How to navigate the life-insurance labyrinth

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Life insurance is one of those financial matters that is often complicated, time consuming and expensive. People are often naturally cautious of life insurance when they cannot understand the labyrinth of terms, scenarios and cost structures set out by the policy. This is a financially healthy perspective to take and reflects awareness of possible red flags in the insurance acquisition process.

Clarify

The terms of life insurance influence cost, however these conditions are not always favorable. For example, in a CBS MoneyWatch report, it is pointed out that the age of an insured person at the time of death affects pay outs. If this age range is unrealistic, then the benefits of the insurance are less likely to be obtained. When reviewing a policy ask specific questions that clarify broad claims. For example, if an insurance agents says the return of policy X will be Y amount per year that may be true, but is that before or after additional surcharges and fees? 

Research

Numerous variables affect the quality and cost of life insurance. For instance, according to the Wall Street Journal, life insurance agents have an advantage over brokers because they can offer lower rates by working with a single insurer. Being aware of all the factors that influence a policy as well as the various types of policies is important. To build consumer awareness, also consult and compare insurance ratings from companies such as A.M. Best, and take time reviewing the policy details before signing anything. 

Evaluate

Knowing how to assess and evaluate life insurance involves more than just referring to ratings and assuming it is the right financial decision. To illustrate, the insurance needs of a single person with no debt and no children are far different from those of an indebted single parent of three. Identification and incorporation of financial planning goals, in addition to individual and family needs is prudent before embarking on a long-term life insurance contract. Completing a life insurance question list such as the one provided by the Motley Fool Insurance Center is one way to accomplish this task. 

Decide

There should be no pressure to decide whether or not a life insurance policy is the right choice. Offer expirations, time related policy benefits and incentive rates are somewhat relevant, but also distracting to overall financial objectives that are more important. Effective policy choices take into account individual health, available insurance products, agent compensation and much more. Self-educating via sources such as CNN Money's "Money 101", rather than relying on just what a salesperson says helps with making informed decisions. 

Life insurance is a financial instrument that serves to protect financial needs and interests in addition to being a potential source of retirement savings. Life insurance products do have some advantages such as creditor protection, however they also have costs and require substantial financial commitment. When assessing life insurance, and in order to fully benefit from a policy, it is wise to consider future financial scenarios such as affordability after layoff, and opportunity cost in addition to financial security.

Financial news: 01/31/2013

• MN: Harvard economist says monetary policy "won't be pretty"
• CNN Money: Businesses are being stifled by regulation
• NYT: Business owners don't know their business' worth
• DOL: Jobless claims 01/26 38↑ to 368K; average ↑25 to 352K
• CNBC: Average student loan debt ↑ 30% in 5 years
• BI: An ex-law student robbed a bank to pay student loans
• ADP: The private sector added 129K jobs in January
• BEA: U.S. GDP shrank .1% in Q4, 2012
• FRB: Federal Reserve to continue with debt monetization
• Fox: Eurozone likely to remain intact despite recession
• BBC: Spain's economy shrank .7% in Q4, 2012
• Daily FX: Japan's Dec. production was1.6% short of estimates

Google Plus - Now 400 million users and counting

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By Annie Marsen

Vic Gundotra, Google’s vice-president has just announced that Google’s social network service, Google Plus, has exceeded 400 million users. However, it is estimated that only 25 percent of that 400 million are active users, a notable difference when compared to Facebook. Mark Zuckerberg’s company is just a small step away from reaching the 1 billion mark. Gundotra published a message on the network’s own Google Plus profile. He stated that the company has reached a very important milestone: more than 400 million registered users on their Google Plus service.

Too much growth for the web giant?

Gundotra mentioned that the company didn’t expect to reach the 400 million user mark so fast. He stated that Google’s social networking service has only been available for barely a year. To reach almost half a billion users in 12 months is astonishing, he added. However, Google Plus has still a long way to go in order to reach Facebook levels of success. Facebook allegedly has 955 million active users. However, it has been active since 2004. On the other hand, millions of people use Google’s services, especially Gmail. You can access dozens of Google’s apps and services by registering once. If you already have a Gmail, you can access Google Plus immediately.

Numbers too good to be true?

Google mentions that recently there have been more than 625,000 new users per day. Many analysts mention that a majority of Google Plus’s user base comes from people registering their Android devices which run on Google’s operative system developed for mobile devices. Estimates mention that there were nearly 700,000 Android devices activated daily. Those who own a smart phone or tablet than runs on Android are required to create a Google Plus account, whether they intend to use it or not. So the 400 million mark may be a false number rather than people actually sitting down and signing up for Google +.

User over 10 times more active on Facebook than Google+?

Many people attribute Google Plus’s fast expansion to their television commercials and celebrity brand appeal. Curiously, Facebook’s users register higher levels of activity when compared to Google Plus’s. It is estimated that Facebook has 10 times more active users than Google Plus. Google may want to develop new strategies that encourage activity within its user base.

Time will tell just how successful Google’s social network will be compared to Facebook. Some Google Plus supporters mention that the service doesn’t need to compete with Facebook, as it delivers a slightly different experience than its rival. In Google’s favor, it is important to mention that it took Facebook several years to reach 100 thousand active users, while they got to that number in less than 12 months. 

About the author: Annie Marsen is what most people would call a Social Media addict. If there's a new social media site that even hints at going viral, she's on it. This is also one of the reasons why she is very suited to be writing about social media strategies as a Virtual Personal Assistant. So the next time you have an inkling to go social, drop Annie a line. You'll probably find her buried deep in some brand new site exploring.

