Tune-in to Fixed Annuities to Stay Financially Strong and Safe after Retirement

Who does not want to have a safe and sound life, especially after retirement? Yes, after a long period of struggle, you will definitely love to pass a happy life after your retirement, but how it will be possible without proper amount of money in hands? Certainly, retirement retires you from your job and leaves you with small amount of pensions. Moreover, if you do not have sufficient amount of savings, will it be possible for you to manage your household expenses in this situation of economical crisis all around? How can you fulfill your grandchildren’s little demands? Or, how you can lead a stress free life? Well, the positive answer can be found applying to the fixed annuities.

Yes, fixed annuities help you to stay relaxed in your post-retirement days because it realizes how important it is to be financially strong, when you get retired. After retirement, plenty of time remains in your hand and numerous unfulfilled dreams spark in your eyes. Without proper finance those unfilled dreams cannot be accomplished into reality. Here steps-in fixed annuity schemes to wipe-out all your post retirement financial troubles.
Whether it is your medical requirements or household requirements you can stay relaxed just by tuning-in to fixed annuities.

You can apply to this scheme, when you are getting retired or still working. A single premium is enough to make your future life secured. Not only this, but this annuity scheme helps you to stay comfortable in the days of credit crunch or recessions, because it offers you a fixed rate of interest throughout your life. No matter how low the financial condition is in the outer world, but the fixed interest will remain fixed forever.

If you die in between the repayment period, your loved ones will receive the money on your behalf. It also offers them a life insurance.

So, what are you waiting for? Apply to the fixed annuities now and have a secured post-retirement life because it makes your life a fun staying beside you all the time.

5 Credit Card Mistakes to Put Behind You in 2012

Say it with me: My New Year’s resolution is to cut down the number of mistakes I make in managing my credit card account. Wow, sure comes off the tongue smoothly. To cut to the chase, everyone makes mistakes with their credit cards, and these mistakes can cost money and/or lead to credit score damage. So, instead of making an amorphous promise to lose weight or learn something new, why not concentrate on avoiding the following five common credit card mistakes in order to make 2012 a happier year for your wallet?

1. Opting for rewards despite other needs
Everyone wants rewards, but rewards aren’t for everyone. If you have at least good credit and you pay your bill in full every month, then by all means focus on finding a rewards card that fits your spending habits. On the other hand, if you don’t have the requisite credit standing, you may want to find a no annual fee credit card in order to build credit cost-effectively and reach the credit standing required to get truly lucrative rewards. Finally, if you don’t always pay your monthly bill in full, avoiding interest with a 0% credit card may actually save you more money than getting a rewards credit card.

2. Unwittingly using an NPSL Credit Card
World MasterCard credit cards, American Express charge cards, and Visa Signature credit cards have at least two things in common: 1) They’re some of the most popular credit cards for people with excellent credit; 2) They all have a feature called No Preset Spending Limit (NPSL).

Contrary to popular belief, NPSL does not mean that you won’t have a credit limit. Rather, it means that your credit limit will be determined each month, and you will never know exactly what it is. Neither will the major credit bureaus because credit card companies typically do not report accurate limits to the bureaus (most likely to maintain the myth of the unlimited credit card).

The fact that you won’t know your credit limit increases the chances of having a big-ticket purchase declined at the point of sale. The fact that the credit bureaus won’t know means your credit utilization ratio may be misleading, which could lead to undeserved credit score damage. In most cases, NPSL simply isn’t worth the risk, but cards with this feature could offer the most attractive terms. The choice is ultimately yours to make, but it’s important to know the risks going into your credit card search.

3. Overestimating your credit card company’s interest in interest revenue
Would it seem logical for a credit card company to report your usage to the credit bureaus in such a way as to improve your credit score in return for you revolving a small balance each month and thereby providing extra interest revenue? Perhaps, but it’s not how things work. You’re not going to get preferential treatment by carrying a balance, but you are going to cost yourself money, so if you have the cash to pay your credit card bill, do so.

4. Thinking inside the box when it comes to small business credit cards
They’re called business credit cards, so they’re the type of credit card one should use for small business spending, right? Yes and no. While business credit cards and general-use credit cards aren’t as different as you might think – most issuers hold business credit card users personally liable for debt, and report usage to their major personal credit reports –business credit cards do not fall under the jurisdiction of the CARD Act. The CARD Act improved transparency as well as consumer rights by instituting new rules, such as that which prevents credit card companies from increasing interest rates on debt held on general-use credit cards unless you are 60+ days delinquent. Therefore, you should have a general-use credit card for purchases you won’t be able to pay off in full before the end of the month and a business credit card for all others.

5. Opting-in for over-limit charges despite past history
Opting-in isn’t necessarily a mistake because the freedom to surpass your monthly credit limit can be useful in an emergency, and the new credit card law (the CARD Act) has made over-limit fees more reasonable. However, opting-in isn’t worth it if you do it all the time, as even modest fees can quickly add up, and you don’t want to waste money. So, if you went over limit more than a few times a year before the CARD Act took effect in February 2010, it’s probably a good idea to remove temptation and simply not opt-in.

This guest article is from the editorial department at Card Hub, a leading marketplace for credit cards, prepaid cards, and gift cards.

Working after Retirement: 5 Jobs You Could Do

Attitudes towards retirement are changing in that many people who were looking forward to not having to go to work every day, find that once they actually get to this stage of life, they still have an urge to contribute to society in some way. As a result many take on voluntary work but a growing number are looking for something in which they can still earn an income in order to extend their enjoyment of financial independence for as long as they can.

                                     
The need to continue work in some manner is important in keeping your brain active but initially taking a prolonged vacation upon your retirement is as positive as it is refreshing. However if such a life is continued indefinitely it can become overly expensive with you finishing up living out your remaining years in near poverty.

Modern day living is expensive and it is important that you are able to live it to the full for as long as you can. You can achieve this buy supplementing any income you may have with money earned during your retirement years but it is important that you also leave enough time to yourself to enjoy life and avoid the stress that came with working full time as you had to do before retirement.

When considering what you can do to earn a little more to supplement your retirement income you should look back on your past to see what you have been best at and what you enjoyed most. It will be no good taking on some task during your retirement years that you hate doing simply to earn some extra money. It is a time of your life where you should enjoy living and this has to be extended to any part time job you might take on. With all this in mind here are five jobs you could think about doing to supplement your retirement income:

1. Consultancy. After a lifetime at the one job who better to know all the ins and outs of the industry in which you worked, than yourself. The world is calling out for consultants in numerous fields. You could contract yourself out as a consultant on construction matters if you've been involved in building work. Or your consultancy business could equally apply to personal finance, sales, marketing or accountancy, the list is virtually endless and it is often very well paid. You could set up your own business and work whenever you wished. An ideal job if you have the necessary expertise in a certain field to assist others with your experience and knowledge.
2. What is it you want to do? The best approach to a job in your retirement is doing a job you have always wanted to do but couldn't because it didn't pay enough, or some other valid reason at the time. It could be the running of a local fair, working part time in a museum, holding dance lessons or even singing, if you have the talent. Whatever you do decide, don't go to your grave without giving it a go. Now is the time to try. If you fall flat on your face as a result – who cares?
3. eBay. With the advent of the internet a whole new world has opened up for retired people looking to earn an income during their retirement years and eBay is just one of these opportunities. You could have a lot of good times going around auctions and weekend markets buying up bits and pieces of interest and listing them on eBay. You will soon become an expert on what to buy and how much you will be able to ask for it. This kind of activity could lead you into starting your own online business if you come across a certain niche that nobody else has filled. You have the time now to try out various types of online businesses, until you find the one that suits you best.
4. Blogging. While on the subject of on line businesses. Many people are now making money online by writing articles on the internet about various subjects they have special knowledge about. This could even mean telling people about a certain hobby you have an interest in. After a while you will get a number of like minded people visiting your blog on a regular basis, when this occurs you will be able to sell advertising space on your blog page that will bring you in an income. You could even sell your own products, if that was the type of blog you had built up. This may lead to you building your own website to list and display the products you have for sale. A link from your blog to your web page will then be a way of driving more traffic to your site.
5. Freelance writer. The number of new websites is growing daily around the world and a big percentage of them are continuously calling out for updated content. Good content writers are in demand and if you happen to have a good imagination, an ability to carry out wide ranging research and be a stickler for accuracy, as well as being a proficient writer, you could find this to be an ideal way to bring in some extra funds while enjoying yourself at the same time.

