Graduating With A PhD - No Longer Guarantees You A Job

 (Image credit: Getty Images via @daylife)

Watch out college students seeking PhDs, your degree no longer guarantees you a job. Even the benefits of multiple degrees won't put a paycheck in your hands. Most likely you may soon be on food stamps. The number of PhD's on food stamps has more than tripled between 2007 and 2010 to 33,655, according to an Urban Institute analysis cited by the Chronicle of Higher Education. The number of graduates on food stamps and other forms of aid, from masters programs, has almost tripled during the same period to 292,029 according to the same analysis.

Overall, the number of Americans on food stamps rose 43 percent over the past three years to 46.3 million Americans as of February 2012, according to the Department of Agriculture.

College graduates with law degrees are seeking other lower paying jobs because law firms are just not hiring. Even tenured college faculty positions are being cut back in favor of lower paying adjunct faculty positions.

Between cut backs in state and private job markets and a down economy more than 5,057 janitors jobs are filled by PhDs degree graduates, looking for work.

Which States Have The Most People On Food Stamps?

1. Mississippi:

Percentage of Population on Food Stamps: 20.7 percent

Annual Change in Food Stamps from 2010: 8.4 percent

2010 Total State Population: 2,967,297

2. Oregon:

Percentage of Population on Food Stamps: 20.1 percent

Annual Change in Food Stamps from 2010: 9.6 percent

2010 Total State Population: 3,831,074

3. Tennessee:

Percentage of Population on Food Stamps: 19.8 percent

Annual Change in Food Stamps from 2010: 17.9 percent

2010 Total State Population: 6.2 million

4. New Mexico:

Percentage of Population on Food Stamps: 19.8 percent

Annual Change in Food Stamps from 2010: 17.9 percent

2010 Total State Population: 2,059,179

5. Michigan:

Percentage of Population on Food Stamps: 19.7 percent

Annual Change in Food Stamps from 2010: 11.4 percent

2010 Total State Population: 9,883,640

6. Louisiana:

Percentage of Population on Food Stamps: 19.2 percent

Annual Change in Food Stamps from 2010: 7.5 percent

2010 Total State Population: 4,533,372

7. Kentucky:

Percentage of Population on Food Stamps: 18.8 percent

Annual Change in Food Stamps from 2010: 5.9 percent

2010 Total State Population: 4,339,367

8. West Virginia:

Percentage of Population on Food Stamps: 18.7 percent

Annual Change in Food Stamps from 2010: 2.4 percent

2010 Total State Population: 1,852,994

9. Maine:

Percentage of Population on Food Stamps: 18.6 percent

Annual Change in Food Stamps from 2010: 8 percent

2010 Total State Population: 1,328,361

10. South Carolina:

Percentage of Population on Food Stamps: 18.2 percent

Annual Change in Food Stamps from 2010: 7.1 percent

2010 Total State Population: 4,625,364

Food Stamp Assistance Program Data

According to the USDA, we are approaching 50,000,000 people using the food stamp programs benefits. This assistance came at a cost of $71,813,402,544 for FY2011.

Learn The Stock Market Without Losing Your Money

This is a Sponsored post written by me on behalf of Smart Stocks. All opinions are 100% mine.

 

The stock market is a fascinating place to many people because the lure of making a quick fortune. Yet in reality the majority lose most of their money before they even catch on how the market functions and how difficult it is to show a positive return. If there were some way to get some hands on training before jumping in with real money. The website that does that is called Smartstocks.com, there they have a virtual stock market game.

 

On this virtual stock market you can buy and sell stocks just like at the real stock market. Here you buy and sell real companies and you're given $1,000,000 to get you started. As in the real market your virtual portfolio rises and falls as if you own the actual stocks.

 

As your learning to invest and develop trading strategies you are not alone. There are many other investors using the virtual trading game. They form groups where they discuss investing and you can join the groups to swap trading war stories. You will find others there, like yourself, who are trying to hone their trading skills. Already there are many trading groups of friends and classmates discussing the stock market. Many colleges and business schools are using Smartstocks.com to learn the basics and get some hands on training. 

 

Smartstocks.com ranks all investors and keeps track of who is doing the best. They are ranked by groups, your own or others. You can see the top 100 investors or the bottom 100. When checking out the rankings of others, a little competition starts and it makes it all the more interesting.

 

I signed up for a free account and did some stock trading. The interface is easy to navigate and very easy for the new investor to use. Smartstocks.com is keeping track of my portfolio and showing me my gains and loses daily. I haven't spent all of my million dollars yet because I'm still looking for some bargains. That's my trading strategy and trying it out in a virtual stock market takes away all the stress and leaves only the fun. 

 

For the beginner, the stock market can be confusing, Smartstocks.com makes learning easy and they even have interesting videos teaching core concepts. 

Baby Boomers Spending More Cash On Their Family, Than On Their Own Future

 (Photo credit: Tax Credits)In a study, released today by Ameriprise Financial, 93% of Baby Boomers have provided financial support to their adult children and 58% have assisted their aging parents.

This is a subject that I can relate to and confirm in my own life. I have parents in their 80's who do not suffer financially or health wise, thank God. But I do have the adult children side of the problem. With three in college, thankfully almost done, it has been a strain on our finances. As the study confirms the casualty of this financial help is my own retirement plans.

My income has suffered, along with many others, because of our country's economic problems. This left us scrimping and budgeting like never before. We find it difficult to save for retirement at a reasonable rate. It will definitely effect us when we are in retirement.

The study also reveals, in 2007, when the original Money Across Generations study was conducted, 44% of boomers claimed they were trying to grow their savings. Now only one in four (24%) say they’re putting away money for the future and just as many (24%) report simply trying to maintain what they have.

