Can Married Couples Have Separate Auto Insurance?

 (Photo credit: Wikipedia)

When two people marry they usually combine their finances just as they have combined their lives. When renting or purchasing a home it's customary to put both names on the mortgage or rental agreement. You pay your bills out of a joint checking account for electric and other household bills. What about auto insurance policies; do you combine two separate policies into one? 

It is true that having multiple cars on one policy does benefit you with discounts. Even with great discounts, there are reasons to have separate policies. When shopping for insurance quotes online, you will be able to compare rates for car insurance from many different providers.

When an auto insurance policy is written there is always a principle driver listed. Secondary drivers can be listed on the policy but are charged a lower rate because they do not drive the car very much. 

If one driver in the family has a bad driving record with accidents, tickets or other violations; or has bad credit it would be cheaper to keep them off the policy and see that they have their own separate policy. In this case avoiding a combined policy would keep the rate lower but check with your insurance company for actual insurance rates.

Having an expensive car and listing it as only having one driver would save money. Have only one spouse be the specified driver of the vehicle because adding a spouse would just increase the cost of insurance.

When one spouse has bad credit it can drive the cost of car insurance up. Insurance companies check your credit report when you apply for car insurance. They have the right  to see your report because if you are late with bills or in default, it reflects on your ability to pay. Also think you are a higher risk for them because your credit is bad. If it is bad you will be paying more in insurance premiums.

It's best to check with your state insurance regulation because it may be mandated that both spouses must be on the same policy.

Tax Free Weekends for 2012 Arriving in August

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Tax free weekends are back. If your shopping for the kids or just yourself it is time to save a little money. Below is the complete list of tax free weekends coming up. You can pick up some items like clothes, school supplies, even computers. So start making your shopping list.

TAX FREE WEEKENDS 2012 LIST:

Alabama Tax Free Weekend: August 3-5th for certain school supplies, computers, clothing and shoes.
Arkansas Tax Free Weekend: August 4-5th for school supplies, art materials, school materials for teachers, clothing and shoes.
Connecticut Tax Free Weekend: August 19-25th for clothing and shoes under $300 and layaway items that fit requirements, but are paid in full after the 25th.
Florida Tax Free Weekend: August 3-5th for school supplies up to $15 and clothing up to $75 (individual items, not total of purchase).
Georgia Tax Free Weekend: August 10-11th for clothing up to $100, school supplies up to $20 and computers up to $1,000.
Iowa Tax Free Weekend: August 3-4th for clothing up to $100.
Louisiana Tax Free Weekend: August 3-4th for the first $2,500 of property purchases. Also, September 7-9th for ammunition, firearms and hunting supplies.
Maryland Tax Free Weekend: August 12-18th for clothing and shoes up to $100.
Mississippi Tax Free Weekend: July 27-28th for clothing and shoes up to $100.
Missouri Tax Free Weekend: August 3-5th for clothing up to $100, computers up to $3,500 and school supplies up to $50.
New Mexico Tax Free Weekend: August 3-5th for clothing up to $100, computers up to $1,000 and school supplies up to $15.
North Carolina Tax Free Weekend: August 5-7th for clothing up to $100, school supplies up to $100, instructional materials up to $100, computers up to $3,500, other computer accessories up to $200 and sports equipment up to $50. Also, from November 2-4 for all EnergyStar products.
Oklahoma Tax Free Weekend: August 3-5th for clothing up to $100.
South Carolina Tax Free Weekend: August 3-5th for clothing, school supplies, computers, linens and bathroom essentials, such as rugs and shower curtains. Also, from November 23-24th for firearms.
Tennessee Tax Free Weekend: August 3-5th for clothing up to $100, school supplies up to $100 and computers up to $1,500.
Texas Tax Free Weekend: August 17-19th for clothing up to $100 and school supplies up to $100.
Virginia Tax Free Weekend: August 3-5th for clothing up to $100 and school supplies up to $100. Also, from October 5-8th for EnergyStar products up to $2,500.

Money Saving Tip: You can save money all year long if you use discount websites like EBATES where you can receive a $5 bonus just for signing up. Or a free $10 gift card from Target or Home Depot.  Combine that with your cash back debit/credit card and you could be saving a tidy sum of money. Sign up today at Ebates

Online College Degrees Becoming More Accepted By Employers

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Even though the growth of online education has exploded, students are still worried if their online degrees will be accepted by potential employers like traditional university degrees are. According to many hiring managers, online education is continually gaining more respect as it establishes itself in academia and the workplace. 

A recent article by Bloomberg Business Week says in the past many employers were not familiar with online degrees. This accounted for their lack of knowledge and skepticism. Today, this opinion is fading because many mainline universitys are offering MBA's, Master of Public Administration Courses, and other Master's degrees online. 

