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Best Dividend Investing Strategies for 2021

A dividend strategy is a strategy that can give you some potential profit. Buying dividend stocks is a great way to earn some extra profit. Stocks that pay out dividends are usually less risky, but still, if you don’t know what you are doing dividend stocks can be very risky.

Investors are always looking for the best dividend investing strategy that will generate a steady income through stock dividend payments and to build up their portfolios. Also, it is important to know that there are different dividend strategies for those who want to invest.

What are dividend stocks and how often do dividend stocks pay you money?

Dividend stock is the piece of a company’s earnings that they pay out to their shareholders. Usually, these are well-known companies with a clean record of distributing a small portion of their earnings to the shareholders. These distributions are called dividends and can be payout in two forms: cash or stock.

Dividends are seeing as a reward to its shareholders for investing their money in the company’s equity. Although the major profit that a company is making is kept in the company, a small portion of the earnings is distributed to the shareholders as a dividend. It is important to note that dividends earnings are tax-free.

Companies pay out dividends on a regular basis: monthly, quarterly, or annually. Usually, the company will announce upfront when the dividend will be paid. The amount of dividend payment and the payout rate is determined by the company’s board of directors.

The safety of your dividends payouts is measured with the dividend payout ratio. Investors often look for payout ratios that are 80% or less. If the payout ratio is good sometimes investors reinvest their money to buy even more shares of the company. This process is called the DRIP – dividend reinvesting plan.

But the choice is yours. You can also decide to buy stocks at a different company, save the money, or spend them.

Another benefit of stocks that pay out dividends is that you would receive money even if the stock price goes up or down. Of course, you should have in mind that this only applies as long as the company distributes them.

Advantages and disadvantages of dividend stocks?

Here are the pros and cons if you are interested in investing in dividend stocks that can help you to make a decision. We have summed up five advantages and five disadvantages that can help you create the best dividend investing strategy when it comes to investing in dividend stocks.

Advantages of buying dividends stocks

Passive dividends income stream – you receive money that you can reinvest, spend, or save it.

Solid total investment return – often, with time the price of dividend stock will rise

Dividend reinvestment for compounding returns – reinvesting is a nice strategy you can take advantage of compounding returns

Hedge against inflation – dividend stocks are offset inflation and will protect the purchasing power of your money in case of an inflation

Preferential tax treatment – dividend stocks are tax-free

Disadvantages of buying dividend stocks

Tax inefficiency

Investment risk – investing in dividend stocks comes with higher risk when compared to some other investment that can generate income like deposits, bonds, or saving accounts

Sector concentration – when investing in dividends you must pay attention to dividend stock portfolio construction

Dividend policy changes – dividend policy changes by the company board can be very damaging for you as an investor

 Investment research and knowledge – learn more about the cons of finding dividends stocks, analyzing dividend stocks, constructing a dividend portfolio, monitoring dividend stocks

How to choose the right dividend stock?

When it comes to choosing the right dividend stock is important to know which companies offer dividends that increase every year. This is a great way for you to protect your assets from inflation. Stock that pays dividends is a great passive income that will grow with time.

Well-established and bigger companies have a higher chance of paying dividends. This is because they have a smaller need to reinvest money in their company and they want their shareholders to be satisfied. Usually, these companies are banks, financial institutions, pharmaceuticals, healthcare facilities, utilities, and oil and gas companies.

Startups and companies who are on rising tend to invest all their profits into growing and expanding. This is the reason why they are not offering dividends payments.

So to summarize before buying dividend stocks these are some things you should have in mind:

Find a dividend-paying stock

Evaluate the stock

Decide how much stock you want to buy

Best long-term dividend stocks

The best dividend investing strategy in order to build your wealth is to buy dividend stocks that grow in time, are stable, and pay regular dividends in time. These are the 10 companies to buy dividend stocks from and to hold them forever:

American States Water – a company that provides water and wastewater serves to the US military

PPG Industries – the number 2 company in the world for paint and coatings

Parker-Hannifin – the biggest company in the world for motion and control technologies

Johnson & Johnson – a healthcare company that generates over $1 billion every year in sales

Lowe’s – big player in the home-improvement industry in the US

Procter & Gamble – consumer products manufacturer with an enormous portfolio of products

Coca-Cola – the giant for beverages

Microsoft – one of the largest companies in the world

Apple – tech giant with an extremely rapid growth

Verizon – company for wireless communications and high-speed internet solutions responsible for the development of 5G

Other excellent companies who pay regular dividends that you need to consider are PepsiCo, Realty Income (great real estate investment trust), Target (a company that sells products that people need), Welltower (another great real estate investment trust), Cardinal health (company for healthcare services and products), ABM industries incorporated (provides facility solutions in the US), Air products and chemicals, Inc., Raytheon technologies corporation (aerospace and defense company), The Clorox company.

These are just some of the companies that have a great payout ratio for paying dividends. There are a lot more companies with excellent price and payout ratios. So make research and choose wisely where to invest your money.

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Best Investment Strategies to Beat Inflation in 2021

The most familiar word in the economy is certainly inflation. Inflation has been a problem for countries for over 50 years. Bankers and economists are always trying to keep inflation under control. On the other hand, politicians use inflation to win elections. They make promises to fight and eliminate inflation.

So in this article, we will go deeper into inflation and we will show you what inflation is and why it is very important. Also, you will learn about the best inflation strategies in your fight against inflation.

What is Inflation and how does it affect your savings?

Inflation happens when the price of goods and services increases in a certain period of time. You need to make difference between just a regular price increase and inflation because there is a significant difference.

Inflation doesn’t come up at once and when the price of some goods and services go up. For example, if you go to your local store and buy eggs for $3 dollars and then the next week the same eggs are $5. This isn’t an example of inflation, it is just a fluctuation in prices for particular goods in the market.

If you see it from an economics perspective, inflation is when you see the bigger picture. So if we have an increase in the prices for many different products like gas, milk, college costs, and many different other goods and services.

Some economists say that a little bit of inflation can be a good thing because the economy can slowly increase the prices and companies can increase the wages.

High inflation means less spending power. This means you should find strategies to invest your money because your money will start losing value and you will lose purchasing power. Usually, an equity investment is a good way to save your money from inflation.

Although, when there is high inflation is seems like it is wrong to save some money, it can be wise to build up an emergency fund just in case.

What Do Successful People Invest In to Beat Inflation?

Warren Buffett is a legendary investor who is now 90 years old. He has been reading about inflation for a long period of time. So here are some investment strategies that beat inflation from Warren Buffett and how to make your money work for you.

Invest money only in good businesses that have low capital needs

Search for companies that can raise prices in a period of high inflation

Take a closer look at Treasury Inflation-Protected Securities (TIPS) – investment endorsed by Warren

Invest in your talents and try to be the best at what you do

Stay away from traditional bonds

Track your expenses with some app to know how much you are spending

Invest in stocks or real estate.

Top 5 investing strategies according to Donald Trump:

Always push yourself until you reach your goal. Set your mind to a strategy for what you need.

Invest in stocks, bonds, and gold, but be prepared for the worst outcome

Plan your spending, don’t spend more than you need to.

Learn more about equity and bond markets

Get the best deals possible when investing in real estate

Tips on how to profit from inflation by Robert Kiyosaki:

Invest in commodities and energy products

Don’t save money

Buy real estate

Spend money in buying precious metals

Types of investments that can beat Inflation

Here is the best type of investment strategies that beat inflation in 2021:

High-yield saving accounts

Pros: Your money is insured by the government, so basically this means you can never lose your money.

Cons: Your money can lose purchasing power.

Saving Bonds

Pros: There is a fixed rate and plus inflation rate you earn for your money.

Cons: Small return and also your money will lose purchasing power.

Certificates of deposit

Source: The Balance

Pros: The bank will pay you a set rate of interest after the end of the term decides.

Cons: If you withdraw your money early from the decided date you will lose the interest you earned.

Money market fund

Pros: You can get your money every time you want

Cons: Money market funds are less safe than High-yield saving accounts.

Corporate bonds

Pros: Buying quality bonds from large companies can earn you high interest rates.

Cons: Investing in corporate bonds can be a little bit risky if the company fail to make their promises.

Dividend-paying stocks

Pros: Stocks that pay out dividends are less risky and are considered safe.

Cons: The risk of a company going bankrupt.

Preferred stocks

Pros: With preferred stocks, you will get a regular cash payout.

Cons: They are riskier than bonds.

Money market accounts

Pros: High interest rates.

Cons: The only risk with money market accounts is if the inflation rate is higher than the interest rate, so basically this means you will start losing money.

Fixed annuities

Pros: It is a great way to earn a fixed amount of money.

Cons: The contracts for fixed annuities are tricky and you must read them carefully.

Conclusion

Inflation is when your money starts to lose value. This can happen if the prices of goods and services increase dramatically or because the money supply has surged. It is pretty devastating happening for consumers and investors, so you need to be ready if there is high inflation and to prepare a strategy.

So, if you have concerns about inflation, then you should consider taking notes from some of the most successful people and how they cope with inflation. We hope that with this article we helped you to learn more about inflation and which inflation strategies to use in order to save your money.

The post Best Investment Strategies to Beat Inflation in 2021 appeared first on Business Border.

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Everything You Need to Know About Ethereum 2.0

Ethereum was founded in 2013 and up today is considered the second most popular cryptocurrency after Bitcoin. Ethereum 2.0 is based on this popular crypto and it is an improvement in many different levels.

We have all been excited about the Ethereum 2.0 launch. So, let’s have a closer look at what will be the newest changes and the upgrades planned for Ethereum 2.0.

What is Ethereum 2.0?

Ethereum 2.0 (ETH 2.0) is an improvement to Ethereum in many different ways. The main goal of Ethereum 2.0 is to improve the capacity of Ethereum for transactions, to have fewer fees, and to be more durable. To achieve this Ethereum will change the current mechanism from proof-of-work to proof-of-stake.

Basically, this means that Ethereum 2.0 will represent the new better consensus model of Ethereum, which will allow faster transactions and fewer fees. Also, this model will have the option to ‘stake’ your holdings and earn rewards by doing it. This will work in a similar way to other famous exchanges like Binance and Coinbase.

