I believe this will remain in place for some time until a major event (likely a negative one) pushes the markets into a real move.  The major event could be a soveriegn default or something like a credit downgrade for the US.  Perhaps, it could be a failed Treasury auction.  We will see.

Until then, it makes sense to be patient and stick to your strategy.  You do have a strategy don’t you?

This post made possible by Airmiles cards

No related posts.

Related posts brought to you by Yet Another Related Posts Plugin.

Raising a child can be an expensive proposition. According to recent statistics from the Department of Agriculture, the average cost for raising a child to age 18 stands at over $260,000. Since this figure is an average, it does not account for those unplanned expenses that can be a severe drain on your finances. Getting your son or daughter to the local elementary school may be easy, but what about when they need to get to college on their own? A car is a necessity, not to mention the astronomical cost of college tuition. Your seventeen or eighteen year old child may be the apple of your eye, but they represent a veritable profusion of expensive investments in both their present and future, especially as parents are just entering the twilight of their careers and looking forward to retirement. How should parents balance these unplanned expenses while simultaneously ensuring a comfortable retirement?

The answer may be a life insurance policy for your teenage child. Some types of life insurance accounts have the option of accruing cash value. In other words, the policy not only becomes insurance in case of death, but insurance in case of unplanned or large expenditure that may not fit your budget. As many parents look towards retirement, they want to ensure that their retirement account is protected against unnecessary risk but also want to ensure its value to be as high as possible. Many retirement accounts lost some amount of value during the economic crash of 2007 and 2008, and the last thing that an account holder needs is an unplanned expense to further drain retirement assets. A permanent life insurance policy may be the key to financial freedom for both parents approaching retirement and children entering adulthood.

Life insurance comes in two distinct forms: term life and permanent life. Term life insurance is purchased for a specific period of time with a renewal option at the end of the specified term. This type of policy only pays a death benefit. A permanent life insurance policy offers more flexibility than a term policy. A permanent policy, as its name implies, has no fixed time limit of coverage as long as your monthly premiums are paid. The main difference, though, is that a permanent life insurance policy builds cash value over time that can be borrowed against. This is done by placing a portion of your monthly premium into a tax-deferred investment account. The policyholder has access to this account after a specified accumulation period after purchase to allow the account to accrue sufficient cash value.

Buying a permanent life insurance policy for your child can be a first step toward financial freedom in retirement. Your retirement savings are protected against the unplanned expenses of raising a teenager and can teach a valuable lesson in financial responsibility. Your son or daughter has the option, once a loan is taken against the account, of either paying or not paying back the account, in which case the cash value is subtracted from the face value of the insurance policy. The risk/reward potential is high, giving a true sense of financial responsibility while freeing your retirement savings from the burden of unexpected expenses.

Written by Joanna Cliff.

No related posts.

Related posts brought to you by Yet Another Related Posts Plugin.

If you’re the owner of a relatively new automobile you might be in luck when times are so tough that an emergency expenditure has temporarily put you in the poorhouse. Title loans can be a great last-option for getting the money you need right away. Now I know what you’re thinking: car title loans are notorious for excessive interest rates and shady business dealings. Admittedly the car title loans most major American cities have to offer are usually hard to sift through to discern the legitimate lenders from loan sharks. But with hard work and proper research locating one that is renowned for honesty and easy payment systems is not impossible. More importantly, understanding the risks of car title loans versus the benefits is essential to avoiding having to return payment with three-digit interest rates.

First off acknowledge why you’re limited to title loans in the first place. Typically folks are forced to get a title loan to pay for an emergency expense because they’re unable to secure a more traditional line of credit like a bank loan or credit card due to poor credit history or borrowing caps. Understand that the excessively high interest rates of title loans are a direct result of the same conclusion that banks and other lenders come to about you as a potential risk. Banks can certainly lend those with bad credit money with a predatory interest rate attached but there’s no gain for them to do so and that’s why they don’t.

