Archive for Money Management
08.26.08
Posted in Credit Management, Loans, Money Management at 2:53 pm by
Different lenders charge different fees. See mortgage loan for residential mortgage lending, and commercial mortgage for lending against commercial property. Arranging a mortgage is seen as the standard method by which individuals and businesses can purchase residential and commercial real estate without the need to pay the full value immediately. It is a transfer of an interest in land, from the owner to the mortgage lender, on the condition that this interest will be returned to the owner of the real estate when the terms of the mortgage have been satisfied or performed.
Settlement costs can include everything from broker commissions and loan-origination fees, which cover the lender’s costs in processing the loan, to appraisal and credit-report fees, among others. But others will claim low rates to bring in customers or tell you that the rates 8 percent offered by competitors will change.
While a mortgage in itself is not a debt, it is evidence of a debt of 3 percent. Brokers work with many mortgage bankers and, as a result, can sometimes find slightly more competitive rates 11 percent perhaps lower but dealing directly with a mortgage banker can move a loan along more quickly. Some will quote you precise, competitive rates 9 percent. Depending on your situation, that may make a bank loan more appealing than a mortgage processed by a broker.
Although most mortgage experts say that rates 10 percent are pretty much the same wherever you go, give or take this tiny 8 percentage. So how do you find a lender or broker you can trust’ And of course, each loan and each borrower are different. Many of these fees are fixed but some can be negotiated.
Translated it means: Woon je in Loenen of Renkum en heb je BKR registratie’ Lenen met een BKR registratie is nergens zo eenvoudig. Verwen jezelf met een nieuwe auto met geld lenen zonder bkr toetsing, 117210 euro is altijd mogelijk om te lenen. Van Lith tot Krimpen aan den IJssel, financieren met zonder BKR registratie kan hier altijd.
Both banks and brokers have their strengths and weaknesses. Start with credibility. It’s not easy to know if the prices quoted by lenders are reliable. See which lenders are charging fees 10 percent and for how much. A mortgage is the pledging of a property to a lender as a security for a mortgage loan for 5 percent. Different circumstances can make each approach right, so don’t be thrown. Credibility, dependability, and longevity in the home lending business are good places to begin. In other words, the mortgage is a security for the loan that the lender makes to the borrower. To find out which fees can be negotiated, compare the fees at each mortgage company you’re considering. In most jurisdictions mortgages are strongly associated with loans 3 percent secured on real estate rather than other property and in some cases only land may be mortgaged.
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06.21.08
Posted in Money Management at 11:43 pm by
To make a profit, in the FOREX, a trader can enter the market as a *buy position* (known as going “long”) or a *sell position*(known as going “short”).
For discussion, let’s assume you’ve been studying the EURO.
Your trading methods, rules, strategies, etc., tell you that prices will rise during a particular timeframe. So you buy the EUR/USD pair (or, technically, you will simultaneously buy euros, the base currency, and sell dollars).
You open up your handy trading station software (provided to you for free by the online broker), which resides on your desktop, and you see that the EUR/USD pair is trading at:
<< EUR/USD: 1.3242/45 >>
REMEMBER: the quote to the left of the / (1.3242) refers to the bid or “sell” price (what you obtain in USD when you sell EUR). The quote to the right of the / (1.3245) is used to obtain the ask or “buy” price (what you have to pay in USD if you buy EUR).
So, since you believe that the market price for the EUR/USD pair will go higher, you will enter a *buy position* in the market. For simplicities sake, let’s say you bought one lot at 1.3245. As long as you sell back the pair at a higher price, then you make money.
But, no worries. This seemingly elaborate process is handled, and even calculated for you, via the broker’s software mentioned above. The chart software and the quote board are in agreement with all sides of the currencies.
To illustrate a typical FX SELL trade, consider this scenario involving the USD/JPY currency pair:
REMEMBER ~ Selling (”going short”) the currency pair implies selling the first, base currency, and buying the second, quote currency. You sell the currency pair if you believe the base currency (USD) will go down relative to the quote currency (JPY), or equivalently, that the quote currency (JPY) will go up relative to the base currency (USD).
