Following 10-weeks of consolidation, the USD/JPY has broken out of a triangle pattern.
Typically triangle patterns result in a continuation of the long term trend. However, as the daily chart shows, the USD/JPY has breached above the upper leg of the triangle.
An estimate of the price move from the triangle pattern calls for a 3.5 yen appreciation from the breakout price. A more conservative target may be the September high of 86.00. Along the way, resistance will be found at 83.70 and the top of the triangle pattern at 84.50.
In the direction of the long term trend, support is located at the declining upper leg of the triangle which comes in today at 82.80. 81.80 may come into play should the price retrace back into the triangle. Further support is the lower leg of the triangle at 81.40 and the January low at 80.90.
View the original article here
Monday, February 28, 2011
Sunday, February 27, 2011
U.K. Inflation As Expected, Sterling Under Crowded Selling
The U.K.'s Office for National Statistics earlier released the Consumer Price Index for last month. According to the statement, month-on-month, the CPI fell to 0.1%, matching the forecasts by a consensus of analysts, and well off last month's 1% rise. As compared to the same period a year ago, however, data shows that the CPI rose to 4% from January 2009 3.7%, slightly off analysts' forecast of 4.1%. Using the CPI as a gauge of inflation, at 4.0%, the inflation rate is now double the Bank of England's 2% target, and is now the highest it's been in more than two years.
The data calls into question the Bank of England's commitment to keep interest rates at their historically low .5%. Their concern is that raising interest rates now could further jeopardize their already fragile economy, and make full recovery even more difficult to achieve. The U.K. central bank has been relying on the argument that one-off fundamentals were driving inflation. One of those "one-off" includes a hike in the Value Added Tax, which went into effect on January 4th. One economist concurs that the January CPI figures are "tricky" and may in fact have been affected by the recently implemented tax changes.
Nonetheless, this recent data calls the Bank of England's assertion and commitment into question. Growing pressure on prices are leading investors to the inexorable conclusion that the central bank may have no choice but to consider a rate increase, at a minimum of 25 basis points, as soon as May.
While some market players said that the expected inflationary pressures were already factored into market prices, the Pound Sterling slipped broadly, nonetheless. Currently, the Pound Sterling is trending lower against major currencies, and trading against the U.S. Dollar at 1.6020; on the eToro trading floor, among traders of GBP/USD the sentiment is bullish with a ratio of 6 to 5 in favor of selling. The Pound is also lower against the Euro; EUR/GBP is at .8438 and on the eToro trading floor, the sentiment is bullish with a ratio of 2 to 4 in favor of selling. Against the Japanese Yen, the Pound Sterling is 133.9241; on the eToro trading floor, among traders of GBP/JPY the sentiment is bullish with a ratio of 3 to 2 in favor of buying.
View the original article here
The data calls into question the Bank of England's commitment to keep interest rates at their historically low .5%. Their concern is that raising interest rates now could further jeopardize their already fragile economy, and make full recovery even more difficult to achieve. The U.K. central bank has been relying on the argument that one-off fundamentals were driving inflation. One of those "one-off" includes a hike in the Value Added Tax, which went into effect on January 4th. One economist concurs that the January CPI figures are "tricky" and may in fact have been affected by the recently implemented tax changes.
Nonetheless, this recent data calls the Bank of England's assertion and commitment into question. Growing pressure on prices are leading investors to the inexorable conclusion that the central bank may have no choice but to consider a rate increase, at a minimum of 25 basis points, as soon as May.
While some market players said that the expected inflationary pressures were already factored into market prices, the Pound Sterling slipped broadly, nonetheless. Currently, the Pound Sterling is trending lower against major currencies, and trading against the U.S. Dollar at 1.6020; on the eToro trading floor, among traders of GBP/USD the sentiment is bullish with a ratio of 6 to 5 in favor of selling. The Pound is also lower against the Euro; EUR/GBP is at .8438 and on the eToro trading floor, the sentiment is bullish with a ratio of 2 to 4 in favor of selling. Against the Japanese Yen, the Pound Sterling is 133.9241; on the eToro trading floor, among traders of GBP/JPY the sentiment is bullish with a ratio of 3 to 2 in favor of buying.
View the original article here
Saturday, February 26, 2011
IT-BPO Sector To Grow 19 Percent In FY11: Nasscom
Despite an uncertain global economic environment, the Indian IT-BPO industry is estimated to have grown 19 percent, with revenues of $76 billion in 2010,11, software industry body National Association of Software & Services Companies (Nasscom) said on Wednesday.
The industry has once again exhibited buoyancy and maturity, reflected through a strong customer demand, it said.
"Pent-up demand for IT-BPO services, return of discretionary spending, new business models that encouraged first time buyers, and re-invented value proposition for existing customers, were the key drives for the industry performance," Nasscom president Som Mittal said in a statement.
Exports continued to be the mainstay of the industry with revenues of $59 billion, growing at 18.7 percent, while the domestic market witnessed steady growth of 16 percent.
For FY12, the software and services growth is expected to grow at 16-18 percent with $68-70 billion in revenues. The domestic market is estimated to grow by 15-17 percent with revenues of Rs 90,000-92,000 crore.
"Domain expertise, process excellence, the ability to leverage technology to enhance operating efficiencies, greater scalability are becoming paramount in ensuring the long-term success of the global sourcing model and a major differentiating factor among countries. India is a front runner in imbibing these multipliers into its value proposition." Mittal said.
View the original article here
The industry has once again exhibited buoyancy and maturity, reflected through a strong customer demand, it said.
"Pent-up demand for IT-BPO services, return of discretionary spending, new business models that encouraged first time buyers, and re-invented value proposition for existing customers, were the key drives for the industry performance," Nasscom president Som Mittal said in a statement.
Exports continued to be the mainstay of the industry with revenues of $59 billion, growing at 18.7 percent, while the domestic market witnessed steady growth of 16 percent.
For FY12, the software and services growth is expected to grow at 16-18 percent with $68-70 billion in revenues. The domestic market is estimated to grow by 15-17 percent with revenues of Rs 90,000-92,000 crore.
"Domain expertise, process excellence, the ability to leverage technology to enhance operating efficiencies, greater scalability are becoming paramount in ensuring the long-term success of the global sourcing model and a major differentiating factor among countries. India is a front runner in imbibing these multipliers into its value proposition." Mittal said.
View the original article here
Friday, February 25, 2011
Semiconductor Stocks Helped Higher By Analyst Comments On Micron
Despite the lack of direction being shown by the broader markets, semiconductor stocks are seeing notable strength in late morning trading on Monday. Upbeat analyst comments regarding sector component Micron (MU) are contributing to the upside.
The gains by semiconductor stocks have resulted in a 1.2 percent advance by the Philadelphia Semiconductor Index, which is currently poised to end the day at its best closing level since October of 2007.
Micron is turning in one of the sector's best performances, with the memory chip maker currently up by 3.8 percent. Shares are on pace to close at their highest price since August of 2007.
ThinkEquity boosted its estimates through 2012 based on projecting strong end-user demand for the firm's chips. ThinkEquity has a Buy rating on Micron and a $15 price target.
Further, Micron indicated a positive outlook for pricing in the memory-chip market on Friday, forecasting pickups in February and March numbers.
SanDisk (SNDK) is also benefiting from the news, rising by 3.6 percent and on target for its best close in nearly a month.
Advanced Micro Devices (AMD) is also trading higher, seeing a gain of 3.3 percent. Shares are also on track for their best close in a month's time.
MEMC Electronic Materials Inc. (WFR), Cirrus Logic (CRUS), KLA-Tencor (KLAC) and NetLogic Microsystems (NETL) are also sharply higher, while Broadcom (BRCM) is one of the few losers in the sector, down by 0.7 percent on the day.
View the original article here
The gains by semiconductor stocks have resulted in a 1.2 percent advance by the Philadelphia Semiconductor Index, which is currently poised to end the day at its best closing level since October of 2007.
Micron is turning in one of the sector's best performances, with the memory chip maker currently up by 3.8 percent. Shares are on pace to close at their highest price since August of 2007.
ThinkEquity boosted its estimates through 2012 based on projecting strong end-user demand for the firm's chips. ThinkEquity has a Buy rating on Micron and a $15 price target.
Further, Micron indicated a positive outlook for pricing in the memory-chip market on Friday, forecasting pickups in February and March numbers.
SanDisk (SNDK) is also benefiting from the news, rising by 3.6 percent and on target for its best close in nearly a month.
Advanced Micro Devices (AMD) is also trading higher, seeing a gain of 3.3 percent. Shares are also on track for their best close in a month's time.
MEMC Electronic Materials Inc. (WFR), Cirrus Logic (CRUS), KLA-Tencor (KLAC) and NetLogic Microsystems (NETL) are also sharply higher, while Broadcom (BRCM) is one of the few losers in the sector, down by 0.7 percent on the day.
View the original article here
Centene Helping To Lead The Health Insurance Sector Higher
While most of the major sectors are showing only modest moves in morning trading on Tuesday, considerable strength has emerged among health insurance stocks. Centene (CNC) is helping to lead the sector higher after reporting better than expected fourth quarter earnings.
Reflecting the strength in the health insurance sector, the Morgan Stanley Healthcare Payor Index is currently up by 1.7 percent. The index is poised to end the session at a three-month closing.
Health insurer Centene is currently up by 6.1 percent after reaching its best intraday in almost five years. The gain by Centene comes after the company reported fourth quarter earnings of $0.50 per share, exceeding analyst estimates for earnings of $0.48 per share.
For full year 2011, Centene said it expects earnings in a range of $2.00 to $2.10 per share on premium and service revenues in a range between $4.9 billion and $5.1 billion. Analysts expect earnings of $2.05 per share on revenues of $5.03 billion.
Molina Healthcare (MOH) is also turning in a strong performance on the day, rising by 3.4 percent. At its high for the session, Molina was at its best intraday level in well over two years.
Aetna (AET), Amerigroup (AGP), and WellCare Health Plans (WCG) are also posting notable gains, contributing to the strength in the health insurance sector.
On the other hand, shares of Coventry Health Care (CVH) are currently down by 3.7 percent after the company reported better than expected fourth quarter earnings but forecast full year 2011 results below expectations. Coventry is pulling back off the well over two year high it set on Monday.
View the original article here
Reflecting the strength in the health insurance sector, the Morgan Stanley Healthcare Payor Index is currently up by 1.7 percent. The index is poised to end the session at a three-month closing.
Health insurer Centene is currently up by 6.1 percent after reaching its best intraday in almost five years. The gain by Centene comes after the company reported fourth quarter earnings of $0.50 per share, exceeding analyst estimates for earnings of $0.48 per share.
For full year 2011, Centene said it expects earnings in a range of $2.00 to $2.10 per share on premium and service revenues in a range between $4.9 billion and $5.1 billion. Analysts expect earnings of $2.05 per share on revenues of $5.03 billion.
Molina Healthcare (MOH) is also turning in a strong performance on the day, rising by 3.4 percent. At its high for the session, Molina was at its best intraday level in well over two years.
Aetna (AET), Amerigroup (AGP), and WellCare Health Plans (WCG) are also posting notable gains, contributing to the strength in the health insurance sector.
On the other hand, shares of Coventry Health Care (CVH) are currently down by 3.7 percent after the company reported better than expected fourth quarter earnings but forecast full year 2011 results below expectations. Coventry is pulling back off the well over two year high it set on Monday.
View the original article here
Thursday, February 24, 2011
Networking Stocks Rally After Mixed Results From Alcatel Lucent, Cisco
Networking stocks are posting notable gains during trading on Thursday, as better than expected fourth quarter earnings from Alcatel Lucent (ALU) are helping to overshadow disappointing guidance from sector giant Cisco Systems (CSCO).
The strength among networking stocks is reflected by the 3.2 percent gain currently being shown by the NYSE Arca Networking Index. The move has the index on pace for its best close since early 2004.
French telecommunications equipment maker Alcatel-Lucent reported a surge in its fourth-quarter profits, with the increase driven by strong revenue growth in all geographic regions and business segments.
On an adjusted basis, Alcatel-Lucent's earnings per ADS topped analyst estimates. The company also said it expects strong profit growth and market improvement in 2011.
Alcatel-Lucent has surged up by nearly 20 percent on the news and is on pace for its best closing price since October of 2009.
Meanwhile, Cisco is sharply lower after reporting better than expected second quarter earnings but providing disappointing guidance.
The networking giant said it expects third quarter earnings of $0.35 to $0.38 per share, below analyst estimates for $0.40 per share. Cisco also said full year sales growth would be at the mid to low-end of its previous outlook.
Cisco has plummeted by 13 percent and is on track for its worst close since early December.
In other action within the sector, Juniper Networks (JNPR), Ciena (CIEN) and Adtran (ADTN) are posting strong gains and are all on pace for new benchmark highs.
Juniper is poised to close at its best price since mid-2001, while Ciena is on pace for its best close since 2008. Adtran is looking to close at a fresh historic high.
View the original article here
The strength among networking stocks is reflected by the 3.2 percent gain currently being shown by the NYSE Arca Networking Index. The move has the index on pace for its best close since early 2004.
French telecommunications equipment maker Alcatel-Lucent reported a surge in its fourth-quarter profits, with the increase driven by strong revenue growth in all geographic regions and business segments.
