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The Stock Market – The Second Biggest Financial Scam of the Twentieth Century, Part 2 of 2

Posted on September 21, 2018 by

In steps the Stock Market, promising higher returns than stodgy old bonds, and money market accounts; hence, the stock market became the destination of choice for retirement savings and Wall Street responded by increasing the offers to retail consumers through Mutual Funds. Before the year 2000 it was not uncommon to hear that the S & P returned 16% over the previous 10 years. Looking at the returns of one of the best known indexed mutual funds, the Vanguard 500, returns since its 1976 inception are 11.75%, impressive until you look at the 1 year return, -2.41%, the 5 year return, 11.89% and the 10 year return 5.06%. These are average returns not real returns. As an example let's look at the growth of 1 dollar in the mythical High Fly Fund. High Fly posts a 50% gain in one year and your dollar grows to $ 1.50. The next year it posts a 25% loss, now your investment is worth $ 1.125. The average return for High Fly reported by the mutual company is 12.5%, but that is not your actual return. Your actual return or compound annual growth rate (CAGR) is in the vicinity of 6% per year worse if you factor in inflation.

Is 6% acceptable given the risk that investors take on by investing in the stock market? David F. Swenson, CIO of the Yale Endowment explains investor risk in his book, Unconventional Success, when he states: "Because equity owners get paid after corporations satisfy all other claimants, equity ownership represents a residual interest. position than, say, corporate lenders who enjoy a superior position in a company's capital structure. " He goes on to say "the 5.0 percentage point difference between stock and bond returns represents the historical risk premium, defined as the return to equity holders for accepting risk above the level inherent in bond investments." Mr. Swenson's comments and calculations of the risk premium were based on a compound annual return of 10.4% in the stock market compared with 5% bond yields. 10.4% -5% equals a risk premium of 5.4%. Unfortunately I have yet to find a calculation of CAGR (compound annual growth rate) that matches Mr. Swenson's. I found many examples of average returns that match the 10.4% average growth rate but not the CAGR. The reason that this is important is that all other savings vehicles are quoted by the CAGR. Your savings accounts, bonds and money market account are all quoted by the CAGR or its equivalent, the annual percentage yield (APY). In order to determine where to allocate your funds, you must compare apples to apples not apples to oranges. As you may guess the CAGR for the stock market is lower.

A quick look at the CAGR calculator for the stock market on moneychimp.com shows the average return from January 1, 1975 to December 31, 2007 to be 9.71%. You only realized that return if you were invested in the market the entire time. What if you began investing …

The Social Responsibility of Hip-Hop

Posted on September 20, 2018 by

Hip-Hop is no longer limited to rap music and break dancing; today it represents a multi-billion dollar industry that influences everything from fashion to prime- time television programming, professional sports, mass media marketing and advertising. Today Hip-Hop is becoming a way of life, a culture that is intricately woven into every aspect of young people’s daily lives.

Artists like Talib Kweli, Mos Def, Public Enemy, 2Pac (to some extent right?) and many more use hip hop to describe the social inequities of the Black community and the inner city. They are putting a very human feel to issues that are calloused by misinterpretation and exoticism and sensationalization. Artists like 50 Cent and the genre of ‘gangsta rap’ have become extremely popular in America today, in part because of corporate manipulation and the large, multiracial audience that now exists for hip-hop music.

Hip-hop is an expression of the social, political and economic problems associated with living in urban areas. Since African-Americans are the dominate group in urban centers, their influence is the largest on urban music. Hip-hop lyrics, with their emphasis on “keepin’ it real” and marked by a colossal indifference to mainstream taste, became an equally powerful influence on young black men. These two influences have created a brand-new, brand-name generation that refuses to assimilate but is nonetheless an important part of mainstream American culture.

Legendary hip hop icon Darryl “DMC” McDaniels, of the pioneering hip hop group RunDMC, told a crowd recently that what they see on television in music videos is “show business” and not a true reflection of what hip hop represents. “The whole purpose of hip hop is to inspire, to motivate and to educate. It is the transfer of information whether you are in the ghetto or Beverly Hills. Hip hop is about the life we live-especially for Black people,” DMC said. “Hip hop was created to make it known that we as a people are in charge of our purpose and our destiny. The true purpose of hip hop was not just to create rappers,” he added.

