Author Archive for Tom
Is It Easy to Obtain Cash Advance Loans?
It is inevitable that you may need cash for emergency purposes; however, you have limited income resources. Fortunately, easy payday loans are available to
aid you in fulfilling financial obligations that transpire unexpectedly. Easy payday loans are short-term loans that can be repaid until your next payday. These loans can be availed of quickly because the approval period takes only a short time. The process for both application and approval is quick and simple.
If you avail of easy payday loans, you can obtain a loan amount that ranges from $100 to $1000. Most lenders of these types of loans offer larger loan amount to people who have high monthly income. Thus, the loan amount you can avail will be based on your monthly income.
On the other hand, since easy cash advance loans can be availed in no time, most lenders may charge you with high interest rates. This is because lenders want to earn as much interest as they could in a span of 30 days or as soon as you get your pay check. However, you should not worry too much on the high interest rate since no easier way of getting money is available than obtaining such loans. The high interest rates can also be lowered if you are able to find reputable lenders offering reasonable loan packages.
In addition, these loans do not require collateral. Unlike other types of loans necessitating for collateral, these loans only require borrowers to issue a post-dated check in the amount of loan agreed upon plus any other charges that may be incorporated with the loan. The lender will present the post-dated check to your bank and draw the money you have loaned. More so, borrowers with poor credit rating or bad credit history can also avail of these loans. This is because the lenders are secured as the borrowers need to present a post-dated check.
When applying for easy payday loans, you should make sure that you consider several factors. Do not rush to avail these loans. You need to make sure that the check you will issue has adequate funding so that you may not get into any kind of trouble both with the lender and the bank. More so, it is important that you do not avail of any amount of loan beyond your capacity to repay.
You should also compare the rates of interest offered by various lenders. Choose a lender that offers a reasonable rate of interest and loan package. Make sure the one you choose suits you the best. In addition, when availing of any type of loan, you should ensure you can handle your responsibility. It is important that you comply with the terms and conditions provided by the lender. Thus, you should also make sure to read the terms and conditions of the lender thoroughly so that you would not be committed to anything against your preferences. Check if there are any hidden costs or fees and make sure you comply with the agreed schedule of repayment.
Diversify Savings into Other Currencies & Overseas Assets
Is it time to leave the U.S.? Look outside the borders of the U.S. for lifestyle and investment opportunities that save money, preserve wealthWith an unprecedented increase in federal spending, a record number of newly printed dollars entering the system, and the shrinking tax base, time is
running out for savers, earners and investors who still have all their savings, salaries, homes and their investments denominated in U.S. dollars. The U.S. economy looks grim…multi-billion dollar bailouts at taxpayer expense…billions of dollars in stock value evaporating overnight…dried up credit…collapsing mutual funds…disappearing retirement accounts.
As someone focused on all things financial, I believe we all owe it to ourselves to constantly explore all options that can help grow and preserve our assets. One option that’s become increasingly attractive for some Americans is to get out while you still can. This is especially true for baby boomers and, for that matter, anyone looking at long-term financial planning and retirement options. It makes a lot of sense to diversify savings into other currencies and overseas assets. It also makes a lot of sense to search for new areas of opportunity beyond America’s borders.
There’s never been a better time to leave the United States in our 234-year history. These are things you probably won’t read about in the mainstream media. But, each day, more and more savvy Americans are joining the ranks of retirees living like royalty – but on tiny budgets. They hope to enjoy a million-dollar retirement without touching their savings. It’s an approach most people don’t know much about, yet it’s easily accessible to most Americans.
I suppose I run the risk of being called “unpatriotic” or offending some people. This is nonsense. The American Dream is all about people having the right to seek out opportunities, go wherever they want and create their own destinies. It’s only logical that some investors will search for that original America elsewhere in the world. While not suitable for many people, from strictly a financial viewpoint, it’s worth serious consideration.
Two threats are increasingly eroding our investments and savings: inflation and higher taxes. America now spends far more than it earns in tax revenue. To close this gap, Washington does two things: it borrows more dollars and it prints even more of them. Almost every president since World War Two has adopted this irresponsible fiscal policy; but the Obama Administration has escalated the scale of this effort to a staggering and perhaps irreparable level. The amount of U.S. government debt forced into the hands of the public has risen by $3.62 trillion in just over two years. That’s an increase of 61%!
Meanwhile, over the last four years, Ben Bernanke has managed to create out of thin air 60% of the entire monetary base of the country. This is bad news for the U.S. dollar. That’s because the more dollars the Federal Reserve creates, the less each dollar is worth. The dollar has already lost 95% of its buying power since the Fed was created in 1913. Given the unprecedented increase in dollar creation over the last four years, many economists expect each one of today’s dollars to hold onto just half their current buying power by 2020.