On an adjusted basis, Alcatel-Lucent's earnings per ADS topped analyst estimates. The company also said it expects strong profit growth and market improvement in 2011.
Alcatel-Lucent has surged up by nearly 20 percent on the news and is on pace for its best closing price since October of 2009.
Meanwhile, Cisco is sharply lower after reporting better than expected second quarter earnings but providing disappointing guidance.
The networking giant said it expects third quarter earnings of $0.35 to $0.38 per share, below analyst estimates for $0.40 per share. Cisco also said full year sales growth would be at the mid to low-end of its previous outlook.
Cisco has plummeted by 13 percent and is on track for its worst close since early December.
In other action within the sector, Juniper Networks (JNPR), Ciena (CIEN) and Adtran (ADTN) are posting strong gains and are all on pace for new benchmark highs.
Juniper is poised to close at its best price since mid-2001, while Ciena is on pace for its best close since 2008. Adtran is looking to close at a fresh historic high.
View the original article here
Wednesday, February 23, 2011
Railroad Stocks Advancing Amid Relief Buying
As the broader markets have jumped on news of the resignation of Egyptian President Hosni Mubarak, railroad stocks are posting notable gains amid relief buying on Friday.
The strength in the railroad sector is reflected by the 1.7 percent gain currently being shown by the Dow Jones Railroads Index. With the gain, the index is once again on pace for an historic closing high.
Kansas City Southern (KSU) is turning in one of the sector's best performances, rising by 2.5 percent. Shares of Kansas City Southern are currently poised for a fresh historic closing high.
CSX Corp. (CSX) and Westinghouse Air Brake Technologies (WAB) are also markedly higher, up by 1.6 percent and 1.3 percent, respectively.
CSX is on track for an all-time closing high, while Westinghouse Air Brake Technologies is poised to end the day at its best closing price since September of 2008.
Norfolk Southern (NSC), Union Pacific (UNP) and Canadian Pacific (CP) are also markedly higher, while some weakness is visible among shares of Guangshen Railway (GSH), which are down by 1.1 percent.
View the original article here
The strength in the railroad sector is reflected by the 1.7 percent gain currently being shown by the Dow Jones Railroads Index. With the gain, the index is once again on pace for an historic closing high.
Kansas City Southern (KSU) is turning in one of the sector's best performances, rising by 2.5 percent. Shares of Kansas City Southern are currently poised for a fresh historic closing high.
CSX Corp. (CSX) and Westinghouse Air Brake Technologies (WAB) are also markedly higher, up by 1.6 percent and 1.3 percent, respectively.
CSX is on track for an all-time closing high, while Westinghouse Air Brake Technologies is poised to end the day at its best closing price since September of 2008.
Norfolk Southern (NSC), Union Pacific (UNP) and Canadian Pacific (CP) are also markedly higher, while some weakness is visible among shares of Guangshen Railway (GSH), which are down by 1.1 percent.
View the original article here
Tuesday, February 22, 2011
Semiconductor Stocks Rising After Strong Teradyne, Cirrus Logic Results
Semiconductor stocks are seeing a strong upward move during trading on Thursday, as upbeat earnings from sector components Teradyne (TER) and Cirrus Logic (CRUS) are boosting buying interest in the sector.
The strength in the semiconductor sector is reflected by the 1.2 percent gain currently being shown by the Philadelphia Semiconductor Index. The index remains in a range near a three-year closing high set earlier this month.
The index is being led higher by shares of Teradyne and Cirrus Logic, which have surged up by 9.6 percent and 9.5 percent, respectively.
Teradyne is moving higher after reporting adjusted fourth quarter earnings of $0.37 per share on revenues of $322.17 million, exceeding analyst estimates for earnings of $0.25 per share on revenues of $316.31 million
Looking forward, the company expects first quarter earnings between $0.26 and $0.31 per share. Analysts had expected the company to earn $0.19 per share for the quarter.
The company also said it expects to generate revenue in a range of $350 million to $375 million for the first quarter, while analysts had expected revenues of $299.99 million.
Cirrus Logic is advancing after its third quarter earnings and revenues beat expectations and its revenue guidance for the fourth quarter was better than expected.
The company reported third quarter earnings of $0.34 per share, higher than expectations for $0.32 per share. Revenues for the quarter totaled $95.6 million, also above forecasts that called for $91.66 million.
"Looking at both the fourth quarter and the next fiscal year, we believe we will continue to grow revenue at a faster rate than the semiconductor industry as a whole." said Jason Rhode, president and chief executive officer of Cirrus Logic.
For the fourth quarter, Cirrus Logic said it expects revenue in a range between $88 million and $94 million. Wall Street analysts had expected revenues of $85.6 million.
In other action within the sector, Micron Technology (MU), STMicroelectronics (STM), Avago Technologies Limited (AVGO) and Applied Materials (AMAT) are also seeing strong gains, further boosting the semiconductor sector.
Meanwhile, Lam Research (LRCX), Veeco Instruments (VECO) and Nvidia (NVDA) are among the weak links in the sector on the day.
View the original article here
The strength in the semiconductor sector is reflected by the 1.2 percent gain currently being shown by the Philadelphia Semiconductor Index. The index remains in a range near a three-year closing high set earlier this month.
The index is being led higher by shares of Teradyne and Cirrus Logic, which have surged up by 9.6 percent and 9.5 percent, respectively.
Teradyne is moving higher after reporting adjusted fourth quarter earnings of $0.37 per share on revenues of $322.17 million, exceeding analyst estimates for earnings of $0.25 per share on revenues of $316.31 million
Looking forward, the company expects first quarter earnings between $0.26 and $0.31 per share. Analysts had expected the company to earn $0.19 per share for the quarter.
The company also said it expects to generate revenue in a range of $350 million to $375 million for the first quarter, while analysts had expected revenues of $299.99 million.
Cirrus Logic is advancing after its third quarter earnings and revenues beat expectations and its revenue guidance for the fourth quarter was better than expected.
The company reported third quarter earnings of $0.34 per share, higher than expectations for $0.32 per share. Revenues for the quarter totaled $95.6 million, also above forecasts that called for $91.66 million.
"Looking at both the fourth quarter and the next fiscal year, we believe we will continue to grow revenue at a faster rate than the semiconductor industry as a whole." said Jason Rhode, president and chief executive officer of Cirrus Logic.
For the fourth quarter, Cirrus Logic said it expects revenue in a range between $88 million and $94 million. Wall Street analysts had expected revenues of $85.6 million.
In other action within the sector, Micron Technology (MU), STMicroelectronics (STM), Avago Technologies Limited (AVGO) and Applied Materials (AMAT) are also seeing strong gains, further boosting the semiconductor sector.
Meanwhile, Lam Research (LRCX), Veeco Instruments (VECO) and Nvidia (NVDA) are among the weak links in the sector on the day.
View the original article here
Monday, February 21, 2011
Trucking Stocks Under Pressure After C.H. Robinson, Old Dominion Earnings
Trucking stocks are seeing notable weakness during trading on Wednesday, as components C.H. Robinson Worldwide Inc. (CHRW) and Old Dominion Freight Line (ODFL) are posting steep losses after reporting their quarterly results.
The weakness in the trucking sector is reflected by the 3.3 percent loss currently being shown by the Dow Jones Trucking Index. With the loss, the index has fallen to a two-month intraday low.
C.H. Robinson Worldwide Inc. is one of the worst performers in the sector, falling by 4.8 percent, and it also hit its worst intraday level in two months.
The weakness comes after C.H. Robinson reported net income of $0.62 per share for the fourth quarter, just short of forecasts for $0.63 per share. Revenues also missed projections, coming in at $2.32 billion, while analysts expected revenues of $2.34 billion.
Old Dominion Freight Line is also under pressure, falling by 4.9 percent and hitting its worst price in over two months earlier on.
The slide comes even though the firm posted fourth quarter net income of $0.39 per share, higher than the $0.17 per share last year. On average, analysts expected the company to report earnings of $0.38 per share.
Revenue rose to $398.97 million from $310.92 million in the same quarter last year and was well ahead of forecasts for $384.23 million.
Con-Way Inc. (CNW) is also under pressure, falling by 3.6 percent. Con-Way is scheduled to release its fourth quarter financial results after the close of trading.
JB Hunt Transport Services Inc. (JBHT) is also trading lower, seeing a loss of 1.1 percent, although it remains in a range.
View the original article here
The weakness in the trucking sector is reflected by the 3.3 percent loss currently being shown by the Dow Jones Trucking Index. With the loss, the index has fallen to a two-month intraday low.
C.H. Robinson Worldwide Inc. is one of the worst performers in the sector, falling by 4.8 percent, and it also hit its worst intraday level in two months.
The weakness comes after C.H. Robinson reported net income of $0.62 per share for the fourth quarter, just short of forecasts for $0.63 per share. Revenues also missed projections, coming in at $2.32 billion, while analysts expected revenues of $2.34 billion.
Old Dominion Freight Line is also under pressure, falling by 4.9 percent and hitting its worst price in over two months earlier on.
The slide comes even though the firm posted fourth quarter net income of $0.39 per share, higher than the $0.17 per share last year. On average, analysts expected the company to report earnings of $0.38 per share.
Revenue rose to $398.97 million from $310.92 million in the same quarter last year and was well ahead of forecasts for $384.23 million.
Con-Way Inc. (CNW) is also under pressure, falling by 3.6 percent. Con-Way is scheduled to release its fourth quarter financial results after the close of trading.
JB Hunt Transport Services Inc. (JBHT) is also trading lower, seeing a loss of 1.1 percent, although it remains in a range.
View the original article here
Sunday, February 20, 2011
Pension going away? Here's how to protect your savings
Defined benefit ("DB") retirement plans—often referred to as pension plans—are not as common as they once were. And some plan sponsors are expected to terminate their plans in the near future.
If this happens to your pension, you'll probably be offered a lump-sum payout from your plan sponsor as an alternative to the plan's annuity benefit. And you'll face an important decision: What should you do with the money?
If you find yourself in this situation—whether because your pension plan was terminated or for a different reason, such as retirement or changing jobs—you generally have three options:
Put the money to work. To keep your savings earmarked for retirement, you could invest your pension assets through a rollover into a traditional IRA or a 401(k) plan sponsored by your employer. Either approach can keep your money working tax-deferred through a variety of investment options. This option can be particularly beneficial if you're in the early stages of your working career. (See "Rollovers made easy" below for more information.)
Select an annuity. An income annuity may be an attractive option if you're looking for cash flow in retirement and you're concerned about outliving your savings. But annuities aren't for everyone, and the decision to invest in an annuity is generally irreversible. Your existing DB plan will probably offer annuity options, which usually require you to take your entire distribution as an annuity. Another option would be to consider rolling your distribution into an IRA and allocating a portion of your funds toward the purchase of an annuity. Learn more about lower-cost annuity options available through Vanguard.
Take a taxable distribution. It may be tempting to receive your money immediately. But be warned: A lump-sum payout that isn't rolled over will be taxed as income. If you spend it now, it'll reduce your income in retirement. Even if you invest it in a nonretirement account, it will no longer grow tax-free.
"There are advantages and disadvantages to each approach," said Evan Inglis, chief actuary in Vanguard's Strategic Retirement Consulting group. "However, the tax consequences of taking an immediate distribution mean that it's usually not advisable. That's why we generally suggest that pension plan participants roll over their assets or select an annuity."
Performing a rollover couldn't be simpler or more straightforward. At Vanguard, you'll get hands-on guidance from an experienced rollover specialist who can help you get started, answer your questions, and offer ongoing support for your financial goals.
To find out how to put a pension plan distribution to work—or simply to learn more about retirement rollovers—call us at 800-523-9442 or visit the rollover section of our site.
Note:
All investments are subject to risk.
View the original article here
If this happens to your pension, you'll probably be offered a lump-sum payout from your plan sponsor as an alternative to the plan's annuity benefit. And you'll face an important decision: What should you do with the money?
If you find yourself in this situation—whether because your pension plan was terminated or for a different reason, such as retirement or changing jobs—you generally have three options:
Put the money to work. To keep your savings earmarked for retirement, you could invest your pension assets through a rollover into a traditional IRA or a 401(k) plan sponsored by your employer. Either approach can keep your money working tax-deferred through a variety of investment options. This option can be particularly beneficial if you're in the early stages of your working career. (See "Rollovers made easy" below for more information.)
Select an annuity. An income annuity may be an attractive option if you're looking for cash flow in retirement and you're concerned about outliving your savings. But annuities aren't for everyone, and the decision to invest in an annuity is generally irreversible. Your existing DB plan will probably offer annuity options, which usually require you to take your entire distribution as an annuity. Another option would be to consider rolling your distribution into an IRA and allocating a portion of your funds toward the purchase of an annuity. Learn more about lower-cost annuity options available through Vanguard.
Take a taxable distribution. It may be tempting to receive your money immediately. But be warned: A lump-sum payout that isn't rolled over will be taxed as income. If you spend it now, it'll reduce your income in retirement. Even if you invest it in a nonretirement account, it will no longer grow tax-free.
"There are advantages and disadvantages to each approach," said Evan Inglis, chief actuary in Vanguard's Strategic Retirement Consulting group. "However, the tax consequences of taking an immediate distribution mean that it's usually not advisable. That's why we generally suggest that pension plan participants roll over their assets or select an annuity."
