In today's world, the internet and cell phones have made it easy to reach people anytime and anywhere. At the end of the day, sometimes it's nice to come home to a little privacy where no one will bother you.
Although the fence-building business may not seem very glamorous, this line of work goes beyond constructing property boundaries. Homeowners as well as businesses look for ways to increase their privacy, and one of these ways can be through privacy screens. Although some privacy screens look like little more than a small fence, the value can be higher to the customer - thereby creating a profitable market for fence-builders.
Privacy screens can be used around hot tubs, decks, walkways, exposed windows, patios, etc.. Not only can they enhance the homeowner's lifestyle, they can increase a property's value. A privacy screen doesn't have to be complicated either. It can be simple and inexpensive.
If you are interested in starting your own fence business, consider focusing on a "less-traveled" niche like privacy screens. It can be easier to find clients because (1) it's likely you will have less competition from other companies and (2) privacy screens often offer greater value to property owners, making them willing to spend more money.
By offering a specialized service such as privacy screens, don't assume that your market will come knocking on your door. Many people know they want more privacy, but they don't know how to get it exactly.
Your job is to show them how easy and affordable your solution can be with a portfolio of examples. Include these visuals in your advertisements, brochures and website as well. Many times, consumers need to sell themselves - but only after you put an idea in their head... Labels: building, construction business, contractor, fence business, handyman, how to start a fence business, privacy screen, start a fence business
View the original article here
Wednesday, August 31, 2011
Tuesday, August 30, 2011
A Good Investment in Case of Default?
Watching a video this morning on Where to Put Your Money in Case of Default, I saw another supporting statistic for people to own their own businesses.
Throughout this whole economic downturn, I have felt that starting a business and owning a business is a smart idea.
Why?
Because the instability of other investments makes them less profitable and less attractive. I think wise investors are looking more for investments that they have some control over, so that they are not at the mercy of what the government does or does not do.
Back to the video. CNN talks about people looking toward gold and diamonds, but they also mention a flury of investing in IPOs. IPOs as in... investing in businesses. Companies like Apple, Google and Amazon are doing well, despite what's going on with the economy.
Businesses generate revenue, and I think more and more people are starting to see that new businesses with good ideas are this economy's future - and a good place to invest money. Why not have that business be yours?
View the original article here
Throughout this whole economic downturn, I have felt that starting a business and owning a business is a smart idea.
Why?
Because the instability of other investments makes them less profitable and less attractive. I think wise investors are looking more for investments that they have some control over, so that they are not at the mercy of what the government does or does not do.
Back to the video. CNN talks about people looking toward gold and diamonds, but they also mention a flury of investing in IPOs. IPOs as in... investing in businesses. Companies like Apple, Google and Amazon are doing well, despite what's going on with the economy.
Businesses generate revenue, and I think more and more people are starting to see that new businesses with good ideas are this economy's future - and a good place to invest money. Why not have that business be yours?
View the original article here
Friday, August 26, 2011
Ten Things to Do If Banks Won’t Lend to You
You can raise cash quickly for your business when you need it!
People new to business usually turn to banks when they need cash. Unfortunately, banks rarely lend to start-ups nor to those with no track record.
This is not the end of the road; in fact, there are alternatives that may even be more attractive. Try these options if they fit your situation:
1. Lease instead of buy. If possible try leasing an asset instead of buying it. This applies not only to land and building but also when purchasing expensive equipment. Doing this will not only improve your cash position but also enable you to charge the lease payments as a business expense.
2. Borrow from parents or relatives. This is relatively safe because it is almost impossible for them to foreclose you in case you fail to pay on time. They will be more flexible in case you need to postpone your payment.
3. Get trade credits. Suppliers will be willing to give you credit lines if you have developed a good and trust-based relationship with them. If you already have a credit line then ask if it is possible to extend it. The strategy here is not to wait; you must actively ask how and when you can be given your desired credit terms. Ask around to know the best terms possible.
4. Ask for down payment. Always ask for a down payment whenever possible. This also lessens the chances of non-payment. If you were able to close a big project, you may talk the client into giving you an advance payment so you can minimize drawing money out of your own pocket.
5. Liquidate assets. Sell items you do not really need or can be exchanged for a less costly asset. This may be a vehicle, a machine, or a property. One small company I know solved its cash crunch by selling its brand new truck and using its old van instead since it rarely hauled truck sized loads. Identify your non-performing assets, and make money out of them. Check if you really need the asset’s capacity.
6. Have your receivables discounted. There are some banks or financial institutions that will buy your post dated checks and receivables from suppliers.
7. Reduce your inventory. You can only do this if the cost of stock outs would not be significant. Increasing the frequency of purchases may lower your inventory levels without incurring stock outs.
8. Draw investors. If you have a good business plan, you may ask an investor to help finance your business. You may not like to share your profits but half of something is better than all of nothing!
9. Improve your credit policy. Do not be too lenient on terms. Check if you have clients that take too long to pay. Often, not only will your cash position improve but your bad debts expense will also be reduced.
10. Postpone payments. In urgent cases, you may be forced to select which supplier you must delay payment. Consider this only if you have no other choice because it may damage your relationship with your supplier.
So, before giving up on your plans, exhaust first all possible ways of getting more capital!
View the original article here
People new to business usually turn to banks when they need cash. Unfortunately, banks rarely lend to start-ups nor to those with no track record.
This is not the end of the road; in fact, there are alternatives that may even be more attractive. Try these options if they fit your situation:
1. Lease instead of buy. If possible try leasing an asset instead of buying it. This applies not only to land and building but also when purchasing expensive equipment. Doing this will not only improve your cash position but also enable you to charge the lease payments as a business expense.
2. Borrow from parents or relatives. This is relatively safe because it is almost impossible for them to foreclose you in case you fail to pay on time. They will be more flexible in case you need to postpone your payment.
3. Get trade credits. Suppliers will be willing to give you credit lines if you have developed a good and trust-based relationship with them. If you already have a credit line then ask if it is possible to extend it. The strategy here is not to wait; you must actively ask how and when you can be given your desired credit terms. Ask around to know the best terms possible.
4. Ask for down payment. Always ask for a down payment whenever possible. This also lessens the chances of non-payment. If you were able to close a big project, you may talk the client into giving you an advance payment so you can minimize drawing money out of your own pocket.
5. Liquidate assets. Sell items you do not really need or can be exchanged for a less costly asset. This may be a vehicle, a machine, or a property. One small company I know solved its cash crunch by selling its brand new truck and using its old van instead since it rarely hauled truck sized loads. Identify your non-performing assets, and make money out of them. Check if you really need the asset’s capacity.
6. Have your receivables discounted. There are some banks or financial institutions that will buy your post dated checks and receivables from suppliers.
7. Reduce your inventory. You can only do this if the cost of stock outs would not be significant. Increasing the frequency of purchases may lower your inventory levels without incurring stock outs.
8. Draw investors. If you have a good business plan, you may ask an investor to help finance your business. You may not like to share your profits but half of something is better than all of nothing!
9. Improve your credit policy. Do not be too lenient on terms. Check if you have clients that take too long to pay. Often, not only will your cash position improve but your bad debts expense will also be reduced.
10. Postpone payments. In urgent cases, you may be forced to select which supplier you must delay payment. Consider this only if you have no other choice because it may damage your relationship with your supplier.
So, before giving up on your plans, exhaust first all possible ways of getting more capital!
