When it comes to trading Forex, a new trader has a lot of choice. They can choose to go with a recommended broker from a friend or family member, or they can choose to go with a broker offering great leverage or trading software. The problem is that neither one of these paths will net them at a broker that is honest and fair, as the recommendation from the friend may not be accurate, and a lot of leverage is not a good thing for a new trader.
I have traded at many, many different Forex brokers. Some have been great for trading, yet brutal on the service end of things. Others have had great service, but may have had high commission rates as a result. One common theme that I noticed, however, was the desperate attempt to build trust: plainly said, there are not a lot of brokerages that a trader can actually trust.
Why? It comes down to disclosure: what are their commission rates, what are the spreads like, and is there a deal desk trading against you? Many brokerages don’t tell you either way, leaving you to wonder if the trading that you are doing is bringing the highest return for your dollar. In my experience, it usually isn’t.
FXDD for New Traders
I started using FXDD several months ago after being disappointed by the customer service of several other brokers. As always, I gave FXDD the benefit of the doubt when I began trading. To my surprise, there were no complications or mistakes. The trading was smooth, and dare I say it, relaxed. The ease at which I was trading amazed me.
FXDD offers daily reports and in-depth analysis, as well as education and support for a new investor. This, combined with a solid trading platform, creates a great environment for a new trader to get their start with Forex.
If you are curious about starting Forex trading, but you don’t want to put any cash on the line, FXDD offeres a free demo account.
FXDD for Established Traders
FXDD overs a few solutions for tax-free trading, as well as advanced charting and tools. Their software is top notch, and it only took me a matter of minutes to figure everything out.
Advanced traders will feel right at home with FXDD, and should any problems arise (for whatever reason), their support desk is always ready to answer your call.
Conclusion
Though there are more efficient or more aesthetically pleasing brokerages, FXDD is a dependable, solid brokerage that offers feature-rich trading at a low cost. The value that they build for their clients is quite obvious, and I expect nothing but growth for this company. I would place more of a recommendation for them, but their information for new traders is somewhat lacking in depth.
Discover the truth about trading with brokerjam.com/forex-brokers/fxdd/ FXDD, and see experienced forex traders reveal their opinions about FXDD at BrokerJam, a site for traders who share brokerjam.com forex broker ratings every day.
I first learned about the power of giving several years ago when I began reading about financial success. At that time my husband and I thought we were financially strapped. We did, however, decide we could spare $30 a month from our six-figure income to sponsor an international foster child. Later we began attending church regularly and added our $2 - $5 when the offering plate was passed. As we read more about the benefits of giving and the freedom it provides in terms of empowering prosperity thinking and overcoming feelings of lack we increased our offering to $20. Interestingly as we increased our knowledge of financial success principles and laws we simultaneously experienced the worst financial struggle of our life. We saw our six-figure income and our life savings disappear almost overnight in a struggle with the tax department. During this difficult time we felt like we were being obedient to God’s prosperity laws because the $20 offerings each week seemed like so much money relative to our new lifestyle and to what we had given in the past.
We struggled along working hard to recoup the losses but we seemed to continually come up with disappointment after disappointment. During this time we implemented a “pay ourselves first” habit and started saving 10% of our income. Frequently this was the money that pulled us through in a pinch. It seemed that whatever we attempted to do to change our financial situation either backfired or went nowhere. After one extremely disappointing real estate deal collapsed we decided the only thing we hadn’t tried was increasing our giving so it really did amount to 10% of our income. We did and the first week we gave $75 at church that Sunday. The next week, we accidentally ran into a friend who had happened to look in the paper and see a small classified ad for a home for sale. We followed through and were only several feet into the home when we both looked at each other and said lets buy it. This was after a year of looking at dozens and dozens of homes and finding nothing suitable – even outside our price range.
The next week we gave our 10% again, $200 this time, and I received two contracts for work at the same time doing the work I love to do. We continued with our 10% and I saw my first article published in a magazine, received a client from the article, got approval on the financing for our new home, received offers to deliver courses in my line of work, got paid out on a full contract, rather than half, which meant we had more money available for moving expenses. On-and-on the blessings have flowed. The week we received the full payment for my contract I said to my husband that we would be giving $600 that
week–how did he feel about that? We were both nervous and unsure because of the big expenses upcoming with our move yet we stuck with our plan. That afternoon we were looking for a freezer because our new home has a fridge but no freezer. We found a suitable one that would have been about $600 but we needed to sleep on the decision before buying. Later that day, we received a call from a family member asking if we would like to use the freezer that had been my grandmother’s before she passed away over a year ago.
