Thursday, November 17th, 2011
Buying a house is one of the biggest decisions that you will ever make. It is important to take this decision seriously. You need to take the time prepare yourself in every aspect in order to make your home a blessing, and not a negative experience. Here are the basic steps that you should hollow when it is time to buy a home.
Difficulty: Easy
Time Required: Several Months
Here’s How:
- First you should determine if you are ready to buy a home. Home ownership is a lot more expensive than renting. You are responsible for paying for all the repairs. You may also have added utility costs, such as garbage and water. In addition to that you will need to pay for taxes and insurance related to your home. These costs add up quickly, and if you are not financially prepared, you may end up in a very negative position. You should take the time to get out of debt and save up an emergency fund, before you purchase your first home. You should definitely get rid of all of your credit card debt first.
- Second you should begin to shop for a loan. You need to get preapproved before you shop for a home. This will help you to look within your price range. You should contact at least three people before you decide which loan to take. A mortgage broker will look at several different loan companies to find you the best rates. However, your small local bank or your credit union may have options that will save you money as well. Once you find a loan with the correct terms you can begin shopping.
- When it comes to your mortgage you may be surprised at the different loan types and payment options available to you. It can be baffling when you think about ARMS and PMI. Usually a fixed rate fifteen or twenty year loan is the best option. This can help you lock in a low rate. You may be considering creative financing to cover the down payment, but you should be careful when you make these choices. You want to build wealth with your home purchase. If you make the wrong choice than you may end up hurting yourself financially. (more…)
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Tuesday, September 6th, 2011
This jailbreak method was developed by a long time hacker who goes by the handle geohot. His method ( named linmera1n ) was useful in jailbreaking 4.1 and is still in play as the exploit is hardware based. The first (and only ) program out the door to incorporate the right hooks to jailbreak 4.2.1 is called RedsnOw.
the picture above show that ipad 2 can be excelently used as business especially at finance or investment business
It’s not being a long time that Apple had launched its next generation iPad 2, the brilliant iPhone Hacker Posixninja the member of the Chronic Dev team tweeted that they will start working on iPad 2 jailbreak running on iOS 4.3 once they get it. Here we provide you a way to jailbreak iPad 2, which is quite safe without any problem.
you can read the complete “how to jailbreak ipad 2″ on the original sources
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Monday, August 22nd, 2011
Meat, milk, or wool?
Sheep are multi-purpose animals, raised for their meat, milk, wool, hides, and skins. While they have been used to control unwanted vegetation for centuries, grazing as a fee-based service is a relatively new opportunity for sheep producers. Sheep are also a popular research model and some producers have developed businesses supplying animals or other products (e.g. blood) to bio-science.
Thus, one of the first and most important decisions a shepherd must make is to decide which aspect(s) of sheep production to focus on. While most sheep breeds are multi-purpose, most are best suited to either meat, milk, or wool production — seldom all three. Production practices tend to vary according to the purpose of the flock.
Meat Sheep
In the United States, most sheep and lambs are meat-type animals kept primarily for the production of lambs for meat or dual-purpose breeds kept for both meat and wool production. Meat production is also an important by-product of sheep dairying. (more…)
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Monday, August 22nd, 2011
How to limit inflation’s corrosive effect on your pocket. By Emma Simon
How do you inflation-proof your finances? Many people will be asking following confirmation last week that the cost of living is rocketing.
The Consumer Price Index, the Government’s official measure of inflation spiked to 3.3 per cent, the highest it has been for more than a decade.
In reality, many families are seeing prices rise at a far steeper rate – as this official figures does not include mortgage costs or council tax, both of which have risen over the past year.
It is estimated that the real cost of living for the average family in the UK has risen by 9.5 per cent over the past 12 months, with petrol costs rising by 22 per cent, heating bills going up by 19 per cent and grocery bills rising by 23 per cent over this period.
And this doesn’t look like just a temporary blip. Economic experts do not expect inflation to fall significantly this year. Commodity prices are expected to remain high which means more expensive fuel and food. And if inflation is not brought under control quickly this could force the Bank of England to increase interest rates pushing mortgage rates still higher.
So after a decade of low inflation and low interest rates how can you reposition your finances to adapt to these new circumstances? Inflation may once again become a fact of life, but there are steps you can take to reduce its corrosive effect on your pocket.
