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Category Archives: Finance

Selecting a Financial Planner

To ensure your financial planner is well-qualified in personal finances and impartial in his advice, consider the following five things:

1. Planning Credentials: Having a highly-regarded credential in financial planning, such as Certified Financial Planner (CFP) or Personal Financial Specialist (PFS), confirms that the professional you intend to work with has acquired the education and experience necessary to serve as a financial planner. CFP and PFS credentials are awarded to only those individuals who have met the certification requirements of education and experience in planning for personal finances. In addition, they have to pass the certification examinations and agree adhere to the practice standards and continuing education requirements.

2. Subject Matter Expertise: Financial planners are planning professionals, not necessarily subject matter experts. For example, a financial planner will be skilled in tax analysis and planning,but unlike a Certified Public Account (CPA) or an IRS Enrolled Agent (EA) he might not necessarily be a subject matter expert when it comes to tax rules Similarly,a he could be skilled in chalking out an investment plan, but unlike a Chartered Financial Analyst (CFA) he may not be an authority in the subject of investments. Work with a financial planner who is also a subject matter expert in those areas of personal finance that are important in achieving your financial goals.

3. Client Specialization: Not all financial planners serve all types of clients. Most specialize in serving only certain types of clients with specific profiles. For example, a personal planner may build his expertise and customize his services to serve only those individuals and families who are in certain professions, or a particular stage of life with specific financial goals and net worth. Ask whether the planner specializes in serving only certain types of clients with specific profiles to determine whether he is the right fit for your situation and financial goals.

4. Fee structure: The fee structure largely determines whose interests he serves best – his client’s or his own. A Fee-Only professional charges only fees for their advice whereas a Fee-Based professional not only charges fees but also earns commissions, referral fees and other financial incentives on the products and solutions they recommend for you. Consequently, the advice from a fee-only one is more likely to be unbiased and in your best interests than the advice from a fee-based financial planner. Work with a professional whose fee structure is conflict-free and aligned to benefit you.

5. Availability: He or she should be regularly available, attentive, and accessible to you. Ask the planner how many clients he currently serves and the maximum number of clients he is planning to serve in the future regularly. This clients-to-planner ratio is one of the key factors in assessing your planner’s availability to you in the future. Also, ask which planning activities are typically performed by the planner and which ones are delegated to a para planner or other junior staff members. Lastly, make sure the planner is easily accessible via phone and email during normal business hours.

Command to Be Debt-Free

The first commandment on Botting’s list says, “Thou shalt not shop without a list,” and the second is like unto it: “Thou shalt not shop without a limit.” Both of these commandments are a call to get organized in order to be in control of your spending. As you apply the process, you have to be careful of the people with whom you go shopping, because in his eighth commandment, Botting cautions, “Thou shalt avoid other spendthrifts.” Obviously, it’s important to shun the company of people who are born to shop if you are going to debt-free.

The commandments so far may seem like tongue-in-cheek advice, but careful examination reveals that there is a serious underside to them. As I looked them over, Commandment Number 10 held the most appeal for me. It simply says, “Thou shalt back away.” The instruction is succinct, but needs some explanation. This is the strategy, according to Botting. After selecting your items, just before you reach the checkout counter with your shopping basket, stop and ask yourself, Do I really need all these items? “If you can put some of them back, you will have given yourself a financial discount,” Botting says. Here is an appealing financial tool that anyone can use.

The advice proved so motivational that the next time I went shopping, I decided to practice what had been preached to me in this tenth commandment. At a store nationally known for its name-brand bargains, I picked out three smart-looking outfits, even though I had gone in to buy only one to take as a gift for my mother, whom I was going to visit. I toyed with the three dresses, two of which were meant for me. I studied their color, style and price. I hung them up against the rack and backed off to examine them some more. All three looked desirable, but I asked myself the requisite question: Do I really need the extra two? Of course, the answer was No. I obeyed Commandment Number 10 and backed away. I selected one for my mother, replaced the other two on the rack, and with the joy of an overcomer, marched to the counter and swiped my debit card. I had given myself two-thirds off. It was that easy.

Keeping this commandment could prove a boon to your financial freedom. You may have heard it said that it’s impossible to go into a supermarket for one item and come out with just the one thing you went in to buy, but applying the commandment to “back away” can make a difference. It’s not too late even if you are at the checkout counter. Leave the unnecessary items, pay for the one thing that you came for, and claim your financial discount.

