Posts Tagged ‘Personal Finance’

A look into alternative investments

September 26th, 2022

Your investment portfolio will typically include conventional investments such as stocks and bonds both equally important parts of a solid,Guest Posting long-term investment strategy. But, there are many other less-typical investments that can supplement your portfolio and provide you with opportunities to reduce some of the effects of market fluctuations. Consider alternative investments such as commodities, hedge funds, mutual funds with alternative strategies, and futures to round off your portfolio.

What are alternative investments?
Alternative investments are asset classes that generally don’t move together with traditional equity and fixed income markets. They usually follow their own cycles. As a result, alternative asset classes have a low correlation with standard asset classes; therefore they may help diversify your portfolio by reducing the overall volatility of the portfolio when traditional asset classes such as stocks and bonds are performing poorly.

Historically, alternative investments have been restricted to high-net worth individuals and institutional investors, but these days they are far more available to a wider audience. Alternative investments range from real estate to hedge funds to commodities and can complement a variety of investing strategies. However, they are designed to complement a well-founded portfolio rather than to serve as the focal point of the portfolio.

Most people are attracted to alternative investment because they may yield a higher return than traditional investments, but note that potentially higher returns also may carry higher risks with them. What’s important to note is that alternative investments may be more illiquid than their conventional counterparts – they cannot be sold readily like stocks and bonds – and some may need to be held for a longer time horizon. Additionally, there may be unique fees or tax consequences.

Alternative investment options for your portfolio
There are many investment products available today and it sometimes may be difficult to clearly identify which investments are conventional or alternative. But below are is a list of common alternative investments along with their potential benefits and risks.

Gold
Including a small portion of your portfolio toward precious metals such as gold or silver may offset the performance of other assets in the portfolio such as stocks and bonds, because precious metals typically don’t move in tandem with conventional investments.

How Does an Alternator Work?

March 23rd, 2022

The Alternator

An automotive charging system is made up of three major components: the battery, the voltage regulator and an alternator. The alternator works with the battery to generate power for the electrical components of a vehicle, like the interior and exterior lights, and the instrument panel. An alternator gets its name from the term alternating current (AC).

Alternators are typically found near the front of the engine and are driven by the crankshaft, which converts the pistons’ up-and-down movement into circular movement. Some early model vehicles used a separate drive belt from the crankshaft pulley to the alternator pulley, but most cars today have a serpentine belt, or one belt that drives all components that rely on crankshaft power. Most alternators are mounted using brackets that bolt to a specific point on the engine. One of the brackets is usually a fixed point, while the other is adjustable to tighten the drive belt.

Alternators produce AC power through electromagnetism formed through the stator and rotor relationship that we’ll touch on later in the article. The electricity is channeled into the battery, providing voltage to run the various electrical systems. Before we learn more about the mechanics of the alternator and how it generates electricity, let’s look at the various parts of an alternator in the next section.

Alternator Components

For the most part, alternators are relatively small and lightweight. Roughly the size of a coconut, the alternators found in most passenger cars and light trucks are constructed using an aluminum outer housing, as the lightweight metal does not magnetize. This is important since aluminum dissipates the tremendous heat generated by producing the electrical power and since the rotor assembly produces a magnetic field.

If you closely inspect an alternator, you’ll find it has vents on both the front and back side. Again, this aids in heat dissipation. A drive pulley is attached to the rotor shaft on the front of the alternator. When the engine is running, the crankshaft turns the drive belt, which in turn spins the pulley on the rotor shaft. In essence, the alternator transfers the mechanical energy from the engine into electrical power for the car’s accessories.

On the back side of the alternator you’ll find several terminals (or connecting points in an electrical circuit). Let’s take a look at those:

S terminal – Senses battery voltage
IG terminal – Ignition switch that turns the voltage regulator on
L terminal – Closes the circuit to the warning lamp
B terminal – Main alternator output terminal (connected to the battery)
F terminal – Full-field bypass for regulator

Cooling is essential to an alternator’s efficiency. It’s easy to spot an older unit by the external fan blades found on the rotor shaft behind the pulley. Modern alternators have cooling fans inside the aluminum housing. These fans operate the same way, using mechanical power from the spinning rotor shaft.

As we start to disassemble the alternator, we find the diode rectifier (or rectifier bridge), the voltage regulator, slip rings and brushes. The regulator distributes the power the alternator creates, and it controls the output of power to the battery. The rectifier bridge converts the power, as we’ll learn in the next section, while the brushes and slip rings help conduct current to the rotor field winding, or wire field. Now let’s crack the coconut open.

Opening the alternator reveals a large cylinder with triangular finger poles around the circumference. This is the rotor. A basic alternator is made up of a series of alternating finger pole pieces placed around coil wires called field windings that wrap around an iron core on the rotor shaft. Since we know the pulley attaches to the shaft, we can now visualize how the rotor spins inside the stator. The rotor assembly fits inside the stator with enough room or tolerance between the two, so the rotor can spin at high speeds without striking the stator wall. On each end of the shaft sits a brush and a slip ring.

As we touched on briefly, alternators generate power through magnetism. The triangular finger poles fixed around the circumference of the rotor are staggered, so the north and south poles alternate as they surround the wire rotor field windings. This alternating pattern creates the magnetic field that in turn induces voltage into the stator. Think of the stator as the catcher’s glove as it harnesses all the power created by the spinning rotor.

All these components work together to give us the power we need to run our vehicles. Tesla captured this electrical energy and used it to light up cities, but we only need enough volts to power our stereo, lights, windows and locks. Let’s take a look at how the alternator produces that power in the next section.