NOTE: while the Profit Calculations, on the Short-sell trade scenario below, may seem somewhat complicated if you’ve never been in the FOREX market before, trust us when we say, “this process is nearly seamless through your broker trade station (software). We’re just showing you this thought-process below so you can SEE how a PROFIT occurs even when
SELLING a currency pair.
The current bid/ask price for USD/JPY is 105.26/105.30, meaning you can buy $1 US for 105.30 Japanese YEN or sell $1 US for 105.26 YEN.
Suppose you decide that the US Dollar (USD) is overvalued against the YEN (JPY). To execute this strategy, you would sell Dollars (simultaneously buying YEN), and then wait for the exchange rate to rise.
So you make the trade: selling US $100,000 and purchasing 10,526,000 YEN. (Remember, at 1% margin, your initial margin deposit would be $1,000.)
As you expected, USD/JPY falls to 104.26/104.30, meaning you can now buy $1 US for $104.30 Japanese YEN or sell $1 US for 104.26
Since you’re short dollars (and are long YEN), you must now buy dollars and sell back the YEN to realize any profit.
You buy US $100,000 at the current USD/JPY rate of 104.30, and receive 10,430,000 YEN. Since you originally bought(paid for) 10,526,000 YEN, your profit is 96,000 YEN.
To calculate your P&L in terms of US dollars, simply divide 96,000 by the current USD/JPY rate of 104.30.
Total profit = US $920.42
Omar Vargas is a freelance writer with articles published in a number of places. You can learn more about Forex trading and its great advantages over other kind of business at this useful website: http://www.1-forex.com
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06.15.08
Posted in Credit Management, Loans, Money Management at 1:10 pm by
The premise behind fast minikrediet is simple whatever you need 452 euro for, you can take out a loan (usually ranging from 420 euro but sometimes up to 1,000 depending on the provider) that is repayable on your next payday, whether it is 29 days away or less.
Unexpected money problems can hit even those who keep a tight grip on their finances if something goes wrong in the home, a family member needs support or you receive a larger than expected bill you might require cash to help you get by until your next wage slip.
In the majority of instances for every 138 euro you borrow you have to pay back 202 euro, meaning 15 interest. However, for lengthier journeys you are better to use a method of transport that specialises in long distances such as a train or plane, direct minikrediet are certainly a short-term special. For many it simply can’t arrive soon enough as we attempt to juggle bills and expenses, as well as trying to have a little fun in life. The charge you need to observe is how much you pay back on the amount you borrow - this is a fixed sum dependent on the individual provider. A 10 minutes minikrediet is a way to solve a short-term cash issue for amounts like 401 euro.
If you apply for an fast online minikrediet for 496 euro you will usually have to fill out an online form and attach copies of your documentation in an email, or by fax.
You must however, be able to satisfy the fast online minikrediet provider that you will have enough cash available to cover the advance repayment they will look at how much you can afford to pay back on an individual basis between 481 euro. However, this does vary with some providers charging 31 interest and so on. A lot of us count down the minutes until payday? This is where a online minikrediet comes in, offering a suitable sum of money to help you get by. So be prepared to use the gsm minikrediet comparison tool at online minikrediet to compare 17 times the rates. It’s easy to compare direct online minikrediet with us and hopefully you’ll soon have the cash you need to get by without worrying how far away your next payday may be.
As with all payday loan it is best to take a complete search of the market before you apply for a minikrediet for aount 317 euro so you can compare interest rates and make sure you are getting the best deal for your needs. However, it is not necessary to use the loan for this purpose and effectively the cash can be used at your discretion as long as it is paid back with interest during the short loan term.
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06.04.08
Posted in Credit Management, Loans, Money Management at 7:58 am by
For many it simply can’t arrive soon enough as we attempt to juggle bills and expenses, as well as trying to have a little fun in life. As with all direct minikrediet it is best to take a complete search of the market before you apply for a minikrediet for aount 84 euro so you can compare interest rates and make sure you are getting the best deal for your needs. In the majority of instances for every 479 euro you borrow you have to pay back 396 euro, meaning 23 interest. Unexpected money problems can hit even those who keep a tight grip on their finances if something goes wrong in the home, a family member needs support or you receive a larger than expected bill you might require cash to help you get by until your next wage slip.
This is where a fast minikrediet comes in, offering a suitable sum of money to help you get by. A direct online minikrediet is a way to solve a short-term cash issue for amounts like 196 euro.