The new improved Ethereum 2.0 will have the ability to process more than 100.000 transactions per second. Another great thing is that with the reduced cost for transactions Ethereum 2.0 will be more practical to use for average people.

What are the main changes?

There are a couple of upgrades that are going to be implemented in Ethereum 2.0. These are the major ones that will greatly improve Ethereum.

Transition to Proof-of-Stake

Proof-of-Stake will be the primary upgrade of Ethereum 2.0 which is different from the previous mechanism used by blockchains that were proof-of-work. PoS will make it possible to make many more transactions with smaller fees.

While PoW worked with physical miners to build blocks, PoS works with stake pools and is less electricity-consuming. PoS is a great improvement because unlike PoW it is safer, it has increased scalability and it doesn’t rely on electricity and physical miners. This upgrade will allow users to stake their coins and earn rewards.

Introducing Shard Chains

Ethereum 2.0 is going to scale its capacity by introducing a new safer method called sharding. With the implementation of Shard Chains, the Ethereum blockchain will be significantly improved. Sharding will divide the blockchain into smaller parallel pieces which will be more manageable.

This will allow more transactions to be instantly processed and improve the speed of transactions. One of the founders of Ethereum said that Ethereum 2.0 will be able to handle up to 100.000 transactions per second using sharding. If everything goes smooth Ethereum 2.0 can be revolutionary.

When is the Ethereum 2.0 launch date?

The improvement and the upgrade to the new Ethereum will be in 3 phases. The first phase which is called ‘phase 0’ is already live and running. In this phase, the users are introduced to the beacon chain. Basically, this is a brand new PoS blockchain that will connect with the current chain of Ethereum in the next phase.

Ethereum 2.0 launch date for the second phase (Phase 1), which is called the merge is set for late 2021, or maybe even early 2022. In this phase, we will see a switch to the PoS consensus model where the current Ethereum network will merge to the beacon chain.

After the merge users will be able to stake their coins and earn rewards. It is also very important to say that this process will be automatic and holders don’t need to do anything.

The third and final phase (Phase 2) is going to integrate sharding so that Ethereum will have the opportunity to scale and can have a bigger transaction capacity. Shard coins will be available after the second phase, sometime in 2022.

What does this mean for the price?

There are a lot of speculations around the price of Ethereum 2.0. Many people are saying that after Ethereum 2.0 launch there will be an increase in its price. This is because Ethereum 2.0 will be available and more practical to use for the average users that don’t have a lot of money to invest.

Transactions fees on Ethereum will decrease and will allow users to move smaller amounts of value. This means that people who have less money can also make transaction fees. The biggest benefit of the Ethereum 2.0 launch will see third-world citizens, refugees, and almost 2 billion people who don’t have access to banks or similar financial accounts.

These people don’t have bank accounts and do not use any of today’s payment applications. Ethereum’s new financial system will give them the opportunity for these people to have financial accounts, loans, and many other opportunities like investment and saving. With all these new upgrades there is a possibility for Ethereum’s price to grow.

The post Everything You Need to Know About Ethereum 2.0 appeared first on Business Border.

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Tech Solutions That Every New Business Needs

New tech changes can help your business grow. Since the start of the pandemic, you need to adapt to the new technology trends in order to have a productive business. With these new technologies, you can upgrade the working in your business and reshape the work organization.

As a business owner, it is very important to keep up with the latest technology trends. If you want your business to grow and be more efficient take a look at this article and find out more about the latest tech solutions that every business needs.

5 Must-have Tech Solutions for Your Business

As the need for new technologies keeps rising there are many new solutions you can integrate into your everyday business working. Depending on the need of your company, whether to increase productivity or to implement better software for communication you can choose the tech solution you need.

Here are the latest technology trends you need to watch out for:

1. Software tools for remote working

Although remote working has been a possibility in previous years, now with the pandemic is a must option for businesses to normally operate. Many great applications can offer you great communication such as Teams, Slack, and Basecamp.

These apps were created a while ago, but today are of essential value for every company. Remote working will also save a lot of money for the company because there will be no cost for maintaining a facility, traveling costs, etc.

New and more advanced technologies can help your business to become more competitive and also hire people from all over the world. With the current situation, the trend for remote working will continue to rise in the next couple of years.

2. Artificial intelligence

One of the latest trends in 2021 is artificial intelligence. This technology is getting integrated more and more in today’s businesses. AI provides you with a lot of options as voice assistants, chatbots, personal customer experience, get an insight into the customer desires, robots, face security recognitions, and many more options.

Even though this solution is being used by larger companies, AI will take place more often also in smaller companies. AI will help smaller companies provide better customer service for their customers and save them a lot of time.

Research showed that the biggest problem in smaller companies is insufficient time. With AI will be possible for small business to run their operations more efficiently than ever.

If your employees spend almost half of the day on manual tasks, like writing data, AI will be very helpful. Another helpful thing with AI is that you can use it to track customer behavior and to give an insight into the latest trends on the market.

Although it seems like it is a technology for the future more and more companies are starting to use AI. It is only a matter of time when AI will be integrated into every business. The main thing would be to find the perfect balance between AI and the human workforce to reach maximum efficiency.

Here are the top 50 AI Companies that will take this industry to the next level.

3. 5G technology and its importance

The rise of 5G technology, the latest generation of cellular ability, transmits data a lot faster than 4G. 5G network speed is expected to increase by 100 times their current rate.

As more and more customers are making online transactions and orders faster internet will help a lot of companies to improve their working and improve productivity. With 5G is expected companies to have better internal communication and to solve the problem with Wi-Fi connection and latency. Also, it will allow you to send large files to clients with reduced time.

This is a major breakthrough in the development of IoT (Internet of things), although it is still early for any assumptions.

4. Tech solutions for better cybersecurity infrastructure

Source: iStock

More and more small companies are being targeted for cyber-attacks. By the end of 2021, the total cost of cybercrime is expected to cost around $6 trillion and that number will rise to $10.5 trillion by the end of 2025.

This means that the primary focus of every modern company should be keeping their infrastructure safe.

With the rise of new technologies, the threat of cyber-attacks is stronger every day. Businesses need to invest a lot of money to keep their data safe, otherwise, glitches in the company can cause huge losses and can ruin the company.

5. Implement a broad project manager tool

Since the start of the pandemic, companies have started to look for software to help them improve their productivity. If you don’t implement the right project management software in your business you will face problems with productivity.

It is of exceptional importance to have a project management tool that will help your employees to communicate and collaborate. Also, your PM tool will need to have some additional features, like:

–        Comprehensive HR software with centralized information to keep track of your employees

–       Feature to track all the projects and tasks for your employees

–       Communication tool

–       PM Timelines and forecasts

–       File management

–       Performance reports and analytics

–       Inventory management tool to keep track of your products, or inventory (Cin7 and TradeGecko are great apps for this)

Conclusion

Technology is rapidly growing and companies need to invest money to improve their businesses. Business is evolving with the technology trends and owners need to adapt to these changes if they want to succeed.

Even though it is very challenging for small companies to survive in the time with the pandemic crisis some of these tech solutions are not as expensive and you can integrate them very easily. It is important to invest in the right tech solutions so that you can improve your productivity and provide a better customer experience.

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Promising NFT Projects That Can Lead to HUGE Gains

Even though the beginning of NFTs dates back to 2015, it took the industry a long time to reach global acceptance. With the technological advancements and the rise in popularity of crypto, people started to see the potential of this huge market.

It seems like NFTs arrived slowly, but are here to stay.

What are NFTs?

NFT or Non-fungible token is a new kind of digital collectibles that can make you a lot of money. Non-fungible means that the collectibles are not with equal value. For example, you can trade one Bitcoin for another, whereas NFTs each have unique characteristics and therefore different values than others.

NFTs are part of the Ethereum blockchain where each image or GIF has stored information about the purchase and the current owner of the digital file.

What Makes NFTs Special?

Owning a one-of-a-kind image from an artist is a pretty big deal. Some are also ready to pay millions of dollars just because they see a future in this technology and probably think that they would be worth more in the future.

What’s stopping people from copying the digital art sold on such platforms?

Well, nothing. Anybody can download the same image that someone paid $1 million for and store it on their computer. The truth is, you can also make a copy of the Mona Lisa and hang it on your wall, but you know that’s not the real deal.

How Much Money Can you Make with NFTs?

This year has been wild for the NFT industry. We’ve seen some amazing 8-figure sales, such as the Beeple, Everdays – The First 5000 Days which sold for $69 million in March this year.

We’ve also seen some other amazing and highly successful projects like the Bored Ape Yacht Club where the minting (starting) price for the apes was only 0.08 ETH or around $300.

After the project started getting some traction, the prices went through the roof. Especially after some celebrities like Steph Curry decided to drop $180,000 for his Bored Ape collection.

Now the lowest price for an Ape is almost 40 ETH or around $160K!

Just a few days ago, someone hit a record sale of a Bored Ape Yacht Club NFT for $2.25M.

Bored Ape #7090

This made people a lot of money, which explains the reason why everyone is looking for the next big NFT project.

Most Promising NFT Projects Right Now

The best way to make a lot of money with NFTs is to find projects that are just starting right now. After the project starts getting some traction, it may be too late (expensive) to invest in.

This is why we selected few promising projects that have great potential of becoming something big in the near future.

Super Bunnies

This is one of the most promising NFT projects that has a rather unique concept. It is based on super-hero bunnies divided into two sides 5,000 Light Super Bunnies and 5,000 Dark Super Bunnies.

The project launched on 1 September 2021, and since then it has built an impressive community.

Since Super Bunnies is a community-driven project, each NFT is a membership card that lets you participate in which direction this project will turn.

The best thing about Super Bunnies is the deflationary breeding mechanism, where people can burn three bunnies from their collection for getting rarer Tigers.

This will not only pump up the value of the rare Tiger NFT but also increase the value of the current Super Bunnies since they will become rarer.

Currently, the floor price sits at 0.1 ETH, which is an absolute steal considering the upcoming projects that the devs are working on.

The team behind the Super Bunnies is working on a couple of exciting projects like a training system where you can get EXP and level up your Super bunny.

