Our eBook provides practical but powerful money-saving tips and secrets that show families how to immediately reduce monthly debt while increasing their monthly cash flow. Visit website for full scope of what book entails. We call it Financial Manna!
Ways by which Financial Planning can be undertaken?
1. Cash Flow Management
Incomes and expenditures can be better matched through the Plan. It assists in identifying whether borrowings are within prudent limits.
2. Insurance
It usually takes care of unpredictable needs and as these needs can arise at anytime, insurance is extremely important.
3. Investment Planning
With increased volatility in capital markets, there is a surge in demand for small saving schemes as a safe haven. Schemes like PPF, NSC, KVP, RBI bonds, Senior Citizens Savings Scheme, Post office MIS need to be part of asset allocation for investors. Although, it is good to keep some risk free investment in the portfolio as a part of overall asset allocation.
4. Retirement Planning
Due to increase in longevity in life and growing expenses due to inflation sustaining the living standard during post retirement stage is a difficult task, so a wise investment of a nest egg during working life helps in lining comfortably during retirement stage
5. Taxation
The financial plan should help client in minimizing its tax liability and also maximizing its after-tax returns from your investments.
6. Estate Planning
Estate planning is arranging for the transfer of property to legal heirs and to other beneficiaries, in a way that will, as much as possible, achieve its objectives.
Who requires Financial Planning?
It is useful to everyone. Since every one has dreams and goals to be fulfilled, so even people earning small amounts of income should get their financial planning done, so that their limited income can be used more efficiently.
How is it different from Wealth Management (WM)?
Wealth management sounds similar to Financial Planning (FP), it differs in the sense that Financial Planning is for one and all while WM is only for a select few. It relates more the management of plenty i.e. taking care of the needs of affluent clients as part of a long-term, consultative relationship, while FP aims at getting the most out of limited resources.
What is a financial Plan?
Financial plan provides direction and meaning to financial decisions. It helps to understand how each financial decision can affect other areas of finances. For example, buying a particular investment product might help client save adequately to finance for its child's higher education or it may provide enough for a comfortable retirement.
It includes a review of net worth, goals and objectives, investment portfolio, retirement planning, tax planning and insurance needs, as well as a plan for implementing client's goals.
After a plan is developed, what next?
The best plan is useless unless it is put into action. Hence the plan should be implemented in said manner, and review the plan when there is a lifestyle change such as marriage, death or divorce. The review also considers changing goals and circumstances.
The entire process for a financial planner can be summed up as follows:
? Initial meetings with client and answering its queries if any.
? Receiving the Letter of Engagement
? Handing over a detailed questionnaire.
? Getting answers to those questions
? Plan preparation
? Getting the "Authority to Proceed" Letter enabling you to carry out the recommendations contained therein
? Plan Implementation
? Periodic Plan Review
BLB Finance Institute is working in the finance industry since long. He is veteran in the industry and his articles and reviews are trust able. Top get more information about top finance courses in India and PG in Finance visit http://www.bifm.edu.in.
Today, kids ages 5 and under are attending some type of preschool. Owning a day care is a lucrative business. Small day care services are often offered from an individual's home. Even though this service is not free, it often costs less than commercial day care services. A lot of stay at home mothers provides this type of service for friends, neighbors, and other referrals. Typically, there is only one paid provider in the home day care business. Older children frequently assist the day care provider for free. There are often a smaller number of children being cared for. Parents of preschool children often seek this service first.
The number of preschool children being cared for dictates income. Day care provider's incomes go up and down. Any daycare center looses income when the parents lose their job or get laid off and have to remove the children. Loosing 2-3 kids at the same time can significantly reduce the weekly income expected, especially for a small day care provider. A sudden and unexpected decrease in income can create financial problems if you do not plan properly.
You must budget and plan ahead of time the number of children you need when you decide to create a daycare service as your source of income. You have to advertise in the paper and ask your friends for referrals. Once you have enough children, you need to create a waiting list for other parents who need the service when you have an opening. Don't wait until you loose kids before you start looking for a replacement. This is a free selling tip and may drive additional parents to your door because it implies you are providing such good service, people have to wait.
Properly budgeting and planning ways to keep the correct number of children means your income will remain constant. However, life is never constant. You need to create a 3-6 month emergency fund to weather the times when you loose kids unexpectedly and you have no one on your waiting list to replace them. When you think you are doing good and business is great, find ways to save the extra money. Save enough money to cover your expenses for 3-6 months.
Things have a way of happening during our lives that we have no control over. Unexpected medical bills and a spousal layoff are two such things that will often adversely impact your income. There are other things, however, that we create and can control. Splurging and spending money on unnecessary items while very tempting, should be kept to a minimum until you have established your emergency fund. This is not suggesting that you can never buy things you want. This free tip says you must keep your wants to a minimum.
It's hard to resist the temptation of a spending spree. So often, when you think you're doing well and spend cash for something you have been waiting for, you feel like this is your reward. Just when you've splurged, something happens or a few days later some long term customer unexpectedly removes their child from your day care. These parents may have been fired from a job, quit their job, or they may be moving. Often this announcement comes without notice.
Or, another example of an unexpected life occurrence is when your child gets sick or breaks a limb and has to be hospitalized. Rushing a child to the hospital creates an ambulance bill in addition to the other costs for doctors, x-rays, and medication. These unexpected emergencies create a financial setback for anyone's budget. These services are not free even if you have insurance. You still have to pay a deductible.
Timing is everything. A sudden decrease in enrollment shouldn't be a major setback when you plan properly. The best tip is to become a better money manager. Make sure you have adequate income for your bills and for savings. Don't spend the money available for savings. Save it. Tell yourself you're broke until you have acquired a 3-6 month emergency fund.
Getting Started On Your 401(k) Plan is an easy read finance book. The book does not talk over your head or confuse you with financial jargon that you don't understand. The workbook format allows you to practice what you have learned at your convenience.
The book stresses starting 401K savings early. It gives you methods to find money to save. The free monthly newsletter continues to give you saving, budgeting, and money management tips. Each newsletter has at least two articles dedicated to saving money and money management. This information is free when you sign up on my website http://www.jab401k.com/
Start the money management and saving habit today. Go to my website and order your copy of Getting Started On Your 401k Plan.
Being ignorant about something is not the trouble. The trouble is the unwillingness to learn something. So, get rid of your inertia and read this article about management software affiliates.This article about management software affiliates is an attempt to remove all the doubts and confusions that remains in the minds of the readers.Creating Multiple Streams of Management Software Affiliate Marketing IncomeReading this article on management software affiliates must have helped you to confirm your belief whether you know everything that needs to be known about management software affiliates. And we can guess what your answer might be.
Reading of this article must have made you realize how much there was for you to know about management software affiliates and you thought that you knew everything was to be known about management software affiliates.Have you ever heard or read the phrase "multiple streams of income" before? Do you know what this phrase means? For many businessmen, creating multiple streams of income online or offline is one way of securing themselves as well as their businesses in the future. They also believe that it can also save them from the so-called famine effect in the business industry. Once you are engaged in affiliate marketing business, it is advisable if you have multiple streams of affiliate marketing income so that if one of those income streams vanished, it will not upset you the way losing your sole stream would.
