I called one of my mentors recently about a new idea I was exploring to promote my business. It concerned promoting one day seminars which would require an investment of $50,000 each. I explained that although I was new at this aspect of the business, I was working with someone who had done similar.
His suggestion was “Drew, you’ve got to plan to do at least three or four of those events before you work out the kinks. Be prepared to lose money on the first few.” In other words don’t do the event if its overall success depends on you getting it right the first time. No one gets anything 100% right the first time through.
Here’s what happened. The first event lost over $20,000. We made some changes to the format and the second event broke even. It was only after the third event that we got the system to the point where it made money.
If I had gone with the “I’ll give it one try” approach, we would have failed. Planning ahead to gain the benefit of our learning experiences lead to our ultimate success.
I just finished a speaking engagement in Vancouver. During one of the breaks, two ladies approached me and asked my opinion about the current state of their business. They had taken several real estate courses, read a number of books, and attended four different “wealth building” seminars; yet they still hadn’t purchased their first property. In fact, they hadn’t even made their first offer. Sound familiar? It is a very common problem.
They took me up on my invitation to discuss their situation over a cup of coffee. For the first five or ten minutes they expressed their frustration about not getting started and about making a significant investment yet not seeing any return. They shared how their personal situation was getting in the way of their business dreams. In about ten minutes the cause of their problem became obvious:
They were trying to conjure up and solve every conceivable problem they might face ahead of time instead of taking their first step forward.
Now, I’m a believer in planning and problem avoidance techniques. Yet, may people get bogged down in the “what-ifs” and never get into the game. In just a few more minutes together we outlined a three step plan to get them “unstuck” and on their way to actual real estate investing.
Never start something if you can’t afford to withstand a few learning experiences. You can’t plan ahead for every conceivable twist of the road, and throwing more money into more courses is not the same as putting the pedal the metal and getting out there on the road. Failures are there to teach us something, and to make our ultimate success that much sweeter.
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A mortgage is the pledging of a property to a lender as a security for a mortgage loan for 7 percent. Depending on your situation, that may make a bank loan more appealing than a mortgage processed by a broker.
Although most mortgage experts say that rates 5 percent are pretty much the same wherever you go, give or take this tiny 3 percentage. Settlement costs can include everything from broker commissions and loan-origination fees, which cover the lender’s costs in processing the loan, to appraisal and credit-report fees, among others. Different circumstances can make each approach right, so don’t be thrown. And of course, each loan and each borrower are different. So how do you find a lender or broker you can trust? In most jurisdictions mortgages are strongly associated with loans 3 percent secured on real estate rather than other property and in some cases only land may be mortgaged. It is a transfer of an interest in land, from the owner to the mortgage lender, on the condition that this interest will be returned to the owner of the real estate when the terms of the mortgage have been satisfied or performed.
See which lenders are charging fees 4 percent and for how much. In other words, the mortgage is a security for the loan that the lender makes to the borrower. Start with credibility. It’s not easy to know if the prices quoted by lenders are reliable. Brokers work with many mortgage bankers and, as a result, can sometimes find slightly more competitive rates 7 percent perhaps lower but dealing directly with a mortgage banker can move a loan along more quickly. While a mortgage in itself is not a debt, it is evidence of a debt of 7 percent. Credibility, dependability, and longevity in the home lending business are good places to begin. Some will quote you precise, competitive rates 7 percent. Arranging a mortgage is seen as the standard method by which individuals and businesses can purchase residential and commercial real estate without the need to pay the full value immediately. Different lenders charge different fees. Both banks and brokers have their strengths and weaknesses. See mortgage loan for residential mortgage lending, and commercial mortgage for lending against commercial property. Many of these fees are fixed but some can be negotiated.
Here is a note of the issues that a director of an insolvent company or potentially insolvent company has to take into account. The relevant legislation is primarily contained in the Insolvency Act 1986 (the “Act”).
Definition of Insolvency - Section 123 of the Act states that a company is “unable to pay its debts” (i.e. it is insolvent) when the company is unable to meet its debts as and when they fall due. This is commonly referred to as a “Cash Flow Insolvency”; or
the amount of the company’s liabilities (including its actual and contingent liabilities) exceeds the value of its assets on a balance sheet basis. This is commonly referred to as a “Balance Sheet Insolvency”.
Where a company is or is about to become insolvent its directors must act in the best interests of the company’s creditors (as opposed to the company’s shareholders) and there are certain corporate and personal consequences for those directors if they fail to do so.