There’s gain for those who provide title loans because they’re intentionally marketed after folks with limited means who can’t go anywhere else. They have nothing to lose by charging interest rates they justifiably apply based on the increased risk of lending to those with poor credit. Understanding the incentive of the car title loan provider is essential. Knowing it means you’re much more likely to become aware of a sketchy deal and avoid falling for a trap. It also allows you to make your final decision based on more responsible gatherings of information.

You must prepare a plan to pay the loan back before massive interest rates take effect. Crunch the numbers and if you can’t cover the debt in full when the next paycheck arrives then don’t bother. Chances are though with enough moving around in the bank account you can get the average title loan covered in at least two pay periods, however even by then you might be paying an extra $100-300 for interest.

Car title loans might be the only option you have. Don’t let it be the last option you lose by getting yourself into more debt by not being responsible before agreeing to a title loan. Researching your decision before making it is simple common sense.

No related posts.

Related posts brought to you by Yet Another Related Posts Plugin.

Longer Life Spans:

This is, unfortunately, one of the biggest reasons that insurance costs keep going up. People, on average, live longer that the previous generation and it’s the case as the years go on. America has it’s largest population in history getting ready to retire and this huge group of citizens will require increased medical attention at a time when costs are going up across the board.

High Cost of R&D:

It’s the hope that through research and development that we can, ultimately, bring down the costs and increase the quality of care but it’s also costly. It’s the development of highly specialized drugs and high-tech equipment and facilities that has driven up the costs of insurance to such a high level. The way for medicine is forward, not backwards. We don’t want to defund essential programs that could prove essential to medical breakthroughs. It’s likely through private funding and development that we’ll be able to start taking the cost of research investment off the backs of the citizens.

Inadequate Coverage:

Many people simply can’t afford the healthcare plans that they’re on. Even further, some policies don’t cover ancillary costs that, individually are manageable, add up over time and become overwhelmingly burdensome. Many have had to invest in medicare supplements just to offset the portions of their costs that aren’t covered. Unfortunately this is just the nature of things but it’s become costly for individuals to look for alternative ways to close the gaps in their inadequate healthcare plans.

Possible solution:

Much of the cost of Medicare and Medicaid are considered entitlement programs and it’s one of the biggest priorities of our government. One of the only ways around this is to streamline the process that’s bogged down in paperwork and government inefficiency. Through implementing new software programs and technological approaches, it’s hoped that our country can bring down the costs of waste and an apparent lack of efficiently that’s drowning our system in unnecessary costs.

No related posts.

Related posts brought to you by Yet Another Related Posts Plugin.

Start Retirement Planning Today

Even if you’re not able to get in on a 401K or other large scale retirement investment plan, just use a retirement calculator to figure the practicality of any retirement plans you do have. Retirement is years away and there will of course be other priorities like college funds and insurance, and maybe that makes you avoid the issue. But those are actually good reasons to get started on a retirement plan now. Otherwise you may not have the time or the money to worry about it until it’s too late.

Keep Track of Expenditures

While doing it obsessively long-term can be annoying, take a month and keep very specific track of where you spend your money. Afterwards create a sound budget based off that. Then in the following months and years establish a general record keeping system to make sure spending doesn’t get out of control without you knowing it.

Save Everything You Can

The aforementioned budget evaluation is as much about preventing debt from creeping in as much as it’s about finding the money to put aside for almost the same reason. All it takes is a car problem or a pet with a broken limb to put you behind on bills for a month which can set into stone some unfortunate future side effects. Even if it’s less than a hundred dollars a month you can harvest from your pay after bills and a life are factored in, that’s still enough over time to assist in the inevitable emergency if one should ever arise.

Don’t hesitate to get started on planning a financial future no matter how young you happen to be. These days it’s not a certainty you’ll be even able to get a job so count any opportunity that comes your way as a blessing not a right. Know your habits, consider the future, and expected the unexpected.

Related posts:

1. Life Insurance… Not Just For Death Anymore At first glance, the decision to purchase a life insurance...

Related posts brought to you by Yet Another Related Posts Plugin.