Financial news: 01/30/2013

• BI: Top 10%, 8.2% richer '09-'11, bottom 90%, 1.2% poorer
• MN: Republicans are less flexible after limiting tax on M.C.
• Fox: Majority of businesses support immigration for revenue
• AP: Spending cut alternatives proving difficult for Congress
• Conference Board: Consumer confidence index ↓ 8.1 points
• CNN: Divided constituencies make averting sequester hard
• CNBC: Regulatory issues weighing on economic forecasts
• Bloomberg: RBS traders freely changed LIBOR to boost margin
• BBC: France's labor minister says his state is bankrupt
• NYT: French auto industry sales declined 13.9% in 2012
• ZH: Zimbabwe's government account has $217 of cash left

The energy boom in America is opening the door for new investments

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By Donald Turner

The United States and their explosive gas and oil energy growth provide some great investment opportunities to investors. Just a few years ago, the United States was importing an increasing amount of oil and natural gas each year. Yerginstates the United States oil and gas production was in a steep decline since the 1970s providing very few investment opportunities. 

Newly developed technology has made it possible for tremendous growth in the United States gas and oil industries over the last five years. The United States will become the largest producer of oil and natural gas within the next two decades and the explosive growth in the US oil and gas production provides many opportunities to investors in most sectors of the United States economy, according to Jubak.

Current investing

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Carey from Forbes states that the most obvious places for investing would be with the companies that developed the new technology used for gas and oil production. These companies have seen impressive growth with some being bought out by big oil companies.

Current and near future investments

Companies in place to supply or support the oil and gas industry growth can offer prime investment opportunities through stocks or ETFs (Exchange Traded Funds). Companies that own gas and oil pipelines provide very economical means to ship the gas and oil over long distances in a timely manner. The pipelines help to ease bottle necking of the gas and oil going from the production fields to the market which can affect the price in the commodity market; another area investors can utilize. 

Transportation companies are a necessary component of the gas and oil production boom in the United States. The transportation industry hauls everything from gas and oil to market to hauling the parts for the drilling rigs to the water used for drilling. The transportation sector servicing the gas and oil production provides many opportunities to invest in by including truck and railroad companies. 

Construction companies contracted to build the infrastructure needed for the growing oil and gas production may provide great investment returns. Construction companies are building new pipeline systems to move the oil and gas supply to the markets and thus are responsible for building infrastructure necessary for the expansion.

Investments for the next few years

A great benefit being a leading oil and gas production country is lower energy costs as the lower energy costs provide the more investment opportunities and many companies will see an improved bottom line from energy cost savings. Chemical companies may receive the biggest benefit from reduced energy costs but any company that utilizes products from chemical companies will see a domino effect in their production prices giving investors a better return rate on Mutual Fund investments.

The United States gas and oil energy growth continues to explode; providing fantastic investment opportunities in many sectors of the US economy for investors. The smaller oil and gas companies that embraced the technology and took prudent action provide the most obvious investment choices. Supply and Support companies to the oil and gas industry offer many prime investment opportunities. Still, other investment opportunities can be realized in many other sectors of the US economy from reduced energy costs leading to an improved bottom line for most companies.

About the author: This article was written by Donald Turner, an avid writer of business and finance articles across the web. He writes this on behalf of US Emerald Energy, a company that has the facts about how to invest in oil.

Financial news: 01/29/2013

• BBC: Banking crisis of '08 to repeat without regulation
• Bloomberg: NJ governor wants to raise min. wage $1
• CNN: Americans are too educated for the job market
• CNBC: Better economy signals rise in l.t. Treasury rates
• Fox: Twitter worth more than $9 billion per Blackrock
• BI: BoFa strategists sees signs of market reversal
• Reuters: Retail sales growth to slow .8% per NRF
• MN: Fed. spending cuts to↓GDP 1% & ↑ joblessness 1% 
• AP: Senate to vote on $50.5 bln for Sandy storm relief
• NAR: Pending home sales index ↓ 4.3% in December
• NYT: Iceland wins delayed deposit insurance EFTA case 

Finding work in the current economy

By Fred Burns

Unemployment figures in both Europe and the U.S. are still at all-time highs, even though some reports say the problem is getting better. If you are one of the millions of people out of work, and either anticipating or awaiting unemployment payments, there are a number of ways to make ends meet.

Image: Getty Images/SRBichara; royalty free license

Cash in on skills

When you’re out of a job, you can often suffer from a blow to your sense of self-worth. Just keep in mind that you are just as capable as you ever were. There are other ways to make a living. You have a whole host of skills that will apply to careers other than the one you have specialized in.

 Image: Getty Images/Kolobsek; royalty free license

Look beyond your work history, and consider branching out from that narrower focus. For example, if you have been a supervisor, you have the ability to observe and evaluate the work of others. This is a great skill to have in the industry of security. I’m not talking about a night watchman. There are many jobs available in security that never involve being seen by the public. Surveillance is performed in almost every department store, and you are never expected to approach anyone- only report what you are observing. Other places that need this type of surveillance are hospitals, banks, and resorts. You may be the person in the office watching and evaluating what you see on surveillance cameras.

Personal skills

If you have personal skills, it means you are pretty good at reading other people. This is a perfect skill for a security officer at the door of a convention center. You can get training in threat assessment, and that, in combination with your native instincts, can make you a good living in the security industry.