Performing a rollover couldn't be simpler or more straightforward. At Vanguard, you'll get hands-on guidance from an experienced rollover specialist who can help you get started, answer your questions, and offer ongoing support for your financial goals.
To find out how to put a pension plan distribution to work—or simply to learn more about retirement rollovers—call us at 800-523-9442 or visit the rollover section of our site.
Note:
All investments are subject to risk.
View the original article here
Friday, February 18, 2011
Retirement Mistakes You Must Avoid
Are you planning and saving for retirement? That's good, but that may not be enough. While taking the initiative to plan for the future and begin saving money to fund your retirement goals is a great start, there are plenty of additional planning items to take note of.
Here are six of the most common planning mistakes:
As you can see, saving for retirement is a great start, but there are many areas in which you can still make mistakes. Continue reading to learn more about these six retirement planning mistakes and how you can avoid them.
View the original article here
Here are six of the most common planning mistakes:
- Not maximizing your employer match.
- Borrowing from your retirement assets.
- Failing to diversify.
- Failing to rebalance your portfolio.
- Taking an early distribution.
- Becoming paralyzed by choices.
As you can see, saving for retirement is a great start, but there are many areas in which you can still make mistakes. Continue reading to learn more about these six retirement planning mistakes and how you can avoid them.
View the original article here
Thursday, February 17, 2011
How the Roth IRA Can Help You Retire
Most people save for retirement in their employer-sponsored plan such as a?401(k) or?403(b) plan, but these plans provide up-front tax deductions and tax-deferred growth. While this can be a great feature, the problem is that the money will still be taxed as ordinary income upon withdrawal in retirement. If tax rates are lower, or you're in a lower tax bracket when this happens, that is ideal, but what happens when you find that taxes are higher upon retirement?
This is where a?Roth IRA can come in handy. Unlike the employer-sponsored plans and its cousin, the Traditional IRA, qualified withdrawals from a Roth IRA are tax-free. You don't get the benefit of a tax deduction on the contributions since they are made with after-tax dollars, but the money still grows tax-deferred, and in most cases, can be withdrawn in retirement completely free from taxes. This is great for situations where tax rates may increase in the future as you'll avoid being heavily taxed on those withdrawals.
Now, this isn't to say that one type of retirement plan is better than another, but both pre-tax and tax-free accounts have their advantages. It is typically a good idea to have retirement money in both types of accounts so that you're diversifying your tax liabilities and can structure your withdrawals in a way that minimizes your tax burden both now, and in the future. Take a moment to?learn more about the Roth IRA.
View the original article here
This is where a?Roth IRA can come in handy. Unlike the employer-sponsored plans and its cousin, the Traditional IRA, qualified withdrawals from a Roth IRA are tax-free. You don't get the benefit of a tax deduction on the contributions since they are made with after-tax dollars, but the money still grows tax-deferred, and in most cases, can be withdrawn in retirement completely free from taxes. This is great for situations where tax rates may increase in the future as you'll avoid being heavily taxed on those withdrawals.
Now, this isn't to say that one type of retirement plan is better than another, but both pre-tax and tax-free accounts have their advantages. It is typically a good idea to have retirement money in both types of accounts so that you're diversifying your tax liabilities and can structure your withdrawals in a way that minimizes your tax burden both now, and in the future. Take a moment to?learn more about the Roth IRA.
View the original article here
Wednesday, February 16, 2011
Get Your Finances Organized for 2011
It's a new year, so that means new resolutions for many. Whether it's losing a few pounds, cutting back on drinks, or whipping your finances into shape, most of us have a hard time sticking with our resolutions for the long run. So, here's one that's easy to implement and it can make a real difference in your finances going forward.
To put it simply: get organized. That's right, it's time to get your finances in order. By starting a filing system and automating many financial tasks you can not only save time, but even save money. Get the new year off to a good start.
View the original article here
To put it simply: get organized. That's right, it's time to get your finances in order. By starting a filing system and automating many financial tasks you can not only save time, but even save money. Get the new year off to a good start.
View the original article here
Tuesday, February 15, 2011
Making the Most of a Low Interest Rate Environment
For over a year now interest rates as a whole have generally been falling. Of course you may have some instances where rates are increasing, for the most part when it comes to savings accounts, CDs, and even mortgage rates, they are down sharply compared to a few years ago.
Lower interest rates are good for borrowing money since it means you will be paying less in interest. The bad news is that the Fed rate cuts don't directly translate into lower rates for consumers. These cuts can take many months before the effects are felt on your bottom line, but you can begin shopping for lower rates now. Once you can begin to benefit from the lower rates, you'll have more money in your pocket as less is being spent on interest payments.
While lower interest rates saves you money when borrowing, the opposite is true when you are saving money at the bank. As interest rates fall, the rate of return on your checking, savings and CD accounts will likely follow suit. If you enjoyed the comfortable savings rates during most of 2007, you're probably not very excited as many rates have now dropped below the rate of inflation. If you can, make sure you're getting the best rate possible and explore other banks to ensure you're getting as much interest on your savings as possible.
View the original article here
Lower interest rates are good for borrowing money since it means you will be paying less in interest. The bad news is that the Fed rate cuts don't directly translate into lower rates for consumers. These cuts can take many months before the effects are felt on your bottom line, but you can begin shopping for lower rates now. Once you can begin to benefit from the lower rates, you'll have more money in your pocket as less is being spent on interest payments.
While lower interest rates saves you money when borrowing, the opposite is true when you are saving money at the bank. As interest rates fall, the rate of return on your checking, savings and CD accounts will likely follow suit. If you enjoyed the comfortable savings rates during most of 2007, you're probably not very excited as many rates have now dropped below the rate of inflation. If you can, make sure you're getting the best rate possible and explore other banks to ensure you're getting as much interest on your savings as possible.
View the original article here
Monday, February 14, 2011
Have You Set Any Financial Goals for the New Year Yet?
We're only a few short weeks from the start of a new year and most people use the new year as an excuse to set some new financial goals. One of the most common goals is simply to manage money better, spend less, and save more. This is achieved by creating and following a budget. Controlling spending, saving money, and investing for the future are all important aspects of financial planning, but those things mean nothing if you don't have specific goals that you're trying to reach. In order to gauge your financial success, you need to have goals so that you can measure your success. The second step in personal financial planning is choosing and following a course toward long-term financial goals.
The four steps to setting financial goals:
Identify and write down your goals.
Break goals down into short-term and long-term goals.
Educate yourself.
Evaluate your progress.
View the original article here
The four steps to setting financial goals:
Identify and write down your goals.
Break goals down into short-term and long-term goals.
Educate yourself.
Evaluate your progress.
View the original article here
Higher Income From High Yield Bonds Posted By : Tony Reed
To understand high yield bonds, let's define what a bond is. A bond is an interest-bearing investment that obliges the borrower to pay a specific amount of interest for a specific period of time and then at maturity to repay the investor the original amount of the loan. High yield bonds are bonds issued by corporations. These companies pay interest rates higher than those of top quality government or corporate bonds to attract investors. Corporate assets back the bonds; incase of default, the bondholders have a legal claim on those assets.
High yield bonds can offer many advantages:
During the previous five years, high yield bonds have generated superior returns compared to more conservative bond funds. However, these returns are less than those of some aggressive equity funds. Investors should invest a portion of their portfolio in this investment category to reduce their risk and increase their income and return potential.
High yield bonds play an important role in a well-diversified mutual fund portfolio for both the conservative and aggressive investors. This sector will still incur risk; but the worst downside risk displayed by this investment category was a loss of 8 percent. Investors who want to capitalize on the opportunities of high yield bonds could consider several mutual funds.
View the original article here
High yield bonds can offer many advantages:
- As the name implies, high yield bonds frequently have higher yields. They can be called (redeemed) earlier, which is one reason investors receive higher interest payments. In general these bonds have shorter maturities. Downturns in this investment category have not been as dramatic as in other investment categories.
- High yield bonds have become a large global market and lack of liquidity is not a huge concern.
- High yield bonds are not perfectly correlated with other investment categories.
- High yield bonds have to earn higher returns in order to compensate investors for higher risk. High yield bonds tend to combine the higher returns associated with equities and the lower risk associated with bonds.
- These bonds will fluctuate based on more than just the direction of interest rates; they will also increase or decrease in value as the issuing company improves its financial performance.
During the previous five years, high yield bonds have generated superior returns compared to more conservative bond funds. However, these returns are less than those of some aggressive equity funds. Investors should invest a portion of their portfolio in this investment category to reduce their risk and increase their income and return potential.
High yield bonds play an important role in a well-diversified mutual fund portfolio for both the conservative and aggressive investors. This sector will still incur risk; but the worst downside risk displayed by this investment category was a loss of 8 percent. Investors who want to capitalize on the opportunities of high yield bonds could consider several mutual funds.
View the original article here
Sunday, February 13, 2011
Developing Of Construction Bond Posted By : Ron Victor
Construction bond is a form of surety bond which is a mandatory for financial investors for large construction and federal construction projects. The principal has given the written statement that he will complete the entire contract according to the norms. He will complete the contract at no additional cost, in case the contractor fails to perform his obligation. Since construction bond is a risk management bond, it is not guaranteed that it will complete the construction projects. This bond will protect interest of the individual and other structure that the construction has been taken place as per contract.
Generally construction contractors are well known with the concept of securing surety bonds, but they do not know that they will create a relationship between the principal, the obligee, the surety.constrution lawyers, are aware of the legal rules and act of the principal, obligee, and surety, but they are not aware of knowledge of obtaining bonds. This article directs both contractors and lawyers.
A construction surety bond is a written statement that the contractor will perform his obligation as per bond. It guarantee that the principal will perform his obligation .if he fails the contract becomes void and he will sued in the court for further actions.constrution bond is otherwise called "condition bond". If the principal fails to perform his obligation, both the principal and the surety will be asked to pay penalty amount.constrution surety bond are of different types like bid bond, performance bond, payment bond.
Bid bond:
A bid bond is a written statement which guarantees to the obligee that the principal will offer his bid, as awarded in the contract. In this type of bid, both principal and the surety are sued, in failure of their contract. They have to pay the additional expenses incurred by the obligee for breaking of contract. The penalty amount will be ten to twenty percent of the contract. If the principal refuses to bid the surety has to undergone the risk.
Performance bond:
This bond guarantees the obligee that the contractor will finish his contract as per terms and condition relating to time and price. The obligee is the owner of the contract and he may sue the principal and the surety, in failure of the contract. If the principal fails, he may ask the surety to perform or complete the contract. The surety has his choices of completing the contract, either with his own construction contractor or selecting another contractor to complete the contract or paying the additional cost to the owner, to complete his contract. The penalty amount paid by the principal and the surety will be amount of construction contract. If the surety himself constructs the contract with his own contractor then the penalty amount will be nullified. Here the surety has to take the full risk of constructing the contract without loss of time and money of the obligee, I.e the owner. Performance bond usually protect the interest of the owner against any fraud or misrepresentation.
Payment bond: In this type of bid, the obligee i.e the owner will give a written statement to the principal that he/she will pay the contract amount has mentioned in the bond without fail. This bond protect the principal against risk, incase of failure of the contract by the owner. It also ensures that the subcontractor and the suppliers also act as per contract. Incase of failure of contract the principal may sue against the obligee or he may Break the contract.
Supply bond:
It is a bond created between the principal and the suppliers or subcontractors, that they will supply the material or completes the contract with in stated period as mentioned in the contract. It protects the principal against loss of time and value.
Construction bond has its merits and demerit.
Merit of construction bond:
Demerits of construction bond:
Construction bond ensures proper completion of contract with in stated period. Thus construction bond protect, both the principal and the obligee.Here the full risk as been undergone by the surety. Incase if failure on both the side he has take the risk
View the original article here
Generally construction contractors are well known with the concept of securing surety bonds, but they do not know that they will create a relationship between the principal, the obligee, the surety.constrution lawyers, are aware of the legal rules and act of the principal, obligee, and surety, but they are not aware of knowledge of obtaining bonds. This article directs both contractors and lawyers.
A construction surety bond is a written statement that the contractor will perform his obligation as per bond. It guarantee that the principal will perform his obligation .if he fails the contract becomes void and he will sued in the court for further actions.constrution bond is otherwise called "condition bond". If the principal fails to perform his obligation, both the principal and the surety will be asked to pay penalty amount.constrution surety bond are of different types like bid bond, performance bond, payment bond.
Bid bond:
A bid bond is a written statement which guarantees to the obligee that the principal will offer his bid, as awarded in the contract. In this type of bid, both principal and the surety are sued, in failure of their contract. They have to pay the additional expenses incurred by the obligee for breaking of contract. The penalty amount will be ten to twenty percent of the contract. If the principal refuses to bid the surety has to undergone the risk.
Performance bond:
This bond guarantees the obligee that the contractor will finish his contract as per terms and condition relating to time and price. The obligee is the owner of the contract and he may sue the principal and the surety, in failure of the contract. If the principal fails, he may ask the surety to perform or complete the contract. The surety has his choices of completing the contract, either with his own construction contractor or selecting another contractor to complete the contract or paying the additional cost to the owner, to complete his contract. The penalty amount paid by the principal and the surety will be amount of construction contract. If the surety himself constructs the contract with his own contractor then the penalty amount will be nullified. Here the surety has to take the full risk of constructing the contract without loss of time and money of the obligee, I.e the owner. Performance bond usually protect the interest of the owner against any fraud or misrepresentation.