Rapping developed both inside and outside of hip hop culture, and began with the street parties thrown in the Bronx neighborhood of New York in the 1970s by Kool Herc and others. Rap, graffiti, spoken word are all part of hip-hop. There, of course, is much more that is hip-hop, but you wouldn’t know it through playing video games that are based on hip-hop.

TJ Crawford, founder and executive producer of the MPR Report, a radio talk show airing weekly on WVON 1690 AM, has said, “It’s beyond just hip hop, it’s beyond just a generation, This is about people who want better for their people and recognize the power that is in the music. People who move in that same type of spirit are trying to see who they can connect with to take it to that next level.”

Opportunities are few outside of the ghettos; therefore, their language focuses on their world. Instant gratification reflects …

Risks That Small Businesses Face

Posted on September 19, 2018 by

Every business faces a certain degree of risk; some of them can be controlled if appropriate action is taken to do so where as some are highly unpredictable and uncontrollable. Even when every aspect of the business is carefully considered and carefully planned and executed, a business could still face closure due to some factor that was beyond its control such as fire, tornado, tsunami, hurricanes, earthquakes, floods etc. When you carefully identify the risks that your business faces and take action accordingly to counter the risk, the business will certainly be successful.

Types of Risk for Small Businesses:

Some of the risks that small businesses face are overhead cost, cost of equipment, expected sales volume, salary cost, taxes, price charged for service or product, competitor's actions, the local economy, changing trends, risk that the product may become obsolete. Other risks include damages from fire, water, natural calamities, intentally inflated damages, loss of data and property due to theft, machine breakdown forcing work to come to a standstill, cash flow problems that may force a business to close.

Every sector has its set of risks and the responsibility of the owner is to identify study and counter these risk factors. Loss of records due to fire or other such risks will make it impossible to determine the financial transaction details such as who has to pay or who has to be paid, making it impossible to bill or collect from customers.

Failure to obtain all necessary licenses and permits may be a risk that could close the business. Employees that may embezzle, liability losses, public liability, liability to employees, business could temporarily close due to ill health of its owner or due to his death, when a key employee who was feasible is unable to continue etc. are some other risks that may hinder small business from functioning normally. When cash flow forecasts are inaccurate, the business runs the risk of taking bad decisions that could have been foreseen such as applying for a large amount of loan that the business can not really afford. Selecting unqualified personnel as key employees, disgruntled employees can be a risk too, as they can take a business to the cleaners suing the company no matter if they are right or wrong etc. are other types of risks for small businesses.

Insurance:

When you consider insuring your business, your agent would have identified all insurable risks and would have advised you to take certain precautions to counter / prevent them. However, the types of risks for small businesses vary according to the nature of the business, since the owner should himself, also make an effort to identify the risks and effect good risk management techniques.
Several firms offer their service as well as products that help in running a business easily. …

SBA Loans Changes – Owner Occupied Government Sponsored Commercial Real Estate Loans

Posted on September 18, 2018 by

This new debt refinancing authority will allow expanding small businesses to structure qualified existing debt as part of new 504 loans. This will enable small business owners to free up critical capital to expand their businesses and create jobs.

The interim final rule is effective as of the date of publication – June 23 – and is a permanent change to the 504 program. A copy of the Federal Register Notice is available for download from the SBA main website. Also available for download are SBA Policy Notice 5000-1108 with the changes to SOP 50-10 (5) (A) for debt refinancing and SBA Information Notice 5000-1109 announcing that Version 2009.1 of the Authorization will be released. NADCO is coordinating with SBA to notify you as additional SBA Notices, the updated Authorization Wizard and revised SBA forms are released. Updates will be provided as they become available.

ARRA Debt Refinancing Eligible Project Costs and Program Restrictions

The following list is the conditions that a Project must meet to be eligible for debt refinancing:

1. Debt refinancing is available for 504 loan applications received by SBA on or after June 23, 2009. Those 504 loan applications received or approved prior to June 23, 2009 may be modified to include debt refinancing provided that the debture has not been funded.

2. The 504 Project must include expansion of a small business. "Expansion" is broadly defined to include any project that involves the acquisition, construction or improvement of land, building or equipment for use by the small business.

