Forex Trading: Regulation Differences between Germany & UK

The act of trading FOREX (or Devisen in Germany) has exploded in recent years due to faster connection speeds, better technology, ECN's and market makers that pretty much provide anybody with a computer a link to the global financial market.

Thanks to the Electronic Communication Network (ECN) you can live in any country you want and still enjoy the tax or investment benefits of another country. Something to consider, to maximize profits, is paying the lowest amount on your taxes.

Each country has its own set of confusing tax laws, making it even more important to get expert tax help. 

Take for example in the U.K., when paying taxes on capital gains, if you make over a certain amount you are bumped up to the 50% tax rate. Because of this many U.K. residents consider giving up their residence status, to avoid the excessive taxation. Germany has an equivalent rate but it kicks in at a much higher income.

How a country's taxation laws treats Forex earnings, determines your overall success. All countries treat profits as capital gains. They can be long term gains held at least a year or short term gains which are held less than year.

You usually pay less taxes on assets held at least a year but traders don't usually hold their investments that long. The are usually taxed at the short term rate because of all the trading.

A strategy some Forex traders use is trading in a country they do not reside in. If you lived in Germany and traded in the U.K., what would be the tax implications? In Germany it doesn't matter if you trade in country or out of country. When tax time comes your will have to pay your German taxes. 

But if you traded in the U.K. it would be possible to set up off shore accounts and avoid the normal taxes owed. But when you eventually brought the income home, the taxes would have to be paid.

"The UK is a tax haven for people of foreign domicile, even if they are UK resident (residence and domicile being separate legal concepts in the UK), in that they pay no tax on foreign income so long as it is not remitted to the UK."Tax haven - Wikipedia, the free encyclopedia

If you make a living on your trading, it makes sense to have your tax treatment to be the most positive. Many countries have conflicting tax laws and rules for non-residents. These countries offer different levels of financial incentives to attract new business. It would be beneficial to seek out professional tax help to be sure you're maximizing your income.


Forex is one the least known and appreciated forms of earning money. Trading in the foreign currency exchange market can be a profitable and exciting endeavor.

Short Term Money Loans Are Always Expensive - Infographic

A good test of your financial maturity comes when an emergency pops up. The emergency could be a broken water heater or car repair. We know these things or something like these things will eventually happen. Are we prepared for them? Do you have the money put aside in an emergency fund? If not, borrowing the cash is our only solution.

The infographic below shows the costs related to 4 ways a person might fill their short term cash need. They all look expensive. I think a better way would be setting up an emergency fund. Our friend Peter, in the infographic look a little upset. Maybe this time he has learned a lesson and will be better prepared.

Infographic courtesy of  Fastpaydayloansreview.com

“Millionaire Teacher” by Andrew Hallam - Book Review

I have been wanting to read this book for a while now and I so regret I didn't read it sooner. I am very curious when authors from a non-financial background write personal finance books. I wonder what possible secrets they have discovered that all the money gurus and financial planners haven't already come up with.

Andrew Hallam Is an English teacher who currently resides in Singapore. When he was a young man he met a millionaire that bestowed the wisdom of investing to him. The millionaire told him he needed to invest $100 a month in the markets. Andrew balked and said he couldn't afford that amount. The millionaire said it's only $3.33 per day, you spend that much on fries and Cokes every month. Andrew saw the light and 20 years later he is a millionaire.

Andrews Hallam's natural curiosity got the best of him, he caught the bug and learned the right and wrong ways to invest. He has earned that millionaire status not by sitting on his hands but by investing over and over again. A good lesson I wish I could of learned 20 years ago.

"Millionaire Teacher" is much more than a shopping list of things to do to grow wealth. It's a lesson in lifestyle. The lifestyle Andrew Hallam teaches, is what the millionaire's secret actually is. In his "Nine Rules" he lets the secret out. Rule 1 is "Spend Like You Want To Grow Rich. This one rule is the foundation to all that follows in his book. Without it all the fancy investing practices you come up with not get you where you want to be.

I found the book very easy to read with its casual and down to earth style. It's like your having a conversation with a friend. Andrew uses lots of charts and statistics to back up his ideas. What I can relate personally is his use of low expense index stock and bond funds. This investing style is growing more and more popular every day. I like his philosophy of it's hard to beat the market in the long term consistently, so why try to beat them when you can just join them.

His nine rules should be plastered to your wall so you don't forget them. 

Hallam’s 9 Rules of Wealth:

Rule 1 is to spend like you want to grow rich, wasting your money on today's wants postpones your potential wealth growth. So why do it.

Rule 2 is to take advantage of compound interest by starting investing as early in life as possible. Here is the another great rule that you only realize when your to old to do something about it.

Rule 3 he emphasizes the negative impact of high fees and makes the case for low fee index funds.

Rule 4 is to “Conquer the enemy in the mirror.” It looks at the problems of stock-picking and market timing, fear, greed and other emotions that can sabotage investing.

Rule 5 is to build a “responsible portfolio” that includes both stocks and bonds. Here Hallam introduces what he terms the Couch Potato Portfolio.

Rule 6 looks at indexing in the U.S, Canada,and worldwide.