Payment bond: In this type of bid, the obligee i.e the owner will give a written statement to the principal that he/she will pay the contract amount has mentioned in the bond without fail. This bond protect the principal against risk, incase of failure of the contract by the owner. It also ensures that the subcontractor and the suppliers also act as per contract. Incase of failure of contract the principal may sue against the obligee or he may Break the contract.
Supply bond:
It is a bond created between the principal and the suppliers or subcontractors, that they will supply the material or completes the contract with in stated period as mentioned in the contract. It protects the principal against loss of time and value.
Construction bond has its merits and demerit.
Merit of construction bond:
- It ensures the obligee that the contract will be completed within stated period.
- The principal ensures that he will finish the contract as per norms.
- It improves the reputation of the constructor or the contractor.
- It improves the quality and quantity of work
Demerits of construction bond:
- If contractor fail, the accountability of completing the contract, belongs to the surety.
- Once contract has been signed, then no one can break the contract, though the contract not taken place under legal procedure.
Construction bond ensures proper completion of contract with in stated period. Thus construction bond protect, both the principal and the obligee.Here the full risk as been undergone by the surety. Incase if failure on both the side he has take the risk
View the original article here
Saturday, February 12, 2011
Surety Bonds and The Rise of Bad Credit Programs Posted By : T Bryant
As the calendars rolled from the 20th to the 21st century the surety bond industry as a whole experienced some large scale changes. It was after several years of record breaking losses that forced many bonding companies to close down operations. Those sureties that were able to survive the soft market of the early millennium had some major changes to make. After a thorough review of their underwriting guidelines the industry shifted to become a much more conservative, leaving many applicants without the good credit unable to be bonded.
The fact of the matter is that many Americans do not have perfect credit, or anywhere near for that matter. One study (http://www.nationalscoreindex.com/ScoreNews_Archive_03.aspx) by Experian shows that the credit of an average American is 683. With a bond market that generally looks for a credit score of 650 or better, a large amount of the market was considered "un-bondable". Typically those with sub-par credit score would have to get an Irrevocable Letter of Credit from the bank, or obtain a bond by posting 100% collateral.
After a short a period of time where this was the norm, bad credit surety bond programs (http://www.bryantsuretybonds.com/bad_credit.htm) started to emerge. These programs were an alternative for those with bad credit that went against traditional suretyship. In these programs the surety would write for high risk commercial (sorry, this programs do not apply to contract bonds), but at much higher rates then typical bonds. Though this solution may have seamed very obvious to many, it should be noted that traditional surety underwriting is done with a 0% loss ratio. What this means is that unlike insurance, which many people mistake surety bonds for, there is no loss built into the premium of the bonds, hence only the best applicants traditionally are accepted.
The bonding companies that accept high risk applicants today are very few, though slowly new companies arise that are willing to write applicants using an insurance based philosophy. This increase in competition for the high risk market is good for the principle, as this competition has made rates more reasonable (slightly) and lowered certain requirements such as cash collateral, while adding new classes of business that are accepted as high risk.
So where does the future lie? This is perhaps the impossible question since very few would have predicted these High Risk Bonds from ever happening. Though many applicants may hope for lower rate, this does not appear to be in the cards as explained above in the 0% loss ratio mentality. The Bond market is very clear, it is separated into two camps, you are either in the standard market, or you are high risk. One thing that may occur in the future with increased competition is a scale of the high risk market. Perhaps those applicants with a history of a few collections may receive rates in the 8% -10% ranges, instead of just being lumped with applicants that have bankruptcies on their credit history.
The past few years have brought the bonds world into the high risk market. Through this time subtle changes have occurred to make the process easier on the applicants (no collateral-high risk). Eventually underwriters should start to define a cloudy area for middle ground rates for applicants that have poor credit sue to more minor infractions.
View the original article here
The fact of the matter is that many Americans do not have perfect credit, or anywhere near for that matter. One study (http://www.nationalscoreindex.com/ScoreNews_Archive_03.aspx) by Experian shows that the credit of an average American is 683. With a bond market that generally looks for a credit score of 650 or better, a large amount of the market was considered "un-bondable". Typically those with sub-par credit score would have to get an Irrevocable Letter of Credit from the bank, or obtain a bond by posting 100% collateral.
After a short a period of time where this was the norm, bad credit surety bond programs (http://www.bryantsuretybonds.com/bad_credit.htm) started to emerge. These programs were an alternative for those with bad credit that went against traditional suretyship. In these programs the surety would write for high risk commercial (sorry, this programs do not apply to contract bonds), but at much higher rates then typical bonds. Though this solution may have seamed very obvious to many, it should be noted that traditional surety underwriting is done with a 0% loss ratio. What this means is that unlike insurance, which many people mistake surety bonds for, there is no loss built into the premium of the bonds, hence only the best applicants traditionally are accepted.
The bonding companies that accept high risk applicants today are very few, though slowly new companies arise that are willing to write applicants using an insurance based philosophy. This increase in competition for the high risk market is good for the principle, as this competition has made rates more reasonable (slightly) and lowered certain requirements such as cash collateral, while adding new classes of business that are accepted as high risk.
So where does the future lie? This is perhaps the impossible question since very few would have predicted these High Risk Bonds from ever happening. Though many applicants may hope for lower rate, this does not appear to be in the cards as explained above in the 0% loss ratio mentality. The Bond market is very clear, it is separated into two camps, you are either in the standard market, or you are high risk. One thing that may occur in the future with increased competition is a scale of the high risk market. Perhaps those applicants with a history of a few collections may receive rates in the 8% -10% ranges, instead of just being lumped with applicants that have bankruptcies on their credit history.
The past few years have brought the bonds world into the high risk market. Through this time subtle changes have occurred to make the process easier on the applicants (no collateral-high risk). Eventually underwriters should start to define a cloudy area for middle ground rates for applicants that have poor credit sue to more minor infractions.
View the original article here
Friday, February 11, 2011
More on Surety Bonds Posted By : Jacob Chris
Surety bonds assure project owners that contractors would carry out the work and pay subcontractors, laborers, and material suppliers in agreement with the contract documents. There are basically three types of contract surety bonds:
These bonds are issued on the basis of careful analysis and evaluation of the contractor's ability and willingness to execute both operationally and economically. The use of these surety bonds on private construction projects is at the owner's discretion. Alternatives to this include letters of credit and self-insurance, but these options do not provide full performance and payment protection. So, many private owners need surety bonds from their contractors to guard their company and shareholders from the charge of contractor failure. To bond a project, the owner just specifies the bonding requirements in the bond documents. To obtain bonds and deliver them to the owner is the responsibility of the contractor, who consults a surety bond producer. Subcontractors may also be necessary to obtain surety bonds to aid the prime contractor handle risk, particularly if the subcontractor is responsible for a important part of the job or provide a specialty that is difficult to replace.
Sureties need to be sure. Most surety companies are subsidiaries of insurance companies, and both surety bonds and traditional insurance policies are risk-transfer mechanism regulated by state insurance department. However, both operate on different business models. Traditional insurance is intended to compensate the insured against unforeseen or adverse events, so the policy premium is determined by projecting the expected losses and enough premiums earned to wrap the losses and earn a satisfactory return. In contrast, the surety bond prequalifies the contractor by evaluating the contractor's monetary strength and construction capability.
In theory, the surety underwrites the supplier with no hope of loss, so the premium is above all a fee for the surety's complete prequalification services.
The prequalification procedure is an in-depth look at the contractor's commercial operations. Before issuing a bond, the surety company satisfies itself that, amid other criteria, the contractor has:
In abstract, the surety examines a supplier the way the banker does. prior to issuing a bond or extending credit, both the bonding company and the business lender should be satisfied that the contractor runs a profitable enterprise, deals fairly, and meets obligation on time--as agreed and in full.
View the original article here
- The bid bond assure that the bid has been submitted in faith and the contractor will enter into the contract at the price bid and provide required performance and payment bonds.
- The performance bond which protects the owner from any financial loss if the contractor fails to carry out and meet the conditions of the contract.
- The payment bond assures that the contractor would pay its subcontractors, laborers, and suppliers for the job.
These bonds are issued on the basis of careful analysis and evaluation of the contractor's ability and willingness to execute both operationally and economically. The use of these surety bonds on private construction projects is at the owner's discretion. Alternatives to this include letters of credit and self-insurance, but these options do not provide full performance and payment protection. So, many private owners need surety bonds from their contractors to guard their company and shareholders from the charge of contractor failure. To bond a project, the owner just specifies the bonding requirements in the bond documents. To obtain bonds and deliver them to the owner is the responsibility of the contractor, who consults a surety bond producer. Subcontractors may also be necessary to obtain surety bonds to aid the prime contractor handle risk, particularly if the subcontractor is responsible for a important part of the job or provide a specialty that is difficult to replace.
Sureties need to be sure. Most surety companies are subsidiaries of insurance companies, and both surety bonds and traditional insurance policies are risk-transfer mechanism regulated by state insurance department. However, both operate on different business models. Traditional insurance is intended to compensate the insured against unforeseen or adverse events, so the policy premium is determined by projecting the expected losses and enough premiums earned to wrap the losses and earn a satisfactory return. In contrast, the surety bond prequalifies the contractor by evaluating the contractor's monetary strength and construction capability.
In theory, the surety underwrites the supplier with no hope of loss, so the premium is above all a fee for the surety's complete prequalification services.
The prequalification procedure is an in-depth look at the contractor's commercial operations. Before issuing a bond, the surety company satisfies itself that, amid other criteria, the contractor has:
- Good reference and reputation.
- The capability to meet current and future obligations.
- Experience that match the contract requirements.
- The needed equipment to do the work or the ability to obtain it.
- The monetary strength to carry and support its share of the project work.
- An brilliant credit history.
- A trustworthy bank relationship and the line of credit.
In abstract, the surety examines a supplier the way the banker does. prior to issuing a bond or extending credit, both the bonding company and the business lender should be satisfied that the contractor runs a profitable enterprise, deals fairly, and meets obligation on time--as agreed and in full.
View the original article here
Thursday, February 10, 2011
The Bond Market and How You Can Benefit
In the investment world, there are two words we hear more than any others-stocks and bonds. While each can offer their own advantages and disadvantages, both should be included in your portfolio. As a general rule, stocks have outperformed bonds since 1926; returning 10.4 percent against government bonds' 5.4 percent showing.
However, when stocks go bad-and they will-bonds will always be there for you. Over short periods of time (like the bear market of 2000 to 2002) bonds easily outpaced the growth of stocks. However the world of bonds can be a confusing one, so let's learn a little more about them.
Why to get fond of bonds
The first word in smart investing is "diversification". That means you own a good mix of volatile stocks and steady bonds in your portfolio. When one takes a hit, the other will usually hold steady.
Whereas stocks will only give you liquid results when you sell, bonds pay interest regularly, making them an attractive investment choice for retirees looking for regular income.
Bonds are also some of the some of the safest investment choices you can make, second only to cash. U.S. Treasuries offer a risk-free vehicle of stashing funds for a limited amount of time, and you'll usually see modest gains while you're at it.
Also, many bonds provide income that's tax-free. That's a good thing, even though most of these pay a lower yield than what you might get from taxable bonds.
Bonds at work
When you purchase a bond, you're basically lending money to a corporation or the government so they can go about their everyday business or complete certain projects. In return, they pay you interest annually and then give back what you've invested once the bond "matures", meaning its term ends.
Now for a little lingo. A bond's "par value" is the price paid for it when it was new. A "coupon", is what the bond pays annually in interest. For example, a $10,000 bond paying 8 percent a year would have a coupon of $800. If you don't buy a bond new, you'll be purchasing from another person in the "secondary" market, and you'll pay the current market price on the bond (which fluctuates daily) though still receiving the same coupon. A bond's "total return" is all the money you will earn off of the bond. That includes the annual interest along with its loss or gain in the market.
Bountiful Bonds
There are a ton of bonds to choose from, but the safest choice is a U.S. Treasury. Interest and payments on these are guaranteed by the "full faith and credit" of the United States Government.
Within Treasuries, there are several bonds to choose from, all requiring different investment commitments, terms, and interest rates.
You can also choose from mortgage-backed bonds, which can yield around 1 percent more than Treasury bonds with a typical $25,000 investment. Then there are corporate bonds. Most of these are issued in $1,000 denominations and have terms ranging form one to 20 years, or even a few weeks to 100 years. The values of corporate bonds depend on the credit of the company you're bonding. Like everything else, it's a risk-reward proposition when selecting a corporate bond.
Finally, you can also purchase municipal bonds in state and local governments and agencies. These are usually available in denominations starting at $5,000, with terms of 30 to 40 years. The great thing about municipal bonds is that your interest returns are typically exempt from most federal, state, and local taxes.
Risk-Reward
Though bonds are typically less volatile than stocks, there are still risks. Interest payments can be worn by inflation. If interest rates rise, bond prices will fall. Also, some bond issuers reserve the right to "call" back bonds before term. If this happens, you'll only get "par value" on the buy back, though "callable" bonds offer higher interest returns than noncallable bonds. Also, if a corporation you have bonded goes belly-up, say goodbye to your money. Finally, bonds, as with most investments, are at the mercy of the ups and downs of the everyday market. Just remember, the longer before your bond matures, the more unpredictable it becomes.