SAVINGS
Inflation is a silent thief, quietly reducing the value of your savings while no one is looking.
Even with relatively low inflation, the buying power of your cash savings is significantly reduced over 10 or more years.
With inflation running at 4.3 per cent your money is effectively halved in just 17 years.
Even if inflation falls to 3 per cent, £100,000 in the bank will have lost a quarter of its value a decade later.
To mitigate this effect, savers should make sure their money is in the best-paying account possible.
Currently there are a number of instant access accounts paying in excess of 6 per cent . But there are two products that guarantee that your savings will beat inflation, regardless of future rises.
National Savings & Investments offers index-linked certificates, which are three-year and five-year savings plans, paying 1 percentage point above the RPI. This gives a current pay rate of 5.3 per cent. As these are tax-free products, this equates to 8.83 per cent for higher-rate taxpayers and 6.63 per cent for basic-rate taxpayers.
Leeds building society offers a similar two-year bond and Isa. Both pay 2.5 percentage points plus RPI at the end of the financial year.
So if inflation stays at its current level, the interest rate will be 6.8 per cent.
INVESTMENTS
If you want to protect your savings against inflation over the long term, the equities have in the past been a good bet.
A spokesman for the Investment Management Association says: “This remains true today, whatever one’s views on the short term prospects for the market. A well-diversified portfolio of equity funds remains a good hedge against inflation.”
Look for shares that pay strong dividends, as this money, if reinvested, accounts for the lion’s share of total returns from equities so should help you outrun inflation. For those looking to minimise volatility, collective funds are the best bet. These are more diversified, reducing risk, and enable you to make regular savings rather than just deposit a lump sum. This can help smooth out the ups and downs of the stock market.
Equity income funds have long been a favourite of British investors. They aim to deliver a dividend stream up to 10 per cent higher than the FTSE average while also striving for capital growth. Some of the biggest names in fund management work in this sector, and over the past five years the best-performing funds have almost doubled investors’ money, according to Morningstar, the fund analyst. It may also be worth looking at the less popular investment trust sector.
Many of these trusts have been delivering a decent income stream for years, again helping investors protect against inflation. The City of London trust, for example, has delivered a growing dividend stream for 41 years.
“Investment trusts can hold back dividends in strong years to ensure they continue to be paid in leaner years,” says Annabel Brodie-Smith of the Association of Investment Companies. Most trusts in the UK or Global Growth & Income sectors pay strong dividends, she says.
There is another asset that has traditionally proved an excellent hedge against inflation: gold. Over five years the price has shot up by a staggering 344 per cent – rising by a fifth in the past year alone.
Of course, there is a danger of buying at the top of the market, but experts say prices are unlikely to fall until both inflation and the credit crisis are under control.
PENSIONS
Inflation can be particularly damaging for pensioners, who generally have fixed incomes. And pensioners have been hit especially hard by the price rises, as heating and food costs account for a far greater proportion of their spending.
Those approaching retirement who worry that inflation will be a big problem over the next decade may want to consider an inflation-linked annuity, so your pension keeps pace with prices. But these annuities pay a far lower starting income. At current prices it would take a 65-year-old man 14 years for the inflation-linked annuity to overtake the income provided by a standard, “level” annuity.
“Annuity rates have been rising over the past year, but you have to ask yourself why,” says Billy Burrows of William Burrows Annuities.
“Much of this has been because inflation is starting to stir again, so in real terms those retiring might not be a lot better off.”
He says many of his clients – who include bankers, stockbrokers and other professionals – have been shunning inflation-linked annuities.
“The costs are simply too high,” he says. So what can you do to protect your retirement income?
“Those with a large enough pension pot should look at spreading their risk and investing in a range of different options,” says Burrows.
This could include income drawdown plans or with-profits annuities, which give some exposure to stock market-linked returns. However, this is an extremely complex area – not least because any decision you make you have to stick with for life – so always seek expert advice.
The only other hope is an increased state pension. This would reverse a trend that has seen an additional 300,000 pensioners fall into poverty in the past year.
