2012年1月31日 星期二

Brokered Deposits, Where is the Big Bad Wolf


Reuters published an article last week on the "evils" of brokered deposits. And now my gloves are off!

Let's get something straight. Deposits, brokered or otherwise are not the problem. The banks making poor management decisions are the problem. The problem is with the bank's bad loans and poor investment decisions. It is not the accepting of brokered deposits that causes banks to fail.

The perceived problem with brokered deposits is that they are more volatile than a bank's "core" deposits. This may have been true in the Stone Age when we didn't have newspapers and the internet, but it simply IS NOT TRUE in 2008. In a matter of hours, a bank through the internet can take in Millions of dollars. Just look at the recent onslaught of funds that AARP helped Huntington National Bank raise or how about Countrywide Bank? Those internet funds are as volatile (and "expensive" I might add) as any brokered deposit.

There is also another class of deposits that most people outside of the banking industry probably don't even know about. They arrive from a rate listing service. Rate listing services actually have a specific exemption from being considered deposit brokers because they don't "facilitate" the placement of the deposit. They just provide rates and the investment manager makes the decision as to which institution to place the deposit. (Don't even get me started on this one). Again, a bank can list CD rates on these services and within hours raise Millions of dollars. Millions of dollars that are just as volatile as any brokered deposit.

The article written by John Poirier also uses scare tactics and a nice salting of misinformation to give the impression that brokered deposits are evil. Almost every paragraph could be rebutted. But then this post would be 10 pages long.

First, the article leads off with a statement about "cash hungry banks are in danger of failing" because of brokered deposits. The fact is that the banks are cash hungry because they made risky loans that aren't being paid back. Secondly, they are cash hungry because they are losing "core" deposits to high yield savings accounts and checking accounts that are being offered on the internet.

Next the article states that brokered deposits have "fueled a spate of recent bank failures." First, there have only been four failures this year. I wouldn't classify that as a spate. Second, of the four banks, only ANB had a large amount of brokered deposits. Douglas NB had about 3.2% of their deposits listed as brokered and First Integrity had about 4%. Banks that do take brokered deposits usually limit them to no more than 10%.

One of the funnier misstatements is the fact that the author writes, "Brokered deposits are short-term deposits that often attract banks in remote areas to increase lending activity." First, brokered deposits can be far from short-term. They can be anywhere from 90-Days out to 20-years. The term is really dependent on the market. Secondly, the article implies that it was the lure of brokered deposits that caused them to increase risky lending activity. However, usually the bank has already begun the lending activity and suddenly realizes they need more deposits to fund the loans. The increased risk the bank was willing to take (at least during the Housing bubble) was fueled by greed and the low cost of funds, not brokered deposits.

One of the few partially true statements is "Brokered deposits also usually offer higher rates than other bank products such as certificates of deposits..." The true part is often the rates are higher. However, as I stated above, they may be no higher than many internet specials. This author shows just how little time he took with his research. 99% of brokered deposits are certificates of deposits.

Are brokered deposits really more expensive though? If a bank that has $1 Billion deposits needs $5 Million dollars they can make a private offering to brokers without alerting their entire deposit base of these higher rates. So would you rather pay a higher rate on $5MM or $1BB? Moreover, brokered deposits tend to be in higher denominations which means much, much less paperwork and handling for the bank. They also tend to be from other financial institutions. This means the patriot act doesn't apply and the bank doesn't have to worry about OFAC violations. In the long run, brokered deposits cost the bank less. Finally, although a single deposit may be more volatile, the broker is usually able to replace any deposits that close and thus, brokered deposits become a stable funding source. They are certainly more stable than high-yielding savings accounts being offered across the internet that can be withdrawn at anytime.

The author goes on to infer that ANB was a small Arkansas bank. He makes it seem like the evil brokers took advantage of a small little bank. ANB Financial at the time of closing was over $2BB in assets. Most banks do not have over a billion dollars in assets. ANB was a large bank. The management of this bank did not have the wool pooled over their eyes. The brokers didn't come to them as wolves in sheep's clothing.

He states that the FDIC picked up the $214 million tab when ANB was taken over. Pulaski took over a large part of the deposits. As the closure process hasn't been completed and ANB's assets sold off, there is no way to know how much it will actually cost. But if you want to talk about cost, how about the Bear Stearns bailout or the billions and billions of dollars the Fed has pumped into the system. How much is that costing and how much of that are the banks using to continue their mismanagement practices.

Deposits from any source other than the local area should have more scrutiny, if any additional scrutiny is going to be placed. If a bank's insurance premiums are increased for accepting brokered-deposits, the practice of utilizing rate listing services and offering internet specials will increase, thus skirting the intent of the original regulations (which is to make banks keep a watchful eye on their non-core deposits).

If you've gotten through all of above, who is really going to pay for higher oversight and or the higher premiums that have been suggested? You the saver. You the saver are the one that will pay with lower rates. You have already been hit hard with the Fed lowering rates over 3%. The FDIC should scrutinize the entire banking operation, including all sources of deposits and lending practices. The fact is in 2008, all deposits are volatile.

One funny side note. I looked at the deposit breakdown on ANB. And I discovered why they failed. As of 3/31, the FDIC reported that they had about $1.8BB in deposits. Of that, about $1.7BB was listed as core and about $1.5BB was listed as brokered. A deposit can't both be core and brokered. I think ANB failed because they simply couldn't add 1+1. :O)

If you are a bank and need some funding. Give us a call. We have a variety of methods and sources we can use to help you raise deposits. Visit our bank funding page.




Chris Duncan is a FINRA Registered Representative. He specializes in helping clients find quality CD rates nationwide and banks find quality deposits. His clients include individuals, financial institutions, corporations, and public agencies. Discover our CD rates.

Here is the link to the article





This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

About Online Paralegal Certificate As an Entry Level Qualification


An online paralegal certificate is not enough as an entry level qualification into the legal profession. Although lawyers are in the end responsible for all legal services they do for their clients, the volume of legal work and scope is so vast that the necessity for well trained legal assistants is now inevitable.

The career is one of the fast-flying careers in the United States. Students are able to obtain training both off line and online. The qualifications range from online paralegal certificate to degrees. You can even read for a doctorate or for a special certification.

A Paralegal is defined by the American Bar Association as a person who is capable through education, work experience or training to discharge assigned legal work by a lawyer in a law office or in the legal department of a Government agency or a corporation. Jobs are usually delegated jobs for which a lawyer should otherwise handle. A qualification above an online paralegal certificate is therefore very vital.

Attorneys receive valuable assistance from these legal assistants. Preparation of files for trials, hearings, closings, client interviews or depositions are some of the jobs in a law firm. Other duties include legal documents research, locating witnesses, arranging affidavits, and indexing and retrieving case files. Computer literacy is very important. You will also draft agreements and contracts. Considering all the above you can see that you require more than an online paralegal certificate to be able to discharge your duties excellently.

There are job openings in all aspects of human endeavor. They assist the public in matters of law in the legal departments of both public and private corporations and in the legal departments of both governmental and none governmental organizations.

In the past training was mostly on the job or obtained via an online paralegal certificate, but today you can obtain an associate degree from programs offered by the community. An associate degree program is generally a 2-year program and as such not quite good for the vast work you may be responsible for. The basic entry level qualification is now a 4 year degree program.




Certificate programs are usually for people who already have? bachelor's degrees.? It is no more favorable to go for a certificate program with a? GED? or high school diploma for admission. Employers no longer favor candidates who have no degrees.? The most employable applicants are graduates with bachelors and/or master's degrees, not those with Online Paralegal Certificate.





This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

2012年1月30日 星期一

10 Helpful Tips When Opening a Certificate of Deposit


Many people tend to look for a low-risk investment option for money, and hence turn to certificates of deposit (CD) in order to do so. If you would like such an investment, consider the following points so as to be fully aware of what you are getting into.

1. A CD is a type of deposit account that offers a higher rate of interest compared to a normal savings account.

2. CDs are covered by a federal deposit insurance up to $250,000.

3. When you purchase a CD for a fixed period of time, the bank pays you an interest periodically. You also have the option of collecting the interest accrued at the time of maturity of your CD.

4. Early cancellation of your CD has a penalty applied on it.

5. There are many deposit brokers in the market. These brokers will negotiate with the bank on a higher rate of interest and give you a less rate.

