Why conservative investors put their money in Treasury Bills

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One of the safest investment opportunities in the market today is Treasury bills, commonly known as the T-Bills. Aside from the fact that they are provided and backed by the full faith of the government of the U.S., T-bills are typically sold at a discount basis through auctions.

Unlike the long-term government securities like treasury notes, T-bills’ unique and short-term maturities that range from four weeks up to 12 months make them an ideal option for conservative investors who are not looking for long-term commitments and bigger risks.

However, longer maturity dates for t-bills investment also means a higher interest rate that will be paid to the investor. Treasury bills have a characteristic of being a liquid investment and this high liquidity makes their yield rate usually lower compared to long-term securities.

While T-bill pricing does not easily fluctuate and produce different numbers, this pattern can be disrupted by the sale or purchase in large quantities – usually by the central bank.

Moreover, the prices of treasury bills are determined at the auctions by following an organized bidding process. These bids are categorized into two classifications: competitive and noncompetitive. The former determines a discounted price from the treasury bill’s par value while the latter, allows its investors to submit a bid in order to purchase the bills’ specific dollar amount.

Treasury bills do not only benefit investors but as a government-backed investment option, it provides financial support and funding to different projects and infrastructure that benefit the public.

How cloud computing technology is taking over the corporate world

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Information sharing has been a crucial factor in the success of business operations and management for decades and the recent introduction of cloud computing technology has provided a more advanced and secure approach to this method. For one, it has made it possible for companies and organizations to digitally store, access and protect data any time, wherever they are in the world.

When cloud computing took over the corporate world, it rendered obsolete the need to have a data storage facility that can be easily vulnerable to breach. The cloud, as a platform, has enabled access and sharing of resources from pools of data with lower cost, minimal effort, and a more centralized approach.

One essential reason for turning to the cloud and its services is how it allows companies to concentrate on their organization’s core businesses instead of allotting more resources on physical infrastructure as well as maintenance. As a low-cost alternative, organizations no longer have to worry about up-front costs for IT infrastructure.

According to the technology’s proponents, cloud computing technology will lead enterprises to the convenience and efficiency of running their applications faster, providing better manageability, without the further responsibilities of regular maintenance. Most importantly, with cloud computing, IT teams can easily respond to and adapt to the most unpredictable demands of adjusting and managing resources.

Innovators like Microsoft and Amazon are the leading companies that are at the forefront of cloud computing. These two technology giants, through Amazon Web Services (AWS) and Azure, aims help organizations gain access to the high-capacity networks and low-cost, cloud-based storage devices – and these are just are just some of the several benefits that this technology has to offer.

Nuggets of wisdom from the world’s most distinguished investors

The modern world has introduced new challenges to investing. While the basics of the trade still remain the same, investors are faced with present opportunities, options, and dilemmas that can make or unmake their chances of success.

It’s true that most investors learn their lessons the hard way, but it can be equally productive to also discover new and useful things from the best players on the field.  Here are some of the most important pieces of advice from the world’s greatest investors and how you can use them to your advantage.


“It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.” – Warren Buffett

In his letter to his shareholders in 1989, Warren Buffett, an American investor, philanthropist, chairman, and CEO of Berkshire Hathaway, and perhaps the greatest investor of his time, revealed one of the most important tenets that shaped his investment strategy: invest in companies that you can fully understand, regardless of its present finances. More importantly, it should be one of which their intrinsic value is self-evident.


“Do you really like a particular stock? Put 10% or so of your portfolio on it. Make the idea count. Good [investment] ideas should not be diversified away into meaningless oblivion.” – Bill Gross

PIMCO co-founder, Bill Gross, also manages one of the world’s largest bond funds, PIMCO Total Return Fund. Here, he speaks about his ultimate rule in portfolio management and diversification. It’s a common rule that when investing in stocks, never put all your capital into one name – but what Gross emphasizes that if you want to make money in the stock market, make research-based decisions and informed ideas when choosing one or more stocks.



