In about a month's time from now students will be heading to college for the Fall Semester. One thing which will be uppermost in most of their minds is how they are going to pay for college. The vast majority of them will be taking some kind of loan or other. The most important thing is to avoid piling up debt. This can well turn out to be a major burden when you graduate and cause constant stress of falling behind on your payments and building up a bad credit record.
Nowadays student loans are a big and hugely profitable business, what with interest rates climbing all the time. The recent loan scandals have exposed the dirt in the system, that is the advice you get from various counselors may not be the best deal for you. But what is one supposed to do in such a situation.
Experts advise that first of all exhaust your sources of federal funding, whether it be a Perkins, Stafford or a PLUS loan because it caps your interest payments. There are other federal loans as well.
It is possible that this may not take care of your entire needs and you may fall short and may have to find other sources of funding as well. While doing so it pays to have a good hard look at the discounts offered, penalties charged for delayed payments and processing fees charged because in many instances these charges may make a sizable difference to the total cost of the loan including the interest component.
Often students end up taking more than one loan. This can be very burdensome. Consolidating your loan helps not only reduce interest cost but also reduces monthly payments. You also deal with only one lender. At times refinancing your loan may help by increasing the repayment period, but this usually implies a higher rate of interest.
Finally remember to keep your grades up. This improves your chances of scholarship. Also participate in college and community activities. Take advantage of work-study programs. An on-campus job in your field of study is a big bonus.
Have a great time in college!
Are Your Assets Really Diversified?
In conjunction with Sagemark Consulting, a division of Lincoln Financial Advisors, a registered investment advisor. Mr. Chazin is a regular contributor to PlannerConnect
You've heard the old investment adage, “Don't put all your eggs in one basket.” It's good advice. A diversified portfolio should be at the core of any well-planned investment strategy. While a worthy goal at any age, it's especially desirable as your net worth grows over the years.
The basic purpose of diversification is to reduce your risk of loss. It's primarily a defensive type of investment policy. Depending on your investment goals and tolerance for risk, your strategy may emphasize one type of investment over another. But overall, your plan should be diversified. That's because no single type of investment performs best under all economic conditions. A diversified program is capable of weathering varying economic cycles and improving the trade-off between risk of loss and expected return. Of course, diversification cannot entirely eliminate the risk of investment losses.
Forms of Diversification
An investment portfolio consisting of twenty different construction industry stocks is not diversified. Diversification means dividing your funds among different classes of assets, such as stocks, bonds, real estate, savings accounts and tangible assets. For instance, suppose your portfolio consisted entirely of bonds. Your money would be at significant risk if interest rates rose since bond prices generally fall when rates go up.
It's also important to diversify by owning several stocks in different industries. Suppose you held just 1,000 shares of a major company’s stock from December 31, 1999 through December 30, 2003, and you suffered a loss of $40 per share when the stock fell from 100 to 60. A diversified portfolio consisting of many different stocks in various sectors may have cushioned the blow of the loss. A prudent investor managing his own portfolio might diversify his holdings by selecting some stocks for their rising earnings or accelerating “growth” potential while buying other stocks because they offer “value” by temporarily being out of favor. In addition, an investor may buy individual securities for other reasons, such as income or tax advantages.
An alternative to selecting and managing individual stocks and bonds is to invest in mutual funds. Some mutual funds offer diversification by holding many securities within the portfolio. However, some other funds may not be diversified across industries or asset classes and may focus on a single sector. Mutual funds offer several other features, including:
-Funds have clearly defined objectives and strategies, which are detailed in the fund’s prospectus. A prospectus contains more complete information on the style of investment objectives you should expect in addition to the charges, expenses and risks the fund may incur. Read the prospectus carefully before investing. The investment return and principal value of an investment will fluctuate with changes in market conditions so that an investor’s shares when redeemed may be worth more or less than the original amount invested.
-Shareholders receive periodic reports reviewing the fund’s results and performance.
-Funds are managed by full-time professionals.
-Fund families allow investors to allocate investment dollars among a combination of funds with varying objectives.
Diversification also means not tying up all your funds in long-term investments. You'll need to keep a certain amount easily accessible – that is, in money-market accounts, savings accounts or short-term certificates of deposit (CDs) – for ongoing expenses, emergency needs, and short-term goals such as saving to buy a car or pay taxes. And through dollar-cost averaging, a process of buying stocks and bonds from time to time instead of all at once, you can spread the risk over both good and bad markets. Using this investment method involves continuous investment in securities regardless of fluctuating price levels of securities. Therefore, investors should consider their financial ability to continue purchasing through periods of fluctuating price levels. Dollar-cost averaging does not ensure a profit and does not protect against a loss in declining markets. Diversification is also important because CDs are FDIC-insured and typically offer a fixed rate of return while investments such as stocks and bonds are not FDIC-insured and their value will fluctuate with current market conditions.
Sample Portfolio
Your specific investment decisions will depend on several factors: your age, tax bracket, risk tolerance, liquidity needs, investment time horizon and investment goals. In general, however, a well-diversified portfolio might include:
-Cash Reserves for short-term needs -- checking accounts, money-market accounts, savings accounts and shorter-term CDs.
-Longer-term, taxable investments that are relatively liquid, such as: Stocks -- common or preferred, Bonds -- U.S. Government, corporate, Mutual funds -- bond funds, growth funds, balanced funds, international funds
-Tax-advantaged investments, such as: Annuities -- fixed and variable, Qualified plans -- 401(k), 403(b), IRAs, SEPs, SARSEPs, Municipal bond funds
-Real estate -- commercial, residential
-Tangible asset exposure through mutual funds -- precious metals funds, natural resources funds You may want to consult an advisor regarding designing a portfolio that is right for you and your risk tolerance.
Diversify Beyond Investments
Diversification alone may not be sufficient to protect your investments. By taking a broader view, a financial planning strategy can put safeguards in place to help protect yourself and your family. For instance, purchasing disability income insurance provides protection for your ability to earn a living. Life insurance is another form of protection. It can help preserve your estate assets and reduce the risk that a disaster could wipe out your family's standard of living. Life insurance can also provide the necessary cash for your survivors to pay estate taxes and other expenses, or to carry on a family-owned business.
A properly planned estate can also be a part of your overall strategy. Simply having a will may not be enough. You may need to coordinate your will with trusts for your children, life insurance and tax planning. Estate planning can help preserve and direct the distribution of your assets after your death.
A diversified financial planning strategy will not eliminate risk or guarantee success. But it does offer a sound approach to help protect your assets, reduce risk and potentially grow assets over time. Talk with a qualified professional about how to put an effective financial planning strategy in place.
Rebuilding Credit After bankruptcy
If your past history of credit has been flawed by a bankruptcy, the most important thing for rebuilding credit after a bankruptcy is to add positive information into your credit report. The key to re establishing your long term credit credit is to show creditors that you are now financially responsible after the bankruptcy.
If you have bad credit history because of a bankruptcy there are fast simple ways to rebuild your credit after bankruptcy. One of the easiest ways is to apply for a secured credit card. A secured credit card is backed by money that you deposit into an account. If you fail to make your payments the creditor takes the money out of the account to cover the amount owed. Because of the secured funds these types of cards are very easy to get and almost all of them report to the credit beraus. Normally after 6-12 months of on time payments you may be able to qualify for a unsecured credit card, however credit beraus do not know if a credit card is secured or unsecured so a secured credit card is not a necessity in the first 12 months of credit rebuilding.
Rent to Own centers are another great place to rebuild credit after bankruptcy. Many of these rent to own centers will approve an account for a person with bad credit as long as they have the income to pay the loan back and sufficient on the job time. The drawback to opening one of these accounts is that you will pay a much higher price for an item then if you just went out and bought it. However the overall boost to your credit score and profile more then make up for the extra cost of the item. After 6-12 months of timely payments on your secured credit card and rent to own account you can begin to apply for other credit. However only open 1 new account every 6 months and keep the credit inquiries to a bare minimum. Your end goal is to have 2 open credit cards with credit limits over $2500 and one or two additional accounts such as a gas card or department store card.
In addition to these tips you should also review your credit report and make sure all accounts that were included in the bankruptcy are listed on the credit report as "Included in Bankruptcy". In many cases credit accounts that were involved in the bankruptcy will still report as a delinquent account on a credit report. This will have a negative affect on your credit rebuilding efforts. These accounts can be easily disputed online or through a credit repair company.
Massive US farm bill faces Bush veto, may impact WTO talks
A massive US farm bill packed with consequences for global trade is moving through the Democratic-controlled Congress in the face of a veto threat by President George W. Bush .
The House of Representatives is poised to vote on the multibillion-dollar five-year plan that provides the safety net for farmers and ranchers, governing the amount of subsidies and aid available and a raft of other provisions, such as nutrition and conservation programs.
Bush's Republican administration has been threatening to veto the legislation, partly over what it says are high subsidies, a major stumbling block in the Doha Round of global trade negotiations.
Some observers suggest the threat may be difficult to deliver on, considering the already heated political maneuvering for the 2008 presidential race.
Still, the veto threat was renewed Wednesday after a House panel signaled it wanted to raise taxes on some foreign-owned companies with US subsidiaries in order to partly fund government nutrition programs.
