Start Forex Trading Without Investment & Day Trading Forex

Posted on by Ryan

Forex is an acronym of Foreign Exchange, and Forex Trading is the global business of trading of currencies from various countries against each other. The foreign exchange market also known as FX, currency market or Forex. All of the larger international banks are major participants in Forex trading. So, is it really possible to start Forex trading without investment? What about Day Trading Forex? The answer to both of these is yes you can!

Typically Forex trading is performed by the brokers, in this business you have right to choose the currency pair that you expect to change in the value and trade accordingly. As a Forex trader, you have to place an order through broker then the broker passes the order to their partner in the Interbank Market and fills your place. In case, you close the trade the broker closes your position with the loss or profit during the trade.

Start Forex Trading Business? Why Should I?

No matter what is your actual business you can do it from home as part-time, if you know how to do business and survive in the market, start by day trading Forex. It requires practice and knowledge of different markets you want to work with.

Day Trading Forex is Easy With a 24-Hour Market

As a Forex trader, you can choose your own hours to work from the morning in Australia till the night in the United States. The Forex market never sleeps, so you can join Forex trading as a part-time business, but you must have some amount to invest. You can find your peak hours to do Forex trade according to your regional time. Find out how to combat inflation!

Low transaction costs

The physical Forex markets require large amounts to invest to survive in the market, on the other hand, online Forex trading doesn’t require anything like this. You can make transaction cost under 0.1% under standard market circumstances, and the larger markets can bid as low as 0.07%, so it depends on your investment in this market.

No commissions

As a Forex trader, you don’t need to bear expenses like brokerage fees, exchange fees or government

fees. Most of the retail brokers compensate for their services, so they don’t require you the commission.

Just like other businesses, day trading Forex also has scammers who are just like a black sheep in this field.

Before you start Forex trading, you need to avoid them, following tips helps you to avoid from Forex scam or fraud.

Google the product and research for it: If you see a new product that offers high-profit, search about it in Google, for example: write “product name scam” if the results yield with too many results don’t go with it.

If it looks too good: Websites that offers high-profit, keep in mind there’s no easy money in this market.

Scamming websites usually have one page with big/blinking $ sign and serious explanations.

Demo account: As a beginner you need to care for the demo accounts. You must ask from the people who have experienced the field to start a demo account.

Check the people on LinkedIn: LinkedIn is the world’s largest professional network with a wide audience. People who looks new to the Forex and from whom you might have scam risk then they can be searched out on LinkedIn. By checking their linked profiles you will know that whether they are trusted or not.

401k Contribution Limits 2018

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Everything you need to know about your 401k contribution Limits 2018. Most families don’t have the advantage of multiple tax sheltering opportunities. A small business, a farm, or nine children are available to only a few, so tax reducing techniques may difficult to come by. As a result, perhaps the single greatest tax sheltering device that most families possess today is their 401k retirement plan.

In this article, we will discuss 2018 contribution limits. (Related: 401k contribution limits for 2019). We will also assess 401k catch-up contributions and 401k matching rules.

401k Max Contributions

For 2018 the 401k limits are set at $18,500. This is the maximum annual 401k contribution allowed by law. This is a figure that has climbed 65% from $10,000 in 1999, thereby allowing participants to have larger retirement plan tax deductions than ever.

401k contribution limits 2018 will remain the same as in 2017. With 2018 contribution limits now attached to certain inflation indexes, the IRS and Treasury departments have determined that there will be no increase in 2018 maximum contributions. Many experts were expecting a decrease of 2018 401k contribution limits, primarily because of the somewhat deflationary environment we currently find ourselves in. It is important to note that all future adjustments will also be tied the same index. Check out our article on the rules for 401k distributions.

401k Catch-Up Contributions

In addition to the above, 2017 401k catch-up contributions are $6,000. The 401k catch-up gives participants 50 years old and older the ability to sock away a little extra before retirement. The 2018 401k catch-up will also remain at $6,000. Future catch-up contributions will be indexed for inflation in the same way deferrals are currently.

401k Matching Rules

If you’ve been a part of a retirement plan recently, you may have lost your 401k match. Many businesses, both small and large, have simply found that cutting the retirement plan match makes sense to the ongoing health of the business. Employers are looking under every stone for ways to save money, and 401k matches are not immune.