These might not seem significant, or you could try to pass them off as coincidences, but we are convinced that we have been faithful – we trust that God will provide the opportunities for us so our needs our met. In the past we relied on our own 10% to pull us through, now it is the 10% we have given back that is providing far more than simply enough to get us by – for the first time in years we feel that we are truly blessed financially.
Trusting God with our finances by giving money when we are in such a state of financial uncertainty, might not seem logical, however, struggling along trying to make ends meet is extremely stressful and by turning the situation over to God, we finally have a peace of mind that was not there when we were trying to hang on to every little bit we had and trying to stretch every cent out of every dollar we could find. We feel truly blessed and are learning to share our blessings with others. Our desire now is to be able to share more and more of our prosperity as our income increases and our finances prosper.
Money expert Tracy Piercy is a Certified Financial Planner, author, and founder of the personal MoneyMinding Makeover System. To learn more about this step by step system and to get the Free 12 Simple Steps program visit moneyminding.com moneyminding.com
This article can be reprinted freely online, as long as the entire article and this resource box are included.
Have you heard a friend complain to you about their measly salary lately? Maybe its you doing the complaining. You will need to think and do something to qualify for a big salary, if that is what you want and provided you have the ambition.
My friend, lets call him Alex, had a job as a teacher in a good school. He enjoyed his job, and was a star with his students and other teachers in the school. Although the job gave him loads of satisfaction - seeing his student’s blossom, learn, pass exams - he was not happy with his pay package.
Not having enough money at the end of each month was a bother. It was nice having a good job and one he enjoyed but that wasn’t going to pay the bills and put food on the table. He wanted a big salary, but he understood that his job did not carry a big salary. Unless he became a head teacher and that obviously would take time, besides his concern was for the present moment, not sometime in the future.
Realising his job did not carry a big salary, and in need of one, he made the decision to change jobs. The decision was a big one, but one he had to take though he knew he was going to miss being a teacher. The lack of money was making him unhappy and was soon going to affect his teaching.
To get a big salary, he had to think and research jobs with big salaries, and in an industry he would enjoy. Before long, he was reading, taking courses and exams so he could enter his chosen industry. Alex is now working in a job with a big salary, and he is enjoying it too. He also intends to return to teaching later on, when he won’t have to worry about the money.
You have a choice and the power to determine how you want your life to be. You can decide to make more money or settle for less. You can’t earn a big salary working in a job that doesn’t pay a big salary. You can’t settle for being the office clerk and expect to be paid the salary of an manager. You will have to think and act if you want to make more money.
Seyi Durojaiye is a recognized authority who has lived through what he teaches. He sees himself as a student always learning in the school of life. His area of interests are thinking, creativity & money You can check out his web site, xtramonthlyincome.com xtramonthlyincome.com, or blog at seyidurojaiye.blogspot.com seyidurojaiye.blogspot.com
The adage goes “If Doctors and Attorneys are so smart, why are they still practicing their professions?” Well, it is a fact that to be good you must always keep honing your skills. The persistent practitioner becomes the consistent performer.
When I was a kid, I would dash around in my eagerness to grow and learn new things. My dad would always caution me, “Don’t rush it. Take your time and do it right the first time. You can always make the time to go back and do something a second or third time if it’s important, but it’s a lot easier just to do it right the first time.”
Truer words were never spoken and in trading there is far too many folks starting over or giving up altogether.
Hardwired to Mess up
All your life you have been conditioned to be tough and strive to win. That will work for you in life but it will fail you in the market. Being tough, optimistic and hanging in there when a trade is going against you is not a good thing. And being right is not the measure of a good trader. A good trader is ambidextrous. Upside and downside moves are seen as equal opportunity. A good trader appears fickle and almost too willing and eager to leave trade that is not going as planned. A good trader never loses. A good trader sees the small amount of money associated with being stopped out as a cost not a loss. The good trader sees that cost as the price to find out if a potentially big move would happen. A good trader knows when a stock / index has reached a Pivot Point and sets up entry and exit points that make sense. A good trader knows that with proper reward risk ratio, more than 1/2 of the trades can go off base and profits can still be made.
