Cash management tips for small businesses

US-PDGov

Are you flabbergasted witnessing relatively handsome profits on paper but less cash flow in reality? The stark discrepancy in the accounts might be a result of inefficacious cash management which, if overlooked might land your business on the rocks.

Ineffective management of cash in a small business is not seen with a favorable eye by investors, who would obviously not want to invest in a company, which has no stability. Hence, to keep your company viable, it is imperative to learn the ways of managing cash efficiently so that the cash not invested on any fixed inventories is available to you in optimum amounts at any given point of time. Here are a few tips on managing your cash flow effectively. 

Timely payment – One of the biggest causes of small businesses going bankrupt is customers not paying on time. To ensure that your customers are not delaying your business deals, you require to be on your toes to prepare and send your invoice as soon as the goods are delivered to your customers. A mention of penalty charges in case of payment received post due date can speed up the process. 

Laying off or tightening credit for customers- When your customers fail to pay you on time, you too get delayed in paying off your suppliers and a vicious circle is created. In order to ensure that your working capital is managed effectively it is required at times, to lay off certain customers who have not paid dues for a considerably long time or to restrict credit lines for those who have been constantly delaying payments. Of course, you cannot take such a step suddenly and it is essential to analyze the history of payment of the customers on grounds such as how many days or months they are behind, whether they have paid the full balances after a lapse of the due date and the likes. 

Analyzing new customers- While keeping a track of your old customers you cannot simply rely on the new ones that you are getting linked with. Therefore, if your customer is asking for goods on credit it is important to check into their financial background and past credit records. It is also advisable to refrain from sending further orders till the time the past dues are cleared. If your customer is unable to pay the whole amount, try to convince them to pay in installments. 

Managing taxes- Business entrepreneurs are often seen burdened with too many taxes and if you too are facing such a situation, it is time that you sit to discuss ways of optimizing tax outflows with your attorney. 

Managing communication and inventory costs- Doing away with too much money spent on communication in the form of telephone bills is an equally important thing in cash management. Instead of splurging on phone and mobile bills, resort to Voice Over Internet Protocol or VOIP systems as an option for effective and inexpensive means of communication. In case of inventories, do not order more than is required, while attenuating on the quantities of those, which are not selling frequently. 

Finally, growing the surplus cash either by creating a savings account or by investing it in some other way is a sure way to boost your business by efficacious cash management.

Becoming a better trader by using a stock trading journal spreadsheet

By Trade Analyzer

What is a stock trading spreadsheet?
A stock trading spreadsheet is a tool that helps traders keep track of their performance. The goal is to determine which trading strategies have been successful in the past, and which have not, and why. Many stock trading spreadsheets are based on widely-used programs like Excel and are customizable for different kinds of products, such as stocks, options, futures, Forex, ETFs and equities. Stock trading spreadsheets allow users to keep abreast of market trends, plan and track trades, print data reports and make use of financial reference tools. Performance data can be used to identify stock patterns, trader “errors” and trader “strengths.”

What does it do?
Stock trading spreadsheet programs can backtest trading strategies to show whether or not they’re likely to produce a profit. Traders can avoid making a costly guess; they can move forward based on data rather than hope. For example, if a trader believes that a stock or group of stocks will perform a certain way under certain market conditions, he can test his guess to see if it’s performed that way in the past before he commits his money. Some stock trading spreadsheet programs also calculate the odds of a trader making or losing money at any given time based on factors such as the amount of money invested, the risks assumed, and the number of trades, among others. Some programs provide trading flags to alert traders to risk or opportunity. Others offer analysis based on data entered. Spreadsheet programs may also help traders stick to their chosen strategies when they’re tempted to trade on emotion, especially if the data shows that trading on emotion didn’t work out in the past.

What are the advantages?
The main benefit of a stock trading spreadsheet program is that it tells traders how well, or how poorly, they’re doing in the stock market. It may keep some traders from throwing good money after bad, or inspire them to study the market more before committing their money to trades. The program may prompt traders to think about why they’re making trades, and to base those decisions based on facts rather than feelings. The standard disclaimer, “past performance is not an indicator of future results” still holds true, but a stock trading spreadsheet program may force some inexperienced traders to analyze risk and the odds of success before plunging into the market.

Download MyTradeAnalyzer's free trial and try the stock trading spreadsheet risk-free today.

5 riskiest places to use your credit card

Most of us assume that swiping a debit or credit card is going to be a secure transaction. While that is true in most cases, there are places that are easy targets for identity thieves. Here are five points of sale that can be easy pickings for the dishonest people of the world.

Non-Bank ATMs

There is no way to say enough bad things about ATMs that are not owned by a bank. The encryption is often less secure than at bank ATMs, free standing ATMs can be more easily hacked, card readers have been attached to the legitimate swipe area, and some of these machines are actually fake. Thieves have been known to place defunct ATMs around large cities then sit back and wait for the card information to flow to them.

Flea Markets

Flea markets are great places to shop, but risky places to use a card. Many of these venders travel from market to market making it hard to resolve any card issues. Very few of them have point of sale terminals, so they make carbon copies of your card. While these vendors may be legitimate, there is a chance that they will lose the copy.

Foreign Hole-in-the-Walls

Credit card issuers report that small shops and quaint restaurants in foreign countries have a high percentage of credit card fraud. Issuers generally write off these fraudulent charges with no consequences to customers, because the merchants can't be located. Why take a chance. Use cash if you go to a shop that may not be on the ''beaten path.''

Public WiFi

Buying online can be risky. That is not to say that you shouldn't shop online. Always check to see if the site has a Better Business Bureau stamp of approval and look for a secured shell logo. It is even better if you are directed to Paypal or another online payment system. That will give you an option to request your money back through a third party.

Shopping online is commonplace today. In the vast majority of cases the transactions are secure when made from you home computer. Problems arise if you use Wi-Fi hotspots or public computers. Even if you are on a secure page, your information can be stolen by a savvy hacker using the same Wi-Fi or who uses a public computer after you.

