Mutual Funds Information

Have you ever run in to tough times, been unable to pay your bills, run up a lot of Insufficient Funds bank charges? Most people have at one time or another been hit with overdraft fees, often times by depositing a check and writing a check against that account without giving enough time for the deposited check to clear.

After spending just a little bit of time working in a bank, it was east to see why checking accounts are the banks most profitable product.

The interest the banks make on your money is no longer where the banks may their money. If you don’t believe me, take a look at any number of public traded banks; their annual reports are usually available on their websites. Fees are where the real money is at for them. An average checking account is worth about $200 to a bank. NSF fees, the popular term used by most banks for insufficient funds, can run into the hundreds of dollars if you’re not paying attention. Often times, the people that can afford the fees the least, are the one that get hit the hardest.

Because checking accounts are so profitable, banks jump over each while trying to get new checking customers. Some banks now only offer their best CD rates to checking customers only, while others offer special offers to “new” money, new to the bank, that is.

If you ever had insufficient funds fees on your account, you can use this information to your advantage. Simply by asking a branch manager for a fee waiver, different banks will call it different things, but you get the point, you go down to the bank and explain your situation to them and get them to reverse at least some of the fees. 20% to 50% fee reduction is the norm. Believe me, they’ll negotiate, especially if you hint at closing your account. They hate losing checking accounts, and will work with you. Washington Mutual goes as far as to promote one fee reversal per year in their marketing, so banks will be flexible if you stick to your guns.

A little known secret is that even if you don’t have an overdraft line of credit, banks give you about $300 credit over and above what’s available in your checking account. You can ask to opt-out, but then you’ll be hit with fees for bouncing checks from different sources.

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The million-copy bestseller, revised and updated with new investment strategies for retirement and the most current research into behavioral finance.

Updated with a new chapter that draws on behavioral finance, the field that studies the psychology of investment decisions, here is the best-selling, authoritative, and gimmick-free guide to investing. Burton Malkiel evaluates the full range of investment opportunities, from stocks, bonds, and money markets to real estate investment trusts and insurance, home ownership, and tangible assets such as gold and collectibles. This edition includes new strategies for rearranging your portfolio for retirement, along with the book’s classic life-cycle guide to investing, which matches the needs of investors in any age bracket. A Random Walk Down Wall Street long ago established itself as a must-read, the first book to purchase before starting a portfolio. So whether you want to brief yourself on the ways of the market before talking to a broker or follow Malkiel’s easy steps to managing your own portfolio, this book remains the best investing guide money can buy.

Author: Burton G. Malkiel

Hardcover: 
480 pages

Company: W. W. Norton 

(2007-01-22)

ISBN: 0393062457

List Price: $29.95
Amazon Price: $17.16

Used Price: $17.17

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Larger set of population now prefers starting own business for different reasons. Loan requirements and offers to aspiring business persons therefore have become key feature in the loan market. Business start up loan has acquired major place in lending and borrowing funds for starting business for the first time. Even for established business persons wishing to start a new venture, business start up loan has become equally useful.

Business start up loan does not restrict business persons from utilizing it for variety of purposes. While the loan may be availed exclusively for starting business, at the same time previous bills also may be cleared. Buying machinery or equipments, office furniture or a rented place and paying for different expenses are amongst few usages of business start up loan.

Aspiring business persons should first decide if they wish to opt for secured or unsecured versions of the loan. Both have their advantages. Secured business start up loan is most convenient way of taking the loan. This option requires business persons to offer any property as collateral with the lender. It would benefit more if high equity collateral is selected as it enables business people in availing the greater amount at reduced interest rate.

Every business person thinks in terms of cutting the cost on various aspects of business with loan availing at lower interest rate being up in the list of reducing cost. Business start up loan, especially its secured version has unique advantage of lower interest rate. Though like other secured loans, this one naturally has lower interest rate, still aspiring business people can bargain for reduced interest rate through placing higher equity collateral and borrowing below the equity. On comparing various loan packages also gets interest rate reduced as lenders have their own rates of interest.

Larger repayment term is one big advantage. Secured business start up loan can be paid back in 5 to 30 years. Business persons can chose repayment term keeping their repaying capacity in mind. Remember that larger repayment term also reduces outgo towards monthly installments which saves money for other necessary expenses.