For example, I know a teacher, with a Master’s degree, who has been priced out of the job market. No one wants to pay for someone with 30 years of experience to teach music, when they can hire a fresh-out-of-college grad for one half the salary. They have been out of a job long enough that they can’t get unemployment any more. But, with over 30 years in education, from pre-school up through university, they have a lot of experience in what the security industry calls “threat assessment”. Sure, they had to learn about the more weapon-oriented side of the field, but they can spot a shoplifter a mile away just from the way they are acting.

On the job training

If you are retired military or public service, you already have on the job training for most of the security jobs out there. Maybe you need extra money for your retirement, or just needed out of the pressure of a high risk job. The different levels of security work can provide you with a good living, and you can choose the stress level. Finding a job in this economy is not impossible. Just beef up your resume, and think outside the box.  

About the author: Fred Burns has worked within the security industry for many years. He enjoys writing articles that help people and point them in the right direction. When he isn't writing you can find him working for Crossdeck, a company that provides a jobsearch and access to CCTV training courses.

Financial news: 01/28/2013

• Bloomberg: Bullish commodities transactions at 6-month high
• CNN: Credit card swipe surcharges legal in all but 10 states
• Reuters: Averting sequester cuts unlikely per Rep. Ryan
• ZH: Economic data analysis lacks quantitative integrity
• MN: Actual unemployment is near 18% per strategist
• NYT: Housing market doesn't match price optimism
• BBC: Financial market theory has collapsed per Soros
• CNBC: Global economic growth is still questionable
• GMO: Excess credit is a risk to China's economy
• AP: Risk of "global economic relapse" possible per IMF

How U.K. property performed in 2012

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By Cormac Reynolds

According to Halifax, the UK’s largest lender Southend saw the largest rise in house prices of any place in the UK during 2012. The area saw a 15% rise in its prices over the 12 months, compared to a 1% fall overall the country.

The largest gains in house prices were made in the South East of the Country, whereas the largest drips were in Wishaw in Scotland and Craigavon in Northern Ireland. However, overall there was little change in the housing market in the UK over the period even though there have been large disparities country wide.

The best towns are those that are located within commuting distance of the capital and Basingstoke, Rochester and Southend all report rises of over 13%. Halifax has taken these figures from only its lending so it may not be 100% accurate.

South-East performance

According to the Land Registry the price of houses in London rose by around 7% and Brighton and Hove followed with a 4.7% gain over the 12 months to October 2012. However, the Land Registry only reports a 2.4% gain in Southend for the same period, which would suggest otherwise than the Halifax figures. The rest of Essex has seen a 1.5% gain on average.

One of the factors behind the rise in prices is the increase in the mortgages being lent, which increased a number of times in the year on 2011 levels. According to the HMRC the number of homes bought had been 6% higher than in 2011. There were over 91,000 in November 2012, the highest since December 2009, almost three years ago.

UK house buying companies have noticed an increased amount of activity with many looking to them to sell my house fast so they can purchase a new larger home. They believe that this has come about due to easier lending.

Experts

Experts in the housing industry also think that the rate of house buying and selling may increase to an even further degree in 2013. The Council of Mortgage Lenders and the Royal Institution of Cartered Surveyors believe that there will be a rise in the number of homes bought and sold and this activity will be down to the governments Funding for Lending Scheme. This scheme is allowing banks and building societies the opportunity to lend money to first time buyers who wish to fulfil their dream of buying a home.

Add to this the low cost of interest and you have the lowest mortgages ever seen, which has led to increases in lending month by month. However, the biggest issue people find is the deposit, which they need to get on the housing ladder.

Cormac Reynolds writes for UK company YouSellQuick and has written on finance topics for a range of clients

Trial verdicts delivered on actuarial testimony

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By Melanie Price

 

Actuaries are the premier experts on analytics, statistics and predictive models in the finance and insurance industries. The advanced mathematical skill-set of an actuary can be useful to nearly any type of business. Many actuaries are independent consultants, work for the government or work for insurance or financial firms.

Expert testimony from these actuary professionals has become more prevalent and effective in the court room throughout the last few decades. Recently, defense attorneys and prosecutors have had success using actuaries to provide insight in a variety of complex topics like finance, insurance, pensions, criminal tendencies or predispositions, and other subjects that require large data sets, statistics and expert interpretation.

Actuaries' expansive expertise on trial

The trial between the Atlantic Mutual Insurance Co. vs. Commissioner of Internal Revenue in 1998 was the first time and perhaps the most renowned occasion when actuaries were used in Supreme Court hearings. Expert testimony from four professionals from the Casualty Actuarial Society provided clarity regarding the definition of "reserve strengthening" that helped the Supreme Court reach a final decision. Atlantic Mutual Insurance Co filed a claim against the commissioner of the IRS concerning the application of the Tax Reform Act of 1986. The actuaries from the Casualty Actuarial Society provided testimonies for both parties. The four actuaries were used to define “reserve strengthening”, the IRS term that would dictate the provisions of forgiveness for the previous tax year.

Actuaries were also used in the sexual predator case, Elliott v. State. The state of Missouri used actuarial testimony in Mr. Elliot's initial hearing to assess the potential danger and probability for re-offense of his violent crimes. Elliot’s defense appealed claiming that the state of Missouri had provided insufficient evidence and never actually met with Mr. Elliot before designating the convicted sexually violent predator to a secure mental ward. The court ruled that the state's expert testimony from the actuary was admissible and reliable. The expert actuary witness used the static-99 application to demonstrate the long-term risk potential of Mr. Elliot committing a re-offense once released from prison.