Rule 7 is entitled “Peek inside a pilferer’s playbook.” It looks at common sales practices of financial advisors and brokers. He says to watch those advisors that want to nickel and dime your portfolio.

Rule 8 is “Avoid Seduction,” and looks at the various distractions that some term “financial pornography” — investment newsletters and magazines, junk bonds, gold and hedge funds, which Hallam describes as “the rich stealing from the rich.”

Rule 9 is for those who love to pick their own stocks if “they can’t help themselves.” Hallam’s solution is to stay 90% indexed but to allocate 10% to individual stocks if you find it enjoyable.

Overall I found the book keeping my interest and a lot of fun to read. Many things I read in the book are already well know practices for an old hand couch-potato investor like myself. I feel the main take away is the philosophy and foundational concepts that keep you on track during your investment process. We all know things we should be doing, concerning investing, but staying on track and not bailing out in the down markets takes a core understanding of knowing yourself and having a plan. Thats what separates the million teachers from everyone else. Read this book you'll learn something.

Get the book Millionaire Teacher: The Nine Rules of Wealth You Should Have Learned in School


Visit Andrew Hallam's website at  AndrewHallam.com

Roth IRA vs. 529 plan - Which is Better for College Savings?

Roth IRA (Photo credit: Philip Taylor PT)

In USA Today they had a story that compared Roth IRAs to 529 Plans.  It said when it comes to saving for a child’s college education, a Roth IRA might be a better investment than a 529 Plan. I agree the column is right in suggesting that anybody who is thinking about saving for a child’s college expenses should consider a Roth IRA instead of, or in addition to, a 529 Plan.

The 529 Plan

A 529 Plan allows contributions to grow tax-free and distributions to be made without any taxes or penalty, if the distributions are for qualifying educational expenses.  So if you take $5,000 today, put it away in a 529 Plan for your child’s college, and it grows to $10,000 in 10 years, you can use that $10,000 for college and not owe any tax on your $5,000 in growth. But what if you need the money, or your kid decides not to go to college?  Well if you end up taking a withdrawal from the 529 Plan for something other than qualifying educational expenses, the earnings become taxable, and there’s a 10% penalty assessed on the earnings portion of a withdrawal.  

Benefits of the Roth IRA

Roth IRAs are designed for retirement savings, but are flexible because of the withdrawal rules.  At any time after the Roth IRA is established, an individual can withdraw contributions that were made to the Roth IRA for any reason without any penalty.  If an individual has had a Roth IRA for at least five years, contributions and earnings can be withdrawn without any penalty and without any taxes if the distribution is a qualified distribution (examples of qualified distributions include distributions after the individual has reached age 59 1/2, or a withdrawal to help the Roth IRA owner or a qualifying family member buy a first home for the individual or a family member).

Where they Differ

Distributions from a Roth IRA to pay for qualifying educational expenses aren’t treated quite the same as qualifying distributions, since the earnings portion of the distribution is subject to tax. This is a key difference between the Roth IRA and the 529 Plan, where earnings distributed for qualified educational expenses aren’t subject to income tax.

Which is Best?

Roth IRAs easily have 529 Plans beat if you want flexibility. 529 Plans are state-sponsored programs and come with limited investment options which typically include mutual funds, CDs, and bonds.  With Roth IRAs, investors can actively manage the account and have a much broader array of investment options.

In addition to earnings being subject to income tax when distributed for educational purposes, Roth IRAs have a few other shortcomings as compared to 529 Plans.  529 Plans allow for significantly greater annual contributions. Roth contributions are capped at $5,000 for individuals under 50, or $6,000 for individuals 50 and over. 

If you are considering setting up or continuing to fund a 529 Plan for a child, you should consider contacting a financial planner to discuss whether a Roth IRA might be a better option for you.  Not only can a financial planner help you determine whether a Roth IRA is appropriate, but he or she can also help you navigate the rules regarding contributions and withdrawals.

5 Ways To Save Money on Your Next Cruise

 (Photo credit: Wikipedia)

One of the great things about going on a cruise is that your room, meals, entertainment and daytime activities are included in your fare. But if your not careful you could be subject to many of the on board ways to overspend.

1. On thing for sure when you go on cruises, there always is plenty to drink. Whether it's alcohol, soda or bottled water, it's going to cost you extra. You are not allowed to bring your own booze but many cruise lines allow you to bring water and soda. It may not always be convenient to carry your bottles around but it sure makes sense in the cabin. You could also save money by using the ships unlimited drink package, if available. 

2. To make up for the great deal you paid for the cruise, on board amenities like spa treatments are going to cost you double than what they cost normally. It could be either massages or extra charges for select fitness classes, these extras services will dig deep into your pocket.  

3. While on board, you do get all your meals for free, including the midnight buffet. But you will be offered alternative meals such as gourmet specialties by the chef. There is nothing wrong with partaking of these incredible meals, just be sure to budget for them ahead of time.

4. When the cruise ship reaches a port there are always day excursions. Many cruise lines make a ton of money on these side trips. If you plan ahead you could contact local tours and transportation companies that will definitely give you a better price for the same trip. 

