Archive for the 'Uncategorized' Category
June 22nd, 2010 by Jennifer
We’ve seen it all in some movie or other, or if you’re following the news about the ongoing global crisis, then chances are you’ve heard of things like shareholders’ meetings, management shake-ups, aggressive buying, hostile takeover, bearish market, etc. We all have a vague idea of how it might be profitable to own stocks, or how lucrative but risky “playing the stock market” can be. To really get an idea of what it all really means though, you need to read up.
What does it mean to own stocks?
A company that is looking to expand but is in need to big amounts of money fast, has two ways to raise the money, the first is by taking out a loan. The technical term for such large long term loans is debt financing. Long term debt financing refers to money borrowed for permanent assets such as buildings, expensive equipment, constructions, etc.; while short term debt financing refers to money borrowed to handle operating costs, like payroll, supplies, rentals, and the like. This is fairly straightforward, as with any loan the company borrows money, and pays it back over time with interest.
The second way is to “go public” and sell stocks. A stock is a piece of the company, when you buy stocks of a company; you effectively become part owner of the company. As a part owner, you will be entitled to a percentage of the company’s net profits, equivalent to the percentage of the company your stocks represent. As this involves a lot of money, going public is not a simple process, the company must be scrutinized to make sure the stocks are sold at a value that really represents their worth.
Why is it good to own stocks?
There are two ways to earn from stocks, the first is by yearly dividends. To make significant money that way though, you need to own a huge amount of stocks. The stories you hear about fortunes made “playing the stock market”, are of people who buy stocks, when a company’s value is low, then suddenly have the good fortune of having their stocks increase in value astronomically in a short period of time, they then turn around and sell these stocks, instantly getting ridiculous returns, at times several times what they invested. Such events are rare, and impossible to predict accurately, fortunes such as these are much like winning a lottery or making a killing at a casino.
How involved can a stock holder be in a company?
When it comes to stocks and influence with a company, the more you own, the more influence you have. The weight of votes on company issues is not measured by head, but by the percentage of stocks owned. Even on companies with a board of directors that must be elected, the selection process favors those who own bigger chunks of the company.
Are there big risks related to owning stocks?
Yes there are risks involved in owning stocks, but the stories of fortunes being lost on stocks are also a bit of an exaggeration. To “lose your shirt” on the stock market, you’d have to foolishly gamble all you personal funds on stocks of a company that suddenly goes “belly up” in a matter of hours. If you invest reasonably and soberly, then your risks are mitigated. When a company you own stocks of goes under, you don’t lose anything more than the actual stocks.
Typically if you want to earn dividends, invest in a stable established company. Whether or not the stocks appreciate much, you can be sure of annual earnings. If you want to make money buying and selling, there is one universal “common sense” rule that traders live by: Buy low sell high. Again though, this type of earning has been likened to taking your money and blowing it in a casino.
June 22nd, 2010 by Jennifer
When it comes to saving for retirement, most people rely on their 401K. A 401K is a great tool that can provide you with the needed income upon retirement. The problem is that most people take a very hands off approach to their 401Ks. While the account will continue to work for you even if you do nothing more that contribute the minimum amount each month, the best returns will be realized if you take a proactive approach.
You first need to realistically determine how much you can invest into the account each month. You should be adding as much as you can. Try to cut out unnecessary things in your life in favor of adding more to your 401K. Currently, you can add up to $16500 each year tax deferred. Your goal should be to reach this limit. Once you hit 50 years old, the maximum jumps another $5000. If you can’t invest the maximum, try to at least contribute 10% of your gross salary. If your employer matches a certain amount, make sure you add enough to get the full matching sum.
Next you must decide how to allocate the funds you are investing. Most 401ks invest the money in a certain way unless you specify otherwise. Standard investments tend to be very secure, but also fairly low earners. When you are still young, these allocations should lean more toward stocks and other “riskier” investments. As you near retirement, the investments should be gradually switched to safer securities such as bonds and CDs.
