Monthly Archives: February 2010

Author : David Farrell

The world of investments is a complex one indeed, particularly in a time when putting money into stocks and other investment products is much riskier than it once was The good news is that there are still products to invest in that keep your capital safe and provide a decent interest return The solution is structured investment products that provide you with a higher rate than fixed products for less risk than other types of investments

Definition

A structured investment product combines two products into one, offering return potential on one or both of the products involved One product is generally a money market account that pays a fixed rate periodically and the other is put into an option that offers a variable rate of return This allows the structured investment product to produce a return even when the markets fall

In uncertain economic times, a structured investment product protects your capital investment and provides you with earning opportunity In fact, structured investment products are fixed-term investments, meaning you get to decide the minimum and maximum earning potential of the product you choose In some cases, the rate is linked to an underlying benchmark, such as interest rates, commodities or foreign exchange markets

The product is referred to as “structured” because the investment structure is set when one purchases the product This means that investors have some control over the type of returns they can look forward to The products pay a fixed amount of income during periodic intervals or they can pay out the growth of the investment depending on how the markets perform

Structured investment products have hit a boom in these uncertain economic times, with many investors snatching up the opportunity to protect their initial capital when the rest of the market is unpredictable at best In fact, according to an article in the UK Telegraph last summer, 2008 saw a record number of structured investment products get bought up by investors It does not appear that the factors the products are linked to are making much of a difference in their popularity The overall low risk option is the perfect choice for those looking to make a decent return without riding the tide of the market too dangerously

Versatility

While structured investment products are considered less risky overall, there is enough versatility in the types of products to allow investors to determine precisely how much risk and potential return they want to undertake Factors like risk tolerance and goals can be manipulated to meet an investor’s specific needs There are also non-standard additions investors can make to their product, such as exposure to less accessible markets and swaps Many of these features do carry additional risks and may incur extra charges, however,

Overall, structured investment products are seen as a nice addition to most investment portfolios While the returns may not offer as much potential as riskier products, the benefits appear to far outweigh the lower returns in the volatile market today If you are interested in structured investment products, contact your private banker for more information and to find out what your options are

David Farrell is Managing Partner of Affordablemortgages.co.uk a mortgage advice practice offering advice on structured investment products across the UK

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Author : John Goldman

There are countless families in the USA who have to compromise with their self-respect and self esteem because of insufficient income The sense of dependence on the welfare organizations can also stifle the freedom of many families

Hence, the US government has come up with the public housing family self-sufficiency program to overcome these evils with the help of many schemes and innovative measures

Program overview:

The public housing family self-sufficiency program or FSS is funded by the U S department of Housing and Urban Development This program is extremely efficient as it takes assistance of both public and private resources under the public housing for the welfare of the participating families This is a practical program that has many noble objectives in view Some of the many objectives or this program include the following:

Helping the participating families to earn extra income

Reduce the dependency of the families on welfare assistance The ultimate aim is to eliminate this dependency making the families independent and consequently more confident

To formulate programs that can enable the families to be economically independent and have a housing self-sufficiency

The public housing family self-sufficiency program is launched nationwide and is meant specially for the people belong to low income groups The program offers a maximum of $68,000 for a full time coordinator position

The public housing agencies also work with different welfare agencies, local partners and schools to have a comprehensive program for the participating families This program enables the members to develop essential skills that can guarantee higher wages Hence, this positive work enables the families to get back their self-esteem and retain their confidence besides the materialistic gains

Eligibility and requirements:

To get the full benefits of the Public Housing family self-sufficiency program, you have to understand the requirements and conditions that are associated with the eligibility criteria

To begin with, the agencies involved in the enrollment of the families to this program may screen the candidates on the basis of their needs, education, job history, marital status, number of children and so on

The families also need to get a voucher from the HUDA’s housing choice voucher Sometimes, the families who live in public housing can also participate in this program Hence, it is always advisable to get more details about this procedure from the local public housing agencies for more details One can also understand the policy of the U S Housing and Urban department in order to get well versed with the procedure

The role of the head:

The role of the head of the family is very important in this program Though all the family members are equally responsible to seek and maintain suitable employment, it is mandatory for the head of the family to maintain employment during the term or contract The head is determined under the rules and discretion of Public family Self-sufficency program

Overall, the mission of this venture is not only noble but also practical The participating families have to work together and whole-heartedly in order to avail of all the benefits Thus, the ultimate aim of promoting economic independence can be satisfied quite fruitfully by the Public Housing Family Self sufficiency program

