Champ Money

We spend a lot of time focusing on money… Making more of it, and spending less of it. However, despite the commitment to strengthen our financial lives, we must not forget to enjoy ourselves and just take a break once in a while.

There’s still time to grab some sexy swimwear and head to the beach before fall. Or better yet, maybe a cruise to really catch up on the rest and relaxation.

Work hard, but don’t forget to play hard.

Most of us are quite comfortable with investing in cash deposits, government bonds, and stocks for conservative risk-averse investors. We hear these products discussed widely in the financial media. But rarely do we hear commodities discussed as an investment alternative. After all, what do commodities have to offer that stocks haven’t already provided?

Here are reasons why commodities can be a good investment:

- By diversifying your portfolio, the risk can be reduced, especially during recessionary periods such as bear markets where stocks tend to decline and lose value. Commodities tend to rise and this would counter the loss of portfolio value.

- Commodities trend better than stocks, not only on individual or also stock sectors and stock indexes. As such they are a better long-term investment vehicle. Trends tend to last short term such as a few months to a few years. When the trend begins, it is very unlikely there will be sharp reversals or unpleasant surprise.

- Commodity markets have large liquidity. Not all stocks are liquid even if they look very attractive earnings-wise, but exiting can be a painful process. In commodities, all commodities traded are highly liquid.

- Commodities have been trading for more than a century. More than 90% of stocks come and go. None are changed any way so there is more reliability in back-testing (review your strategy on past historical data) than others instruments such as futures and stocks where premiums change from one expiring contract to a new one, or stock-splits.

- At tax time, profits from commodities pay lower taxes than profits from stocks. In addition, there is no need to itemize all the transactions line by line where all stock transactions must be itemized. Long term or short term capital gains do not apply in commodities.

- Due to leverage, the gains can be spectacular, possibly many multiples of the original equity. For a small sum in the account, it is possible to more than double the account equity in a very short period of time.

- If the financial objective of the person is aggressive where he has high tolerance for risk, then commodities may fit is personal tolerance for risk. With a small equity, he can use for high-growth part of the entire diversified portfolio.

Here are some reasons against the investing in commodities:

- Daily Price Limit can prevent the investor from exiting a position if prices have reaches the day’s maximum price rise or decline allowed. This is especially difficult when his position is in a loss. Many times, margin calls will automatically exit the position. However, the account can be in the negative where the investor must fund additional money to the account to get back in black.

- There is lack of research materials covered in the media or in print compared to those covering stocks. The most popular financial books mainly use stocks as examples. Most brokerages and investment banks whose analysts cover industries and stocks. Investors like to see easily available and up-to-the-minute information which can be made available but not in a wide variety.

- The leverage is high, so small losses can make a big impact on the equity. This is a common scenario where the uninitiated and unprepared will see the account being wiped out.

- Future contracts constantly expire. If it’s a long-term holding, contracts must be managed properly changing to forward contracts. This can be tricky because premiums change from one forward contract to the next. Acute attention must be given in doing so.

If the investor is risk-averse in which he is content with small return year to year, then commodities might not be the right investment.

This list should not be considered final for any person to decide if he or she should trade commodities.

There are many other factors and priorities, such as financial situation, time and preparation of each person to commit before deciding. To effectively profit from any market, due diligence and preparedness is the method to obtain the desired objectives. Weigh each pro and con carefully and verify the arguments for oneself before committing hard-earned money to waste.

In our culture, the main goal of retirement is to put our working days behind us and devote ourselves to the pursuit of pleasure. Many find, though, that continuing to work in some form keeps them active and gives their lives purpose. Changing your concept of retirement may even allow you to retire sooner.

Retirement is far different today than what it was for our grandparents. In those days, life spans were much shorter and work more physically demanding. Most didn’t even make it to 65, and those who did were often forced to slow down due to health concerns. No one ever dreamed of having decades of doing whatever they pleased.

How times have changed! The ‘seasoned citizens’ of today are energetic, mentally sharp and physically fit. As a result, retirement should be viewed not as a cessation of work, but as a redirection of activity. Many are discovering this new chapter in their lives is even more meaningful and fulfilling than their years of traditional ‘work’.