5. Of course tipping is the most misunderstood part of the entire vacation cruise experience. At bars and nightclubs on board be sure to check if your bar tab may already have the tip included in the total. This happens sometimes and you end up over tipping or tipping twice. Tips to the crew are sometimes automatically added to your shipboard bill. Again be sure when reviewing your bill to see if you don't double tip or over tip.

When you are prepared and know ahead of time what your expenses are it make the whole trip nicer and anxiety free. If you have any questions when on board, the ship's purser will be glad to explain and help with whatever your needs.

How to Get the Lowest Mortgage Interest Rates

Interest Rates (Photo credit: 401K)This week the average interest rate on a 30 year mortgage dipped below 4 percent. This is only the second time in history this has happened. With these kinds of interest rates your home refinance options just got a lot better

Mortgage lender Freddie Mac said the rate on the 30-year fixed loan has dropped to 3.87 percent. Six weeks ago, it dropped to a low of 3.93 percent, according to the National Bureau of Economic Research. The 15 year fixed rate mortgage fell to 3.04 percent. The National Association of Realtors reported a 3.4 percent increase in sales of existing homes in April and more homes on the market for potential homebuyers to see. The low rates also continue to support your home refinancing options.

What can be done to help you get the lowest mortgage interest rates?

Even though mortgage rates are at such a low interest rate it doesn't mean you will get these rates. It depends on your credit score among other things. You can get the best rate mortgages if you prepare.

1. Make sure you have a great credit history.

Being maxed out on your credit cards is a certain way to bring down your credit score. Paying down your debts will help in raising your score. Before applying for the new mortgage it is best to check your credit report. Occasionally errors can get into them. You have the ability to clean up the errors. You can dispute the errors and if the credit reporting agency can't prove the item, then by law they have 30 days to remove it. After you fix your credit report, be sure to wait a couple months so your score can return to a higher level.

2. Make sure to have cash in the bank.

Whenever you apply for a mortgage the lender always asks what your balances are in your checking, savings, and investing accounts. Having money in these accounts shows the lender that you are responsible; it shows you have the ability to save and hold on to your money. It tells the lender that you are a good risk and will get you a lower interest rate.

3. Be a smart consumer.

Being a smart consumer means shopping around for the best mortgage deal. Start on the Internet to locate the best mortgage companies. There you can compare many loans in a short period of time. Don't be afraid to call these companies on the phone and try to get a better deal. A lower interest rate or more favorable closing costs will save a lot of money.

Don't rush into getting a mortgage. If you do a little shopping around you could save yourself a lot of money. A lower interest rate or fewer points will save you money over the life of the loan, keeping more money in your pocket.

Should Sellers Be Present for House Showings?

If you ask any real estate agent that question, they will look at you like you're crazy. The last thing any agent wants around is the owners. They know the owners will just screw things up. 

It's just like the old saying goes "To many cooks spoil the soup". When you hire a real estate agent to sell your home, the owners need to get out of the way and let them do their jobs. 

If you have ever gone to an open house and walked through someones occupied home, would you like the owners watching you open their closets and cabinets? It's an uncomfortable situation and the potential buyers will feel odd about the entire experience and not be concentrating on your home.

Home buyers need to feel as comfortable as possible when looking at a potential new home. It’s a big investment, and they should feel welcome to open closets, look in cabinets, look behind the couch, or put their ears up the walls or windows. A serious buyer of a property needs to do whatever they can to learn about the home.

When buyers don’t feel completely comfortable to explore, they may miss the intricacies of a property. Or they might not give the home a fair chance. This means a missed opportunity for both the buyer and the seller.

Your real estate agent is an expert in sales. They know what to say to make a sale. Owners tend to talk to much about the wrong things. They may describe things about the neighborhood that to them are a plus but to the buyers could be a minus. The sales agent has already pre-qualified your potential buyers for compatibility and knows their needs. 

Homeowners are coming from an invested position. Buyers could say some derogatory things about the home to the owners and bring a lot of drama into the entire process. Your sales agent keeps the drama out and treats the sale as a business deal. 

An Exception to the Rule

The only exception to being present at an open house is if you are there undercover. If you are looking around your home and trying to blend in, it is a good idea to listen to what the visitors are saying. You can use your anonymity to learn what the buyers really think. Because you are just there as they are, you will be privy to honest criticism of your home. This criticism can be helpful to find out if there are any problems that are keeping your home from being sold.

In my business, I have had to be the salesman on homes that we have built. In the capacity of owner-seller I have to be there and I must say I do a good job. But when I sold my personal home, I was nowhere to be found. I left it up to the Realtor to do his job.  

Invoice Factoring Can Help Your Small Business

In the business world, opportunities can come from unexpected places. Being ready for these new chances to expand and grow is what separates a growing business from a stagnant one. Having the capital ready to invest allows you to quickly pursue new ideas. 


But sadly in todays economic environment cash is in short supply. But one thing many companies do have is an abundance of accounts receivables. Using invoice factoring, you can turn your receivables into cash, when time is precious.

Invoice factoring enables a small business to sell its accounts receivables to a third party at a discount. The small company receives almost immediate cash which it can use to fund new opportunities. When the invoice is paid in full the company receives the remaining balance less the factoring companies fee which is 3% or so.