Unsecured business start up loan is availed without placing collateral and is solely based on credentials of the business person for ensuring lender of his loaned amount. So good credit history, reflected in credit score of the borrower, makes unsecured business start loan easier to get. Even if credit history is not that good the loan can be taken provided the loan seeker proves his sound financial status.

Apply for the loan online as it has many advantages. Business persons get numerous loan offers in response to the application and that makes choosing suitable loan package a lot easier.

Business start up loan is useful in establishing you as business person of some repute provided the loan is used wisely and availed at low cost. To avoid falling in any debt trap, clear monthly installments regularly.

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A Trust is perhaps the best channel to keep your money and other assets safe and secure for your future generations. It is a lawful creation that isolates your money for specific reasons.

A trust is beneficial even when the grantor is alive and after his death. A grantor, settler or donor is the person who is responsible for settling the trust. Trust funds can be set up by single or a group of individuals. There are always some reasons behind forming a trust. These reasons vary from persons to persons. Besides the grantor, there is or are trustees. These trustees are appointed by the grantor and they take care that the trust is functioning according to the will or wish of the grantor.

The first and the foremost benefit of a trust is the tax saving. A trust can protect the grantor from paying huge taxes and claims. Money kept in abeyance in the form of a trust can be helpful in your old age when you take retirement, when your children need money for higher studies or for the secure future of your spouse or when you plan to do a venture in business etc. The money enveloped in the name of trust is exempted from taxes like the estate tax and the like. The tax subsidy actually varies with the kind of trust you have formed.

Types of Trusts

If a person is alive and forming a trust then such a trust is called a living trust. Every trust including the Living trusts can be bisected to form the- Irrevocable and Revocable trusts. The former are those where the statements cannot be altered by the grantor during his lifetime and even after that once legally formulated and the in the revocable trusts the settler can change his statements even after they are legally penned down once till the time he lives. For instance a trust set up by parents that provides for their minor children in case any problem grips them. Both these types of trusts revocable as well as irrevocable have their positive and negative aspects.

There is also the Life Insurance Trust that ensures some kind of financial safety for the survivors in case something happens to the donor. A life insurance trust fund is better than a simple life insurance policy because of the tax exemption. The trust fund is not subject to the cumbersome Estate Tax while when the beneficiaries receive the policy money it is supplemented with this tax. Again there are pros and cons associated with both, it is recommended to take the advise of an attorney before reaching any conclusions.

Bypass Trust is formed by a couple. When either of the spouses die, the estate is transferred to the other and is taxed and when they both die, it is taxed again.

Spendthrift Trust- is a trust that allows you the opportunity to let only those people benefit of the money that you think are worthy enough. In simple terms via this trust you can safeguard funds for the individuals you like, no one else can claim them.

Living Children’s Trust- is the trust to ensure a bright future for your kids. The grantor can add clauses in it like the child will get the funds only when he turns a major etc. and till then the guardian (usually parents of the child) he appoints will take care of the children and the trust fund.

Charitable Trust Funds- the best philanthropic idea to help the destitute throughout your lifetime and even after your death.

Once you make your mind which trust to go for, make some profound thinking as to who will be its beneficiaries and at what time, about the trustee, what exactly are the terms and conditions, the taxes by the State, should the trust be revocable or not and so forth. After all a trust is your lifetime investmentyou need not take any chances!

Mansi aggarwal writes about trust funds. Learn more at http://www.whyatrust.com .

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Gone are the days when cars were included in the list of luxury items. Cars have become a necessity nowadays. With a remarkable increase in the living standard of people, cars have become an inalienable part of our lives.

A car gives you the independence to commute at your own will. There are a large number of people who use cars for different purposes such as Office-goers, businessmen, students, small merchants, doctors, engineers and other professionals etc.

But everyone is not satisfied with the car he/she possesses. Your car may be old and you want to replace it with a new one. Most of us want luxurious cars these days fitted with state of the art technology. But, the problem arises when many of such people willing to buy new cars fall short of finances. Taking a CAR LOAN is a wise option in this case.

A CAR LOAN is specifically meant for your car-buying requirement. You may choose from among a variety of cars available in the market and apply for a car loan accordingly. When you want to avail a car loan you have two options. Either you can avail a secured car loan or an unsecured car loan.

A secured car loan is provided against collateral, which is usually your house. But, in case you don’t have your own house or you don’t want to risk your house, take an unsecured car loan. In a secured car loan you will be charged with low interest rate. The monthly installment will also be small and the repayment duration will be short. Whereas, in case of unsecured car loan the interest rates are a bit higher. The monthly installments are bigger and the repayment period is shorter.

