, OS will originally launch in China but Huawei has the plan to expand it globally, said the CEO of Huawei’s tech consumer division, Richard Yu.

  • How is Beyonce as an Investor – Celebrity Investors

    How is Beyonce as an Investor – Celebrity Investors

    2 min read

    Beyonce as an Investor
    Beyonce Knowles-Carter

    Beyonce Knowles-Carter is a singer. But, also, she is a worldwide brand. You can find her name on fashion marks, cosmetic industries, and Pepsi commercials.

    Her career began with girl-group Destiny’s Child and her destiny is incredible. Beyonce became one of the most popular singers in the world. She earned 23 Grammy awards. Also known under the nickname, Queen Bey.
    She is a businesswoman too. Beyonce owns a strong portfolio of real estate in the US and all over the globe. Most of them she owns in partnership with Jay-Z, her life partner. But some investments she holds by her own. 

    Beyonce invested in tech.

    Just like Ashton Kutcher, Queen Bey is interested in the tech world. BeyoncĂ© started the management company Parkwood Entertainment that have invested $150,000 into Sidestep. It is an app for purchasing concert merchandise. In the beginning, Sidestep was selling t-shirts and posters for Queen Bey. After some time, when Beyonce saw its profit and potential, she invested in Sidestep. According to Sidestep’s CEO Eric Jones, the idea of “a tiny scrappy startup doing the biggest tour in the world” was great.

    That was the first step as an investor

    Then, 2015. Uber came with an offer of $6million to perform on the company’s event in Las Vegas. But Beyonce had an offer too. Instead of cash, she asked to be paid in Uber’s shares. After Uber went public that $6 million were turned into to profit $300 million from her shares. 

    Beyonce isn’t the only celebrity who invested in this company before it got in IPO. 

    Apart from profits in the musical industry, Beyonce surely recognizes the point of diversifying her investment portfolio. Her investments are also in Dereon Clothing, deals from General Mills, L’Oreal DirecTV, Pepsi, Samsung, Ford, American Express, etc. Queen Bey released: “I have a lot of property. I’ve invested my money and I don’t have to make any more, because I’m set. I’m now able really to be free and just do things that make me happy.”

    Beyonce as an investor, not only as a singer or actress, proved that she is not just a hype. 

    Together with Jay-Z, she is part of Hip Hop’s first billionaire couple into several investments, revenue, and endorsements.

    Beyonce as investor thinks ahead 

    She made about $4 million from the 2018 Coachella Valley Music and Arts Festival. She was the first African-American woman to headline the festival. Her performances were a tribute to the culture of black colleges and universities but also inspired by black feminism.

    She also signed a $60 million worth deal with Netflix which brought Homecoming, a documentary about that show.

    Beyonce supported to start a vegan food company 22 Day Nutrition. She’s also a stockholder in streaming service Tidal.

    Queen Bey is widely recognized as a smart business icon. She has earned hundreds of millions of dollars with conservative investments. And she spends her money on extravagant gifts like Bugatti Veyron Grand, private jet, $88 million purchase of a Bel Air mansion, etc. She earns, she spends.

    Musicians aspiring to get rich off royalties are fooling themselves. The real money comes from smart investing. 

    Beyonce Knowles-Carter is a smart investor.

  • Financial Matters Before Getting Married

    Financial Matters Before Getting Married

    Financial matters before getting married
    Talk to your partner about the personal finances, financial goals even before getting married
    By Guy Avtalyon

    Financial matters before getting married are always a risky topic. Getting married isn’t as simple as it seems. Yes, you love each other, but some financial issues must come to the table before you put rings on the fingers. Talking about future finances can lead to the break of your relationship but you have to have one thing in your mind: When poverty comes to the door, love might fly out the window. That’s why you must have a clear situation before getting married. You must consider some questions with your partner. 

    Financial matters very often can give you the right picture of future life. What if you are not compatible with that field?

    First of all, you must have at least a basic idea about your partner’s financial goals for the future. Has your partner any idea to change the job? Does your partner plan savings and how? Where you will be after 20 years? Compare the answers with your personal financial goals. 

    What is your most important financial intention?

    The financial intentions can run the range from paying off all debts to buying a house. Maybe your partner is planning some several-months traveling to the far East to find itself or to purchase the car. What is about you? Can you place yourself in that image? So, you have to discuss some financial matters before getting married.

    Financial matters before getting married: Is your partner a saver like you are?

    It’s necessary to have a sense of how your partner manages money. Are you similar or two different worlds? Don’t avoid talking about this. What if you are raised from your childhood to put aside for example 10% of your earnings as savings and your partner is more willing to live largely, spending today no matter what will come tomorrow? If you don’t open this question you may find yourself disappointed and frustrated later in your life. 

    What are your priorities for spending money on?

    You must discuss this before getting married. Your priority may be buying home and save for that, but your partner’s priority could be traveling every year to some exotic place. Nothing is wrong with that. The main point is to understand each other and find where you can or cannot support your partner’s financial goals and respect that. Understanding a partner’s financial goals is a good base for the future.

    Is it crucial for you to have what your friends have?

    Financial issues before getting married can be inspired by other people’s habits. Maybe you want something that others already do or have. So, take care. You must set your own financial goals, not copy others. Do you really need those high-tech gadgets your friend already has? Does your partner plan to travel with its friends or with you or both? How will you share the costs?

    How much your partner earns?

    Some surveys showed that 4 in 10 couples don’t know how big their partner’s income is. Why is important to know about your partner’s salary? Because of future financial plans. For example, your partner’s salary is $2.000 per month but plans to purchase a house worth $300,000 in the next several months. Is he/she serious? To be sure your partner has realistic expectations about finances, you have to discuss financial matters before getting married.

    How stable are you in your profession?

    Any conversation about the future should involve some issues about job security. Maybe your partner is considering changing the profession. maybe wants to continue the education. You have to be prepared for similar occasions. Some survey showed that 42% of millennials want to leave their jobs in the next two years. If your partner is one of them that will influence your finances. 

    Do you or your partner favor financially independent?

    If you want to move in together money is a big issue. Will you share your funds? Maybe you want to share a part of it? Will you open a joint account? The other study revealed that almost 1/3 millennials prefer to keep their money separated from the partner’s account. Among Gen X-ers it is the case with 11% and among Baby Boomers 13%. You have to talk about this.

    A healthy relationship is based, besides love, honesty, respect to each other’s desires, understanding the differences. When it comes to money, spending habits can be crucial for the quality of together life.

    As we said at the beginning of this article: When poverty comes to the door, love might fly out the window. So, discuss financial matters before getting married.