View the original article here
Wednesday, August 24, 2011
How Can I Make Money As a Teenager? Top 5 Ways For Teens To Make Money
How Can I Make Money As a Teenager? Top 5 Ways For Teens To Make Money:
Alright, so you’re only a teenager, right? You think that just because you’re only 16 or 17 years old that you don’t have the ability to make money? Not so fast! Here at Make Easy Money 365, we’ve got the Top 10 ways that you can make some easy money just by using the skills that you already have!
Guarantee Your Child’s Success!!!
Check Out: Go For Your Goals: Goal Setting For Kids!
No. 1 Tip for Teens to Make Money: Cutting the Grass – Sure, this sounds incredibly boring and really tedious, but it’s easy, and most of your neighbors would much rather pay you to do the work than to do it themselves. You can actually charge better prices than the average professional lawn service, and at least if all you’re doing is cutting the grass, you can probably do just as good of a job as the pros do.
No. 2 Tip for Teens to Make Money: Start a Babysitting Service – Don’t think that this is just a job that is for girls! Even if you’re a guy and can prove that you’re responsible, this is a great way to make easy money. Sure, you end up losing out on your Friday or Saturday nights, but the truth of the matter is that you’ll probably get not only the money for babysitting, but get some free pizza and get to spend most of your time watching TV or movies as well. It’s not great pay, but it’s probably $10 that you didn’t have before, and you get to do most of the same things that you’d be doing at home anyway!
No. 3 Tip for Teens to Make Money: Open a Lemonade Stand – Sure, this sounds awfully cliché, but when push comes to shove, it’s really a cheap way to make some money. Bake cookies, mix up some lemonade, do whatever it is that you have to do, and then just set up shop right there at a busy corner with a lot of pedestrians. You’d be surprised how many people will pay you a buck just because you’re trying to do the right thing with your life.
No. 4 Tip for Teens to Make Money: Go Garage Sale Shopping – Teenagers are a whole heck of a lot savvier than most adults are when it comes to the internet. It doesn’t matter how old you are, you can always buy and sell items and try to turn them into a profit! Go find old baseball cards that you can get a whole bunch of for a dollar, then turn around and either take them to a used card shop or E-Bay and see what you can sell them for! Odds have it, it’s a heck of a lot easier than you think, and it could be a great way to make some quick cash.
No. 5 Tip for Teens to Make Money: Become a Tutor – You’ve got to have something that you’re good at in life, right? Sure, “tutoring” always sounds like something having to do with school, and it’s true that that’s a great way to make some easy money. There are always younger neighborhood kids that are going to need help in math, science, English, and social studies, and if you’re truly a master at one of those topics, go for it! However, parents want their children to learn how to play sports, how to play instruments, and all sorts of other trades! Find something that you’re good at that you know that others would love to learn from you, and pick up some very easy money by teaching them!
View the original article here
Tuesday, August 23, 2011
Enhancing Foreclosure Home Value
After you buy a Bank REO Bank Foreclosure REO home, it now requires home improvement work. The may kitchen requires some modernization or you may need to create some space, there are number of works that come under home improvement. So the expenses also are greater and a loan becomes essential. Online home improvement loan providers ensure that you get greater loan amount at lower interest rate and in less time.
Online home improvement loan is provided by online lenders. These lenders have an online loan application form displayed on their websites. You are required to fill basic details like loan amount, purpose of the loan, repayment duration in the online application and with the click of the mouse the application is with the lender for verifying the information. Online lenders can thus approve the loan in less time and the loan is in the applicant?s account within days.
Online lenders give you the options of taking a secured or unsecured online home improvement loan. For secured online home improvement loan you are required to place collateral with the lender. Collateral may be any property or your home. On securing home improvement loan, lenders offer the loan at lower interest rate. The repayment duration for the secured loan is larger in the range of 5 to 30 years. The borrowed amount depends on equity in the property placed as collateral. Usually lenders are willing to provide any where from $5000 to $75000 to the borrowers.
For smaller borrowings unsecured home improvement loan is better option. Unsecured home improvement loan is a risk free offer for the borrower as none of his property is at stake. But interest rate is higher and borrowings are restricted to limited amount. Repayment duration also is shorter up to 10 years. For ensuring the repayment capacity, lender may demand proof of annual income and employment.
To bad credit borrowers also online home improvement loan is available easily in case the secured loan is the option. Lenders do not enquire much because in case of payment default, lenders can recover the loan on selling the bad credit borrower?s property. If unsecured loan is the option, then bad credit borrowers shall have to assure the lender about safe pay off of the loan.
Make comparison of different online home improvement loan providers for their individual interest rates and terms-conditions. Apply to the suitable lender online for fast approval.
Online home improvement loan is surely a useful source of cheap finance for meeting various expenses. Ensure a timely payment of the installments for avoiding the debts.
View the original article here
Online home improvement loan is provided by online lenders. These lenders have an online loan application form displayed on their websites. You are required to fill basic details like loan amount, purpose of the loan, repayment duration in the online application and with the click of the mouse the application is with the lender for verifying the information. Online lenders can thus approve the loan in less time and the loan is in the applicant?s account within days.
Online lenders give you the options of taking a secured or unsecured online home improvement loan. For secured online home improvement loan you are required to place collateral with the lender. Collateral may be any property or your home. On securing home improvement loan, lenders offer the loan at lower interest rate. The repayment duration for the secured loan is larger in the range of 5 to 30 years. The borrowed amount depends on equity in the property placed as collateral. Usually lenders are willing to provide any where from $5000 to $75000 to the borrowers.
For smaller borrowings unsecured home improvement loan is better option. Unsecured home improvement loan is a risk free offer for the borrower as none of his property is at stake. But interest rate is higher and borrowings are restricted to limited amount. Repayment duration also is shorter up to 10 years. For ensuring the repayment capacity, lender may demand proof of annual income and employment.
To bad credit borrowers also online home improvement loan is available easily in case the secured loan is the option. Lenders do not enquire much because in case of payment default, lenders can recover the loan on selling the bad credit borrower?s property. If unsecured loan is the option, then bad credit borrowers shall have to assure the lender about safe pay off of the loan.
Make comparison of different online home improvement loan providers for their individual interest rates and terms-conditions. Apply to the suitable lender online for fast approval.
Online home improvement loan is surely a useful source of cheap finance for meeting various expenses. Ensure a timely payment of the installments for avoiding the debts.
View the original article here
Sunday, August 21, 2011
Best Franchise Business Opportunity For Women Investors
For prospective women investors and entrepreneurs, clothing franchise and jewellery franchise options are among the most popular business opportunities. Both clothing and jewellery products have wide appeal to the female section and thus they find jewellery and clothing franchise very exciting in nature. One plus point is that both these franchise business opportunities go hand in hand. Thus, you can opt for both options together and earn handsome income. For this, you need to buy franchises that suit your interest level and budget.
As the number of clothing and jewellery brands is multiplying with each other vouching to be the best, one thing that is assured is the wide number of franchise business opportunities on the course. This can surely confuse many prospective women investors and entrepreneurs. Hence, before opting for a jewellery or clothing franchise, there are certain things that women must be aware of, such as:
1. Investing in a business is a big step and hence you need to be very sure that you really want to do it. Take time to think about this and be honest with yourself. Until and unless you are interested in a business module, don’t go for it.
2. Every business has got its own set of pre-requisites and need to be handled in a particular manner. There are certain types of management skills required to run a business and hence, before opting for a clothing and jewellery franchise, you need to be sure that you have got the right skills. If you do recognize some weaknesses, think of ways that can help in compensating or overcoming them.
3. You need to have good location for both jewellery and clothing franchise business opportunities. If there is enough space in a prime location, you can go for both the franchises. Women coming to buy clothes would also love to buy matching jewellery items too. Before looking for a location, create a floor plan of your work and storage area, calculating the square footage you require, and deciding what space would be perfect for you.