John Goldman is one of the foremost advisors in matters relating to Government Grants and Financial Aid. To learn more about government grants and how to apply for them visit the Government Grant USA website

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Author : Art Gib

Most of us are experiencing some type of debt in our current financial situation For some it is minor debt, such as a car or a small balance on a credit card For others, the debt is overwhelming Not only do they have a mortgage, but they have three cars, a boat, four maxed out credit cards, and a cocker spaniel Okay, so that may be a bit drastic, but debt is a huge problem for many people, especially with today’s economic downslide If you are one of those people with a ton of debt, the best thing you can do for yourself is to learn debt management This is a piece of knowledge that can save you money and stress

The first thing to do is to figure out exactly how much debt you have Get a financial statement and calculate all your mortgages, loans, credit card balances, and any other outstanding debt you have You need to know what you’re working with before you can manage it

The next thing is to take a look at yourself and figure out your spending habits Are there areas that are a bit excessive? If so, work on cutting them back You may not have to stop them entirely, but it’ll help if you take some of that money and put it toward your debt

At this point you will want to budget You know your total debt, and you have a pretty good idea of where your extra money is going Now, figure out your income and expenses and see how much money you have left over, if any Calculate all of your expenses, including restaurants, gas, and food Many people spend hundreds of dollars a month eating out and they don’t even realize it This is money that can be used to pay off your debts

If you have very little extra cash after you take out expenses, you will need to figure out where you can cut back This may be in driving less, making simpler meals, or even shopping less You will be able to find a place to cut back

Many people are so overwhelmed by the sheer amount of their debt that they seek professional advice and counsel from a debt management professional to help them get their financial life back in order A counselor will go over the financial situation and be able to recommend strategies to help reduce or eliminate debt

Of course, the scenario is different for every person, and these are only a few of the ways to reduce your debt The absolute best thing to do is to recognize that your debt is becoming unmanageable and get out that financial statement You need to know exactly what your situation is before it becomes worse

DebtGuru.com (http://www.debtguru.com/debt-management.html) is an online resource for debt management information. Art Gib is a freelance writer.

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Author : Mark Dawson

As the winter months draw in, consumers may well find themselves coming under severe financial pressure

In research released by uSwitch, millions of Britons are beginning to switch their boilers and heaters back on as the cold sets in However, by not taking out sufficient cover on such appliances the country is due to waste more than 64 million pounds on “unnecessary” boiler and heating repair bills should such systems break down And the expense of suffering such a mishap could well impact upon many people’s ability to meet demands on other areas of their spending, for instance home loans and mortgages

According to the price comparison website, about a third of all boilers break within the first six years of installation Meanwhile, getting a main heat exchanger replaced can set consumers back by an average of 468 pounds 55p, while a radiator costs some 201 pounds 44p The study also revealed that just over a quarter (28 per cent) of consumers have got emergency heating cover in place Meanwhile, 43 per cent of households do not get their boiler serviced every year, while a fifth have never had the piece of equipment checked

Commenting on the figures, Ann Robinson, director of consumer policy at uSwitch, said: “Household budgets are stretched so tight that it’s very tempting to try to make a quick saving by not bothering to cover things like your boiler Unfortunately this small saving can end up costing you dear – if your boiler packs up this winter you are likely to be facing a 500 pounds bill, plus the misery of trying to get somebody out quickly to sort it out for you – not much fun in the middle of winter ”

Ms Robinson reported that many people may be put off from purchasing cover as they believe they have to do so via their energy supplier However, she reported that such insurance can be bought separately and so consumers should take the time to make sure they get the premium which is right for them “Even if you cannot afford cover it is still important to have your boiler inspected once a year to try and avoid problems before they occur Failure to do this could damage your health and your wealth,” she added

In addition, the research also showed that the expense of getting a plumber out to fix heating systems can also put strain on consumers’ capacity to meet demands for payment on areas such as credit cards, loans and overdrafts In London a two-hour callout by such a tradesman costs an average of 153 pounds In comparison, getting heating cover in place for a full year can cost just 108 pounds, with such a policy incorporating repairs and boiler servicing

The need to get heating systems checked out now to avoid unnecessary financial difficulty has also been echoed by NFU Mutual Earlier this year, the insurance firm advised that taking the time to get their central heating serviced now could see Britons avoid having to pay costly plumber bills in the future However should consumers find that they are struggling to manage their finances after paying for their heating system to be repaired, opting for a low-rate loan could an effective way of meeting various demands on their money

Mark Dawson writes for the the Loan Arrangers where you can compare loans and apply online for cheap secured loans. Visit Today: http://news.loan-arrangers.co.uk