In todays fast paced business world waiting for customers to pay an open invoice can take weeks or even months. When a business can't wait it uses invoice factoring. Factoring companies can advance up to 90 percent of an invoice total in under 24 hours. The reason it can be done so quickly is that factoring is not a loan, it's the purchase of receivables or financial assets. Bank loans usually are between two parties, while factoring involves 3 parties. Banks base their loan on credit worthiness but factoring bases its decision on the value of the receivables. There are no lengthy applications or long term commitments.

With invoice factoring a small company has access to quick money to expand, pay taxes, pay insurance, restock, or reestablish cash flow. For further invoice factoring information go to cbacfunding.com  

10 Frequently Asked 529 Plan Questions

 (Photo credit: Wikipedia)We can usually find something to complain about when we discuss our taxes or the government. But when they do something right we should tell everyone about it. One of those things they did right was to establish 529 plans for college savings. The ability to save for college tax free is a great opportunity. It not only encourages you, it rewards you by not having to pay taxes on the growth.

I find that there is some confusion about how 529 plans work so I listed ten frequently asked questions:

What Is a 529 Plan?
529 college savings plan allows family members to save money for a child's education, invest that money and remove the income from their initial investment tax-free for educational expenses.

Do you need to have a child before starting a 529 Plan?
A 529 plan is a good investment option for anyone who wants to cover educational expenses, not just those with children. If you know that you want to have children or adopt, you can start a 529 at any time and the funds will be available to you when you finally do become a parent. If you don't want children or end up not having them due to life circumstances or health, you can use the funds you have in the plan for your own betterment and career advancement.

Can I have more than one 529 Plan?
Each 529 plan has both an owner, who is the one contributing to it and a beneficiary, who is the person who can withdraw the money for college expenses. There are no limits for how many times a child can be listed as the beneficiary on a 529 plan. For example, a child's parents and grandparents might each open a plan for that child. In addition, there is no limit for how many plans a beneficiary can open.

Can You Have 529 Plans for Both Kids or Just One Plan?
Having a separate 529 plan for each child allows you to devise a custom investment strategy for each child's financial needs. If one child is a newborn or toddler, you may invest more aggressively in a 529 plan, as you have more time to recover potential investment losses from higher-risk investments. If you have a child who's in middle school or high school, you may choose to move investments under that child's 529 plan to more conservative investments to minimize losses.

Can You Pay a Mortgage With a 529 Plan?
You cannot use withdrawals from a 529 plan for anything other than qualified high education expenses (QHEE). In general, the IRS lists QHEE as tuition and fees, supplies, such as textbooks, items necessary to do schoolwork, such as a laptop used primarily for education purposes, and room and board for students attending school at least half-time. Thus, you may not use 529 savings to pay for your mortgage.

What Are Qualified Expenses for 529 Plans?

Tuition and Expenses You may pay for tuition and expenses related to an eligible educational institution with money that you saved, and interest earned, in your 529 plan. The IRS defines an eligible educational institution as just about any accredited public, nonprofit and private post-secondary schools. Eligible expenses can include books, supplies or equipment necessary to enroll or attend the institution.
Technology As of 2009, computer technology is an expense that can to be paid from 529 plan funds. This was added to the list of eligible expenses under the American Recovery and Reinvestment Act of 2009. Computer technology includes any computer and related equipment such as a scanner or printer. This eligible expense does not include software or related devices used for entertainment or hobbies.
Special Needs Expenses If the person benefiting from the 529 plan has special needs or requires special services to attend school, those costs are eligible, according the the IRS. The special needs must be connected to being enrolled at an eligible educational institution. An example of an eligible expense would be the cost associated with making a room handicapped-accessible for a student living in a dorm, if the school has not already adequately done so.
Room and Board The IRS allows you to use the money saved and earned in a 529 plan to pay for room and board as long as the student is enrolled at least half-time. However, there are some limitations. The amount spent on room and board must be no greater than the amount determined by the institution as the allowance for room and board, or the actual amount charged for room and board by the institution for institution-owned housing. Otherwise, the expenses may not be eligible.

Can I Use a 529 Plan for High School?
As of 2011, the Internal Revenue Service does not let taxpayers use a 529 plan to pay costs for high school. You may only use contributions to a 529 plan to pay expenses at an eligible institution. In general, eligible institutions consist of any accredited vocational school, university or college. If you withdraw money from a 529 plan to pay for high school tuition, the IRS will charge a 10 percent penalty on the distributions, on top of whatever you pay in income tax.

How to Close a 529 College Plan
Contact the plan manager for the account. You will find contact information on account statements. Inform the plan manager’s customer representative that you want to close the account. At the end of the year, the plan manager will send you a 1099-Q form stating the earnings on the account. Fill-out the Internal Revenue Service (IRS) Form 5329 – Part II. File that form along with the 1099-Q form that you received from the plan manager with your other income tax reporting forms in the same year that you close the 529 account.

How Much Money Can You Put Into a 529 Plan?
A college savings 529 plan had a maximum contribution amount of more than $200,000 as of September 2010. Although no limit for a prepaid plan exists, you contribute funds into the account in a lump sum and installment format, based on the current age of the beneficiary and the number of years of college that you want to purchase.