View the original article here
However, when stocks go bad-and they will-bonds will always be there for you. Over short periods of time (like the bear market of 2000 to 2002) bonds easily outpaced the growth of stocks. However the world of bonds can be a confusing one, so let's learn a little more about them.
Why to get fond of bonds
The first word in smart investing is "diversification". That means you own a good mix of volatile stocks and steady bonds in your portfolio. When one takes a hit, the other will usually hold steady.
Whereas stocks will only give you liquid results when you sell, bonds pay interest regularly, making them an attractive investment choice for retirees looking for regular income.
Bonds are also some of the some of the safest investment choices you can make, second only to cash. U.S. Treasuries offer a risk-free vehicle of stashing funds for a limited amount of time, and you'll usually see modest gains while you're at it.
Also, many bonds provide income that's tax-free. That's a good thing, even though most of these pay a lower yield than what you might get from taxable bonds.
Bonds at work
When you purchase a bond, you're basically lending money to a corporation or the government so they can go about their everyday business or complete certain projects. In return, they pay you interest annually and then give back what you've invested once the bond "matures", meaning its term ends.
Now for a little lingo. A bond's "par value" is the price paid for it when it was new. A "coupon", is what the bond pays annually in interest. For example, a $10,000 bond paying 8 percent a year would have a coupon of $800. If you don't buy a bond new, you'll be purchasing from another person in the "secondary" market, and you'll pay the current market price on the bond (which fluctuates daily) though still receiving the same coupon. A bond's "total return" is all the money you will earn off of the bond. That includes the annual interest along with its loss or gain in the market.
Bountiful Bonds
There are a ton of bonds to choose from, but the safest choice is a U.S. Treasury. Interest and payments on these are guaranteed by the "full faith and credit" of the United States Government.
Within Treasuries, there are several bonds to choose from, all requiring different investment commitments, terms, and interest rates.
You can also choose from mortgage-backed bonds, which can yield around 1 percent more than Treasury bonds with a typical $25,000 investment. Then there are corporate bonds. Most of these are issued in $1,000 denominations and have terms ranging form one to 20 years, or even a few weeks to 100 years. The values of corporate bonds depend on the credit of the company you're bonding. Like everything else, it's a risk-reward proposition when selecting a corporate bond.
Finally, you can also purchase municipal bonds in state and local governments and agencies. These are usually available in denominations starting at $5,000, with terms of 30 to 40 years. The great thing about municipal bonds is that your interest returns are typically exempt from most federal, state, and local taxes.
Risk-Reward
Though bonds are typically less volatile than stocks, there are still risks. Interest payments can be worn by inflation. If interest rates rise, bond prices will fall. Also, some bond issuers reserve the right to "call" back bonds before term. If this happens, you'll only get "par value" on the buy back, though "callable" bonds offer higher interest returns than noncallable bonds. Also, if a corporation you have bonded goes belly-up, say goodbye to your money. Finally, bonds, as with most investments, are at the mercy of the ups and downs of the everyday market. Just remember, the longer before your bond matures, the more unpredictable it becomes.
View the original article here
Wednesday, February 9, 2011
Bonds: When and When Not to Buy Posted By : Ronald Groenke
Bonds are issued with a fixed, stated interest rate which determines the semiannual interest payment to the bond holder. Those fixed interest payments, payable until the maturity date of the bonds, are constantly valued by the market relative to alternative investments to gain the same income stream.
Since the interest payments do not change, the weight of the valuation is reflected in the market value of the bond. If interest rates in general go up, an investor can have the same income stream with a smaller investment. Thus the value of the bonds goes down. Conversely, if interest rates in general go down, an investor would have to invest more to obtain the same income stream. In that case, the value of the bonds goes up.
So a bond's price will fluctuate with the financial market interest rates. Many factors affect the market interest rate, such as the world wide demand for capital and the willingness of major governments to inflate their money supply. Probably the primary factor is the action taken by the Federal Reserve as it sets the Federal Reserve Funds Rate. If the Fed Funds interest rate goes up, bond prices will go down. It is like a playground seesaw with bonds on one end and interest rates on the other. If interest rates go up the price goes down and vice versa.
We can use this information to determine the best time to buy bonds. Will the Federal Reserve continue raising interest rates or will they decrease interest rates? As of the beginning of the fourth quarter in 2006, the consensus seems to be that the Federal Reserve is done raising rates. If the economy slows down too much, the next action would be for the Federal Reserve to reduce rates which would cause bonds to gain in value. The time to buy bonds is when interest rates have peaked.
Longer term bonds usually have a higher interest rate than shorter term bonds due to the greater uncertainty associated with a longer time frame. If this is not true, you have what is called an "inverted yield curve," which in the past has forecasted a recession. The near term negative aspect of a recession out weighs the risk of the longer time frame.
My appraisal of the bond market at this time leads me to believe that short and intermediate term bonds are attractive.
Never, NEVER, buy tax free municipal bonds in a retirement account. That would be like throwing out the baby with the bath water. The earnings in a retirement account do not incur current taxes. So you want the highest return compatible with your risk tolerance. Only hold tax free bonds in a taxable account. For retirement accounts that are tax deferred, higher yielding taxable bonds are the best choice.
Percentage of bonds holdings in any account should be based on the age of the account holder. The closer one is to retirement, the more bonds one should hold. In retirement a typical mix is 30% equities and 70% bonds.
If the return from bonds in retirement is not sufficient to maintain a steady income then one could augment the income stream with covered calls on the equity portion of the portfolio. Covered calls can return an additional 12 to 15 percent. You can learn more about covered calls from the Options Industry Council
View the original article here
Since the interest payments do not change, the weight of the valuation is reflected in the market value of the bond. If interest rates in general go up, an investor can have the same income stream with a smaller investment. Thus the value of the bonds goes down. Conversely, if interest rates in general go down, an investor would have to invest more to obtain the same income stream. In that case, the value of the bonds goes up.
So a bond's price will fluctuate with the financial market interest rates. Many factors affect the market interest rate, such as the world wide demand for capital and the willingness of major governments to inflate their money supply. Probably the primary factor is the action taken by the Federal Reserve as it sets the Federal Reserve Funds Rate. If the Fed Funds interest rate goes up, bond prices will go down. It is like a playground seesaw with bonds on one end and interest rates on the other. If interest rates go up the price goes down and vice versa.
We can use this information to determine the best time to buy bonds. Will the Federal Reserve continue raising interest rates or will they decrease interest rates? As of the beginning of the fourth quarter in 2006, the consensus seems to be that the Federal Reserve is done raising rates. If the economy slows down too much, the next action would be for the Federal Reserve to reduce rates which would cause bonds to gain in value. The time to buy bonds is when interest rates have peaked.
Longer term bonds usually have a higher interest rate than shorter term bonds due to the greater uncertainty associated with a longer time frame. If this is not true, you have what is called an "inverted yield curve," which in the past has forecasted a recession. The near term negative aspect of a recession out weighs the risk of the longer time frame.
My appraisal of the bond market at this time leads me to believe that short and intermediate term bonds are attractive.
Never, NEVER, buy tax free municipal bonds in a retirement account. That would be like throwing out the baby with the bath water. The earnings in a retirement account do not incur current taxes. So you want the highest return compatible with your risk tolerance. Only hold tax free bonds in a taxable account. For retirement accounts that are tax deferred, higher yielding taxable bonds are the best choice.
Percentage of bonds holdings in any account should be based on the age of the account holder. The closer one is to retirement, the more bonds one should hold. In retirement a typical mix is 30% equities and 70% bonds.
If the return from bonds in retirement is not sufficient to maintain a steady income then one could augment the income stream with covered calls on the equity portion of the portfolio. Covered calls can return an additional 12 to 15 percent. You can learn more about covered calls from the Options Industry Council
View the original article here
Tuesday, February 8, 2011
Surety Bonding In Today's Construction Market Posted By : Ron Victor
Varying market conditions have led to many changes and adaptations in the surety market. This article updates all the bankers and lenders on the existing situation as well as trends within that gathering of financial organizations writing bonds for the sake of construction industry. In accordance with the contract documents surety bonds swear project owners that contractors will execute the work and also pay precise subcontractors, laborers, and materials suppliers. Three basic types of contract surety bonds are:
The use of surety bonds on private construction projects is at the owner's judgment. Alternatives to bonding embrace letters of credit along with self-insurance, but these options neither offer 100% performance and payment protection, nor ensure a competent contractor. In case if a project should be bonded, the owner should specify the bonding requirements in the contract documents. Subcontractors may be required for acquiring surety bonds to help out the prime contractor manage risk, especially if the subcontractor is responsible for a momentous part of the job or provides a specialty that is very complicated to restore.
Sureties always need to be sure. Most of the surety companies are subsidiaries or divisions of insurance companies, but both surety bonds and traditional insurance policies will create risk-transfer mechanisms synchronized by state insurance departments. Performance as well as payment bonds typically are priced based on the value of the contract being bonded, but not on the size of the bond. If the contract amount is altered, the premium will also get adjusted according to the change in the contract price. Fortunately, survival continues to be a vital instinct for the contract surety industry. So the strong economy has kept contractors busy and so the failures become less automatically. However, the profitable bonding business attracted new entrants into surety, and surfeit capacity being accumulated in the surety market. And as competition for bonding got intensified, bond premiums declined.
Premiums
Rise in surety bond premium may have leveled off-or not, based upon the number of factors. As the market gets tightened, surety companies have also boosted their pricing structures accordingly for wrapping up all the increased losses and the increased cost of reinsurance, personnel, and other costs of doing business. Finally, after a brief period of readjustment, surety bond premiums are now becoming more realistic for the value provided.
Weigh the Risks
Both surety and banker industries have underwrite risk to contractors, and both have enjoyed the good-time profits of the cycle's expansion phase and also suffered many losses during its contraction phase. Bankers should pay all its attention to the surety industry only because of its capability and eagerness for replacing risk that has a complementary collision on financial institutions. The less construction risk the bonding company underwrites, the more risk the lender must consider, so both the surety and the banker need to assess as well as monitor their combined risk appetites for the construction industry.
Claims
At this point sureties are facing numerous frequencies of claims comparing to severity of losses in the recovery phase of the business cycle, even though there is a rise in the severity and frequency of claims that depends largely on regional conditions. The general consensus is that, by the end of year 2005, losses will have worked all their way throughout the system and bond exposures will be only on projects underwritten by today's more stringent standards, so loss ratios are predictable in improving than previous days.
View the original article here
- The bid bond assures that the bid has been proposed in good faith and the contractor will get into the contract at the price bid and provides the requisite performance and payment bonds.
- If the contractor fails to carry out or failed to meet the terms and conditions of the contract, performance bond protects the owner from financial loss.
- The payment bond guarantees that the contractor will pay all of its subcontractors, laborers, and suppliers needed for the project.
The use of surety bonds on private construction projects is at the owner's judgment. Alternatives to bonding embrace letters of credit along with self-insurance, but these options neither offer 100% performance and payment protection, nor ensure a competent contractor. In case if a project should be bonded, the owner should specify the bonding requirements in the contract documents. Subcontractors may be required for acquiring surety bonds to help out the prime contractor manage risk, especially if the subcontractor is responsible for a momentous part of the job or provides a specialty that is very complicated to restore.
Sureties always need to be sure. Most of the surety companies are subsidiaries or divisions of insurance companies, but both surety bonds and traditional insurance policies will create risk-transfer mechanisms synchronized by state insurance departments. Performance as well as payment bonds typically are priced based on the value of the contract being bonded, but not on the size of the bond. If the contract amount is altered, the premium will also get adjusted according to the change in the contract price. Fortunately, survival continues to be a vital instinct for the contract surety industry. So the strong economy has kept contractors busy and so the failures become less automatically. However, the profitable bonding business attracted new entrants into surety, and surfeit capacity being accumulated in the surety market. And as competition for bonding got intensified, bond premiums declined.
Premiums
Rise in surety bond premium may have leveled off-or not, based upon the number of factors. As the market gets tightened, surety companies have also boosted their pricing structures accordingly for wrapping up all the increased losses and the increased cost of reinsurance, personnel, and other costs of doing business. Finally, after a brief period of readjustment, surety bond premiums are now becoming more realistic for the value provided.
Weigh the Risks
Both surety and banker industries have underwrite risk to contractors, and both have enjoyed the good-time profits of the cycle's expansion phase and also suffered many losses during its contraction phase. Bankers should pay all its attention to the surety industry only because of its capability and eagerness for replacing risk that has a complementary collision on financial institutions. The less construction risk the bonding company underwrites, the more risk the lender must consider, so both the surety and the banker need to assess as well as monitor their combined risk appetites for the construction industry.
Claims
At this point sureties are facing numerous frequencies of claims comparing to severity of losses in the recovery phase of the business cycle, even though there is a rise in the severity and frequency of claims that depends largely on regional conditions. The general consensus is that, by the end of year 2005, losses will have worked all their way throughout the system and bond exposures will be only on projects underwritten by today's more stringent standards, so loss ratios are predictable in improving than previous days.
View the original article here
Monday, February 7, 2011
Surety Bond Benefits Posted By : Ron Victor
Bonds play a major role in today's market. Bonds become more essential in construction industry for completion of their construction projects. Underwriting bonds involve great risk. But the surety company will write these bonds for the benefit of their customers. If bonds have been underwritten, it has following benefits.