A. Lack of purpose

Wealth creation is a journey, and an arduous one at that. There are absolutely no quick fixes, unless you win the state lottery or inherit a large sum of cash. Even these things do not guarantee you success.

Without a life purpose, your chance of financial success is small and unrewarding due to lack of meaning.

Why do you want to build wealth? What does financial freedom mean to you? These are important questions as wealth creation takes time, commitment, patience and requires you to break old habits.

Start by writing your answers down on a sheet of paper. Select the reasons that have the most meaning to you and commit them to memory. Say them out loud every day and visualise success.

Wealth creation must be done for the right reasons and not for the sake of wanting to be called a millionaire.

This may come as a surprise to you, but money plays a small role. In actual fact, money is a byproduct of leading a fulfilled and happy life.

Wealth creation is about freedom:

• Freedom to spend more time with your family
• Freedom to give your children the very best
• Freedom to live your life the way you see fit.

Your number one goal now is to identify your life’s purpose or passion, the one thing that will make you literally bounce out of bed every morning or help you create an extraordinary life in your eyes.

B. Lack of financial literacy

Financial literacy is one of the most important components of wealth creation. It refers to a set of skills or knowledge base that enables you to make an informed decision about money.

It is not about handing your money over to a broker, financial planner or asset manager hoping that he or she will do wonders with your bottom line.

Wealth creation begins with you and ends with you. It is about taking charge of your financial future and giving direction to the financial experts, not the other way around.

Think of it this way. You are the chief executive officer and chief financial officer of your future.

Where do you begin? Start educating yourself in the three major areas that make up financial literacy.

1. Surplus building
2. Asset selection and strategy
3. Passive income business cycle

C. Lack of business planning

Wealth creation is a massive project to say the least. It is a long term process which requires planning and measurable goals and objectives.

You do not have to invent something brand new or introduce a radical new technology to achieve financial freedom, unless you plan to do so.

The easiest way to create wealth is to take existing strategies and build business plans around them.

For example, property has traditionally been positioned by society as an alternative investment to the stock market. But what if you take property and make a business out of it? Imagine owning 50 properties that each generates $800 in monthly rental income. That’s a total passive income of $40,000 each month.

Information marketing is another example. Imagine selling your expert knowledge, experiences, life story or other information to niche markets online, without doing any physical selling. The idea of online business is not new, but it requires a specific plan to develop a business that works for you.

Without one, you may as well use your spare cash to buy yourself an investment product like a mutual fund or retirement annuity.

Your take home lessons

1. Wealth creation is a continuous learning process which requires action on your part.
2. Financial freedom is achieved by building a passive income business that supports your desired standard of living.

Finally, if you want to learn more about what it takes to build true wealth, visit http://waytowealthpro.com. Also download your free ‘Rule of 6′ ebook, which outlines the six golden rules of building wealth.

No related posts.

Related posts brought to you by Yet Another Related Posts Plugin.

While I’m a firm believer in the long-term fundamentals of gold and silver, mainly because I’m a firm believer in the long-term stupidity of our politicians and Federal Reserve, it is tough to buy right now – especially silver.  Silver the last six months has gone up over 100%.  A crazy move.

Percentage-wise, gold has not has nearly the same run in recent months as silver.  Therefore, if I’m looking for exposure, I’m probably buying gold right now.

In my opinion, the better approach is to maybe buy a couple silver ounces (physical) at each paycheck.  Ease into a position, and view it more like a form of savings rather than investing (as you view buying stocks).

I think both may have a long way to run long-term.  As long as real interest rates are negative, capital will flow into alternative “currencies” which is exactly what gold and silver are.  If your cash is losing purchasing power in a bank account, gold and silver should continue to do well.

No related posts.

Related posts brought to you by Yet Another Related Posts Plugin.

Paying $4.20 for a gallon of gas is absurd; I’m already dreading thinking about gas prices in southern California in the summer.  There used to be a time when I didn’t really have to factor gas money into my monthly budget — $20 a couple of times a month was all I needed to get me pretty much anywhere I needed to go.