These are just five ways you can go about earning money in your retirement years. They will give you an idea of what is available and may help you to think of more. By utilising the internet in whatever you decide on doing you will be able to take your work with you wherever you go and still enjoy being free at the same time.


Alban spends a lot of time blogging on personal development and life changes. When he is not blogging, he is a reviewer at PersonalLoanFinder

Avoid Debt: Forget about the Joneses

Who hasn’t felt the need to 'keep up with the Joneses'?

Whereas social status once depended on your family’s name or title, the global rise in consumerism has also given rise to much greater levels of social mobility. Whatever your view on increased consumption, one of the negative aspects of it is that with so many different products on the market, we become increasingly likely to define ourselves in comparison to how much more or less our social peers purchase than us. It doesn’t even seem to matter what social sphere we belong to, as the desire to be socially accepted or to create social envy among peers impacts everyone. Not only can this social one-upmanship lead to unhappier lives, but by needing to spend more money in order to be socially accepted, we are also running the risk of spending more than we can afford. The price of ‘keeping up with the Joneses’ can be an expensive one that can lead us to debt.

So why is continuously striving to 'keep up with the Joneses' so dangerous?

Firstly, you’ll never win. There are always more ‘Joneses’ out there. If it isn’t your next door neighbor, it will be other parents from the school run or your colleagues from work. And with increasing glottalization, now we have to keep up with everyone that we see on the TV and internet too.

Secondly, consumerism is a drug. Although we all need to make purchases in order to survive, if they are for the wrong reasons – for example due to a feeling of social inferiority – you are entering dangerous financial territory. Perhaps your neighbors drive more expensive cars or perhaps you are going through a divorce. Whatever inadequacy you are feeling is not going to be solved by purchasing consumer goods. And it is a perilously slippery slope if you can’t afford it.

Finally, and perhaps most importantly, there is very little proof to suggest that consumerism is in any way linked to happiness. Perhaps the greatest consumerist society is the USA, and rarely does the USA come out top in terms of studies of global happiness. Indeed, if you read scientific studies such as the Happy Planet Index (HPI), it would appear that countries such as Costa Rica place much less value on consumption and often contain much happier people. Why is this?

It may well be that frugality is actually a much better recipe for happiness than trying to ‘keep up with the Joneses’. What we really should value most in life – things like family, friendship, trust, love, compassion – do not come from money. Although money and what it buys may often seem to provide us with liberation, if we give it too much importance then our spending can spiral out of control and lead us into debt. So the next time you feel compelled to make ‘that’ purchase, you may want to ask yourself why you ‘need’ the product, and to remember the old adage that “the best things in life are free”.

This is a guest post by Mark, written on behalf of ClearDebt.  The ClearDebt site offers advice on personal debt and credit card debt.

How to Negotiate Your Debt Repayment Settlement

Debt settlement is still a business transaction. You could have it your way through effective negotiation. Do you have a debt that you have not been repaying for the past several months or years? Have you fallen into a loan default? For sure, you want to clear your name, repay to settle the debt, and set your credit record straight.

Before you get into any debt repayment settlement discussion, be reminded that effective negotiation is a key to getting a good deal. Your lender/creditor at this point would only want one thing: to collect your balance or a part of your overall accumulated debt. Do not worry if your debt has gotten bigger due to interest payments and penalties. Lenders would always be willing to lower your debt settlement. That is much better than not collecting any repayment at all.

Getting into negotiations

Have you heard about ‘statute of limitations’? Lenders or their debt collection agencies are given a limited period to collect every debt. If the required collection period has passed, they could no longer use legality to secure any payment. The borrower would not be obliged to repay the debt, which would be categorized as collectible. It would be best if you could determine the statute of limitations set in your city, state, or country.

If you have discovered that the statute of limitations has already passed or is nearing, do not hesitate to let your lender know it. Remind them that it would definitely be to their advantage if negotiations could be finalized and debt would be settled before the time is up. You would be surprised at how lenders could turn desperate just to collect payment from you. Thus, the ball is in your hands.
At this point, you are ready to finalize the settlement amount. You could start by asking cancellation of all penalties and late fees. You would find that after deducting those costs, your remaining balance would be significantly trimmed. Do not stop there. The lender could still be pushed to the limits. Ask to slash your remaining debt by up to 50%. This is where negotiations could really take a shape.

Credit score deals

When negotiating to settle your debt, do not forget to take into consideration your credit rating. As you know, your credit score is tarnished until the lender clears your name and marks the debt as ‘paid.’ You could make your lender clear your name and your credit history as well. Ask them to do so as part of the settlement.

Once the lender agrees to all your terms, be sure to have every detail in writing. Do not make any payment or settlement unless a copy of the negotiation or finalised settlement deal is handed to you. Review the content to make sure all aspects of the negotiations have been noted. This way, you could be sure the lender would clear your credit standing even if you have negotiated for a very practical and cheap debt settlement.

Andrew has been working in the debt management industry and has been writing on debt relief and credit card debt for the last 3 years

3 Tips to Investing in Commercial Property

Many investors today are choosing to expand their property portfolios by incorporating an investment property that is zoned for commercial purposes. This is because investing in commercial property has become a viable method of generating large sums of money.

There are a variety of ways in which you can invest in commercial property. One way is to purchase a property (i.e. an office block) and then rent it out to one or more businesses. You can also choose to buy a commercial property (as an investment) and own the business as well. Both these forms of investment differ in complexity, as owning a business requires a lot more involvement than merely renting the space out. Both investment methods, however, can be hugely lucrative ways of growing your wealth.

Investing in commercial property, however, is not advised for everyone. Because there is the potential for large profits there is also the risk for huge losses. It’s always useful to think of property investment as a form of gambling— the more you choose to bet the more you risk to lose. So, to even consider in investing in commercial property you have to be financially well off.

To help you making a wise commercial property investment, three essential tips shall be explored below.

1. Research the Commercial Property Market

It is important that you do some serious research into the commercial property market. You need to make sure that you are investing in a high growth area, as you want to invest in an area that is attractive to a lot of businesses looking to rent out a space.

Also, if you are thinking of investing in a business, see how businesses of that kind are performing in the market. For example, if tourism is in a real slump it might not be a great idea to invest in a hotel.

You should contact the right real estate professionals, like a property market analyst. It’s important that you have a thorough knowledge of commercial property trends and what is involved in investing in commercial property. These professionals can also give you advice on what is currently profitable to invest in.

2. Develop a Business Plan

It’s important for you to organise a business plan and decide what role you want to play in your commercial property investment. Do you want to let out your commercial space to a host of other companies? Or do you want to own your own business and treat it as an investment?