Since availing a secured car loan involves time consuming affairs like valuation of your house and paper work attached with it, more people go for unsecured car loans. This is also because they want to repay their debt in a short span of time and they don’t want to risk their homes. In the UK, there has been a marked increase in the number of people who avail unsecured loans rather than secured loans.

The process for getting a loan has also become easier with the advent of internet. Now, you can get a car loan sitting at home by just filling an online loan application form. You no more need to run after brokers or visit finance companies.

About The Author :
The author is a business writer specializing in finance and credit products and has written authoritative articles on the finance industry. He has done his masters in Business Administration and is currently assisting Ask4Loan as a finance specialist.
For more information please visit at:http://www.ask4loan.co.uk

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2006 is another strong year for dividends. For the third year in a row, a growing number of companies have either increased their dividends or begun paying dividends. In addition, more investors are paying attention to the solid companies that are capable of paying dividends. That is a big change from the late-1990s, when investors by and large shunned yields and many companies refrained from paying them, so that stock market yields in the U.S. plunged to unprecedented lows. History shows, though, that over longer periods of time dividends have always been an essential component of total return, regardless of which direction the market has headed. Between 1926 and 2004, dividends accounted for roughly 40% of the average annual return of the U.S. stock market.

Another impetus for the dividend resurgence, of course, has been the Jobs & Growth Tax Relief Reconciliation Act of 2003, which lowered the maximum tax rate on long-term capital gains and qualified dividends to 15%. With a more level playing field between the taxation of capital gains and dividends, companies can more clearly decide what allocation of capital is best for shareholders over the long-term rather than what is more tax-efficient.

There are relatively few individual securities that provide a high current yield and grow their dividends, so the challenge for portfolio managers is to build a portfolio of companies that, as a whole, meet both criteria. That requires in-depth, company-by-company, and increasingly, global research. The search often begins on familiar terrain. Electric utilities, oil and gas companies, real estate investment trusts and banks are classic examples of sectors that have traditionally paid generous dividends and increased them in order to make their stocks appealing to investors.

Our firm continues to recommended equity income funds to clients as core holdings in a diversified portfolio, as a part of their college savings plan or to produce reliable quarterly income in retirement. While these holdings have delivered above average returns for years, it is important to remember that it is not the objective of the funds to beat a stock market index such as the S&P 500. (The S&P 500 consists of 500 stocks representing major US industry sectors.)

It is the objective of the funds to provide an attractive long-term return by pursuing a conservative strategy focused on providing above-average current income and growth of dividends over the years. Although the majority of assets have typically been held in U.S. based companies, the funds have the flexibility to invest anywhere in the world. In the past, the U.S. stocks provided some of the most reliable dividend income in the world. Now, the U.S. is a relatively paltry source of dividend income, and superior yields and dividend growth come from companies based in Europe and Asia. Many of these equity income funds feature low expenses, experienced managers, limited volatility and steady long-term performance.

(Review the prospectus before investing. Past performance is no indication of future results.)

Source: Triump of the Optimists, 101 Years of Global Investment Returns, Dimson-Marsh-Staunton

Rafael O. Velez III is the Managing Director and Registered Principal of Summit Financial Advisors, LLC, based in San Mateo, California. Additional resources and ideas are offered on their Web site, http://www.summit-advisors.com . Please e-mail comments about this article to rafael@summit-advisors.com.

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The term business seems so simple. But, do you know how much efforts are required to start and establish a business. A well-established business showcases the hardship, dedication and capital investment made by an entrepreneur. Are you one of them who want to rule the world and are tired of the orders of your boss? If yes, then it’s great; most of us want the same. But, whenever you evaluate the investment needed, it made you back out from the business plan. No need to despair any long; now you can borrow a secured business loan to secure your business dream.

Business loan come in two main forms - secured business loan and unsecured business loan. Now, you would think why I suggested you secured loan despite of other loan alternatives available. There is a strong reason behind it, I am here to suggest you the best option and that’s what I did. A secured business loan requires a borrower to put collateral against the loan borrowed. Collateral, which a borrower needs to keep, can be in the form of a house, car, savings account or any other property owned by the borrower.