Information of Bitcoin and Goldcoin

The general idea is that Bitcoins are ‘mined’… interesting term here… by solving an increasingly difficult mathematical formula -more difficult as more Bitcoins are ‘mined’ into existence; again interesting- on a computer. Once created, the new Bitcoin is put into an electronic ‘wallet’. It is then possible to trade real goods or Fiat currency for Bitcoins… and vice versa. Furthermore, as there is no central issuer of Bitcoins, it is all highly distributed, thus resistant to being ‘managed’ by authority.

Naturally proponents of Bitcoin, those who benefit from the growth of Bitcoin, insist rather loudly that ‘for sure, Bitcoin is money’… and not only that, but ‘it is the best money ever, the money of the future’, etc… Well, the proponents of Fiat shout just as loudly that paper currency is money… and we all know that Fiat paper is not money by any means, as it lacks the most important attributes of real money. The question then is does Bitcoin even qualify as money… never mind it being the money of the future, or the best money ever.

To find out, let’s look at the attributes that define money, and see if Bitcoin qualifies. The three essential attributes of money are;

1) money is a stable store of value; the most essential attribute, as without stability of value the function of numeraire, or unit of measure of value, fails.

2) money is the numeraire, the unit of account.

3) money is a medium of exchange… but other things can also fulfill this function ie direct barter, the ‘netting out’ of goods exchanged. Also ‘trade goods’ (chits) that hold value temporarily; and finally exchange of mutual credit; ie netting out the value of promises fulfilled by exchanging bills or IOU’s.

Compared to Fiat, Bitcoin does not do too badly as a medium of exchange. Fiat is only accepted in the geographic domain of its issuer. Dollars are no good in Europe etc. Bitcoin is accepted internationally. On the other hand, very few retailers currently accept payment in Bitcoin. Unless the acceptance grows geometrically, Fiat wins… although at the cost of exchange between countries.

The first condition is a lot tougher; money must be a stable store of value… now Bitcoins have gone from a ‘value’ of $3.00 to around $1,000, in just a few years. This is about as far from being a ‘stable store of value’; as you can get! Indeed, such gains are a perfect example of a speculative boom… like Dutch tulip bulbs, or junior mining companies, or Nortel stocks.

Of course, Fiat fails here as well; for example, the US Dollar, the ‘main’ Fiat, has lost over 95% of its value in a few decades… neither fiat nor Bitcoin qualify in the most important measure of money; the capacity to store value and preserve value through time. Real money, that is Gold, has shown the ability to hold value not just for centuries, but for eons. Neither Fiat nor Bitcoin has this crucial capacity… both fail as money.

Finally, we come to the second attribute; that of being the numeraire. Now this is really interesting, and we can see why both Bitcoin and Fiat fail as money, by looking closely at the question of the ‘numeraire’. Numeraire refers to the use of money to not only store value, but to in a sense measure, or compare value. In Austrian economics, it is considered impossible to actually measure value; after all, value resides only in human consciousness… and how can anything in consciousness actually be measured? Nevertheless, through the principle of Mengerian market action, that is interaction between bid and offer, market prices can be established… if only momentarily… and this market price is expressed in terms of the numeraire, the most marketable good, that is money.

So how do we establish the value of Fiat… ? Through the concept of ‘purchasing power’… that is, the value of Fiat is determined by what it can be traded for… a so called ‘basket of goods’. But his clearly implies that Fiat has no value of its own, rather value flows from the value of the goods and services it may be traded for. Causality flows from the goods ‘bought’ to the Fiat number. After all, what difference is there between a one Dollar bill and a hundred Dollar bill, except the number printed on it… and the purchasing power of the number?

Gold, on the other hand, is not measured by what it trades for; rather, uniquely, it is measured by another physical standard; by its weight, or mass. A gram of Gold is a gram of gold, and an ounce of Gold is an ounce of Gold… no matter what number is engraved on its surface, ‘face value’ or otherwise. Causality is the opposite to that of Fiat; Gold is measured by weight, an intrinsic quality… not by purchasing power. Now, have you any idea of the value of an ounce of Dollars? No such thing. Fiat is only ‘measured’ by an ephemeral quantity… the number printed on it, the ‘face value’.