6. Contrary to earlier, CDs these days have been complicated with variable rates of interest which change depending on how long the tenure of the deposit is.

7. If you have a long term CD, the banks have a right to terminate the CD if the interest rates fall. However, if the interests rate rise, you will still get the lower rates.

8. When picking a CD, consider your financial goals and ensure that your choice meets your goals.

9. Understand potential pitfalls - these include the difference between the call period of a CD and its maturity date. Be clear with all terms and conditions on your CD.

10. Research any penalties and any other charges that might be applicable before hand so that you wont get rude shocks later.




About Author: Pauline is an online leading expert in the finance. She also offers top quality tips like: Ways To Save Money & Reconcile Bank Account





This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

Birth Certificate Copy - An Important Document To Have At Hand


Any activities we do under national, state, or local government laws, demand specific forms of identification. Without this documentation, we are at the least turned down for whatever we're endeavoring to do.

Your birth certificate has specific information about you. It shows where you were born, when you were born, your nationality, weight at birth, and even the time of your birth. It shows your legal name at birth, and in many cases, the names of your mother and father, and helps show lineage. Many birth records also have another identification number, not your national insurance number assigned to them.

Original birth records get lost, stolen or destroyed every day. Sometimes this is an accident or just pure bad luck. Having a birth certificate copy, or obtaining a copy, is an important move that we can make to safeguard ourselves. If you have your original birth record, it's best to put it into a bank safe deposit box for safe keeping, or hand it to a relative that can be trusted, while keeping a birth certificate copy available for everyday use.

There's a plethora of reasons to have a birth record on hand. School children cannot be enrolled without one. Enlisting into the army cannot be done without proper identification. Opening a bank account, obtaining a passport or visa card, getting a credit card at your bank, receiving an inheritance, and even being married can all be hampered without a birth record. It is better to have a birth certificate copy, because this copy can be more easily replaced in the event of a loss. If for some reason a child needs their certificate to enroll in some type of youth sports, it is easier to breathe knowing that a copy is more easily obtained than an irreplaceable original.

A birth certificate copy is still an official document, printed on official paper, and can be identified as a proper document. A photocopy is not necessarily accepted by any or all government entities, and in most cases will be refused. In today's world, it's increasingly hard to do anything that is government run without your identification papers.

Storage of important documents is important. As stated above, never leave the original in your home. It is safer in a fire-proof, damage-proof safe deposit box and less prone to theft as well. Guard your identification papers carefully in all cases, and lessen the risk of having your identity stolen. Obtain an official copy of all of your important documents, safeguarding them all in the aforementioned safe deposit box. In the event of your death, these documents are also something that the executor of your estate may need access to. Make the smart choice today and get a copy of your birth certificate for unforeseen circumstances and everyday interactions.




If you need a birth certificate copy in less than 24 hours then check out AncestryShop as they can email you a birth certificate replacement which will be with you in less than a day.





This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

2012年1月29日 星期日

A Comparison of Annuities and Certificates of Deposit (CDs)


Similarities:

Fixed Annuities and CDs are low risk investments with guaranteed rate of returns based on interest rates, both are issued by financial institutions, CDs by banks, Annuities are offered by insurance companies. CDs have FDIC protection to guard against Bank failures. Annuities also have safety measures put in place by each State to ensure Insurance companies have reserve pools in place. The guarantee for annuities is based on the claims paying ability of the issuer. Investors can compare the financial strength of Insurance companies using the ratings from firms such as Standard & Poor's, Moody's, A.M. Best, etc.

Differences:

Annuities carry several benefits.


Generally higher returns
Tax-Deferral of earnings
Potential liquidity

Higher Returns:

Fixed Annuities, like CDs, are hinged to interest rates. But when rates are low so are CD returns, but annuities have a minimum guarantee in place, usually 3% or 4%. Your investment will never dip below the guaranteed minimum interest rate during times of falling or low interest rates.

Tax-Deferral:

You pay annual taxes on CD interest earned without being able to withdraw funds until your investment term is over. With Fixed Annuities, there is also a set term, but the earnings are tax-deferred. You only pay taxes on interest earned when money is withdrawn. So with Fixed Annuities the deferred tax on your interest remains in the investment potentially earning you more money, instead of being paid out to state and federal tax agencies on a yearly basis.

Potential Liquidity:

CDs do not allow you to withdraw any monies during term. Some annuities have provisions that allow you to withdraw money, generally 10% of your account value annually. Plus many contracts allow you to remove the earned interest on a monthly basis, of course if you do, it becomes taxable income. Several other contract provisions allow you access to all of your funds such as in the event you are hospitalized, undergoing a life-threatening illness, subjected to a permanent or extended stay in a nursing home, or other major calamities that affect you economically. In addition, annuities can be structured to pay-out for the life of the owner and/ or his or her spouse, or over a fixed term such as five or ten years, thereby spreading out your tax-burden and providing enhanced income security.




Russell Hill writes articles on a variety of subjects including fixed annuities, variable annuities, indexed annuities and other retirement investment vehicles. More information on annuities can be found at: http://www.annuity-strategies.com





This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

Annuities - Equity-Linked Certificate Of Deposit - The Safer Low-Cost EIA Alternative


Equity-Linked Certificates of Deposit are a safer, low-cost alternative for those who must have an Equity-Indexed Annuity type of investment. These little-known investments allow you to participate in the growth of the market index while your principal is guaranteed by the Government. Read on to find out more.

Equity-Indexed Annuities are probably the most heavily promoted investment for seniors in today's marketplace. The sales pitch is appealing and the payoff to the agent is very big--up to 13%. The enormous commissions have led to sales abuses which leave seniors holding the bag.

Readers of this column have wised up to the flaws of Equity-Indexed Annuities. But what are the alternatives?

The best alternative to Equity-Indexed Annuities is to use a diversified mix of investments and strategies that can provide an income stream between 6% and 10% while limiting any risk of significant loss. That's what I do for my clients--without long-term time commitments or surrender penalties if they want access to their money.

Another alternative is called an Equity-Linked Certificate of Deposit. They provide virtually all the benefits that Equity-Indexed Annuities are designed to provide, without all the negative strings attached.

Equity-Linked Certificates of Deposit are offered by banks. They pay a return that is based on a stock market index, usually the S&P 500. Just like all Certificates of Deposit, they are federally insured by the FDIC up to $100,000 per individual. The minimum purchase for an Equity-Linked Certificate of Deposit is usually $25,000, but some can be found with $1000 minimums.

The return is based on the average performance of the S&P 500 over a set period of time. Just like Equity-Indexed Annuities, how the return is calculated depends on the issuer. The returns are all based on averaging the gains or losses of the index at set points over the life of your contract. Some Equity-Linked Certificates of Deposit guarantee a 3% return. Those doing so will limit the index return. Others provide 100% of the calculated index return.

The only way you can lose your principal with an Equity-Linked Certificate of Deposit is if you pull your money out before the end of the term. Most will have some form of a penalty, but since there wasn't a big commission paid to an agent to sell it, the redemption penalties should be small. (Some don't allow early redemption so investigate before you invest.) All allow early redemption without penalty if the account holder dies.

One of the major benefits Equity-Linked Certificates of Deposit have over Equity-Indexed Annuities is a short term commitment, FDIC insurance of principal, and much lower fees. They allows you much more control and flexibility.

For instance, let's say you intend to invest $75,000 in Equity-Linked Certificates of Deposit. Instead of putting all the money in a single CD, divide that money between three--purchasing one each year for three years. Then as one comes due you can roll it into another 3-year term. This will reduce the negative effects in how the index returns are calculated while giving you access to $25,000 every year.

There are several disadvantages to Equity-Linked CDs. They don't normally pay interest until maturity, so these investments are not a good choice of those looking for steady income. And like Equity-Indexed Annuities, you don't really get 100% of the market gains because of the averaging used in calculating the rate of return.

You may be wondering why you haven't heard of Equity-Linked Certificates of Deposit before. In fact, you should wonder why the advisor recommending you buy an Equity-Indexed Annuity hasn't recommended them! The reason is they don't pay a large commission so there isn't a financial incentive for the advisor to do so.

Check with your local bank to see if they offer Equity-Linked CDs. Not all do, but they are becoming more widespread. Any broker or advisor that can sell bonds should also have access to Equity-Linked CDs.

