Personal Finance


scamsWith Bernie Madoff’s Ponzi scheme foremost in many investors’ minds, how can you tell whether an investment pitch is a scam? Keeping Bernie Madoff’s Ponzi scheme in your mind minds. “It pays to remember that if an investment opportunity sounds too good to be true, it usually is.” Here are 10 tell-all questions to consider:


1. Does it promise “low risk and high gain?”

“There is no such thing as a free lunch.” It’s a fundamental fact or basic of investing that the higher the potential return, the greater the risk and that you may never see that return. Do not fall for investments that promise spectacular profits or “guaranteed” returns.

2. If you don’t act now will it be too late?

Why will it be too late? Any legitimate investment will be there tomorrow, and next week, and next year. Never be pressured into investing in something because tomorrow might be too late. Even if it turns out that the stock doubles tomorrow, you should feel better knowing that you were cautious and responsible with your money.

3. Does the investment tip claim to predict the future?

“It will double in three months.” Oh, yeah? And where did your broker buy his or her crystal ball? Not only is this a ridiculous promise for a broker to make, it’s illegal. Go aheaed and report this infraction to his or her sales manager. And if the matter doesn’t get satisfactory attention from a supervisor, contact the Financial Industry Regulatory Agency (FINRA).

4. Do you know the background of the salesperson and his/her employer?
Any individual selling securities to the public must pass a background check, a series of examinations, and be registered with FINRA. Likewise, their employers must also be known to FINRA and the SEC. If you would like to check up on the background of your broker or brokerage firm, use FINRA’s BrokerCheck page. But remember, even if they don’t have any complaints against them, it doesn’t necessarily mean they can be trusted. You could be “Scamee No. 1.”

5. Does it “guarantee” anything?
It is impossible to guarantee the performance of any investment, but if your broker is doing so he could get tossed out of the industry.
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wreck_logo227Presumably yo are pretty uncomfortable about the current state of financial markets you can be reassured that you’re not alone. Almost all investors are experiencing some discomfort from the recent falls in asset values, yet some handle it better than others.

A big influence on your investment outcome over the long term depends largely on how you manage your emotions in relation to the market’s volatility can have. Here we explore the influence of our emotions on financial decisions and look at what we can do in times like these.

Our emotions are fundamental in the decision making process and influence our behaviour, thoughts and actions. Understanding our emotions and learning to manage them can improve our overall investment experience.

Our feelings make us focus on information that matches our mood, according to studies by behavioural scientists. So, for example, if the market is trending upwards, and your mood is positive, you would tend to focus on information that confirms these emotions, (as was probably the case throughout the first half of last year). Conversely, we are more likely to be influenced (unconsciously) by information that is negative in the current climate.

Our feelings also influence what information we retrieve from our memories. For example, if you are in a positive frame of mind, you are more likely to focus on positive possibilities. Given the current sentiment, we can assume that most people are currently focusing on negative possibilities.

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Oil fell toward $37 a barrel on Wednesday, tracking global equity losses and ahead of U.S. data expected to show an increase in crude stocks.

Stock markets are again in a bearish trend after the Dow Jones industrial average closed down 1.2 percent Tuesday. Oil prices could continue to fall on the coat tails of equity markets and the trend suggests this might into the New Year.

Oil prices have fallen about 60 percent since the start of this year and more than 70 percent since their record peak above $147 in July as demand from the United States, China, Japan and other industrialized nations has fallen.

The Organization of the Petroleum Exporting Countries (OPEC) has already announced cuts of around 5 percent in global oil supplies and may call an emergency meeting before March if prices extend their near $110-per-barrel slide since summer, OPEC’s President Chakib Khelil said Tuesday.

Oil was buoyed Wednesday by a dip in the dollar, which edged down against the yen, pressured by light selling from Japanese exporters after dismal U.S. growth and housing data suggested a prolonged recession ahead.

Data for release later Wednesday was also expected to show distillate stocks rose 200,000 barrels last week, while gasoline was seen up 500,000 barrels, a Reuters poll showed.

