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Ray Dalio: 3 pieces of advice for how to manage your savings in a coronavirus recession.

By Tom Huddleston Jr.

Though the stock market is on the rebound of late as more and more states reopen, hedge fund billionaire Ray Dalio has made it clear that he expects the ongoing coronavirus pandemic to leave behind an economic downturn that could be the worst since the Great Depression.

“We’re not going to go back to normal” once the pandemic subsides, Dalio previously told CNBC Make It, arguing against the idea of a “v-shaped recovery” where the economy would rebound quickly once the country fully reopens.

“Think of the virus as like a tsunami that comes in,” Dalio said. “And if it goes away completely and we never see it again, it still will produce damage, the financial damage ... incomes that are lost, balance sheets that are hurt, restructurings that need to take place. So that will impede the recovery.”

With that in mind, Dalio has advice for Americans worrying about whether or not their savings will keep them afloat should the economy truly take a historic turn for the worse that lasts well beyond 2020.

Though 21% of Americans do not save any of their annual income, according to a 2019 Bankrate survey, for those who do, Dalio offers up three pieces of advice on relatively safe investment strategies to carry you through.

Determine how far your savings will go
First, you need to take a hard look at your savings and calculate how much you need to be “safe and free,” Dalio says.

″[Determine] how many months or years can you get by” based on your current savings and what it would take to ensure you can still have the type of life you’re comfortable leading, he says.

In other words, you should calculate your average, basic expenses — from rent or mortgage payments to food costs and other essential bills that cannot be trimmed or cut out completely — in order to figure out how much money you would need to survive losing a major source of income.

Dalio suggests saving enough to make sure “you’re okay for ‘X’ amount of time,” he says, whether that’s several months, or even a year.

Remember, “you don’t have to have a world of luxury to cover the basics,” he says.

And “when you’ve [calculated] that savings ... cut it in half, just to be conservative,” Dalio says. “Because between taxes, inflation and possible losses in your portfolio, maybe they can add up to half.”

“That’s No. 1. Do those calculations so that you know, if everything is bad, you and your family [are] still good,” Dalio says.

Once you have that amount of your portfolio set aside to feel safe, Dalio says you can start planning how to put the rest of your money to work for you by investing any money that is not part of what you’ve set aside from your expenses.

“I want you to visualize your acceptable worst case scenario and secure that, because once you do, everything else changes and you can have peace of mind that you can take more risk,” Dalio says. “But if you haven’t secured that acceptable picture, you have to make doing that your top priority.”

Diversify your investments
Which brings on Dalio’s second piece of money advice, which is to take the money that you feel comfortable building on and “diversify that portfolio well.” That means spreading your money across different asset classes that can typically be counted on to perform relatively well no matter the economic environment.

“You need to diversify by holding assets that will do well in either a rising or a falling growth environment, or a rising or falling inflation environment, and [you] should diversify by holding international as well as domestic asset classes,” Dalio says.

For instance, the billionaire has been adamant that investors should back “both horses in the race” in terms of the U.S.-China trade war and the two superpowers’ increasing competition for economic growth in recent years.

“I believe Chinese businesses are competitors of American businesses or other business around the world, and that therefore you want to be, if you’re diversified, having bets on both horses in the race,” Dalio said in 2019.

Dalio has also argued against holding onto cash or government bonds at the moment, due to fears that currency inflation could hurt their value over time. “Cash is not going to be a good investment,” he says, adding: “In relation to inflation, it’ll probably lose 2% a year and maybe more.”

Dalio does see gold as a more attractive asset, he says, echoing his sentiments from January, when he said: “I think you have to have a little bit of gold in your portfolio.” Many investors, including billionaire Warren Buffett, tend to look at gold as a relatively safe and steady investment in times of crisis.

Don’t try to time the market
Lastly, Dalio says never try to time the market.

That is “going to be really important.”

In the past, Dalio has said that the “biggest mistake that most people make is to judge what will be good by what has been good lately” in terms of looking at how the stock market has performed recently and when is the best time to buy.

Trying to perfectly time the market is something that even professionals can’t always manage, and the average person will find it extremely difficult to do successfully, Dalio says.

“To do that well you have to beat the pros, who themselves typically can’t do that well.”

Instead, it’s probably a better idea for non-professional investors to take long-term positions in a diversified portfolio that can pay off over time. Otherwise, all investors need to keep in mind the historical cycles and patterns of the economy and stock market.