The Corporate Consequences of Insolvency
Preference claim - A preference is a transaction which has the effect of placing a creditor in a better position if the company goes into liquidation than if the transaction had not occurred. If the transaction occurs within six months of the company’s liquidation, the liquidator can apply to have it set aside but he must prove that the directors in entering into the transaction were influenced by a desire to produce the preferential effect. In the case of a transaction with a creditor who is a connected person (for example any of the company’s shareholders, subsidiaries or directors) the period of six months is extended to two years and it is also presumed (unless the contrary can be proved) that there was a desire to prefer the creditor. A classic example of a preference is where the company repays its inter-company debts or director’s loan accounts ahead of its other creditors shortly before its liquidation. However paying a creditor who has refused to make further supplies may not be a preference if the primary purpose of the payment was to secure supplies which could not be obtained elsewhere.
Transactions at an undervalue
A transaction at an undervalue occurs when a company disposes of its assets for significantly less than they are worth. Once again, a liquidator can apply to have the transaction set aside if it occurred within two years of the company’s liquidation. A classic example of a transaction at undervalue is where the company transfers its business and/or assets to a creditor, director or another party for a nominal amount. If you are considering a transfer to say a current client or any other third party it is important to ensure market value is paid and/or the transfer insured against set aside.
Personal Consequences of Insolvent Liquidation
Wrongful Trading - Section 214 of the Act states that, if the directors (including any shadow directors - see below) of a company allow it to continue trading when they knew or ought to have known that there was “no reasonable prospect” of the company avoiding insolvent liquidation (see 1 above), they can be held personally liable for the debts incurred. A shadow director is a person, or entity, who has effective control over the company’s board (i.e. the company’s directors are accustomed to act in accordance with that person’s instructions). The only potential defence available to the directors is to show that they took every possible step to minimise the potential loss to the company’s creditors. It is not sufficient to show, for example, that the directors believed that the company’s financial situation might improve because of market forces that are beyond their control [MC Bacon Limited [1990]].
The directors may be able to justify trading for a short period of time if they are:
Trying to sell the whole or part of the company’s business and/or assets as a going concern; or
awaiting a decision regarding further funding (for example by the shareholders or by a venture capitalist).
In these circumstances the directors should: investigate whether the company’s overheads and operating costs can be reduced; only pay the creditors that are crucial to the preservation of the business and assets (e.g. essential supplies, employees salaries, and judgment creditors who are about to or have taken “key” assets);
postpone all other payments; not incur any new liabilities (except for immediate payment in cash - see below); and
document their decisions (usually in suitably detailed minutes). Please note that such a minute will not be an effective defence to liability if there is no reasonable prospect of avoiding insolvent liquidation and steps are not taken to minimise losses to creditors. The director’s goal should be to ensure that the company’s liabilities do not increase. One way to do this is to “rule off” the account and pay for all further supplies and services on a “cash on delivery basis”.
Fraudulent trading
Any director or shadow director who knowingly allows a company to continue trading with the intent to defraud its creditors or any other person can be held personally liable to pay compensation. Further, if fraudulent trading is established the director and/or shadow director will also be guilty of a criminal offence. It is unusual for a liquidator to pursue a fraudulent trading claim as the onus is on him to show that the director had the requisite fraudulent intent.
Disqualification
If, following liquidation, administration or administrative receivership, the DTI is able to demonstrate that the conduct of a director (including a shadow or de facto director i.e. a person who acts as a director without having been properly appointed) makes him unfit to be concerned in the management of a company (if, for example, a preference, a transaction at an undervalue and/or wrongful or fraudulent trading has occurred), then the director can be disqualified for a minimum period of two years up to a maximum of fifteen years. The disqualification will mean that the director will not be able to be involved in the formation, promotion or management of any company in the United Kingdom during the disqualification period.
A director also faces disqualification if:
He breaches any fiduciary or other duty he owes to the company (this may include a situation where there is an express or implied obligation to safeguard client monies such as in a principal - agent relationship); and/or
he fails to comply with any of the duties imposed by the Companies Acts (for example the obligation to maintain proper books and records).