Many boomers have to assist their parents financially. More than half (58%) report assisting their aging parents in some way, including helping them purchase groceries (22%) or pay medical (15%) and utility bills (14%).

No one can ever say Boomers are not generous people. The Money Across Generations study says most boomers surveyed (93%) say they have provided some kind of support to their adult children. A majority have helped them pay for college tuition or loans (71%) or helped them buy a car (53%). Many are also helping their kids pay for car and health insurance, as well as cover basic expenses like rent, utility and car payments.

Impact on their retirement goals

Only 10% of boomers admit that helping their parents has slowed down their retirement savings, while one-third (34%) feel the same about the support they’ve provided their adult children.

If the Boomers aren't digging into their retirement accounts, then where are they getting this cash to help their families? Most say they are just using their income and normal cash flow. Unfortunately, they are short changing their own retirement savings plans which will only come back to bite them when they are well into their retirement.

But the problem for many boomers is that they may not have a choice in helping their families. Health care costs for their aging parents are on the rise and what child would turn down a parents request for help.

During this time of year when many college students are graduating they are finding a shortage of jobs. This is forcing many of our children to come home. With no means of support, mom and dad have to step up with financial support and even help paying back college loan debt.

Boomers are generous and do not mind helping

Despite uncertainty around meeting their own financial goals, a majority of boomers (86%) say that if they had to do it again, they would still support their adult children financially. Meanwhile, 20% express guilt about not being able to provide financial assistance to their adult children who currently need it.

What's a parent to do? Is it our job to offer unconditional financial support which can devastate our own goals and plans? It's hard to say no to a family members request for help. Part of any discussion of financial need is first the boomer should talk openly about how any financial help would effect the boomer's plans and goals. By putting all the cards on the table the party in need of help may learn their request will cause negative repercussions down the line for the other party. Openness is the key to any for any financial discussion.

Link to original discussion at Ameriprise.com

Baby Boomers Dole Out Cash to Family Members Despite Uncertainty About Their Own Financial Future

For Many 67 Is The New 65 When It Comes To Retirement

A new poll By Gallup has found 26 percent of people expect to retire before age 65, with 27 percent expecting to retire at age 65 and 39 percent after age 65.

The percentage that expects to retire after age 65 was up from 21 percent in 2002 and 12 percent in 1995. 

The Gallup poll found an increase in the average age at which retirees actually retired -- from age 57 in 1991 to age 60 today. The average retirement age first reached 60 in 2004 and has generally held there since.

That average should increase in future years if current non-retirees delay retirement, as they say they will.

The younger non-retirees were more optimistic about being able to retire at an earlier age than those closer to retirement. Those currently age 40 and under expect to retire at age 65, compared with an expected retirement age of 68 for those 40 and older

The survey also indicated a new low of 38 percent of non-retirees who said they will have enough money to live comfortably in retirement, down slightly from 42 percent last year and 59 percent in 2002.


It's easy to conclude that the dream of retirement is going to stay just a dream for many. The majority of retiree's  in their 60's, 70's, and 80's will continue to be employed out of necessity.

Korean Baby Boomers In Worse Shape Than American Counterparts

retirement (Photo credit: 401K)

A lot has been said about growing government and household debt and its risks. In a Bank of Korea study it was found that Koreans age 50 and up are responsible for fifty percent of all consumer debt.

The baby boomer generation, which refers to people born in Korea between 1955 and 1963, is falling into the poverty trap of old age. With a people that prides itself on strong family bonds, the 50-somethings are the most squeezed financially because they have to support both their parents and children.

The Bank of Korea study reaffirms the troubles confronting the retiring baby boomer. Most of them require help because of falling home prices or those that need loans to start their own businesses in the latter years of life.

Like most retirees, Koreans struggle to work longer. People with doctoral degrees and former managers at large firms, now stand in line to work as supermarket cashiers, that pay $800 a month.

Studies indicate Koreans retire at 54 years old on the average, but work until 71 years. Little wonder the nation’s notorious old-age poverty rate of 45.1 percent is more than three times higher than the world average of 13.5 percent. (In the United States the poverty rate of the elderly is at 10 percent.) If nothing is done, the baby boomer problem will provide an added source of inter-generational conflict, adding to the unemployed youth problems in Korea.

To their credit, the government isn't ignoring the situation, but it has fallen far short of solving the problem.

The Korean government has encouraged people to work longer and take a more active roll in their retirement financial needs. These are meaningful steps, but fall far short of a fundamental remedy, which is raising the retirement age. The time has long pasted for Korea to gradually extend its current age limit of 55-58 to 60-65, as is the case in Japan and many European countries.

Businesses, particularly large companies, are the strongest opponents to a prolonged working age, mentioning the high jobless rate among the young. "You are taking away the jobs of your children,” they say. But labor experts find little direct relationship between retirement age extension and the youth unemployment rate, as most companies do not fill the void left by retirees with fresh workers. These are two different employment issues to be tackled separately.

This is the first Korean generation that supported their parents but do not expect similar services from their children. Koreans and their government are facing the same kinds of retirement funding problems that we in the U.S. face. Koreans face an unrealistic reliance on the governments efforts to supplement everyone's retirement. It's interesting that the Koreans are just as unprepared for retirement as Americans are.

Prepaid Card Use Is On The Rise [Infographic]

For most people the checking and savings accounts that the banking industry provides for us is sufficient. But for a small and ever growing percentage of Americans it doesn't work. For people with a steady income and an ability to maintain a subjective balance, the banking system provides a decent product. For some it just doesn't work. Enter prepaid cards.