A recent study by the Online Journal of Distance Learning Administration shows that hiring mangers are becoming more accepting of web based degrees. The need for employees to have a MBA, required for their employment, is not being satisfied by the regular university system. Their findings show that the time commitment required when attending a traditional university can not be integrated into an employees life. The time constraints of a full time job and the many duties that a family and home life require put an employees time at a premium. 

What is changing the opinion of many hiring managers is present employees, who have gone through online degree programs. It is becoming apparent that the training they have received has made a them valuable members of the team. The managers also responded that their opinion of a potential employee with an online degree five years ago would of put that persons resume to the bottom of the pile.

One of the managers major concerns are that when you take courses online you do not have a way to use your social interaction skills that are necessary in a business environment. Sitting in front of a computer in your pajamas doing your course work can not be transferred to a dynamic office environment. Hiring managers have this opinion and it's something the employee has to think about when being interviewed.

Not all companies see the benefits of taking entire degree courses online. They do give much credence to already working employees adding additional degrees like an MBA or a public administration degree to an employees credentials through online learning. There still is a prejudice against online colleges. The advancement of online degrees has made it's way into the systems of many state colleges. Every year you see the technology of delivering complete degrees through online programs becoming better.

The online student has to keep in mind the views hiring managers have. When taking your course work it is imperative that you work toward receiving the highest possible grades and while your attending your online school you should continue to work so as to have even more job experience when finally going for an interview after you receive your online degree.

The Basics of Home Finances Elude Most Americans

Loans (Photo credit: zingbot)

In today's America, more than one-third of households can barely manage to pay their bills. They are only getting by paycheck to paycheck. The Consumer Federation of America's research reveals Americans are less well off than they were 10 years ago. 

According to the survey of 1,508 US households, 30 percent of families are living paycheck to pay check. They aren't complaining because they feel they are financially comfortable. The have all the things they need to live. The problem is that when an emergency arises, their world is thrown off balance. Without savings or credit they are at a disadvantage to financially solve an emergency cash need.

The lack of income combined with a high cost of living has led many people to take out debt for financial needs but because of the lack of income they are unable to pay these loans back. The result is bad credit or no credit at all. Their only solution is to secure personal loans with no credit check.

There are companies that will give a personal loan for poor credit. These loans can nowadays be done online and with great speed. The funds can be deposited into your bank account in a short period of time.

Because of the convenience and the ability of borrowing with bad credit, the fees for these loans are high. On the websites of these loan companies the rates, fees and late fees are clearly listed. The loan company eLoanPersonal clearly displays the exact amount of fees payable for the amount of money you borrow. There are no surprises. This transparency is refreshing.

When entering into any type of debt arrangement be sure you know all the facts, fees and schedules to pay your loan back. The borrower needs to take responsibility for paying back the loan and should take seriously the risks involved with any loan agreement. Using personal loans on a continual basis is irresponsible and sets you up for a unnecessary cycle of debt.

5 Trips to Take the Grandkids On

Cinderella Castle by day (Photo credit: Wikipedia)

Its summertime and the grandkids are out of school and heading your way for a week or so. Want to do something extra special with them this summer? Take them on a trip that they will never forget, here are 5 trip ideas to help you:

Disney: Who doesn’t want to go to Disneyland or Disneyworld? Whether you choose the west coast or the east coast, there is fun to be had for both kids and adults. Disney is a magical place where your grandkids can run wild and use their imaginations. The best time to take them is between about 4 years old to 12 years old. There are always great specials and deals for families, especially in the off season.

Beach: Summer vacations are always best spent next to the ocean, playing in the sand. You can rent little houses or hotel rooms near a beach for a weekend getaway. Avoid big party beaches and aim for family friendly beaches. They tend to be the smaller beaches outside of the big ‘party’ beaches. Find a nice beach to build sandcastle and collect seashells on. And don’t forget the sunscreen and watch the tide!

Camping: There are plenty of camping sites across the United Sates that offer great camping sites. Go big and head to Yellowstone or go local. This is a great time to show your grandchildren things in nature and get them away from video games and television. Whether you want to head to a lake or the mountains, your options are unlimited. Camp by a fire or in a cabin, whatever you do bring the bug spray and the mores.

Washington DC: A very educational and beautiful city to teach your older grandchildren about the history of the United States. There are many things outside of political monuments to visit like huge art museums and the zoo.

Historical cities: If big road trips out of the budget this summer, travel to the closest city for historical landmarks. Major cities like Ft. Worth, Texas, Boston, Massachusetts and San Diego California are just a few examples of affordable cities with rich history and plenty of attractions to visit. Cities like this have a great visitor bureau website to help you plan your next trip!

Call the grandkids, pack the bags and hit the road for a fun summer trip with quality time spent with your family. Pick a location based on their age and enjoyment level for the whole family and go! Have fun and safe travels!

About the Author:

This guest post is contributed by Debra Johnson, blogger and editor of full time nanny.
She welcomes your comments at her email Id: - jdebra84 @ gmail.com.

