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Prepaid card InstaForex MasterCard

noreply@blogger.com (AdminDBHB) — Sun, 05 Sep 2010 14:26:00 +0000


		Company welcomes you!

Prepaid card InstaForex MasterCard

InstaForex bank card system has been officially implemented

The international online forex broker InstaForex Company offers its customers to take advantage of a new service: the prepaid InstaForex MasterCard. The cards are emitted by InstaForex and also by the international payment system Payoneer (the USA).

The funds you have on your InstaForex account are now as easy to use as the cash in your purse: you can have them transferred to your debit InstaForex MasterCard. Thus, InstaForex MasterCard ensures the direct connection between your InstaForex trading account and cash money.

During working days the funds can be withdrawn to InstaForex card as fast as via payment systems. The only difference is that the money is transferred to your MasterCard and then can be withdrawn at any cash dispenser all over the world. With InstaForex MasterCard you can enjoy one of the highest daily cash withdrawal limits on the market - 5000 USD, while the monthly limit is almost nullified – it is not over 100 000 USD.

Never before have Forex accounts been as easy to use as now, with InstaForex MasterCard.

You are welcome to order your InstaForex MasterCard in your client cabinet.

You can use your InstaForex MasterCard for several trading accounts opened in your name.

InstaForex MasterCard: the direct access to your trading account funds.

Do not hesitate to order your debit InstaForex card right now!

Sincerely, Clients Service

If you have any questions you can make a phone call using one of the Instaforex Toll free numbers right now:

USA and Canada	1-888-472-1855
UK	0-808-120-1991
Switzerland	0-800-898-548
Malaysia (Кuala Lumpur)	1-800-883-810
Malaysia (Johor Bahru)	1-800-882-528
Indonesia	001-803-017-910
Georgia	822-140-799
Other countries	+7-4012-763-051, +7-4012-751-961

Start making profit with InstaForex right now!

Contact Information:
Western Guarantor
236022, Teatralnaya 30, 5th floor
Kaliningrad, Russia
E-mail: support@instaforex.com
Web: http://instaforex.com

InstaForex Companies Group is an international brand providing online trading services to the clients all over the world. Company' operation is regulated by the local and international legislation. This letter may contain a personal information for access to your InstaForex trading account, so for the purpose of safety it is recommended to delete this data from the history. If you have recieved this letter by mistake please contact the Clients Department of InstaForex. The full list of representative offices is available at the company's website http://instaforex.com

InstaForex Companies Group | Western Guarantor | Teatralnaya 30, 5th floor | Kaliningrad | 236022 | Russia

Try Interbank FX(IBFX)demo

noreply@blogger.com (AdminDBHB) — Thu, 05 Aug 2010 08:08:00 +0000

Hi，

My name is Maggie. I have been assigned to reach out to you and assist you in any way I can with your Interbank FX demo account. This is in no way a sales call--- I am just here to help.

Many customers benefit from a quick introduction to the MT4 trading platform, some help with setup and a quick review of some of our trading tools and educational materials. Or,if you're already famaliar with FX trading, I can show some tips and tricks that might make navigating the world of currency trading a bit easier. I'm flexible, though, and we can use our time together however you would like.

Feel free to call or email me anytime using my direct contact details below---or if you prefer, we can schedule a time when we are both available. We have a toll free number for Malaysian customers: 1.800.813.776. I am typically here from 12:00 AM till 21:00PM from Monday to Friday. Or, feel free to email me at maggie_g@interbankfx.cn and we can arrange a time for you to contact you.

Hopefully we can connect shortly.

About Interbank FX (IBFX)

Headquartered in Salt Lake City, UT, USA, IBFX Holdings LLC is the parent of the Interbank FX group of companies: including IBFX, LLC, IBFX UK Ltd and IBFX Australia Pty. Ltd. IBFX LLC is a provider of online Forex trading services, offering individual traders, money managers and institutional customers proprietary technology, tools and education to trade spot foreign currency online. Interbank FX LLC has distinguished itself among industry leaders with its unique multi bank liquidity feed, proprietary tools and services, and remarkable focus on customer care.

Serving more than 35,000 clients from more than 140 countries around the world, Interbank FX LLC is regulated as a member of the National Futures Association (#326091) and the Commodity Futures Trading Commission as a Futures Commission Merchant.

Founded in 2001 by a group of foreign exchange veterans, our team work hard to exceed the expectations of our ever-growing clientele. Unlike some other brokers, Interbank FX has a 'no dealing desk' business model that aligns our interests with our customers. We also feel that we ofer some of the best customer service in our industry. Not only are we willing to take the time to walk you through our platform, we speak 17 languages in house. We feel that our success is closely tied with our customer's success. As part of our "Customer Centric" business model we are constantly looking for new tools for our traders. Some of our recent additions include our new pattern scanning program, GPS (For more information on the IBFX-GPS,please visit: http://www.ibfx.com/Tools/PRS.aspx) and our newest addition, the educational site www.ibfxu.com.

On July 19^th,2007,IBFX had received a $40 million minority equity investment from Spectrum Equity Investors. Todd Crosland, founder and CEO of IBFX said, "We are extremely pleased to have Spectrum Equity make this strategic investment in the Company, and believe this partnership will help IBFX achieve its goal of becoming the premier forex trading platform in the marketplace. With their domain expertise and financial resources, Spectrum represents the ideal partner to help IBFX capitalize on the tremendous growth opportunities facing the company and to assist our continued innovation in establishing market-leading execution and service offerings."

For the third year running, IBFX has been crowned Best Foreign Exchange Broker at the Shares Awards continuously since 2007,2008 and 2009. Throughout 2009, Interbank FX has been recognized by an array of global financial media in recent years including:

Best Foreign Exchange Broker 2007, 2008, & 2009 - Shares Magazine
Inc 500 - 2008 & 2009
Best Online FX Provider 2009 - Money AM Online Finance Awards
Ernst and Young Entrepreneur of the Year Award - National Finalist 2009

For more information about Interbank FX Awards,please visit:

http://www.ibfx.com/Corporate/page/Interbank-FX-Awards.aspx

Salt Lake City, November 30, 2009 ― Interbank FX UK Ltd, a sister company to leading U.S. off-exchange retail foreign currency (Forex/FX) broker Interbank FX, LLC (www.ibfx.com), announced the plans to open an office in Central London, aimed to accommodate and better serve the retail FX customer in the UK and Europe.

Salt Lake City, UT, USA―April 6, 2010― IBFX Holdings LLC, parent company of leading U.S. off-exchange retail foreign currency (Forex/FX) broker Interbank FX LLC, announced today the plans to open a Sydney based company aimed to accommodate the retail trader within the Australian continent and neighboring countries.

Below is the link for registeration and download of IBFX MT4 demo account:

http://www.ibfx.com/Platform/DemoRegistration.aspx

Please open the MT4 plaform after installation and set up a demo account.(From Navigator right click Accounts,then fill in the form for new account,then choose the IBFX-MT4 demo,then your demo account will be set up. If you have any questions about downloading the demo, please feel free to contact us.

IBFX offers to our demo and live account holders many free trading tools. The IBFX- PRS(multi language interface) scans multiple currencies and time frames looking for price consolidation patterns. When a forming pattern is identifed, traders using the PRS will be alerted.

Go to IBFX-PRS download page:http://www.ibfx.com/Tools/PRS.aspx

IBFX has 3 levels of global partnership: Introducing Advisory, Money Manger and Private Label. If you are interested in any of the programs, please feel free to contact us.

Trading in the off-exchange retail foreign currency market is one of the riskiest forms of investment available. Full risk disclaimer can be found here: http://www.ibfx.com/Legal/RiskWarning.aspx.

2010-08-05

Best Regards

Maggie

Interbankfx (IBFX)北京代表处

电话: 8009903300 / 010-58673256 / 58672792

传真: 010-58673256

官方网站：www.ibfx.com

在线支持: http://www.ibfx.com/ContactUs/

Toll Free: 1-866- 468-3739

International: 1-801-930-6800

Fax: 1-212-884-0609

3165 E. Millrock Dr., Ste. 200 Salt Lake City, UT 84121

www.ibfx.com

Get your car insurance and road tax online FAST!

noreply@blogger.com (AdminDBHB) — Wed, 28 Jul 2010 10:18:00 +0000

Dear Customer,

Now you can renew your Car Insurance via HSBC online anytime at your convenience and get an online quotation instantly!