3. Qualified refinancing – the existing indebtedness to be refinanced may not exceed 50 percent of the Project Costs. The existing debt may consist of one or more loans and may be owed by an Operating Company, an Eligible Passive Company or both. Existing debt may include instruments that will result in transferring ownership of the property to the small business, including land sales contracts, contracts for deed or capital leases (but not operating leases). …

The Sales and Marketing SWOT Analysis

Posted on September 17, 2018 by

The SWOT Analysis, where you evaluate your S trends, W eaknesses, O pportunities, and T heights, is well known in the business planning process. Many companies use this method during strategic planning exercises as a way to form strategies and make decisions on new business ventures or initiatives. It is powerful because it looks at both internal (strengths, weaknesses) and external (opportunities, threats) forces.

As powerful as the SWOT Analysis is for business planning, it is equally powerful in sales and marketing decision-making. By employing this traditional tool to each of your sales and marketing activities, you can take advantage of your strengths, unforgettable new opportunities, minimize your weaknesses, and eliminate your threats in amazing ways. That is, however, only if you can be objective. Otherwise, the exercise falls flat.

While the SWOT Analysis can be applied to decisions about business planning, product development and other strategic decision-making tasks, consider using it for the following two sales and marketing activities:

1. Deciding Marketing Vehicles: Use the SWOT Analysis to evaluate each marketing vehicle in your marketing plan. This will allow you to focus marketing efforts on the vehicles where you have the most advantage or opportunity and the most minimal amount of weakness or threat.

2. Developing Sales Presentation / Proposals: Apply the SWOT Analysis to the development of each of your sales presentations and proposals. Be sure to focus the analysis on evaluating each section based on issues specific to the customer you are pitching.

As you approach your SWOT Analysis, consider the following questions.

Strengths: What advantages does your company / product have that no one else has? What makes you most unique? Focus on those things that make your offer most compelling to a prospect or customer.

Weaknesses: Where can you improve? Where have you made mistakes in the past? What do you not have that other companies / products in your industry have? Focus on those things that most detract from your offer.

Opportunities: What trends lend to your strengths? What is the potential "expansion" potential over time? Opportunities are external factors that represent why your company exists or should / can growth.

Threads: What challenges do you face? What are your competitors doing? What is the overall competitive landscape? Threads are external forces that could impact your success, such as competition, operational capacity, cost of goods increases, etc.

No matter the purpose, using the SWOT analysis can force thought, strategic, and creative thinking. And, when used properly, the SWOT Analysis not only helps you identify your strengths, weaknesses, opportunities, and threats, but it also helps you determine your strategies for addressing each. …

Public Relations – How to Organize a PR Event

Posted on September 16, 2018 by

A PR event can be great for generating free media coverage for your client, but it needs to be properly organized or disaster may ensue. In this article I have set out some tips for ensuring that your PR event achieves all the goals set for it.

Organizing a successful PR event isn’t a complicated matter — you just have to follow a few guidelines in order to ensure that things are arranged as smoothly and effectively as possible by taking the steps described below…

1. Decide on the type of event

The type of event which suits your client will be determined by a number of variables such as his budget, the desired outcome and whether he wants to focus on swift or long-term success. Having discussed these factors with the person you are working for, you can suggest an event which seems most appropriate to his needs. The final decision, of course, rests with the client.

2. Set a suitable date

Whatever kind of event your client decides on, make it clear that all events take time to put together. Ideally, you should set a date at least six months hence for the event, and preferably more. The more time you have to promote the event, the more successful it is likely to be. This isn’t to say that planning an event to take place in six weeks time is impossible, because it isn’t, but it will require considerable effort to ensure that everything is arranged properly in such a short space of time.

3. Make a list of all that needs arranging

Different events require different arrangements. If your client wants to sponsor a sporting event then discussions will need to be entered into with the individual or team in question. If he wants to launch an open competition then decisions as to the type of competition, how it will be promoted and the prizes involved will need to be made. Whatever the kind of event you are asked to work on, make a list of every single thing which needs arranging, from organizing a suitable venue to obtaining any licenses which may be necessary (for example, a performance license or a license to run a lottery).

4. Start promoting the event

When you know exactly what you need to do to get a successful event organized, you can start promoting it. The most cost-effective way to do this is by sending press releases to as many as possible local (or national if the event demands this) newspapers, broadcasters and other relevant organizations. Of course, in addition to using press releases, other promotional methods can be employed if the budget allows. Advertising, direct mailshots and even internet promotion can all be used to good effect for many events.