If you depend on just one source of income and this single stream has been downsized or has lain off, you'll surely find yourself bankrupted and hopeless. Try to ask the most successful online entrepreneurs, and you'll discover that they have established multiple streams of online income.Now when you are reading this article on management software affiliates, you should judge whether our effort in providing you with quality information and content has been successful or not.There is a businessman that said and attested that the very first step you must take in creating multiple streams of income is to assess or evaluate your resources. Start by assessing yourself first. Jot down your answers to the following questions: What are the talents, abilities, strength and gears that you possess? Are you gifted with excellent and creative writing skills? Can you do well at sales? Are you good in communicating with people? Are you born with an artistic skill or unique ability that other people don't have?
Through this, you can determine the kind of business where can possibly excel.Reading the general stuff published on the net makes one reluctant to read articles on the net. But now when you are reading this article, you must have found that we are not amongst those who publish that banal stuff.Next, look around and write down you assets and physical resources such as computer, color printer, scanner, digital camera, cell phone, CD or DVD burner. Write these all down because it can be used as a resource. Consider also your friends and family. Find out what do they possess that you have access to. Remember that no man is an island. You can use the talents, abilities, knowledge and resources of everyone you know.We were not thinking of wasting your time when we thought of providing you with this article.
And now when you are yourself reading this article, don't you think that we were sincere in our efforts?That's basically the initial step if you want to create multiple income streams. But if you're already a webmaster or a site owner, you definitely have an edge. Why don't you join affiliate marketing business to help you gain extra income out of your own website?We have tried very hard to provide you with an article about management software affiliates that could resolve most of your doubts about management software affiliates and now it is for you to decide if we have been successful or not.Being involved in affiliate marketing is one of the most desirable ways to make multiple sources of income. It is because affiliate marketing programs come in various shapes and forms.
There are a large number of affiliate marketing programs that you can sign on with and start gaining bucks right away. In affiliate marketing, you can make money by promoting and reselling your affiliate products and by recruiting new affiliates. What's good about this is that you can find widest array of training materials that can enhance your marketing abilities. In affiliate marketing, you can be sure that there are genuine products to promote and sell and there is real income to make.So, do you still think that you know everything that was to be known about management software affiliates? Don't you feel that there were so many things that were to be known about management software affiliates?Either part time or full time, being an affiliate marketer is an excellent way to create multiple income streams by means of promoting products and services from web merchants.
Here, you can get affiliate commission without investing big bucks in making your own product and without worrying about book keeping, customer support and ecommerce. All you have to do is to promote and resell the products and services in your site and pass on potential customer's the merchant's site.It is true that so many articles are available on the net about management software affiliates and you must have read quite a few of them. Now, when you are reading this article, don't you feel that we have actually tried to offer something different to our readers?In affiliate marketing, it is advisable to promote more merchants in your site so that your visitors will have variety of destinations to choose from. Using multiple merchants in the same site or niche means only one thing - you have multiple streams of affiliate income.
There is absolutely nothing wrong with this business strategy because this is one of the best ways to protect your business and expanding your horizons. Through this, you can be assured that you won't experience crisis if ever one of your web merchants closed his/her program.It is true that most of the articles on the net are repetitive and banal but we have tried hard to save this article from those faults. Now when you are reading this article, you can vouchsafe for us.However, you should choose only those affiliate programs that interest you so that you can effectively advertise and promote them. Don't ever be tempted into signing up for numerous affiliate programs in the hope that one of them will bring income. Select wisely and don't be engaged in selling products you know nothing about. Go with the stuff that jives with your enthusiasm; your passion can capture your client by the nose and guide him/her to your affiliate link.
You should also work hard to make your multiple streams of income more stable. You can do this by embracing some strategies and tactics and by developing within yourself, some traits that can help you become successful in any kind of business such as patience, persistence and thirst for knowledge.Lastly, just remember the adage that says "Don't put all your eggs in one basket." So that if one of them is lost, you can still have some to make omelets. And what do these eggs have to do with multiple streams of affiliate income?
Well, it goes without saying that the more streams of income you possess, the bigger and better your money lake becomes.No one can provide you with all that you want to know at one place. The same is the case with us also. What we have tried here is to provide you all the relevant things about management software affiliates.
What you don't know about management software . . . http://managementsoftwarereview.org
Once you have successfully negotiated your way out of debt, it is crucial that you take steps to adjust your mindset. You should adjust your mindset on two levels. First of all, you need to change your thinking to ensure that you never get into debt again. Second of all, you must adjust your mindset to create wealth to protect yourself in the future.
To do this you will have to modify your spending habits. Here are some spending habit do's and don'ts to keep you on track.
Don't treat your income as guaranteed.
I learned this lesson the hard way. You should always look to protect yourself in the long-term and that means writing out a long-term financial plan for living expenses and household or family income.
In an age of extreme financial instability, you need to know where your money is going all the time. You never know when it is going to stop coming in. Even if you are in business for yourself, your income is not guaranteed.
Look for ways to make your money work. The more financial angles you work the better insulated you will be during tough times. As your money grows you should try to invest in stocks, bonds, real estate.
Diversify as much as you can. Never put all your financial eggs in one basket. If you know little or nothing about these areas find a good professional to give you advice. Repeat this mantra: "my income is not guaranteed" because it is not and you want to be prepared if something happens.
Gregg Zban is the owner of Debt-Relief-Pro.com, a website dedicated supplying quality information on debt relief, debt consolidation, debt settlement, debt reduction and debt elimination.
To learn more please visit http://www.100kInDebt.com
To learn more please visit http://www.debt-relief-pro.com
An Ebook that covers nearly everything you need to know about How To Reduce Breast Cancer Risk and it's symptoms, diagnoses, prognoses, treatment options along with courageous stories about breast cancer survivors.
In a rapidly changing business environment, intelligence is no longer enough to provide the compound knowledge and composite data required to make judicious business decisions. Organizations that are experiencing rapid growth-as well as those that struggle to be competitive-need quick access to detailed, timely information to satisfy customer demands, enhance services, and stay ahead of competitors.
An electronic document management (EDM) and workflow system vastly improves corporate intelligence, making scattered information instantly accessible to those requiring it, regardless of source or location. A webaccessible electronic repository enables easy access, centralizing information or pointing to its location in other systems. Whether you are searching for a document, image, email, voicemail, fax, letter, or a real-time status report, a document management system returns answers within seconds.
This article explores typical benefits companies can expect from EDM and workflow solutions. It also explains the interplay of "less" and "more" to achieve better business results.
More information, less paper
Technologies such as the Internet, Instant Messaging, faxes, voice mails, and email have resulted in an explosive growth of business data. Additionally, recent regulations require collection and storage of increasingly detailed information. To comply and provide quality service, data must be secure, yet easily retrievable. Managing incoming documents effectively is vital, but with paper, it can be challenging.
EDM facilitates indexing and searching of an organization's collective data. Auto-indexing standardizes filing, reduces hours of manual filing and searching for information, and enables staff to contribute more meaningfully to the business. Document management systems can point to data in diverse line-of-business applications, keeping data pools separate, yet ensuring information is found quickly. Data redundancy and misfiled papers become history with a strong document imaging system. More data minus manual searching equals greater efficiency.
More data, less loss
Faster data capture might suggest an unmanageable workload to managers whose staff is already struggling to handle incoming work effectively. However, by capturing data at its source, your company not only reduces time spent on manual filing and searches; it also raises your corporate IQ through instant availability of detailed, real-time information. Checks, forms, and inquiries that would have taken days or even weeks to organize and send to the appropriate parties on paper can be stored electronically, tracked, and forwarded automatically via digital workflow. They can be reported on the same day they are received, often within hours or minutes. Help desk staff acquires instant answers regarding the status of forms, applications, check deposits, and other action items. Auditors and regulatory agencies requesting data that is stored in multiple places-including emails and voicemail-can find what they need. Phone calls, written inquiries, and call-backs requesting status reports are eliminated. Thorough and detailed indexing ensures that there are simply no more 'missing persons' or files. Satisfaction replaces frustration.