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6 Financial Mistakes Couples Make

noreply@blogger.com (AdminDBHB) — Tue, 15 Sep 2009 13:45:00 +0000

MSN has an article about the 6 financial mistakes that newlyweds make. Reading through it, I realized a lot of the same tips could apply to any couple that lives together, newlywed or not. And really, some of these things are good for everyone to keep in mind.

According to the article, the 6 things to avoid are:

1) Keeping Money Secrets
2) Not Having A Budget
3) Giving One Person The Financial Reins
4) Dragging Debt Down The Aisle
5) Sweating The Small Stuff
6) Failing To Plan For An Emergency

Have you noticed any other mistakes couples tend to make? What are they?

URL: http://articles.moneycentral.msn.com/CollegeAndFamily/LoveAndMoney/6-money-mistakes-newlyweds-make.aspx?page=1

Five Financial Planning Tips for Newbies

noreply@blogger.com (AdminDBHB) — Mon, 14 Sep 2009 23:34:00 +0000

Financial Planning is important in every transaction that one decides to make regarding money. Financial planning that works smoothly can make you have enough money compared to nothing at all. Financial planning also involves sticking to the plan and not impulse buying just because it was a good deal. Don’t buy something just because its the hottest thing now. Here are five financial planning tips for newbies.

Student Loans

Financial planning also includes college student loans. Do you have enough money to pay them each month? How are you going to pay them each month? You might need to get a second job or refinance with a company in order to stretch out the payments.

Purchase A House

Financial planning is a main factor in whether or not you are prepared to buy a house. You need to have enough money to put a down payment on a house without going broke. You need to have enough money to make the tax payment each year. You need to have enough money to replace anything that breaks and general maintenance. The most important thing is to ask yourself if you can successfully pay the mortgage payment each month without any struggle money wise. If you will end up in a money crisis due to the mortgage payments each month then you obviously can not afford the house and you may just end up becoming part of the economy’s statistics.

A Checking Account

One major thing that is important is your checking account. You do not want to bounce any checks whatsoever. This part of financial planning is very important. It will help you prevent any bounced checks as long as you follow a few simple steps like not overspending, making a sound budget, and impulse buying.

If you are married then you and your spouse need to decide on bank accounts. You need to decide whether to have a joint bank account or each have your own bank accounts. Some couples have one joint bank account and both in the couple have a separate checking account for personal spending money.

Financial planning for is important due to understanding at a early time that you need to be prepared. What type of stuff do you need to be prepared for? For example, rent and vehicle repairs and maintenance are a few. It’s a good idea to have an emergency fund of at LEAST $1000 for those unexpected expenditures.

Credit Cards

Another thing is whether you want to use credit cards or not. Some people are anti credit cards and others love credit cards. If you are married then you need to decide with your spouse if you think credit cards are a good idea to use. You need to decide whether or not have enough to pay for stuff that you charge on credit cards. If you or your spouse are impulsive buyers than it’s generally a good idea to stay away from credit cards.

Financial planning is also important in learning how to spend below the amount of money that you make. You don’t want to end up spending more than you can afford each month otherwise you will end up broke.

Affordable

Can you afford a certain purchase? This is where financial planning comes to mind. You need to ask yourself a few questions. Ask yourself can I afford the payments? Can I afford it without being broke? If you have difficult time making the first payment on the item then you most likely can not afford it.

Good financial planning is essential and will do you a world of good. Following your financial plan and wise budgeting will enable you to have more and spend less in the long run. Good luck.

How much to save?

noreply@blogger.com (AdminDBHB) — Sun, 13 Sep 2009 09:36:00 +0000

The first step in financial planning is to decide on the proportion of the current income that should be saved for the future. The answer is "as much as possible".

Some people are frugal. They spend only to meet the essential expenses and save the remainder of their earnings for the future. They are willing to forgo their current spending and enjoyment - no vacations, search for cheap offers and bargains, take public transport, find inexpensive eating places.

There are many opportunities to leave frugally and still enjoy the pleasures of life. The parks and public spaces are free. Activities and courses in community and sport centers are affordable. Walking is free and good for the body.

As a rule of thumb, you should save 10% to 15% of your earnings and keep it for future needs. After meeting your essential expenses and savings, you can still have a balance for the discretionary spending, such as vacations, branded goods, tuition, entertainment or the pleasures that do cost money.

It is very important to avoid getting into debt, including borrowing on credit cards, that charges a high interest burden. It is already difficult to earn money and set aside savings, yet some people have to pay interest that takes away 10% or more of their earnings!

Do not invest in a property that requires more than 40% of your earnings to service the monthly repayment. Do not buy a car that needs more than 20% of your earnings to meet the monthly repayment. You have other options that should be explored. If you take these loans, you must make sure that your job is secure, as the monthly repayments can be a heavy burden when you are out of a job.

If your spouse is also working, which is now quite common, the above rules should be applied on the combined income.

To recap: as a rule of thumb, save 10% to 15% of your earnings. When you are clear about your financial goals for the future, you can adjust the amount that you need to save.

No Debt Plan Guest Post: Financial goal planning - Set it, live it, reach it.

noreply@blogger.com (AdminDBHB) — Sat, 12 Sep 2009 01:48:00 +0000

You’ll never reach a financial goal you never set. Not exactly a profound statement, but simple and true. If there’s something you want to achieve, you’re much better served setting a goal and tracking your progress along the way. But before you do, ask yourself a few questions:

Are you going through life with a sense of purpose and direction? Or aimlessly hoping to reach some unspoken financial goal? Do you want to retire? Do you want to buy a home? Do you want to get out of debt? Most of you who read this want to achieve these goals. Have you made any progress?

We all have financial goals and I would guess some of them are similar to the questions above. Simply hoping that you will be able to retire, buy a home, or get out of debt will likely lead to failure. Why? Because hopes are not action oriented. Hopes are more like future dreams and visions of how life could be.

Goals are solid and foundational. When used properly, goals can greatly increase your chances of reaching those off-in-the-distance dreams. So here are 3 more questions to help you identify a solid path: Where am I now? Where do I want to be? What steps do I need to take to get there?

Once you know where you want to be, you can break up the big task into manageable sections. This also makes it easier to track your progress. For example, let’s say you want to save $5,000 to buy a used car with cash, and you want to have that money set aside in your savings account one year from now. That’s a big goal and seems daunting at first. But if you break the $5,000 goal into 12 separate $416.66 goals, things look a little bit more manageable. You don’t need to focus on setting aside $5,000. Instead, focus on setting aside a little more than $400 per month.

A little more than two years ago, I decided I wanted to get my MBA by taking night classes at a local university. The program would take 2 years and I planned to keep working. It was a big task to wrap my head around. But I broke everything down into manageable bites and it made the overall process that much easier. I had to study for and take the GMAT, send in my application with GMAT score, and pay tuition. During classes I had to buy books, show up on time, do homework, complete projects and take tests. This may seem like a simple concept, but breaking big tasks (get my MBA) down into manageable steps (apply to school) makes the process a lot easier to handle.

What’s it all mean? For starters, stop dreaming about financial success and start planning for it. Identify 3 major goals you want to complete by the end of this year. Then, break each of the goals down into manageable steps. Have someone hold you accountable.

Tracking your goals — on the bathroom mirror, on your laptop, on the side of the refrigerator — provides motivation. Seeing yourself succeed at the small steps and growing closer to overall success will help you get over the bumps in the road that inevitably will pop up.

Start your financial goal planning today. And enjoy your success when you reach it.

Economic crisis has increased consumer money confidence

noreply@blogger.com (AdminDBHB) — Fri, 11 Sep 2009 04:43:00 +0000

Confidence and interest in investing has increased among consumers as a result of the economic crisis, a survey from the Institute of Financial Planning (IFP) shows.

Consumer surveys conducted by the IFP as part of its second annual Financial Planning Week revealed almost two thirds of consumers were more interested in understanding money and investments as a result of the economic crisis with only 28% claiming to be unmoved.

