In our of articles about Second Life, the enormously popular
make-believe on-line universe, we come back to the question of whether
one can or WHY on earth they would own virtual real
estate.
Anshe Chung would probably give you a loud and
clear "yes." Chung is the avatar of a Chinese-born teacher living in
Germany who claims to own about a million dollars in virtual
land in Second Life; land that she buys, sells, leases, and
employs several people to help her manage...
The Consumer Bankers Association today released a document to clarify and reaffirm banks’ dedication to their student loan customers. The publication of CBA’s Education Loan Customer Commitment is intended to reinforce that bank lenders operate at the highest level of ethical standards as well as under longstanding federal regulations.
The commitment addresses key areas of public concern and was announced by CBA President Joe Belew. CBA is the recognized voice on retail banking issues in the nation’s capital.
“Students, their families, and the educational institutions are our highest priority,” said Belew. “We understand that seeking funding for higher education and planning for the financial future can be a challenge.
By publicizing our commitment to our customers, we are seeking to continue the well-earned public trust in the lenders that participate in the Federal Family Education Loan program, a trust that has prevailed for over four decades.”
The full Consumer Bankers Association Education Loan Customer Commitment is published online at . Key points include:
Borrowers will be fully informed of their right to choose a student loan provider regardless of school preferred lender lists. Further, the criteria used by schools to create a preferred lender list should exclusively reflect the best interests of borrowers and should be fully disclosed.
Lenders will not provide anything of value to a school, school employee or school affiliate or provide private loan products in exchange for a commitment of any kind relating to FFELP loans.
Lenders will fairly and accurately disclose terms and conditions related to their loan products and will encourage maximizing use of grants, scholarships and other federal student assistance before borrowing private, non-federal loans.
Lenders will not engage in marketing practices that may place the employee in a position of (or having the appearance of) a conflict of interest.
“The Association is committed to continuing to work at the highest level of ethical practices in the best interest of students, their families, and with educational institutions to increase awareness of the full range of financial aid opportunities and to promote access to higher education through the student loan programs,” said Belew.
CBA has also launched an informational web site to provide guidance to students and families in navigating often complex educational loan programs. The site can be found at .
CBA was founded in 1919 and provides leadership, education, research and federal representation on retail banking issues such as privacy, fair lending, and consumer protection legislation/regulation. CBA member institutions are the leaders in consumer financial services, including auto finance, home equity lending, card products, education loans, small business services, community development, investments, deposits and delivery and include most of the nation’s largest bank holding companies as well as regional and super community banks that collectively hold two-thirds of the industry’s total assets.
Maybe it is just temporary, but it looks like the worm - that is the
mortgage interest rate version of it - has finally
turned.
Freddie Mac's Primary Mortgage Market Survey for the previous week had
some pretty heart-stopping data for those who may have hoped for
continued low rates. However, this is similar to a
pattern begun just about a year ago when rates moved into the
high 6.80 percent range over a three month spring and summer period only
to reverse and achieve a long term run in the 6.06-6.20 percent range.
Who knows where it will go this time...
Real-estate shares surged on the $13.5 billion takeover of Archstone-Smith Trust, propelling U.S. stocks to their second straight advance and the Standard & Poor’s 500 Index to within 10 points of a record.
Property companies accounted for seven of the 10 top gains in the S&P 500, led by Archstone-Smith Trust, the second-largest U.S. apartment real-estate investment trust. Avaya Inc., the world’s biggest maker of corporate telephone equipment, climbed the most in almost two years on a report it may be acquired.
More than $1 trillion in buyouts is driving the U.S. stock market’s best first-half rally since 2003. Members of the S&P 500 are trading at 17.9 times earnings, about half the price-to- earnings valuation when the index climbed to its March 2000 record.
“The market still is trading at fairly attractive valuation levels,'’ said Michelle Clayman, who oversees $6.2 billion as chief investment officer at New Amsterdam Partners in New York. “It’s supported by deals and underlying fundamentals.'’