On top of that, each bunny comes with stats like Agility, Intelligence, Defence, and Strenght that make this project even more interesting. Especially, since the devs are trying to build a game where super bunnies will battle with each other.

Last but not least, the art looks amazing!

All of these factors suggest a bright future for this project and potential gains for the investors.

Axie Infinity

This is an already popular Pokemon-type game that you can play on your smartphone or computer. You can train your creature, learn new skills, and battle computer-controlled enemies or real-life players.

What makes this game so special?

Well, the developers have found a way to incorporate NFTs into the system. So, the monsters from the game are actually NFTs that you can mint play and sell.

Axie Infinity has already built a large player base with more than 150,000 players live, and the number keeps growing.

Wanna Panda

This is a still-unreleased collection of 10,000 hand-drawn pandas that can shake the NFT space. Each collectible is one-of-a-kind that will quickly become a must-have token for NFT collectors.

The launch date is still unconfirmed, so make sure you join their Discord chat to keep up with the latest announcements. The mint price for the launch is set for 0.07 ETH and part of the money will go to charities and back to the community.

They are also planning to release merch and some interesting stuff like comics. On top of that 25% of all royalties collected through the secondary market will be used to fund the community wallet for future growth.

Wanna Panda NFTs will have 200 variations of unique traits that can be easily classified through the 5 tiers:

N- Normal (4,500)

R – Rare (3,500)

SR – Super rare (1,500)

SSR – Superior super rare (kind a weird name) (475)

SP – Special (25)

These are some of the most promising projects that might provide a great return on investment.

If you want to find the next big thing in the NFT world, make sure to do your own research before investing.

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How to Create Your Real Estate Empire?

Since forever real estate has been the road to getting rich and it still is. Today every person can go to a bank and get a mortgage. You don’t have to be high-born.

It is smart to invest in real estate because you can earn a lot of money by doing it. Maybe even you can become a millionaire.

The surprising fact is that over the last 200 years, 90% of the world’s millionaires have been created by real estate.

This fact makes the idea of building a real estate empire even more popular for entrepreneurs.

There are a lot of people who are investing in real estate, but only a couple of them can make a profit. Just like on a trade market with stock some people become incredibly rich, while others will lose all of their money.

Why Real Estate business is great?

There are plenty of reasons why the real estate business is great. You can double your money on long-term, steady income if you decide to rent, and it is a business that will never die. If you are considering investing in real estate read the following reasons and find out why this is a great idea.

With real estate you have plenty of options

Investing in real estate is great because you have more options than investing in stocks or bonds for example. With real estate, you are in control of the situation.

In other types of investments, your option is to keep or sell, but that is not the case with real estate. You can buy a property to rent it, sell it, add another house to the property, and etc. These are only a small number of your options if you decide to invest in real estate.

We all need a place to live

The demand for new properties is growing every year. When you buy a house there isn’t any risk like with other investments.

Also, you have an option to buy an apartment. The interest in apartments is growing at a fast rate. So if you decide to buy now you can sell it after a couple of years and make a profit. The return profit with real estate is guaranteed. Another bonus is that the population will continue to rise and so the real estate market.

Owning can make you rich

Owning a couple of real estates can make you rich. If you can put together the money to buy a simple studio, you can sell it a few years later with more value. After you double your money you can go on and buy a one-bedroom apartment, then a two-bedroom apartment, and the list goes on.

Buying the first real estate is crucial and can earn you a lot of money in the long term. Many people have become millionaires with real estate because the value of the property is always rising with time.

Advantages and Disadvantages of the Real Estate Business

Just like every investment, there are advantages and disadvantages when investing in real estate. Here are some of the pros and cons of investing in real estate.

Source:TheModestWallet

Advantages

Investing in real estate is easy to understand

You have direct control of your property and you have the possibility to increase its overall value

Real estate doesn’t decrease in value when there is inflation

You can make a big profit if you buy the right property

Real estate can be bought with debt and leveraged

Disadvantages

Buying real estate is usually very expensive

With real estate, you don’t have liquidity

When you buy a property you need to maintain it

Pillars of Real Estate

Just like playing a video game, you build your real estate empire by buying one property at a time. Here are the four pillars you need to be aware of before building your real estate empire.

Property appreciation

The process when a property will gain value is called appreciation. Appreciation is not 100 percent certain, but on average there is more than 3% appreciation in real estate in the USA.

Another type of appreciation is so-called forced appreciation. This is when you improve the value of the property on your own by doing renovations.

Profit

This is the money you will earn from your property. The profit varies depending on the repairs and vacancies. So sometimes you will earn more profit, and sometimes less. Profit is the most important thing in real estate.

Tax benefits

There is a true saying that rich people are getting richer and it’s true. When owning a property in the USA you have some tax benefits. The USA is encouraging people to buy properties and start investing in real estate and as a reward, you will have fewer taxes to pay for.

Rent money

If you don’t have enough money and you want to buy a property you can get a loan (mortgage) from the bank. A great thing when buying real estate with a mortgage is to get a tenant in your place. This way your tenant will pay for your mortgage.

The real estate business is one of the best passive income businesses today.

Ways to Build Your Real Estate Empire

The fastest way to building your real estate empire is to follow the four pillars we showed you above in this article. Here are other key factors to speed up the process.

Invest using a self-directed IRA LLC

Don’t stop at one property and buy plenty of properties.

Buy real estate properties with great potential for the future

Bargain to get a better deal

Bigger real estate can make you higher profits

So go out and start investing in real estate. Building an empire takes time, just be patient and the results will come.

We hope that this article helped you to get to know a little bit better the real estate business and how to invest in real estate. Who knows maybe even you can become a millionaire, or a billionaire one day.

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Characteristics of Top Class Entrepreneurs: Are You One?

Most people dream about becoming successful entrepreneurs, but many people get to cross this goal off their bucket list. There are people in the world who are just born with this kind of skills and others who must work hard to develop a particular set of skills that you need in order to become a successful entrepreneur.

Source: Oberlo

In today’s article, we will show what qualities you need to possess if you want to become a successful entrepreneur.

What is an entrepreneur?

There isn’t any precise definition, but the most accurate is that an entrepreneur is someone who can build a corporation with his unique ideas. They lead the business and know what it takes to be successful.

Often they take a great risk when trying to open a new business or organization, but usually in exchange for that risk they make a remarkable profit from these businesses.

Another definition is that an entrepreneur is someone who works for himself. Also, he/she is highly innovative and has leadership skills.

The real question is how to become a successful entrepreneur?

7 Characteristics of Successful Entrepreneurs

As we mentioned above some people are just born with this set of skills, while others have to try and develop these skills that are required if you want to be a successful entrepreneur. Here are the seven most important skills you need to possess:

Purposeful motivation and a firm passion

The first and probably the most important skill is passion. You can’t achieve anything if you don’t have a passion to reach your goals. If you possess this kind of passion, motivation will start to create a new mindset that will take you closer to your goal. If you ask every successful entrepreneur they will tell you that passion is the key to success.

There isn’t a single person on the planet who can achieve anything if he/she doesn’t have the motivation to reach their goals. Motivation will help you when you are facing problems and you want to give up. This is why a successful entrepreneur is both passionate and motivated towards their goals.

Self-discipline

This is another crucial skill of a successful entrepreneur. A successful entrepreneur can finish all the crucial tasks even he/she is feeling down. This is the recipe for success.

Self-discipline means mastering your mindset and being able to resolve all problems and finish all tasks when needed. Getting the job done is what counts. A successful entrepreneur doesn’t quit when is facing problems and doesn’t accept failure as an answer, so they keep on working to succeed.

Risk-takers

If you want to become an entrepreneur risk is something that you must take. The bigger the risk is, the bigger the reward. Have in mind that not every risk is worth taking and will reward you.

You need to be smart and plan before making any decisions. A smart entrepreneur is a successful entrepreneur and he knows when to take risks. Also, he can see when a risk can be dangerous for the company and bad for the business.

Creative and independent thinking

Every successful entrepreneur is a creative person who has lots of ideas. He has a strong mindset and can’t be disrupted by others. Usually, he thinks out of the box and always has new ideas on how to improve the business. Many times he has an idea to even start a new different business.

Persistence

Everyone fails sometimes, but you must be able to stand up and try it again. This is the quality of a successful entrepreneur. Even the most successful entrepreneurs sometimes have failures, but they are always able to stand up and try to achieve their goals.

Problem solvers

Entrepreneurs can always figure out how to achieve their goals. They are determined and want to learn how to solve problems. Problems are small obstacles in their path to success. Overcoming the problems is something that must be done. Optimism, confidence, vision, and focus are the skills that help them solve all of their problems.

Money care

Entrepreneurs must be able to understand the financial state of the company. Every business has an accountant but the entrepreneur must be able to communicate with him. For this reason, entrepreneurs usually visit online courses to improve their knowledge and money management skills. This way they will know better how to invest their money.

Bonus: Check out the rules for success from Bill Gates.

How to Become a Successful Entrepreneur?

You don’t need money to become a successful entrepreneur. There are millions of examples of how ordinary people with great, unique ideas turn out to be successful entrepreneurs. All you need is hard work and believe in yourself that you can achieve something.

Here are some tips on how to become a successful entrepreneur:

Always put focus on developing entrepreneurial characteristics

Think of an idea that people will want to pay money for it

Everyday planning and deep research is the key to success

Put your mind to the plan and don’t give up until you achieve it

Follow these steps and you can start your own business pretty soon.

Conclusion

Successful entrepreneurs build their businesses around an idea, an innovation, and they take risks in order to achieve their goals. This can help them make a profit and a growth.

If you want to be a successful entrepreneur you must develop the skills and the qualities that we have mentioned above. Continue to learn every day for the well-being of your company and also for yourself.

Still wondering how to become a successful entrepreneur? – Don’t waste too much time. Start working on your character and develop that winning mentality.

The post Characteristics of Top Class Entrepreneurs: Are You One? appeared first on Business Border.

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Negative Sides of Crypto You Should be Aware of Before Investing

As an investor, you’ve probably heard the biggest hype in terms of making money for the past year, which is cryptocurrencies. Some of the biggest cryptocurrencies like Bitcoin or Etereum went up more than 300% in a course of a year, and we had other smaller coins like DogeCoin that made many millionaires.

