Archives
- March 2011 (323)
- February 2011 (295)
- January 2011 (284)
- December 2010 (191)
- November 2010 (123)
- October 2010 (110)
- September 2010 (74)
- August 2010 (60)
- July 2010 (41)
- June 2010 (57)
- May 2010 (55)
- April 2010 (41)
- March 2010 (1550)
- February 2010 (657)
- January 2010 (316)
- December 2009 (558)
- November 2009 (1346)
- October 2009 (653)
- September 2009 (240)
- July 2009 (200)
- June 2009 (430)
- May 2009 (19)
- April 2009 (56)
- March 2009 (158)
- February 2009 (6)
- January 2009 (78)
- December 2008 (28)
- November 2008 (104)
- October 2008 (192)
- September 2008 (72)
Monthly Archives: June 2009
Alternative Investing Forget Buy and Hold
Author : Rachel Victoria
Am I Crazy?
Before you start raving that I am a lunatic for disagreeing with the sage advice given to you over the years by:
1 Financial Experts
2 Your Financial Planner
3 Wall Street Professionals
4 Of course, Dear old Dad
Please consider the following challenges with the Buy & Hold philosophy
What is Buy & Hold ?
In simple terms, the stock market often falls substantially about every 5 7 years and the stock devaluations may sometimes last 2 4 years At that time, an investor continuing with the Buy & Hold philosophy would do nothing This approach assumes that the stock market will eventually recover and it would be better to hold steady rather than try to time the selling and buying of stocks as the market recovers
Well, I agree with half of that Yes, the market generally does recover over time and it is difficult for the average investor to predict both the decline and the rebound in the stock market and to actually sell your stock high and buy low However, there are significant problems with the Buy & Hold approach
What is Wrong with Buy & Hold ?
First of all, if you are trying to build real wealth for retirement utilizing the Buy & Hold strategy, it is usually going to take you 30 40 years because of substantial losses every down cycle that result in overall low returns Consider this:
1 The Dow Jones Industrial Average (a blue chip stock indicator of the overall stock market) had an all time high of 11,522 as of 01/07/2000
2 Today, over eight and one half years later, on 09/22/08 the Dow Jones closed at 11,015
3 In between those two dates, the Dow Jones went as low as 7,702 on 9/27/02 and hit an all time high of 14,066 on 10/5/2007 with a lot of gyrations in between
4 It would be fair to say that anyone holding a similar Dow Jones portfolio on 1/7/2000 and used the Buy & Hold approach over the next eight and one half years would have gone for a wild roller coaster and be left with a 4 4 loss on their portfolio
5 Add to this the possibility that you may have had to pay taxes on dividends and capital gains if you were in a mutual fund, and this return declines further
6 Also, in my personal experience, the same down cycles and losses apply to the Real Estate Market as well
7 Oh and by the way, Inflation has depleted the value of your portfolio around 3 each year
It begs the question, how can you effectively accumulate Real Wealth if you keep losing a large percentage of your principal every 5 7 years and sit idly in down markets for another 2 3 years? No wonder it takes people 30 40 years to accumulate for a decent retirement portfolio
Another Problem
Institutional Investments take a portion of your profits as a fee, resulting in lower returns for you
If you are like most investors, you don t have the time or expertise to select your own stocks and monitor them, so you would normally utilize mutual funds and variable annuities to invest for you These institutional investments must cover their expenses:
1 An annual Management Fee
2 Huge Fund startup Fees
3 SEC regulation
4 Marketing Costs
This may all be fine in a profitable year, but when you have a losing year, you are still charged for all of these expenses (or the fund would go out of business) That s right, fund managers can lose 20 of your money one year and still bring home a six figure income and millions for their company!