Getting in touch with a property developer group (that specialises in commercial realty) is a good idea. You can benefit from their experience and real estate development software to develop the most efficient business plan. They can help you work out and design the most profitable form of commercial property and business.

3. Seek Out Professional Financial Advice

Investing in commercial property is different from investing in residential property. Firstly, you can’t borrow as much money to put towards the purchase of a commercial property as you can with a residential home. This is because, with commercial property, there is always the high risk of bankruptcy.

Because you have to use more of your own finances for the initial purchase, you need to ensure that your are financially secure.

Discuss your plans and options with a variety of financial advisers, like your bank, home lenders and accountants, who can help you devise a budget and financial plan. They can also help explain the most effective ways of paying off your loan, the upkeep and maintenance costs of your property and how your can reinvest your projected profits back into your investment and any tax benefits.

Protecting Yourself in a Personal Economic Downturn

Most of us think of 'Economic Downturns' as a national or international problem but what if a household experiences one? While many of us think of getting home insurance or contents insurance many of us forget about other types. Many factors can cause a downturn in a household’s income and these usually revolve around the main breadwinners. That is why many families take out life insurance but there are other types of insurance that will provide financial protection in other scenarios.

A Family Member Falls Ill

When someone in your family falls ill or is diagnosed with a serious medical condition the last thing on your mind is finances. Unfortunately, it is an important factor to consider particularly if you have to pay for any treatment. If they are the main worker in the household and their income is relied upon then you should consider trauma insurance.

How can you protect your family from illness?

• Have proper health insurance to help pay for any treatments.
• Maintain healthy and active lifestyles as well as diet.
• Insure the workers in your household against illness.

Another unthinkable situation any of us could find ourselves in is a family member who has been in a serious accident.

Your Main Breadwinner Has an Accident

All businesses must now have Workers Compensation insurance in order to protect against accidents on the job. But what happens if you are seriously injured outside of work and you can no longer do your job? This is not always likely to occur but if it does then there are ways you can be prepared for it.

Having income protection insurance is the best way to protect against cases of a serious injury or illness. Usually, this type of insurance will provide approximately 75% of your previous income if you cannot work due to accidents or health problems. While this may not be all of your pay, think of the difference between that and having no income at all!

• How many wage earners do you have in your home?
• Can you survive if you lose one income?
• Do you have other sources of income? e.g. investments.
• Can your household afford any large and sudden bills combined with a loss of income?

Those are just a few of the considerations that you have to take when thinking about a possible decline in your financial fortunes. There are also some very happy occurrences that can cause your household to struggle financially.

Extra Children in the House

If you have had a child or are expecting you will probably realise that there will be a financial cost involved. Healthcare isn't always free and there are a number of other things to consider:

• Clothing for your new child.
• Furniture for their room.
• Time spent looking after the child.

This last point is critical in your household planning as one or both breadwinners in the house may have to cut back on work in order to look after a new child. In this way you have to think of your household as a mini-economy and any loss of income should be planned for. Insurance must be combined with sound financial planning and practices in order to have your household budget running like a well oiled machine.

Income Protection Insurance - Why You Need It

Income protection insurance is a means whereby you can still receive up to 75 percent of your usual income, despite the fact that you have become injured or ill to such a degree that you can not carry out your work anymore. Without having such protection you would have no other choice than to eat up your savings and even finish up on a government disability pension in order to survive. What's more, if you are the owner of a small business you might have to employ somebody else to do your work for you so that your business can carry on without you. Income protection insurance is therefore just as important an item in your insurance portfolio as is life insurance.

Like most personal, or life insurance policies, you, or your dependents, never fully realize their full value until you have to make a claim. If you have nothing to claim against you can find yourself in a seriously adverse financial position very quickly. Therefore your need for income protection will depend on how much you stand to lose, should you become ill or injured to the extent you can no longer contribute to your own welfare.
Income Protection Should Not be Confused With Workers Compensation.

Workers compensation will cover all your medical costs and out of pocket expenses but if you are to be out of work for any extended period of time you could still find yourself in need of income protection insurance. Of course if you work for yourself you will not even have any workers compensation to help you out, plus even if you are covered by your employer's compensation, if you are injured outside of work Workers Compensation doesn't have to pay.

The risk of not having adequate income protection insurance could mean the eventual loss of your family home, or being unable to pay your rent, even your day to day expenses like buying food for your table would be affected.
Compare Quotes and Terms From Several Companies Before Deciding

In order to find the best deal as far as income protection insurance in concerned you will have to compare quotes from several life insurance companies. Premiums and terms can differ greatly between companies and the cost of the cover can depend a lot on how long you are willing to wait before your income protection payments start being applied.

Another factor to compare will be the length of time you wish the payments to continue for. It is possible to have the benefit continue until you reach retirement age. The amount of monthly payments you wish to receive will also affect the cost of the cover.

All these factors will need serious thought before you go ahead and sign up for protection only to find that the policy you chose doesn't give you all you need to cover things like your rent or mortgage, car payments, credit cards and general living expenses. The payment benefits are normally capped at 75 percent of your average income before you became sick or injured, because it has been determined that anything more than that would be an incentive to not return to work when you recover.

There are two major issues to keep in mind when finalising your income protection policy with a life insurance company these are:

Be certain that the policy you are signing up to is index linked so that it will automatically keep up with any inflationary increases.
Make sure that it is a non-cancellable policy. This means you will always be assured that your policy will keep being renewed every time it comes due for renewal. If you don't make sure of this right from the start you will find yourself having to undergo a health check every time you want to extend it further.

If you leave yourself open to re-assessment you could face an increase in premium costs. You should also examine the terms and conditions for a clause that could see your benefits lessened if you had another income stream to fall back on. Some income protection insurance policies will only pay you if you cannot work in the field you are trained to work in. This means that if any other work is around you may have to take it on.

Other policies will pay you regardless of whether other work is available or not, as long as you can't work in an area of your own expertise. This is particularly important for a professional such as a doctor who probably could not practice as a GP anymore because of his or her injury or illness but could work as a watchman at an industrial site where all he would be called on to do would be to monitor on site cameras.

As with life insurance, income protection insurance is best taken out with a solid reliable insurance company that has been around for a long time. The longer such companies have been in operation the more policy holders they obtain and the stronger they become. Longevity is also a good sign that people trust them and stay with them.

Free and cheap tools to expand your small business

If you’re running a small business and are striving to keep your overheads down, one of the best means of doing so is with the myriad of free business software that’s now available on the web, such as free conferencing or phone conference services and office app downloads, for example.

Free Dynacom Accounting Edition

Like you’d expect if you went by the name here, it’s free and it manages your accounts – you can use to do your accounts, anyway. But still – while you will have to do some work, it’s fantastic for organisations with relatively simple needs. Dynacom’s free startup Accounting Edition provides a basic business accounting package and includes software functions for purchasing, payroll, sales, bank, and general ledger. And not only this, but it also offers users a really neat-looking interface in a format that’s both highly user-friendly and efficient.

Open Office

As with the much loved Microsoft Office, users have the ability to create word, spreadsheet, and publication-style docs. And not only this, but it also enables users to analyse data and produce stand-out presentations and effective illustrations, and your work can also be published in .pdf format without requiring any additional software – rather handy, we think.

CitrusWare

A fantastic piece of free software, Citrusware offers two incredibly useful features:

1. Invoicer – as you might expect, this creates and even prints off invoices. Users can also add and save sales items to Invoicer for to use as a template for future invoices, and are also able to apply credits or debits and charges for things e.g. postage and packaging, admin fees etc.
2. Proposal Writer – you can create and print off your business proposals, making them look super slick, helping to make you and your business rather professional indeed.