The proposed tax hikes, anathema to Republicans, drew blistering fire.
"I find it unacceptable to raise taxes to pay for a farm bill that contains virtually no reform," Agriculture Secretary Mike Johanns said.
"Myself and the president's entire team of senior advisers will recommend that he veto this bill if it is adopted in its current form. We are unanimous on this point."
The estimated 286-billion-dollar measure was approved last week by the House Agriculture Committee after wrangling to get bipartisan support.
Agriculture Committee chairman Collin Peterson said the bill delivers "significant reform" and strikes "the balance necessary" to ensure that farmers' "safety net is still strong and secure."
The pressure is on to approve the 2007-2012 measure as the current bill expires on September 30, the end of the government's fiscal year.
The bill was taken up by the House late Thursday, but it was not clear when it would come to a vote. Congress adjourns on August 3 for its summer recess and reconvenes in September.
If approved by the House, the legislation must be reconciled with a Senate counterpart before the measure is presented to the president for signing.
Among the most difficult issues to resolve is farm subsidies, which prompted a revolt among 22 developing countries, stalling the Doha Round of World Trade Organization negotiations.
Under the current farm bill, government subsidies are paid to farmers with incomes of up to 2.5 million dollars per year.
The House bill would cut that cap to one million dollars annually and eliminate limits on some loans.
The Bush administration says the subsidy reduction falls far short. It had sought an income cap of 200,000 dollars, averaged over three years. Republicans argue that the House bill would deprive about 7,000 farmers of subsidies, compared with the 38,000 that would be affected by their proposal.
"The House bill actually takes a step backward, creating farm policy that is less responsive to the free market, and it paints an even larger bull's eye on the backs of American farmers when it comes to international trade," said Johanns.
The Bush administration is under fierce pressure to help unblock the WTO Doha Round, launched in the Qatari capital nearly six years ago and aimed at lowering trade barriers and encouraging development.
Developing nation critics of farm subsidies say they allow developed countries to dump excess production on world markets at an unfairly low cost, depriving many developing and poor countries of strengthening their own farm-sector exports.
The United States and the European Union , also known for lavish farm subsidies, have given a lukewarm response to the latest WTO proposals to cut farm subsidies.
"We would underscore that, while we have indicated that we are prepared to offer more on OTDS (Overall Trade Distorting Support), our ability to make further cuts depends upon securing significant real increases in market access," the US ambassador to the WTO, Peter Allgeier, said Thursday.
The House of Representatives is poised to vote on the multibillion-dollar five-year plan that provides the safety net for farmers and ranchers, governing the amount of subsidies and aid available and a raft of other provisions, such as nutrition and conservation programs.
Bush's Republican administration has been threatening to veto the legislation, partly over what it says are high subsidies, a major stumbling block in the Doha Round of global trade negotiations.
Some observers suggest the threat may be difficult to deliver on, considering the already heated political maneuvering for the 2008 presidential race.
Still, the veto threat was renewed Wednesday after a House panel signaled it wanted to raise taxes on some foreign-owned companies with US subsidiaries in order to partly fund government nutrition programs.
The proposed tax hikes, anathema to Republicans, drew blistering fire.
"I find it unacceptable to raise taxes to pay for a farm bill that contains virtually no reform," Agriculture Secretary Mike Johanns said.
"Myself and the president's entire team of senior advisers will recommend that he veto this bill if it is adopted in its current form. We are unanimous on this point."
The estimated 286-billion-dollar measure was approved last week by the House Agriculture Committee after wrangling to get bipartisan support.
Agriculture Committee chairman Collin Peterson said the bill delivers "significant reform" and strikes "the balance necessary" to ensure that farmers' "safety net is still strong and secure."
The pressure is on to approve the 2007-2012 measure as the current bill expires on September 30, the end of the government's fiscal year.
The bill was taken up by the House late Thursday, but it was not clear when it would come to a vote. Congress adjourns on August 3 for its summer recess and reconvenes in September.
If approved by the House, the legislation must be reconciled with a Senate counterpart before the measure is presented to the president for signing.
Among the most difficult issues to resolve is farm subsidies, which prompted a revolt among 22 developing countries, stalling the Doha Round of World Trade Organization negotiations.
Under the current farm bill, government subsidies are paid to farmers with incomes of up to 2.5 million dollars per year.
The House bill would cut that cap to one million dollars annually and eliminate limits on some loans.
The Bush administration says the subsidy reduction falls far short. It had sought an income cap of 200,000 dollars, averaged over three years. Republicans argue that the House bill would deprive about 7,000 farmers of subsidies, compared with the 38,000 that would be affected by their proposal.
"The House bill actually takes a step backward, creating farm policy that is less responsive to the free market, and it paints an even larger bull's eye on the backs of American farmers when it comes to international trade," said Johanns.
The Bush administration is under fierce pressure to help unblock the WTO Doha Round, launched in the Qatari capital nearly six years ago and aimed at lowering trade barriers and encouraging development.
Developing nation critics of farm subsidies say they allow developed countries to dump excess production on world markets at an unfairly low cost, depriving many developing and poor countries of strengthening their own farm-sector exports.
The United States and the European Union , also known for lavish farm subsidies, have given a lukewarm response to the latest WTO proposals to cut farm subsidies.
"We would underscore that, while we have indicated that we are prepared to offer more on OTDS (Overall Trade Distorting Support), our ability to make further cuts depends upon securing significant real increases in market access," the US ambassador to the WTO, Peter Allgeier, said Thursday.
Job Interviews Made Easy
When you are hiring a new employee you naturally want the best person for the role. In a candidate poor job market you need to realize that while you are interviewing the candidate, they are also interviewing you to see if they really want to work for you. You need to be on your game - to make sure you leave candidates with a great impression of your company.
So, let's start with the basics. Interviews are not an exact science. They are not meant to be. The best you can do is to try and remove as much of the emotion of the process as possible and balance it with logic.
Interviews should be about helping candidates show their best side, it is not about tricking them, putting them under added stress and seeing how they "perform". They are not seals; they are human beings complete with human feelings. Interviews are of themselves inherently stressful - so even in the most relaxed interview you are getting a person operating under stress.
Here are some tips to help you with your job interviews
Before the interview:
1) Make time in your diary for the interview. You need to show candidates the courtesy of being fully "present" at the interview. If you need to, hire additional staff to cover for you or close the shop for an hour.
2) Make sure there will be no interruptions. If you allow yourself to be interrupted during the interview you are giving candidates the message that when they work for you they are unimportant and will always be second best. Is that the message you really want to give?
3) Work out exactly what you are looking for. Of course you have a position description for the role written. If you don't, you need to write one before the interviews so that candidates know exactly what the role will entail. Once you know precisely what they will be doing, work out what skills and experience are essential in order to be able to perform the role.
4) Work out the sort of person you need for your team. Fitting a person into a team is a real jigsaw. If you are a scattered sort of person, perhaps you need to look for someone organized to balance your gaps. It is easy to get carried away with someone who is a nice person, but if they don't have the skills or the right personality for the team then they are the wrong person for this role.
5) Make sure you are not directly or indirectly discriminating. Do you really need a "bloke" for the role if it involves heavy work? Gender is not a good predictor of strength. Some of the weediest people I have met have been blokes and the strongest people who can bench-press better than everyone in the gym are women.
6) Contact the candidates. Let them know who will be interviewing them, how long they can expect the interview to last, where to come and where they can park. By showing them courtesy as if they are your top client, you are sending a very strong message about what it will be like to work with you.
7) Somewhere to wait. Make sure there is somewhere nice to wait before the interview. Some candidates can arrive up to half an hour early, so be prepared.
8) Work out the questions you are going to ask. These questions should be directly linked back to the duties of the position. You need to ask each candidate the same basic set of questions so you can compare answers. Of course you can prompt for more information, but the basic questions should be the same. Also work out the sort of answers you would expect to see from a great candidate.
9) Check your questions actually give you the information you need. If you ask "can you use Microsoft Word" you will get a Yes/No response. If you ask "tell me how you would go about setting up a mail merge letter to my database" and you get a better idea of their skill level.
10) Consider giving candidates the core questions 15 minutes before they come in for interview. Remember you want them to be the best they can be. In most jobs people don't have to answer off the top of their heads all day every day. People have time to think. By allowing people the chance to see and think about the main questions before the interview, you allow introverted people the chance to shine. Interviews traditionally favour extroverted people, which means that you are missing out on at least half of the population.
11) Consider having more than one person in the interview. Different people see different things in candidates. It can help to balance out viewpoints.
During the interview:
1) Introduce yourself and take some time to build rapport before launching into questions.
2) Allow the candidate space to be nervous. Make sure they have a glass of water to drink to steady their nerves.
3) If conducting a phone interview, periodically make some noise when they are talking such as "aha" or "mmnn". Phone interviews can be disconcerting as often all the candidate hears is silence. Consciously fill the background and you will get a better interview.
4) Check the referees are still current (you may want to ask the candidate what they think the referees will say about them - always enlightening).