“If you have trouble imaging a 20% loss in the stock market, you shouldn’t be in stocks.” –Jack Bogle

Jack Bogle is the founder and former chief executive of the Vanguard Group. As a veteran in the trade and an expert in investing in the stock market, he points out one truth that most of the time, intimidates young investors: Losses are a part of reality in investing in the stock market. If you don’t have the grit and the courage to face them, then you shouldn’t be in stocks in the first place.

These are where the world’s wealthiest people spend their holidays

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The super rich live an exclusive and extravagant lifestyle that ordinary people can only imagine. In fact, everything that they put an interest in has a big price tag attached to it – and one perfect example is traveling. Billionaires, celebrities, and heirs to multimillion dollar companies: where do the uber-wealthy spend their lavish vacations?

Here are some of the most favorite travel destinations for billionaires and tycoons.


The Caribbean easily ranks as one of the top places where billionaires travel. Aside from being one of the leading offshore investment centers in the world where high net-worth individuals flock, thousands of idyllic islands surrounding the region boast a genuine and exclusive experience of traveling in paradise. Top islands in the region include The Bahamas, the Cayman Islands, and British Virgin Islands.

The Maldives

The Maldives is major luxury destination among the rich and famous, peppered all over by private island-paradises owned by equally wealthy individuals. This tiny Indian Ocean archipelago has welcomed many wealthy famous celebrities including Michael Phelps, Russell Brand, Katy Perry, and royal couple Prince William & Princess Kate.


Fiji is home to over 300 islands located in the South Pacific. This famous travel destination is known for its clear lagoons, a rich abundance of coral reefs, and their mesmerizing rugged landscapes. Most importantly, the destination is popular among tycoons and billionaires who found their second home and bought their own islands.

Laucala Island, for example, is owned by the Australian Red Bull tycoon Dietrich Mateschitz and while it was once a private refuge of the late Malcolm Forbes, it was transformed into an exclusive resort favored by the world’s richest.

The ideal Estate Planning strategy should include these key components

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Estate Planning is one of the most avoided conversations especially for people who believe that they should celebrate life more than think about what is going to happen when it’s finally over. However, the truth is, setting your financial goals after you die by ensuring that your assets are protected and your family is taken care of, is a critical step that you should focus on as early as now. Why?

You know too well that you have worked so hard to establish your wealth and provide for the people you love. But what will happen to the fruits of your hard work after you die? Without proper planning, something as unexpected as death can all just tear down everything that you have built.

If you want to protect your wealth and your assets, consider these key components of Estate Planning.

1. A Will can make sure that the individual’s wishes, as well as the distribution among heirs, will be easily carried out after death.

2. In some cases, individuals deploy Trust as a way of securing their assets (living or after death), providing legal protection of their wealth and managing them later on according to their wishes. It is made up of three participating parties: the trustor, the trustee, and the beneficiary.

3. A Power of Attorney is a major component that strengthens a strategic Estate Planning. The Healthcare Power of Attorney, for instance, lets you assign a particular person as your decision-maker when it comes to healthcare concerns. This component also lets you outline your wishes at the moment of incapacitation, illness or death.

For a greater understanding of the many ways to protect your assets and estate, consult with investment experts at LOM Financial. Visit their official website HERE.

Top jurisdictions for discretionary portfolio management

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When buy and sell decisions are under the discretion of an investment manager, clients have the assurance that their portfolio is well organized and in good hands, thanks to the expertise and experience that this type of asset management has to offer.

However, it’s not that easy to find an exceptional discretionary portfolio manager, unless you know where to look. There are several financial centers scattered all over the world but topping the list are offshore financial centers located near or within the Caribbean region. Here are the three most trusted financial centers and what they have to offer when it comes to offshore discretionary portfolio management.