Unforgiven organiser

Much like Microsoft’s Outlook Calendar, the only huge difference is that this one’s completely free. Unforgiven Organiser allows you to oversee yearly, monthly, weekly and daily tasks based on how often (or not) they occur. This software’s Contacts Manager feature is great because it links with your Internet browser, e-mail client, and Windows telephony, which enables you to sync more and more aspects of your business management systems – great stuff.

So there you have it – just a few of the myriad of free software that ready and waiting for you and your business to take advantage of – go get ‘em!

Is college even a viable option in 2011?

The economy is still at one of its weakest points in years. Job growth remains scant at best, yet tuition rates at conventional and online colleges continue to soar. The National Center for Public Policy and Higher Education reported a 439-percent increase in tuition and fees from 1982 to 2007. Between dwindling opportunities for recent graduates and increasing financial burdens placed on inbound freshmen, it’s natural to wonder if college is even worth attending.

                                                 
The amount of debt accumulated during college will have a direct impact on graduates’ finances. Sound financial preparation early on can help to alleviate some of the impact that student loans will have after college. Perhaps the best way for students to manage their finances and the expense of college is to begin well in advance, early in high school. Obviously it helps to get every grant and scholarship possible when preparing for college, but scholarships are typically easier to get for high academic performers. That means doing well and earning high marks throughout high school will literally save students money down the road.

For those relying on student loans, making sure to exhaust federal borrowing before considering private student loans is another way to keep the cost of college down. Federal student loans backed by the government typically come with interest rates around 4 to 5 percent lower than private loans issued by commercial lenders. This difference in interest means considerably less money will be owed over the life of the loan. Federal student loans also have more flexible terms than most private loans, so if students experience hardship after graduation it will be easier to defer or negotiate payments.

Some students may understandably prefer to avoid large amounts of borrowing during college. Nobody wants to graduate tens of thousands of dollars in debt. One basic yet commonly overlooked option to taking the edge off tuition and college expenses is to work during school. Even working just part-time or on weekends will make it possible for students to borrow less money.

If a student manages to earn just $2,000 per semester working through a four-year degree, that amounts to a $16,000 reduction of the amount he'll need to borrow. It’s not an option for everyone, especially those with sights set on graduate programs that require high GPAs. However, if working is an option, then every student should consider it as a path to leave college with less debt. In the end, a conversation that might have been unthinkable twenty years ago is now worthy of legitimate discussion: does college even make good financial sense? A recent report from Rutgers University showed that the median starting salary for graduates in 2009 and 2010 was $27,000. With many graduates being forced to take jobs that aren’t even in their fields, the outlook is certainly bleak.

Whether college is a financially sound option is going to depend upon the individual. It comes down to whether funding is available, what students can reasonably expect to earn after graduation, and whether they have other options available that might pay a decent salary without a degree.

One thing all students considering college should consider is that unemployment among college graduates is still significantly lower than high school graduates and dropouts. Regardless of cost, a college education still does make some difference in terms of finding work later on. Even though the economy is weak now, and a degree may no longer act as a total safeguard against unemployment, it will be a valuable asset to have once job growth picks up.

Tips on How to Maximize Deals Offered by Coupon Code and Discount Vouchers

Businesses have invented a new way of marketing and that is through coupon codes and discount vouchers. If you check the Internet, you will be able to find a lot of discount shopping sites that offer coupon codes and discount vouchers that you can use for your online purchase and even printable coupons that you can use for your store purchases. Businesses have found this a much affordable way to advertise their products. If consumers will try their service and products because of the promo that they offer, chances are these consumers will become their regular clients if they become happy with the service or product that they got.

There are a lot of sites that you can find which has a list of discount vouchers and coupon codes that stores offer. Let us take for example you want to buy a pair of shoes from shoebuy. You can easily look for a coupon code for shoebuy by just searching in Google the key phrase “Coupon code shoebuy” and you will be presented with a dozen of sites that has available coupon codes for shoebuy. This coupon code are a series of letters that you can enter upon checkout or this can also be printable coupons that you can present for your in store purchase. Discounts that you can get by using coupon codes and vouchers can be as little as 10% to as much as 50% discount. Some coupon codes offer free shipping for online purchases which can sum up to be a big amount as shipping cost can be costly too.

Because of the discounts that you can get with promo codes, consumers are sometimes tempted to purchase an item even if they have no need for it just to take advantage of the discount. Which lead us to asking: Can coupon codes really help in saving money? The answer is YES if you will just know how to use this coupon codes wisely and here are a few tips:

1. Always look for coupon codes before finalizing your purchase. There are a lot of promo codes available on the net so you should always remember to look for one before paying for any of your online purchases. Once you find one, don’t settle for it just yet and you should compare with the offers of the other sites to see where you can get a much bigger savings.
2. Sign up to different stores’ mailing list. Signing up to a store’s mailing list entitles you to receive newsletter and announcements of the stores on-going promos. Some stores even offers exclusive discounts to their members so it is wise to subscribe to their mailing list to avail of this exclusive offer.
3. Use coupon codes and vouchers as much as you can. Every time you visit a local store or you purchase something online, use as much voucher as you can. Do not hesitate to use the vouchers even if it will give you only a small dollar of savings as it can sum up to be a big savings in the long run.
4. Use the coupon codes on sale items. By doing this, you can get a much bigger discount. I remember when we went to Coach Outlet store in Woodbury Commons during the Memorial Day Sale. I was able to buy a Coach bag for only $80 since the bag was already on sale and I was still able to use my 30% voucher to get the bag.
5. Remember that these coupons codes are not your ticket to justify your shopping spree. Coupons codes are there for your use if you want to get something at a discounted price but you should learn how to exercise self control too as you may be tempted to purchase things that you have no use for just because you want to take advantage of the discount that you will get from these promo codes.

A smart shopper knows how to put these discount codes and vouchers to good use and with the tips mentioned above, you will surely be able to maximize on deals offered by these discount vouchers.

8 Things to do When Starting Your Business

If you are busy starting a new business there is a lot to remember and many things you should do to set up your business properly. Having enough finance to back your undertaking is the first thing necessary, but this is only the beginning. From organizing marketing campaigns to hiring a commercial cleaning company and making sure you have adequate security doors, setting up a business is no small feat.

Finance

To start any business you will need to have your finances in order, usually starting with acquiring a business loan from a bank. You will need to present to the bank a comprehensive business plan along with evidence that you can finance the business. You will need to have enough money saved up to support yourself for the first year at least as it is unlikely you will make a profit for a little while. You will also need to keep putting funds back into the business to help support it and ensure its growth.

Marketing

You will need to have a solid marketing campaign in place, especially when you first start out. You will need to let the public know that you business is about to open and then inform them when it is up and running. You can advertise on television and radio, if your budget stretches that far, otherwise you can drop flyers or brochures in letterboxes, pay for signs, take out an advertisement in newspapers or magazines and you should have your own website.

Fit out your shop or office

You will need to fit out your shop or office. If a shop you will need a counter and cash register, you should get connected to Eftpos, which you do through your bank, and you will need shelving, lighting and change rooms if you are opening a clothing store. With an office you will need desks, chairs, tables, computer equipment and all the usual office equipment.

Hire a commercial cleaner

Rather than do the cleaning yourself, if you have a large office or shop floor, you should think about hiring a commercial cleaner to come in once a week or even more, to professionally clean your premises.