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Author : Allen Jesson

Taking out a loan in order to pay other debts is known as debt consolidation This is mainly done to secure a fixed interest rate, a better interest rate, or to be able to service a single loan instead of multiple loans It also often involves securing a loan against an asset such as a house or a car that serves as security for the loan However, an alternate option, an unsecured loan from a bank, can, at times, carry a lower interest rate than even credit cards for debt consolidation

By using property as collateral, individuals with assets such as cars and houses might be able to receive a lower rate through secured loans In these cases, the loan can be paid off sooner because the total cash flow and the total interest paid is lower, which causes less interest to be incurred Consolidation companies are known to take advantage of consumers who are refinancing by charging high fees for a debt consolidation loan because of the theoretical advantages that are offered for debt consolidation

Sometimes the loan might be discounted by the debt consolidation companies A debt consolidator is allowed to buy the loan at a discount in cases in which the debtor is on the verge of declaring bankruptcy Prudent debtors will shop around for consolidators who, in turn, pass along some part of the savings to the debtor Any decision regarding consolidating must be undertaken with the utmost care because consolidation might actually take away the debtors’ ability to discharge debts in cases of bankruptcy

Always be aware that, in this field, there are many unscrupulous companies that are always ready to take advantage of clients who are trying to refinance

Situations can be so bad at times that, if clients are unable to refinance on time, they even stand very high chances of losing their houses This situation occurs when a client is forced to pay up-front allowable fees in order to try and clear the debt consolidation loan

As a client, you are left with no option other than to pay up because you are usually have a very minimal time to shop for another lender who might offer a better rate This whole concept is known as predatory lending Luckily, most consolidation transactions do not involve any sort of predatory lending In the United States of America, consolidated student loans, for example, are guaranteed by the government, unlike the situation in the United Kingdom

The Department of Education or loan consolidation companies are the entities that purchase and close any existing loans in case of federal student loan consolidation The ability to consolidate a loan depends on the type of loan that the borrower holds Student loans typically fluctuate from the current rate of 4 70% to something like 8 25% on the higher side Students are allowed to consolidate with a private lender once under the current consolidation program After that, they are expected to reconsolidate with the Department of Education

It does not matter whether the debtor decides to combine different types of loans, the fact remains that reconsolidation does not change the rates of the loans Re-financing is the other term that is used to refer to the federal student loan consolidation program This is not a very accurate term because the loan rates do not change; they are merely locked in

Loan consolidation for students does not incur any extra fees for the borrowers whatsoever Private companies, on the other hand, are notorious for separating students from their money to receive the federal government subsidies for consolidation

Please follow the links to get more information on debit consolidation and debt consolidators.

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Author : Steve Smith

Both those currently operating in the armed forces and veterans of the services are on track to receive greater financial advice, it has emerged

In a partnership due to last for three years, Citizens Advice, the Royal British Legion and the Royal Air Force Benevolent Fund are working together to provide a benefits and money advice service to help give guidance on money matters to people who have been in the services as well as their dependants

As a result, those who have previously served their country and people currently operating in the armed forces may be able to operate with more confidence when organising their finances, whether this ranges from creating a budget and claiming benefits to searching for a cheap loan and getting a savings account

The move will see advice for those at 18 Citizens Advice offices across England and Wales over the course of this month, in locations including Chorley, Portsmouth, Caerphilly, Exeter and Newcastle Next year it is hoped that a further two branches will issue such guidance, which could mean that even more servicemen and women, both currently working for the armed forces and veterans, will be able to receive help on loans and other financial areas

The scheme comes after a survey revealed that although the Royal British Legion offers help with money to the armed service communities via its Poppy Support programme, a “fully holistic service” is also needed Indeed, a fifth of Poppy Support beneficiaries, about 5,550 people, believe that difficulty in managing debt is one of the largest problems they currently face Findings from the study also showed that those serving for between three and five years are under the greatest hardship in paying back loans and other demands on their spending

Commenting on the news, Harvey Tilley, head of community services for the Royal British Legion, said: “Recent research shows there is a need for more services which provide money and benefit advice to service personnel and their families This new collaboration will provide much-needed additional support to all those currently serving in the armed forces as well as ex-service personnel and their dependants We’re very pleased to be working with Citizens Advice and the Royal Air Force Benevolent Fund in order to use our pooled resources and experience to reach more people ”

Jackie Nowell, head of partnership development for Citizens Advice, added: “People linked to the armed forces have the same problems as everyone else, such as accessing benefits and need advice with money problems ” She added that upon leaving the forces, many people may not be aware of which benefits they are entitled to or how to seek help with getting a job or housing