“The Government should increase the state pension to at least £124 a week and reinstate the link to earnings as soon as possible,” says Age Concern, the charity. The link is due to be restored by 2012. But with Gordon Brown urging restraint on wages, the change seems unlikely to be brought forward.
sources
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Friday, August 12th, 2011
Readers of my articles will recall that I have warned as far back as December 2006, that the global banks will collapse when the Financial Tsunami hits the global economy in 2007. And as they say, the rest is history.
Quantitative Easing (QE I) spearheaded by the Chairman of Federal Reserve, Ben Bernanke delayed the inevitable demise of the fiat shadow money banking system slightly over 18 months.
That is why in November of 2009, I was so confident to warn my readers that by the end of the first quarter of 2010 at the earliest or by the second quarter of 2010 at the latest, the global economy will go into a tailspin. The recent alarm that the US economy has slowed down and in the words of Bernanke “the recent pace of growth is less vigorous than we expected” has all but vindicated my analysis. He warned that the outlook is uncertain and the economy “remains vulnerable to unexpected developments”.
Obviously, Bernanke’s words do not reveal the full extent of the fear that has gripped central bankers and the financial elites that assembled at the annual gathering at Jackson Hole, Wyoming. But, you can take it from me that they are very afraid.
Why?
Let me be plain and blunt. The “unexpected developments” Bernanke referred to is the collapse of the global banks. This is FED speak and to those in the loop, this is the dire warning.
So many renowned economists have misdiagnosed the objective and consequences of quantitative easing. Central bankers’ scribes and the global mass media hoodwinked the people by saying that QE will enable the banks to lend monies to cash-starved companies and jump start the economy. The low interest rate regime would encourage all and sundry to borrow, consume and invest. (more…)
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Thursday, August 4th, 2011
The dinar is the official currency of several countries. The history of the dinar dates to the gold dinar, an early Islamic coin corresponding to the Byzantine denarius auri. The gold dinar has been revived as a bullion gold coin called the Islamic gold dinar. in another word dinar is a 22 carat gold formed in coin and weighted about 4.25 gram.
the picture if dinar and dirham
Countries and regions which have previously used the dinar
A mancus or gold dinar of the English king Offa of Mercia (757–796), a copy of the dinars of the Abbasid Caliphate (774). It combines the Latin legend OFFA REX with Arabic legends. (British Museum)
The 8th century English king Offa of Mercia minted copies of Abbasid dinars struck in 774 by Caliph Al-Mansur with “Offa Rex” centered on the reverse.[2][3] The moneyer visibly had no understanding of Arabic as the Arabic text contains many errors. Such coins may have been produced in order to trade with Islamic Spain.
- Abu Dhabi: the Abu Dhabi dinar or Bahraini dinar which were used from 1966 to 1973
- Bosnia and Herzegovina: the Bosnia and Herzegovina dinar
- Croatia: the Croatian dinar
- Iran: the Iranian rial was divided into 100 dinars
- Republic of Serbian Krajina: the Krajina dinar
- Republika Srpska: the Republika Srpska dinar
- South Yemen: the South Yemeni dinar
- Sudan: the Sudanese dinar
- Yugoslavia: the Yugoslav dinar
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Wednesday, August 3rd, 2011
Many people desire to invest in gold but they don’t understand how to maximize that investment. They see the price of this precious metal and feel that they can’t afford to buy enough for it to matter. This is a sad truth that many take to heart. The true reality of the situation is that gold is very affordable if people know how to acquire it in an economical manner.
There are several methods for saving money when you buy gold. One of the most prevalent methods is to first understand how to tell real gold from fake gold and then purchase it from people that simply want to make some fast cash. This can be done by opening a pawnshop, a flea market jewelry stand or going to a pawnshop or jewelry shop that does not melt down their own gold and asking if they have any damaged gold merchandise they’d be willing to sell for a lower price.
Cheap gold during an economic recession is almost unheard of but it can be found. The prospective buyer simply needs to look harder and make themselves available. The truth is that many individuals do not know how much their gold is worth and simply desire to sell it to make some quick money. The savvy trader in this exchange can save anywhere from thirty to eighty percent off the true metal value of the gold in question.
Another method for saving money on gold involves the trading of stock options. While the futures market is a dangerous place to be in the purchase of stock options have far fewer negative drawbacks. With stock options a few thousand dollars can control tens of thousands of dollars worth of gold. To invest in gold with this method has no risk beyond the possible loss of the investors money. While this is not a good thing the truth is that it is much better than purchasing it via futures and risking the possibility of owing a brokerage firm more money after losing it all from a bad prospect.