From bubbles leading into busts, and vice versa, Dalio has always been adamant that those economic cycles tend to repeat themselves and that investors need to learn to avoid thinking along the lines of: ”‘That’s a bad market, and I don’t want any of it,’” Dalio previously told CNBC Make It. That’s because a bear market might actually be the best time to get bargain prices on certain stocks.

After all, a company like Amazon once saw its stock price lost most of its value after the tech bubble burst in the early 2000s, but many of the company’s long-term investors (those who held onto the stock through rough times, or bought it at a nadir) have seen huge gains because they ignored the most recent market trends at the time and took a long-term approach that’s paid off as Amazon is now worth several times what it was even just a decade ago.

August 11, 2020


How to Write a Proposal Letter.

A proposal letter is a professional letter that states, in an abbreviated form, why an organization, institution, or company should support a professional venture of yours. You might write a proposal letter for a number of reasons—for example, to request a grant, a business loan, or that a publisher accept your book idea. There are general formats, details, and arguments you should make in each instance, although the specifics will vary based on the recipient’s requirements. In all cases, however, you must be succinct, informative, and persuasive.

Method 1 Writing a Grant Proposal Letter.
1. Review the eligibility guidelines so you can offer proof throughout the letter. Most public and private organizations that issue grants for research or other projects have a detailed list of eligibility requirements. You must meet these requirements to be eligible, and you must confirm to the organization that you meet these requirements.
Check the organization’s website or call or email them to get complete and up-to-date eligibility guidelines.
Instead of dedicating an entire paragraph to explaining how you meet each requirement, weave this information into the body of your letter as you write it. For instance, if the organization has certain requirements concerning the types of projects the money can be used for and separate requirements for how that money will be allotted, describe these issues in separate paragraphs instead of trying to cram all the information into one.
2. Introduce your organization to an appropriate degree in the first paragraph. If you are not in regular contact with the grant organization, you should introduce your organization in fairly substantial detail in the first body paragraph of your letter. For instance, provide the name of your organization, what it does, why it does it, and who benefits from your organization's work.
If you have had previous contact with the grant agency or organization, don’t rehash basic information the recipient already knows. Instead, mention any changes or developments your organization has made since you were last in contact.
3. Explain your need for the grant and its importance to your organization. Make this the central focus of the second body paragraph. Tell the recipient what your organization hopes to accomplish and what group or groups in society are the focus for your efforts. Also explain why your research, charitable effort, or venture is important and what sort of outcome you are expecting to have.
Balance optimism and realism in this section and throughout the letter. Don’t make outlandish claims like “ending poverty” with this grant. Instead, explain how the grant will help “alleviate food insecurity for at-risk children both before and after school hours.”
4. Provide a timeline and other practical details on how the grant will be used. In the third paragraph, include realistic content about the timeline your project will require, the locations you will operate in and/or impact, and similar information.
State when the project will begin and how long you expect it to run. Be as precise as possible: “If the grant is approved, we intend to operate the program from August 25, 2020 through August 24, 2021.”
Some grants are location-specific. If this is true of the grant you apply for, you will need to indicate where your organization is based, the geographic area that will be studied during your project, or the geographic area that will benefit from the project.
5. Mention how much the project will cost and how much grant money you are requesting. Be as specific as possible so that the grant organization can get an idea of how crucial its funding is. Provide this information in its own paragraph or integrated into the prior paragraph on grant use details.
Particularly if you are applying for a grant without a pre-determined funding amount, be sure to state precisely how much money you are requesting.
Be precise in your cost estimates and provide supporting documentation as enclosures in your application packet, as per the organization’s application instructions.
6. Include any additional information requested in the application instructions. The grant agency or organization may require additional information that should be included in your proposal letter, or it may require separate documents as enclosures in your packet. Refer to the application instructions carefully and frequently, and contact the organization whenever you have questions or need clarification.
Additional documents may include financial budgets, past financial records, and past records indicating the success of similar projects performed by your organization in the past.
Make sure your grant request isn’t delayed or even rejected because you failed to provide a required piece of information.