Contrary to popular wisdom, being successful in the market has little or nothing to do with winning. In fact trading, which is often compared to warfare and battle, is not about winning and losing at all. If it rains on your picnic did you lose? Hey it looked like a nice day. Was it your fault that a sudden storm showed up and your picnic was washed out? Since you can have nothing to do with the direction of a stock or the market, how can you win or lose? The market is going to do what it is going to do whether you play or not, all you can do is to act and react so as not to get run over. If you have taken a position and it moves against you, it is not your fault unless you did not anticipate that possibility and have an exit strategy in place. Well it may not be your fault but is still your problem.
Ok, so if you can’t dictate the outcome, then your odds are 50/50 every day that you are in the market. 50/50 you say??? Yes 50 / 50. Time and time again the market moves the opposite way that was expected. News stories can reverse the direction of a stock or market and the market often reacts the opposite way the news might suggest. Trading must involve a comprehensive plan for a move in any direction.
My Bracket Trading™ process is the vehicle for properly setting up the trade. It keeps you Calm, Confident, Consistent and Profitable. This is done by taking a tactical approach to the trading. You identify all the relevant price levels and targets along with the pivot points. Knowing how to do this correctly will identify the right expectation of a trade, the cost if it turns against you and the reward if it moves in your favor. It lays out the instructions for every “IF - Then” scenario that might happen and sets the follow though and execution. A broker, either live or online is charged with the job of follow through so you don not have to stare at the monitor all day. It is truly liberating and removes your opinion and ego from the trade. As a bonus, bracket trading creates a perfect journal record of you thought process as well as the trade. Bracket Trading removes the burden of being right or wrong in a trade by keeping your opinion and ego out of the process. It’s about doing what was appropriate not being right or wrong.
BLENDING
In the market, blending is the magic bullet not attacking. Blending requires balance and perspective. A trader must be able to set criteria and act on it like merging onto the freeway. When the time is right you go and you don’t stop and don’t back up. The destination is clearly targeted and so is the exit ramp if something goes wrong.
Maxim’s to Live By
You are not in the game, you are in the bleachers. All you can do is enter and exit.
If the market goes with you, all you can do is try to go with it and jump off quick if turns against you.
If you think in terms of winning and losing, you have already lost.
Your goal should be to make good trades not money. Good trades will make money often enough.
Strive to have a 4 to 1 reward risk ratio.
Trade criteria, trade neutral; your opinion your ego your money = Disaster on a stick.
When you make money on a trade, you have not beaten the market, you have blended with it.
Good Trading is about doing it right not being right. There is a price that one may pay to never again be wrong in the market. It is expensive and many cannot or will not pay it. To never be wrong, you must give up ever being right. Doing it right can take care of your financial needs and objectives. Insisting on being right is like dancing with a gorilla and insisting on leading. Oooh. You are not going to beat the market. You can however profitably and peacefully interact with it. It is not about being right. It is about doing it right.
Ryan Litchfield brings his popular Traders Forge system to a two day intensive bettertrades.com stock market course. The Traders Forge is a forum for those who already have some understanding of trading and some experience in the market. Visit Ryan’s website to sign up
Often people fall on hard times and stop paying on credit cards. After a while the account may go to an outside debt collector who might offer a settlement of the debt for 30-40% of the original sum. Once this is paid, the debtor often thinks the matter is closed, but it is not! It is very likely that the creditor will issue a 1099-C. This is a notice to IRS of the forgiven debt. If the debtor does not address this on his return he may get an IRS bill a year or two later with penalties and interest.
A foreclosure on a home may also result in a 1099-C from the mortgage lender if the property is sold for less than the amount of the loan. In this instance, a person loses their home and may also face a tax bill. Usually, the bill comes many months after the tax return was filed as a result of an IRS document matching program. This “under-reporter” notice brings grief to the taxpayer.
The key issue is whether or not the debtor was insolvent. If they were insolvent, it may not be taxable depending on the circumstances. There is an “Insolvency exclusion.” You are insolvent when, and to the extent, your liabilities exceed the fair market value of your assets. So it is possible none of your forgiven debt is taxable or it is possible that all or only a portion of it is counted as income.
You may not have any taxable income from the 1099C, but you must account for it on your return. The issue is whether or not you were solvent at the time of the debt cancellation. You only owe tax on the forgiven debt to the extent you were solvent. For instance, if the forgiven debt was $10,000 but you are only worth $5,000; you would only be liable for income tax on that amount. A home foreclosure is complicated and you may have other legal arguments besides insolvency.