Expert actuary testimony was also used in the 2011 trial of Harry Marnie v. WCAB. Both parties used testimony from actuaries to help provide evidence regarding how to offset State Employees Retirement System (SERS) payments between the employer and the claimant who was recently collecting disability from a work injury. The case went through multiple courts, and judges heard actuarial testimony from both parties. Despite appeals from the claimant, the courts ultimately decided that according to the employer’s actuarial testimony, WCAB was entitled to offset the SERS payments. This case set precedent that, despite the lack of precise calculations, the actuarial testimony was still deemed legally sufficient because it was sound and credible.

As the actuary industry and big data continue to evolve, it's reasonable to expect more and more cases that feature these financial professionals. It's also reasonable to expect actuarial testimony to become more popular for a more divergent array of court cases.

About the author: Melanie Price is an actuarial science student who has grown to share her attorney husband's interest in landmark legal cases.  She writes more about her chosen profession at Guide to the Best Online Actuarial Science Degree Programs.

Tax Loopholes for car manufacturers and buyers

 Image attribution: OcaNieba; CC BY-S.A. 2.0

By Chris Turberville

In the earliest days of the internal combustion engine, there were few regulations. In fact, there weren’t even roads suitable for the daily driving of motorists. But just as the car, along with the network of roads necessary to support it, grew in popularity, so has the political environment around cars evolved.

Today’s auto industry – especially here in the United States – functions in anything but an economic vacuum. Not only do taxes and regulations affect everything in automotive production from manufacturers to buyers and consumers, but also, a number of tax loopholes exist that have changed the automotive landscape nationwide. What have these regulations and loopholes meant for both car owners and car manufacturers? Let’s take a closer look.

“Cash for Clunkers” 

Everyone remembers “Cash for Clunkers.” The program, which allowed people to trade in old cars to the government for as much as $4,500 cash back, sought not only to stimulate the economy but also to rid the roads of particularly high-polluting vehicles.

 Image attribution: Mindfrieze; CC BY-S.A. 2.0

If that sounded like a good idea at the time, it may be time to re-consider its consequences. According to “E” Magazine, known as The Environmental Magazine, many people actually did take advantage of the “Cash for Clunkers” program. The problem was that they sold perfectly good, usable cars – cars that could have been recycled for parts – and many of those vehicles ended up essentially being thrown in the trash. The result is that “Cash for Clunkers” sent cars to landfills rather than recycling centers.

“Cash for Clunkers,” thus far, was a one-time program that has seen its positive effects disappear along with the program itself. People are no longer selling perfectly good cars just to throw them away. One can’t help but wonder, however, if the program did more harm than good.

Discounts for Electric Cars

One of the most popular tax loopholes in the automotive industry today is the tax credit that incentivizes the purchase of electric cars. Federal tax credits for the purchase of electric vehicles have allowed cars like the Chevy Volt to be offered at lower prices, making them more readily available and affordable for purchase on the market.

The tax incentive may be a necessary perk in order to stimulate the sales of electric cars on the market. The Chevy Volt, which for a long time cost car buyers $40,000, is certainly more affordable thanks to the tax loophole and to Chevy’s price-reducing policies.

Manufacturing Loopholes

Of course, automotive manufacturers are in business to make money, so they keep their eyes out for tax loopholes at every turn.

For example, a company called GreenTech Automotive spurned Virginia for Mississippi when Virginia’s Economic Development Partnership did not bid on a proposed plant for the manufacturer. When Mississippi did, GreenTech took the government money and moved further south. Although this is not an example of a federal tax credit, it is an example of how states will compete with each other through bidding wars designed to attract manufacturers.

About the author: Chris Turberville-Tully works with HR Owen automobile dealerships where one can purchase various luxury cars. For example, a used Maserati.

Financial news: 01/25/2013

• Bloomberg: Average price of Hamptons home $2.13 mln in Q4, '12
• CNN: USPS first-class domestic stamp prices to rise to .46 cents 
• CNBC: Stock strategists expects "severe downside market action"
• Reuters: Economists warn against meaning of low jobless claims 
• MN: Inflation expectations possibly misjudged by FEd per Roubini
• NYT: Enforcement objective evident in SEC Chair nomination
• Fox: Dec. business loans & leases ↑ 6% due to annual budgets
• BBC: Germany's second largest lender to cut 6,000 jobs
• BI: Rising Euro a risk to German exports as the Yen depreciates
• ZH: European bank balance sheets a scary thought after bailouts

7 of the best online payment methods

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By James Green

Online payment solutions are a necessity for the existence of online businesses. However, they are also useful for so many other things.  For example, you can easily shop online, pay a bill, use online bill paying through a bank, make electronic payments and so much more with just a couple of clicks. Since Internet shopping and banking is so popular nowadays online payment solutions have also gained a lot of popularity. Here are some of the best online payment solutions that are trustworthy and can really do the job for you:

1. PayPal

This is the most widely used online payment solution in the world. It processes billions every year. You can set up a PayPal account for free and fund it through your debit card, credit card or bank account. It is all up to you and you can easily make payments and receive money at low fees.

2. Payza

Payza was formerly known as Alertpay, but the name was changed in May 2012. This global online trading platform specializes in processing of e-commerce deals. You can transfer funds from your bank account and to it easily through Payza. However, there are specific regulations that apply for different countries.

3. 2Checkout

This is a payment processing service for online transactions that combines a payment gateway with a merchant’s account for simpler integration with a website. 2Checkout provides a dependable, reliable, highly secure and affordable payment option for medium and small online businesses.