When someone wants to be able to retire and stop working all together, it increases the amount they have to have saved to achieve that goal. For instance, if someone needs $30,000 a year off of their investments, they should have $700,000 or more set aside just for that purpose. Many haven’t built such a nest egg and think they must work longer before they can retire.

That’s not necessarily true. It all depends on your view of retirement. Many of the people I know would be bored to death if all they did was play golf and travel. They’ve reached the pinnacle of their careers and enjoy staying busy. They want to keep their minds active.

Changing your view of retirement may actually allow you to retire sooner. It may be possible to ‘retire’ from your stressful full-time job and become a consultant in your area of expertise. Doing so would allow you to better control your work schedule while still producing an income.

For instance, I was talking with a gentleman yesterday who took early retirement from a major chemical company, but still works for that company 20 hours a week as a consultant. He chooses his own hours and gets paid well for his efforts. Yet he still has free time to pursue his other interests.

I have another client who retired at 55 who works short-term assignments in various locations for the same company. It allows him and his wife to travel and to spend a couple months a year in a different country. That means he doesn’t have to tap his retirement money and he has the freedom to only accept the assignments he wants. Talk about having the best of both worlds!

Earnings from even a part-time position will have a major impact on the amount of money you have to have set aside. Using the example mentioned above, let’s say that working as a consultant part-time brought in $15,000 a year. The result is you would only need $15,000 a year from your investments. So instead of needing a $700,000 nest egg, you would only need $350,000.

Some seniors use retirement as a chance to pursue a new career entirely. There may be less pay, but there’s usually less pressure, too. And if your new career choice doesn’t pan out, you have the financial freedom to change course. Others might take a sabbatical from work for a year or so, then re-enter the work place with renewed energy.

Many seniors who are blessed with abundant resources are eager to volunteer their time to worthy organizations. Many skills important in the private sector are even more critical for non-profits, yet they are often the ones who can least afford them. What a blessing to be able to invest your considerable knowledge and abilities and truly make a difference in the lives of others.

Changing your concept of retirement can relieve the stress and pressure of attaining lofty financial goals. It will allow you to get more out of life while giving you more freedom. And when you love your work, it can give you a great sense of fulfillment. It turns out ‘work’ isn’t a four letter word!

Knowing how to negotiate and close a deal is one thing. Being able to structure different types of transactions and think on your feet when in front of a seller is quite another. You need to become a transaction engineer so whatever comes your way you can handle. Here are some examples to work from and build your real estate portfolio.

1. Buying a property in pre-foreclosure involves approaching the borrower/owner and offering to buy the property outright. The borrower/owner can walk away with something to show for any equity in the property and avoid a bad mark on his or her credit history. The buyer has time to research the title and condition of the property and can realize discounts of 20-40 percent below market value.

If the loan is not reinstated by the end of the pre-foreclosure period, potential buyers can bid on the property at a public auction. Buyers often are required to pay in cash at the auction and may not have much time to research the title and condition of the property beforehand; however, a public auction often offers some of the best bargains and avoids the unpredictability of dealing directly with the borrower/owner.

2. Owner financing (also called seller financing or owner carry-back) is when the seller of a property allows the buyer to pay all or some of the purchase price over time. Typically, the transaction is set up as a private mortgage which means that the seller holds a lien on the property just like a bank. In many situations, this may be an optimum solution for both the buyer and seller.

With owner financing, sellers have the opportunity to attract a larger number of buyers, and overcome potential valuation problems, which can result in a higher sales price of their home. Buyers can obtain a mortgage when they might not qualify for one otherwise, and can achieve lower closing costs which could result in thousands of dollars in savings.

3. Investing in pre-foreclosures with short sales has never been better. With our home study real estate investing course, we take you step by step and introduce you to a creative technique called a real estate short sale. Short sales allow the real estate investor to discount the loan from the lender. You must know this technique if you want to be competitive in today’s market.

