3 Best Ways to Build Equity Over the Next Five Years

Sometimes it's not enough to simply make money. Unless you want to see the money you earn disappear with no return, you'll need to look into ways to build personal equity.

Making smart investments that either build value over time or hold their value for a reasonable duration ensures you can actually spend money to make money. Here are a few of the best ways to build equity over a manageable, five-year period.

Purchase a Home

Intelligently investing in real estate is one of the surest ways to turn a small investment into a big payday down the road. A large or lavish home isn't imperative. With proper research, you can end up spending less on a decent condo investment than you'll spend on monthly rent.

You can also see a huge turnaround on a house that has seen its value plummet over resolvable issues, like worn paint or a dead lawn. Keep the property for several years and do what you can to improve the property without investing too much more money. After several years, put the house back on the market.

With just a few valuable improvements, you could see a decent return. Be careful, though -- the real estate market is volatile and neighborhoods can change over time. Be sure to thoroughly research both the property and neighborhood so you can avoid any future surprises.

Invest in Stocks and Bonds

The great thing about the stock market is that, while many of the highest payoffs come from the biggest risks, there are still safer stocks that can give you a decent return on investment through smarts and patience. Spend some time learning about stocks that interest you and don't be afraid to consult a broker or three. Once you find stocks and brokers you can trust, sink a few dollars into a smart investment and bide your time.

There is, of course, always the chance that your investment gets lost in the often unpredictable market, so start small so you can get your sea legs. And when it comes to bonds, keep your eye on interest rates -- these will affect the return you receive at maturity.

Purchase a Car

The key to making the most out of your automotive investments is buying vehicles that keep their value. Aside from those cars that will eventually become sought-after vintage models, all vehicles depreciate in value. In this case, it's not about identifying an investment that will turn you a profit in a few years, but finding a good place to spend money where you would spend it anyway.

If you must drive, make sure industry projections show that the car will retain its value for several years and with minimal depreciation. For example, the 2014 Ford Fusion is at the top of the list of current cars slated to hold value for several years to come.

Whether you're aiming for property, stocks, or more obscure investments like precious metals, it's essential to do your research and think long-term. Ask experts how your investment might change over time. Consider the benefits and drawbacks, and whether it's about making money later or saving money today.

4 Must-Know Tips for Protecting Your Identity

Identity theft is when someone steals your personal information and uses it without your permission. It can cause serious havoc to your finances, credit history, and reputation. That’s why you should take preventative measures to make sure it doesn’t happen to you. Take a look at these four must-know tips for protecting your identity.

Closely Monitor Your Credit Accounts

According to Javelin Strategy and Research, 11.6 million Americans were victims of identity theft in 2012. Because of this, you should closely monitor your credit accounts to make sure it doesn’t happen to you. Going paperless and setting up automatic payments with your credit accounts is fine, but you should still monitor them for unusual behavior. There are several types of identity theft — tax related identity theft, child identity theft, medical identity theft, and financial identity theft. So, monitor all of your accounts, not just the ones that give you credit.

Use Secure Passwords and Virus/Firewall Protection Software

The Internet is a common place for people to try and steal your identity. They prey on people who are too trusting and not careful with their personal information. Avoid becoming a victim by never buying anything from a website that doesn't have a BBB seal on the bottom or a trusted site symbol. Also, only use secure passwords when creating merchant accounts online. Additionally, protect your computer with a good virus protection software that has firewall and spy-ware built in.

Shred Everything that Has Your Personal Information on It

If you don’t own a shredder, it’s something you should invest in. You should shred everything that has your personal information on it so that it doesn't get in the wrong hands. This includes preapproved credit card offers, bills, and anything with your name on it. Tearing these things in half isn't enough; you should get a shredder with a cross cut to make everything unrecognizable. Old credit cards should also be shredded to protect you from identity theft.

Get a Credit Report Once a Year

Another thing you should do to protect yourself from identity theft is to check your credit report once a year. You are allowed to do this without penalty to your credit, so there's no reason not to do it. When you get your report, look for identity theft threats and take care of them before things get out of control. Identity theft is one of the fastest growing crimes in the world, so checking your credit is important.

Even if you take all of these precautions, there’s still the risk of identity theft. If you suspect your identity has been stolen, report it to the Consumer Response Center at the Federal Trade Commission. Also, notify all of your credit card companies and accounts to put a hold on them. Additionally, you may need to contact the Social Security Administration and each of the credit bureaus. The sooner you act, the better. Of course, the best thing you can do is take preventative measures in the first place.

 

Retirement: Four Tips for Getting Your Finances in Order

Getting your finances in order before you retire is a great idea for anyone who is either planning their retirement, or who has suddenly found themselves in a position where they are being forced to retire. Financing for your later years doesn't have to be scary. If you are looking for a way to get your money in order before you stop working, try these four tips.