Bermuda is home to several financial offshore services and it includes offshore discretionary management that caters to high net-worth individuals from every part of the globe. One of this financial location’s known strengths is its popularity in helping their clients build a strategic portfolio because of its connection to different investment assets. One example is its access to hundreds of mutual funds that strive for building a valuable and sustainable portfolio.

The Cayman Islands

Cayman’s tax-neutral status is not the only factor that makes it one of the top providers of discretionary portfolio management services. This jurisdiction provides tailor-made policies for foreign investments, with a legal system that protects and gives freedom to professional service providers in making the best financial decisions for their clients.

The Bahamas

One of the goals of this jurisdiction is to create a globally competitive financial sector especially when it comes to private wealth management and capital investment. Thanks to the foreign-friendly investment policies created by the Bahamian government, its financial sector is able to present a globally-accepted set of regulations that have benefited services such as portfolio management for international clients.

How the Asia Pacific region emerged as the new hub for international investors

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In the next ten years (or even earlier), the Asia Pacific region is expected to come on top as the most important component of the global economy, not only boosting the markets of its member countries but also providing positive gains for foreign direct investments.

According to the 2017 Regional Economic Outlook report, Asia and the Pacific were expected to lead the global growth, with a 5.4% increase in 2018—and the forecast did not disappoint international investors looking for opportunities in this emerging investment hub.

There are several factors that made the Asia-Pacific market highly favored by international investors. For instance, the demographic advantage of the region—with about half of the world’s population—makes it a pool of billions of consumers, facilitating to a highly dynamic market. Led by China, the region’s impressive population delivers a combined GDP that makes the regional market the most productive in the world.

It is also a fact that every country in the region is home to the world’s biggest economies like Japan, China, Australia, and India, as well as emerging markets like Indonesia, Thailand, the Philippines, and Vietnam, among others. Moreover, the growing population of young middle class among Asia-Pacific nations especially in Southeast Asia has continued to help their economies grow. The increase in consumption and public spending are the direct results of this growth, providing an optimistic forecast for regional market’s current and future investors.

Last but the most important factor is, Asia-Pacific’s sudden yet effective shift in its member country’s trading behavior. Unlike before when they relied on their economic trading partners from Western powers like North America and Europe, intra-regional trading became the norm and the pattern is expected to further boost the region’s rapidly advancing economy.

Many of the world’s offshore financial centers are also taking notice of Asia Pacific’s massive potential as a fertile ground in which to grow dynamic investment portfolios for international investors. The likes of LOM Financial have built up offshore mutual funds specifically designed to take advantage of the growth of emerging markets, which include many of the region’s economies.


Stress-free business ideas for retirees

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People have different ideas on how they want to spend retirement and while most want to live through their golden years in relaxation and pleasure, some dream of finally pursuing their interests and turning them into winning entrepreneurial ideas.

If you belong to the latter and you’re planning to launch your own business after you retire, here are some options that can turn your talent and interests into income.

Start your own consulting firm.

You can use your years of experience and deep expertise in your field to inspire and educate others. This is also the best way to help your brain and body stay active, utilizing the skills and talent that you have honed through the years by helping others find their own path.

The good thing about this option is you can operate from home and just make use of the physical and virtual tools available to you.

Transform your interests into a business.

Perhaps you want to do something that it totally outside for your professional field of expertise and take time focus on your interests, the hobbies that you did not have enough time for when you were still a busy employee.

For instance, why don’t love turn your love for art and crafts into an income-generating project? Maybe you can host a workshop for fellow seniors who want to practice their artistic side?

How about your love for gardening? With it, you can start a gardening business that can include selling gardening tools and products.

Open a cozy Bed-and-Breakfast Inn.

If you love meeting people and want to be fully involved in your retirement business, starting a small B&B accommodation can be ideal for you – and it only requires a relatively low startup cost.

This business option is perfect for retired couples who wish to stay active while earning a steady income to pay the bills and other home maintenance expenses.

