I have come across many examples of small business owners or directors who use personal borrowing to supplement their business cash flow. This practise may not strictly be the right way to finance a business but certainly it has for a number of years, been the reality for many businesses. Unfortunately due to the effects of the credit crunch, personal credit is now becoming much harder to obtain. As has been widely reported, lenders are being...more
Deferring taxes on your income is an investment strategy in which income taxes are paid at a later date for money invested now. The benefit of tax deferral is that it provides more money for you to invest now.For example, you are able to deduct $1000 from your taxable income this year and invest it into an interest bearing account, and in return, this deduction allows you to pay approximately $200 less in income taxes for the current year. You...more
The United States is home to 94% of all the lawsuits in the world and 75% of the worlds attorneys. Very few of them are willing to help you get mortgage debt relief, or give you free financial advice, but many are willing to come after you for the default judgment.. Once you are served with a lawsuit, the clock starts ticking. You may be served by mail or in person and you have a very limited amount of time to answer the lawsuit. In most instances, the lawsuit will typically overstate the claim. For example, if you were involved in an automobile accident that caused $5,000 of damage to the other car and $5,000 of medical damages and you get sued, it will be for an amount much greater than $10,000.Theyre going to say things like, I have headaches now and I get cranky with my kids. Youre going to file a claim for much more than the actual damages. If they can also say they suffer from emotional distress, which means more money for them.In most jurisdictions, you have 20 to 30 days to file your answer has to be before the court. And, it must be in the right format and have substance to it.The discovery phase begins next and is the most expensive phase of a lawsuit. The...more
Hedging, understanding the benefits of risk management in an enterprise wide solution. Risk management and hedging is a useful tool to reduce market place liability. Here are some tips on its uses.Second of a two part articleBefore discussing the use of hedging to off-set risk, we need to understand the role and the purpose of hedging. The history...more
Understanding Market Risk and the solutions available to mitigate or eliminate financial loss in today's global market.First of a two part articleFund managers, whether they be equity or bond traders, know all too well that returns are not simply a result of their asset selection prowess. Many external factors come into play. But what are the...more
If you are new to real estate investing, you are probably wondering where am I going to find my first real estate deal? There are actually a number of very effective methods you can use. Below I will touch on 7 different methods to find deals. They are a pre-foreclosure listing service, major newspapers, post cards & fliers, bandit signs, MLS, a realtor, and a wholesaler.Method one is to purchase a list of pre-foreclosure homes from a listing service. Here are just four such services: Foreclosure.com, RealtyTrac, Default Research, and ForclosureS.com. However, one of the drawbacks to a listing service is the cost. Also, be aware that some services have more recent information than others.Another method would be to look into the classified ads section of major Newspapers. Their classified sections are on the web. You want to search the ads to find words such as divorce, desperate, must sell or estate sale to name just a few examples of keywords that indicate the seller is desperate. Think of some on your own and have fun with it.Another method would be to send Postcards and fliers to targeted homes. However, it is highly advisable that you find someone who can do...more
Why do traders always talk about support and resistance levels? What do they mean and how can traders use these levels to better understand where the market is heading next?Understanding support and resistance levels can greatly assist both traders...more
Value investing is all about picking up bargains on the sharemarket.If you're an investor, with the market at such low levels, now is the time to look at adding to your longer term portfolio.If you're a short term trader, the underpriced stocks can...more
How do you turn $30,000 into a million dollars? The secret is time and the power of compounding. Here I'll run through this powerful concept which has helped Warren Buffett become one of the richest people in the world.Buffet has long been one of my...more
What is a bear market?Generally a bear market is one where the market has decreased by more than 20%.In Australian the last high point in the market was reached on 1 November 2007 and since then it's dropped 36%. So the Australian market has been in...more
If you are looking for a steady income stream from your investments then shares can be an attractive proposition. Not only do shares provide a return in the form of capital gains or losses but most shares also pay a dividend.Traditionally, high...more
Day trading involves buying and selling shares on the same day. It is extremely difficult to do but if successful, the rewards can be substantial. The flipside is that it is also extremely risky which means that you could see your capital wiped out...more