Two mistakes people make when handling assets: A friendly reminder

It’s very easy to make mistakes when it comes to money. Wrong moves in the middle of investing and managing assets are very common. Some people are lucky when their mistakes aren’t too costly. But even with small errors in judgment, when done one after another, mistakes pile up. And these things are avoidable. Here are two mistakes people commit when handling assets.

The credit card factor

The irresponsible usage of credit cards can bring a bank account to ruin fast. People who use credit cards should be extra cautious. Credit cards should almost always be used only when cash is low, and seldom, if ever, on necessities. People should check interest rates as often as they can, and should not spend more than what he or she earns.

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Image source: telegraph.co.uk

The urge to spend

Unnecessary things are usually the most tempting. An expensive dinner, an exotic coffee blend, a pair of shoes that’ll only be worn five times a year – these are all fine and good as rewards, but if one cannot control the urge to spend, then game over can come very quickly. If people added up the prices of all these items, they’d see an amount well over a thousand dollars yearly – a thousand dollars that could’ve been used to pay off very important debts or start an investment portfolio.

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Image source: moreshoppingforyourfamily.blogspot.com

Charles F. Whitman is a Chicago-based investment strategist who uses his investment and technical know-how to help his clients grow their portfolio. Charles also founded Whitman Asset Management. Learn more about him and his work by visiting this LinkedIn account.

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High Risk, High Reward: Pros And Cons Of Venture Capital

A subset of private equity investment, venture capital is one of the alternative investments that carry a potential for long-term growth. It specializes in financing small, early-stage, or developing businesses, which typically do not have access to capital markets or public financing. Funds gained from venture capitals are, therefore, an essential source of finances for these companies.

Image source: entrepreneur.com
Image source: entrepreneur.com

Venture capital is a risky asset class, but its return on investment can be substantially high upon the event of successful liquidity. Famous startups that gained from early venture capital investors are Google, Facebook, and Twitter.

One of the advantages for venture capital investors, aside from the potential for high profitability, is the opportunity to provide more than financial resources to the startup. Valuable guidance and consultation can help the firm with its decision-making, as well as legal, tax, and personnel matters.

Image source: panamericanworld.com
Image source: panamericanworld.com

On the other hand, a drawback with this alternative investment is the risk involved in investing in a company that has limited operating history, and, at times, high upfront costs. As for the startup, it will relinquish control, management, and a bit of ownership stake to the venture capital investor.

But due diligence in investigating the business model, products or services offered, competitive advantages, and management and operating history, among others, can result in a mutually beneficial venture capital partnership.

Charles F. Whitman is an investment strategist based in Chicago. He founded Whitman Asset Management, a firm that provides its clients with alternative investment programs that target exceptional risk-adjusted returns. To know more about him and his firm, visit this website.

The ABCs of ETFs

image source: marketsmedia.com
image source: marketsmedia.com

ETFs or exchange traded funds play a significant role in the global market because these are funds that track indexes like the widely known S&P 500, NASDAQ-100 Index, and Dow Jones. ETF is an efficient tool that gives investors access to different markets in the world. It tracks an index, bonds, commodities, or blend of assets. In addition, because its shares can be bought and sold, it undergoes price changes throughout the day.

Purchasing ETF shares means buying shares of a caliber portfolio that monitors the earnings and returns of its native index. When investors decide to buy ETF shares, they get the power to sell short, buy on margin, and acquire access to portfolios that contain diversification of an index fund. Since there are no minimum deposit requirements in ETF, investors can purchase small amounts of share. Most ETF investors claim that ETF is better than the traditional mutual funds because of the lower costs, better tax efficiency and a lot of other reasons.

image source: mi2g.com
image source: mi2g.com

As an investment strategist, Charles F. Whitman is an investment strategist and trader from Chicago. He is the founder of Whitman Asset Management, a firm that specializes in alternative investment programs that target exceptional risk-adjusted returns. Mr. Whitman is renowned in his commitment to helping his clients find investments with which to grow their wealth. For more on him and his company, visit this website.