You should be aware that we have been warned by some very credible individuals. Charlie Munger, who was Warren Buffet’s longtime business partner, just came out and declared that “IT’S OVER”. Our house of cards, the U.S. economy, that has been built upon a shaky economy is now ready to collapse and fall all around us. Wow – talk about depressing.
I guess we can just go on with our lives and go down with the ship like a bunch of rats on a sinking ship or….. Read the rest of this entry »
If you are in the network marketing profession, how does one ‘hedge your bets’ on the future while our own U.S. economy is struggling and having such a direct affect on those of us who are living the ….dream?
As one network marketing leader who currently lives in Beijing with his wife and son, said, “Fortunes are going to be made from international expansion in the coming years,” says Shawn, “but many Americans don’t think about it. The truth is, anyone can Read the rest of this entry »
Is it possible to know how long an investment will take before it DOUBLES your money? If your investment is set at a compounding interest rate the answer is YES.
Most people may have learned this in school but may have forgotten the simple formula to calculate how long it will take to double your investment.
In finance there is a term called the Rule of 72. This is a method to estimate your investment’s doubling time. There is also the Rule of 69 which is actually a more accurate number to use to calculate continuous compounding interest, but Read the rest of this entry »
In the next year—2010—the IRS plans to look closely at small business owners and the self-employed. Here’s how to be ready if an auditor comes knocking at your door. Now, don’t panic. Don’t get mad. You’re honest, right? Well here’s the secret word on how to deal with the IRS. Preparation. Preparation means substantiation. If you have your receipts and checks in order, you have nothing to fear. Here’s what to do:
Meals and Entertainment. A meal or tickets to entertain clients that costs $75 or more must be backed up with a piece of paper. Any expense under $75 can be substantiated with an entry in your day planner or diary. In both cases, you need the date, the restaurant or entertainment facility name, the address, the amount paid, the person or people Read the rest of this entry »
Let’s say you own a small business. You think you’re successful. You’re a pillar of your community. Or you’re self-employed and doing well. Or you just can’t resist putting money into overseas investment vehicles. The folks at the Internal Revenue Service want to get to know you much better. Not because they’re mean, but because they want your money. The largest reason is that some of you underreport your income. And according to the agency’s just released 2010 game plan, they’re coming to get you!
There is a gap between what taxpayers should pay every April 15th and what they actually pay. It comes to about $345 billion a year, Chris Wagner, the commissioner of the IRS’ Small Business and Self-Employed Operating Division, told a recent conference. About 44% comes from small-business underreporting, he added.
His division, which is responsible foe 41 million self employed workers and 9 million small businesses with assets of less than $10 million, is investing heavily in personnel. By the end of 2009, the division expects to have hired 4,000 more Read the rest of this entry »
While many Americans are living on tight budgets because of lost jobs or fear of losing a job, companies face a different dilemma: They’re sitting on growing piles of cash. Faced last year with the doomsday scenario of the next Great Depression, companies slashed jobs and cut expenses. The depression never came, and money continued to roll in, albeit at lower levels. That’s left companies overflowing with cash—at least a half-trillion dollars more than they had at the end of 2008 and probably much more.
CEOs, of course, gain nothing by saving. They need to put money to work or pay it out to shareholders. So unless the economy scares them again, expect companies to start unleashing their moolah. In other words: Brace yourself for a Read the rest of this entry »
There’s a simple reason you shouldn’t get too excited about the “recovery signs” of an economic turn around in the housing market. Many of the prime mortgages are becoming sub-prime as a new wave of foreclosures begins to hit. Mainstream homeowners — those previously “safe” borrowers with sound credit who have conservative fixed rate mortgages are getting into trouble at an alarming rate. In the third quarter, the percentage of these borrowers who were behind on their mortgages or in foreclosure had doubled from a year earlier, to nearly 6%. For the first time in the housing crisis, these homeowners accounted for the largest share of new foreclosures.
Job losses are a major reason once-safe borrowers are falling into trouble. With unemployment likely to rise, the problem will only get worse. So the core challenge at the heart of our economic crunch — a poor housing market that infects banks and the whole credit system — is not going away soon. That’s bad news for the stock market and the Read the rest of this entry »
Don’t believe anyone who tells you that credit scores are irrelevant to your financial health. But you also shouldn’t believe that credit scores are any reliable indication of your financial health. You can be a multimillionaire with no credit score or someone with excellent scores who’s on the brink of a financial meltdown. Indeed, economists currently are worried about a steep rise in foreclosures among “prime” customers, those who had good credit when they got their mortgages but who took on too much debt or lost their jobs in the recession. The confusion over what credit scores are, and what they do, leads to some unfortunate attitudes:
· Some people dismiss credit scores entirely, either believing scores have no effect on their finances or out of a general disdain for credit and debt.
· Others understand that scores are important but believe that if they handle their money well, their scores automatically will be good. Read the rest of this entry »
Finding out the exact formula for improving your credit score has always been a little like pulling teeth. Most of us understand that the big culprits—bankruptcy, foreclosures, repossessions—will have a tremendous negative effect on our credit score. However, there are a few day to day dangers that can eventually make the difference between someone getting that lower interest rate or paying thousands of dollars more over the life of a loan.
Maxing out a credit card
Using 100% of your limit on any credit card puts you at risk of over-limit fees. It also takes a bite out of your credit score. A person with a 680 score might lose 10 to 30 points from this one action, while a 780 Read the rest of this entry »