5. Use your list to set things up

Now that you have started the ball rolling by promoting the event, start working through your list and setting things up. Hire the venue, send out invitations and do whatever else …

Personal Finance Money Management Guide For 2010

Posted on September 15, 2018 by

Saving more than a couple of thousand dollars is not as difficult as it sounds. I am not going to harangue you on "you can do it", or "importance of saving" or "why not saving can kill you before the world ends in 2012." No. Nothing like this. Here are few suggestions on how you can actually save few dollars, if not couple of thousands, next year.

1. Calculate the amount of money you spend buying kitchen paper. It may not be quite substantial, but why waste money on these papers when you can replace them with cloth napkins. Spending even a dollar on disposable papers seems to be a waste. Buy a cloth that can be washed and reused. You can save approximately $ 85 a year.

2. If your family enterprises of you and your spouse, both working, why spend so much on cable. Unplug it and save anywhere round $ 600 per year.

3. Digital camera is everywhere the only device where we use batteries. If you use it a lot, switch to rechargeable batteries. Doing this will save not much, maybe $ 24. But every penny saved in this kind of economy is 3 pennies earned.

4. Why do we need a landline when all the family members own a mobile phone? I have disconnected it and I sometimes use Skype instead of landline, and mobile most of the times.

5. If you are still left with any gold after, after the "sell gold" advertisements, sell it off. Even if it is small gold scraps, sell it. But do not mail it across. It is better to sell it at the neighboring jewelry shop. You can earn some amount here.

6. Chopped and shredded vegetables, cheese, and fruits cost much more than the un-chopped, fresh ones. Instead of spending more, you can get the fresh ones and slice it at home. Doing this for a year can help you to save $ 250. Is not it worth a try?

7. Stop going to the gym and find a way to exercise free of cost. If the only reason you go to gym is losing weight, there are numerous ways to do it without a gym. By doing this you can save as much as $ 420 in a year. Till now, this is the largest contributor to your saving.

8. Get rid of your printer. Okay, may be that's not possible, you can at least promise yourself not to print without necessary. Ink cartridges, color or black & white, can burn a hole in your pocket. I have to replace the cartridge once a year. However, it still costs me around $ 80 to $ 100.

Remember these points while preparing a budget for 2010. These are just 8 examples of saving money. We, together, can come up with probably hundreds of them, and imagine the amount we could save. If you have any such suggestion, please comment and suggest, for me, for all the readers. …

Personal Loans – A Simple and Easy Guide

Posted on September 14, 2018 by

Today, personal loans have become a very popular fund option. A personal loan is simply a loan that is issued to a person for any type of personal reason. There are many different reasons that a person may need money, sometimes on very short notice. Common reasons include: emergency expenses, debt consolidation, automotive purchases, business purposes, and for medical expenses.

There are three different types of personal loans available through lenders today: secured, unsecured, and lines of credit. Secured loans require the borrower to place some form of contractual up in exchange for receiving the funds. For example, if you are going to use your personal loan for the purchase of a new car, you would place the new car up as collateral. This gives the lender a bit of recourse should you default on the loan. The lender would then repossess the car and sell it to recoup their money. Unsecured lines of credit require no collateral at all to obtain. These loans can be a bit harder to get, and often come with strict terms and high interest rates. A line of credit is similar in terms to a credit card, as it allows the borrower to borrow and repay money from an approved, preset, spending limit.

When you find yourself in the situation of needing a bit of extra money, it is always recommended that you contact reputable financial institutions that you know. Unfortunately, especially with the recent economic difficulties, personal loans have become a breeding ground for unscrupulous people who have no intention of providing an honest loan. These people scam innocent borrowers in an already desperate time.

In order to protect yourself, you should be aware of what is required from reputable lenders to begin the loan application process. You will need to have recent pay stubs, w-2s, bank statements, and a credit history that shows your ability to make regular payments on time. If your credit rating is a bit lacking, you may also need a co-signer. The same information will be required from your co-signer as well.

Even though there are three types of personal loans to choose from (as described above), certain loan amounts, or individuals with certain credit ratings, may only be issued funds in a secured fashion. This is to help protect the lender and restrict some of the terms since the loan will be solely for personal use.