More sensitive information, less vulnerability
The high volume of lawsuits against companies that break regulations, fail to respond to timesensitive matters and regulations, or breach security is enough to make any business manager nervous. Document imaging gives managers a distinct advantage, enabling them to preauthorize who can view, annotate, alter, approve, deny, or otherwise act on information and document types as they enter the system. Sensitive data, such as Social Security numbers, PINs, or financial and medical records, is blocked or invisible to those who are not permitted to view it, making companies less susceptible to security infringements. Detailed automatic tracking means each interaction with a document or data can be traced to a specific user in the case of a suspected violation.
Businesses that produce or receive high volumes of documents are also vulnerable to making costly errors and failing to react on actionable items in the most urgent and logical order. A document management system addresses this challenge, providing automatic alerts that notify appropriate persons when new or changed information is received or requires action. Pre-set business rules enable automatic prioritization of time-sensitive material.
More high-level services, less routine work
Another great challenge for companies is maximizing the use of each employee's intellect and strengths, rather than wasting their talents and time on routine tasks that require little thought or creativity. Our society is more mobile than ever. People migrate easily from the role of employee to job seeker when they are not challenged or see no path to career growth.
Document management removes the monotony of routine tasks such as filing documents and searching for information. Likewise, digital workflow enables companies to mechanize time-consuming tasks such as prioritization, distributing work, and chasing information, instead pushing specific action items to the right parties for timely action. Productivity reporting tools enable management to gain a real-time overview of the quantity and quality of work produced by each department and its employees. By freeing workers' hands from paper and the tedium of repetitive work, your staff stays focused on the job at hand and is able to focus on higher-level thinking that makes a positive difference in your organization.
More satisfied customers, fewer lost opportunities
Document management and workflow enable companies to reap the reward of better and faster work with existing staff; more thorough, accurate, and timely information; and enhanced service at a lower cost. Eliminating paper, storage costs, mailing, and waiting times means faster service and more satisfied customers. In an age where many companies' products and services are difficult to differentiate, the ability to provide stellar customer service is often the only way to gain a true competitive edge. EDM and workflow provide the corporate intellect that results in a connected view of old and new information, past and present transactions, and information generated far away or near to home. It gives you needed insight into your company, your customers, and helps you understand the influence of, and relationship between, all of your transactions. With EDM and workflow, paper(less) truly is more.
The keys to success: plan ahead, but take one step at a time
The paperless office is inevitable. The ability of a business to remain competitive depends on its willingness to embrace change intelligently and to adapt to the external environment. The greatest monuments of the world were planned carefully, but built one step at a time. An EDM solution must mirror the wisdom of methodical, careful planning and logical, stepwise action. With careful planning, regular and thorough communication, a strong document imaging solution, and a vendor that will be able to service your needs as you grow and advance, you will travel the path to long-term success.
Laurel Sanders
Director of Public Relations and Communications
Laurel Sanders joined OIT as the Director of Marketing in August, 2004 and was named Director of Public Relations and Communications in January of 2008. She previously served as the executive director of The Muse Machine in Dayton, Ohio, where she was also a consultant in the planning and launching of a collaborative arts education program in Beaufort, South Carolina based on the Dayton model. Laurel was the development director for Dayton Opera and subsequently taught music and English in Germany. She holds a Masters in Arts Administration from the University of Cincinnati; a Bachelor's in Voice, magna cum laude from Ithaca College and the London Centre in England; and pursued business studies at Sinclair Community College in Dayton, Ohio as well as vocal studies at the Hindemith School in Switzerland. She chairs public relations for the State College Downtown Rotary Club, assists with communications for the United Way, and is a member of the board of trustees for the Junior Baroque Music Festival in State College. Laurel is a published writer on business and technology topics and is fluent in German.
This self-study book helps create your own basic financial plan by applying your own numbers in a step-by-step program. You'll save time and money and experience increased peace of mind using our system!Price: $19.95
In today's economic setting, what is the self storage manager to do in order to increase their occupancy and income?
1. Give the public what they want.
Nowadays, with the foreclosures and job losses, people who find themselves in this transitional stage need a place to store their belongings until they get back on their feet. This brings your facility in to play. When searching for a mini storage most everyone in the above position, is first and foremost focusing on the cost to house their possessions. Next are convenient location and access hours. And last, but not least, the potential customer is concerned with the safety and cleanliness of the site.
2. Focus on your surrounding area and community.
What is the makeup of the residents? What are the population statistics? What types of businesses operate there? Run move in specials accordingly and team up with businesses that focus on servicing the surrounding area so flyers with your company name and specials will be delivered.
3. Don't sell your facility short.
One dollar move in specials may seem like a great offer, but even if a person is down economically, they will have a better peace of mind knowing what they paid a fair price for has as much meaning to you as they have to their belongings; thereby they see the value in their rental purchase. In other words, you, as a manager running a facility, aren't going to rent too just anyone. By charging a fair price, you are letting those walking through your door know your place has worth.
4. Use the internet.
Recently, I received my new yellow pages directory. The volume is an "eco friendly" size, which means the book is a lot smaller. Meanwhile, the World Wide Web is becoming a more used alternative for finding businesses. One Webmaster I know used his tools to find out that there are approximately sixty million searches for mini storages. That figure alone should impress upon the reader the need for internet marketing.
If you have not already done so, start by creating a website. There are numerous free or nearly free internet locations that are user friendly. With a URL address, people from all over the world can find your business. Add photos, coupons, and a free Google map. For convenience, offer online payments. You can also team up with other businesses in the community and place banner ads of all business who wish exchange their ad on your website with your ad on their site.
5. Utilize your assets and resources.
The average storage rental time is three to five months. If you were charging sixty five dollars a month, how much would you be willing to pay out, one time, to make three hundred dollars? Ten dollars? Fifteen? Twenty?
Let's say a tenant is moving out. They were very happy with the facility, managers, and service and say they'll definitely be back if they need storage again. That's great! You'll have a repeat customer if they need your services again. But, what if you let that person know, whether or not they rent with you, that if they refer someone who rents with you, they'll receive X amount of money for a referral fee. Or, how about the people who just rented? As you hand them their paperwork, do you mention that if they make reference to your business to their contacts and they rent, that your facility will either pay them the referral fee or credit their account? Referral fees are a great way to generate income from rentals. Paying out a little to get a lot always makes good business sense.
Cassandra Vanzant has been working in the self storage industry since 1999. Ms. Vanzant's range of experience has been that of manager, trainer, and district manager. Cassandra is proficient in the storage industries software programs, and has managed existing facilities as well as the brand new.
Cassandra is a two time published author, article writer, and speaker.
Finding a wholesale hard money lender is extremely difficult since hard money investors typically charge high retail interest, not wholesale interest. The reason being that they have borrowers over a barrel. People who are looking for hard money are typically tied to lower credit scores, or who need money real fast to tie up business opportunities. It can often take a month or six weeks to secure commercial funding from a bank, and that is often an eternity when a very hot business opportunity suddenly appears on the horizon. So why would the typical hard cash lender settle for twelve percent money when twenty percent or more plus three or four points is a common deal?