Many identity thieves count on the complacency that most cad users display in their everyday lives. After all, swiping a card is as automatic as breathing. It is up to you to protect yourself and ensure your financial security at every terminal that you approach.

Citations:

• FTC Identity Theft Resources

Taylor Brown's company, Credit Repair Zoom, teaches you how to repair your credit after identity theft.  He hopes this article will make you think twice before swiping your card under high-risk circumstances.

Financial news: 09/28/2012

• AM.NY: World bacon shortage imminent in 2013 due to high costs
• BEA: Emergency shelters heavily populated by 40-60 yr old males
• Money News: Global economy in jeopardy from fiscal cliff per Fitch
• Bloomberg: U.S. public at odds with tax-and-spend solutions
• CNBC: Average household student loan debt: 20% over $26K
• CNN Money: L.A. unemployment at critical levels, workers give up
• Reuters: Spanish budget includes more austerity for Eurozone
• AP: Money market funds under-capitalized per regulators
• Business Insider: Majority of indicators bearish per RBC strategist
• BBC: U.K. economy shrank .4% in Q2 2012
• NYT: E.C. says U.S. Boeing subsidies illegal; wants $12 bln/yr

How to raise prices without scaring your customers

At some point, a business must increase the prices of its products and services. On the business owner’s part, he or she might be hesitant to make the move because customers might leave and look for a lower priced alternative. Raising prices is inevitable but there is a way to lessen the impact on your customers.

Why are your raising prices?

You must have a good reason to raise prices. Don’t just raise prices because you want to make more money. If your raw materials have raised prices then you must raise the prices of your end products as well. Another reason to raise prices is your product support. If you are seeing that you are no longer profiting from these added costs, then you must start to raise prices. Always have a credible reason to raise prices so that your customers will be able to understand the move.

Warn your customers

Facebook, Twitter and your blog are good avenues to start communicating with your customers. Inform them of what’s going on with the company, its processes, etc. and start readying them for an increase in prices. Inform your customers several months beforehand, if you can, about the change in prices. Explain what’s going on in your company and encourage your customers to give their opinions about the issue.

Appreciate your existing customers

Give your loyal customers something. Don’t forget that they helped you get where you are. Give them special discounts and special offers to show them that you appreciate their loyalty. You can just charge the difference to your new customers so you only have to raise the price slightly for the old ones. Give them time to adjust. If you have explained your side well, your old customers will appreciate the gesture and support you even after the offer expires; this helps keep sales forecasts strong.

Provide more value

Surely there are other areas in your business that you can improve on such as customer service. If it takes you a day or two to answer queries, try to improve your system and make it within 24 hours. You can also provide your customers with more useful information through your blogs. It doesn’t always have to be about your company or products. For example, if your product is a cleaning product, write blog posts about how to remove tough stains or tough dirt or how to make cleaning easier or how to get kids involved in the cleaning process.

Increasing prices is a natural thing that every business must go through. The main point is to get your customers ready for the big change.

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Financial news: 09/27/2012

• Bloomberg: Bank leveraging too high per FDIC Chairwoman
• Fox Business: U.S. banks continue to be victimized by cyber crime
• CNBC: QE3 leaves Federal Reserve Bank impotent in new crisis
• Daily Finance: Retail holiday hiring risky per sales forecasts
• BEA: Gross domestic product for Q2 2012 revised down to 1.3%

• DOL: Jobless claims 09/22, 329K ↓ 26K ; average ; 374K; ↓ 4.5K
• Dept. of Commerce: Manufacturer orders down 13.2% in August
• CNN Money: Buying rental properties an investment "trifecta"
• Reuters: St. Louis Fed. President says QE3 launch is premature
• AP: Only 29% of CEOs polled plan to hire in the next 6 months
• Business Insider: Corporations low-ball exec. pay to shareholders
• Newsmax: Mortgage bonds 49 basis points lower than loan rates
• Zero Hedge: USPS on course for bailout via unpaid debt
• BBC: French joblessness now over 3 million per labor ministry
• NYT: International regulators beginning to crack down on HFT

Social Security's unknown future and 401(k) investing

One of the great political questions of our day is whether or not Social Security can be saved, and if so, how?

 

There are many competing voices in the press, from financial advisors, the elected officials on Capitol Hill, and other politicians, about what is the best solution for the ills that plague this government institutionalized program that began under President Franklin D. Roosevelt. It is crisis time for many Americans who depend on their monthly disbursements, and all they want is a reasonable and sustainable solution that will guarantee them that the money they were forced to place in this system actually returns to them.

 

What was Social Security supposed to provide?

Many millions of Americans rely on social security benefits to meet their monthly financial needs, and most aren’t swinging from grand chandeliers in palaces of gold. Social security was never intended to be the sole providers of retirement income. In the past, family members, churches, and communities banded together to take care of the aged members of society.

Over time, since the Great Depression, the government saw and took an opportunity to tell people that they were unable to save, invest, and provide for themselves.  Instead, the government would take part of their income and sock it away until one turned 64 and they then would get their money back in monthly increments. This is not an investment but a taxation, mind you. Congress has used this money for years for other purposes, radically depleting the social security account our nation is supposed to maintain. Both major political parties have varying solutions to the problem without confessing that they are the problem. It has become a piggy bank that simply does not get repaid. “Just print more money,” seems to be their mantra.

 

Affect of the Babyboomers 

Now with our aging population, suddenly concerns about the veracity and sustainability of social security have come to the forefront of political talk and rightfully so, our population is worried.

For many who have seen their 401(k) accounts melt away in the radiant remains of the current economic downturn, their government check each month has increased in value and importance to them. New strategies have had to be employed as worry and fear about being able to continue a certain quality of life have run head on into the reality of their former dreams and goals about retirement.

 

Hope is still alive

Still, opportunities exist for those who are seeking to rebuild their 401(k) so they are able to still fulfill their retirement dreams and goals, but it will take finding the right financial advisor. Rock Hill retirement planner Matthew Griffin suggests that relying on your company’s 401(k) manager is not wise because their job is not to help you plan for your future and they typically are not investment experts.  This new era requires a steady and sober approach to the marketplace if one is to rebuild their accounts and get back on course. He also suggests that people under 40, who still have more time to rebuild than those who are older, should not allow that extra time to make them unworried.

