Finance Roll

It possible that you may have seen the articles in the news recently about a high-rolling businessman and his evening excursion in London with friends to an exclusive nightclub. In just a few hours, the businessman and his 15 friends (as well as some happy gatecrashers) guzzled their way through 102 bottles of champagne, 11 bottles of vodka and a Methuselah bottle of champagne (which contains the equivalent of 8 regular-size bottles). You'd probably have had to reach the age of Methuselah to pay the bill: an enormous £105,805. But the Dubai-based businessman didn't have any troubles paying the bill; out came his American Express Centurion (also known as American Express Black) card, and the bill was paid.

American Express has taken the first and second slots in a ranking of credit card preferences among high-net worth (minimum $5 million) and high-income (at least $200,000 annually) consumers with its American Express Centurion (or Amex Black) and American Express Platinum. There is no doubt that when it comes to exclusive credit cards the American Express Black is one of the most exclusive you can get: membership is by invitation only and there's an annual fee of $2,500.

These two American Express credit cards are typical of the new credit cards for the elite - expensive card products that offer equally expensive perks, like access to private islands and private jets, to those willing to spend amounts ordinary mortals can only dream about. The American Express Black cardholder should spend a minimum of $250,000 annually to be a member. The American Express Platinum card may come at a lower fee than some other exclusive cards ($450 a year annual fee), but they will look after you with assurances such as their offer to evacuate injured American Express members and their families from wherever vacation location they are to where they can be given quality medical attention.

Credit cards for the mega rich are becoming attractive options and big earners for credit card issuers. They may not make much from finance charges but 4% merchant servicing fees can mean quite a bundle, if the purchase volume is high enough. That businessman's transaction from his big night out could earn American Express a minimum of $4,000 in merchant processing fees.

Coutts World Mastercard Signia reportedly gives cardholders the opportunity to live like royalty, after all Queen Elizabeth II is a Coutts card holder. The annual fee is $700 but they will kindly waive this if you spend over $100,000 a year on your Coutts credit card. You cannot apply for the Coutts Purple; membership for this is also invitation only.

The market is rich, but there is increasing competition. Smith Barney has its Chairman's Card ($400 annual membership) also offers special perks, including a facility that will set up your quiet dinner meetings at New York's most exclusive restaurants (and in Los Angeles). Stratus Rewards Visa is a by-invitation only card that allows you to fly on private jets when you redeem rewards points.

Bank of America recently launched its Accolades card, which uses the American Express network and offers the common (for this elite class of cards) perks like premium tickets to concerts. The Accolades card has a match-your-donation offer (up to $2,500 a year) for its philanthropic cardholders who wish to make charitable contributions. Membership is reserved for those with at least $100,000 of assets in Bank of America's private banking division.

Why do ultra-rich customers bite? They get the status symbol, but they also get big benefits. They're in the stratosphere. But those at ground level also have similar opportunities to enjoy big perks for a little exclusivity in their cards. American Express Gold and special Diners Club credit cards also give you the chance to enjoy exclusive privileges when you want some.

South Carolina offers some of the best pre-owned cars around, including an excellent buy on this 2009 Honda Civic EX Coupe reasonably priced at just $16,995. This two-door coupe is taffeta white and equipped with an automatic transmission. Special features include a power moonroof and a spoiler.

The Civic has a 1.8-liter engine with a torque of 128 lb at 4300 RM and 140 HP at 6300 RPM. This Honda comes with a 1-4 cylinder configuration along with its 16 valves and the sequential multi point fuel injection mechanism as well as variable valve control. It gets 25 MPG in the city and 36 MPG on the highway. The Civic is front-wheel drive with independent four-wheel suspension. It is also equipped with large alloy wheels, power steering that is fitted with speed sensors and wheels fitted with anti-roll bars.

For your listening pleasure, the sound system includes an MP3 decoder, CD player and FM/AM radio. The scientifically designed, ergonomic seats help cut down on fatigue even after a long journey. The front bucket seats recline and the bench-type split rear seating with center armrest allows for passenger comfort and extra cargo capacity when needed. The air conditioner, front reading lights, illuminated entry, front cup holder, passenger vanity mirror and door bins all add to the convenience and comfort of the occupants.

Safety features of this 2009 Honda Civic Ex Coupe include power windows, remote keyless entry, telescopic tilt steering wheel, meter panel which includes low tire pressure warning system, ignition disable, dual impact airbags on the front and on the sides and overhead, ABS brakes, variable wipers, rear defroster, halogen headlamps, and panic alarm.

Other important features:

With its exterior body length of 175.5" and width of 68.9" the car offers leg space of 42.6" in the front and 30.3" in the rear. With its rear headroom of 34.7" and hip room of 49" the Malibu is most comfortable even for long trips with room for five. And it's considerably larger cargo space compared to other cars in its category has room for all the luggage, too!

