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If you can’t rely on your own research, or if you don?t have time to do the research, you might as well make your investment decisions based on tips from that smart guy at work. No, no, I’m just kidding. Tips are for restaurants.

Important Rules to Follow When Buying a Stock

These suggestions are presented with the assumption that you intend to remain a casual investor. I strongly recommend mastering the art of technical analysis (reading charts, analyzing price and volume moves) if you intend to become more serious about the timing of your purchases.

With this said, you should still be able to buy good stocks if you follow these rules:

1.Don’t ever buy a stock without first examining its financial health. You are going to learn how to do this.

2. Don’t ever buy a stock without first learning about its business and who its competition is. You want to focus on the leaders in an industry.

3. Buy when market indexes are in an up-trend. Don’t try to bottom-guess, wait until the stock or the market has clearly turned around, with several days of price increases on larger than usual volume.

4. Buy the top companies of industries or market sectors with many stocks hitting new highs.

5. Buy companies with new products or services that are expanding (profitably), especially young companies.

6. Determine if large or small-cap stocks are favored in the current market.

7. Pick companies with high management ownership. With their personal stake, there will be a tendency to Read more…

Regardless of where we are in life we can all learn something about money and how to better prepare for our future. Especially when we see that the national average is $10,000 in credit card debt and that savings and preparedness is dropping. This article can put you back on track to a more fulfilling and financially free life.

1) Automate your investing. Experience has proven that if we have to make a conscious effort every time we need to invest we will start with good intentions and then miserably fail a few months later. If you can automate your savings, whether by using your employers 401k, a sep (self employment plan), or direct deductions from your account you will finish ahead. The rule here is if you don’t see it, you won’t realize it and you won’t miss it. Some of these deductions will reduce your taxable income and save you further on taxes (see your CPA and tax advisor for more info on this). A good rule of thumb is to set aside 10% of your income.

2) Real estate. If you haven’t already, buy a house. Renting will only make your landlord (hint – house owner) rich. Regardless of what the immediate market does real estate is one of the best long term investments you can make. It also has many advantages including deductions for mortgage interest. Real estate will always go up. People will always need a roof over their head. Just watch HGTV, real estate has made many millionaires and is a key factor in almost every tape and book series on gaining wealth. Stick with the standard 30 year fixed mortgage.

3) Medical and life insurance. You need to have them, if you think you don’t just ask anyone that didn’t have it when something unexpected happened. If you love your family, they are a must. But, on that note, don’t get taken. Buy term life. 20 years will give good term coverage and if you follow all of these tips you won’t need anything beyond that. Whole life only makes your agent rich and really never builds any value for the huge costs involved. Term life can be purchased cheap over the internet at great savings. For medical insurance, in most states Blue Cross and Blue Shield offer great plans that are a fraction of Cobra or employer plans. If you have an adequate employer plan, by all means use it. Stick with big names like Blue Cross as they will be around for years.

4) Don’t ever buy new cars. It is a fact that new cars lose 25-30% of their value the moment you drive it off the lot. Let someone else pay for that depreciation and get a two or three year old car or truck. With the latest technological advances cars can easily go 150,000 miles and above. A two or three year old vehicle with 30,000 miles on it will save you not only in initial cost, but also on your insurance, and taxes. Also do your homework before buying your car. Get your credit score and see what loans you qualify for. This can easily be done right off the internet and will save you big at your local dealer (never take a dealers word for your credit and rate – they will hold 1-3 points on rate and that can mean thousands in extra interest over the term of the loan).

5) Get out of debt. I put the Read more…

The Basics

I know most of you know about bankruptcy, for those of you that do not, here are some basics. Generally, filing bankruptcy allows people who are having financial difficulties to wipe out their debts, which can provide them with a fresh financial start. There are several events that can take place to force people to take the path of filing for bankruptcy. Some events may include divorce, unemployment, lawsuits, foreclosures and credit card debt.

