A good name is rather to be chosen than great riches, and loving favour rather than silver and gold. (Proverbs 22:1 KJV)
I ran across this Christian proverb and it made me think. What's in a name? Entrepreneur Magazine declared that naming a business is by far the hardest task for a startup. I know personally that it comes with a certain amount of pressure to "get it right." Names are important and they are an essential part of our life. When we think of certain names, a particular thought whether negative or positive comes in our mind. A good business name is utterly important these days especially in the wake of scandals such as Enron & Bernie Madoff. Unfortunately, these and many other individuals chose to "sell" their good name away. In light of all the social media campaigns, email blasts, radio and print advertising, word of mouth has still been my greatest and most lucrative form of advertising. This doesn't mean that I don't believe the others work but there is something about a friendly recommendation that has a way to sway ones opinion. Sit back and ask yourself what is my name worth to me. Then consider what you are willing to do to maintain or to clear up your name.
Wednesday, October 31, 2012
Wednesday, October 24, 2012
FIVE FACTORS THAT INFLUENCE YOUR CREDIT SCORE
WHAT MAKES UP YOUR CREDIT SCORE
What is a credit score? A credit score is a number assigned to a person that indicates to lenders their capacity to repay a loan. You also may hear it referred to as a FICO score. A FICO score is a person's credit score calculated with software from Fair Isaac Corporation that can range between 300 & 850. Each individual has their own credit score, unfortunately for most of us we find out too late what it is. Many people make the assumption that because they have never been late that they should have good credit. Then there are some who believe because they were approved for a loan or credit card that they also have good credit. However this is not always the case. We've compiled five factors that influence this all important and many times mysterious magic number.
35% of your score is influenced by account history (how timely you've paid)
30% to current account usage (how much of your credit is being used, with greater amounts being negative) which is that which you have actually used.
15% to length of credit history (the longer the better)
10% to new credit inquiries and accounts
10% to the "credit mix" or variety of credit types present. Below is a list of the most common credit types.
Mortgage - a loan obtained through the conveyance of property as security.
Auto - a loan to purchase an automobile.
Installment - credit that is obtained and paid for in equal installments. i.e. furniture account.
Revolving - credit that is automatically renewed as debts are paid off.
*All definitions are in part from The Finish Rich Dictionary except auto which is from wordnetweb.princeton.edu
What is a credit score? A credit score is a number assigned to a person that indicates to lenders their capacity to repay a loan. You also may hear it referred to as a FICO score. A FICO score is a person's credit score calculated with software from Fair Isaac Corporation that can range between 300 & 850. Each individual has their own credit score, unfortunately for most of us we find out too late what it is. Many people make the assumption that because they have never been late that they should have good credit. Then there are some who believe because they were approved for a loan or credit card that they also have good credit. However this is not always the case. We've compiled five factors that influence this all important and many times mysterious magic number.
35% of your score is influenced by account history (how timely you've paid)
30% to current account usage (how much of your credit is being used, with greater amounts being negative) which is that which you have actually used.
15% to length of credit history (the longer the better)
10% to new credit inquiries and accounts
10% to the "credit mix" or variety of credit types present. Below is a list of the most common credit types.
Mortgage - a loan obtained through the conveyance of property as security.
Auto - a loan to purchase an automobile.
Installment - credit that is obtained and paid for in equal installments. i.e. furniture account.
Revolving - credit that is automatically renewed as debts are paid off.
*All definitions are in part from The Finish Rich Dictionary except auto which is from wordnetweb.princeton.edu
SIX STEPS TO GET OUT OF CREDIT CARD DEBT
1. Pull Out Your Credit Card Statements And Get Them Organized
Pull out your credit card statements and get them organized in file folders. Also you may want to get a copy of your credit report from annualcreditreport.com to make sure there are not any lingering accounts that you are not aware of.
2. Complete Your Budget Worksheet.
Complete a budget worksheet and fill it out completely. Now write down the name each account, the outstanding balance you owe, the minimum monthly payment, and the payment due date.
3. Assign a Number To Each Account
You can calculate it by dividing the outstanding balance by the minimum monthly payment. (For example, say you owe $1,000 on your Visa card and the minimum monthly payment is $50. Dividing $1,000 by $50 gives you a number of 20. Do this for all of your credit card accounts.)
4. Assign a Ranking To Each Account
Assign a ranking to each account. The account with the lowest number is ranked #1. The account with the second-lowest number is #2. And so on.
5. Calendar The Due Dates
Calendar the due dates. Enter the payment due dates for all your credit accounts in your computer’s calendar system. Set your calendar software to remind you of each due date at least five days in advance so you don’t make any late payments and get hit with costly late fees and penalties.
6. Start Paying Down Your Debt
Start paying down your debt. Each month, as the payment due dates approach, make the minimum payment on every account…EXCEPT for the one with the #1 ranking. For that card, make as big a payment as you can manage. Ideally, your payment should be at least double the minimum. (Hopefully, FINDING extra money will make it easier to come up with the money you will need for this.) Once a card has been paid off entirely, you retire it and start paying down the card with the #2 ranking.