Many consumers are completely unaware of the fact that they can find their new car online. That's right, a majority of big lot car dealers like to post all of their vehicles online and many popular search engines have special auto searching features that can line a buyer up with the car of their dreams.

How does this work? Well, it is similar to the popular MLS features on many realtor sites that allow the consumer to enter the basic search criteria and then wait for the results to be returned. It is the same thing with online auto locators. You can enter a specific make or model, or you can simply indicate the type of vehicle, like a truck or sedan, and the maximum price range you'll be able to afford. Many dealerships make both new and used auto information available and this is a great bonus for those looking for good deals and who also have limited budgets or poor credit.

What if the car I want is in another state? Well, there is the possibility of acquiring that car through a local dealer. It is a good idea to print out any information about the distant vehicle and bring it with you to the dealership. Be aware that they may tack on extra fees for this service and it may make it a less desirable purchase, but as the old saying goes "it doesn't hurt to ask", and this is especially true in the current economy.

Can I find out about financing as well? Absolutely! Many modern auto dealers are making a pre-approval application available at their websites and the consumer can find out what their total available purchase amount will be. This is a great way to get the ball rolling on the purchase of a new car, but it helps to know if you have a decent credit report and credit score in advance. Why is that? This is for several reasons. If you make a few applications across a number of dealerships you may actually be hurting your credit score because inquiries can often be viewed as a negative against the overall score. Secondly, if you know your credit score you will know what kind of vehicles and what kind of price range you will be able to get a loan approval for. This saves a shopper lots of time that might be spent looking at and test driving cars that are out of their purchasing class.

Another good thing about online financing is that if a shopper is really set on a particular brand of vehicle they can also have their application sent to affiliated lenders and dealerships who may be able to pull together a financing package with better terms. This is particularly true of people with bad credit and larger auto dealerships. This is a process known as auto leads, and the dealers look for people who are ready to buy and may have some financing challenges. So, not only can you find a car online you can find the best loan rates as well!

As time goes by, more people have opted for using credit cards rather than always having cash on hand. Aside from the fact that credit cards come in a handy size, you don't need to worry about whether or not you will run out of money. More importantly, this brings convenience in paying your monthly obligations. Still, the big question would have to come at the end of the payment period, would your earnings be enough to pay what you have spent?

Among the many ways of managing your obligations is through credit card consolidation. All your credit lines will be merged into one. So it goes that all your financial responsibilities will be rolled into one and be paid as a whole and not individually. Much more, you need not be anxious anymore about your ultimate concern: high interest rates. Usually low rates are offered. Late payments are also waived. To top that, you will not also be annoyed with the agents reminding you of your deadline.

The entire monthly bills are taken care of in one single payment. All the hassles when paying all your credit responsibilities will surely be eradicated in a flash. Who wouldn't want such service?
Necessarily, you need to enroll yourself in a consolidation company first. They will be the one managing all your fees and the interests of your purchases as well. They act as your advocates in handling all your payments and all that comes along with it. With that, you better find a firm with a good reputation, might as well take advantage of it because enrolling in such company will also entail paying their professional fees.

If you are not comfortable enough to consider the first option, you can also do it yourself. From the several credit lines you have, choose the one that offered the lowest interest rate or better the one that have zero interest rate at all. Remember, low interest rate is different from low monthly payment. Then, transfer all your balances to that account.

Above all, be a wise customer. Think and weigh the options first before leaping into big decisions. Always consider, whether the amount you think you are going to save will be a higher compared to the numeration you are about to spend. Read always the terms and conditions as well as the policies in every transaction you want to go in. Transfer balance fees, late payments and annual fees should be given attentions as well.

In order for you not to end up in bankruptcy, a lot of guidelines have been suggested. Surely, managing your spending will be on top of the rank. How you go about with your expenditures is the main reason why your remuneration cannot suffice the credit anymore. Spend what is within your means. Another would be downsizing your credit cards into two. This is ideally the maximum figure when having the plastic money. In this way your financial responsibility will be easier to consolidate.

Credit card consolidation surely is a big help for those who have difficulty managing their finances. Aside from the fact it offered benefits that surely free those in financial constraints. On the other hand, it is always on your hands on how you go about with your consumption, on whatever form it might be. At the end of the day, a good management of resources is solely your responsibility.

What is leasing?

Leasing offers you access to a brand new car in return for low, fixed monthly payments over a defined contract period. You only ever pay a portion of the car's value whilst you use the vehicle.

At the end of the lease, you either hand the car back or buy-out the lease.

What is financing?

When you buy a car on finance, you pay the full purchase price, plus interest over the term of the loan agreement. You may have to produce an initial lump sum payment, but the majority of the amount, including taxes, will be rolled up into the loan. You make payments based on the interest rate determined by your loan provider. When the loan payments are complete, the car is yours.

So, what's best for you?

It comes down to a number of things, so let's look at the pros and cons to make things a little clearer.

The benefits of leasing

Monthly lease payments are generally cheaper than loan payments. There is little or no down payment required and the monthly costs can sometimes often cover maintenance and servicing too.