Hard cash lenders are ruthless in their zeal to maintain the upper hand in the lending agreement process. These private investors will typically fund sixty to seventy percent of a needed amount to make the deal work and in many transactions these investors want the borrower to put up assets of their own to secure the remainder of the agreement. When borrowers are willing to put up business real estate or a personal home as surety, the financier gets even more comfortable with the agreement. And in almost every case, if the borrower pays off even a wholesale hard money lender borrowing agreement early, there will be penalty points to be incurred for the borrower. With the population quickly rising and more and more of our lives being relegated to just a number, it can be easy to think that no one really knows us or cares. But Jesus made an amazing statement of God's individual concern for each of us when He said, "Are two sparrows sold for a farthing? and one of them shall not fall on the ground without your Father. But the very hairs on your head are numbered." (Matthew 10:29-30)
A wholesale hard money lender borrowing agreement is called upon to get people through tough times so that a business can be saved, an alluring piece of property can be bought or a project undertaken. In almost every case, the agreement is secured by some asset. The savvy lender will never give a loan for the entire amount of the property because of security reasons. In the event of a foreclosure, there is still some value with which to bargain a payoff. Typically, a wholesale hard money lender borrowing agreement will be used to seal a real estate deal of some sort. But since lenders are always looking for a way to make more profit, very expensive nontraditional properties such as an aircraft could be figured in the mix.
A businessman has been looking for a certain aircraft for two years, but the model is rare and out of his price range. Suddenly a broker calls and tells him a plane in Atlanta has just gone on the market for seven hundred and fifty thousand dollars, far below value. It will likely be gone within a few days. It will take weeks for the man to get a bank loan, so he calls a wholesale hard money lender but the investor's credit requirements are too high. He ends up at a private cash investor who only lends at retail interest prices and who doesn't care about the business man's credit score, but wants the potential owner to put up forty percent of the loan value through equity in his personal home. The loan will be for six months so the potential owner will have time to find conventional funding for the plane.
But in most cases a wholesale hard money lender, when they can be found, will be involved in real estate deals. And because it is this type of transaction, that the hard money provider is almost certain to be a local person living in the area. For example, if a home builder wanted to buy land for a new development, the builder will probably ask around at local banks and at mortgage and title companies for the name of a private cash lender. Since private lenders do not have the restrictions on them to which banks must adhere, the actual demands of the contract may differ from lender to lender. In all likelihood, the agreement will be made if the investor knows the land personally and the builder agrees to very tough terms, such as high interest rates, four or more points, and a time limit on the loan; probably not for more than eighteen months. And if there is an early payoff, the borrower may pay another point for an early closure penalty on the agreement.
Since a wholesale hard money lender is as rare as a monsoon in Arabia, expectations ought to be focused either on a retail money investor of hard cash or another funding source altogether. Because the whole banking industry has been recently turned upside down, the best bank lending agreements will only be for those with angel like credit scores. There will be a dearth of no money down loans and twenty percent of the cost will be the normal requirement for borrowers to add to the lending agreement. This will make a wholesale hard money lender even scarcer than five leaf clovers. The retail interest investor will have more control than ever in a hard cash market.
Have you ever been placed in a position where you needed more money? During those times when finding money for lifes little neccesities, like college education, can make loans seem like the best option. Unfortunately, many people wind up in a state of severe debt during these times and student loans are one of the most commonly defaulted loans. With the secrets in this book, you can learn to manage your money, set aside an emergency fund and how to make money through other options to get out of debt and stay debt free. Get your copy now. You owe it to yourself.Price: $9.99
Praised across the internet as hands-down the "best budgeting software", You Need A Budget (YNAB) cuts to the chase with your finances. The software focuses you on the foundation of your finances: the Budget. Experience has shown that when your budget is intact, and functioning correctly, everything else takes care of itself (the bills are paid on time, retirement contributions are made, and unnecessary debt is eliminated). The software is built around Four Rules of Cash Flow. These Four Rules will help you break the paycheck to paycheck cycle, get out of debt, and save more money faster. Where other software packages tend to be the products of years of feature creep, YNAB offers you exactly what you need: a simple, straightforward system to manage your money.Price: $69.90
Click Here To Learn The Amazing Secrets Of How I Got Rid Of $63,000 Of Debt In Only 4 Months Without Filing Bankruptcy Or Using Any Type Of Debt Consolidation Service!
All debt settlement companies will have to alter the way they operate their business before the end of October 2010 since they can no longer charge advance fees. Offer these folks a solution to this problem with this How to Guide! Easy to Earn big bucks.
Since debt seems to snowball, using snowball debt reduction seems appropriate. The snowball method refers to applying payment toward revolving credit like credit cards. Experts differ on whether the snowball method is the best financial method for repaying debt or not. Experts also would disagree in whether debt management techniques would involve the snowball method. Before considering any form of debit management, a person should talk to their creditors to see if reduction in current balances is possible. Sometimes negotiating with creditors can lower debts, especially credit cards, around 50% or more. Most creditors would rather negotiate down than lose the entire payment if an individual should claim bankruptcy.
Talking ones way out of debt is impossible although some have been able to do so. An individual needs to figure out the best solution for his or her situation. To determine whether the snowball debt reduction is the best method for a household, a person must know how he or she handles issues that take time to complete. Most people need to see results and objectives met along the way. If measures of completion for a task are not necessary, this method of account reconciliation is possible.
Snowball debt reduction refers to a process of paying off balances and adding the previous payments to new figures. All balances should reflect, in order, the smallest at the top of the list with the largest at the bottom. The list works either on regular paper, in bookkeeping ledgers, or in a spreadsheet. For those technically challenged or can barely keep the checkbook balanced, simply writing the amounts on a sheet of paper is sufficient. For people who prefer systematic and electronically controlled information, a spreadsheet works perfectly. The spreadsheet will help a person track progress with minimal effort once the data enters the spreadsheet. The key to the snowball debt reduction is writing the accounts from the smallest amount at the top to the largest on the bottom.
Before snowball debt reduction can occur, a person should develop a budget. First, a log of expenses must occur. In a months time, all expenses from a candy bar to gasoline and a mortgage payment need to go on the expenses list. Second, a look at the list should help an individual know what is necessary what is excess so that more money is applied toward paying down the balances. Thirdly, once a plan formulates and a budget appears, an individual needs to stick to the proposed plan. If extra spending occurs, the revolving credit will never dwindle. He or she should seek extra money even if it means working a part-time job or selling some personal items.
Now, snowball debt reduction can begin. Each bills minimum amount is paid except for the smallest. The extra money found during the budgeting phase is applied to the smallest amount too. Once that statement reflects zero, the money used to pay that invoice is added to the next statement along with the minimum already paid. Once the second invoice is zero, the money applied to it from the first invoice and the minimum paid applies to the third statements minimum due. Thus, the snowball debt reduction begins. The following is an example. The bills total $150, $500, $1,000, $1,500, $1,750, and $2,000. The minimums for each in order are $20, $40, $50, $55, $70, $75. The person found 40 dollars extra to use toward paying down the bill. So, $60 can be applied toward the first amount of $150. In two and a half months, the first invoice is gone. So now $60 is applied to the $40 of the second invoice equaling $100. In 5 months, the second statement is also paid. The $100 can then be added to the $50.00 already being paid on the third bill, which brings the new payment to $150.00. In just over 6 months, the third bill is paid in full and now $205 can be applied to the fourth bill. Thus, the snowball affect occurs. Just as a snowball, rolling down a hill catches bits of snow creating a bigger ball at the bottom, so does this method of repayment. Beginning with the smallest amount and working ones way toward the larger allows a person to see light at the end of the financial debt tunnel. An individual choosing this method of repayment needs to call their creditor and ask them to apply the extra payment on the principal.
