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Living Together Agreements

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It is crucial that you put in place a cohabitation agreement or a living together agreement when you live together with your partner. The purpose of entering into such an agreement is that your assets are safeguarded even if you both were to split ways in the future.

The assets that can be safeguarded by a living together agreement are those which have been bought before you started living together with your partner. It can include other important aspects such as how the living expenses will be divided between the two of you and how the debt accumulated during your relationship will be shared between the two of you. Setting out such a financial agreement makes it clear as to who owns what when you cease living together.

When to use a Living Together Agreement

A living together agreement can be used if:

Ø  You are currently living with someone or intend to live with someone in the near future

Ø  You wish to set things straight regarding ownership of assets and also how bills will be paid

Ø  If any of the partners decide to approach the court upon the split up, you wish to have a formal agreement which can be deemed legal by the courts

Contents of an Agreement

The following aspects should be made clear in the cohabitation agreement:

Ø  The income earned by each person in the relationship belongs to the one who has earned it

Ø  The property or assets which were owned by a partner continue to be owned by that particular partner, irrespective of the status of their relationship.

Ø  The assets which were bought together will be owned jointly by the couple.

Ø  Both partners will share a joint liability to pay off the debts that were acquired jointly.

Ø  The splitting of living expenses

Is Independent Legal Advice Necessary?

Before entering into an agreement of this sort it is advisable for each of the partners to seek legal advice. This can help to prove at a later date that both the parties entered into the agreement completely aware of what type of agreement they were entering into.

It is also advisable to make complete financial disclosures as there can be claims later of having acted under some influence. Having a formally drafted agreement rules out the possibility of a dispute and proves that each partner had voluntarily signed the agreement and that no pressure had been placed on them to agree to the terms involved.

Terminating the Agreement

If any of the following events have occurred, the agreement can be terminated:

Ø  One of the partners die

Ø  The partners involved in the agreement decide to get married or enter into a civil partnership with each other or any other person

Ø  Both partners mutually decide to terminate the agreement. A deed will be signed to make this happen

Ø  One of the partners is handed over a written notice which terminates the agreement

Ø  Partners decide to adopt a child

Ø  If court rules out the agreement to be legally invalid

Distribution of Assets after Termination of Agreement

When an agreement is terminated, the assets which have been acquired after entering into this agreement will be treated as being owned jointly. Therefore the assets will be sold and the income earned will be divided equally between the partners. The debt which was acquired jointly will have to be paid in equal shares. For any personal debt, the partner who is liable to pay it will be responsible for its repayment.

Which other documents are required for Legal Protection?

If one of the partners who were living together were to pass away the cohabiting partner may find a claim to the deceased partner’s assets. To prevent your assets from being inherited by the wrong person you may have to write your own Will. Almost two thirds of British citizens presently do not have a valid Will which puts their assets at risk.

English Law doesn’t recognise cohabiting partners and the rules of intestacy may not ensure wealth distribution according to your wishes. There are many ways you can write a Will such as using a simple Will template which several websites provide or by hiring the services of a solicitor.

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Business

3 Strategies for Trading Stocks

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Strategies for Trading Stocks

Working hard and saving money is a smart thing to do, but it’s not enough to build real wealth on its own. To maximize your nest egg, you’ll need to invest in stocks and beat inflation. Basic stock investing isn’t too tough, and novice investors can outsource their investment decisions to trusted financial advisor. But for those who prefer to make their own money, there are decisions to make. How aggressive will you be with your investments? What investing techniques will you use? Here are three major stock investing strategies to consider.

Momentum trading 

Momentum trading strategies can vary in certain ways, but they all rely on the central idea that a stock’s inertia matters. A stock that has been rising or falling in value at a certain speed can often be trusted to continue moving in that direction in the near-term. At the right scale, a momentum trading strategy can use that fact to make smart bets on or against stocks based on their momentum and direction. With more hits than misses, a trader is soon making money.

Momentum is an active trading strategy. It is used by day traders and other more active traders, and newbie investors will want to learn more about momentum trading strategies and their variations before trying them out. But a successfully implemented momentum trading strategy can be very lucrative indeed.

Scalping 

Stocks are traded in a specific way on the market. An investor buying a stock offers a “bid price,” or the amount that they are willing to pay for a stock. An investor selling a stock has an “ask” price, which is the lowest amount they’ll accept for a stock. A bid-ask spread can open a window for an investor using the scalping strategy.

Scalping successfully means buying stock at the (lower) bid price and selling it at the (higher) ask price. To do that, scalpers need to exploit order flows or create the spread themselves. Successfully scalping usually means dealing in small volumes of liquid stock and moving quickly to minimize risk.

Buy and hold investing 

Stocks go up and stocks go down. The most profitable thing to do, of course, is to buy stocks when they are cheap and sell them when they are worth much more. If investors are able to “time the market” — get out of overpriced markets, buy back in at low prices after a crash, and repeat — they can make millions and millions. If investors can manage the same sort of buy low-sell high magic with individual stocks, especially volatile and risky stocks, the same rewards are possible.

The problem, however, is that most investors blow it. The market as a whole tends to beat the investors trying to beat it. In other words, it would be better to “be” the market than to try to beat it. And that’s where buy and hold comes in.