Contractor
A contractor is a person who undertakes the risk of completion of contract with in stipulated time and contract price. The contractor performs a contract for a price consideration. The contractor guarantees the owner that he will finish the contract with in stipulated time and contract value, through issuance of the bond.
In default of the contractor, the obligee will sue him against the court of law. This bond ensures the contractor has guaranteed performance of the contract.
Listed below are more articles related to the above article from the "Surety Bonds" article category.
People interested in the above article "Surety Bond Benefits" are also interested in the related articles listed below:
When negotiating or bidding a construction contract, a chief concern is whether the contractor is competent and capable of doing the given work. Does he have knowledge in the type and size work to be done? Is he financially strong to finance the work and pay his sub-contractors and suppliers? Where will the owner stand if problems arise?
Surety bonds assure project owners that contractors would carry out the work and pay subcontractors, laborers, and material suppliers in agreement with the contract documents. There are basically three types of contract surety bonds.Making the correct choice to manage risk on construction projects and selecting the most responsible option to guarantee timely project completion are vital to a successful project.
Bail bonds are a type of surety bonds, which are used to guarantee the entire bail amount if the charged party fails to uphold the terms of his or her release. A surety bail bonds man usually pays the court a huge blanket bond to check upon several clients, then charges every client 10 per cent of his or her sum bail amount as a cash guarantee.Contractor of any state is required to obtain contractor license bond from the state and federal government.
Contractor license bond is the kind of surety bond issued to the contractor to ensure his performance guaranteed and fulfills the obligation within the contract time and moneyMotor vehicle dealer surety bonds fetches good demand among the customer and large number of people started buying MVD bonds to protect them and to ensure confirmed obligation by the obligator i.e. dealer.Depending on what type of bond you are investing in, could make you earn a lot.
There are varieties of bonds available in the market such as Mortgage Broker Bonds, Surety Bonds, etc. Short term low return bonds are a safer way of investing your hard earned money, Companies and Government Issue bonds to meet their day to day operation.
View the original article here
- The obligee gets a guaranteed performance of the contract from the principal and the surety.
- These bonds enforce the contractor to complete the contract with in the stipulated time and contract money.
- This bond guarantees the payment from the obligee to the contractor and from the principal to the subcontractor.
- This bond ensures that the supplier will furnish the material and labor to the principal as signed in the contract.
- In default of the contract, the obligee can sue the principal i.e. the obligator and the also the surety.
- The obligee can enforce the surety to complete the contract with in the stipulated time and contract money in failure of the principal for completion.
- The underwriter of the surety company can provide financial, technical assistance to the contractor.
Contractor
A contractor is a person who undertakes the risk of completion of contract with in stipulated time and contract price. The contractor performs a contract for a price consideration. The contractor guarantees the owner that he will finish the contract with in stipulated time and contract value, through issuance of the bond.
In default of the contractor, the obligee will sue him against the court of law. This bond ensures the contractor has guaranteed performance of the contract.
Listed below are more articles related to the above article from the "Surety Bonds" article category.
People interested in the above article "Surety Bond Benefits" are also interested in the related articles listed below:
When negotiating or bidding a construction contract, a chief concern is whether the contractor is competent and capable of doing the given work. Does he have knowledge in the type and size work to be done? Is he financially strong to finance the work and pay his sub-contractors and suppliers? Where will the owner stand if problems arise?
Surety bonds assure project owners that contractors would carry out the work and pay subcontractors, laborers, and material suppliers in agreement with the contract documents. There are basically three types of contract surety bonds.Making the correct choice to manage risk on construction projects and selecting the most responsible option to guarantee timely project completion are vital to a successful project.
Bail bonds are a type of surety bonds, which are used to guarantee the entire bail amount if the charged party fails to uphold the terms of his or her release. A surety bail bonds man usually pays the court a huge blanket bond to check upon several clients, then charges every client 10 per cent of his or her sum bail amount as a cash guarantee.Contractor of any state is required to obtain contractor license bond from the state and federal government.
Contractor license bond is the kind of surety bond issued to the contractor to ensure his performance guaranteed and fulfills the obligation within the contract time and moneyMotor vehicle dealer surety bonds fetches good demand among the customer and large number of people started buying MVD bonds to protect them and to ensure confirmed obligation by the obligator i.e. dealer.Depending on what type of bond you are investing in, could make you earn a lot.
There are varieties of bonds available in the market such as Mortgage Broker Bonds, Surety Bonds, etc. Short term low return bonds are a safer way of investing your hard earned money, Companies and Government Issue bonds to meet their day to day operation.
View the original article here
Bonding Companies Contractor Criterion Posted By : Ron Victor
Bonding companies generally looks for the obligee financial position. This process has been reviewed when the owner wants to take bond from the surety company for more than $100,000. The surety should also have confidence in the bonding company. The bonding company should also give guarantee to the surety prior to his approval. The contractor has to follow many steps to gain confidence from the bonding company. He should be organized and practiced in a trusted manner.
The best way to run your company is to:
Surety underwriters should meet the contractors based on their profession. These Small and medium contractors has to be properly maintained by the underwriters. The underwriter has to see the cash flow statement of the contractor. The surety should make hold that the contractor will know the terms regarding his construction company. The surety should clarify whether the contractor knows every thing about the company.
The contractor must practice self-control while dealing in Construction Company. They should feel restraints regarding profits and while taking risk beyond their factor. The underwriter will not approve the bond twice the size of any previous bond work of a new company. If underwriter is not satisfied with the contract for any reason, they will unqualified the contract.
A contractor should consider that the above factors are essential while obtaining surety credit. Surety Underwriters must use the financial documents provided and personal credit to decide the risk on a particular account. A contractor with a team of well organized professionals helps to create a great deal of confidence in a surety's underwriters.
Listed below are more articles related to the above article from the "Surety Bonds" article category.
People interested in the above article "Bonding Companies Contractor Criterion" are also interested in the related articles listed below:
When negotiating or bidding a construction contract, a chief concern is whether the contractor is competent and capable of doing the given work. Does he have knowledge in the type and size work to be done? Is he financially strong to finance the work and pay his sub-contractors and suppliers? Where will the owner stand if problems arise?
Surety bonds assure project owners that contractors would carry out the work and pay subcontractors, laborers, and material suppliers in agreement with the contract documents. There are basically three types of contract surety bonds.Making the correct choice to manage risk on construction projects and selecting the most responsible option to guarantee timely project completion are vital to a successful project.
Bail bonds are a type of surety bonds, which are used to guarantee the entire bail amount if the charged party fails to uphold the terms of his or her release. A surety bail bonds man usually pays the court a huge blanket bond to check upon several clients, then charges every client 10 per cent of his or her sum bail amount as a cash guarantee.Contractor of any state is required to obtain contractor license bond from the state and federal government.
Contractor license bond is the kind of surety bond issued to the contractor to ensure his performance guaranteed and fulfills the obligation within the contract time and moneyMotor vehicle dealer surety bonds fetches good demand among the customer and large number of people started buying MVD bonds to protect them and to ensure confirmed obligation by the obligator i.e. dealer.Depending on what type of bond you are investing in, could make you earn a lot.
There are varieties of bonds available in the market such as Mortgage Broker Bonds, Surety Bonds, etc. Short term low return bonds are a safer way of investing your hard earned money, Companies and Government Issue bonds to meet their day to day operation.
View the original article here
The best way to run your company is to:
- Employ professionals, who assist while taking a decision for the bonding company. These employees will be much useful while involving in the process of decision making.
- Top priority should be given to the bond producers who are well versed regarding the contract.
- If the agent does not suit for your company's needs or does not fit for your company then you can change the professional who suits for you.
- The most important person needed for bonding company is an accountant. Accountants are those who reveal the financial position of your bonding company. Choose the right most accountants for your company.
- The other important point a bonding company should look at is a reliable banker. The banker is a person who helps you in financial aspect of your company.
- Bonding companies can make use of variety of professional for development of the company like legal adviser, good controller and marketer.
Surety underwriters should meet the contractors based on their profession. These Small and medium contractors has to be properly maintained by the underwriters. The underwriter has to see the cash flow statement of the contractor. The surety should make hold that the contractor will know the terms regarding his construction company. The surety should clarify whether the contractor knows every thing about the company.
The contractor must practice self-control while dealing in Construction Company. They should feel restraints regarding profits and while taking risk beyond their factor. The underwriter will not approve the bond twice the size of any previous bond work of a new company. If underwriter is not satisfied with the contract for any reason, they will unqualified the contract.
A contractor should consider that the above factors are essential while obtaining surety credit. Surety Underwriters must use the financial documents provided and personal credit to decide the risk on a particular account. A contractor with a team of well organized professionals helps to create a great deal of confidence in a surety's underwriters.
Listed below are more articles related to the above article from the "Surety Bonds" article category.
People interested in the above article "Bonding Companies Contractor Criterion" are also interested in the related articles listed below:
When negotiating or bidding a construction contract, a chief concern is whether the contractor is competent and capable of doing the given work. Does he have knowledge in the type and size work to be done? Is he financially strong to finance the work and pay his sub-contractors and suppliers? Where will the owner stand if problems arise?
Surety bonds assure project owners that contractors would carry out the work and pay subcontractors, laborers, and material suppliers in agreement with the contract documents. There are basically three types of contract surety bonds.Making the correct choice to manage risk on construction projects and selecting the most responsible option to guarantee timely project completion are vital to a successful project.
Bail bonds are a type of surety bonds, which are used to guarantee the entire bail amount if the charged party fails to uphold the terms of his or her release. A surety bail bonds man usually pays the court a huge blanket bond to check upon several clients, then charges every client 10 per cent of his or her sum bail amount as a cash guarantee.Contractor of any state is required to obtain contractor license bond from the state and federal government.
Contractor license bond is the kind of surety bond issued to the contractor to ensure his performance guaranteed and fulfills the obligation within the contract time and moneyMotor vehicle dealer surety bonds fetches good demand among the customer and large number of people started buying MVD bonds to protect them and to ensure confirmed obligation by the obligator i.e. dealer.Depending on what type of bond you are investing in, could make you earn a lot.
There are varieties of bonds available in the market such as Mortgage Broker Bonds, Surety Bonds, etc. Short term low return bonds are a safer way of investing your hard earned money, Companies and Government Issue bonds to meet their day to day operation.
View the original article here
Sunday, February 6, 2011
Real Estate Law
The new Federal Law may, at first, appear beneficial to those not familiar with the subjects of mortgage financing, real estate, appraisals or other services concerning the managing of real estate. Is it not the case that if you read it in print, in must be true?
Altering a variety of rules with the HERA ((Housing and Economic Recovery Act of 2008) and with the MDIA (Mortgage Disclosure Improvement Act), the most recent federal law was just passed and became law on July 30, 2009. Borrowers are given a Truth in Lending and Good Faith Estimate when applying for financing for a home loan, this document will be changed by the passing of the new laws.
Perhaps the only good thing to emerge from the new legislative scheme is the fact that home buyers are given a longer period in which to study the Truth in Lending disclosures and the Good Faith Estimate for their transaction. As is is common for borrowers to have little understanding of the actual terms of their home loan, including their interest rate, loan term, fixed or adjustable rate, and the like, the legislation does offer borrowers a full week to review their loan papers. Now I would not think of debating this. Mortgage paperwork is often very lengthy and complicated, with complex terms and conditions that even a lawyer would have trouble understanding!
You would have to wait at least 3 business days before you could close escrow on your new house, if the Annual Percentage Rate, or APR, changed by either up or down 1/8% during the period that you are waiting on your loan approval. If Title fees change this also triggers a change to these mortgage documents and the 3-business day process starts all over. If the buyer does not “lock” their interest rate this scenario could very well happen.
If the type of loan changes from “Fixed” and “Balloon”, “Fixed” and “ARM” ,the type of “ARM” (Interest to Amortized, 3/1 ARM to a 5/1 ARM) or a conventional loan with Mortgage Insurance and conventional loan without Mortgage Insurance, the waiting period starts all over.
It would seem that many of these rules are instituted on a whim. It makes one wonder if anyone had put any thought at all into how these new practices could impact the housing market.` “Time is of the Essence” always remained the most critical saying in real estate. Since most banks have taken over many homes on the market, this phrase has been totally abused.
What difference does another 3 to 7 business days make, when homes require 4 to 6 months or even longer to close escrow nowadays? But the interest rate lock is generally only 30 to 45 days and title fees change often, so the new federal laws could keep home ownership just out of reach and closing dates repeatedly retreating for even longer.
View the original article here
Altering a variety of rules with the HERA ((Housing and Economic Recovery Act of 2008) and with the MDIA (Mortgage Disclosure Improvement Act), the most recent federal law was just passed and became law on July 30, 2009. Borrowers are given a Truth in Lending and Good Faith Estimate when applying for financing for a home loan, this document will be changed by the passing of the new laws.
Perhaps the only good thing to emerge from the new legislative scheme is the fact that home buyers are given a longer period in which to study the Truth in Lending disclosures and the Good Faith Estimate for their transaction. As is is common for borrowers to have little understanding of the actual terms of their home loan, including their interest rate, loan term, fixed or adjustable rate, and the like, the legislation does offer borrowers a full week to review their loan papers. Now I would not think of debating this. Mortgage paperwork is often very lengthy and complicated, with complex terms and conditions that even a lawyer would have trouble understanding!