I still believe there are better ways to invest your money than Equity-Linked CDs. But I'd much rather see someone invest in them than an Equity-Indexed Annuity. Don't let advisors who stand to gain so much from your money pressure you into investing in an Equity-Indexed Annuity when an Equity-Linked CD is a much better alternative.




Have a financial question? I?ll personally answer it. Go to http://www.guardingyourwealth.com and click on ?Ask Jeff?.

SPECIAL REPORT:

Did you know that you could pay as much as 3% a year in money management fees by hiring an investment advisor?

I've just released a groundbreaking report will show you in clear and concise ways why hiring an investment advisor may be one of the most costly mistakes you'll ever make -- and what the profitable alternatives are.

I'd like to offer you a complimentary copy of this new report. If you're an investor, this is the one report you MUST read. You can get it here:

http://www.guardingyourwealth.com/SpecialReports/FinancialSelfDefense.htm

In addition to being a nationally syndicated columnist and Certified Financial Planning Practitioner, Mr. Voudrie provides personal, private money management services to clients nationwide.

Nationally-syndicated financial columnist and Certified Financial PlannerR Jeffrey Voudrie provides personal, in-depth money management services and advice to select private clients throughout the USA. He?ll answer your financial question ? FREE at http://www.guardingyourwealth.com





This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

2012年1月28日 星期六

Always Get the Insured Certificate of Deposit Rates (CD)


If you are planning to invest your money in a way which is short term and involves minimal risk then you can consider a Certificate of Deposit or a CD. A CD is quite similar to a normal savings account. It allows you to save money while you earn interest on it. However, in case of a CD one cannot withdraw money according to his wish and that is why it is considered to be a much better alternative. If you successfully get the best CD rates then you will also get the highest return on the amount that you have invested. In short, if the interest rate is high it will gather higher income.

Sometimes you may also find a broker who is offering you the highest CD rates. But we would recommend you to stay away from them, because:

Firstly, they often ask you to invest huge amount of money. But a credit union or bank will never ask you to do so. There are some cases where they have asked for a minimum investment of $10,000 or more.

Secondly, if you are purchasing them from a broker, make sure that it is insured by the Federal Insurance Deposit Corporation (FIDC), otherwise the chances of risk are very high. While purchasing, do mention an insured certificate of deposit. If you feel that the risk is much higher for you then you can always go to a bank or a credit union.

Thirdly, brokerage charges can be outrageously high. Always do a market research regarding the fees before you get into the deal. But, it is always advisable to go to a financial institution because the brokerage charge may go beyond the sum that you would receive from the high rates of interest.

You must be aware of the maturity date of your CD. Some financial institutions and brokers routinely renew the CD when it expires. They will not renew it if you specify them. Therefore, rather than telling them to renew the CD, it is always a better option to collect the amount and reinvest it in different rate, which is higher.

If you are not bothered about keeping the best interest rate, you can always go for the long term CD. If you invest your money for a longer period, the broker or the financial institution will be required to make revenue from it. This is why, they will keep offering high rate of interests. It is always preferable to follow this route as you get high returns on your invested amount.




Read my reviews about term deposit rates, and gold buffalo proof from my websites.





This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

Best Certificate of Deposit Interest Rates - May 2010


We have seen certificate rates decreasing more and more again this month. Healthy banks are averaging below 1.25% for 1-year CDs. Banks showing distress are still popping in around 1.50%. A little bird told us about a bank in Puerto Rico offering a 2.25%, but only for local credit unions. Sooner or later rates have to go up, but it keeps leaning more and more towards later.

1-Year CDs

Northpointe Bank has a 2.05%. But it doesn't come without a catch. In reality, they have a 2-year CD with no penalty to close after 1-year. But a liquid CD after 1-year is a good feature. Bank does have some weakness though. Alliant Credit Union has a 1.75%. We've listed their rates previously. They have a 3 to 4 star rating depending on whom you ask.

18-Month CDs

Two institutions have a 2.00%. They are Alliant Credit Union and First City Bank of Florida. First City has a 1-star rating. Aurora Bank FSB (formerly Lehman Brothers Bank) has a 1.78%. They have a 2-star to 3-star rating. And like Ally Bank (formerly GMAC Bank) they are trying to leave their past behind them.

2-Year CDs

We have a bank with a 2.50%. They are 3 to 4 star rated. Alliant has a 2Y at 2.25%. Alliant came on the scene a few years ago and has continued to keep their rates quite competitive. And of course as I mentioned above, Northpointe has a 2.05%.

3-Year CDs

First Federal Bank of the Midwest has a 37-month at 2.75%. They have a 4-star rating. Alliant Credit Union comes in second with a 2.50%. Pentagon Federal Credit Union also has a 3-year at 2.50%. They have a 4-star rating.

5-Year CDs

Acacia Federal Savings Bank has a 3.20%. They have a 2-star rating. Nationwide Bank has a 3.10% and only a 6-month penalty to close. Ally Bank is supposed to have a 60-Day penalty and their rate is 2.99%. At least they could have made it an even 3.00%.

All reported banks are FDIC insured and the credit unions are NCUA insured. Please remember that although we strive for accuracy mistakes can be made. Please verify federal insurance, rates, and ratings with any institution you are looking to make deposits with.




Chris Duncan is a FINRA Registered Representative. He works for Jumbo CD Investments, Inc., a leading CD research and placement firm. He specializes in helping clients find the highest CD rates nationwide. His clients include individuals, financial institutions, corporations, and public agencies. Visit us for Great CD Rates

Other Rate Source: Michigan CD Rates





This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

Caring For Old Stock Certificates


Scripophily is the collecting of antique bonds and stock certificates. Enthusiasts vary widely in how they take care of their documents. Some actually just stack them together in a folder or drawer (cringe). Others treat them like the irreplaceable historical artifacts and works of art they really are.

If you spend time and money acquiring collectible certificates, you should know how to care for them to retain their appeal and value. Here's how:

o Sleeves - Clear semi-rigid holders are the best. The documents can be handled and stored without them being bent, rolled up or "dinged," yet they are easy to inspect and admire. Since most certificates were folded at one time, semi-rigid sleeves have the added benefit of tending to flatten and smooth out any fold remnants. Sleeves should also be non-reactive chemically.

o Gloves - If you want to handle certificates outside of a sleeve (as when inspecting with a magnifier), put on a pair of non-powdered, non-latex exam gloves. Powdered versions leave a powder residue and latex causes an allergic reaction in some people. Exam gloves are very inexpensive and will keep skin oil, finger prints and other chemicals off of the paper and printing.

o Intermingling - Certificates vary in the chemical makeup of the paper and inks used, as well as the elements that have been deposited on them over time. To prevent these various materials from interacting with each other, certificates should always be kept one certificate to one sleeve. Besides, you normally want to be able to see both sides. Many certificates have writing, signatures, transfer records or stamps on the reverse.

o Elements - Always keep paper documents away from excessive heat, light and moisture. The key word is excessive. Normal room temperatures, lighting and humidity are fine.

o Display - Collectors that have certificates special to them in some way, and people who give, or have been given, a certificate, often like to display them for others to see. A common way to do this is to mount and frame them for wall display. As with any artwork, you should avoid using tape or glue to mount them and use non-reactive matting. Also don't place them over a furnace vent, by a window that allows direct sunlight or near a humidifier.

o Repair - Pros: Some people feel taping together fold splits or erasing pencil marks helps to preserve and restore something that otherwise might end up in the trash. Cons: Others believe antique items should remain precisely as history created them and "repairing" opens up a Pandora's Box with the potential for misrepresentation.

What you do with your possessions is certainly your prerogative. Regardless of which camp you fall into, though, if the certificate is conveyed to another person, you should always make clear its condition and what you have done to it.

Collectible bonds and stock certificates are not so delicate that you can't enjoy touching or showing them. After all, many of them have survived a century or more already. Just take common sense care of them and maybe they'll last another hundred years.




Visit [http://www.realstockcertificates.com] for images, values and research tools for Scripophily (the collecting of antique stock certificates). Visit http://www.Collectibles-Articles.com for free articles on collectibles topics.





This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

2012年1月27日 星期五

Certificates of Deposit (CDs) - How to Protect Your Financial Wealth


Certificates of Deposit (CDs) are a popular form of financial investments these days because they are considered to be more safe than many other types of savings and investments. It's important to have a good understanding of this type of investment to protect your financial safety and wealth. It's also important for you to ask questions of the bank. Disclaimer: This info and the tips are not intended to be comprehensive...that would take a book.