There are five situations where a cancelled debt does not have to be reported as income:
Bankruptcy – the debt was already discharged through a bankruptcy proceeding.
Insolvency – your total debts exceed your total assets at the time your debt was settled or deemed non-collectable.
Indebtedness is due to a qualified farm expense.
Indebtedness is due to certain real property business losses.
Discharge of your debt was treated as a gift (You owed Mom $10K and she said “Don’t worry honey, consider it a gift”).
If you are insolvent you need to explain this to the IRS on your tax return. You can fill out IRS Form 982: Reduction of Tax Attributes Due to Discharge of Indebtedness or attach a detailed letter to your tax return explaining the calculation of your total debts and assets.
Do not ignore a 1099-C! Failure to address the 1099C will result in a tax assessment by the IRS for any amount over $600 plus penalty and interest. This will likely occur 12-18 months after you file when IRS matches up the info reported to them with what is on your tax return. Have a tax professional do your return and they can help you determine how much of the 1099-C is taxable.
If you get a letter from IRS on a 1099-C you left off your return, get help ASAP. Otherwise, IRS might file a Federal Tax Lien and take action. Look for a CPA, Enrolled Agent, Accredited Tax Advisor, Accredited Tax Preparer, or Tax Attorney to help you with serious tax issue. You may call the IRS at 1-800-829-1040 for help as well.
Websites you can check out include:
irs.gov irs.gov
naea.org naea.org
Because bad credit credit cards include various fees and higher
interest rates, some people are hesitant to open a bad credit credit card
account. However, there are certain advantages to using these sorts of
credit cards. For starters, if you have no credit history, bad credit
credit cards are easier to qualify for. Similarly, these credit cards are
perfect for raising a low credit score.
Disadvantages of Having a Low Credit Score
There are no advantages to having a low credit score. Because many
large purchases such as homes and cars are financed, maintaining a good
credit history is essential for getting the best rates. Credit scores are
a big deal to lenders. Before issuing a line of credit, potential
lenders carefully assess a borrower’s income and credit to judge their
creditworthiness. Having a low credit score closes the door on many
financing opportunities.
Reasons to Maintain a Good Credit History
If you have a good credit history, your credit options are numerous.
Because interest rates greatly affect monthly payments, obtaining a low
rate on a home loan or auto loan may actually decrease your payments by
a few hundred dollars. In this case, having good credit increases your
purchasing power, allowing buyers to afford more for their money.
Having good credit also makes obtaining a loan approval much easier.
Many people apply for credit with prime lenders. However, these lenders
favor borrowers with a good credit history. This consists of making
regular payments, keeping low debts, etc. If a credit report does not meet
a prime lender’s criteria, these applicants must seek alternative
lenders.
Benefits of a Bad Credit Credit Card
Before applying for a home or auto loan, individuals with bad credit
should strongly consider boosting their credit rating first. With a car
loan, bad credit persons may obtain rates as high as 20%. To improve the
odds of obtaining a lower rate, apply for a credit card designed for
people with poor credit.
Bad credit credit cards are very useful, and can help you boost your
FICO score by several points. The key to a higher credit rating involves
using the credit card responsibly. With this said, avoid acquiring too
much debt, pay bills on time, and never skip a payment.
Carrie Reeder is the owner of abcloanguide.com abcloanguide.com. View her recommended sources for bad credit credit cards online.
View her recommended abcloanguide.com/creditcards.shtml bad credit credit card companies online. Also, view her recommended sources for abcloanguide.com/freecreditreport.shtml credit report services.
Forex has much in common with “Fuzzy logic” by Lotfi Zadeh and “Fuzzy Thinking” by Bart Kosko. In fact, the new branch of the science of Forex is named “Fuzzy logic”. The latter issues from the titles of the editions mentioned. The details one can find at www.fuzzy-logic.com
However, it is not recommended to overestimate the significance of this approach and these articles. – i.e., one must not get caught into “an endless loop of it”. At the same time, it is absolutely necessary to comprehend the essence of “Fuzzy Logic” theory. As applied to Forex , it means to see the multiple-choice character of the evolution. That is, the process depends on the starting parameters and on factors arising in the course of the development. Each of such elements is binary – i.e., it is formally logical. However, the correlation between these components (factors) can yield results cardinally different.