A 401k match typically involves employer contributions to the employee’s account based upon the employee’s deferral. Many employers match dollar-for-dollar, where others contribute less, i.e. 50¢ on the dollar.

Employers are allowed by law to match up to 6% of the employee’s salary. For example, if an employee makes $50,000 per year, the maximum employer match to the employee’s 401k account would equal $3,000. For those of you who are self employed read about the safe harbor 401k plan!

401k Contribution Limits 2018 Summary

401k contribution limits for 2017 and 401k contribution limits for 2018 are set at $18,000 and $18,500 respectively.
Catchup contributions for 2017 and 2018 are set at $6,000.
401k Matching rules allow for matching up to 6% of the employee’s salary.

Fidelity 401k Loan – Everything You Need To Know

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For many when starting their new job thought of participating in a 401k plan was exciting. A place to store thousands and thousands of dollars, safe and secure, awaiting retirement. Then life happened. The transmission went out. Your son broke his arm. The tree fell onto the house. And that was just last month! Now what? Well, you invade the 401k, of course. But, as a wise man once said, “It is characteristic of wisdom not to do desperate things.” So, before we do desperate things, let’s look at some of the pros and cons of taking out a fidelity 401k loan.

Taking A Fidelity 401k Loan – Pros & Cons

First the pros:

401k loans are fairly easy, if your employer offers it. Actually, it is almost too easy. Please remember, you are borrowing from your future. Your entire retirement may depend on the precedent set by you on this matter.
No interest. If you do pay interest, it goes right back into the account. That’s a pretty good price to pay for money.
No formal application to fill out and no waiting for approval. Since there is no credit check or waiting lines at the bank, the process can be done very quickly.

Now the cons:

Human behavior. Yes, this is what gets us all. We are capable of deceiving ourselves into thinking, “just this time”. “It will never happen again”. Well, it generally does happen again. And when it does, we may wish we
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had acquired the funds from a different source. This leads us to our next bullet……
A 401k loan default. If you terminate your employment, your loan will need to be paid back almost immediately. If you don’t pay back the loan, the borrowed funds are considered a 401k distribution. And you will have federal income tax due on your tax return, and also a 10% penalty to boot.
Possible unforeseen fees. Pay attention to the fine print and ask questions. Several times.
Loan Limits. Most often the amount you can borrow from your 401k plan is the lesser of $50,000 or 50% of your plan balance.
You will have to pay it back. Now that statement seems obvious, but repeat the phrase, “I will have to pay this back” repeatedly before you initiate the paperwork.
Not all plans allow for 401k loans. Even though the law allows borrowing from a 401k, your employer doesn’t have to.

401k Loan Fidelity – What are some alternatives?

First, do you really need the money? Is a 401k loan absolutely necessary? Absolutely?
Can you borrow the money from a family member?
Can you sell something of value that you don’t really need anymore? This is often the best way to raise some cash.
Have you considered a home equity loan?
Can you extend the current debt that you’re borrowing against your 401k for?
Do you have any low-interest credit cards? Yes, credit cards. Really. Not all would agree, but in most situations I would advise the use of a credit card rather than taking out a 401k loan.

Yes, 401k loans are fairly straightforward. You borrow the money from yourself, and you pay it back over time. You can do it. It is legal, but just remember that you may not like the consequences.

The Potential Value In Fitbit Inc

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My Current Position In Fitbit Inc.

I’ve been watching Fitbit Inc (symbol: FIT) over the last couple of years. During that time I’ve bought and sold shares of Fitbit here and there. During August of 2017 I began getting more serious and started purchasing shares fairly regularly. As of January 30th, 2018 I currently own 7,630 shares of Fitbit. With 1,930 in retirement accounts and the remaining 5,700 in my personal brokerage account. I have just $40k invested in Fitbit. with their current share price of $5.22. I’m currently averaging a cost basis per a share of $6.11 (I’m down just around $6,800). I plan to add an additional $5k over the next month to put my total original investment just above $50k.

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Current Financial Situation of Fitbit, Inc.

There were a few things to call about about the latest earnings report for the fiscal Q3 ending on September 30th, 2017.

Highlights From Fitbit’s Q3 FY17 Financial Report

$659 million in cash, with current assets totaling $1.23 billion
$564 million in current liabilities
$392 million in revenue, with $174 million and -$27 million in gross profit and operating income respectively
-$113 million in net income
Operating cash flow was $5.5 million, net change in cash for Q3 FY17 was -$38 million.