A secured business loan is a package of everything perfect. It offers a loan for a longer term, which can be extended up to 30 years in some cases. A borrower can borrow a secured business loan for a larger amount which can range between

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Index funds are investment funds that attempt to emulate the returns of a specific market sector. They usually focus on a particular market indicator or index. The four best-known broad market indexesDow Jones Industrial Average, NASDAQ, S&P 500 and Russell 2000each have a separate index fund. Even narrow market sectors such as gold, utilities, technology, communications, energy and basic materials all have corresponding index funds. Each index fund is usually constituted from the top funds within its market sector. Individual stocks that make up the index fund come from a random bucket of seasoned, public company stocks.

Index Funds and ETF’sthe Unmanaged Funds

Since 1993, index funds have been closely associated with ETF’s or Exchange Traded Funds. ETF’s possess high liquidity and can be traded on the markets like common stocks. Unlike mutual finds, professional financial managers do not guide index funds or ETF’s. Even with all the technical and fundamental analysis tools as well as all their financial skills, professional fund managers have yet been able to beat the random market or the S&P 500 index consistently. Historically, index funds significantly outperform managed funds.

Top Ten Index Funds (by market capitalization)

 Fund Fund Symbol Exchange Market Sector
 NASDAQ 100 Trust QQQQ XMNS NASDAQ
 SPDRs AMEX SPY AMEX S&P 500
 iShares Russell 2000 IWM AMEX Small Corporations
 Oil Services HOLDRs OIH AMEX Oil
 Energy Select Sector SPDR XLE AMEX Energy
 StreetTRACKS Gold Shares GLD NYSE Gold
 Semiconductor HOLDRs SMH AMEX Computer Hardware
 iShares MSCI Japan Index EWJ NYSE Japan Market
 iShares MSCI Brazil Index EWZ NYSE Brazil Market
 iShares MSCI Emerging Mkts EEM AMEX Growing Foreign Mkts
 

Index Fund Investment Advantages

High LiquidityInvestors can purchase or sell index funds at any time during market hours.

Unmanaged FundsSome investment wizards argue that unmanaged funds are an advantage since historically the performance of managed funds is less than the S&P 500 index.

Reduced Fund ExpenseAn unmanaged fund usually extracts less annual fees from the shareholders income.

Reduced RiskAlthough similar to owning stock, the risk of owning an index fund is spread over many stocks from large, developed corporations. Should one stock within the index take a sudden loss in value, there are many other stocks that also constitute the index still in support. Not all of the investors’ eggs are in one basket.

Reduced AbuseIndex funds are largely immune to market-timing abuses and price manipulations associated with mutual funds.

Sell ShortIndex funds have the flexibility of selling short. This strategy comes into play when investors feel that prices may fall. Index funds can be sold short without being subject to marketing conditions or the up-tick rule of the exchanges.

Margin CapabilityIndex funds can be purchased on margin.

Tax EfficiencyIn many cases index funds incur less tax expenses due to the SEC regulations that govern them. However, if the investor is working through a non-taxable account, the tax efficiency is similar to mutual funds.

Index Fund Investment Disadvantages

CommissionsInvestors must pay broker commissions when purchasing and selling index funds.

ReturnsFor the most part, index funds fail to take advantage of smaller stocks that can produce higher returns.

Index Fund SummaryRisk vs. Reward

Index funds enjoy a low risk factor by spreading the investment among many of the top stocks within a market sector. By not placing all of the “eggs in one basket,” an investor can spread the risk among several of the most respected companies within a given market sector. The rewards an investor can anticipate from investing in an index fund should emulate the market sector’s advance or decline. The largest index fund, NASDAQ (market symbol QQQQ), has a trailing return of 9.15 percent for the past three years ending June 6, 2006. However, the tenth ranked index fund, iShares Emerging Markets (market symbol EEM), shows a return of 32.04 percent for the same period. The most popular index fund does not necessarily mean the most rewarding. Investors should research the market sector for each index fund they plan to pursue as an investment.

Copyright 2006 Barry Preusz

More information about index fund investing or exchange traded funds can be found at http://www.investing-trading-books.com/index.html

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When non-profit organizations aren’t out changing the world, they’re appealing to supporters and the public for donations. Fundraising is a constant challenge for non-profit organizations and it’s not because people don’t want to give the money - it’s because people don’t always know that there’s a need.