As shown, financial freedom can come by snowball debt reduction. As mentioned previously, experts would disagree with each other as to whether the snowball effect is the best way to reduce financial responsibilities. Financial advisors say that the best way to reduce balances is to pay the invoice with the highest interest rate because paying off the highest interest rate first is better economic judgment. However, a person may feel inundated and see no hope, especially if the card with the highest interest rate also has the highest balance. What is important for an individual to remember is that unforeseen circumstances arise and new cards and new accounts should not be opened. The only cards an individual should use on a regular basis would be food and gas cards. Otherwise, checks and cash are the payment of choice. Debt proofing life is hard because spending money is a necessity. Two of the most important lessons to learn are to pay more than the minimum and to rollover payment once one statement reflects zero. Another lesson to learn is to change spending habits. Then he that had received the five talents went and traded with the same, and made them other five talents. And so he that had received five talents came and brought other five talents, saying, Lord, thou deliveredst unto me five talents: behold, I have gained beside them five talents more (Matthew25:16&20).
Debt settlement reduction is a method for managing debt that lowers the principal balance, thereby lowering the overall amount of funds owed to creditors - this is at a cost to the debtor's credit rating, so such a decision should not be taken lightly. This form of financial improvement represents a more aggressive approach to lowering financial burdens, often reducing the amount owed by 40-60%, and shortening the time frame for paying off total amounts - often within a 3 month to 3 year time frame. For example, a person may owe a credit card company $10,000, but with reducing and settling, the company may decide that the debtor owes them $3,000 as full payment of the balance, thereby lowering the overall amount by $7,000.
Reducing and settling is an agreement that the consumer helps define regarding payment planning for unsecured loans and credit. The creditors work with debtors and their settlement companies to calculate how much of the total balance that can be paid. Unsecured balances that are covered by debt settlement reductions include credit, gas, and retail store cards, personal loans, utility bills, taxes, medical and hospital bills. Reducing and settling will not cover student loans or secured loans such as mortgage, auto and equity lines of credit.
To qualify for these services, it is necessary to show financial hardship, as creditors will not negotiate lower balances if the debtor's credit shows an ability to pay. Typically, a creditor will consider lowering a balance only when the potential for filing bankruptcy is high. Bankruptcy means a creditor risks getting nothing from the consumer, so lowering the overall balance through a debt settlement reduction is a better deal for them than writing off the balance. It should also be noted that a creditor can still sue for nonpayment, even when a debt settlement reduction has been implemented.
Reducing and settling often involves paying off creditors in lump sum format, and each creditor may have a different approach to payment, so it is necessary to fully understand the terms associated with the settlement negotiated for individual creditors. There may be delays in payment to creditors as the consumer accumulates the total amount needed to pay off a lump sum amount, and debt settlement reductions don't ensure that one's credit rating remains positive. While the debtor saves for the lump sum payment, it is possible to incur fees and non or delinquent payment reports. Debt settlement reductions can lower one's credit rating to a score only slightly higher than bankruptcy, so great care must be taken when considering it as a solution.
There are costs associated with these services, usually as a percentage of either the remaining balances to be paid or the savings incurred. These percentages can range from 8-15% of the total outstanding debt, or 25-33% of the total savings experienced. In addition, the savings realized as the result of debt settlement reduction is taxable by the IRS. Consumers must calculate if the savings experienced are greater than the tax one would pay prior to making a decision for a solving their money problems. "And everyone who was in distress, everyone who was in debt, and everyone who was discontented gathered to him." (1 Samuel 22:2)
Everything that you need to know about basic personal finances, from how to open a checking account to getting credit cards to how to use credit wisely and to your advantage to how to avoid getting into trouble with debt and credit to how to get a loan or grant for university to basic investing ideas, and more is in this book! Filled with a wealth of knowledge to help you gain good personal financial habits and retire wealthy, Personal Finance 101 - A Beginner's Guide is ideal for teens and twenty-somethings just starting out in the financial world. Parents will want to read this book with their young adults to give them the head start in financial life that they never received. Complete with numerous links to on-line resources, you'll want to refer to this book over and over again!Price: $7.95
Some of our students have found unique ways to reduce the time needed to manage transitional housing. Transitional housing is defined by renting out individual furnished rooms in a single family or multi-family dwelling to those persons who are in transition. We are not referring to migratory workers or students, but to an additional vastly underserved tenant population, former offenders of soft crime.
All tenants share common areas like kitchen, dining room, living room, laundry conveniences; and both private and semi-private bedrooms are "let" on a weekly or monthly basis. The income benefit for creating this type of rental dwelling is extraordinary. A large master bedroom could generate $750 per month rented as a semi-private (two beds) room; smaller private rooms could rent for $450 a month. Take any rental unit you own and add it up. I think you will quickly discover that you have effectively doubled the gross rent you could be collecting for the unit.
The model is for our real estate investments to provide us with passive income, right? But how passive is it really? If you are a veteran rental property owner, you either do the property management yourself, to maximize your net rental income, or you hire it out to a property management company. You pay them to advertise, screen tenant applicants, collect rents, do credit and background checks, perform property maintenance/repairs, and handle evictions. The cost for those services will reduce your net cash flow significantly.
Property owners doing transitional housing concern themselves with all the same issues, but in a different way. Once the house is set up and fully occupied, the cream will come to the top. By that, I mean a particular tenant could become your property manager. For a small discount in their rent, they would carry out many of the same functions of a property manager. Check in tenants, perform minor maintenance, carry out property inspections, and even handle evictions, which are a cinch with this type of housing. (See resource box for ways to learn more).
A virtual assistant can even deal with advertising of your property to established referral sources when you have vacancies. All that is left is tenant screening, which does not include traditional background or credit checks. Just a chat with one or two individuals that are informed about the candidate's background.
Alf Gizzo, as Real Estate Investors saw and fulfilled a need. He discovered a unique underserved tenant population who appreciates clean affordable housing. To learn more about setting up transitional housing in your community, download their FREE Ebook, Max Cash Flow Now from the right side bar at: http://maxcashflownow.com
Graduation Debt is different from the competition because it provides a step-by-step road map for effectively managing student loan debt and having a successful financial life. Yet, it’s completely positive. The focus is less on sacrifice and more on not wasting money, so readers can live better lives while paying off debt. The book's content is divided into small subsections geared toward those neck-deep in student debt. The brevity of each section makes the book digestible to those who aren’t inclined to focus on their finances. Readers are encouraged to take action steps such as finding long lost student loans that may have gone into default, discovering payment plans they can afford, consolidating loans when it makes sense to do so, saving money on eating out and groceries, improving credit scores, tweaking their debt-to-income ratios that's needed to buy a home, discussing their student loan and non-student loan debt with their significant others.
By the end of the book readers will be on the road to managing all their debt and having extra money for vacations and other fun stuff, too.
How to Miss Student Loan Payments Without Hurting Your Credit
Amazon-exclusive content from the author
Price: $14.99
Price:
A debt reduction service plan is available to help consumers learn about reducing financial obligations and finding someone trustworthy to help regain a financial foothold. This can help a person get a more normal life back by eliminating up to half of what is owed and stopping the harassing phone calls of collectors. A good plan of action will provide skillful negotiation on the individuals behalf by a seasoned financial professional that will work to lessen obligations. Debt reduction service plans can help a consumer by repaying only half of their current debt and offer much more affordable and lower monthly payments.
