Euro Currency Profile (Part I)

By Ahmad Hassam

EU has emerged as a major global political and economic power block in recent decades. The European Union consists of fifteen member countries that include the Netherlands, Portugal, Spain, Sweden, France, Germany, Greece, Ireland, Italy, Luxembourg, Austria, Belgium, Denmark, Finland and the United Kingdom.

Out of these 15 countries, 12 common currency countries constitute the European Monetary Union (EMU). Except Denmark, Sweden and United Kingdom, all these above countries share the common currency Euro. These 12 countries share a single monetary policy dictated by the European Central Bank (ECB).

The EMU is the worlds second largest economic powerhouse after the United States. EMU has a highly developed and efficient fixed income, equity and the futures market. This makes EMU the second most attractive investment market for domestic and international investors.

US assets have had solid returns historically. United States absorbs something like 70% of the total foreign savings as a result. In the past, the EMU had difficulty in attracting foreign direct investment or large capital inflows. The primary reason was the United States. The present global financial crisis has hurt the US and EU economies deeply. It is expected that a major restructuring of the global financial system will take place eventually that makes EMU far more attractive.

However, the Euros importance is expected to increase with the introduction of the Euro and the EMU beginning to incorporate even more members in Eastern Europe. The capital flows to Europe is expected to increase.

EMU is in fact a trade driven and a capital flow driven economy. Trade is very important to the national economies within EMU. Demand for Euro is expected to continue rising with foreign central banks expected to diversify their Euro reserve holdings even further away from US Dollar. In fact Euro provides a hedge against US Dollar reserves. If the EUR/USD pair goes up, it means US Dollar is losing value and if it goes down, it means US Dollar is gaining strength.

EU exports comprise almost 20% of the world trade. While EU accounts for only 17% of the world imports! Because of the size of the EMUs trade with the rest of the world, it has significant power in the international trade arena. Unlike United States, EMU does not have large trade deficit or surplus.

Both EU and the United States are two very important members of the World Trade organization (WTO). United States is the largest trading partner of EU. The formation of EU allows individual member countries to group as one entity and negotiates on an equal playing field with the United States. International clout is one of the primary reasons in the formation of EU.

Leading import sources for EU are China, Switzerland, United States, Japan and Russia. Leading export markets for EU are the United States, Japan, Poland, Switzerland and China.

EU is primarily a service oriented economy. Services account for more than 70% of the EU economy while manufacturing, mining and utilities account for around 20% of the EU economy. Large numbers of EU based companies concentrate their research, design, innovation and marketing part of the activity in EU while outsourcing most of their manufacturing to Asia.

Most international trade transactions involve the British Pound, the Japanese Yen and the US Dollar. It is important for most of the countries to hold large amounts of reserve currencies to reduce exchange rate risk and transaction costs. - 23159

About the Author:

Mr. Ahmad Hassam has done Masters from Harvard University. He is interested in day trading stocks and currencies. Try Strignano's Forex Signals free. Discover a revolutionary Forex Robot Trading System!

Kinds of Employer-Sponsored Retirement Plans

By Doeren Mayhew

Many employees are offered with a variety of retirement plans to choose from on a platter by the employer. The selection must be based on the basis of the circumstances of the employee and what they employer has to offer. Some of the more popular methods are mentioned below:

401(k) The 401(k), 403(b) and 457 plans derive their names from the Internal Revenue Code sections. While 403(b) plans are similar to 401(k), only tax-exempt organizations are eligible for the same. 457 plans, on the other hand, are for governmental entities. The employees are given the chance to defer tax on a portion of their income by contributing the amount to a fund for retirement set under the plan. Employers providing 401(k) or 403(b) plans may hand over the option of a Roth version.

Typically, the legal restrictions to the annual contributions that can be made under these plans are higher than those imposed by IRAs. Moreover, employees aged fifty or above are given the additional option to make up catch-up contributions. Others enjoy an equivalent contribution by the employer, making it virtually free money!

401(k), 403(b) and 457 plans are expected to follow the minimum distribution rules similar to the IRAs. However, the difference lies in the fact that under certain conditions, you can continue to contribute to these plans even after you turn 701/2.