Method 2 Writing a Business Financing Proposal Letter.
1. Refer to any prior contact at the beginning of the letter. If your business is already established and has a previous relationship with the lender or funder you are contacting, be sure to mention that prior contact. This doesn’t guarantee success for your current request, of course, but it may strengthen your status as a “good bet.”
If you interacted with a specific contact at the company, mention that individual by name. For example: “Nearly seven years ago, I worked with Jane Goodson at your company to help secure the funding that got my business off the ground.”
2. Discuss the size, scope, and focus of your company. Include your mission statement and a short description of the products or services your company provides. To make your case for funding more convincing, also include details like the number of customers served, the number of employees, and information about any administrative boards.
Providing a brief summary of your business helps the funder get a better understanding of who you are, what you do, and why you are a good choice for funding.
Aim to spend 1 paragraph on this content, in most cases.
3. Pinpoint the amount of funding you need and why you need it. Take a paragraph to both identify precisely how much funding you are requesting and explain why you need financial help from the funder. Describe what, specifically, the funding will be used for.
For example: “The $50,000 loan we are requesting will enable us to expand production in our highest-profit product range and grow sales by an estimated 20% within 2 years.”
You may need to include budget data that spells out how funds have been used in the past and projections on how the funds will be used this time around. This additional data may need to be included as a separate attachment.
Regardless of how much information you include in the body of the letter itself, you should always state the total cost of the project and how much of that cost will be covered by the funder's support.
4. Explain how you will use the funding, specifically but succinctly. You need to provide enough information about how the provided funds will be used to make the prospective funder curious and excited by the prospect. Provide key highlights in a paragraph, mentioning specifics but not going into excessive detail.
This should only be a summary. With a full-scale proposal, this information can take pages. This information should take no more than a half page when writing a shorter proposal letter, however. Provide separate enclosures as needed.
5. Offer to provide additional details at the close of your letter. Since a proposal letter is shorter than a full proposal, make it clear that you are willing and able to provide additional details as requested. Do this instead of sending excessive amounts of information that has not been requested with your proposal letter.
For instance, you last sentences might read: “Should you need any further information, please feel free to contact me directly by phone or email. I would also be happy to meet with you at your offices.”
6. Include any necessary enclosures with your packet. Check over the application requirements again. If the prospective funder requires additional documentation along with your proposal letter, include it in the envelope as an enclosure. Note the enclosures in your proposal letter.
Possible documentation might include a list of board members, copies of your tax documents and financial documents, and resumes of key staff members.

Method 3 Writing a Book Proposal Letter.
1. Check the submission guidelines before starting the letter. Every publishing agency and publisher has its own set of submission guidelines. These can usually be found on the publisher's website—if not, call, email, or write to the company and request a copy of their guidelines before proceeding.
Submission guidelines outline the types of books a publisher or agent will accept, as well as the required format and content for the proposal letter.
2. Spend the first few paragraphs describing your book. Right from the start, you need to convince the agent or publisher that the book you want to submit will be successful in the marketplace. In the first paragraph, use around 300 words to write a brief but intriguing summary of your book. Write a second paragraph that describes the essentials of the book, such as genre, word count, and likely market.
If you’re writing fiction or creative non-fiction, outline your narrative and describe your main characters in the first or second paragraph.
State whether or not the book is finished at some point in these opening paragraphs. Note, however, that some publishers will not accept proposals for unfinished works.
3. Identify your expected target market and competitors. Use a paragraph to thoroughly describe the demographic your book is aimed at. If possible, provide provide statistics and make sure they address your target demographic in specific, rather than general, terms.
Perform a competitive analysis in this section. List a few main competitors to your book, explain how well these competitors do in the market, and describe why your book will offer something its competitors do not.
4. Provide biographical information, especially in relation to the book’s subject matter. Describe yourself and explain why you are the perfect person to write this book. Don’t fabricate or exaggerate details, but do put a positive spin on your personal bio.
Mention any writing experience and publishing experience you have.
Mention any experience you have with your book’s subject matter. For instance, if you’ve written a book about fashion and have experience as a fashion designer, include that in your letter.
5. Summarize your intended role in the marketing plan. Provide specific information about what your plans are concerning the promotion of your book once it gets published. Be specific, not general. Do not state what you are willing to do, but rather what you will do.
Instead of writing “I would be willing,” for example, go with “I will.”
Possible forms of marketing include professional blogs, book signings, and professional conferences.
6. Include a more detailed synopsis as a separate enclosure. You will usually need to include a 1-2 page synopsis that describes your book in fuller detail than your 300-word summary at the start of the proposal letter. Unless otherwise directed, include this as an enclosure, not as part of the main body of the letter.
Provide a full summary of the entire plot and purpose of your book. Include all the major details about the plot and significant sub-plots.
7. Enclose a sample table of contents and an extract, if requested. Some publishers expect you to send along a table of contents, an extract from the work, or both. Follow the specific submission guidelines provided by the publisher, and get clarification if needed.
If you do not yet have a table of contents, you may instead need to provide a brief summary of each chapter.
Some publishers and agents will request the first few pages or chapters of your book. Others may not specify which part of the book the extract needs to be pulled from. Regardless, the extract should be an example of your strongest writing.

