Tag Archive | "Financial"

Financial Terminology: Jargon Buster A – E

Financial Terminology: Jargon Buster A – E


1. Account holder
The person who has a personal loan account.

2. Advance
The mortgage loan itself is called the advance.

3. APR (Annual Percentage Rate)
An interest rate designed to show you the total annual cost of getting credit. It should include all the interest and charges payable by you as a condition of taking the loan. Where taking Payment Protection Insurance is a condition of taking the loan, this should also be included in the APR. The typical APR is the APR that 66% of customers applying for the providers credit card can expect to get.

4. Applicant
You become an applicant when you complete and submit an application form for a personal loan.

5. Applied or nominal interest rate
The rate used to calculate the interest due on your mortgage.

6. Arrangement fee
The fee payable to the loan provider by you (the applicant) to open the account.

7. Arrears
Mortgage payments which have not been paid and are overdue.


1. Bank of England base rate
The Bank of England sets or reviews their interest rate on a monthly basis and this is the main factor influencing interest rates charged by mortgage and other lenders.

2. Buildings insurance
Covers your actual building(bricks and mortar) and is usually required as soon as you exchange contracts on your house.


1. Capital
The amount you owe excluding costs and any interest outstanding.

2. Capital and interest mortgage
This is when your monthly payments go to pay off the outstanding mortgage in addition to the interest on the mortgage. At the end of the term you will have no more to pay. Also called a repayment mortgage.

3. Capped rate
This is a mortgage where a maximum interest rate is agreed which the rate cannot go above. This deal lasts for a set period of months or years. Should the variable rate go below the maximum, the pay rate falls with it.

4. Cashback
An amount, either fixed or a percentage of a mortgage, which you can opt to receive when you complete your mortgage. The lender will likely claw back this money through a higher interest rate.

5. Charge-off
The removal of an account from a loan provider’s books. When an account is charged off, the loan provider absorbs the outstanding balance as a loss. Charge-off is also referred to as Write-off.

6. Closing administration charge
A final charge made by the lender to cover their administration costs when a mortgage is fully repaid.

7. Completion
This is end of the mortgage process, when the contracts are signed, all questions have been answered and the keys are handed over and the funds transferred. Happy moving!

8. Consumer Credit Act (CCA)
The Act which defines how personal loans may be advertised, and what rules need to be followed by loan providers in the presentation of loan features such as the interest rate and typical APR that are applicable. The Act also covers the information that needs to be available to the consumer such as product terms and conditions.

9. Contents insurance
Insurance that covers your personal belongings

10. Contract
A contract is a binding agreement between two and more parties. In the context of house buying, a contract is signed by both the buyer and the seller and then ‘exchanged’ between the respective solicitors, at which point the house sale is binding on both sides.

11. Conveyancing
The legal work involved in the sale or purchase of land.

12. Credit Reference Agency (CRA)
An agency that gathers and maintains information on the debts and repayment records of individuals and businesses. CRAs prepare reports that are used by personal loan providers to view an applicant’s credit history. There are two such agencies for consumer credit in the UK – Experian and Equifax.

13. Credit scoring
The process by which your credit worthiness is checked. Weights or ‘scores’ are associated with your personal attributes, such as your income and the time spent at your current address. These ‘scores’ are added to give a total credit score. Each total credit score is associated with a prediction of how likely a person with that score is to default. The loan provider then checks this score against the minimum required to be accepted for their loan, determining whether they accept you or not.


1. Debt consolidation
The process of combining all outstanding debts in one loan account. For example, you may have an existing loan with a balance of £2,500, a credit card balance of £1,000 and a store card balance of £500. These could all be consolidated into one loan of £4,000. The purpose is usually to lower monthly repayments, through either lower interest rates on the new loan, or lower repayments from an extended repayment term, or both.

2. Default
Non-payment of an account according to the terms of the loan agreement. If you are declared in default, your account may be subject to higher interest rate and other charges. Failure to keep up with repayments may result in the fact being registered at the two main consumer credit agencies in the UK- Experian and Equifax. This may reduce your chances of obtaining credit in the future. If the loan is secured against your home, your home may also be at risk.

3. Deferred payment
Delayed payment. Also referred to as a deferred start, this facility allows you to delay the date on which the first repayment is due. The deferred period could be from one to three months, meaning a loan opened on the 1st January may not require repayments to start until 1st April.

