If you want to invest money for a better future and don’t want to constantly monitor your money, 2011 is as good a time as ever to invest money in funds. In fact, mutual funds offer most people the best investment options out there because they do the day-to-day money management for you. In the simplest of terms, here are some tips to help you invest money and find the best funds to keep yourself out of trouble in 2011 and beyond.
Keep in mind that you don’t invest in mutual funds to speculate in stocks and bonds. You invest in them because funds were designed as a way for millions of average folks to get a piece of the action in stocks and bonds with professional money managers making the investment decisions. Your job is to simply decide how much money to invest in each of the 3 basic types of funds, and then to pick the best investment options or funds in each area to fit your risk profile. Here are some tips, because 2011 and beyond could be a little tricky.
In order to really make your money grow over the years you need to invest in stocks. The average person’s best investment options in this department are equity (stock) funds. Equity funds range from aggressive growth funds that pay zip in dividends but can go up like a rocket in good economic times… to blue-chip equity-income funds that invest your money in large corporations that pay steady dividends with milder fluctuations in stock price. Since the higher a stock (fund) price soars the harder it falls, for 2011 and beyond I’d invest my stock money with the more conservative equity-income funds. It’s nice to get a 2% or 3% yearly dividend when you can hardly find 1% at the bank.
The second basic type of mutual funds is bond funds, and for 98% of the people they represent the best investment options for putting money into bonds. Millions of Americans invest money in bond funds, but few understand bonds, which is what these funds invest your money in. Here we keep it simple and go to the bottom line. If you want details, I’ve got a number of bond articles that go there. Simply said, you should invest money in bonds (funds) because they pay higher interest income than you can get elsewhere, and tend to balance out your overall investment portfolio.
Traditionally, bond funds can offset some losses from stock investments because they have often tended to be one of the best investment options when stocks were out of favor and in the dumps. In the bond department you can be aggressive or more conservative as well. For 2011 and beyond I would suggest you go conservative again because our economy and interest rate situation are precarious at best. Interest rates are near record lows and have been falling since the early 1980s. The economy is still struggling to grow with high unemployment.
What this means to you when you invest money in bond funds: when interest rates head back UP, SOME bond funds won’t be your best investment options. But remember, you need to invest money and keep it invested for the longer-term. You are not trying to speculate, but still need some money in these funds for balance. Your best investment in the bond department for 2011 and beyond: intermediate-term bond funds vs. long-term funds. The latter are too risky and will get burnt when interest rates go back up.
That takes us to the third and last of the basic investment options for funds and investing in general. Money market funds are very safe investments and pay interest income based on prevailing interest rates, which were historically low heading into 2011. Don’t avoid these safe investments because they have one redeeming characteristic other than safety: when rates go back up the interest they will pay will automatically follow suit.
So, yes you should invest money in mutual funds, now and in the future. The year 2011 will present challenges, but where else can you invest in stocks and bonds with professional money management working for you at a modest cost? Your objective should be to invest money and make the best of it. Your best investment options as an average investor haven’t basically changed much in over the past 40 or so years. You just need to focus on where to invest your money in funds so you can stay out of serious trouble when times are rough. Over the longer term, that’s the best you can do as an investor.
28 MayShould You Invest Money in Mutual Funds For 2011 and Beyond?
24 MayTips On Buying Secondhand Clothing
What: “Vintage.” “Recycled.” “Loosely worn.” These terms are all ways of describing second hand clothing. Tough economic times and a growing concern for the environment has encouraged people to shop secondhand or donate used clothing. Secondhand clothing can be found in various thrift shops, consignment stores, garage sales and on the internet with auction websites such as eBay. Today, many used clothing that are in good condition are waiting in stores for someone to notice them. For the budget-conscious and the environment conscious, shopping secondhand clothes can be fun and challenging — you never know what surprises you’ll find! You might not find anything in your size that you like, but if you get lucky, you may find an item that’s absolutely perfect for you, or better, a real treasure! In fact, a friend of mine purchased what she thought was a cute little purse at a garage sale for $15. Little did she know that it was a designer brand whose purses usually go for several thousand dollars a piece and the appraised value of her secondhand treasure was close to a thousand dollars!