Method 4 Formatting the Letter.
1. Start by placing your address at the top left of the letter. In the upper left corner of the letter, write your street address on the first line, then the remainder of your address (such as city, state, and ZIP code in the U.S.) on the second line. Left align the text (here and throughout the letter) and single space between lines.
You do not need to include your name or title in the return address, since this information is provided in the closing section.
Do not type out the return address at the top of the letter if you are using paper with a formal letterhead that already includes the address.
2. Include the current date below your address. Double-space after the return address and type the current date in "month-day-year" format in the U.S., or “day-month-year” in nations that typically use that format. The month should be spelled out, but the day and year should be represented by numerical values.[
For instance, write “October 8, 2019” (month-day-year) or “8 October 2019” (day-month-year).
If you are not using a return address because your paper has a formal letterhead, the date should be the first piece of information you add at the top left.
3. Type in the recipient's name, title, and address. Double-space after the date, then use a single-spaced line for each of the following: recipient name; recipient title (if applicable); recipient street address; recipient city, state, etc.
Alternatively, you can put the person’s name and title together on one line—for instance: “Mr. Thomas Jones, Director of Operations.”
Use the person’s personal title—Mr., Ms., Mrs., Dr., etc.—if you know their preference. It’s generally acceptable to assume “Mr.” for a male and “Ms.” for a female. However, you can instead choose to exclude the personal title and write “Thomas Jones” instead of “Mr. Thomas Jones.”
The entire block should be left-aligned and single-spaced.
It’s preferable to write to a specific individual at a company instead of writing a general letter to anyone who may read it.
4. Include an appropriate salutation to the recipient. Double-space after the recipient's address and type the salutation "Dear" followed by the recipient's personal title and last name. End the salutation with a colon, not a comma: “Dear Ms. Amy Watson:”
If you do not know the recipient's preferred personal title and prefer not to assume either “Mr.” or “Ms.”, skip the personal title and use the recipient's full name: “Dear Amy Watson:”
Double space after the salutation as well.
5. Write the body of your letter using single-spaced block paragraphs. The exact content and length of your proposal letter will of course vary depending on the type of proposal you’re writing. The format of the letter should remain the same for each type, though.
Single space and left justify each paragraph.
Do not indent the first line of your paragraphs.
Double space between paragraphs.
6. Use an appropriate closing and signature. Double-space after the final body paragraph and include a formal closing, followed by a comma. Hit the "Enter" key four times before typing your full name and personal title—this blank space is for your signature.
Capitalize only the first word of your formal closing—That is, “Thank you” instead of “Thank You.”
Common closing options include “Thank you,” “Sincerely,” “Regards,” “Best regards,” and “Best wishes.”
Add a comma after the formal closing.
7. Mention any enclosures below your signature and name and title line. If you send any enclosures with your proposal letter, like a resume with an employment proposal or financial information with a business proposal, indicate this by double-spacing after your typed name and title and typing "Enclosure” or “Enclosures.”
You also have the option of listing each document you are enclosing. Use the following format: “Enclosures: resume, writing sample, 3 letters of reference.”
8. Review the letter for spelling, grammar, and formatting errors. Run your finished letter through a spell-check program, but don't stop there. Read it out loud to check for any awkward phrasing or grammar errors. If possible, have someone else read through it as well, since they may spot errors that you've missed.
Don't let a silly spelling error or misplaced comma reduce the impact of an otherwise carefully-crafted letter. Proofreading is important!

FAQ.

Question : How do I write a proposal for a musical tour?
Answer : dentify the potential donors and outline your plans for the tour, including the bands involved, the venues where you will be playing, and an estimate of the upfront costs and potential profit. If this will be for charity, clearly identify the cause.
Question : How do I write a proposal letter to the ministry of safety, wanting to supply them with stop signs and police gear?
Answer : A proposal is generally understood to mean something the receiver has not yet thought of. "Dear city council, after reading your urban planning blueprints, I propose to plant more trees" rather than "I see you're looking for trees and I want to sell you some." Governments are typically bound by public tenders when they buy equipment, so if you want to sell signs and gear, you have to submit your offer when they issue a tender and hope yours is the best of all offers received.

