08.19.08
Posted in Financial Advice, Savings, US Market News at 10:58 am by John Clack
“Can the deterioration in the savings rate continue indefinitely? No.” In his book, “The Secrets of Economic Indicators,” Bernard Baumohl answers his own rhetorical question after highlighting the decline of the American savings rate from 8% in the 1970s to the negative percentages by 2005. Baumohl goes on to explain that as debt continues to climb, interest rates will rise, causing debt to become less appealing. Saving and earning on high interest rates will eventually restore Americans to a positive saving rate one of these days. Could that day be around the corner?
A survey was commissioned by Bankrate.com to determine Americans’ attitudes about savings. They found that 14% of Americans “…don’t save much because [they] don’t really worry about it.” 80% though, “…do save money, but not as much as [they] would like because of the expenses of daily living.” Only 25% of Americans could endure a full year living off of their savings while 22% have savings to last them a month or less. Startlingly, men typically save more than women.
Those without debt were found to be more capable of surviving a year on their savings, despite the fact that people with debt are actually more likely to save. While debtors are more reliable savers, they usually have debt payments to keep up with.
With fuel prices dropping, inflation curbing, and the fed poised to raise interest rates as soon as the economy settles, it is a good time for Americans to start a saving habit. As our post, “How a Little Savings Becomes a Lot of Money” showed, even $10 a day invested at 5% can prepare a family for difficult times, start a college fund, or significantly contribute to a retirement account.
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Posted in Energy, Financial Advice, Oil Prices, US News at 10:04 am by Elissa Gordon
As the fall approaches, what has been concerning you financially? From back-to-school expenses and tuition to holiday shopping, I’m sure everyone has their own individualized list of things to worry about. According to Sue Orman, though, in her article, A Cold Hard Fact: Prepare for Higher Heating Costs Now, we should be busy thinking about what heating costs will be like this winter.
Why exactly does Orman think that we need to be so concerned? She uses statistics from the Energy Information Administration to make the case for higher heating costs during the colder season this year. A gallon of heating oil could very well be 85% higher this coming February than it was at the same time last year. Natural gas and electricity users will take a hard hit in the pocketbook as well. The EIA claims that natural gas will be 45% higher this winter, while electricity will be 10% higher. Ouch! That’s certainly not good news for homeowners. So saving money on your heating bill should be on your list of priorities as the seasons change this year.
How can you do that? Some of Orman’s ideas include researching different payment plans with your utility company (i.e. spreading your payments over the year) and weather-proofing your home to reduce drafts. A programmable thermostat, she says, will save money by reducing the temperature in your home while you are at work or in bed. She concludes her article with ways her readers can save money on other things – cell phone bills and holiday shopping – so they can afford to pay for heating. Also, she suggests raising the deductibles on insurance policies to save money on premiums for those who have additional savings.
This article outlines what could very well happen this winter. Orman’s article has a positive flavor as she encourages people to prepare for the future rather than panic about the impending heating crisis. Orman does not, however, devote any space to possible solutions to the rise of heating costs, such as oil alternatives or domestic oil drilling. Orman seems to be saying that the only way for her audience to survive is going to be to lower their standard of living. While that may be necessary, she neglects mentioning the ways that her audience could pressure their government to help solve the problem.
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08.15.08
Posted in Energy, Oil Prices, US News at 4:53 pm by Elissa Gordon
Oil prices are a huge concern for Americans today. Gasoline prices have been affecting all of us lately and everyone has different theories as to why oil is so expensive and what will happen to oil prices in the future. According to Ben Stein, writer of Why Oil Will Keep Falling on Yahoo! Finance, the rise of oil prices could possibly be a conspiracy.
A Conspiracy? That may sound a little hard to believe at first, but Stein does bring up some interesting points. He points out that the traditional way of explaining higher oil prices is the law of supply and demand. The typical argument goes like this: demand for oil has risen in China and the Middle East while supply has fallen, thus resulting in a rise in oil prices. Of course, the fall of the dollar has a lot to do with the price of oil, too.
Stein acknowledges that the demand for oil has been rising for many reasons, while the supply certainly does seem to be unavailable. But he claims that this isn’t the only thing that has changed about the market since prices began to rise. While demand for oil is rising in the Far and Middle East, Stein explains that the demand for oil in the United States is actually falling. This causes him to see a hopeful future for the price of oil; the lessened demand for oil in the United States should cause oil prices to fall.
Where’s the conspiracy in all of this? Well, Stein claims that the only other new factor in the market is the number of speculators who are buying contracts for the future delivery of oil. A commodity bubble like this would cause prices to rise, as they have. Stein certainly doesn’t seem to think that this is a long-term problem, though. He explains that, “Bubbles can take a long, long time to correct but they always do.”
So, Stein seems to think that the falling demand for oil in the United States along with the eventual correction of the commodity bubble will ensure lower oil prices in the future; he concludes his article with advice not to blame the oil companies for something that really isn’t their fault.
Still, I’m wondering just how long the “long, long time” he referred to is going to be.