Why: Secondhand is cheaper, less likely to shrink, and eco-friendly. By buying secondhand clothing, you give used clothing a second life and keep it kept out of the landfills. In this day and age of environmentally friendly options, buying secondhand is a great idea and can be especially beneficial for families on a budget. Some charities can run secondhand clothing stores and make money from the sale of the clothes to help others. Buying secondhand clothing also gives you an opportunity to discover great clothes for a very low price, not to mention there are different styles and sizes for everyone! You’ll get to enjoy the thrill of the hunt, find unique items that no one else will have and help reduce textile waste in landfills.
How:
Check out garage sales, thrift stores, and consignment shops for secondhand clothing and other everyday items. Yard sales are great for finding cheap used clothes and you can haggle the price. When you’re sifting through thrift shops, look for labels that you know and trust. The prices may be a little higher especially if the garment was well-cared-for, but the quality and reputation of the manufacturer guarantee a longer wearing. High-end clothing for both adults and children is sometimes donated to secondhand stores. You can check out stores near upscale neighborhoods for new donations. Make sure to thoroughly check all of the items. Ensure that all seams are tight and secure, especially around the collar, armpits, buttons and zippers. Check for moth holes, loose stitches and stretched-out necks, armholes and waistbands. Don’t waste time in piles and piles of clothing — it’s time consuming and can be frustrating. Pick stores that organize clothing well enough for you to quickly and easily find what you need. Bring clothing that is too worn, ripped or stained to be sold or donated to recycling centers.
TIP: Make sure you wash all your newly-bought secondhand clothing before wearing them. When buying toys, you must disinfect before giving them your kids. Blankets, sheets, towels need to be washed thoroughly as well.
18 MayShould you rely on cheap car insurance?
Do you remember the Blues Brothers? They were unstoppable. They were “on a mission from God”. Seems like almost everyone standing behind the counter in the rental agency is a Blues Brother when you come into collect the vehicle. They always want to sell you something, usually additional insurance. The most common special offer is loss damage waiver (LDW). It sounds such a good idea to have complete cover against any loss caused to the vehicle while under your control. The magic word is “waiver”. You are excluded from liability even if you drive the vehicle off the end of a pier and it sinks without trace (hopefully without you still inside it). The only problem is this good idea can seriously damage your bank balance when the final bill comes in. That hourly or daily rate just got heavy. So when should you add LDW? The answer is deceptively simple. If you do not own another vehicle and have no insurance cover in place, it may be a good buy. But most insurance policies on your own vehicle cover you while driving a rental. So it all comes down to the extent of that cover on your own vehicle.
To get the maximum discount in these hard economic times, most people have been pushing up the deductibles. In many cases, the potential losses can be managed to keep to the low end. It’s your vehicle. You can talk to the repair shop and get all the work you want done at the best price. But when it’s a rental vehicle, everything is out of your hands. The rental company has no interest in protecting your bank balance. It pays top dollar to get the vehicle repaired and sends you the bill. No searching around to find the cheapest replacement parts and lowest price body shops. Everything is top of the range and then comes the kicker. It’s called the “loss of use” charge. You are expected to cover their estimated loss of profit while the vehicle is off the road. And guess what. If you are paying their loss of profit, they have no incentive to rush the repairs. They can take their own sweet time and, in most cases, you pay – most private policies do not cover loss of use charges. Some credit card companies offer limited cover, but read the small print before relying on it. Limited cover means very little actual money will ever be paid out.
If you are only renting for a few days, it’s probably worth paying for LDW. It may not be cheap car insurance, but it protects you. But if the end bill is going to be too high, trust to luck and your own insurance policy. Hopefully, your own cheap car insurance policy will give you enough of a buffer against claims Remembering, of course, that only the best private policies cover you against the dreaded loss of use charges. If nothing else, all this bad news should give you the incentive to drive like your wheels are passing over egg shells. Drive as safely and carefully as possible. If you are going to break some eggs, make sure the damage is minor and the losses are small.