Car Insurance Shopping Online Saves You Time And Money

 (Photo credit: West Midlands Police)

These days many more people are using the Internet to research large purchases. With so many car insurance companies competing for our insurance dollars, competition has driven down the costs and it is of great benefit for consumers. The Internet has made it easy to find car insurance quotes online.

A recent poll by the American Automobile Association (AAA) has found that, sixty-two percent of people shopping for auto insurance, start their search on the Internet. Most car insurance shoppers go to at least two online insurers websites prior to arriving at a decision.

Before doing some online shopping take time to do some research.

1. Collect all your important documents together. Your going to need your drivers license. If you had any accidents, have that information ready. Also have your address and social security number ready. You will need the year, make, model, license plate, mileage, and VIN (vehicle identification number) from your car.

2. Use your computer to search for "discount insurance quotes." When you see your search results first check out aany companies you are already familiar with. Also find insurers that will show quotes from many car insurance companies. Some companies represent a lot of different insurance companies. They can compare reates for you and deliver the cheapsest one to you.

3. Choose the kind of coverage you need. It depends on the state you reside in what our options are for what required insurance you need to have. The website will know and walk you through the specifics of your states car insurance requirements.

4. Input all necesary information and get your free quote. There are too many insurance companies that offer free quotes, stay away from websites that require a deposit, credit card number, or any kind of fee.

5. Compare the rates and coverage along with the costs. When you feel comfortable about your selection you can pay with a credit card. You will be able to print out a temporary insurance I.D. car and later a formal one will be mailed to you.

My Car is in Storage Does it Need Insurance?

A car crash on Jagtvej in Copenhagen, Denmark. (Photo credit: Wikipedia)

We all know that having a good insurance policy for your car when your out and about not only protects your car but it also protects the people injured in the accident. What if your car is damaged while in your driveway and your not even driving it? How does your insurance coverage work. What's is covered then?

If your involved in an accident and your car is damaged you may put your car in storage  waiting for repairs. Do you need to carry insurance? You may have a second car that you drive very little or not at all. Should you still have insurance for it? The answer to all these questions is yes and you need to find some discount insurance quotes.

For any period of time where your car is not going to be on the road you still need insurance because your car can be subject to collisions, vandalism, or theft. You should make sure you have the correct car insurance coverage by contacting your insurance provider and inquiring what insurance is available for your particular situation.

Your rates for storage insurance could be much lower than your regular car insurance coverage. You should also check with your states insurance commission and see if you are even required to carry regular auto insurance.

This also applies to vehicles you only drive at certain times of the year like RV's, motorcycles, and other seasonal vehicles. 

Your insurer may only say you should carry your comprehensive coverage because it covers theft, fire, and other damage that does not result from driving the vehicle. 

Consider a Home Exchange for a Money Saving Vacation

Poniente Beach's sight in Benidorm, Alicante (Spain) (Photo credit: Wikipedia)

It's time again for summer vacations with the family. But with people having a smaller budget for vacations a way to save money is needed. One of the major costs of a vacation is your accommodations. If there was a way to save money on that expense, you could make the trip fit into your budget. A way to save some money is to use your home and exchange it for a home in a destination you would like to travel to.

A home exchange often called “house-swapping” is a great vacation idea that’s been around for a long time. With everyone feeling the economic squeeze, some exchanges are more popular than ever before. With home swapping you can afford to take great trips to Aspen's mountains, Mexico's beach's, London's countryside, and Spain's Benidorm holidays

How it works. 

The idea of a home exchange is that 2 families agree to live in each other’s home (usually at the same time) at no cost. People find one another from home exchange website that give detailed lists of homes available. Exchanges take place within the United States or internationally, and the length of stay is whatever the parties agree upon. Exchangers typically do not meet in person but get acquainted via phone calls and emails before the exchange happens. Details, including pets, the use of a car, and cleaning are all agreed upon ahead of time, usually in a written contract provided by the website.

Is my home a good exchange?

Home exchangers are looking for location, location, location. They want to explore attractions in your area, attend an event, or visit family. A beachfront house in California is highly desirable, as is a condo in an exciting city—and even a home in the suburbs will appeal to the right travelers. Because swappers are primarily looking for a convenient jumping-off point for their adventures, your home’s age, floor plan, and furnishings don’t matter too much, as long as it’s clean, comfortable, and accommodating.

What"s a perfect swap home?

If it’s a rustic cottage on a secluded fishing lake or a condo at a popular ski area, a second home is ideal for exchanges. Logistically, you don’t have to vacate your primary residence, and you have more flexibility as to when the swap can happen.  For this reason, many retirees—who often own second homes and enjoy freer schedules—find home exchanges especially appealing.

How do I list my Home?