Hire staff

If you are opening a retail store you might just start out on your own until your business gets busier or bigger, but with a larger store or office you will need to hire staff. You will probably need to hire staff if you work in a trade. Understand all your responsibilities that come with hiring staff, such as Work Cover, taxes and the correct procedures to paying wages and superannuation.

Security

You can increase the security of your business by having a security door and even security screens on your windows.

Product development

If your business is based around a new product you have developed then you will need to continually research and make this product better. If you own a retail store you will also need to look into the products you sell. You want to sell what your clients want and need so keep a track of market trends.

Insurance

You will need to take out business insurance, insure the premises and it can be a good idea to take out income protection insurance on your own income.

Tips On Investing In Commercial Properties

You’re thinking of buying a commercial property as a property investment but are overwhelmed by all the many options. Just as with residential there are many factors to consider. So here are a few starting tips.  

Tip 1 – Research the Local Area

The commercial market, just like the residential market can go through peaks and troughs. So investigate how well the economy has been going in the area that you’re looking to purchase in. There are simple, obvious signs. For instance, a street full of vacant shops with ‘for lease’ signs on them isn’t very encouraging to buy into. Beyond that, it’s good to check out the local demographics: how many users and consumers are in the area. The local chamber of commerce should give you a reasonable idea about the growth of businesses and the strength of the local economy.

But also research the local infrastructure and any plans for development. So, are there council plans to build a freeway or a new rail station or improve local transport links? These are factors that will dramatically push up the value of any property investment where it’s retail, industrial or just office space. Also investigate any possible negative developments that may be planned. For example if your planned investment is a retail space this could be harmed if a major shopping centre is about to open across the road.

Tip 2 – Investigate the Overheads

Commercial properties can sometimes have higher overheads than their residential counterparts. Make sure you’re aware exactly of what all the maintenance costs will be. For instance, things like repair of lifts or carpets or air conditioning or heating. You’ll have a lot more users in the property and so therefore expect there to be more running repairs. A building report or similar tracked over the last five to ten years should give you a good idea of what to expect.  

Tip 3 – Research the Tenant

In many ways this is the most important factor in any commercial property investment. You really need to investigate just how stable and financially secure the commercial tenant is. Some commercial tenants are immediately more safe than others (for instance, a government agency is hardly likely to default on the lease) whereas a new, untested business (for example, a new media company less than a year old) could be considered high risk as a tenant. So make sure you’re absolutely on top of the tenant’s financials. A tenant who wants a longer lease is also far more desirable. But you also need to consider if the tenant is likely to renew the lease at the end of the period. If they are a growing business will they want to move somewhere larger in five years time?  

Tip 4 – Research the Market

This comes down to investigating the area that you’re biying into. Commercial real estate is usually divided into three types: industrial, retail and office. So, if you’re considering buying a warehouse space to lease out then its worth researching the market that it will be used for. For instance, if the space is currently used to produce paper you should investigate to see how viable that business will be in the long term. Similalrly, if it’s a retail space – for example, a shoe store – research just how well the local market is doing. Remember you’re not buying an investment property, you’re also investing in a business so you need to be aware of all the latest business trends.

Think Your Business Needs a System Upgrade? You’re Probably Right

One of the major nuisances for business happens at the nuts and bolts level- Business systems. These are the moving parts of the functional side of the business, and most businesses are usually stuck with “ad hoc” networks, a menagerie of different systems doing different things. This is incredibly inefficient, and a whole new species of business software called enterprise software has evolved to manage systems far more cost-effectively.  

                                          

Overview

If you’ve ever worked with some of the strange combinations of different systems which always seem to involve multiple entries for everything, you’ll know the problems. You’ll also appreciate how hopelessly out of date the "ad hoc" systems are in the modern business environment. These systems aggravate the tedious and expensive process of transferring data from one system to another.

This is a particularly important problem for many online businesses and New Economy businesses, some of which are almost exclusively conducted on mobile devices. Ecommerce is famous for its vast range of mysterious different business applications, none of which seem to interact with each other or anything else. Phones and pads and their endless apps are worse, particularly if you don’t have a good hookup to your administration systems. In effect, you wind up with a series of different systems supplying your data, all of which has to be turned into meaningful balance sheet figures.

For conventional businesses, the situation is just as bad, although good business accounting can minimize the inefficiencies to some extent or at least act as damage controls. The problem, however, remains, with a large range of possible issues arising from multiple systems.  

These are typical cases:

• Sales 
• Inventory 
• Business accounts 
• Ordering 
• Customer relations systems 
• Ecommerce systems 
• Credit cards and banking 
• Warehousing 
• Financial management systems 
• Business planning systems 
• Payroll 
• Human Resources

Here you see a total of ten common business systems, usually all operating on different software. To get an accurate picture of your business, you may need ten separate reports correlated to provide you with a single snapshot. The multiple systems create these situations. Management has difficulty accessing comprehensive data at any given point in time, simply because of the nature of the business systems.

Enterprise software

The trouble is that the various systems can do their own jobs, but not much else. The new enterprise software is a holistic concept which creates a "single stream" management system. It was developed specifically to put an end to the expensive, costly administrative problems and put management back in control.

With enterprise software systems, you can get a full live summary of all your operations on a single dashboard. You can generate reports when you want them, not just when the machinery churns them out. These new systems are so good they’re even used for business planning and as sources for financial projections. Even better- The enterprise software systems are scalable. They can grow with your business, and have the processing power and grunt to deal with business expansion seamlessly.

The enterprise software systems are many classes above the old systems. Providers also supply technical support and guidance for customizing your new system to meet your needs. Check out these systems. You’ll be astonished. 

Staff retention- The New Frontier for Business Performance

Staff retention deals with an issue right at the heart of business performance- The business skills base. Many employers simply don’t recognize the value of skills, despite the enormous efforts they put into getting skilled staff. The blasé way in which "hiring and firing" is treated really is pretty ignorant at a time when head hunting is a boom sector in the employment sector.

There are also cultural issues in many businesses. The notorious "churn-over" effect, the constant turnover of staff is considered normal. It isn’t. It’s expensive, and failure to retain staff should tell employers they’ve got a problem. People leave jobs for better jobs, obviously, but if you’ve got a 20-30% turnover of staff per year, like some health care sector jobs in the US, doesn’t that tell you something?

Skills and Knowledge Retention- Managing the Brain Drain

Retaining skills and knowledge, is the core issue in staff retention. The fact is that losing skills and knowledge directly affects business performance. It can also affect client relationships very negatively. Some clients prefer to do business with particular people. These business relationships are sensitive, and in some cases the client may decide the employer isn't much of a business partner if they can't retain talented staff.

This reaction to the loss of skilled people is one of the key indicators of a falling skills base. Business credibility in areas like sales and services can be severely affected by loss of the vital "people skills". In some industries like finance, loss of these born client relations managers can be a cue for clients to move with them- To their former employer’s competitors. Ironically, it's also pretty common for people having unrecognized talents at one employer to move to another where they become star employees and thrive in a more receptive environment.

Staff Retention Strategies

The fact is that skills and knowledge define business performance, and staff retention strategies are based on this principle. Managing the brain drain is an ongoing process. Staff retire, staff may obtain qualifications and move on, leaving gaps in the skills base.

Staff retention strategies vary:

• The retirees are often retained in a consultancy capacity in many firms, indicating how highly valued their skills are. 
• Some selected staff with special skills may be retained with better contracts. 
• Staff development programs enhance skills, provide professional credentials and are positive incentives for staff to remain.