4. A lease option is just a technique that involves gaining control of a property, but not ownership. Just the right to posess a property and purchase that property at some future with terms you define today.

5. Subject to is getting the deed to a property without getting a new mortgage Instead, the seller signs over the deed to his or her home “subject to the existing financing” staying in place. The buyer in this case makes the mortgage payments on the old loan, but does not get a mortgage themselves to acquire this home.

Both of these techniques usually require little or no money down. In both of these techniques it is possible for the buyer to get money from the seller or the purchaser (or both) in the beginning of the transaction. These techniques, when used properly, can provide for huge profits. They are awesome strategies and when used hand-in-hand, are almost an unbeatable pair!

6. Retailing a property as an investor usually involves buying a junker subject or with money from hard money lender, doing the necessary repairs and selling for a profit. While this can be one of the most profitable ways to make money in the business, I don’t reccomend it for a beginner in the business. Doing a lease option on a property you aquired subject to on a pretty house is one of the easiest ways to get started.

7. Wholesaling It is simply finding a bargain property and passing it on to a bargain hunter. That bargain hunter will be an investor who will either purchase the property to resell it or purchase it to hold it for rental income. Your profit as a wholesaler should be between $5000 and $15,000 on each house. In some cases it will be higher than $15,000 and on some deals your profit may be a little lower than $5,000.
Real estate investors choose to wholesale properties for a few reasons. They could be:

Quick cash, it is possible to turn a property around anywhere from 7 to 45 days and get cash in your pocket. If you need to get your hands on some cash quickly, this would be a reason to wholesale. Or, you may not need the cash immediately. You might just want to build your cash reserves. Wholesaling is a good way to do this quickly.

Too many houses – maybe you’re good at finding houses, but you find more than you need or can use at any given time. If this is the case, wholesaling is a smart move for you. You can still profit from your locating skills, even if you aren’t going to keep the property for your personal portfolio.

Flexibility – at any given time, you can determine whether you want to keep a property or sell it. This gives you flexibility as you locate and purchase properties.

Probably the most important thing that you need to remember when you decide to wholesale is, your buyer should get the majority of the profit! This is important because your buyer will be the one to purchase and rehab the property. There has to be enough room in the deal for your buyer to do this and still retain a nice amount of money for cash out and/or equity.

This does not mean that you find properties and give them away for $1,000. If you did that, you would be a bird dog, not a wholesaler. Your profit will vary depending on the house, but the better you are at locating properties and putting together offers, the greater your profit will be while still maintaining an excellent profit for your buyer.

They say taxes and death are the only absolute things in life. Whether this is true or not, you can prepare for both. While tax planning is an interesting subject, we are going to look at life insurance in this article.

A classic sketch of a conversation with a life insurance agent would show the person trying to buy a policy with their eyes glazed over. Why? The terminology being used is confusing. Well, let’s change that by discussing some or the common terms used.

References to Adjustable Premiums should be examined closely in any policy. This allows the insurance company to change the premiums on a block of policies during the term of the contract.

The Amount At Risk on a policy is something insurers pay close attention to. It is the difference between the face amount of a Whole Life Insurance policy and the cash value. The amount at risk is the difference, to wit, the figure the insurer will have to pay out.

The Cash Surrender Value of a policy is often misunderstood. It refers to the amount due a person who terminates a policy holding a vested cash reserve in it. There is often an arbitrary charge deducted by the insurer as well.

The Commutation Rights associated with an insurance policy apply to the beneficiary of the policy. Depending on the policy, the beneficiary may elect to convert installment payments to a lump sum payment.

Many modern insurance policies contain a Contestable Clause. This gives the insurance company up to 2 years to void the policy if they find evidence that would have resulted in the rejection of the policy application when originally made.

The Right of Conversion refers to an individual’s right to convert a policy held as part of a group into an individual policy if the person ceases to be part of the group.

The insurance phrase Double Benefit or Double Indemnity refers to a policy that pays out double the stated benefit if the person whose life it is based on passes away in a particular way, such as a car crash.