Start by exploring a few websites where you can view a lot of information for free. Home exchange websites typically charge an annual membership fee of $50 to $100 to list your home. If you decide to join a service, you’ll provide several photos and a detailed description of your home. You’ll also post your desired destinations and travel dates, and you’ll be able to peruse the homes that meet your criteria. It’s common to trade information with several homeowners before finding just the right match, and the process may take several months.

Is my home attractive or good enough for a home swap?

A clean, clutter-free home is universally appealing, and comfortable mattresses and attractive bedding are a must. Your kitchen should be well organized, and Internet access is a big plus. Your guests know they’re staying in someone’s home, so don’t worry about scuffed baseboards and well-worn furniture.  Likewise, don’t expect five-star accommodations when you step into your host’s home.

The tipping point for a home swapper is can you take the thought of strangers sleeping in your bed and using your home while you are far away. Do you fear coming back to seeing your home trashed? This sort of thing rarely happens. But if you are worried, you are not a good candidate for home swapping. But if you want to save some money and you have a sense of adventure why not give it a try.

When Student Loans are in Default - There are Options

Student loan default is a growing problem in the U.S. today. As much as a quarter of all student loan borrowers are one to two months behind on their monthly payment according to the Consumer Financial Protection Bureau. 

Add to that millions of federal student loan borrowers have already defaulted on their loans.

A lack of jobs is one of the reasons for this happening. The unemployment rate for college students that have recently graduated is more than twice that of the regular workforce. 

Because of this, one-third of college students under age 25 have jobs that do not use their recently acquired degree.

Over the past decade, student debt has grown to an average of over $22,000 for graduates of public colleges and universities and over $28,000 for private school grads. 

That’s a 20% increase. A growing number of borrowers – greater than one in eight – have debts of $50,000 or more. For too many, this grim economic reality makes making each loan payment in-full and on-time a monthly struggle.

Student Loan Debt Collection

These college students, who are in default, do not realize there can be thousands of dollars of fees and penalties they are liable to pay. 

Their credit will be damaged for many years to come and it will keep them from acquiring new debt like consumer loans, car loans, and mortgages. They have no choice but to refinance student loan programs and take control of their student loans.

The worse part they do not realize is that even through bankruptcy you can not discharge a student loan. The debt you have acquired will be with you until you pay it off.

The only good point to being in default is you cannot qualify for income-based repayment, an alternative payment plan can have a monthly payment as low as zero for extremely low income borrowers.

If you’ve fallen behind on your loans, check out the new web tool, available on ConsumerFinance.gov and at the new StudentAid.gov, launched by the U.S. Department of Education.

Are Timeshares and Vacation Clubs A Good Deal?

timeshare ownership (Photo credit: GGtimeshares)

Dreams of warm beaches and bluer than blue ocean beaches pervade the mind every summer. Making plans for that ultimate vacation destination fills your thoughts and just has to be satisfied. You finally take that great trip and just fall in love with the place.

Maybe you think owning a bit of paradise would be the right thing to do. Your thinking of buying a timeshare.

Timeshares and vacation clubs allow you the opportunity to become a part-owner of a resort. The ability to return yearly comes with a certain sense of security; your next vacation is always just around the corner. Most timeshares allow you to trade your allotted time for points to use at other vacation destinations. You can enjoy luxury ski chalet holidays, travel to the Caribbean, or enjoy any city destination that is on your plans list.

What is a Timeshare?

Timeshare ownership has you pay an upfront fee plus a yearly maintenance fee. Depending on the timeshare arrangement, owners either own the rights to a specific, fixed week or a floating arrangement, where you can visit for a week within a period of time each year.

What is a Vacation Club?

Vacation clubs are a newer variation on the timeshare model. Instead of purchasing the rights to a specific unit, as with a timeshare, vacation club “members” pay an upfront sum to purchase a number of “points” which can be redeemed for different vacations each year. Yearly maintenance fees still apply.  

Is This a Money Saving Way to Vacation?

Both plans have different restrictions. Timeshares give you a specific week in a specific place from now on. Vacation Clubs have more flexibility with your choice of destinations but you have to deal with a fixed number of points. 

Both of these plans have large upfront costs with an expensive yearly maintenance fee. For example if you take vacation where you pay $200/ night for a week hotel stay over ten years you have shelled out $14,000. A timeshare at the same property might cost $8,000 upfront, with annual maintenance fees of $550. After ten years, you’d have paid $13,500—only $500 less than it would have cost you to pay for normal vacations. Over 30 years, however, the timeshare becomes a much better deal: At the end of that period, you’d have paid only $24,500 for your yearly vacations at a timeshare, as compared to $42,000 if staying at the hotel.

Are They a Good Investment?

For being real estate you would think there is an appreciation value. The value of your timeshare generally decreases sharply after purchasing.  The reason being the number of timeshares is always increasing. New timeshares have an attraction over an older one which people do not prefer. Add to that, it is really difficult to sell your timeshare if the need exists. If you did resell it, you could receive only half of what you paid for it. 