There’s a few important things to call out from Fitbit’s Q3 FY17 Financial Report

Has a very strong cash position, with operating cash flow remaining positive.
R&D spend remained at $84 million contributing to the lower net income

The Long Term Strategy Of Fitbit

If Fitbit is able to enter into the healthcare side of things. I believe there is a lot of potential for this company. During FY18 I’ll be looking for YoY sales increases and their plan for expanding their services. I still believe that Fitbit is undervalue at it’s current price. With the market cap just under $1.3 billion, this company has a lot of room to go, if they can prove to the market their value.

401k Distribution Rules – Everything You need to Know

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401k Distribution Rules

As you read thru this article keep something in mind………the IRS has permitted tax benefits to families by way of the 401k for many years. Primarily intended to permit individuals to salt away extra cash for their own retirement, participants have responded. 401k plans now make up the largest employer-sponsored retirement account type in existence. Knowing the 401k distribution rules will help you decide the best path for you.

But, you’re reading this because it is now time to retire or it is time to tap the 401k for some much needed cash.

Whatever the reason, care must be taken to abide by the 401k distribution rules. Otherwise, Uncle Sam may become more involved in your life than you ever believed he could be.

In an attempt to simplify the concepts of 401k withdrawals, I have boiled them down to two types.

1. Early 401k withdrawals and,
2. Withdrawals made at the age 59½ or older.

Let’s start with……

Early 401k Withdrawal

An early 401k withdrawal has the likelihood of creating two taxable situations on your tax return.

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In addition to paying Federal income tax on the amount withdrawn, 401k early withdrawal penalties at a rate of 10% on the distribution amount will generally be required of you as well.

Congress had enough foresight (I can’t believe I actually wrote that) in the early years to understand that if participants were going to contribute to their own 401k account, they should have some access to their money.

So Congress put in a 401k hardship rule (this hardship rule also exists for 403b plans and 457 plans). These rules make allowances for early 401k withdrawals in a limited number of situations. Here are the exceptions:

Expenses for medical care for an immediate family member.
Costs directly related to the purchase of a principal residence.
Payments of directly related educational fees, including room and board, for the next 12 months of post-secondary education for the employee or an immediate family member.
Payments necessary to prevent the eviction of the employee from his/her residence.
Funeral expenses.
Certain expenses relating to the repair or damage of an employee’s principal residence.

“It’s important to note that the above exceptions simply specify conditions when a participant may have access to 401k funds. They are not exceptions to penalties or tax.”

401k withdrawal penalties will not apply if distributions before age 59½ are made in any of the following circumstances:

Payments made to the beneficiary after the death of the participant.
Disability of the participant.
Substantially Equal Periodic Payments after separation from service.
Payments made to a participant after separation from service if the separation occurred during or after the calendar year in which the participant reached age 55. More on this below.
Payments made to an alternate payee under a qualified domestic relations order.
Distributions to a participant for medical care up to the amount allowable as a medical expense deduction.
Distributions to correct excess contributions, match, or deferral.

Although the IRS makes provisions for early distributions, your employer’s plan does not have to allow those distributions. Many employers do not allow premature distributions because of the added administration costs incurred.

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As briefly noted above, a 401k withdrawal penalty does not apply to employees who separate service from their employer in or after the year they have reached the age of 55 (for qualified public safety employees that age gets moved back to age 50!)

Let’s re-phrase this exception. The 401k distribution rules state that you can begin taking a 401k early withdrawal in the year you turn 55 or later from your current employer only. Therefore, it may make good financial sense to roll older 401k’s into your current employer before you retire.

Distributions at age 59½ or Older

If your intent is to withdraw 401k assets at retirement, 401k withdrawal laws allow for these three options. Each item assumes that you’re at least 59½ and you are no longer employed by your employer.

Take a lump sum. Your provider will write you a check after holding out 20% of the balance. This 20% is simply a required tax deposit on the 401k distribution. As you file your taxes the following year, the withdrawal will be included in your total income via a 1099 tax form. Whether the 20% Federal tax withheld is enough or too much depends on your particular tax situation for that year.
Do nothing. Leave your plan assets with your employer. There is no tax consequence as no money is withdrawn.
Rollover 401k to IRA. There is no tax implication of this is done correctly.

401k withdrawal rules can be extremely complicated. Contact your financial advisor or CPA for more help.