Once you have the initial allocation, make sure you monitor how the investments are performing. If something isn’t working, don’t be afraid to change it. Depending on market conditions, certain investments do better at certain times. Take advantage of market fluctuations and don’t be afraid to re-allocate your investments from time to time.
Remember that a 401K is a creature that is constantly changing and therefore needs constant attention in order to see the best growth. A financial advisor can help you allocate your investments for the best possible returns. If you actively monitor your 401K throughout your life, not only will the 401K itself perform better, but you will likely also find yourself more interest in investing and financial matters as a whole. This interest can quickly translate into a stronger portfolio and in some cases an earlier retirement.
June 22nd, 2010 by Jennifer
Credit card offers are typically filled with a lot of jargon, so much so that sometimes it’s even difficult to tell if a credit card offer is good or not, simply because the terminology is too confusing. To make an informed choice on which credit card offer is best for you, you should at least know these terms:
APR – Annual Percentage Rate (APR) is the rate which will be heaped onto you bill should you exceed your grace period. APR is the bane of the undisciplined credit card user, and the penalties are quite stiff, particularly for cash advances. APRs may be variable or fixed. Typically, a fixed APR is better as it is more predictable; however, fixed APRs are almost always set high.
Credit Limit- This is the maximum amount you can charge to your card within a given period. In cases where exceeding the limit is allowed, there are hefty over the limit fees charged.
Balance- This is all the money owed to the credit card company at any given time, inclusive of actually purchases, credit card finance charges, fees, penalties etc. The disciplined credit card holder keeps this figure lower than the credit limit.
Finance Charge- Calculated based on the APR and the balance, this what credit card companies charge for the privilege of having a revolving balance.
Grace period- The amount of time you are granted within which to settle your balance, without incurring penalties.
You’ll want to understand these terms intimately before you commit to a credit card. Only then can you get a great deal on a credit card.
June 14th, 2010 by Jennifer
People who have trouble getting approved for a credit card generally fall into two distinct categories. On one side we have those people who are either young and have never had the opportunity to establish credit or those people who have managed to live their lives without the need for a credit card. They are the group with little or no established credit history. The other group is made up of people who have blemishes on their credit records, either due to previous credit card debt or other financial problems. Though they have very different situations, when it comes to getting approved for a credit card, both groups are in the same boat.
Creditors need something on which to base whether or not to offer credit. That’s generally a credit record. But what happens if you have no credit history or had a situation in the past and are trying to reestablish your credibility? You need a way to show the world that you will repay your debts. A secured credit card can often be the best way for both groups to prove their trustworthiness.
A secured credit card is one that is based off of a security deposit. It is basically a debit card that can be used like a credit card.
The user deposits funds into an account and those funds are used to back purchases. The difference is that the account works just like a credit card unless you miss a payment. At that point, funds from your deposit are used to pay the bill. Several months of on time payments will result in a higher spending limit. If the user proves his responsibility over several consecutive months, they will likely be offered a true credit card with a low initial limit. Over time, this too will increase. In this manner, credit is either established or re-established, depending on the situation.
Just because you have had problems in the past doesn’t mean that you will be forever banned from the convenience of credit cards. Establish a secured credit card account and begin the process of rebuilding your credit.
June 11th, 2010 by Jennifer
Interest rates for money market funds are typically significantly higher than interest rates on savings accounts. In exchange for the favorable interest rates they offer for such accounts, banks require a substantial minimum balance. The high interest rates that come with money market accounts are great for those with a bit of disposable money.
Make your Money Earn for You
Recent surveys done by Forrester Research reveal the 30% of American families have over $10,000 in savings or checking accounts, earning little interest or none at all. If you can afford to keep that much money idle in a low-yield savings account, you should seriously consider moving some of it to a money market account. The minimum balance for most money market accounts is only $1,000, and when it is more than that, it isn’t much more.