5) Remember the no interruptions rule. Once you are interviewing allow no phone calls or people barging in. If someone does barge in, apologise first to the person you are interviewing. Tell the person who barged in that you are interviewing at present and will get back to them in half an hour.
6) Ask if they have any questions for you and be prepared for any curly question about you, your company, pay and conditions, development opportunities and promotional possibilities.
After the interview:
1) Check references of all candidates you are seriously considering.
2) Personally ring every candidate you interviewed to tell them they have been successful or unsuccessful. Give some basic feedback on how great they were at interview but the field was very competitive.
3) Follow it up with a short note thanking them for their time and interest in your company and wishing them well for future roles. It costs nothing for courtesy but builds a great image of you and your company.
When all is said and done, you need to balance logic with gut feel about the candidate. If your gut says no but they are a great candidate, check it out further with more questions or reference checks. Your gut usually has picked up something that you need to know more about, so trust its wisdom and dig a bit deeper.
12 Job Interview Tips to Help You Ace Your Next Interview!
So you've written and re-written your resume and cover letter countless times...you've used every trick in the book to make your resume and cover letter stand out. You've finally sent them out to get your dream job and low and behold all that hard work has finally paid off...the phone rings and you get that call you've been waiting for...you have been asked to interview for the job of your dreams.
Congratulations...now don't mess it up!
It's important that all that hard work to get the interview doesn't go waste...the last thing you want to do is blow it on the interview.
Here are 12 job interview tips to help you get that job of your dreams...
1. Never be late for a job interview. Not only will arriving late not go over too well with your interviewer, but you should give yourself time to relax and gather your thoughts before the interview actually starts.
2. Do your research. Before the interview, try to find out as much as you can about the company. How else do you expect to answer the question, "Why do you want to work out [insert company name]?" Or, "Why do think you would be a good fit with [insert company]?" Or, a number of similar questions. If you don't know anything about the company you are not going to get hired.
3. Always carry extra copies of your resume to the interview. You never know if others will be called in to sit on the interview committee. You want to be able to give everyone on the committee his or her own copy of your resume.
4. Interviewers want to know that you are not just looking for "any" job, but that you are looking for the "right" job for you. Therefore, you should be prepared with a handful of questions that you would like ask of them. This will also make the interview seem more like a two-way conversation rather than a one-way interview.
5. Never pretend you know more than what you really do. Lying or misleading the interviewer will come back to haunt you.
6. Always dress properly for an interview. Your first impression could be your last one. When in doubt it is better to over dress than under dress.
7. Research the most common interview questions for the job you are seeking and practice your answers. Always try to be as specific as possible when answering questions. Use examples whenever possible.
8. Body language plays an important role in whether or not you get hired. You should greet your interviewer with a firm handshake and maintain eye contact during the interview. Watch out for any bad speaking habits you might have such too many hand gestures or biting your upper lip.
9. Show your passion for the job. Remember, passion is NOT something that can be taught...you either have it or you don't. Your employer wants to know that you have it.
10. Be attentive while the interview is going on. Listen to the question being asked. You can recollect your thoughts before answering the question and you can always ask for clarification in case you do not understand the question.
11. Answer the questions in a manner that shows that your strengths and experiences match those that are required by the job.
12. End the interview with another firm handshake and ask when you can expect to hear from them about the job.
Job interviews can be extremely stressful...especially when it is a job you really want. However, if you follow the job interview tips above you will enter your next job interview with much more confidence.
Now go out and ace your next job interview!
How To Choose The Right Forex Trading System
Forex Trading System is a complete set of rules that needs to be followed in order to reap the maximum benefits accruing from the Forex market. It helps an individual to make calculations and provide instructions on how to create his personal Forex trading portfolio. Many trading systems are available in this regard but it has been observed that approximately 95 percent of them actually do not live up to the expectations.
However it is a myth that the more complicated the trading system is, the more are the chances of striking success. In fact, it works the other way round, the less complicated the trading system is, the lesser are the chances of failing. Simple systems work better because they have fewer elements to break. These simple systems act more robustly in the brutal and ever-changing environment of real trading. So one should try to keep the system as simple as possible. The one basic thing to be kept in mind is that only those systems actually work that have been created while keeping in mind the personality of an individual. A trading strategy may work for someone but it is not necessary that it would also work for another person.
The basic education in Forex trading help one to understand how and why one's trading system works. If one is not aware of this thing then it is quite difficult for him to follow the system, and unless one effectively follows it, it is quite difficult for him to achieve trading success. The only person who can make money for an individual is he himself. One should always find out the compatibility of the system with his personality.
While looking for a Forex trading system, one should be careful about choosing one that can provide a real-time record. This shows the success rate of their system. One should talk to the vendor beforehand and give him/her time to answer his queries. Then a check needs to be made on the support and guarantee provided by the vendor. One should also take the advantage of money-back guarantee (some of the vendors do provide that, in case the trader tries it for a short-term and does not find it useful). The best way to opt for a good system is to first survey the market. Doing this can help one to find various systems at variable prices.
Forex trading system is one that has no rules and no orders. One thing that is beneficial for an individual at a given time may not be so at another point of time. Another thing that plays a vital role is that a system might have the best possible characteristic traits and the best indicators but that may prove to be of no use unless the trader applies it consistently with proper discipline and application of his specialized knowledge and expertise. So to gain profit from a Forex Trading System one needs to find a good system first and then follow it stringently for deriving optimal results.
Open the Door to Brand New Opportunities
We have all experienced the long toil to find employment. Searching endless hours through newspapers, job advertisements, job centers and writing to companies asking to keep our cv on file. We ask ourselves whether there is an easier way to find the position we are looking for, for many it can be a demoralising experience going to many interviews and experiencing many knock backs. Most of us spend our time trawling instead of finding recruitment agencies which potentially could open doors for you. I am not saying that if you sign up with a recruitment agency you are guaranteed instant success but it could possibly be a supply of new vacancies which you never knew existed. This is how it works.
Recruitment agencies are not only there for candidates (jobseekers) searching for employment they are also there to help companies and businesses find staff or advertise vacancies within there employment. These vacancies can be in any job industry, of which there are many to choose from.
Industry sectors for example may include, commercial, industrial, accounting, technical or hospitality and leisure. These industry sectors will each require several different skills, abilities and competences, therefore catering for a wide and very diverse range of people from apprentices with none or little work experience to full time positions for managerial positions with experience being essential, temporary opportunities arise to cover sick leave or extended holidays, and there are vacancies for skilled and semi-skilled tradesmen.
Enrolling with a recruitment agency can take some of the hard work out of a job searching; an initial interview with the recruitment agency in many cases will take place to further investigate the kind of work you are looking for. This not only helps you but makes it clear to the recruitment consultancy which jobs would be suitable for you and which would certainly not, for example if you are looking for a job as a cashier you are not going to find the right job in a warehouse who are requiring for forklift truck drivers. It just defines which areas are suitable and which clearly are not. Note: You may still need to provide the a current CV (Curriculum Vitae) and references from previous employers
In additional your primary interview will provide you with the opportunity to seek advice about the interview technique, simple suggestions such as arriving is vital, so if you are not sure of the location, travel arrangements and time it will take to get to the interview, it would be prudent to make a trial journey just to make sure you know where you are going and how long it will take, dress smartly for your interview, presentation and first appearances go a long way! although interview nerves may get in the way try to be confident. Keep eye contact and try to avoid nervous fidgeting, try to give constructive answers to questions asked instead of saying the first thing that comes into your head or just yes and no. Sit with a good posture and try not to slouch; all of these are just little tips which could create the right personal impression.
As I mentioned earlier many companies also use the services of recruitment consultancies to advertise positions. Many companies build a rapport with recruitment agencies knowing that they will receive the right kind of candidate because of the background work already done. Once a rapport has been established many companies will use the same agency again and again which in turn means that with more clients on a recruitment agency database the more jobs there are likely to be on offer.
Another reason to join an experienced recruitment agency is that they might make you realise new potential in other areas, perhaps you are a chef looking for a catering job, you have tried to find work in hotel kitchens and public houses but have drawn a blank, but have you tried places such as golf clubs and spas? Golf clubs usually have a club house which offers their members a top quality service, part of playing golf is enjoying the social aspect, after a round of golf there is nothing better than relaxing and discussing the day over a hearty meal and social drink. Therefore the golf course will require catering staff, its just one area which can be overlooked. The golf industry actually offers such a diverse range of opportunities such as reception, managerial, housekeeping, food and beverage opportunities right through to greenkeeping!
So whatever position, vacancy, job opportunity you are searching for, a visit to a reputable recruitment service might just open doors for you helping your realise your potential whilst broadening the opportunities on offer.
UK childrens' pocket money allowances rising 6 times faster than inflation
Disposable income levels are a good indicator of an area's living standards - and the spare cash that filters down to the younger generation as pocket money is a prime example. Looking at the latest UK figures, it seems times are pretty good for the average youngster. In the last 20 years, the average UK child's pocket money allowance has leapt by over 600%, rising six times faster than the rate of inflation. Technology seems to be a key driver in the increase, with many children using pocket money to pay for mobile phones and video games they didn't have access to in the past.