Griffin suggests you take hold of the freedom we have to be more in control of your economic future, especially since social security may not be around by the time that age group retires. It is less about being aggressive in the marketplace than being wise with your future. Let your money work for you. Regardless of what plan Congress finally decides on, social security will never match private sector growth (or the potential of its losses) but with a little help from a financial advisor, you can climb the mountain of your future goals with confidence and hope. 

Revenflo Web Team: A team of SEO writers dedicated to making the internet a better place

How to re-build your financial confidence

On a global macro-economic scale, 'recession' and 'economic downturn' have become common phrases in the last five to seven years. But it is not just countries that face these issues - many individuals or families are facing their own recession and economic downturn. Because of the financial complications on an international level, many individuals have lost their employment or have had their hours reduced, which, in turn, has lead to financial hardship, high debts and even, in many cases, bankruptcy. What's more, the reduced financial means can lead to a loss of financial confidence. As a result, many households are scared to spend at all and will avoid investments at all cost, even if they are almost sure to be highly lucrative. Needless to say, this can only come as a disadvantage to those already strapped for cash.

Personal marketability

Financial confidence can be knocked by a variety of factors: the loss of a job, reduction in salary, inability to repay debt or other reasons. There is always the opportunity to recover from financial hardship but confidence is the key to this. In order to improve your financial position, you must have confidence in your own marketability. This is precisely where things start going wrong for many affected by the economic crisis. Which is a shame, since the road to recovery is actually pretty straight-forward: When financial confidence is reduced, it is important to simply step back and have an honest appraisal of the situation. In order to rebuild financial confidence, it is essential to go back to basics such as accurate and honest budgeting and have expectations that are realistic and not overly ambitious.

Expert advice

This may not always be enough. To re-build financial confidence, it may, however, in some instances nonetheless be necessary to take some expert advice; this advice may be from an independent financial advisor, a debt counsellor or perhaps an organisation such as the Citizens Advice. These organisations may look at all the facts and figures from a clear and practical perspective and provide advice on how to progress in a positive fashion. There is also online information available and websites such as Moneysavingexpert.com provide information on various aspects of money management and debt consolidation and reduction. Visiting websites like these should be part of your daily routine – and by subscribing to their newsletter, you can make sure to never miss out on sensible advice and helpful suggestions.

Positive action

Very often when individuals are affected by a financial crisis, they become unable to see a way forward. It is indeed very easy to become apathetic and inactive and simply resign to one's fate. Instead, it is essential to take small and positive steps forward. It is important to recognise that there is a problem, assess the overall impact of that problem and look for actions that will alleviate the situation. Debt counselling may present a positive opportunity to learn from mistakes and rebuild financial confidence. Organisations such as the Consumer Credit Counselling Service can offer very sound advice and help for anyone in financial difficulties. CCCS is a charity and will not charge for advice and help. However there are some organisations that offer similar service but may charge for them – make sure there is a definitive advantage to working with them and that their charges are justified, if you're interested in making use of their services.

Another important step forward can lie in applying for a basic bank account online. This new type of bank account can assist you in significantly improving your finances, reducing your debt, bringing your earnings and spending into balance again and help you budget more sensibly. This is achieved by only allowing you to spend what you really have and eliminating all overdraft- and credit-facilities from the equation. It may take some time to get used to this, but you'll come to appreciate a guaranteed account precisely for these missing facilities and the chance to get back into the black again.

Individuals can feel powerless when in financial difficulty but there are many small actions that can be taken to alleviate difficulties. It is important to be honest and practical and listen to advice before making any decisions but there is no debt or financial problem that cannot be solved – it is true on a global macro-economic scale and it is certainly true for you personally. 

By William Masters

William Masters is a respected finance journalist, who has contributed to a wide range of print- and online-magazines. He currently lives and works in London.

Financial news: 09/26/2012

• Bloomberg: SEC confirms HFT is used to manipulate markets
• NYT: Ex-regulator calls Treasury Secretary apologist for Wall St. 
• CNBC: Caterpillar's profit warning a bad long-term economic omen
• Dept of Commerce: August new home sales down .3% from July
• S&P: Peak season home prices led to 1.6% price rise in July
• CNN Money: Credit scores used by lenders affected by loan types
• Reuters: Logistics companies continue to warn on economic slowing
• AP: Philly Fed. President says QE3 to probably "fall short of goals"
• Business Insider: Global economy struggling to grow  per CITI
• ZH: U.S. economy fell from 2nd to 8th most free per Frazer Inst.
• BBC: Economic protestors shot with rubber bullets in Spain
• Fox Business: British banks to transfer LIBOR setting to regulators
• Money News: Joblessness linked to China trade policy per Trump

Tips for high-schoolers concerned about high education costs and their financial future

Being in high-school is when you first experience many adult freedoms without the responsibility of being one. The benefits of being mature are not the same as maturity itself. If you deny it, life will catch up with you; if you accept it, life will be less fun; and if you deal with it well, you will probably experience more advantages of adulthood. On a multiple choice test the last of these three options is the correct answer.

Understand debt without income is risky

If you retain only one thing from this article remember this: Debt without income is very risky. It is about as risky as jumping off a three story building thinking you won't brake a limb, driving drunk without a seat belt, promiscuous unprotected sex etc. Any debt, whether it is from education costs,  credit cards, auto loans or mortgages  ̶  all of which you will become very familiar with as you get older  ̶  is like a potentially addictive drug that will woo you into complacency before undermining your world. Income on the other hand is your best friend, very useful in the world, and essential to live. You will most likely be required to earn it when you get older ̶ for real.