Solo 401(k) plans An individual who is self-employed can take advantage of the solo 401(k) plans. What was earlier denied is now offered by merging the features of 401(k) with other plans to assist in saving more for retirement.

Under it, a self-employed individual can add an amount up to the 401(k) limit including the catch-up amount wherever applicable, along with an additional figure that can be contributed to a SEP IRA. The solo 401(k) is applicable to those in the self-employed business who do not have employees. The presence of employees calls for the adoption of the traditional 401(k) plan. The plan also calls for the generation of income that can cover the amount of contribution, or else the administration and the cost of the plan will be lost.

SIMPLE IRA: SIMPLE (Incentive Match Plans for Employees) IRA plan is a scheme meant for employers with less than hundred employees. Under the plan, the employer is expected to make a contribution equal to that made by the employee or up to a certain limit, typically 3%, or a flat rate of 2% irrespective of the contribution by the employee.

The requirements imposed by the law on the contribution ceiling and the catch-up amount are lower than for 401(k) plans. Though the SIMPLE IRA rules and SIMPLE 401(k) plan rules are similar, the minor differences make the SIMPLE IRA preferable. For example, while limited testing is necessary for SIMPLE 401(k), discrimination testing is not called for in SIMPLE IRAs.

Defined contribution plans: It includes the profit sharing and money purchase plans. The general rules that restrict the employee and employer contributions are different under the defined contribution plans. Where the employer plans and that of the employee are merged, the employee's annual contribution excluding any catch-up amount pulls down the contribution made by the employer.

A defined contribution plan that is ideally suited for the owners of the closely-held business entities is the ESOP.

Defined benefit plan: Though not common as earlier times, one can still find the defined benefit plans even today. Under the plan, the employees are prevented from making contributions and the entire risk of the defined benefit plan is shouldered by the employer. The employer guarantees the annual retirement benefit to the employee under this program. While a defined benefit plan funds is often pooled, the defined contribution plan funds are generally segregated by the employee.

A well-structured defined benefit plans is more expensive to initiate, even though they may permit business owners to add significantly more than the customary defined contribution limits. It is on account of the fact that the contribution amount is defined by the benefit it has to generate. Understanding the income that gets generated out of the fund is less significant when compared to recognizing the factors that may affect the future inflow of benefits. Remaining knowledgeable about these basic facts can assist in making the best decision regarding retirement plans. - 23159

About the Author:

This data is distributed for informational purposes only, with the understanding that Doeren Mayhew is not rendering legal, accounting, or other professional advice or opinions and assumes no liability in connection with its use. Please contact Doeren Mayhew for more information.

Wonderful Methods To Getting A Home Rented Quickly

By Connor Sullivan

For most individuals, letting a home is a great way to do business and gain extra income. It can be quite a difficult task to rent out the family home. People living in Rhode Island may choose property management RI or RI property management to look after rental needs. Additionally, there are numerous other suggestions that individuals can follow in order to let their houses without difficulty.

A wonderful professional can be of help in looking for a trustworthy tenant. Agents do charge fee but they have a list of promising tenants ready. Without a professional, it will be hard to carry out credit checks and the professionals can also be asked to see the testimonial as well. When an individual tries to let the premise by himself, then it normally takes couple of months to get hold of the right tenant. However, when this task is designated to agents, they look for tenants quickly and landlords can also be assured of the tenancy contract as well.

Secondly, it is essential to take out expensive items from the house which is probable to be damaged or destroyed. Majority of the tenants have their own items and TV and they should be advised to utilize their own. If the homeowner decides to include costly products together with the house, then he will be the one responsible for replacing the accessories and paying for the fixing job. Additionally, if the tenants use their own, they will bear all the costs of repair and the homeowner will not have to be bothered. Another thing is that, the items which do not belong to tenants are most likely to get destroyed easily so it is important for the landlord to remove those items before letting the house.

Furthermore, the house needs to be maintained before it is been rented out. It is essential to keep the home in good shape so that the tenants are attracted quickly and they don't mind paying the needful amount of rental. However, all the safety aspects of the premise including electricity and gas has to be checked before the house are occupied. All the things need to be in working condition and the homeowner should acquire safety certifications as well. Economizing on safety concerns is not recommended and it is the responsibility of the landlord to make sure everything is up to standard. The landlord should also anticipate some wear and abrasion after the tenants vacate the premises. For that reason, they need to refurbish the home and do the maintenance work again before the next tenants come.

