Author Archive

07.27
15

Financial Literacy Appreciation for Depreciation and Time Value of Money

by como ·

In today’s society, instant gratification and the desire to buy everything brand-new seems to be a typical behavior among most consumers. However, many consumers may decide to reevaluate their spending habits and proposed purchases if they better understood how quickly the book value of various items depreciated. Cars (vehicles), jewelry, books (especially text books), electronics, cds, dvds, power tools, and furniture all represent commodities with book values that depreciate at an exponentially fast rate. All of the aforementioned items could be bought at full price, but buying a used item could save consumers a considerable amount of money as well as still allow them to benefit from the useable life of the item. Ideally, enhancing financial literacy regarding depreciation would help individuals to reduce personal debt by reinforcing the disproportion between the quality of an item and what it cost. Nevertheless, having a working understanding of the various depreciation methods would definitely assist consumers to make conscious decisions when making purchases.

Depreciation is defined as the expenses associated with spreading-out or allocating the cost of an asset over its useful life by accounting for physical wear and tear, decay, and obsolescence. In order to measure depreciation several factors must be determined which include, the cost of the asset, the estimated useful life, and the estimated residual value. Typically, the cost to purchase an asset is a known amount by the purchasing entity, but the estimated useful life and the estimated residual value need to be determined. The estimated useful life of the asset represents the length of service that is expected from using the asset, which can be indicated in years, units of output, miles, and other measures. Next, the estimated residual value (which is also commonly referred to as the scrap value or salvage value) is expected to be the cash value of an asset at the end of its useful life or when the asset is sold or discarded. Typically, the estimated residual value will be determined by the owner of the property or another reliable source (i.e. Kelley-Blue Book). Straight line (SL) depreciation represents the simplest and most-often-applied depreciation method, in which an equal amount of depreciation is assigned to each year (or period) of asset use. For the most part, depreciation on goods purchased by consumers can be calculated through the SL depreciation method. In essence, SL depreciation per year = Cost-Residual Value/ Useful life in years. With this method, the depreciable cost can be determined by deducting the estimated residual value from the asset’s original cost. Consumers should also keep in mind that depreciation decreases the value of the asset, because the amount of depreciation continues to accumulate each year. Also, the valued equity of the asset decreases as a result to the depreciation expense. Thus, as the asset is used during operations, the accumulated depreciation increases while the book value of the asset decreases. In SL depreciation, the asset depreciates until the book value equals salvage value. When the estimated useful life is achieved, the asset is considered to be fully depreciated. For example, if an individual purchases a sports car for $55,000, with an estimated useful life of 10 years and an estimated salvage value of $8,000. The SL depreciation for the sports car would be determined by using the SL depreciation equation of (Cost-Residual Value/ Useful life in years) which equates to ($55,000-$8,000/10 years). In essence, the sports car would depreciate by $ 4, 700 per year.

In addition, many consumers that can’t afford to buy brand new big ticket items, often satisfy their wants and needs through participating in rent to own agreements with companies like Rent- A-Center and Aaron’s. Most consumers that make agreements with rent to own businesses often don’t fully understand the ins and outs of their contract. Typically, these rent to own business organizations earn revenue through marking up the retail price of items and by charging high interest rates, which are most likely compounded daily. In the end, the consumer that shops at rent to own stores sometimes end up paying twice as much as the item is worth and in many cases once the customer finally owns the item, it most likely has depreciated to its salvage value.

Prudent consumers should also become familiar with the time value of money and how this relates to the compounding of interest on rent to own agreements and credit cards. Typically, in the U.S., credit card interest rates are compounded daily based on the unpaid principal and then they are applied to the monthly billing cycle. Compounding refers to the process of calculating interest for a specific time period on the sum of the principal and any interest accumulated at the beginning of the period. Basically, with credit cards, the holders are paying interest on any interest charges as well as continuing to pay for the loan. Consequently, the compounding of interest on credit cards is what makes them so difficult to pay off. In the end, the sooner consumers learn to appreciate the benefits of financial literacy, the sooner they will understand the concept of depreciation and the time value of money.

07.26
15

Long Term Home Loan Advantages That You Should Not Ignore

by como ·

If you have eventually figured out your dream house, you have come to the next important stage of realizing that dream house. You have to make a decision whether to go for a long term home loan or a short term home loan. Before making a decision given that you can also afford to avail of the latter loan term, you may like to look at the main advantages of a long term loan.