No matter which version of acquiring cheap gold is used there is one universal truth. Gold should be bought when the price is low and sold when it is high. The price of gold does not fluctuate rapidly. The price change is a gradual increase or decrease over the course of months, sometimes years. It is a direct reflection of the economic stability of the times. Low priced gold, such as the price tag a decade ago that waffled at around two to three hundred dollars, is a trend of solid and strong economies where plenty of people have jobs. High priced gold such as it is today is a sign of weak economies and troubled minds.
The best time to buy gold, such as gold coins, is when the economy is strong and people have sold most of their investment off. The methods mentioned above, particularly the purchase of the solid metal for cheap price, is one of the best methods available in prosperous times because whenever the economy hits a repression again the price of gold goes up and the long term investment pays off.
Gold coins are always a good buy even though some of them are not true bullion. The value of such coins tends to increase beyond normal gold price over the course of time. Often they can be sold for much more than their actual metallic value is currently worth. Buying gold coins is always a cheap method due to the fact that the governments that mint them tend to set a hard price on the end product when they are first purchased. This means they are often far less expensive when buying them directly from the mint.
The savvy investor that wants to own physical gold finds many such opportunities at a low cost if they know where to look. Flea markets, wholesalers, jewelry stores that wish to be rid of damaged pieces at cost, and local shops are all locations to find it on the cheap. As mentioned stock options are also a solid method of trading in this market. Either way the deals are there. The only one stopping the smart investor is the investor.
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Thursday, July 21st, 2011
A gold coins or bullions investment is great if you want to protect yourself from drops in the stock market, currency problems, inflation and deflation. Here are some great tips for the beginner looking to buy gold as an investment.
Gold investment advice tip 1 – Go for gold coins or bullions.
If you are beginner to gold as an investment, start out by investing in gold coins or gold bullions. These are simple to understand, simple to acquire and offer the least risk. Shortly after purchasing gold coins or bars, you will receive them via a delivery company. Gold coins are light, and easy to transport and store. If buying large quantities then gold bars are a little cheaper, but more difficult to deal with as they are heavier and bulkier.
Gold investment advice tip 2 – Stick to the metal.
As a beginner, avoid gold futures. 9 out of 10 people who try this come out as losers. Gold mining shares are less complicated, but still risky, as they have nothing to do with the price of gold itself. If gold goes up in price, this does not mean that gold mining shares will appreciate too. Leave these to the experienced investor.
Gold as an invesment tip 3 – Don’t hand around.
Don’t wait to buy gold. Of-course, don’t buy if prices are particularly high, due to sudden a surge in interest in gold (which often occurs when stock markets fall suddenly, as they did in 2008). Buy gold when you need it. It is not a stock or real estate investment, and timing is not vital. Gold as an investment diversifies your overall wealth, and is not affected in a negative way by economic dangers.
Gold as an invesment tip 4 – Get your portfolio well balanced.
Experts recommend that the middle of the road investor purchases gold so that it is at 10 to 30 percent of the portfolio. Exactly where you go between those figures depends on the current financial and economic situation.
Tip 5 – Don’t save on amateurs.
A professional gold firm is essential for the beginner looking to shorten the learning curve. A good firm will steer you away from the possible problems that you may face, and ultimately save you money. A reputable gold broker will help you select the right gold product mix, and make sure you are paying the right prices.
Tip 6 – Stay away from antiques.
Many investors buy a gold investment that has little to do with their objectives. Safe-haven investors comprise about 80% of the physical gold market. Instead of just adding coins to their portfolio mix, many of these investors end up with a leveraged gold position or a few rare and very expensive gold coins. These are not what is required for safe-haven investing, and most investors should avoid them.
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Tuesday, July 19th, 2011
As has been discussed, lets start an investment property thread. As Fatwallet Finance readers have likely seen , I am a BIG FAN of buying and owning investment property. However, unlike with the 5.25% fixed rate Netbank loan (where almost everyone agrees that is a great deal), NOT everyone will agree that owning investment property is such a great thing.