Prepaid cards allow the unbanked to have a way to participate in the banking systems requirement for plastic cards. It also allows people to have an amount of money saved that is easy to access through ATM's. While there are still banks that provide a free checking accounts, if you follow their rules, the prepaid card user enjoys no such thing. The unbanked is subject to a slew of fees, which are mostly excessive.

The infographic below demonstrates the statistics of a growing use of prepaid cards.

Infographic courtesy of  caxtonfx.com

Debt Relief Options in Canada

Many consumers have spent time in recent weeks and months researching different debt relief options available to them in Canada. Credit card debt is among the biggest challenges people face with their budgets today. High account balances create high monthly payments. This is coupled with high interest rates, which make those high monthly payments fairly ineffective at reducing debt balances quickly. Different debt programs are available to help consumers more quickly eliminate debt. However, before choosing a debt program, consumers should take time to explore these options in detail.

Two Main Types of Relief Options
There are two main types of debt programs available to assist consumers with their financial situation today. These include debt consolidation loans and debt settlement. Through a consolidation loan, all credit card debt is refinanced into a single loan. No debt is eliminated through the refinance process, but the new loan is structured to provide faster repayment results. Credit cards are difficult to pay off because they typically have a high interest rate as well as a revolving term. Most consolidations loans have a lower interest rate and a fixed term, which allows account balances to be paid off within a few years. The other option to consider is debt settlement. This solution can create an immediate reduction in debt balances. Through this process, a consumer first must provide a lump sum of cash to be used as a negotiation tool. A professional debt negotiator contacts creditors to request a reduction in account balances, and the lump sum of cash is used as an incentive for them to agree to a balance reduction. If they agree to reduce the balance, they will receive a portion of that lump sum for immediate repayment of some of the debt.

Which Relief Option Is Best?
The two options are quite different, but both can have significant and beneficial results on a consumer's financial situation. Consolidation loans may require a consumer to have good credit scores initially, so this may be more suitable for a consumer who has managed to pay most bills on time despite struggling with debt. Debt settlement, on the other hand, does not require a consumer to have a certain credit score. It is more suitable for those whose credit has already been affected by their debt situation. Further, a lump sum of cash is necessary for this strategy to be successful, so a consumer will need access to cash either through equity in a home, by saving for it or through another option. There is no solution that is best for everyone, so a consumer will need to review the options and choose the solution that is right for him or her.

Estimating the Results
Consumers can utilize a debt calculator to estimate monthly payments with each solution. This can help a consumer to determine which relief option is more affordable. Further, these calculators can help a consumer to determine the results of each program and see how quickly debt may be paid off. Using a calculator can help a consumer to determine which solution may be best. 

It can be difficult for a consumer to pay high account balances off on his or her own. These different relief options are available to make repaying debt and becoming debt free a faster and easier goal to accomplish.

How Credit Cards Cost Us More Money

 (Photo credit: Wikipedia)

Some of us grew up in the days before credit cards were terribly prevalent. Forty years ago, you might have had a department store credit card, or perhaps a credit card for a gas station. Visa and MasterCard were around, but they didn’t have the kind of widespread acceptance they do today.

While the days of cash may be dwindling, some new research is shedding light on just how this shift has affected consumers. The method we choose to use for payment has a significant impact on what we choose to buy. Some new research from Professors Promothesh Chatterjee and Randall Rose of University of Kansas and University of South Carolina respectively suggests that this impact is significant, and even affects how we remember a purchase after the fact.

Cash means a focus on cost

In the study, customers who were primed to use cash for a given purchase came out as much more concerned about cost than they were concerned about benefits. For example, here are some of the observations in the study

• Cash customers responded more quickly to cost-related words.
• Cash customers had greater recall of cost-related aspects after the fact.
• Cash customers exhibited recall problems with benefit-related words.
• Cash customers often choose less expensive products, even those with inferior benefits.
• Cash customers were more likely to identify a wide range of cost factors beyond just price, such as installation or delivery costs, warranty costs, and even delivery time.
• Cash customers experienced more of the pain of payment. Every time a transaction takes place, money goes away while the consumer watches.

As you might expect, the opposite is often true when it comes to those customers who use credit cards.

Credit cards mean a focus on benefits

Those customers who were primed to use credit cards weren’t nearly as focused on costs as cash customers. Here are some observations from the study about credit card customers:

• Credit card customers responded more quickly to benefit-related words.
• Credit card customers had greater recall of cost-related aspects after the fact.
• Credit card customers exhibited recall problems with cost-related words.
• Credit card customers often chose indulgent or high-image products.
• Credit card customers made more cost errors than cash customers.
• Credit card customers experienced less pain of payment, because the process of consumption is decoupled from the payment process.

What this means, at least in part, is that customers using credit cards came out of the study as being much less concerned with cost than they were with what the given product could do for them.

Choosing the right payment method at the register

What does this mean for older Americans? Really, it reinforces something we probably already know: using credit cards can cost us more money. This is true not only because of the interest or fees we often face with credit cards, but because of the way paying with a credit card affects our choices as consumers.

If you want to make smart financial choices, let payment method be a factor in how you shop.

David Rodwell is an experienced writer who covers everything from business to personal finance. Check out his site CreditCardProcessing.net for similar articles.

When Mutual Fund Management Changes Is It Time To Sell?

Asset Allocation on Wikibook (Photo credit: Wikipedia)

Mutual funds come in many different types and styles. With over 5,000 different mutual funds out there, knowing the right one to choose is difficult. When you finally make the choice of a mutual fund you have the concern of when will be a time to sell it. What percentage of decline are able to endure. On the upside, when do you sell it to take profits. It's can be confusing.