For many people, building up cash value in an insurance policy is a smart move. A Dividend Accumulation clause allows you to do just this, to wit, reinvest an dividend paid by the insurer back into the policy.

The Whole Life Insurance Policy is one of the staples of the life insurance industry. The policy provides a death benefit, but also accumulates cash within as premiums are paid in over time. There are many different ways to pay the premiums, so make sure to ask.

The Variable Universal Life Insurance Policy is a more recent and popular product. Premiums and benefits are adjustable. Money is accumulated in the policy and can be invested. The flexibility makes the policy attractive.

The important thing to understand about life insurance is that polices differ greatly. This means you must understand exactly how a policy being pitched to you works. If terms are used that you don’t understand, ask for clarification!

Have you ever found yourself in need of immediate financial assistance, with nowhere to turn to for help?

You’re not alone.

No matter how well a person maintains their budget, unexpected situations can arise with little or no warning. Quite often, in these cases, a Pay Day Loan might just be the answer.

If your needs are short term – holding you over until your next paycheck for example – this is a viable option. Possibly you’ve been dedicated to saving money each week, but you’re smartly saving it in a high-interest online savings account or money market, and it will take several days to make the money accessible. Or, possibly an emergency or legal situation has arisen, which requires more funds than you have available at that moment – and let’s face it, some things just can’t wait until the next paycheck.

PaydayLoansMania.com makes the entire pay day loan process quick and easy.

It’s no news that young drivers are very expensive to insure. Are there ways a young person can lower his/her quote? This article is just about those things a young person can do to reduce his or her risk level and, consequently, car insurance premium.

First it must be said that the high premium associated with the age bracket is nothing personal. Statistics over years have pointed them as the highest risk age group. The statistics vary from place to place. However, one thing always remains true: Of all age groups, under-25 persons are consistently the most accident prone.

This is due to several factors. At the top of the list is the general recklessness associated with youthfulness. Apart from this, they are also less experienced in the very act of driving and thus may not respond as well as more experienced drivers in difficult situations.

So here’s something that will help…

Take lessons in defensive driving. In case you don’t know what this means it is an advanced form of driving that goes beyond just obeying traffic rules to actually taking proactive steps to ensure your safety and that of other road users. As an example, a driver who has learned to drive defensively assumes that the other drivers on the road are reckless and so make room for them. If a car indicates that it is going to the right, a defensive driver will assume that such a car might as well go in the opposite direction.

This is certainly a simplistic explanation of a rather broad subject. However, you can certainly agree with me that undergoing such training increases your driving skills and thus lowers your risk on the road. This will affect your insurance premium positively.

Even after you have done this, make sure you take time to understand the process of making savings on car insurance. It’s a simple process that could result in savings of up to $1000.

As with most products and services, you can save money on cell phones by shopping online. In fact the top free phones are available at BestInCellPhones.com.

Clearly, one of the best reasons for shopping online for cell phones is for the ease of comparison shopping.

Rather than being offered choices from a single provider as you would find in your local cell phone company stores, shopping online allows you to select from any provider, all from a single website. And you’ll find what you’re looking for, even pink phones.

And you won’t miss out on any deals when shopping online. In fact, you’re more likely to find free razr phones online than you would be if you were shopping locally.

If you’re in the market for a new cell phone, now is the time to start shopping. BestInCellPhones.com is having their hottest summer sale ever, and free at&t cell phones are waiting for you.

While shopping at BestInCellPhones.com, you can easily compare prices and availability from the top wireless providers in the United States, no matter which region you’re in. You’ll find everything from Alltel phones to T-Mobile.

This will certainly provide a better shopping experience than you’d find while waiting your turn at your local store, and you’ll save money at the same time.

If you are anxious to get your investments started, it may be prudent to walk before you attempt to run. You could start by being a conservative investor with a low risk tolerance. This will give you a way to making your money grow while you learn more about investing.

Start with an interest bearing savings account. You may already have one. If you don’t, it would be a good idea to open one. A savings account can be opened at the same bank that you do your checking at – or at any other bank. A savings account should pay 2 – 4% on the money that you have in the account. It’s not a lot of money – unless you have millions in the account – but it is a start, and it is money making money.

