Fortune Watch

Private medical care can cost the world. Do you really want to pay it yourself, and can you afford to?

Most people see medical insurance as an additional expense. But they would never think of driving a car that is not insured. How important is a broken fender compared to the cure for an illness?

For every person that will eventually require specialist medical care, the need arises to consolidate and plan for the future. Although health insurance is usually bundled with overall life insurance policies, the truth is that you can often find services tailored to your personal needs.

Granted, that it is not everyone’s choice investment option – and it shouldnt be – but these policies provide you and your family with timely death or injury related compensation and in some opt-in cases, regular and uninterrupted income.

It is unfair to compare the yeild of an insurance policyto other mainstream investments, for the simple reason that an insurance policy is basically exactly what it says it is, an insurance policy, and the income generated is just an added feature. Instead approach it as a non-exuberant, parallel saving schemewithout seeing market performance and you will see that it is a useful tool.
(more…)

When it comes to being taken in by Intenet fraudsters, men have a knack of losing cash, according to a new report from Internet Crime Complaint Center.

Data compiled from more than 206,000 complaints received by the U.S. ICCC shows that men lost U.S. $1.67 to every $1 lost by women on online fraud. The organisation says that buying patterns and human natureplay into the findings.

Historically men were more apt to purchase large ticket item like electronics… that could explain a lot of it. But with women now spending more online, the difference is also due to the fact that certain types of schemes tend to suck men in. Men tend to fall victim… to business investment schemes and some other schemes that have a higher monetary loss.

Investment fraud complaints, where the average loss is more than $3,500, were overwhelmingly submitted by men. Compare that to something like auction fraud, where men and women are frequently victimized. The average loss there is just over $480.

Men also tend to be victims of check fraud (average loss: $3000) and Nigerian letter fraud scams($2000). Overall Internet crime is netting the bad guys more money than ever. Total losses from 2007 complaints came to $239 million, up $40 million from 2006. The number of complaints was actually down for the second year in a row.

Read (more…)

There are many reasons to say “yes” to invest in gold. Demand for gold has exceeded production in recent times, therefore prices have been rising. Gold is also considered a good investment during stormy economic times.

Rising oil prices and a weak dollar normally spell strong demand for gold. A little gold can help diversify an investment portfolio.

Today, like all investments and commodities, the price of gold is ultimately driven by supply and demand, including hoarding and disposal. Unlike most other commodities, the hoarding and disposal plays a much bigger role in affecting the price, because most of the gold ever mined still exists and is potentially able to come on to the market for the right price.

That weaker dollar is reason gold, a traditional store of purchasing power, is gaining ground. The increase of its price has been less pronounced in other currencies.

Very few people are so rich or so secure that they never worry about their money, and for the rest of us, there’s gold! With today’s fluctuating market, more and more people have returned to this standard of wealth for a degree of security that has become harder and harder to find. While some people decide that they want to horde gold jewelry in their mattresses for the next Depression, other people take the time to decide on what pieces they want to invest in.
Read (more…)

For the uninitiated, the stock market looks either a rosy picture or the dooms day scenario. Actually it is a mixture of both. By investing wisely, you can get the money of life time or if you are not careful, you may lose money of life time.

Don’t follow the herd mentality. This is one of the top mistakes to avoid. The herd mentality is THE reason why many investors lose their money. Actually when your neighbor or friend is buying, since everyone is buying, stop and think for one moment “is this share worth its money today and does it have a growth potential?” If the answer is a YES after study of the share, go ahead and buy that share. If you have a slightest doubt, refrain from buying. Do not buy just because someone else is buying.

Not deciding your time line: When you start investing in stocks, you have to decide your time line or profit margins when you are going to quit. If you do not do that you may pass on the period of greatest value for your stock. Thinking that your stock will go up when it has reached its present peak, is a sure way of losing your money. Of course it is not possible to sell your stock at peak very time, but if you have decided the limits, you will not be sorry.

Not cutting down losses: For every stock, there is a range and depending on the general market conditions and fundamentals of the company you can decide the price of the stock you hold. If either of the above two conditions compel a stock to go down, have predetermined limits when you are going to sell irrespective of market conditions. This will cut down the losses you may have in future.

Taking too much risk: If you are a reckless investor, you will have blame yourself for taking too much risk. A calculated risk is what one is expected to take in stock markets. Taking too much risk based on hear say from the market, is a sure way for doom.

Read (more…)

In today’s world, no one can afford to buy a home without applying for some kind of loan in the form of a mortgage. Mortgages are controlled by various lending companies which can include banks, credit unions, and even individuals. These parties make their money by charging interest on the loan.

A mortgage is the pledging of a property as a security for a mortgage loan. While a mortgage in itself is not a debt, it is evidence of a debt. It is a transfer of an interest in land, from the owner to the mortgage lender, on the condition that this interest will be returned to the owner of the real estate when the terms of the mortgage have been satisfied or performed.

Because a mortgage revolves around the lending and repayment of money in order for lenders to make a profit, it is important that they loan to individuals who are as secure as possible; the general rule is that the more secure the individual as far as past and present money matters, the more money he or she will be lent. After all, the lender is taking a risk with his or her own funds, and will want them paid back.

The main way in which lenders will establish your security is by looking at your income and your past when it comes to credit. Most of the time this is all right, but what if you have filed for bankruptcy somewhere in the past? Will you still qualify for a mortgage?

How much time has passed?