At the end of your lease agreement, hand in your old vehicle and drive away a brand new car with a new lease contract. Leasing can certainly seem an attractive option, but it's not always that simple.

The downside to leasing

All lease contracts come with a mileage cap. Creep over that limit and expect hefty charges for those additional miles. There are also extra charges for excessive wear and tear, so you need to keep your car in good shape to avoid any costly extras.

Leased cars are generally subject to higher insurance rates too. Coverage may include GAP insurance which is needed to pay off what is still owed on the lease if the car is written off or stolen.

Ask yourself whether your current financial situation is likely to change. If you need to end your contract early or you're considering an early buy out, you will face steep penalties.

Early buy outs are complicated. The price is made up of what you still owe and the car's lease-end residual value based on the initial lease agreement. Lease-end buy outs are a little more clear cut. If you intend to keep the car long-term and the residual value is favourable, then buying outright via a financing agreement can be a cost effective option.

The pros and cons of financing

The main pull of financing a car is that you will one day own it outright.

If you want to escape the tie of mileage caps, wear and tear policies and buy-out penalties then financing could be for you, particularly if your lifestyle is changeable.

The downside hits when you come to sell or trade-in your car. As you know, new cars depreciate much faster than second hand vehicles. Financing and reselling on a regular basis could get costly.

And so; to buy or lease?

Ultimately, lifestyle is a huge factor. If you like the idea of a new car every 2-3 years and you don't mind the contractual tie, then car leasing can offer access to low-mileage used cars or even brand-new vehicles at relatively low costs.

If you're thinking longer term and you like the idea of owning your own car and enjoying a future free from monthly payments, then financing may be the right choice for you.

Standby letter of credit (SBLC) funding or the monetizing of bank instruments including Bonds, SBLC's, BG's, LC's or SKR's to fund projects are on the rise. While lending from traditional institutions has virtually come to a production stand still, the monetizing of instruments is on the rise; and for good reason.

SBLC funding or the monetizing of bank instruments is very popular because there are no traditional credit requirements, asset requirements or down payments associated with conventional funding or lending. However, there are very strict requirements in the approval process which includes a favorable compliance report associated with Homeland Security and International Money Laundering Laws.

The process of monetizing bank instruments involves converting a secured instrument, usually backed by a cash, secured account or secured asset, into something legal tender. Many times, the secured or cash backed account or asset is held in a trust or another account in which the holder is unable to retrieve additional funds per the agreement of the account.

Why monetize? As an example, in the economic security of the market 5 years ago, hospitality financing was a very tedious and difficult industry to finance, but still attainable. Today, hospitality financing is almost impossible for those who are seeking new purchases, refinancing, remodeling or construction. If you currently own a hospitality property, the chances of getting funding are greater but depend on performance spanning over a 3 to 5 year period. SBLC funding for hospitality projects or monetizing an instrument can be the solution as there are no performance requirements; the performance is based on the guarantee of the instrument and not the property.

This also stands true for residential developments that are in the mid-stages of construction and halted by the inability to continue to draw on previously arranged credit lines. Commercial developments will also benefit by this method of funding as there are no "anchor" requirements or tenant rolls to supply. Alternative energy project financing are particularly viable for sblc funding or via monetizing a bank instrument. These overcome traditional funding sources tangible asset requirements.

The list is endless as to the uses of the funds for projects and developments. For example, monetizing can also be a viable solution to community economic development, housing and employment creation as well as debt consolidation for corporations and companies.

A few words of warning to those seeking bank instrument providers and monetizing companies. Fraud in this industry is on the rise. The instruments should be issued by Top 25 World Banks. Leased instruments can be monetized but it takes the expressed written permission of the holder of the instrument and of the issuing bank, stating the agreement between all parties and the expressed knowledge of the intention of using the instrument. There should also be a contract issued to the customer after approval, outlining the terms and conditions of instruments and monetizing.

Finally, fees should be deducted from the proceeds when monetizing so there are no upfront costs to you. Arranging instruments usually results in escrowed fees or when internationally arranged, an MT 103/23 will suffice. When all elements are in place, monetizing your instrument should be a safe alternative to conventional type financing.

In the last article we showed you how to explore the order of the various segments, of programming on network news, and in the media in general. We discussed examining the narrative, (the segment as presented) and how we could find the underlying narrative, (the covert story or point of view) from which each program was presented. We made suggestions on how we could observe one news program, make notes and look for patterns, and then move on to doing the same thing for more and more programs over a long period of time.