The S&P 500 increased 2.38, or 0.2 percent, to 1518.11. The index set a record close of 1527.46 in March 2000. The Dow Jones Industrial Average added 14.06, or 0.1 percent, to 13,521.34. The Nasdaq Composite Index climbed 14.87, or 0.6 percent, to 2572.06. U.S. exchanges were closed yesterday for the Memorial Day holiday.
Real-Estate Rally
Archstone-Smith surged $6.19, or 11 percent, to $61.42 for the second-steepest advance in the S&P 500. Tishman Speyer Properties LP, the New York-based real-estate investor, and Lehman Brothers Holdings Inc. agreed to buy Archstone for $60.75 a share, the companies said in a statement.
The total value of the transaction including debt is $22.2 billion, the companies said.
A gauge of real-estate companies in the S&P 500 rose 4.1 percent. Simon Property Group Inc. gained $3.52 to $105.40. Equity Residential jumped $3.20 to $50.75.
Avaya rose $2.09, or 15 percent, to $15.76, its biggest advance since July 2005. SilverLake Partners is in talks about a buyout of the telephone-equipment maker, according to the Wall Street Journal.
The report heightened speculation Avaya may be close to a deal after the company last week postponed a meeting with analysts that had been set for May 31 and didn’t give a reason. Avaya spokesman Jim Finn and Matt Benson, spokesman for SilverLake, declined to comment.
Confidence Rising
Stocks pared gains after the New York-based Conference Board’s index of consumer confidence rose to 108 this month from 104 in April. Economists in a Bloomberg survey expected a reading of 105. Some investors said the report reinforced concerns inflation could accelerate and cause the Federal Reserve to raise borrowing costs.
“There is a nontrivial possibility that the next move by the Fed'’ will be to increase interest rates, said New York-based Abhijit Chakrabortti, head of global equity strategy at JPMorgan. “The big risk to equities is not growth risk. It is really inflation risk.'’
Investors will get more clues about the outlook for interest rates tomorrow when the Fed releases the minutes from its May 9 meeting.
Shares of CDW Corp. added $7.55 to $83.11. The supplier of computers and software to businesses and governments may be bought by a private-equity firm, the Journal reported, citing two people familiar with the matter.
Madison Dearborn Partners LLC is thought to be the leading contender to buy CDW, which has a market value of about $6 billion, the newspaper said. Calls to CDW spokesmen Gary Ross and Clark Walter weren’t returned. John Canning, chairman of Madison Dearborn, wasn’t available for comment.
Other Takeovers
URS Corp. added $2.38 to $49.27. The design-and-engineering company agreed to buy rival Washington Group International Inc. for about $2.6 billion to expand its business managing nuclear- power and infrastructure projects. Washington Group jumped $15.07 to $85.04.
Alcoa Inc., which made an unsolicited $27.7 billion takeover offer for Alcan Inc. on May 7, fell 53 cents to $40.37.
Europe’s Norsk Hydro ASA and Rio Tinto Group may bid for Alcan, according to newspaper reports, raising expectations of a bidding war with Alcoa.
Norsk Hydro is preparing a bid valued at more than $30 billion for Alcan, the Globe and Mail reported, citing bankers close to both companies who weren’t named. Rio Tinto, the world’s third-largest miner, hired Deutsche Bank AG to advise it on a possible Alcan bid, the Age newspaper reported, without citing anyone. Shares of Alcan added $1 to $86.
Also fueling takeover speculation, Royal Bank of Scotland Group Plc, Santander Central Hispano SA and Fortis offered 71.1 billion euros ($95.6 billion) for ABN Amro Holding NV, trumping Barclays Plc in the largest banking takeover.
Crude-Oil Selloff
Energy producers fell after crude oil plunged $2.05 to $63.15 a barrel in New York on signs that U.S. gasoline supplies will be adequate to meet summer demand and after Nigerian oil workers ended a strike.
Exxon Mobil Corp., the world’s largest publicly traded oil company, fell 89 cents to $82.62, leading energy producers to a 0.9 percent drop, the steepest retreat among 10 industry groups in the S&P 500.
The gain in stocks was also buffeted after the official Xinhua News Agency said China’s government tripled the stamp tax on securities trades to 0.3 percent from 0.1 percent, effective May 30. The Bank of New York China ADR index fell 1 percent.