The results also showed an overwhelming majority of people felt confident that they would know how to start a nest egg if they were given £1,000, with 97% feeling confident about doing so.

Almost three quarters of consumers claimed to view their pay cheque with a sensible eye but the remaining 28% confessed to seeing it as an opportunity to ‘splurge rather than save’.

Although 79% of consumers are not putting off saving, a total of 46% admitted to not having set up long-term financial goals.

Nick Cann, chief executive of the IFP, said the results were ‘reasonably promising’ but much more needed to be done to raise awareness among consumers as to the importance of saving.

‘Once again not enough is being done to set out long-term goals and this is where professional financial planners come to the fore. Life planning and cash flow modelling are essential parts of the process. [The] IFP conference is focusing on helping planners to master these key differentiators for the benefit of clients,’ he said.

Dennis Hall, certified financial planner with Yellowtail Financial Planning, said it was surprising that the minority of respondents had established short-term goals.

‘Well articulated goals help bring the purpose of saving to life and whilst short-term goals are easier to picture, long term goals can be equally vivid and motivational,’ he said.

Technorati Tags: financial planning,money,cash flow

Boomerang budgeting

noreply@blogger.com (AdminDBHB) — Thu, 10 Sep 2009 22:59:00 +0000

From Kiplinger's Personal Finance magazine, October 2009

What do you call an empty nest when your grown kids move back home? The Real World, recession edition. Job prospects for the Class of 2009 are "considerably below" those of the past five classes, according to the National Association of Colleges and Employers. Not surprisingly, many young adults have decided to wait out the recession under the parental roof, says Manny Contomanolis, president of NACE. Based on what he's been hearing, moving back home "is more prevalent than it's ever been."

Cecelia and Jerry Cannizzaro are enjoying their full-house experience. Not only do they get a chance to reconnect with their two grown sons, but they're also helping them build a solid financial base so that when they're ready to fly the coop for good, there won't be any crash landings.

Mark, 24, has been living at home in Oakton, Va., since he graduated from the College of William & Mary in 2008. Stephen, 22, returned after graduating from the University of North Carolina at Chapel Hill in May. Both hope to find jobs that will pay enough to enable them to move out and be on their own. Until then, Camp Cannizzaro -- the family's light-filled, spacious home in a leafy Washington, D.C., suburb -- will have to do.

But for many families, such newfound togetherness can be a challenge. To avoid heartburn on one side of the equation and boomerangst on the other, be sure to discuss expectations upfront (for editor Janet Bodnar's take on the boomerang experience, see Five Lessons From Boomerang Parents).

Make the rent decision. Since graduating last year, Mark Cannizzaro has worked at several temporary jobs, including a nine-month stint as a legal assistant at a Washington law firm. His parents allowed him to live with them rent-free for the first year. "At $16.50 an hour, how can you accumulate enough money to move out?" says Jerry, a financial planner. This spring, the Cannizzaros decided it was time to ask Mark for a modest monthly amount -- but they suspended the requirement when his last temp job ended.

Is it appropriate to ask your own flesh and blood to pay rent? Sure, says Sheryl Garrett, a financial planner and founder of the Garrett Planning Network. "You want them to have some semblance of reality, so it's not a free ride," Garrett says. That doesn't mean you have to soak them for all they're worth. "I'd charge less than the going rate. If the monthly rent in your market is $500, you might charge your child half that."

Some parents use the rent payments as a form of forced savings, stashing the adult child's monthly rent contribution into a savings account that can be used for future expenses, such as a down payment on an apartment when it's time to move on and out. But others, such as Carol Harms of Elmhurst, Ill., encourage adult children to take advantage of the family home for as long as they like. Charlie, the second of four, took his mother up on the offer. By working two jobs and saving hard, he was able to pay off $6,000 in student loans and save more than $30,000 -- by age 25.

Encourage the job hunt. Whether you charge rent or not, sooner or later you expect that your kid will find a job and accumulate enough money to get to the next stage of life. Everette Orr, a financial planner in McLean, Va., says that adult children who forever come up empty on the job front may not be looking in the right places. "What the kid is saying is, I don't want to be underemployed or employed at something I don't want to do.'"

Fair enough, but you might decide to give your young adult time to focus on finding the job that will launch his or her career, or at least point it in the right direction. In that case, be clear that you expect the daylight hours to be well (not Wii) spent, says Garrett. "Tell Junior, 'While you're here, your job is to find a job.'"

Or split the difference and insist that the kid get a part-time job, says Judy Lawrence, author of The Budget Kit (Kaplan, $20). "That gets them a little bit of cash, gives them some structure, and shows they are working." If they do well, she says, they could even impress the boss enough to score a full-time job.

Divvy up expenses. Young adults don't just lug a backpack and duffel bag through the door -- they also walk in with ongoing expenses and often a freightload of debt. In 2007-08, two-thirds of bachelor's-degree candidates graduated with student loans, owing an average of more than $23,000, according to Mark Kantrowitz, of FinAid.org. A 2009 study by Sallie Mae shows that undergrads carry an average of $3,173 in credit-card debt.

Somebody's got to pay those bills, but who and how? To sort that out, sit down with your kid and review his or her fixed and variable expenses, says Lawrence. Then, identify a resource for each one -- say, money from a part-time job for car payments, graduation gifts for entertainment, and the bank of Mom and Dad for food and gas.

Chances are, you'll end up with a few line items that your child can't afford to cover. With federal student loans, Uncle Sam lets you, the parent, off the hook by offering new grads a grace period of at least six months before repayment begins, and the government has repayment programs that suit every financial circumstance (see How to Develop Wealth Mindset).

As for car and health insurance, you owe it to your peace of mind -- and your own financial security -- to keep the payments current until your young adult can take over. "The risk is that they walk in front of a car and wind up with big expenses," says Russ Childers, an independent insurance agent in Americus, Ga. "If you only have to pay a hundredth of that expense, it's worth it." (To explore health-insurance options, see the box below.)

Set the house rules. Imagine coming home from a long day at work and finding your sink full of dirty dishes and your newly minted grad awaiting a home-cooked meal. Bulletin to boomeranger, says Garrett: "If you don't have to come up with money to pay the rent, utilities or groceries, you've got to do some things around the house." Even the most assiduous job hunters have time to make themselves useful, she says.

Bret Crafton, 24, has been unemployed for more than eight months, having lost his job at Fidelity Investments when his division was moved out of state. Since he has been living at home, in Swampscott, Mass., he has learned that his mother, Phyllis, expects him to prepare the meals, not the other way around. He makes dinner three times a week, mows the lawn and does the grocery shopping -- all while looking for work, operating his own job-networking site (AgoraBoard.com) and studying to become a chartered financial analyst. Occasionally, he takes on a bigger job, such as fixing the brick steps behind the house, for which his parents pay him -- an arrangement that helps both sides out.

As for general house rules, adult children should at least behave as other good guests would, Garrett says. "They've got to pick up after themselves, lock the door at a certain time, not wake everyone up at night." You have a right to impose your values under your own roof -- but you might choose to live and let live. For the Cannizzaros, that means letting Mark and Stephen mostly come and go as they please. Says Jerry, the family cook, "All I want to know is whether they'll be home for dinner."

Financial Planning - Five Numbers That Will Guarantee Your Financial Success!

noreply@blogger.com (AdminDBHB) — Thu, 10 Sep 2009 14:43:00 +0000

It’s amazing how people just love a good numbers game. Persons have become so enraptured by the lottery that they are mistaking it for an Assue- a local tradition where persons pooled their resources over a period of time for the benefit of each participant.

Countless persons have educated their children, built houses, purchased real estate, furniture and cars using this method of savings.

Unfortunately no matter what they tell you “playing numbers” is nothing like an Assue. You have a better chance of drowning in your bathtub or being struck by lightning than getting your money back when you play that “numbers” game.

While an Assue allows you to receive your entire contributions with the only risk being the reputation of the person “keeping” the Assue, the only time you get your money back from the lottery is “if” your numbers happened to “fall”!

The good news though is that there are five numbers that if you play them you’re guaranteed not only to win but to create wealth for you and your family. So here are those numbers.