A personal counselor will review the consumers current financial situation and their ability to repay obligations in order to devise a strategy. Debt reduction service plans can show the individual a structured repayment schedule based on their needs that figure into a settlement account and how long it will take to become debt-free. A debt reduction service plan establishes a new positive line of communication with creditors so that the consumer will no longer be treated as a target of harassment, but as a paying customer that deserves respect. These strategies can help anyone eliminate the insulting letters and the collection calls that are often received when financial obligations surmount.
Taking advantage of a debt reduction service plan will give provide the individual with a counselor who will act as a personal representative and stay in contact with creditors for the consumer. Debt reduction service plans enjoy a high rate of customer satisfaction because of the personal service they provide. Having a shoulder to lean on through the repayment process can be a big plus. This service makes settlement offers, arranges for the establishment of a mutually agreeable repayment schedule, and obtains the settlement offer in writing for the client. A counselor then advises the client on how best to disperse the funds to the various creditors.
Working from those accounts with highest balances and highest interest down to those with low balances and low interest, the monthly payments are sent, enabling the debtor to pay off all of their obligations at a rate that is beneficial to him or her. Debt reduction service plans can be a breath of fresh air to anyone with a lot of unsecured debt. A debt reduction service plan can help the consumer become faithful in financial dealings. "A faithful man shall abound with blessings: but he that maketh haste to be rich shall not be innocent." (Proverbs 28:20)
A certified financial planner has the education and the knowledge to help consumers with insurance, investments, retirement, estate tax, and other types of financial planning. To acquire certification a candidate must have at least a bachelor's degree and must pass a CFP exam. License holders must meet the requirements for continuing education classes to keep their certification. A certified financial planner has to adhere to the ethics set forth by the CFP board and be professionally responsible at all times. She must be able to work well with people and know how to evaluate a client's financial status in order to make recommendations. "I applied mine heart to know, and to search, and to seek out wisdom, and the reason of things, and to know the wickedness of folly, even of foolishness and madness" (Ecclesiastes 7:25). A few of the best investments that may be recommended to a client include a savings account, certificates of deposit (CDs), stocks, bonds, and living on a budget.
One of the safest ways to save money for the future is by having a savings account. A certified financial planner may suggest a savings account if the client wants to be able to have the money saved available to her on short notice. Withdrawing money from a savings account is easy enough and usually can be done the same day the transaction is made. Savings accounts have a fixed interest rate and will probably not require the customer to maintain a minimum balance and can usually be opened with as little as $50. Having a savings account comes in handy when the customer has an emergency and needs cash. A good rule of thumb is for a person to keep at least two months salary in the bank account in case of job loss or other types of emergency situations.
Most people have planned expenditures that they can foresee coming up in the future. A certified financial planner helps a client to set goals on what she would like to have saved despite expenditures that may come up. Some possible expenditures people like to save for include a yearly vacation and a down payment on a house or a car. Planning ahead for these types of expenses will help the client to put a little extra in savings to cover expenditures and still have some left over to keep in the bank. That way there is always money put back that is making interest. The best way to guarantee that there will be some money left in savings is to keep a budget on what can be spent on vacation or decide upon a certain amount that can be put down on a house or a car.
Another choice for a safe investment is a certificate of deposit (CD). A CD should remain untouched for a certain amount of time until it reaches full term. Cashing it in before the full term period will mean paying a penalty. The longer a CD is left untouched the more the return. A certified financial planner would recommend that a client be willing to leave a CD untouched for quite a while to get the biggest return. Since banks give a guarantee on the return of a CD a person can look at the investment as safe. If a client anticipates cashing it in early she should put the money in a savings account instead.
Other investment choices include stocks and bonds. Stocks usually have higher returns than bonds do but they are subject to market volatility and can lose money. A certified financial planner can help an individual make the best choices. Buying stock is purchasing ownership in a company. Investing in a company that has a history of producing earnings is one way to make a sound choice. Bonds are actually loans that investors make to companies and they provide a fixed return to the investor. No matter how much money the company makes the fixed return stays the same. Government bonds are considered safer investments compared to corporate bonds simply because they are insured but corporate bonds often have a higher rate of return than government bonds.
Spending money wisely is something that a certified financial planner will stress with a client. Having too many credit cards is a big risk for future investments simply because in the future there will be interest on the purchases made with credit cards unless the client pays off the balances in full every month. Most people make the minimum monthly payment on credit cards so their purchases are costing them much more than what they originally paid for them. Not using credit cards can give an individual more money for the future. In order to be successful with finances both now and in the future the client will need to learn how to live on a budget and how to make wise decisions about spending money.
Every choice that a person makes that involves money should be talked over with a certified financial planner. This includes what type of insurance to purchase, what investments to make, how to end up paying less on taxes, and what retirement plan to invest in. Someone who has a degree in finances will have the knowledge to help clients to make profitable choices by considering the outcome when spending or investing money. A person would do well to find a certified planner with experience or use someone that a friend or family member recommends.
There is a lot of talk about debt and debt management these days. That may muddy the waters a bit.
The real topic here is Money Management.
Income and its sources.
Debt, its causes, amounts and disposition.
Physical Assets, its value in today's market. Can it or should it be sold, loaned or leased. What is its value as collateral.
Psychological impact on the owners, their family or business.
Retirement or business management transition.
The scope of this article cannot begin to cover all these topics, but each broad topic influences our lives.
If there is sufficient income to support the physical assets. What happens to the service on any debt?
Do you make payments, pay it off?
What is the impact on taxes?
In spite of the massive volumes that have been written about economics, economies of entire nations are collapsing under the weight of debt experts said was good debt or good investments.
It would appear the experts are in fact expert at explaining what happened, but not expert enough to have prevented the problem.
Now, here you sit wallowing in debts the banks said you could afford.
Mortgages, credit cards, student loans and so forth.
What do you do?
Are you current on your bills?
Are you current but struggling to make the payments?
Are you a little behind, robbing Peter to pay Paul?
Ok, first know this is all fixable. There are no quick fixes though.
Understand there are scams thriving all over the place. They are easy to spot if you look.
There is NO Obama debt relief program, not for credit cards, not for student loans or mortgages. 100% of those are pure deception to take your money. Simply ignore them.
Reworking a mortgage seems to be more doable these days.
You will have to bite the bullet on the student loans. There is no practical way to change them. They pretty much need to be paid as designed.
Credit card debt does have some flexibility. Though you need to determine your goals here.
- Do you want to pay it off?
- Is the interest rate a problem?
- Or is it the size of the overall payment?
Earlier I said there were no quick fixes and that statement is still true.
- If you expect to need credit in the future, or need credit for business, travel and emergencies.
- If you prefer not to ruin your credit. (Some people don't care about theirs)
- If you understand this process will be measured in years, 4-5 tops.
Then what you want is a professional Debt Management Program.
? A DMP is a method that is very effective in reducing interest rates on credit cards.
? In a DMP you do not need to put all your accounts in it. That will allow you access to credit for business, travel etc while you are in the program.
? It helps you maintain or rebuild your credit while your debt is coming down much more rapidly than any other method.
? You can get even a mortgage while on the program.
In summary finance is not a mystery. Take it slow and deliberate. The road is littered with the results of rash decisions. Your road may look that way now. It can change. The road in front of is wide open.
Hope that helps a little.