Recently, Howard B. Schow, 84, a well-regarded manager of Vanguard mutual funds such as the $30.1-billion Vanguard Primecap, died of natural causes April 8 at Huntington Hospital in Pasadena. Schow's years at Vanguard started when he landed the contract with Vanguard to run its new Primecap fund. Schow was at Vanguard and work along side Jack Bogle for many years.

Schow's management style cited the importance of patience to go along with savvy stock picking. "We don't go for 20% or 30% gains," Schow said. "We go for triples, quadruples, octuples. But that takes years." "A lot of doing well is drudgery," he added. These quotes come from a rare 1994 interview with Forbes magazine, the publicity-averse Schow cited the importance of patience to go along with savvy stock picking.

Now that Schow's influence on the company is gone, how will this affect the performance of the mutual fund if any. Should the investor jump ship or hang in there and see what happens?

According to Forbes.com, there are eight reasons to dump a mutual fund. Forbes advice is that there does come a time when selling is a good idea because even though buy and hold is recommended, it's not forever.

Portfolio Rebalancing.
In your mutual fund portfolio you have an asset allocation that conforms to your risk tolerance and long term investing plans. Some mutual funds do better than others and gain a disproportional percentage of the portfolio. Selling off the gainers and rebalancing the entire portfolio, through purchases and sales, puts your investments back into the asset allocation that your plan calls for.

Mutual Fund Changes.
Here is where Howard B. Schow's passing on can be a reason to sell the investment. Will his investment style continue on now that he is gone? He has been a manager for so long and his day to day influence even to the end could possibly influence the fund for years to come. But eventually his successors will flex their muscles and run things the way the want to, it's inevitable.

Investor Growth.
A novice investor usually starts out investing in mutual funds. They feel other forms of investing like stocks, bonds, real estate, and collectibles is to complicated while mutual funds are relatively simple. As the investor increases in experience, there is an urge to try out other types of investing.

Life Cycle Changes.
While in the accumulation phase, the investors prefers stocks as a big part of the portfolio. But as the investor's needs change they may want less volatility so they move away from equities. The investing goals may change causing a shift out of the market to more fixed and safer investments. Moving to safer products or college savings plans does restructure the portfolio.

Mistakes.
Sometimes you just pick the wrong mutual fund. You may find that the fund is too volatile for their tastes. You could also have too many investments for one type of asset allocation and you want to adjust to simplify your portfolio.

Something Better Comes Along.
This doesn't refer to chasing the high flyer's or fad mutual funds. If you can find an investment that is doing something in a way that is better than what you have now, maybe you should consider moving to it. Finding mutual funds that are doing what you need to have done in the style you need it done in a way that will increase your return and save you money .

Tax Reduction.
Mutual funds held in taxable accounts, might be down substantially from their purchase price. They can be sold to realize capital losses that are used to offset taxable capital gains and thus lower taxes.

Keep in mind the sales charges, short term trading fees and taxes when you want to sell. If any of these factors don't apply then all the better reason to sell.

Google Offering Free Websites For Business Owners

Google wants to help small businesses setup a website and get online. They are doing this by partnering with Intuit's online website building expertise. They will give you your own web address, help you build a great website, and host it completely free for one year.

Google believes that small business is vital to America's economic future. They see that 27.5 million small businesses create two-thirds of all jobs and contribute half of the total U.S. GDP. Nowadays you are invisible to customers if you do not have a website. Google wants to introduce small business to the benefits of the Internet and are willing to give a website away for one year to prove it.

Their "Get Your Business Online" promotion starts at their GYBO.com website. There is a map, you just click on your state and you will link to your states "GYOB" website. Some states do not have their free website offer ready yet. So leave your email and you will be notified when it is.

What is needed to get started?

To get started you need a Google email account. It's easy to get one if you do not have one. Don't worry, they also need your credit card to only establish your identity. They will not charge you for anything. If you already have a domain name then you can use it on your new website. If you don't, you will need to pick one and it will cost you nothing.

How do I edit and build my new site?

You go over to the Intuit login page with you username and password.

(www.intuitwebsites.com) They take you by the hand and walk you through the entire process.

I don't know a thing about building a website?

No problem. The new website comes with 30 days free email support. Plus the website buiding process is dead simple. If you need help after the 30 days you can upgrade to the Business Lite package ($7.99 a month) to receive individual phone support. Once your first month is complete, you'll still have ongoing access to the Intuit Community and Online Help Center.

To get started click on this link GetYourBusinesOnline.com

6 Cheap Places To Retire Abroad

When making plans for retirement many people choose the regular places like Florida, Arizona, or North Carolina. These are great places but you are limiting yourself. Maybe it's time to consider finding a retirement destination abroad.

If you are considering such a dream, you will have to do a whole lot of research. If you are a bit of an adventurer you may find overseas living intriguing. As you do your research you will find many web sites, media outlets, authors, and bloggers who can help you find what's best at a reasonable price.

I have put together a list of a few countries that came up repeatedly, as great places to live.

In the European community there are several places you already know about and a few you would be surprised at as choices.

France.
Here you will find the food and culture center of the world. France was rated as superior in the 2010 International Quality of Life Index. Their health care is also rated as very good. On the downside they do have high taxes, a difficult bureaucracy, and high prices. So it's better to find yourself a place outside the larger cities.

Turkey.
Though on the edge of the European landscape, they consider themselves more Western than Middle Eastern country. Soon to become part of the European Union they are one of the top growing economies in the region. You can find retirement destinations in the mountains or at the seashore. Places like Altinkum Property are well suited for retirement or vacation living.