This is why often mathematicians are powerless at Forex . Specialists of this profile are used to deal with the binary systems, where the multivariate development is not implied. That is, 2∙2=4 forever, independently of news, correlation between trends of various types, currency pairs, etc. At Forex , only the system elements (components) can be measured accurately. Otherwise, the currency pair movement would be predictable in advance for years. Such things are inadmissible – especially at the controllable Forex market.
That is, the very same elements in various combinations can result in various variants of the currency pair movement at Forex .
For instance, even a fresh graduator from Master Forex -V Trading Academy can detect points of opening and closing of the session trend. After several weeks of the training, the graduator will be able to do this with the error just within several points for the currency pair with the volatility of 50-100 points.
Within the framework of a session trend, the principles of opening and closing deals are systemized in Masterforex -V Trading System. These rules, being binary, are clearly defined and logical. They perfectly fit for gaining profit in the course of a trading session under certain conditions, known beforehand.
The further prospects for trends (the session, weekly and bigger (longer) ones) depend on a combination of at least hundreds of component. The latter are also binary.
Let us take into account the following factors:
1. One must calculate the ratio of the inter-week trend to trends that last from several weeks to months. One must see what the session trend represents by itself – i.e., is it a wave of a bigger trend, the trend correction, a flat or the bigger trend reversal.
2. It is necessary to determine the correlation between the session- and weekly trends under the different conditions.
a) One must distinguish the cases when the natural recoil does not exceed 23%; the natural recoil makes 38%; the natural recoil is 50%; the natural recoil varies within 62-76 %; the natural recoil makes more than 100%.
b) It is necessary to see the correlation between ally currency pairs within the framework of the session and weekly trends. That is, one must consider the following situations that can spring up: EURO and GBP fall or rise with respect to USD together; EURO and GBP fall or rise independently one of another; EURO and GBP rise, while Australian- and New Zealand Dollars cannot “break through” their flats – otherwise, they can starting the reversal. You see, situations can develop in totally different ways.
3. One must understand the role of the awaited news under the conditions of various combinations of the session and weekly trends. Clearly, news can be better or worth than prognostications. The reaction to the issued news can result in the flat, correction, the trend reversal or its prolongation. You should try to understand (“feel in your brain and fingers”) the inner interconnection between such factors. One must issuer from the following factors:
a) Each of the reactions is binary – i.e., it is natural. You can clearly detect the point, where the session trend starts in order to open a deal.
b) The binary element combination is also important. For instance, the news is much better than the prognostication, while the market has reacted just in the form of the currency pair flat at Forex .
By giving analysis to this example, you should try to find out a sequence of such binary elements by yourself. This can help you to understand the principles (logic) of the currency pair movement. It is necessary for deciding whether to open a deal either on “sell” or on “buy”.
The following factors are important:
· The point of the currency pair exit from the flat and the exit character.
· The correlation between ally currencies.
· The time (moment) of the breaking through the flat level.
· The character of the currency pair movement (flat- or trend- wise) – as well as the movement of ally currencies during a session trend.
· The levels and sublevels as components of a finer dimension during the currency pair movement in a session trend.
· News issuing in every certain time interval.
· Points at which a session trend can be closed – with the accuracy up to several points.
· The reversal character at the end of the session trend. In Masterforex -V Trading Academy, one can find these materials in the section “Zigzag-fractal system”.
· Estimation of the correction for the possibilities of the development of the trend, its transformation to a flat or the reversal.
· The role of the session trend for a bigger trend (the weekly, etc.).
It must be emphasized that each of these elements is binary. The combinations of various characteristics of binary elements yield different variants of the movement of a given currency pair within the framework of Forex binary (vague) logic.
For instance, there is the logic chain of the binary elements
· A flat;
· A heavy session trend;
· The session trend end;
· The correction to the trend;
· A new wave towards the trend.
Depending on characteristics of each of the above-enumerated elements, this logical chain can stimulate the following changes:
· A new wave of the trend.
· A flat.
· The trend reversal.
Thus, there exists a wide range of various binary components. On the basis of them a large diversity of ways of the currency pair movement is formed within the system of Forex binary (vague) logic.
As an example, one can see the charts that depict the movement of GBP/USD and EURO/USD pairs on February 13-14, 2006. At the site forum.masterforex-v.org/viewtopic.php?t=1432 one can find an open lesson given by Masterforex -V Trading Academy on February 13, 2006.