What to Do?

If you like a particular timeshare destination, rent do not buy. Many timeshare owners can't sell or go to their timeshare so they will offer you a great deal for renting them. 

A great place to look for timeshare rentals is Ebay. I personally had a great experience renting a timeshare in Orlando and everything went perfect. Because you’ll be dealing with an individual timeshare or vacation club owner rather than a hotel, be extra cautious to ensure that the deal is legitimate. Call up the hotel ahead of time to verify that the owner in question does, in fact, own a timeshare at the property. Additionally, ask the timeshare owner for references from previous satisfied renters.

Advantages and Disadvantages of Auto Title Loans

Loans (Photo credit: zingbot)

Auto or car title loans have now become a popular way to get a car quickly. They are being widely used, as they bring some real benefits. However, like any cash loan, car title loans imply certain risks. Here are the main benefits and drawbacks of car title loans. 

Benefits: 

1. The main benefit of auto title loans is that they allow borrowers to quickly get the money for purchasing a car. It usually takes a day or two for these loans to be processed. This is because auto title loans comprise a simple process involving a lender examining your car in order to make sure it is worth the amount you’d want to borrow. 

2. Anyone who has a car can obtain an auto title loan. That is because there are no credit score verifications involved in the process. As a rule, a lender will give you a secured loan, meaning that this loan is based on some collateral that you will have to provide. Unsecured car loans involve no collaterals or guarantors. However, in this case the given money will have to be paid back with interests. As practice shows, auto title loans have rather high approval rates, as there is literally no risk for the lenders. This type of loans is also ideal in case you have a bad credit rating. Banks will most likely reject your application if you need money to cover your current debts on payday loans, for instance, or bills. But the car title loan will bring you what you need if you have a car. 

3. While you have your loan out, you will be able to keep your car and drive it. You will have to give the pair of keys along with your title to the lender, but you will still be able to drive. Your lifestyle will remain the same, and you will get your money. 

Drawbacks: 

1. Auto title loans are delivered for a short period of time, usually around a month. The interest rates are low at the beginning, but they will rise to higher levels for every additional month that you need extended. So, if you are borrowing a considerable amount, you may find it difficult to repay in the short period. In this case you may end up paying more than you have expected. 

2. Like any secured loan, car loan implies the risk of losing your pledged assets. The lender will have the right to take your vehicle in case you fail to pay the loan back. The lending company will naturally sell it to make up for the lost money. However, if the sale price is less than the amount you owe, you will be in charge of paying the difference. In addition, if your lender sells the car and makes more than your debt, he will keep that as well. 

3. The attractiveness associated with quick and easy cash can make you take ill-considered decisions. There are always some risks waiting for the borrower which may lead to losing the car. So, make sure you know all the risks involved in your auto loan before your pledge your means of transportation as collateral. 

Finally, auto loans are good ways of getting a vehicle fast, provided that you are able to pay them back in due time. So, it is highly recommended to carefully weigh all the pros and cons before applying to these services.

5 Tips That Can Help Lower Your Homeowners Insurance Costs

insurance (Photo credit: Alan Cleaver)

It's that time of year when my homeowners insurance needs to be renewed. Going through Money Magazine I found a great check list of ways to save money on your homeowners insurance. My insurance went up this year 20%, quite a leap. I'm glad to have it because it is hard to get insurance in South Florida with all the worry over hurricanes. 

It's so bad many companies have bailed out of the state or are just refusing to write new policies. It was back after Hurricane Andrew when I had State Farm insurance. Just four years after, I missed a premium and they dropped me. They would not take me back even though I had my car insurance with them. Also multiple vehicles and equipment insured with them under my company. They had no loyalty to me even though I had coverage with them for the last 15 years.

You need to be prepared for anything that can happen to your home. Having fire extinguishers in several locations in your home for fire protection is one way to protect yourself. Having an alarm with fire and smoke sensors that can automatically call for help when a fire starts it will also help lower your insurance premium. If you are not sure how to get one of these home safety tools, you can go over to this site and learn more.

Choosing Homeowners Insurance, just like all business decisions, comes down to dollars and cents. So for you and me, we must also do what's right for us. Here are 5 tips to help in your adventure in purchasing your homeowners insurance.

A Homes History Matters.

If your shopping for a new home it may seem unfair but claims associated with the property before you by it can result in your paying more than you would otherwise. Certain locations may be more prone to certain kind of claims.

To get past info on claims ask for a copy of the homes CLUE (Comprehensive Loss Underwriting Exchange) report. this will show all past claims. The homes past history of claims will impact all future insurance rates. If you like the house and purchase it you will be stuck with it's history. This could work in your favor because if the report is negative you could negotiate a lower price for the home.

Don't File Small Claims, It Can Cost You Money.

