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10 Investments You Should Know

10 Investments You Should Know

    It’s impossible to miss the fact that stocks, real estate and bonds all make for decent investments (at least most of the time). But there are so many different investment options, most of which get minimal marketing. If you want to take a look at a wider variety of options, you should be able to at least tell an American Depository Receipt apart from a Convertible Security. There are about twenty investments that any investor should at least be familiar with and the ten listed below are the first half of that list.

    1. American Depository Receipt (ADR)

    ADRs are traded on U.S. stock markets just like regular stocks, but they actually represent shares in foreign corporations. An ADR is issued by a U.S.-based bank or brokerage, which buys a large number of shares from a company based outside the U.S. Those shares are bundled into groups and then resold; they are usually labeled with a ratio representing how many shares a particular ADR represents. The sponsoring bank collects detailed financial information about any company whose shares it resells. ADRs are a relatively simple way to invest in foreign companies and avoid the administrative and duty costs of international transactions. Other countries besides the U.S. have depository receipt opportunities available.

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    2. Annuity

    Annuities provide set payments at regular intervals to their owners. You can typically purchase an annuity through an insurance company, and you’ll have several options. An annuity can either be immediate or deferred: with a deferred annuity, you will not begin receiving payments for a certain period of time. Deferred annuities are often contracted for life — they’re set up so that as long as you live, the insurance company will send you a check at a regular interval. Annuities are also either fixed (the payments are set) or variable (there is a guaranteed minimum payment, as well as payments based on the performance of an annuity investment portfolio.

    3. Closed-End Investment Fund

    A closed-end fund issues shares that are traded just like stocks but are actually closer to mutual funds in the way the are managed. Closed-end funds hold portfolios of securities — usually securities that meet very specific criteria (i.e. come from particular industries). These fund are actively managed and may hold a few investments in stocks or bonds in order to diversify, but because of their focus on particular sectors, closed-end fund issues are not considered diverse. Some closed-end funds offer dividends.

    4. Collectibles

    Collectibles can be pretty much any physical asset with a value that increases over time. While most people consider fine art, stamps and similar purchases to be collectibles, there is no strict definition that includes or excludes a particular asset. The greatest drawback to collectibles is the fact that collectibles offer no income, unlike many other investments. However, a collectible’s appreciating value often outpaces inflation.

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    5. Common Stock

    Common stock is what most of us think of when we hear the word stock: a share of ownership in a particular company. It entitles you to a portion of the company’s profits as well as voting rights. The majority of stocks traded today are common stocks. While the benefits associated with owning stock can be great, it is a relatively risky investment. If a company that you own stock in goes bankrupt, as a common shareholder, you won’t receive money until the creditors, bondholders and preferred shareholders have all been paid off.

    6. Convertible Security

    Convertible securities are either preferred stock convertibles or convertible bonds. While you would purchase a convertible bond just as you would purchase a normal bond, you would have the opportunity to convert it into common stock in the company that issued it. Depending on the terms of the convertible bond, also known as the indenture, the bond could convert into a significant number of shares. Convertible bonds do provide a small amount of income, but the real value is that the bond can be converted into common stock.

    7. Corporate Bond

    Corporations issue bonds in order to raise money: when you buy a corporate bond, you’re essentially loaning a corporation money for the length of the bond. Not only will the corporation repay you the full face value of the bond (and your loan) but it will also pay you a coupon — a predetermined interest rate paid out every six months. Corporate bonds are more lucrative than government bonds, but they are also riskier.

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    8. Futures Contract

    A futures contract is a commitment to either deliver or receive a specific quantity of a commodity during a specific month at a specific price. Most futures contract are closed out before the expected delivery date and while they can be very risky, futures contracts can also provide for a simple way to manage price risks. They can provide impressive profits, due to their higher risk factors.

    9. Life Insurance

    While life insurance may not seem like an investment on the surface, it provides a return on your monthly payments. No matter how long you may have been paying for a life insurance polity, its value is set. It’s a relatively low-risk investment because insurance is heavily regulated by the government.

    10. The Money Market

    Through the money market, you can buy fixed-income securities, primarily short-term securities that last less than a year. Unless you are able to deal in the very high denominations that most money market securities are sold in, you will likely have to purchase these securities through a money market mutual fund or bank account. Returns on money market investments are highly dependent on the current interest rate and are considered low risk.

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    Check back on Thursday for the other ten investments that you should know.

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    Last Updated on February 20, 2019

    How to Get Promoted When You Feel Stuck in Your Current Position

    How to Get Promoted When You Feel Stuck in Your Current Position

    Are you stuck in the same position for too long and don’t really know how to get promoted and advance your career?

    Feeling stuck could be caused by a variety of things:

    • Taking a job for the money
    • Staying with an employer that no longer aligns with your values
    • Realizing that you landed yourself in the wrong career
    • Not feeling valued or feeling underutilized
    • Staying in a role too long out of fear
    • Taking a position without a full understanding of the role

    There are many, many other reasons why you may be feeling this way but let’s focus instead on getting unstuck.

    As in – getting promoted.

    So how to get promoted?

    I’m of the opinion that the best way to get promoted is by showing how you add value to your organization.

    Did you make money, save money, improve a process, or some other amazing thing? How else might you demonstrated added value?

    Let’s dive right in how to get promoted when you feel stuck in your current position:

    1. Be a Mentor

    When I supervised students, I used to warm them – tongue in cheek, of course – about getting really good at their job.