Bankruptcy serves two main purposes. It gives creditors a fair share of the money that debtors can afford to pay back and it gives debtors a fresh start. There are two ways in which bankruptcy can provide for payments to creditors and discharge for debtors: Chapter 7 and Chapter 13.

Chapter 7

Under this chapter, all unsecured debts are wiped out. These debts include credit card bills, medical and legal fees, utility bills and deficiency balances. Debtors can lose certain properties which the courts can sell and pay the proceeds to the creditors. There are some debts that cannot be discharged through this process. These debts include alimony, child support, some student loans, most taxes and debts resulting from fraud, larceny, debts and fines.

Chapter 13

This chapter is designed for people with regular income that want to pay their debts but are unable to do so. The purpose of this chapter is to help people, under court supervision, to work out a repayment plan with their creditors in which the creditors are repaid under a prolonged period of time.

Credit Card Solicitations

According to an article recently published in The New York Times by Timothy Egan, there is a woman who is a nurse and a single mother of two. She filed for bankruptcy before the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 because of her bad use of credit cards after her cancer surgery. As soon as she filed, she began to get two to three pre-approved credit cards in the mail daily. Now ask yourself, why would banking institutions and credit card companies want to attract consumers that have trouble paying off their debts? Bankers say it gives them a perfect opportunity to rebuild their credit. On the other hand, it also keeps consumers in a repetitive downward spiral of debt. Banks already know the risks of soliciting recently bankrupt consumers with a clean slate. That is why they offer them extremely high interest rates and even require a cash deposit on the card. This is why these consumers are an attractive market for credit lenders.

According to an article published in The Washington Post by Caroline E. Mayer, there is a yet-to-be-released survey of 356 debtors who filed Chapter 7 bankruptcy in 2001, 96 percent reported that they received offers for credit cards, car loans, mortgages and other credit the year after their debts were discharged. Half of the 96 percent received at least ten solicitations a month.

New Requirements

As of October 17, 2005, the new law also known as the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 makes it much more difficult for consumers to file for bankruptcy. This new law mandates enrolling in a credit counseling session before bankruptcy can be filed. People also have to complete a financial management seminar before bankruptcy is complete. The curriculum that consumers should be learning at these seminars is budget development, money management, using credit wisely and consumer information. Most of these classes will have a fee. Another critical change is ?means testing.? According to Read more…

Investors often find it difficult to decide on the right time to invest. There is a tendency to invest when everyone else is investing. Mutual funds have devised a very sensible solution for investors to deal with the issue of timing ? The Systematic Investment Plan. In SIP the investor buys units every month for a specific amount so his investments accumulate over time, and he is able to participate in the market regularly without worrying about the right timing.

Many investors seem to invest purely because the debt markets have under delivered in the last two years. If this is the reason for shifting into equities, then this reasoning is clearly flawed. Every investor must seek to practice asset allocation ? whether equity or debt. It would be a good idea to be in both and investors who can?t determine the ideal asset mix, may want to see a financial planner.

Investors should also a being taken in by Credit as it could lead to investing in the right products at the wrong time. Investors should always try to keep a balance, instead of investing all the funds into one product. It is a good idea to have a core investment Read more…

When the prices of commodities are booming and expenditure is increasing in every manner, it becomes essential to make some planning for your income.

? The best way to take care of your money is to plan a budget. A budget should keep a track of all your expenses. The indispensable expenses like education fee of the kids, the bills, the fuel, taxes etc. should be estimated and subtracted from the monthly salary. Then monitor the other likely expenses like gifts on friend?s birthday in that month, your anniversary, weekend outing and the like. The amount that is left after reducing the essentials should be planned in such a manner that you end up with little, at times even negligible savings.

?A Penny saved is a Penny earned?. Savings are very crucial in today?s life. But many people do not understand the relevance of savings. An individual, who develops the habit of saving money, never falls short of it especially in exigency situations.

If the outlay outweighs the income, situation is called a negative cash flow. In this case you ought to be extra vigilant while spending money. Try to reduce the weekend trips, partying at home or outside, purchasing needless items etc. If possible make a new budget where you have optimized the costs. It then becomes your duty to abide by this budget in order to avoid pitfalls. While if the case is other way round i.e. the cash inflow is more than its outflow, its time to cheer and of course make some savings for the future.