These days, I actually have to factor gas money in alongside groceries and other bills I have to pay.  This makes saving money to pay off my many other bills that much more of a hassle.  Honestly though, I probably wouldn’t mind it too much if not for a credit card bill that demands my attention every month, and it seems I’m not alone on this.

Many Americans have financial situations similar to my own: a little bit of debt that’s manageable on its own, but with the rising cost of gas starting to demand a good chunk their budget, that minor debt is slowly turning into a monster.

I mentioned that I paid over $4 per gallon for gas in SoCal, and the rest of the country isn’t far behind that price point.  I saw a story on ABC News last night, stating that the average price of gas had climbed to $3.89/gallon, and we aren’t even in the “driving busy season” yet.

In total, gas prices are 32% higher now than they were a year ago and continue to skyrocket; Americans are paying roughly $340 million more per day than they were this time last year.  And that’s factoring in the many consumers like me, who are cutting their gas expenses back.

Now for the good news

Believe it or not, there is a shiny side to this coin.  All of these doom and gloom predictions may have a small amount of truth buried beneath the hyperbole, but there is a bit of opportunity to be found here.

As supply and demand begins to dry up for not just gas, but cars and even housing as well (it’s not like those markets are in any better shape), prices will begin to drop as well, which could open the door to some real bargains you might not have normally had available to you.

In the opinion of MyCreditGroup, now would be the perfect time to start doing all you can to get your finances back under your control, including your major credit and debt accounts.  People with higher-than-average credit scores and pristine credit reports always have the best chances at getting a house, car, or new line of credit at better rates than those who don’t.

If you start putting work in now to fix your credit score, you could ensure that you’re among the lucky few who actually come out ahead of this crisis.  At least you’ll be able to afford a full(er) tank of gas.

This is a guest post from John LeBlanc, writer for MyCreditGroup, a leading credit services company.

No related posts.

Related posts brought to you by Yet Another Related Posts Plugin.

Rather than fixing the systemic issues, our stupid politicians point towards things like protecting consumers from payday loans.  Not only is this a ridiculous thing for the government to be addressing, but the truth is that there is a real market for such products even if they charge high rates on the people that use them.

Sometimes, there are real situations that require circumstances where you need cash.  These products that politicians want to demonize actually serve a real purpose.

The harsh reality is that sometimes tough circumstances come about in life.  Sometimes, you need cash and you have nowhere to turn.  There are some solutions to these circumstances, and one of them is a cash advance in order to get fast cash.

While these options are not necessarily ideal, you should recognize this and instead keep a strong emergency fund of cash reserves.  When rough times hit, you can leverage your cash reserves rather than get into debt.

I would much prefer our politicians to stop trying to legislate individual behavior and allow consumers to make their own decisions.  I’d prefer our politicians to address the real systemic issues, like a system where the financial industry and the government are too cozy.  A system where those who head the government are being paid by those who head the financial industry.  A system where gains are privatized and losses are socialized.  A system where the tax payer is screwed and the executives make out like bandits.

Let people live their lives, and stop bailing out those who already are worth billions.  Now, that is some change we can believe in.

No related posts.

Related posts brought to you by Yet Another Related Posts Plugin.

Property is considered one of the safest investments you can make to increase your asset base, and make your money work harder for you. However, this can also lead many investors into the trap of an unsuccessful property investment, because they do not put in the time, effort and preparation needed, thinking it is going to be easy and fail-safe.

To make property investment a success, there are a lot of important tips you need to heed and information and advice you need to understand in order to start your investment journey on the right foot, and make that journey a prosperous one, with the least amount of angst.

To start you on the road to successful property investment, here are five tips which will inform you of common investment pitfalls, and spur you onto building a successful investment portfolio.

1 – Choose a good value property

There is a popular real estate adage that ‘you make your money when you buy, not when you sell’ and this makes the first step of your investment journey one of the most important. When you choose a property which is good value now, and has potential for good growth later, you are well on your way to a successful investment.