Give away 10%. No matter what your financial circumstances you’ve been blessed with an income therefore you should feel comfortable sharing your blessings with others. Now this may be done in a number of ways, you can either give this amount to your church or you can give it to a charity of your choice.
Save 20%. You should be saving no less than 20% of every dollar you earn. This is the only way that you would be able to help yourself to create wealth. 5% of this amount should be placed in a savings account with an ATM card attached to it, why? You may not realize it but life happens and this account represent your peace of mind account. It allows you to take care of everyday occurrences such as a battery dying, the car braking down or even a trip to the doctor. The other 15% should be use to put your money to work and this can only be done through long-term investing.
Keep expenses at 40%. It is very important that you do not allow your expenses to exceed 40% of your income and this is where most persons go wrong. This number represents your debt service ratio which is the comparison of your income to expenses. Whenever this number is greater than 40% you run the risk of experiencing financial difficulties.
Spent 15% on your personal development. This again is a critical number because you’re only able to generate the income you need based on the skills that you take to the market and by developing your skills, you are able to demand more from the marketplace. So be sure to spend at least 15% of your income developing your marketable skills which in turn will enable you to increase your income.
Spend 15% on you. Life is short so you should endeavor to enjoy your life as much as possible and this 15% of your money should be spent on you enjoying life. You will also increases the amount over time until you’re spending at least 30% of your income and enjoying life. But this will only happen after you maximize your skills and income potential.

There you have it the five numbers that are guaranteed to help you to painlessly create wealth.

Technorati Tags: house,home,financial,saving,money,wealth,car,furniture

Retirement at 74 plus for those who neglect planning

noreply@blogger.com (AdminDBHB) — Thu, 10 Sep 2009 06:33:00 +0000

Having studied Government data, Standard Life has come up with a realistic retirement age for Britons with no retirement savings.

The insurer estimates that those who have neglected their financial planning will need to remain at work until between 74 and 86-years-of-age, taking into account the Government’s decision to increase the state pension age to 68 in the future.

According to the life and pensions expert, many of those expecting to rely on state benefits at the end of their working lives will receive a retirement income equivalent to a mere 21% of their pre-retirement earnings.

For example, a male currently aged 27 and earning an average salary of £25,800 will be eligible for a state pension at 68 years of age.

However, retirement at this point with no savings would leave that person on 34% of their pre-retirement income, or £170 per week in state benefits.

By deferring retirement until age 79, the same man would receive a respectable 66%, or two-thirds of pre-retirement income.

This comes about because of annual increases in state benefits that can be deferred.

Standard Life’s senior pensions policy manager, Andrew Tully, comments: “The holy grail of retirement saving is to fund an income worth two-thirds of your pre-retirement income.”

He adds: “If people rely on the state in the hope or belief that the Government will bail them out, they will either have to retire on a basic income or simply face the music and defer retirement until much later.”

The ONE Thing You Must Do to Reach Your Financial Goals

noreply@blogger.com (AdminDBHB) — Wed, 09 Sep 2009 11:07:00 +0000

Why do we always want a silver bullet or a magic formula for everything?

Is it because we’re lazy? Do we simply want to find the easiest way to reach our goals?

Maybe it’s because we want to check things off our lists so we can move on to the next item.

When it comes to our finances, most of us (myself included), want to turn things around overnight and move on.

Unfortunately it’s not that simple.

Wouldn’t it be nice if there were a silver bullet for our finances?

What if I told you there actually is one when it comes to handling your money, but it may not be what you think.

No, I’m not talking about winning the lottery, or debt consolidation or some magic potion that wipes out your credit cards and max funds a Roth IR for you.

So what is it?

The ONE thing you must do to reach your financial goals, the silver bullet for personal finance is this:

Spend less than you make!

WAIT! Before you say, ”That was a letdown. Of course we have to spend less than we make, I’m not stupid”.

You’re right! It is simple and no you are not stupid. But you have to admit, we are prone to ignoring the simple things because we think we’ve mastered them.

I am constantly amazed at the sheer number of people I run into and talk with that have no idea how much they spend on a monthly basis. Some can’t even tell you what their take home pay is.

They usually speak in general numbers and broad strokes.

There’s a great story about Vince Lombardi, the legendary coach of the Green Bay Packers, who being frustrated with his team’s performance said as he picked up the pigskin, ”Gentleman, THIS is a football”.

He went on to talk about the basics – blocking, tackling, and sacrifice.

Back to the Basics

There’s a great lesson to be learned with our money. Once in a while we need to pause, look at our situation and go back to the basics to see how we’re doing.

The fundamentals like ”spend less than you make” aren’t so basic that we never look at them again. It’s easy to get off course and we need to recalibrate.

It doesn’t matter how much you make, if you spend more than that you will be headed for financial disaster.

This is happening to someone I know who makes more than some of us could imagine making in several years, and each time I talk to him I remind him he’s got to start spending less than he makes, and he inevitably reminds me of this basic principle.

Spend Less or Earn More

Some of you may say well I’ll just earn more than I spend. That’s fine. I encourage you to do that. But that isn’t always easy to do. Getting spending under control requires more sacrifice, discipline and self control.

Get your expenses in order AND increase your income and you’ll be even better off.

Simple But Not Easy

Unfortunately, the silver bullet for finances is very simple, but it’s not easy. It still takes time. It still requires effort. And it still won’t happen overnight.

But I can guarantee that if you spend less than you make and start planting seeds of saving and giving, it won’t take long to start seeing the fruit of your labor.

It’s time to get back to the basics and revisit how much you’re spending versus how much you’re making.

How About You?

Do you ever get off track and finally realize you need to get back to basics?

What are some ways you “recalibrate” your financial planning efforts?

Tags: Achieving Your Goals, Getting Ahead Financially, Saving Money

Financial planning helps borrowers

noreply@blogger.com (AdminDBHB) — Tue, 08 Sep 2009 08:13:00 +0000

Home loans are huge financial commitments that usually span over decades. Defaulting on a home loan can have serious implications. A borrower must plan and manage his finances well ahead to avoid a debt trap.

There are three broad aspects of financial planning:

Predicting need
You must be able to predict any major expense or financial commitments. If you are planning to take a home loan, you must make arrangements for 8-10 percent of the total loan amount that would be needed as down payment or margin money. Need for money may arise either immediately or in the future. If you can anticipate it, you can be better-prepared to make arrangements for it.

Chalking out a budget
Record all your sources of income. Create a monthly expense list that will include utility bills, debt repayments, groceries, insurance, transportation expense, rent and money spent on entertainment. You will observe that a few expenses are fixed and are essential. Some expenses are variable from month to month. If you want to cut back on expenses, you can easily start with variable expenses. Review your budget on a regular basis.

Emergency fund
Despite numerous debt obligations, you must be able to save some money every month to build an emergency fund. A serious financial crisis may arise in case of a job loss, medical emergency or an unfortunate accident. The situation could be stressful with bills piling up, every passing day. The emergency fund will come in handy at least to pay the EMIs for a few months till you get back to work.

Technorati Tags: money,financial planning,home loan,finance

Who Gets to Manage Your Money?

noreply@blogger.com (AdminDBHB) — Fri, 04 Sep 2009 02:24:00 +0000

After watching the gyrations of the stock market and the trickling outrages of the Bernie Madoff saga, maybe you’re thinking under the mattress is the best place for your money. Hey, you can do bad all by yourself. But don’t give in to skepticism. Especially in confusing times, an adviser who earns your trust can help you earn a profit.

A certified financial planner can fill those shoes. Folks with the CFP designation must successfully complete the CFP Board’s comprehensive examination, which tests knowledge on a number of planning topics. They must abide by the CFP Board’s Code of Ethics, obtain 30 hours of continuing education every two years, and meet other requirements.

But plenty of people can pass those posts without being stand-up individuals. You need someone who makes you feel more secure.

How do you find that person? Ideally, a family member or friend has a perfect match. If not, talk to your attorney, accountant or tax planner for leads. You can also go to professional associations such as the Financial Planning Association, the Certified Financial Planner Board of Standards or sites like Wiser Advisor.

But mostly, trust your gut and do your due diligence. Picky, picky, picky should be the protocol. So, assuming you’ve gathered a few names, get ready to hold a beauty contest of sorts. You want to put all potential planners under the bright lights.