4. Meet people who are involved in these types of businesses. You can ask them about their experiences and learn from them about how to communicate with their clients or how to promote their business. Well, the franchisors too provide support and training to the franchisees on how to start their business in clothing and jewellery segment.
5. Jewellery and clothing franchise business need a good amount of investment. Plan out a detailed budget including both expenses and projected revenue for at least one year. If you need to apply for a loan, make sure that you can survive during the initial days.
6. Do good analyses to find out what make your competitors great and how they are promoting their business. Don’t just examine pricing as it is not always the best way to compete. Look at everything from selection, to delivery methods and production time to customer service standards. This is help in coming up with unique ideas to do successful business.
Keep these above mentioned points in mind and you are off to a great start. Look for the best franchise business opportunity and be your own boss.
View the original article here
As the number of clothing and jewellery brands is multiplying with each other vouching to be the best, one thing that is assured is the wide number of franchise business opportunities on the course. This can surely confuse many prospective women investors and entrepreneurs. Hence, before opting for a jewellery or clothing franchise, there are certain things that women must be aware of, such as:
1. Investing in a business is a big step and hence you need to be very sure that you really want to do it. Take time to think about this and be honest with yourself. Until and unless you are interested in a business module, don’t go for it.
2. Every business has got its own set of pre-requisites and need to be handled in a particular manner. There are certain types of management skills required to run a business and hence, before opting for a clothing and jewellery franchise, you need to be sure that you have got the right skills. If you do recognize some weaknesses, think of ways that can help in compensating or overcoming them.
3. You need to have good location for both jewellery and clothing franchise business opportunities. If there is enough space in a prime location, you can go for both the franchises. Women coming to buy clothes would also love to buy matching jewellery items too. Before looking for a location, create a floor plan of your work and storage area, calculating the square footage you require, and deciding what space would be perfect for you.
4. Meet people who are involved in these types of businesses. You can ask them about their experiences and learn from them about how to communicate with their clients or how to promote their business. Well, the franchisors too provide support and training to the franchisees on how to start their business in clothing and jewellery segment.
5. Jewellery and clothing franchise business need a good amount of investment. Plan out a detailed budget including both expenses and projected revenue for at least one year. If you need to apply for a loan, make sure that you can survive during the initial days.
6. Do good analyses to find out what make your competitors great and how they are promoting their business. Don’t just examine pricing as it is not always the best way to compete. Look at everything from selection, to delivery methods and production time to customer service standards. This is help in coming up with unique ideas to do successful business.
Keep these above mentioned points in mind and you are off to a great start. Look for the best franchise business opportunity and be your own boss.
View the original article here
Saturday, August 20, 2011
Handle Company Accounts With Invoice Factoring
As commonly known that Factoring is a monetary or financial deal whereby a business or any industry works sells its accounts or explanations receivable for example; invoices to a 3rd party that is called a factor at money off in switch for instant money and amount with which to finance sustained business.
Factoring is a financing gadget to facilitate to our clients to obtain their invoices rewarded or paid in as small as within two days. It offers to their organization and company with the essential fund or capital to activate or operate the business, shell out providers and raise. On the other hand, factoring is not a type of business loan. To a certain extent, it means, factoring engages selling their invoices at a concession for pressing cash. The factoring company waits to get paid, while any payers get instant utilize of the capital or funds.
Good number factoring business deals completed these days really are planned to be extra like short-range or term business loans with receivables guaranteed as security. Under this situation, the firm or organization pledging the obtainable in come again for financial support still maintains the threat connected with uncollectible receivables. One of the major benefits of factoring is that it can monetize leisurely paying invoices. It makes that this is a perfect clarification for companies that cannot afford to be patient to sixty days to get paid by clients.
At the same time as factoring may permit the legally responsible party or organization or firms to be eased of the balance for below the complete amount, it is commonly proposed to be more advantageous to the feature, and new holder, and the seller of the financial credit than to the debtor. In the majority of issues, factoring is a money-making scheme, but it is a high-quality thought to analysis every account on an entity basis before make a decision how it should be to go on.
View the original article here
Factoring is a financing gadget to facilitate to our clients to obtain their invoices rewarded or paid in as small as within two days. It offers to their organization and company with the essential fund or capital to activate or operate the business, shell out providers and raise. On the other hand, factoring is not a type of business loan. To a certain extent, it means, factoring engages selling their invoices at a concession for pressing cash. The factoring company waits to get paid, while any payers get instant utilize of the capital or funds.
Good number factoring business deals completed these days really are planned to be extra like short-range or term business loans with receivables guaranteed as security. Under this situation, the firm or organization pledging the obtainable in come again for financial support still maintains the threat connected with uncollectible receivables. One of the major benefits of factoring is that it can monetize leisurely paying invoices. It makes that this is a perfect clarification for companies that cannot afford to be patient to sixty days to get paid by clients.
At the same time as factoring may permit the legally responsible party or organization or firms to be eased of the balance for below the complete amount, it is commonly proposed to be more advantageous to the feature, and new holder, and the seller of the financial credit than to the debtor. In the majority of issues, factoring is a money-making scheme, but it is a high-quality thought to analysis every account on an entity basis before make a decision how it should be to go on.
View the original article here
Thursday, August 18, 2011
Loan Auditing: Guaranteed Peace of Mind on The Strength of Laws
It is a matter of great debate if fraudulence is in the nature of human beings. But there are examples of this vice in the financial business. When a loan is in question a lender may and may not be fraudulent. Homeowners often want that they should be provided with audited loan document time to time. People who do not own a home must complete loan audits lawfully for their pocketbook and mortgage. A forensic audit of loans can identify omissions and violations on behalf of the brokers or lenders.
In case of audits of mortgage one should not leave everything just having trust on a broker or lender. In the domain of financial management advice from the professionals and legal knowledge are very important. Before one goes for a loan agreement and also after one has gone for the same it is unquestionably important to have detailed information about it. It is essential to receive an audit report before a loan is being funded and also before any refinancing. An audit is the best equipment to place before the lenders in case laws of the land related to finance have not been honored. The Real Estate Settlement Procedures Act and Lending Act must be complied with by the lenders or brokers. There are provisions for severe penalties in case a firm is found to have acted irresponsibly ignoring and neglecting federal disclosure formalities based on laws of the land. A borrower may be misled by terms and conditions which are not legal. In such case he/ she will not be obliged to honor such terms and conditions. In this stage mortgage payment are not needed and lenders must select any worthy but responsible and rational financial alternative for solution.
Lenders or brokers, for processing loans violating laws of the land, may be compelled to pay huge amount of money for honorable attorney or to pay huge amount as penalties and fines. They will select loan modification in most of the cases. Hence a loan audit must be taken as a must while processing loans. Loan auditing allows everyone to sleep in peace at night as security has been guaranteed.
View the original article here
In case of audits of mortgage one should not leave everything just having trust on a broker or lender. In the domain of financial management advice from the professionals and legal knowledge are very important. Before one goes for a loan agreement and also after one has gone for the same it is unquestionably important to have detailed information about it. It is essential to receive an audit report before a loan is being funded and also before any refinancing. An audit is the best equipment to place before the lenders in case laws of the land related to finance have not been honored. The Real Estate Settlement Procedures Act and Lending Act must be complied with by the lenders or brokers. There are provisions for severe penalties in case a firm is found to have acted irresponsibly ignoring and neglecting federal disclosure formalities based on laws of the land. A borrower may be misled by terms and conditions which are not legal. In such case he/ she will not be obliged to honor such terms and conditions. In this stage mortgage payment are not needed and lenders must select any worthy but responsible and rational financial alternative for solution.