Couple this inflation threat with the 100% certainty of higher taxes in the future. If you earn $62,068 or more, you already pay 80% of everything collected by the IRS. But at the other end of the scale, about 50% of adult Americans don’t pay any taxes whatsoever. This shrinking tax base will force Washington to collect more of the tax take from those who already shoulder most of the tax burden. Anything else would be political suicide.
There are really only two ways to improve your long-term financial position: 1) Grow your assets faster than inflation and taxes can erode them; or 2) Dramatically reduce your expenses. Stocksonwallstreet.net focuses on equity investments — but it’s going to become increasingly difficult for investors in U.S. equities to stay ahead of the game in the tumultuous brave new world that lies ahead. So, here are a few alternative investment strategies worth considering:
- Smart investors have already positioned themselves for the inevitable when the dollar fails. They’ve diversified into non-dollar denominated investments, and there are a lot of them to choose from. Stocksonwallstreet.net regularly discusses equity investments overseas and in emerging markets, so I won’t dwell on that here.
- Invest in foreign currencies directly. Currency investing can be tricky and volatile, but in countries like Japan and Hong Kong, financially savvy housewives are heavy day traders of currencies. There’s no reason Americans cannot do the same. Just beware and educate yourself well before diving in.
- Another strategy is to invest in real estate that’s bought and sold in a currency other than the dollar. For example, Brazilian real estate is traded in the Brazilian Real, a currency that’s very strong and will probably get stronger as the dollar declines. However, overseas property investments can be fraught with scams and fraud, so buyers beware! A lot of foreign investors have been burned in places like the overheated Shanghai property market. Given the pitfalls, this is not an investment option I’m not particularly keen on.
- The erosion of the dollar can also make the value of the currency part of the equation in determining where to retire. In many places around the world, you can enjoy an upscale but low-cost retirement…a wonderful high-quality lifestyle for a fraction of what it costs at home. There’s never been a smarter time to explore. There are already 7 million Americans abroad for whom the American Dream has simply been priced out of reach.
you to the poorhouse…where the government doesn’t involve itself in every aspect of your personal life…and won’t even charge you taxes. A house on the beach, a mountain villa, or a super-modern city condo can cost 50-75% less than it might at home. Same goes for the overall cost of living. A week’s worth of groceries, dinner at a fine restaurant, a night at the symphony, even full-time household help – like a maid or a gardener – can cost pennies on the dollar.
U.S. citizens and green card holders cannot legally escape the IRS no matter where they live. But there are places where you’ll pay little or no local income or sales taxes and where property taxes are laughably low. You can dramatically reduce your cost of living by as much as 80% and still live a high quality lifestyle — places like Ecuador, Costa Rica, or Panama and Mexico which are within a 3-5-hour flight of the U.S. And it’s not just old ‘geezers’ who are looking at overseas retirement. Many savvy young Americans have already positioned themselves for the inevitable when the dollar falls — spending years researching countries for overseas retirement to ensure they can preserve or extend their hard-earned assets.
So I say: Go. Strike out. Smart investors need to shield themselves from disaster when the dollar falls. It takes a global outlook to be able to find and evaluate them. Look outside the borders of the U.S. for lifestyle and investment opportunities that save money, preserve wealth and take advantage of global events that many in the U.S. never even hear about.
Investing When You’re Young – The Time Value of Money
The Story of Jack and Jill
Delaying making investments in order to launch your career can cost you dearly later on. Smaller investments made between the ages of 18-25 will yield much greater returns than larger investments made later on over a longer period from ages 26-65. Consider the classic parable taught in many basic economic courses:
Jack decided not to go to college. He got a job at 18 and invested $4,000 each year into an IRA. He stopped after eight years after investing a total of $32,000. His sister, Jill, went to medical school, started her medical practice at age 26, at which point she began contributing $4,000 to her IRA. Jill did this for 40 years from 26 to 65. She invested a total of $160,000 and put her money into the same investment as her brother. Jill started investing the same year Jack stopped, and she saved for 40 years compared to just eight years for her brother.
By age 65, whose IRA account do you thing was worth more money?
Assuming both Jack and Jill earned a 10% annual return, Jill accumulated $1,327,778. But Jack had $1,552,739 – $224,961 more than his sister!
|
Jack |
Jill |
| 8 Investments ($4,000/yr) – Ages 18-25 | 40 Investments ($4,000/yr) – Ages 26-65 |
|
Ultimate value at age 65: $1,552,739 |
Ultimate Value at age 65: $1,327,778 |
Jack’s account grows to a higher value because he started sooner!