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Posted in Financial Advice, Taxes, US News at 11:08 am by John Clack
Kevin McCormally recently did an article for Kiplinger.com focused on income distribution within the United States. The piece cites new statistics from the Internal Revenue Service showing that for the first time, in 2006 the bottom 50% of earners in America paid less than 3% of the total federal income tax. The top 1% paid nearly 40% of the federal income tax, but earned almost twice as much as the bottom 50%.
Put more simply, the bottom one half of American earners, earning about one tenth of the money, pay one thirtieth of American taxes. The top 1%, earning about one fifth of America’s money, pay two fifths of the federal tax burden.
This income discrepancy is significant in recent history. From the article, “In 1986, the top 1% of earners reported 11% of all income and paid 26% of the income taxes; the lower-earning 50% made 17% of the income and paid 6% of the nation’s individual income tax bill.”
In 2001 Thomas Piketty and Emmanuel Saez of the National Bureau of Economic Research published a paper titled, “Income Inequality in the United States, 1913 – 1998.” They found that the rich in the United States have been taking up an increasing share of the income, beginning in the 1970s. One of their theories is that the industrial revolution caused some income disparity which declined consistently as access to new technologies became more widespread. Today we may be experiencing something like a second industrial revolution. “…a new industrial revolution has taken place, thereby leading to increasing inequality, and inequality will decline again at some point, as more and more workers benefit from the new innovations.”
The accuracy of Pinketty and Saez’ theory may dictate the next few decades of American economics. They also make the point that increasing taxation of the rich has understated income disparity in America. Are the rich unfairly taxed? Is the common man under-paid? McCormally points out that the coming presidential election will have a large impact on the future of American tax law.
Source articles:
http://finance.yahoo.com/taxes/article/105468/What%27s-Your-Share-of-the-Nation%27s-Tax-Bill
http://emlab.berkeley.edu/users/saez/w8467.pdf
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Posted in US News, World Wide Web at 9:33 am by Nikia Taylor
It is critical to responsibly monitor any personal information entered and projected on the internet. These days you must take into consideration more than just hackers and those that are just plain inhumane. Employers are now researching qualified hopefuls through simple internet searches
Website search engines allow probable, disguised seekers to obtain certain information regarding candidates of interest. Those seeking positions in the corporate world have also put time and effort into their personal page setups for websites such as MySpace.com and Facebook. These websites are typically centered on personal networking or leisure activities. Surely, corporate hiring is not one of them.
Technology has become the new, exceedingly depended on, best friend allowing one to easily stay in contact with their center of influence. Though appreciated dearly, it also hinders humanity. It benefits to remain smart about the vast World Wide Web and safely limit representations under any given name.
Heavy web-surfers should thoroughly research their name in as many search engines as possible and if necessary, take advantage of programs offered to remove demeaning hits. Even if names are clear and the searches are adequate, one should still consider using the prominent Google Alert for future references. This feature will notify the contact of searches that display the indicated name. If it is too late and damage is evident, there are extra procedures requiring the help of some companies (fees included) that will move names down the search lists.
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08.14.08
Posted in Axiom News, Career Info, Credit Cards, Debt Relief & Your Credit, Financial Advice, US Company News, US News at 4:32 pm by Tim Carver
Axiom Financial Solutions now offering an amazing opportunity to become a net branch and get into today’s hottest industry Debt Settlement. According to the Federal Reserve, the US consumer revolving debt reached over $900 billion in ’07. Additionally, there were over 1.3 billion credit cards in circulation. With that being the case, Axiom Financial Solutions has taken an active roll in assisting those in need, especially during this incredibly difficult economic time that we currently face. Whether you’re a mortgage broker or other sales professional, by managing an independent net branch of Axiom Financial Solutions, you will be able to take an active role in helping consumers resolve their unsecured debts. We provide the industry standard in high ethical standards, customer service and sales techniques.
Our Program accomplishes the following for your clients:
1. Reduces their debt by as much as 40 to 60%
2. Simplifies their lives by providing one single lower monthly payment
3. Avoids personal bankruptcy
4. Reduces collectors phone calls
5. Becoming DEBT FREE in as little as 1.5 to 2.5 years
We will provide you with everything you need to be successful:
• 3rd party trust company handles all monthly payments with online access
• State of the art industry software to manage clients, leads and sales team
• All customer service to be handle by a designated customer service rep for your clients
• Quality control and compliance to make sure all regulations are met
• Complete sales training for debt settlement sales cycle
• Ability to buy in to our lead source
For more information visit our website at www.Debtreliefnetbranch.com or
email Tim@axiomfinancialsolutions.com
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08.13.08
Posted in Career Info at 4:54 pm by Nikia Taylor
Graduates all over the nation go to college and obtain degrees in hopes to find honest, and great paying jobs. Depending on the career choice and acquaintances of recent graduates, entry-level salaries can be quite unpredictable especially given our current economic slump. There are many factors that new grads take into consideration when looking for a career.