You would have to wait at least 3 business days before you could close escrow on your new house, if the Annual Percentage Rate, or APR, changed by either up or down 1/8% during the period that you are waiting on your loan approval. If Title fees change this also triggers a change to these mortgage documents and the 3-business day process starts all over. If the buyer does not “lock” their interest rate this scenario could very well happen.
If the type of loan changes from “Fixed” and “Balloon”, “Fixed” and “ARM” ,the type of “ARM” (Interest to Amortized, 3/1 ARM to a 5/1 ARM) or a conventional loan with Mortgage Insurance and conventional loan without Mortgage Insurance, the waiting period starts all over.
It would seem that many of these rules are instituted on a whim. It makes one wonder if anyone had put any thought at all into how these new practices could impact the housing market.` “Time is of the Essence” always remained the most critical saying in real estate. Since most banks have taken over many homes on the market, this phrase has been totally abused.
What difference does another 3 to 7 business days make, when homes require 4 to 6 months or even longer to close escrow nowadays? But the interest rate lock is generally only 30 to 45 days and title fees change often, so the new federal laws could keep home ownership just out of reach and closing dates repeatedly retreating for even longer.
View the original article here
Saturday, February 5, 2011
Be Mindful Of Potential Trading Scams
We decided to give this company a try out ahead of writing anything concerning them. There is a lot of unfavorable chit chat on the net about the dishonesty level of their Forex Signals service so we had to find for ourselves if it was true or not. Unfortunately, it’s all true. The performance figures they post, including all the trade details, are completely and absolutely diverse than what you would likely get. They are not even close. There is no denying it.
Whenever we mailed them concerning variance with the trades, they would swiftly answer “Oops, thanks we will fix this immediately” which would come from the CEO Mauro Sciaccaluga however nothing was ever repaired. When we asked to cancel our subscription and for a refund per their guarantee, there was no answer. Not really a large surprise. If the service is counterfeit, so would their money back guarantee. Hopefully no one is crazy enough to buy into their Life time membership offer. Lifetime offers are normally tip offs to scams.
Is there any way of acquiring our money back? No! Because Mauro uses for his transaction plimus which operates in a comparable fashion to paypal and because his product is a service, under their user agreement, they do not provide charge backs on services. If it had been a product, possibly we would have better luck.
An additional item in which we find is very suspicious is their connection with the forex broker AvaFX. Buy Forex Signals offers members a free subscription to their services when you open an account with at the very least $500 at AvaFX. Why is this suspect? AvaFX is a Dealing Desk Market Maker broker which indicates they take the other side of your trade. If you win, they lose. If you lose, they win. So it’s evident to say that much like a gambling establishment in Las Vegas, they desire you to lose and how else better to do so than with the use of the losing signals you will get from Buyforexsignals.com. When it comes to currency brokers in general, it would be smart to stay away from Dealing Desk Market Makers. They are comparable to online gambling sites that do not want you to win. They will do everything in their power to make trading difficult for you with stop loss hunting and re-quotes. And if you are able to defeat them and turn a profit in your account, chances are they will turn up the heat and make it even more tough until they can get you to blow out your account.
So what are the three lessons realized here? One, be extremely watchful when buying a Currency Signals program or any program for that matter using Plimus, paypal or any third party service as your method of payment. Your best bet is to only utilize your credit card directly as payment. If Paypal or Plimus is all that they make use of, then turn away. No one is that exclusive to where you ought to take on the threat of losing your cash.
Second, which is a lot more important and will outrank the 1st, never ever shell out for a trade predicting service regardless of whether it’s Forex, Stocks, Bonds, Futures or anything that is predictive unless they provide you with a FREE TRIAL. The trial ought to be for a minimum of 2 weeks. If they do not offer you a trial, run like heck because odds are that they have nothing at all good to provide and they are banking on you buying into their seductive pledges of big earnings for a Month, Quarter or a Jackpot (to them) One Year subscription. For frauds such as these, it’s not necessarily about renewals; it is about creating that one particular sale. A sale that is nothing more than a rip-off to take your money.
And finally the third lesson; be leery of Dealing Desk/Market Maker Fx Brokers. Their business model is constructed to profit through your losses. That is not a broker you need or must be undertaking business with, particularly when they partner with sketchy organizations that do practically nothing but provide you with losing trades.
Day Trading scams is a blog devoted to discovering the unkown about people and companies such as ifundtraders. Visit today to read informative articles about ifundtraders.com.
View the original article here
Whenever we mailed them concerning variance with the trades, they would swiftly answer “Oops, thanks we will fix this immediately” which would come from the CEO Mauro Sciaccaluga however nothing was ever repaired. When we asked to cancel our subscription and for a refund per their guarantee, there was no answer. Not really a large surprise. If the service is counterfeit, so would their money back guarantee. Hopefully no one is crazy enough to buy into their Life time membership offer. Lifetime offers are normally tip offs to scams.
Is there any way of acquiring our money back? No! Because Mauro uses for his transaction plimus which operates in a comparable fashion to paypal and because his product is a service, under their user agreement, they do not provide charge backs on services. If it had been a product, possibly we would have better luck.
An additional item in which we find is very suspicious is their connection with the forex broker AvaFX. Buy Forex Signals offers members a free subscription to their services when you open an account with at the very least $500 at AvaFX. Why is this suspect? AvaFX is a Dealing Desk Market Maker broker which indicates they take the other side of your trade. If you win, they lose. If you lose, they win. So it’s evident to say that much like a gambling establishment in Las Vegas, they desire you to lose and how else better to do so than with the use of the losing signals you will get from Buyforexsignals.com. When it comes to currency brokers in general, it would be smart to stay away from Dealing Desk Market Makers. They are comparable to online gambling sites that do not want you to win. They will do everything in their power to make trading difficult for you with stop loss hunting and re-quotes. And if you are able to defeat them and turn a profit in your account, chances are they will turn up the heat and make it even more tough until they can get you to blow out your account.
So what are the three lessons realized here? One, be extremely watchful when buying a Currency Signals program or any program for that matter using Plimus, paypal or any third party service as your method of payment. Your best bet is to only utilize your credit card directly as payment. If Paypal or Plimus is all that they make use of, then turn away. No one is that exclusive to where you ought to take on the threat of losing your cash.
Second, which is a lot more important and will outrank the 1st, never ever shell out for a trade predicting service regardless of whether it’s Forex, Stocks, Bonds, Futures or anything that is predictive unless they provide you with a FREE TRIAL. The trial ought to be for a minimum of 2 weeks. If they do not offer you a trial, run like heck because odds are that they have nothing at all good to provide and they are banking on you buying into their seductive pledges of big earnings for a Month, Quarter or a Jackpot (to them) One Year subscription. For frauds such as these, it’s not necessarily about renewals; it is about creating that one particular sale. A sale that is nothing more than a rip-off to take your money.
And finally the third lesson; be leery of Dealing Desk/Market Maker Fx Brokers. Their business model is constructed to profit through your losses. That is not a broker you need or must be undertaking business with, particularly when they partner with sketchy organizations that do practically nothing but provide you with losing trades.
Day Trading scams is a blog devoted to discovering the unkown about people and companies such as ifundtraders. Visit today to read informative articles about ifundtraders.com.
View the original article here
Friday, February 4, 2011
Be Careful When Investing Offshore
The expenditure of accomplishing business globally, different time zones and a variety of currencies once made it tough for offshore scammers to ripp off people throughout the united states nonetheless the Web and the capacity to easily move money around with on-line banking wire transfers, paypal and western union online has opened the doors for those thief’s to effortlessly hoax individuals out of their money.
Online ripoffs can take on many diverse types but a greater part of them include “Regulation S.” This is a law that exempts US companies from enrolling securities with the SEC which are sold entirely outside the US to international investors. Scammers manipulate this kind of offering by reselling Regulation S stock to US investors in violation of the guideline.
In ‘09, Texas billionaire R. Allen Stanford was charged with perpetrating an $8 billion investment sham. Mr. Stanford, as the Los Angeles Times reported “cast himself as offshore investment guru to the transatlantic jet set and benefactor to the Caribbean islands’ poor through multimillion-dollar promotions of their beloved sport of cricket.” He was busted by the Fbi four months later.
Extraordinary internet sites, magnificent brochures, as well as “educational” classes are some techniques applied to convince victims to place money in disreputable or non-existent agencies within international countries. The carrot is normally in the form of high, tax-free results with no hazard. Victims don’t succeed to contemplate that if they take a complete loss of their investment, they do so without the safeguard of US regulation given that law- enforcement agencies cannot investigate easily outside the united states.
Advanced scams make use of complicated terminology such as “bank debentures” or “standby letters of credit,” complicated-sounding aspects such as “offshore fund leasing,” and inexplicable instruments just like “interbank trading” and also “seasoned notes.” Tutorials are generally held in fascinating areas and cost thousands of dollars to enroll in; promoters promote “connections” and a warranty of “no taxes” on your investment.
Day Trading scams is a blog devoted to discovering the unkown about people and companies such as Oliver L Velez. Visit today to read informative articles about Mastertrader.
categories: gambling,day trader,self employment,wealth,banks,wall street,NYSE,dollars,riches,success,net worth,managed accounts,hedge funds,mutual funds
View the original article here
Online ripoffs can take on many diverse types but a greater part of them include “Regulation S.” This is a law that exempts US companies from enrolling securities with the SEC which are sold entirely outside the US to international investors. Scammers manipulate this kind of offering by reselling Regulation S stock to US investors in violation of the guideline.
In ‘09, Texas billionaire R. Allen Stanford was charged with perpetrating an $8 billion investment sham. Mr. Stanford, as the Los Angeles Times reported “cast himself as offshore investment guru to the transatlantic jet set and benefactor to the Caribbean islands’ poor through multimillion-dollar promotions of their beloved sport of cricket.” He was busted by the Fbi four months later.
Extraordinary internet sites, magnificent brochures, as well as “educational” classes are some techniques applied to convince victims to place money in disreputable or non-existent agencies within international countries. The carrot is normally in the form of high, tax-free results with no hazard. Victims don’t succeed to contemplate that if they take a complete loss of their investment, they do so without the safeguard of US regulation given that law- enforcement agencies cannot investigate easily outside the united states.
Advanced scams make use of complicated terminology such as “bank debentures” or “standby letters of credit,” complicated-sounding aspects such as “offshore fund leasing,” and inexplicable instruments just like “interbank trading” and also “seasoned notes.” Tutorials are generally held in fascinating areas and cost thousands of dollars to enroll in; promoters promote “connections” and a warranty of “no taxes” on your investment.
Day Trading scams is a blog devoted to discovering the unkown about people and companies such as Oliver L Velez. Visit today to read informative articles about Mastertrader.
categories: gambling,day trader,self employment,wealth,banks,wall street,NYSE,dollars,riches,success,net worth,managed accounts,hedge funds,mutual funds
View the original article here
Thursday, February 3, 2011
Stocks – What Significant Factor Separates A Winning Trader From A Losing Trader?
Often, I receive requests from members of my stock market trading discussion group to give my views on technical analysis of stocks that they are watching. In the course of discussion, I discovered one common factor which separates the winning traders from the losing traders.
Generally, both group of traders like to scan their tallies of active stocks to reveal possible trading applicants. Nonetheless the traders in the winning group are express about their trading, and have their exit and entry points well spelt out in a particular trading plan.
In their trading,they have definite exit and entry points…so the trade is calm. After they have entered a trade, either they’re correct and ride the trend or they’re wrong and you exit with a loss that has been destined. There’s nothing obscure in their trading.
In contrast, those who are losing money in their trades invariably do not have a trading plan, or at least a semblance of a trading plan. This group of traders jump on tips provided by others without being able to check or verify the tips from some analysis, whether technical or fundamental. They do not have any idea of when to enter the trade or to exit with a stop loss.
Again, when the winning traders have computed their entry and exit and stop loss points, these traders can approach their trading day with guarded optimism, watching whether an expected rally is on the cards or not. By watching pre-determined price points, the trader can know whether a rally has in fact begun and to start to trade in a more aggressive manner or to stop trading on wrong expectations which comes soeasily by being influenced by tips here and there. If the trade goes against them and hit their stop loss, they take their loss unemotionally and are out of the market, thus limiting their losses.
Remember, you involve hard earned money into your trading and investment.There is nothing Imprecise about trading. Each exit and entry points is worked out before hand to permit you to control your risk, if you are going to become a successful trader.
Learn how to do this well and you will be a consistent trader. Test every tip and breathe specifics into your trades and you can make profits. In every profession, it is the specialist who makes the most money. Learn to excel in your trading and you will be profitable.
View the original article here
Generally, both group of traders like to scan their tallies of active stocks to reveal possible trading applicants. Nonetheless the traders in the winning group are express about their trading, and have their exit and entry points well spelt out in a particular trading plan.
In their trading,they have definite exit and entry points…so the trade is calm. After they have entered a trade, either they’re correct and ride the trend or they’re wrong and you exit with a loss that has been destined. There’s nothing obscure in their trading.
In contrast, those who are losing money in their trades invariably do not have a trading plan, or at least a semblance of a trading plan. This group of traders jump on tips provided by others without being able to check or verify the tips from some analysis, whether technical or fundamental. They do not have any idea of when to enter the trade or to exit with a stop loss.