The pace of global oil demand growth should increase next year as rising consumption in emerging markets outweighs declines in developed nations hard hit by the high fuel costs and mounting economic problems.
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Americans are giving up their dogs and cats to animal shelters in growing numbers as the emotional bonds between people and pets get tested by economic ones.

The American Society for the Prevention of Cruelty to Animals have a big job at hand and recently began a program called Help Out Pets Everywhere (HOPE) to provide food, medical care and temporary homes for pets belonging to families with financial difficulties. They received about eighteen applications in the first week, some of those people have never experienced hardship until now, and therefore, neither have their pets.

A man who turned his two dogs over in order to help pay for his mother’s cancer treatments, to the New York woman who euthanized her cat rather than keeping it alive with expensive medications, rising economic anxieties make it increasingly difficult for some pet owners to justify spending $1,000 a year or more on pet food, veterinary services and other costs.

The population growth at animal shelters shows how the weak economy is also shrinking the pool of potential adopters. And it coincides with a drop-off in government funding and charitable donations.

The effect has been cramped quarters for dogs and cats, a faster rate of shelters euthanizing animals and some shelters turning away people looking to surrender pets, according to interviews with several shelters and animal advocates. Of the estimated 6 million to 8 million dogs and cats sent to animal shelters every year, half are euthanized and the rest adopted, according to the Humane Society of the United States.

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Proper asset management and at least basic financial education are one of the biggest assets you can possess. It’s not so expensive or unattainable as most people imagine.

These below mentioned reasons are a paved path to financial hell:

1) No financial education. This is definitely the number one reason why we mess up our financial lives ­ because no one taught us how to manage it! Come to think of it: who teaches you how to manage your finances? The answer is a resounding “no one”. The conventional school we attend does not teach us, neither does business school nor our bosses.

2) Leaving your money management to others (and often, the wrong people!). Strangely enough, not many people are too concerned about their finances, thinking that others will take care of it for them. This explains why most of us “jump shelters” from our parents to our employers and maybe the government. We erroneously assume that a “responsible” boss or government would help take care of our finances.

In truth, your personal finances are your own responsibility. How can people expect “other people” to take care of them when they do not even want to take care of themselves? Also, perhaps the best government can provide the guidance and opportunities but it is still you to take care of your OWN finances.

3) Relying on incompetent advisors. Since many folks do not have the “know how” on managing their own finances, they turn in their own financial “steering wheel” to so-called “experts” such as financial planners, remisiers, and even… insurance salespeople!
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An audio book is a voice recording of written material. An audio book is often referred to as a book on tape, as a cassette tape was initially the format offered when the audio books first appeared on the market in the 1980’s.

Many retailers did not see the need for these audio books, but the books gained popularity quickly. Now there are many websites dedicated to providing free audio book downloads to everyone. There is really no limit to the genres available to you through free audio books downloads.

Audio fiction books, nonfiction, research, even cookbooks are now available. There are many different download formats available as well. You are now able to choose to download a free audio book in MP3 or iPod formats, enabling you to listen while walking, running, or other forms of exercise.

Books will always be part of our lives. It has been in existence for many centuries and it will continue to exist until the end of time. People have protected books from being burned. They went through great lengths to preserve it such as burying it deep into the ground so it will be passed on from generation to generation. So books will be a constant presence in our lives from the moment we were born up until we die.

Have you noticed that books have been evolving? There was a time when all we had are pages of a manuscript. Now, books are in all kinds of forms. We have the paperback books, the hardbound books, comics, magazines, e-books, Audio Books and others. No matter what form of book that we prefer, it will still be the same.
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Many are cutting back on unnecessary holiday spending this year, but one item they’re not willing to do without is the perfect Christmas tree. When it comes to wreaths they try to save some green by going green.

Americans don’t appear to be ready to give up their Christmas trees amid a slumping economy, but they are downsizing to save money. There may be fewer presents under that Christmas tree this year, but it seems few families are giving up the tradition of having a tree.