Bausch & Lomb, Advanced Medical
Bausch & Lomb Inc. slumped $2.59, or 3.7 percent, to $67.90, the steepest decline in the S&P 500. Rival eye-care company Advanced Medical Optics Inc. recalled a contact lens solution linked to a cause of blindness and withdrew its earnings forecast, jeopardizing its plans to enter a bidding war for Bausch & Lomb, analysts said. Advanced Medical fell $5.51, or 14 percent, to $34.69.
Some homebuilders fell after a report showed home prices in the U.S. dropped last quarter for the first time in almost 16 years, as 13 out of 20 cities reported declines in March.
The value of a house dropped 1.4 percent in the first three months of the year from the same period in 2006, according to a report today by S&P/Case-Shiller.
D.R. Horton Inc., the second-largest U.S. homebuilder, fell 10 cents to $23.43. NVR Inc., the seventh biggest, slid $7 to $803.
The Russell 2000 Index, a benchmark for companies with a median market value of $678 million, gained 0.9 percent to 837.53. The Dow Jones Wilshire 5000 Index, the broadest measure of U.S. shares, added 0.3 percent to 15,315.66. Based on its advance, the value of stocks increased by $58.1 billion.
To contact the reporter on this story: Eric Martin in New York at .
Feeling the pinch of unpaid bills every month? Don’t worry, you are not alone! There are millions of people in the US, who are struggling with bad debts and poor credit ratings. To the extent, getting loans and mortgages at reasonable rates have become tough. This is where a bad debt consolidation program from a good comes to your rescue.
The advice you will always hear when you discuss your financial problems is “Try to clear your bills every month on time”. Easier said than done! Nevertheless, always remember, when you apply for a loan in an emergency, the lender cannot refuse if you have a good credit rating.
So how do you improve your credit ratings? Simple. Visit a debt consolidation company.
How Can a Debt Consolidation Company Help You?
A professional debt consolidation company will help you manage your finances. A financial consultant will look through all your financial details with special interest on your expenses and your bad debts. He will then put forward the options you have to improve your credit ratings. Look out for the best .
You can opt for a debt consolidation program where the debt consolidation company talks to your creditors and manages to get your interest rates reduced or the due date deferred. This option, however, will not do any good if you want to improve your credit ratings soon.
You can also opt for a loan that you can use to repay your all bad debts and instantly improve your credit ratings. You may have to mortgage your house or jewelry for this loan. You will have to pay attention to a single lender after that- the debt consolidation company. Before you opt for this program, be sure you can repay the loan- the interest rates can be very high!
Finally, you can opt for a debt consolidation program where the debt consolidation company will manage your debts and your accounts. You have to send the company a pre-determined amount every month and the debt consolidation company will distribute the amount amongst creditors every month. That way, your debts will be cleared slowly but steadily. Always remember to keep a tab on the amount of bills you clear off via the debt consolidation company.
Fraud Debt Consolidation Companies
Recognize a fraud debt consolidation company before they locate you! Yes, these companies usually track the people with poor credit ratings and lure them into their nets. There may be situations where you will find pamphlets and advertisements in your letterbox that boast of clearing off all your bad debts and improving your credit ratings within months. Read between the lines, Will they give you a monthly statement that they are indeed clearing off your debts? Will they charge you for their services before they start? Are they willing to meet you personally- in case it’s an ad for online debt consolidation? What are their interest rates? Can you afford it? Will they ask for a security? These are some of the numerous questions you must ask yourself and the company, before you jump onto the bandwagon.
Remember, either a bad debt consolidation company can bail you out of your trouble or it can act as a quicksand pit.
A can be your best bet to improve your credit rating and to help you out of the debt trap. Look out for the and lead a tension free life. offers more details about the process and benefits of selecting a debt consolidation program.
As you may have heard or even experienced first hand, the amount of debt people are coming out of college with continues to increase. There is a lot of information out there such as one recent study by the that shows over 50% of all college students are coming out of college with loan debt and the average loan amount is over $10,000. This is scary since the average cost of college increases at twice the rate of inflation.
