Finance Archives

A lot of us start out investing in different Mutual Funds for retirement because we feel that we need to be more aggressive in building up our portfolio.  Now that retirement is just around the corner or maybe it’s already arrived, it may be time to move that portfolio into something more stable.  Here’s a couple ideas to do that .

In a previous article, I discussed various ways that investors can accumulate their nest egg. One strategy includes putting a portion in one or a few attractively valued dividend growth stocks every single month and reinvesting dividends selectively. The other strategy involved investing in index funds, using tax advantaged accounts such as 401(k) for example.

Traditional vehicles for saving such as index funds and target-date funds work well when you accumulate your nest egg, but could present a challenge if you try to live off them. Many retirees prefer to have a stable and growing source of income, which maintains purchasing power over time, and is not dependent on the manic-depressive swings in stock prices. Therefore, investing in dividend growth stocks is the ideal way to generate income from your nest egg in retirement, due to the stability of dividend income. Therefore, if someone were to accumulate their nest egg in other items such as index funds, but wanted to convert to dividend investing, there are two ways that they can achieve that.

The strategies outlined in this article also work for situations where you have a lump sum amount, and you are thinking of investing it.

The first strategy involves selling all funds in your portfolio, and using the proceeds immediately to create a diversified portfolio of quality dividend-paying stocks.

This strategy is quick and easy to achieve, as it involves just a few steps. If you want to make the conversion all at once and not have to worry about how to invest the amounts for months, this is likely the best deal for you. If you could find 20-30 quality dividend-paying companies, which are also attractively valued, and your money is spread in several sectors, you could be done with this exercise in one day. After that, the only thing to worry about would be to monitor the investments, decide what to do with dividend income, and enjoy life.

 

Read more on Dividend investing

Investment Strategies When Interest Rates Rise

Low interest rates are great for us as consumers as it makes it easier to make our mortgage payments, car loans and ongoing credit card debt. But it’s not so great when we’re looking for the best return on our investments. Walter Davis has some answers about investing when rates begin to rise.

As I travel across the country meeting with financial advisors and their clients, a common concern I hear voiced is “how can I position my portfolio for when the inevitable happens and interest rates start to rise?” In response, I state that certain types of alternative investments are well suited to help prepare portfolios for rising interest rates in the future, while also potentially adding value in the present.

Specifically, I highlight four different types of alternatives for clients to consider:

  • Senior loans (also known as bank loans, senior secured loans and/or leveraged loans) – Senior loans are loans made by banks to non-investment grade companies, commonly in relation to leveraged buyouts, mergers and acquisitions. The loans are called “senior” because they are contractually senior to other debt and equity, and are typically secured by collateral.

Given that the loans are made to non-investment grade companies, the yield associated with them tends to be higher than on investment grade corporate bonds.1 For example, as of the end of May, senior loans were yielding 5.51% versus a yield of 2.99% on investment grade corporate bonds.

See the full article by Walter Davis

 

Stock-VectorsA majority of investors today are well versed in the myriad of investment vehicles and strategies available for creating and maintaining wealth. Also, like most investors we all have our own comfort zone when it  comes to investing in some of these strategies. So it came as no surprise when a survey conducted by John Hancock showed that up to 70% of these investors prefer to have some control of where their money is actually going. Read the full article below…

 

BOSTON, July 20, 2015 /PRNewswire/ — Nearly 70 percent of investors say they act as partners with their financial advisors in exploring options and making final decisions regarding financial matters, according to a recent John Hancock survey, while one quarter say they accept what their advisor recommends for them. Many investors feel that listening and partnering pays off, as 34 percent report that the value of their investments has increased substantially due to their advisors’ recommendations.

The findings were drawn from the second quarter 2015 John Hancock Investor Sentiment Survey, a quarterly poll of affluent investors.  The survey measures investors’ feelings about the current economic climate and their evaluations of what represents a good or bad investment given the current environment. The poll also asks consumers about their confidence in reaching key financial goals and likelihood of purchasing financial products and services.