The key to finding a value for money investment property is to not get attached, or emotional in your search. Don’t get caught up by the beautiful gardens and neglect to have an inspector check the structural soundness of the building. You’ll also need to make sure you choose an average property, with a wide appeal. You don’t one which is too modern, or one which is too classic for example, instead make sure the property will appeal to the widest demographic possible, because a good value property is of minimal use to you if you can’t rent it out.

When considering your tenants, look at a property where you can charge a rental price which is as close as possible to the costs and repayments to maintain the property. This is another way to ensure value, because you don’t have to overextend your own finances. Of course, make sure you know the property isn’t overvalued due to high demand because of the market or the suburb. With a high asking price, higher than the true value of the property, you leave little room for capital growth for some time.

If you are looking for value at tax time too, look for a newer property, ideally brand new, as there is more opportunity to claim for more depreciation, and there are likely to be fewer maintenance issues. A new property with reliable wiring and a brand new solid structure is also more appealing to tenants.

2 – Keep your investment records separate

There is no denying that the fees and charges to purchase a home, and even an investment home, can be substantial and they don’t stop at the loan application, stamp duty or inspection fees. A property can eat up your funds through maintenance, loan repayments and council rates and other bills, and it is important that these expenses don’t eat into your investment returns.

Instead, make sure to keep detailed records of everything you spend on your investment, and keep that spending separate from your personal accounts at all times. You don’t want to jeopardise your ability to claim expenses because you have muddied the water with your personal finances.

It is important to record everything because you can claim everything – all costs to do with purchasing and maintaining your investment property, plus the depreciation of the asset and fixtures.

3 – Have a clear strategy

Knowing what you want from your investment and when you want it will help you with your choice of investment property. Therefore, decide if you are investing for:
•       Capital growth. This means you’re in this investment for the long haul and want to find an affordable property in an area with huge growth potential so that down the track you can sell your investment, or use the equity to move onto bigger and better things.
•       Rental income. It is possible to find investment properties where the rent covers and exceeds the expenses of the loan and maintenance and rental income can supplement your own income, or fund your retirement. In this instance you need an affordable property and a small loan and units and apartments are the most likely to yield a rental income.
•       Renovate and sell. If you’re planning to flip your investment property you’re looking for a home which has seen better days, needs some superficial work done, and has been able to convince the other buyers that it’s too much hard work. In this instance you can pick up a run down property for a great price, spend a little prettying it up and sell it for a profit and get your money back quite quickly.

4 – Can you afford your investment now?

If you’re in the property investment market for capital growth and tax deduction benefits then you know you’re in for a long term investment, and plan on significant gains later on. However, the mortgage on your investment property has to be paid now, every month, before you can make any gains.

Therefore, look at your budget and make sure you can cover the mortgage repayments on your own home, and that you can keep a healthy balance in your personal emergency account. Then look at how you can cover the rental mortgage and expenses with what’s left over, also accounting for a rental emergency account because you will need to fix any issues right away to keep your tenants happy.

5 – Know your loan options

Choosing the right investment loan can help you better manage your property and expenses, and help make your investment venture a success. For example, you can choose an investment loan which is:
•       Interest only. This means you are paying back only the interest which has accumulated over the month, and none of the principal amount. You are not getting any closer to owning the property, but in investments, that is often not the goal anyway. Instead, you’re enjoying lower monthly repayments and making it easier to make your tax claims, because you can claim the entire amount of your repayment.
•       Linked to an offset account. The funds in an offset account reduce the amount of interest payable on a loan by offsetting against the principal loan amount. Not only will an offset account reduce your interest charges and mortgage repayments, it will also give you a dedicated account in which you can keep your emergency investment funds handy, and separate from your personal finances.
•       A line of credit loan. A line of credit loan does not have a set term, and instead is a revolving approved credit amount which is available to you when you need it. This means you can draw down on your investment loan line of credit for emergency expenses, and you can even draw down to cover your repayments until you reach your limit.

No related posts.

Related posts brought to you by Yet Another Related Posts Plugin.