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Discretionary authority
When you reach this point, you will take an important decision: who will make investment decisions for your account? Usually, you will make their own investment decisions unless you give authority to your broker for it to take them for you. Discretionary authority allows your broker to make investment decisions according to what he or she understands what is best for your investment goals. Your broker will then take decisions without consumptive neither the price nor the instrument you are buying or selling.

If you decide to give discretionary authority to your account to your broker, you must do so in writing. Whether to grant discretionary authority, is of utmost importance to review and understand your monthly reports so you know you have bought and with what frequency they are making investments. Discretionary authority can be withdrawn at any time and must be in writing.

Account Types
If you’re like most investors, will open a cash account. Under this account, every time you purchase, you have the obligation to pay the entire amount of the purchase.

Another alternative is a margin account. This account lets you borrow money from the brokerage firm to buy securities. You have to pay interest on the loan. If you buy securities on margin, you know that although the value of the securities to buy down, is still responsible for paying the total amount borrowed for the purchase. The market fluctuations by implying that this is a real risk.

When you sign a contract margin, the broker is authorized to immediately sell any security in your account, without notice, to cover any shortfall that resulted from a decline in the value of their investments.

Your share certificate
Usually you have several options for the management of your stock certificates:

* Receive a certificate made in your name showing the amount of shares purchased. When you have signed the certificate, you should return to the broker to sell the stock.
* Keep the stock certificate in the name of the brokerage house. Although the certificate has yet to be signed by you before the fact, this option will eliminate storage problems.
* Keep the stock certificate to the “street name” with your broker. This term refers to the brokerage house listed as a shareholder of the corporation where you bought stock, but you, the customer is the true owner. The broker has to make us any correspondence sent by the corporation, such as annual reports and documents of powers. Remember that there is a possibility that the broker delayed the arrival of these documents into their hands. However, when you sell the stock, the transfer process easier.

Threat Levels
The new account form requires you to specify the level of risk you are willing to take to achieve your financial goals. If you do not understand some of the categories used, ask your broker. Make sure you fully understand how much risk is involved in each category.

Remember the basic rule of investment:
The higher yield potential, the greater the risk. Risk means you can lose some or all of your investment. If you are a person who likes to take risks, make sure your broker understands that in order to help you select investments that suit you best.

Remember …

* Do not make checks payable to the name of sales rep.
* Do not take a decision to invest in a product or brokerage house based solely on a telephone conversation or sales promotion.
* Read and save their reports of account or transaction confirmations. It is very important to read and verify the information.
* Do not invest based on information that is not publicly known as “private information” (“inside information”). Nor be swayed by news of a new development or product without having researched it yourself.
* Do not abandon your common sense. If you are promised spectacular returns, such as “your money will double in a year or less” show yourself skeptical and ask questions.
* Do not wait if you suspect a problem with your account or brokerage firm. Call your brokerage firm, the Investment Commission of the State of Texas or the NASD and report the problem immediately.

Brokerage firms can be classified into three classes: full service, discount and limited products.

House Full Service Brokerage
A house full service brokerage provides a range of investor services including securities recommendations, research on specific and individualized service. The company receives payments in the form of fees which are calculated according to the type of investment and the amount you are investing. A full-service firm is recommended for those individuals new to the market or have no time or desire to investigate and seek information on their own.

Discount Brokerage House
Although a discount brokerage firm can also provide a good range of financial services, vendors are not allowed to advise or make recommendations or to provide research materials. For these reasons, a discount brokerage firm can offer more moderate fees that houses a full-service brokerage. Experienced investors are able to make their own investment research, usually use a discount brokerage house.

Brokerage House Products Limited
This type of brokerage firm specializing in a limited number of products such as mutual funds, limited partnerships or certain specific bonds.

As an investor, you must select a brokerage firm in the same way you select any other professional service. Brokerage houses come in all sizes, from enterprises operated by an individual (“one-man”) to large international corporations. Similarly, the services offered by each company and the fees they charge can vary widely.

OPENING AN ACCOUNT

The contract for the new account
First Rule: When filling out the form to open a new account, be honest. Your account representative can not recommend investments unless he or she understands your financial situation and level of risk they want to take.

Rule Two: Do not sign the form until it is complete, the information is adequate, you understand and are willing to accept the terms and conditions to be imposed. Take your time, ask questions where necessary and carefully read the “fine print.”

Third Rule: Keep a copy of the opening. It is the basis for determining appropriate investments and appropriate for you.