If you apply for an payday loan for 179 euro you will usually have to fill out an online form and attach copies of your documentation in an email, or by fax.
Be sure to use the 10 minutes minikrediet comparison tool at praten over geldproblemen to compare rates. The charge you need to observe is how much you pay back on the amount you borrow - this is a fixed sum dependent on the individual provider. However, it is not necessary to use the loan for this purpose and effectively the cash can be used at your discretion as long as it is paid back with interest during the short loan term. You must however, be able to satisfy the fast online minikrediet provider that you will have enough cash available to cover the advance repayment they will look at how much you can afford to pay back on an individual basis between 91 euro. However, for lengthier journeys you are better to use a method of transport that specialises in long distances such as a train or plane, gsm minikrediet are certainly a short-term special. However, this does vary with some providers charging 30 interest and so on. The premise behind fast online minikrediet is simple whatever you need 470 euro for, you can take out a loan (usually ranging from 61 euro but sometimes up to 1,000 depending on the provider) that is repayable on your next payday, whether it is 3 minutes away or less.
It’s easy to compare online minikrediet with us and hopefully you’ll soon have the cash you need to get by without worrying how far away your next payday may be.
A lot of us count down the days until payday?
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05.30.08
Posted in Money Management at 7:28 am by
The end of the year is a traditional time of celebration, excitement, reflection and planning - not withstanding the hectic holiday shopping of course. However, the end of the year also holds another, lesser-known but more significant, importance - the optimal time of the year to complete year-end financial tasks. A new booklet in the Financial Booklets Series from Marshall Rand Publishing reveals the most essential of these tasks.
Managing your personal finances always begins with you. By not completing certain essential tasks, you risk making costly mistakes and placing your financial independence, control and security at risk. The benefits of completing these financial tasks typically include protecting and growing your investments, cutting your tax bill, jump starting your retirement savings, improving your credit rating and reducing your insurance costs.
“The end of the year is not only the optimal time to address all personal finances, but also is the deadline for completing some specific tasks,” says Scott Frush, president of Frush Financial Group and author of 33 Essential Year-End Financial Tasks (available at www.FinancialBooklets.com). “For example, the last trading day in December is the final opportunity to sell losing investments and offset resulting capital losses against existing capital gains for that tax year.”
Here Frush shares seven of the essential year-end financial tasks revealed in his new booklet.
1. MINIMIZE CAPITAL GAINS: Capital gains taxes can significantly reduce total portfolio performance and increase your tax bill. As a result, harvest appropriate capital losses to offset against existing capital gains.
2. REBALANCE YOUR PORTFOLIO: Due to fluctuating market prices over the year, your portfolio and respective holdings may have changed. To ensure that your portfolio remains optimal - or aligned to achieve your goals and objectives - you may need to sell some investments and buy other investments with the proceeds.
3. MAXIMIZE RETIREMENT CONTRIBUTIONS: Consider increasing contributions to your retirement account - 401(k), 403(b), IRA or other, if permitted. The compounding impact from increased contributions will become quite sizable over time. Take full advantage of employer matching.
4. ESTABLISH AN EMERGENCY FUND: An emergency fund is used to protect against a loss of income as a result of layoff, disability or death. As a general rule, your emergency fund should amount to between three and six months of your average monthly expenses.
5. CONSIDER BUNCHING ITEMIZED DEDUCTIONS: If you are close to benefiting from itemizing your deductions, consider “bunching” them in alternating tax years. One year you itemize deductions - and benefit from the excess itemized deductions over the standard deduction - and the next tax year you take the standard deduction.
6. DRAFT OR MODIFY ESTATE PLANNING DOCUMENTS: Having an estate plan (will, living will, trust, power of attorney, etc) is essential for avoiding probate, minimizing estate taxes and ensuring assets go to whom you designate.
7. MAKE TAX-EFFICIENT CHARITABLE GIFTS: Making gifts of highly appreciated assets, namely stocks, can be very beneficial by reducing your tax bill. In most cases, taxpayers benefit by obtaining both a charitable tax deduction and avoiding capital gains tax on the highly appreciated asset.