If you have been doing this for a week or two, you may be discovering that there is a box when it comes to reporting journalistic stories. Each station and show has some parameters, or limits that they won't go beyond. There are certain things that the news won't touch because of its basic nature, which is the fact that it has to be funded, or owned by people with their own agendas and beliefs about the way the world is and should be. Some things that the news will never comment on negatively because of the power of its corporate sponsors and associates, advertisers, and government pressure are:

1. Losses incurred by corporate tax breaks

2. Control of the media by a minority of individuals

3. Institutional discrimination

4. War policies to promote global corporate trade

5. The benefits of any economy antithetical to the goodness of pure capitalism,

These are just a few things. Please take the time to see if you can think of anymore for yourself. Unfortunately, most journalists and broadcasters cannot present these subjects in detail, because they think that conveying these facts would be in opposition to the interests of their sponsors. Enough of their sponsors think so too and often moved apply financial pressure on the news business, if they are so moved. In truth, since the news is owned by national corporations, funded by advertisers, and the employees are paid by the funding from the organizations, there is just so much they can say without being replaced by someone with the right opinions. None-the-less, some journalists still try to present a balanced objective report, with just a little bit of the progressive view, instead of the liberal view. Unfortunately many of them are on the far right, working in the parameters allowed by corporations and advertisers. They seem progressive, but in reality they are just pitching news stories from a very hierarchical corporate capitalist view. Which includes putting down liberal thinkers, intellectuals, and social activists. You can find many such people on Fox News.

Keeping the allowable parameters for journalists and broadcasters in mind, look at some of these programs again. Really pay attention to what the Spin Doctors or PR people are saying. Listen closely to the interview and how they answer questions. Notice how they support the opinion of their boss fully and completely with no doubts. See what type of technique they use. Are the brisk and somewhat perturbed that someone would dare ask such stupid question, or doubt them? Are they joyful, smiling a lot, while stabbing and jousting with another person on the program whom has a different opinion? Do all the people on the program disagree, but agree with the one underlying idea presented that falls in line with the underlying narrative, or corporate interests?

If you can develop your observation skills when it comes to looking at the Spin Doctors and learn how they really work, you will arrive at a place where you can almost guess what the person is going to say before the first word comes out of their mouth. As soon as they are introduced, depending on what organization they represent, you can just about, word for word, predict their opinions. And then understanding whether a news program is giving good news or not will depend not on the story, but how many people from various organizations with differing opinions are allowed to present their ideas. This all comes back to having access to the media.

Jefferson and the founding fathers of the U.S., wanted as many people as possible to have access to reading and writing, as much print media as possible. They didn't think that it would be possible to have a real democracy without it. They must be rolling over in their graves now. For the first time in U.S. history only six corporations, one with a board made up from people of the other five, own control of more that ninety-eight percent of all of the TV, print, and radio media. They are the ones who give access or deny it, to those who can afford to take advantage of it by either paying ridiculous fees, or pushing forward the ideas that help increase the bottom line of these corporations. Watching the news is still helpful though, when one learns to read between the lines. As you put together your own journal and do a bit of historical background checks, you will be able to understand the real news by what is not there. This is the plan that we will discuss in our next article.

In numerous cases, credit card companies issue cards to customers who may be deemed, risky. In many cases they do so at a higher interest rate. Some of these cards still have annual fee's and additional charges. Now, granted, customers should avoid these cards. However, some customers who want a credit card, will do what they have to in order to get one. So begins the snowball effect.

A customer, who probably could not afford a credit card at those terms in the first place, proceeds to max out the card, get immediately behind on their payments, the fee's begin to build, and that snowball continues to roll down the hill that did not have to be. Again, it is a shared responsibility. The credit card companies have to be aware of their risks and not issue credit cards for profit potential only. On the other hand, customers who take on credit cards, must accept the responsibility of owning up to their financial obligations.

There was once a time in our society where credit revolved around a simple hand shake. Those times have long since faded into obscurity. Why? For one thing, a hand shake was based on honor during a time when someone's "honor" actually used to mean something. Your hand shake was your bond, the reflection of you as someone who could be trusted. This was a reputation that was not taken lightly. Of course, honor does still exist, but it just seems to mean more to some than others. There are instances of course, where hard times just get the best of you and it has nothing at all to do with your honor- just your financial situation!

You end up taking on too much, and then you get buried in an ocean of credit related debt that continues to grow as you find it difficult to keep up with your payments. There is hope, though, and all does not have to be lost. You can still save your honor! You can climb out of the hole that you are in. Don't give up the ship without a good fight.

Here is how to take responsibility for your credit cards:

If you are going to take on credit cards, you should be prepared to take responsibility for them. Until you can get your financial situation under better control, at least make an effort to make the minimum payment due, before it's due. This will avoid the addition of late fees or increased interest rates that are often the result of a late payment to a credit card company.

Do not depend on your credit card as a bail out. Use it responsively. Call your credit card company and ask to have your interest rate lowered. Many times it will be in the credit card companies best interest to lower the rate, rather than simply inherit a delinquent account. Organize your finances. Know what you have coming in and what you owe out on a monthly basis. Take responsibility for your credit cards and they will take care of you by giving you access to credit when you need it.