Availing of a long term home means paying a lower monthly amortisation. More often, the maturity period for a long term loan can be 25 or 30 years. A long term loan in a way provides you a sense of security since there is much lesser pressure in tightening your budget. Definitely, the trade off is that you must shoulder the load of paying a higher interest rate. The accumulated interest payment for the whole loan duration is significantly higher compared to a short loan term.

You must not solely look at the total amount that you expect to cash out. Note that if you can take a short term home loan but you opt for a long term loan, you possess usable savings which you can invest on high yielding investment endeavors. This makes sense if you earn more from your investment than the savings you generate from paying the lower interest of a short term home loan. Your sense of entrepreneurship then must come into play to allow your funds to grow significantly.

Choosing a long term loan comes down to the benefit of shelling out lower monthly amortizations. It allows you better flexibility to deal with your finances and somewhat offers you a buffer in case of financial dislocation. If there is one major stumbling block in availing of a long term loan, it is the built in high interest value. However, if you opt for a long term loan over a short term loan, you have some “savings” which you can subject to investment opportunities. If you invest your money properly, the yields can cancel out the high interest rate from a long term loan if not even improve your financial position.

07.25
15

Types Of Employment Pass In Singapore

by como ·

If you are planning to put up a business in Singapore or just live and work there, it is important to consider some legal factors to make your stay a legit one.There are many choices for what should be the employment pass you need to get for you and your family.

When it comes to employment pass in Singapore the two main consideration is the salary and education.Work experience so do your age and nationality will also be a consideration.

Provided that several people are certain of a minimum of ONE factor of their employment criteria, employment pass options will be presented around key individual criterion to expedite identification of the employment alternatives available to you. Given below are the key variables that may affect the corresponding work pass options.

The Regular Employment Pass

This pass is split into 3 different categories (P1, P2, Q1) and is largely dependent on salary requirements.For P1 the salary should be above S$7, 000, for P2 it should be above S$2, 500 and Q1 is above S$2, 500.A diploma or certificate from a prestigious is required for EP.This will be on case to case basis.If an employer wants to hire an individual, they should take care of the EP for them as well as provide sponsorship for them.Therefore, the EP is only valid for the specific job it states, and if you leave that job, you will require a new EP.EP holder’s family will now be permitted for Dependents Pass that will be valid along with EP.Even if the family will not be given the chance to have the dependent pass, they will still be given the chance to have a Long Term Visit Pass (LTVP).This does not apply for Q1 holder family members.Having a DP or LTVP alone, does not allow the pass holder to work in Singapore, a relevant work pass is required.

Personalized Employment Pass

Personalized EP will be applicable to foreign individuals whose monthly salary is minimum of S$7,000, foreigners who graduate from Singapore universities, as well as current and former P1 holders whose last salary was above S$30,00 annually and current P2 and Q1 holders with at least S$30, 000 annually.Salary and work experience is being considered and that the individual should not be unemployed for six months so that he/she will be allowed to apply. Personalized Employment Pass holders’ families are eligible for Dependent’s Pass as well as Long Term Visit Pass.

EntrePass

For investors and foreign individuals who want to put up a business in Singapore, EntrePass would best fits them.The main requirement to be eligible for an EntrePass is to have a company registered with ACRA, the organization that deals with Company Registration in Singapore.Q1 and P are the two types of EntrePass which largely depends on the salary. The main things needed for an EntrePass are, the company should have a minimum paid up capital of at least S$50, 000 and 30% ownership and that the individual is active in the whole operation of the business.Owners of coffee shops, bars and night clubs are not allowed to apply for an EntrePass.The legit family of EntrePass holders are now permitted to apply for Dependent Pass and Long Term Visit Pass.

Dependent’s Pass

Dependent Pass will be applicable to family members of Singapore EP holders, Personalized EP holders, EntrePass holders and S Pass holders.Requirements should be met first before applying for dependent pass.Spouse of the holder and child of the holder who is below 21 years old is allowed.New born babies, legally adapt children and step children are also accepted. Past the age of 21, some DP holders who are the children of the work pass holder may be eligible to apply for a Long Term Visit Pass.The valid duration of EP, Personalized EP, EntrePass or S pass is the same with DP. DP holders are permitted to work in Singapore but should have a work permit.Working in Singapore is not allowed in DP but living and studying are only the inclusions.