It is not a wise decision to use personal judgment in selecting tenants. The easiest way to be satisfied is by making the tenants fill out application form in which they will be giving their identification, credit status and rental history. After the documents are received, the references can be confirmed and the landlord can be certain they are trustworthy people and do not have immoral records. These basic suggestions are necessary for getting the reliable tenants who will not only take care of the house, but also give a fixed rental income. - 23159

About the Author:

Connor R. Sullivan recently met with an expert in property management RI to help him find office space in the area. He purchased an office building with RI property management company last month.

Online Forex Resources Offer Many Forex Trading Tools

By John Eather

There are many online forex resources that can help you make even more successful trades then ever. Forex trading is based off of foreign currencies and is a unique market. It is possible to trade on the forex market at anytime and from anywhere, as the market is never closed. By following trends and creating your own system you can successful use the forex market to make money.

There are many websites that offer forex platforms and articles that offer tips and advice. A website that offers advice and an automated trading service is ZuluTrade. ZuluTrade is a good site for any forex beginner as it has a low minimum deposit and also has a free demo so you can devise your own system without spending any money. Take some time and learn the ins and outs of the forex market and then begin trading in earnest.

Cashback Forex is an exceptional online resource that is regulated and licensed by the NFA, FSA and CTFC to name but a few. You can earn excellent cash when trading through them, as they do not work with brokers. Brokers will require their cut so you will save more by not having to pay a broker fee.

Easy Forex has locations around the world and can personally manage your accounts either through e-mail, advanced chat or phone. They have their own trading platform that can provide forex training. You do not need to download any software, just log into your account. You can make a deposit using your credit card and can start trading with a minimum of $25. If you are interested in a forex-trading platform then you should look into easy Forex.

Besides platform and advice many online forex resources include calculators that can give you risk assessment and possible profits on a trade. This works by previous analysis of trends in the market and applied to a calculator that gives you the best information based on the past. - 23159

About the Author:

Want to find out more about oonline forex resource, then visit John Eather's site on how to choose the best forex trading robot for your needs.

Learn Currency Trading Easy As Pie

By Scott McDonald

Trying to learn currency trading when starting out was difficult for me. That is until I discovered the scalping method. Scalping is one of the best trading styles for picking up quick. In a matter of weeks one could be ready for live trades. After learning about the scalping method and incorporating this one method that the big traders use the profits started to flood in.

When learn currency trading? At first I only spent a few hours here and there on my forex. This was soon to end after realizing that I needed to put more time into it to get any kind of results. Dedication took over, and results started accelerating. Once a trader realizes that they need to keep them self in a hardcore trader mindset and put time in, their success will come. Adding this one method to my trading and being dedicated resulted in my trading account doubling in a month!

Where can I learn currency trading when there are so many sources to learn from? This can sometimes be a hard obstacle for a beginner. Good information on the internet can sometimes be hard to find, especially if it has to do with making money. The big traders never like to give out their tactics and they pretend that no one knows about them. Once I discovered this one dominating method that they use, I put it to the test in my scalping. In the first two weeks I ended up doubling my trading account!

Attempting to learn currency trading when first starting off was difficult. That was only until I learned forex scalping. The forex scalping trading style has to be one of the best to pick from and can be learned quick. In just a matter of weeks a new trader could be ready to go live. Once I learned the scalping style of trading and I incorporate this secret method the gurus have used for years, the profits started to ski rocket!

Finding how to learn currency trading for a steady income is challenging with so many options. There are many ways out there that can make money in the same market, but it is something different to have a method that consistently works. After discovering the shocking method that the pros have been using for years I had to test it out. After a few weeks I doubled my trading account! There was no turning back. - 23159

About the Author:

If your trades aren't producing the cash you need, you must check out how the "Big Wigs" Learn Currency Trading and dominate! Stop letting the "Big Wigs" feed you BS, take action today and discover untold secrets to Learn Currency Trading today!