Italy.
Who could argue about Italy being a great place to retire to. You have the great food, culture, and the Mediterranean weather is very attractive to visitors. The best bargains are in the southern areas and again staying in the country side is going to save you a lot of money. Like most metro areas you will be paying a premium for city life.

In the Central and South American countries you have your pick of warm and tropical destinations.

Mexico.
Being the closest destination to the U.S. and already popular with retirees for its money saving standard of living, Mexico is a great choice. In Mexico, you will find modern and up to date health care near big cities. Many retirement and vacation communities have been providing a relaxing life under a warm sun and tropical weather for many years.

Costa Rica.
A small country in Central America that is already the home to many people that have chosen the laid back life style. It has a good economy and a stable government that encourages the foreign dollar to its shores. Retirement income and real estate profits are untaxed, combine that with lush beaches and country side living, you have a perfect destination.

Panama.
Another small country that wants to attract the foreign investor and retiree. The currency is tied to the U.S. dollar, there are retiree discounts, and favorable tax treatment on income and new homes. Mostly a rural spot with no major metropolitan areas, so traveling for major health care may be necessary. The weather is also warn and tropical.

This is only a short list of all the possible destinations to retire at. You need to consider other obstacles to living abroad like language, government stability, and living standards. These and many other things need to be considered for such a big move. 

Living overseas is going to give you the adventure of your life. It takes a certain mindset to leave you home country and live abroad. Maybe after a while you may become homesick. There is much to consider in living overseas. 

Do your research and take a vacation to your destination and see if it is all you thought it would be. Good Luck.

The High Costs of Life or Death Dental Care (Infographic)

In a country with the best available health care available in the world, there is occurring an epidemic in dental care problems. It seems the increase of emergency room dental visits is due to the fact that people tend to neglect their oral health till it's to late and they are in dire pain. 

This procrastination of dental care not only costs the patient increased pain and discomfort but the costs to treat their problems is ten times higher than going to your local dentist before the trouble occurs.

Let this be the motivation you need to make an appointment to see your family dentist. I realize how expensive the dentist can be but check out this infographic and see what you're in for by neglecting your teeth.

Source: FrugalDad.com

How to Make Money with Your Tax Return [INFOGRAPHIC]

This info graphic shows the magic when you save and invest your money. The trouble with most people is they don't have foresight or the patience to do this. That 55' Led 1080P HD TV feels so much better to buy. The payoff from owning the TV is immediate, the payoff from saving and investing is to far away to make that sacrifice.


This graphic brings home the point that a simple saving strategy pays off so well.

Via: YourLocalSecurity.com

Some Links to add to your tax day fun:

• Resources You Need to Know About Before Filing Your Taxes
• Paying Taxes With A Credit Card Can Be Expensive
• I Can't Pay My Taxes - What Should I Do
• How to Amend Your IRS Tax Return
• Tax Filing Status Is Not Set In Stone
• Does Cancelled Debt Have To Be Reported On My Income Tax?
• How to File for a Tax Extension
• Tax Tips for the Unemployed

What Is The VIX Index and What Does It Mean To Investors?

The Chicago Board Options Exchange (CBOE) introduced the CBOE Volatility Index or Vix Index in 1993. It has become the benchmark for stock market volatility and is also refered to as the "investor fear index".

The VIX measures the market expectation of 30-day near term volatility conveyed by stock market option prices. VIX is based on real time option prices which reflects the investors view of future stock market volatility. 

In times of high financial stress, often during hard market declines, option prices as well as the VIX tends to rise. The more intense the fear, the higher the VIX level. As market and investor fear subsides, option prices begin to decline, which causes the VIX to decline. 

This is why the VIX is called the "investor fear index". But also keep in mind that there are variations to this rule. 

It is important to remember that the VIX reputation as the "fear index", doesn't necessarily mean the market is bearish for stocks. But instead the VIX is a measure of "perceived" volatility in either direction, including the upside.


 




An investor can use the VIX to measure volatility. A high VIX corresponds to a volatile market which usually means one headed downward. Also a low Vix usually indicates a stable and usually rising market.

VIX is more than a fear gauge. It's a risk power tool.

Turn Volatility to Your Advantage with CBOE VIX Options and Futures 

With its strong negative correlation to the broad market, VIX provides an effective way to get diversification and protection when you need it most. No wonder investors are trading VIX options and futures in record numbers.

Manage risk, diversify your portfolio and leverage volatility with VIX options and futures, offered only at CBOE and CBOE Futures Exchange.

Betterment.com Review Update: $25 Bonus, Asset Allocation, Fees

Since my previous review of Betterment.com there has been some changes made for the better. What still hasn't changed is the simple process of application, choosing investments, and getting started.

The hardest part of investing is taking that first step. Most people never start investing because they lack the knowledge of where to invest. Today we have so many different investment companies competing for our money. Their advertising can sometimes be confusing and contradictory. Even if you do manage to sign up for an account then you are faced with the choice of what to invest in. All these concerns have been addressed and solved by Betterment.com.

Application

The application process allows you to get started entirely online. They say you can the process only takes 60 seconds. It takes a little longer but couldn't be easier. Enter your personal information, they verify it through information on your credit report. You then enter your bank information so they can link it to set up quick deposit and withdrawls.

Asset Allocation

After answering a few simple questions Betterment.com offers a asset allocation suggestion based on my answers, goals and age. They gave me an allocation of 50% stocks/50% bonds.