This is where comes into play. Students and many others looking for debt help have many options with using Debt Help. Students and professionals with credit card debt, bad credit or in bankruptcy looking for debt help and credit counseling can benefit from this company.
A snapshot of the company can be taken from their website:
DebtHelp is a private company that serves the American consumer with solutions for their debt.
We serve the community by providing a direct link between you and our network of thousands of service providers and lenders across the country.
Using our advanced service matching technology will help you receive the best rates or terms available to better manage or eliminate your debt.
What I like about DebtHelp dot com is that the website is easy to follow and it offers debt help and navigation guides in the following major areas:
Debt Consolidation (Loan Consolidation, credit counseling and debt settlement)
Loans (Mortgage refinance, second mortgage, home equity loan, home equity line)
Taxes (Offer in compromise, IRS payment plans, penalty abatement, tax liens, business tax relief, etc.)
Manisha Thakor and Sharon Kedar (the authors of , read my here) answer your questions. Special thanks go to K.L., their PR rep, for setting this up, and of course to Manisha and Sharon for taking the time to do the Q & A.
1. How do you decide if you really need to see a financial planner, and what qualifications should you look for?
A: Unless your situation is very complex, a combination of taking personal responsibility by educating yourself on the basics of personal finance (by reading a solid primer like ON MY OWN TWO FEET!) plus working with a reputable discount brokerage firm for your investing should get most people where they want to go. The three largest discount brokerage firms - Vanguard, Fidelity, and Schwab - are great places to get started, as their staff will answer basic questions and help you set up a program of low cost investing.
If you have a very complex financial situation, simply want the hand holding, or have substantial assets, than consider a financial planner. Financial planners typically charge you two ways: either as a percent of your money that they charge on an annual basis or on an hourly basis. Our preference is for the latter. For a fee-based planner in your town that charges based on their time, check out garrettplanningnetwork.com, napfa.org, or fpanet.org.
2. If you could only give out one piece of financial advice to the women of the world, one which they would remember and make use of, what would it be?
A: Start saving now. Striving to save 15% of your gross (pre-tax income) is one of the best gifts a woman can give herself. The breakdown of that savings is roughly 5% for your emergency fund & savings for big-ticket items (such as home/car down payment) and 10% for your retirement. Even if you can only save a small amount of your income today, that’s okay. Knowledge is power. With an eye on your end goal you CAN get there.
The reason it is so important to start saving now is that the more time you have, the more magical your finances can become because your money can grow faster by earning profit on your profits. Take the simple example of Amy and Zandra. Both save $5,000 a year for 10 years and invest their money in a similar manner. The only difference is that Amy starts saving 20 years earlier, at age 21 compared to Zandra who starts at age 41. The result? Amy ends up with over $2 million in her nest egg while Zandra has $300,000. That is the power of starting early!
3. What are your thoughts on couples keeping their finances completely separate (aside from shared expenses like groceries, housing etc)?
A: This is a highly personal decision. The key to successfully balancing your heart and money is communication. We highly recommend getting “financially naked.” Both partners should know the other’s financial situation and you should be clear about who does what financial chores. An annual check up is also a must. When doing this check up, review what you own, what you owe, your budget, and your credit reports. Beyond that, whether you do the financial three-way (yours, mine, our bank account) or merge finances is up to you. One caveat: if you are questioning your partner’s financial abilities, the “three-way” may allow you to sleep better at night!
4. How do you think the media rates in terms of teaching women lessons about finance?
A: The big secret about personal finance is that it doesn’t have to be complex. Remember that the next time you turn on the TV and learn about a “can’t miss” stock tip or hear about some esoteric advice about using a “currency overlay strategy.” It has often been said that “we are drowning in information and starved for knowledge.” Nowhere is this truer than in the realm of personal finance. The best personal finance strategies more often than not are the simple ones. That’s not sexy TV!
5. What advice can you give to people who do not want to be homeowners? It seems like very personal financial articles (and blogs) out there says one of the only ways to financial security is to own a home. Is there an alternative? Do you have any sound advice for someone that doesn’t want the headache of being a homeowner but still want to be financially secure and independent?