Tips.
If someone else typed the letter for you, double space after the enclosures line and include their initials. For example, add “HU” if Hilary Underwood typed the letter for you.
April 07, 2020

FAQ Best degrees to make money

What's the best major to make money?
Below Highest paying college majors
Engineering. Those of you who majored in engineering are expected to start your careers with the highest salary of the bunch at $66,521—and a healthy job market, too. ...
Computer science. ...
Math and sciences. ...
Business. ...
Social sciences. ...
Humanities. ...
Agriculture and natural resources. ...
Communications.

What majors are most in demand?
The Most In-Demand Degrees in 2019
Computer science—61 percent.
Engineering—58 percent.
Business—57 percent.
Communications (including public relations and advertising)—52 percent.
Arts, humanities, and liberal arts—47 percent.
Science—45 percent.
Data analytics—45 percent.
Education—39 percent.

What majors pay the most?
Here, then, are the top-paying majors overall:
Petroleum engineering. ...
Pharmacy, pharmaceutical sciences, and pharmaceutical administration. ...
Metallurgical engineering. ...
Mining and mineral engineering. ...
Chemical engineering. ...
Electrical engineering. ...
Aerospace engineering. ...
Mechanical engineering.

What degrees pay the most?
The Highest-Paying Bachelor's Degrees
Chief Executives. ...
Computer and Information Systems Managers. ...
Architectural and Engineering Managers. ...
Marketing Managers. ...
Petroleum Engineers. ...
Airline Pilots, Copilots, and Flight Engineers. ...
Financial Managers. ...
Natural Sciences Managers.

What jobs will be in demand in 2020?
The following examples represent several existing jobs that may be top careers for the future.
Solar Energy Technician. ...
Wind Energy Technician. ...
Nurse Practitioner. ...
Software Developer. ...
Physical Therapist. ...
Registered Nurse (RN) ...
Health Services Manager. ...
Data Analyst.

What should I study to earn a lot of money?

It's no secret that some majors make more money than others and I was curious to see exactly what majors make the most.
Medical/Health Majors. PayScale estimates the average salary of a Radiologist to be around $290K a year. ...
Engineering. ...
Computers, Statistics, and Mathematics Majors. ...
Architecture. ...
Business. ...
Social Sciences.

What majors have the highest starting salary?
10 College Majors With the Best Starting Salaries
Mechanical Engineering. Median starting salary: $65,619. ...
Mathematics & Computer Science. Median starting salary: $66,499. ...
Materials Engineering. ...
Systems Engineering. ...
Aerospace & Aeronautical Engineering. ...
Electrical Engineering. ...
Computer Engineering. ...
Chemical Engineering.

What is a good starting salary for a first job?
Here are the best starting salaries for new college grads
Job Title Degree Needed Median Starting Salary
Chemical Engineer Chemical Engineering $70,300
Marine Engineer Marine Engineering $73,900
Economist/Mathematician Economics/Mathematics $60,000
Geophysicist Geophysics $54,100

Do you need a degree to be rich?
A College Degree is Beneficial, but Not Always Required. It's true that some jobs require a degree. Jobs in science, engineering, and math often require at least a bachelor's degree — and you can often find a pretty good job with such a degree.

What is the highest paying job right out of college?
Put yourself on the right track with one of the 11 highest-paying jobs straight out of college:
Engineer.
Network Systems Administrator. ...
Internet Marketer. ...
Financial Analyst. ...
Pharmaceutical Representative. ...
Web Designer. ...
Nurse. See the Jobs Rated Ranking for Nurse. ...
High School Teacher. See the Jobs Rated Ranking for Teacher. ...

What is the highest paying job out of college?
25 Highest Paying Careers for College Graduates
Petroleum Engineering. Average Salary: $102,300 to $176,300. ...
Actuarial Mathematics. Average Salary: $60,800 to $119,600. ...
Nuclear Engineering. Average Salary: $67,000 to $118,000. ...
Chemical Engineering. ...
Electronics and Communications Engineering. ...
Computer Science Engineer. ...
Aerospace Engineer. ...
Electrical Engineer

Find More Best degrees to make money
May 25, 2019