4. Moneybookers

This is an e-commerce business which allows money transfers and payments through the Internet. Moneybookers allows the receiving and sending of payments from and to 200 countries and in 41 different currencies. It also supports all the major credit and debit cards as well as more than one hundred local payment options.

5. WorldPay

This is a leading provider of electronic payment services including checks, debit cards, credit cards, customer loyalty cards, e-commerce, fleet cards and ATM processing. It also offers a lot of cash management services to its customers.

6. Square

Square is a payment processing gateway which supplies its users with a free card reader dongle which can be plugged into every smartphone. It can also be linked to a bank account and then all you need to do is swipe your credit card in order to collect money. It can even e-mail you a receipt. The fee Square charges for each swipe is 2.75 percent.

7. Google Checkout

This is a famous online payment processing service that is aimed at making the process of paying for 

online purchases as simple as possible and is powered by Google. The Google account of a user stores their shipping information, debit card and credit card information for further reference and thus makes the process of shopping online so much easier. All a user needs to do in order to place a purchase in a participating store is click one or two buttons because all the needed information is already stored in the Google account.

James Green's area of expertise is developing online payment solutions (the Swedish term is betalningslösningar).

Financial news: 01/24/2013

• Bloomberg: Bank withdrawals at record levels per data
• AP: Union membership ↓ .5% to 11.3% of workforce
• CNN: Apple CFO: $41-$43 bln revenue for Q1, '13, ↓
• ZH: Monetary action is correlated to market performance
• DOL: Jobless claims 01/19, 330K ↓5K avrg. 351.75K↓8.25K
• CNBC: Bearish investors reaching "capitulation"
• Reuters: House passes debt ceiling extension 285-114
• MN: U.S. fiscal policy is losing credibility abroad
• IMF: Global economic growth 3.5% in 2013, ↓ .1%
• BBC: U.K. EU referendum to affect businesses
• BI: Japanese exports are down 5.8% over previous year

A critical time for school fundraising

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School budgets are tightening almost everywhere, and money is hard to find which is why more and more educators and parents are turning to school fundraising as a way not only to fund after-school programs but to plug holes in educational funding.

Extracurricular programs, athletic programs, field trips and other out-of-school activities have traditionally been the beneficiaries of school fundraising. But in a tight economy, with politicians cutting educational budgets, teachers, administrators and parents are turning to school fundraising to keep classes and even entire academic programs running.

Many different methods are used in school fundraising, some old, some new. Some tend to be more successful than others, while some rely on student labor and involvement more than others. They can include everything from dinner events and bake sales to car washes and carnivals.

 

School fundraising and product fundraising

But perhaps the most popular form of school fundraising is newer than these more traditional approaches. It's called product fundraising, and if you've ever bought Girl Scout cookies, you've come across it. There it's used to benefit the Girls Scouts of America; when it's used to benefit a school or extracurricular program, it's a type of school fundraising.

Product fundraising is a very simple concept. The non-profit organization that is performing the school fundraising (be it a parent group, a teacher group or some other organization) buys products from a commercial business and sells them to the public, often using students as sales people. The non-profit keeps some of the profits.

Product fundraising can be done in one of three ways. Online fundraising simply involves the use of a Web page to sell products. Product-in-hand fundraising is the direct sale of the products by students to the public. Pre-sales fundraising, meanwhile, involves the sale of orders to the public; the orders are later filled by students.

Product fundraising is a booming business, with more than 1,000 such companies in the United States as of 2010. There are online businesses that can help streamline the fundraising process for parents and educators. And special software allows organizations to set up Web sites managed by distributors, who are also responsible for shipping and customer service.

 

More traditional types of school fundraising

But many other types of school fundraising can be very successful at raising money. Auctions, raffles and similar events are still used frequently as fundraisers. Prizes and donations at these kinds of events typically come from local business owners.

Students usually carry the grunt work of school fundraising, but within limits. Though schoolchildren may wash cares, sell baked goods, or staff raffles, they may have restricted or monitored involvement with adults, especially when it comes to product fundraising.

This is a change from earlier years, due largely to incidents of violent crime. An 11-year-old boy was murdered selling products in his neighborhood in 1997, and as a result, children sell less frequently to adults they don't already know.

Crime isn't the only problem for product fundraising and other types of school fundraising. In a rough economy, household incomes are tightening at the same time school budgets are shrinking. That means it has become harder to raise money at the same time the money has become that much more critical.

Brandon researches and writes articles on different subjects.  One subject he has written about quite a bit is the subject of school fundraisers.

Tips on how to choose accounting software for your small business

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Years ago, keeping books was a tedious and difficult job which involved tons of papers, pens and pencils, ledgers, and commonly the carpal tunnel syndrome, because accountants and small business owners used pen and paper to record all the financial transactions a business was making. Today, however, things are significantly different. We live in a world where everything moves very quickly, and every minute is important. With the advancement of technology, we have been able to computerize almost every task we have, and this includes bookkeeping.

Why is accounting software so important to utilize?

Well, we will start from the obvious reasons – saving time, saving money, and eliminating the human error factor from the equation of bookkeeping. Aside from the obvious reasons, there are many more reasons related to the performance and success of your business. For example, you can see different trends in your business practice, such as financial reports from the past quarter, your stocks, predictions for the next quarter, and so on.

What should you look for when choosing business accounting software?