For more information contact us at http://www.debtsynergy.com/index.html or call us at 800-810-5250
BBB Rating Here, http://www.seflorida.bbb.org/Business-Report/Accelerated-Debt-Consolidation-Inc-%20%2026001690
4 cassette tapes in album. The best radio show selections from Christian financial counselor Burkett.Price:
This package contains a copy of the New York Times bestseller Zero Debt: The Ultimate Guide to Financial Freedom and How to Improve Your Credit and Manage Credit Cards Well, an audio CD based on Lynnette's financial bootcamp. About the CD: Let s face it. It s tough to live in this society without having any credit cards. You need cards to shop on the Internet, rent a car, or book a hotel room during business trips or vacations. And even if you don t use credit cards, chances are you have a credit file that someone is watching. That file contains information about your mortgage, your auto loans, and how you ve paid bills in the past. Most people think their credit score is seen only by lenders, like companies who might offer you a mortgage, auto loan or credit card. But whether you realize it or not, lots of other people and institutions have access to your credit file, including insurance companies that might sell you life or auto insurance, your boss at work, and even prospective employers. More than ever, you need to protect your credit standing because it can impact every area of your financial life. In this session you ll learn: * Sneaky tricks the credit card companies play that cost you money * How to read your credit report and dispute errors * The fastest ways to boost your FICO credit score * Clauses in your credit card agreements to look out for or contest * The pitfalls of transferring balances from one credit card to another * The best methods of handling credit cards if you re married or live with someone * The pros and cons of using cash advances, and blank checks from credit card issuers * How inquiries and new credit applications affect your credit rating * What to do with those department store cards * How to prevent identity theft from ruining your credit ... and MORE!Price: $29.95
A step-by-step guide to winning a lawsuit yourself. Debt Settlement Credit Bureau Disputes Request for Validation Stop the nasty debt collection phone calls. How to protect your paycheck from garnishment. All easy-to-use documents are print ready
A hosted PBX phone system manages the incoming calls of your business organization in an extremely proficient manner. This is done with the help of highly sophisticated PBX features integrated in the system.
The Hosted PBX Advantage
By implementing a hosted PBX phone system, you can maintain excellent business communication within and outside your organization and accomplish your business objectives without making hefty investments. With the help of this system it is even possible to make long distance calls at a fraction of the actual cost.
The best part of this service is that you are not required to install and maintain expensive PBX equipment in your office premises. All these are maintained at the site of the service provider and the PBX services are offered through a hosted server with the support of high speed Internet or dedicated telephone connection.
Overview of Call Routing Features Integrated in the System
The hosted PBX system efficiently manages all incoming calls and routes them to the different departments or extensions simultaneously without sending busy signals to the callers. In order to handle your business calls, the system is integrated with features such as auto attendant, find me follow me call forwarding, caller identity, voice mail, fax to email, call conferencing, music on hold and more.
The auto attendant in the system receives the incoming calls with professional business greeting messages. It offers the callers a set of options such as dial by name and dial by extension, and transfers the calls to the right departments or extensions, based on the option chosen by the caller. The find me follow me call forwarding feature allows transferring the incoming calls to your alternate personal numbers including cell numbers and therefore you can manage your business from any preferred location.
Voice Mail and Email Features
The system also has the facility to route unanswered calls to the voice mail box of the employee so that the callers can leave voice messages. Besides, voice messages can be directed to your email account as audio file attachments. These messages can be opened in your laptop even when you are on the move. All these features ensure that you don't miss important business calls from your customers.
AccessDirect can provide you with a Hosted PBX system with sophisticated PBX features. The auto attendant feature integrated with the PBX system initially attends the incoming calls and provides routing options for the callers.
Free debt reduction schedule is an accelerated plan that shows how to save thousands of dollars in interest charges and get out of debt more quickly. By using a plan to reduce debt, people can learn how to pay off creditors in the shortest period of time, without increasing monthly payments. In turn, the person desiring financial freedom needs only to be disciplined and follow the established plan.
Many credit card companies reduce the monthly payment as the balance is paid down, which in the long run just extends the payoff period and adds interest to the amount owed. A free debt reduction schedule will help develop a schedule of repayment that eliminates future interest as much as possible, and pays off the highest interest charging creditors first. A plan such as this helps debtors take control of their finances immediately while also helping them develop a plan for staying financially free in the future. With this method, paying off the credit cards with the highest interest is the first priority.
One new benefit of a free debt reduction schedule is the biweekly mortgage payment. Instead of paying a large once monthly mortgage payment, home buyers agree to pay every two weeks and in doing so, they reduce their expensive interest rates and begin building equity in their homes faster. Consumer Reports, Forbes, Money Magazine, and the New York Times all support the biweekly mortgage idea and its ability to show built up equity more quickly. What was started as a ploy of the mortgage companies has become a viable means of saving money.
There are many software programs as well as programs on the Internet that can help establish a plan to get out of debt. With much of the software, a person simply plugs in the creditors' names, amount owed to each, interest rates and monthly payments expected, and they will receive a printout of the best way to repay these creditors and at the same time save lots of money on interest. A free debt reduction schedule is a great way to restore financial health and eliminate a long drawn out process of debt reduction that will cost greater in the long run. Furthermore, getting financially free helps people to live out God's Word to "owe no man any thing, but to love one another" (Romans 13:8).
Debt reduction strategies are commonly used in today's society because the national consumer indebtedness has risen to an unbelievable 2 trillion dollars, which averages each household at $18,000 not including mortgages. If mortgages or student loans are added onto this surmounting total, the amount owed is considered astronomical. Most families reach this amount in very small increments. Each debt reduction strategy can be used in conjunction with a predetermined future lifestyle budget. Knowing what kind of budget a person will have after it is paid off is sometimes more important than the actual debt reduction strategy used. Consumers get excited about the opportunity to keep more of their paycheck. Just because someone needs this type of service doesn't mean that they are less of a person in anyway, just that the general expenses of life are greater than their income.
Over 50% of marriages end in divorce because of flawed strategies in finance or none at all. Obviously the toll that debt takes on an individual's family life is just as great a toll as it takes on their financial life. Whether a person is currently in debt or not, it is a good idea to have a plan prepared for what action will be taken if a problem surfaces. Coming to terms with the need for debt reduction strategies is the first step in becoming a debt-free American. When debt reduction strategies are not taken, the consumer remains in debt and as such remains a slave to the creditor. Almost everyone has money to be paid to someone in some sort of way so it is just a matter of a realistic plan in order to get closer to a debt-free life.
2 Corinthians 3:17 says "Now the Lord is that Spirit: and where the Spirit of the Lord is, there is liberty." God desires us to live a fruitful and free life, not a life of slavery. A debt reduction strategy to get back on track and back to living that free life is highly recommended. Those that are seeking an organization that provides debt reduction strategies should first review the organizations rating with the BBB or Better Business Bureau. The BBB can be fully accessed online and enables a consumer to view lists of complaints or compliments provided by previous consumers. It is suggested that caution be taken when choosing an agency to discuss all income and financial information with.
Can I get out of credit card debt?Price: $7.50
One program works with all three conditions: fear, anxiety and panic. Comprehensive step-by-step solution you'll be proud to offer. Great conversion rate. Affiliate tools available.
Price:
“How to Manage Your Money: A Book For All Ages!”Price: $5.75
When is 3 percent better than 6 percent? Yeah, we all know the answer, but only until the prices of the securities we already own begin to fall. Then, logic and mathematical acumen disappear and we become susceptible to all kinds of special cures for the periodic onset of higher interest rates. We'll be told to sit in cash until rates stop rising, or to sell the securities we own now, before they lose even more of their precious Market Value. Other gurus will suggest the purchase of shorter-term bonds or CDs (ugh) to stem the tide of the perceived erosion in portfolio values.