Go with the highest deductible you can afford and use the savings for all minor repairs. If you file a claim for every broken window or leaky pipe you can drive up your premiums 10 to 15 percent. Insurance agents say even just inquiring about a claim can raise red flags. Increasing you deductible to $1000 or more you can substantially save you money on your premium. Check with your insurance agent and get a quote of insurance with higher deductibles. It could save you money

A Bad Reputation Can Cost You Higher Premiums.

When insurance agents give you an insurance quote they tap into the Comprehensive Loss Underwriters Exchange to see your relationship with past insurance companies. They want to see your history of past claims. To many claims raises a red flag and may increase your premiums.

You can check your insurance report for errors at Choicetrust.com, it's free if you have been denied coverage, otherwise it costs $19.95.

You May Have to Much Coverage.

You may have an inflation-protection clause in your policy. This automatically increases your premium with inflation rising. This adjustment may be erroneous. Switch it off and keep an eye on your home value yourself. Sometimes the costs of replacement could be less than when you originally purchased the policy. You could of paid a premium for your home, way above the actual replacement value. Check on your actual replacement cost and lower your premium.

Loyalty is Overrated.

Insurance companies that are associated with banks may be using you to make up for losses in the banking part of the company. Remember insurers are still competing for your business. You may be able to get a better deal as a new policy holder than as a existing one. When it's time to renew check Insweb.com and Netquote.com to see if you can get a better deal. Try to bundle it with your car insurance company, you may get a premium cut of 5% to 15%.

How To Invest In a Secular Bear Market

Bull and bear in front of the Frankfurt Stock Exchange (Photo credit: Wikipedia)

Our guest post is by Tony he invests in stocks, commodities, and currencies and blogs at A Young Investor. 


Before we begin, let's define what a secular bear market is. A secular bear market is a market in which, after more than a decade, is essentially flat. For example, stocks experienced a secular bear market from 1905 - 1921 (17 years), 1966-1981 (16 years), and from 2000 - present (13 years so far). So how does one invest in a secular bear market? Many of the strategies that work in secular bull markets (prolonged bull markets e.g. 1981-2000) don't work in secular bear markets.

Buy & Hold

Buy and hold is popular among long term and mom & pop investors. Buy it today, stuff it under your mattress, hold it for 20 years, and voila! You've just made 10% year-over-year! While buy and hold is great if we're in a secular bull market, such a strategy is doomed to fail in secular bear markets. Since the market is flat for a prolonged period of time, your investment will also be flat during those 10-20 years. Even if you were to buy on the dips, you would still only make a meager couple of percents year-over-year. As a result, only short term - medium term investors and traders make money in secular bear markets. But not all short-medium term investors and traders make money in secular bear markets.

Trend Following

Trend followers, investors who follow the trend (buy when the market starts rising and sell when the market starts falling) perform extremely poorly during secular bear markets. The whole idea behind trend following is that since one cannot predict which way the market will go, it's better to let the market start moving in one direction and then ride the wave. Such a strategy works well in secular bull markets when trends are long and obvious. However, this strategy is not suitable for secular bear markets because neither are the trends obvious nor are they long. Secular bear markets are characterized by short, choppy market movements, which is why trend followers get washed out very easily. E.g. they buy when the market rises, then the market falls, they sell, then the market rises, they buy..... As you can see, trend followers in secular bear markets die by the proverbal "death by a thousands cuts". So how can an investor generate decent returns in a secular bear market? Easy

Contrarian Investing

Contrarian investors (the polar opposite of trend followers) make the most money in secular bear markets. Here's how they do it.

1. Identify the long term cycle. Is it a secular bear or a bull? This is easy to identify, because secular bear cycles usually last 15 years and secular bull cycles usually last 17 years.
2. Identify the line of resistance. In a secular bear market, the line of resistance (the price that the markets won't exceed until the secular bear market is over) is usually the market peak at the beginning of the secular bear market.
3. Whenever market sentiment reaches an extreme (based on a historical perspective) and prices fall extremely fast, it's time to buy. Think of market extremity like an elastic band - the more you stretch it to one side, the more it will rebound towards the other. Buy and hold until the market reaches the line of resistance stated in Step #2.
4. Repeat the above steps until the secular bear market is over. Note: once the secular bull market resumes, continue with your previous buy & hold or trend following strategy.

Check out Tony's great post on The Economy & The Market Are Falling Apart – Warren Buffett.

Top Tips to Buying an Investment Property to Improve and Sell for Profit

Property market (Photo credit: Alan Cleaver)

There are a number of ways to invest in property. You could purchase a buy-to-let in an up-and-coming area, rent it out to cover the mortgage while its value increases and then sell it on for a profit. Alternatively, you could buy a property off-plan and then sell it at its increased market value when it’s completed. Or, if you’re ready for a project and have the time, energy and ability to cope with stress, you could buy a property that needs work but has bags of potential and sell it for a substantial profit. This method of property investment is risky and requires a lot more involvement than simply purchasing a house or apartment but, if planned and executed well, you could be rewarded for your efforts with a hefty return on your investment. Here are our top tips to finding and buying that perfect development property so that you can start making money!