This is a good general jump start to your financial future. For more detailed advice you may want to seek a certified credit counselor. Also a lot of banks offer free programs to help you achieve your financial goals.
Thursday, October 18, 2012
NBA & NFL ticket giveaway
NBA & NFL TICKETS FOR 2 ! This month we will be giving away NBA & NFL tickets to those turning in referrals starting midnight tonight. Every 5 files turned in equals 2 tickets at the game of your choosing please choose games with at least 35 days allotment. Tickets are for regular season ONLY, playoff & all-star games EXCLUDED.
Monday, October 15, 2012
Invest In Yourself
Everyday we spend our time and money in various places and with various people but what are we really investing in. Most people are not aware of the fact it is really not that difficult to get approved for a mortgage. I myself personally know lenders that approve people with credit scores as low as 580. Furthermore if I tell an individual that they have been approved for a mortgage and that their interest rate is going to be below 5% most people would believe that that is a great deal. However that's not the case. If a person with a 620 score gets a mortgage the interest rate will be around 4.6% with a payment of $765 & pay $126,000 interest over the life of the loan versus a person who has a 720 w/a interest rate of 3.1% monthly payment of $647 & total interest of about $83,000. The scenario above paints the picture of a good deal versus a great deal or either a good deal versus a better deal. I mean if you get an interest rate below 5% that is not particularly a bad deal but there is a better deal available if that person is willing to make the proper investments in getting their credit score higher. So lets look at the numbers again, not only will you save $118 per month, which is $1,416 a year but also you will save $43,000 over the life of the loan. If we calculate $1416 a year times 30 years which is the average life of a mortgage then that brings the total amount to $42,480. Now if we add the amount you have saved on your monthly payments over 30 years $42,480 plus the interest saved which is $43,000 that amount equates to $85,480. When we look at that amount that is a pretty good amount that's saved imagine if that amount is saved or placed in an interest earning savings account. This is only what a person can save on the mortgage imagine what you can save in auto rates, credit card interest, etc. The greatest investment is one that you can make in yourself. Decide to make an investment in your future today.
Monday, September 17, 2012
Bush Tax Cuts to Expire
The Bush tax cuts are set to expire at year-end. Plus, the new 3.8% Medicare surtax on investment income collected by higher-income individuals is scheduled to take effect next year. The combined tax-hiking impact of these two events has been dubbed “Taxmageddon.” And if you flip real estate or own rental properties, you could be a victim of your own version of Taxmageddon. Here’s what to consider.
Starting in 2013, the maximum federal income-tax rate on most long-term gains from real property sales is scheduled to be 20% (up from the current 15%). However, a lower 18% maximum rate will apply to long-term gains from properties acquired after Dec. 31, 2000, and held for more than five years (up from 15%).
If you sell a rental property for a gain, a higher 25% maximum rate will apply to the amount of gain attributable to your cumulative depreciation write-offs (same as the current rate). Remember: Those depreciation write-offs can actually cause a taxable gain when a rental is sold for less than the amount you invested (because your basis in the property for gain/loss purposes is reduced by depreciation deductions).
Short-term gains from real property sales and positive operating income from rental properties (when rental income exceeds your tax write-offs, including depreciation) will be taxed at a maximum rate of 39.6% (up from 35%).
3.8% Medicare surtax
Starting in 2013, higher-income individuals may also get hit with a new 3.8% Medicare surtax on all or part of their net investment income. For purposes of this new surtax, net investment income includes gains from flipping properties, gains from selling rental properties and positive operating income from rentals -- unless you materially participate in the flipping or rental activity (more on the material participation issue later).
The good news: You won’t be hit with the surtax unless your modified adjusted gross income (MAGI) exceeds the applicable threshold, which depends on your filing status. The thresholds are as follows.
$200,000 if you use single or head-of-household filing status.
$250,000 if you are a married joint filer.
$125,000 if you use married, filing-separately status.
The amount subject to the 3.8% Medicare surtax is the lesser of (1) your net investment income or (2) the amount by which your MAGI exceeds the applicable threshold. MAGI equals regular AGI from the bottom of page 1 of Form 1040, plus certain tax-free income from foreign sources that only a few taxpayers have.
This article was originally published By Bill Bischoff with Market Watch and the Wall Street Journal.
Starting in 2013, the maximum federal income-tax rate on most long-term gains from real property sales is scheduled to be 20% (up from the current 15%). However, a lower 18% maximum rate will apply to long-term gains from properties acquired after Dec. 31, 2000, and held for more than five years (up from 15%).
If you sell a rental property for a gain, a higher 25% maximum rate will apply to the amount of gain attributable to your cumulative depreciation write-offs (same as the current rate). Remember: Those depreciation write-offs can actually cause a taxable gain when a rental is sold for less than the amount you invested (because your basis in the property for gain/loss purposes is reduced by depreciation deductions).