17 Jul20 Business Survival Stragies for tough economic times
How to survive tough economic times without laying off employees.
As a business owner or manager, during the last 18 months you have been faced with shrinking profit margins and fewer customers lining up to purchase your once thought to be “hot products or services.” The question of how to survive these seemingly tough times usually results in answers such as…”we have to lay off more workers” or, “…let’s close the office located in Suburbia”.
The problem with this approach is that…when the economy rebounds, you will be looking to re-hire those very people you laid off in the first place. Unfortunately, you may discover that they have moved on to other jobs, gone back to school, or start their own businesses. You have then put yourself in a situation where you have to now hire and train a new employee or hire a more experienced worker who can “hit the ground running”.
Laying off employees during economic downturns should be a “last resort”. Well, at least not until you have explored all other avenues, namely trying the strategies I have outlined below. I will even go one step further. If you have already implemented some (if not all) of these strategies, or have made them an integral part of your company’s operating culture, chances are you have not cancelled your long-planned vacation to the Bahamas.
Additionally, although these key strategies can be adopted by businesses regardless of size, they are primarily geared towards Small Businesses. The definition of a small business will obviously vary by industry and, more importantly, it may depend on the business owner’s personal assessment. Regardless, you can find out the classification of your business as defined by the Small Business Association (SBA) by going to www.sba.gov
20 Business Survival Strategies
1. Schedule Weekly Budget Meetings. The assumption is that you have a budget. You may be surprised at how many small businesses either (a) don’t spend the time to develop a proper budget or, (b) don’t have a regular budget review process. Use the meeting to challenge managers and supervisors to find ways to reduce expenses in their respective departments (and reward them). Have the managers call in via conference calls if you have satellite offices in various parts of the country or globally. Make sure they are prepared with arguments to justify the budgets of their various departments and plans on how to cut costs.
2. Set up a Profit Committee/Task Force. This should be employee-driven. Challenge them to contribute ideas but, more importantly, reward them for good ideas that actually get implemented.
3. Revamp your performance reviews. Are the employees (especially Senior Managers) objectives aligned with company goals (i.e. increase sales, reduce expenses, improve customer service)? Are the goals more than simply rhetoric or “feel good” words? Simply put, are the objectives specific enough and…can you really “MEASURE” the progress?
4. Review your “Turnover” ratios. Profits are quickly eaten up by idle inventory a late-paying customers. Incorporate these items as a part of your budget review process. Work closely with your vendors to reduce case packs, or get simply get rid of items that don’t sell! Offer to settle with your late-paying customers or arrange for installment payments on outstanding receivables. Getting something is better than nothing in tough economic times.
5. Rely on the leverage you have with your vendors. Partnerships should be more than just “talk”. Negotiate better terms, i.e. try to increase “days to pay” for your invoices. Even taking an extra 5 days per month on a base of business valued at $1 million annually can earn your business extra interest of over $3,000, after taxes. That’s real money!
6. Change your Payroll Cycle. If you are on a weekly payroll cycle, consider moving to bi-weekly. If you are paying bi-weekly, consider moving to semi-monthly (15th and 30th). Perform a cost-benefit analysis to make sure this makes sense for your business. You can reduce payroll processing costs which can be significant especially if you have a fairly large employee base.
7. Get on the “green” bandwagon early. Become more energy efficient. Who knows…you may even qualify for tax breaks. Get employees in the habit of turning off lights when they leave conference rooms. Installing sensors for rooms or areas used infrequently may be something to think about. Turn off computers and unplug office equipment at the end of each day. According to the government’s ENERGY STAR program, 40% of the electricity that home electronics use is consumed while the products are turned off. I would imagine this applies to office equipment as well.