4. Deposit
The deposit paid towards the total price of the property, normally payable at exchange of contracts.

5. Direct debit
Apre-authorized debit on the payer’s account initiated by the payee. Most loan providers would require you to set up a direct debit to make the monthly repayments on the loan.

6. Discounted rate
This is where the lender makes a guaranteed reduction off the standard variable rate for an agreed period of time. After the period ends, the borrower will go onto the Standard variable rate. often used by loan providers as an added incentive to apply for a loan.

7. Drawdown date
The date when the contracts have been completed and the mortgage starts.


1. Early repayment charge (ERC) / Early settlement penalty
The charge payable to some loan providers should the loan be repaid in full before the full term of the loan has expired. For example, an arranged loan over 36 months may incur an ERC if it is repaid after 24 months, or any point before the 36 months has been reached. The average ERC can amount to the equivalent of 2 months interest.

2. Early redemption charges
Redemption is when the borrower pays off the capital and the interest on the mortgage and thus has full rights to the property. Early redemption fees are the charges incurred for paying off the mortgage early, either to buy the house outright or when you re-mortgage. Always ask about these before you take out a mortgage.

3. Endowment
Endowments are life assurance policies with an investment element designed to pay off the outstanding capital on an interest-only mortgage. There are a few types of endowments, such as ‘with profits’, ‘unitised with profits’ and ‘unit-linked’. in the 1980s, these were sold to customers by salesman who promised that they would be guaranteed to pay off the mortgage at the end of the term. This is not the case, and many endowment holders are having to bump up their premiums.

4. Equity
In housing terminology, equity is the difference between the value of the property and the money owed on the property. So if the property is valued at £200,000 and you owe £150,000 on the mortgage, you have equity of £50,000. If you sold at that moment, you would receive £50,000. Should the value of the home be less than the mortgage outstanding then you are in negative equity. Not to be confused with the stock market use of the word “equity”, which is completely different.

5. Exchange of contracts
In England and Wales (not Scotland), the point when both buyer and seller are legally bound to the transaction.

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A College Student’s Financial Success key

A College Student’s Financial Success key

Financial success may come in different forms. Financial success does not only mean that you are financially independent, or you have been able to make thousands of dollars off the stock market. To be financially successful, may mean making sure by the time you graduate from college, you are not in debt or worse off than you started.

As essential as it is to secure a part-time job to support your personal wants, you must be aware of the “hidden regressors” that come uninvited. Your first check in the mail, brings you to some degree, some feeling of accomplishment. Your adult life is just beginning, where you see the value of getting paid for work done. It goes without say that it’s at that time where you start to take on additional responsibilities. The importance of communication and being able to be reached wherever and whenever, prompts you to procure a wireless. The apparent need of getting to and from your job incurs the cost of driving insurance, gas and all other related transportation expenses. Indubitably, acquiring a job doesn’t always mean money inflow; it creates a path for money outflow. One needs to be prepared for the unexpected and the ability to be financially successful.

Credit cards: a friend or a foe? When the due date for bills draw nigh, and the checks are not coming in as often as you would have expected, many students feel pressured to use credit cards as a means of a short-term loan. This method where you plan on immediate repayment is not harmful; however, many students misconstrue that credit cards are an invention to make college life luxurious and comfortable. Wrong!

Saving is sometimes barely doable for some students, since they end up owing money to all these credit card companies. Our system is designed so that without good credit, one is limited from doing a lot of things. It is thus sagacious if we use our credit cards wisely. Use credit cards for things you know will definitely bring you a return. For example, use your credit cards to buy gas to take you to work. When you decide to use your credit cards to buy all the possible clothes on sale; and the purchase is backed by the conviction of repayment after you graduate, put the credit card back in your book bag.

Credit cards can either make you or unmake you; this is because if you use them wisely, once you graduate, it will be easier to get a loan for a new car or a lower security deposit on that new apartment. For the college students that work, there is always a possibility of saving your money, even if you can’t save a lot; you can still save a little. Try to research online, for banks that offer high interest rates on their savings account. The proliferation of online savings accounts has undeniably increased the interest rates, and thus the potential to earn more on your savings.

To be financially successful means to be free from debt, in the college perspective it is to try to avoid a post-graduation debt. The “broke college student” has the ability to be financially successful, if means are taking to save more and use credit wisely.