You must study the currency pair movement charts (see forum.masterforex-v.org/viewforum.php?f=4). After this, you should try to trace out the trading binary logic that follows from the concept of binary elements. The aim is to understand the following aspects:
a) All deals at the European session were opened upward from fractals only on “sell” (as regards GBP and EURO, to start from 1.7500 and 1.1908, respectively).
b) The point of deal close (buy-in) was located at the lowest local peak (the margin error was just several points).
c) On the contrary, all deals at the American session were opened on “buy”.
d) There was a warning that the flat-like movement upward was to be awaited. In this connection, it was recommended to open only super short deals from the recoil because any heavy movement was not expected at the American session.
Naturally, participants of Masterforex -V Trading Academy gained profits even at such a difficult (tense) day at Forex .
There is another example.
· On February 14, 2006 (Tuesday), participants of Masterforex -V Trading Academy were holding up (making) prolonged deals on “sell” at the European session. In the vicinity to 1.7300, it was recommended to close those deals.
· However, at the American session all deals were short and on “buy”.
Further, you should try to perform the next task by yourself. First, one must give analysis to the currency pair movement on February 13-14, 2006. After this, it is recommended to predict the currency pair movement on February 15, 2006, making use of the binary element concept. Then you can look at this movement at your point-of sale terminal, determining the following.
a) What binary elements did stimulate exactly this movement?
b) What an alternative was possible (at what point and under what conditions, which were binary as well)?
Notes:
Full text of this article and pictures of examples you can see on masterforex-v.su/001_010.htm
If you wish to be trained on Trading System Masterforex-V - one of new and most effective techniques of trade on Forex in the world visit masterforex-v.su/
Vyacheslav Vasilevich (Masterforex-V)
Professional Trader from 2000 year.
President of Masterforex-V Trading Academy.
Author of Books:
1. Trade secrets by a professional trader or what B. Williams, A. Elder and J. Schwager not told about Forex to traders.
2. Technical analyses in Trading System MasterForex-V.
3. Entry and Exit Points at Forex Market
Free Books Website:
Exchange Traded Funds (ETFs) are the rage today with many investors flocking to purchase them as opposed to the usual mutual funds. ETFs work in this way. The fund manager decides that he wants to mimick the returns of the NASDAQ so he just buys all the stocks that make up the index and then he sells shares in this fund to investors. This means that you have effectively diversified your risk when compared to another investor who buys and individual share. There are three related reasons why there has been an upsurge in recent years in the number of fund managers setting up these funds.
Low Cost
The first reason would be the relative low cost that works both ways. Since we are not stock picking, the fund manager needs just to set up software to ensure that the fund accurately mimics the stock holdings of the index. Some shares have a greater representation in the index than others by virtue of their large clout and number of shares issued in the market and the fund has to respond to that.
The other way the cost factor kicks in is that many investors today are happy and delighted to find an investment options that is cheap in terms of fees. Since the fund manager does very little monitoring or research for this fund, its really cheap to purchase this monthly and this makes a very good investment for the retail investor.
Defensive Investing
Benjamin Graham the value investing guru advocated the concept of defensive investing in an Exchange Traded Fund in his book “The Intelligent Investor”. In that book he did back calculations back to the days of the Great Depression and if you invested monthly since then, your average return would be 33% on average and its not bad considering the fact that you did not have to spend time wondering whether the index was up or down or whether your latest stock pick was in the money or not. Just buy a small amount monthly whether the stock market is up or down and use it as a rainy day fund that you can rapidly liquidate for ready cash. The reason why this is called defensive investing is that you do not have to spend time actively picking and most investors whether professional or retail lose money actively picking stocks and ETFs remedy this problem by sure probability and mathematical statistics.
Plurality of options
ETFs today are flooding the market with each of the top fund houses in New York setting up new and more fanciful financial baskets each day. Today there is a great plurality of funds that you can purchase from Tech ETFs to Banking ETFs to Energy ETFs and so you have no shortage of options. If you are optimistic on a certain sector and do not want to waste you energy and time picking the right company actively, ETFs with their current plurality of options is the great key to diversified investing in a particular sector. The time saved scrutinising financial data which is often padded up is not worth the effort some times when there is great intrinsic fraud like Enron and WorldComm.