The stock market has the Dow Jones Industrial Average, the S&P 500 and many sector indexes. Commodities have many indexes. Bonds have the Merrill Lynch Domestic Master.

How can we really track the performance of the many thousands of houses listed and sold (or not sold) in the United States.

Although we learned in 2007 and 2008 that, for the first time, we could have national real estate bubble in response to national real estate industry trends, home sales are still local.

Multiple listing services have the prices for local homes whether in Smalltown Wyoming or Manhattan New York City. Plus, a fair number of houses are sold by owner.

And although real estate agents can "compare" houses, they are different. Two houses in the same neighborhood may sell for the same price. The first one has an extra bathroom. But the other one has a bigger swimming pool. The first has a home theater. But the other one is in a quieter location. The first one had a more experienced real estate agent handling the sale. And so on.

The number of factors affecting a house's final sale price are numerous and only the obvious ones are quantifiable.

However, two indexes have a go at it.

The Federal Housing Finance Agency (FHFA) puts out the Housing Price Index (HPI).

This index began with the Office of Federal Housing Enterprise Oversight (OFHEO) in the fourth quarter of 1995. But the OFHEO has been merged with Federal Housing Finance Board (FHFB) and the U.S. Department of Housing and Urban Development (HUD) government-sponsored enterprise (GSE) mission team to create FHFA. FHFA regulates Fannie Mae, Freddie Mac and the twelve Federal Home Loan Banks.

The Housing Price Index is weighted, seasonally adjusted and purchase-only. It's calculated using sales price information from Fannie Mae and Freddie Mac conforming, conventional loans on single-family properties. This is about forty percent of U.S. mortgages.

(Therefore, it's not a good guide for determining what's happening in the luxury home market where prices are higher than the conforming loan limit.)

It's based on over five million repeat sales transactions. And it's compared with data collected by Fannie Mae and Freddie Mac since 1975. It divides the United States into Metropolitan Statistical Areas (MSA) and Metropolitan Divisions (MD) as defined by the Office of Management and Budget. It covers all nine census divisions, all fifty states and the District of Columbia and all MSAs except Puerto Rico.

The S&P Case-Shiller Index National Composite Index underlie futures contracts at the Chicago Mercantile Exchange. It's based on a three-month rolling average of repeat sales in twenty metropolitan areas. It uses information obtained from county assessor and recorder records. But by focusing on large metropolitan areas, it captures 75% of home sales by dollar-volume. It also employs measuring repeat sales.

Fiserv Inc., a provider of IT services, is the calculation agent for the S&P/Case-Shiller indices. It goes back to 1987.

Both indexes no doubt provide a good approximation of the entire U.S. home market. However, those of us living in areas outside the twenty areas measured by S&P Case-Shiller should not depend on that to understand what's going on in our local markets.

Common sense financing, fast approvals and flexibility that makes perfect sense for your firm - that's why when you want to lease business equipment a leasing company is your best choice for business leasing financing.

If we were to ask you to name ten quick benefits of any type of business financing in Canada we quite frankly cant imaging you would name any other type of finance other then leasing. Just think about it.

Ten, yes ten solid reasons to consider a leasing company for your right choice of asset finance. Let's recap them: technological obsolescence protection, accounting benefits, cash flow management, potential tax savings, the right to own or not own the asset at the end of the lease, convenience, ability to match the asset financing to its useful economic life, quick credit approval ( boy do we like that one!) and finally often a lower cost and cash outflow.

Whew! That was a mouthful of reasons. Let's circle back on one of those benefits, the issue of a prompt credit approval.

Canadian business financing got really challenging in the last couple years. Traditional financial institutions that funded equipment such as banks and insurance companies quite frankly simply stopped funding your business leasing needs. The leasing company you probably worked with also borrows, just in case you didn't realize it. Somehow we all survived and as we head into 2011 the equipment financing industry is on a pretty good roll.

We keep coming back to flexibility when clients ask us about what the best choice options are in business leasing. Always remember that when you choose to finance an asset you can enter into a lease to own scenario, aka a 'capital lease ', or, continuing on our theme of flexibility, you can opt for an operating lease - which simply states your desire to use an asset, not own it. Equipment that depreciates quickly, needs to be replaced due to technology, etc, is the perfect choice for an operating lease option.

Asset financing from your business comes out of very different needs - it might be a photocopier for the office, (or computers), equipment for your shop floor, and, even a commercial jet for your corporate meetings! (Well, we can dream, cant we?!). Our point is simply that any type of asset can be leased, and often bundled in with other ancillary services such as installation, maintenance, warranty, etc. Again, there's our flexibility again.

Do you have a personal business relationship with the hundreds of lease companies in Canada? If you do we're jealous, and you obviously have a lot of time on your hands. If you don't, speak to a trusted, credible and experienced Canadian business financing advisor who can ensure those many benefits of business leasing can be matched with the leasing company that suits your needs.