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Debt Consolidation Or Secured Loansecured Loan Or Financial Help

Debt Consolidation Or Secured Loansecured Loan Or Financial Help

Financial help is available in the form of welfare benefits, tax credits, grants and loans, and help from your local authority. Students in further education needing financial help with childcare should also contact their college for information, if they are not eligible for Care to Learn. If you are concerned about the costs of learning and looking for financial help, the information below will give you an overview of the funding available and where you can go for advice. You may also want to think about approaching your employer for financial help.


Financial professionals offer a broad range of services. To avoid amateurs, hire a planner who’s earned special credentials (such as a Certified Financial Planner or Personal Financial Specialist designation) by meeting training standards or having a certain level of experience. Our professional, certified counselors will assess your financial situation, assist in creating a spending plan, and discuss options for debt repayment. Whether or not you will benefit from professional financial assistance depends on your unique situation. Working with a financial professional does not ensure you will beat the stock market every year or anticipate every financial concern. If your parents or partner do not provide details of their income to your Local Authority, you will not receive all the financial support to which you are entitled. Talk to a lawyer or a financial planner to help you decide what is best in your own case. You can find information about financial support for students aged 16 to 19 in a leaflet called Financial help for young people. You could get financial help towards the costs of your learning, and related costs like travel and childcare. The Access to Learning Fund is not a guaranteed form of financial support.


Many insurance companies have a specific waiting period during which they do not cover diabetes-related expenses for new enrollees, although they will cover other medical expenses that arise during this time. Many patients have private insurance through employee group plans or individual plans. Many insurance companies make it possible for life insurance policy owners to collect all or part of their death benefits early before dying to cover extraordinary expenses. These are people who have been denied health insurance coverage because of a medical condition, or who because of their physical condition are unable to purchase health insurance at any price.

An unsecured personal loan is a popular type of loan that is available to tenants, homeowners, and those living with family, providing they have good credit. An individual can take an easy personal loan or a guaranteed personal loan for a variety of reasons. Comparing your current personal loan, car loans, credit cards and mortgages to help find the best deal will save you money. You do not need to have excellent credit to qualify for a personal loan. The main attraction of Online Secured Personal Loans is the easy and convenient way to get them. Unsecured personal loans are the most common type of loan that is applied for in the UK.

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Plan Your Retirement In As Easy As 1 – 2 – 3 Using Financial Planning Software

Plan Your Retirement In As Easy As 1 – 2 – 3 Using Financial Planning Software

Rather than spend your hard earned money hiring a financial planner or consulting with one, there are actually countless software programs that would help you in managing your finances. These programs are efficient tools for planning and making all those important retirement calculations.

One software program is MFC, My Financial Coordinator. It literally serves this purpose. It merges all your income streams into a coherent report therefore making managing your assets so much easier to understand and manage.

This software also helps to determine which of your assets you should sell or hold based on performance. It also details all the financial activities you did for the year and helps you estimate your quarterly tax calculations. Doing so prevents you from incurring those annoying penalties from the IRS.

Other benefits the software program includes are the following:

Monitoring of stop/loss

This software helps in your decision-making on a specific asset prior to it losing its significant value because the stop/loss monitoring function works off the highest value recorded.

Quarterly Federal, State and Local Tax Estimates

The MFC software provides an easy one stop source for determining liability information and accurately reporting it thus ensuring on-time payment.

Confidentiality assured

MFC keeps you in the know as well as preventing others from knowing all your investment information. Details on your assets as well as your financial transactions are secure with you and never leave your sight. Any data transferred over the internet are mere stock symbols and never reveal any number of shares that you may have or any of your personal information.

Everything is served to you

Since assets come from various resources, the MFC software groups them all together on the system. All bonds, stocks, mutual funds, certificates of deposit, checking accounts, money market accounts, salary, income from social security, pension, annuities, proceeds from gambling, royalties, income from business and others.

Reporting of monthly income

This feature in the software enables you to see the level of your income on a monthly as well as an annual basis. This to assist you in managing all your financial as well as expense needs.

Calculations on your performing assets

Updates on your performing assets is provided to you by the MFC software program. This would help you in determining which are your non performing assets or under performers. Doing so would be of great assistance to you especially when the time comes to select which will go first when fund liquidation is called for.

You have the power and control

Absolute power in terms of your finances provides absolute control as well as flexibility as this software program enables you to indicate the Federal, State as well as any local adjustments or deductions in the computation of your gross income and liability in taxes.