A: Actually, while homeownership can be a great thing, we don’t believe it’s “one of the only ways to financial security.” The big key to financial security is to save your money early and often and invest wisely. The reason everyone touts the benefits of homeownership is that, using a traditional 30-year mortgage, historically buying a home was a great way to have “forced savings” (i.e. every month you pay your mortgage, and thus you are slowly building up equity or “savings” in your home).
However a home isn’t the only place you can save - you can also save in a 401(k), IRA, or taxable brokerage account. Our rough rule of thumb is to set aside 15% of your gross income in savings. Of that, about 5% will be earmarked for your emergency fund & big-ticket items and the remaining 10% for your retirement. (Note, you will have to save more than 10% for your retirement if you are in your 40s and haven’t yet started saving.)
6. If you have money in a Roth IRA (say, 3-5 years’ worth of contributions) and you want to buy a house, is it worth taking the money out of the Roth in order to make a larger down payment? Or is it better to leave the Roth alone and just put down whatever cash you can? What assumptions would sway you toward one option vs. the other?
A: We’d STRONGLY suggest you leave your Roth alone. Remember, the money you save early on for your retirement is the most valuable as it has the most time to save and grow. Our feeling is that if the only way you can afford to make a down payment on a house is to raid your Roth, you are not financially ready to have a house.
7. This is career related - how do you sell yourself in an informational interview or any interview (I’m calling up a few places, showing them my work and what I can offer them when you took a short break from the industry but just recently gained new experiences that would be relevant to the company)?
A: While career advice is not our area of expertise, we have a dear friend who just wrote a wonderful book on the subject. It’s called GETTING FROM COLLEGE TO CAREER by Lindsey Pollak. It’s available on Amazon, and is an inexpensive paperback book chalk full of good suggestions on this subject. While the author (a dynamic Yale grad) is targeting the newly graduated, we are both in our 30s, over a decade out of college, and still found ideas for improving our career potential in the book that we hadn’t thought of before.
8. On the topic of emergency funds: how do you decide where on the spectrum of “3-6 months’ expenses” your emergency fund should fall? Who needs to save three months’ expenses, and who needs to save six months’ expenses?
A: It depends on two factors: (1) are you part of a one-income or a two-income household, and (2) what’s your risk tolerance. For people who are part of two-income households, you can aim for 3 months because if one of you loses your job, there’s a bit of a safety net with the second income. If you are part of a one-income household, you’ll want to aim for the 6 months. As with most things financial, these are rough guidelines, not absolutes and thus your personal risk tolerance also comes into play.
9. Why did you recommend a S&P 500 index fund instead of a target retirement fund or lifestyle fund (where the fund is more diversified in terms of small-cap, international, bonds, etc.) for investors who want a one-stop fund?
A: To be clear, the S&P 500 is our first choice, but a VERY close second is a target retirement or lifestyle fund. We’re splitting hairs here as they are both great options. On the margin our bias it to the S&P 500 because it has lower fees and some (but not all) target & lifestyle funds have a higher ratios of bonds and cash than we like to see for a younger person’s portfolio. Also, in terms of diversification between small cap, international and so forth, studies are showing that in an increasingly global market place one of the key benefits of such delineation - lower correlation - is breaking down. As large companies in the S&P 500 increasingly do business with small companies and in overseas markets, the behavior of all the asset classes over the long run starts to converge. That said, one really can not go wrong with either option!
10. What role do you see personal finance or investing blogs play and how do they affect/compare with traditional media?
A: We think personal finance blogs are GREAT! The number one thing we like about them is that they encourage people to talk and communicate about a subject that all too often goes ignored. The more people realized how overwhelmed other people feel in trying to take charge of their finances, the more it help increase people’s receptivity to asking the basic, important questions about finance. We also think bloggers serve as a wonderful “checks-and-balances” system to make sure the most important personal finance issues are getting the airspace they deserve.
Aside from interest and finance charges, credit card companies are also making money with fees such as late payment penalties and pay-by-phone charges. But there ways around the fees.
A new found card holders are being charged anywhere from $15 to $39 for such actions as paying by phone or making payments late. That’s even if they’re only a couple of hours late.
Most major credit card issuers also have the right to change their terms for any reason at any time.