Ask what licenses they have, how long have they been in business and what is their area of specialty? Review their bios – where have they worked and what have they done? Most urgently, do they show an interest in you?

“Do you fit their sweet spots? You want to be an important client , you want to get the attention you need,” says Susan Bruno, a CPA and personal financial specialist with Beacon Wealth Consulting. Ask for referrals to a couple of clients who are similar to you in age, income and circumstances. If they can’t offer up anyone, that could be a clue that you’re not a typical client, which is not ideal.

Find out how the adviser spends her time. If she mostly does estate planning and that’s not tops on your list, think again. Find out too, whether he or she is a fiduciary, meaning that law obliges him or her to place your interests ahead of theirs at all times. If an adviser likes to place heavy bets on emerging markets but you prefer to bulk up on muni bonds, will an advisor put that fiduciary duty in writing?

Of much importance, you want to know how an advisor makes money. If it’s by commission, know that a profit agenda may lurk behind anything she sells. Fee-only advisors may have the fewest conflicts of interest and charge hourly, a flat fee or retainer. They may also include a performance fee based on how well your account performs. Get this straight up front. Know what’s included and what’s not.

Ignorance is not bliss and can be expensive. You should always know where your money and securities are. Most reputable advisors will use an unaffiliated custodian for the safe keeping of your assets. This simple check and balance could have saved the Madoff investors millions by bringing the problem to the forefront earlier,” says Rick Kahler, co-author of Wired for Wealth .

It helps too if you are clear about your financial goals. What do you hope to accomplish? Otherwise, how can they help you get there? ”Interview them based on your priorities,” suggests Julie Murphy Casserly, author of The Emotion Behind Money.

Be open about your expectations. Make it plain what you need. Discuss how the advisor would like to communicate, and how often. Will you get to deal directly with him or her, or a junior staffer?

Contact your state regulator to unearth complaints or disciplinary actions An ADV form (the registration form that must be filed by investment advisors) and/or a U4 (the registration form used by persons who work with brokers) can provide additional information.

Seems like a lot of work, right? It should be. Good help can be hard to find, but it’s not impossible. And if you’re really lucky, it can be profitable.

Your Go-To Guide to Estate Planning

noreply@blogger.com (AdminDBHB) — Wed, 02 Sep 2009 23:41:00 +0000

It's not just for the wealthy, and it's more than a will. There's your medical care, insurance and kids to consider.

As many of us watch our portfolios dwindle and bills add up, it's tempting to put off planning for the future. Experts caution, though, that everyone--no matter their age or family status--needs to sit down and plan their estate.

Whether you are wealthy or debt-laden, you should tell loved ones and put into writing how you want your estate to be handled, says Debbie Whitlock, co-owner of Sound Financial Partners, a financial-services practice in Seattle.

Easy Organizing: Plan Your Estate

She says women often assume that such after-death planning is something only rich people need to do. Perhaps it's the word "estate." That's wrong.

"It doesn't matter how much money is in your bank account" or what age you are, says Whitlock, who works mostly with female clients. "Everyone needs to do estate planning. Without it there's a lot of confusion and chaos."

Estate planning isn't just about distributing cash. If you don't have a will, your children could end up guardians of the state. Heirs could end up liable for your debts. Loved ones will be saddled with your funeral costs with no hope of reimbursement until after a lengthy court process that can take years.

The process is also a part of long-term financial planning: You are forced to figure out what your life goals and needs are. Do you dream of leaving the ASPCA a trust? Do you want to make sure your niece's college is paid for? If your partner dies, will you be able to stay in the house you share?

"Documents [like wills] give you peace of mind that everything you worked for will go to a charity or the individuals you intend," says Terri Kallsen, senior vice president of USAA Wealth Management.

It goes beyond money. If you are injured or terminally ill, your family and partner could end up fighting over how to handle your medical care. There are two vital documents for handling this: the living will and the health care power of attorney. Once again, you must communicate clearly about your wishes.

The living will spells out how you want the end of your life to be handled. For example, if you have a serious accident or massive stroke and cannot communicate, a living will might note whether you want a "do not resuscitate" order on your hospital records or whether you want every medical option exhausted before letting you go.

A health care power of attorney is also a good way to prevent conflict among your loved ones. In this document, you designate someone who's authorized to make medical decisions on your behalf, such as whether to pursue more treatment after you've had a heart attack. Although emotionally distraught family members who don't have a POA can still try to step in, having the document allows an attorney to intervene and defend your designated representative's decisions.

But wait--you're not done yet. If you are married or living with someone, experts say you must discuss both of your wills together. A serious potential complication concerns housing. If you are living with or married to someone who owns your home and there are no arrangements to let you stay there after your partner's death, you could be evicted.

This is especially common between older couples, who may have been married before and have children of their own. If the partner's will doesn't spell out arrangements for you, his own children could end up inheriting the home and would then have the authority to sell it.

On the other hand, if you're in a marriage that is ending, make sure your spouse's name is removed from any financial document where it appears--bank accounts, your 401(k), insurance, credit cards. If you think you're protected because you've spelled out other heirs in a will, you're out of luck. "These trump a will," says Michael Gierer, an attorney in the Bronx.

If you're older and have more money, "you need to be more careful and clear about your goals and beneficiaries," acknowledges Kallsen. "You have to be clear about where you want your money to go."

It's OK to admit it: No one wants to think about the inevitable. It's scary and strange, especially if you haven't reached middle age. Take the matter into your own hands--for yourself and those who love you.

Tags: wealthy, money, financial planning, credit card, home, housing

Rethinking retirement

noreply@blogger.com (AdminDBHB) — Wed, 02 Sep 2009 23:30:00 +0000

When the stock market and housing prices were soaring not so long ago, many baby boomers figured they could retire early and live comfortably on their profits. Today that situation has reversed: Many folks are now postponing their retirement or even being forced to reenter the workforce, either to supplement diminished savings or because they underestimated how expensive retirement would be. In fact, according to the Department of Labor, the number of people over 55 still working has increased by more than 800,000 since the recession began, despite rising overall unemployment.

If you are wondering about the right time to retire, here are a few considerations:
How much will you need? Financial planners often suggest people may need 70 to 90 percent of pre-retirement income to maintain their current lifestyle, but individual circumstances make it hard to generalize. For example, some folks downsize their housing or retire to less expensive areas and may need less. Others can anticipate high medical bills or other heightened expenses. Crunch the numbers. Start estimating your retirement needs using online interactive calculators.

Check whether your 401(k) plan administrator’s website has a calculator to estimate how much you will accumulate under various contribution and investment scenarios. If not, use the 401(k) calculator at www.bankrate.com under the “Retirement” tab. They also provide calculators to estimate the impact of retirement plan contributions on your current take-home pay, minimum IRA distributions, and much more.

AARP offers a calculator designed to help determine your current financial status and what you’ll need to save to meet your retirement needs. Another good resource for retirement planning information is Visa Inc.’s free personal financial management site, Practical Money Skills for Life, which features several games and calculators to estimate retirement needs. Consult a professional. After you’ve explored various retirement scenarios, it might make sense to invest in a few sessions with a financial planner to help you work out a specific investment and savings game plan. Drawing Social Security while working. If you begin drawing reduced benefits between age 62 and your full retirement age (65 for those born before 1938 and gradually increasing thereafter) while still working, your benefit could be significantly reduced, depending on your total income. However, those reductions aren’t truly lost since your benefit will be recalculated at full retirement age. Read “How Work Affects Your Benefits” at www.ssa.gov for more details.

Also remember that Social Security benefits may be taxable on federal income taxes, depending on your income level. Publication 915 at www.irs.gov has full details. Don’t wait until the last minute to plan your retirement date: Start crunching the numbers now so you’ll have plenty of options if the economy should change course again.

Adviser Alert

noreply@blogger.com (AdminDBHB) — Wed, 02 Sep 2009 05:07:00 +0000

News for brokers, wealth managers and their clients

Back to Basics

The stock-market recovery has seen some investors swing from near-panic about portfolio losses to anxiety about missing the rebound. As a result, financial advisers find themselves repeating basic messages about diversification, goal-setting and timing.