The 20th Anniversary Halifax Pocket Money Survey is a series of research pieces published by Halifax, examining the saving and spending habits of seven to 16 year olds. At its inception in 1987, the average UK child surveyed was getting by on £1.13 a week, while the 2007 figure is £8.01.
The 2007 figure is actually a slight drop from the peak figure of £8.37 recorded in 2005, but it still represents an increase of more than 600% in comparison to the inflation rate of 99% over the same period. The steepest period of increase was between 1998 and 2004, when it leapt 444% in four years.
The survey also breaks down pocket money rates by region - the kids of the South East are the winners here, raking in £10.43 a week, while the North East region's parents are the stingiest, only doling out £5.70. London was very close to average, with £8.16 being the average weekly allowance.
Where's it being spent? While snacks and drinks are still a popular purchase, the big spending differs greatly by gender. Girls spend most of their pocket money on clothes, and boys are putting theirs towards computer games and equipment. Both sexes spend significant amounts on mobile phone bills and going out.
Among children who save their pocket money, more than half said they weren't saving for anything in particular, compared to only 4% of respondents in 1987. Those who were saving for something in particular tended towards computer games and holidays as their savings targets.
What You Need To Win A College Grant or Scholarship
Most high school guidance offices provide support for students seeking to earn college grants and scholarship dollars. However, most high school guidance counselors are focused solely on administering the scholarship dollars they award routinely. This typically includes locally awarded scholarships and endowments that have been provided to the schools in previous years.
However, there are large amounts of grant and scholarship money which can be earned from foundations, corporations, government agencies, and private citizens from around the country and in many cases the high school guidance office will not know about these scholarships and may be unwilling to provide support for you in competing for these scholarships.
Keep in mind that completion of every scholarship application process takes time. It is not possible to compete for every scholarship available, nor would it be a good use of your time and resources. Also, you must be careful of offers that seem too good to be true as they probably are. Many scam artists will ask for money up front to provide “professional” assistance in completing scholarship applications. While there are legitimate businesses that do provide assistance in the scholarship application process, you should use these types of businesses with great caution and whenever possible only on the recommendation of individuals you trust who have received results from these companies.
If you choose to pursue scholarships on your own without the assistance of the high school guidance office, then you need to be organized with a variety of documents. These are the same documents which are required for the high school scholarship process and may be available from the high school guidance office.
These documents include:
1. high school transcripts provide the student’s grade point average and the student’s class rank
2. PSAT, SAT, and/or ACT scores.
3. Listing of awards the student has received
4. Listing of activities in which the student has participated including documentation of the number of service hours earned and the activities in which these hours were earned
5. Scholarship essays
6. Letters of reference for the student
Note that the guidance department can not create or even gather all of these items. However, they may maintain records that will support you in completing scholarship applications, whether private or high school provided.
Sources of Private Scholarships:
No single source exists to document every scholarship that is available or every organization that awards scholarship dollars. There are many organizations that you may wish to contact, or at least check their web site, to determine if they award scholarships. These include:
* The college or university the student plans to attend
* The specific school or department within the college or university the student plans to attend
* Service, civic, professional and/or community organizations with which the student, parent, or in some cases grand parent is affiliated.
* Religious organizations with which the student is affiliated.
* The student and/or parents employers
* National organizations that award scholarships
o Government agencies and departments
o Corporations and corporate foundations
o National service and civic organizations
Making Yourself an Outstanding Scholarship Candidate:
It is important to remember that the student has opportunity to demonstrate their eligibility for a scholarship in many different ways – scholarship candidates are not just based on grades. Scholarships are awarded based on a variety of different factors that include community service, involvement in student life and student activities, and volunteerism and other civic engagement. Students should document their activities throughout the high school process to make the scholarship application process easier and to ensure that nothing is missed.
It is also important that if an essay is required for the scholarship that the student spend time preparing the essay and ensuring that the essay meets all the requirements. You should also consider having a trusted friend or peer review the essay for grammar, spelling, punctuation, word choice, and flow. Finally, ensure that the essay meets requirements for length.
After scholarships are awarded:
Students who are awarded scholarships should remember that the people and organizations which award these scholarships do so because they feel that it is important to invest in the future – and in the education of those who will lead the way in the future. However, it is appropriate to thank those who provide these awards if you receive one. When applying for scholarships on your own – students should verify who to send the thank you notes to for each of the privately awarded scholarships they receive.
Student Loan Debt - How Much You Can Afford
There is no doubt that we all have our own little dreams for the future. As young students at school we will decide in what direction our future holds and start working for it with all our strength and enthusiasm. Now that we have decided what our immediate future course of action is going to be, this is the time that we have to think very seriously on the financial implications of it (both incoming and outgoing) which is going to be a crucial factor in the effective execution of our action plan and determination of where we are ultimately going to end up.
So let us plan for it now at a rather early stage and the steps enumerated below will be a guide to you as to how to set about it immediately -
Conduct a research to ascertain the cost of your education in your already chosen profession year after year until you graduate.
Do a little research and prepare a schedule of costs pertaining to the other expenses connected with your education such as tuition, books, computer, board and lodging, etc. Remember to add at least another 35% - 60% (as you think fit) to the total to offset the rapidly increasing prices of the said services and to adjust for the normal inflation over the next few years.
Add (1) and (2) to get the estimated total cost of your entire education Next step is to consider whether you can afford this massive cost.
At this stage take stock of your available financial resources, such as any grants or scholarships receivable, savings deposits, income from part time work or vocation and any income from stocks, shares and investment, plus any contribution from parents.
Deducting (3) from (5), you will now have the deficit to be financed through one or more student loans. Do a research of the leading and prominent lending institutions and agencies disabusing loans, federal as well as private.
Visit their websites and find out about entry requirements, types of loans available, current interest rates, whether fixed or variable depending on the type of loan, terms of repayment including when repayments start and any options available for deferment etc.
You may also seek advice and assistance from your school and relevant financial institutions and agencies who offer free services of professional advice and opinions on student loans with regard to the best course of action to be taken in selecting the lender and type of loan to be taken in each case.
However, you are advised to act with caution on certain advices and recommendation received, since some advising bodies themselves are in receipt of commissions / kickbacks from certain student loan lenders. From the information in (7) above we can ascertain the least costly single or a combination of loans that may be taken to adequately finance your education program year after year while minimizing costs and also to keep the monthly installment at an affordable level when payments fall due.
How do we fix our monthly payment at an affordable level? This implies that we should not only research the costs but also as to what our salary would be once we graduate. At this point we can make a fatal mistake by estimating our initial salary after graduation at a higher level than the actual - due to wishful thinking or misinterpretation of facts and figures obtained.
For example, we would have heard that a Software Engineer (which let’s say is your chosen profession) could be getting anything over $ 100,000 per year. But we would have missed the point that it was the average salary received by a Software Engineer with about 5 years experience. But in our case, as a just passed out engineer, it may be only possible to demand a salary of around $ 50,000 a year.
Due to this error, we may find that with an actual salary of around $ 4,500 a month, we are hard pressed to pay around $ 500 monthly on our educational loans since we have other monthly installments on our rented house and hire purchase installments on the Car and TV to make in addition to an array of other monthly bills for living expenses.
In (9) above we have our monthly income on first employment almost immediately after graduation and from (8) above we get the estimated monthly installment we are likely to be called upon to pay after first employment. Match these two figures to ascertain if you can afford to pay this installment comfortably and without undue strain on your other essential monthly requirements. Well if you find that you can manage to meet the monthly installments, then it is well and good. But if it seems impossible, then what can you do now?
You can try working it out on the reverse basis. That is, start with your estimated monthly income, which should be more or less a reasonably correct figure, and then work backwards.
See whether there are any corrections needed to the figures obtained under (1) and (2) in respect of your education program costs and other connected costs comprising of tuition fees, board and lodging etc. respectively. Make the necessary corrections (if any) and adjust the totals of (1) and (2) in (3) accordingly.
Presuming that there were no significant changes in your estimated monthly income as well as in the total cost of to be financed, then we are left with the inevitable presumption that our computation of estimated loans to be taken in (8) above for funding the cost of education is on the high side.
The estimated excess provision is more likely to be a result of a selection of higher interest bearing loans for financing your education program. If this is the case, you will have to go for outright grants and more low interest bearing loans and less private loans for funding your college education.
Once you have a feasible budget prepared in advance in this manner, you will find it much easier to organize your actual loans in a similar pattern or try to even improve over your budget when the time comes to take the actual loans.
It is hoped that the above 14 point guide will be of help to you to workout in advance as to what type of loans to take and when and to what amount so as to keep your financial costs and monthly installment payable as low as possible and at affordable levels.
Private Student Loans - What You Should Know About Using This Loan For College
The cost of university education continues to outpace the consumer inflation rate, putting an even greater burden upon the shoulders of financially squeezed families. With annual education costs exceeding $30,000 or more at some universities, the financial burden is particularly profound even when some sort of assistance is made available.
Government student loans have long been an important way to help students complete their education with private student loans now gaining in importance too. Let's take a look at the advantages and disadvantages of funding higher education through private student loans.