Lenders or brokers, for processing loans violating laws of the land, may be compelled to pay huge amount of money for honorable attorney or to pay huge amount as penalties and fines. They will select loan modification in most of the cases. Hence a loan audit must be taken as a must while processing loans. Loan auditing allows everyone to sleep in peace at night as security has been guaranteed.
View the original article here
Wednesday, August 17, 2011
Personal Loan Without Employment – Unemployment Is No More Hassle
Loans are approved easily when you are employed or having collateral to pawn against the financial assistance. On the other hand, loans are not possible to help you if you are an unemployed person and haven’t got co-signer or collateral to provide aligned with the loan for securing. This is because unemployment is contemplated as nuisance in financial arena. But on the arrival of personal loan without employment in current financial market, unemployment standing has been acceptable for taking financial relief. These loans are offered to the borrowers in the main two forms secured and unsecured. It means that there is no matter of disavowal of your application for the loan.
These loans are accessible in two forms so everyone is able to get finance in accordance with his her needs. Borrowers who are unemployed and have estate or home property to pledge in replace of secured personal loan without employment, they can borrow the amount ranging from £5,000 to £75,000. This approved amount is helpful for you to use for longer repayment term of 5-25 years. In addition to these, borrowers can grab low rate of interest.
As the subtitle says that unemployment is no more hassle is right. If you don’t have any property to pledge against the loan amount then it will not be any hurdle to you getting finance because unsecured personal loan without employment is specially fabricated to tenant and non-property unemployed borrowers. In addition, bad credit holders can also benefit this unsecured form of the loan. They can get the amount in ranging of £1,000 to £25,000 for the repayment period of 1 – 10 years. But a disadvantage feature with this loan is that it carries high rate of interest in comparison of other loans.
The most important thing of loans for unemployed on benefits are that any borrower doesn’t need to provide any name of the requirement for which the amount is to be availed. So you can use personal loan without employment to set up new business to get rid of unemployment, purchase home, purchase car, pay off the past due debts, pay for education costs, wedding expenses, and pay all utility bills.
View the original article here
These loans are accessible in two forms so everyone is able to get finance in accordance with his her needs. Borrowers who are unemployed and have estate or home property to pledge in replace of secured personal loan without employment, they can borrow the amount ranging from £5,000 to £75,000. This approved amount is helpful for you to use for longer repayment term of 5-25 years. In addition to these, borrowers can grab low rate of interest.
As the subtitle says that unemployment is no more hassle is right. If you don’t have any property to pledge against the loan amount then it will not be any hurdle to you getting finance because unsecured personal loan without employment is specially fabricated to tenant and non-property unemployed borrowers. In addition, bad credit holders can also benefit this unsecured form of the loan. They can get the amount in ranging of £1,000 to £25,000 for the repayment period of 1 – 10 years. But a disadvantage feature with this loan is that it carries high rate of interest in comparison of other loans.
The most important thing of loans for unemployed on benefits are that any borrower doesn’t need to provide any name of the requirement for which the amount is to be availed. So you can use personal loan without employment to set up new business to get rid of unemployment, purchase home, purchase car, pay off the past due debts, pay for education costs, wedding expenses, and pay all utility bills.
View the original article here
Monday, August 15, 2011
Mortgage Assistance Relief Services (MARS)
The FTC released their final Mortgage Assistance Relief Services (MARS) ruling in December of 2010. Recently there has been much discussion about it and how it affects real estate investors. It appears that it really only affects you if you work with homeowners facing the prospect of foreclosure or you attempt to work on their behalf for a short sale, loan modification, forbearance, or any other strategy aimed at mortgage relief.
From what I can tell, the only affect seems to be that you need to include additional disclosures both in your marketing to general audiences, and more specific disclosures to the actual homeowner with whom you assist. You also can not collect upfront fees or require payment for services that have not been completed.
My advice is that you should talk with your attorney to see exactly how this ruling will affect the way you do business in your state if you are involved with any of these strategies. The actual FTC ruling can be found at:
http://www.ftc.gov/os/fedreg/2010/december/R911003mars.pdf
It seems that every time the government issues a new law or ruling there is much brouhaha in the industry with some “experts” claiming the end of investing as we know it. I see it as simple disclosures that the homeowner should understand anyway as just good business practice. So get the facts from your attorney and comply with the ruling – that’s all.
Anyone have additional info on MARS they would like to share?
View the original article here
From what I can tell, the only affect seems to be that you need to include additional disclosures both in your marketing to general audiences, and more specific disclosures to the actual homeowner with whom you assist. You also can not collect upfront fees or require payment for services that have not been completed.
My advice is that you should talk with your attorney to see exactly how this ruling will affect the way you do business in your state if you are involved with any of these strategies. The actual FTC ruling can be found at:
http://www.ftc.gov/os/fedreg/2010/december/R911003mars.pdf
It seems that every time the government issues a new law or ruling there is much brouhaha in the industry with some “experts” claiming the end of investing as we know it. I see it as simple disclosures that the homeowner should understand anyway as just good business practice. So get the facts from your attorney and comply with the ruling – that’s all.
Anyone have additional info on MARS they would like to share?
View the original article here
Friday, August 12, 2011
Mortgage Rates Holding Steady at Lows for the Year
Mortgage rates remained little changed for the fourth straight week, according to Freddie Mac’s weekly Primary Mortgage Market Survey (PMMS).
The average rate on 15-year fixed mortgages held steady at 3.69 percent, while the 30-year fixed rate mortgage ticked up ever so slightly, to 4.51 percent from 4.50 percent. The 5-year adjustable rate mortgage (ARM) rate hit a new record low, dropping a smidge to 3.22 percent from 3.25. The previous record for 5-year ARM rates was set in November of 2010, at 3.25 percent.
“Interest rates on 30-year fixed mortgages hovered around 4.5 percent for the fourth consecutive week following mixed reports on the strength of the economy,” said Frank Nothaft, vice president and chief economist of Freddie Mac.
“There were some signs of improvement in the housing market,” Nothaft added. “However, much of the improvement reflected the seasonal increase in homebuying over the spring-summer period.”
View the original article here
The average rate on 15-year fixed mortgages held steady at 3.69 percent, while the 30-year fixed rate mortgage ticked up ever so slightly, to 4.51 percent from 4.50 percent. The 5-year adjustable rate mortgage (ARM) rate hit a new record low, dropping a smidge to 3.22 percent from 3.25. The previous record for 5-year ARM rates was set in November of 2010, at 3.25 percent.
“Interest rates on 30-year fixed mortgages hovered around 4.5 percent for the fourth consecutive week following mixed reports on the strength of the economy,” said Frank Nothaft, vice president and chief economist of Freddie Mac.
“There were some signs of improvement in the housing market,” Nothaft added. “However, much of the improvement reflected the seasonal increase in homebuying over the spring-summer period.”
View the original article here
Wednesday, August 10, 2011
Vanishing act: Your home insurance coverage is disappearing
There’s a disturbing nationwide trend of insurance companies chipping away at coverage for homeowners, says Amy Bach, executive director of the nonprofit United Policyholders consumer group. She says she’s disturbed by what she sees as policies becoming less adequate.
“We have been working on a number of fronts to try to reverse this tide, while alerting consumers so they have a chance to protect themselves,” Bach says. “We have been going to regulators from all over the country and telling them it is getting very messy out there in the homeowners’ market. Instead of blanket protection, it is more like Swiss cheese and there really are a lot of holes.”