The Government Accountability Office estimates interest and penalties make up about 70 percent of the credit card industry’s revenue.
So instead of paying by phone, you may want to consider paying your bill online. For most credit card companies, that’s free of charge.
And another way to avoid late fees is by automating your monthly payments, either online or through your checking account.
If you’re charged a late fee but you usually pay on time, call to complain. Many credit companies will waive late fees at least once for customers with good payment records.
We all need Credit Cards simply for security and convienience. What are the features that you are looking for in a Credit Card? How about features and benefits such as these:- No Annual Fees. 0% on purchases until January 2008.
0% on transfers until August 2008. Credit Limit of 7,500 British Pounds.
An APR of 14.9%. Free Supplementary Cards.
Chip and Pin Security. Up to 56 days interest free on purchases.
These are some of the Features and Benefits of the Mint Credit Card that are so very attractive! If you are keen visit interest free credit card Mint Credit Card also has a worldwide acceptance at 24 million locations, 24-hour Service Customer Service and not to mentioned the many prizes to be won from draws. Now they are having a Bonus Offer until 1st April 2009 on balance transfers at 2.5% Fee!
Are your debts spiraling out of control? Do you feel helpless against the mounting debt-hill? Are you getting that sinking feeling that the payments you are making are just not enough to help you get rid of your outstandings? Maybe then, it’s time you called for expert help.
The general rule in debt consolidation is that the more you are concerned about your credit, the longer it will take and the more it will cost to consolidate. World around, interest rates are peaking, and this makes the situation even worse. But with proper help and counseling, you will find out that it’s quite possible to do away with your debts quicker – the essence is time, as interests multiplies with days, and you need to get that bit of the mathematics in firm control. Presenting Debt-Help.Com, your one-stop solution for all your debt consolidation needs. Whether you are looking to , need credit counseling or simply get rid of your debts faster, Debt-Help can be your perfect partner.
With an increasingly mind-boggling number of options available, it is becoming impossible for an individual to weigh each option against one’s needs to find out the best opportunities. Yes, opportunities! Often we end up taking decisions based on the information we have about a few options, or the ones that your friends or relatives have told you about. What may happen is that you miss out on an opportunity – because each individual’s debt management requirements are different. While your colleague may be getting bogged down by the magnitude of his home loan, you may be primarily needing ‘credit card debt-help’.
There is a huge variance in interest rates across various financial products, each with its own set of sub-clauses. With Debt-Help, you can rest assured that there will be a team of ‘debt-management’ and ‘credit-counseling’ experts who are equipped with the latest technology and up-to-date information on the tools of the finance markets. Let the experts understand your requirements, and they will choose the best solutions for your debt-problems
Payday loans are debts that most people cannot handle even if they make lots of money. If you have already sunk yourself with some, you may be able to receive a consolidation at Prosper.com to get the interest rates under control.
Lenders there can see your situation as you explain it, along with some data from your credit history, and can also read between the lines to figure out - are you chronically bad at managing money - or was this a one time honest mistake? I lend to people there who are generally good people but accidentally got caught in the payday loan trap and would not continue delinquent behavior once the loans were consolidated.
Payday loans are dangerous because people who are already short on money are entering into a high interest situation. Now, it isn’t called interest, it is called fees. But the fees, if annualized, can be comparable to interest running in the hundreds of percent, such as 300%, or 500%. The way it is phrased, that the cost may be $9.31 per $100 borrowed, gets people to think that it is 9.31% APR. But no, that is the cost for TWO WEEKS, for example. If you were to multiply that by 26 to get the cost per year, that example is 242.06% APR. This is the way I am understanding it, anyway. If I find a better explanation that pokes holes in my logic, I will let you know later. To add insult to injury, most people spend their paychecks just keeping the FEES paid, never touching the principle. So after months or a year they may still owe the original $100.
People who are short on money will only be MORE short on money after paying out tons of money in fees but not paying off the original amount borrowed. 90 some percent of people cannot handle payday loans. And only 1% of people really use them to their benefit, one source said.
Like I was saying, if you have already gotten stuck in this trap, go to Prosper.com and get a listing up and see what happens.
