debt / 9 posts found

What happens when management fails?

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The Art of Management

Capital efficiency

In principle at least, the main function of management is the efficient use of capital in everyday decision making. Managers have to satisfy three main beneficiaries of the company, namely the employees, bondholders, and the investors. Company employees benefit by earning a salary, while bondholders gain by receiving interest on their held bonds. However, both these beneficiaries are more concerned with short term gains, whereas investors, who are the residual owners of the company, are more concerned with long term gains. Investors receive benefit from the company by either receiving a cash dividend, and/or capital gains on the price of the stock.

Smart About Managing Debt

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Almost everyone who has debt think about it frequently. In fact, debt is blamed for millions of days off work every year, and general feeling of sickness for many others.

These are many symptoms of stress that can manifest itself in your life. It can manifest itself as headaches, inability to sleep, feeling depressed and irritable, with an inability to concentrate on what you are doing. Check with yourself if these symptoms are cause by excessive debt. If you are thinking about it constantly, then it is a problem.

Three Problems with Mortgage Insurance

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In Canada, when you took out a mortgage, you may remember the lender asking you if you wanted a mortgage payment protection insurance. Most probably, you glazed over it as expensive and unnecessary. However, insuring your mortgage is extremely important as it can mean the difference between keeping a roof over your head or having your home repossessed. However, insuring your mortgage is best not done with a mortgage insurance, but rather with a life insurance – and here is why.

Size Doesn’t Always Matter

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Here’s an investment question to consider: Two years ago, would you have invested in company “A” which had zero debt, an income that increased by 61 percent, and which had just become the world’s largest firm with a market cap of $600 billion? Or would you have invested in company “B” which had 16 percent debt, and whose income had decreased by 27 percent?

Investing Fast and Slow in Inequality

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What we can learn from Africa.

If you suspect life is unfair, Oxfam just gave you the numbers to back it up. In a recently published report, the anti-poverty charity presented a staggering statistic: the world’s 85 richest individuals now own around $1.7 trillion, which is as much as the poorest half of the world’s population of 7 billion. In fact, the 1 percent richest people in the world own $110 trillion, which is 60 times the wealth of the poorest 3.5 billion people.

Four Considerations before Buying a House

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Mistakes can be very costly when it comes to buying a house. Many unscrupulous mortgage brokers would too often convince the homebuyer to spend more and buy a bigger house. This leaves little room for financial maneuver as other costs grow with time making the house not affordable.

What people forget is that mortgage brokers are sales people: they have quotas to fill and a commission to make.

Buying a house requires proper planning, and here are four main consideration to help guide you safely to the home you desire.

Smart About Term Insurance

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Term life insurance is “pure insurance” because when it only provides a death benefit to the beneficiaries. In contrast, permanent insurance such as whole life, and universal life, has cash value, but makes is more expensive. Term insurance is less expensive because it provides a specific death benefit, without the costs of an embedded investment.

5 Myths About Life Insurance

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There are a lot of myths and misconceptions when it comes to life insurance. It is always best not to assume certain myths as facts. Mistakes made when buying life insurance have long-lasting consequences, which may not be fixed.

You need to choose the life insurance that is right for you. Thus, it is best to avoid these five common myths:

The Ten Financial Equations You Need to Know

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Today we are frequently faced with the need to make financial decisions whether in investments, business, or debt management. So it remains perplexing why our schools don’t teach financial formulas in the same way they engrave Pythagoras Theorem in young minds. This explains in a large part why the average investor loses in the stock market, and is faced with risks in the mismanagement of business and debt. Simply put, financial illiteracy can cost us more money if we maintain a “trial by fire” approach. As savvy investors, you should at least know the ten basic financial equations for investment, business, and debt in order to take better care of your financial future.