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Is Your Wallet Empty? Learn How To Improve Your Financial Health

Is Your Wallet Empty? Learn How To Improve Your Financial Health

If you have looked and looked at your budget but don’t know what to do to improve it, this article is for you. Read on to learn financial management techniques that can help you to resolve financial problems, get out of debt and begin saving money. Don’t let your budget overwhelm you when help is available. Read on.

Purchase all household staples in bulk, if possible. While you may have to pay a small yearly fee to become a member at your local wholesaler, you will save a great deal more money in the long run. This is especially ideal for households with children. Stock up on economy size diapers, frozen foods, and paper products.

Many banks no longer offer free checking accounts, so it may be worth your while to shop around for one that still does. You may be able to find a local bank or a credit union that offers a better deal than a big, national bank. The fees can add up over the long run, so try to find the best deal available.

Direct your emergency savings funds into an account that will give you access to it whenever you want, but you’ll also, earn a little bit from interest. Money market accounts make great emergency savings funds, as do savings accounts with high yields. Be aware, though, that some savings accounts may require a large amount of deposited funds before a high amount of interest will be paid.

If you’re using a rewards credit card that requires a minimum purchase amount to gain the reward, use it where you shop the most. Even if you aren’t planning on spending the minimum amount required, you can purchase gift cards, which you can use later. This technique works even better at grocery stores that you will consistently shop at.

If you want to save some money, consider changing some of your unhealthy habits. Instead of buying a pack of cigarettes or something like an snack that isn’t good for you, save the money back. After a while you will be amazed with how much extra money you have to pay for things that are important.

Try to avoid your local bank if you want to open a checking account. It is better to open an account at a credit union. Most credit unions have fees that are much less than those at the bank. Another good point is the fact that every dollar you deposit buys you a share in the company.

Some people are addicted to spending money, so if this sounds like you, you need to learn how to fix the problem. Instead of being addicted to shopping, you may want to turn your attention to something cheaper, such as playing a sport or spending more time with your loved ones.

After reading this article, you should have a better idea of what to do with your budget. Use the tips you just read to help you take one step at a time towards financial success. Soon you’ll have gotten out of debt, begun saving and most importantly begun feeling confident about your financial management skills.

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Finding Your Own Financial Opportunities

Finding Your Own Financial Opportunities

In 1989, Nutraceutical Industry was established by Mr. Stephen DeFelice and named “Foundation for Innovation in Medicine” and was defined ‘Nutraceutical’. Its term was used for dietary supplement, medical food, or food that has health or medical benefits, including the treatment and prevention of disease.

Today, it is a well known name and it will be difficult to name one ‘Nutraceuticals’ without the other ‘Functional foods’. In 2002, functional food or the Nutraceutical Industry has become the most profitable, lucrative multi-billion (20.2 billion) dollars per year market, and it is still here to stay for a long time.

According to Business Communications report, “Nutraceutical/Functional/Wellness Foods & Beverages” (RGA-109R), the Functional Food or Nutraceutical industry could now approximately double in worth by 2007 with sales predictable to be further than 37.7 billion dollars. The explanation for this escalation is:

- Improved awareness in maintaining superior health.

- Improved information available regarding diet and health.

- Lack of health cover or inadequate funds for customers to use on fitness, health care, and medical prescription.

- An increasing number of individuals who are aging and concerned to live a more fit and healthy way of life.

Presenting health issues also control the marketplace. Customers are concerned in weight loss and weight managing, bone density, heart disease, diabetes, cancer etc., how to recover or prevent these diseases and then lead more nourishing and wholesome lives.

Are you very good at numbers and accounting? Are you some economic wizard? Are you great at gathering and saving the cash you are recently earning by working for somebody else? You might have whatever it takes to create it in the economic world with modern day monetary business opportunities.

If you desire to get started functioning for yourself in the economic field, verify the most recent business opportunity leads. Most of these opportunities can be located on the net.

There are so many practical sites dedicated to future businesses and startup business entrepreneurs who are looking to build their own wealth. Most of these ideas and opportunities are crafted specially to the financial services division. You should start by looking for these types of websites and you are certain to locate these types of business opportunity prospects very easily in no time. You may even begin your own economic business and in turn build yourself your own money-wise flourishing future.