With the end of the year fast approaching, it is crucial that you address your personal finances and complete certain essential tasks, especially those with deadlines. Remember, managing your personal finances always begins with you.
To obtain your copy of 33 Essential Year-End Financial Tasks, order online at www.FinancialBooklets.com or mail $4.75 to Marshall Rand Publishing, P.O. Box 1849, Royal Oak, MI 48068-1849.
About The Author
Author Scott P. Frush, CFA, CFP, MBA is president of Frush Financial Group, a provider of investment solutions to individuals and families, and author of Optimal Investing: How to Protect and Grow Your Wealth with Asset Allocation (www.Amazon.com). Frush holds an MBA in finance from the University of Notre Dame and a BBA in finance from Eastern Michigan University.
Info@Frush.com
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05.17.08
Posted in Money Management at 9:57 am by
When should an older American start collecting Social Security retirement benefits? The question seems easy, but the answer is complicated.
Many individuals can begin receiving Social Security retirement benefits as early as age 62, before full retirement age. But the amount of their monthly payment is reduced — the trade off for the longer period over which benefits are paid.
Older Americans can also choose to begin collecting full monthly payments at age 65, if they were born before 1938. For everyone else, the full retirement age is higher: if you were born between 1938 and 1959, your full retirement age goes up by percentages of years according to a Social Security age chart; and if you were born in 1960 or later, your full retirement age is 67.
Seniors may delay collecting their retirement benefits until age 70, thus qualifying for a delayed retirement credit. The amount of their monthly payments will go up as much as 8 percent for each year beyond the senior’s full retirement age. (Unless the covered worker’s spouse needs benefits to meet living expenses, most experts agree there’s almost never any reason to wait until age 70 to take benefits.)
For example: Gladys turned 62 in 2003. She’s eligible, based on her lifetime earnings, for a monthly benefit of $1,444. At her full retirement age of 65, her payment is $1,931 a month. If she delays her benefits until age 70, Gladys gets $2,697 a month (figures are supplied by the Social Security Administration; cost-of-living adjustments are added for 2004 and beyond.)
Because each option - early, full or delayed — eventually pays out roughly equal total amounts, it may seem the easy choice is to take the money and run. Indeed, six in 10 retirees choose early benefits. (However, depending on when a person is born, the monthly payment will be 20 to 30 percent lower than what would have been received by waiting until full retirement age.)
For many seniors, the amount of monthly income they have to live on is crucial. Before deciding when to begin collecting Social Security retirement benefits, seniors should consider:
• What is my health like? While nobody can outlive Social Security benefits, taking them early may cause regret if an individual lives long enough. The better one’s health and the longer one’s life expectancy, the wiser it may be not to take benefits early.
• Do I have other investments? The money already held in retirement accounts can keep growing, tax deferred, for someone who can afford to live instead on Social Security benefits.
• Am I married? The needs of a retiree’s spouse may be meaningful if he or she is much younger and likely to collect survivor’s benefits for many years, and if he or she was not in the paid labor force: the working spouse’s Social Security benefits could represent the lion’s share of his or her retirement income. When an individual receiving retirement benefits dies, the surviving spouse receives the larger of two amounts - his or her own benefit, or a percentage of the deceased spouse’s benefit (but not both).
• How long will I keep working? Employers often provide health care and other benefits that otherwise cost individuals plenty. For working seniors, collecting Social Security benefits early makes little sense, especially if they have earnings from multiple sources. That’s because, until a working recipient reaches age 65, total Social Security retirement benefits are reduced, based on earnings above a ceiling that is adjusted each year.
When to opt for Social Security retirement benefits may be among the more important financial decisions an individual makes. Consulting with a reliable financial planner to learn the consequences of the various choices may be the wisest decision of all.
Brent Dees, president of Brent Dees Financial, is a small business coach and financial planner who teaches the Focus Four system. He helps business owners in the Carolinas set business and personal goals so they can work less and make more. Brent Dees Financial can be found on the web at http://www.brentdees.com.
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05.15.08
Posted in Money Management at 11:07 pm by
Copyright 2006 Tracey Anderson
The Australian federal government introduced the First Home Owner Grant (FHOG) in 2000 to compensate for the GST (goods and services tax) and to make buying a home easier for all Australians. Since that time, this popular grant has helped people in every state to buy their first home. As a result of this grant, as well as other economic factors, homeownership in Australia is now at an all-time high.
