Car loans: what you need to know

Most of the people can’t pay cash for a vehicle upfront, so whether or not they’re making down payments, they’ll likely be using an auto loan to finance their purchases. The price of the car is not the only cost to be paid, because there are additional costs, such as state taxes and registration fees. The dealership may also charge documentation and transportation fees. Without a down payment, these fees get rolled into the amount of the financing. A car loan, also known as an automobile loan, or auto loan, is a sum of money a consumer borrows in order… Continue reading

Robo advisors: fees, advantages and disadvantages

Robo-advisors have grown in popularity in the last years and the number of the consumers who have started using them to invest their money, has increased significantly. They are a particular class of financial advisors, that provide financial advice or investment management online using algorithms to automatically allocate, manage and optimize clients’ assets and in which the human intervention is minimal. To obtain information about the clients’ degree of risk-aversion, financial status, and desired return on investment, robo-advisors use online questionnaires and after this process, they allocate the client’s money in investments products. Clients can choose between offerings with passive… Continue reading

How to write your Business Plan

Many people start businesses without ever having a business plan, but without it the risks and the costs can be higher. A business plan is a written document that describes the business and it covers objectives, strategies, sales, marketing and financial forecasts. This document can help the business owner to clarify the business idea, spot potential problems, set the goals and also measure the progress. Without a business plan, it will be difficult to secure investment or a loan from a bank and it also can be difficult to help to convince customers, suppliers and potential employees to support the… Continue reading

Top 10 most expensive countries to buy a property

The housing market is subject to various housing and social state policies that affect people’s decisions about buying a house. Moreover, the market is also closely related to the banking sector and its lending activity, considering that most of the investments in immovable properties are made through loans, thus changes to the interest rate can have an impact on the entire construction sector. On the other side, changes to the price of immovable properties have a key role in the decisions taken by central banks all over the world. So, these two sectors depend on each other and influence each… Continue reading

The Black Litterman model: how to use it

The Black Litterman model was developed in 1990 at Goldman Sachs by Fischer Black and Robert Litterman and published in 1992. It is a sophisticated portfolio construction method that overcomes the problem of unintuitive, highly-concentrated portfolios, input-sensitivity, and estimation error maximization, in applying modern portfolio theory in practice. The model uses a Bayesian approach to combine the subjective views of an investor regarding the expected returns of one or more assets with the market equilibrium vector of expected returns to form a new, mixed estimate of expected returns. The resulting new vector of returns leads to intuitive portfolios with sensible… Continue reading