Know that reality changes

Another very important concept you should be informed of is that it is very easy to confuse reality with illusion. In high-school we are taught how to pass standardized tests, learn how to think “methodologically,” and how to follow through on the instructions teachers give. This is quite possibly the only reality you know, but it is not the only one. The reality of adults is very different, and is about as far away in the future as ninth grade is for a senior ̶ closer than you think. If you think your life will be super easy after high-school or college, know that it is more likely your home team will win the Superbowl at least two years in a row. Adult reality is not accommodating, and does not care if you pass or fail ̶ this will be your world within a few years.

Beware adulthood involves responsibility

If you do not accept what adulthood entails, you will be at a serious disadvantage. Consider this a wake up call no less important than a pain reliever after a hangover. If you are lucky, your parents are actively preparing you for adulthood in a good way. If they have not, be aware life also involves a serious dose of difficulty, work, struggle, sacrifice, and sadness; these responsibilities far exceed anything you will be challenged with in high-school, so don't fool yourself in to thinking you're ready to bat over 300, because you're probably not. There is a high probability you will be forced, yes forced, to perform perfectly at something you hate when you become an adult. There is very little chance of escaping this reality and the sooner you accept it, the better prepared your mind will be.

Learn to invest

Investing is essential if you want to get out of the adult trap as soon as possible. College is a high-risk investment; it used to be a low-risk investment, but is no longer. Investing takes skill, it is not easy even if you are led to believe it is. No trading software tool in the world will cause you to make money, you have to know what to invest in, and that takes careful planning. Slow and steady, as boring as it is, really is a good way to do it. Learn about dollar-cost-averaging, FDIC insurance, play investment simulations ̶ also not reality as they do not include commissions and hidden fees; learn everything there is to know about money and do not assume you will excel at investing.

Do not assume anything

Assumption is your enemy and is the most useful tool the world has into making you think something that is not the case. If you do not have something confirmed and preferably written down, it is not guaranteed. For example, do not assume you are so amazing that you will not have to deal with real bad problems after you leave high-school. Do not assume you will be able to buy a car with an amazing job because your grades are good, do not assume a degree will cause employers to beg you to work for them even if it is in something “assumed” to be lucrative. Assume nothing, things change, demand for people and skills fluctuates, mortality is only a breath away, competition can be fierce, assume nothing.

The Self-Employment 401(K)

It is a common misconception among contractors and other self-employed individuals that they do not have access to a 401(k). The individual 401(k), aka a solo 401(k), has been a legal tax deferred retirement option since 2001. The problem has been, and still is, that very few people have heard of it and only a few investment companies offer the option. Vanguard, Fidelity, and E-Trade are all offering these plans now. Here are a few details about this retirement savings option.

 Solo 401(k) Details

• You can contribute up to 100 percent of the first $17,000 your business makes.
• Although it is called a solo 401(k) your spouse can be part of the plan if they work for your company.
• If you work for another company full time and have self-employment income on the side, you can contribute to your company's 401(k) and a solo 401(k), doubling your retirement contributions. In this situation, you can only contribute 25% of your profit instead of the $17,000 limit.

What Paperwork is Required

There is, of course, some government required paperwork to establish a solo 401(k). This is minimal, well minimal for the government. It may take up to an hour for the initial round of paper shuffling. Then there are some guidelines and filings to keep in mind. You will need a Federal Employer Identification Number(EIN), which takes all of five minutes to get online at irs.gov. You do not need the EIN if you are incorporated. If you are unincorporated, you will need to use the EIN for the 401(k) paperwork and enter it, along with your Social Security number, on Schedule C of your 1040 at tax time. If you find yourself in the enviable spot of having more than a quarter mil in the 401(k), you have to file an additional form with the IRS.

TurboTax versions that support self-employment income understand solo 401(k) contributions. This should help at tax time. Unfortunately, these accounts are so unheard of that some accountants do not know what to do with them. You may want to make your accountant aware of what you are doing so that they can get up to speed before it is time to file.

The guidelines and points of interest mentioned above are only a few of the items to be considered before you open an individual 401(k). Make a call to all three of the investment firms mentioned above and ask for information. Each may offer a different set of investment options within their plan. Once you have these in hand, talk to your accountant again. It never hurts to have a second opinion on where you are going to invest.

This article has been provided by the finance experts at GetApprovedforaCarLoan.com.  We help people get approved for financing, even with bad credit.

Financial news: 09/25/2012

• Money News: Merk President states Fed. is breaking its low inflation mandate
• Bloomberg: SEC regulation encourages bond sales via yield transparency
• CNBC: Lower labor participation rate reflects job status of 35-54 year olds
• CNN Money: Wealthy more likely to vote due to political ties/influences
• Reuters: Japanese firms shut down China plants after anti-Japanese protests
• AP: European employment networks squeeze out young qualified candidates
• Business Insider: Scrtry. of State Clinton advocates higher global wealth tax
• BBC: IMF likely to cut global economic growth forecast in October
• NYT: Obama Admin. warns hospitals & doctors of claims abuse suits
• InvestorPlace: Banks expected to outperform in Q3 per forecasts

What to do after you win the lottery

Your dreams have finally come true—you won the lottery. You’re either jumping for joy while screaming at the top of your lungs, or you’re staring blankly at the ticket experiencing both shock and awe. Once the initial shock factor has settled in and before you make any rash decisions, you need to do a few things as soon as possible to ensure that you receive your winnings.

Sign the ticket.

This may seem strange, but once you’ve found a winner, it’s a good idea to sign the back of it. According to a spokesperson for the New York Lottery, a lottery ticket belongs to whomever signs it and presents a photo ID while turning it in. If you lose the ticket but you signed it, nobody else will be able to collect your winnings.

Put the ticket somewhere safe.

You need to make sure that you put the ticket somewhere safe. There are a few things that you need to do before you claim the money, so it’s very important that you don’t lose the ticket in the meantime.

Keep a low profile.

This may be the most difficult thing to do, as you want nothing more than to tell everyone you know. The problem is that the more people who know, the more people who will come asking for handouts, including those you don’t even know. Even worse, the more it puts your life in jeopardy from some greedy individual who wants to take it all away from you.

Meet with a financial planner.