The NASD is a private organization to regulate the securities industry’s largest U.S.. 5.500 umbrella companies as members and 600,000 registered representatives. Call toll-free line of NASD for more information about the company or individual you intend to entrust their investments. Call 1-800-289-9999 between 9:00 a.m. and 5:00 p.m. (ET) to obtain the following information:

* Disciplinary actions and criminal convictions involving firms, brokers and individuals registered with the NASD;
* Civil judgments concerning matters of values;
* Disciplinary proceedings pending before the Securities and Exchange Commission (U.S. Securities and Exchange Commission, SEC), NASD and other regulatory organizations and state agencies;
* Criminal charges reported by the securities industry and the Department of Justice of the United States and
* Proceedings pending or end before the NASD.

DEPOSIT CENTRAL RECORDS (CRD)

The Central Deposit Records (Central Registration Depository, CRD) is a data bank on employment, qualifications and disciplinary history of 5,500 companies and 600,000 active registered representatives. When a company or individual sanctions are imposed, either in Texas or in any other state or by a regulatory agency, that information is added to the CRD database. [Visit www.nasdbrokercheck.com to verify if a company or individual is registered (a).]

There are over a thousand brokers (in English “brokerage firms“) available to sell various investment vehicles in the stock market. Some of these companies have offices in Texas, which do business outside the state by mail, telephone or through the Internet. No matter where you are located, Texas law requires all brokers and dealers registered with the Investment Commission of the State of Texas. While registration of the company or the seller does not guarantee that your financial goals are met, it does ensure that they have met the state standard requirements.

A seller also can be called “stockbroker,” “sales agent”, “account executive,” “financial adviser” or “registered representative.” Whatever the title, the registration requirements are the same.

EIGHT STEPS TO SELECTING A BROKER

1. Think through your financial goals. Before discussing your financial goals with your broker, you need to fully evaluate their personal finances and decide how much to invest, what is the performance you want to get and how much risk you’re willing to take to achieve their goals.

2. Get recommendations. Ask your friends, family and coworkers for the names of brokers who have held a good job.

3. Contact the toll-free National Association of Broker / Dealers Stock (National Association of Securities Dealers, NASD) at 1-800-289-9999 for more information on brokerage firms and registered representatives.

4. Your broker must be registered in your state. For information on brokerage firms and registered representatives can communicate with the Investment Commission of the State of Texas at 512-305-8300. Disciplinary information is also available.

5. Interview at least two brokers. Talk to them about what you want and pay close attention to how you respond when you talk about your needs and financial goals. Ask about their education and experience. Be careful if a runner tries to sell a product in spite of not being appropriate to their circumstances. Have the names and phone numbers of other clients and call them to give information about your experience with the broker.

6. Ask about costs and fees. Probably, your broker will receive fees based on the value of your investment. Fully understand these costs before opening an account.

7. Determine the services you need. A brokerage firm that offers comprehensive services give you investment advice, recommendations and financial information. A discount broker does not make recommendations about buying or selling a particular investment.

8. Be realistic in exposing what their heritage, and the money available to invest. Do not overdo the size of your estate to impress the broker. This is going to recommend investments based on your financial goals and assets, among other factors. He or she can not make appropriate recommendations if you are not completely honest.

We mentioned earlier that the savings are essential for any family’s financial growth. The savings, however, represents a battle against a skill that we develop more naturally, spending. The saving is not something we can make overnight, but it is something that can be achieved, no matter how difficult it is present. Here are some tips that may help save a little more, while continuing to spend, but in moderation:

One of the first barriers that we put the savings is the fact that we did not win enough to do so. In doing so we do not understand that we are putting a barrier to a future of wealth and abundance. Usually, people who can not save when you earn $ 20,000 a year, can not save when you win 40 000. The reason for this is the saying that “the more we earn, we spend more.” One solution to this problem start saving a small amount, for example ten dollars per check, and increase the amount when you get a promotion, raise or earn more income. What is more money: $ 10 per week or $ 500 a year?

We have a budget to know how much we spend. Many people spend more than they produce and spend everything they produce. In order to save should spend less than our income. The best way to do this is to establish a spending plan that allows us to spend all we have, after having saved a percentage of our income. Ideally it would be 10%, but you can start with a 5% or 3%. Remember that what matters is not how much you save, if not how often. Create a personal budget (income minus expenses) and start watching your savings bloom.

By saving sacrifice a certain amount of money we could spend on something else. But in reality, that sacrifice is to help us buy our dream house, the education of our children, high definition flat screen TV, vacation of your dreams, etc. When you think how hard it is to save, think of the immense satisfaction to be able to achieve your financial goals.

PLAN OF ACTION
* Start saving money from your salary, no matter which is not the important thing is that you do frequently.
* Spend the money for a future plan you want to do, focus on it when you want to spend the money saved.
* Begins to spend less to find ways how to reduce your budget.