Asked how they liked to interact with their financial advisor, the most popular choice was on a face-to-face basis (70 percent), while nearly as many indicated a desire for telephone contact. Very few cite text messaging (five percent), Skype/video chat (two percent), social media or podcasts (less than 0.5 percent) as their communication preference.

The survey found that investors primarily look to advisors for a plan to manage their investments (70 percent). Two-thirds work with an advisor to develop a retirement plan.  Half of those surveyed said they look to their advisor to produce a comprehensive financial plan for major life events and goals. Only 20 percent of investors say their advisors made recommendations or a plan to deal with the risk of death, disability, critical illness or other risks.

When it comes to improving their experience with a financial advisor, 30 percent of investors say more in-person interaction would improve their experience. Nearly 20 percent say that regular electronic updates about the account are a good way to improve client experience.

About the John Hancock Investor Sentiment Survey
This online survey was conducted by independent research firm Greenwald & Associates.  A total of 1,064 investors were surveyed from May 11th to May 22nd, 2015. To qualify, respondents were required to participate at least to some extent in their household’s financial decision-making process, have a household income of at least $75,000, and assets of $100,000 or more. The data were weighted by age and education to reflect the population of Americans matching the survey’s qualification requirements. In a similarly-sized random sample survey, the margin of error would be plus or minus 3.1 percentage points at the 95 percent confidence level.  Due to rounding and missing categories, numbers presented may not always total to 100 percent.

About John Hancock Financial and Manulife
John Hancock Financial is a division of Manulife, a leading Canada-based financial services group with principal operations in Asia, Canada and the United States. Operating as Manulife in Canada and Asia, and primarily as John Hancock in the United States, our group of companies offers clients a diverse range of financial protection products and wealth management services through its extensive network of employees, agents and distribution partners. Assets under management by Manulife and its subsidiaries were C$821 billion (US$648 billion) as at March 31, 2015. Manulife Financial Corporation trades as ‘MFC’ on the TSX, NYSE and PSE, and under ‘945’ on the SEHK. Manulife can be found on the Internet at manulife.com.

The John Hancock unit, through its insurance companies, comprises one of the largest life insurers in the United States. John Hancock offers and administers a broad range of financial products, including life insurance, annuities, investments,  401(k) plans, long-term care insurance, college savings, and other forms of business insurance. Additional information about John Hancock may be found at johnhancock.com.

SOURCE John Hancock Financial

CONTACT: Beth McGoldrick, (617) 663-4751, bmcgoldrick@jhancock.com

RELATED LINKS
http://www.jhancock.com

Small Business Owners-Look Here Before You Leap

Dr. Michael D. Ames, Professor of Management at California State University Fullerton and founder of University’s Small Business Institute, wrote a textbook twenty years ago that outlines some of the struggles that small business owners face when launching and managing their company. This textbook, “Small Business Management,” has been so influential that the Small Business Administration (SBA) cites it on their website.

The original list found on the SBA’s website consisted of 10 major reasons for small business failure, some of which include lack of experience, over-investment and poor inventory management.

While Dr. Ames says that list and his textbook still offer small business owners very valuable information, he “would overlay it with another list of 20 years or more of experience.”

In an exclusive interview with loans.org, Dr. Ames expanded on each of the 10 SBA-cited reasons for small business failure, providing further insight into what exactly it takes to be a “success” in today’s ever-changing economic climate.

One highlight of the interview points to Dr. Ames’ discussion of insufficient capital.

Dr. Ames said that many businesses spend huge amounts of money before they ever understand what their targeted demographic actually wants.

He said business owners end up “building what they want versus what the customer needs.” Then, when all is said and done (and often when it’s too late), the previously-hopeful entrepreneur looks back to see they’ve gone too far, fallen into too much debt and are at a point where they can’t recoup.

For Dr. Ames’ input on the remaining top 10 reasons why small businesses fail, please visit the full article at http://loans.org/business/articles/top-ten-reasons-small-company-fail.

For more articles, news, and frequently asked questions on entrepreneurship and commercial financing, please visit http://loans.org/business, a page dedicated to business-related information.

