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Investing in Dividends Paying Companies – A Complete Guide to What You Need to Start

Listed below are the main things you need to know and prepare to start investing in the stock market for dividend income to achieve financial freedom.1. MoneyYou need money to invest in stocks. The question of how much investment you will put on the stock market largely depends on you and your savings as well. You don’t have to put all your money into the venture. Be reminded that although stock investing is profitable. Before deciding how much money you can invest, you need to do some calculations.Prior to investing, it’s best to make sure your finances are secure. Though, there are great opportunities to profit through investing for dividend income, the stock market may not be suitable for you. If you have too many monthly bills or too much debt, you must wait before you start to invest in the stock market. As the market will always move up and down, it is better to pay down your debt, especially credit card debts. Once you have a positive monthly cash flow and six to twelve months emergency funds, you can to invest your money in the dividend paying stocks. You will be on your financial freedom.To calculate cash available for investing1.1. List all of your liquid (cash-like) assets: cash deposits in bank accounts, stocks, bonds, etc.1.2. Add your monthly income including interest (average one year’s by dividing the amount by twelve) you will receive over the year the year.1.3. Add your monthly cash outflows; this includes monthly expenses and any loan repayments you need to make. Average your yearly payments such as insurance and children’s’ school fees (if any) by dividing this amount by twelve.1.4. Take step 2 and deduct step 3. If you have a negative cash flow, then you will to make a budget to control your cash out flow and strictly follow this to save money for investments. If the amount is positive, then you are ready to start investing. Remember, you must save some amount for emergency expenses.
Congratulations, you are ready to start in dividend paying companies to achieve financial freedom.2. Investment GoalsAfter you have saved money for emergency funds, must set a target you want to achieve from your investments. This target will be achieved through income from dividends and reinvesting the dividends. You must have a long term perspective for your portfolio. Long term is at least 3 years or longer. Why 3 years or longer? Because, only in the long run will the dividend compound enough to make sense for long term investing. Also, if the company keeps in paying dividend and increasing the dividend amount over time, then capital gain is very likely.3. Investment strategyAs investing in dividend paying companies is the easiest strategy, you must develop a plan on how to invest for dividends. Remember that market ups and downs can cause you to doubt your strategy. You must be confident of your strategy and continue investing. You must have researched your choice of companies to invest stocks. You must have a strategy on when to buy and sell.4. Researching the Right Companies for Dividend IncomeYou’ll need to focus on investing in companies which pay dividends consistently. Look for companies which have consistently performed well over the past several years. Of importance are companies who did not cut dividends, even better if they increased dividends during the economic downturn. These companies have long-term potential to help you achieve financial freedom through income from dividends. Of more importance is whether these companies can continue their fantastic performance, is their business model long lasting? You must also check if the management is investing more into their own company. If they are, then these are a sign that the management is behaving like owners and are sure of the long term prospects of the company. If management is sure of the company, then you dividends are likely to continue for a long time. Long term dividends leads to financial freedom and you do not to keep buying and selling stocks.5. DiversificationDiversifying your investments is extremely important. You can diversify your investment in many different types of assets, such as real estate for rent, dividend income investing and bonds to name a few. The easiest investment is in dividend paying companies in the stock market as the market is very liquid and information is easily available for you to analyze. Even while investing in dividend paying companies you must diversify your portfolio. This helps to protect your capital.6. What’s your risk tolerance level?You must understand your. You must know your risk tolerance level. Investing has many upturns and downturn. If you lose sleep after investing any money, then your risk tolerance is very low. That is exactly the reason you must invest in dividend paying companies as dividends help you to earn income during upturns and downturns of the market. You will be able to sleep well.7. Educate yourselfIt is extremely important you educate yourself regarding investing in dividend paying companies. You can take seminars or read books by various gurus to learn from the masters or invest in online courses. You must also read business newspapers and magazines regularly. Educating yourself will help you believe in the choices you make and this will lead you to make investment decisions. Once you are educated you do not have listen to others. You will achieve financial freedom on your own.8. BrokerA stock broker is required to help you buy and sell stocks. Choose a broker wisely so that you can maximize your investing profits. Different brokers have different charges for helping you to buy and sell stocks on the exchange. There are full service brokers who for those who need more details before investing. Discount brokers charge cheaper rates; however, they do not give any advice. After you learn how to invest and are confident in choosing the right dividend paying companies, the wiser choice will be to use discount brokers enabling you to save money, thereby giving more money to invest for your financial freedom.In conclusion, investing for dividends is a long term process. Getting dividends and reinvesting dividends will make you financially free. Instant wealth is not part of this process. Any person who has got instant wealth will normally lose the wealth as they do not know what to do with the wealth. Very few people become multi millionaires from the stock market, if it was easy very body in this world would be a multimillionaire. The idea of investing the stock market for income from dividends is to become financially free so you can live the life you desire.