Here is a list of things to look for when deciding which accounting software to go for:

• Price – The first thing to think about is the price. There are some open-source accounting programs available, but it is always better to go for a paid software application. Find one that has a reasonable price and go for it.
• Ease of use – It is very important that the accounting software you go for is easy and intuitive to use, especially if you have to do your own bookkeeping. There are accounting programs that are very complicated, and there are those that are pretty easy to use. Try a few out and see which suits you most.
• Features – The features offered by the accounting software you choose will make all the difference in your daily schedule. Namely, not all the programs will offer you the same options and tools, and you should choose the one that has everything you need in order to run your business smoothly and without any hiccups.
• Ask your staff – If you have accounting staff, you should consult them regarding which accounting software to choose. They might have previous experience with this, and you should also take into account their opinion if they are the ones who will be using this software the most.

QuickBooks 2013 is a very good choice

While you are doing your research you will surely come across accounting software called QuickBooks, and there is a very good reason for this. QuickBooks 2013 is probably the best choice you can make when trying to find the perfect accounting software for your company. This program has all the features you can only wish, and QuickBooks Pro 2013 training will help you master all of them. It is important to know that QuickBooks Pro 2013 is very easy to use and intuitive as well, so mastering all the tools within the program should not be very difficult and shouldn’t take you a lot of time.

About the author: Jack offers Quickbooks pro 2013 training, both for corporates and individual clients. He has been in this field for last 5 years and regularly travels around the world on training assignments.

Financial news: 01/23/2013

• Bloomberg: Analyst estimates lower than 72% of corp. earnings
• AP: President willing to accept 3-month debt ceiling increase
• CNN: U.S. debt ceiling negotiations are following poker rules
• Google:  Google 4Q, '12 net income $2.89 bln, EPS $8.62
• NAR: Existing home sales fell 1% in December to 4.94 mln
• CNBC: SEC enforcement weak despite new specialized training
• ZH: Former French President to evade 75% tax via equity fund
• Reuters: Monetary superabundance to extend asset bubbles 
• BI: Real economic output is down at least 1.67% since the 1970s
• MN: Higher U.S.bond interest payments a risk of monetary policy
• NYT: BoJ to also implement open-ended asset purchase plan
• BBC: Financial transactions tax now legal in 11 E.U. states

A complete guide to self-directed individual retirement accounts

By Rick Pendykoski

Provided by financial partners, custodians and CPAs amongst other licensed and authorized entities, having a self directed individual retirement account (IRA) is one of the most effective and easy ways through which you can save on the taxes  you pay and accumulate significant savings for good use in the future.

A self-directed individual retirement plan is an arrangement where you establish a retirement account and reserve the sole rights to dictate on what types of investments your accumulated funds are invested in, on behalf of your retirement plan. Your custodian or trustee merely serves the role of maintaining the assets and records of transactions relating to the same. Your custodian also has the responsibility of filing reports as required under IRS regulations.

 

IRA benefits

There are several benefits that you obtain by establishing a self directed IRA. They include:

• Doing so expands your investment options, meaning that you are no longer restricted to such traditional investments as CDs and stocks.

• Establishing an IRA provides you with the best opportunity to diversify your investment portfolio.

• You have the freedom of choosing where to invest your IRA funds.

• Establishing a traditional IRA means you enjoy tax reprieve on your deposits.

 

Investment Prohibitions

The fact that establishing a self directed IRA gives you the freedom to dictate how your funds are invested does not mean that you can invest in any vehicle you choose. Under IRS regulations, you are prohibited from investing in such vehicles as life insurance, collectibles (artwork, rugs and antiques) and particular metals. 

You are also prohibited from irregularly using your IRA such as borrowing cash from the account, using it to secure a loan and selling property to the account amongst other prohibitions. You are however allowed to invest your funds in real estate, mortgage, stocks, partnerships, precious metals (gold, silver and platinum) and franchises amongst other investment vehicles.

 

Types

There are basically three types of IRA you can establish to grow your retirement funds as an individual:

• Traditional IRA – At times referred to as Regular IRA, traditional IRA gives you the opportunity to contribute and at the same time take out a deduction from your contributions. Withdrawals are however only permitted after you have attained a specified age. Although your contributions remain tax-free, your withdrawals are subjected to tax using IRA calculators.

• Education IRA – This is the most suitable IRA you may establish in case you have a child below the age of 18 years. The account gives you the opportunity to save for specified higher education expenses for your child or other beneficiary with all your savings being tax-free.

• Roth IRA – This is probably the simplest types of IRA that you can establish. It tax regime differs from the other two in that you pay any applicable tax before making any contributions. This means that any both your contributions and resultant growth are never subjected to taxation. Furthermore, you can withdraw your funds at any time that you wish.

An IRA is not only available to individuals. Self directed retirement IRA plan is also available for small businesses. You can opt to establish this in case you operate a small business and reap the tax benefits that accrue. Like with a personal IRA, all contributions to a small business IRA are also tax deductible.

Your retirement investment options have never been that open with IRA. You only need to ascertain the most suitable type of IRA to establish. In choosing a type of IRA to establish, it may be necessary to make use of IRA calculator to ascertain the level of taxation you will be subjected to. You may also choose to establish a personal IRA, small business IRA or both, depending on your retirement investment need.