If you are confident enough, you can even create a profitable business by offering loans, mortgages, and other types of business services. Maybe you have played around in the stock market and have had sufficient personal business success that you can start your own investment counseling. Some of the most recent business opportunity prospects involve becoming an overhead reduction specialist or high priced chief accountant. If businesses or companies come to know about your talent and dedication and know you can offer them cost reducing methods that can make them more money, you are certain to start earning and accumulating your own capital.

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Financial Freedom – The Main Positive Personalities Of Millionaires

Financial Freedom – The Main Positive Personalities Of Millionaires

Financial freedom is a topic that is of interest to every one. Almost all of us are in search of a foolproof plan for financial freedom. One can get many suggestions on this regard from others. One person may advise you to look for job change. You may get a suggestion from another about beginning a small at-home business. Some people try to enrich their knowledge about the stock market, real estate market and other investment opportunities in their endeavor for financial freedom.

Learn from millionaires

Let us analyze these millionaires that have been successful in their lives and accomplished their objective of financial freedom. They all have had some skills that have helped them in financial freedom. Here are some key elements of their personality, the strategies they adopted and the rules they followed in their lives.

Importance of working with people

The biggest advantage that these millionaires have in financial freedom is that they are masters in the art of team work. Having the right kind of people to work with you and knowing how to handle them is the most important tool that you have in your hands for financial freedom. You can observe that whenever and wherever someone has made a great fortune there¡¦s a group of talented people was involved.

Power of decisiveness

Power of decisiveness ability is also very important for financial freedom. You should have the ability of going through the pros and cons very quickly to reach at any decision. Once, you make it a habit you will always be at an advantage over others when it comes to cashing on any opportunity.

The characteristic of persistence

Every one who is successful in financial freedom is persistent with his work. You should also be ready to develop this quality. Instead of giving up at an early stage you should be prepared to work for extra hours. Make use of whatever you do for getting new ideas for financial freedom. Go through the financial related magazines that provide many useful suggestions in this regard. Write down these ideas and analyze them on a regular basis. You don’t know when a particular idea clicks and you get an opportunity to reach your goal.

Resourcefulness of time

An important characteristic that is present in the personalities of all millionaires is good time management. Understand the importance of time. When you are putting all your efforts into making money then wasting time can be detrimental to your efforts. After all, all of us have been grown up listening to the popular phrase “Time is money” right from our childhood.

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Changing Stock Brokers Can Be Dangerous To Your Financial Health

Changing Stock Brokers Can Be Dangerous To Your Financial Health

You need to find a stockbroker,or change brokers…but how do you know if your getting a good deal?.Sure… the salesman said it’s a great deal and you would get 10 free trades…but what’s the catch?.Guess what? The salesman is paid to sign up new accounts not to help you.I can tell you from personal experience…they “bend the truth”as much as any used car salesman,and so much more money is involved !!.

It pays to make sure you understand what you are getting into.you can save yourself from a horror show later.There is no such thing as a free lunch… so they must make up the money they don’t get on 7$ trades somewhere else.Many rules buried in the fine print are as convoluted and devious as the worst cell phone plan…and can cost you just as much!.

But how can changing stock brokers can be hazardous to you financial health?

Learn the pitfalls; do you know what to look for?.

Changing stock brokers can be hazardous to you financial health!!!.

Let’s start with this…it’s not all that fun or easy to change brokers !;unless you have only mutual funds or buy and hold positions.If you are a trader or hold option positions,be very careful before you move accounts that you know all the terms before you move.while it may seem that if you get into a bad deal with a broker you can just relocate to a new broker with the click of a mouse;in practice there is more to it.The system for transferring open stock or option positions is called “ACAT”. This is sometimes represented by salespeople as taking”a few days”.

This seems to be like when the garage says your car will be done by noon..plan on 6;30 or maybe tomorow.In my experience the quickest completion is 10 days.but this will vary by the number of positions in the account,and the brokers back office or “clearing broker”(some sub this work out..some have their own)they come into the new broker in dribbles and drabs over the time period,and the new broker must reconcile the balances /positions with the new broker.


They are in a kind of limbo where they cannot be traded by you at either firm.Is this very dangerous?you bet you life..what if market drops 100 points?ever heard of Murphys law?.what if stock goes up 10 points but you can’t sell,then goes back down the day before position are cleared to new broker?.well anyway.. you had time to practice kicking yourself!!

Here is another complication that can arise in this situation.what if the positions arrive from the prior broker and when the margin department at the new broker calculates you account balances they issue a margin call because they have a different margin policy.Oh you were told that all brokers have the same policy?..wrong!(more about that later).