? Next good thing you can do to manage your money is to make investments. Investments can be of different types. You can invest in a property or land, in banks, in stocks etc. The investments you make not only keep your money secure but also give you good returns. Like money that is kept in a fixed deposit in a bank is supplemented with interest amount, the cash invested in purchasing shares of an eminent and successful company, always give a great output etc.

If you are investing in some trust or insurance policies, your wealth will not just be beneficial for you till the time you live; it will also be a financial security for your children and grandchildren in future. So investments generally are rewarding, they do not go futile. But before making any investment, you must enquire about the Read more…

There are many students in the United States who are having a hard time paying their student fees. For most student loans, it requires that you have some collateral, meaning you need to have some equity such as a home or a car before you can even about getting a student loan. So what happens if you do not have both?

I should let you know there is another type of loan known as unsecured student loan. It is particularly useful for students who have no collateral or have bad credit. Unsecured student loan is simply a student loan where the lender knows your financial situation is not good but is still willing to lend you a loan.

Usually, unsecured student loan interest rates are higher than normal student loans but that is to be expected since the lender is taking a larger risk in lending you the money.

Currently, both private and government have unsecured student loans available. I do need to advise you that if you intend to get an unsecured student loan, be prepared to be questioned intensely. That?s because such loans are considered high risk by most lenders therefore they will do a lot of background checks and questioning before giving you the loan.

The advantage of an unsecured student loan is intended to pay off all your existing student loans and take up one student loan, repayable on a monthly basis. The interest rate may be higher but at least you don?t have to constantly worry about paying various student loans.

Some lenders also impose a limit on the loan amount. Keep in mind the risk the lenders are taking, therefore do not expect to get a huge unsecured student loan. Usually the loan Read more…

Businesses are the life and soul of any economy; the more the businesses flourish, more the economy of that country flourishes. We can say that they are directly proportional to each other and realizing that we see the businesspersons being offered more and more secured business loans.

Secured business loans are offered to businesspersons or people who want to enter the business arena. The requirements that a person may have for which he may have to take secured business loans are:

?For a new businessperson, the secured business loans provide him with an opportunity to launch a new business.

?Secured business loans are ideal for businesspersons who want to expand their business profile.

?Secured business loans are also available for businesspersons who want to buy machineries or other assets, which may help them in enhancing their businesses.

?Other uses of the business loans include buying from auction, sale or even use them as bridging loans, as many businessmen do.

Apart from these, other specific issues relating to business finances can also be sorted out with secured business loans.

Before applying for the secured business loans, it is important that a businessperson should understand the various subtle nuances of the secured business loans and the challenges and the opportunities that it presents to the people who apply for the following.

Secured business loans are available to people of all the profiles; thus, it could be a person with good credit history or bad credit history. These loans can only be used for business purposes and not for any other purpose.

Once the fundamentals of the secured business loans are clear, any businessperson can apply for the secured business loans.

Another step that the borrowers of the business loans have to keep in mind while applying Read more…

There are many reasons that you should never take out a payday loan (sometimes called a cash advance), including the high interest rates that make it financially irresponsible. Now, however, there are even more reasons to avoid getting a payday loan in Canada because of the high number of lawsuits against these loan companies.

Payday loan companies are notorious for disguising the amount of interest they charge consumers; they hide it in various fees. These fees often add up to more than the interest itself. In Canada, it is illegal to lend money with more than 60% interest. Sixty percent seems like an exorbitantly high interest rate in and of itself, but when you look at the fact that companies manage to charge more than this interest rate, the figures become positively alarming.

There have been numerous lawsuits filed against payday loan companies. In Canada, Bill McNally of McNally, Cuming, and Raymaker filed a suit in Calgary claiming that payday loan companies charged clients illegally high interest rates. The payday loan company Instaloan chose to settle with McNally: people who think they are eligible claimants may contact McNally to discuss getting their money back. The government established that these payday loan companies, while only allegedly charging 59% interest were actually charging 650% interest (not compounded) when you included all of the fees. Instaloan has set aside more than one million dollars to repay borrowers from the past eight years in Alberta, Saskatchewan, Manitoba, and Ontario.