What You Want to Understand

1. Certificates of Deposit at banks are insured up to $250,000 by the FDIC government agency. Know that the government has a very small percentage placed in reserve to fund these losses. The government reserve fund was only 1 to 2% of the total dollars invested in CDs, last time I checked. And it's likely no more than that these days. Other agencies like brokerage houses, may be insured in other ways, like SIPC.

Policy: Make sure you limit your investment in each bank to maximum of $250,000, to have the best protection. Verify if the $250,000 is per person or per family or corporate entity.

2. CDs offer many choices for your investment dollars:

Varying lengths of time (3 months to 5 years) until maturity, each term with a different interest rate.

Each bank will have different CD choices, so you likely need to contact them to see where you get the best rates, terms and other factors to meet your needs.

These days banks (and also other investment entities like credit unions) offer special deals to attract investment capital for their coffers, hopefully to lend to businesses, home owners and others. These specials yield the best results many times in interest rates and terms.

3. Find out about potential penalties and fees.

Are there any penalties and fees or fines, if you need to withdraw some of the money from the CD before it matures? This is very important because you want the money earning interest every day, however an emergency can arise that requires you to make a partial withdrawal of the principal of the CD and you want to know what that would cost you in real dollars.

What are the penalties and fees? Here's what I found, I'll use an example of $20,000 CD. Each bank varies, so I called banks for the information. The 2 scenarios illustrate

Bank 1: Any partial withdrawal before the maturity date of the CD results in a 3 month, 6-month or 1 year penalty, depending upon the term of the CD (12 month to 5-years). The penalty: your interest earnings on the entire $20k CD for the 3, 6, or 12 months penalty period are taken away, for taking out any principal amount, even $1,000 or whatever small amount. That's a huge loss.

Bank 2: Partial withdrawals (may be a limit to 1 or 2) are allowed, with a penalty for the early withdrawal. Penalty: of 3 or 6 months only on the partial amount withdrawn. The rest continues to earn interest until the CD matures, and at the rate in the original CD document. Nice.

Most banks will automatically roll over the CD to another like-term CD if you do not redeem it within 10 days or so after it matures. You should get a notice in the mail a week or two before the maturity date, but don't rely on that. Keep track of maturity dates yourself to insure you know what's going on.

4. Ask questions and make requests of the bank in situations where errors or misunderstandings occur with CDs or other bank transactions.

When a CD has automatically rolled over in error or even if you just forgot, but you don't want it rolled over with the original terms and the new current interest rate. Ask the bank to make a special exception to reverse the rollover. Also request they include the interest earned on the new CD. A courteous and respectful, occasional request for a valid reason works. I've done this a couple times over many years.

There are other examples. The point is this: take an active role in your finances, manage them, ask questions until you understand situations. The bank and all financial agencies are there to serve you - within ethical, honest, and legal parameters.

5. CD Investments on the Internet.

Be cautious with investing on the internet in CDs or any other investments. During this economic downturn people can feel desperate, so they turn to places they may see higher interest rates. The scams and frauds are higher during these times. My recommendation is to stay away from the internet for your investments now, unless you are very familiar with the source, have used them previously, and believe you can trust them.

Protect your wealth, manage your wealth wisely. Your future is in your hands!




Barbara Filla, Successful Entrepreneur and Financial Expert, helps many become the next success story. Whether you're looking to develop and build a successful business, be an ex-corporate CEO of your own home-based business, the next millionaire Mom or Dad, Barbara can assist you to reach those goals and experience more happiness, success and wealth.

[http://www.netwebmarketer.com/barbarafilla/wordpress]

http://www.BraveheartWomen.com/barbarafilla





This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

Do You Like the Certificates of Deposit Rate


Certificates of deposit is really the investment choice of the majority. It is popularly known as CDs. Many people purchase them without any knowledge of certificates of deposit rate and how it might affect them. When you know a little bit more about the rates or what affects the rates, you can maximize the potential of this type of investment and really make it work well for you.

You need to be aware of the fact that certificates of deposits are very similar to savings account and they also have functions like one. One major difference is that certificates of deposit carries a fixed term like three months, six months, one year or even multiple years and most do also have fixed interest rate. The main idea is to leave the money in the CD or certificate of deposit for the chosen term, after which you can withdraw the money with the accrued interest.

Actually, the benefit of certificate of deposit accounts is that because of the fixed term, your interest rate is usually higher than savings account that allows withdrawal anytime. Most certificates of deposits do come with fixed rates, but some banks and credit unions also offer variable interest rates. Some CD's are tied to the stock market or even the bond market. This can be risky as far as the interest rate you get, but the payoff can be huge, depending on how the associated market does during the duration of the certificate of deposits.

Keep this options in mind if you are considering certificates of deposit:

Just so true, the larger your deposit, the higher the interest rate you can expect. Also, the longer terms will get you the highest rate. You should also know that, smaller banks and credit unions generally offer higher interest rates. Your personal CD accounts generally do get higher interest rate than business CD accounts. Some financial institution that are not insured by NCUA or the FDIC often offer higher interest rate because of the risk involved.

As you can see, when you are considering the certificates of deposit rate there is a lot that goes into it. The above rules will apply to about 99% od CD's accounts, you might find some instances where they will not. Remember, financial institutions are able to set up their own rates, so be sure to ask for better terms if you are depositing a very large sum. In some instances it makes more sense to have several CD's for smaller amounts while other times it makes sense to have larger principal amounts. Shop around and choose the certificate of deposit rate that best fits your need and is associated with a term that also fits your needs.




Looking to find the best deal on high interest rate cds, then visit my site to find the best advice on high rate certificate of deposit for you.





This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

2012年1月26日 星期四

Deposition Reporter - The Career For You!


In this volatile and unreliable economy, many people are searching for new careers that can provide lucrative and stable income. Becoming a Court Reporter may be exactly what you are looking for.

The court reporting industry boasts many in demand careers and certification paths. Court Reporter, Court Stenographer, and Deposition Reporter, may be some of the many terms you have read about.

The exciting thing about seeking out court reporter certification is that it is much easier than you might think. Many colleges and vocational schools offer online accelerated programs that allow you to work at your own pace. This is fantastic if you currently have a job or are staying at home with your children. Should you have the time and the ability, there are also many great court certification programs in every state that offer classroom teaching and on the job training.

When searching for a certification program it is vital that you make sure the program is accredited by the National Court Reporting Association. This Association which has been supporting Court Reporters since 1978, is becoming the number one USA certification program with over 22 States adopting their certification exam in place of individual State exams. Please take the time to visit their site where you will find a list of accepted colleges and schools.

One of the many benefits of court reporting or becoming a Deposition Reporter, is the ability to work your own hours and/or set your own salary. Many court stenographers are hired to work from home, transcribing court proceedings on their own time from the comfort of their own computer. Alternatively, high profile and extended trials will often require a Certified Court Reporter to video and certify the testimony of expert witnesses in advance of the actual trial. Real time Court Reporters are also in high demand in many trials across the U.S.

If you have a firm grasp of the English language, enjoy learning and using technology, and have the ability to focus and concentrate, becoming a Deposition Reporter may be just the career for you.




Do you want to work in a lucrative and growing industry? If so, visit Deposition Reporter now! Millie Mason has worked over eight years in the legal profession and is now dedicating herself to helping people fulfill their dreams of entering the high paying and satisfying court reporting industry. The industry boasts many vital careers that will always be in high demand because they directly support the highly profitable legal profession. If you want to more about this in-demand career, training requirements and salaries of over $100,000 a year, find your training at Court Reporting School.





This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

How Safe is Your Safe Deposit Box?


I've got a safe deposit box. I don't know you, but I'm guessing that YOU have a safe deposit box too! At least, if you've got any brains in your head you do! In this day and age, with identity theft such a growth industry, it's more important than ever to keep all your important documents in a safe deposit box.

And of course, it's always a good idea to keep other valuables besides important documents, I'm talking about jewelry, rare coins, gold bars, diamonds, etc in a safety deposit box. Or is it?

Just how safe IS your safe deposit box? Sure, it's in a bank....but banks get robbed all the time. Sometimes robbers go straight to the deposit boxes because they know that's where the good stuff is. After all, it's hard to walk out of a bank with huge bags of cash (those things are incredibly heavy!), but if they can walk out with a handful of diamonds that may be worth millions of dollars...well, you get the idea.