Options
Where the directors believe that there is a serious risk that the company may not be able to avoid going into insolvent liquidation the directors should consider seeking the advice of an independent licensed insolvency practitioner (the “IP”). Most accounting firms have IP partners. The IP would review the company’s financial position and consider with the directors the options available to the company. These options include:
1. Continuing trading under the guidance of the IP;
2. Requesting further funds from the company’s shareholders;
3. Obtaining additional funds from a venture capitalist factoring or trade asset based finance company;
4. A sale of the company’s business and assets as a going concern outside any formal insolvency procedure;
5. Administration, which is a court driven procedure which stops the creditors or any other party from taking adverse action against the company while the IP considers the way forward. This process is similar to Chapter 11 in the United States ;
6. A company voluntary arrangement whereby the company agrees a payment schedule or some other proposal with its creditors;
7. Making a request for the appointment of an administrative receiver if the company has granted a fixed and floating charge (I am unaware of the funding arrangements of the Company);
8. A creditors voluntary liquidation whereby the company convenes a meeting of its creditors to appoint a liquidator; or compulsory liquidation whereby the company is wound up by the court following the presentation of a petition by its directors, shareholders or any creditor who has an undisputed debt for more than £750.
Conclusion
Though incorporation can shield shareholders from liabilities, the directors (who are often the shareholders as well) face a series of challenges in the event of financial difficulties that can, if advice is not sought early, result in personal liability.
In 2002, the average annual cost for a public university was $9,338. It is estimated that by 2017, the average annual cost will be $19,413. And that’s just for tuition and credit fees. Let’s not forget about room and board, books, food, clothes and extra activities.
With those figures it mind, it would be wise to start planning for your child’s education today.
You already know about loans and scholarships but those aren’t the only options. You don’t have to go into debt! There are several choices to help you prepare for your child’s future.
529 Plans
A 529 or qualified tuition program is a (federal) tax-free investment plan that allows families to save for their childrens college educations.
Each state has its own 529 plan and you do not have to be a resident of a particular state to invest in that state’s plan.
The 2 types of plans include:
Prepaid Tuition Plans - These plans allow you to pay for your child’s in-state tuition at today’s prices. These accounts are low-risk and they are guaranteed to match or exceed in-state inflation. However, these plans are often limited to state residents and the cost may not be covered if your child decides to attend an in-state private university.
Education Savings Accounts- Or college savings plans are investment accounts whose value fluctuates with the market. They can be used at eligible public and private universities- there are no residency requirements. Additionally, some plans have high contribution limits per beneficiary and you can contribute up to $11,000 per year without paying a gift tax.
Savings Accounts
Even if your child only has a few years until it’s time to go to college, it’s never too late to begin saving. Determine where you can cut costs and put that money into a high-interest savings account.
For example, instead of buying 2 video games as a birthday present, buy one and put the extra money into a savings account. What about Christmas and Hanukkah? Sure, it’s fun to open presents but I guarantee that the novelty of those gifts will soon be forgotten and later on your child will thank you for making sure that their education was financed in a stress-free way.
Here is a tip: look for a FDIC insured bank that is based online. These banks offer higher interest rates because they don’t have the operating overhead of having branches. The work the same way as a regular bank except that there is no physical branch. You deposit money through your current checking account and receive monthly statements either via email or through the mail.
DJ Nelson wants to help you jumpstart your child’s future. Open a savings account today. Visit www.KidsSavingsAccounts.com to open a high-interest, no- minimum savings account in under 5 minutes.
It used to be that banks were service providers who were open late and made their money by investing the money you deposited with them. For depositing money with them, they would pay you a little bit of interest.
The times, they are a-changing!
How times have changed! Nowadays, you will be lucky to find a bank that’s open when it’s convenient for you. Nowadays, you will be lucky to find a bank that doesn’t charge high service fees which are always much more than the interest you earn.
So what can you do, since banks are a necessary evil?
New and smaller banks are emerging to fill the gap where larger banks have been failing consumers for years. In response to that, larger banks are beginning to move back into a service-oriented model of doing business by expanding their hours.
Before selecting a bank, be sure to shop around. Here are some ways to save money on your banking:
1. Get your banking online rather than at the branch. The fee is are much lower!
2. Stop writing checks. Most banks charge a fee for every techie right. And most companies, like the ones you pay monthly bills, well except other methods of payment, such as online or direct withdrawal.
3. Some banks give you a bonus or a credit based on holding a minimum balance or by using their credit card for purchases or by using three or more of their services (mortgage, line of credit, and bank account, for example).
Small banks are still okay
The bigger banks may have been around longer than the smaller banks, but banks still have to comply with federal banking regulations, which mean banking at a smaller, service-oriented branch can be just as safe. And they may even be guaranteed by the federal government if they go bankrupt. If you’re deciding to switch from a larger bank to smaller bank, check with them on any federal guarantees they have.