Bitcoin is farther away from being the numeraire; not only is it simply a number, much as Fiat… but its value is measured in Fiat! Even if Bitcoin becomes internationally accepted as a medium of exchange, and even if it manages to replace the Dollar as the accepted ‘numeraire’, it can never have an intrinsic measure like Gold has. Gold is unique in being measured by a true, unchanging physical quantity. Gold is unique in storing value for thousands of years. Nothing else in reach of humanity has this unique combination of qualities.

In conclusion, while Bitcoin has some advantages over Fiat, namely anonymity and decentralization, it fails in its claim to being money. Its advantages are also questionable; the intent is to limit the ‘mining’ of Bitcoins to 26,000,000 units; that is, the ‘mining’ algorithm gets harder and harder to solve, then impossible after the 26 million Bitcoins are mined. Unfortunately, this announcement could very well be the death knell of Bitcoin; already, some central banks have announced that Bitcoins may become a ‘reservable’ currency.

Wow, sounds like a major step for Bitcoin, does it not? After all, the ‘big banks’ seem to be accepting the true value of the Bitcoin, no? What this actually means is banks recognize that they could trade Fiat for Bitcoins… and to actually buy up the 26 million Bitcoins planned would cost a meagre 26 Billion Fiat Dollars. Twenty six billion Dollars is not even small change to the Fiat printers; it is about a week’s worth of printing by the US Fed alone. And, once the Bitcoins bought up and locked up in the Fed’s ‘wallet’… what useful purpose could they serve?

There would be no Bitcoins left in circulation; a perfect corner. If there are no Bitcoins in circulation, how on Earth could they be used as a medium of exchange? And, what could the issuers of Bitcoin possibly do to defend against such a fate? Change the algorithm and increase the 26 million to… 52 million? To 104 million? Join the Fiat printing parade? But then, by the quantity theory of money, Bitcoin would start to lose value, just as Fiat supposedly loses value through ‘over-printing’…

We come to the key issue; why search for a ‘new money’ when we already have the very best money, Gold? Fear of Gold confiscation? Lack of anonymity from an intrusive government? Brutal taxation? Fiat money legal tender laws? All of the above. The answer is not in a new form of money, but in a new social structure, one without Fiat, without Government spying, without drones and swat teams… without IRS, border guards, TSA thugs… on and on. A world of liberty not tyranny. Once this is accomplished, Gold will resume its ancient and vital role as honest money… and not a moment before.

Money Pollutes

There seems to be no way of stopping this invasion and governments are misled by their claims of jobs and other things that don’t always eventuate. The ones making the money are the owners of the businesses that are doing the polluting and they have little care for the environment, or so it seems.

This is not a problem for Australia alone as the same is happening world-wide and people are voicing their objections by turning away from major political parties. While voters have woken up to the big-polluters who care more about the money they make rather than the health of the planet politics is facing major challenges.

My perspective on this problem comes from memory of my reincarnation and my suspicion that everyone is back, which accounts for the huge population growth of recent times. It is also apparent that the earth can’t survive the impact of the pollution much longer, so we are in the last days. If this is the case, then there is ample proof that money is used by God to bring it about.

It is the hunger for money that drives the World Order and that puts wealth creation ahead of common sense and survival. So what are those who pollute the environment thinking? We can’t eat coal and we can’t breathe the gasses and everything else is in decline.

Dogecoin

For you to use Dogecoins you need to have a digital wallet. This is an address that you use to receive the coins. When you have a new wallet, the dogecoin network generates a private key that is given to you.

The network also generates a public key that you use when exchanging the coins with other users.

The private key is kept as a big secret and the owner is the only person who knows it. The reason why it’s kept as a secret is because anyone who knows it can claim complete ownership of the funds associated with it.

Due to the importance of the key, it’s vital that you guard it as much as you can. This is because if you reveal it to other people it can easily result to loss of your money.

This is a place where all the transactions that you engage in are maintained. Many experts equate the block chain to a logbook. Since the block chain records every transaction that you engage in, it’s updated every time that you complete a transaction.

To eliminate errors in the records, all the transactions are first verified before they are written permanently. For example, if you send money to a friend, the transaction is first added to the most current “block” after which it undergoes verification for authenticity.

Once the verification is complete it’s written permanently. The verification process is done by “miners”.

There are a number of ways you can acquire the coins. Some of the ways include: mining, faucets, tips, and changing of other forms of currency to dogecoins. The most common method of acquiring the coins is mining. Here you only need to have a computer and software that allows you to mine the coins.