Federal Reserve Influence on Money Market Fund Rates
As the Federal Reserve continues to push for an increase in target interest rates, the potential earning from money market funds will exceed those of online savings accounts very soon. The 2.25% to 4.5% increase in the Federal Reserve’s funds in the previous year caused money market fund rates to increase from an average of 1.77% to 4.5%.
Such money market funds have the additional benefit of being tax free. Supply of and demand for municipal bonds is what drives the yields either up or down. It should be noted though that when the Federal Reserve jacks up rates, taxable investments climb more steadily than non-taxable ones.
Is it right for you bracket?
Your income tax bracket will dictate whether or not such an investment will suit you. If you are paying 28% income tax or more, then it makes sense to put money into tax free investments; however, if you are in a lower bracket, you should weigh your taxable yields against your tax rate. If your taxable yields are quite high, then money market funds could be just the ticket.
June 8th, 2010 by Jennifer
A money market account is sort of a middle ground between investing in a money market fund and simply putting your money in a savings account. It offers better rates than a savings account, but requires a minimum deposit. While the interest is not as good as with money market funds, there are fewer restrictions on withdrawals.
Savings accounts: minimum risk minimum rewards
Savings accounts have very few restrictions; you don’t need a maintaining balance, and you can withdraw as often as you want with no fines, they are also FDIC insured. The trade off is that the savings account rates are really quite low. Savings accounts are really just a safe place to store your money when you aren’t using it, they have little value as investments.
The Middle Ground: Money Market Accounts
With a money market account, you need to maintain a minimum balance in order to earn interest. You can withdraw from money market accounts, but there are restrictions. The good news is they are FDIC insured. They do earn significantly more interest than savings accounts, but are still considered very conservative investments.
Potentially high yields with money Market Funds
Money market funds are the riskiest of these three options. Money market fund interest rates are dictated by the Fed, you could end up earning a lot when the Fed hikes the rates, on the other hand, you could earn virtually nothing if the Fed drops the rates. Money market funds are quite liquid though, although they do require sizeable minimum balances. Of the three though, they offer the highest potential earnings.
June 4th, 2010 by Jennifer
So can anyone achieve financial freedom? If it is possible for the masses, what does it actually mean? Keep reading to find out whether being able to enjoy financial freedom is an urban myth, or a reality that anyone could make happen for themselves and their families.
What does financial freedom mean then? For most people it creates images of incredible lifestyles that only the rich and famous experience. However, being rich does not mean you have to be famous and there are a lot more people out there who have generated their wealth quietly.
These are the people you never even hear about because they do not need to make any grand statements about their financial situation. Have you ever noticed someone close to where you live who seems to have a decent standard of living but never seems to go anywhere to work?
Unless they have inherited their wealth or won the lottery, you could probably safely say that they live the lifestyle that they do because of some kind of business opportunity that they have taken advantage of. Opportunity is everywhere but most people never see opportunities for a very good reason. They are not looking for them.
So back to being able to achieve financial freedom. This can really be defined in quite simple terms. The single biggest debt that people generally have is a mortgage on their home. We live in a capitalist society where credit is king. On the other hand though, that credit should really be seen for what it is: debt.
Monthly payments for that new car or the latest model of television that is on the market eat away at many people’s incomes. To break it down, most people use credit. But many people do not. They pay for the things they have upfront with hard cash.
So to enjoy financial freedom you would have no mortgage, no monthly payments on a car and no credit used from banks or other lenders. That is what it means. To be able to have no finance of any kind and to know that money will always be there for whatever it is you want out of life.
Is it an urban myth? The answer to that is simple. Being able to have the things you want in life is quite possible for anyone to achieve. You have to think outside the box, look for opportunities in business and in life and be willing to live your life against the grain of what everyone else is doing.
Most people do not achieve financial freedom. Then again, most people do what the masses do. They follow the easy route of what society tells them to do. It is the entrepreneurs, the free thinkers and the savvy business owners of this world that enjoy financial freedom, without the need to shout it from the rooftops.