Go to a property auction

Many rundown homes are sold at auction so it’s a great place to snap up that perfect development property. Plus, buying at auction avoids the lengthy property purchase procedures, which can be costly both in terms of time and if it falls through at the last minute. When that hammer falls, the property is yours. To find out when an auction is occurring, speak to a local estate agent or check the property pages of local newspapers.

View a potential property first - and do your research

Whether you’re buying through an agent or at auction, it is essential to view the property first and thoroughly examine it. Consider taking a builder, architect or surveyor with you to figure out just what will need doing, how much it will cost, and how much you could possibly make. Using software such as the Cordell Estimator V5 can help you estimate total project costs. If you decide to bid, research the asking prices of properties on the market in a similar condition so you have an idea how much it’s worth.

Check the legalities

There are certain legalities which could affect the value of the property and what work you’re permitted to carry out. For example, if the building is listed there are a number of constraints on what changes you can make.

Making financial arrangements

If you’re buying at auction, you generally need a 10% deposit to be paid on the day, with a grace period of 28 days to come up with the remaining funds. Whatever you do, don’t buy a property at auction without having secured a mortgage if you need one. If you can’t find the rest of the money not only will you lose the property but you’ll also forfeit the deposit you’ve handed over.

Securing a property

If buying through an agent, the process should be familiar to you. Buying at auction is a different kettle of fish. It can be daunting but just remember not to go over the figure you have in your head from your research or you’ll risk placing yourself in financial difficulties. If you’ve done your homework and keep your nerve, you’ll hopefully emerge with an investment property with plenty of potential!

From-Home Workers Demand More Virtual Office Spaces in Sydney

BAW's Home Office (Photo credit: bayareabaw)

If there’s any industry in the urban Sydney area that has seen tremendous growth in the last few months, it’s the virtual office industry. After all, this only makes sense, since business is always booming within the heart of Sydney, but it is only recently that much of it has been based out of virtual offices. The huge majority of companies still run out of traditional offices, of course, but virtual offices are creeping up through the ranks and gradually increasing in percentage.

From-home workers such as freelancers, startup owners, and other entrepreneurs have started to use virtual offices more and more, almost more frequently than the available amount of spaces can afford. More virtual office spaces are being created every day by the providers, and yet there never seems to be enough for the clients that need them. This demand is good for the virtual office business, of course, and is allowing them to make more improvements and advances.

This business sector has taken off tremendously due in part to this advent of new improvements within many virtual office setups and the continued cataloging and availability of these offices around the Sydney area. There hasn’t been much of a lack when it comes to virtual offices in Sydney, but now more than ever there are more users wanting their own virtual offices, and therefore more must become available.

On the topic of virtual offices in Sydney, a spokesperson from a said: “The valuable service that is made available to just about anyone through virtual offices has to be made even more widespread and accessible. It would be a huge waste if all those people who want their own virtual office setup were turned down any longer due to insufficient options. That’s why we’re trying to expand our business and make those offices available in some of the further areas of Sydney.”

Sydney’s economic systems and business environment can certainly take more virtual offices, as it’s a city that continues to develop and grow every year. There’s constantly more being done to stimulate the Sydney economy and promote business development in every area of the city. Virtual office companies are just working to match the demand and the opportunities.

And entrepreneurs and freelancers are jumping to take advantage of those new options. “I can finally set up an office I can afford,” said one freelancer, “and still be able to get things done around the home. I don’t need much as far as an office setup goes, really just somewhere to take clients so that they know I’m a professional business person. My virtual office allows me to meet with them, take their calls, and receive mail from them at an official office location, and they never even have to realize that I work from home at all.”

That’s just the review of one of the many clients. Others when questioned have said the same things, claiming that the virtual office setups help them to do more serious business and work in a more official capacity. There are many different purposes that virtual offices are used for, but the numbers show that a huge percentage of them are entrepreneurs just starting out and freelancers needing a professional business front.

The Central Business District of Sydney is the main location where virtual offices are now offered for rent, but in all the surrounding areas there have been new virtual offices opened and an increased amount of office space available. Supply is sometimes short due to the demand being so large in areas like Parramatta, Chatswood, and Penrith, but in the very near surrounding areas the demand is smaller, the prices are cheaper, and there are many more options.

This is a guest post by financial writer Paul Groberts.

Powerful Ways Private Health Insurance Can Save You Money

 (Image credit: Getty Images via @daylife)

Looking for a way to balance your budget and save money on your health insurance cover?  The cost of health care is increasing every year and a lot of people do not know about all the options available for saving money when it comes to their health care. To start the ball rolling, there are several things that you are required to do, and specific information you need to be aware of. Taking the right action will help to make sure that you and your family will get the right benefits and payments.