Rick Pendykoski, is an expert on retirement savings plans. In this article, he discusses various self directed IRA however, he finds self directed IRA to be the most suitable one. To learn more about LLC retirement plans, visit sdretirementplans.com

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Financial News: 01/22/2013

• MW: Retirement research shows 401(k) administrators lag the market
• ZH: Extending national debt limit increases "fantasy balance sheet"
• CNN: PayPal is scheduled to revamp overzealous fraud filters
• BI: Economy usually under performs in Presidential second terms
• Fox: Land trust tax abuse being ignored per IRS, GAO & Congress
• Reuters:House votes on temp. debt ceiling extension Wednesday
• Money News: Spread of fiscal austerity to shrink global growth
• BBC: U.K. "shopper numbers" fell 1.2% in December per BRC
• CNBC: U.K. underemployment 10% as AAA credit rating flounders
• Bloomberg: Spanish unemployment to rise as economic demand falls

Using present value when evaluating investment options

By Donald Turner

“A bird in the hand is worth two in the bush.” While this phrase was first used in mediaeval times, the person who said it must have had some idea about present value. In a sense, present value answers the question about how money in the future is worth today. Most people understand intuitively that $10 today is more valuable than $10 a year from now. Furthermore, if you have the option of $10 today, $11 a year from now, or $15 three years from now, which one would be the best option? This article will show you how to make that decision.

Comparing apples to apples

The problem is that the amounts of money really can’t be compared. To change the example, suppose you had the option of receiving $10, 50 yen, or 50 rupees. Which would you choose? You would not look at the raw numbers, because they’re for different currencies. First, get them into a common currency, and then see which one is the largest amount. In this case, 50 yen is less than $1, and 50 rupees is about $1. Choosing $10 would make the most sense.

It is the same problem in choosing among the different options in our earlier example. Present Value (PV) is the term that is used to take money paid at different times and converting them to a common basis for comparison in today's dollars, similar to the currency example.

Discount rate

The place to begin the conversion process is with figuring out the discount rate. The discount rate is the interest rate that you would expect for an investment. It is important to determine a good value for the discount rate, as it becomes the basis for converting the future cash payments to a value today. Selecting the discount rate can be done in several ways. For example, a business may use a discount rate that is the minimum return they would expect from any investment. Individuals might choose a discount rate that reflects their desired investment return. In either case, selecting a discount rate that is either too high or too low will improperly skew the results, so choose carefully.

Determining present value

Let’s choose 10 percent as the discount rate for answering the question which of the three options in the earlier example is the best. The baseline is $10, since that is the amount available today. For the future values for this example, the rate is only applied once per year, so $11 one year now can be discounted by dividing the future amount by 1 plus the discount rate. In this situation, the present value equals $11/(1 + .1) or $10. So, $11 one year from now is equal to $10 today at a 10 percent discount rate.

What about $15 three years from now? The present value calculation would be similar, except the above formula would have to be applied three times, once for each period. Since this can become very tedious, most financial calculators and spreadsheet software packages have this calculation built in. Using this formula, $15 three years from now is worth $11.28 today.

Putting it all together

Using this approach, it’s clear which option to choose. The third option, $15 three years from now would be the best option. You can use this approach to evaluate any kind of investment where payments occur at different times.

This article was written by Donald Turner, an avid finance writer online, on behalf of Approved Cash Advance. If you're looking for an Inherited Cash Advance, make sure to check out their website and see what they can do for you.

Save money when starting a business

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You can wait your whole life time to open your business as something is always going to prop up and get in the way of you starting it up. If you have some money saved away for your business opening and you believe it is not quite yet enough, it is sometimes wise to use that money and not put it off any longer. For example, if you are able to open your business on a budget, you don't really need to spend a fortune; there are ways which you can save on the money.

 

Location

The most important factor about opening your own business is the location which you choose. If you are selling products which you believe will sell best in a busy city centre area, then you are going to have to fork out and spend a little extra on the good location. Paying rent in city centres is always a little higher to what you would pay if you were located outside of the city centre. There is no point in paying the lower rent if it is going to make you lose all your potential customers.

If it is not critical that you need to be in a city centre environment, then you should choose a location which has the lower rent payments. However, it is important that you choose an area that is easily accessible for customers and clients to come visit you.

 

Equipment and furniture

Instead of buying brand new furniture and equipment, why not look at buying it second hand? It is possible to buy almost any furniture and equipment second hand; this can include used computers to used machinery. If you are after used equipment, it is advised that you should shop around to get the best price possible.

If you are buying used furniture, you should make sure that it is still pleasing on the eye. The last thing you want is your business looking tatty and a mess, this may put off any customers and clients which you have, it is said that the look of your business will have an influence on how well you perform. 

Make sure any equipment that you are going to buy is in full working order before you agree to purchase. If you need quite a lot of equipment, then you can buy in bulk from a second hand centre where you will often get a discount if you buy quite a lot at once. You should also request that you get a long term warranty so that you are covered if anything happens to the equipment once you have it back at your business.

Harry started his own manufacturing business on a budget; he shopped around to get the best deals on used machine tools. For more information, go to http://www.industrialmachines.net

Financial news: Martin Luther King Jr. Day

• Zero Hedge: S&P 500 prices are not grounded in reality
• AOL: Scam of the year award goes to fake $1,000 Target gift card
• CNN: Collector auction yields $4.6 million for '60's Batmobile
• Reuters: Cyclical earnings to indicate economic trajectory
• BI: As many as 1.6 billion human beings do not have electricity
• Money News: Global economic growth to slow this year
• NYT: NY Rep. questions $1.5 bln cost of $3.3 bln settlement
• BBC: Fiscal innovation key to U.K. economic growth per study
• RTT: Bank of Italy downgrades '13 GDP growth to -1%
• Bloomberg: China's GDP growth to be limited by demographics

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The newest emerging markets for American products

By Denise Ferrier

Many major companies’ earnings reports serve as a global map of where U.S. products and brands are making inroads in trade. These new areas of commerce hold the potential for new revenue to make up losses sustained during and after the Great Recession in the markets of the United States and Europe.