The best way to achieve financial freedom is to copy someone else who is already making money with an online business opportunity.
June 2nd, 2010 by Jennifer
The best person to handle your issue in any endeavor in life is one that specializes in that field. Medical doctors are best for ill persons but your finances need different kind of specialty. You should be asking for a debt specialist if your debt is becoming or has become unmanageable. No matter the level of debt you have on your neck, you can still get relief from debt specialist who will offer you the best debt relief programs available today.
Credit counseling is a popular phrase but let us not assume that every body fully understands what it means. Credit counseling companies actually started as sources of financial information for customers to develop and take advantage of credit card usage awareness. It used to be very visible in the issues of bankruptcy before now. An body that was at the edge of declaring bankrupt were meant to undergo credit counseling so as to fully understand the adverse effects of his or her action. At that time, credit counseling was actually used to control delinquent accounts and discourage people from filing for bankruptcy.
The recent economic meltdown was really good business for them because lots of folks needed financial or credit counseling, so to say. This prompted many unscrupulous companies to spring up and enter the industry with the sole aim of making fast undeserved monies. These scammers that pretend to be credit counselors generally charge more fees than other or will do anything to lure the unsuspecting client to their domain where he or she will be ripped off. The Better Business Bureau and Federal Trade Commission are two organizations that had continued to frown at such practices and they go to great extent to compile and publish these erring companies on their websites. Or will be glad to readily provide any information about whichever service company once they are asked.
You have to be careful before signing up with credit counseling firm so as not to deepen you indebtedness.
Don’t be afraid to check on the profile and qualifications of the professionals in any given credit counseling firm. This is because a reliable credit counseling company should have certified debt professionals that will be on hand to help their clients.
It isn’t the best thing to get in touch with a credit counseling firm and chose debt relief program same day. They should be given time to study your peculiar financial situation. This involves looking at the loans on your neck and the entire monies that accrue to you monthly while adequately considering you living expenses. This will enable them to properly advise you on the kind of budget you need to pull yourself from debt.
The credit counselors can’t force you to take any debt relief program against your wish. What they would do is just give your professional advice based on your present financial position.
You may opt for debt management programs only when you are convinced that your credit or debts can’t be resolved by mere professional advice and help.
The debt relief specialists should be able to work out a feasible repayment plan with your credit card company. They would eliminate all forms of harassment that normally comes from the creditors because they are going to be in charge of repaying the agreed sum monthly on your behalf.
Andy Eze is a writer and consultant for CreditCardComparison.com.au a Free Credit Third Party Reviewer of Financial Products.
May 27th, 2010 by Jennifer
Panama City Beach is a magnificent all year long family vacation vacation spot, and is a foremost spring break locale for university kids. Here is a list of applicable tax facts for those thinking about a move to this sunny area.
There isn’t any state income tax in Florida, plus the sales tax is 6%. Gasoline tax is $0.126 per gallon.
Taxable assets are taxed at a figure of $1 per thousand dollars of worth.
Florida uses the rate of estate tax permissible on the Federal income tax return.
The real estate tax is valued at $10.06 per thousand dollars of worth in Panama City Beach
Median home values have declined over 13%. Seventeen years is the medium home age. Approximately 40% of all houses were built in the 1980’s. The residence vacancy rate is roughly sixty percent, while residences that are owned represent twenty-nine percent.
You will find numerous high rise condo towers all along Front Beach Road. A few with beach availability, some face the street.
Flood insurance is necessary because the majority of residences are within a small length from water.
Florida grants the following property tax exclusions:
$50,000 homestead exemption.
If age 65 or older, after satisfying eligibility limitations, a $50,000 homestead exemption.
$500 for widow or widower, disabled, or blind.
$5,000 disabled veterans.
Total permanent disability is exempt from property tax.
If purchasing a bigger or smaller home, existing property owners may reassign their “save our homes” allowance to a another homestead within two years of the sale.
There’s a new substantial property tax exception of $25,000.