Fundraising efforts include direct mailings, advertising, and marketing campaigns. Each of these is costly and there’s no way to guarantee return on investment. Wouldn’t it be nice to be able to gain exposure and elicit donations without having to dip into the coffers? You can - they’re called “editorial placements,” or as we in media relations like to say “free advertising.”

Newspapers and magazines live and die by their content. If people don’t want to read what they’re printing, they’re in trouble. Being able to offer a print publication (or even a broadcast network) with a story that will entertain, educate, or inspires its readers is a challenge, but well worth it if it’s printed.

Which of the following newspaper placements do you think will garner more public response: an ad placed in the “weekender” or “volunteer opportunity” sections describing your organization and asking for donations; or a touching feature story about how the organization is making a difference in the community? The feature story will almost undoubtedly send more people to an organization’s Web site than an ad, and the funny this is that the feature story cost the organization nothing to secure.

Why does the public respond more strongly to a feature than an ad? Because appearing in the media provides instant legitimization. People tend to trust the organizations or people they see in the paper or on TV. If you run a non-profit animal shelter that is featured on the weekend nightly news’ adopt-a-pet segment, chances are the public will think of you first when looking to adopt a pet as opposed to if you simply placed an ad in the Sunday paper every week.

So how do you obtain “free advertising?” By reaching out to the media every chance you get. Smaller organizations that utilize community support can offer personal feature stories on certain overachieving volunteers. The media loves a good “feel good” story: how one volunteer has made such a difference, how a beneficiary of the organization’s services is thriving now, and so on. How did your organization start? Did someone sell their business to establish a women’s shelter? Does a local mother care for homeless animals on her farm? Here are some ideas to help inspire you to develop a story for your organization or cause.

Every person has a story.
Discover the stories behind the people in your organization and make the media aware of them. By “story,” I mean a simple, conversational story - the type you might tell a friend. Pitching a story to the media doesn’t mean you have to write it and offer it in its entirety. When you pitch a story, you simply let your media contact know about it. They’ll decide if it’s a fit and pursue it further.

To get an idea of the kinds of stories the paper and local networks like, spend a few weeks tuning in or scanning the pages. It will be obvious the kinds of things they’re looking for.

Pay close attention to the journalists and reporters who write on topics related to yours. These are the people you are going to want to contact with your story.

Local outlets want local stories, and this can represent multiple opportunities for media coverage. For instance, if the person your story focuses on lives in a town other than where your organization is based, you can pitch the story to both locales.

Let the world know what’s happening.
Hosting or sponsoring an event can garner more attention than a two-line announcement in the calendar section. What is the story surrounding your event? If you’re launching a clothing drive for professional attire to help women get jobs, highlight a success story, such as a woman associated with your organization who overcame hardships and landed a great job that changed her life. If you’re hosting a casual fun-day dog show for kids to benefit a local animal shelter, find a pet owner who plans to enter his or her adopted shelter dog.

Even your fundraising events can be promoted through editorial placements. You don’t have to have a high-profile MC or a gala to make the news. If this is an annual event, how do you expect to surpass last year’s donations? How were the funds used? If they built a library or added a wing to a senior center, what’s the story behind that?

Announce Everything
Organizations in large cities face direct competition for donations and media coverage. To help improve your chances of media attention, do everything you can to stay in the news (or at least in the minds of the news writers in your area). Is there a staffing change or new hire (a positive one)? Announce it. If you’ve added a service to your organization, announce it. In sales and marketing, a consumer needs to hear about a product seven times before he or she will buy it, on average. The same is true for donations to non-profits. The more often the public sees your organization in print or hears about it on the radio or on television, the more likely they will be to consider donating. Keep that in mind the next time you’ve got news to share!

Media relations is about building relationships and having an idea of what the public wants. It’s not as complicated as it may seem, after all, you are the public. What do you want to read? What would be interesting to you? Talk to your co-workers and friends and find out their opinions. Identify the media people in your area who cover the types of things you and your organization do and begin to build a relationship. Before you know it, you may have them calling you for a story.

Drew Gerber is Co-creator of Press Kit 24/7(http://www.PressKit247.com), an online press kit technology. In addition to helping non-profits and small businesses manage their own media relations through technology, Gerber is Co-Owner of Wasabi Publicity, Inc., a PR firm representing causes, nonprofits, and businesses that make a difference. An expert in the art of listening and in building relationships, Gerber can be reached at Drew@publicityresults.com.

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