And, when you have a profitable year, the Management Fees are never capped
By the way, if you think that investing in individual stocks eliminates these hidden expenses, consider the common million dollar CEO salaries, perks, and corporate expenses that cut into shareholder s profits
So, what s the solution to help you create Real Wealth? You need to somehow achieve consistent high returns You need to limit losing your principal You need to diversify And, you need to stop giving away your profits In short, you need a Strategy that gives you much more than what Buy & Hold has to offer
Copyright (c) 2008 passiveincomeopportunities net, All Rights Reserved
This article may be freely used and transmitted, but only in it s entirety, without any changes to it s content or linking
Rachel Victoria, is a former CFP with an MSFS in Financial Planning. Ms. Victoria owned an American Express Financial Services Franchise for 20 years. Please visit my website to learn more: http://www.passiveincomeopportunities.net/rachel/members.php
Syndication Source: Thought Search Articles Continue reading
Living Within Your Means
Author : David Beart
Living with your means involves cutting expenses so that there is money left over at the end of the month and expenses do not exceed income Careful budgeting can help one to enjoy the benefits of living within your means, including reduced interest rate charges and the ability to save money for emergencies or special purchases
The cornerstone of living within your means is to develop a budget plan You must know how much money you are spending every month on all of your expenses in order to determine where you may be able to save money Write down all of your bills, along with all of the miscellaneous purchases that you make every month and tally them
Avoiding the dangers of unconscious spending can also help you to live within your means Many people spend far more money than they realize on this type of spending These are the purchases that that may be small in nature but add up over time Those impulsive buys while waiting in line, for example, can often add up to far more money than you might realize
In addition, make sure you keep an eye out for fees, such as ATM fees, that commonly add up on a monthly basis Keep track of such fees as well as all of your expenses Even a small notebook or journal that you can slip into your pocket or purse is a good way to keep up with such expenses Do this for about a month so that you have a clear idea of where your money is going
Once you know where your money is going you can then begin working towards setting up a savings fund This is the second hallmark of living within your means When you do not have money set aside and emergencies strike, you often feel forced to charge items and that can make it even more difficult to live within your means The general rule of thumb is that you should have a minimum of 10 of your monthly gross income set aside for emergencies It is simply much smarter financially to save money for expenses or even for special purchases than to make them by credit card
Keep in mind that this is in addition to any funds you may have set aside for retirement or for college savings The more money you are able to save now, the less you will have to borrow later and the better you will be able to live within your means
Remember that even when you receive what seems like a good rate on a credit card, it is still not free money You must still pay above and beyond the purchase cost for any item you charge because of interest payments Although credit cards can be convenient, they can also be expensive The longer it takes you to pay off a credit card, the more money you will spend over the long run As a result, a pizza that you charged for $20 could end up costing you $100 or more if you make only the minimum monthly payments and it takes you years to pay off that bill
The best method is to make sure that you pay for everything you buy with cash rather than credit While that is not always possible, it is best to try to stick to that goal as closely as possible When you must charge something on a credit card, make a concentrated effort to pay more than the minimum monthly payment every month Even better; try to pay off your credit card balance every month Avoid carrying more than one credit card balance at a time to prevent balances from growing out of control and reaching a point where you have a difficult time making the payments
Avoiding the rental of products can also help you to live within your means as well Renting an appliance can seem like a good idea at first because the weekly rental rates are often cheap Rental agreements are usually often attractive to individuals without the best credit because no credit checks are required for renting Once you add up the costs of all those weekly rental fees, it becomes apparent that renting something actually costs much more money than just waiting until you can purchase it using cash
If you find that your debt level has spiraled to the point that you are no longer able to make your minimum monthly payments and set aside money for savings, consider investigating a consumer credit counseling service to help you get matters under control These programs can help you to devise a realistic repayment plan that is within your ability to pay and offers you a way to begin paying down your bills
David Beart runs http://www.professorshouse.com . This site contains a wealth of information about marriage advice, raising children and relationships.