And you don't just have to worry about theft...there's always a threat of fire, flood, earthquake, alien invasion...well okay, strike that last one. But natural disasters do occur, and banks are not immune to these things.

So what can you do to make sure that your safe deposit box is...well...safe?

The most important thing you can do is to buy insurance for the contents of your box. Some banks offer a minimum level of insurance with the box (ask your banker to be sure) but this will not likely cover all the contents of your box, especially if you have high worth items.

Some people use private safety deposit box companies instead of banks. Generally speaking, these companies usually offer a little more in insurance for new depositors. Check to see with your specific box company what the general levels are.

Some things aren't cover-able by insurance. Things like stock certificates, for instance, fall into this category. In that case, I suggest you leave your stock certificates on file with your brokerage company as they are well endowed to handle these sorts of things. Your brokerage firm has a legal obligation to safeguard your certificates that is probably more compelling than a banks safe deposit obligations.

One solution (well a SORT of solution) is to keep multiple safe deposit boxes at multiple banks in multiple towns. You don't want to keep multiple boxes at the same bank, because if a fire hits, all the boxes will get destroyed equally.

And you don't want to keep multiple boxes at banks that are close to each other, because if a earthquake or flood hits, chances are all the banks in your area could be hit. I suggest keeping two or three boxes in several towns, each within about an hour driving distance.

An hour is far enough away so that a natural disaster of some sort would likely miss each bank, yet not too far away that you can't get there in an hour or so. Another solution is to open a box in the city where you usually vacation, or one in which you travel to often for business.

Keeping your safe deposit box safe is a tricky matter. However you end up solving this little dilemma, as long as you know this potential problem exists, you are already way ahead of the game. I suggest you use a combination of insurance for the high-worth items and diversification for all the others.




Jason has been writing articles online for nearly 14 years. When not writing about personal finance, Jason runs a very helpful donating cars to charity web site where he discusses the ins and outs of the melwood car donation and shows you how to take the tax deduction properly.





This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

2012年1月25日 星期三

Deposition Reporter - The Must Know Facts!


I will take the opportunity in this post to discuss the requirements in becoming a court stenographer.

Becoming a court reporter or deposition reporter requires certain skills and knowledge. Many of these skills can be learned in the excellent court reporting schools that are available but there are few innate talents you should have before considering this lucrative career. If you feel that you do indeed have many of the below attributes, becoming a court stenographer could provide the career answers you have been looking for.


Have excellent grasp of the English language
The ability to stay focused and concentrate for long periods
Have an understanding and passion for learning technology
Minimum computer and technology understanding
Excellent keyboarding skills
Strong audio skills - stenographers will spend a significant time listening
Work under pressure and meet deadlines

There are several forms of court reporting and it is quite possible to become a voice writer within a year, but a certified professional in real-time court reporting requires three year certification. Court Stenographer training is offered by technical schools, vocational institutions, and many colleges. There are several levels of court reporter certification, and one should ensure that he or she has the skills to advance to each of the upper levels. Keeping in mind that it is in the higher levels that one can expect to secure the most lucrative court reporter jobs.

As many States require certification before you can work in a court room, the absolute first place you should contact is the National Court Reporters Association (or NCRA). Here you can confirm exactly the requirements for the State you choose to practice in and what the highest standard of learning is to be expected to earn the most income. Certification can be done on a State basis but it is wise to take the actual certification exam by the NCRA.

As with many professional organizations and Associations, continued education credits (CEU) must be earned every three years. This is not difficult as most court reporting agencies, will provide these opportunities within the workplace and during work hours. An active membership with the National Court Reporters Association is an absolute must. They offer a tremendous amount of information to their members and provide valuable insight as the industry changes through technology and over time. The NCRA does offer a reduced rate for students.

Good luck!




Do you want to work in a lucrative and growing industry? If so, visit Court Stenographer now! Millie Mason has worked over eight years in the legal profession and is now dedicating herself to helping people fulfill their dreams of entering the high paying and satisfying court reporting industry. The industry boasts many vital careers that will always be in high demand because they directly support the highly profitable legal profession. If you want to more about this in-demand career, training requirements and salaries of over $100,000 a year, visit her at her website Court Reporting





This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

Compare Money Markets to Certificates of Deposit


If you have cash that you would like to put away, you might as well make it work for you. This means that you should be able to earn interest on it while it sits in an account. One of the best ways to do this is to use a money market. Of course, there are a few methods of making interest from your money, with another type being a certificate of deposit. Compare these two techniques before deciding which is best for your situation.

You should first learn the pros and cons of money markets. This kind of account is basically a mutual fund that tends to have a share price of $1 most of the time. Those in charge of the account are responsible for investing the money in certificates of deposit, savings bonds, and other tactics of investment that are generally considered safe. Thus, it is usually thought of as a sure bet that you will get more than your original investment back. Another benefit of money markets is that they are similar to checking accounts, as you typically get a checkbook for it when you open one. This allows you access to your money when you need it, so it is like simply putting it under your mattress, except you stand to make a profit from it. Additionally, money markets are easy to open since most banks offer this feature.

Even though money markets usually allow access to the cash, many banks do have a limit on the amount of money that can be taken out by check every month. Thus, if you need constant access to the account, consider other ways to save. A money market account should be accessed during emergencies only. In addition, you will find that you make a higher rate of interest when you have a lot of money in the account, while you make less when you do not have much. This is unlike some ways of saving cash, as certain investment methods pay more for mature accounts than simply large ones.

If you are interested in an account that pays a higher interest rate for a mature account, you should consider a certificate of deposit. This is also called a CD, and boasts the attractive feature of increasing the interest rate for accounts that have been around longer rather than large accounts. Thus, the longer you keep your money in the account, the more you will make. While you can choose to have access to the cash during this time, you will get a lower interest rate than if you choose a longer maturity period. If you do not anticipate needing to use the money in the account, as you have another savings account, a CD is a good way to make some profit over a long period of time.

There are several ways to make money from your investment, but money markets and certificates of deposit are among the most popular. Compare their pros and cons before choosing one. Also consider speaking to a banker about your options.




For more information on how to send money online visit the http://www.sendmoney101.com/ home page and learn how to send money almost anywhere in the world.





This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

2012年1月24日 星期二

CNA Certification Renewal to Remain in the Job


A nursing assistant is an individual who assists the nurses and doctors in the hospitals. The profession is quite challenging yet rewarding. Only the hardworking and dedicated individuals must apply for this job.

The following sequence of steps is to be followed in order to become certified nursing assistants.

• First of all, the candidates must acquire proper training from any of the local community college of nursing

• After completing the training successfully, the applicants are supposed to pass a certification exam

• Last but not the least, the certified nursing assistants have to renew their certification every second year in order to continue working in the field of nursing.

The key points that must be kept in mind when going for the CNA Certification Renewal are mentioned below:

• Individuals must make a proper enquiry if the health department of their respective states, automatically, mails the renewal forms or they are supposed to get it on their own

• After proper research, the next step is to fill the renewal form which must be done cautiously.

• All the details regarding the working hours, place of employment, social security number and so on are to be filled with care and the respective proofs must be attached along with the form.

• Completed renewal forms must be submitted at the city office of the respective Health Departments, latest by the end of the year.

The professionals, who are not able to deposit the renewal forms on time, are required to repeat their competency evaluation test again. Besides, at times, the nursing aides become jobless also, due to late form submission.

Hence, the certified nursing assistants, who want to continue with their jobs, must renew their CNA certification as early as possible. The renewal not only help them to maintain their License at current level, but also allow them to continue working.




You can read more on CNA certification and can get more details CNA certification renewal





This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

Estoppel Certificates in Commercial Real Estate


If you own investment commercial real estate you may already be familiar with estoppel certificates. Why do most banks and lenders require them before they finance your investment property?

An estoppel certificate is a certification from a landlord and a tenant which outlines certain facts that exist between the two parties with respect to the terms and conditions of the lease that the lender can rely upon. Lenders are looking to verify from both parties specific information such as the amount of rent being paid, lease terms and duration, any predetermined lease extensions, amount of security deposits and terms of such deposits, expenses that each party is responsible for, and that there are no existing defaults or oral representations under the lease by either party. The estoppel certificate offers protection for the lender and brings all parties together to verify all aspects of the current lease arrangement.