Investment Strategy for 2016

In order to make your portfolio grow, your best bet is to place your money in stocks. But of course, you will need a good strategy for it to flourish, especially this coming 2016. One of these strategies is to slow down shelling out your money in equities and its funds. Why? It is because for the past 5 years, these funds have been up for at least 150% of their course and this coming year might be the time it runs its course. But despite of that fact, believe it or not, investment strategyyou could still invest your money here.

It would probably make you wonder why, especially when the risk could go high. Okay the truth is, even though the risk is high, it would still be worth it because this avenue has been proven effective by a lot of investors to still earn profit from it. This means, you won’t experience complete loss after all. For many years, investing in stocks has always been a good idea because it helps an investor’s money to grow.

It is always the goal of investors to see the economy flourish by having corporations profit from their business and having the sales of companies grow as well. Lately, companies and their profits were a result of cost cutting rather than sales profits going high. Corporations in the US don’t even want to go hire people anymore.

A solution to stimulate the economy is to have interest rates go low, as it will also help to have unemployment rates investor risk profilego down. In order for this to happen, purchasing debt securities that have longer terms should be done by the government. This is why investing in stocks is something that investors should be doing because the more stocks are invested on, the more the interest rates would go down.

The best move is to place your money in stocks knowing that your country would do something in having some new plans in the economy’s growth, which includes employment rates and increase in business sales. If you think that there’s a chance for a higher interest rates to come this coming 2016, I would suggest not putting in a lot of money for your investment, especially if you think that it would not be good for the economy.

Keep in mind that when the interest rate is high, this would have a huge affect in sales and it is not going to be in a good way. Profits in corporation would also be affected in a negative way when interest rates are high, as this would raise the cost for money lending. And in case you don’t know, corporations do a lot of that in a year.
To sum up the strategy I have for you this 2016, be careful and check first if the interest rates are high before you invest anything on any funds, bonds or stocks. Always do your research first before shelling out your savings. I’m not saying don’t invest at all, but be more cautious in investing.

How To Choose Your First Broker In Investing

Unless you’re a business or finance major, you will need the help of a broker to sort your investment, especially in handling stocks. These people will help you with the ins and outs of this business. Also, you should know that there is no way you could do this without owning a brokerage account. We’ll get to the details on how you could acquire that later, for now let’s focus on your getting your first broker.

If this is your first time, choosing your broker would be different from those who have been doing this for a long time now. You would be surprised that dealing with finding a broker is like handling and choosing the right stocks for your investment as well. That said, you must actually find the right match for you. Because if you don’t, I hate to break it to you but there’s a possibility you’ll end up penniless.

The first thing you need to know about picking the right broker is what exactly is their job description and how could they help you. You must know if you will get a regular broker or a broker-reseller. I’ll walk you through their differences.

The regular type of brokers is the ones that handle the whole investment deal with a direct client. The client will be hands-on working with them from the ground up. The other type, which are the broker-resellers are basically the middlemen dealing with a client and huge broker.

My advice is that go for a regular broker because they are more legit. There is a chance you could actually be ripped off when you deal with broker-resellers although of course, I am not saying it to generalize them, but it’s just wise to investment brokergo for a regular broker if you’re just starting here. Should you ever decide to go with a broker-seller, make sure that you know them well and that you double-check every document before making a final decision.

I would advise to also go for brokers that are linked to reputable organizations that are known in this industry. Fidelity and Scottrade are among these and they are members of the Financial Industry Regulatory Authority.

You must also be aware that there are brokers who offer their full service and there are also ones that could give you discounts. Most people take the former even they are really expensive because they literally do all the job. As the investor, you will also gain a lot more than tips and suggestions in how you would deal with your stocks if you for the one who offers full service.

Aside from the obvious fact that you must go with a broker who is trustworthy, these are among the things that you must consider before going with one. And as much as I would want to tell you that you really don’t need their help, unfortunately you do. They are like the people who handle your taxes, which means you don’t have much choice but to trust them or you will have to do it yourself.