Business and Finance

Archive for May, 2010

Credit cards for teenagers…hmmmm. That sounds dangerous. Adults get in trouble with debt due to credit cards. Now you want me to give one to my teenagers? Let’s think about that for a minute. At first glance, this does sound like a dangerous proposition but how one that the parent has complete control over? A card that the parent can check at any time to see what money was spent, where, and when? Sound a little better? Visa PAYjr may be just what you’re looking for.

You have two choices – PAYjr Chore and Allowance card for 12 year olds and under or the Visa Buxx card for 13 years old and up. The PAYjr Chore & Allowance System (the card for 12 and under) is an online chore and allowance system. The parent goes online, checks off the chores that have to be completed by the child. The child also goes online and gets their chore list. As they complete their chores, they check them off online. The parent can check at any time to see which chores have been completed and which ones have not. When the chores are done, the parent loads the child’s PAYjr Chore and Allowance card and the child can use it just like a credit card – at the movies, at stores, fast food restaurants etc.

This is the fast, convenient, and easy way to manage chores. You don’t have to sit down and decide what chores need to be done. Just review the online list, choose the ones you want done and print it off. There are online calendars that help you keep track. An ongoing “Balance Owed” is tracked by the PAYjr system and you can have the system email you and the child when a chore needs to be completed (so you don’t have to nag) and when you need to load their allowance onto the card (so they don’t nag you). Either way – very convenient!

The #1 teenage prepaid credit card is PAYjr Visa Buxx and is the only card that your teenager can design themselves which, of course, makes it really cool. Your teenager can use a picture they took themselves or get a picture that they like online, upload it to the PAYjr site and get back the card they designed themselves. This card is a reloadable prepaid card designed just for teens. It gives teens flexibility and spending independence while also providing parents with a peace of mind, complete parental supervision and the convenience of paying allowances electronically.

Just as debit cards has revolutionized our checking accounts with convenience that we didn’t get with writing checks, this will revolutionize teenage spending. No longer do you have to hand out cash and worry about your child losing or not knowing exactly where they spent it, with a prepaid teenage credit card like Visa PAYjr, you have total control, don’t have to worry about them losing cash, and you know exactly how they spent it.

FHA Loan Qualifications are an important piece of information that every prospective home buyer needs to know.

In order to obtain affordable homes through loans easier, people can turn to FHA home improvement loans. This gives them the opportunity to borrow up to $25,000 for homes and there is no equity.

In a nutshell, the loan that you make with FHA home improvement loans can go beyond the value of the house that you want to buy.

Choose the right FHA home improvement loans program that will assist you in the light or moderate rehabilitation of the properties. There are features such as the construction of non-residential buildings on the property.

This may mean an asset in the long run. Let’s say you purchase a home and they eventually make a playground. This will be good news for your children.

The program you sign up for can also give you the loans that you need that can assist you in the 20 years time. It may be for single or multi family properties. Either way, the maximum loan amount should be seized.

If you want to improve your FHA home improvement loans, the best thing to do is to not exceed the total structure. There are fixed rate loans and check whether the programs you choose offer the same thing.

There are eligible borrowers for these scenarios. If you qualify, then you are lucky because you are a step closer to getting your own home.

Just make sure that this home is what you really want. If you can speak with the person who is leasing the property, do so. Provide him with the information he needs from you. You must also come into an agreement of the timeline.

The date must be clear on when you have to pay and when he can expect the money. As the person buying the property, you should always make sure that you pay on time so that your loan does not increase.

Remember that there are inflation rates when ever you skip a payment in any loan. That is the same case with FHA home improvement loans.

Another thing to remember is that the FHA home improvement loans can be used to finance the permanent property improvements in your investment in the long run.

With that being the case, you get to protect or also improve the basic livability of the home that you are spending for. A home is an investment therefore you should always make sure that you are taking the right steps to maintain it.

There are a variety of different methods available to invest in the stock market. However, what most people believe are a safe investment can actually be a LOSING investment over the long run.

So, before you invest another dollar in the stock market, it is best to know the various investment vehicles available.

1. Government Bonds, Certificates of Deposit, and Money Market Accounts

I lump all of these into one group because they are the least risky of all investments. Unfortunately, they are almost the worst performing investment as well. Why? Because these 3 investment vehicles pay a lower rate of return than most other investment vehicles. In February of 2006, a very good money market account or CD account may get 3.5% – 4.5% a year return on the investment, which is barely above the annual inflation rate of approx. 1.7%. But if you are primarily concerned with preserving your investment capital, these 3 traditionally do very well.