Syndication Source: Thought Search Articles Continue reading
The Secret to Off the Charts Marketing Success
Author : Leslie Hamp
When most people talk to us about their marketing, they focus on advertising While advertising is a part of the marketing mix, that’s all it is A part Marketing is much bigger
We want to help you think about your marketing in a whole new way and will start by sharing a key marketing concept we learned from Jay Conrad Levinson, the father of Guerrilla Marketing:
“MARKETING IS EVERYTHING you do to promote your business, from the moment you conceive of it, to the point at which customers buy your product or service and begin to patronize your business on a regular basis The key words to remember are everything and regular basis ”
Whether it’s sending an invoice, answering the telephone, handling a complaint, running a radio ad, sending an e-mail or launching big buzz ideas, you are marketing your business every time you touch a customer, prospect or potential partner
Be creative! We brainstormed a few big buzz ideas around contests that would snag attention, boost sales and get your business in the limelight Spin your own ideas off the following:
* If you’re a hotel, host a “fastest employee contest” to feature your housekeeping staff competing to see who can make a bed the fastest
* If you’re a restaurant, sponsor a “waiters contest” to see which waiter can carry a glass of wine on a tray, or an entire tray of dishes, from one end of a big room to the other without spilling anything
* If you’re a medical office or hospital, sponsor a “walking contest” with nurses, doctors and staff to see who tops the charts in weekly or monthly steps
* If you’re a grocery store, follow the lead of the National Grocery Association Each year they sponsor a “Best Bagger Contest,” designed to find the bagger who can get the job done the fastest The contest is in its 21st year and created a huge buzz for the annual convention
What kind of fun “fastest” contest can your business sponsor? These contests are perfect for TV because they offer people, color and motion–the three elements of a story that TV news producers want Plus you’ll be able to leverage your efforts through print, radio and web media as well Fun stuff to create a big buzz
Guerrilla Marketing is all about stepping out of the box and launching unusual tactics that capture attention and sales
The big buzz ideas above are the tip of the iceburg for a low cost, high impact, off-the-charts fun approach to skyrocketing business success Read on to discover why the Guerrilla Marketing approach is ideal for small business owners like you
Guerrilla Marketing Pros:
1 A proven program that has benefited more than 1 million people since 1984
2 Low cost, high impact
3 Bottom line focus on profits
4 Unconventional tactics emphasized to stand out from the competition
5 Focus on marketing goals, marketing calendar and tracking
6 Collaboration emphasized to maximize and leverage every marketing effort
7 Clear focus on target audience and benefits offered to them
8 Publicity opportunities abound
9 Step-by-step sales process increases conversion rate of prospects into customers and raving fans
10 Accountability and success
Guerrilla Marketing Cons:
1 Requires time, energy and imagination
2 Requires planning, follow through and tracking
3 Requires development of fusion marketing partners and collaborations
See, learning more about Guerrilla Marketing is a no brainer! Learn how to take advantage of all the “pros” so you can skyrocket business success
Certified Marketing Spitfire Leslie Hamp is creator of the ‘Fast Track to Marketing Mastery’ program. To learn more about the step-by-step program, and to sign up for a fre*e Marketing Mastery Success Kit, visit www.boostyourbottomline.com
Syndication Source: Thought Search Articles Continue reading
Posted in Finance
Leave a comment
Meeting With The Entrepreneur
Author : Obinna Heche
Running a small home business, unless it’s a totally Internet business, at some point in time may mean meeting with a local client Even if the entrepreneur works all over the globe, clients or vendors and others involved in the firm in some way or another may find themselves in town and just want to meet face to face with the entrepreneur they’ve talked to by phone and e-mail
This is something that can be very beneficial for future business dealings and may lead to referrals for the small home business The question, though, is where to meet with this client or business associate – surely not the small home business location Here are some options
The least costly place would be the library And while we tend to think of the library as a place where you must whisper, that’s no longer the case They often have meeting rooms, quiet corners with comfy chairs away from the crowd and many even have business centers with copy machines, wifi and fax This is a great alternative for a small home business owner on a limited budget
Another alternative is a coffee shop or McDonalds McDonalds is now in the midst of a national wifi installation Starbucks, Borders or Barnes & Noble all offer coffee and a quiet comfortable place to talk
There may be a local telework center as well, which can be rented by the hour, day, week or month, with conference room, phones, fax, copy machine, and computers Firms such as HQ Global Workplace offer office space, videoconferencing, postal services, phone, computer and computer access and even receptionist These can be rented for an hour, an afternoon, a day, a week or month to month Many have catering services for an additional cost in case of a large meeting While it’s a little more difficult to find a telework center the best place to inquire is of the local college Major cities are bound to have them Telework centers are plentiful for small home business owners in the Washington DC metropolitan area of Maryland and Virginia
While most small home business owners want to present themselves at first as one of the big guys, a client that is dropping in to finally meet the entrepreneur he or she has talked to so often will probably be pleased to learn of the small home business The entrepreneur might well be surprised to find how the office location apart from his home, might open the door to some very interesting conversations, such as "I wish I could do that" or surprisingly often, "Oh, yes, I work from home too "
To Your Success
Obinna Heche. Los Angeles – California
Delivering the best home based business ideas and
opportunities so you can work at home successfully..
http://www.homeincomeportal.com/obhmy365
Syndication Source: Thought Search Articles Continue reading
Borrow Successful Marketing Ideas For Your Salon Clinic Or Spa
Author : Rebecca Kepple
Marketing ideas are adjustable and changeable no matter the sector off business you are aimed toward The inspiration for a new marketing plan can be derived from just about any business out there that shows they have the resolve to make it in the business world All it takes is a keen eye and a bit of imagination
Some of the best businesses to mimic in your marketing choices are the biggest and the brightest These businesses pay marketers hundreds of thousands of dollars to plan a marketing campaign These same ideas can be scaled and customized to suit your business and your clientele This method not only saves you time, but allows you to work with a proven campaign
If you have ever heard someone singing the McDonald’s song about the Big Mac, you understand how well marketing can be infused into the minds of the consumer Just because you do not have a Big Mac does not mean you cannot take a theme and lay it to music for your marketing slogan “I’m Lovin’ It!” for instance was and still is a huge marketing choice for McDonald’s You just need to choose that slogan that has your customers singing, “I’m Lovin’ It!” too!