These are the broad parameters for staff retention, but the real onus is on employers to recognize skills and knowledge values and make sure they retain key staff.

The key issue here is the identified value of staff relative to business performance. Losing a top salesperson is often a disaster for some businesses. Losing a good accountant can make a business vulnerable to fraud. Losing a good manager can mean losing the entire performance of that area, if the replacement manager can’t maintain the same levels of efficiency.

The days of ignorant "hiring and firing" are over. Good staff can always find jobs, but employers can’t always find good staff.

Property Investment Software - The New Kid on the IT Block Makes Waves

It was inevitable that property investment would eventually get some digital software support, but the result of the demand for this software has turned into a game-changer. The new property investment software is a true business tool. For a multi-trillion dollar industry which consumes a lot of the world’s capital on a daily basis, this is like the invention of fire.

                                

The fact is that the market has outpaced its information systems. For a big capital sector, that’s not a healthy situation. When people are investing billions per hour, information is effectively currency. The old days of academic pronouncements regarding market trends are well past their use-by date for investors. It’s fine to have an overview, but when you’re looking at specific values, you might as well be talking about the weather.

Commercial property is a case in point. Commercial property values can be matters of considerable debate, as well as cost-sensitive. New property valuation software can do in seconds the sort of calculation which used to involve expert analysis and argument. A debate makes a lot more sense with a dollar value attached to it. Commercial real estate is no joke in terms of capital commitment, and knowing exactly what you’re arguing for or against is made a lot easier with real numbers to work with. After all, the transaction will translate into exactly that- A figure, and it needs to be a credible figure.

Development software- A new asset for a tough market

Another area in which the new software is making itself felt is the huge development market. Real estate development software is a major advance for developers, and it’s brought with it good business system management capabilities for this data-heavy environment. If you’re building multi-billion dollar hotels with accommodation for thousands of people, you’ve got a gigantic amount of information to manage. The new software turns that very heavy and extremely expensive information load into a true information system.

Like the best enterprise management systems, the new commercial real estate software and development software create excellent structures for extremely efficient, well-structured management. The new software allows the entire process of management to be customized to match business needs. Instead of a “software monster” with multiple functions you may never use or need, you can get the software you need, tailored to your own business needs.

The game changing effect

This increase in efficiency is exactly what the property market and investors need. In countries like the US, where the old title systems are literally fossils, capital issues are major business factors and the market is to put it mildly in a state of flux, working information and good fast data management are major assets. They’re huge cost savers for processes, as well as excellent business systems which can be used as true management tools operationally.

The game changing effect happens right on the bottom line, too. If you’re looking for better administration and management for your property interests, you’ve found it. Do yourself a favour and investigate what this software can do for you.

Understanding Family Guarantor Loans

It is the natural instinct of most families to help each other out. However, when you are a parent wanting to help your child into their first home for example, you may be met with a stubborn desire on the part of your off spring to make it on their own. However, there is a happy medium between giving your child the money they need for their home or deposit, and ignoring their struggle to save all together, and that is to go guarantor on their home loan.
What is a family guarantor loan?

                              

A guarantor loan allows people with a poor credit rating, little deposit or who are seen as a risk to lenders in other ways, the chance to be approved for a home loan. All you need to do is find an eligible guarantor to endorse your loan application to be approved. Your lender won't conduct a credit check so you can still be approved if you have high credit card debt or have defaulted on other loan payments.

To get a guarantor loan:

• Find a guarantor. As the borrower you need to find someone who is confident in your ability to repay your home loan, such as your parents. Your guarantor uses their own credit to help you get your loan. a guarantor doesn't have to be a family member, they can be a friend, as long as they meet the lender's criteria. A lender will usually require a guarantor t be a home owner, over 23 years old and have a good credit rating.
• Complete application forms. You then provide the details of your loan and your guarantor to the lender and you will then both need to complete application forms. The lender may then contact your guarantor to confirm their details and make sure they are aware of their obligations.
• Checks on the guarantor. The lender will then complete a credit check and assess the guarantor’s other eligibility criteria.
• Interest rate. A family guarantor loan is an unsecured loan but you are not necessarily looking at a high interest rate because of this, instead the interest rate is based on the credit history of the guarantor.
• Loan approval. If the checks on the guarantor are successful, the loan will be issued to the borrower and the guarantor’s role is over. The monthly repayments are their paid from or directly debited from the borrower’s account.
• Guarantor's role. The guarantor of the loan will only need to step in again if the borrower can't make their repayments, in which case the guarantor needs to cover the amount.
• Borrower's credit rating. If you are able to make your repayments on time throughout the loan period and repay your loan responsibly without needing to cal on your guarantor, this will improve your credit profile.

The guarantor and their role

A guarantor is taking on a big responsibility, and should understand their role fully before agreeing. At the same time, if the borrower has a bad credit rating, they are able to improve it by using the good credit rating of their guarantor. However, the guarantor is still taking a significant risk because they become liable for the loan repayments if the borrower can't make their repayments, this is why family guarantor loans are the most common.

The role of the guarantor includes:

• Trust. When your guarantor is trusted and financially secure, and they put their trust in you, then you can increase the trust instilled in you by the lender.
• The initial assessment. Because a family guarantor loan approval is based on the eligibility of the guarantor and not the borrower, your guarantor will need to be assessed during the approvals process.
• Repaying the loan. If the borrower cannot or will not make their loan repayments, the guarantor must make those payments to avoid legal action from the lender.
• Liable for the loan. the guarantor is also liable for any outstanding loan costs and if the loan is not repaid it affects the credit rating of the guarantor, not the borrower.

To be a guarantor you must:

• Be a home owner.
• Have a good credit history.
• Be employed in a full time position.
• Be over the age of 21, although this age limit can vary between lenders.

As a result, a guarantor can be:

• A family member.
• A neighbour.
• A colleague.
• A friend or anyone else who has a clean credit history and is willing to be responsible for your loan.

Advantages of a Family Guarantor Loan

While your guarantor is taking is risk in supporting you in your loan application, as a borrower who is unable to secure a loan in the normal way, you can benefit from a family guarantor loan in the following ways:

• Easier loan application. If you don't have enough deposit, if you have a bad credit rating, if you are self employed or if you are borrowing for your first home and so you have no credit experience, then using the experience and security of a family guarantor can help you get your loan approved.
• Your credit isn't checked. The application process for a family guarantor loan doesn't require you to meet any eligibility criteria or undergo any credit checks. Instead, the loan is approved based on your guarantor's credit. Even when you are assessed for a loan in the normal way, there is no way a lender can know everything about how you live and manage your money. However, your family guarantor does know these things, and the fact that your guarantor is willing to put their trust in you encourages the lender to put their trust in you too.
• Lower interest rate. When you apply for a loan based on the credit history and application of your guarantor then they are presenting as a good risk and this qualifies your loan for a low interest rate.

Disadvantages of a Family Guarantor Loan

The disadvantages of a family guarantor loan fall to the guarantor because they are risking having to repay the loan amount if the borrower is unable to do so. The guarantor is putting themselves and their own home up as security for the loan and if the borrower can't meet the repayments the guarantor must repay the loan, as well as pay any closing costs to sell the house and pay out the loan.

Therefore, the guarantor should carefully consider the borrower asking to guarantee their loan, and decide whether the lender is justified in viewing them as a risk. This should also be a chance for the borrower to look at why they can't be approved in the normal way, and can you really afford the mortgage repayments, or will you end up putting pressure on your guarantor?

Who is suited to a family guarantor loan?