In conclusion, ETFs today represent a cheap, effective way for you to do defensive investing and with that part of your money relatively secured, you can then spend some of your money doing active stock picking if you are so inclined. Take some effort this week to research into this financial instrument and you may find the returns better then your fund manager in the longer term (when averaged over time by virtue of statistical probability).
Joel Teo writes on various financial topics relating to Ahwatukee Real Estate Investment. Signup for his free online Real Estate Investing newsletter today and gain access to the “Six Day Real Estate Investment Profits Course” now at realestateinvestment101.info/Ahwatukee.html www.realestateinvestment101.info/Ahwatukee.html
Bankruptcy liquidation also known as Chapter 7 Bankruptcy is a legal process where most if not all of your debt can be eliminated. It may take up to six months.
Bankruptcy liquidation can be used by individuals and businesses.
An individual, married couple or a business organization can file under a Bankruptcy Chapter 7.
The criteria for eligibility are:
* You have not received a Chapter 7 discharge in the last 8 years
* You have not received a Chapter 13 discharge in the last 6 years
* You do not have a Chapter 7 petition dismissed within the last 180 days
* You have not attempted to deceive your creditors or the bankruptcy court.
* Your income is equal or below the median income in your state. You will be required to take the means test to determine your income and eligibility.
However, it is not as simple as filing a petition and the court grants the request. In bankruptcy liquidation, the debtor has to give up certain properties to be sold or liquidated in order to pay off as much of the debt as possible.
The bankruptcy laws in your state dictate what property can and cannot be taken away from you. In general, properties of necessity such as clothing, household items, and tools you need for your profession are considered exempt. When you do not have much property that can be liquidated your case will be classified as “no asset” and there will be no payment distribution to your creditors.
In order to be eligible, you should not have received a chapter 7 bankruptcy discharge within the past 8 years or a chapter 13 bankruptcy discharge within the past 6 years as mentioned above. Remember your monthly income should be lower or equivalent to the median income of your state. You will be required to take a means test to determine your eligibility.
Before filing for bankruptcy liquidation, you will have to get credit counseling from an agency that has received approval from the United States Trustee. Afterwards, you can proceed with filling out all the necessary bankruptcy forms, which will basically ask you to state the source and amount of your income, monthly expenses, debts, and information about your assets. You need to file these forms along with the certificate of your credit counseling session with your local bankruptcy court.
Once you have filed for bankruptcy liquidation, a rule called “automatic stay” takes effect which can be very helpful in urgent situations. It temporary protects you from lawsuits, wage garnishments, eviction, foreclosure, and disconnection of utilities supplies.
When you file your case, the court will appoint a trustee whose duty is to liquidate your non-exempt assets and distribute payment to your creditors. A week or so after you have filed you and the creditors you have listed will be sent a notice informing you about the creditors meeting. During this meeting, you will be under oath while the trustee questions you about the information you have provided in your bankruptcy papers. Usually, this meeting does not last more than 10 minutes.
The last stage in the bankruptcy liquidation process is the discharge of debt. You must take note that certain debts may not be eliminated such as family or child support, student loans or tax debt. Once you have received bankruptcy discharge, you are free from any legal obligation to pay the creditors of your discharged debt. The record of your filing will be on your credit report for the next 10 years.
Dean Shainin offers online bankruptcy.deans-knowledgebase.com Bankruptcy and debt advice. For more information, articles, news, tools and valuable resources on bankruptcy and debt solutions, visit this site: bankruptcy.deans-knowledgebase.com/Articles/Bankruptcy_Attorneys.php Free Bankruptcy Attorneys Advice
You have finally purchased a home of your own. For so many years it seemed to be like a dream always just a little out of reach. What happens next? You do not need to be shackled to your home loan for 25 or 30 years. Here are some useful tips to help you pay off your mortgage sooner and achieve “true home ownership”.
Avoid Honeymoon Offers
Many lenders use introductory or honeymoon rates as marketing tools to attract new borrowers. You are initially offered a cheap rate on your loan to get you in the door but once the honeymoon period is over, the lender will switch you to a higher variable rate of interest.
To understand the true interest rate you end up paying with a honeymoon product – look at the advertised comparison rate on such a loan. Invariably you pay less today but more in the long run.
Pay more to get ahead
It is a very simple concept to grasp – the more you pay off your mortgage every month the faster you will pay off your loan. Most people think in terms of making sure they pay just enough to cover their set repayments. By doing this you will keep your mortgage for the full loan term of 25 or 30 years. The key to paying your loan off faster is to make as many ‘extra’ repayments as you possibly can.