Bobbie Munroe, a financial planner in Atlanta, says she's tempering the enthusiasm of some investors who want to get back in the market. She recently told a prospect who sold her stock holdings in March that dollar-cost averaging—or investing a fixed dollar amount at regular intervals—is a better way to re-enter the market than diving in all at once. "My role has been more to dampen the confidence right now, just like it was to dampen the fear in March," Ms. Munroe says.

Florida financial planner Dan Moisand encourages clients to recall how they felt during the market lows of last fall and early March, unpleasant as that might be. With those who were "close to pushing the panic button"—or selling their equity holdings—he discusses options for reducing their urge to flee during future market drops.

Colin Higgins, president of wealth-management firm Golub Group, with offices in Pasadena and San Mateo, Calif., says some of his firm's clients are asking about investment opportunities in emerging markets such as India and China. He warns them against investing in "overheated" markets and says the blue-chip stocks clients hold give them exposure to international markets without the risk of a direct investment.

The longer the U.S. stock market stays at current levels or continues to rise, the more likely the fears investors felt will fade, says Joe Jennings, investment director for the greater Maryland area at PNC Financial Services Group Inc.'s wealth-management business.

"Now that the market is starting to recover, it's not as attractive an opportunity to buy as it was three to six months ago, but investors are more willing to do so," he says. "Human emotions work against us."

Fighting Off Fraud

Bernard Madoff's massive Ponzi scheme not only ignited fear about financial advisers swindling investors, it also got advisers thinking about fraud within their own firms.

While the Madoff case is extreme, and has so far involved fraud at the very top of the firm, wrongdoing by even one employee can spell not just financial loss for a company but huge costs in time, legal fees and damaged reputation.

It can happen because a firm outgrows its compliance systems, views staff as incapable of bad behavior or regards prevention as an expense at odds with profits.

"If you have a lapse in quality control, the brick falls on the organization's head," says Jahan Raissi, a securities-litigation attorney and former enforcement attorney for the Securities and Exchange Commission. Screening prospective hires, developing internal controls and ensuring employees know monitoring is in place are key to heading off trouble.

Candidate background checks, which can be done by outside companies, can identify red flags with prospective employees. Letting job candidates know in advance that they will undergo scrutiny may discourage those with questionable backgrounds from pursuing the interview process, says Kenneth Springer, a certified fraud examiner and former agent with the Federal Bureau of Investigation.

Employees should understand that rule breaking isn't tolerated and carries consequences, says Joseph Armao, an attorney with the global law firm Linklaters who conducts corporate investigations.

Dividing up responsibility among employees is another strategy. At Lassus Wherley & Associates, a fee-only wealth management firm with offices in New Providence, N.J., and Bonita Springs, Fla., one employee approves equity trade orders, another executes the trades and a third verifies the trades after execution, says co-founder Diahann Lassus.

Family Firm Inc., a fee-only advisory firm in Bethesda, Md., sent a letter to clients in June outlining the steps it takes to prevent unauthorized withdrawals from client accounts, which include confirming such requests before processing transactions. The letter also urged clients to open account statements and review contributions and withdrawals.

"Just because you've hired a financial adviser, you've not abdicated responsibility for your investments," President and Chief Compliance Officer Mary Malgoire says. "You really have an obligation to stay on top of things."

Even Advisers Seek Advice

Financial advisers might not seem like the kind of people who need help with their own finances.

But some of them say the opposite is true: By turning to peers, advisers can get their own financial houses in order, glean tips on running their businesses more effectively and gain insights into the client experience.

"For 20 years, there was always some client ahead of me needing immediate attention," says Rick Kahler, president of Kahler Financial Group in Rapid City, S.D. "I finally made it to the top of my list of things to do." Mr. Kahler has seen two planners since 2002.

While advisers may be able to manage their own investments, an outside adviser can facilitate financial discussions with a spouse and stay on top of the family's finances if the adviser dies. "My wife breathed a huge sigh of relief after our first meeting with the planner," Mr. Kahler says. "She thought, thank God someone else understands all this stuff and could help if something were to happen to me."

Bryan Lee, founder of Strategic Financial Planning Inc. in Plano, Texas, continues to manage his own money but sends his planner statements "so he can stay on top of my asset allocation and hold me accountable."

Mr. Lee's planner has also taken on tasks such as helping create a succession plan—something Mr. Lee put off for years.

Robert Walsh, founder of Lighthouse Financial Advisors Inc. in Red Bank, N.J., says he and another planner serve as each other's adviser.

"We all need a mirror," Mr. Walsh says. "Sometimes we need someone to look at us and say, 'This is what I see.' "

Financial Planning is Necessary Now More Than Ever

noreply@blogger.com (AdminDBHB) — Tue, 01 Sep 2009 23:53:00 +0000

Recently stock market rallies have pushed the major indexes above key psychological levels. For the Nasdaq and the S&P 500, those levels are 2,000 and 1,000, respectively. Economic indicators suggest the global economy is stabilizing and The Great Recession's financial dark cloud may indeed be lifting. According to Dublin, Va.-based independent financial advisor Roger R. Bell, II in this environment, financial planning is more important than ever. Yet, no matter how dynamic markets are, the core principles and benefits of financial planning never really change.

Bell, president of Roger R. Bell & Company, Inc., believes there are four immutable principles of financial planning:

Peace of mind. According to Bell, the need for peace of mind does not change regardless of market performance. In fact, when the markets are at their most turbulent, investors' desire for peace of mind is even greater. Proper financial planning relieves anxiety. "Planning helps you get what you want out of your life," says Bell. "One of the biggest benefits of the process of financial planning is peace of mind."

Holistic planning. Money is an equalizer. "I believe that wealth is a means to an end, not an end in itself," says Bell. But, a person's true goals and desires can be a mystery to them. It takes patience and hard work to have a clear, concise understanding of tolerance for risk and authentic life goals. "When making oatmeal cookies, if you take the shortcut and melt the butter in the microwave, the cookies turn out thin," says Bell. "Folding the butter into the batter by hand allows the cookies to rise. If you microwave the 'soft' bits of planning, your plan will be likewise thin."

Plans are magical. "There is an inherit power in planning," says Bell. "Planning makes dreams come true. Financial plans create energy that is otherwise missing. Lack of planning causes disorientation, entropy and anxiety. Regardless of market conditions, financial planning, like magic, makes things better than they would otherwise be. Plans become self-fulfilling prophecies."

Capacity to invest. Regardless of the fluctuations of the market, consistency in saving and investing over time is a winning strategy. It's axiomatic. While the advice sounds simple, Bell advises his clients to pay attention to their ability to invest and save. "Pushing too hard or not hard enough can be disastrous for you, your family and your heirs," he says. "It can affect generations. And it can adversely affect the clients' willingness to pursue the financial plans they've carefully crafted."

About Roger R. Bell, II:

Roger R. Bell, II has served as a trusted advocate to professionals, educators, small business owners and families in southwestern Virginia for the past 36 years, providing timely guidance on a wide range of financial matters that include portfolio management and investments, retirement, estate and trust planning/administration, divorce, eldercare and special needs. Roger provides personalized service and professional guidance on an hourly, project or retainer fee basis. For more information call (540) 674-1200.

Tags: financial, planning, money, wealth, saving, investment, retirement

Roth IRA Conversions for 2010

noreply@blogger.com (AdminDBHB) — Tue, 01 Sep 2009 10:39:00 +0000

In 2010, anyone may convert a traditional IRA to a Roth IRA. No income limits will stand in the way of the conversion. Should you do it? Here’s why it may (or may not) make sense for you to go Roth next year.

Why you might want to consider it. A Roth IRA permits tax-free growth and tax-free income distributions in retirement (assuming you are age 59.5 or older and have held your Roth account for five years or longer). You can contribute to a Roth IRA after age 70.5, without having to take mandatory withdrawals. While contributions to a Roth IRA aren’t tax-deductible, the younger you are, the more attractive a Roth IRA may seem.

However, older investors have reason to go Roth as well – especially if they don’t really need to withdraw IRA assets. Under present tax law, converting an untapped traditional IRA to a Roth will shrink the size of your taxable estate, and careful estate planning could foster decades of tax-free growth for those IRA assets.

Currently, if you name your spouse as the beneficiary of your Roth IRA, your spouse can treat the inherited IRA as his or her own after you die and forego withdrawals. So those Roth IRA assets can keep compounding untaxed across the rest of your spouse’s life.