How to Set Up a 529 Plan for Your Child
Contact your brokerage firm about your state's 529 savings plan. You do not have to use your state's 529 plan, however. Your broker will have information on the plans available through your state. Fill out an application. Fill out an application for a 529 plan with your broker if you plan on using him as your investment adviser. 


Contribute money to the plan. You may elect to have automatic contributions deposited into the plan's account. These contributions will come from your checking account. Choose investments in the plan that are appropriate for building a savings for your child. A 529 plan normally contains mutual funds. 


A Gift for Both Parent and Child.


Saving money for college with a 529 plan is not only a benefit for the future college student, it is also a plus for the parents who have a tax free way to invest funds for their child's education. You should coordinate these investments with your financial adviser to meet your child's future savings needs.

College Savings vs. Retirement Savings - How To Strike A Balance

Retirement (Photo credit: Tax Credits)

Saving money for both college and retirement goals at the same time can be challenging. The cost of a college education continues to rise faster than inflation, at roughly 5 percent per year. According to the College Board, the average costs for four years at a private college is now more than $150,000 — including $38,589 for the 2012-13 school year. Even going to your state’s university, it runs close to half that total at an average of  $17,131 a year. This is peanuts compared to what you need to save for retirement.

With the good intentions of keeping their kids out of debt, parents are footing the bill for college costs. They are putting thousands of dollars away for college expenses that would of otherwise gone to retirement savings. A recent study from Ameriprise Financial shows that only 24 percent of baby boomers were saving any money for retirement, in 2007 the percentage was 44 percent. Many college parents will be experiencing substantially reduced retirement lifestyles because of their kindness. 

Prioritize.

Put retirement saving back where it should be, "first". Your kids can finance college or attend a college where the costs are more in line with the families finances. Sacrificing your retirement plan to help your kids is never a good idea. Your kids will understand, besides tell them if you don't save for retirement you will have to move in with them when your old. That will help them get the picture.

Start Early.

The key to saving for anything is to start early. Start saving for college when the child is born. Waiting even a few years causes you to have to save more monthly and the amount of compound growth will be greatly reduce. Even just saving $50 or $100 per month will help you accumulate a large college fund after 18 years. Set up a 529 college savings plan to take advantage of the tax-free withdrawals for education costs.

Make it a Family Project.

Include your children in their college savings plan. Over the years, your children receive cash gifts for birthdays and holidays. A large portion of those gifts should be put in the college saving account. It's a good lesson in teaching your children the importance of saving and participating in the families financial goals. Why should the parents be the sole provider of college finances? Teaching your children the value of paying their own way has incredible benefits all through their adult lives.

Pick an Affordable College.

Pick a college the family can afford. A prestigious college is all well and good if you have the cash to pay for it. But if the family doesn't, is it worth putting the family in massive debt for only four years of college, just to have a diploma from an ivy league school. Other ways to save college costs is to attend a local two year community college and finish at the more expensive college. Staying in state will also afford you much more savings than traveling out of state.

Remember parents, giving your children a good college education doesn't have to mean breaking the bank and sacrificing your own retirement. It is possible to do both in a reasonable way. 

Social Security Fund Depletion Set To Occur Sooner Than Expected

 (Photo credit: Wikipedia)According to a Summary of the 2012 Annual Reports by the Social Security and Medicare Board of Trustees, Social Security is expected to have depleted its funds a few years sooner than originally expected.

Social Security’s trustees released new estimates of the benefit program, funded through dedicated payroll taxes that are intended to provide Americans a degree of economic security as they grow old and/or become disabled, predicting the retirement portion of the program will run dry by 2035. The United States’ single largest program benefits 44 million senior citizens and survivors of deceased workers.

The program’s Disability Insurance fund, supporting 11 million disabled Americans, is expected to run dry in 2016, and Medicare is now projected to be out of funds by 2024.

The trustees said that to keep the Social Security trust funds solvent over the next 75 years, Congress could take a number of steps:

• increase the payroll tax rate from its current level of 12.4 percent to 15.01 percent;
• reduce benefits by 16.2 percent;
• find alternative sources of revenue;
• adopt some combination of these approaches.

For my fellow mid 50 year olds, these numbers are not going to effect us. We will be receiving our check fully funded by the government. It's the 20, 30, and 40 year old workers who are going to pay the price for the governments mismanagement of the Social Security System. They are paying into a system that will probably never be able to give them the same level of benefit we see today.

Contactless Payments Good For Mastercard But Bad For Consumers

Universal contactless smart card reader symbol (Photo credit: Wikipedia)

We all know that when using credit cards to make purchases we tend to spend 18% more than if we used cash. The convenience of a credit credit and its psychological detachment from real money makes us spend more. Don't think it can get worse than that? With the current introduction of contactless payment methods we now are going to spend 30 percent more, according to a new study released by Mastercard.

Contactless payments come about when credit cards or smart phones that feature smart chips implanted with radio frequency identification, generally referred to as RFID. Consumers merely "wave" the card or smart phone across a payment terminal instead of having to "swipe" the card through the terminal.