Rid Yourself of Debt

The best way to make sure that you don't outlive your money, is to cut your expenses down as much as possible. Make plans to use your retirement funds to pay off any existing debts that you have. If you don't have enough in savings to cover your debts and your income will not give enough coverage, you might want to consider filing for bankruptcy. According to a chapter 7 attorney in St Louis, getting rid of any debt is the best thing you can do to avoid bankruptcy.

Know the Facts

Figure out what your income will be. There are many people who do not know how much they can expect from their pension, their retirement fund, or Social Security. Fortunately, there are a lot of ways to find this information. Several months before you retire, gather together any documentation you have about your retirement accounts, and contact each fund manager. Also start the application process for Social Security. This usually won't take long and can help you on your way to budgeting and planning for the future.

Future Planning

Decide what you want to do in your retirement. Believe it or not, very few people actually have a plan of how they will spend their retirement. Think about your day to day life, and how you want to spend it, not just a once-a-year trip you'll take. Look into volunteer opportunities, hobbies, and maybe even part-time work. This is the chance to try something new, or something you always wished you could do. Once you know what everyday life will entail, you can plan a more precise budget.

Make Cuts Where Possible

After figuring out what your income and expenses will be, it's time to make a spending plan. If you have more income than expenses each month, come up with a plan to save the money and/or carefully plan major purchases. Be sure to include every payment you might be making, and even unforeseen events like hospital visits or house repairs. If your expenses are greater than your income, however, it's probably time to make some hard decisions about where you can make cuts, or start looking for part-time work. Perhaps it is feasible for you to sell some assets or old valuables to make sure you have enough money.


With these simple tips, panning for financing your retirement won't be a daunting task. The key is organizing and making a plan that will be easy for you to follow. Retirement is a chance to enjoy the fruits of your labor, so start by preparing now to have the time of your life.

Five Surprising Things That Can Cause Insurance to Rise

Insurance premiums are at an all-time high, especially for vehicles, so here are a few causes that aren't always considered by consumers that might be increasing the cost, without your knowledge. These are applicable for everyone, whether you are looking for regular car insurance, right through to business van insurance.

Turning 50

Believe it or not it’s not only youngsters that get penalized for stereotypes surrounding their age. Statistically, people in the 50 plus age bracket are more likely to have road accidents than other demographics, so premiums are totted up accordingly. Shop around to ensure you’re not paying over the odds for your age; some companies will price match, so speak up and ask your provider if that’s a possibility. 

Credit rating

Most insurance companies will run some form of background check before agreeing to offer you cover and your credit rating is often the first of these. If you happen to have any missed mortgage repayments, credit card charges, or broken payment contracts, then the cost of your insurance is probably going to suffer as a result. This should be a consideration when deliberating whether to apply for another new credit card.

Vehicles power

This is where companies are really making their money. If you happen to own a farm and drive a vehicle suitable for use on that farm, such as a high powered four by four, your insurance will rocket, even though technically you need such a vehicle. You will also find that may insurance providers will not cover this type of vehicle. Where possible, be sensible with what you ‘need’, rather than what you want and be assured you will pay a sensible price.

Security

Security may seem obvious, but it isn't considered by many motorists and it is a hugely influential factor. This includes where you park your vehicle when at work and home, as well as whether it has an alarm. If you go all out with security measures as well as storage (even if that means hiring garage space), you will probably find there is a drop in your annual insurance fee. 

Payment method

Most insurance providers reward customers that pay annually rather than monthly, so it’s always worth asking for a price for a year as well as the price for monthly installments when inquiring. Save bits and bobs of cash where possible throughout the year, to make this one off payment less of a shock.

Bank Interest Settlement Calls Time on QE

Lincoln memorial cent, with the S mintmark of the San Francisco mint. (Photo credit: Wikipedia)

Well before American sub-prime debt imploded five years ago, sceptics (castigated as cynics at the time) were questioning the AAA ratings attached by US agencies to packages of individually dodgy loans. Since Lehman Brothers' demise and the subsequent global financial crisis the rating agencies have leant the other way, eager to demonstrate fearless rigour in their risk assessments by downgrading countries right, left and centre. The European Union, having become increasingly upset by the downgrades gratuitously dished out to its blameless members, has decided enough is enough. Henceforth, American agencies can downgrade European sovereign debt no more than three times a year. They must also give Brussels a day's notice of their announcements. And if they fail to comply, well, they will be very very naughty.

The EU would have derived little benefit from advance notice of Friday's economic announcements. Euroland's current account surplus in May was a seasonally-adjusted €19.5bn, down by a quarter from the previous month. Italian wages were up by 1.4% on the year, almost keeping pace with Euroland inflation. UK public sector net borrowing rose to a lower-than-expected $10.5bn in May. Headline Canadian inflation rose to 0.7% while core inflation (ignoring fresh food, fuel, tobacco and mortgage interest) was steady at 1.1%. Canadian retail sales growth remained slow, up by just 0.1% in April, and would have been negative if not for higher car sales.