When it comes to college financing, often the sticker price is one thing, but the actual cost of education is something different. Depending on the aid offered, students can expect to receive anywhere from a full scholarship to not being offered any financial assistance. In most cases, the cost of education lies somewhere in the middle once family income, assets, and other factors have been taken into account.
The amount remaining after financial aid has been factored in is what must be paid to the school, an amount that can vary each academic year. This gap is what often prompts families to consider financing options, with government-backed student loans being one option and private student loans another one.
Private student loans have several advantages to them including:
- Quick approval process:
In as little as five business days, a loan approval can be given with the funds made available directly to the student. With government student loans, processing is completed through the college.
- More money:
Usually, you can borrow more money privately than you can receive through government sources. The loan amount is usually capped at $30,000 annually or $40,000 when education costs exceed the $30,000 limit.
- More options:
Students can use private student loans to pay for a laptop computer and other education-related expenses. A government student loan is more restrictive.
- No government involvement:
A private student loan is just that – an agreement between you and a private lender. No government paperwork is filed because the funding is strictly private.
Although a private student loan has certain inherent advantages, the following disadvantages should be considered:
- Credit check required:
Only creditworthy individuals are eligible for a private student loan. In many cases a co-borrower (usually the parents) will have to co-sign the loan.
- Higher interest rate:
Private student loans charge a higher interest rate than government student loans. Rates are also variable, which means they can change up or down each month. Government student loans are fixed rate loans.
- Multiple applications required:
A private student loan must be applied for each academic year. That is also true for government student loans.
Unlike other forms of personal borrowing, a private student loan does not have to be paid back until after graduation. Just like a government student loan, grads have a 180 day grace period before the first loan payment is due.
Students should apply for the maximum amount of government student loans available. But when government student loans do not cover the entire cost of education, private student loans are a fast and flexible way to finance the remaining cost of higher education. While a government student loan is an attractive choice for many, private student loans offer a competitive alternative worthy of further exploration.
Handling Student Loan Debt
Eliminating Student Loan Debt
Ideas to Getting Rid of Debt from Your Student Loan
College is very costly. After you graduate, the pressure to pay back your student loan can be a tremendous burden. If you are living hand-to-mouth and tired of it, here is some friendly advise that may help eliminate student loan debt completely.
Get a Student Loan Consolidation.
Many lenders are happy to loan the money you must have to pay for your college expenses. However, these loans may have a high interest rate, perhaps because of no credit history or imperfect credit when you assumed your loan. And with more than one loan, that can be a burdensome problem. Consolidating your student loans can lower your interest rate and your monthly payments. It also allows one payment instead of several.
You Can Refinance Your Loan
Consolidating can save money through lower interest charges and less per month payments, but that may not be enough to really help you out. You can consider refinancing your student loan to stretch out the length of the loan. This will spread the debt over a longer period of time and thereby lower your monthly payments by as much as half. You should be very careful about this option. You could be spending a lot more over the term of your loan.
Don’t Miss Making Your Payments
You want to pay down your debt for good and the most important step you can make is to pay on time every month. If you miss payments or are late, you will increase the loan debt and end up paying more in the long run. Be faithful in making payments and your debt will go away.
Consolidate All Your Student Loans Into One
Pay Less per Month by Consolidating Your Student Loans
A student loan can be a wonderful way to fund your college education and for some folks the only way, however, these loans must be paid back. When you are finished with school you may find repaying your loan is too much of a burden. If this is true for you, consider consolidating all your loans into one, or perhaps you would just like to save some of your hard earned cash.
What’s the Advantage of Loan Consolidation
Consolidating may bundle all your loans into a single package. You then have to deal with only one lender and one payment each month instead of one for each loan. Consolidation also allows you to get a lower interest rate and thereby save you a lot of money over the life of the loan.
What are the Costs of Consolidating Your Student Loans
Good news since you may lower your monthly payments significantly perhaps by as much as 60%. Regrettably, however, you could increase the amount of money you pay over time for the loan. Therefore before you decide to consolidate you should be very careful to look at the numbers (interest rate and loan terms). Take the time to learn about and compare the lenders you are considering.
These Federal Loans are Eligible for Loan Consolidation
Many federal loans have a low interest rates already. Even so, you may be able to get a lower payment by consolidating these loans. Federal loans that are typically eligible for consolidation follows:
* Stafford Loans
* Direct Loans
* Perkins Loans
* PLUS Loans
* Supplemental Loans for Students
* Federally Insured Student Loans
* National Direct Student Loans
* Loans for Disadvantaged Students
* Auxiliary Loan to Assist Students
* Health Education Assistance Loan
How To Save Hundreds Of Dollars On College Textbooks Using Craigslist
College textbooks are expensive! Prices have risen dramatically - up 186% from 1986 to 2006. To keep your expenses as low as possible, get textbook savvy, and shop online for significant college textbook savings.
Before you go textbook shopping, whether in the physical world or online, you need to look at the total cost of acquiring a textbook. Chasing prices can save you money, but if you drive all over town and spend many hours in the process, you may not save as much as you think. With gas at well over $3.00 per gallon in much of the country, you can quickly use $10-20 worth of gas to drive across town to buy just one book! Make sure you take that into account.
If you decide to shop online, you can find great deals, but you will have to do some research to find the best textbook bargains. One great free website that many people overlook for buying textbooks is Craigslist.org. Craigslist is a great resource to find just about anything. Craigslist is a free website - one of the last “commercial free” websites on the Internet that has intentionally chosen to stay free to users, and it does not allow commercial advertising. How refreshing! Once you have the name and publisher information of the textbooks you are looking for, simply go to Craigslist.org, and select your city or region.
Then begin your search by typing the word “textbook” into the search box. When you start searching for textbooks on the site, you will notice that most of the listings are books for sale, but sometimes people will post books that they need to buy. When it comes time for you to sell your book, look for these listings. The number of textbooks posted for sale, and buyers looking for textbooks, varies greatly, based on the time of year. Naturally, the period between the end of a college semester and the first week or two of the following semester has the most listings. Listings expire quickly, so check back every couple of days.
If you are a textbook seller on Craigslist, and you post in one of the 10 largest cities on Craigslist, your listing will expire after 1 week, so make sure that you repost your listing each week. All other listings will run for 45 days.
Craigslist’s popularity is growing quickly. If you don’t find what you are looking for, you can expand your search to other cities. If you find an out of town seller of a book you need, and they’re selling it at a great price, you can negotiate the shipping costs. If the seller is local, you can make arrangements to pick it up, or better yet, ask if the seller is willing to deliver it to you.
Many of the listings include images of the textbooks, as indicated by a “pic” or “img” after the description, so you can see the condition of them prior to buying. When it comes time to resell your books, the condition of your book will affect how much you get for it, so avoid buying a book that is falling apart. If there are no pictures, contact the seller and ask about the condition. Also remember that when it’s time for you to resell them, take a good quality picture before you post it on Craigslist!
I recommend creating an account on Craigslist, because it speeds up the process and you can repost expired listings.
There are many great resources online for finding college textbooks inexpensively, but Craigslist is unique because it is a free resource that brings buyers and sellers together, quickly and easily, without the trappings and complications of commercial websites. Bargains abound on Craigslist, and armed with these tips, you are sure to find great deals!
Tips for College Students- What Your Mother Didn't Tell You
Upon entering college I quickly realized that there were many things I needed to know that mom and dad forgot to teach me. I am certain that thousands of other college students were (and are) in that exact same predicament I was in. While I'm certainly not your mother, I trust that you will benefit greatly from what I'm about to tell you.
I cannot cover everything a student needs to know before entering college in a short article like this, but I will give an overview of a few things that I consider to be very important: money management, finding financial aid, cooking, and managing your time.
Money Management:
I only have 3 money management tips, so listen carefully:
1- Create your budget. I know it's hard at first but it'll really reduce financial tension. If you don't even know where to start, explore the internet or ask your friends or parents to help you.
2- Never spend more than you make. If you are spending more than you are earning you either need to increase your income or reduce your expenses. There are hundreds of ways to reduce your expenses, but you may need to get creative.
3- Pay your bills on time. Just do it. Don't get deeper in debt than you have to.
Obtaining Financial Aid:
Scholarships, grants and loans are you finance options. Scholarships can be found at the school you are planning to attend, on the internet, through clubs, businesses, and organizations.
The most popular way to obtain a grant is through the government. In order to do this you must fill out a Free Application for Federal Student Aid (FAFSA). Fill out this application on the internet or in your financial aid office.
You have two options for student loans: Federal and alternative student loans. The Stafford, Perkins, and Parent PLUS loans are a few examples of Federal loans. A private loan may be taken out through a financial institutions.
College Cooking:
You don't have to be a chef to be able to cook. There are plenty of simple recipes that anyone can put together. In fact, loads of recipe books have been written specifically for college students! You ought to consider acquiring one of these recipe books.
When you don't feel like getting out the recipe book all you have to do is look at the food you have, decide what items would taste good together, and toss them into a pot or frying pan. Most meals are meat based with vegetables and sometimes noodles or rice.
Time Management:
Here are my tips for managing your time:
1. Prioritize- As long as you get the really important things done, nothing else matters.
2. Schedule- Everyone needs a different kind of schedule. Try out different schedules to determine what works best for you. Without a schedule the majority of college students end up loafing, being pulled away by friends or distracted by events and consequently, getting behind in their studies.