On top of that, we have crypto “experts” that constantly tell us that this is the future of financing and that the value will continue to go up.

If you want to start investing in crypto, the best place to start is to research this topic. Learning the basics about digital currencies will help you understand the concept and make better decisions.

Apart from the many benefits that come from this digital form of assets, such as:

High potential returns

More diversification

Limited supply

Smart contracts

Protection against inflation

Growth of the acceptance and usage

There are a few negative sides of crypto that every crypto-investor should be aware of.

Negative Sides of Crypto: Disadvatages You Should Consider

Crypto Regulations

The biggest threat to crypto is country regulations. Even though the whole idea of cryptocurrencies is to create a decentralized (not controlled by country or organization) currency, it will be hard for every government to adopt this technology equally.

It is impossible to ban cryptocurrencies like Bitcoin since it is a decentralized network that isn’t controlled by an organization. However, governments can restrict its usage by making it illegal to own or exchange.

This will potentially impact the crypto market and its value, and it is a risk to consider, especially if some of the biggest countries in the world decide to participate in such action.

Problem of Scalability

We all talk about cryptocurrencies being the future of finance, but the truth is, we are far from that point right now. If we want to use cryptocurrencies for everyday purchases, we have to upgrade this technology in order to process more transactions.

Just as a comparison:

Visa currently handles more than 1,700 transactions per second, and they claim they can go up to an incredible 24,000 transactions per second.

On the other hand, we have,

Bitcoin with only 7 transactions per second and Etereum with 30 transactions per second.

They obviously have some differences, but we are far from using crypto for everyday transactions.

That’s why many cryptocurrencies are trying to update their technology from proof-of-work (PoW) to proof-of-stake (PoS), but we are still far from using it in real life.

Volatility

Being a crypto investor is like going on a roller coaster ride. One day you are up 15% and the next day you might get a drop reaching a new all-time low.

The value of cryptocurrencies relies on many factors, such as:

Supply and Demand

Cost of production

Investors

Usability

News

Since the price of cryptocurrencies is volatile, they cannot be used as everyday currency. You wouldn’t want to buy a new car with Bitcoin just because in a month, you might be able to buy two cars with the same amount.

Cybersecurity

Since we are talking about a digital asset, cybersecurity problems are expected. Even though most crypto-networks are secured and unreachable from a hacker’s point of view, we still have the problem of breaches in individual wallets.

There are plenty of stories where hackers successfully emptied crypto-wallets running away with millions in crypto coins.

In the future, we must see more enhanced cybersecurity measures that will protect our assets. Being a technology that operates on a digital network, we might need improved security measures that go beyond those used in the traditional banking system.

Many companies are already working on a biometric process that will secure our crypto-assets, requiring a face ID or fingerprint scan. But, it is still in the development phase.

Data Loss Equals a Financial Loss

Since some of the biggest cryptocurrencies operate on a decentralized network, you cannot reach customer support if you lose your login data.

The traditional banking system allows you to have an account that is directly linked with your government documents and you can withdraw money even if you lose your credit card.

With cryptocurrencies, if you lose your login information it is very hard to restore your assets.

Conclusion

Cryptocurrencies, just like any other investment opportunities come with advantages and disadvantages. It is your job to calculate the risk you are willing to take.

Now that we covered the negative sides of crypto, it is time to find out whether or not you should invest in such assets.

The future of cryptocurrencies is still uncertain and nobody can predict the outcome. With that said, cryptocurrencies provide great benefits that will take the financial sector to the next level.

It is best to diversify your investment portfolio and start with a dollar-cost-average strategy where you’ll invest a small portion of your budget once a week. That way, you’ll reduce the risk of losing a lot of money if things go south,

The post Negative Sides of Crypto You Should be Aware of Before Investing appeared first on Business Border.

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How to Improve Brand Awareness on Social Media?

Brand awareness is a crucial aspect of every business, especially in a crowded market with a lot of competitors. However, we have a powerful tool at our disposal that can get showcase the perfect image for our brand.

Yes, we are talking about social media.

A recent survey suggests that more than 71% of small to mid-sized businesses use social media to spread the word about their products or services. This number is going to increase over time as social media grows.

Social media is a great source to boost your brand awareness because almost every person on the planet is using some kind of social media platform.

Social media can help your brand to become world-known and recognizable. A great brand can get people talking and sharing through everyday conversations. We are living in a time when social media plays a big factor in developing brand awareness.

Here are some tips on how to increase social media brand awareness.

Advantages of Using Social Media to Improve Brand Awareness

Social media can be very helpful when it comes to boosting your brand awareness. There are plenty of ways on how you can use social media to build your brand and here are some of the most important ones that can help you improve your business.

It is more economical

Advertising with social media has low costs even if you are using sponsored ads. Traditional ways for building brand awareness are more expensive and have less return on investment. This is the reason why social media must be your number one choice when it comes to building brand awareness.

Decide what strategies you are going to use

It happens to all of us to run out of ideas. This is where social media comes on stage. It is the perfect place where you can check out the latest trends. You can have a better insight into what attracts the interest of the audience and it can help you to build a better strategy.

Lead generations

Research showed that almost 70% of businesses are using social media to promote their products and grow leads. So if you want to attract more customers this is the perfect way to do it.

10 Tips On How to Increase Social Media Brand Awareness

By now if you were reading carefully this article you know the advantages of using social media. This is the reason why we decided to show you 10 of the most useful tips that you can implement in your strategy for building brand awareness starting today.

Target the right audience – This is the key factor if you want to have successful marketing. Define the people who will need your products and it will be easier for you to establish a connection with them.

Make research – Start your own research in order to find out more about your target audience and which social media platform they are using. Depending on the products you are selling you can choose the right social media platforms. You can even make surveys to get more intel.

Communicate with your followers – Everyday interactions with the followers are crucial. Being active on social media will help you gain new followers and retain the ones you already have.

Feedbacks are important – Whether it is positive or negative feedback you should always have time to hear your customers. Respond to your followers as soon as you can and show them that their opinions matter to you.

Use relevant influencers – We live in a modern time where influencers can change the opinion of other people. So choose an influencer that has the type of followers you need. When collaborating with influencers Instagram is probably the best social media platform to go with.

Set goals – Setting goals is a perfect way to know where you are at the moment. For example, set a goal to have 1000 new followers on Instagram by the end of the year.

Create creative giveaways – People just love giveaways. Think smart and make a plan on how to increase social media brand awareness with this strategy and don’t just give away stuff for free.

Your posts must be engaging – Create unique and interesting content to get the attention of the audience. Through the posts, you can build a strong relationship with the followers. Check out these tips for increasing engagement on Facebook posts.

Every social media platform needs a different strategy – Don’t post the same content on all social media platforms. Create different types of posts for different social media platforms. For example posts with more visual content are more suitable for Instagram.

Use hashtags – Believe it or not post that are using hashtags generate almost 15% more engagement than posts with no hashtags. The more hashtags you have the better.

Conclusion

Social media platforms are a great way for you to increase your brand awareness relatively cheaply. Another important thing is to build a brand that people can trust and relate to it.

This isn’t going to happen at once, but with some time and by following the tips we showed you in the article you will be on the right path to building a recognizable brand. Success and growth come with time. Keep improvising and trying new strategies to get your business growing.

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Top Tips for Reaching Early Retirement

The ultimate goal is to reach financial independence at a young age and have a stable income that will set you for life.

Commonly known as the FIRE movement or Financial Independence, the Retire Early plan inspired many debates, especially about how to achieve it.

First of all, we have to determine what is early retirement means for you. Most mistake the FIRE plan for having millions of dollars in their bank account and never working again. If that is your financial goal, awesome! You should go for it!

However, the idea of reaching early retirement is more about living your best possible life and without being controlled by money.

For some people, being financially independent means to get rid of their debt and others have an exact number in their mind that they want to reach.

There are few tips for reaching early retirement, and we are going to cover all in this article.

Start Early

Obviously, if you want to retire early, you need to start working on your financial plan at an early age. Being financially stable requires knowledge, which means that your first step should be to learn more about the subject.

Once you know your goal it is time to make a financial plan. The earlier you start your retirement planning, the easier it would be to reach your goal.

Save Money

First of all, you’ll need a stable monthly income that can help with your financial priorities. Once you start working and getting paid, it is time to calculate how much money you should spend and save.

Most experts recommend saving 20% of your income every month. Some people even decide to follow the 50/30/20 rule, where they reserve 50% of their budget for essentials like food or rent, 30% for discretionary spending, and they save at least 20%.

You can optimize this strategy to work for you but try to save as much money as possible.

Here is the expected income you should save by age:

By Age…You Should Save :301 x your income403 x your income505 x your income607 x your income709 x your income8011 x your income

Invest Your Savings

All the money you saved is no good if they are just sitting in your bank account. That’s why saving money is one of the most important tips for reaching early retirement. You have to find a way to invest your money and make them work for you. Otherwise, your savings will be destroyed by inflation and in the end, you’ll end up with less buying power.

Fortunately, few investment opportunities promise a stable annual return, much higher than the average inflation rate of 2%.

Open a Retirement Account (Roth IRAs)

Dedicating a portion of your monthly income to your retirement account can contribute a lot to your early retirement. This is where opening a Roth IRA account comes in handy. Apart from saving money, the retirement savings plan also offers tax advantages that can help towards your financial independence.

Just to get a better idea, here is how much money you can save if you allocate a portion of your budget. The example is taken from an average annual salary of $68,703 with an annual return of 6%.

If you open a retirement account at 25 years of age:

And allocate:

-5% of your annual income, you’ll give $531,607 by 65

-10% of your annual income, you’ll give $1,063,261 by 65

-15% of your annual income, you’ll give $1,594,896 by 65

If you open a retirement account at 35 years of age:

And allocate:

-5% of your annual income, you’ll give $271,565 by 65

-10% of your annual income, you’ll give $543,153 by 65

-15% of your annual income, you’ll give $814,732 by 65

High-Yield Savings Accounts

The most secure way of saving money and letting them work for you is by investing in a high-yield savings account. Most banks are government-insured up to $250,000, so your investment will be safe even if the bank shuts down.