Luckily, certain institutions assist this swaying balance by incorporating job placement into their curriculum (i.e. Licensed Vocational Nurses, aka LVNs). Generally, employers prefer experience over anything, and consider it a lesser liability for the company. However, this does depend on the type of company that is being discussed and their national standing. For corporations that are going out of business or changing ownership, hiring the less experienced is a plus; for the absence of supplying benefits as they would have to do for a person with decades of worth.
Beyond the pettiness of the job world, at least 85% of the nation’s companies should be required to give a certain number of graduates a job per hiring season. How else will these anxious newbie’s obtain valuable experience for any job position?
Even when the job market gets rough, applicants persistence, ambition, and overall improvement of skills are just a few of the traits that should be mastered. There are more qualities that make any individual appear rare, and thus stand above the rest. Simply work hard and do what is necessary to achieve career goals without destroying integrity. Patience is another fundamental quality needed. Remembering that you are a new graduate with lack of experience will assist you in determining the correct position and proper expectation towards annual income.
Just as anything else, supply and demand are factors of determination of need.
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Posted in Credit Cards, Debt Relief & Your Credit, Financial Advice at 10:30 am by Sanaiyya Sohail
When times get tough, varying financial strategies can be helpful. It’s important to realize that paying interest makes someone else rich. Thus, please pay attention to these simple rules:
1. Do not purchase frivolous items you cannot afford. With the temptations that lie right in front of our eyes, saying “no” has become harder than ever. Mall goers will have to learn to resist purchasing those items that are unneeded.
2. List out your daily expenses to see where you have the ability to save money. 3. Live by the “cash only” rule. If you do not have the appropriate cash on hand, then you should not purchase that item. This will decrease your likelihood of becoming reliant on your credit cards, thus eliminating debt that accumulates interest on a daily basis.
4. “On sale” does not mean “FREE”. Please keep in mind that just because your favorite store is having it’s huge monthly, quarterly, or semi-annually sale does not necessarily mean you need to purchase something.
5. If you have a mortgage, automobile loan, or other payments, then you are already in debt. Thus, resist from buying items that are unneeded over those items which must be paid (i.e. rent/mortgage, utilities, groceries, etc).
While it may seem that if everyone stops consuming, then the nation’s economy may have to suffer, thus causing even more of a drain on our economy than we currently are experiencing. At the same time, our habits should be kept not only in a state of adversity but also one of prosperity to maintain stability.
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08.12.08
Posted in Financial Advice, Stocks and Funds, US Market News at 2:42 pm by Justin Jordan
If you are like so many American’s who are looking for a high reward investment in a tough US economy look no further than Fidelity Magellan mutual fund (FMAGX). Fidelity Magellan which was once managed by world renowned investment manager Peter Lynch is easily recognized by name. Lynch brought the fund to its height, managing the fidelity fund from 1977-1990.
However, enough about name recognition, the common investor is more worried about results than a funds famous name. Fidelity Magellan has had results as of late. Last year the fund rewarded its share holders with a near 19% gain, which is triple market gain over the same period of time.
Fidelity which is currently managed by Harry Lange, is not aiming for small returns. Instead Fidelity looks to blow out there competition similar to last year.
In a tough market look for key managerial experience and most importantly look for a fund that has produced results!
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Posted in Career Info, Financial Advice at 9:54 am by Nikia Taylor
By the end of any given day, regardless of unavoidable qualities, the more time and effort put into hard work, admirable benefits will be reaped. Clearly spoken, plant only the good seeds.
For many years, women have been paid lower salaries than most working men. Studies suggest that women’s placement in lower paying jobs comes from their choice of career path and or college major. Selective women seem to lack the aggression and desire for wanting higher paying jobs compared to their male counterparts. Females are defined by many origins as caretakers, displaying constant images of softness and beauty, while men, on the other hand, are sought to conquer and protect. This traditional mind forming is evident and alive today. A typical example is when parents teach their girls that it is okay to cry, while their boys to “suck it up and be tough”.
Beyond physical traits, one’s social lifestyle may have a heavier influence on salary deferments. Not to condone, but social drinking has proven to be beneficial providing terms for networking. Even if meeting Bob does not land you that executive position for Wall Street, who knows what he could offer; or better yet, who he knows that can help. Bars are not the only places for popular networking, but they do provide a good environment of effective communication and socialization. Additionally, studies conclude that drinking (not drunk) does free the tongue to speak effectively. While this might hold true, it is always important to be responsible when drinking, especially given the fact that it can have a lasting impression on those who can affect your career.
Another affirmative quality for salary and hiring potential is the personal status of the interviewee. Married persons give off that sense of stability and commitment versus your free spirited single. To a number of people, this is biased. The employer is seen as making assumptions not really knowing the quality of the “knight in shining armor”. For instance, pros of responsibility are seen through married potentials; while cons may include limited availability.
Salary compensation is up to the personality and career driven goals. It is intelligent to suggest that employees do maintain a relationship with those overhead, and to ask and accept performance ratings. As for everyone, there is always room for improvement.
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