CONTACT: Alex Gomory, 909-784-2476, alex@loans.org

 

Financial Advisor Prefers Modesty for Retirees

After the financial pummeling investors have endured over the last decade, there is a palpable loss of confidence in the stock market – and a loss of patience. In response to the demand from increasingly conservative consumers, safer financial strategies are slowly evolving, even as riskier propositions are dying out. Financial advisors have not always sought to protect client portfolios from market risk, preferring a “wait and hope” approach to investing that relies in the market to bounce back up when it dips. But now, an entire generation of investors is looking for a safety net for their capital in retirement – and that’s exactly what today’s savvy financial advisors, like John Convery, aim to provide.

As founder and CEO of The Educated Wealth Center, LLC in West Palm Beach Florida, John describes himself as an advocate and educator for retirees. “You shouldn’t have to lose sleep at night wondering if you’ll have enough to live comfortably. There are proven strategies that align your resources properly to ensure you will always have enough,” he says. One of those proven strategies lies in knowing how to use annuities to ensure a constant flow of income – a pitch that isn’t always popular.

Annuities have developed a bad reputation, and some of it is deserved. Once you’ve heard one horror story, it’s hard not to treat every one of the dozens of different types of annuities as suspect. You’ve probably heard the story of the retiree died before pulling his money out of his annuities – and the insurance company kept the money. It’s the black sheep in the Annuity family that everyone talks about. But annuities deserve a second look. When it comes to protecting capital while still maintaining steady cash flow, fixed indexed annuities especially can be a central component of a solid portfolio.

When advising his clients, John Convery lists the safest types of investments: certificates and deposits with certain banks, US Treasury Notes, Fixed and Indexed Annuities. The problem with all of those investments, he says, is that interest rates are so low that “You die a death of a thousand cuts.” Indexed annuities are the notable exception.

“We like to see clients using indexing so they can benefit from the gains of the market without risking the losses. Over time, indexing should allow them to keep their incomes in pace with inflation.” However, he warns, “It’s not going to allow you to make a fortune in the market. But over time, it should allow you to outperform inflation. If you can accomplish that, then you’re going to be all right. Modest goals for a modest time, but in a market this volatile, feeling financially secure is worth a fortune.”

Read more: http://www.educatedwealthcenter.com/john-convery-west-palm-beach-fl.php

CONTACT: Matt Collins, 800-980-1626, matt@celebritybrandingagency.com

Web Site: http://www.educatedwealthcenter.com

‘Tis the Season for Credit Card Theft

The holiday shopping season is in full swing, and freecreditscore.com™ wants to help shoppers stay off the financial “naughty” list — and avoid identity theft “grinches.”

“Understanding how shopping behavior can affect credit scores during the holiday season leads to better buying decisions,” said Ken Chaplin, senior vice president of marketing for freecreditscore.com. “We offer a variety of articles and tools on freecreditscore.com that help educate people about credit information, which can help holiday shoppers stay on the financial ‘nice’ list this year.”

Here are a few guidelines to help consumers understand their score:

Before putting more purchases on those cards, know what you owe!
A credit score is directly linked to the number of credit cards a consumer possesses and the balance on those cards. The percentage of credit used on the cards weighs heavily on an individual’s credit score. If most cards are close to being maxed out, the credit score may suffer significantly. Before heading to stores, shoppers should assess the available balance on all cards to avoid maxing any out during the holidays.

Ho, ho, no! — Open new lines of credit with caution
During this time of year, many retail stores offer “instant” credit that promises discounts and rewards for shoppers. While these incentives may save a few dollars in the short term, the reality is that this kind of retail card can wreak havoc on your credit score in the long run.

Applying for a credit card initiates a “hard” credit inquiry by the card provider, which can cause a score to drop. In addition, the inquiry remains on a credit report for two years.

The holidays are a time to give, but don’t give your identity!

This is the time for celebration and counting blessings. However, there are “grinches” out there more interested in stealing personal identity information for their own gains. Saving physical and digital receipts can help to avoid being billed for what other people buy with stolen credit card information. As bills start to arrive, itemized expenses should be matched against actual receipts to make sure no one else is using the card for holiday shopping.