Stocks

Stocks are a much riskier option than a standard savings account, but they do come with many benefits. First of all, dividend stocks are best for passive income and you can make a lot of money.

Generally, dividend stocks are less riskier investments than growth stocks.

On the other hand, growth stocks have a bigger potential to jump up in value.

Either option is great for reaching early retirement, and if we look at history, the average return rate of the S&P 500 is 7% annually.

Real Estate

Many benefits come from real estate investing and you can build a real estate empire that will set you up for life. Real estate assets go up in value over time and the rate statistically is much higher than inflation.

On top of that, real estate investors enjoy other benefits such as cash flow, excellent returns, diversification, tax advantages, and much more.

With that said, it is really hard to invest in real estate without a loan. This means that even if you retire you’ll still have a debt to pay. However, this wouldn’t be a problem since you’ll already have enough income from renting property.

Cryptocurrency

The not-so-new electronic-only currency is becoming more and more popular investment among people. According to a recent survey, one in ten people in the U.S has already invested in cryptocurrencies.

The future of currencies, as many people apply to it, has become more popular especially after Bitcoin, Etherium, and others reaching more than %300 return rate in the past year.

With that said, crypto-investing is probably the riskiest investment of the bunch.

Conclusion

By following these tips for reaching early retirement you can establish financial independence and never work again. The most important thing for making enough money to reach early retirement is clever money allocation.

You have to start at a young age and let the money work for you. That way you’ll build up your portfolio of investments, which will help you to retire early.

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Step By Step Guide on How to Start a Profitable T-Shirt Hustle

T-shirts are becoming more than just casual everyday wear. They represent a reflection of our personalities and interests. It is our way of showing our identity.

This is the reason why selling t-shirts is a business that is rising and more and more people are looking into this business. The trend for selling t-shirts is constantly growing and you will have to face enormous competition so be ready.

In this article, we will show how the t-shirt printing hustle really works and how to quickly earn money by doing it.  

Step-by-step Guide for Starting an Online T-shirt Business

Choose the right niche

Your online t-shirt business will work better if you choose the right niche. You can target a bigger audience will less amount of money.

Choosing the right niche is the most important thing in this business. If you want to be successful in this business you must have a great and unique idea. With the right targeting and if you have the ability to shine with your creativity, you can be very successful.

For example, try to be more specific when choosing a niche. If your category is for people who like funny slogans you can add something more like funny slogans for hot nurses, dog lovers, etc. It will be nice if you add a picture to it.

Here are some tips on how to choose the right niche:

Use the Facebook Audience insight tool

Search for popular hobbies on Wikipedia and on the Internet

Trust in yourself and in success

Choose the right material quality

Before start printing, you should choose high-quality materials for your shirts. They represent your business and your brand. It is crucial to choose high-quality materials for your t-shirt printing hustle, so make sure you find the right manufacturer for the job.

Many people make mistakes when it comes to choosing t-shirt materials. They have lower quality in order to make more money. But have in mind that low quality will encourage customers to share negative reviews for your brand and he/she will never buy from you again.

A great start will be to check out the internet and find a site with great reviews for quality shirts. We recommend you to visit T-Shirt Magazine’s. There are plenty of high-quality blank t-shirts on this site. Factors you should have in mind before buying are fit, size, material, and weight. Even it will be wise to order some different t-shirts to compare them.

Buy the necessary equipment

When it comes to buying the necessary equipment it is important to think about scalability. You don’t have to buy the best equipment on the market, just because it will take out a serious portion of your budget.

Instead, choose less expensive equipment and scale it up once you start to make a profit. The t-shirt business is a competitive niche, so making sure you have a stable income before investing a lot of money can save you from having headaches.

Depending on the type of t-shirt printing hustle, there are different tools required.

Most beginners are starting their business with only a few essentials like:

Heat press machine

A good Inkjet Printer

Cutter machine

A computer

And transfer paper

Create unique t-shirt designs

It would be a great start for your t-shirt business if you create your own t-shirt designs. Here are some tips that can help you with your t-shirt business designs.

Choose the right niche and the best-selling designs (Sites where you can find inspiration for your design: Zazzle, Redbubble, Snorg Tees, Kickstarter t-shirt campaigns, and etc.)

Hire a designer – If you are not familiar with Abode Photoshop, then hiring the right designer is a good idea.

Design communities – Dribble and Behance are great communities that you can visit.

Freelance networks – Another option is to try and find designers on Upwork or Freelancer.

Buy t-shirt designs – Although we strongly recommend not to do this you can buy pre-made t-shirt designs. Designious, Tshirt Factory, Creative Market, and Graphic River are some great websites where you can look for designs.

Mockup your t-shirts

When you have the final designs it will be logical if you can get some mockup images where your customers can see how the final design will look like when printed on a t-shirt.

There are a couple of ways on how you can get the mock-up on your t-shirts like ordering samples and taking pictures yourself or you can create a digital mock-up. Digital mockup templates are great because customers can change colors, apply the design, and have a preview of how the design would like when printed on a shirt.

Set up your online store

The final step is to create your online store. When you are finished with all the preparations we mentioned above in this article it is time to open the store.

There is a number of print-on-demand services that you can integrate with your online store, so you can start taking orders quickly. These services will print your shirts for you every time a customer makes an order.

The best part is you don’t have to purchase blank shirts and spend money upfront. Another great thing is that you can print your design on cups and other printable products. So go ahead set up your store and start selling.

Conclusion

Before you start investing money and join this t-shirt printing hustle make sure to choose the right niche and design. Also, make a thorough research about the market trends and the interest of the customers. Social media networks and other sites on the Internet are a great way for you to start the research. Always be prepared, otherwise, you will lose a lot of money.

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Best Products to Sell on Amazon FBA In 2021

Fulfillment by Amazon or FBA is a popular eCommerce business model that allows you to open a store with physical storage and sell online on the most popular platform in the world.

What makes Amazon FBA so attractive to entrepreneurs?

The fact that you don’t have to worry about logistics from storing your products to packing and shipping, makes Amazon FBA an effortless process that is great for beginners.

This means that you have more time to focus on finding trending products and advertise them on social media.

Thanks to this program, Amazon FBA sellers can make up to $250,000 per month, but it all comes down to finding the best products to sell on Amazon FBA in 2021.

How to Find Winning Products to Sell on Amazon FBA?

There isn’t a defined strategy for finding the best-selling products that work for everyone. However, there are few things you can do that will improve your chances of landing on a winning product.

Research is Crucial

The most important thing when it comes to finding the best products to sell on Amazon FBA in 2021 is research!

You cannot expect to run a successful Amazon FBA store without knowing the market and what people want. On top of that, people’s demands are constantly changing due to other factors, like the Covid-19 pandemic that shook the world.

Find Products With Less Competition

It won’t matter if you find a winning product if there is too much competition in the niche. That way you won’t make enough sales since the market is crowded with similar products to yours.

Avoid Seasonal Products at The Beginning

Seasonal products are great, and they can reach a huge amount of sales. However, if you are a beginner in the eCommerce world then it would be better to avoid such products at the start.

Seasonal products can take a huge portion of your budget, which might limit you if they don’t sell very well.

Focus on Good Margins

After all, it is all about profits! Products from different categories have different margins, which means that your portfolio of products can determine how much money you’ll make.

You should focus on a profit margin from 25-30% after everything, including launching and marketing.

Questions to Ask Yourself Before Choosing Products

Another way to determine whether or not the product you choose is good is by asking yourself few crucial questions.

What are the average monthly sales of that product? -There are few sales estimator tools like Jungle Scout or Profit Guru that can help you with that.

How many people are selling the same product? – Research your competitors and find out more about their strategy.

What is the avarage price, reviews, and sales history? – While researching your competitors, you should focus on keypoints like price, reviews, and sales history.

Are the product’s sales trending going up or down? – This will help you determine its popularity and things you could expect in the future.

Product Types to Avoid Selling on Amazon FBA

There are some product categories you should absolutely avoid. The first category you should cross off your list is heavy and bulky products that take too much inventory space.

When it comes to product size, the optimal products are those that can fit inside a large standard box of 18″ x 14″ x 8″. Also, make sure that the weight does not go over 20 pounds.

Here are some additional types of products you should avoid on Amazon FBA:

Products that have moving parts

Products with moving parts are way riskier just because more things could wrong in the assembling process or transportation.

Fragile products

Fragile products or products that could break easily also have a bigger risk of damage in the transportation process, no matter how you pack them.

Clothing

Most beginners make the same mistake of selling clothing on Amazon FBA, which is a problem due to high competition and a lot of returns. The clothing category is very delicate just because people cannot find the right size and most of them are not the same as in the picture.

Supplements and Edibles

Even though this is one of the most profitable categories on Amazon FBA, there are a lot of safety regulations and other liabilities that can spark a flame of problems. If you choose to go with this category, make sure all of your products are tested for safety and have good liability insurance.

Best Products to Sell on Amazon FBA in 2021

Health & Personal Care

The Health, beauty, and personal care product industry are on rapid growth in the past couple of years with a yearly average rise of 16.4%. Since this industry is huge, some of the best products to sell are Makeup wipes, hair trimmers, and clippers, and personal hygiene products.

Video Games and Gaming Accessories

The gaming industry is also on the rise in the past couple of years it is predicted to reach $200 billion by 2023. This opens new opportunities for gaming products on Amazon. You should consider selling consoles, gaming headgear, gift cards, games, and other accessories.

Board games & Puzzles

Obviously, Covid-19 changed our lives forever, and people avoid social interaction as much as possible. This brought new opportunities for board games and puzzles on eCommerce platforms. The board games industry is worth $7.6 billion now and it is expected to rise to $11.6 five years from now.

Fitness Items

The pro-active lifestyle is trending at the moment, and people choose to buy fitness items and do regular workouts from their homes. If we look at last year, dumbbells sold out pretty much everywhere and the price increased three times.

Electronics

This category covers a lot of different areas, which means that you need to select a particular area of interest. The electronics market offers a lot of potentials, but there is a catch. Since electronic devices are combined with different elements, more things could go wrong. This means a higher return rate, which is why it is best if you avoid this niche at the beginning.