“In much of the country, the basic home policy is just for fire and theft,” Bach asserts. “For everything else you have to have extra coverage.”
Public claims adjuster Steven Venook in Florida points out that mold used to be covered under standard home insurance policies; now it’s listed as an exclusion.
Were you unfortunate enough to have two simultaneous disasters hit your house, one of which is not covered? Expect your whole claim to be tossed out.
“The worst is the anti-concurrent causation clause,” says Robert Hunter, director of insurance for the Consumer Federation of America. “If you have two events happen and one is insured and one is not — for example if you have flood and wind — they now say they will no longer pay for either event. Courts have upheld it.”
Just ask Hurricane Katrina victims.
Have you checked your home insurance deductible recently? It’s the amount deducted from what your insurer is going to pay on a claim. There are a lot of ways the buck is being passed to you.
Insurers are expanding use of “percentage deductibles” on home insurance policies. Instead of a specified amount, your deductible becomes a percentage of the insured value of the home. For example, if your home is insured for $200,000 and you have a 2 percent deductible for windstorm damage, you will have to pick up the first $4,000 in repairs – that’s a lot more than a flat-dollar deductible like $1,000.Bach points out that certain perils, such as wind damage, now may require a separate deductible. Here again, you’re probably looking at a percentage deductible of 2 percent or higher.
Industry insiders say insurers are questioning claims more.
“There are numerous conditions under a policy that say that you, the policyholder, must prove your claimed damages,” Venook says.
In cases of water damage, for example, home insurance companies “are going out of their way to try to determine that the consumer was somehow at fault and negligent,” Venook adds. “Insurance companies are showing up with forensic engineers on day one.”
Vernook says that Florida is a state especially hit hard by exclusions and separate deductibles, and that insurance companies are too focused on making profits and denying home insurance claims.
Home insurance companies have no choice but to seek reasonable protections against rising costs and risks, particularly in regions where violent storms are common and damage to homes can be widespread, such as the Gulf Coast states, explains Loretta Worters, spokesperson for the Insurance Information Institute.
“In 1992, Hurricane Andrew caused about $15.5 billion in insured losses,” Worters says. “It was considered the most expensive storm ever for insurers. It soon became apparent that there were more people who were building in high-risk areas, that there were more frequent and more severe storms.”
Some of the largest insurers found it hard to buy reinsurance, which is insurance for insurance companies. According to Worters, they were forced to begin switching over to percentage deductibles, so that homeowners could take on a larger share of the financial burden. “There is only so much money in the coffers,” she says.
Claims adjuster Robert F. D’Amore, vice president of New York Public Adjusters Association, also views the changes as companies protecting their interests and keeping prices within the reach of consumers.
“Underwriters are statisticians,” D’Amore says. “Their job is to compute the likelihood of what the loss will be. It is all scientific. Tornadoes are usually limited in scope, but a hurricane could take out many miles of coastline. The windstorm deductible is part of how they make their rates. It is the only way they can keep insurance affordable.”
Consumer advocates say that with the changing home insurance landscape, it’s essential that you understand your home insurance policy’s limitations.
View the original article here
“We have been working on a number of fronts to try to reverse this tide, while alerting consumers so they have a chance to protect themselves,” Bach says. “We have been going to regulators from all over the country and telling them it is getting very messy out there in the homeowners’ market. Instead of blanket protection, it is more like Swiss cheese and there really are a lot of holes.”
“In much of the country, the basic home policy is just for fire and theft,” Bach asserts. “For everything else you have to have extra coverage.”
Public claims adjuster Steven Venook in Florida points out that mold used to be covered under standard home insurance policies; now it’s listed as an exclusion.
Were you unfortunate enough to have two simultaneous disasters hit your house, one of which is not covered? Expect your whole claim to be tossed out.
“The worst is the anti-concurrent causation clause,” says Robert Hunter, director of insurance for the Consumer Federation of America. “If you have two events happen and one is insured and one is not — for example if you have flood and wind — they now say they will no longer pay for either event. Courts have upheld it.”
Just ask Hurricane Katrina victims.
Have you checked your home insurance deductible recently? It’s the amount deducted from what your insurer is going to pay on a claim. There are a lot of ways the buck is being passed to you.
Insurers are expanding use of “percentage deductibles” on home insurance policies. Instead of a specified amount, your deductible becomes a percentage of the insured value of the home. For example, if your home is insured for $200,000 and you have a 2 percent deductible for windstorm damage, you will have to pick up the first $4,000 in repairs – that’s a lot more than a flat-dollar deductible like $1,000.Bach points out that certain perils, such as wind damage, now may require a separate deductible. Here again, you’re probably looking at a percentage deductible of 2 percent or higher.
Industry insiders say insurers are questioning claims more.
“There are numerous conditions under a policy that say that you, the policyholder, must prove your claimed damages,” Venook says.
In cases of water damage, for example, home insurance companies “are going out of their way to try to determine that the consumer was somehow at fault and negligent,” Venook adds. “Insurance companies are showing up with forensic engineers on day one.”
Vernook says that Florida is a state especially hit hard by exclusions and separate deductibles, and that insurance companies are too focused on making profits and denying home insurance claims.
Home insurance companies have no choice but to seek reasonable protections against rising costs and risks, particularly in regions where violent storms are common and damage to homes can be widespread, such as the Gulf Coast states, explains Loretta Worters, spokesperson for the Insurance Information Institute.
“In 1992, Hurricane Andrew caused about $15.5 billion in insured losses,” Worters says. “It was considered the most expensive storm ever for insurers. It soon became apparent that there were more people who were building in high-risk areas, that there were more frequent and more severe storms.”
Some of the largest insurers found it hard to buy reinsurance, which is insurance for insurance companies. According to Worters, they were forced to begin switching over to percentage deductibles, so that homeowners could take on a larger share of the financial burden. “There is only so much money in the coffers,” she says.
Claims adjuster Robert F. D’Amore, vice president of New York Public Adjusters Association, also views the changes as companies protecting their interests and keeping prices within the reach of consumers.
“Underwriters are statisticians,” D’Amore says. “Their job is to compute the likelihood of what the loss will be. It is all scientific. Tornadoes are usually limited in scope, but a hurricane could take out many miles of coastline. The windstorm deductible is part of how they make their rates. It is the only way they can keep insurance affordable.”
Consumer advocates say that with the changing home insurance landscape, it’s essential that you understand your home insurance policy’s limitations.
View the original article here
Tuesday, August 9, 2011
As Foreclosures Rise, Home Prices Plunge to Never Before Lows
The US is definitely going through one of its most challenging phases. Unemployment is at its peak and as people lose jobs, they are faltering on mortgage payments. Hence, foreclosures are becoming common. Home prices have now plunged to never before lows. Hence the market is attractive for first-time investors.
Take, for instance, Mandy Icenhower and James Shannon, her fiancée. They began searching for a home early last year. Around June 2008, they found a flat in Central Point. The couple liked the four bedroom space but ultimately did not buy it because they felt the price was too much. After a few months, they took a look at a foreclosed home in Pitt View Avenue. The house, which had once sold for $388,000 five years ago, was available to them at a price of $176,000.
Buyers like Icenhower are taking advantage of plunging prices. Even the tax credit of $8,000 being extended to first-time buyers and very low bank rates are great incentives. They have pushed sales of residential homes at Jackson County to unimaginable levels. The Southern Oregon Multiple Listing Service report has pointed out that home sales have registered a double-digit growth. Sales have nearly jumped 33.8 per cent as there have been gains in nine of the 11 areas that were tracked.