A lifetime of hard work should leave you with a nice amount of money to retire with. Still, financially responsible individuals have to worry about how long their money might last. A lifetime of work should leave enough for a couple to do whatever they want in their elderly years. The prospect of having your money run out before you do is scary and for some people, it's a reality. How can you make sure that this doesn't happen to you? It's all about remembering to take some measures to accommodate for life after work.

Luckily for you, there are lots of different options when it comes to saving for retirement. Everyone knows all about the Social Security dollars that have been taken out of your check since you were working at a restaurant in college, but there are some better methods to go along with that. Since the Social Security system might be in trouble in the coming years, you have to take different strategies to make sure there is enough to go around.

Many people like to look into the very safe and dependable methods like mutual funds and low risk stock investments. If you want to be a little bit more dangerous and look for a more dynamic option, you might consider certain annuity plans which are protected from taxes by the government. Speaking of the government, they have also created retirement investment plans to help people save for that occurrence. IRA and 401 (k) savings accounts are offered by most employers. The fact is that with good planning, you can watch your hard earned money grow, though there is no quick fix in this business. If you are looking to get rich quickly, the lottery might be more of your thing.

The best way to make sure that you have enough money when retirement rolls around is to take an active roll in your own future. What does this mean? It means that you can't just hope that you save enough money. You have to plan and make sure that you follow through on that plan in order to have a nice bit of money to rely on. The key is to make sure that you save a set amount of money each year towards retirement. A good number for this is $3,500. That money can't just sit around, though. You have to make sure that it is earning money while just sitting there. You have to use that money to fund money market accounts, high yield savings accounts, and similar low risk investment accounts. If you save that amount of money for 40 years at an interest rate of around 7.5%, you will find that you have more than enough money to help you through retirement time. Compound interest is one of the true wonders of the world. As your money grows, it will begin to grow faster and faster.

Saving for retirement is all about planning and being faithful to that plan. There is no reason why you should have to struggle in your elderly years. Instead, you should take advantage of all of the different programs that the government has to offer in order to make your money do all of the work.

In the big world of investing, it seems we hear a lot about what securities to invest in, but not as much about what types of accounts to invest in. There are so many different types of investment accounts, each covering a different purpose, and new types of accounts seem to be created weekly. What are some of the basic types of investment accounts and what can they do for you? This article covers some of the accounts that are available currently and why you would use each one.

Retirement Accounts

IRA stands for Individual Retirement Account. An IRA is meant for those who do not have access to employer sponsored retirement plans such as 401(k) plans or those who would like to contribute more than the maximum allowed by their employer plans. Why choose an IRA? Tax-deferred growth is the answer. With a standard savings account, you have to pay taxes on the interest or earnings that the account makes each year. An IRA, on the other hand, doesn't require you to pay taxes until the money is taken out in retirement, thus leaving more money in the account to grow each year. In many instances you can also deduct your IRA contributions on your taxes, giving you further tax savings. It seems like a small thing especially when the account balance is still small, but over time it makes a big difference. Investing $10,000 for 30 years in a regular savings account with a 28% tax bracket and a 6% average growth rate will give you $35,565 whereas that same amount put into a tax-deferred account will give you $57,435. Eventually, however, you do have to pay taxes on the earnings in your IRA, but you are still left with $44,153 after taxes are paid. Your net gain for tax-deferred growth is just over $8500.

Another individual plan is a Roth IRA. It is somewhat similar to a traditional IRA but the difference is that you cannot deduct the contributions and the earnings grow tax-free instead of tax-deferred. This type of plan is good for someone with a longer timeframe to invest or those whose tax bracket in retirement will be close to or higher than their current tax rate. Tax-free growth means that you don't have to pay taxes on any of the earnings in the account. If we start with $10,000 and invest it for 30 years at 6% growth like our example above, you would be left with $57,435. None of that money has to have taxes paid on it since the initial $10,000 already had taxes taken out and the earnings grew tax-free. Before you wonder why anyone would not automatically use a Roth IRA, consider the fact that the initial $10,000 investment wasn't tax deductible like it was for the traditional IRA above. With a 28% tax bracket, the Roth paid $2,800 on its initial $10,000 investment. If we look at the growth potential of $2,800 for 30 years in a tax-deferred account, it grows to $16,082. So, in this person's situation where their tax bracket is the same in retirement as it is while working with a 6% rate of growth, a Roth wouldn't be the best option. The Roth would only grow to $57,435 - $16,082 = $41,353 when all taxes are taken into consideration while the traditional IRA would grow to $44,153. There are several online calculators that can estimate which type of IRA would be to your advantage. Search under Roth vs. Traditional IRA for more information and calculators to determine the best account for you.

In addition to individual plans there are also employer-sponsored plans. SEP IRA, SIMPLE IRA and Keogh plans are in between Traditional Individual Retirement Accounts and the standard employer sponsored plans such as 401(k)'s. SEP's, SIMPLE's and Keogh's are for self employed individuals or small companies that need to put aside more money than a standard IRA allows but aren't large enough to warrant the expense of a 401(k) plan. Each plan allows both employee and employer contributions. Each has set maximums between $6,000 and $30,000, depending on the plan and the contributor, and each has tax incentives for both the employer and the employee. These plans are great for small businesses to be able to set aside money for themselves and their employees and not have to go through the time and expense of larger employer sponsored plans.