Gardening & Home Improvement

The home improvement market is on the rise, especially after the Covid-19 outbreak. Most people started focusing on home renovations and DIY projects, which opened many money-making opportunities.

These are some of the things you need to consider if you want to find the best products to sell on Amazon FBA in 2021. The market is constantly changing, so keeping up with the latest trends is the only way to stay profitable in this business.

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How Much Money Can You Make With Dividends?

Dividend investing is one of the most profitable long-term investment strategies that can help you earn passive income without lifting a finger.

That’s why investors choose dividend investing as their primary investing strategy, and as a tool to achieve their long-term financial goals.

But in order to understand the concept of dividend investing and how much money can you make with dividends, we have to dig a bit deeper.

What is Dividend Investing?

Source: Getty Images

Dividend investing is a strategy that gives investors two sources of potential profit by investing in stocks. As a dividend investor, you can earn money when the stock price goes up, and from regular dividend payments.

Some companies choose to pay out dividends to their investors as a form of appreciation when the company makes a profit. The best thing about dividends is that you will be paid, regardless of what the stock price is.

So, you’ll put your money in stocks and earn a yearly dividend income, which sounds like a pretty sweet deal.

But hold your horses. There are some things you should consider before starting with dividend investing.

Avarage Dividend Yield

A dividend yield is a financial ratio that symbolizes the percentage of a company’s share price that will be paid out in dividends for the shareholders.

Basically, the higher the dividend yield, the more money you’ll receive as passive income.

The average dividend yield depends on the sector that the company is in, but overall, they offer similar percentages.

The avarage dividend yield for consumer goods sector is around 2.5%

The avarage dividend yield for the tech industry is around 3.2%

On avarage, companies in the financial sector have the highest avarage dividend yield of 4.17%

Source: Smart Dividend Stocks

Of course, all of this depends on which companies you choose to invest in.

Pro tip: Always make sure to go for an average dividend yield, just because a higher percentage is considered a bigger risk.

How Much You Need to Invest to Live Off Dividends?

It is time to talk numbers and find out whether or not the dividend investing strategy pays off.

Considering that the annual yield on dividend-paying stocks is not that big, you’ll need a lot of money invested to live off dividends.

The basic formula for determining how much money you need to invest is:

Annual Income You Want / Dividend Yield = Amount You Need to Invest

So, if you want to earn $1,000 in dividend income annually, you have to invest:

$30,303 in Coca Cola (Yield 3.30%)

$22,026 in Verizon (Yield 4.54%)

$18,692 in IBM (Yield 5.35%)

$13,908 in AT&T (Yield 7.19%)

Most investors choose to diversify their portfolios in different industries, which brings the average dividend yield to 4% annually.

But, how much money do you need to invest in order to live off dividends?

Well, the first thing you should determine is the amount of money you’d be happy with per year. For example, a $40,000-$50,000 annual income is enough for you to live anywhere in the world.

For example, if we take $40,000 per annum and divide that by the average dividend yield of 4% we $1,000,000.

Basically, you’ll need more than a million in order to live off dividends.

Don’t let the huge amount of money discourage you from your goals. Dividend stock investing is a long-term strategy that can be built over the course of 20-30 years with smaller investments.

For example:

If you start your dividend stock portfolio by investing $5,000 and contribute $1,000 every single month for the next 25 years, with a dividend return of average 4% and an average growth rate of your stock portfolio of 7%.

In 25 years, you will be worth $1.3 million with an annual dividend income of $52,513, or a 330% increase on your investment.

How much money can you make with dividends? – Well, you can become a millionaire, but it isn’t a get-rich-quick investment.

Advantages and Disadvantages of Dividend Stocks

Even though dividend investing is a promising strategy, you still need to consider whether or not it is a good option for you. Especially, with so many investment options up for grabs like Cryptocurrencies, Real Estate, or regular Stocks.

Check out this article if you want to learn more about Crypto Investing.

Advantages of Dividend Stocks

Advantages of Dividend Stocks

Passive Income Stream

The biggest advantage in dividend stocks is the passive income stream that is paid to shareholders. Dividends are paid no matter if the stock price is going up or down in value, which means that you don’t have to worry about its performance. There are some rare cases where companies couldn’t pay out dividends, but that is why you need to diversify your portfolio. On top of that, receiving cash income opens many opportunities. You can iter spent it, save it or reinvest it in your stock portfolio.

Solid Investment Returns

Since most of the companies that pay out dividends are big corporations, chances are that the stock price will go up in value. This means that you’ll get an additional return on investment. With that said, you have to understand that dividend-paying stocks have a smaller chance of growing in value compared to growth stocks that can go up more than 100%. In other words, dividend stocks are more stable and on average investors can expect a growth rate of around 7% annually.

Compounding Returns

Dividend investors will get the chance to reinvest their cash dividend income to buy more dividend stocks. This is a really powerful tool that is best for building wealth over the long term.

Favorable Tax Treatment

If we examine the past couple of years, we can see that dividends have always received a favorable tax treatment, compared to taxes on a regular income. Even though laws can always be changed, it is safe to say that dividend income will always have lower taxes. On the negative side, dividend income is taxed twice. First, they are taxed when the company decides to pay shareholders. The second taxation comes when investors receive their dividends.

Disadvantages of Dividend Stocks

Sector Concentration

One of the issues with dividend stocks is that there isn’t a good diversification model that will lower your risk just because most companies are clustered in certain industries.

That’s why it is really important for investors to carefully choose which stocks to buy and build a diversified portfolio as possible. That way, if one industry experiences a crash, your entire portfolio won’t be affected.

Policy Changes

You have to understand that the dividend policy is in the company’s hands, and they can always change the rules. With that said, some of the most successful companies have strict dividend policies they are obligated to follow, and they also increase the dividend over time.

Lower Growth Rate

As history suggests, dividend stocks have a slower growth rate than growth stocks. Most companies in the dividend stock sector have already reached their maximum potential, and cannot experience a huge rise in profit. That’s why dividend stocks have a slower growth rate.

Now that you know how much money can you make with dividends, it is time to do your homework and find the best dividend stocks to invest in.

The post How Much Money Can You Make With Dividends? appeared first on Business Border.

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How to Start Investing in Crypto? (Beginners Guide)

Cryptocurrency investing is the new financial trend that promises a lot, but will it actually deliver? Well, to find out we have to dig a bit deeper and find out more about the concept of investing in crypto.

What are Cryptocurrencies?

Cryptocurrency is a new technology built on the blockchain. Even though they are addressed as crypto-currencies, they are considered digital assets that have some kind of value. They work independently of the banks as a record of digital transactions.

The main thing you should know is that cryptocurrencies allow us to transact business directly with each other as buyers or sellers, without the need of a middleman, such as a bank. Without the middleman, you can eliminate the transaction fees.

Things to Consider before Investing in Crypto

The number one cryptocurrency is Bitcoin. Bitcoin first came out in the market in 2009. Since then a lot more cryptocurrencies have flooded the market. Some see cryptocurrencies as a new worldwide global currency that will replace fiat money.

If you are not familiar with cryptocurrencies and you have just started to learn about them the first thing you should have in mind is that crypto investing can be pretty hard. Although, if you play smart and make thorough research before investing it can be really rewarding.

Here are something you must consider before getting into action:

Don’t put money that you can afford to lose

Establish thorough research of the crypto market before you start investing

Know the reason why you are investing

Always double-check everything, because there are a lot of scammers in this business

There is no need to buy a whole coin – you can buy only small pieces of the coins

Bonus tip: Make sure to check out the best ways to invest in yourself.

How does crypto go up in value?

Source: Getty Images

These are the most important factors that influence the value of cryptocurrencies.

Supply and demand – The value of cryptocurrencies comes from the people. People who buy a cryptocurrency for a certain amount of money. The larger the amount of transactions is, the higher will be the value of the cryptocurrencies. There must be high demand for people who want to buy them in order to increase the value.

Cost of production and power usage – Mining and developing cryptocurrencies is not easy. It requires a lot of money and a lot of power consumption.

Usability – For crypto to go up in value people must trade with them every day. It is not enough just to buy them.

Investors – Investors have a key role in the value of cryptocurrencies. They spend a lot of money and buy a large number of cryptocurrencies. Automatically the value goes up.

Community – Cryptocurrencies must be attractive and interesting for people to buy them. They should support the cryptocurrency and promote them on regular basis.

Steps-by-Step Investing in Crypto

If you want to go to a local bank or some kind of financial institution, or brokerage firm to buy cryptocurrencies the answer is – you can’t. Because the process of buying crypto is doesn’t have any regulations and is not understood in financial institutions they choose to not work with them.

Find an Exchange

You should choose wisely before choosing a platform for buying cryptocurrencies. Because you can’t go to your local bank to buy them the choice for buying them is limited. These are the best places where you can buy and exchange cryptocurrencies.

eToro – Probably the most advanced and sophisticated platform of all. It is safe and offers one-of-a-kind investment options (Copy Trader technology).

Coinbase – It started almost ten years ago as a platform where you can trade with Bitcoin. Since then you can use Coinbase to safely trade with multiple cryptocurrencies.

Gemini – With Gemini, you can trade with cryptocurrencies but also can store them in your own digital wallet.

Unifimoney – Unifimoney is a great app to use. You can trade and store more than 30 cryptocurrencies. They also provide you with banking services.

Binance US – This is the parent company of Biance. It has the cheapest trading fees from all of the other exchange platforms. The only disadvantage is that there aren’t many trading pairs between different cryptocurrencies.

Robinhood: A broker to consider – Robinhood doesn’t charge you any commissions. With Robinhood, you can buy cryptocurrencies (Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, Litecoin, and Dogecoin) with no commission.

Wealthfront – With wealthfront you can expose (with Grayscale Bitcoin Trust and Grayscale Ethereum Trust) cryptocurrencies without actually buying them.