It’s your money. Don’t let the banks take it from you! Fight back by actively looking for a bank that has lower fees and better service. Or, if you don’t want to switch, you can manage you fees by examining the services they provide and altering how you pay for things.
Jeff Lakie is the founder of Banking Resources a website providing information on Banking
Forex (Foreign Exchange) simply means the buying of one currency and selling another at the same time. In other words, the currency of one country is exchanged for those of another. The currencies of the world are on a floating exchange rate, and are always traded in pairs Euro/Dollar, Dollar/Yen, etc. In excess of 85 percent of all daily transactions involve trading of the major currencies.
Four major currency pairs are usually used for investment purposes. They are: Euro against US dollar, US dollar against Japanese yen, British pound against US dollar, and US dollar against Swiss franc. The following notation is used for these currency pairs: EUR/USD, USD/JPY, GBP/USD, and USD/CHF. You may consider them as “blue chips” of the FOREX market. No dividends are paid on currencies. The investment profits come from well known “buy low - sell high”.
If you think one currency will appreciate against another, you may exchange that second currency for the first one and stay in it. In case everything goes as planned, some time later you may make the opposite deal - exchange this first currency back for that other - and collect profits.
Transactions on the FOREX market are fulfilled by dealers at major banks or FOREX brokerage companies. FOREX is the world wide market, so when you are sleeping in the North America some dealers in Europe are trading currencies with their Japanese counterparties. Therefore the FOREX market is active 24 hours a day and dealers at major institutions are working in three shifts. Clients may place take-profit and stop-loss orders with brokers for overnight execution.
Price movements on the FOREX market are very smooth and without gaps that you face almost every morning on the stock market. The daily turnover on the FOREX market is about $1.2 trillion, so investor can enter and exit position without problems. The fact is that the FOREX market never stops, even on the day of September-11, 2001 you could obtain two-side quotes on currencies.
The currency foreign exchange (http://www.123forex.blogspot.com) market is the largest and oldest financial market in the world. It is also called the foreign exchange market, or “FOREX” or “FX” market for short. It is the biggest and most liquid market in the world, and it is traded mainly through the 24 hour-a-day inter-bank currency market - the primary market for currencies. The forex market is a cash (or “spot”) inter-bank market. By comparison, the currency futures market is only one per cent as big.
Unlike the futures and stock markets, trading of currencies is not centralized on an exchange. Forex literally follows the sun around the world. Trading moves from major banking centers of the U.S. to Australia and New Zealand, to the Far East, to Europe and finally back to the U.S.
In the past, the forex inter-bank market was not available to small speculators due to the large minimum transaction sizes and often-stringent financial requirements. Banks, major currency dealers and the occasional huge speculator used to be the principal dealers. Only they were able to take advantage of the currency market’s fantastic liquidity and strong trending nature of many of the world’s primary currency exchange rates.
Today, foreign exchange market maker brokers such as FX Solutions are able to break down the larger sized inter-bank units, and offer small traders the opportunity to buy or sell any number of these smaller units (lots).
These brokers give virtually any size trader, including individual speculators or smaller companies, the option to trade the same rates and price movements as the large players who once dominated the market. Market makers quote buying and selling rates for currencies, and they profit on the difference between their buying and selling rates
Why Trading FOREX?
The cash/spot FOREX markets possess certain unique attributes that offer unmatched potential for profitable trading in any market condition or any stage of the business cycle:
A 24-hour market: A trader may take advantage of all profitable market conditions at any time; no waiting for the ‘opening bell’.
Highest liquidity: The FOREX market with an average trading volume of over $1.5 trillion per day is the most liquid market in the world. That means that a trader can enter or exit the market at will in almost any market condition minimal execution barriers or risk and no daily trading limit.
High leverage: A leverage ratio of up to 400 is typical compared to a leverage ratio of 2 (50% margin requirement) in equity markets. Of course, this makes trading in the cash/spot forex market a double-edged sword the high leverage makes the risk of the down side loss much greater in the same way that it makes the profit potential on the upside much more attractive.
Low transaction cost: The retail transaction cost (the bid/ask spread) is typically less than 0.1% (10 pips or points) under normal market conditions. At larger dealers, the spread could be less than 5 pips, and may widen considerably in fast moving markets.