8. Meet with your banker. Set up a meeting right away. Not only will you be building a critical relationship (one that too many managers neglect), but ask them for ideas. They have the benefit of seeing what works (or doesn’t) for other businesses so feel free to pick their brain. Best of all…it’s free advice! Discuss things like…putting extra cash in Money Market accounts, CD’s etc. See if you can move your operating account to an interest bearing checking account. While the interest earned may not be “earth shattering”, it is still money earned without doing anything different. If there is a limit on the amount of checks that can be written in such an account, analyze the fees that the bank may charge vs. the interest that can be earned. Pay bills electronically and offer direct deposit for your employees to reduce any check writing fees. Also, are you carrying too high balance of a balance in your checking account? Work with your accountant and take a look at your cash flow to see if some of that idle money can be earning interest elsewhere.
9. Trim your travel budget (if you still have one). Telephone and/or Video Conference will save you tons of cash. Also, are the seminars and conferences you attend every year really paying off? Maybe attending 2 instead of 4 will reap the same benefits.
10. Renegotiate contracts. Bring in service providers (telephone, software, etc,) and consultants to discuss current contracts and reduce fees. Take a look at your leases (office equipment, rent, etc.). Also, are you taking full advantage of any “hidden deals” and/or discounts? Have you been paying attention to the invoices in an effort to avoid “overcharges”? Take advantage of the economic downturn. No one wants to lose a customer at this point. Where appropriate, bring other providers in to bid for your business. Caution: don’t hire them simply because they are cheap!
11. Tax strategies. If you invest a lot in equipment and are incurring high business equipment taxes Explore states with business-friendly tax codes. There are benefits to setting up an “equipment holding” company in a low tax state. Business losses and write-offs may also result in your business qualifying for various tax breaks and deductions. Talk to a good tax attorney about how to maximize these and other tax deductions for your business.
12. Budget for “reserves”. In other words, have a “contingency” or “miscellaneous” account as a line item in your budget. A good starting point would be to set aside 5% – 10% of all your total expenses for unforeseen circumstances. Keep in mind, if we could predict the future, we would all be millionaires. Incorporating the “reserve” account as an “expense” item is simply good business policy.
13. Look at your health insurance benefits. If you haven’t spoken to your Insurance Rep in a while, now would be a good time. You should be reviewing your policy every six months anyway. A slight change in your workforce level can have a significant impact on the employer (and employee) is your contract coming up for renewal? Can you break the contract without incurring any fees? You may be able to find a good deal out there without sacrificing coverage.
14. Conduct annual invoice audits. Look closely at the invoices received from your vendors. If you don’t have a good system for monitoring the invoices before they are paid, you may be surprised at the number of duplicate or erroneous payments that can occur. An extra “0” added to a $1,000 invoice results in a $10,000 payment and a $9,000 mistake. Incentivize your employees when they discover these errors. For example, if they recover monies, split it with them. It’s a “win-win” deal!
15. Go after abandoned customers. If a competitor closed its doors, that should spell “O P P O R T U N I T Y”. The customer may be cutting back, but when things get better or they find a new job, they will be back. You will want to make sure you are well positioned to fill the gap left by your competitor.
16. Explore new sales markets. As strange as it may seem, an economic downturn is the perfect time to look for opportunities in new markets. Territories once shunned (especially overseas) now deserve a second or third look. Again, get ideas from your employees.
17. Stay involved in your community. Don’t cut back on your sponsorship of community events and charitable donations. The money spent on the uniforms for the Little League Baseball team is “big deal”. People remember this stuff. Those people are potential customers or good referral sources. Actually, its worth much more than the tons of money you spent for the sign at your local Major League Baseball stadium. You know…the one that nobody notices!
18. Do you twitter? Do you have a presence on the social networking sites? Yes, I do mean Facebook, Twitter, MySpace, etc. Are your employees set up on LinkedIn? Even if you are a “Mom and Pop” type businesses, consider paying one of your tech savvy employees 15 or 20 cents extra a week to post updates and monitor these sites for you if you do not have the “know how.”