If your spouse then names a son or daughter as a beneficiary, that heir has the choice to make minimum withdrawals according to his or her life expectancy, all while the assets continue to compound tax-free. Currently, withdrawals from an inherited Roth IRA are not subject to income tax.

Why you may want to think twice about it. The IRS regards a traditional IRA-to-Roth IRA conversion as a distribution from a traditional IRA – a taxable event. You will need to pay taxes on the entire amount of the conversion. Do you have the money to do that?

Keep in mind, however, with the market down, many IRA values are lower than they have been for years. That translates to paying less tax on gains. It is also worth remembering that tax rates could increase in the years ahead – another reason why now may be a good time to convert. (You could simply do a partial Roth IRA conversion if converting the full amount would send you into a higher tax bracket. Furthermore you can choose to divide the taxes on the conversion done in 2010 between your 2011 and 2012 federal returns.

Be sure to consult your financial planner and tax advisor before you convert. This is a very good idea before you arrange any rollover, trustee-to-trustee transfer, or same-trustee transfer of your IRA assets. In any year, you should fully understand the potential tax impact of a Roth conversion on your finances and your estate. Also, remember that while the income limit on Roth IRA conversions will go away in 2010, the income limits on Roth IRA contributions still apply next year and for the foreseeable future.

David Weible is a Certified Financial Planner™ and President of Envision Wealth Management, a Registered Investment Advisor, located in Valencia. He can be reached at 661-291-2500 or via email at envision.wealth@lpl.comThis email address is being protected from spam bots, you need Javascript enabled to view it .

Three Things Still Wrong With The Housing Market

noreply@blogger.com (AdminDBHB) — Tue, 01 Sep 2009 06:42:00 +0000

We’ve gotten a bit of good news lately on the housing front with more new home sales and a slight bump in home prices, but the market is still completely dysfunctional. With the massive government intervention in the housing markets, we won’t know for a long time what our houses are really worth or what we should pay for a new home.

Mortgage Rates. Mortgage rates are way too low and are inflating the value of housing across the country. Here’s why:

Ned Davis Research indicates that the overall delinquency rate on home mortgages is at a record high of about 9 percent. That means it’s very risky to loan money to people to buy a home. This is a delinquency rate that you might expect to see in the junk bond market, where interest rates can be as high as 10 to 15 percent for borrowers.
Consequently, interest rates charged to many home borrowers should be much higher to compensate lenders for the risk of default, but rates are at all time lows.
Rates are low because the federal government, through Fannie Mae and Freddie Mac, is basically providing the banks with the money to lend for mortgages.
Since the government isn’t as concerned about future defaults as private investors would be, the risk of loss isn’t being fully priced into the loans.

By keeping rates low, it reduces the monthly payments for purchasers and allows them to continue to pay more for houses than they may well be worth.

Incentives. Many home sales are coming from first time home buyers as a result of the $8,000 tax credit and low down payment requirements. These incentives are drawing more buyers into the housing market than could otherwise afford a home if they had to put 10 percent down and received no tax credit. This also pushes up the price of housing.

Refinancing. Through various refinancing programs, borrowers with no or negative equity in their homes can refinance at lower rates or even receive some form of loan modification. This is great for the homeowner in crisis, but not so good for pricing transparency. It continues to keep more people in homes they probably can’t afford.

Necessary Evil. Given the fragile state of the economy, it may be that continuing to distort the housing market through low rates, tax incentives and refinancings is necessary. But considering that this is what got us into the mess, at some point the subsidies need to be removed and buyers and sellers must stand on their own two feet.

The danger is we won’t have the political will to remove these subsidies, particularly the interest rate subsidies, and the housing market sets itself up for another collapse years down the road.

Bottom line. You won’t have a good idea of what your house is really worth or what you should pay for a new one until the government subsidies are gone.

Make the Most of Your Savings

noreply@blogger.com (AdminDBHB) — Mon, 31 Aug 2009 13:42:00 +0000

Where is the best place to stash your cash? Under your mattress? In a cookie jar? Your checking account? Savings account? Certificate of Deposit? With so many choices, it's easy to throw up your hands and take the path of least resistance, but that can end up costing you money in lost interest.

It also doesn't help that lower interest rates are making it more difficult to find good rates of return on your money. Nevertheless, this isn't a time to abandon your emergency fund just because the rates are low. Your goal should be to maximize returns while maintaining the liquidity you need.

There are five common places that you can use to manage your short-term savings:

Checking Accounts
Savings Accounts
Money Markets
Certificates of Deposit
Savings Bonds

Learn more about building your saving habit, to help you make the most of your savings.

Financial Fundamentals: Retired, what to do now?

noreply@blogger.com (AdminDBHB) — Mon, 31 Aug 2009 07:25:00 +0000

If you're planning retirement in the next few years, you're probably taking a hard look at your portfolio due to the dramatic market downturn that has occurred in the past couple of years. Can you still salvage your original plans for retirement?

While you might be able to continue with your retirement plans, it's probably going to take a little more work to figure out how to make this happen. Furthermore, we might need to make changes in your portfolio to recover some of the losses in your retirement savings.

One of the things individuals have discovered in this market is that the closer you get to your goal, the more you need to reduce the risk of your portfolio, which may include decreasing the amount of the portfolio invested in the stock market.

Following are some various options you can do to improve your chances of retirement.

— One solution is obvious: Save more money. If the expected investment returns are more conservative, given what's going on with the markets, making larger contributions might help you make up some of the difference.

— Think about the cost of your retirement; you may wish to review your longer-range plans. If they include significant expenses such as a new retirement home, it might be appropriate to scale back your plans if your retirement portfolio has been losing ground in recent years. If you can't make up the declining of your portfolio by the time you leave the work force, consider reviewing how much you can afford to withdraw from your savings. Other ideas include downsizing your home and/or refinancing your mortgage.

— Consider working longer. While a lot of individuals don't want to think about this, the benefits to even part-time work might result in additional retirement savings even after you retire. Consider part-time work and/or consulting. Being able to leave your investment portfolio alone for even a few years can make the dramatic difference in the outcome of your retirement lifestyle.

— Taxes make a difference. It's important that you manage your retirement assets appropriately. Be aware that the withdrawals from qualified plans such as 401ks and traditional IRAs are almost always taxable. But other investments such as those outside retirement plans may not be taxed.

It might be appropriate to consider drawing the nontaxable portion of your retirement first and allowing the taxable portion to grow over time. However, these calculations can be complex; please consult with your tax adviser and your certified financial planner for specific advice in these areas.

Mark McCrocklin is a Certified Financial Planner® and a member of the Ark-La-Tex chapter of the Financial Planning Association, whose members contribute to this column weekly.

Financial Wedding Planning

noreply@blogger.com (AdminDBHB) — Mon, 31 Aug 2009 02:40:00 +0000

You’ve probably already realized it - weddings aren’t cheap! Traditionally the parents of the bride would have paid for the whole shebang, but in modern times that isn’t the case. The majority of engaged couples now opt to pay for the wedding themselves in it’s entirety or share the costs with their parents. With the cost of the average wedding now over $25,000 it is important that you start saving & budgeting as early as possible.

If your dream wedding is a big, traditional affair with all the bells & whistles, then you should sit down & work how long it will take you to save up enough money to afford it. Take some time to research prices for the larger expenses such as the ceremony, reception & honeymoon. This will give you some idea of the total cost of your wedding. Make sure you include everything you want, from horse drawn carriages to fresh rose petals for the flowergirls to scatter, that way if you find the total figure way out of reach you can trim it down by eliminating some of the non-essential items from your list. Once you have got your list, work out your budget & how much you save every month towards it. Divide the wedding budget by the amount you can save each month to discover how many months it will take you to save up for it.

If you want your wedding on a certain day in the year rather than an extravagent wedding, then base your budget around that date. Add up the months until that day & then work out your monthly budget. Once you have a figure for the amount you can set aside each month multiply it by the number of months you have available. This will give you a wedding budget to work for.