+$224,961
Jack stopped investing at age 26 having invested only $32,000 to Jill’s $160,000. But Jack’s money earned interest for eight years longer than his sister. It wasn’t the money that made him successful – it was the time value of money. Jack didn’t put off investing when he first launched his career. By investing sooner than Jill, his account grew larger.
The moral of this story is not to forego a college education and its promise of higher earning potential. No doubt, Jill earned more disposable income during her career. But Jack’s investment head start was far superior, resulting in substantially greater savings.
Without question, procrastination is the most common cause of financial failure.
So if you are looking to invest early read my past articles on How to Open a Brokerage Account and Top 10 Brokerage Accounts to help you get started and on you way to gaining true wealth.
Like this article, then subscribe to the Stocks on Wall Street RSS Feed.
Tax Cut Parable
How far the pendulum should swing with regard taxing the rich to subsidize the poor is a never-ending controversy. While exact percentages vary depending upon the source, there is no doubt the wealthy pay a disproportionate share of taxes in the U.S. Some estimates suggest 10% of U.S. taxpayers contribute 60% of the taxes collected, 30% pay 37%, and 20% pay 4%. Others put the percentages wealthy taxpayers pay even higher. Few question the need for those who are better off to pay a higher proportion to help those in need or to provide a social safety net. The debate centers around what truly constitutes real need and where you draw the line on who is truly deserving of social welfare. Many folks (particularly in California) never seem willing or able to grasp that, without fair incentives for those who truly drive the economic engine of growth — and, by the way, who also pay the bulk of the costs — you end up removing hidden subsidies that a large part of the populace have become overly dependent on. The U.S. has evolved into a culture of entitlement and an addiction to welfare that will be difficult and painful to ever reverse. I, for one, believe the following tax parable cuts to the chase. I’d be interested in seeing a thoughtful counter to this parable.
A TAX CUT PARABLE - Every night, 10 men met at a restaurant for dinner. At the end of the meal, the bill would arrive. They owed $100 for the food that they shared. Every night they lined up in the same order at the cash register. The first four men paid nothing at all. The fifth, grumbling about the unfairness of the situation, paid $1. The sixth man, feeling very generous, paid $3. The next three men paid $7, $12 and $18, respectively. The last man was required to pay the remaining balance, $59.
He realized that he was forced to pay for not only his own meal but also the unpaid balance left by the first five men. The 10 men were quite settled into their routine when the restaurant threw them into chaos by announcing that it was cutting its prices. Now dinner for the 10 men would only cost $80.
This clearly would not affect the first four men. They still ate for free. The fifth and sixth men both claimed their piece of the $20 right away. The fifth decided to forgo his $1 contribution. The sixth pitched in $2. The seventh man deducted $2 from his usual payment and paid $5. The eighth man paid $9. The ninth man paid $12, leaving the last man with a bill of $52.
Outside of the restaurant, the men began to compare their savings, and angry outbursts began to erupt. The sixth man yelled, “I only got $1 out of the $20, and he got $7,” pointing at the last man. The fifth man joined in. “Yeah! I only got $1 too. It is unfair that he got seven times more than me.” The seventh man cried, “Why should he get $7 back when I only got $2?” The nine men formed an outraged mob, surrounding the 10th man. The first four men followed the lead of the others: “We didn’t get any of the $20. Where is our share?” The nine angry men carried the 10th man up to the top of a hill and lynched him. The next night, the nine remaining men met at the restaurant for dinner. But when the bill came, there was no one to pay it.
Cut Corporate Tax
The U.S. has the second highest corporate tax rate in the world, even after you factor in various corporate deductions and tax loopholes. We should lower our corporate tax rates to make the U.S. more competitive and in line with the international market. It’s really very simple common sense: You don’t raise prices in a tough environment as some in Obama’s Administration propose. Raising corporate tax rates will only serve to choke off business and discourage growth and production. Consider this IRS experiment conducted in 2005. Overseas foreign earnings have been taxed at 35%. In 2005, the IRS cut the corporate tax rate on foreign earnings to 5% for one year. Result: The IRS brought back $386 billion in new money and generated $18 billion in new tax revenues. The year before — with 35% rates in force — almost nothing was brought in. This really is not a left/right issue. Rather, it’s simply a fundamental competitive issue. Lesson learned: The U.S. is better off luring capital back home than forcing it. Recent coverage of the G-20 going after tax havens and pressure to increase U.S. corporate tax rates are yet more examples of how current populist backlash is mutating tax policy in bad directions.