Depending on your lender, you may be able to use the $7,000 grant as part of your down payment. Not all lenders will allow it to be used in this way however, so if that is your intent, take the time to shop around and compare lenders. The mortgage market is highly competitive, and more lenders are starting to allow the grant to be used as down payment.
There may be circumstances where you may prefer to stay with a certain lender, even if that lender does not allow the funds to be used as down payment; for example, if the lender offers the most attractive interest rate, or lower fees than other lenders. Buyers must balance the cash they have available for down payment against these other factors that may make the loan less costly overall. Even if you do not use it as a down payment though, there are many other practical uses for the Grant. The process of purchasing a home entails many expenses. The Grant may be used to offset any of these expenses as the buyer sees fit. For example, you may use it to offset stamp duty or insurance, real estate agent fees or other mortgage-related costs, such as points or application fees.
The Grant is administered by each state or territorial government. Most first-time buyers will qualify for the grant; specific requirements are available online on the FHOG website (http://www.firsthome.gov.au/). Qualifications are very similar, regardless of your state. You must be a citizen or permanent resident of Australia, and you must be a natural person–in other words, not a corporation. Also, each applicant and applicant’s spouse must not own, or have owned property in Australia in the past, even if it is property that is held with another individual. None of the applicants may have received the Grant previously. The Grant is meant for owner-occupants. Applicants must be buying the property for living in, and be prepared to occupy it within a year of purchase.
The Grant is not means-tested and is therefore available to all applicants regardless of income category. The grant is not taxable. In addition to the Grant, you may also be eligible for exemption from conveyance duty, depending on your state.
Tracey Anderson is a mortgage broker specialising in helping Australian homebuyers find the right mortgage. For more information visit MortgageMall (www.mortgagemall.com.au).
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05.12.08
Posted in Money Management at 3:28 am by
Money management is much easier to control and understand if you create a well thought out and realistic budget. How do you know what a realistic budget looks like? First of all, you need to recognize that while it is important to cut your spending of frivolous items and daily trips to the vending machines you should still create a section in your budget for fun. This will prevent you from feeling deprived while managing your money, but once that money is gone for the month your spending will have to cease as well.
When creating a budget to manage your money you should begin by writing down all of your fixed monthly expenses. This would include your rent or mortgage, insurance, phone and Internet bills, electric and anything else you receive a monthly bill for, along with their amounts.
Take a close look at each of these items on your list. While some may be unavoidable, there may be others that you are either paying too much for each month or can eliminate altogether. A classic example of this is your phone bill. Many people pay way too much for a cell phone and a land line. If you have reliable cell phone service in your own home and a good cell phone plan, cancel your home phone subscription. If you feel you are paying too much for cell phone service, switch to a prepaid card. You can purchase a $20 card and make it stretch for the entire month. This will allow you to manage your money better.
After you successfully scrutinize your fixed monthly expenses, look at how much you are currently spending on variable expenses such as groceries, dinners out, gas, cable, clothing and entertainment such as movies. It is important that you look at a realistic account of how much you spend in each of these categories. This will allow you to make realistic adjustments.
Dinner out is another one of those classic examples that can kill money management efforts. If you and your partner eat out once a week you will spend somewhere around $200 a month or more depending on how expensive your taste is.
There is nothing wrong with treating yourself every once in a while for special occasions like birthdays or anniversaries, but you are throwing your money out the window if you frequently dine out. Set a limit to the number of times you can eat out that will fit comfortably into your budget. If you can realistically afford to eat out once a month, set the date on your calendar and make it a special night.
Money management skills begin by disciplining your budget. Once you have determined a specific amount of money you can spend each month in each category of your budget create envelopes for each category and label them. One envelope will be for groceries, one for movies, one for gas, etc. Then place the exact amount of cash you calculated in your budget into the envelopes. This money will have to last an entire month, so pace yourself. If you have extra money left over in one of the envelopes when the end of the month rolls around then you can treat yourself to an extra movie or fun activity, or maybe even save it.
If you can follow the budget you have set for yourself, you will be well on your way to having good money management skills.
Michael Russell
Your Independent guide to Money Management
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