Increase the frequency of your repayments
One of the simplest and best strategies for reducing the term and cost of your loan (and thus your exposure should interest rates rise) is to make your repayment on a fortnightly rather than monthly basis. By splitting your monthly repayment into fortnightly you will effectively be repaying the same annual amount but your outstanding loan balance will reduce faster.
Amazingly enough, this change can cut thousands of dollars and years off your mortgage.
The reason for this is that there are 26 fortnights in a year, but only 12 months. Paying fortnightly means that you will be effectively making 13 monthly payments every year. And this can make a big difference.
Have you considered a professional package?
Most lenders offer a range of professional packages to clients who are prepared to pay a small monthly fee. These packages offer a reduction to the standard variable interest rate, can come with a cheaper home insurance, fee-free credit cards and a number of other options.
Consolidate and save
If on top of your home loan you also have other outstanding loans such as a personal loan, credit cards, car loans etc. – by consolidating all your other outstanding loans into your mortgage you can generally significantly reduce your overall loan obligations and hence have more funds available to apply to your mortgage.
Many lenders will allow you to re-finance – your other debt under the umbrella of your home loan. This means that instead of paying 15 to 20 per cent on your credit card or personal loan, you can transfer these debts to your home loan and pay it off at a home loan rate.
Utilize your available equity
Home equity is the difference between the current value of your property and the amount you owe the lender. For example, if you have a property worth $500,000 on which you owe $200,000, you are said to have home equity of $300,000. In most cases you should be able to establish a line of credit or a home equity loan to access these funds.
Generally lenders will allow you to borrow up to about 80 per cent of the loan-to-value ratio (LVR) of your available equity. You can use this equity to help to pay off your home loan sooner.
You can use your home loan equity as a deposit towards property investment. Over time both properties will grow in value. Eventually you will be able to sell one and pay off the mortgage over the other.
Spend less on lifestyle
We are not suggesting that you eat less or buy nothing other than absolute necessities. However if you have a goal to pay off your mortgage as soon as possible you do need to watch lifestyle expenditure. Spending less on cars, holidays, and going out can help you save more towards your mortgage. If you focus on doing this for at least the first 2-3 years of your loan – there will be a marked difference in your financial position for years to come.
Make sure your loan is portable
Although you may believe today that you will live in your home for many years to come – things change. It is prudent when looking for a new home loan to obtain one that is portable. A portable home loan can be transferred to a different property saving you extra loan set up fees.
Stay away from bridging finance
Bridging finance is a temporary loan available from most lenders which allows you to settle on the purchase of one home while waiting to sell another.
It often happens that you see a house you like more than your own. You know you can afford it. It is a bargain. All you have to do is sell your home first. So you sign a purchase contract and then put your property on the market. That is when things start going wrong….interest rate goes up…market is slow…..you know your house is worth more than the best offer you have received to date. You decide to wait but also need funds to settle on the new purchase. All the savings you have made on the purchase of your new home will go down thew drain in a matter of days as a result of a bridging loan. Theses loans are very expensive and best to be avoided.
Our advise is simple – If you need to sell, do not buy before you sell.
Is the loan right for you?
Choosing a loan is about knowing what you want. You only want to pay for the loan features that you need. If you only need a bicycle, don’t buy a motor car.
Different loans have different purposes so you must match a potential mortgage to your needs. Taking out an interest only loan is great for investors but if you are looking to live in the home and pay it off quickly, principle and interest is best.
Dropping the features you don’t need can save you up to 1 per cent on the interest rate of your loan. Over 25 years that’s a lot of money.
Consider non bank lenders
As recently as 10 - 15 years ago most people had their mortgage with one of the major banks.
Since the advent of the mortgage managers, there’s been a lot of talk about smaller and “non-traditional lenders” offering very competitive home loans at low rates.
We are always puzzled by borrowers who worry about getting their mortgage through an entity who is not a household name. Why worry – it is you who have their money, not the other way around. If the terms of the loan are good and the rate is cheap – we say go for it….
If you would like to learn more about getting a great home loan and paying it off faster please visit
webdeal.com.au www.webdeal.com.au or
honeyloans.com.au www.honeyloans.com.au
Maya Pavlovski holds a Bachelor of Commerce degree from Melbourne University and is a qualified CPA