If you are concerned by your wedding budget then it is a good idea to prioritize each wedding expense. Doing this will help you decide if something should be dropped from the wedding or done cheaper. For example, you wanted a six tier cake but are quite happy to go for two tiers & some plain cutting cakes to make up the difference, or you will happily serve champagne for the toasts but serve sparkling wine as a welcome drink.

It will always pay to shop around for the best deals, even if your budget is large. Finding the best deals can save you money & allow to include things that you may have originally discounted because of cost. Look around local vendors & bridal shops as well as researching online for good deals & best prices. Try to compare all offers as the cheapest may not necessarily be the best. Paying a little bit more may actually give you more for your money.

Good financial planning is an essential part of the wedding planning process. Whether you plan your wedding around your budget or wait until you have saved enough money for everything you want, drawing up a strategy for your budget is important to avoid any disappointment or unnecessary stress.

About The Author
Georgina Clatworthy is a dedicated full time writer who composes informative articles related to wedding favors and wedding. She is connected with 1WeddingSource, today’s leading wedding social networking planning site.

5 Money-Saving Tips for Couples

noreply@blogger.com (AdminDBHB) — Sun, 30 Aug 2009 09:44:00 +0000

Does it cost more or less to be a couple vs. being single? After all, if you’re part of a couple, you’ll be able to combine incomes. Which means you’ll have more money coming in – especially if Mr. or Ms. Right is independently wealthy.

Let’s assume your significant other is not a member of the Hilton family: how important is doubling your income?

To start, it depends on your habits. The reason that people think couples save more money is because they’re more frugal by design. If you’re single and looking for a significant other, you’re probably going out with friends several times a week and spending far too much money on drinks and meals–where a martini can cost the same as an entire bottle of Vodka. Eating out is one of the greatest money-drains out there. Conversely, couples can be homebodies: they’ve got each other so there’s less need to hit the town, and Netflix is pretty cheap.

Of course, that depends on the couple: there are plenty of jet-setting couples out there.

Combining paychecks has some other distinct advantages. More often than not, couples do not double their living space once they’re together – i.e.; if you’re two rather than one it doesn’t mean you go out and get a two-bedroom apartment. This means a couple can cut their rent costs in half. Utilities are higher, especially water costs – but all of these costs are not necessarily doubled, as the couple may be on a similar schedule. In other words, if a couple is watching the TV together, it doesn’t cost any more than a single person watching alone.

Put this way, it can make being a couple seem like a great financial investment. Well, it’s not quite as easy as that. Depending where a couple is in the relationship, there may be some more pressing financial concerns: first comes love, then comes marriage, then comes…how does that go again? A couple may need to save a lot more money than a single person, as they’re thinking of potentially buying a home and raising a family. While a single person can be more carefree and go out every night, a couple needs to think seriously about the financial future.

Ways for Couples to Save Money

Given that couples may be thinking in the long-term rather than short-term in regard to savings, there are a few actions that couples should take to get on track for long-range financial goals:

Combine rent payments: Let’s assume that you don’t own a home yet. Though you have more income at your disposal don’t blow it all on a fancy pad, as much as that may be tempting. You don’t have to sacrifice quality of life to save some money on rent payments.
Manage your combined debt: This is a big one. In any couple, one person may be buried in mountains of debt, while the other might be a great financial planner. Well, now your significant other’s debt problems are your own. Pay off the high-interest debt first (especially credit card debt) and think about transferring that debt to a low interest balance transfer credit card with a 0% introductory APR of at least a year.
Save money: Well, duh. But really, this means itemizing everything you’re spending. Buying a cup of coffee at Starbucks doesn’t seem like a lot here and there, but you add up all those little expenditures at the end of the month and you might see you’re losing hundreds of dollars monthly. As mentioned, eating out is a real money drain, so eating in is a great way to save on extra costs.
Communicate: This might seem a little vague but it’s actually one of the more important issues in a relationship. If one person is being frivolous and one person is intent on saving money, this can wreak havoc on the relationship itself, not just on finances. According to a recent post at SavvySugar, the old adage of “opposites attract” definitely holds true with spendthrifts marrying tightwads all too often. Determine your goals and check periodically if you’re meeting those goals.
Sell stuff: Some people collect books, CDs, clothes, and other stuff to make up for not having a special someone in their life. Ask yourself honestly: how much do you need this stuff now? In the age of the iPod, CDs aren’t as necessary, but there are still plenty of potential buyers. It’s possible to make a fair amount of money selling unnecessary belongings online. Some might see selling their stuff as a sign of desperation. It’s not: it’s just a way to get rid of the clutter and earn some money in the process.

Can two people live as cheaply as one? Well, maybe not. By with careful financial planning, a couple can reap more of the benefits of two paychecks by minimizing unnecessary expenses.

Maybe instead of “happily ever after,” it should be “frugally ever after”…

Have you found any savings as a couple vs. being single? Post ‘em in the comments below!

Books to Help You Save, Spend, Understand Finances

noreply@blogger.com (AdminDBHB) — Sat, 29 Aug 2009 14:20:00 +0000

You've likely been forced to reassess spending and saving habits and learn more about the financial world in the past year. Three new personal finance books offer varying strategies for developing money management skills and understanding how our complex financial system works.

Financial planner Jacob Gold outlines the basics of cash flow, debt management and investment planning, while Dallas radio show host Bob Brooks focuses on managing debt by setting boundaries for spending.

In a third book, Wall Street veteran and cartoonist Jack Guinan attempts to define terms that will help you understand the financial world better. He covers terms like derivatives, commercial paper and debenture and explains them in simple terms.

Here's a look at the new titles:

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TITLE: Financial Intelligence: Getting Back to Basics After an Economic Meltdown

AUTHOR: Jacob Gold

PRICE: $14.95 (paperback)

SUMMARY: Author Jacob Gold, a third generation financial planner, says that following the financial meltdown, it's only through proper financial education that we can get back on our feet and move forward. That means retraining our minds to understand the basic rules, strategies and theories of money management. Chapters focus on understanding the basics of cash flow, debt management, insurance planning to protect financial assets and investment planning. Gold discusses mutual fund basics, how to do a retirement plan analysis and estate planning.

QUOTE: ''The first decade in the new millennium will go down as the decade of bubbles. The run up of technology, housing, financials and commodities created billions of dollars of profit for people around the world, but when the bubbles burst even more money was lost than originally made,'' Gold writes. ''I hope you always remember that the art of investing is not how much money you make when we are living in a bull market; it is how much you can prevent from loss in a bear market.''

PUBLISHER: Sterling & Ross Publishers

--David Pitt

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TITLE: Deceptive Money

AUTHOR: Bob Brooks

PRICE: $14.99 (paperback)

SUMMARY: Brooks, the host of a daily radio show in Dallas on money issues, has written a book about debt that he bills as financial information from a Christian perspective. But he holds no higher power accountable for getting consumers out of their debt trap; they'll have to do it themselves.

The author doesn't believe in budgets, which he thinks only work for those with the discipline to master the process. Instead he advocates what he says is a more flexible ''boundary system'' that sets limits and restrictions on what can be spent.

The book incorporates that system as part of his game plan for getting out of debt. Different sections also give you a quick checkup on your debt situation, explain how debt settlement or consolidation companies are nothing more than an illusion, and tell you how to improve your credit score.

QUOTE: ''Credit has become America's favorite addiction. It creates a powerful illusion. When there is no money, there is always credit, and credit leads to debt. It is deceptive money.''

PUBLISHER: Springboard Publishing

--Dave Carpenter

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TITLE: The Investopedia Guide to Wall Speak

AUTHOR: Jack Guinan (editor)

PRICE: $18.95 (paperback)

SUMMARY: This book's subtitle tells it all: ''The terms you need to know to talk like Cramer, think like Soros, and buy like Buffet.'' The financial meltdown has made everyone pay a bit more attention to their money. But what doesn't help is that the news is full of Wall Street experts who bandy about terms that are often little understood.

The editors of Investopedia compiled the most-searched terms on their Web site and put together this guide to the top 500. Readers will find definitions from Black Scholes Model to yield curve. Still, what's particularly helpful is that in addition to simply defining terms, each entry provides a section ''Investopedia explains (x term).'' This provides context and examples to deliver a greater sense of what the term means, or how the ratio is interpreted, for example.

PUBLISHER: The McGraw-Hill Cos.