Short sales and foreclosures may be driving down prices but according to SOMLS, the average sales price of homes in Jackson County have gone up to $190,000 till the period ending July 31. As many as 495 single-family homes were sold between May and July compared to 370 sold during the same period last year.
It may be mentioned here that the deal between Icenhower and the property dealers had become slow because of a number of factors. To Icenhower the deal seemed months to mature. At times, she wanted to come out of it but is now glad that she did not. However, not every home buyer shares the same experience. Amy Warner too wanted to buy a home as prices are low. This is the ideal time to buy a house, she says. She had liked a home at Summer Place in Talent and the house was available to her within a period of two months. Now she has given the property on rent.
According to the SOMLS report, the county's median price fell by 15.1 per cent to $190,000 from $223,750.
View the original article here
Take, for instance, Mandy Icenhower and James Shannon, her fiancée. They began searching for a home early last year. Around June 2008, they found a flat in Central Point. The couple liked the four bedroom space but ultimately did not buy it because they felt the price was too much. After a few months, they took a look at a foreclosed home in Pitt View Avenue. The house, which had once sold for $388,000 five years ago, was available to them at a price of $176,000.
Buyers like Icenhower are taking advantage of plunging prices. Even the tax credit of $8,000 being extended to first-time buyers and very low bank rates are great incentives. They have pushed sales of residential homes at Jackson County to unimaginable levels. The Southern Oregon Multiple Listing Service report has pointed out that home sales have registered a double-digit growth. Sales have nearly jumped 33.8 per cent as there have been gains in nine of the 11 areas that were tracked.
Short sales and foreclosures may be driving down prices but according to SOMLS, the average sales price of homes in Jackson County have gone up to $190,000 till the period ending July 31. As many as 495 single-family homes were sold between May and July compared to 370 sold during the same period last year.
It may be mentioned here that the deal between Icenhower and the property dealers had become slow because of a number of factors. To Icenhower the deal seemed months to mature. At times, she wanted to come out of it but is now glad that she did not. However, not every home buyer shares the same experience. Amy Warner too wanted to buy a home as prices are low. This is the ideal time to buy a house, she says. She had liked a home at Summer Place in Talent and the house was available to her within a period of two months. Now she has given the property on rent.
According to the SOMLS report, the county's median price fell by 15.1 per cent to $190,000 from $223,750.
View the original article here
Sunday, August 7, 2011
New Self-build Off-plan Mortgages in Turkey
NEW Self-Build Off-Plan Mortgages in Turkey
Relatively low construction costs in Turkey make it possible to own a top bracket luxury home for a fraction of the acquisition cost elsewhere.
For example, a palatial 250 m2 floor plan will have a construction cost of £65 - 100,000. Land costs vary widely, but for a desirable location the total land and build cost would typically range £110-185,000.
Provided the design and location are right, these type of villas can generate a gross rental yield of 14-18% for the April to October season, and more near an all year golf resort development. In order to achieve these rental yields, plot design and location are the key.
For those with a penchant for the ultimate in both Interior and exterior finishing quality, the range of choice is unsurpassed. Superb artisan craftsmanship in wood and stone work is abundant to compliment exceptional design skills in the best tradition of the Sultans - imported Italian, French, or Istanbul chic. Turkey has long been a sought after treasury of rare marbles, ceramics, and metals for foreign markets, and the available choice would not disappoint a creative Italian designer's most extravagant ambitions.
For anyone satisfied with nothing less than an exceptional life-style standard, Turkey is one of the best kept secrets, and one of the most desirable locations anywhere in the world. Those in the know, include many from the ranks of the rich and famous, enjoying discreet privacy in select locations all along the Turkish Riviera. And why not? This coast line has been the idyllic home of innumerable civilisations since the dawn of time for very good reason, as anyone who has ever visited will attest to.
The rugged and lush green mountainous terrain, and endless small turquoise coves, make this coast line perhaps the best hide-away anywhere - which shouldn't come as surprise considering the history of piracy since ancient times. Never-the-less, the casual observer is inevitably surprised by the number of £2-10 million estates snuggled discretely out of sight and sound, so well concealed as they are.
Understanding the attractions of this segment, the Turkish Mortgage Centre are very pleased to introduce the first off-plan self-build mortgage in Turkey. The product enables a lifestyle investor to use 20 year mortgage finance for the land purchase and construction of the ultimate dream home, over a one or two year build cycle. “Turkish mortgage legislation is very specific, so we are very pleased to have succeeded with the bundling of services and development of this product, enabling lifestyle investors to finance a £1-2 million home for a build cost of a couple hundred thousand pounds - the sale value of a semi-detached house in the UK - an obviously enticing investment proposition.”
View the original article here
Relatively low construction costs in Turkey make it possible to own a top bracket luxury home for a fraction of the acquisition cost elsewhere.
For example, a palatial 250 m2 floor plan will have a construction cost of £65 - 100,000. Land costs vary widely, but for a desirable location the total land and build cost would typically range £110-185,000.
Provided the design and location are right, these type of villas can generate a gross rental yield of 14-18% for the April to October season, and more near an all year golf resort development. In order to achieve these rental yields, plot design and location are the key.
For those with a penchant for the ultimate in both Interior and exterior finishing quality, the range of choice is unsurpassed. Superb artisan craftsmanship in wood and stone work is abundant to compliment exceptional design skills in the best tradition of the Sultans - imported Italian, French, or Istanbul chic. Turkey has long been a sought after treasury of rare marbles, ceramics, and metals for foreign markets, and the available choice would not disappoint a creative Italian designer's most extravagant ambitions.
For anyone satisfied with nothing less than an exceptional life-style standard, Turkey is one of the best kept secrets, and one of the most desirable locations anywhere in the world. Those in the know, include many from the ranks of the rich and famous, enjoying discreet privacy in select locations all along the Turkish Riviera. And why not? This coast line has been the idyllic home of innumerable civilisations since the dawn of time for very good reason, as anyone who has ever visited will attest to.
The rugged and lush green mountainous terrain, and endless small turquoise coves, make this coast line perhaps the best hide-away anywhere - which shouldn't come as surprise considering the history of piracy since ancient times. Never-the-less, the casual observer is inevitably surprised by the number of £2-10 million estates snuggled discretely out of sight and sound, so well concealed as they are.
Understanding the attractions of this segment, the Turkish Mortgage Centre are very pleased to introduce the first off-plan self-build mortgage in Turkey. The product enables a lifestyle investor to use 20 year mortgage finance for the land purchase and construction of the ultimate dream home, over a one or two year build cycle. “Turkish mortgage legislation is very specific, so we are very pleased to have succeeded with the bundling of services and development of this product, enabling lifestyle investors to finance a £1-2 million home for a build cost of a couple hundred thousand pounds - the sale value of a semi-detached house in the UK - an obviously enticing investment proposition.”
View the original article here
Saturday, August 6, 2011
Personal Finance V - Understand Home Mortgages
Buy a home is one important decision that many people have to make sometime in their life. If you decide to buy a home now, there are many things you have to know and many papers have to be signed before the home you brought can be registered to your name.
When home, house or real estate is used to secure a loan, the borrower signs a contract called a mortgage. It is a contract refers to the borrower as the mortgagor, and the lender is called the mortgagee. The gradual repayment over many years of a mortgage, usually 15, 20, 30 years including the accrued of interest, is called amortization and equity of a property can be estimated by finding a fair market value price and subtracting the outstanding mortgage debt.
In this article, we will discuss types of mortgages.