3. Follow the Schedule- When you're in class, BE in class. Don't dose off or daydream. If the teacher is really boring, do homework for a different class. When it's time to study, study. Don't stare out the library window for 45 minutes. When it's time to relax (and you definitely need to take time to relax), relax. Do what you need to do when you need to do it.
Forex Trading - Do You Have What It Takes?
There are some facts that you simply must accept to have a fair chance to be successful at Forex trading. Let's have a look at what these facts are and if you can succeed in the worlds most exciting investment environment.
Trading markets are not scientific
The thought of approaching Forex trading by applying science is appealing. However, Scientific theories dont and never will work, because humans determine the market prices, and doing so, they dont consider scientific criteria.
Most people would prefer to be able to make money without risking anything. Many vendors try to gain from this fact, offering trading systems which are described as a possibility to trade with low risk and make a regular income. The fact you must accept is:
If the reward is big, the risk will be mirrored. Pure and simple, risk and reward walks hand in hand. If you can't accept taking risks, you should look for another small business idea.
So far it has been kind of negative, lets have a look at the bright side
To be successful at Forex trading will not require hard work! Work smart not hard is a perfect expression here, meaning that you don't need to learn just for the sake of learning. You'll only need to learn one system/strategy. It wont take long to learn because...
Simple straight forward systems work best. A simple system in Forex trading will outperform a complicated system, short term and long term. Why is that a indisputable fact?
Because it will always be easier to implement a simple system in a complexed market. A complexed system with a lot of parameters, makes it much harder to find the right trading opportunities. The most reliable currency trading systems all tend to be simple.
You can learn everything about currency trading
If thats a fact, why do so many Forex traders lose? The answer is the lack of mental discipline.
Currency trading is more about mindset rather than just a method. If you dont maintain discipline to follow your method, the method isn't there anymore. The best way to gain the necessary discipline is to develop your own method. You'll be confident in your trading because of full understanding of the method.
If you are able to accept and take calculated risks at the right time, Forex trading can be very profitable, due to the leverage at your disposal. Forex trading is not rocket science. Its a lot simpler than you may believe, and thanks to the Internet it's available for everyone.
The key points:
- Education
- Learn to accept the risks
- Rely on yourself
- Trading discipline
Home Loans: Building Dreams Houses for You
Home is the basic requirement and also everyone longs for a home of their own. Like others, you also desire to have your own home but the main hindrance is the lack of sufficient finance. If this is so, then home loans are always there to aid you with the amount that you required. The home loans are structured in a manner which aid monetarily persons from every financial category to build the home they dream to live in.
The finance of home loans can be obtained in two forms secured and unsecured. If you decide to opt for the secured one, then pledging of collateral becomes mandatory and in turn facilitates borrowers to borrow large amount of loan. The unsecured form is the alternate option of secured form, and can be opted when an individual does not has property or reluctant to place it against the loan. The secured and unsecured forms are the two sides of the same coin whose objectives are to provide finance for building homes.
Home loans can be borrowed for multiple purposes as it is designed so. To build a home is the primary objective, and along with it individuals can borrow to renovate or repair the house and even borrow it to make extensions of rooms. Home loan is easily available in the market and lenders also do not hesitate to approve the loans if proper documents are furnished. By producing the data in a precise manner, bad creditors can also approve the loans and borrow the finance despite their poor credit or adverse credit. Home loans come at marginal rate of interest and also one can borrow it according to their repayment ability. To make the repayment burden more rational the repayment tenure are stretched to long durations which graces from 5-25 years.
The sophisticated technology has made it possible to approve home loans by sitting at home. The process is incomplex and reliable which saves time and effort despite providing instant results. The online device reduces the period gap between the person and his dreams of having a home of their own.
10 top-earning towns
1. Hillsborough, Calif.
Population: 10,500Median household income: $263,456
Median home price: $2,606,764
Amount spent on vacations/yr: $11,023
The expression "if you have to ask how much, you probably can't afford it" aptly sums up the town of Hillsborough. And the leaders here plan to keep it that way. Homes in this northern California enclave can be no smaller than 2,500 feet and no lot is less than half an acre. Moreover, you can't have an apartment here no matter what you can afford - town regulations forbid them, along with condos and townhouses. Bing Crosby hung his fedora here, and Hearst heiress Patty, in her pre-SLA kidnapping days, grew up in Hillsborough.
2. Scarsdale, N.Y.
Population: 18,100Median household income: $219,317
Median home price: $1,522,918
Amount spent on vacations/yr: $10,404
This fashionable New York City suburb has been home to the very rich and famous for generations. A swank and quiet village, wealthy Manhattan rat racers commute home to Scarsdale to get away from it all, with its lush Butler Woods and exclusive Scarsdale Platform Tennis Club, the first of its kind in the world. Notable Scarsdalians include Liza Minnelli and mom Judy Garland, Beatles wives Linda McCartney and Yoko Ono and 19th century author James Fenimore Cooper.
3. Los Altos Hills, Calif.
Population: 7,700Median household income: $199,370
Median home price: $2,371,601
Amount spent on vacations/yr: $10,928
Tiny Los Altos is the quintessential bedroom community - in fact, the only business in town is a bookstore. This Silicon Valley rural oasis has some of the largest homes in the Bay Area - one home boasts 18,000 square feet of living space - and all dwellings must take up at least an acre of this most prime real estate. The 60-acre Packard orchard is among the natural splendors, but the best feature besides the ritzy homes and choke-a-horse bankrolls is the Pathway System, a 63-mile maze of trails that winds through the pristine town.
4. Winnetka, Ill.
Population: 12,200Median household income: $195,879
Median home price: $1,316,052
Amount spent on vacations/yr: $10,119
This Chicago suburb boasts one of the nation's most elite public schools, New Trier High School, as well as the type of quiet Midwestern living one would expect from your basic regal - and very Republican - village. Among the high end in the area's real estate market: A five-bedroom, six-bath little beauty can be all yours for just $4,175,000. Donald Rumsfeld and Rock Hudson both grew up in Winnetka.
5. Chappaqua, N.Y.
Population: 9,500Median household income: $189,741
Median home price: $1,048,354
Amount spent on vacations/yr: $10,303
Bill and Hill picked up their Old House Lane home in this fashionable suburb for a comparatively reasonable $1.7 million, and the Clintons, like their neighbors, enjoy the profound sense of history you can find everywhere in Chappaqua. Reader's Digest has its headquarters in this small hamlet that had always been known for its prominent farming trade. Nowadays, residents are typically white-collar types who send their kids to Horace Greeley High School and expect them to get accepted to the nation's most prestigious universities.
6. Glencoe, Ill.
Population: 8,800Median household income: $187,043
Median home price: $1,148,241
Amount spent on vacations/yr: $10,250
Another Chicago suburb, Tom Cruise made "Risky Business" here back in 1983 - well, the script said the family home was in Glencoe at least. Actually, the movie was filmed in nearby Highland Park. The creative juices flow aplenty around Glencoe, with such famous entertainers as Harold Ramis, Bruce Dern and Fred "Wonder Years" Savage calling it home. Palatial homes along the shores of Lake Michigan make Glencoe ideal "for a certain kind of dreamy kid," wrote author Rich Cohen.
7. Blackhawk-Camino Tassajara, Calif.
Population: 11,700Median household income: $185,354
Median home price: $1,324,762
Amount spent on vacations/yr: $10,899
This mouthful of a town name represents an exclusive village along the northern California coast that is basically a census-designated country club. Real estate is one of the biggest games in town and business is booming, thanks primarily to the Blackhawk Country Club, the largest of multiple gated communities that give Blackhawk-Camino Tassajara its exclusive feel.
8. Great Falls, Va.
Population: 8,900Median household income: $181,318
Median home price: $1,419,278
Amount spent on vacations/yr: $10,221
This historic Washington, D.C. suburb uses both its proximity to the nation's capital and fun attractions like Great Falls Park to lure the Beltway's top movers and shakers, a list that includes Ollie North and Mary Cheney, daughter of the vice president. Citizens Association members aggressively guard the town's character, making sure the community maintains its rural, low-density - and highbrow - nature.
9. Weston, Mass.
Population: 11,700Median household income: $180,549
Median home price: $1,384,268
Amount spent on vacations/yr: $10,315
Great schools, low crime and quaint cultural offerings attract local sports heroes like New England Patriots head coach Bill Bellichick, Boston Celtics legendary forward John Havlicek, and Boston Red Sox first baseman David Ortiz to this Boston suburb. Regis College is a well-kept secret of excellence in education in a prototype bedroom community just 10 miles from Beantown.
10. Travilah, Md.
Population: 8,300Median household income: $177,477
Median home price: $1,456,430
Amount spent on vacations/yr: $10,783
One of a collection of exclusive and unincorporated communities in the Potomac-Washington, D.C. area, Travilah is a haven for doctors, lawyers and the over-40 set tired of the Beltway hustle and bustle. About 3 of 4 residents here are married and hold a bachelor's degree or better.