Contactless payment methods are becoming a lot more common. Visa has lately ushered in PayWave; MasterCard has PayPass and American Express has

Express Pay. The MasterCard study anticipates 150 million mobile devices will be contactless enabled within the next a couple of years.

The MasterCard study took some of their customers and divided the accounts into low, medium and high spend segments according to their monthly spending prior to ushering in the contactless payment methods. The 30% increase in spending was consistent across all three segments.

The study also found that after the first contactless transaction, users spend an average of 25 percent more online, 64 percent more abroad and 20 percent

more in recurring payments.

"While this increased spending may be good news for banks and retailers, contactless payments can be dangerous to the household budget," says Bill Hardekopf, CEO of LowCards.com. "You can now make a purchase with just a wave of your phone without a thought about how much the purchase really costs. It could make it too easy for some people to buy something spontaneously or throw a few more items into the shopping cart. Making good spending decisions takes analysis and discipline. We probably need to feel the pain of money leaving our bank account to help us evaluate if we can afford it and if we really need it."

Investing In Gold Takes Many Forms

American Gold Eagle (Photo credit: Wikipedia)I always found investing a fascinating subject. Having your money work for you and growing in value made a lot of sense to me. Sending your money off to your financial planner to invest for you is what most people usually do. But some investors choose a different path and invest in gold and choose to physically hold the gold in their possession, which they can't do with a paper share investment.

Gold is one of the few investments where you can actually see and hold it. Many people combine their investing goals with their love of coin collecting by investing in gold coins. Many countries issue their own gold coins like the American Eagle, Canadian Maple Leaf, the South African Krugerrand, and the Austrian Philharmonic.

The U.S. government issues gold coins which are authorized by the U.S. Congress, minted at the U.S. Mint and produced with a U.S. Mint mark and U.S. Dollar denomination...making them Legal Tender.

The US Money Reserve offers a wide variety of gold numismatic coins including American Eagle proof gold coins and modern Congressional gold coins available in mint and proof grades. Many gold coin investors realize the added value and security of holding gold coins minted by the U.S government and which are also legal tender.

Gold and gold coins can be a part of a diversified investment strategy. Being weighted in any investment to a great percentage is not good investment practice. But being diversified is good practice and gold can be a small part of that.

Will The Facebook IPO Be A Boom Or Bust For Investors?

                         (Photo credit: Wikipedia)This week the Facebook IPO will hit the street with much anticipation. Something this big will be good for the market and may help raise the over mood of the traders. But is it good for the average investor? I am so temped to get in on this IPO and own a piece of the Facebook phenomenon. But is it good for me and my overall goals.

My investment plan consists of building a portfolio of low expense index funds and Facebook is a detour in my plan. What is it about the IPO that is drawing me to it like a moth to the flame? Lets remove the emotion and go to the numbers.

Thomas Baekdal at Baekdal.com had a great Google+ post comparing it to Ford Motor Company. He wrote: 

- Ford has 36 times higher revenue- Ford has 8 times higher profit- Ford has 8 times as many assets (including a much larger cash reserve)- ...but Ford is valued at only 41% of Facebook's expected market cap. 

More to the point. Ford's market cap is valued at 70% of their total assets. Meaning that if Ford where to closed down today, the investors could just sell the assets and get their money back.

But Facebook is valued 1,370% higher than what they have in assets, meaning that if Facebook closed down today, we are talking serious financial loss.
This is the dot.com era all over again. Value is being determined based on activity (page views, ad impressions, users), instead of real things like... you know... money and assets.

At the high end of a projected range of $28 to $35 a share, Facebook would be valued at 99 times its earnings, a higher multiple than 99 percent of companies in the Standard & Poor’s 500 Index, according to Bloomberg Business week.

When looking at the numbers, the urge to buy this stock is fading. No matter what happens, the Facebook IPO should go down in stock market history. Look for this weeks Facebook IPO, with its stock market symbol (FB) and buy a share for me.

Use An Annuity Broker To Compare The Market For The Best Annuity Rates

Buying an annuity is something most people don’t think about until they reach retirement age. Once they do decide they are intending to purchase an annuity, most end up buying the annuity from the company with which they have been building up their pension with. This can be a costly mistake as your current pension provider is unlikely to have the highest rates on the market. Also not all providers offer the same annuity products, which means you will never know who has the best deal to suit your circumstances unless you shop around for the best rates.

Shopping for an annuity can be done in a number of different ways. You could in theory speak to each provider individually, although this would be extremely time consuming and indeed counter intuitive unless you are a pension guru yourself. The best way to compare the market for the best rates is to speak to an annuities broker. They will be able find out what your needs in retirement are and how best they can be met given your own financial situation. They will also be able to compare providers to help you find the best rates.

As mentioned previously not all annuity providers offer the same products with many companies simply providing standard, level annuities. These do not take into account a person’s health or the fact that they might want to increase their income in the future to protect against inflation. Those who have health conditions that shorten life expectancy could be missing out on extra income by not shopping around for the best deal. It is estimated that as many as 70% of all annuitants could be eligible for enhancements on their annuities. However because most retirees buy their annuity without comparing the market only 10% of all annuities purchased come with enhancements. This is course suits the providers as they are not obliged to offer any advice and also can make money by selling a poor value annuity.