ATMS Go Green

Paperless Billing

Most ATM s have the paperless billing feature that not only help to cut paper cost but also ensure user convenience. E-receipts received on the mobile phone or e-mail are easy to maintain than the small paper bills that are often misplaced. These small e-messages are effective marketing tools that help create brand loyalty and are profitable methods of promoting ATM services.

Electronic Deposits

The practice of filling deposit slips and paper submission is fading away. ATM s designed with latest technology have auto-deposit features useful for paperless deposits. This automated system has popularized the ATM’s drive-through process that takes only few seconds to deposit money and has considerably reduced the need to visit the bank.

Equipment Recycling

Using recycled ATM equipment is cost-effective with no compromise on the output. ATM equipment manufacturers help to maximize the usage of the recycled parts under the advance exchange policy. Merchants can send the failing parts to the ATM companies who either repair it or give partial credit for the irreparable equipment.

Pick Right Financial Advisors

That depends on what you want the financial advisers to do. Do you want help with estate planning, or is it your child’s college fund? What about advice on which stocks to pick or how to withdrawal cash from retirement funds without draining your account? Determining where to start depends on your desired outcome, and the good news is financial advisers come with many specialties.

Once you decide what you need, ask people that you trust for referrals. Seek out someone you don’t mind divulging personal financial information to.

Next, find out what your potential advisor did before becoming an advisor. Was he/she a math expert who majored in statistics at college? Do they have an advanced degree in accounting or business? The answer to these types of questions can tell you a lot about the Ivory Tower experience someone may have, and whether it’s relevant enough for your trust. You want someone with good character, much like you would in choosing a good doctor or lawyer.

How Do Financial Advisers Charge?

Many people are intimidated by costs but have no idea what they are. This is normal, and there are many ways in which an advisor might charge you.

Charging you a commission on products (or stocks) bought and sold is the most typical form of remuneration. Some, however, might charge a flat fee or yearly retainer, or a combination thereof. The best advice: do some comparison-shopping just as you would for a vehicle or any other significant purchase.

State Registered Advisors Must Be Licensed

Those who give advice on how someone should invest their money should be registered with the state in which they practice. For instance, in Washington State, all financial advisors must register with the Washington State Department of Financial Institutions in order to practice. Check with your state to see what the requirements are, and be sure to check for prerequisites pertaining to admission, such as testing and education.

You can also check the state records for complaints: legal judgments, bankruptcies, criminal charges, and government orders. All of this information is kept on file by the state and are available to the public.

Make Sure Have Good Credit Standing

First, you need to know your capacity to pay. If you are about to borrow money, it is important that you will be able to cover what you will borrow. Therefore, having a source of income is essential when you apply for credit. It can start with using credit cards straight from your college days. For sure, such a tool can help you pay your tuition or cover expenses for schooling. When you have a good credit from college, you can proceed with higher loan amounts in the future. This is also the stepping stone in building quality credit. The records that you have in the past will influence your score in the future. Therefore, you need to take care of your credit early on.

Second, you should be able to clear your loans and balances at the right time. Using a credit card is a good example for this practice. You can see that there is a specific date and amount that you have to pay. After you have paid for such an amount, you will have a better credit score. But take note that there should be consistency when it comes to doing this. The calculated balances that you have in the credit card will have an effect to your credit score. So take time to include your payments to the card in your monthly budget. The less credit charges you incur the more score you will accumulate in the long run.

One more thing to do is to keep monitoring your account. You should have consolidation when it comes to loans and debts. Only this way you could have a better credit score from full payments. If you are considering getting a higher loan, you will see that the bank can give you flexible terms. This may happen only if you have good credit score. Of course, there are other factors too like your history of payments and your accounts with other banks. These banks can coordinate with each other in order to identify those who have good credit standing. Therefore, the thing that you have done from one bank may spread to another. If you want a more comfortable life, then you should always aim for a high credit score.

Stop Bad Financial Habits

The Situation: A lot of people, including you, don’t fully understand how important it is to save cash with regard to their future. Figure out how to save first then spend, not the other way around. While this is superior to no savings in any way, it is definitely not the correct way to build an excellent savings plan.

Steps To Managing Your Individual Finances Well.

Listed here are some important tips that you can consider if you wish to reduce costs for the future. These techniques have helped a lot of people be successful at taking better proper care of their finances.