Long Term Visit Pass

Long term visit pass will be applicable to the family of P1 and P2 EP, P1 and P2 Personalized Ep and P EntrePass holders.Common law spouse, unmarried daughters above 21 years of age , handicapped children which age is above 21 years old, step children, parents, parents in law are considered the direct family.Those who are above 21 years old of a work pass holder will be liable in providing for themselves and is not allowed to live in Singapore based on the working situation. However, daughters who are originally DP holders can apply for LTVP when their DP expires.60 months or 5 years will be the validation of LTVP.Much like a DP, a LTVP does not authorize employment of the LTVP holder, and LTVP holders must apply for their own relevant EP before being able to legally work in Singapore.

From the summary of main work pass types it should be possible to identify at least one that is relevant to

you and your family.To get enough knowledge on the pass that will be applicable to your family, take a visit on Singapore Ministry of Manpower website.If a professional service firm will help in incorporation of business in Singapore, then they will also be a big help in this matter.It is fact that the businesses in Singapore is achieving a lot.The qualifications for getting work permits is not that high for foreign investors than any other offshore business.Meanwhile, the whole process for application of work permits will be more organized.

07.24
15

Hedge Funds – How To Make The Right Investment Choices

by como ·

After the 2008 world economic crisis, finding the right investment vehicles seems much harder and trickier. Worldwide currency, which everyone believed in, has shown its face value and, overall people have lost their confidence in the popular investment means available on the global market. However, one of the post crisis positive effects is that individuals became more aware and cautious about the significance of managing their resources appropriately and securing their assets.

Although the present day market openings sets forth an apparently endless variety of choices, making the right investment is all about selecting that alternative apposite for your means, objectives and goals on short, medium and long term. Resorting to professionals is one of the best ways to drive your worth to the right target as long as you manage to find some trustworthy, skilled, and dependable experts.

In nowadays context, the hedge fund is fairly set at the higher end of the investment opportunities scale. Working as a private pool of capital, little known to the wide public, such funds rather address the sophisticated investor that can afford hefty net investments in the prospect of likewise gains. Unlike most types of funds, a hedge fund gathers capital from a fairly limited number of individuals and, naturally the investment amounts are significantly greater, being typically believed to range between one million and six million dollars. Nevertheless, there is no investment maximal threshold regulation in place.

The hedge fund is actively run by a manager, who is in charge with all financial strategies and decisions. Once in, the investors can not set a veto on his decisions. Drawing back the capital ahead of a predetermined time span usually calls upon considerable penalties, which remain in the fund and are finally split between the remaining investors. The hedge fund manager takes up an operational commission and a performance brokerage.

In comparison with other type of investments, the hedge fund primarily differs through a wider range of investment strategies it can adopt and a more regulatory-free area of action, including short selling and hilt leveraging. No such fund is risk free, yet primarily depending on the objects of ventures, the manager can draw in high gains with relatively small risks. For instance, precious metal investments have proved to be such nest eggs. Although, one needs to be no expert to know that investing in gold – the ultimate safe heaven of all seasons- is the right investment choice for all kinds of financial portfolios, the profits of a hedge fund may considerably overrun those achievable from independent investments.

07.23
15

Different Functions of Field Service Management Software

by como ·

The software developed for field services management is an unbelievable invention of advanced technology. The services management software is designed to handle all kind of basic works engrossed throughout field services. From the origin to present world, software has come through several faces of development. As a result, almost all the field service managers around the world prefer it for managing their task accurately.

Nowadays, there are several vendors available, who offer required field service management software solutions for particular business. These solutions are fit for all kind of technological devices such as mobile phones and computers. The company that utilise such kind of software can manage its schedule and track of outside operations in an effective way. Moreover, the representatives of the company can get customer information, routes, schedules and information about regular supplies and parts with these. And the company manager can create outside resources and agents’ schedule, follow clients as well as employs’ history and ultimately manages the work order properly.

Additional function include repair centre, order management, trouble resolving, dispatching, route planning, partner management, customer appointment reminders, voice-generated and whole project management. The user can install it in his customer support systems as well as in a help desk, according to own comfort. Help desk installed software can resolve problems directly but unable to provide field-related functionality, and on the other side, customer support installation can manage scheduling and inventory management or may integrate to a complete system. Various field service management software also focus on entirely on one function.