This nightmare case would have you making forced liquidations as your freshman trade,further delaying access to your account.”welcome to &^$ # trade!!”.How do I know this?.you guessed it ;it happened to me and it cost me 0,000 in losses,in that 12 day period.Sure you can sue..but my advice?….as much as you hate to pay the commissions… or face the tax consequences.liquidate all open positions at the broker you are leaving,and either wire the cash or express mail the check to the new broker. you also save the service fees that many brokers charge for acat transfers by leaving with cash.and starting with cash.If you have spare funds in the bank and are concerned about a position in the old account moving for/against you ,you could open an offsetting position by setting up the new account in advance of your move, and opening the offsetting position BEFORE liquidating the old account .Do it with cash and you will have one less headache!

“A man’s got to know his limitations”

You 70′s movie buffs will know where that line came from!.What’s that got to do with stockbrokers?.The first step in selecting a broker you will be happy with is to be realistic about what you plan on doing in the account .This is because the brokers do vary as to the com commissions,margin policies,and fees they charge.By thoughtfully,and REALISTICALLY thinking about what type of activity will occur in the account you can find a broker who will suit your investment activity.

Don’t go with a broker with minimum activity levels if you are really a buy and hold customer..the fees will add up.If you tend to run margin balances,shop for the lowest margin loan rate..they vary a lot!If you trade options be very careful of the fine print when comparing commissions(more on this later)

Be aware of the brokers limitations.This is the truly hard part,and what I hope to shed light on in this website.Most brokers would rather you did not know this stuff,and they have a huge incentive not to tell you,why?because there mean?…No! ,the brokerage business is intensely competitive.I saw where bank of America is offering free trades.Humanitarians?,you know there is a catch!

Apparently the competition to loss lead;Leads the brokers to come up with hidden fees that(hopefully) will not be noticed.I believe they frequently are not noticed for two main reasons.One; people are intimidated by financial jargon,or are bored by it.Two;brokers have every incentive to…let’s just say accentuate the positive and forget to mention the not so good stuffNot to worry,the detective is here to help point you to the trouble spots!!!.please stick around and visit page two ,where some of the places where the bones are buried lurk.I will show you where to look.

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An Impending Financial Earthquake Is Coming. Is Your Stock Portfolio Prepared?

An Impending Financial Earthquake Is Coming. Is Your Stock Portfolio Prepared?

Your Investment Choices Now Will Determine Whether You Lose Great Wealth or Build Great Wealth in the Near Future.

Within the next 5 to 10 years, there is an extremely strong possibility that a Peak Investment Crisis will hit all regions of the world. I uncovered the likelihood for this crisis because my investment strategies do not rely on crunching numbers or charting technical patterns, but on uncovering money trails among the most powerful political, financial and corporate institutions in the world. Statistics and numbers are constantly manipulated and are frequently less than truthful. That’s why millions of investors that rely solely on fundamental analysis never build wealth.

However, the money trail does not lie. How you position your portfolio now will determine whether you will build wealth beyond your greatest expectations or whether you will have to postpone retirement and struggle for the next couple of decades.

Did you know that immediately before the Great Depression hit the United States, that U.S. stock markets had skyrocketed for about a decade straight and that unemployment was less than 1%? Did you know that immediately prior to the 1997 Asian Financial Crisis that hit the Southeast Asian “tigers”, and in particular, Indonesia, South Korea and Thailand, South East Asian economies were booming with high single to low double-digit growth rates as foreign investment flooded these markets?

In fact, immediately prior to the Great Depression, the outlook for the U.S. economy, at least on the surface, could not possibly have been better back then. But when the tide turned, investors got smacked in the face by a 2,000-pound bear and lost their fortunes overnight. And in Thailand, immediately prior to 1997, economic conditions were so rosy that the overall economic giddiness sparked a real estate boom, the evidence of which can still be seen today, more than a full decade later.

However, despite everyone’s giddiness back then, when the crisis hit, Thai currency lost more than 50% of its value in just six months and businesses failed left and right! Just drive through Bangkok, and you will easily spot empty shells of half-constructed office buildings and luxury residential buildings sprinkled throughout the city. When the crisis hit and funds to complete them dried up, these yet unfinished projects had to be abandoned

In reality, though the conditions that caused both of these crises had been developing steam for many years, all the average investor saw was the result, the loud crash that occurred when the steam blew the head gasket. In both instances, though the great majority of people lost massive amounts of wealth, the very savviest of investors actually built great wealth during these times.