Again, when the winning traders have computed their entry and exit and stop loss points, these traders can approach their trading day with guarded optimism, watching whether an expected rally is on the cards or not. By watching pre-determined price points, the trader can know whether a rally has in fact begun and to start to trade in a more aggressive manner or to stop trading on wrong expectations which comes soeasily by being influenced by tips here and there. If the trade goes against them and hit their stop loss, they take their loss unemotionally and are out of the market, thus limiting their losses.
Remember, you involve hard earned money into your trading and investment.There is nothing Imprecise about trading. Each exit and entry points is worked out before hand to permit you to control your risk, if you are going to become a successful trader.
Learn how to do this well and you will be a consistent trader. Test every tip and breathe specifics into your trades and you can make profits. In every profession, it is the specialist who makes the most money. Learn to excel in your trading and you will be profitable.
View the original article here
Wednesday, February 2, 2011
Forex Signals May Be The Answer To Your Inconsistency In Forex Trading
The opportunity to earn an income from forex trading is there for those that are willing to work for it. But before you begin forex trading, there are some items that you first should consider.
If you have not done much forex trading or you are finding it difficult to consistently make money in your trading, subscribing to a Forex Signals services is a good alternative. If you have invested in other markets, you understand the price paid for not having the right skills or advice. Most traders are unable to find the time to trade because their job or hectic schedule don’t allow the time it takes to study the market. Furthermore, the fact that the Forex Market is a 24 hour exchange, Monday through Friday, makes the task even more difficult.
There are quite a few alert services on the internet providing signals in many different forms. They send alerts to you via email, cell phone instant messenger and even online rooms where you log in and mimic their trades. Now these may all be good services but remember, one of the main reasons traders want to use forex trading signals is because they lack the time. Waiting on an SMS or email then having to place the trades immediately requires time and standing by or reacting takes time A majority of alerts that are sent require immediate attention. If you are too busy to receive the trade, how can you enter the trade quick enough. Remember, forex trading is 24/5. The solution is simple. Look for a Forex Trading Signals service that send their alerts straight to your trading account. There should be no reason for you to place a trade. Many providers can directly connect with your Metatrader 4 trading platform, the most popular forex trading platform available. It’s as simple as using an expert advisor which transfers the alerts, which the Forex Signals company will provide you with.
Many new forex traders pay steep fees for forex signals because they think their return will be much more than what they paid. Even though substantial profits can be made, we must still perform due diligence in looking for a low priced service that is relatively consistent, making sure to try their service first via a free trial.
Paying $50 to $200 per month seems to be the norm. It is important to realize that sometimes the Fx Signals you bought do make money and sometimes they lose. As in any type of investment, there are risks. No Forex signals, Forex robots or Forex trading strategies can guarantee that you will make money every day, week or month but they should be profitable over the long haul.
When you are ready to buy forex signals, be certain you do business with firms that provide a free trial. Otherwise look elsewhere. Any reputable company should be willing to let potential users test their forex trading signals before paying full fees or at least offer a money back guarantee policy. If their services are any good, they should be happy to offer a free trial so that you can determine for yourself the quality of their service. There is no reason for you to risk your capital on forex signals from firms that don’t provide a free trial.
View the original article here
- Find a forex broker you can trust. The forex industry is riddled with brokers that are less than honest. Avoid forex brokers that are market makers. Because they take the other side of the trade, their profits are dependent on your losses. Because of that, they may stop hunt or do other things to lean the odds in their favor.
- Decide how much you want to open your account with. Begin with a small account size. When you are starting, it’s about you achieving a level of consistency rather than making a lot of money.
- Get properly educated. Free and pay for education is available throughout the net. Read as much as you can and learn as many strategies as you can. Then work on creating a trading plan according to the methods that you now know and use a demo account or if a live account, use very small lot sizing (preferably micro).
- If success at Forex Trading seems to slip by you no matter what you do, then you may want to consider using a Forex Signals alert service.
If you have not done much forex trading or you are finding it difficult to consistently make money in your trading, subscribing to a Forex Signals services is a good alternative. If you have invested in other markets, you understand the price paid for not having the right skills or advice. Most traders are unable to find the time to trade because their job or hectic schedule don’t allow the time it takes to study the market. Furthermore, the fact that the Forex Market is a 24 hour exchange, Monday through Friday, makes the task even more difficult.
There are quite a few alert services on the internet providing signals in many different forms. They send alerts to you via email, cell phone instant messenger and even online rooms where you log in and mimic their trades. Now these may all be good services but remember, one of the main reasons traders want to use forex trading signals is because they lack the time. Waiting on an SMS or email then having to place the trades immediately requires time and standing by or reacting takes time A majority of alerts that are sent require immediate attention. If you are too busy to receive the trade, how can you enter the trade quick enough. Remember, forex trading is 24/5. The solution is simple. Look for a Forex Trading Signals service that send their alerts straight to your trading account. There should be no reason for you to place a trade. Many providers can directly connect with your Metatrader 4 trading platform, the most popular forex trading platform available. It’s as simple as using an expert advisor which transfers the alerts, which the Forex Signals company will provide you with.
Many new forex traders pay steep fees for forex signals because they think their return will be much more than what they paid. Even though substantial profits can be made, we must still perform due diligence in looking for a low priced service that is relatively consistent, making sure to try their service first via a free trial.
Paying $50 to $200 per month seems to be the norm. It is important to realize that sometimes the Fx Signals you bought do make money and sometimes they lose. As in any type of investment, there are risks. No Forex signals, Forex robots or Forex trading strategies can guarantee that you will make money every day, week or month but they should be profitable over the long haul.
When you are ready to buy forex signals, be certain you do business with firms that provide a free trial. Otherwise look elsewhere. Any reputable company should be willing to let potential users test their forex trading signals before paying full fees or at least offer a money back guarantee policy. If their services are any good, they should be happy to offer a free trial so that you can determine for yourself the quality of their service. There is no reason for you to risk your capital on forex signals from firms that don’t provide a free trial.
View the original article here
Tuesday, February 1, 2011
USA Banks Facts
United States, the super power, being the world’s most developed country is the hub of all activities whether they are industrial or financial, business or commerce, entertainment or media it is offering its public the best of the best. When we talk about the US we virtually find it inevitable to discuss about some of the world’s top banks. Yes, you are right; some of the world’s top banks are having US origin.
Among the top US banks the dominant names are Bank of America, J. P. Morgan Chase & Company, Citigroup, Wells Fargo & Company, HSBC and Barclays. These banks are known world over for their superior services to the customers. However, I am going to touch the four top most banks of the US in this article that are continuously making efforts to make their market in every corner of the world.
Well, among these top US banks, the first place no wonder is occupied by the Bank of America or BOA. According to the number of assets; BOA is without dispute the number one bank in the US. BOA has earned it customers in more than 150 countries of the world owing to the premium services that it provides. Other than this; investment banking industry is another area where BOA has dominancy. A trait that makes it unique is its membership of Global ATM Alliance. GTA membership is a combined venture of some of the top banks of the world to allow their customers to draw money by using ATM card (without any charges) from any of the GTA member bank. Owing to this facility, the customers of BOA can freely travel to abroad without worrying about financial issues.
After BOA, J. P. Morgan Chase & Company is US top bank offering the quality facilities around the world. Although, all of its services and features are worth mentioning, yet the one which is earning a lot of customers is its cash rewards visa card feature. This feature helps the customers in getting different gifts and even cash prizes on making a specific number of points. In addition; the best part is that anyone who is spending as less amount as a single dollar will earn a point. Other than this, it also provides other services to the customers like purchase protection, emergency cash and card replacement etc.
Then there are names like Citigroup and Wells Fargo that are equally renowned and are serving in approximately 140 countries around the globe. They offer a number of attractive features along with providing quality services. Finally, the characteristic which makes all these top US banks the most sought after is that they have huge number of ATMs in nearly every city and state of the US, plus they have the perfect online banking system in all over the world.
View the original article here
Among the top US banks the dominant names are Bank of America, J. P. Morgan Chase & Company, Citigroup, Wells Fargo & Company, HSBC and Barclays. These banks are known world over for their superior services to the customers. However, I am going to touch the four top most banks of the US in this article that are continuously making efforts to make their market in every corner of the world.
Well, among these top US banks, the first place no wonder is occupied by the Bank of America or BOA. According to the number of assets; BOA is without dispute the number one bank in the US. BOA has earned it customers in more than 150 countries of the world owing to the premium services that it provides. Other than this; investment banking industry is another area where BOA has dominancy. A trait that makes it unique is its membership of Global ATM Alliance. GTA membership is a combined venture of some of the top banks of the world to allow their customers to draw money by using ATM card (without any charges) from any of the GTA member bank. Owing to this facility, the customers of BOA can freely travel to abroad without worrying about financial issues.
After BOA, J. P. Morgan Chase & Company is US top bank offering the quality facilities around the world. Although, all of its services and features are worth mentioning, yet the one which is earning a lot of customers is its cash rewards visa card feature. This feature helps the customers in getting different gifts and even cash prizes on making a specific number of points. In addition; the best part is that anyone who is spending as less amount as a single dollar will earn a point. Other than this, it also provides other services to the customers like purchase protection, emergency cash and card replacement etc.
Then there are names like Citigroup and Wells Fargo that are equally renowned and are serving in approximately 140 countries around the globe. They offer a number of attractive features along with providing quality services. Finally, the characteristic which makes all these top US banks the most sought after is that they have huge number of ATMs in nearly every city and state of the US, plus they have the perfect online banking system in all over the world.
View the original article here
5 Secrets of Self-Made Millionaires
They’re just like you. But with lots of money.
When you think “millionaire,” what image comes to mind? For many of us, it’s a flashy Wall Street banker type who flies a private jet, collects cars and lives the kind of decadent lifestyle that would make Donald Trump proud.
But many modern millionaires live in middle-class neighborhoods, work full-time and shop in discount stores like the rest of us. What motivates them isn’t material possessions but the choices that money can bring: “For the rich, it’s not about getting more stuff. It’s about having the freedom to make almost any decision you want,” says T. Harv Eker, author of Secrets of the Millionaire Mind. Wealth means you can send your child to any school or quit a job you don’t like.
According to the Spectrem Wealth Study, an annual survey of America’s wealthy, there are more people living the good life than ever before—the number of millionaires nearly doubled in the last decade. And the rich are getting richer. To make it onto the Forbes 400 list of the richest Americans, a mere billionaire no longer makes the cut. This year you needed a net worth of at least $1.3 billion.
If more people are getting richer than ever, why shouldn’t you be one of them? Here, five people who have at least a million dollars in liquid assets share the secrets that helped them get there.
Set your sights on where you’re going
Twenty years ago, Jeff Harris hardly seemed on the road to wealth. He was a college dropout who struggled to support his wife, DeAnn, and three kids, working as a grocery store clerk and at a junkyard where he melted scrap metal alongside convicts. “At times we were so broke that we washed our clothes in the bathtub because we couldn’t afford the Laundromat.” Now he’s a 49-year-old investment advisor and multimillionaire in York, South Carolina.
There was one big reason Jeff pulled ahead of the pack: He always knew he’d be rich. The reality is that 80 percent of Americans worth at least $5 million grew up in middle-class or lesser households, just like Jeff.
Wanting to be wealthy is a crucial first step. Says Eker, “The biggest obstacle to wealth is fear. People are afraid to think big, but if you think small, you’ll only achieve small things.”
View the original article here
When you think “millionaire,” what image comes to mind? For many of us, it’s a flashy Wall Street banker type who flies a private jet, collects cars and lives the kind of decadent lifestyle that would make Donald Trump proud.
But many modern millionaires live in middle-class neighborhoods, work full-time and shop in discount stores like the rest of us. What motivates them isn’t material possessions but the choices that money can bring: “For the rich, it’s not about getting more stuff. It’s about having the freedom to make almost any decision you want,” says T. Harv Eker, author of Secrets of the Millionaire Mind. Wealth means you can send your child to any school or quit a job you don’t like.
According to the Spectrem Wealth Study, an annual survey of America’s wealthy, there are more people living the good life than ever before—the number of millionaires nearly doubled in the last decade. And the rich are getting richer. To make it onto the Forbes 400 list of the richest Americans, a mere billionaire no longer makes the cut. This year you needed a net worth of at least $1.3 billion.
If more people are getting richer than ever, why shouldn’t you be one of them? Here, five people who have at least a million dollars in liquid assets share the secrets that helped them get there.
Set your sights on where you’re going
Twenty years ago, Jeff Harris hardly seemed on the road to wealth. He was a college dropout who struggled to support his wife, DeAnn, and three kids, working as a grocery store clerk and at a junkyard where he melted scrap metal alongside convicts. “At times we were so broke that we washed our clothes in the bathtub because we couldn’t afford the Laundromat.” Now he’s a 49-year-old investment advisor and multimillionaire in York, South Carolina.
There was one big reason Jeff pulled ahead of the pack: He always knew he’d be rich. The reality is that 80 percent of Americans worth at least $5 million grew up in middle-class or lesser households, just like Jeff.
Wanting to be wealthy is a crucial first step. Says Eker, “The biggest obstacle to wealth is fear. People are afraid to think big, but if you think small, you’ll only achieve small things.”
View the original article here
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