U.S. Overall Producer Prices Fall in June
A rebound of core producer prices in June despite a temporary reduction of energy costs according to a Labor Department report on Tuesday reinforced investors expectations for the Federal Reserve to hold interest rates unchanged to guard against inflation.
The U.S. producer price index, a gauge of prices paid at the farm gate and factory door, declined by 0.2 percent last month after shooting up by 0.9 percent in May, the first decline since January.
But after stripping out volatile food and energy costs, core prices in June climbed 0.3 percent after gaining 0.2 percent in May. Gasoline prices dropped 3.9 percent, the biggest decline since a 13 percent plunge in January. That trend has since been reversed as crude oil has surged to 11 month highs in July and gasoline prices have rebounded.
Economists surveyed by Reuters had forecast that both overall producer prices and core prices would rise by 0.2 percent.
U.S industrial output rose by a slightly larger than expected 0.5 percent on a surge in the production of automobiles a Federal Reserve report showed on Tuesday.
Treasury bonds extended losses on inflation concerns after the PPI data, while the dollar held steady and U.S. stock index futures edged up.
"You got a higher core inflation number. If that's what the Fed tells us they are looking at, it is a data point we have to take seriously. I think the Treasury market sells off," said Jim Caron, co-head of global rates research with Morgan Stanley in New York.
Meanwhile, a more recent gauge of chain store sales activity from Redbook Research showed a rise in the latest week versus the same week year ago, hinting that a recent rebound in energy prices has not yet dented consumer spending.
Federal Reserve policy-makers have expressed caution about the potential for price pressures to flare up and Fed Chairman Ben Bernanke is expected to tell Congress in testimony later this week the Fed continues to be wary about inflation.
Against the backdrop of a weakening dollar, demand for U.S. assets remained strong in May, a report showed. Net overall capital inflows into the United States rose to $105.9 billion in May from April's revised inflow of $97.8 billion, more than sufficient to cover the U.S. trade deficit for the same month, the Treasury said on Tuesday.
News Corp 'agrees Dow Jones deal'
Rupert Murdoch's News Corporation has come to a tentative agreement on a takeover offer for Dow Jones, the Wall Street Journal has said.
The Dow Jones-owned newspaper said the $5bn (£2.5bn) bid would now go to Dow's board of directors for approval.
News Corp launched the surprise bid for Dow Jones in May.
Since then, Mr Murdoch's company has been battling to reassure sceptics that the paper's independence will be maintained under New Corp's ownership.
Family ties
Any deal would need the backing of the Bancroft family - which controls voting rights in the firm.
According to the newspaper report, the family will hold a meeting to discuss the latest offer on Thursday. The Bancroft's are expected to take several days to reach any decision on the matter.
Meanwhile, Dow Jones directors have been searching for a bidder to rival the News Corp offer, but no-one has come forward with an offer that trumps News Corp's $60-a-share price.
The offer represents a 65% premium on Dow Jones' share price at the time the deal was announced.
A successful bid would bring Dow Jones publications including the Wall Street Journal and Barron's under the same stable as News Corp's New York Post in the US, and The Sun and The Times in the UK.
Dow Jones and Murdoch Said to Move Close to Deal
Rupert Murdoch reportedly moved a major step closer to achieving his long-standing aim of acquiring The Wall Street Journal when Dow Jones & Company tentatively agreed to be acquired by Mr. Murdoch’s News Corporation yesterday.
But the deal still must win the approval of the Bancroft family, which controls a majority of the company’s voting stock and has balked so far at selling to Mr. Murdoch, with some family members instead searching for another buyer.
According to a report on The Journal’s Web site, representatives of Dow Jones accepted Mr. Murdoch’s $60-a-share bid, which values the company at $5 billion. The News Corporation and Dow Jones declined to comment.
The agreement was expected to be put to the board tonight, and would cap a three-month effort by Mr. Murdoch to add Dow Jones to his global media empire.
The Bancrofts have shown great ambivalence throughout the process. They initially rejected Mr. Murdoch’s offer, then weeks later agreed to hear from News Corporation and any other potential bidders.
The reported deal may put pressure on the family to come to a resolution, because it suggests that management and the board believe that the offer should be accepted and, by implication, that it is a better option than going it alone.
Still, handicapping a vote by the Bancrofts is made more difficult because most of their shares are held in dozens of family trusts. In most cases, a trust can sell only if its three trustees vote to do so.
The family demanded, as a condition of considering a sale, a binding agreement that would limit News Corporation’s ability to hire and fire the top editors of The Journal and Dow Jones Newswires, which would, in turn, limit Mr. Murdoch’s ability to control their content. But it has not been clear whether the editorial integrity pact negotiated weeks ago by Dow Jones and News Corporation will meet with the family’s approval.
Mr. Murdoch and some of his top finance and legal aides met yesterday with Richard F. Zannino, chief executive of Dow Jones, and other representatives of his company. The Dow Jones board is scheduled to meet today, and The Journal reported that the deal will be presented to them then, at the $60-a-share price Mr. Murdoch originally offered.
That offer was a steep premium for a stock that had been trading at about $36 when before the News Corporation bid became public knowledge on May 1.
News Corporation is one of the world’s largest media companies, with newspapers on three continents, Fox News Channel, multiple satellite television franchises and other properties.
It plans to start an all-business cable television channel in October, to compete with CNBC, and its executives see Dow Jones — owner of The Journal, Dow Jones Newswires, Barron’s, MarketWatch and other properties — as a source of ready content and credibility for that new channel.
Mr. Murdoch first made his offer in a breakfast meeting with Mr. Zannino on March 29, and put it in writing in a letter to the Dow Jones board on April 17.
His offer has drawn protests from many newsroom employees. But others have questioned how well Dow Jones would continue to fare on its own.
The Bancroft family owns less than one-quarter of Dow Jones shares, but most of those have supervoting rights, giving them 64 percent of the voting power as of February, according to the company’s last public accounting of their holdings.
Ditch your bank for a credit union
If the response to "When banks turn evil" is any indication, a lot of you are really and truly sick of your banks.
You're sick of getting socked with fees, or tripped by hidden penalties, or earning lousy interest rates. You're tired of being treated like a nuisance rather than a customer. And yet you have little hope that the bank down the street is any better.
But who says you have to settle for a bank? Relief could be as close as the nearest credit union.
Because so many people are fuzzy about the differences between banks and credit unions, I'll highlight the three most important distinctions:
- Credit unions are member-owned. If you have an account at a credit union, you're a part owner in the enterprise. That may not entitle you to use the executive washroom -- your CU probably doesn't even have an executive washroom -- but you're likely to be seen as a person rather than as a "cost center."
- Credit unions are not-for-profit. This status helps explain why interest rates tend to be significantly better, and fees fewer and smaller, at credit unions than at banks. Any profits credit unions do make are distributed as dividends to their members. Contrast that with banks, which continually invent new fees and policies to boost profits (and to pay those stunning executive salaries).
- Banks hate -- hate -- credit unions. President Franklin D. Roosevelt signed the Federal Credit Union Act into law in 1934 to "promote thrift and thwart usury," and banks have pretty much been gunning for them ever since.
Because of their not-for-profit, cooperative structures, credit unions are exempted from most state and federal taxes. Banks have convinced themselves this is an unfair advantage and have spent a lot of effort, plus a fortune in lobbying fees, trying to legislate credit unions out of existence or at least limit who can join. (I guess they thought the money was better spent there than on, say, improving their interest rates, reducing their fees or slashing their telephone hold times.)
Are you eligible? Almost certainly
Fortunately for you, banks have failed pretty miserably in their efforts to contain the competition. That's why the Credit Union National Association, the CUs' trade group, can brag that virtually everyone in the U.S. can belong to a credit union, thanks to where they live, where they work or the associations to which they belong.
| Consumer loans | Credit unions | Banks |
|---|---|---|
Credit card | 12.15% | 15.08% |
48-month new car | 6.21% | 7.59% |
48-month used car | 6.46% | 8.17% |
36-month unsecured | 11.12% | 12.73% |
Mortgage loans | ||
HELOC | 7.91% | 8.34% |
One-year ARM | 5.75% | 6.05% |
30-year fixed | 6.75% | 6.77% |
Savings | ||
Regular savings | 0.94% | 0.73% |
Interest checking | 0.63% | 0.62% |
Money market | 1.96% | 1.24% |
One-Year CD | 4.74% | 4.17% |
Source: Datatrac, July 2007
The nation's credit unions count 90 million members, and their trade association estimates members save $8 billion a year thanks to better interest rates and reduced fees. Credit-union-issued credit cards, for example, tend not to have annual fees or to charge punitive interest rates for a single late payment. Most credit unions offer free checking accounts, and penalties for overdrawing those accounts tend to be lower: a $20 or $25 fee is typical, compared with up to $39 a pop charged by banks.
Yet many people discover the benefits of credit unions almost by accident, said Pat Keefe, a spokesman for the credit-union association. They'll join because they can get a decent rate on a car loan, say, and only gradually discover that the checking account has far fewer fees, the credit cards offer better interest rates, and the mortgages aren't bad, either.