Those companies which are requiring more advanced management system with feature including preventive maintenance and unique equipment need to consider given below information:

Firstly, these will have to recognise what kind of buyer these are, as there are several kinds of categories available such as:

1.Contract Buyers: such kinds of buyers work for companies that contract the field work. These are required for tracking request fulfilment, passing work requests as well as tracking client satisfaction.

2.Direct Buyers: These buyers include the companies that maintain their own field. These have clear-cut needs which are attended to by a wide range of clients.

3.Small Business Buyers: These buyers own small businesses moving beyond spreadsheets, Microsoft Outlook and even whiteboards or sticky notes. They want to add field service management capabilities for scheduling orders and tracking clients’ satisfaction.

After analyse the categories it is also essential to know about its various benefits:

The software is very beneficial to users as it reduces the scheduling cost. Traditional system requires more time as well as money for this task. This software can plan field appointments without consuming much time. It helps to increase the clients’ satisfaction as the users are able to manage their work more quickly and accurately. It is able to cover all the demerits of traditional management system and the multi- functionality make the manager adding efficiency in his work. This software is recommendable for all kind of business management.

07.22
15

What Is A Singapore Personalised Employment Pass

by como ·

You love Singapore. You want to work there. But what will you do if you are neither a Singapore citizen nor a resident of Singapore. Well, the answer is simple – you need a Personalised Employment Pass!
For foreigners who find Singapore an ideal place to visit, live in, find employment or even set up their own company, there are specific passes required before you can fully enjoy the benefits of being in the country. These passes are Personalised Employment Pass, Regular Employment Pass, EntrePass, Dependent’s Pass, and Long Term Visit Pass.

But if you only desire to find employment in Singapore, then you must apply for a Personalised Employment Pass.

A Personalised Employment Pass or PEP is a work visa granted to qualified foreigners who wish to find employment in Singapore but do not want to enter to an employment contract with a specific employer for a period of five (5) years.

Where will you apply for PEP? The Ministry of Manpower in Singapore is the department that processes applications for PEP and grants the same to a foreigner who possesses the requisite qualifications and professional attainment. It is not necessary that you must already be employed in Singapore before you apply for a PEP. But you must remember that upon the issuance of a PEP to you, you need to find employment within the period of 6 months from the date of issuance of PEP, otherwise the work visa issued to you will be revoked.

What are the requirements in order for an applicant to be granted a Personalised Employment Pass? The applicant should be either of the following: First, the applicant must earn a salary of at least S$7,000 per month. Second, he/she must be a former P1 category Employment Pass holder who resides overseas (it is important that he/she must not be unemployed for more than a continuous period of six months at the point of application). Third, he/she must be a current P1 category Employment Pass holder. Fourth, he/she must be a current P2 category Employment Pass holder with at least two years of working experience in a P category of Employment Pass that earns an annual income of at least S$30,000. Lastly, he/she must be a foreign graduate from institutions of higher learning in Singapore and has at least two years of working experience on a P or Q1 category Employment Pass (the annual income should be a minimum of S$30,000).

What are the documents that an applicant for PEP should prepare? Here is a summary: resume or CV stating your educational and employment history, copies of educational certificates and past employment testimonials, a copy of the personal particulars page of your passport, appointment letter from the current employer and copies of the last three months salary slip. All documents that are not in the English language should have an English translation provided by an official translation service.

Holders of PEP are not allowed to set up any business in Singapore. However, they are allowed to own at least the minority share in a company, and he/she is allowed to act as one of the directors. A PEP holder can apply for a Dependants Pass and/or Long-Term Visit Pass for the members of his/her family.

It is strongly advised that a foreigner seeking to apply for a Personalised Employment Pass engage the services of a professional firm in Singapore to assist him/her in the preparation of his/her application to its submission, processing and collection.

07.21
15

Configuration Management And Change Management Metrics You Can’t Miss

by como ·

In today’s complex and highly dynamic environment, succeeding in keeping your IT environment and business services running effectively with as little disruptions as possible is not an easy task. So if we do not measure where we are going then we are sure to get somewhere, but probably not where we would like to be. With so many possible metrics to follow, what are the top ones you should follow to succeed in your configuration management, change management, incident management, release management, problem management, availability management key process?

If we do not measure where we are going then we are sure to get somewhere, but probably not where we would like to be.