In salons, clinics and spas, the well-being of the consumer rests in the services you provide You need to offer the consumer something more than just a great product however Today, the flash associated with marketing has reached epic proportions and many small businesses just cannot afford to render a huge marketing ploy the way the larger business can This is where ingenuity comes into play
There are three major points to rebirthing a marketing idea from another company Quickly and easily you can:
1 Assure the results of the marketing campaign
2 Save a massive amount of research time
3 Stop yourself from reinventing something that is clearly already invented
Marketing might not necessarily come naturally to every holistic or care provider, but to achieve high revenues and success, marketing does need to be a big part of your business
When you market, you take your service to the streets and when you put a tried and true marketing choice in front of them, they will see what you have to offer and come back for more again and again In order to gain a following you need to assure that customer you are going to take care of them and provide them the health and well-being services your potential clients both want and need
Rebecca Kepple specializes in helping business owners massively increase their client base and profits. To get instant access to her free insider secrets report ‘The Top 7 Secrets for Massively Increasing Your Client Base’ visit: http://www.wellbeingbusinesssecrets.com/freereport.
Syndication Source: Thought Search Articles Continue reading
Posted in Finance
Leave a comment
Learn To Use Electricity Smartly
Author : Jerry Leung
Your electricity bill can cost you quite a large amount of money Even if you are making a lot of money and the electricity bill does not mean much for you financially You are still advised to use electricity smartly On one hand you can save money, and on the other hand you will be able help to save the environment by consuming less energy
You may wonder how you can use less energy and save money on your electricity bill In fact, the first rule of thumb you should bear in mind is that you should try to switch on the appliances when you need to use them You should switch them off when you are not using them For example, there are people who will switch the heaters on for the whole day However, do you think you will need to switch it on for the whole day? Obviously you will not need to do so in most cases As a result, you should try to switch it off when you do not need to use it
Another example will be your computer There are many people who tend to switch the computer on for the whole day They will not try to switch it off even if they left home Are you running a web server at home? If the answer is a No, it is not necessary for you to leave the computer on when you are not at home You should switch your computer off before leaving home At the end of the day it is a bit dangerous for you to leave the computer on when there is no one at home
If it is possible, you should try to buy an appliance with a timer This is especially true for your air conditioner Although you may be sleeping for eight hours a day, you may not need to switch it on for eight hours It will be good enough for you to switch it on for six hours for example If you can purchase an air conditioner with a timer, you can set it so that it will be turned off automatically after six hours And you will be able to save money on your electricity bill in this way
When you are purchasing new appliances, you should make sure that the appliances you are going to buy are all energy efficient There are some energy efficient options for most appliances nowadays This will help you to consume less electricity
The author has great interest in finance. You can check his blog on Personal Finance & Financial Planning. Be sure to check Credit Card Relief and Mortgage: Quality, Quantity and Costs.