The slow global recovery has put greater focus on India, China, Latin America and Hong Kong, where the economies have stayed fairly well insulated from the housing bubble that sent U.S. and European money markets into a tailspin. The current economic resilience in these regions has made them a few of the hot spots for American goods in this new era of trade.

India

Since opening up to the global markets in 1991, the country has seen steady growth with better jobs and more disposable income among its residents. This area’s GDP has grown above 8 percent per year, according to an investment report from Ernst & Young India. The rise of urbanization and technology has made the country ripe for expansion of various American products and fairly well insulated from the global downturn. Familiar U.S. brands such as Starbucks and McDonald’s continue to evolve with their Indian sites. Starbucks CEO Howard Schultz predicts that India will become one of the chain’s top five markets, while McDonald’s is moving toward vegetarian sites in the country. With a demand for cleaner fuel, U.S. investors are looking ahead to the export of liquefied natural gas to the country.

China

While this market certainly is not new, no list of emerging markets is complete without it, given its continued explosive growth that supports nearly all markets in the world. U.S. cities nationwide have seen their exports to China soar. In 28 states, China is the largest recipient of U.S. goods. Computers, food and chemical products are among the most popular items sent to the country. For Starbucks, who already has 700 stores in the country, plans for 1,500 China sites would make the area the chain’s biggest market outside of the United States.

Latin America

While it might lag as a home to millionaires compared with Russia and Hong Kong, all three are ahead of the United States in this area as hot zones of money. Colombia and Brazil both work hard to be investment friendly, and Brazil in particular has been the focus of many U.S. interests as a regional leader in business. Brazil also will be a star on the world stage for the 2014 World Cup and 2016 Olympics, which offer a wealth of marketing potential for businesses and brands. Investing in Mexico has also experienced a resurgence, and the country's buying power for American goods has greatly increased as well.

Hong Kong

This area was among the top 10 of U.S. export markets in 2011 according to the U.S.-China Business Council, and it shows continued robust growth. The country’s gateway access to China ties the two markets together, making it easy for many U.S. manufacturers to cover both areas with targeted shipments. Many U.S. retailers have relied on their shops in Hong Kong to help lift overall store results. Most chains you would see in U.S. malls, such as Forever 21, Abercrombie & Fitch and The Gap, keep a strong presence in the area.

About the author: Denise Ferrier is a freelance business blogger.

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Financial news: 01/18/2013

• ZH: Global GDP growth fabricated by central banks for 5 years
• AP: Home construction in '12 half of healthy housing market
• CNN: Market index at 83 or "extreme greed" despite economy
• CNBC: Salad prices ↑ on "perfect storm" weather
• NYT: Rio Tinto CEO resigns after its assets fall by $14 billion
• BI: Income and expenses influence wealth per ex-GS employee
• Fox: New loan rules to slow mortgage process to 3 months
• BBC: BoFa profits ↓$1.68 bln from '11; Q4, '12 rev. ↓ 26%
• Reuters: Anticipated monetary policy lowers Yen vs Dollar
• Bloomberg: Spanish debt cost ↓; Euro ↑ market confidence up

Tips for keeping your business flush with cash

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By Kelli Cooper

Unless you operate a business where you receive payment immediately upon your customer or client making a purchase, finding ways to maintain a steady infusion of cash is probably a top priority for you; and, if you are like many small business owners, you may be struggling with keeping the flow as steady as you would like it to be. The money you earn from offering your goods and services will really serve no useful purpose until you actually receive it, so here are some tips to make sure you get it in a timely fashion.

 

Evaluate terms with customers and vendors

If cash flow is a problem, it may be time to take a good hard look at the terms you have set up with both customers and any vendors of your own. If your time frame for receivables is 60 days, you might benefit from changing it to 30; you might also consider making changes such as requesting down payments or requiring payment immediately upon completion of a service or delivery of a product. If your payments to vendors and payments being received from clients is not ideally aligned, you might consider asking to change payment dates to vendors to a time when you will be sure to have money from your clients.

 

Set clear terms with customers

Clarity is a key first step in executing any successful endeavor—to get something accomplished, you need to be very clear on exactly what it is you want to get done. Make sure you have very clear terms with your customers regarding payment—when it is expected and how you want it done. It should always take some written form, whether you clearly outline it in a contract with new clients or it is part of your website. Clearly outline information regarding interest for late fees and any collection costs that will be passed onto the client in the event you turn to an outside agency to pursue payment.

 

Consider accounts receivable financing

If your payment terms are 30 days out or more and you are really hurting for cash now, you might consider using the services of a receivables financing company; this involves selling your receivables to a company now for immediate cash. Of course, on top of paying the money back to the company when you get the payment from the client, you will also have to pay their fee for giving you the money. When considering this option, you have to carefully weigh whether getting that money immediately outweighs the extra money you need to lay out for the service.

 

Carefully evaluate customers, suppliers and inventory

To get the best idea of how to improve cash flow, it is important to separate and evaluate the three major areas of customers, suppliers and inventory carefully. When it comes to inventory,  carefully evaluate how different items are selling and where your money is going. You might find you have a lot of money tied up in products that sell infrequently. As for suppliers,  look to reach out to the ones you work with regularly to try and work out better terms and discounts—you may not have much leverage with one-off buys, but it does not hurt to ask when looking to make a purchase. Keep a close eye on customers and really get on those slow-payers. There may be some easily solved problem that explains their constantly late payments, like frequent invoicing errors.

About the author: Kelli Cooper is a freelance writer who enjoy sharing tips on how businesses can improve their financial health.