Short-term gains from real property sales and positive operating income from rental properties (when rental income exceeds your tax write-offs, including depreciation) will be taxed at a maximum rate of 39.6% (up from 35%).
3.8% Medicare surtax
Starting in 2013, higher-income individuals may also get hit with a new 3.8% Medicare surtax on all or part of their net investment income. For purposes of this new surtax, net investment income includes gains from flipping properties, gains from selling rental properties and positive operating income from rentals -- unless you materially participate in the flipping or rental activity (more on the material participation issue later).
The good news: You won’t be hit with the surtax unless your modified adjusted gross income (MAGI) exceeds the applicable threshold, which depends on your filing status. The thresholds are as follows.
$200,000 if you use single or head-of-household filing status.
$250,000 if you are a married joint filer.
$125,000 if you use married, filing-separately status.
The amount subject to the 3.8% Medicare surtax is the lesser of (1) your net investment income or (2) the amount by which your MAGI exceeds the applicable threshold. MAGI equals regular AGI from the bottom of page 1 of Form 1040, plus certain tax-free income from foreign sources that only a few taxpayers have.
A tour through Taxmageddon territory
The following example illustrates how real-estate investors could find themselves in Taxmageddon land next year. Please bear with me on the length of the example, because you really need to understand this stuff.Meeting the material participation standard for real estate
Here’s a shred of good news: You won’t owe the 3.8% Medicare surtax on profits from selling or operating rental properties or flipping properties if you are considered to materially participate in those activities. However, it’s hard for most folks to meet the material participation standard for rentals (either you or your spouse must individually spend at least 750 hours during the year on real estate activities). It could be fairly easy to meet the standard for flips (spending 100 hours might be enough). For full details on meeting the material participation standard, see IRS Publication 925 at 47 IRS.gov.The last word
It’s possible that Taxmageddon will never happen. The Bush tax cuts could be extended and the Medicare surtax could be repealed. If so, the 2013 tax hit on real-estate investors won’t be any worse than the 2012 tax hit. The outcome probably depends on how the Nov. 6 election turns out. Stay tuned!This article was originally published By Bill Bischoff with Market Watch and the Wall Street Journal.
Monday, December 26, 2011
Rebound Shopping
Rebound Shopping
by Tonya Foster
Didn't get what you want for Christmas? Passed up on buying that item that was a little too expensive to by someone else something? Then you may be susceptible to rebound shopping.
We may have heard the term rebound as it relates to basketball. It is when one player shoots the ball and misses a shot, then another player catches the ball as it comes off the rim before any of the other players has a chance to grab it.
Perhaps we may be more familiar with rebound relationships. This is where an individual is in a very meaniful relationship then that relationship ends then another person hops quickly back into another relationship without properly healing emotionally.
In both of the previously mentioned scenarios the latter happens quickly usually without much thought. This happens everyday to consumers, especially the week after Christmas. According to retail industry of http://www.about.com 43% percent of people planned to make a purchase on December 26th and 47% of U.S. consumers said they would be doing more shopping in the week between Christmas and New Year's.
The danger is that this behavior can cause consumers to go even deeper into debt than what they already did before Christmas. This is further complicated by after Christmas sales offered by retailers with promises of never before seen savings. Coupled with "holiday euphoria" this further complicates budgeting and planning for the upcoming year, often resulting in this continuous cycle year after year.
Plan to make a budget to avoid repeating the same steps this upcoming year, also check with your bank to see if they offer Christmas Club savings accounts. These accounts allow you to save a set amount each month to reach a predetermined year end goal. Whatever you decide make sure you take time to think about the consequences of your purchases both immediate and future.
by Tonya Foster
Didn't get what you want for Christmas? Passed up on buying that item that was a little too expensive to by someone else something? Then you may be susceptible to rebound shopping.
We may have heard the term rebound as it relates to basketball. It is when one player shoots the ball and misses a shot, then another player catches the ball as it comes off the rim before any of the other players has a chance to grab it.
Perhaps we may be more familiar with rebound relationships. This is where an individual is in a very meaniful relationship then that relationship ends then another person hops quickly back into another relationship without properly healing emotionally.
In both of the previously mentioned scenarios the latter happens quickly usually without much thought. This happens everyday to consumers, especially the week after Christmas. According to retail industry of http://www.about.com 43% percent of people planned to make a purchase on December 26th and 47% of U.S. consumers said they would be doing more shopping in the week between Christmas and New Year's.
The danger is that this behavior can cause consumers to go even deeper into debt than what they already did before Christmas. This is further complicated by after Christmas sales offered by retailers with promises of never before seen savings. Coupled with "holiday euphoria" this further complicates budgeting and planning for the upcoming year, often resulting in this continuous cycle year after year.
Plan to make a budget to avoid repeating the same steps this upcoming year, also check with your bank to see if they offer Christmas Club savings accounts. These accounts allow you to save a set amount each month to reach a predetermined year end goal. Whatever you decide make sure you take time to think about the consequences of your purchases both immediate and future.
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