2. Corporate bonds

Corporate bonds can offer a better rate of return than government bonds, but of course, they are a bit more risky. For example, GE 14 year bonds are currently offering a 5.65% rate of return. The risk here is that GM could become financially unstable, and not be able to pay back the loan that the bond represents. However, a highly rated corporate bond is generally a safe investment.

3. Mutual Funds

Mutual funds, are in my opinion, the worst possible investment. Now, I know some mutual funds have a 30% – 40% return per year, and some even more. However, the fees involved are usually very high, and MOST mutual funds actually performs WORSE then the market indexes do. The reason for this is in part, because of the management fees involved, as well as the restrictive trading as dictated by each mutual funds prospectus.

Mutual funds are not free to buy and sell any stock at any time that they choose. It must correlate to their investment strategy, even when they strategy is doomed to lose money!
For this reason, I steer clear of mutual funds these days.

4. Stocks

Ah, stocks. Now this is where the fun starts. Stock trading is where you can start getting consistent returns of 20% – 100% or more a year. Sounds great…so what’s the downside? Well, you can loose are your capital easier than in the previous 3 methods, and it takes a more active role on your part to achieve these returns. If you are interested in making more than 20% a year, I advise checking out BreakingWallStreet.com, and find the best stock picking system for you.

5.Options

Options are actually above and beyond what most investors ever consider. In fact, most stock brokers and financial advisors have one thing and one thing only to say about trading options: they are too risky. And yes, they are even more risky than stocks, and should never be invested into non-discretionary money. HOWEVER, options can and do give returns of 100% – 200% in a single DAY. Once again, using a carefully planned out trading system, one can trade options with minimal risk for loss, and a great upside potential. Again, check into the various options systems advertised on the internet.

Keep in mind, that I am not a stock broker nor financial advisor, and before you invest in anything, you should always consult a financial advisor. You can lose all of your money by investing in what you don’t know about. However, it is wise to know all your options, so you can decide how serious you are about investing, and be able to make the money you deserve!

What are the consequences of a Strong Earthquake?

Your home may have some level of structural damage to foundations, cripple walls, anchorage of walls to the floor or roof, masonry chimney, and around the garage opening or large window openings if soft story conditions are met. On the other hand, damage to non-structural elements and contents is most likely to occur to interior partitions, exterior wall panels, suspended ceilings, electrical and mechanical equipment, ducts, water and gas pipes, water heaters, hanging objects, furniture, home electronics, dishes, etc. In the meantime, electrical, gas, water and sewage, and transportation systems are most likely to be disrupted for several days, weeks, or even months after a strong earthquake. Emergency response agencies and hospitals will likely be over-whelmed and unable to provide immediate assistance. To help your family cope during and after future inevitable earthquakes, you should establish, update, or maintain your own earthquake preparedness plan now.

What is an Earthquake Preparedness Plan?

Earthquake preparedness is to know how to setup various disaster plans before a moderate-to-large earthquake hits your area, and how to react during and after the earthquake. The objective is to protect yourself and your family from destructive earthquakes as well as to minimize the earthquake damage to your home and its contents. Seismic retrofitting and contents mitigation are two major components of earthquake preparedness that will be discussed in separate articles. Disaster management and disaster recovery during and after the earthquake will also be discussed in another article. In this article, you will learn how to prepare personal survival kits, a household emergency kit including emergency food and water for two weeks, a financial recovery kit, and other essential emergency preparedness items.

How to Prepare Personal Survival Kits?

For each household member; keep one survival kit at home, another in the car, and a third kit at work/school. Backpacks or other small bags are best for survival kits. These kits are collections of first aid, survival, and emergency supplies that shall include:

Medications, prescriptions list, medical insurance cards copies, doctors’ names and contact information. First aid kit and handbook, dust mask, sturdy shoes, and whistle. Spare eyeglasses or contact lenses and cleaning solutions. Personal hygiene supplies. Bottled water, snack foods high in calories, and toiletries. Working flash-light with extra batteries and light bulbs. Extra cell phone battery and charger. Emergency cash and road maps. Copies of personal identification, and list of out-of-area emergency contact phone numbers. Games, crayons, writing materials and teddy bears for children.

How to Prepare a Household Emergency Kit?

Store a household emergency kit in an easily accessible outdoor location other than the garage. This kit which complements your family’s personal survival kits should be in a large watertight container that can be easily moved and should hold at least one week (ideally two weeks) emergency supplies of the following items:

A minimum of one gallon per person per day of drinking water. Emergency food that is canned and packaged. Cooking utensils including a manual can opener. Charcoal or gas grill for outdoor cooking and matches. Pet food and pet restraints. First aid supplies and medications. Essential hygiene items such as soap, toothpaste, and toilet paper. Extra car and house keys. A wrench and other basic tools. Working flash-light with extra batteries and light bulbs. A portable battery-operated radio with spare batteries. Comfortable warm clothing, baby items, extra socks, blankets or sleeping bags, and even a tent. Work gloves and protective goggles. Heavy-duty plastic bags for waste and to serve other uses.