The last type of retirement plans are employer sponsored plans. When it comes to retirement, it seems everyone knows the term 401(k). This is because a 401(k) is the retirement plan of choice for medium and large companies. In 2006, the maximum contribution to a 401(k) is $15,000. If you are over fifty and your employer offers the 401(k) "catch-up" contribution, you can contribute up to $5,000 more, so $20,000 total. Your employer may also contribute to your 401(k) plan which generally doesn't decrease your contribution allowance. Originally, 401(k) plans were only offered to for-profit companies. Those who worked for non-profit companies such as charities, schools, universities and hospitals weren't able to contribute to 401(k) plans but were able to open 403(b) plans which allowed most of the same contribution limits as a 401(k). Government or public employees often used 457(b) plans for their contributions and for highly compensated employees there are 457(f) plans. This eventually changed to where 401(k) plans are now available to non-profit companies so more and more of the non-profit sector are opening 401(k) plans for their employees. Taxes on these types of plan can vary from one plan to another, so it is best to consult your plan director or talk with the investment company that manages your employers plan.

Education Savings Plans

Education plans have become available in the past decade allowing parents to better save for their children's education. Instead of trying to set money aside in taxable savings accounts, parents can now setup an education savings account that has various tax advantages depending upon the type of account used. Choosing an education savings account depends upon what your long-term goals are for the money. There are three basic types of education savings accounts, IRC section 529 plans, the Coverdell Education Savings Account (CESA) and the Uniform Gift to Minors Account (UGMA). Each plan is tailored a little differently when it comes to its tax advantages and who gets the money from each plan, but each has the same general purpose, to save for your children or grandchildren's future.

Medical Savings Accounts

There are three different types of accounts to help you save for healthcare costs, Flexible Spending Accounts (FSA), Health Reimbursement Arrangements (HRA) and Health Savings Accounts (HSA). The first of these, Flexible Spending Accounts are also called section 125 plans or "cafeteria plans." This plan allows participants to put pre-tax money into the account each year to cover health insurance deductibles, co-payments, dental care and other medical expenses. Cafeteria plan money cannot accumulate from year to year, however, so it needs to be used up in one year or it will be gone. The second type of medical savings account is a Health Reimbursement Arrangement. It is similar to an FSA but the employer contributes to the account instead of the employee.

The employer can make contributions contingent on an employee participating in designated health and wellness programs. In June 2002 it was updated to allow funds to rollover from year to year, but it cannot be rolled over from employer to employer so if you change employers, you loose the accrued benefit. The last and most recently created plan is a Health Savings Account. This plan enables employees with high-deductible health insurance plans to set aside and invest money to use to pay the deductibles or other healthcare costs in the future.

These plans are designed to put healthcare decisions more into the hands of the employees. These plans are also portable so they move with you when you change employers and they can be rolled over from year to year.

Other Accounts

For those who are just looking to invest, a brokerage account is the medium to use. Brokerage accounts are setup through investment companies to allow you to purchase securities such as stocks, bonds, mutual funds, money markets, options, etc. Generally the money sits in a "core" account such as a money market until you are ready to invest it in other securities. There are fees for purchasing many securities which vary depending on the company that the account is setup with. Brokerage accounts can also offer check writing, debit and ATM cards for easier access to money in the account. Since there are no tax-advantages of a brokerage account, money can be withdrawn at any time from the core account. These accounts are perfect for additional savings that you want to invest in the stock market.

The standard savings account is probably what everyone is most familiar with. Offered by any bank, a savings account allows you to set money aside and receive a variable or fixed interest rate depending upon the account. Savings accounts are very liquid and can be withdrawn at any time, but they don't allow check writing capabilities. Most savings accounts now days do offer ATM cards. Certificates of Deposit or CD's are types of savings accounts that require money to be left in for a certain period of time in exchange for a slightly higher interest rate, these accounts are less liquid and there is generally a fee to take the money out before the predetermined period of time.

Whatever the reason or account used to set aside money, it is always a good thing. Savings in any form creates a more secure financial future and allows for problems or emergencies to be taken care of without having to obtain loans or dip into less liquid savings such as a home or other physical assets. Opening up any of the above types of accounts gets you started on the right track towards savings.

Copyright 2006 Emma Snow

South Carolina is currently offering a great pre-owned value on a 2007 Volkswagen Jetta. This black, five-speed Jetta seats five and is available for just $12,995. Monthly payments would run about $257 at 6.5% for 60 installments. It's economical to drive, too, getting 22 MPG in the city and 30 MPG on the highway. The spunky car features body-colored bumpers and mirrors with an immaculate sporty interior.