When setting out to apply for a personal loan, you should first determine exactly how much money you need to borrow. As temptation as it may be to take extra money, keep in mind this will affect your monthly payments, interest rates, and length of the loan. Opting for an amount that is too high can lead to debt problems or an inability to keep up with payments to repay the loan. Once you have determined the loan amount, take your time and shop around. Compare lenders, terms, fees, and interest rates. Keep in mind the fact that lenders are competitive …

Personal Finance Budgeting

Posted on September 13, 2018 by

Planning a budget for your personal finance is very important to feeling secure and being financially stable especially in the current economic climate. It stands to reason that you should have some kind of monetary stash put away for a rainy day. A lot of people do not look at their personal finance until they get in trouble with credit and debt. At that time, it may be far-reaching and more difficult to get back on track. However, if you aspire to reach financial health, part of the process is to gather all the knowledge you would need to start planning your finances wisely.

Your first step to take is to find out what your exact expenses are for each month. These expenses will include your electric bill, phone bill, car payment, car insurance, credit card bills, mortgage or rent, cable bill, cell phone bill, college loan (if any), and other incidentals. Your incidental bills could include gas for your car, shopping, going out to dinner, nightly entertainment, groceries, and anything else that you consistently spend money on each month. Put all of these bills on a spreadsheet or create a specific journal to make your entries.

The next thing is to match your income against all these expenses and see what you can cut out or limit each month. You have to do this if you want to have some money each month to put aside in a savings account. I am sure you have heard about the concept "pay yourself first." What this means is that you should have a certain amount each week or each month to put aside in a specific account and you should not stray away from this habit. You are not breaking the bank, but steadily gaining momentum with your savings when you put money in each week or month. It will also give you a sense of security and balance. No one knows when disaster will strike, but one thing we know is that it will, so you have to be prepared for the worst.

Take control of your debt. Stop over spending. If you can not pay for something using cash, then this means that you are unable to afford it in the first place. Do not let your credit card put you in bondage. You will forever be a slave to the credit card companies that want to hold you for years to come. Cut up some of the credit cards that you have and only keep one. When you have one, you have fewer options.

Track your spending. Take a little notebook with you to store or keep your receipts and make note of all your spending. You would be surprised that some of your spending is futile and unnecessary when you see it on paper. Before you go to the grocery store each week, write a list and take it with you and do not go to the store when you are hungry. If you follow these two …

Loans for Felons – Cash In On Loans for Felons

Posted on September 12, 2018 by

Are you looking for loans for felons? Many ex felons ask if there are loans for felons that they can apply to after release and the answer is yes. Find out where to look and how to apply for loans for felons.

Sadly, loans for felons are not available to many ex felons. Loans for felons are not necessarily denied to felons because they were incarcerated or because they have criminal records. There are no specific loans for felons; what happens is that many ex felons lose the integrity of their credit reports while they are incarcerated so many financial institution refuse to give loans for felons.

Coupled with the difficulty of finding a job, people with previous felony convictions are unable to start their own business without loans for felons; therefore, any ex felon is doomed to live in really dire economic situation after serving their sentences.

Though there are no specific loans for felons, the assistance that the government provides may be in the form of loans for other concern, which the ex felon can take advantage of. Understand that even though there are no specific loans given to newly released ex felons, there are government programs that are given to various sectors of the society (including people with felony convictions) to get financial help through loans.

An ex felony can apply for such program to get the loans that he really needs.

These programs are funded with hundreds of millions of dollars and any ex felon who wants to their education, get additional trainings or get vocational skills can take advantage to them.

Here are a few of the programs you can apply for:

The Second Chance Act:

The second chance act do not provide direct loans or grants to the ex felon. The funding are given to nonprofit organizations that can help ex felons get trainings, education and a little push to start on their own. Grants to as much as $500,000 can be given to such nonprofit organizations under the administration of the Department of Labor.

Stafford Loans:

Stafford loans are loans that any ex felons can enjoy should they wish to continue with their college education. Stafford loans are not given directly to the ex felons, they are straightaway sent to the school to pay for the ex felons’ tuition and other fees. Fees may include living expenses such as transportation and rents. In some cases, the money for such fees are paid directly to you or be placed in your account with the school, depending on the school policy.

Subsidized loans for felons have interest rates of 5.6 percent. Non subsidized loans have interest rates of 6.8 percent and has to be paid while you attend your education.

The eligibility for the Stafford Loans has nothing to do with the kind of criminal offense you were convicted for. However, if you are convicted of drug offense while studying under the program, the loans will be forfeited.

Alcoholic Ex-Convicts:

Any ex convict who has …