How to Prepare a Financial Recovery Kit?

Copies of your essential financial documents should be kept in a fire-proof document safe in order to be available after a damaging earthquake. Consider purchasing a home safe or renting a safe deposit box. Copies of essential documents in this financial recovery kit shall include:

Picture identifications, birth certificates, social security cards, naturalization papers or residency documents, passports, driver licenses, marriage license or divorce papers, child custody papers, and power of attorney papers. Medical prescription and records. Mortgage, home improvement records, homeowner and auto insurance policies, and earthquake insurance policy. A list of phone numbers for your financial institutions and credit card companies. Bank statements and financial records, credit card numbers, and certificates for stocks, bonds, and other investments. A list of your household inventory and possessions with photos and videos. Appraisals of valuable jewelry, art, and antiques. This item is particularly important for earthquake insurance claims. Deeds, titles, and other ownership records for property such as homes, autos, recreation vehicles, and boats. A backup of critical files on your computer. A list of names, phone numbers, and e-mail addresses of critical personal and business contacts. Wills or trust documents. Emergency cash.

Other Emergency Preparedness Items

Provide all family members with a list of important contact phone numbers including a designated out-of-area emergency contact person who can be called by everyone to tell where they are. Locate a safe place outside your home to meet your family after the shaking stops. Determine where to live if your home cannot be occupied after an earthquake. Know about the earthquake preparedness plan developed by your children’s school or day care. Keep a working flashlight and sturdy shoes next to everyone’s bed. Install smoke alarms, test them monthly, and change the battery once a year. Buy a fire extinguisher, put it in an easily accessible location, and get training in how to use it properly. Keep needed tools near utility shutoffs and learn how to turn off electricity, water, and gas. Only turn off the gas if you smell or hear leaking gas. Identify safe spots in every room, such as under sturdy desks and tables, then practice “drop, cover, and hold on” with your family specially children. Learn how to protect your head at all times during earthquake shaking. Determine the best escape routes from your home and from each room. Take a Red Cross first aid and cardiopulmonary resuscitation (CPR) training course.

If you live in California

You should participate in the annual Great California ShakeOut Earthquake Drill. You can register at http://www.shakeout.org/ now for the 2010 ShakeOut Drill on October 21 at 10:21 a.m.! It is a great opportunity to learn how to protect yourself and your family during earthquakes, and to get prepared. More than 6.9 million Californians participated in the second annual earthquake drill in 2009.

Concluding Remark

The 2010 Haiti earthquake is a wake up call for anyone who lives in an active seismic region to establish, update, or maintain their own earthquake preparedness plan. In the United States, these regions include -but not limited to- Alaska and the West Coast especially California; the Midwestern States especially Illinois, Kentucky, Missouri, and Tennessee around the New Madrid and the Wabash Valley Seismic Zones; and the Charleston area in South Carolina.

Debt consolidation secured loans can be defined as the type of loans that are given to individuals with the intention that the individuals who receive these loans will be able to pay of some or all of the debts that they have incurred.

With such a loan one can be able to clear their high interest credit card bills among other bills that they might have. Financiers have been known to advice their clients to take such loans as soon as they see their finances going to the dogs.

This is because such a loan can be able to help you get rid of pressing debts before creditors make you bankrupt.

You will find that any of the debt consolidation secured loans will be given to an individual only in the event that the individual can be able to come up with some sort of security.

The loans can range from as little as five thousand dollars to as much as one hundred dollars. The determinant of the amount you get will be gotten from the type of security that you will provide against this loan.

Another determinant will be the credit history that you have. A bad credit history will lead to a lesser amount of loan that you will receive. Another determining factor will be the repayment capacity you have.

The higher the repayment capacity you have the higher the chances of getting a bigger loan. This is because the institution giving you the loan will have more confidence with you repaying the loan.

Keep in mind that debt consolidation secured loans are like any other type of loans. This means that one way or the other you will have to repay the loan.

It is very important to be constantly repaying these loans as forfeiting or defaulting payment can lead to late payment fees.

An accumulation of such fees might lead to one having a loan that has become impossible to repay.

Once the lender sees that you are having problems in paying the loan, you will be required to let them take the security that you had put up for the loan.

Most of the lenders will sell the security that you had put up for the loan to recover the amount of money you owe them.

Unfortunately, they will not refund any of the money that you had started paying as repayment of the loan.

This is why you should plan your finances before taking any debt consolidation secured loans.