As a result of receiving such guidance, those who have worked for the armed services, whether they have just left or are a veteran of many years, may wish to consider taking out a personal loan to help supplement their spending Speaking earlier this year, Paul Morrish, head of Abbey Loans, claimed that people looking to borrow money for whatever purpose should apply for a loan from a professional financial services firm, instead of a friend or family member Doing the latter, he suggested, could see people “risking a relationship meltdown”

Steve Smith writes for 1 Stop Finance Shop. A one stop shop for all your poor credit loans, online debt consolidation and the best personal loans.Visit Today

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Author : Peter Kenny

Buying and selling consumer goods and services is the benchmark of today’s society With the exception of the air you breathe, everything you need on a daily basis must be purchased, including clothes, food, transportation, and shelter Three little digits known as your credit score have a great influence on your ability to purchase these things

Your score is a numerical summary of your financial history The number is determined by using an algorithm that takes into account your key issues such as your payment history, the amount of debt you hold, length of your credit history, the amount of credit applications made, and types of credit Certain actions, such as applying for several types of loans in a short period of time, can have a negative effect on your score, which can range from 300 to 850 The lower your score is, the harder it will be for you to obtain certain services

At first you might think that your credit score shouldn’t have an affect on obtaining services as long as you aren’t purchasing something using a loan Many service providers look at credit in a much different sense For instance,the electricity company defines credit as extending one month of service to you Your cellular phone service company considers your one- or two-year contract as a form of credit Each of these businesses will use your score to decide whether or not to extend these services to you

A low score could possibly mean that you would be required to pay an additional deposit for services such as utilities and cellular phone service Worse yet, you could be denied altogether for some services solely based upon your score, even if you have the cash to pay for the service up front Many landlords will use your credit history as a deciding factor on whether or not to extend a lease to you Some of these landlords have a minimum credit score requirement If you fall below this limit you could be turned down for the rental, even if you were going to pay for the entire lease up front

Certain employers use the credit score as a contingency for employment An application for employment can be denied if your score is low a set limit

The same way that a low credit score can shut you out of certain services, a high score can open up possiblities you might not have realized existed Most individuals who have high scores don’t realize the benefits extended to them For example, a higher score allows you to qualify for platinum credit cards that provide rewards such as cash back and travel rewards Other advantages to having a high score include lower interest rates and security deposits

Peter Kenny is a writer for Finance 123. Please visit us at Low Interest Credit Cards and Small Business Credit Cards

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Author : Caterina Christakos

One of the primary goals of asset allocation is to balance risk and reward from the overall investment choices Determining overall risk and reward is extremely important when it comes to the planned time line of your investment

For example, if you are a 25 year old, you want to choose assets that have a higher risk because you intend to work for a good number of years However, if you are 60 years old and plan to retire at 65, you would more than likely desire more a conservative investments allocation

Some investment allocation choices include:

Cash Cash is considered a very liquid investment This can include money in a savings account, a money market account or any other account where you can easily deposit or withdraw the amount of money The rate of return on these types of choices is usually very low

Real Estate You don’t have to be an apartment owner to have real estate investments In fact, anyone who owns a home has an investment in real estate When figuring out your asset allocation, don’t forget assets that you may take for granted

Over the long haul, real estate has tended to increase in values However, there is still risk associated with this type of asset

Stocks Stocks are considered ownership in a company Many individuals are given stock options from the company they work for Others may just decide to purchase a specific company’s stock on their own

By having ownership in the company, you are linking that specific investment to the healthiness of the company For someone who purchased Enron stock, the decision was a bad one For someone who purchased Microsoft at the initial roll out, the decision was a great one

Bonds Bonds are basically a debt If you are to purchase a bond from a company or a government agency, you are basically giving the bond issuer a loan The bond will state the repayment terms and interest rate Repayment terms are usually very long-term, such as ten years or more

For the most part, bonds are usually pretty stable, so long as the issuer is stable Junk bonds have been the riskiest as they are rated risky by credit rating agencies

Precious Metals/Natural resources Do not forget the diamonds! Or gold These types of investments are usually considered safe during troubled financial times But even without troubled times, some individuals just like to purchase these types of assets

The overall goal of diversification is to gain assets that have little to no correlation to each other For example, gold may rise, real estate may fall, but they are not linked together so market downturns won’t mean a huge portfolio drop

Caterina Christakos is an experienced investor and instructor with World Capital Institute. Ever imagined yourself as a stock or commodities broker? Check this out:http://www.worldcapitalinstitute.com

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