If you want to avoid losing out on a potentially higher income in retirement then make sure you speak to an annuity specialist or independent financial advisor. The issue with annuities is that one you buy one that’s it, you can’t change it, swap it, or alter it…..you are stuck. Unlike with car or home insurance that can be swapped annually depending on who has the best deals, an annuity is for life. Your provider will offer some information about shopping around the market but it is not as yet the default position.

All Inclusive Holidays Growing In Popularity

                              (Photo credit: Wikipedia)

There is a growing trend in holiday vacations that gather all the parts of a vacation into one package, for one price. These all inclusive holidays include your hotel, food, kids entertainment, and even drinks for one price. Imagine, not having to worry about running out of money while on holiday. 

This idea of all inclusive holidays was invented by Club Med over 60 years ago. It has had much popularity over the years but not like it's seeing now. According to a Vacation Holiday survey, one third of all vacations are all inclusive holidays and this is up 50 % over the last 4 years. 

This type of vacation has changed the behavior of people on holiday. When they arrive at their destination 90 % of the guests do not venture off the resorts property. They believe that they already paid for their food and drink, why go off resort and have to pay money at a local restaurant or bar.

This has put a damper on the mood of local establishments. Businesses feel the loss of income and sometimes are closing because of it. Local businesses are reaching out to the resorts for relief. The resorts are looking into the problem and may be able to create a dine around plan to help alleviate the problem.

If you put yourself in the shoes of the vacationer, what would you do? The kids are having fun, drinks are on tap, and you have all the food you want; why leave.

Top 3 Ways to Help Your Adult Children Become Financially Independent

The Millennials (or Generation Y, as they’re sometimes called) have arguably been hit the hardest by the recession. In fact, some research estimates that only around 50% of recent college graduates find full-time jobs within a year of their graduation date. Because of how the economy has affected the Millennials, a considerable number of them rely on their Baby Boomer parents for financial support, often not out of choice but out of necessity. If your adult child is struggling to leave the nest and gain financial freedom, you probably feel the strain. Fortunately, there are some things you can do to help your adult children become more financially independent. Here are some of them:

1. Network for them – Your kids probably didn’t do much worthwhile professional networking in college. The other young people they know are unemployed too, and aren’t much help when it comes to referring them to potential employers. You’ve had decades to build a solid professional network. So, talk to people you know, and see if you can get your foot in the door at a few companies for your kids.

2. Encourage them to take any paid work – Yes, it’s frustrating to realize that your children can’t even get a job at Starbucks, even though you spent an exorbitant amount of money helping them through college. However, you and your kids need to swallow your pride. Any job is better than no job. So, encourage your child to take any work he or she can find, even if it’s part-time work. Any job will allow your son or daughter to acquire new skills, meet new people, and hopefully move up the ladder at some point. Starting off part-time in the mailroom can actually pay off.

3. Teach them good financial habits – You probably stressed the importance of saving money to your children throughout their lives. Now that their adults, they may need some extra help sharpening their financial skills. Remind them that credit usually isn’t the answer and budgeting can be a lifesaver. Teaching your kids how to make good financial choices will help them weather the storm of the bad economy and job market. Thanks to your guidance, by the time they do get the full-time job of their dreams, they’ll know exactly how to achieve financial success and security.

You can’t change the job market, but you can help your kids beat the system and become financially independent. You’ll be glad you put forth some extra effort when they’re out on their own and you’re able to save more for your retirement.

Author’s Bio: Carolyn is a guest blogger on the subjects of personal finance, small business finance, and ecommerce tools like order management systems, Shopify, 3dcart, and BigCommerce.

How Payday Loans And Money Advances Function

Unlike all other loans, Payday loans offer you the cash without knowing the reason for which you are going to use the money whether for good or bad and Payday loans doesn’t need any documents.

Eligibility to Get a Payday Loan

• Person must be a permanent resident of that particular country 
• Your Age should be above eighteen years 
• Must have more than 3 months old bank account 
• Should have regular job earnings 

If you have all these abilities then it is easy to get the Payday loan. The requirements for qualifying to get them are low as they are designed to pay off in a shorter period. These simple requirements help borrowers to have a small amount of money quickly even though they are not eligible for other loans or other forms of credit.

The amount offered by the Payday loan is limited and depends on ones earnings. One can request any amount of money below the maximum. Payday loans bring instant cash to the borrower to meet his urgencies. They take a very little time to approve the borrower. After approving the borrower, same day payday loans will credit your bank accounts. It does not take more than 48 hours after approving the borrower. Payday loans are faster as they involve small amount. Smaller amount speeds up the process as it is easy to provide smaller amount. You need to write a postdated check to the next payday for the amount borrowed and the fee applied.

No one can expect when they are going to fall ill, meet with an accident, have car repair and many more and we don’t have ready cash to deal with it until our payday as they are our extra expenses. But, these need to be met immediately in this case these loans will help us. It is hassle free loan in which we can do everything online and through emails to get quick cash, instead of wasting our time moving all around looking for the possibility to get it done. You can apply from wherever you are and whenever you need. Payday loan acts as your savings as you can get whenever you need.