But you don't have to wait until you need a loan. Usually, finding a credit union is as easy as visiting your employer's human resources department. If you don't work or want more options, you can use the "CU Matchup" tool at JoinACU.org.
Based on where we live, where my husband works and our various other affiliations, the matchup tool spit out 31 local credit unions that might accept us. Some of them had fairly narrow membership requirements, like America's Christian Credit Union, which requires attendance at certain evangelical churches. Others were pretty darned broad, like Wescom Credit Union, which allows anyone who lives, works, worships or goes to school in Southern California to become a member.
Not perfect -- but not out to get you
Like bank deposits, money in credit unions is insured for at least $100,000 per account. Instead of the Federal Deposit Insurance Corp., which insures bank deposits, the coverage is provided by the National Credit Union Administration, but both agencies are backed by the full faith and credit of the federal government.
And you typically aren't restricted to using your own credit union's ATMs. Most CUs either offer fee-free access to a huge network of ATMs or reimburse your fees if you use other institutions' machines.
Are credit unions perfect? Of course not. No institution run by humans and their computers could possibly claim to satisfy everyone all the time. Occasionally I'll hear of a credit union that's instituted some silly fee, and too many have opted for "bounce protection" instead of real overdraft protection for their accounts. (For why the difference is important, read "Don't be duped by 'bounce protection.'")
But most of the folks I talk to who have abandoned banks for credit unions are thrilled they made the switch. If you're sick of your bank, why don't you follow suit?
Top 10 investing scams
The stock market has picked up steam lately, but for many investors the resurgence isn't enough. Instead, they look for quicker ways to bolster their portfolios. The problem is, some promised high-return opportunities are downright frauds.
Ponzi scammers top the list of scam artists taking return-hungry investors to the cleaners, according to the latest look at the investment industry by the North American Securities Administrators Association. A close second is investment fraudsters targeting seniors.
"These schemes offer products and pitches that may sound tempting to many seniors who've seen their retirement accounts and income dwindle in recent years," says Ralph A. Lambiase, NASAA president and director of the Connecticut Division of Securities. "It pays to remember that if an investment opportunity sounds too good to be true, it usually is."
A promise of 40% returns?
The quest for a safe investment vehicle is the common theme in all the scams. Here are the top 10, ranked roughly in order of prevalence or seriousness:
1. Ponzi schemes. This is an old scam named for Charles Ponzi, a swindler from the early 1900s who conned $10 million from investors by promising 40% returns. His scam has been copied by countless crooks. The formula is simple: Promise high returns to investors and use their money to pay previous investors.
According to the NASAA, Ponzi scammers often blame government intervention for the failure of their system. In Mississippi, two Ponzi scammers pled guilty to a scheme that bilked 41 investors from four states out of $10.2 million. They told investors they were taking part in a money-trading program. The program never existed.
2. Senior investment fraud. Record-low investment rates, rising health care costs and an increased life expectancy have set seniors up as targets for con artists peddling investment fraud -- like Ponzi scams, unregistered securities, promissory notes, charitable gift annuities and viatical settlements. In 2003, Pennsylvania securities regulators shut down a Ponzi scheme that bilked $2 million from seniors' pensions and IRAs.
3. Promissory notes. These are short-term debt instruments often sold by independent insurance agents and issued by little-known or nonexistent companies. They typically promise high returns, upward of 15% monthly, with little or no risk.
Bad brokers and not-really-brokers
4. Unscrupulous stockbrokers. As share prices tumble, some brokers cut corners or resort to outright fraud, say state securities regulators. And investors who have grown more cautious and scrutinized their brokerage statements have discovered their financial adviser has been bilking them via unexplained fees, unauthorized trades or other irregularities.
5. Affinity fraud. Taking advantage of the tendency of people to trust others with whom they share similarities, scammers use their victim's religious or ethnic identity to gain their trust and then steal their life savings. The techniques range from "gifting" programs at churches to foreign exchange scams.
6. Unlicensed individuals, such as independent insurance agents, selling securities. From Washington state to Florida, scam artists use high commissions to entice independent insurance agents into selling investments they may know little about. The person running the scam instructs the unlicensed sales force to promise high returns with little or no risk.
This scam has made the top 10 list three years running.
Investors approached by an independent agent should first call the state's securities regulator and ask if the salesperson is licensed. Then ask whether the investment being offered is registered as well. If the answers are yes, the investors should be more comfortable about the product. But investors should review the product with the same healthy skepticism that they would any investment opportunity.
Conspiracies behind every tree
7. "Prime bank" schemes. Con artists promise investors triple-digit returns through access to the investment portfolios of the world's elite banks. Purveyors of these schemes often target conspiracy theorists, promising access to the "secret" investments used by the Rothschilds or Saudi royalty. In an effort to warn investors, the Federal Reserve pointed out that these don't exist. But unfortunately, that government denouncement just feeds into the conspiracy mindset linked to this scam.
8. Internet fraud. According to NASAA, Internet fraud has become a booming business. For example, federal, state, local and foreign law-enforcement officials targeted Internet fraudsters during Operation Cyber Sweep in November 2003 -- and identified more than 125,000 victims with estimated losses of more than $100 million.
"The Internet has made it simple for a con artist to reach millions of potential victims at minimal cost," says Lambiase. "Many of the online scams regulators see today are merely new versions of schemes that have been fleecing off-line investors for years."
Lambiase warns consumers to avoid the infamous Nigerian 419 scam, saying Internet users should ignore e-mails from individuals in need of help who want to deposit money in overseas bank accounts.
"Don't be dot-conned," he says. "If you get an e-mail pitching a deal that can't be beat, hit delete."
Funds and annuities
9. Mutual fund business practices. Recent mutual fund scandals have made the national news and attracted the attention of investors and launched several investigations.
"These investigations demonstrate a fundamental unfairness and a betrayal of trust that hurts Main Street investors while creating special opportunities for certain privileged mutual fund shareholders and insiders," says Lambiase. "We will continue to actively pursue inquiries into mutual fund improprieties," he says.
10. Variable annuities. As sales of variable annuities have risen, so have complaints from investors -- most notably, the omission of disclosure about costly surrender charges and steep sales commissions. According to the NASAA, variable annuities are often pitched to seniors through investment seminars -- but regulators say these products are unsuitable for many retirees. Lambiase says variable annuities make sense only for consumers who can afford to have their investment locked up for 10 years or longer.
"Our fight against fraud never stops because each year con artists discover new ways to fleece the public," says Lambiase. "Sadly, many of the age-old scams still work to cheat victims of their hard-earned savings as well."
Disappointing retail sales
Are disappointing retail sales a concern?
Just one day after the stock market soared to a record high, posting the biggest one-day percentage gain in nearly four years, poor retail sales for June threaten to douse the enthusiasm. Wait a minute, you say. Wasn't yesterday's market performance attributable in part to good retail sales results? Yes. It was Wal-Mart in particular that was a shining star relative to the lackluster results of their retailing brethren that got investors' attention. Wal-Mart is a component of the Dow Jones Industrial Average that hit a record high yesterday.
But Wal-Mart is also a discounter. So yesterday's enthusiasm about Wal-Mart is watered down by looking at the bigger picture retailing results announced by the Commerce Department this morning.
Specifically, retail sales fell 0.9 percent in June, and excluding auto sales, were down 0.4 percent from May. Both were bad, and were worse than expected. In fairness, it must be pointed out that the May results were very strong and have since been revised even higher.
While the death knell of the consumer has been sounded repeatedly, the resilience of the consumer has been demonstrated time and time again. I fully expect we will see evidence of that once more. There is never a shortage of negative headlines but do the poor results spell bigger trouble for the U.S. economy? I don't believe so. But it doesn't justify the party on Wall Street yesterday either.
Reader e-mail: Here are a couple of reader e-mails on the subjects of inflation and the Fed.
"I know that the Fed is concerned with inflation excluding food and energy. However, I am a cost analyst for a major utility and all I have seen since 2005 is increases in material costs (e.g., stainless steel, copper). For example, a 1/2" X 4' X 8' sheet of stainless steel has gone from $1375 in 2005 to $2795 in 2006 to $5000 today. As such, how can there not be a larger increase in core inflation. Do cheap imports and/or increases in productivity counteract such increases in commodities? Or is the government painting a rosy picture?"
A little bit of both. The "official" measures of inflation have long been scoffed at by households - and many others - as not reflecting actual price pressures. Add to that the concern that productivity is growing at a slower pace, and you can see why the Fed is so hyped up about inflation. But the specific, firsthand information you've provided about commodity prices is alarming to say the least. Thank you for sharing your insight.
And speaking of the Fed, this reader weighs in on the Fed outlook.
"For a year the Fed has been happy with 5.25% despite constant warnings about inflation dangers. Their current undertone is that no reduction is to be expected until they see a firming trend in what is currently the rate inflation reduction. You never expect the Fed to omit a warning about inflation, because that is the equivalent of warning that past performance, is no indication of future performance. To me, that sounds more like a possibility of a quarter point reduction by first quarter next year."The greatest obstacle to a rate reduction is the amount of leveraged money floating in hedge funds and private equity funds. The new Supreme Court ruling permitting price fixing, can also kick up inflation because margins will no longer be subject to a free market auction."
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