Understand First and Second Mortgages a) If a property may have more than one mortgage on it, then the mortgages will be ranked as first, second,...according to the order they were recorded at the registry office.
b) If the first mortgage on a property is paid off by the home borrower, the second mortgage automatically becomes the first mortgage.
c) If the home buyer defaults on the mortgage payments and the property will be foreclosed and resell, after first mortgage has been paid, the claims of the second mortgage would be settled.
d) Usually, home buyer requires to provide a down payment of at least 25% of the property's value.
Conventional Mortgage a) A conventional mortgage is a type of mortgage offered by all banks, trusts and credit unions requiring the home buyer to have a down payment of at least 25% of the property value.
b) Privately arranged conventional mortgage, the down payment can be whatever the parties involved agreed upon.
Insured Mortgages a) If the mortgage is approved, financial institution may require home buyer to have addition life insurance equal to the amount of mortgage to protect the owner as well as financial institutions in case of home buyer sudden death before paying off the mortgage.
b) If the down payment is less than 25% of the property value, financial institution may require any amount less than the requirement of 25% to be insured.
Mortgage Brokers Mortgage brokers specialize in making contact between those who have funds to invest in mortgages and those who need a mortgage. The rates for arranging a mortgage usually is 0.5% or higher of total amount borrowed is payable by the borrower at the time of closing.
Ratios to calculate home buyer qualificationThe mortgage lender will calculate 2 ratios
a) Gross debt service
It is the percentage of the buyer's annual gross income (usually not exceed 32%) needed to cover the mortgage payments, plus municipal taxes.
b) Total debt service
It is the percentage of annual income needed to cover mortgage payments, taxes, heating, and consumer debts, usually not exceed 38%.
View the original article here
When home, house or real estate is used to secure a loan, the borrower signs a contract called a mortgage. It is a contract refers to the borrower as the mortgagor, and the lender is called the mortgagee. The gradual repayment over many years of a mortgage, usually 15, 20, 30 years including the accrued of interest, is called amortization and equity of a property can be estimated by finding a fair market value price and subtracting the outstanding mortgage debt.
In this article, we will discuss types of mortgages.
Understand First and Second Mortgages a) If a property may have more than one mortgage on it, then the mortgages will be ranked as first, second,...according to the order they were recorded at the registry office.
b) If the first mortgage on a property is paid off by the home borrower, the second mortgage automatically becomes the first mortgage.
c) If the home buyer defaults on the mortgage payments and the property will be foreclosed and resell, after first mortgage has been paid, the claims of the second mortgage would be settled.
d) Usually, home buyer requires to provide a down payment of at least 25% of the property's value.
Conventional Mortgage a) A conventional mortgage is a type of mortgage offered by all banks, trusts and credit unions requiring the home buyer to have a down payment of at least 25% of the property value.
b) Privately arranged conventional mortgage, the down payment can be whatever the parties involved agreed upon.
Insured Mortgages a) If the mortgage is approved, financial institution may require home buyer to have addition life insurance equal to the amount of mortgage to protect the owner as well as financial institutions in case of home buyer sudden death before paying off the mortgage.
b) If the down payment is less than 25% of the property value, financial institution may require any amount less than the requirement of 25% to be insured.
Mortgage Brokers Mortgage brokers specialize in making contact between those who have funds to invest in mortgages and those who need a mortgage. The rates for arranging a mortgage usually is 0.5% or higher of total amount borrowed is payable by the borrower at the time of closing.
Ratios to calculate home buyer qualificationThe mortgage lender will calculate 2 ratios
a) Gross debt service
It is the percentage of the buyer's annual gross income (usually not exceed 32%) needed to cover the mortgage payments, plus municipal taxes.
b) Total debt service
It is the percentage of annual income needed to cover mortgage payments, taxes, heating, and consumer debts, usually not exceed 38%.
View the original article here
Friday, August 5, 2011
Greece Buys Time for Insolvent Bankers and Delusional Politicians
Last week, the Greek parliament voted by a narrow margin to pass an economically crippling austerity plan of some $40 billion in return for some $159 billon of fresh liquidity injections. Although many hailed the event as a needed first step on a long road to recovery, I believe the austerity program will make a bad situation worse. It is a flawed solution that stems from a false premise: that Greece should continue to be part of the euro zone, and continue to use the euro as its currency.
To return to national economic viability Greece must abandon its use of the euro currency, which has become a financial straight jacket. Nevertheless, Greek politicians may have agreed secretly to accept the austerity in name only, in return for a liquidity bailout that will buy time for European unity to solidify. Once political unity is restored, we should expect more massive financial transfers from northern countries, present day Germany and Britain, to the subsidized southern regions.
As its price to maintain the status quo, central bank lenders, including the IMF and ECB, are demanding that Greece sell off some $72 billion of its national assets. The likely buyers will be international companies based in the EU, U.S. and possibly even China. Such a fire sale can't restore the Greek economy, but it gives the appearance that the Greeks are paying something for their loans, and it provides cover to northern European politicians who are feeling increasing frustration from voters who have been continually asked to foot the bill for southern European profligacy.
In contrast, Greece could have decided instead to abandon the euro and devalue a new Greek currency unilaterally to pay its debts. This is the typical remedy for marginal economies that have gotten into debt quicksand. Most certainly, devaluation would reduce Greece's standard of living by slashing the purchasing power of Greek citizens. But in recompense it would boost exports and improve Greece's balance of payments. The Greeks could then begin the hard work of restoring their economy while maintaining ownership of their national assets.
However, if Greece was to abandon the euro, the shaken confidence could lead to a euro collapse, bringing to an end the idealistic dreams of a unified Europe. Politicians are desperate to avoid this no matter what it costs their increasingly subjugated peoples.
In addition, a Greek debt default would trigger massive losses on the books of EU banks, many of which had been 'persuaded' by their governments to invest in Greek debt. Also, major U.S. banks have profited hugely by selling Credit Default Swaps (CDSs) to insure these loans. Indeed, they have insured some $32.7bn of Greek debt alone. Furthermore, U.S. banks have invested directly in European sovereign debt. In other words, the financial pressure to keep Greece from defaulting is enormous.
The euro is the world's second largest reserve currency. Its dissolution would cause huge shockwaves in a currency system that already is causing some investors to hedge in precious metals. A collapse of the euro could likely send gold, silver and most food commodities skywards in price. As a result, politicians and the bankers share a common interest in saving Greece from debt default and so salvaging the euro, regardless of the effect on the Greek people.
Greece's vote to accept austerity has yet to be enacted in specific cuts and taxes, but when they do, expect public resistance that will dwarf what we have seen thus far. At that point we can expect this debate to be revisited. I believe that when the pressure becomes too intense, Greece may in fact return to the Drachma.
I have consistently argues in these columns that a sovereign debt crisis would develop into a possible currency collapse. The beginnings of this endgame can be seen today on the streets of Athens.
View the original article here
To return to national economic viability Greece must abandon its use of the euro currency, which has become a financial straight jacket. Nevertheless, Greek politicians may have agreed secretly to accept the austerity in name only, in return for a liquidity bailout that will buy time for European unity to solidify. Once political unity is restored, we should expect more massive financial transfers from northern countries, present day Germany and Britain, to the subsidized southern regions.
As its price to maintain the status quo, central bank lenders, including the IMF and ECB, are demanding that Greece sell off some $72 billion of its national assets. The likely buyers will be international companies based in the EU, U.S. and possibly even China. Such a fire sale can't restore the Greek economy, but it gives the appearance that the Greeks are paying something for their loans, and it provides cover to northern European politicians who are feeling increasing frustration from voters who have been continually asked to foot the bill for southern European profligacy.