Only the Canadian dollar showed any reaction to the day's data. The Loonie lost a cent to the US dollar, contributing to a loss of three cents for the week. It touched its lowest level in nearly two years against the US dollar and came close to the lows against sterling that it clocked in December 2011 and May, October and December last year. For more information on currency exchange please click here.

The euro was resilient in the face of news that the coalition in Athens was being rent asunder by a spat about funding for the state broadcaster, ERT, and that EU finance ministers had failed to reach agreement on a plan for restructuring and rescuing banks. It held its own against the Swiss franc, the Japanese yen and the pound but lost a cent and a quarter to the US dollar.

An unlikely grouping of the US dollar, the antipodean dollars and the South African rand delivered Friday's best performances while the northern Scandinavian crowns were hung out to dry. The Norwegian krone had a second difficult day while the Swedish krona played catch-up with the day's biggest loss, -1.5%. For more information on international money transfers please visit the Moneycorp website.

This week gets off to a slow start with Italian consumer confidence and balance of trade, German business confidence and the Chicago purchasing managers' index. That will give investors oodles of time to ponder the annual report from the Bank for International Settlements (BIS). It calls on governments to undertake a "forceful programme" of "repair and reform" to restore global economic normality. At the same time it advocates turning off the tap of quantitative easing and calling a halt to the "whatever it takes" mentality among central banks. Whilst they have bought time for governments to get their acts together, "central banks cannot solve the structural problems that are preventing a return to strong and sustainable growth". Mr Carney, you have been warned.

Technical Levels
	EUR/USD		GBP/USD			GBP/EUR
Resistance:	1.3175		1.5450			1.1795
Support:	1.3000		1.5220			1.1630
Major economic releases due today
	LAST			EXPECT
German IFO Business Climate	105.7			106.0
Sterling Today
Euro		1.1720
US Dollar		1.5365
Australia Dollar		1.6740
Canadian Dollar		1.6140
New Zealand Dollar		1.9880
UAE Dirham		5.6425
Swiss Franc		1.4370
SA Rand		15.75
Yen		151.07
		Date (e.g. 24/2/11)			Time (e.g. 16:27)
Indicative rates as of		24/06/13			08:45

Wanted Ideal Retirement Home: What to Consider Without Hurting the Budget

retirement (Photo credit: 401(K) 2013)

After retirement, we often feel the urge to settle in a place away from the hassle and noise in the city. Retirement is when we take charge of our time and being able to enjoy laid back moments with our family or partner. No more workloads to accomplish and no need to rush to the bus stop. 
Finding the most ideal retirement home is an essential factor to truly enjoy your retirement. Obviously, you have longed to relax in the comfort of your own house and make the most of the fruits of your labor. Thus, it is vital to take into account several factors in hunting for the best retirement home. 

It’s All About the Money!

Yes, budget is the primary thing to consider when looking for a home. It’s already given. But, is it possible to find what you desire without hurting your budget? Are you going to buy a retirement house with all the luxuries, then making you broke in the end? If you are clever enough, you can get what you want at the right price.

What to look for:

● (Affordable) Dream Location - Do you want to breathe fresh air from the sea? Well then, beachfront retirement home is perfect for you. However, most retirement houses nearby the sea are quite expensive specially if you are thinking of well-known place like Miami. Sparkling blue water and peaceful swells - if you desire for these kinds of scenarios, look for unexploited places with enchanting sea view. Often times, less popular locations boast beautiful beaches and are more affordable.

On the other hand, those who want to enjoy country life can easily find low-cost retirement homes. Whether you want to be close to nature or you just want to distance yourself from the city life, there are many houses you can buy in smaller towns. If you have a dream location, carry out a thorough search in the entire area to find cheaper options. No sweat, you can use the internet in searching.

● Safety Measure - When looking for a retirement home, check the background of the community. Search about the crime rate in the area. Does burglary always takes place? Then it’s a big No-no. You cannot afford to risk your safety just because of a cheap retirement house. Is the neighborhood peaceful? Visit the place and observe the vicinity. Safety is an essential aspect that should never be neglected. Retirement home should be a place where you can sleep soundly at night without any worries. You don’t wanna waste your hard-earned money in a home that is not safe.

● Accessibility to Recreation Venues - Many housing developments these days can be considered as retirement houses. Some seniors want to settle in a community where they can mingle with other people (not just those they have known since they were in fourth grade). If you love to play golf, search for communities with golf course. In case you enjoy strolling at the park every afternoon, there are housing areas with leisure parks. What sort of recreation activity you enjoy the most? Look for it in the place where you want to spend your retirement. Every single penny you shell out will be worth it if you can enjoy great amenities.

In general, a retirement home should give you a tranquil life. There are many options you can think of: Buy a stand-alone house in a rural area (or urban if you still love the city life) to live independently. Otherwise, you can opt to retire in a housing community, such as Lincoln Military Housing, where you can meet new people. Keep in mind when you know what you want, it will be easier to find your retirement home.