Windsor, Ontario lawyer Harvey Strosberg of Struts, Strosberg LLP filed a lawsuit against MoneyMart, a major name in Canadian cash advances. Toronto lawyers Koskie Minsky and Paliare Roland have also joined in this motion. Although the lawsuit began in 2004, there is continuing litigation. Justice Hoy, the judge overseeing this case, has ordered that the certification hearing be in October 2006. This lawsuit accuses Money Mart of violating the 60% legal interest cap.

Sutts Strosberg et al have also filed suit against Stop?n?Cash, another large Canadian payday loan company. This suit has been granted class action status as of November, 2005, and will proceed to the courts in the following years.

Instaloan, Money Mart, Read more…

So, you?re short on cash and needing money?now! You can?t expect to receive a Western Union money transfer from a family member and your girlfriend is all tapped out. What to do? Well, for some folks payday loans are an option. How do they work? Essentially they work this way: you borrow money which goes directly into your checking account to tide you over until you get paid, hence the ?payday loans? name. When you get paid, you repay the loan, plus interest and you are assessed a fee. That?s it! No, payday loans aren?t cheap and they aren?t for everyone. However, if you need some ?quick cash? and are in a bind, then payday loans are worth a look. Read on and we?ll cover some payday loans essentials.

Are you short of cash? Join the crowd! Too many people are short on funds and payday is too far away to help out. So, you approach the local loan shark and ask him for help. Wait a minute! Don?t do that! Instead, payday loans are here to help you out.

So, what steps are involved in securing payday loans? Well, depending on the lender they can and will vary. Here are the typical steps you must take to secure payday loans:

Apply Online ? Yes, right through the convenience of the internet you can apply for payday loans and have funds deposited in your checking account overnight. Filling out an application and posting your requested amount typically gets the ball rolling. Some plans will also pay you for referring others Read more…

Performing volunteer work, teaching in certain school districts or within certain areas, or by providing legal and medical services, you can help yourself in paying down your student loan debts by trading the skills you learned by going to college and geting your degree.

Students leaving college and entering the work-world often complain of being confronted by overwhelming frustration of having to pay enormous student loan debts and not really knowing how to tackle that debt.

By participating in some of the following programs open to certain skill sets and occupational fields, you’ll have an opportunity to see the world and help others at the same time.

Teachers: Some student loans can be cancelled or, as it’s more commonly referred to, “forgiven,” if the college degree leads to or complements a job in the teaching profession. Up to $17,500 of your student loan balance might be cancelled.

Americorps: This organization is the domestic arm of the Peace Corps, and it offers up to $7,400 in living stipends. Will pay approximately $4,725 in education awards upon completion of one year’s successful service.

Nurses: Repayment assistance (not a discharge) is available through the Nursing Education Loan Repayment Program (NELRP) to registered nurses in exchange for service in eligible facilities located in areas experiencing a shortage of nurses.

Volunteers in Service to America (VISTA): Volunteer with private, non-profit groups whose mission is to eradicate hunger, homelessness, poverty and illiteracy.

Peace Corps: Volunteers that have outstanding Perkins Loans can receive a 15% cancellation on the debt owed for each year of their first two-year service term and a 20% loan cancellation for their third and fourth years of service. Participants can receive up to a 70% cancellation on Perkins loans.

Military Service: The Student Loan Repayment Program (SLRP). Under the Student Loan Repayment Program, when you enlist the Army will pay back up to $65,000 in qualified education loans (up to $20,000 for reservists), the Navy up to $65,000 and the Air Force up to $10,000.

Legal and medical studies: Studying medicine or law often equals racking up tens of thousands additional dollars of debt. There are law schools which provide loan forgiveness to those students who volunteer to serve in the public interest and/or work for non-profit Read more…