Next, invest in money market funds. This can often be done through your bank. These funds have higher interest payouts than typical savings accounts, but they work much the same way. These are short term investments, so your money won’t be tied up for a long period of time – but again, it is money making money.

Certificates of Deposit are also sound investments with no risk. The interest rates on CD’s are typically higher than those of savings accounts or Money Market Funds.

You can select the duration of your investment, and interest is paid regularly until the CD reaches maturity. CD’s can be purchased at your bank, and your bank will insure them against loss. When the CD reaches maturity, you receive your original investment, plus the interest that the CD has earned.

If you are just starting out, one or all of these three types of investments is the best starting point. Again, this will allow your money to start making money for you while you learn more about investing in other places.

For many people, the next logical step would be to consider investing in stocks. Some first time stock investors think that they should invest all of their savings. This isn’t a sensible strategy. To determine how much money you should invest, you must first determine how much you actually can afford to invest, and what your financial goals are.

First, let’s take a look at how much money you can currently afford to invest in stocks. Do you have savings that you can use? If so, great! However, you don’t want to cut yourself short when you tie your money up in an investment. What were your savings originally for?

It is important to keep three to six months of living expenses in a readily accessible savings account – don’t invest that money! And don’t invest any money that you may need to lay your hands on in a hurry in the future.

So, begin by determining how much of your savings should remain in your savings account, and how much can be used for stock investments. Unless you have funds from another source, such as an inheritance that you’ve recently received, this will probably be all that you currently have to invest.

Next, determine how much you can add to your investments in the future. If you are employed, you will continue to receive an income, and you can plan to use a portion of that income to build your stock investment portfolio over time. Speak with a qualified financial planner to set up a budget and determine how much of your future income you will be able to invest.

With the help of a financial planner, you can be sure that you are not investing more than you should – or less than you should in order to reach your investment goals.

Golden rules to follow include never borrow money to invest in the stock market, and never use money that you have not set aside for investing!

A lady dreams of her ‘special’ day since she was a little girl. The princess wedding dress, a carriage with two white horses in a castle with Prince Charming by her side are all part of the dream.

Marriage is about two people becoming one. This does not have to break the bank. Besides, there are other expenses that come into play when an individual decides to marry.

Their first home, future children and their mode of transportation are all more important. This does not mean a couple could not get married in style. A wedding could look like a million bucks but it does not have to cost nearly that much.

There are various methods in creating a wonderful wedding without paying the price. Instead of booking an expensive hall or wedding location, choose a friend’s back yard. With a small payment, a park could be the place for an extravagant wedding.

The invitations could be designed to look professional from the couple’s home computer. Printed on stylish designed paper, this piece of the wedding creation can be fantastic.

The decorations and photography do not have to be lavish and expensive. Ask guests for flowers from their private gardens or plant some before the big day. This will save money and energy for other more important things in the wedding.

A couple could enlist the assistance of their friends and family to dress up the area. An expensive photographer does not need to be hired. On each table place a throw away camera and ask people in the invitations to bring their own cameras. This method will ensure plenty of pictures for a memorable occasion but will not be an expensive venture.

The food and refreshments are important for a wonderful wedding day. An individual could ask the partygoers to bring items for a pot-luck. Another way to feed everyone is if the wedding is in a park or somewhere outdoors, build BBQ pits and have everyone BBQ their own dinners. This is a great way to have a relaxed ceremony and remember that these friends and family are just that, there is no need for a formal dinner among friends.

Entertainment and the cake could be simple. The couple could ask three people to make a cake. Then

when they are all together place the cakes on top of one another. This will be a fun and exciting method to display the love and friendship through dessert.

The entertainment could be a stereo and CD’s that the couple enjoys. There is no need for a DJ or a surround sound system. This will be a fabulous way to take the first dance and enjoy each other with a stress free day.

A couple does not need a lavish wedding to have excellent memories and have a good time. The most
important aspect of this type of affair is togetherness and love. With the couple’s friends and family, the wedding will be a perfect experience.