Their current breakdown of stocks and bond portions are:

Stock Portion Only

• 25% Vanguard Total Stock Market (VTI)
• 25% iShares S&P 500 Value (IVE)
• 25% Vanguard Europe Pacific (VEA)
• 10% Vanguard Emerging Markets (VWO)
• 8% iShares Russell Midcap Value (IWS)
• 7% iShares Russell 2000 Value (IWN)

Bond Portion Only

• 50% iShares Barclays TIPS Bond ETF (TIP)
• 50% iShares Lehman 1-3 Year Treasury Bond ETF (SHY)

I like it that they are investing with passive index ETFs that are very low in fees. The weighted expense ratio of all the stock ETFs together is 0.16%. The weighted expense ratio of all the bond ETFs together is 0.18%.

What's all this going to cost me? (fees)

When I last reviewed Betterment.com they had a 0.9% annual fee for all accounts with balances up to $25,000. There were no monthly fees, no maintenance fees, no minimum requirements, and no commission charged for any trades. In March, their fee schedule has been changed to lower fees for most users, but also raised some fees for certain smaller accounts.

Here is the new fee schedule:

If your just getting started there is a requirement to have $100 per month added to your account. If you do not they charge a $3 monthly fee. This should not be a problem if you plan on making the $100 minimum deposit every month. If you are not ready to at least invest $100/month do not sign up for this program. 

Remember that to open an account and receive the $25 bonus you must have an initial deposit of $250. Add that to the monthly deposit of $100, at the end of the year your balance should be $1,450. With a 0.35% annual fee you will be paying about $5 of annual fees. Compare that to a discount brokerage that charges from $9.99/trade to $3.95/trade. Using Betterment,com keeps fees low and more money working for you.

$25 Bonus Offer For New Accounts

The $25 bonus offer for opening a new account, with a $250 initial deposit is a sweet way to try the process out.

4 Reasons a Business Should Pay Their Bills On Time

When a business is having good cash flow the subject of paying bills late never comes up. The time when business is slow and the money is just not there to pay bills, is the time when mistakes get made.

Why should a business pay their bills on time? Paying slow allows you to keep more of your money for your own use. Paying early or on time seems a loss of opportunity. I have known many business men who believe paying one month behind is a good way to keep their own money in their pocket for a little longer. This attitude is totally wrong and not only does damage to your businesses reputation but also the reputation of the business owner.

1. Reputation.
If the reputation of your business means anything to you there is no quicker way to malign it than by not paying your bills properly. Paying late or not at all gives you time to use the money for other things. It also damages your credibility as a trusted business owner. It damages your reputation in the community and gives your company a reputation of being a bad payer.

2. Saving Money.
Many vendors give a discount when paying your bills early. It may be even possible to negotiate an even deeper discount from a supplier on larger and future production needs. Establishing you good paying record shows the vendor you can be trusted. This relationship could come in handy for future discounts and patience when one month you can't pay your bill.

3. Building Necessary Goodwill.
Having the reputation of being a company who doesn't dodge it's bills, shows people you can be trusted. This trust translates into sales. No one will recommend a company who is a deadbeat when it comes to paying bills. Your future customers not only come from word of mouth from you customers, they also come from recommendations of the vendors you buy from.

Everyone you write a check to is part of your marketing team. From your reputation of paying your vendors, landlords, insurance brokers, and even the people that clean your office, they all can either recommend you to future customers or just shoot you down. Your reputation with these people is critical.

4. Your Credit Rating.
When you are a new business, a companies credit rating doesn't really exist yet. The company owners are using there own personal credit rating to stand up for the debt burden of the company. As the company grows and the need to expand calls for a larger sum of money to borrow, the credit rating and reputation of the company is vital. Where will the lender go to establish your ability to pay the loan back. Will you want the bank to talk to your vendors or will you be afraid of what they will tell your banker.

Your reputation and rank in the community is something that takes years to build but only an instance to destroy. It's an asset just as important as any other asset that your company owns.

These and many other great business ideas are in Bill Weirsma's book The Power of Professionalism: The Seven Mind-Sets that Drive Performance and Build Trust

Heritage and Service Still Exist In Financial Services

In today's financial environment, people find it hard to know who they can trust with their hard earned money. Many financial institutions we trusted all our lives, have let us down. Many people have lost faith and do not know who to trust. Finding a company, for your financial and investing needs can still be done, but you must be able to cut through the hype and find the truth of what a companies core really is.

One financial company that did not let its customers down was Perpetual, one of Australia's oldest financial institutions. They have been helping their customers manage and invest their money for over 120 years. They are not only a wealth manager but a leader in the trustee business. 

During Perpetuals long history they have been a leader in philanthropy. When Australians form charitable endowments, Perpetual is there to manage these funds and act as trustees over them. Today, these funds are helping sustain the efforts of charitable and non-profit organizations. Perpetual believes so much in philanthropy they have established their own in house "Perpetual Foundation" to help improve the life of others.

Perpetual also provides many types of investment products, financial advice, and corporate services to individuals, families, financial advisers, and organizations. Fitting the customer to the right investing style comes from knowing that customer well. Providing trustee and fiduciary services to help people protect and manage assets, is the goal of Perpetual.

There are still companies that believe in serving their customers. There are still companies that deserve your trust. Perpetual's experienced and award winning team manages over $200 billion dollars of clients money. In today's world, finding a company that has a heritage and core of serving the customer's needs is rare. Perpetual is one company that has the trust of so many, why look anywhere else?

Thrifty Tips For Those 50 Plus

Time and money seem to become more valuable as we mature. Many learn with age and experience that it’s never too late to try something new. With that in mind, enjoy these thrifty tips intended to help those of you who are 50 plus to shop smarter and save more money:

It doesn’t hurt to ask for a discount. While you are shopping in a store or placing an order over the phone, inquire about whether a senior discount is offered and ask what the age requirement is. Because there are so many definitions for “senior,” the threshold for receiving a discount can be as young as 50. 