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    “Be careful not to get too good at this, or you’ll never get to do anything else?”

    This was my way of pestering them to take on additional challenges or think outside the box, but there is definitely some reality in doing something so well that your manager doesn’t trust anyone else to do it.

    This can get you stuck.

    Jo Miller of Be Leaderly shares this insight on when your boss thinks you’re too valuable in your current job:[1]

    “Think back to a time when you really enjoyed your current role. I bet there was a time when this job was a stretch for you, and you stepped up to the challenge and performed like a rock star. You became known for doing your job so well that you built up some strong “personal brand” equity, and people know you as the go-to-person for this particular job. That’s what we call “a good problem to have”: you did a really good job of building a positive perception about your suitability for the role, but you may have done “too” good of a job!”

    With this in mind, how do you prove to your employer that you can add value by being promoted?

    In Miller’s insight, she talks about building your personal brand and becoming known for doing a particular job well. So how can you link that work with a position or project that will earn you a promotion?

    Consider leveraging your strengths and skills.

    Let’s say that project you do so well is hiring and training new entry level employees. You have to post the job listing, read and review resumes, schedule interviews, making hiring decisions, and create the training schedules. These tasks require skills such as employee relations, onboarding, human resources software, performance management, teamwork, collaboration, customer service, and project management. That’s a serious amount of skills!

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    Is there anyone else on your team who can perform these skills? Try delegating and training some of your staff or colleagues to learn your job. There are a number of reasons why this is a good idea:

    1. Cross-training helps in any situation in the event that there’s an extended illness and the main performer of a certain task is out for a while.
    2. In becoming a mentor to a supervisee or colleague, you empower then to increase their job skills.
    3. You are already beginning to demonstrate that added value to your employer by encouraging your team or peers to learn your job.

    Now that you’ve trained others to do that work for which you have been so valued, you can see about re-requesting that promotion. Be ready to explain how you have saved the company money, encouraged employees to increase their skills, or reinvented that project of yours.

    2. Work on Your Mindset

    Another reason you may feel stuck in a position is well explained by Ashley Stahl in her Forbes article. Shahl talks about mindset, and says:[2]

    “If you feel stuck at a job you used to love, it’s normally you–not the job–who needs to change. The position you got hired for is probably the exact same one you have now. But if you start to dread the work routine, you’re going to focus on the negatives.”

    In this situation, you should pursue a conversation with your supervisor and share your thoughts and feelings. You can probably get some advice on how to rediscover the aspects of that job you enjoyed, and negotiate either some additional duties or a chance to move up.

    Don’t express frustration. Express a desire for more.

    Share with your supervisor that you want to be challenged and you want to move up. You are seeking more responsibility in order to continue moving the company forward. Focus on how you can do that with the skills you have and will develop with some additional projects and coaching.

    3. Improve Your Soft Skills

    When was the last time you put focus and effort into upping your game with those soft skills? I’m talking about those seemingly intangible things that make you the experienced professional in your specific job skills:

    An article on Levo.com suggests that more than 60 percent of employers look at soft skills when making a hiring decision.[3]

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    You can bone up on these skills and increase your chances of promotion by taking courses or seminars.

    And you don’t necessarily need to request funding from your supervisor, either. There are dozens of online courses being presented by entrepreneurs and authors about these very subjects. Udemy and Creative Live both feature online courses at very reasonable prices. And some come with completion certificates for your portfolio!

    Another way to improve your soft skills is by connecting with an employee at your organization who has the position you are seeking.

    Express your desire to move up in the organization, and ask to shadow that person or see if you can sit in on some of her meetings. Offer to take that individual out for coffee and ask what her secret is! Take copious notes and then immerse yourself in the learning.

    The key here is not to copy your new mentor (think Jennifer Jason Leigh in “Single White Female.” Just kidding). Rather, you want to observe, learn and then adapt according to your strengths. And don’t forget to thank that person for their time.

    4. Develop Your Strategy

    Do you even know specifically WHY you want to be promoted anyway? Do you see a future at this company? Do you have a one year, five year, or ten year plan? How often do you consider your “why” and insure that it aligns with your “what?”

    Sit down and do an old-fashioned Pro and Con list. Two columns:

    Pro’s on one side, Con’s on the other.

    Write down every positive aspect of your current job and then every negative one. Which list is longer? Are there any themes present?

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    Look at your lists and choose the most exciting Pro’s and the most frustrating Con’s. Do those two Pro’s make the Con’s worth it? If you can’t answer that question with a “yes” then getting promoted at your current organization may not be what you really want.

    The two most important days in your life are the day you are born and the day you find out why. –Mark Twain

    Mel Carson writes about this on Goalcast that many other authors and speakers have written about finding your professional purpose.[4]

    Here are some questions to ask yourself:

    • Why is it that you do what you do?
    • What thrills you about your current job role or career?
    • What does a great day look like?
    • What does success look like beyond the paycheck?
    • What does real success feel like for you?
    • How do you want to feel about your impact on the world when you retire?

    These questions would be great to reflect on in a journal or with your supervisor in your next one-on-one meeting. Or, bring it up with one of your Vital Work Friends over coffee.

    See, what you might find is that being stuck is your choice. And you can set yourself on the path of moving up where you are, or moving on to something different.

    Because sometimes the real promotion is finding your life’s purpose. And like Mastercard says, that’s Priceless.

    More Resources About Career Advancement

    Featured photo credit: Razvan Chisu via unsplash.com

    Reference

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