Below are the key metrics we’ve identified from the book Metrics for IT Service Management, that you can apply to guide your IT organization to success.

Incident Management
* Percentage of incidents resolve by 1st line support
* Average time to resolve
* First time Right Resolution
* Percentage of proactively solved incidents
See how you can cut incident investigation time and restore a normal service operation as quickly as possible, see the Evolven Configuration Management solution (http://www.evolven.com/).

Configuration Management
* Number of unauthorized configurations
* Number of incidents from failed changes
* Number of breached SLA because of CMDB errors
Learn how to redefine your Configuration Management approach and identify unauthorized configurations at the most granular level (http://www.evolven.com/).

Change Management
* Percentage of failed changes
* Number of unauthorized changes
* Outages during changes
* Percentage of changes on time
* Percentage of changes causing incidents

Release Management
* Number of incidents caused by releases
* Percentage of releases on time

Problem Management
* Total number of incidents
* Total user downtime
* Cost for resolving a problem

Availability Management
* Downtime, unavailability of services
* Incident resolution time
* MTTR
* MTBSI (mean time between system incidents)
* First fix rate

Risk Management
* Percentage of impact to schedule
* Amount of cost difference
* Amount of resources used

07.20
15

What to Look for in a PPC Management Service

by como ·

If you have decided to hire a PPC management company to handle your online marketing campaigns, you should familiarize yourself with the different services these companies offer. PPC management is more than just targeted keyword research. Before you hire a company, take these other factors into consideration.

Look for a company that will offer you a dedicated account manager. You should have one point of contact for your ad campaigns; someone who remembers your name and understands the unique needs of you company.

Conversion tracking allows you to see if your ads are actually leading to sales. If your ads are not effective, you can look at ways to switch your ads or keywords to improve your conversion rates,

Landing page optimization allows you to determine which pages of your website should be used with your PPC ads. Any management service you hire should be able to help you find the right landing pages for each ad, and should also help you improve those web pages before your campaign goes live.

Monthly reporting should be a part of any package service you purchase. You should have access to each ad’s budget, how much was spent, and the conversion rate for each campaign. A knowledgeable PPC Management Service will track this information, provide you with monthly reports, and help you to understand all of the information contained in those reports.

when you decide to use management services, it is important to understand exactly what you are paying for. If a company does not provide all of these services, and they cannot be included in your marketing package, you are probably looking at the wrong company. A company that does not provide all the services that go with a PPC campaign is not a company that you want in control of your marketing plan.

07.19
15

Risk Associated With Equity Investments

by como ·

We are often told that equity investments are subject to risk. What is this risk? It means earning less than what you expected from a given investment or losing part of what you invested. When it comes to investments we only talk about returns. We say: the higher the risk the higher the return. How easy it would be then to assess a mutual fund if they published, along with their returns performance, the risks involved in earning such returns. For example, a fund gave 25% return by risking losing your capital to the extent of 5% , and another gave 50% return by taking the risk of losing 100% of your capital. In the absence of risk figures, you would rate the fund that gave 60% return as better than the one that gave the 25% return. However, within the risk parameter, you would prefer a fund that risks 5% of your capital to one that risks 100% of it.

Investors solicit advice in brevity: tell us what to buy or sell, they say. But we cannot make a significant amount of money if we avoid taking risks. Risk is also an opportunity, but it should be a calculated risk you take. If the fear of losing makes you leave the money idle or put in low-return instruments, then inflation will devalue it. Hence, investment is must, and the risks associated with it must to be understood.

In an ideal scenario, the investor should need to take only risks relating to the economy and company performance and our markets are close to achieving this goal.

There are several parameters that evaluate the risk factor. Statistical and analytical tools can be used, but they are not affordable for the small investor nor would he always have the time or knowledge to use them. This article lists the parameters that go into risk calculation. Risk can be minimized if we can identify it.

Risk is related to time. The first question to ask when making an investment is: When do I need the money? In general, you can take more risk if your investment horizon is distant. This is because you have more time to recoup your potential losses along the way. Major factors that determine risk are stated below.