It’s up to stores and companies to decide whether or not and what age they offer senior discounts to, but it can only benefit you to ask. Keep in mind that some chain retail stores’ and restaurants’ senior discounts can vary by region. You may be asked to provide identification to verify your age or show that you belong to a group such as AARP.

• Embrace online shopping. Sure, some say that computers should be left to the younger generations, but if you are ready this blog post, chances are you are pretty tech-savvy. For anyone who feels computer challenged, iPads and other similar devices make it very easy to use the Internet these days.
• Shopping online offers many big benefits over going to the store:

• Coupons. Search online to find them for free. You can get coupon codes online in just a few clicks.

• Cash Back. Shop through a savings website to earn a percentage of your purchase in a free account. You can often get this in addition to using a coupon. If you want even more savings, use a rewards credit card to accumulate points or earn more cash back.

• Convenience. For anyone experiencing difficulty with mobility or in need of assistance to go to drive, read labels or carry shopping bags, online shopping makes life easier. Even those who are perfectly spry can appreciate not needing to leave your home, lug your purchases to and from the store or be limited to a store’s location and hours, which may not necessarily work for you.

• Even if you do not plan to make your purchases online, you can still use the Internet to shop smarter. In addition to researching senior discounts, try:

• Looking at the weekly ads of stores near you to identify sales on what you need to buy. You can find ads online anytime, without needing the Sunday newspaper.

• Searching online for free printable coupons for retail, grocery and restaurants. You can print them out and leave them in your car so you are prepared.

By Jon Lal, founder of coupons & Cash Back website BeFrugal.com, which offers online coupons in addition to free Cash Back at 2000+ online stores. When you sign up for a free Cash Back account for a limited time you can get a $10 bonus in addition to great savings offers. Join now!

How Sovereign Debt Differs from Private Debt

Sovereign debt differs from private-sector debt, or debt incurred by households and corporations, for two reasons according to the Congressional Research Service report "Sovereign Debt in Advanced Economies: Overview and Issues for Congress".

debt (Photo credit: Alan Cleaver)

First, there is no international bankruptcy court that can enforce debt contracts between private investors and sovereign governments. In the domestic context, private borrowers cannot simply refuse to repay debts to creditors. Domestic laws and courts can force debtors to turn over existing assets to creditors or put the debtor through bankruptcy proceedings, during which the borrower liquidates its assets and turns them over to the creditor. In the international context, by contrast, there are no internationally accepted laws or bankruptcy courts to provide creditors recourse against governments that refuse to repay their debts. 

Debt contracts between governments and private creditors often include provisions that stipulate what jurisdiction’s law is to be applied in the event of a dispute about the contract. 

However, there is no way to force a government that has defaulted on its debt to abide by another country’s court ruling that it must repay the loan. Proposals for creating internationally accepted bankruptcy proceedings and regulations, possibly to be overseen by the IMF, have not been fruitful.

A second reason why public debt differs from some private debt contracts is that sovereign debt is “unsecured,” or not backed by collateral. Governments cannot credibly commit to turn over assets if they are unable to repay their debts, because, again, there is no international authority to compel them do to so. 

This contrasts with the private sector, where debt contracts are frequently backed by collateral. For example, property serves as collateral for mortgages in most countries. Some private-sector debt is not backed by collateral. Credit card debt, for example, is unsecured.

This is not to say that public debt is inherently more risky than private debt. In fact, some credit rating agencies use the credit rating of the sovereign as an upper limit for the ratings that domestic borrowers in that country can receive. 

However, the strict use of a sovereign credit rating ceiling for domestic borrowers has waned in recent years. Sovereign debt may be less risky than private-sector debt because governments have the power of taxation to raise money in order to service debt, unlike private borrowers

Vacation Travel Clubs Can Save You Money

Travel Guides (Photo credit: Vanessa (EY))

With the kids school year almost over and the vacation season around the corner, people are planning vacations. The family vacation is something we look forward to every year. But this year, even though money is in short supply, many people are still going to take that vacation so they are looking for ways to save money on their holiday. One way to save money is with a vacation travel club.

Most people are aware of vacation timeshare resorts but many have not heard of vacation travel clubs. A vacation travel club is group of business owners and corporations in the travel industry who join together to create wholesale travel packages. Many hotels, airlines, and vacation destinations use the travel clubs to offer discounts to their members.

If you have read any travel club reviews you know why they are so popular. Vacation travel clubs have many benefits that make it a good idea to join. Many clubs include several free trips per year. They offer seasonal and monthly specials to their members. There is usually a website, of the club, that offers chat rooms, forums and monthly newsletters explaining and keeping you up to date to a calendar of events. You aren't restricted to a small amount of destinations or trip options. Many clubs offer vacations to 1,000's of places. You receive discounts on car rental, hotels, airlines, and discounts on food and drink. Discounts can be up to 75% of standard vacation costs.

When you belong to a vacation travel club, you are given rewards for using the club. The more you use the clubs offers, the more free vacation rewards you receive. Keep in mind you won't receive free packages on every trip, but you will always have the deepest discounts offered to you.

Remember, before you join a vacation travel club, you should do the research and make sure they are legitimate and free form impropriety. Contact the Better Business Bureau, phone the company , and see what other vacation travel clubs members have to say about their experiences with the club.

Bon Voyage.

This Summer Will You Vacation Or Staycation?