Before you turn in the ticket (you usually have between 90 and 365 days to claim your winnings), you should meet with a financial advisor. Before discussing what to do with the money, you should first discuss the different options for claiming your prize. With the lottery, you can either receive all of the money in one giant sum, or you can receive it in smaller sums spread out over time. The taxes you pay will depend on which way you opt to receive the money. If you take the lump sum, you’ll need to pay taxes right away. If you spread it out over time, you’ll pay taxes only on the money you receive. If you want to invest some of the money, you will also want to talk over your options with your financial advisor. They can help you set up the best accounts and investments for your goals.

Hire a lawyer.

You will need to hire a lawyer to help you through all the legalities that come with winning the lottery. To be safe, you may want to use a lawyer that you’ve already worked with. If you’ve never needed a lawyer before, ask close friends or family members for advice, but you may want to refrain from telling them why. You can always perform your own search for a lawyer too if you don’t receive any valuable leads.

Contact the lottery.

Once you have your plan in place and your team of advisors all set up, you will need to contact the lottery to let them know that you’ve won. You can contact either the head office or one of their regional branches, depending on where you live. Depending on your state, you may be able to claim your winnings anonymously, but some states, like New York, make this information public record. So if you were keeping a low profile, you may not be able to for long.

Ensuring that you keep your ticket safe and hire all the right people is essential if you win the lottery. Make sure to keep a low profile, or you’ll be getting calls for handouts from complete strangers.

Provided by Marketing Resources a promotion fullfillment company.

Financial news: 09/24/2012

• CNN Money: Apple shares account for 2% of the S&P 500s gains to date
• Option Queen: Fed's QE3 will not end well due to uncontrolled effects
• AP: Junk bond yields shrinking due to Federal Reserve intervention
• Bloomberg: Cost of acquiring new oil becoming too expensive
• AOL: Low income New Yorkers spend near 25% of income on tobacco
• BBC: U.K. August deficit of £14.4bn highest on historical record
• CNBC: Amount of European Stability Mechanism's leverage uncertain 
• BI: German renewable energy requires inefficient power consumption
• Zero Hedge: Greece under-reported its Jan-Aug budget deficit by €7.5
• Money News: Chinese company layoffs increased to 20% from 13%
• Reuters: Chinese real estate market rebound unlikely due to regulation

The top 5 richest living rock stars - Who do you think they are?

Everybody knows that the best entertainers in the world are loaded with money and live very luxurious lifestyles. If you are a huge fan of rock and roll and cannot get enough of this music that has changed the world over the past five or six decades, you might be interested in knowing who the top five richest living rock stars are. Here is that list:

Bono

You are probably very familiar with Irish born Paul David Hewson or Bono – the lead singer in U2. Bono helped launch U2 onto the international stage back in the 1980s with his amazing voice and strong stage presence. Bono wrote all of the lyrics to the US song and often injected political, social and religious themes into the music. Bono has made millions off his music. However his net worth of more than $1 billion did not all come from music as he has dabbled in all types of business affairs over the years. He has collaborated with some of the world's biggest stars, wrote music and lyrics for Broadway and has invested in the Forbes Media group. Bono's launch into first place on the list of richest rock stars occurred recently thanks to a wise $90 million investment he made in the Facebook brand back in 2009 which is now worth over $1 billion.

Sir Paul McCartney

Sir Paul McCartney is best known for his role as guitarist and singer in the Beatles and for his later collaboration with John Lennon. Once the Beatles broke up, McCartney pursued a solo career and formed his own rock and roll band call Wings. McCartney is considered the most successful song writer and recording artist of all times. Sir Paul McCartney has an estimated net worth of around $800 million which some analysts say is a rather conservative guess. McCartney continues to earn royalties from his music and also brings in money by performing in front of live audiences the world over.

Sir Elton John

English born Reginald K. Dwight or Sir Elton John as he is known today has an estimated net worth of about $309 million. In his career which thus far has spanned over four decades, John has sold hundreds of millions of records.  He has enjoyed seeing dozens of his hits top the charts in the music world both in the UK and beyond and is a member of the esteemed Rock and Roll Hall of Fame to which he was inducted in 1994.

Mick Jagger

What would any rock and roll top 5 list be without the iconic Mick Jagger? With an estimated net worth of $300 million, Jagger's career has spanned over five decades. As lead singer in the Rolling Stones, Jagger earned a reputation as rock and roll's bad boy as he was heavily and admittedly involved in drugs and regular partying. Jagger has earned millions from his records as well as from the roles he has played in a variety of motion pictures.

Sting

Born Gordon Matthew Thomas Sumner, Sting was, before going solo, the lead singer and bass player for the rock band The Police. Sting has won numerous Grammy awards over the years for his music and is a member of the Rock and Roll Hall of Fame. Sting has an estimated net worth of $284 million and growing. He still performs live all around the world and continues to earn royalties from his music. Sting also has earned millions of dollars acting in a variety of films which were released from 1980 through 2011.

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Financial news: 09/21/2012

• ITPro Portal:  U.S. banks have been victimized by cyber-crime this week
• Business Insider: Western economies over-leveraged per Deutsche Bank
• Markit: U.S. manufacturing static in September per flash PMI of 51.5
• Markit: Chinese manufacturing contracted in September per PMI of 47.8
• Bloomberg: Largest U.S. pension cuts performance based bonuses
• AP: U.S. household wealth revisits pre-recession levels at $62.7 trillion
• Money News: U.S economic recovery cracking per Moody's economist
• Reuters: Ex-Fed Chief  says current Fed has too much power
• Zero Hedge: Federal Reserve a 4th branch of government
• Fox Business: Baby boomer retirements will put pressure on stocks
• CNN Money: Mortgage rates for 15-yr loans near record 2.77%
• BBC: European PMI reached a 39 month low of 45.9 in September
• NYT: UK Public entitlements are fueling an already high budget deficit
• CNBC: Spanish business leaders plea for government bailout

5 key real estate market numbers and ways to research them

By Marc Padilla

So what the heck is “the real estate market,” anyway? We hear about it all the time, but what does it really mean?
 

