The checks usually aren't cashed until the first of the month and they clear my As far as whether it's illegal to postdate a check, it's not. I took two post-dated cheques from him as guarantee. part, as well as the actions against all the obligators who have earned illegal income.". In theory, when you postdate a check - that is, write a future date on it - the So, in practice, postdated checks are often cashed earlier than the.
You can't always achieve this, but it is still better than investing your cash somewhere near the top of the market cycle and being locked in at a loss for four or five years. As you say, you must be in for the long term. So why not wait and take full advantage of a market downturn? To quote an article on the same page as yours a few weeks back: You've got one of the messages that I keep trying to hammer home, that investments such as shares must be long term. But you've missed another: Everything you say would be valid if only we knew, at the time, that the markets had hit bottom.
To use your New York example, markets plunged right after the terrorist attacks. So why didn't we all rush in to buy shares at bargain prices? Because we worried that prices would drop still further. Your quote about high returns following global crises was just one of many similar messages.
Within days of September 11, we saw graphs showing that the sharemarket rose fast in the year following most other crises.
The dangers of writing a cheque in the UAE
But, we all wondered, was this one different? And I'm sure we will all wonder the same thing next time something extraordinarily bad happens. As for a "five-year cycle more or less", there's so much "more or less" in any share- market cycle that it's useless in helping you try to time your purchases. I agree with you that investing at a time that turns out to be near a market peak is really discouraging.
But trying to time markets is not the way to avoid that. It's all too easy, if you're in and out of markets as you suggest, to miss out on a sudden bull run. For all we know, world markets might zoom up, starting Monday.
They might also plummet.
Heaps of research shows that those who get in and out of shares end up worse off than those who go into the market and stay.
So when should you buy? By far the best strategy is to spread out your purchases, buying regularly once a month or every three or six months, regardless of what the markets are doing. If you invest the same amount each time, you benefit from what's called dollar cost averaging. This is best explained through an example. The price fluctuations are rather extreme, but that's just to make it easy to follow.
Over four months at that price, you get units. Over four months at that price, you get 48 units.
Over four months at that price, you get 30 units. Over the year, you've bought a total of units. Without even thinking about it, you've bought more units when they were cheap, and fewer when they were expensive.
This works well for regular saving. But what if you've just got a lump sum, perhaps from an inheritance or redundancy money? Because you won't know, until later, whether now is a good or bad time to buy, it's best to spread out your purchases of shares or share fund units.
Post-dating cheques is risky business - NZ Herald
Set yourself a plan and stick to it. You might invest a 12th of the money each month for a year, or a quarter every six months for two years. In the meantime, the rest can go into term deposits that mature when you plan to invest them. The same applies if you're getting out of any volatile investment because you plan to spend the money over the next few years. It's a good idea to phase the selling over a few years.
Once you sign a check, it can legally be cashed — regardless of the date you wrote on it — by the payee. There is a way to prevent the payee from cashing the check before the date: If you find it necessary to write a postdated check, and you provide your bank with reasonable notice not to cash your postdated check, then the bank may not legally cash it.
There are some caveats to this, which depend on the manner in which you provide notice to your bank, according to the Consumer Financial Protection Bureau CFPB: If you provide written notice about a postdated check, your notice is valid for six months. If you only provide oral notice, your notice is only valid for 14 days. So what happens if the bank cashes your check despite your reasonable notice? Well, the bank may then be liable to you for damages, like overdraft fees, for instance.
According to this eHow. If you do accept it, you should check with your bank to see if they can process the check before the date on the check. If the person who wrote the check has provided reasonable notice of postdating to their bank, however, you will not be able to cash the check early. By providing notice to your bank or just not writing a check until you can afford to, you can avoid fees and protect your money.