Shoppers also can watch for identity theft by monitoring their credit scores through enrolling in products such as freecreditscore.com. If cards are maxed out or if there’s an application for new credit lines, the score will change — and freecreditscore.com sends an alert noting the change. Consumers can access their score at no cost for seven days, also gaining access to additional finance tools and resources. After seven days, a monthly fee is charged for membership in freecreditscore.com.

Additional information about credit and credit scores is available at http://www.freecreditscore.com.

About freecreditscore.com

freecreditscore.com is part of a family of online consumer credit reporting sites belonging to ConsumerInfo.com, Inc., an Experian company. ConsumerInfo.com, Inc. was founded in 1995 to give consumers quick, easy and inexpensive access to their credit profile. It is now the leading provider of online consumer credit reports, credit scores, credit monitoring and other credit-related information. ConsumerInfo.com, Inc. provides credit monitoring to its more than 3.1 million members and has delivered more than 20 million credit reports on the Web. As part of the Experian family, it continues to grow its membership base and develop innovative products to help consumers better understand and manage their credit.

About Experian

Experian® is the leading global information services company, providing data and analytical tools to clients around the world. The Group helps businesses to manage credit risk, prevent fraud, target marketing offers and automate decision making. Experian also helps individuals to check their credit report and credit score, and protect against identity theft.

Experian plc is listed on the London Stock Exchange (EXPN) and is a constituent of the FTSE 100 index. Total revenue for the year ended 31 March 2012 was US$4.5 billion. Experian employs approximately 17,000 people in 44 countries and has its corporate headquarters in Dublin, Ireland, with operational headquarters in Nottingham, UK; California, US; and Sao Paulo, Brazil.

For more information, visit http://www.experianplc.com.

Experian and the Experian marks used herein are service marks or registered trademarks of Experian Information Solutions, Inc. Other product and company names mentioned herein are the property of their respective owners.

Contacts:

Corie Jackson
Edelman PR
1 323 202 1075 (office)
1 818 259 0631 (cell)
Corie.Jackson@edelman.com

Becky Frost
freecreditscore.com
1 949 567 7631 (office)
1 949 202 7296 (cell)
becky.frost@experianinteractive.com

Web Site: http://www.freecreditscore.com

Planning for Retirement? Get Some Help

Capital One

Retirement Planning (Photo credit: Wikipedia)

Getting older may not be easy, but taking a back seat with your retirement plan could lead to a destiny that is more glum than golden. A new survey from Capital One ShareBuilder reveals that while a majority (54 percent) of Americans plan to retire by age 65, many (36 percent) are not actively contributing to a retirement plan, and more than a quarter (26 percent) are unsure how much they need to save. The survey of American pre-retirees found that while confidence in the ability to save for retirement has improved (with 33 percent claiming to be more confident than they were a year ago), nearly one in four (23 percent) are concerned they may never save enough to retire.

“Now more than ever, it is important for Americans to take their retirement plans into their own hands to ensure they have an adequate nest egg,” said Dan Greenshields, president of Capital One ShareBuilder, Inc. “While planning for a time that many see as a distant future can be a daunting task, people need to assess where they want and expect to be financially when they retire and take advantage of the various tools and resources available to plan for their financial future.”

Retirement Timing and Lifestyle: When and how do Americans plan to retire?

  • More than half (54 percent) of Americans plan to retire by age 65, while 23 percent say they don’t plan to ever fully retire.
  • One in four (25 percent) Americans plan to work part-time during their retirement, and that percentage increases closer to retirement age, with 40 percent of Americans age 55-64 saying they’ll work part-time.
  • A third (33 percent) of Americans plan to maintain their current lifestyle, while 17 percent plan to make sacrifices and 11 percent plan to improve their lifestyle; 38 percent said they are unsure of what lifestyle they plan to lead.

Roadblocks to Retirement Savings: What’s keeping Americans from saving?