Macro factors that add to risk are the economic performance of the country. The GDP growth of 8% + in the last few years has fuelled the stock market rally. Interest rate movements, each time the Reserve Bank changes the benchmark rates of interest, has a positive or negative impact on the market. The dominance of FIIs in India has also led to a sensitivity of the market to interest rate cuts, announced by FED in the US. International developments, such as energy prices, WTO, insurgence and wars between countries also impact risk, since such issues affect share prices. Regulatory changes such as Truck overloading norms, Intellectual Property Rights, and VAT also add to risk directly if the company is part of such and industry, and indirectly, if such changes impact all industries in general. The feel-good factor is also necessary to keep the market sentiment buoyant; if everyone feels that the economy is doomed then there is little one can do to improve market sentiment.

Industry-level risks include: the state of a specific industry, whether it is in growth, maturity or decline phase. Industries such as IP telephones and cell phones are in the growth phase whereas certain type of asbestos sheets manufacturing, which is a health hazard, is not. Industry cycles are also important: for example, in the monsoons, there is less demand for cement compared to the rest of the year. Structural changes and paradigm shifts in an industry should be observed, such as peoples current preference for motorcycles compared to scooters, or landline phones versus mobile phones or electronic encyclopedias versus printed books.

Company-level performance risk includes: company value sets and governance norms, whether it has a dominant position in the industry or is an also-ran; financial parameters, such as earning per share (EPS), whether it has short-term or long-term approach to growth. Its quality of management and corporate governance are important. Infosys carries one of the lowest risk parameters as far as corporate governance goes since it is one of the best managed companies in its field. If the company is listed as a Z group share or in Trade-for-Trade settlement, then it is a clear indication that either the company is not fulfilling the listing requirements or there is unusual activity in the market in relation to the share, and the stock exchange has put it under special surveillance.

Regulatory risks associated with markets are also important. If the quality of regulation is poor then the response to scams is also not adequate. While scams and market manipulation will continue to happen as long as there is human greed, how regulators and the entire legal system respond to them is important. Timely prevention, early detection, speedy and severe punishments act will deter potential manipulators. Regular reviews and correction of outdated laws ensure compliance from citizens.

Systemic risk relating to stock markets, such as that to do with the technology, needs to be understood. Today, the markets are heavily dependent on complex systems that run through public and private networks; inability to square off an open position during the closure of the market is a major risk. Please read the Risk Disclosure Document that is available with brokers to understand such risks.

Successful investing would require you to study prospects and project earnings, P/Es and market prices versus todays levels, risk /return benchmarks are necessary to review when either is achieved. Avoid greed for more profits or fear of incurring losses. Be rational rather than emotional. Sleep over a decision, if necessary. Haste can make waste.

In summary let us remember-no risk no return. No pain No gain. Take small steps. Ask for advise. Read books. Use Internet. But dont give up on investing because a film tells you so or your cousins neighbours uncles co-brothers friend in Jumri Tallaiya said he lost his shirt in the markets! Own your decisions and learn from your mistakes. They are the best teachers!

07.18
15

Basics of Loan Amortization Tables

by como ·

One of the most important and costly investments people make in their life times is the purchase of a home. The decision to take out a home mortgage is a huge one; and its extremely important that people figure out which type of mortgage is the best type for their unique situation, and make sure they have calculated the amount of mortgage they can actually afford. Its necessary also, to fully understand the rate of interest that you are paying and how it is calculated, as it will affect the amount of money you are borrowing immensely. There are a number of ways that interest rates are calculated, but most banks calculate the interest according to what is known as a loan amortization table.

Amortization is a fancy word that basically describes the number of years it will take to repay the loan completely, with interest.

There are three types of loan amortization tables that are used most frequently, including:

Equal Capital In this type of amortization table, the calculation system will display each of the equal monthly payments as well as the total variable payment that is made to the bank. The amount of the repayments decrease as the term of the loan gets closer to the expiration date.

Spitzer Amortization Table In this type of amortization table, the repayments are often considered the most optimal. A Spitzer loan provides a fixed monthly payment, even with a variable rate of interest that may adjust throughout the repayment period. Unfortunately, however, many people mistakenly believe that most of the interest is paid within the first year of making repayments on this loan, but that is not the case.

Bolit Amortization Table In this type of amortization table, the payments that are made pay the interest on the loan, and the principal amount of the loan is only paid after a specified period of time. So the beginning payments are interest only.

As with any investment tool, there are numerous risks associated with loan amortization tables, including:

Linking risk
Rising consumer price index
Rising prime risk
Exchange rate
Fluctuating interest rate risk

If you are able to define the type of risk involved with the various amortization tables, then you can have a better understanding of how to best neutralize the risk .