Syndication Source: Thought Search Articles Continue reading
Posted in Finance
Leave a comment
Three Important Factors to Consider When Shopping for Army kit insurance
Author : Jane May
An ever increasing number of military servicemen and officers are taking up army kit insurance cover Before the advent of such army kit insurance cover, military life for many soldiers was fraught with unspoken anxiety, as one had to live with the knowledge of the fact that they were fully responsible for their army kit, and would have to pay for it were it to get lost or damaged in one way or another This was an anxiety-inducing thought, as the cost of army kit can be rather high, often running into thousands of pounds (think several months’ pay) for the whole kit
Then came army kit insurance By taking up such army kit insurance, a soldier can live with the peace of mind of knowing that they are covered (at least financially speaking) in the event of their losing their army kit in one way or another Army kit insurance is one of the specialized military insurance products, alongside military life insurance and personal accident insurance cover (also referred to as pa insurance) which were greeted with the most enthusiasm by both servicemen and officers in all branches of the military The enthusiasm with which military insurance products like military life insurance like army kit insurance and pa insurance covers were met with led to the growth of specialized military insurance providers like Abacus, which was among the pioneers Today, as more and more companies offering military insurance products spring up, many soldiers are finding themselves spoilt for choice on which provider to opt for, and what criteria to use in sorting through the various products on offer, as they all look so similar Here then are three important factors to consider, when you are shopping for army kit insurance
1 The cost structure of the cover: Taking any form of insurance cover is seen as a serious financial commitment, and military insurance is no exception You need to carefully consider the cost of the army kit insurance cover you are taking, and see how that fits into your overall budget You also need to ensure that the premiums you pay for your army kit insurance cover compare favorably with the benefits you stand to get in the event of your losing or having your army kit damaged Of course, don’t approach your army kit insurance cover shopping with cost as the only shopping criteria as such an approach often blinds you to other important factors Simply put, the cheapest is not always the best, though cost is still an important consideration In looking at the cost, you will also need to consider other elements that are not explicitly mentioned, like annual fees for example Some army kit insurance providers charge such fees (in addition to the normal premiums) whereas others don’t charge such fees You need to look at such fees as implicit costs, as they still have to be paid for ultimately
2 The benefit-structure of the cover: Alongside the cost structure of the army kit insurance product you are considering taking up, you also need to consider its benefit-structure This often involves combing through the fine print carefully, looking for catches Some of the questions you might ask include whether the army kit insurance cover only covers for lost army kit – or whether it also includes damaged military kit for example You might also want to know whether the army kit insurance comes with worldwide coverage – or whether the coverage is only local (keeping in mind the ever-present possibility of being called up overseas duty)
3 The product provider: You also need to carefully examine (and compare) military insurance providers providing army kit insurance before committing yourself to one Some of the things to look at in an army kit insurance provider include their experience (you might, for example consider going for an experienced army kit insurance provider like Abacus, or opt for the relatively newer, less experienced providers), the track record of the army kit insurance provider, and of course the financial stability of the insurance provider you are considering committing yourself to You might also consider looking at what other products (besides army kit insurance) they offer, and how these other products might appeal to you As it were, it is often better to get all your military insurance products from one insurer, as they often given great ‘discounts’ for multiple purchases A company like Abacus for example, offers army kit insurance at greatly reduced rates if it taken alongside personal accident insurance (pa insurance) cover
With qualified advisers dealing with
military insurance,
army
kit insurance and
military PA insurance, many of whom have over 20 years experience in dealing
with service personnel of all ranks, you can be confident that we know what we
are talking about. At Abacus we experts on military insurance and army life
insurance.
Syndication Source: Thought Search Articles Continue reading
What is a Federal Home Loan Modification
Author : Marjorie Salada
Home loan modification is something that has been talked about a lot recently, but what is a federal home loan modification? In a sentence, it is a revision of your current mortgage that can help you avoid foreclosure If you are having difficulty paying your mortgage or foresee problems in the near future, a home loan modification is something that you should look into as a foreclosure avoidance option
A loan modification is a way of revising the terms on your loan The government has made this program available to homeowners that are in foreclosure or are experiencing financial hardship The government has made a website accessible for these homeowners to apply to have their loan modified You will be required to provide the same information that you would if you apply for a typical mortgage You will also have to include a statement about what caused you to be in your current financial situation and what you have done to turn your hardship around
In most cases, your home will be refinanced with a lower interest rate, saving you money or you will be refinanced from a variable rate loan to a fixed rate loan These are two of the most common options that are being used to avoid foreclosure, but they are not the only options for stopping foreclosure
If you got your loan in the past 2-4 years, it is possible you fell victim to subprime lending and could have a loan that has an interest rate that is about the average rate for the current prime rate If that is the case, it is possible that you could get your loan refinanced through the government’s mortgage bailout plan
If you are an individual that has a variable interest rate loan, you may also have the same option to refinance your loan You would be getting a loan that has a fixed rate that is consistent with mortgage interest rates that are available at this time In this case, one of the biggest problems that homeowners will face will be with their home value If your home value is less than what is owed on your home, you will not be able to refinance and your options will be limited if you cannot afford your payment
If for some reason you have missed a few payments, many lenders will add the missed payments to the end of your loan Unfortunately, there are millions of people that owe more on their home than the value of their home And for these people a loan modification is not an option
What is a federal home loan modification? It can be what keeps a homeowner from losing their home to foreclosure. Find out more about a federal loan modification.
Syndication Source: Thought Search Articles Continue reading
Posted in Finance
Leave a comment