And just like during past economic crises, this Peak Investment Crisis will undoubtedly present one of the best opportunities of our lifetime for savvy investors to also build great wealth in the near future. Clearly, an economic earthquake of great magnitude can happen again, and when many indicators below the surface point to such an occurrence as an extremely high possibility, only the most unwise of investors would do nothing to prepare for it. In fact, I would argue that this brewing Peak Investment Crisis is even more dangerous than either of the two financial crises I have previously mentioned because this one is more likely to affect the global economy on a much more significant scale.


Since 1997, hedge funds and financial derivative instruments have exploded, growing into cumulative market sizes that exceed hundreds of trillions of dollars. During the 1997 crisis, the total global scale of these financial instruments was like a baby monkey back then compared to their King Kong-size today. This explosive growth in financial instruments has linked asset classes, industries, and global markets like never before, allowing a fiscal crisis in one region to have a much more pronounced domino effect in global markets today. So whereby in the past, a small rock that dropped on top of a snowdrift might have caused a local financial disaster that trickled down to other economies, this same rock today is capable of creating an epic global financial avalanche. And what makes this crisis near inevitable is that the rock that is about to drop is no small stone, but instead a massive boulder.

How to Ensure that You Build a Great Fortune in the Stock Market Instead of Losing it When This Crisis Hits

For the reasons discussed in this article, 90% of investors will fall into one of two categories over the next 5 to 10 years and beyond. They will either build great wealth or lose much of their wealth. Due to the global scale of this imminent crisis, there will be very few investors that won’t fall into one of the two extreme categories of building great wealth or being mired in financial catastrophe. How do you ensure that you are on the proper side of the fence?

The answer is to manage your own money, period. No ifs, ands, or buts.

Handing your money to a global investment firm is fine if you have already built your wealth and are no longer interested in continuing to build it, but even then, you are still likely to lose great amounts of wealth when this crisis hits. And what if this crisis never materializes? Even though we strongly believe that conditions today make this crisis near inevitable, even if by some miraculous intervention of various world governments, it does not happen, learning how to manage your own money will still give you a great chance of achieving 20% to 25% or more annual returns year after year. And if this crisis materializes as we expect, well then, during this time, your returns should leave 20% to 25% annual returns in the dust.

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Tips Large And Small For Improving Your Financial Health

Tips Large And Small For Improving Your Financial Health

Reaching your personal finance goals is easy when you know how to approach managing them in the right way. Whether you are struggling to make ends meet every month or just want to manage your finances better, these personal finance tips are sure to put you on the right path.

Banks offer two different types of loans: fixed and variable interest rate loans. Try to avoid variable interest rate loans at any cost as they can turn into a disaster. Fixed rate loans will have the same interest rate throughout the loan’s life. The interest rate of the variable rate loans and their monthly payments change either by following the fluctuations of the market or the contract between the bank and the borrower. The monthly payment can easily reach a level the borrower can’t afford.

To start saving for the future, try using a small, consistent savings program. This means that you put a small amount away for your savings every month. By keeping it the same amount and putting it away around the same time every month, you can watch your savings grow in no time.

Keep a close eye on the utilization rate of your credit cards. This rate measures how much of your available credit you have used. If the rate gets too high, it can hurt your credit rating. People who use too much of their available credit tend to have a harder time making their payments.

Try not to pay too much attention to what the financial news is saying. You can use it to inform your choices, but keep in mind that reporters are speculating the same way you are. Learn to trust your own instincts as much as you trust those of the newspeople.

Find different ways to invest your money. Look for stable investments and get advice from a professional if you need to. Build your portfolio slowly by starting with small investments and place more money in the kind of investments that have worked well before. Explore different options, such as, real estate, and stocks and bonds.

Avoid making cash advances on your credit cards, particularly, if it is for something that is not an emergency. While the fees are not as high as payday loan fees, they are very high. The money you take out will end up costing many times more, when it is all said and done.

Mowing your own lawn, as well as finding neighbors and other people who are in need of someone to mow their lawn for them, can develop into a profitable job for you to pursue on your own time. It also has the advantage of being a job that you can do close to home.

With the above tips in mind, you are ready to embark on the path to better personal finance. Educating yourself is the best way to achieve success with anything. This is especially true with personal finance, so take these tips to heart to improve the way you approach your finances.

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