For economists, the real estate market is best described as the demand for housing at any given point in time. This snapshot is then used to compare the current market conditions to those at an earlier point in time to determine a trend line. For instance, if sales have increased compared to a year ago, then the market might be said to be “up”; on the other hand, if closings have fallen, the market might be said to be “down”.
 

Simple enough, right? Well, that’s only one way to measure the market. The market can also be measured using several other different metrics, including the average days on the market, the average sales price, or even the average difference between list and sales price, to name just a few. This wide array of possible measurements is why if you talk to 10 different people and ask them to describe your local real estate, you might get 10 different answers.
 
Unlike the stock market, the bond market, or even the commodities market, the real estate market cannot be defined by large barometers or indexes. This is one reason why you can’t watch the CNN news ticker and say, “Oh honey, look – the real estate market lost 100 points today.”
 

So how can you determine what kind of market you have in your area? Let’s take a look at five key numbers you must know before placing your home on the market.
 

1 - Average Sale Price. This figure represents the combined sales prices for all of the homes sold in your local market divided by the total number of sales.
 

2- Average Listing Price. In contrast to what people actually sell their homes for, this number indicates the average price that homeowners are asking for when they initially begin to market their homes.
 

3- Average Difference Between List Price and Sale Price. This number (usually expressed as a percentage) indicates the average difference between what people list their homes for and what they eventually sell their homes for.
 

4- Average Days on The Market. This is the length of time that it takes the average seller from the time she begins marketing her home to the date of closing.
 

5- The Inventory on Hand. This number (generally expressed in months, weeks, or days) represents how long it would take to exhaust the current inventory based on the current selling rate if no more homes were listed.
So where do you find these key numbers that can help you assess the health of your own local market? Here are five ways to explore your local market without even leaving your home.
 

1- Call a Realtor. The fastest way to find this information is to simply talk to a local real estate professional.  Realtors have access to in-depth market research, and most agents are happy to provide this information for free!
 

2- Go Online. Many local boards of realtors and the multiple listing services offer their market statistic to the public. In addition, many chamber of commerce organizations publish community statistics. Two new websites that provide both consumers and agents with high-quality sales data are trulia.com and housingpredictor.com.
 

3- Talk to the newspaper. Most newspapers have a section devoted to real estate, and many update the local market statistics regularly.
 

4- Talk to the assessor’s office. Local governments that tax private property have an assessor’s office whose job it is to determine the value of real estate in the community.  Often this office has detailed market statistics that are of public record and may be available in the office or online.
 

5- Talk to an appraiser. Appraisers are typically hired by banks to assess the fair market value of real estate. Because of this, appraisers must stay current on all of the local trends in the marketplace, and  they can be a terrific source of information.

Marc Padilla has been in the real estate business for over a decade, and recently began consulting for Cold Spring Harbor Homes For Sale.


Financial News: 09/20/2012

• Money News: NYU Professor says Fed is racing toward insanity
• CNNMoney: American credit scores rise; 1.4 mln in higher category
• Reuters: Wealthiest 400 Americans worth $1.7 trillion, up 13%
• Business Insider: Average healthcare penalty in 2016, $1,200
• DOL: Jobless claims 09/15, 382K, ↓ 3K; average 377.75K, ↑ 2K
• Bloomberg: Dallas Fed President cites higher inflation out of QE3/I
• CNBC: Tax revenue for Q2, 2012 increased in 40 states
• Daily Finance: Near 33% of consumer reviews are fake
• NAHB: August home construction down 50k to 750K
• NAR: Existing home sales for August rose 220K to 4.82 mln
• Bloomberg: European banks forced to pay more to retain clients
• BBC: Bank of Japan to initiate $126 billion in asset purchases

Financial news: 09/19/2012

• Money News: R.E. recovery shaky per Shiller Index co-creator
• AP: U.S. economic growth cut to 1.9% in 2013 by FedEx
• Fox:: MSFT to increase quarterly dividend to .23 cents/share
• BEA: Financial inflows to the U.S. down $76.2 billion in Q2
• NYT: General Electric claimed to owe the IRS zero tax in 2010
• CNBC: Gold price to reach $2,400/oz on stimulus per "pro"
• CNN Money: Romney video stirs questions of  fiscal duplicity
• BBC: Nearly 10% of Spanish bank loans are delinquent 
• WSJ: Japan-China trade threatened by Island territory dispute
• InvestorPlace: Crises, rally, & history indicate share price declines

5 fun ways to spend your retirement more sensibly

By Samantha

You invested your life, energy and time to help build a business, serve in the military or work as a law enforcement officer. Now that you have retired, it is your time to get your life back in your hands. Even though you loved what you did, your retirement is all about spending time doing what you love with the people you love.

To do that usually takes some money. With reports on the news each day on the down state of the economy, you may be wondering whether or not it is reasonable to spend your pension or if you should save it for a rainy day. While saving money is a wise choice, depending on how you spend your money, you could be making an investment for the future without even realizing it. For this reason, many people take out loans from online companies such as www.uspensionfunding.com to help them fund their golden years.

Here are a few fun ways you can spend your retirement money sensibly.

1. Do volunteer work.

Just because you have retired does not mean you will want to sit at home without socializing with other people. Volunteer work is a great way to get out and help a local charity while entertaining yourself with others who are just as passionate about life as you are. It is also a great way to save money.

2. Visit distant relatives.

Combine your love of travel with the comfort and fun of being close to your children and grandchildren. You will likely have a free place to stay and can spend time with the people you love without spending a lot of money.

3. Invest in a local business.

If you have always had a passion for business but were unsure how to get involved, use your loan to invest in a business in your area. You will not only be putting your money to good use, but you will also have a great opportunity to earn a return off of it.

4. Treat yourself to a nice dinner.

You may have pinched pennies during your youth, but now that you have your retirement, treat yourself to some fine dining every once in a while. This is a great way to explore new restaurants in your area and a good excuse to get together with friends.

5. Take a cruise.

Cruise liners are lowering their prices and making it far more affordable to enjoy some luxury on the open seas. This is a perfect chance for you to travel the world without overspending.