With a buy and hold strategy, investors choose large “blue chip” stocks, broad index funds, and other investments that they have reason to believe will be successful in the very long term — just as the market itself is. They then buy those investments and — you guessed it — hold onto them, fighting the urge to sell in tough times and trusting the market and its major players to grow in value in the long term.

Finding your strategy 

Active stock trading strategies are popular among day traders. More passive ones, such as buy-and-hold strategies, are better choices for investors who want to “set it and forget it.” Your best bet for investing will depend on your personal preferences, tolerance for risk, and ability to dedicate time and money to investing. Do your research and choose the right strategy for you.

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Business

Earnings per common share: Know the benefits

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Earnings per common share

According to the market experts, earnings-per-common share is considered to be a financial ration. Generally, it is first ratio that investors prefer to check out at the time of analyzing a stock. Although it is simple, this metric has been found to be extremely powerful. It does condense good amount of information in single number and allows comparison of alternative investments by the investors. It also helps to charge specific business performance with time and estimates future investment growth.

What is earnings-per-common share all about?

If we talk about Apple, Earnings Aapl is stated to be the company’s total earnings which belong to the common shareholders that are divided by common number of shares outstanding. For calculation purpose, it is essential to determine first the preferred dividends payable and share numbers.

Preferred shares are termed to be special share class that is entitled to fixed annual dividend. Multiplying the preferred share numbers with dividend payable to them as well as subtraction of resulting figure from net earnings of the company can help find profit portion of the company that is to be given to the common shareholders. The number derived is to be then divided by common share numbers for getting to know earnings-per-common share.

Income calculation

One of the major benefits derived from earnings-per-common share is being provided the opportunity to calculate easily and effortlessly the amount earned by the company on the investor’s behalf. When this is multiplied by stock numbers owned, it can provide the claim on net income of the business. This way, by performing such calculation for all companies present in the portfolio, it becomes possible to compare the profit amount earned by each of them on the investor’s behalf. Since pre-share income is quantified by earnings-per-common share, other measures are made irrelevant. It includes business size, common share numbers outstanding along with other company issued instruments, like proffered stocks and bonds. It does allow fabulous and clear comparison.

Time series

It also helps in creating charts of management performance with time. This is because, earnings per common share is able to eliminate confounding variables with bank loan assumptions or launch of new products by the company. In case, the company earns much more per-common share when compared to the previous year, then it is likely to do a wonderful job. However, there does exist a caveat, which is ‘stocks may split’. This means outstanding shares can be collected by the company and every old share replaced with new ones, thereby splitting effectively each old share. As this takes place, it is necessary to perform additional calculations to compare new and old earnings-per-common figures.

Dividends vs. Earnings

Although, the earnings made belong to the individual, it is up to the board of directors of the company as to how it is likely to be used. It is the board that will take the decision if the entire earnings or part of it is to be paid in dividend form to the shareholders to be reinvested within the business. But over time, the shareholders can enjoy this money and earnings-per-common share is termed to be a wonderful indication of long term income.

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Business

How Do Real Estate Investment Companies Work?

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Real Estate Investment

Real estate investment companies are those that can either build properties or can buy groups of properties with the motive of either selling or renting them out to investors.

How do they work?

Real estate investment companies help real estate investors to reap maximum benefits from their properties. Most, if not all, real estate investment companies lay out explicit terms that work in the best interest of the investors. Among those terms, one that truly stands out is the provision where an investor can pool in a particular portion of their benefits from the property to pay for the mortgage. It is beneficial for a property owner especially if their property has lain vacant for extended periods of time.

A real estate investment company has the resources and the connections that allow them to have in-depth knowledge about the sector. They partner up with fellow organizations and share insights that benefit both parties mutually. At times, a real estate investment company can resemble an investment club where participating members take unanimous investment decisions. The decisions surround properties and projects related to real estate where the participating members pool in their funds and invest together.

What sets them apart from other service providers?

Real estate investment companies have certain features that help them stand out from other service providers. They make sure that their investors have unprecedented access to the market which would be impossible to get into if they were on their own! On top of that, real estate investment companies deliver:

  • Quality advise to their investors so that their money is well spent
  • Products and services that are ideal for joint investment ventures

The following section sheds light on two features that set a real estate investment company from other firms:

In-depth knowledge about the real estate market and financial sector

A real estate investment company develops/buys properties so that they can sell the same to their investors, in parts or as a whole unit. They also give management services for the sold properties to their investors in exchange for a fee. All in all, providing such services requires a specific set of skills and high-quality resources. Veteran real estate investment companies are known for their in-depth knowledge about the sector. They also have a deep understanding of the inner workings of the financial market. It is necessary for them to be adept in the said sectors since both are inter-related to one another.

Unmatched communication and negotiation skills!

Real estate investment companies also are backed with professionals who are masters of communication! They should possess the skills for proposal evaluation which assists them in making investment decisions that never fails! Last but not the least, real estate investment companies are masters of negotiation which helps to close a deal in no time!

The services offered by a real estate investment company can differ a lot! A company can be a specialist when it comes to dealing with a certain category of properties which can range from residential complexes to commercial centres. There are also firms that provide debt financing services to their customers to help them in times of distress. In short, based on what exactly they are looking for, an investor can choose a real estate investment company that suits their needs and desires! If you want to know more about real estate companies – SmartOwner can help you out! Be sure to check out their official website mentioned below!

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