A family guarantor loan is a great alternative t a loan rejection, but it still isn't for everyone. A guarantor loan is best suited to:

• People looking to restore their credit rating.
• People who can afford the loan repayments without having to rely on their guarantor.
• People who are renting and want to make the move to owning their own home.
• Homeowners who don't have equity in their property and want to refinance.
• First home buyers who are still living at home and want to move out and start their own life.

This article was written by William from Home Loan Finder. Visit Home Loan Finder to compare home loan interest rates or find the right mortgage broker.

How Software Asset Management Can Help Your Business

It is generally a good idea for any business that owns software to have a Software Asset Management programme in place. This procedure can help the company identify what software it has and how many computers are using it, discover whether this software is being used efficiently and ensure that they have the proper licences and documentation. It is one of the most effective and reliable ways to keep track of software and it has many advantages for a business. These include:



Avoidance of expensive fines and possible criminal liability

Almost every company will face a software audit at some time during its existence. If illegal software is found, the guilty parties could face high fines and tremendous damage to their reputation. A Software Asset Management programme helps businesses avoid these problems by ensuring that they understand their software's terms of use and are compliant with all licensing conditions. With this process in place, the firm will be able to confidently respond to any questions the auditor asks and emerge from the audit unscathed.

Cost savings

A Software Asset Management programme can save a business as much as 30 per cent after just year one and 5 to 10 per cent every following year for five years. This technique can save money in a wide variety of ways beyond just helping the company avoid fines for illegal software. It ensures that all licences are being used to their fullest extent, helps the company make the most of available volume discounts for future licences and assists with creating an effective software budget.

More up-to-date software

When a company is using obsolete software, it costs money and hurts productivity. Software Asset Management can help a firm gauge which software is no longer useful for their business and upgrade or change it where necessary. It can also identify which software titles have proven the most valuable to the company so that they can be put to wider use.

Increased productivity

When employees are using different versions of software, it can be difficult to share files or communicate effectively. Often business owners are unaware that this is happening. Software Asset Management helps ensure that software is compatible across the company, thus creating a more constructive work environment and more content employees. In addition, this programme can help make certain that employees are using their user manuals effectively and utilising available product support and this also increases productivity.

Improved security

Unauthorized software and dangerous downloads can create a serious security issue for businesses. Often, this software contains viruses and spyware that can compromise a company's privacy and financial safety or damage computers and even whole networks. With a Software Asset Management programme in place, employees will not unknowingly put these programmes on their computer. Not only does this make the network more secure, but it reduces the need for time-consuming and costly technical support.

Better reputation for your business

People who are sure that the company they work for is not misusing software tend to have more confidence in that company. Likewise, other businesses feel more comfortable working with companies that are fully compliant with all legal conditions of their software. A Software Asset Management programme creates this situation for your company and it also eliminates circumstances where you might damage your good name by unknowingly giving a virus to business partners or clients due to unsafe software.

When to Consider Settlements on Your Debts

When you are in a situation where your income is much lower than your debts, as many people are finding themselves in, it can be a very trying time in your life. There are many people in this situation since the financial crisis only a few years ago. The economy might be improving, but the fact remains, there are many people who do not have the income they once used to. It was only a few years ago banks and other loans providers were handing out unsecured loans and other cash loans very easily. If you are in a situation where you cannot afford your debts, it is time to try and settle on them. Once you begin to default on any unsecured loan, it will not be long before a debt collection agency has taken over your debt. Your loans provider will only contact you a few times before they hand over your debt to a collections company. They are not in the business of chasing after people to get their money back.

                         

• Debt Consolidation. If you have a number of cash loans, credit cards and store cards, debt consolidation should be your first option. Getting a longer term loan to pay off all of your smaller loans and credit cards is the first choice you should consider if you are finding yourself in difficulty making all of those small payments and the large amounts of interest they are accruing. If you are only making the minimal payments each month, you will find that you are not even reducing the balance that you owe. There are only two ways to deal with a number of smaller debts, either pay them all off in full by yourself, or get a larger loan to pay them all off and reduce your total debt. The amount might be the same, but the interest on those smaller amounts will be adding up to a considerable amount. If you cannot afford or cannot find a provider that will help you with a larger loan to consolidate your debts, it is highly likely you are going to find yourself in a situation where you start defaulting on your debts.

• Understanding Debt Collection Agencies. Debt collection agencies, in most cases, will have purchased your debt for a very small amount compared with the original amount you owe. This will change depending on the economy or the region you live in. You should understand that they are making money on the fact that they purchased your debt at less than 20% of what it originally was. If you have a number of smaller debts, such as with several credit cards, cash loans and store cards, you could soon find yourself with a number of debt collections agencies chasing you. This will be a very uncomfortable situation.

• Advise You Want to Settle. When you are sure you have the debt, and you have already defaulted on it for at least 90 days, it will normally be in the hands of a debt collection agency. The bank or loans provider has nothing more to do with you. You should not run or hide from the debt collections agency, or agencies, that are trying to get the repayments from you. It is time to negotiate. You should ask for everything in writing, and you should communicate everything with registered mail to the debt collections agencies. The best thing to do is to state to them, you are in extreme hardship, and initially make the lowest offer possible. This process is going to take some time. You cannot expect to settle on a debt very fast, unless you can pay the amount of the debt that you owe. To get a much lower settlement is going to take some time.

A debt collection agency will be very assertive once you have advised them, you want to make a settlement. If they know you are in hardship, they will try to get the most out of you as soon as possible. If they try to sue you, and you fall into bankruptcy, they know there will be little chance of them getting anything at all. You will have to take your time, and you can expect this to be a very trying time of your life. Getting good settlements at the lowest possible amounts is not an easy process. It is advised you get professional and legal advice before stating you are ready to do this.

Mortgage News: From Linda Todd

With all of the recent fight in making lending more stable without as many risk factors involved as we can see from the past; is not much that has not changed regarding how all loans are made. That includes how banks make personal loans, commercial loans and secured loans; not just mortgage lending. Regulators have been working overtime to try and make sure solvency exist within all areas of finance. We have been informed by the government and we know from our own knowledge; that the process still isn’t finished and that we still has a long road ahead for securing a rise to stability for the economy at this point in time.

Mortgage News from Linda Todd

When the regulators changed the rules for disclosures; which included the Good Faith Estimate (GFE) and HUD1 (closing statement); it affected all lending institutions, the consumer loans/banks as well as mortgage finance and that included how loans are made, when and what specific disclosures are given and how they must be completed. No one is given special exclusion. At this point in Mortgage News the GFE and HUD1 are being examined again for change. This is to help make these documents more easily understood for the consumer by intertwining and making both documents as one document. With this articulation; changes are still in process to try and make it much easier for consumers to understand the full cost of the loan; but is receiving detestation by mortgage professional as making matters only worse.

That said; the new Risk Retention Law has received some criticism also from, not only mortgage professionals, but the FDIC’s Chairman, Sheila Bair who has been designated as front speaker for the regulators involved in clarifying the Risk Retention Law. This law entails the 5% retention by lenders for loan which have a loan to value greater than 80%. This means that more mortgage applicants would need a 20% down payment and a debt to income no higher than 28/36%, for the lender to be exempt from that retention. Ms Bair has indicated that since FHA, USDA, VA and Fannie Mae/Freddie Mac are exempt from this law at this time; it appears unfair for those consumers who do not have a 20% down payment or income ratios mentioned. This would create a variation in loan pricing by the agencies for those loans that did not meet the specific criteria and make those loans more expensive for those without sufficient funds or income within the required range.