Travel Guides (Photo credit: Vanessa (EY))

Will the rising costs of fuel keep you at home during the summer holiday season? According to a Times-Herald survey, many families will not be cutting back there vacation plans. Some people are feeling the pinch from extraordinary high fuel prices and have already canceled their summer holiday plans. But the bulk of people are adjusting their plans and are looking for cheap holidays.

Just how much does the cost of fuel affect a families decision to go on vacation or not? From the average high, to the latest top price, the difference is only 10 percent. This increase amounts to only $10 per tank of gas. If you fuel up twice the cost is only $20. Compare this to the rising costs of airfare and hotel stays which have much higher price increases. Though the prices of many other parts of a vacation are rising more rapidly, fuel costs should be the least of your worries.

According to the Times-Herald survey, 63 percent of families plan to spend the same amount or more on travel in 2012 as they did in 2011.

For those that feel the cost of fuel is to high to travel, they are making plans to stay home or only travel very short distances for their holiday. They are finding that they have many local destinations that suit them just fine and fit the bill for a wonderful vacation.

Finding destinations, in your region or state, can offer to you the opportunity for one day vacations or just over night trips. Most of us who travel know more about a vacation destination that is 1000 miles away than one that is only 50 miles from our home. Staying local and traveling to the shore, a lake house, or countryside cabin for a weekend opens up wonderful opportunities we have been missing.

When you are planning your next vacation on a tight budget, why not check out destinations closer to home.

What Are Short Term Loans?

Loans (Photo credit: jferzoco)

Hasn't it happened to all of us, where something has gone wrong like a medical need or a unexpected car repair and we need some cash. In times like this we wished we would have put a little money aside. But according to Consumers Credit Association more than 70 percent of Americans have no savings or way to get some fast cash for an emergency.

The typical short term need is generally between $100 and $1500. But usually the first emergency need is between $300 - $500. The problem with an emergency is you don't have the time to use the regular channels associated with borrowing, be they credit card cash advances or your local banks loan department.

The choice left to you is to try to get a short term loan which is either a payday loan or an installment loan. The time frame for paying back the loan is between 2 to 4 weeks. With it usually being 2 weeks. Because of the convenience and quickness of the loan process be prepared to pay a higher rate of interest. Also be very sure you are going to have the money to pay back these fast cash loans.

Applying for the loan consists of providing basic information. You will then be explained all the fees and what dates the money is to be repaid. Also expect a fee charged by the loan office on top of interest payments. This type of loan is more expensive to the consumer because the lender does not do a credit check and you do not have to provide collateral. The lender bases the loan on the amount the borrower makes at their job.

As with all financial decisions it is important that you understand the seriousness of using these services. Short term loans can help borrowers handle emergencies when caught short of cash but they are not to be used as a way of life. Prepare for the next emergency soon by starting to save some money each week.

How to Apply For a Loan at a Peer To Peer Lender?

Loans (Photo credit: jferzoco)

Peer to peer lending has emerged as a popular option for people seeking financial assistance. While the option of obtaining a loan from a bank or traditional lending institution is still there, peer to peer lending has picked up steam over the past few years. Basically, peer to peer lending is done peer to peer, which means there is no middle man. A person offers money on loan to another without any intermediation from a third party. There are dozens of reputable websites providing peer to peer lending for you. There are other unconventional alternatives such as an open door loan, but you will have to pay the pay day loan charges.

How to Apply for a Loan at a Peer to Peer Lender

The peer to peer lending network is based on individuals providing the cash for lending. The private investors seek to earn interest on their money by lending it to people in need. A person having issues obtaining a loan from a bank can easily avail the option of a peer to peer loan. The purpose of the loan is negligible. What this means is that the borrower does not have to go through the red tape banks and lending institutions are known for. The lenders earn a solid return on their investment without indulging in high risk. It is the perfect deal for both. Here are a few tips you can follow for applying for a peer to peer loan.

Have a Good Credit Score

The requirements of a good credit rating aren’t as stringent as they are for banks. This is the benefit of getting an open door loan or a peer to peer loan. If you don’t have the ideal credit rating, you can still obtain the finance you require. To get a peer to peer loan, you need to have a credit score of 660. If you are not at that mark yet, you should try and improve your financial situation before applying for the loan. There are hundreds of websites where you can find information for improving your credit score. Bad credit is unwelcome to peer to peer lenders so don’t even consider that you have a chance to get a loan if your credit score is below 660.

Find the Best Peer to Peer Lending Websites

As mentioned above, there are dozens of peer to peer lending websites. The only issue is that they are not made equal. Some are good but some aren’t. You need to be wary of the websites that don’t have a good reputation. When you explore your options, make sure you only browse the websites that are reputable. Otherwise you are wasting your time. Make a list of three to four websites you prefer and then select the one you think is the best one for you.

Register on the Website

Before applying for a loan, you need to register on the peer to peer lending website. This is a simple process. You only need to provide the information they require. This includes your personal data and a few other relevant points about you. Moreover, you need to specify the amount of money you want to borrow so that interest lenders can locate you easily.

Assess the Offers

After registration, you have to wait for loan offers to come. When you receive a loan offer, make sure you study it in detail. There are many things to consider and the smallest point can make a huge difference in the long run. Typically, the length of a peer to peer loan is 36 months but the websites have different rules. Only accept the loan offer if you are completely satisfied with it. Once approved, you will receive the amount of money you wanted.

Conclusion

These are the few tips and steps you need to follow in order to apply for a loan at a peer to peer lender. Keep in mind that you might not be able to achieve your goal right away. Be patient and browse a number of websites in case you are not happy with the service provided by the first one you select. After all, a peer to peer loan is a better option than having to deal with pay day loan charges.