Put 20% Of The Earnings Into Savings

In case you are to be successful in the foreseeable future, carry out the opposite of just what the average person does. As opposed to saving whatever remains, save first and spend afterward. Even if you are expecting a reduced check than normal, be sure to save 20% out from each and every single check that you receive. Make sure to deposit this money once you receive money. You will have learned a vital lesson, and saving the amount of money than enables you to work your way down taking good care of everything, bills first.

Saving money assists you to create a healthy financial habit that will help you to budget your money efficiently for the rest of your way of life. You could possibly feel much less stressed about finances when you know that you have an urgent situation fund available.

Don’t Complicate Matters

It is obvious the iPhone 7 is great. Your buddies and colleagues have purchased it,but the iPhone 6 plus is one that you simply bought a few time ago. While many of these new gadgets are fun and exciting to have, you undoubtedly don’t need a new phone unless your old phone is dying. You must never buy it unless you really want an iPhone 7.

Can that new phone do something that your particular old model can’t do? It is essential to sometimes treat yourself with luxuries, just make sure this really is something great rather than some of those undesirable habits one does repeatedly. Additional money is the best money to pay, not the 20% you will be saving.

Cash Over Credit

Maybe you are from the opinion the charge cards in your wallet should be used, not hidden away. Often we start off with good intentions buying only small things likely to pay them off at the conclusion of every month. $50 here or $25 there can’t hurt, and you can always pay it off following the month. That brand of thinking gets people in trouble quickly, plus they rack up a pile of debt.

Financial Mad Max

There are a number of areas to cover when prepping, and they include the obvious ones like keeping yourself in the best physical shape possible, building a stock of food and water to last at least a month or two, and accumulating items to barter in the event of hyperinflation kicking in or when the networks crash with ATMs unable to dispense any more paper money. Here we look at the need to prep for the monetary mayhem that is already underway. Has everybody already forgotten about the 12-day shutdown of Cypriot banks in March 2013? That when they reopened a 300 euros limit was imposed as a maximum that can be withdrawn? What about the subsequent 40 – 70 percent haircut given to any deposit above 100,000 euros? If you think this can only happen to somebody else you’d better think again – hard. Cyprus style bail-ins are becoming the preferred way to stave off banking failures in future as private property rights become a thing of the past.

It is therefore only prudent to prepare ourselves in this area before a Mad Max world descends on us in full force. Hopefully it doesn’t ever come to that, but if it does, at least in this one area we have prepped to the max and we have a cache of real money to use and barter with ease. If Mad Max doesn’t grace us with his presence – fantastic, and the gold we have saved can become a valuable heirloom for the next generation and our loved ones. But at the present trajectory, history suggests it is a matter of when rather than if before the social fabric is torn asunder due to financial meltdowns. The song of angry men is being sung louder each day haven’t you noticed? Austerity for the masses and freebies to the rich, and a Les Miserables reprise is in the cards.

So what is spendable gold? I do not wish to harp about gold being real money, because I believe by now most of us have seen enough QE to the nth-degree and the sad erosion of paper currencies for ourselves. Spendable gold has become a rising European trend in recent years, with well-known producers such as Credit Suisse, PAMP, UBS and even the Perth Mint of Australia issuing them. This is gold in small sizes such as 1-gram, 2.5-grams and 5-grams. The small sizes make the bars affordable to most people who are seeking shelter from the monetary storm, while also making the gold easier to spend as well. Just imagine trying to buy a few loaves of bread with an ounce of gold (which at the time of this writing is US$1,230/oz.) and you get the picture. Sure, they might be happy to throw in a pound of salami free of charge but good luck asking for the change. These won’t be normal times after all, and it would hardly be a surprise if people acted less than civil.

I for one hope the market rigging will continue, and they can kick that darn can down the road indefinitely. Manipulation is better than Mad Max any day in my book, and the longer the farce lasts means the more time I have to prepare. However, Germany’s top financial regulator BAFIN has just spoken out against the manipulation of precious metals and currencies in the market, calling it a bigger scandal than the rigging of LIBOR. Hence, we can see the knowledge of gold manipulation has moved from the realm of conspiracy theories into the mainstream. The writing on the wall speaks volumes. Dr. Paul Craig Roberts, a former Assistant Secretary to the Treasury during the Reagan years made a telling comment on the subject: “We conclude that ability to manipulate the gold price is disappearing as physical gold moves from New York and London to Asia, leaving the West with paper claims to gold that greatly exceed the available supply.”