19. Part-time and Independent Contractors. Before you consider laying off, explore the possibility of reducing hours or changing the status of an employee to “Independent Contractor”. The employees will still appreciate having an income and, at the same time, you will save money on payroll taxes and/or health insurance contributions you were obligated to.
20. Finally…be honest with employees. Don’t tell them today things are great, and then tomorrow start laying off. On the other hand, if things are really tough, let them know. If you build an honest relationship and take the time to let you know how much you appreciate their effort, they will “go to bat” for you during the tough times. If you do have to resort to laying them off, they will understand even if it hurts. Chances are, if you have implemented the other 19 strategies mentioned her and made them an integral part of your company’s culture, your employees will be the ones saving your company from going under in an economic downturn.
Donald Harper is an Independent Management Consultant with over 25 years of experience based upon serving in senior level positions at several Fortune 100 corporations. He has an extensive background in a variety of business processes including merchandise planning and allocation, inventory accounting, transactional accounting, accounts payable, financial systems implementation and business process reengineering. He provides business management, accounting, tax and general consulting services to small businesses. Email contact: don.harper1@gmail.com
12 JulNo 1 Up Cash Gifting(How To Become A Self Made Millionaire)
Everyone dreams of being a millionaire, or a multi-millionaire, since a million dollars does not go as far as it used to today. Let’s face it, in these tough economic times, most of us would settle for having just enough money to meet our monthly bills. Then, if we really stretch, and we wish we had enough extra cash on hand to buy that new car we have had our eye on for the last couple of months. Extra cash for a vacation would be nice-a real vacation-not just a week away from work spent catching up on chores around the house. No, the kind of vacation we are wishing for is demands lot of money, and plenty of it. Where will you find the money for that college education for your son or daughter? When you get that paycheck at the end of the week and look at the pay stub, do you sigh in exasperation and wonder how you will ever be able to afford the education your children deserve?
An internet-based activity called cash gifting is making quite a difference in the lives of people around the world. You may not be familiar with the term, but it actually has its basis in the dynamic principle of the reciprocity of giving. In other words, ‘as you give, so shall you receive’ a cash gifting review will tell you that it is a 100% legal activity that has stirred the interest of entrepreneurs worldwide. It is not a get-rich-quick scheme, nor is it a pyramid or Ponzi scheme. Quite the contrary, it is comprised of people who are tired of the status-quo, people who want to make radical changes in their financial situations and who want to help others do the same thing.
A cash gifting best sponsor will guide you through the beginning stages, offering support in the form of cash gifting training, weekly workshop conference calls and powerful marketing tools. Just as your cash gifting best sponsor builds his team, you will begin to build your own cash gifting top team. Once you choose your level of participation, you begin working on your receiving line, which not only builds your wealth but also helps your cash gifting top team members reach their goals of financial freedom. There are no quotas to meet, no hidden costs or investments, just the pure, simple act of giving a gift of cash with no expectation of anything in return. The universal law of reciprocity is the key to the success of the cash gifting program. The principle of ‘as you give, so shall you receive,’ is demonstrated daily, many times over, in the lives of the cash gifting top team members.
There are no products to sell, no services to push, no investments to make. Just the simple philanthropic act of giving freely, which allows you to grow your own wealth by helping others achieve financial independence. Once you have made a decision to become part of this revolutionary program, you can be a member of the internet’s cash gifting top team. You choose the level at which you want to participate and due to the cash gifting training available, you can immediately start receiving cash gifts of your own as the training catapults you quickly to the position of a cash gifting best sponsor.
At this point, you will be well on your way to helping entrepreneurs just like yourself reach their financial goals, while at the same time reaping the benefits of this ‘by-invitation-only’ cash cow. That’s right; there are no cold calls. You have access to the cash gifting top team support, a dynamic marketing program, regular cash gifting training and weekly workshop conference calls. How great would you feel being part of cash gifting top team of like-minded entrepreneurs helping each other on the road to financial freedom?
<input id=”gwProxy” type=”hidden” /><input id=”jsProxy” />
<input id=”gwProxy” type=”hidden” /><input id=”jsProxy”>