Re-Engineering Healthcare

Early December, 2010 I was contacted by Mr. Stephen Will of The Hendra Agency in New York, New York. Mr. Will had read one of my articles online concerning Lean Healthcare. The Hendra Agency represented Jim Champy, co-author of Reengineering Health Care, A Manifesto for Radically Rethinking Health Care Delivery. Mr. Will proposed that I chat with Mr. Champy, since we seemed to have many of the same interests. I agreed and on January 5 Mr. Champy and I discussed our mutual concerns about health care. Following are some excerpts from that discussion as well as a review of some of the material in his book.December 21, 2010 Laura Landro, healthcare columnist for the Wall Street Journal, recommended Reengineering Health Care written by Jim Champy and Harry Greenspun, M.D., as one of two must-reads for healthcare executives. The other was Transforming Health Care: Virginia Mason Medical Center’s Pursuit of the Perfect Patient Experience. Both books advocated focusing on the quality and safety of patient care. Both books recommended major changes in the way patient care is delivered.In my discussion with Jim Champy I asked if his approach to changing healthcare was similar to the Toyota Production System (Lean Healthcare) and if so, what was the difference (I found his recommended approaches quite similar to the TPS when I read the book). He stated that the approaches he illustrated in the book were quite similar to the TPS but that the difference was that he advocated such dramatic changes in a shorter time frame. The TPS can take 4 or 5 years to significantly change the culture and processes at a healthcare site. According to Mr. Champy, such a gradual approach is too long given the inefficiencies, costs and safety and quality issues plaguing healthcare today. He supports reengineering healthcare in a much shorter time frame.Mr. Champy in our discussion and in his book advocated that clinicians lead the change at healthcare sites. In order to meet the time frame he advocates change must be directed by clinicians and senior executives. One of the early chapters of the book illustrates this approach by detailing the changes Zeev Neuwirth, M.D., brought about in his career. Dr. Neuwirth early in his career instituted significant changes in patient care in the Bronx Veterans Administration hospital. He spent his time there improving the patient experience by focusing on communication and team building.Another section of the book focuses on the lifetime work of Debra Geihsler, who was at different times VP of Mercy Health System in Wisconsin, president of the Advocate Medical Group in Illinois, and CEO of Atrius Health in Boston. Ms. Geihsler focused in much of her work on building the capacities of physician groups. At Mercy she helped build a unified system that provided services on many levels, just short of in-patient hospitalization. The seamless integration of services provided much better communication among the multiple providers in the system, improving both the quality and safety of care delivered while significantly improving the bottom line.Jim Champy in his comments to me said he wrote this book with an eye to readability and easy application. There are many books that give significant details, charts and graphs about improving the delivery of healthcare. He wanted to avoid being too technical, making the book an easier read for executives and laymen. Thus, he focused on real stories about individuals who have made significant changes in the way that care is delivered. He focuses on three main elements of change in the book-technology, processes and people. Technology provides significant opportunities for improved communication and viewing change at the population level, to see the progress of change. Significant change cannot occur without viewing the delivery of care as a process. Making these elements work requires commitment by individuals who have the means to carry out the change.I asked Mr. Champy how he approached overcoming barriers to change. Physicians and other clinicians who have been in the system for some time are often reluctant to endorse changes and, thus, can significantly impede progress. He stated that he would take such individuals to “come and see” the positive changes that have already occurred. In the book, he says it is often easier to start changes with clinicians who have not been in the system too long. They are more eager to welcome changes in the environment. Starting with the younger clinicians, those who are directing the changes should after achieving significant gains, take those who are resistant and demonstrate how the new ways of delivering care have improved quality and safety and that those involved are happy with the achievements and their efforts in making the changes. The resistant clinicians are usually willing to go along with the changes after seeing such positive outcomes. After all, says Mr. Champy, most physicians and clinicians really want to deliver very effective care to their patients but do not understand how to make the changes necessary to deliver ever better care.I asked Mr Champy what one additional chapter he would like to add to the book if he could. He said that he would like to add some additional focus on the continuum of care, such as advocated by Debra Geihsler. The medical care that he receives is coordinated by his primary care physician. He feels much better that the care he receives is not fragmented but is overseen by his personal physician. He believes that the best care is based upon this patient-centered medical home model.I highly recommend this book for organizations that want to significantly improve the care that they deliver and want to understand quickly good ways to effect the changes necessary. The book is a quick read and effectively describes for those who will be directing changes at their site what is necessary to accomplish their goals. The book does not say the path is smooth and easy but that change can be effected through individuals who are dedicated and knowledgeable.

Healthcare IT Solutions – Multiple Advantages

The healthcare industry is under rapid transformation, the old belief that technology has nothing to do in the healthcare industry is dying. As like any other field, information technology has also found its application in the healthcare industry. Healthcare IT solutions are providing multiple benefits by not only speeding up the process but always by improving quality of service and patient safety. IT is often believed that the healthcare IT solutions are mainly for the benefit of healthcare professionals and hospitals. Healthcare IT systems only save time, money and ultimately add to the “returns” of the practice. However, the truth is something different, healthcare IT systems are equally beneficial to the patients as well.Quality of healthcare service has always been a concern all across the healthcare industry. Patients have always been worried about the availability of the quality of service. If we go with recent studies, medical negligence in some form has become the third highest cause of death in the United States. This is something very serious and alarming… healthcare IT solutions are providing new hopes in bringing about improvement in the quality of healthcare service, thereby ensuring patient safety and life security.It is true that healthcare IT solutions will definitely save time and money for the healthcare professionals, which ultimately is going to add to the revenue of the practice. However, the bigger role that healthcare IT systems has to play is to put a control on medical errors. Healthcare IT systems like claims management software, billing software, practice management software and more are designed in a way to capture up-to-date patient information with a large number of functionality that can ensure improvement in the quality of healthcare service and patient safety.Management of healthcare practice is a complicated process; it involves a large number of tasks right from patient registration to recording patient history, diagnosis, treatment, lab tests, and claim submission and so on. The process is so lengthy that there are always chances of committing errors, which can ultimately prove to be very fatal for the patient. Often, incomplete patient history, wrong information or delays in the availability of the information at times of emergency are major reasons for medical negligence.Healthcare systems ensure quick and proper recording of patient data. The information is stored in a scientific manner, making it more meaningful for the healthcare professionals. The information is not static in nature, however, a number of advanced functionality ensure processing of data into some meaningful information that can be utilized in drawing the line of treatment. All these capabilities of healthcare IT solutions result into improvement in the quality of healthcare service and patient safety.