The main employer in close by Panama City is the public school system, followed by health care, with two big hospitals.
In May of 2010, the newly built Northwest Florida Beaches International Airport is scheduled to commence business. This is the latest airport in the US ever since 9/11. It will take the place of the present airport close to downtown Panama City, which was constructed in 1934. In the beginning, Southwest Airlines will provide service to four cities.
May 24th, 2010 by Jennifer
Half of Americans do not have a retirement plan through their employer, and of those who do, a small number of are saving enough to finance a retirement that will last several decades. President Obama announced last September, his strategy to influence more Americans to put money away for retirement. These initiatives help it become easier for employers to regularly enroll personnel in retirement plans, an alternative they had before that was more intricate. 401ks will present the choice to be funded by unused vacation and sick days, and there is a way to make use of tax refunds. Here is a look at how the latest savings opportunities can give your retirement a shot-in-the-arm.
Automatic enrollment in retirement accounts.
Many personnel don’t initiate a 401k by means of their employer for the reason that they fail to see the consequence. Unless an employee initiates the process of opting out of the sign up process, a lot of sizeable businesses now routinely sign up staff in 401ks to entice them to save. Small corporations are allowed to employ involuntary enrollment because of recent regulations. As outlined by Lenny Sanicola of WorldatWork, a human resources alliance, automated sign-up needs to be approved by the IRS prior to a corporation begins it.
The automated enrollment process was just simplified by the IRS to ease small businesses’ execution of the process. A SIMPLE-IRA is used by companies without a conventional 401k plan. In spite of this, they have to furnish employees no less than 30 days’ warning stipulating what percentage of their wage will be withdrawn from each pay period and how that cash is going to be invested. For those workers that select not to participate, alter contribution quantities or investment choices, the occasion needs to be given a minimum of once per year to make modifications.
Investing unused sick and vacation days.
Per a 2009 Expedia and Harris interactive survey, about one third of employed US adults usually do not use all their allotted vacation days. Personnel who are paid for unused sick and vacation time may now be allowed to move that money to their 401(k). Steven Kronheim, vice president and associate general counsel for TIAA-CREF, commented “This could be an effective way of increasing retirement savings when people need to do just that.”. “Those payouts when people do decide to retire can be very significant.” In spite of this, the reaction continues to be weak. Officials from Fidelity, T. Rowe Price, and Vanguard — the three major 401(k) administrators — state little, if any, of their customers have begun shuttling unused leave time into 401(k)’s. David Phillips, a 401(k) consultant in Towers Watson’s Minneapolis office said, “The paid-time-off deferral might be a nice feature to add to a plan and offer to employees, but in this type of limited budget environment, it’s probably a little farther down the priority list”. Given the small sum of compensation for time-off, employees might not want to exchange this to contributions. Per a Mercer analysis, compared with an norm of 40 or more paid days off in Finland, Brazil, and France, American workers have no more than 15 vacation days per year. Many businesses also offer income for unused days off only once employment is concluded — a time when that windfall might be needed.
Bonding with your tax refund.
Workers can already have all or a portion of their tax refund directly deposited in an IRA. With this year, taxpayers can also use their refunds to purchase Series I Savings Bonds by designating a box on their tax return. A pilot review discovered the savings bond choice at tax time attracted numerous workers to save: The mainstream of which 65 percent had lower than $5,000 in total wealth. A fixed monthly rate of yield and an inflation rate semiannually based on cycles in the consumer price index. Even though the bond is tax exempt from a state and local level, federal income tax is mandated at the time the bond is turned-in. “As outlined by Timothy Flacke, executive director of the Doorways to Dreams Fund, “They’re the very meaning of secure”. “They can be replaced if they are lost or stolen, they can’t lose value, and they are inflation protected.” Savings bonds are not able to be redeemed in the first 12 months of their period, and require a penalty of three months’ interest if redeemed in the first five years, but do have a maturity up to 30 years. Next year, the alternative of adding co-owners like dependents will be possible.