There are two important things that your mother never told you about Income Investing: (1) Higher Interest Rates are good for investors, even better than lower rates, and (2) Selecting the right securities to take advantage of the interest rate cycle is not particularly difficult.
Higher Interest Rates are the result of the Government's efforts to slow a growing economy in hopes of preventing an appearance of the three headed inflation monster. A quick glance over your shoulder might remind you of recent times when the government was trying to heal the wounds of a misguided Wall Street attack on traditional investment principles by lowering interest rates. The strategy worked, the economy rebounded, and Wall Street is trying to scramble back to where it was nearly six years ago.
Think about the impact of changing interest rates on your Income Securities during the past five years. Bonds and Preferred Stocks; Government and Municipal Securities; they all moved higher in Market Value. Sure you felt wealthier, but the increase in your Annual Spendable Income got smaller and smaller. Your total income could well have decreased during the period as higher interest rate holdings were called away (at face value), and reinvestments were made at lower yields!
How many of you have mental bruises from the realization that you could have taken profits during the downward trajectory of the cycle, on the very securities that you now lament over. The nerve; falling below the price you paid for them years ago. But the income on these turncoats is the same as it was in 2004, when their prices were ten or twenty percent higher. This is the work of Mother Nature's financial twin sister. It's like acorns, snowfalls, and crocuses. You need to dress properly for seasonal changes and invest properly for cyclical changes. Remember the days of Bearer Bonds? There was never a whisper about Market Value erosion. Was it the IRS or Institutional Wall Street that took them away?
Higher rates are good for investors, particularly when retirement is a factor in your investment decisions. The more you receive for your reinvestment dollars, the more likely it is that you won't need a second job to maintain your standard of living. I know of no retail entity, from grocery store to cruise line that will accept the Market Value of your portfolio as payment for goods or services. Income pays the bills, more is always better than less, and only increased income levels can protect you from inflation! So, you say, how does a person take advantage of the cyclical nature of interest rates to garner the best possible income on investment quality securities? You might also ask why Wall Street makes such a fuss about the dismal bond market and offers more of their patented Sell Low, Buy High advisories, but that should be fairly obvious. An unhappy investor is Wall Streets best customer.
Selecting the right securities to take advantage of the interest rate cycle is not particularly difficult, but it does require a change in focus from the statement bottom line... and the use of a few security types that you may not be 100% comfortable with. I'm going to assume that you are familiar with these investments, each of which could be considered (from time to time) for a spot in the well diversified Income Portion of your Asset Allocation: (1) The traditional individual Municipal and Corporate Bonds, Treasuries, Government Agency Securities, and Preferred Stocks. (2) The eyebrow raising Unit Trust varietals, Closed End Funds, Royalty Trusts, and REITs. [Purposely excluded: CDs and Money Funds, which are not investments by definition; CMOs and Zeros, mutations developed by some sicko MBAs; and Open End Mutual Funds, which just can't work because they are really "managed by the mob"... i.e., investors.]
The market rules that apply to all of these are fairly predictable, but the ability to create a safer, higher yielding, and flexible portfolio varies considerably within the security types. For example, most people who invest in Individual bonds wind up with a laundry list of odd lot positions, with short durations and low yields, designed for the benefit of that smiling guy in the big corner office. There is a better way, but you have to focus on income and be willing to trade occasionally.
The larger the portfolio, the more likely it is that you will be able to buy round lots of a diversified group of bonds, preferred stocks, etc. But regardless of size, individual securities of all kinds have liquidity problems, higher risk levels than are necessary, and lower yields spaced out over inconvenient time periods. Of the traditional types listed above, only preferred stock holdings are easily added to during upward interest rate movements, and cheap to take profits on when rates fall. The downside on all of these is their callability, in best-yield-first order. Wall Street loves these securities because they command the highest possible trading costs... costs that need not be disclosed to the consumer, particularly at issue.
Unit Trusts are traditional securities set to music, a tune that generally assures the investor of a higher yield than is possible through personal portfolio creation. There are several additional advantages: instant diversification, quality, and monthly cash flow that may include principal (better in rising rate markets, ya follow?), and insulation from year-end swap scams. Unfortunately, the Unit Trusts are not managed, so there are few capital gains distributions to smile about, and once all of the securities are redeemed, the party is over. Trading opportunities, the very heart and soul of successful Portfolio Management, are practically non-existent.
What if you could own common stock in companies that manage the traditional Income Securities and other recognized income producers like real estate, energy production, mortgages, etc.? Closed End Funds (CEFs), REITs, and Royalty Trusts demand your attention... and don't let the idea of "leverage" spook you. AAA + insured corporate bonds, and Utility Preferred Stocks are "leverage". The sacred 30-year Treasury Bond is "leverage". Most corporations, all governments (and most private citizens) use leverage. Without leverage, most people would be commuting to work on bicycles. Every CEF can be researched as part of your selection process to determine how much leverage is involved, and the benefits... you're not going to be happy when you realize what you've been talked out of! CEFs, and the other Investment Company securities mentioned, are managed by professionals who are not taking their direction form that mob (also mentioned earlier). They provide you the opportunity to have a properly structured portfolio with a significantly higher yield, even after the management fees that are inside.
Certainly, a REIT or Royalty Trust is more risky than a CEF comprised of Preferred Stocks or Corporate Bonds, but here you have a way to participate in the widest variety of fixed and variable income alternatives in a much more manageable form. When prices rise, profit taking is routine in a liquid market; when prices fall, you can add to your position, increasing your yield and reducing your cost basis at the same time. Now don't start to salivate about the prospect of throwing all your money into Real Estate and/or Gas and Oil Pipelines. Diversify properly as you would with any other investments, and make sure that your living expenses (actual or projected) are taken care of by the less risky CEFs in the portfolio. In bond CEFs, you can get un-leveraged portfolios, state specific and/or insured Municipal portfolios, etc. Monthly income (frequently augmented by capital gains distributions) at a level that is most often significantly better than your broker can obtain for you. I told you you'd be angry!
Another feature of Investment Company shares (and please stay away from gimmicky, passively managed, or indexed types) is somewhat surprising and difficult to explain. The price you pay for the shares frequently represents a discount from the market value of the securities contained in the managed portfolio. So instead of buying a diversified group of illiquid individual securities at a premium, you are reaping the benefit of a portfolio of (quite possibly the same) securities at a discount. Additionally, and unlike regular Mutual Funds that can issue as many shares as they like without your approval, CEFs will give you the first shot at any additional shares they intend to distribute to investors.
Stop, put down the phone. Move into these securities calmly, without taking unnecessary losses on good quality holdings, and never buy a new issue. I meant to say: absolutely never buy a new issue, for all of the usual reasons. As with individual securities, there are reasons for unusually high or low yields, like too much risk or poor management. No matter how well managed a junk bond portfolio is, it's still just junk. So do a little research and spread your dollars around the many management companies that are out there. If your advisor tells you that all of this is risky, ill-advised foolishness... well, that's Wall Street, and the baby needs shoes.
The final article in this Income Investing trilogy will be on managing the Income Portfolio using the Working Capital Model.
Steve Selengut http://www.sancoservices.com Professional Portfolio Management since 1979 Author of: "The Brainwashing of the American Investor: The Book that Wall Street Does Not Want YOU to Read", and "A Millionaire's Secret Investment Strategy"