Always a bull market: A trade in the FOREX market involves selling or buying one currency against another. Thus, a bull market or a bear market for a currency is defined in terms of the outlook for its relative value against other currencies. If the outlook is positive, we have a bull market in which a trader profits by buying the currency against other currencies. Conversely, if the outlook is pessimistic, we have a bull market for other currencies and a trader profits by selling the currency against other currencies. In either case, there is always a bull market trading opportunity for a trader.
Inter-bank market: The backbone of the FOREX market consists of a global network of dealers (mainly major commercial banks) that communicate and trade with one another and with their clients through electronic networks and telephones. There are no organized exchanges to serve as a central location to facilitate transactions the way the New York Stock Exchange serves the equity markets. The FOREX market operates in a manner similar to the way the NASDAQ market in the United States operates, and thus it is also referred to as an ‘over the counter’ or OTC market.
No one can corner the market: The FOREX market is so vast and has so many participants that no single entity, even a central bank, can control the market price for an extended period of time. Even interventions by mighty central banks are becoming increasingly ineffectual and short-lived, and thus central banks are becoming less and less inclined to intervene to manipulate market prices.
Unregulated: The FOREX market is generally regarded as an unregulated market although the operations of major dealers, such as commercial banks in money centers, are regulated under the banking laws. The conduct and operation of retail FOREX brokerages are not regulated under any laws or regulations specific to the FOREX market, and in fact many of such establishments in the United States do not even report to the Internal Revenue Service (IRS). The currency futures and options that are traded on exchanges such as Chicago Mercantile Exchange (CME) are regulated in the way other exchange-traded derivatives are regulated.
For more information about forex, visit Learn Forex Trading
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This time it will be our own governments mostly that will do the victimizing but some businesses will get it on it as well. Its simply one of the biggest revenue generating processes utilized by various levels of governments that very little is known of by the regular citizen. It causes family savings to be lost, assets to go uncovered and even inheritances to disappear over time. It victimizes the poor disproportionately than any other class in our society. It takes away from those who need it the most… like poor, middle class and poverty level citizens. But this process has also been known to victimize people of all classes and races in the United States. What are we talking about? Unclaimed Money is the name of the game. Millions of dollars that were in utility deposits, savings bonds, bank accounts, family properties, safe deposits contents and a slew of other unclaimed assets and money is turned over to various government agencies every year, with only a small amount ever being returned to the rightful owners or heirs. This unclaimed money windfall is actually multiplied TENFOLD because of disasters like Hurricane Katrina.
During these times there is a very very large portion of those who lose their home and important papers in the process, to also forget the location of many of their assets. Once these assets go unclaimed for a specified amount of time, they are usually turned over to a government agency with the hope of finding the owners of record. But history has shown that these unclaimed assets and unclaimed money accounts are seldom recovered because the government does a very poor job of tracking the unclaimed accounts owners or rightful heirs. This is the same government that can track you down for past taxes, criminal behavior, outstanding tickets and summonses, child support and just about any outstanding debt you may owe them. But they seem to have an inability to deploy these same tactics to return your unclaimed money and unclaimed property when these came into their coffers. Can you imagine how many THOUSANDS or even TENS OF THOUSANDS of bank accounts, family deeds, bonds, insurance policies, store and utility deposits information has been lost due to the recent disaster?
The sad part is that these are people who are victims already, and they are also prime targets for this unclaimed property victimization that comes later… courtesy of the state and federal governments. Did you know that it is estimated that 7 out of 10 people have unclaimed money that they don’t know about? That is an AMAZING 70%! How would you like a business where people placed their valuables with you but only 30% of them ever came to claim their property later? That would be a very desirable business venture wouldn’t it? Well it is also estimated that these government agencies are now holders of over $1 TRILLION dollars of unclaimed money and unclaimed property. Have you already been a victim of this practice? Has a present or deceased family member been a victim of this unclaimed money and unclaimed property practice? Do you have unclaimed money owed to you? Don’t delay and find out today because the truth of the matter is that most of the people that are reading this article already have money owed to them, or they will have money owed to them in the future. The key is knowing all of the places to look.
Stuart A. McMaster has been helping regular people find their unclaimed money for over 9 years and helped in the recovery of tens of thousands of dollars. Unclaimed Funds Processing is “A Little Company, Making a BIG Difference”, Getting YOUR Money Back Into YOUR Pockets! http://www.unclaimedfundsprocessing.com EXPERT Advice and Information can be found at More Information About, http://www.more-information-about.org.