Create an account

To create an account for cryptocurrencies is fairly easy. To set up your account you just need to have time and patience. These are the required information you need to set up your account on the crypto platforms:

Your full, legal name

Your date of birth

Your email address

Your phone number

Your home address

At least one copy of some utility bill to the address you will write

Your social security number

Your ID, passport, or your driver license

A picture of you together with your ID

To write down why do you want to invest in crypto

Deposit money

Before start investing in crypto, you must first decide how much money you want to spend. Have in mind a couple of things before you deposit money:

Investing in cryptocurrencies is different than investing in stocks

Investing in cryptocurrencies doesn’t pay you interest rate or dividends

They are meant to be an alternative currency and not investments

Bear in mind that some crypto exchanges have fees for depositing and withdrawing money, so make sure you read the Terms and Conditions before investing.

Choose a crypto storage

There are several types of crypto storage wallets that you can choose from. The choice is yours.

Desktop wallets – They are installed on your personal computer and because of that they are safer than online wallets because. The best one for desktop users is Exodus.

Online wallets – They are easier to use but less safe than desktop wallets. The information is saved on the cloud and can be opened from any computer. The best one for online users is Trezor Model T.

Mobile wallets – This type of wallet is an app that you can install on your smart device. The best one for mobile users is Mycelium.

Hardware wallets – With hardware wallets, you can keep your private key in a hardware device, like a USB drive for example. They are safer than online wallets because the key is not stored online and only you have access to it. The best one for hardware users is Ledger Nano X.

We hope that by reading this article you will have more insight into cryptocurrencies and how do they work.

So, don’t waste any more time and go out and make your first purchase, but before you do make sure that you made enough research and remember that patience is the key in these kinds of investments.

The post How to Start Investing in Crypto? (Beginners Guide) appeared first on Business Border.

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SaaS Business Ideas to Start in 2021

The popularity of SaaS products is growing rapidly, and new technologies allow entrepreneurs to create software that can generate a lot of money only with a simple internet service.

According to Gartner’s research, the SaaS industry will be worth $143.7 billion by 2022, which is boosted by the global pandemic and companies that shifted to working remotely.

What is SaaS (Software as a Service)?

SaaS or Software as a Service is a software distribution model where a cloud provider hosts applications that serve a purpose and are accessible to users over the internet.

SaaS is one of three categories of cloud computing, alongside PaaS and IaaS. Here is a list of some successful SaaS companies, just to get a better idea of what this industry is about:

Microsoft

Shopify

Netflix

MailChimp

HubSpot

Slack

Adobe

Zoom

Dropbox

Basically, we are talking about companies that operate on the internet and offer software that sorts out some problems for the final customer.

Benefits of the SaaS Business Model

The SaaS business model comes with few crucial benefits that can boost your success, and are much better than other business models.

For example, the SaaS business model is scalable due to the ability to process high data transaction volume and often comes with several subscription models just to meet different customer needs.

But the biggest benefit of the SaaS Business model is profitability.

Compared to other internet business models like Dropshipping, offering software solutions to people significantly lowers the fixed and variable costs. In other words, you’ll walk away with a bigger profit compared to investing in actual storage, buying products, and shipping them to the final customer.

For example:

If you make $100,000 Dropshipping per year, you’ll be happy to walk away with only $20,000 considering the product cost, advertising, and shipping.

On the other hand, if you make $100,000 with a SaaS company, you’ll walk away with more than $70,000 since you don’t have any significant costs.

That’s why we decided to cover some of the best SaaS business ideas to start right now.

Let’s dig in.

SaaS Business Ideas to Start

Content Planning

We live in an era where content creation is one of the most valuable pillars of every company’s marketing strategy. Content is also a tool used by companies to fight over some internet space, which can generate more revenue for the company.

In other words, every company no matter how small or big it is needs to establish a social media presence.

Having software that will sort out every piece of content, post it automatically, and provide you with the necessary insights can be a huge life-saver. Additionally, having content planning software is much cheaper for companies, than hiring a team of people.

Team Collaboration

The digital team collaboration was accelerated by the pandemic which forced companies to work from home. In the past year, team collaboration software has become a profit-making machine for SaaS startups.

If we take Slack, for example, the numbers are mind-blowing.

More than 10 million people are using Slack every day

9 Hours is the avarage time spend on Slack

More than 3 million people pay to use their services

Slack’s total revenue last year was more than $630 million

Marketing Automation Software

Marketing businesses dominate the SaaS industry, and this has a lot to do with the rise of digital marketing and its complexity. Nowadays, digital marketing can be many things like SEO, social media, Ads, blogs, and much more.

This is where the marketing automation software comes in handy. Companies nowadays love to automate tasks like email campaigns or social media management, which is why this SaaS business idea sounds promising.

Even though there are many Marketing Automation software on the market, there is still enough room for a new business, especially since this industry is expected to grow in the future.

Health Check Software

There is no better time than right now for starting a health-related SaaS business. The pandemic changed people’s behavior making them more health-concerned, which resulted in more doctor visits and pharmacy supplements purchases.

It is a great idea to start a health check SaaS business, which will allow people to plan their next doctor meetings, or include automates suggestions based on patient’s health records or symptoms.

It should be like a personal health care consultant available on a mobile app.

Video Creation or Editing Software

Video content has been a priority for most businesses, and there is a good reason for that. Vidos are much more engaging than pictures, and they can reach a lot more organic traffic.

Creating software that is capable of creating or editing videos is one of the most profitable SaaS business ideas despite the heavy competition in this niche.

Virtual Assistant

The average salary of an experienced virtual assistant ranges from $78,000 to $130,000 per year, which is a lot compared to an online tool that can do a similar job for a fraction of the price.

No wonder why so many companies are choosing software that manages your business for you.

Bots can now execute various tasks such as team scheduling, employee management, efficiency tracking, tracking tasks, resource planning, and much more.

That’s why building virtual assistant software is another great SaaS business idea.

Accounting

It is very difficult to keep track of all transactions like cryptocurrencies, stocks, or running a business without an accountant. The method of hiring an accountant feels outdated, and more companies choose software to take care of everything.

Starting an automated accounting software is a profitable SaaS business idea, especially since more people choose self-employment as a source of income.

Such software can help people with their personal or business account management, or with tax calculations. You can also build software that is capable of generating e-invoicing just to have the full package for startups.

Conclusion

Many benefits come with starting a SaaS business, and experts say that such businesses will dominate in the future.

The only thing that people are scared of when starting a SaaS business is the technical part of the job. This shouldn’t be a problem since we live in a digital era where it is fairly easy to find the right team for every job.

All you need is the right SaaS business idea and yea are ready to go.

The post SaaS Business Ideas to Start in 2021 appeared first on Business Border.

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How Will the Presidential Elections Impact the Stock Market

The world is closely watching the presidential elections between Joe Biden and Donald Trump because the outcome can affect many things, especially the stock market.

Every four years, Americans elect a president, and many investors are trying to figure out how the outcome will affect their stock portfolio.

Are you an investor or willing to start investing in the stock market?

Here are some things you should consider about the presidential elections and how they can affect the stock market.

Stock Market Behavior During Presidential Elections

The best way to predict the effect of the presidential elections on the stock market is by analyzing the data from the past.

According to The Stock Trader’s Almanac, the first two years of a president’s term is a period where recessions tend to start. The best time to invest in the stock market is in the latter half of the president’s term.

Analyzing the numbers from the past suggests that the stock market is moving fast during the presidential cycle before losing its momentum during the election years.

Does this mean that this is not a good time for investing?

Well, it depends on the candidates running for president.

If we compare George Bush’s final year of service, the market sank, and many people lost their money.

However, this is a difficult year to predict the outcome. First of all, the COVID-19 crisis has demolished the stock market, but will the outcome of the presidential elections change anything?

Republican or Democrat?

You might favor one party over the other, but you should worry about the party that brings the biggest benefit when it comes to your finances and stock portfolio.

Past wisdom suggests that Democrats are less business-friendly than Republicans, but that should not be the case for every candidate.

If we compare numbers, since Bill Clinton’s inauguration, U.S equities experienced a 14.5% growth while Democrats control the White House. On the other hand, equities have grown only 3% under Republican control.

When it comes to international equities, we have the same situation where they outperform under Democrats.

Source: YCharts

However, stocks perform better when the results from the elections are signaling a Republican presidential winner.

Experts have mixed opinions when we are talking about the presidential elections in 2020 between Biden and Trump.

If Joe Biden is elected as president, experts predict a negative impact on the stock market and economy. However, there were similar warnings in the previous election cycle about Trump.

How does the Stock Market predict The Outcome of the Elections?

It is hard to predict the stock market’s behavior based on the results of the presidential elections. However, some indicators can help you unveil your next move.

The stock market has a remarkable ability to predict who will be victorious in the upcoming presidential elections.

For instance, if the stock market is growing in the last three months before the elections, you should put your money on the incumbent party. It is the opposite thing when the stock market loses over the last three months leading up to the election. That suggests that you should put your money on the new party.

These outcomes are based on the results from the previous 23 presidential elections, where in 14 of them, the stock market grew before the elections. In 12 out of 14 scenarios, the incumbent party won the White House.

Government Implications On The Stock Market

The candidate elected for president is not the only thing you should consider when making your investment strategy. The type of government is also an important part that can have direct implications over the stock market.

The past suggests that the stock market is doing better when the government is divided rather than united.

And there is a perfect explanation for this.

Divided power between both parties will enable free markets to flourish. Since neither party is in control, the government is somewhat neutered. This doesn’t allow like-minded people to prioritize one business over the other.

So, the outcome from this election will have specific consequences on different sectors on the market, depending on each party’s agenda and how much they control the government. So, you might be affected whether you are starting your own business or invest in stocks.

Stock to Buy Based on the Outcome of the Presidential Elections

Obviously, each candidate has direct implications on the stock market through their decisions.

For instance, if Donald Trump wins, we could expect relations with China to get even more complicated. This action will affect many companies and their value on the stock market.

On the other hand, energy investors are not excited about Joe Biden winning these elections since his campaign was focused on creating clean energy.

Either way, we selected a few companies that you need to look into based on the presidential elections outcome.

Bonus tip: Tips for attracting investors to your business.

Election Stocks to Buy if Joe Biden Wins

Tesla (TSLA)

Even though Tesla experienced the biggest loss of 21.1% on September 8, many people think that Tesla is an excellent long-term investment if Biden wins.