Technical analysis:

The Jetta has a 2.5-liter capacity engine with cylinder configuration of I-5 with 20 variable control valves. The five-speed manual transmission engine has 150 hp at 5000 RPM. This front-wheel drive car has a 15-gallon fuel tank. It is equipped with a speed-sensing steering wheel and for the safety of passengers it is also equipped with anti roll bars both in the front and in the rear.

Other features:

The sound system includes a CD player, FM/AM radio, and MP3 capability with eight speakers offering full sound throughout the cab. Front bucket seat with armrest and split folding rear seat have been ergonomically designed for the comfort of the occupants. For the convenience of the occupants, door bins have been provided. Vanity mirrors for the driver and the passengers are also available in this car. For smooth driving, a tilting telescopic steering wheel is installed. Illuminated entry provided in this car is very helpful during nighttime. Air conditioning and front reading lights are also available which adds to the convenience of the occupants.

The intermittent variable wiper and rear window defroster, ABS brakes, brake assist, panic alarm and four-wheel disc brakes help increase safety and comfort in the Jetta. The car is also equipped with turn signal indicator mirrors, halogen head lamps, impressive, clear meter panel, tire pressure warning indicator and an outside temperature indicator.

The 2007 Volkswagen Jetta Sedan has ample legroom with 35.4" in the rear and 41.2" in the front. There is rear headroom of 37.2" and front headroom of 38.5".

Looking forward to being the proud new owner of a used car? Kind of an oxymoron, but still, buying a used car can be just as exciting as buying new. Why is this? I am sure you have heard how significantly the value of an automobile drops the minute you drive it off the lot. Although buying a new car does have its benefits, buying a used car can be just as advantageous to customers. Additionally, finance options are just as available for used cars as they are for new.

When people buy a car a solid majority of them have to finance the car. This means you take a loan out for the price of the vehicle, and then pay monthly plus interest for a certain amount of months. The amount of months can range from 24 all the way up to 72 months usually. If you are looking for the lowest payment possible you would want to extend your loan out as many months as you can. One stipulation though is the longer the loans term the higher your interest rate might be.

The beauty about auto financing is that you can have any used car financed. It doesn't technically matter how old or new it is. You will often see though that the newer the car the lower the interest rate will be. The main thing that fluctuates for an auto loan is the interest rate. Many other factors usually stay the same.

To get the loan process started you will have to submit a credit application. This will either come back approved and denied. If you are approved, you will be notified to what extent and you will be told what interest rates you qualify for. If you have been denied at some car dealerships because of your credit, do not let this get you down. All dealerships use different means of financing so you should continue the search in finding a dealership that will help out your situation.

Other variables to consider when shopping for a used car include the amount of money you plan on putting down and if you have a car you need to trade in. The down payment will help lower your monthly payments and can get you a better interest rate with your financing. A trade in can either help you or hurt you. If you owe more money on your current car than the dealership will give you, that amount owed will be rolled into your next car loan. If you do not owe anything on your trade in, you can use that money towards a down payment or to put into your pocket, making it a perfect scenario when shopping for a used car.

Today, more small business CEO's who have been hit with financial challenges are applying personal finance basics to the business arena. Here are five money management habits to apply in business and personal finance.

Don't Overextend Finances

In business this can show up in the form of excess inventory, high labor costs, and assets that are not being utilized for good returns. Small business owners may find hidden costs by reviewing bank statements regularly and monitoring investment portfolios for those that are doing poorly.

Know the Breaking Point

The breaking point is where you begin to veer off course. For some this means a constantly overdrawn bank balance or others experience creditor harassment. Instead of paying down debt, you might avoiding making payments until more money arrives. Other signs to watch are a high debt-to-income ratio, consistent business losses, and warnings from your money manager that its time to increase income or forego the lifestyle you desire.

Identify Your Money Personality

In order to manage money well, it's best to have an idea of what works best for you. This starts with being aware of your unique attitudes, thoughts, and behaviors toward money. For example, some people have the discipline to manage finances responsibly while others tend to fall off the deep end of the spectrum requiring constant monitoring and accountability to keep them in check. Then there are people who are responsible but fall off from time to time. Your behavior may be someplace in between.

Get Competent People to Help Manage Finances

There are many ways to get help with money. To start, seek the assistance of an accountant or money manager, who will prepare forecasts of cash flows. Financial advisors are another source because they provide investment advice to keep liquid cash working to build wealth. Additionally, if you are comfortable with keeping watch over your money on your own, consider financial tools that simplify the process. Some resources to help manage and reach your financial goals are ING Financial Services and Microsoft Money.

Analyze Your Investments

Pay attention to where and how well money is performing. Ask questions to help you understand the financial side of business. What type of investments do you have? What returns are they bringing you? How much have you gained/loss so far? At what point will you get out?

When you really think about it, although the language in business and personal finance is different, the basics are pretty much the same. Which of these strategies will you put in action?