Some of the benefits of having private health cover include:

• You have the ability to be treated by the doctor of your choice. 
• You can expect less time waiting for elective surgery. 
• You will be in control of when your treatment takes place and where.
• Government funds are freed up as the strain on the public hospital system is lessened and hospitals can be upgraded
• You can have access to services that are not listed under the Medicare system like alternative therapies, chiropractic, and dietary advice to name a few.

There is a good deal of federal government initiatives all set up to encourage more people to take out private health insurance. In short, these can help you to bring down the costs of your private health insurance.  What's more, in certain circumstances, if you choose not to take out hospital cover, you may be required to pay an additional surcharge during tax time. Government initiatives you may qualify for include:

1.  Receiving a 30 percent Private Health Insurance Rebate (source – Businessweek)

2.  Lifetime Health Cover

3.  Medicare Levy Surcharge

Why the 30 Percent Rebate Saves You Money

Now a lot of people consider private health insurance as something only the wealthy can afford, with the 30 percent rebate in place, more people are finding it affordable.  Although premiums do rise because of inflation and other factors, the 30 percent rebate has made cover so much more affordable.  The premiums for private health funds vary based on the actual cost of health care and the kind of cover you need.

How the Medicare Levy Surcharge Works

The Medicare levy is 1.5 percent of a taxpayer’s income and is used to fund the Medicare System.  It is assessed to taxpayers who are without private hospital cover and fall into a certain income bracket.  The Medicare levy surcharge is 1 percent of taxable income and imposed on singles, couples, and families whose income exceeds the threshold and who don’t have the right amount of hospital insurance.

The easiest way to save money and avoid the surcharge altogether is to have a hospital cover policy that has been approved.  This hospital cover policy must be set up through a health insurer that is legally registered with $500 or less per year for single polices or $1,000 per year for couples and families, or just a low front-end deductible.

The Purpose of Lifetime Health Cover

Lifetime Health Cover applies to all residents born after 1 July 1934, and while not all funds offer such policies, you are likely to find one suitable for you. It sets your premium rating for life when you first take out private health insurance hospital cover. The sooner you take out hospital cover the better. If you do not have hospital cover by the 1st of July after your 31st birthday and instead wait to take out hospital cover later on in life, you will pay a 2% loading on top of your premium for every year you are aged over 30.  After loading Lifetime Health Cover onto your private hospital insurance continually for 10 years, the loading will be removed as long as you keep your hospital cover.

This is a guest post by financial writer Paul Groberts. 

How to Choose a Franchise Opportunity

(Photo credit: betsyweber)Starting a business from scratch sometimes can prove to be very difficult. You may be new to the business world and you may not have a clue where to start. Many people skip the whole process and look for a franchise to buy into. They feel that the extra hand holding and developed ideas can be a short cut to success. Jumping on the already established business model of an existing chain will get them where they want to be in a shorter period of time. 

When starting a new business from scratch or going the Franchises route the steps are some what similar.

1. There are many different franchise opportunities and with each there are different criteria and financial requirements. You need to pick a franchise that you can afford. Be sure to obtain a complete list of all franchise fees, taxes, licenses, payroll and employee benefits, for at least one year. Either have all necessary cash or financing ready to pay expenses for the first year because when becoming established, you may not make much income to pay all expense. Having a budget for the first year and seeking financial and accounting help in advance will help guarantee success.

2. Pick a franchise that matches your likes and goals. The first years will be difficult, having a franchise business that you enjoy will help you get through the tough times. When you are in a franchise that you do not particularly like but pick for the financial reward and it starts to have problems you may not be so motivated to see the process through.

3. Have marketing research done before putting any money down on a franchise. See if the area will support the business you are starting. Do you have the population and need for the franchise you are starting. Does the franchise have an appeal and provide something needed in the area? 

4. Visit other franchises owners. Talk to people who have already taken the steps you are about to take. Ask them about any possible problems that may come up. Ask them about the mistakes they made and what they learned from them. Even if you have to travel, this one tip is the most important because the people you talk to will help you make the final decision in pursuing this franchise business. Making this connection sets up a future friend/contact that you may later need for help or advice.

5. Review nationwide ratings on the franchise. The International Franchise Association is a trusted site for quality ratings on all franchise opportunities. Get as much information as possible about the franchiser's history, number of franchisees, support provided and the skills needed to run your franchise business using the franchiser's tools and training.

6. Compare different franchises in the business you would like to go in. Compare start up costs, expense and income information from more than one franchise in the niche you want to pursue. Check for different contingency's in the franchise disclosure documents. Find out what the procedures are for the different problems or circumstances the business may face.

Overall, go slow in the purchase of the franchise. Take all the time you need for full disclosure and planning.