Your golden years belong to you, and to get the most out of it, you should live it up while you have your health. Use these tips to make sensible retirement decisions and still have fun.

Samantha really enjoys writing and one of her favorite things to write about happens to be finances. If you'd like to learn more about www.uspensionfunding.com, please visit http://www.uspensionfunding.com/

Financial news: 09/18/2012

• CNNMoney: Persons aged 18-34 bought 30% fewer vehicles '07-'12
• ZH: Short-term Bush tax cut policy extension likely per Goldman Sachs
• Bloomberg: Economic uncertainty increases unemployment per Fed
• BI: Severance contracts release employer from retaliation suits
• AOL: Fiscal Cliff, Spain, China, & policy biggest risks per economists
• NY Fed: State business conditions contracted to near 2-yr low in August
• Money News: A 100% chance of global recession per Marc Faber
• CNBC: EU countries thinking twice about Eurozone membership
• Reuters: Eurozone law prevents IMF from structuring loans
• NYT: U.S. files case at WTO over Chinese automotive subsidies
• AP: China files case at WTO over U.S. anti-dumping practices

Income protection insurance for unstable times

By Tracey Garrow

In these economically tumultuous times, there are some people who find it hard to justify making certain purchases that they deem to be of negligible importance. Yet for some reason, this distinction does not extend to things like fashionable bags or the latest in smartphone technology. But in so far as not to deny people the luxury of such things though, it would only make sense that the protection of their income using Income Protection Insurance should take precedence before everything else. Income is what allows them to enjoy such luxuries after all, among other things.

Income protection insurance

Above all else, the purpose of income protection insurance is to make sure that you will not suffer financially should your income stop flowing due to redundancy or illness. Your income is the most important asset you have since it allows you to feed your family, to pay for the bills, and to settle whatever financial obligations you may have. Without it, you will find it very hard to take care of your family where food, clothes and shelter are concerned.

• If you have income protection when you lose your main source of income due to illness or injury, you will then be able to claim the benefits from the policy which grants you up to 75% of your previous income, depending on the company. That might force some changes in your budget, but having 75% of your total income is a lot more preferable than having to dig into your savings in order to survive.

Qualifying for income protection

You have to understand though that there are certain things which will render you unqualified to get income protection or that could lead to the nullification of your benefits. For one thing, being made redundant through your own dubious actions can cause you to be denied a claim.

The same goes for when you are found to use illegal drugs for recreational purposes or if you were to be found participating in dangerous activities. Suffice it to say, getting an income protection policy requires you to stick with a safe life.

The right kind of protection

You should also be aware that not all providers of income protection are going to be the same in service and policies. Some will offer some pretty lenient guidelines as to the claim while others require a little negotiation. Needless to say, shopping around to make sure that you don’t get the wrong policy for yourself would be a very wise thing to do.

If you find the task of looking for the right kind of policy too difficult, consulting with an independent agent would be of immense help. The knowledgeable ones will be able to tell you which companies would fit your best while the experienced ones will be able to tell you exactly what you need to do to get the best deals.

Waiting time

Something you should consider before finalizing an income protection policy by the way is the waiting period for the claim. Most companies offer as little as two weeks before you can enjoy the payout, but longer options can mean cheaper premiums to pay for. 

A Layman’s Guide to Home Equity Loans

Outlining the clear benefits and risks for property investment beginners

By Heather Sanchez

Home equity loans are secured loans that require your home be put up as the collateral security. As a person who’s been involved in real estate investing for many years, I’ve used them to personally finance the renovations in order to flip and sell a property, as well as to secure a home equity loan on one property in order to finance the purchase of another property.

There are a many benefits to home equity loans over other loans, for instance:

• Home equity loans are advantageous for both the consumer and lender

—there is little risk to both as long as you can pay the monthly loan amount, and lenders feel secure because your home asset is the collateral

For this reason lenders are more flexible about the terms and conditions because of the loan’s secure nature

The home owners can utilize the home equity loan for any purpose they want—for example, to pay off personal debt, debt consolidation, home renovations, and even to pay medical bills

The monthly repayment on a home equity loan tends to be cheaper

Credit score aren’t as highly considered for the securing a home equity loan due to the fact that the security of your home is the risk

Most home equity loans are quick to process—approximately 5 business days to secure. The way a home equity loan is structured is also advantageous compared to other loans. Due to the fact that these are fixed loans, the repayment period tends to be longer (i.e., 10 years to 30—depending on the loan amount), and most lenders will offer the maximum amount due to the fact that they can garner more profit from it. You will be granted a home equity loan based on your current mortgage, meaning the loan amount is based on both the volume of the equity you owe in the home (or the outstanding in the mortgage) as well as the current market value of your home. Usually an assessment of your home is necessary in the loan approval stages. 

To secure a home equity loan with a lender

• Fill out a home equity loan application with your bank or financial institution
• You must provide proof of home ownership—via a title search
• As well as the current equity in the home (this is often done with a drive by assessment) as well as based on the type of home you own—obviously a single-family home would garner a larger loan amount than say a condominium or modular home
  
• You must provide proof of employment via pay-stubs or a letter of employment from your current employer, the last years of income tax statements can also be used as testimony
• All of this information is used to judge your debt to income ratio (or your ability to pay back the loan).

The risk of a home equity loan

For the home owner, the obvious risk to an equity loan is your ability to make the repayments each month, on time. If you fail to do so, the bank will repossess your home.

About The Author

Heather is a staff writer for Lifestyles Unlimited where she has been involved in Houston real estate investing for several years. She enjoys analyzing investment trends, laws, and practices while at the same time debunking any myths she may find. As the owner of multiple rental properties and “flipped” houses, Heather believes that Real Estate Investors help put money back into the North American economy.

Where to find small-business start up ideas

By Kasper Rugholm

If you know that you want to start an online business but aren’t sure what direction to go in, you may be getting frustrated and even be thinking about giving up your aspirations and just resolve to keeping your “regular” job working for somebody else. This, however, does not have to be the case. There are innumerable opportunities for successful small online businesses, you need only select the one that is right for you and put your hard work and dedication into building it.