Retail sales dip to the lowest in 35 years and unemployment hit a 14-year high, Christmas tree sales however holding steady in the gloom, according to growers, sellers and industry analysts.

Sales will stay in line with last year, based on reports from growers. I think people just like to have a Christmas tree; it’s not the most expensive part of Christmas, really.

Last year, Americans bought 31 million natural trees, “The year may end up the same or even a little better than last year, consumers want to keep the tradition, even if other things go by the wayside,” says Linda Gragg, executive director of the North Carolina Christmas Tree Association.

Linda Holt bought a tree this year even though she lost her job last year repairing speech devices for the hearing-impaired. Her unemployment checks ran out in March. “I can’t imagine Christmas without a tree,” says Holt, 52, who lives with her daughter’s family in San Jose. “It’s too depressing.”
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It was $1,900 here and $10,000 there.

On Friday, it all added up to a sentence of 55 years in state prison for 42-year-old Johnnie Miles, whose criminal record — of bad checks and financial fraud — dates to when she was 14 years old, according to court officials.

A month ago, a six-member Indian River County jury found the 29th Avenue resident innocent of the latest charges against her: defrauding a store out of $7,500 during a three-month period in 2007.

But under state rules, Circuit Court Judge Dan Vaughn was allowed to take another look at the facts in the latest case. That’s because she was on probation for a 2003 conviction for grand theft and fraud in Indian River County.

Because of her record, Vaughn gave her the maximum for probation violation: 11 five-year state jail terms, all to be servedconsecutively, adding up to 55 years. Each five-year term is for the 11 offenses for which she served four years in state prison.

Her record goes back even further, including an additional 20 felony fraud and theft convictions, nine petty theft convictions and seven misdemeanor cases, according to county court records.

“She is one of the most notorious thieves” in the county, said Assistant State Attorney Adam Chrzan, who handled her latest case.
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Credit cards are actually one of the best things to inspire people to spend unlimited money and get anything they want. These have empowered the credit card holders to waste money and the result is that people end up being burdened with excessive debts.

Not all, but in case of many credit card holders such incidents have happened. If you too are a sufferer like those then without any further delay you should get the credit card debt management programs.

This is a very important question for women who are struggling with personal debt and credit card debt. The reason that I ask this question is because the only way that we can solve a problem is to identify that we have a problem in the first place. Without an identification of a problem, there can be no solution to something we have not identified.

A leading credit ratings firm has warned those in love to be cautious when taking on debt for a partner. It says debts taken on for a partner, when things are rosy, can become a real hassle if the relationship breaks up.

If you are struggling to pay your monthly bills, and your credit card debt to income ratio is more than 10 percent (including car loans as well), you most likely have a problem with debt. It does not matter if you are a man or woman reading this article. What matters is that you have identified a problem that is creating stress, concern, lack of sleep, anxiety, and depression.
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Preparing Your Portfolio Is the Most Important Action You Can Take

When the stock market is running very hot or very cold, it is on everyone’s mind and few conversations last very long before turning to the latest numbers.

Whether it is the dot.com boom of the 1990s or the credit crisis of 2007, when the market is erratic and volatile, people are engaged.

The factors that lead to a boom-bust cycle in the market are important. Investment professionals and regulators spend a great deal of time trying to understand what happens in the market during these periods.

Individual investors have little influence on the market. While it is important to understand what happens and why, that is not the most important consideration for individual investors.

The most important influence on how your portfolio performs is how well you have prepared it. Preparation is the only factor you can influence.

Preparation means adopting a reasonable allocation between stocks, bonds and cash. It also means diversifying you holdings by industry sector, company size and growth and value stocks.

Most investors should consider a bond allocation equal to their age. For example, a 45 year-old investor should have 55 percent in stocks and 45 percent in bonds.

You can’t know with any assurance which turns the market will take – even industry professionals don’t know.
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