In contrast, Greece could have decided instead to abandon the euro and devalue a new Greek currency unilaterally to pay its debts. This is the typical remedy for marginal economies that have gotten into debt quicksand. Most certainly, devaluation would reduce Greece's standard of living by slashing the purchasing power of Greek citizens. But in recompense it would boost exports and improve Greece's balance of payments. The Greeks could then begin the hard work of restoring their economy while maintaining ownership of their national assets.
However, if Greece was to abandon the euro, the shaken confidence could lead to a euro collapse, bringing to an end the idealistic dreams of a unified Europe. Politicians are desperate to avoid this no matter what it costs their increasingly subjugated peoples.
In addition, a Greek debt default would trigger massive losses on the books of EU banks, many of which had been 'persuaded' by their governments to invest in Greek debt. Also, major U.S. banks have profited hugely by selling Credit Default Swaps (CDSs) to insure these loans. Indeed, they have insured some $32.7bn of Greek debt alone. Furthermore, U.S. banks have invested directly in European sovereign debt. In other words, the financial pressure to keep Greece from defaulting is enormous.
The euro is the world's second largest reserve currency. Its dissolution would cause huge shockwaves in a currency system that already is causing some investors to hedge in precious metals. A collapse of the euro could likely send gold, silver and most food commodities skywards in price. As a result, politicians and the bankers share a common interest in saving Greece from debt default and so salvaging the euro, regardless of the effect on the Greek people.
Greece's vote to accept austerity has yet to be enacted in specific cuts and taxes, but when they do, expect public resistance that will dwarf what we have seen thus far. At that point we can expect this debate to be revisited. I believe that when the pressure becomes too intense, Greece may in fact return to the Drachma.
I have consistently argues in these columns that a sovereign debt crisis would develop into a possible currency collapse. The beginnings of this endgame can be seen today on the streets of Athens.
View the original article here
Wednesday, August 3, 2011
Finances in 55 Seconds: Check Beneficiary Designations
When it comes to what you want done with your money after you’re gone, it’s important to consider an estate plan. Estate planning is an essential part of making sure your money goes where you want it to. Proper estate planning can limit the amount of time your estate spends in probate — and reduce the fees and taxes that are paid on what you leave behind.
Estate planning sounds daunting, but it can be broken down into smaller pieces to make it more manageable. One of the easiest estate planning activities you can do is check your beneficiaries. Indeed, this can be done in under 55 seconds:
List accounts with beneficiaries: The first thing you need to do is list the accounts likely to have beneficiaries. These accounts include your life insurance policies, annuities, retirement plans, and some bank accounts. (18 seconds)
Gather the paperwork: Next, gather the paperwork associated with the accounts. Hopefully you have the papers stored in a safe location that you can access fairly easily. You can also call your HR representative if you have a company retirement plan. (20 seconds)
Skim the beneficiaries: You should be able to quickly look through the paperwork to find the beneficiaries. It’s information that is usually found in a section with a prominent heading. Make a note of the beneficiaries. (17 seconds)
Now, of course, it is time to figure out how to change beneficiaries. A major life change, such as marriage or divorce, or the death of one of the beneficiaries, usually means that a change needs to be made. You should find out the process for making that change, and fill out the necessary paperwork. This is extremely important because who you have listed as a beneficiary trumps what is i your will in most cases. This means that if your will states that your current husband should get the assets in an account, but the beneficiary is still your ex, it’s your ex who will get the money. Make sure that you go through all of your accounts and update beneficiary information.
Realize that you might not be able to make changes on some accounts without closing the account and opening a new account. While you are about it, you should also double check the type of bank accounts you have. Some deposit accounts don’t allow for automatically passing your assets on to survivors. This means that when you die, it goes to probate to be considered as part of your estate. Find out from your bank what sort of restrictions can limit the way your account is passed to another person. You can then make the necessary arrangements to change matters, or open a different account.
You want to make sure that your money will be used according to your wishes — or at least passed on to your preferred heirs. In order to ensure that this happens, it is important that you check beneficiary information regularly to make sure that it is accurate and up to date.
View the original article here
Estate planning sounds daunting, but it can be broken down into smaller pieces to make it more manageable. One of the easiest estate planning activities you can do is check your beneficiaries. Indeed, this can be done in under 55 seconds:
List accounts with beneficiaries: The first thing you need to do is list the accounts likely to have beneficiaries. These accounts include your life insurance policies, annuities, retirement plans, and some bank accounts. (18 seconds)
Gather the paperwork: Next, gather the paperwork associated with the accounts. Hopefully you have the papers stored in a safe location that you can access fairly easily. You can also call your HR representative if you have a company retirement plan. (20 seconds)
Skim the beneficiaries: You should be able to quickly look through the paperwork to find the beneficiaries. It’s information that is usually found in a section with a prominent heading. Make a note of the beneficiaries. (17 seconds)
Now, of course, it is time to figure out how to change beneficiaries. A major life change, such as marriage or divorce, or the death of one of the beneficiaries, usually means that a change needs to be made. You should find out the process for making that change, and fill out the necessary paperwork. This is extremely important because who you have listed as a beneficiary trumps what is i your will in most cases. This means that if your will states that your current husband should get the assets in an account, but the beneficiary is still your ex, it’s your ex who will get the money. Make sure that you go through all of your accounts and update beneficiary information.
Realize that you might not be able to make changes on some accounts without closing the account and opening a new account. While you are about it, you should also double check the type of bank accounts you have. Some deposit accounts don’t allow for automatically passing your assets on to survivors. This means that when you die, it goes to probate to be considered as part of your estate. Find out from your bank what sort of restrictions can limit the way your account is passed to another person. You can then make the necessary arrangements to change matters, or open a different account.
You want to make sure that your money will be used according to your wishes — or at least passed on to your preferred heirs. In order to ensure that this happens, it is important that you check beneficiary information regularly to make sure that it is accurate and up to date.
View the original article here
Monday, August 1, 2011
Update Your Jewelry Appraisals: Insurance Coverage
All the news over the past year (or three) about the skyrocketing price of gold and silver has probably gotten your attention. Maybe you have a few pieces of jewelry you no longer like (or perhaps an earring that has lost their bud) and are considering selling. It’s natural to try to get a little more out of your stuff, especially if you don’t use them anymore.
One thing that some people, ourselves included, tend to forget to do on a regular basis is get our jewelry appraised to ensure our insurance coverage is sufficient. As gold and silver prices rise, you may discover that your insurance coverage is no longer enough to cover your valuables.
I would recommend getting your jewelry re-appraised every four or five years, unless you’ve seen a big run-up in commodity prices. With precious metals becoming more valuable as of late, now is a good time to re-appraise your jewelry unless you’ve already done so in the last few years. The easiest way to check is to review your appraisal paperwork to see when it was done and how your piece was valued. If you it was appraised last year, then the higher commodity prices were used. If it was done ten years ago, you might want a refresher.
While you’re at it, you should be regularly updating your home inventory too.
View the original article here
One thing that some people, ourselves included, tend to forget to do on a regular basis is get our jewelry appraised to ensure our insurance coverage is sufficient. As gold and silver prices rise, you may discover that your insurance coverage is no longer enough to cover your valuables.
I would recommend getting your jewelry re-appraised every four or five years, unless you’ve seen a big run-up in commodity prices. With precious metals becoming more valuable as of late, now is a good time to re-appraise your jewelry unless you’ve already done so in the last few years. The easiest way to check is to review your appraisal paperwork to see when it was done and how your piece was valued. If you it was appraised last year, then the higher commodity prices were used. If it was done ten years ago, you might want a refresher.
While you’re at it, you should be regularly updating your home inventory too.
View the original article here
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