There are legitimate pros and cons, so its not clear cut that owning investment property is right for everyone. Location, your financial situation, and many other factors determine whether it is a good strategy.
Some Reasons TO BUY investment property:
1. Its how many of the most wealthy people made their money, Almost everyone who is a multi-millionaire my family knows is not from the Internet boom, but from buying real estate and holding onto it.
2. It can provide a steady source of income in later years after mortgages are paid off and you stop working (especially if you havent set up a retirement account)
3. A GREAT time to consider becoming a landlord is when you are considering selling your current home to move to another one. As long as you can get enough rental income to pay the existing mortgage on it, Why pay the realtor’s commission, and other costs, when you likely now OWN a great piece of rental property!
4. Rents tend to go up each year, while the mortgage on the investment property remains fixed…thus, more CASH IN YOUR POCKET as the years go by.
5. You can claim a HUGE tax deduction for rental property! (I am not a tax expert so I will let others better qualified elaborate on that one)
6. It plain feels good to own a lot of property. Its the AMERICAN DREAM.
7. I can go on and on…
Some Reasons NOT TO BUY investment property.
1. It can be a headache dealing with problem tenants and problems in the house.
2. There may be some months you will take a loss for repairs, finding tenants, etc, and you should be in a position to be able to weather these losses.
3. Well, thats about the only 2 main problems I can think of.
TIPS AND TRICKS:
If starting out, you want to find property where you will break even or possibly earn positive cash flow, meaning that the rent you will receive will exceed the mortgage payment, taxes and insurance. This way, owning the investment property will not be a current burden on your budget, as it “pays for itself” or even makes you a little money each month.
CAUTION: If you tell you realtor you are looking for properties that will get you the most positive cash flow, they may show you “ghetto” properties” that can be more trouble than its worth. Do your own research on what rents are in the area, and how much the mortgage, texes, etc. will cost.
As with all property, LOCATION LOCATION LOCATION. And what “kind of landlord” do you want to be?
SLUMLORD: Some of the most money to be made is in the ghetto, in areas where you can buy houses and apartments for $20k and under and rent them out to people on govt. subsidies for 3-400/month. But the problems associated with that come as well. Most people who are successful doing this own a number of these properties (they make money by volume), and also have a network of people who collect rent, harass and intimidate tenants, etc. And theres that stigma of being a slumlord.
“NON-SLUM” APARTMENTS/DUPLEXES/CONDOS: again, there is a lot of money to be made here, the downside is you will have lots of tenants (and more tenants usually means more headaches), and the people who reside in these places are not as stable
SINGLE FAMILY HOUSES: I personally prefer to rent single family houses in nice areas. The tenants you will find for these residences are more stable, and nice houses appreciate more than ghetto houses or duplexes….Fewer tenants= fewer potential issues.
AVOIDING problems: I have chosen to have my properties managed by a professional management company. The quality of these firms vary greatly by area, a good idea is to talk to realtors in the area, as many own managed rental property themselves, and may get a “bonus” or discount on their own management for referring new business. They usually handle all dealings with tenants, from finding and screening tenants to collecting rent to maintenance, etc. They typically charge between 6%-10% of the monthly rent. They are especially useful if the rental property is not in your area, as it may be more difficult to manage rentals in other areas.
I also choose to maintain a HOME WARRANTY on the properties. A home warranty covers the electrical, plumbing, and appliances in the home for about $30-40 month. There is usually a service call fee of $35-50. This way, I do not have to worry about there being a $1000 repair any given month, and as soon as a problem develops, they can call a 1-800 # 24 hours a day and someone will be right out to fix it. This eliminates anyone calling me and bothering me.
Of course, since there is not one clear cut “best” way to own rentals, there will be people who will disagree with my strategy, and I encourage anyone else to share their tips and strategies on their investment property!
sources : http://www.fatwallet.com/forums/finance/59627/
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Wednesday, July 6th, 2011
A mutual fund is a company that pools investors’ money to make multiple types of investments, known as the portfolio. Stocks, bonds, and money market funds are all examples of the types of investments that may make up a mutual fund.
The mutual fund is managed by a professional investment manager who buys and sells securities for the most effective growth of the fund. As a mutual fund investor, you become a “shareholder” of the mutual fund company. When there are profits you will earn dividends. When there are losses, your shares will decrease in value. (more…)
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