When you are looking for small business start up ideas know that you don’t have to look to far or be overly ambitious about what you are going to do. There is no need to “reinvent the wheel” per se, only find ways to create a business that is strong, effective, and appealing to customers both in concept and in execution.

There are many ways that you can find small business start up ideas in your day to day life. Some of the places that you should look for ideas include:

• Your hobbies and pastimes: what do you like to do? What are you good at doing? Is there anything about these activities that could be translated into a business? Think about teaching, holding workshops, or creating products that are applicable to these activities.
• Your jobs: what kinds of jobs have you had in the past or have now? What skills do these jobs require? Is there something particularly enjoyable about these jobs or something that you think you could change?
• Your education: what did you learn while you were in school? Why did you follow this educational path? What type of electives did you take? Is there something that you would have liked to have studied but didn’t and now would like to pursue?
• The type of books that you enjoy reading: what genres are the most appealing to you? Why do these books appeal to you? What about them is exciting, stimulating, or intriguing? Are you more drawn to fiction or nonfiction? Do you tend to read about a specific topic?
• The sports that you enjoy: do you play any sports or are you strictly an observer? What about the sport do you love? What about the sport would you like to change? What problems do you recognize in these sports that you think you could address?
• What was the last online purchase that you made? How was the experience? What do you think that you could do better?
• Have your friends or family ever discussed small business start up ideas with you? Would they be interested in partnering with you?
• Are there any products that you often wish were available?

It can be extremely helpful to sit down with a piece of paper and write down all of your ideas. You may even want to carry around a notebook and pen, or take advantage of the note taking feature of your handheld electronic device. This will ensure that you are prepared if any ideas strike you throughout the day and you want to record them.

After you have written down all of your small business start up ideas, go through them more carefully and evaluate their potential. There will be some that are obviously out of the realm of reality, so you can cross those off. Others will require a little more investigation. As you narrow down your options you may find that one really sticks out at you. If so, this is the one that you should go with. Once you have made your choice it is time to start your business plan.

Kasper Rugholm has a Master’s Degree in Business Management and Economics and is an eager writer of articles about online business touching on topics about small business startup ideas, how earn more per customer and much more at http://www.startitupnow.com.

Financial news: 09/17/2012

• NYT: Biggest U.S. companies expected to post first loss since 2009
• CNBC: OWS attempts to revive movement with anniversary protest
• CNN Money: Employers avoid raises due to high unemployment
• Reuters: Chicago teacher strike extended to at least Wednesday
• Daily Finance: U.S. credit rating downgraded by Egan-Jones agency
• JP: Filing an IRS FBAR prevents 50% highest value tax penalty
• AP: European Commission seeking ECB supervisor for Euro banks
• Business Insider: Chinese corporate profits indicate a "hard landing"
• Bloomberg: China-Japan tensions rise on island dispute, diplomat dies
• BBC: Brazil's 2012 GDP growth cut back to 2%; 2010 GDP 7.5% 

Banking online: How to protect yourself from fraud and hacking

By Stella Brown

The Internet has simplified our lives. We use it to connect with friends and family, pay our bills, stay up to date on current news, shop and find general information.

Most of us are also using it to keep track of our finances. In fact, a 2011 survey conducted by Nationwide Building Society found that 77 percent of people bank online.

Online banking is much easier than the traditional method of physically going to the bank. Through your bank’s website, you can see a list of your transactions, see how much money is in your savings and checking accounts, transfer money, pay bills and even get a financial report on how your money is being spent. And now, thanks to the popularity of smartphones, you can even deposit checks without having to physically go to the bank.

But being able to access such a private facet of your life through the Internet does make some people nervous about being hacked and having their money stolen by an online predator. Luckily, there are a few things that you can do to ensure that your online banking information and financial security are kept safe and sound.

Create a unique username.

Online banking institutions require you to have a username and password in order to access your account. Most of us make the mistake in becoming comfortable with one or two usernames, and we choose this to be our username on our bank accounts.

Make sure that the username you use for your online banking is different than usernames you use for social media accounts, emails and even other online accounts you have. You should also try and get as creative as possible, but ensure that it’s something you can remember. For example, most people use their first initial and their last name, or their last name and a few numbers. Instead, use an alias that makes sense to only you.

Use a strong password.

Just like our addiction to using easy usernames, we also suffer from the plague of using vague passwords. If your password is weak, you’re making it very easy for hackers to guess. Make sure that your password combines numbers and letters, and use a capital letter and a symbol when possible. The stronger your password, the more difficult it is for someone else to hack.

It’s also a good idea to use a unique password for you online banking than any other account you have, but you need to make sure that it’s something you remember. Whatever you do, do not write your password down and keep it near your computer.

Create strong security questions.

Most online banking institutions require you to have security questions set up so that they can verify your identity. If your bank allows you to choose your own questions, make sure you’re choosing those that only you know. For example, stick to the most recent events as possible that are private to you. The Internet allows everyone to find information on anyone, and choosing a question that can easily be answered by Googling your name will not protect you.

Use fake security answers.

Some financial institutions do not let you choose your own questions, and they have a standard set of questions for you to answer that seem to revolve around an old pet’s name, a grandparent’s name or a city that you lived in—all of which can easily be located by anyone else.

Instead of answering these questions honestly, use fake answers that don’t make sense. If the question asks the model of your first car, say bologna. Hackers will not be able to get these answers from any online profile or public information about you. The only problem is that you’ll need to remember your answers.

Don’t give personal information through email.

Some hackers are creating fake emails that look like they’re coming from your financial institution saying there is an error with your account and they need you to verify it. These emails then ask you to provide a wealth of personal information, such as name, account number, and even your username and password. Your financial institution will never ask you to share this information via email, so make sure that you disregard any emails that look like they come from your bank. If you want to check the validity, you can always visit your bank yourself or even call your nearest branch.

Online banking can make life much easier, but you should always keep yourself protected from hackers by using these four tips.

Prepared by Stella Brown from Authentify, experts in biometric authentication.