Payday loan expects you to pay the whole amount with the fees on the set day. Sometimes it is difficult to pay all at a time. Don’t worry you have other options also. You can repay part of it and roll over the rest to another date and you can also pay it off through installments to make it easy but, some fee is applied and you need to talk to the representative regarding this.

Payday loans are the best way to get cash fast and easy. Every loan or cash you borrow is a debt. So, while applying for the loan please think over it and avoid it. Unless and until it is very urgent and essential for you don’t go for it in order to avoid unnecessary debts. 

Save Money With A Yearly Business Cost Evaluation

(Photo credit: patrick h. lauke)

For a business to survive and be profitable it must keep costs and overhead down. There is something that occurs in all businesses called expense creep. It is the slow and progressive increase of a companies business expenses. It has as many forms as there are expenses in a business. Taking a yearly look at business expenses to see if they are necessary or if you are over paying for services is a necessary task to keep more money in your pocket.

Office Supplies.

Today we have many sources to purchase office supplies. It can be on the phone, a salesman coming to your business, the Internet, or your local Office Depot. Are you doing all you can to shop around for the best deal. 

Phone Service.

Your phone and Internet service are major costs to your company. Even if you are a small company, savings can really add up by reducing expenses. Check your phone and Internet bill, line by line, to see if any unnecessary services can be canceled. Phone companies offer special business class packages like 0845 phone numbers to help you save money.

401(K) Expenses.

It's commendable that you offer your team a 401(k) retirement plan. But you should be careful that you do not over pay for the administrative costs. They can unusually be high, which may make the plan to expensive to continue. Why not shop around and check what other companies are charging for running your plan. 

Insurance Costs.

This a major cost to any business. A business has to deal with many kinds of insurance. Your business has many types of assets to insure. There is also liability insurance for your products and services. It pays for you to do a yearly audit of your insurance to see if costs can be cut. Insurance is one of the easiest expenses to relocate to a cheaper provider. Insurance companies provide package deals and new customer discounts. Take advantage and shop around.

And that's not all. Here are 5 more ways to save money in your business.

• Postage and shipping in bulk and contract discounts.
• Upgrade old and high maintenance computer networking gear.
• Set up systems to avoid paying late fees on bills.
• Be sure your purchasing office always buys in bulk with the greatest discounts.
• Evaluate your in house services and outsource your business needs to keep expenses down.

You can probably add many more ways to save money in your business. We are so busy as business people trying to bring money in that we neglect keeping an eye on the ways we can reduce costs and save money.

How to Use Credit Cards During Retirement

 (Photo credit: Wikipedia)If someone told you ten years ago that they paid $60 to fill up their gas tanks, you would have thought they were crazy, or that they were filling up 40 gallon drums, not vehicle tanks. But with the national average cost of one gallon of gas hovering just under $4.00, it's not at all uncommon to hear about people paying $60, $70, and even up to $100 to fill up their tanks.

Boy, have times ever changed.

But there is a way to make the most of the rising cost of gasoline — credit cards with gas rewards. Ben Brockwell, a director at the Oil Price Information Service, says that "approximately 80% of consumers are using credit cards to pay at the pump, and that figure will increase if gas prices continue to rise."

Many credit card companies now offer cash-back or reward programs for gas purchases, whose savings are better even than the discount many gas stations offer for customers who pay with cash.

Retirement comes with its fair share of benefits, but even retirees aren’t safe from rising gas prices. After a lifetime of using credit, most retired people don’t have a problem with credit, but a gap in your credit history will drive your score down, and you don’t want to be turned down when trying to buy that new RV or boat you’ve had your eye on for 20 years because your credit score has been slowly dropping.

Instead, consider getting a gas credit card, which will keep your credit score steady, and can help you save for the important things. Here are some of the best options out there:

Pentagon Federal Credit Union Platinum Rewards card: This credit union pays 5% cash back on all gas purchases. That adds up. Even better, the card doesn't charge any annual fees, though consumers will have to shell out $15 to join if they don't qualify for membership in the union.

American Express Blue Cash Everyday card: The Blue card doesn't pay quite as handsomely as the Pentagon card, but still gives 2% cash back for gas purchases, and is typically easier to obtain. American Express cards usually have annual fees, though, so be sure to read the fine print.

Costco / American Express TrueEarnings card: Members of warehouse clubs like Sam's Club and Costco save on gas just for being members (in most cases) but some clubs have credit cards that pay a percentage cash back for all gas purchases. Costco's TrueEarnings card, for example, pays 3% on all gas purchases up to $3,000 and 1% after that.

Brand cards: Shell, Exxon/Mobil, Chevron, Valero, and almost any other major gas chain also have gas reward cards as well. With any of these cards, however, be very aware of the interest rate, which generally ranges from 17% to 27%. If you decide to go with one of the brand cards, pay your balance in full each month to avoid the steep interest charges.


This is a guest post by Eliza Morgan who is a full time blogger. She specializes in writing about business credit cards. You can reach her at: elizamorgan856 at gmail dot com.