Read (more…)

The combination of Delta Air Lines and Northwest Airlines creates the world’s largest airline and will quickly test the theory that a bigger carrier can effectively confront record fuel prices.

US carriers Delta Air Lines and Northwest Airlines are combining to form the world’s largest airline if regulators and stockholders approve the deal.

In short, the combination strategy is focused on squeezing enough operating efficiencies out of a huge global network — and likely from culling weak-performing domestic flights — to make a mammoth enterprise strong enough to survive the current fuel crunch.The third and fifth largest airlines will marry under the name Delta with a combined value of $17.7 billion, the two announced after their boards approved the merger yesterday.

The merger boasts the creation of the world’s largest airline in terms of fleet, destinations and total passengers.

“Combining Delta and Northwest will create a global flag carrier strongly positioned to compete with foreign airlines that are continuing to increase service to the country-region,” a joint statement said.

Read (more…)

Your career is a direct result of hard work and a substantial investment of time and money. Doesn’t it make sense to fully protect it? A disability could render you helpless by taking away the one thing that you need to safeguard all of your assets: your income.

Home, auto, life, and health insurance are certainly valuable investments, but failure to couple them with disability insurance will jeopardize your full financial security. For example, health insurance might cover the potential fiscal pitfalls of the medical bills that result from a disability, but the rest of your financial obligations are not going to come to a halt. Vehicle payments, mortgages, insurance premiums, and even savings for the future are all important expenses that cannot be ignored just because you are disabled. Unfortunately, the chances of becoming disabled might be greater than you think.

According to the 1994 Statistical Abstract of the United States, in the course of a year, odds are that 1 in 10 people between the ages of 25 and 64 will suffer a disability. When comparing that ratio to the odds of being victim of a house fire (1 in 122); injured in an automobile accident (1 in 160); or even of death (1 in 117), the advantage of disability insurance is clear. A February 2000 article in the New York Times reported that 1 in 7 people between the ages of 35 and 60 will become disabled for five years or more.

Read (more…)

“Self-Made in America” a book by John McCormack, suggests that if you are investing less than 25% of your income then you aren’t serious about becoming wealthy. But how do you afford to do this without suffering? The answer is here.

You can do this by eliminating waste and impulse spending from your spending habits. Studies have shown that the average person blows around 25% of their income in these two totally unnecessary areas; waste spend and impulse spending. Let’s see what these two types of unnecessary spending are and how to eliminate them.

First I will define waste spending. There are two main types of waste. Firstly waste is when you spend more money than you need to in order to get the result that you want. Secondly waste is when you buy more than you need in order to get the result that you want.

Here are two examples around food.

An example of Type 1 Waste would be buying a sandwich for lunch for $5 when you could have made the same sandwich at home, and brought it with you, for only 50 cents. You are paying ten times the true value of that sandwich by buying it ready made. You probably also spent more time standing in line to be served than the time you would have required to make the sandwich at home.

An example of Type 2 Waste is when you buy more food than you need and then have to throw it away. Because you couldn’t be bothered taking the time to calculate the amount that you really needed you overspent on your food bill.

Read (more…)

The U.S. Justice Department has begun a criminal investigation into whether aluminum maker Alcoa Inc. participated in bribery in the Persian Gulf state of Bahrain.

In documents filed Thursday in U.S. District Court, federal prosecutors asked a judge to halt a federal civil lawsuit that accused Pittsburgh-based Alcoa of bribing officials through overseas shell companies to secure hundreds of millions of dollars in overpayments.

The United States has a direct and substantial interest in this case, as the subject matter giving rise to this case is also the subject of an ongoing federal criminal investigation,” prosecutors in the Justice Department’s fraud section said in court filings.Aluminum Bahrain B.S.C., also known as Alba, in which the Bahrain government holds a 77 percent stake, is seeking more than $1 billion in damages from Alcoa and other affiliated defendants, according to a federal lawsuit filed last month.

“The Alba complaint alleges numerous facts which, if true, could be relevant to the government’s criminal investigation and a potential criminal trial,” prosecutors said in court filings.

“As the criminal investigation arises out of the same facts and circumstances on which the claims in this civil action are based, the determination of potential liability against possible subjects of the investigation, particularly if they are charged with crimes as a result of the investigation, will turn on the same essential factual questions at issue in this civil action,” the government said.

Read (more…)

Yesterday the Fed cut US interest rates by 0.75%,on top of the 2.25%of cuts since last summer and hot on the heels of last week’s measures to stimulate liquidity and address funding problems through a new USD 200 billion lending facility for the banking system.

These measures have been particularly aimed at helping the increasingly distressed mortgage market. But despite the Fed’s efforts, credit markets remain blocked and investors are still looking for an answer to the ongoing and seemingly unquenchable market volatility.

However, perhaps investors and the Fed alike have been seeking the answer to the wrong, or at least different, questions.

Let’s look first at the average investor “on the street”. They cannot help but feel bombarded at the moment by a constant flow of bad news regarding the economy (the majority of financial analysts and journalists are now apparently in agreement that the US economy is actually in recession), and regarding the subprime crisis, where rumours andannouncements of financial company writedowns continue to undermine confidence.

Perhaps then the Fed’s willingness to act, while warmly receivedat first, is on reflection being perceived as confirmation of the darkest rumours and predictionsabout the US housing and mortgage markets currently doing the rounds. Why else would the Fed so deliberately seek to promote the orderly functioning of the mortgage market?
READ (more…)