Included in Mortgage News is that Real Estate Agents and Loan Officers are calling for more flexible method of examining loans for first time homebuyers. It is frightening to these professionals to think that all homebuyers must have a 5% investment when purchasing a home. FHA has tightened up their guidelines in many aspects concerning processing new loan applications. They are beginning the talks of making changes to the down payment structure of these loans to be more uniform with conventional lending at 5%, instead of 3.5%.

Since Congress is the beginning of all talks on regulations and mortgage changes and the effort of stabilizing of the housing market; we have to wait and see if these changes will become law and then generate more Mortgage News.
News crossed the wires yesterday that Fannie Mae’s Economist did not restore our faith that the economy is improving and actually indicated that mortgage applications are not getting better and in fact May had a fall with another expected in June; while pending home sales dropped another 12% in April. The terms used were; we are in a mortgage rut and the forecast is not good. This is not the best Mortgage News we would like to hear regarding stabilization of our economy. It is stated that unemployment is one of the main issues regarding stabilization of the economy and the housing markets. When people get back to work with stable income and a feeling of security; the economy will become more stable, but until then here we sit in limbo and hopefully our next mortgage news will find us in higher spirits.

Property Investment Golden Rules

Holding on to an investment property can be a truly traumatic experience. In a volatile, neurotic property market, it can be genuinely scary. In a falling market, it’s just grim. The truth about property investment is that it isn’t and never has been a "get rich quick" market. It’s a "get rich over time" market, and time is the key to holding investment properties.

                               
It's possible to make good money in a short time with good property investments. On average, however, the time factor tends to extend. Some investments are better than others, and some perform much better than others in their markets. There are quite a few factors which affect property investment, but the key factor is the ability to hold properties to get a good return on your investments.

Holding a property

To hold a property means that you are able to maintain ownership of the property. Several factors, usually financial, can sabotage holding. Mortgages and costs can conflict; meaning your hold on the asset can be compromised simply by cashflow issues. The simple fact is that if you’re holding a property, you’re holding a significant asset which may need to be brought into play to deal with financial issues when times get tougher.

The rule, therefore, is to hold a property that you are certain you can hold without financial impacts in order to realize the best returns on that property. That can be a period of years and can involve multiple market scenarios, so this is no minor issue.

Holding a property is very like a business textbook exercise- That’s because to all intents and purposes, it is one:

Holding a property involves:

• Being able to meet costs like bills and rates as they fall due
• Maintaining good control of the finances required to operate the asset
• Ability to service and maintain properties appropriately and in a timely way
• Full servicing of debt payment obligations

This may seem pretty straightforward. Consider, however, what would happen if you weren’t in a position to do these things. Bizarre as it may seem, the "forced sale" of investment properties is often triggered by not being able to meet these criteria.

The result, predictably enough, is usually a loss, and occasionally a catastrophic loss. The usual cause is that the investor has over-extended their borrowing, or miscalculated the costs of holding the property. The end product can be a train wreck.

How to make absolutely sure you can hold a property

Everyone knows how to use a calculator, but everyone can also still get the wrong answers using them. You really don’t want to be guessing about your ability to hold a property. The best, and definitely the safest, option for investors is to get some professional help in their investment acquisitions.

Professional property investment advisors factor in the holding costs of acquisitions of property investments. They can also provide information about cost offsets, tax benefits, and other legitimate cost management options.

Talk to a professional property investment advisor, and you’ll get the information you need about holding your property. You’ll also get a priceless lesson in property investment management.

Is a Ph.D. Worth the Investment?

Doctorate programs take years of study, and in the liberal arts field, may cost significant amount of money to complete. So is it really worth it? The Economist notes that 64,000 doctorates graduate in America per year. This means as a nation we must be getting smarter, the only problem is, there are not jobs enough for all of these graduates.

                             
People who have attended Ph.D. programs usually have been trained specifically for work in academia. After four years or more of intensive study in a narrow field, the skill set they have learned tends to be very specific. The corporate world, however, usually does not consider this a substitute for years of working in business. Thus, if a graduate plans to work outside of academia, their time and energy may be better spent climbing the ranks and growing earning potential, rather than living off a teaching stipend of $20,000 per year, only to graduate with uncertain prospects.

Similarly, academia has its own money problems. When it is cheaper to pay graduate students and postdocs to teach undergraduates and conduct cutting edge research for a salary of $20,000 to $40,000, it just makes fiscal sense to cut back on full time staff. Likewise, as tenured professors are dying off, the concept of tenure is dying with them. Thus, many doctoral candidates can see the writing on the wall. The dropout rate is high, debt is high and the earning power of such a degree in the liberal arts, unlike in medicine and law, is only marginally higher than a bachelor’s degree.

The government talks about everyone needing higher education, but flaws in the system prove it is just a pipe dream. Ph.D.s should be valued as proof of a person’s dedication, rigor and accomplishment in a field, but post-school careers rarely reflect this. Still some people need Ph.D.s to succeed in their fields, but it takes some number crunching and acceptance to a good institution before a student should commit to the pursuit.

Home Warranty vs. Home Insurance

You may ask yourself is there a difference between a home warranty and home insurance. The answer is yes. There is a difference, and it is a big difference. Home insurance is required for your home, while a home warranty isn't required and isn't always necessary.

What Is a Home Warranty?

A home warranty offers protection for your major appliances, plumbing, and electrical wiring. These warranties will cover the cost of repairing or replacing major household essentials if they break down.

How a Home Warranty Works

A warranty company already has contracts with different service venders, so when a covered item breaks down you will need to contact your warranty company. They will then contact a service repairman to come to your home and repair the item. The repairman will fix the item or recommend that it be replaced. The service repairman will bill your warranty company directly.

What a Home Warranty Costs

A home warranty can range in price from as little as $200 to as much as $700 a year, depending on the amount of coverage you receive. You will also have to pay a service fee anytime that a repairman is at your home. This fee generally ranges from $25 to $100.

Do You Need a Home Warranty?

Home warranties are becoming popular in these hard economic times, but before you purchase one make sure it is the right decision for you. If you are trying to sell your house, a home warranty will be a good investment. Many buyers like the protection that is offered with a warranty and may purchase your home just because they have that security for one year. If you have an older home and your appliances are getting older, a warranty may good idea for you.

How to Choose a Home Warranty

When you are thinking of investing in a home warranty, be sure to shop around. When you are getting price quotes, ask to look over a sample policy. Remember to read the policy in its entirety, including the fine print.

What Is Home Insurance? 

When you purchase a home you are required, by your lender, to carry homeowners insurance on your home. A home insurance policy has two basic areas of protection: it covers your home in the event that it is damaged and offers you liability protection from lawsuits.

What Home Insurance Covers

Home insurance offers you protection for damage to your home. This damage could be from a fire, theft, vandalism, or certain natural disasters. Not only does it cover your house but it also covers your personal items and gives you liability protection. Liability insurance will protect you from lawsuits in the event that someone is injured on your property. Home insurance will only insure your personal items if they are stolen or ruined in a disaster, it will not repair or replace them if they are broken.

What Home Insurance Costs

The price of home insurance varies greatly. Many things are taken into consideration, including the value of your home and its contents, the loan amount on your home, the location of your home, and the amount of your deductable.

How to Choose Home Insurance

As with any type of insurance, it is always a good idea to shop around and compare prices and benefits. A great place to start is with your current car insurance carrier, since most insurance companies will offer you a multi -policy discount. Make sure you read the policy before writing a check and ask any questions you may have.

Guest post from Bailey Harris. Bailey enjoys writing about real estate, insurance, finance, and related topics.