The lenders primary concern is the repayment of their loan. Because the repayment source for a loan secured by commercial real estate is typically from the rents it receives, an estoppel is generally required from all tenants regardless of whether they are paying month-to-month or have a lease for an extended term. The estoppel verifies the lease terms but also offers protection and keeps the borrower honest.

Most lenders will have their own estoppel certificates that they will require the borrower and their tenants to complete. While it will not change the existing lease terms, it usually will include specific language that may create new terms between the tenant(s) and the lender under certain circumstances such as a foreclosure. The lender may have different clauses in the estoppel depending on the property type and current lease agreement.

Most estoppel certificates will include subordination language, non-disturbance language, and attornment language. Subordination language assures the lender that their mortgage has priority over a lease. This is very important especially if the borrower is occupying space in the subject property. When the borrower(s) will occupy some of the space in their building, many lenders will require the borrower(s) to draft and execute a lease between themselves and their business occupying the space. This will allow the lender to be able to enforce the lease if they need to take back the building. Non-disturbance language assures the tenant that the lender or subsequent owner through foreclosure will not disturb the tenant's possession as long as the tenant is performing in accordance with their lease. Attornment language is included to ensure that the tenant will recognize the lender as the new landlord if the borrower(s) default on their loan. This protects the lender so that in the case of a foreclosure, the tenants do not vacate the premise and leave the lender with a vacant property.

As a borrower, familiarize yourself with an estoppel certificate so that you clearly understand what it is and which clauses are included in your estoppel. Your understanding of this will also help you when you need to explain to your tenants why they have to sign the estoppel certificate and how it protects them




Posted by Chad Pitt
Sr. Vice President
Commercial Alternative
Phone (714) 594-3426
Fax (866) 724-8171
cpitt@commalt.com
http://www.commalt.com
http://www.commaltblog.com





This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

2012年1月23日 星期一

Estoppel Certificates


Estoppel, to the non-initiated, sounds more like the newest toy in the Pentagon's vast array of secret weaponry and armaments, something that belongs more to Area 51 than the real estate world, or perhaps the latest scandal to permeate Capitol Hill. "CIA's Probe Leak: The New Martin Lochheed F-22 Supersonic Estoppel!", one might envision reading one day in the front page of USA Today. But readers of my Articles know better ...

In Real Estate, an "Estoppel Certificate" is a document signed by the Seller, under oath, confirming the representations made by the Seller in the Contract of Purchase and Sale. The reasons for the Buyer to request an Estoppel Certificate are twofold. First, to confirm the Seller's representations as stated above and, secondly, to bar and prevent the Seller from later on asserting a fact, that is inconsistent with the terms of the Contract.

For instance, when purchasing a rental property - whether a house or an apartment building - an investor might want to insert the following two conditions precedent ('subject to' clauses). The first might read:

"Subject to the Buyer by ( insert date ) reviewing and approving the Residential Tenancy Agreement(s) presently in effect and covering the property herein bought and sold. Seller warrants that the term(s) of the tenancy is/are for a period of ( insert length of tenancy ), the monthly rent(s) is/are ( insert amount ) and that the last rental increase was on ( insert date )".

What happens if, by the time all the subjects are removed (and the property is virtually sold) and the time the investor completes the transaction, the tenant is run over by a bus and dies? In some instances the market value of the subject property may be altered, as in the case of an investor purchasing a professional building. This is where an Estoppel Certificate fits in.

The second clause might read:

"Subject to the Buyer, after all the other subjects herein are removed but in no event before two weeks (or any other time) prior to completion and no later than one week (or any other time) prior to completion, receiving, perusing and approving an Estoppel Certificate ratified by Seller covering the existence and confirming the validity at law of the subject matter and terms of the tenancies herein. Failure by the Seller to provide such Estoppel Certificate in the aforesaid time-frame will render this Contract null and void, and all deposit monies until then paid by Buyer will be refunded to Buyer forthwith with interest accrued thereon, if any there be".

The reason for Estoppel Certificates to exist in Real Estate is to be found in the equitable Doctrine Of The Promissory Estoppel. Under this doctrine, one party is barred and prevented from withdrawing a promise made to another party, if the latter has relied on that promise and acted upon it. All the more so, since contracts in real estate are made 'under seal' (deeds) and, as such, the rule of evidence arising from the special status of a deed is that the parties are expected to take greater care to verify the contents of the agreement and their validity at law, before consummating it.

The American Law Institute goes one step further by discerning between equitable and promissory estoppel in its Restatements of Contracts as follows:

"Equitable estoppel is distinct from promissory estoppel. Promissory estoppel involves a clear and definite promise, while equitable estoppel involves only representations and inducements. The representations at issue in promissory estoppel go to future intent, while equitable estoppel involves statement of past or present fact. It is also said that equitable estoppel lies in tort, while promissory estoppel lies in contract. The major distinction between equitable estoppel and promissory estoppel is that the former is available only as a defense, while promissory estoppel can be used as the basis of a cause of action for damages. The American Law Institute's website can be found at http://www.ali.org.

All the foregoing simply goes to prove, once again, that the discipline of real estate wheeling and dealing is littered with rubbish all the way - until such time as a contract is entered into and ratified by the parties, at which time Real Estate suddenly becomes all too deadly serious.

Luigi Frascati




Luigi Frascati is a Real Estate Agent based in Vancouver, British Columbia. He holds a Bachelor Degree in Economics and maintains a weblog entitled the Real Estate Chronicle at http://wwwrealestatechronicle.blogspot.com where you can find the full collection of his articles. Luigi is associated with the Sutton Group, the largest real estate organization in Canada, and is based with Sutton-Centre Realty in Burnaby, BC.

Luigi is very proud to be an EzineArticles Platinum Expert Author. Your rating at the footer of this Article is very much appreciated. Thank you.





This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

Certificates of Deposit (CD's)


Certificates of Deposit, commonly referred to as CD's, are a cross between an "investment" and a savings account. CD's have federal deposit insurance up to $100,000- which is what sets it apart from the investment world, but they have much higher interest rates than the traditional savings account.

A certificate of deposit allows you to invest a specific amount of money over a specific period of time. There are certificate of deposits for as short as one year, for five years, or longer terms. The longer you keep your money in a CD, the higher the interest rate you will receive. When your time period has ended, and you cash out your certificate of deposit, you not only receive the original sum of money that you invested, but you'll also get the interest that the money earned while invested.

While certificates of deposit are great ways to save money at high rates of interest, they're not the best choice for people who may have to withdraw money from their CD's before the investment period of time has been reached. You can access the money you've put into a CD before the time is up, however, you will either give up some of the earned interest or pay an early withdrawal penalty. Financially, it's always better to leave money invested in a certificate of deposit, but it's certainly a comfort to know that you could get the money out if an emergency occurred or you absolutely needed that money before the time is up.

Certificates of deposit have a variety of interest earning options that you must choose from when you deposit your money. There are fixed rate interest options, long-term CD's, and variable rate CD's, among others. If you're not sure how each option affects your money, ask!

Who Should Use Certificates of Deposit?

While anyone is able to purchase and invest their money in a CD, it makes the most sense for a younger investor. Because CD's earn more interest the longer they are taken out for, a younger investor can use CD's to diversify their investment portfolio and maximize their earnings by taking the Certificate of Deposit for a long period of time. If an individual is rapidly approaching retirement, however, it may not be the best option for investing if he or she is going to need the money in a short period of time.

Understand Certificates of Deposit

Before you put your money into a CD, it's important that you understand some of the most commonly used terms in relation to Certificates of Deposit.

Penalties: There are penalties for early withdrawal. Even if when you are opening a CD you have no plans for removing the money before your investment period is reached, you should definitely understand the penalties in case some unforeseen circumstances come up that require you to access the money you've put in your CD.

Interest: Always know whether or not the interest rate is fixed or variable, and how often the interest is paid on the money in your CD.

Maturity: There is a maturity date on every certificate of deposit, but there are so many possibilities for maturity dates that you should always be sure you know whether your CD matures in 1year or 5 or 20.

Call Features: Banks often put a "call feature" on all issued certificate of deposits. Callable CD's mean that the bank that issued the CD can terminate it and give you the amount you invested plus any unpaid, accrued interest if interest rates fall.