Tesla’s solar ambitions are going along with Biden’s strategy for clean energy.

Caterpillar (CAT)

This stock promises growth and big ROI with a win by either of the candidates. Both Biden and Trump said that they are going to focus on America’s infrastructure.

Biden said that they are going to focus on rebuilding bridges, roads, green spaces, and water systems.

United Health (UNH)

If Democrats take control of the Senate and House of Representatives, health will be their top priority.

With the COVID-19 crisis, healthcare companies are growing, but they will do much better under Biden’s control.

Canopy Growth (CGC)

It seems like Joe Biden changed his opinion about the federal legalization of cannabis just before his campaign. Now he believes that cannabis should be decriminalized in every state.

If Joe Biden wins, he will look into making marijuana legal at the federal level, which will increase the value of such companies.

American Water Works (AWK)

In Biden-Sander’s report, we can see that Biden plans to invest in America’s water and wastewater infrastructure.

American Water Works is the largest water company in America, and it will definitely grow under Joe Biden. Experts predict their annual earnings per share to grow from 7%-10% over the next couple of years.

Procter & Gamble (PG)

Many experts mentioned that if Biden wins the elections, communication services and consumer staples will grow in the upcoming years.

With that said, Procter & Gamble falls into consumer staples.

P&G is doing good until now with a 15.1% return annually and will continue with this positive trend whichever candidate wins.

Election Stocks to Buy if Donald Trump Wins

Raytheon Technologies (RTX)

Investing in stocks based on presidential elections is risky, but if Trump gets another four years, the defense industry is more likely to flourish.

First of all, Trump loves the military, and he is willing to make the market a better place for companies like Raytheon Technologies.

Deere & Company

In the previous elections, Trump talked about Deere & Company non-stop. Trump says that the core of American business is companies like Deere and Caterpillar.

Deere stocks performed great in the previous elections, and it is expected the same thing for the presidential elections in 2020.

H&R Block (HRB)

The first year into Trump’s administration, he introduced major changes to the U.S tax code. The outcome of this change resulted in simplification in the tax system for companies like H&R.

Such companies will have to submit different tax forms than your standard W2 employee. These modifications benefit HRB stock.

Microsoft (MSFT)

The latest situation with the coronavirus made people reconsider the concept of work. Such changes made companies like Microsoft to increase the value of their stocks.

Microsoft will be a good stock to buy for the upcoming period, regardless of which candidate wins the elections.

New York Times (NYT)

As you probably already know, Trump is constantly at war with fake news media. From his perspective, the New York Times is a company that produces fake news.

So, why would you buy NYT stocks if Trump wins?

Well, in the media world, “if it bleeds, it leads.” This means that companies that are criticized as ��fake news” drive more viewership. In other words, the media world loves Trump just because he makes big headlines, and the situation won’t be the same if Biden wins.

Alphabet (GOOG, GOOGL)

Alphabet was one of Trump’s biggest targets and will continue the same way if he wins the elections. There were times when Trump blasted Alphabet’s Google for election tampering, but it is something that Trump does.

Nevertheless, you should consider Alphabet as one of the go-to election stock to buy. This company is continually upgrading its services, and most of the things they offer are beneficial for today’s modern living.

The post How Will the Presidential Elections Impact the Stock Market appeared first on Business Border.

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The world is closely watching the presidential elections between Joe Biden and Donald Trump because the outcome can affect many things, especially the stock market.

Every four years, Americans elect a president, and many investors are trying to figure out how the outcome will affect their stock portfolio.

Are you an investor or willing to start investing in the stock market?

Here are some things you should consider about the presidential elections and how they can affect the stock market.

Stock Market Behavior During Presidential Elections

The best way to predict the effect of the presidential elections on the stock market is by analyzing the data from the past.

According to The Stock Trader’s Almanac, the first two years of a president’s term is a period where recessions tend to start. The best time to invest in the stock market is in the latter half of the president’s term.

Analyzing the numbers from the past suggests that the stock market is moving fast during the presidential cycle before losing its momentum during the election years.

Does this mean that this is not a good time for investing?

Well, it depends on the candidates running for president.

If we compare George Bush’s final year of service, the market sank, and many people lost their money.

However, this is a difficult year to predict the outcome. First of all, the COVID-19 crisis has demolished the stock market, but will the outcome of the presidential elections change anything?

Republican or Democrat?

You might favor one party over the other, but you should worry about the party that brings the biggest benefit when it comes to your finances and stock portfolio.

Past wisdom suggests that Democrats are less business-friendly than Republicans, but that should not be the case for every candidate.

If we compare numbers, since Bill Clinton’s inauguration, U.S equities experienced a 14.5% growth while Democrats control the White House. On the other hand, equities have grown only 3% under Republican control.

When it comes to international equities, we have the same situation where they outperform under Democrats.

Source: YCharts

However, stocks perform better when the results from the elections are signaling a Republican presidential winner.

Experts have mixed opinions when we are talking about the presidential elections in 2020 between Biden and Trump.

If Joe Biden is elected as president, experts predict a negative impact on the stock market and economy. However, there were similar warnings in the previous election cycle about Trump.

How does the Stock Market predict The Outcome of the Elections?

It is hard to predict the stock market’s behavior based on the results of the presidential elections. However, some indicators can help you unveil your next move.

The stock market has a remarkable ability to predict who will be victorious in the upcoming presidential elections.

For instance, if the stock market is growing in the last three months before the elections, you should put your money on the incumbent party. It is the opposite thing when the stock market loses over the last three months leading up to the election. That suggests that you should put your money on the new party.

These outcomes are based on the results from the previous 23 presidential elections, where in 14 of them, the stock market grew before the elections. In 12 out of 14 scenarios, the incumbent party won the White House.

Government Implications On The Stock Market

The candidate elected for president is not the only thing you should consider when making your investment strategy. The type of government is also an important part that can have direct implications over the stock market.

The past suggests that the stock market is doing better when the government is divided rather than united.

And there is a perfect explanation for this.

Divided power between both parties will enable free markets to flourish. Since neither party is in control, the government is somewhat neutered. This doesn’t allow like-minded people to prioritize one business over the other.

So, the outcome from this election will have specific consequences on different sectors on the market, depending on each party’s agenda and how much they control the government. So, you might be affected whether you are starting your own business or invest in stocks.

Stock to Buy Based on the Outcome of the Presidential Elections

Obviously, each candidate has direct implications on the stock market through their decisions.

For instance, if Donald Trump wins, we could expect relations with China to get even more complicated. This action will affect many companies and their value on the stock market.

On the other hand, energy investors are not excited about Joe Biden winning these elections since his campaign was focused on creating clean energy.

Either way, we selected a few companies that you need to look into based on the presidential elections outcome.

Bonus tip: Tips for attracting investors to your business.

Election Stocks to Buy if Joe Biden Wins

Tesla (TSLA)

Even though Tesla experienced the biggest loss of 21.1% on September 8, many people think that Tesla is an excellent long-term investment if Biden wins.

Tesla’s solar ambitions are going along with Biden’s strategy for clean energy.

Caterpillar (CAT)

This stock promises growth and big ROI with a win by either of the candidates. Both Biden and Trump said that they are going to focus on America’s infrastructure.

Biden said that they are going to focus on rebuilding bridges, roads, green spaces, and water systems.

United Health (UNH)

If Democrats take control of the Senate and House of Representatives, health will be their top priority.

With the COVID-19 crisis, healthcare companies are growing, but they will do much better under Biden’s control.

Canopy Growth (CGC)

It seems like Joe Biden changed his opinion about the federal legalization of cannabis just before his campaign. Now he believes that cannabis should be decriminalized in every state.

If Joe Biden wins, he will look into making marijuana legal at the federal level, which will increase the value of such companies.

American Water Works (AWK)

In Biden-Sander’s report, we can see that Biden plans to invest in America’s water and wastewater infrastructure.

American Water Works is the largest water company in America, and it will definitely grow under Joe Biden. Experts predict their annual earnings per share to grow from 7%-10% over the next couple of years.

Procter & Gamble (PG)

Many experts mentioned that if Biden wins the elections, communication services and consumer staples will grow in the upcoming years.

With that said, Procter & Gamble falls into consumer staples.

P&G is doing good until now with a 15.1% return annually and will continue with this positive trend whichever candidate wins.

Election Stocks to Buy if Donald Trump Wins

Raytheon Technologies (RTX)

Investing in stocks based on presidential elections is risky, but if Trump gets another four years, the defense industry is more likely to flourish.

First of all, Trump loves the military, and he is willing to make the market a better place for companies like Raytheon Technologies.

Deere & Company

In the previous elections, Trump talked about Deere & Company non-stop. Trump says that the core of American business is companies like Deere and Caterpillar.

Deere stocks performed great in the previous elections, and it is expected the same thing for the presidential elections in 2020.

H&R Block (HRB)

The first year into Trump’s administration, he introduced major changes to the U.S tax code. The outcome of this change resulted in simplification in the tax system for companies like H&R.

Such companies will have to submit different tax forms than your standard W2 employee. These modifications benefit HRB stock.

Microsoft (MSFT)

The latest situation with the coronavirus made people reconsider the concept of work. Such changes made companies like Microsoft to increase the value of their stocks.

Microsoft will be a good stock to buy for the upcoming period, regardless of which candidate wins the elections.

New York Times (NYT)

As you probably already know, Trump is constantly at war with fake news media. From his perspective, the New York Times is a company that produces fake news.

So, why would you buy NYT stocks if Trump wins?

Well, in the media world, “if it bleeds, it leads.” This means that companies that are criticized as “fake news” drive more viewership. In other words, the media world loves Trump just because he makes big headlines, and the situation won’t be the same if Biden wins.

Alphabet (GOOG, GOOGL)

Alphabet was one of Trump’s biggest targets and will continue the same way if he wins the elections. There were times when Trump blasted Alphabet’s Google for election tampering, but it is something that Trump does.

Nevertheless, you should consider Alphabet as one of the go-to election stock to buy. This company is continually upgrading its services, and most of the things they offer are beneficial for today’s modern living.

The post How Will the Presidential Elections Impact the Stock Market appeared first on Business Border.