CD Holdings: There is a difference between a traditional bank CD and a brokered CD. If you use brokered certificates, it's possible that there are groups of investors that actually own small pieces of your CD. Regardless of the type of CD you choose, be sure that they have FDIC coverage up to $100,000.




This article has been provided courtesy of DestroyDebt.com, your source for debt help online.





This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

2012年1月22日 星期日

Certificates of Deposits For Retired Workers


After retirement sets in the investment years are mostly over.

We saw a glowing example of a retiree losing a huge amount of

his retirement money in the Enron debacle. He was profiled on television

testifying in the Enron investigation that he lost $4 million dollars with the fall

of Enron.

He retired years ago, yet he kept his money in their company

stock, which was the stock of his past company. This goes against the conventional

wisdom of not putting all of your eggs in one basket.

What are some of the alternatives he could have investigated to place his

money in less risky venues. He could have taken it out, rolled it over, and

placed it in a number of venues to increase it's safety.

One much less risky venue would have been a CD or certificate of deposit.

A certificate of deposit is a fixed income savings account issued by a

bank with a better interest rate than a savings account.

A CD has a maturity date of from 1 month to 5 years. Money you may need

in the very short term could be place in a 1 month, then some in the 1 year,

and so on. The CD has a fixed interest rate and is insured by the bank. It

is structured so you don't get your money at any time, but you can get it

before the maturity date, but you will usually loose some or all of your interest.

You can think of the CD as a short term, low-risk, interest-paying savings

account.

This is how it works. If you put $10,000 into a CD at an interest rate of 6%,

you will have (10,000 x 1.06), or $10,600 at the end of one year.

If the Enron retiree had (4,000,000 x 1.06) in a CD account, he would have

had $4,240,000 at the end of one year, instead of zero (0), after the one

Enron stock he invested in collapsed.

Before you invest in a CD at your bank there are a few questions you should ask.

1. When does the CD mature.

You should only keep the money in for the period of time you absolutely will not

need it, if there is any chance you will need the money before 2 years, don't

get a CD that matures in in two years.

2. What is the interest rate?

3. What is the CD insured for?

4. What is your exact interest rate for the holding period?

5. How much would you loose if you took your money out before the maturity date?

Read all of the literature you are given and know what you are

investing in before you put your money into your chosen CD

account. Remember, all investments come with some risk.

~~~~~~~~~~~~~~~~~




Lois Center-Shabazz is the founder of the personal finance website, Msfinancialsavvy.com and the author of the award- winning book, Let's Get Financial Savvy! http://www.msfinancialsavvy.com





This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

Choosing the Right Deposition Reporters For Your Case


There several factors that contribute to the outcome of a court case, including: the skill of an attorney, the attitude of a judge, the attitude of a jury and the quality of depositions. The first three factors are well known, but the impact that depositions can play in the outcome of a case is often overlooked. Depositions are often viewed as straightforward affairs. But if you have much experience deposing witnesses, then you know that depositions can range from smooth question and answer sessions to long, drawn out affairs where a deponent is anything but forthcoming. In the first case, the quality of a deposition is determined by an attorney's acute questions and a deponent's willingness to answer. But in the second case, the quality of a deposition is often determined in part by deposition reporters.

Even when deponents are surly or tight lipped, most depositions still create a record of "truth". But often times, that truth is revealed by a deponent's tone of voice, physical demeanor and non-verbal utterances, all of which an astute deposition reporter will incorporate into the deposition transcript. But the challenge is to find deposition reporters that possess the professionalism to remain on point throughout the course of such depositions. Just as attorneys become frustrated with rude deponents that don't give meaningful answers, so can deposition reporters. Therefore, it's important to evaluate reporters on more than their experience and certifications, particularly their personal views and tolerance for boredom.

Personal Views

In most cases, a reporter's views don't get in the way of a deposition. But there are times when a reporter's views can combine with a deponent's poor performance to produce ugly situations. For example, there are more than a few horror stories of prejudiced reporters that didn't reveal their prejudice until a deponent whose race, religion, political affiliation, etc. supremely tested them. The easiest way to avoid these situations is to hire a reporter through a reporting agency that evaluates candidates on their personal outlook as well as their objective skills.

Tolerance for Boredom

Court reporting is not a boring occupation. But court reporters often encounter depositions that try their attention span. When most of us become bored, we drift in thought. But when a court reporter does this, the quality of a deposition dramatically suffers. As aforementioned, some of the most uneventful depositions end up revealing the truth without words; and it takes a reporter who has a tolerance for boredom to communicate that truth through the transcript. While there's not an official test to judge a person's capacity for boredom, consulting with a reporting agency that thoroughly evaluates a candidate's personality is the best bet.




In my research on court reporting, I've discovered several characteristics that all deposition reporters should possess.





This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

2012年1月21日 星期六

Fast Track and Self Certification Mortgages


One of the most common misconceptions in the UK mortgage market surrounds the differences between self certification mortgages (also known as self cert), and fast track mortgages.

A self certification, or self certified mortgage is one where the applicant does not have to prove how much they earn. However, self certification does not mean that no income has to be stated on the application form, and neither does it mean that any income which is stated will be ignored. There used to be mortgages where this was the case, called "non status" mortgages, but they have been largely unavailable since the statutory regulation of the mortgage market in October 2004.

With a self cert application the lender will assess the income an applicant has stated on the application form in the normal way, and will apply their standard criteria in terms of income multiples and affordability, but no proof will be asked for. The lender knows that the reason the applicant is applying on a self certified basis is because they don't have documents to prove what they earn. Self certification can be a useful tool where an applicant's true income differs from their provable or taxable income. Here is an example:

Bill Smith runs a small workshop which has been a limited company since Bill established it many years ago. Bill's accountant has told him that the most tax efficient way to receive his income is to pay himself a small wage and take the rest of what he needs as dividends. Bill calculates that he needs £30,000 a year to live on and so pays himself a salary of £6,000 and takes dividends of £24,000. The company makes around £60,000 profit each year on which it pays corporation tax of £12,000 (20%) leaving £48,000 in the bank from which dividends can be taken. As the profits of Bill's company have been taxed already, Bill's accountant works out that Bill can receive approximately £32,000 in dividends without having any more tax to pay. However, Bill only needs £24,000 to go with his £6000 wage, and therefore his accountant transfers the balance to a Directors Loan Account in Bill's name, creating a loan from Bill to his company. Bill can ask the company to pay him back whenever he wishes.

If Bill was to apply for a normal mortgage, most lenders would only allow him to count his basic wage, and perhaps 50% of his dividends. Together this amounts to £21,000, and if the lender will lend up to four times income, this will result in a maximum mortgage of £84,000. By applying for a self certified mortgage, Bill can quite properly say his earnings are £38,000 as that is the total of his income, even though he may not have drawn it all. Indeed, in some cases the accountant might advise Bill that he can increase his income by the value of some items which only reduce profits on paper, such as depreciation. The result is that Bill would qualify for a mortgage of £152,000 if he applied on a self certified basis.

Obviously, by not seeking documentary evidence of income, the risk for the lender is that some applicants may lie about their income to get a bigger mortgage. Whilst this is mortgage fraud, many cases do not come to light until the mortgage payer starts getting in arrears, and by then it is likely to have involved significant expense for the lender. This extra risk is often reflected in an increased interest rate and the requirement for a larger deposit.

In contrast to this, a fast track mortgage is where the lender decides not to bother checking some documents, in theory to speed up the application process. A fast track option is generally offered when the lender feels that the credit score achieved is sufficiently good enough for them to be able to dispense with checking income whilst not increasing their risk. Lenders want people to believe that the facility is offered solely to streamline and speed up the process, and not to provide an application facility for those who cannot prove their income. As a result most will randomly sample a percentage of such applications, and will ask for proof of income to be provided. Fast track mortgages should not be applied for by those who can't prove income in one way or another.

The differences between fast track and self certified are quite defined, and there should therefore be no confusion. However, most of the confusion which does exist has been created by the lenders themselves, and their frequently changing criteria over the years. Whilst the lenders might "want people to believe that the facility is offered solely to streamline and speed up the process", a shortening of processing times is seen by many as simply a by-product, and not the real reason at all.

Before the FSA came to regulate mortgages, the terms self certified and fast track were almost interchangeable. Certainly, the likes of the Abbey and Halifax would advertise a "fast track" policy, but when their representatives came calling they would discuss their new "self certification" facility! In fact some lenders, including Northern Rock, issued statements vehemently denying that they offered self certification, whilst all the time listing fast track cases as self certified on their internal systems! The simple truth was that most lenders wanted the extra market share which came with offering self certified mortgages, and competition for market share was fierce.

Nowadays, and especially since the current financial crisis took hold, lenders have been far more specific in what their schemes are. Those offering a fast track service are actively sampling up to 10% of applications and asking for evidence of income, and some, like the Woolwich and First Active are asking intermediaries to confirm that they have seen the evidence in all cases. It is this last point which confirms that a faster process is a by-product to the real reason for not checking accounts or pay slips. Let's face it, if evidence has to be produced for the broker, it might as well be sent to the lender anyway; the work has been done and the time spent. Except, there is no one at the lender to look at it!

Fast track is offered nowadays because it saves costs, and all other benefits are secondary. Since well before Catherine Tate made the phrase famous, "computer says no" or even "computer says yes" has been a common occurrence to mortgage lenders. Research by the lenders shows there is statistically a far greater chance that the computer has made the right decision than the human it has since replaced. However, whilst a computer can assess information entered in an electronic application, and cross reference this with data held by credit reference agencies to arrive at a logical lending decision, it can't check paperwork. Paper documents that might not necessarily be in pristine condition have to be checked by a human being, and therefore, if the number of pieces of paper can be reduced, so can the number of humans needed to check them.

The lenders would probably say that the savings they make allow them to offer cheaper and better products and keep fees down. In the current economic climate, I doubt there are many who would agree.




Jerry Figueroa-Lee is the co-founder of The Mortgage Warehouse, one of the UK's leading online Mortgage Advisory Services, providing independent advice on Self Certification Mortgages and Equity Release Schemes from the whole UK mortgage marketplace.





This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

Comparing A Money Market and a Certificate of Deposit


As investors, we all face common problems. Where can I find the best rate of return? What is a good stock to invest in? What do I do with my money in between investments? With the first two questions, limitless answers can apply. However, with the last question, there are two popular alternatives. A CD or money market account are both viable choices that should be investigated. But which one will give you the most bang for your buck?

CD's or certificates of deposit are basically like you giving the bank a loan. You give the bank a certain amount of money and they give you a certain amount of interest. The interest rate that you get is proportionate to how long the investment is. Before you ever deposit your money into a CD, you decide on how long the money will be invested. The longer you invest, the higher your interest rate will be. This is why older people are notorious for having many CD's because they simply want to keep the money they have at a reasonable interest rate.

CD's can range in time frames from a few weeks to years. It all depends on the investor. The bad thing about CD's is that you don't have access to your money. If you decide that you need to get your money out of a CD before it matures, you will probably have to pay a fine. So if you get a CD, your money is officially tied up.

The other popular choice is a money market account. This is basically like an investor's checking account. Whichever investment firm you have will take the balance from your money market account and invest it into mutual funds and other securities. With this form of investment, the rate of return is directly proportionate to how much money you have in the account. It is not linked to a certain time period as with a CD. This means that if you don't have very much money, you won't make any interest. The main benefit with these accounts is that you have access to the money at any time. Most financial institutions will give you a checkbook that you can use like you normally would. The bad thing is, many people will treat it as an actual checkbook instead of their investment money.

Whichever form of investment you choose, make sure it's the right one for you. They both have positives and negatives that you should consider, before making a choice.




Find the best CD Rates at http://www.gotalkmoney.com/





This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

Example of a Certificate of Deposit


If you're looking into smart, low-risk ways to make your money grow, you've probably already thought about choosing a certificate of deposit (CD). This option is popular because it can offer a high interest rate with a very dependable payout. But the CD option also involves very little know-how from the first-time investor; it's hands-off throughout its duration and it's flexible to meet many people's needs, whether you're a high roller or just a thrifty Average Joe. If you're considering this option, it may help you make up your mind to not only understand how the certificate of deposit works, but to also be given an example of what the terminology and arrangement mean. Find both below.

Overview of a Certificate of Deposit

A certificate of deposit is an arrangement between you and a financial institution whereby you commit a flat rate of money to them for a fixed amount of time. They commit to you an annual interest rate, possibly based on how much money you're putting forth, but more commonly based on how much time you're willing to commit it. Because the bank is able to move your money around while it's in the bank's hands, they stand to capitalize on your funds. For allowing them to do this, they're willing to offer you a higher interest rate than they would offer if you were just putting the money into a stagnant savings account that the bank cannot access. However, allowing the bank to move your money does not put it at a higher risk than if the money were in a savings account because the bank itself should be protected federally, guaranteeing all patrons the right to access not only their own money but the sum the bank promises. The only downside to a CD rather than a savings account is that you can't touch your money until it reaches the agreed-upon maturity date, when your contract is finalized or renewed.

Example of a Certificate of Deposit

Let's say that you have about $1,000 to invest; one of the many appeals of the CD investment strategy is that it doesn't have to be a gigantic sum to get started. Now that you know how much you have to play with, you have to think about how long you want your money to be tied up and out of your hands. You may find an arrangement where you can earn more money the longer you keep your money in your account. So let's say that you can either earn 2% over the course of five years or 2.5% over the course of ten years, with interest compounded annually (please note that these numbers are being used for demonstration's sake - and to make math easier - and they do not represent the market's current averages in any way). This means that you can walk away with $1,104.08 sooner or $1,220.08 if you have a decade to invest - more than double the earnings on the same base amount of money. In a savings account, you might earn 0.5% over any course of time because it's both lower to begin with and less negotiable purely based on timeframe. Looking for an even better demonstration of what your personal situation means? You can use a certificate of deposit calculator to play around with variables until you find an exact solution that appeals to your exact, specific income and financial obligations.




T.M. Murphy is a professional writer who lives in NYC. She currently specializes in fashion, beauty, marketing and finance articles. For easy-to-understand financial and banking advice to use on topics such as a certificate of deposit, she often turns to http://www.discoverbank.com. T.M. Murphy has been writing full-time since 2006, when she graduated with a B.A. in English from Northeastern University.





This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

2012年1月20日 星期五

Certificates of Deposit (CDs) - How Do They Compare to Other Investments?


CDs have good potential, IRA or 401k plans have better opportunities, but there is one investment that far out-weighs them all. After reading this article, you should have some understanding of the benefits each of these plans provide, and why CDs-though a solid investment strategy-could be the least in potential to all the others available.

As for the 401k options, there are 2 benefits to this plan:

1) You can commit your money to an interest bearing account before the taxes are taken from it. (This is the most beneficial to those who are in a high tax-bracket. But if you are in a low tax-bracket this feature might not be that good of an incentive.)

2) Your company may match your contributions, in most cases, up to 3%.

An IRA is similar to a 401k program except for the fact that your contributions will be after-tax only. And you will receive no company match. These plans are usually for those who do not have a 401k account available.

The benefit to this options is that once you start withdrawing the money when you retire, it is tax free because you already paid it. (If you are in a high tax bracket now, it would probably be better for you to pay the tax when you retire and you are in a lower tax bracket.)

CDs have their value in the security that they provide. But with interest rates as low as they are these days, a CD is just about the same as only not spending your money. Though the interest is better than what you could get with your regular savings account.

The best investment available can be for those who own a home or can buy a home and already have some equity in it. Why this is the best investment is for several reasons.

1) You do not need a large lump-sum of money up front, as you would with a CD to earn a significant amount of interest.

2) It is the only way you can some day-without moving back home with your parents or something similar-have a home to live in without having a mortgage or rent payment.

3) It is the only investment where you can quickly turn a liability into a saving deposit.

4) For those who do not make a large amount of money and do have a 401k plan available, owning a home can probably generate a much better retirement position than your 401k plan.




Do you want to learn the best way to escape paying interest? You can get my free ebook, How to Significantly Lower the Interest on All Your Loans, Including Your Mortgage--and That Without Refinancing.

Click here to get the free ebook: Debt Management Free eBook [http://www.alfredspengly.com/howtoavoidinterestfreeebook].

Alfred Spengly currently works through a company that is registered with the Better Business Bureau since December, 2006 and has zero complaints. It is a company that strives for their customer's satisfaction in providing a method for managing their own money with the tools they need to establish their own financial security.

Personally, Alfred has worked in the financial field for almost 15 years.





This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

較新的文章 較舊的文章 首頁