  • Paying for college tuition (20 percent), job loss (10 percent) and daily household bills (14 percent) are the top roadblocks for retirement savings, according to respondents.
  • Only just over one third (37 percent) of Americans say nothing has impeded their ability to save for retirement.

“At any point in life, events can come up where even the best laid financial plans can be derailed,” Greenshields said. “Having an adequate emergency or rainy day fund will help ease the financial burden of unexpected costs – and help keep you on track for retirement.”

The ING DIRECT Orange Savings Account, which can be directly linked to your ShareBuilder account, boasts features including automatic savings functionality and a My Savings Goals tool designed to help build a financial cushion, so you won’t need to dip into or cease contributing to your retirement savings.

Facing Retirement with an Arsenal of Tools:

One thing is for certain – money doesn’t grow on trees. While forty percent of older Americans plan to work part time in retirement, the reality of retirement requires a substantial and realistic nest egg. In preparing for the years ahead, experts agree steps need to be taken for the 26 percent of Americans who are not sure or do not have a retirement plan.

ShareBuilder by Capital One offers solutions that can help investors get their retirement plan on track:

  • Twenty-two percent of Americans between the ages of 55 and 64 report not knowing how much they will need to retire. RetireMyWay can help you create a personal and customizable map of the retirement they are seeking and how to get there financially.
  • ShareBuilder’s Portfolio Builder is a simple, low-cost tool to help you build a diversified portfolio that aligns with your risk tolerance and work toward your long-term goals.
  • ShareBuilder offers a no-fee IRA1, which is a great low-cost option to either get started or roll over an old 401K or IRA to.

Survey Methodology

The national phone survey was conducted within the United States by TNS on behalf of Capital One ShareBuilder from September 26 through 30, 2012 among 1,000 adults age 18+. No estimates of theoretical sampling error can be calculated; a full methodology is available.

About ShareBuilder by Capital One

Capital One ShareBuilder, Inc., is a leading online brokerage for investors who have long-term financial goals and want to say goodbye to investing complexity. Whether you’re a seasoned investor or just getting started, ShareBuilder by Capital One has what Americans need to help secure their financial future without sacrificing their lives to the stock market. No minimum balance required when you open an account and pay low commissions when investing. Trade when you want, any amount you want, and what you want — stocks, exchange-traded funds, mutual funds, options and retirement solutions.

1 For complete information, see pricing and rates.

Diversification does not guarantee a profit or protect against market losses.

Securities products are offered by Capital One ShareBuilder, Inc., a registered broker-dealer and member FINRA/SIPC. Capital One ShareBuilder, Inc. is a subsidiary of Capital One, N.A. Follow us on Twitter and Facebook.

Banking Services are provided by ING Direct, a division of Capital One, N.A., member FDIC.

ING Direct is now a division of Capital One, N.A. ING Bank, fsb, and its subsidiaries, including ShareBuilder Corporation, have been acquired by Capital One Financial Corporation and are no longer affiliated with ING Groep N.V.  (“ING”). The trademarks ING, ING DIRECT, ING Lion, and the ING Lion logo, alone or as a part of any trademark logo, work or domain name are trademarks of ING and are used by permission.

Securities products are: Not FDIC insured – Not Bank guaranteed – May lose value

Web Site: http://www.sharebuilder.com

Payday Loans Go Hi Tech With Online Service

A shop window advertising payday loans.

Payday Loans (Photo credit: Wikipedia)

PaydayLoansOnline.net launches a brand new “100% online” service, available for free on the website. As a response to growing demand in the personal finance sphere for instant payday loan access, the organization has created a way for US, UK and Canadian residents to apply for short term loans on the internet, without visiting an office or sending a fax.

The new 100% online service allows effective pinpointing of suitable lenders in the applicants’ home vicinity. Money can be borrowed from local lenders for a few weeks at a time and is paid directly into a bank account, and repaid via the same easy way on the borrower’s next pay day.

The PaydayLoansOnline system is powered by a short and direct application form that fields customer details straight to the most appropriate lenders. Bad credit is no obstacle as the service is equally available to individuals with poor, good or no credit.

A spokesperson for PaydayLoansOnline.net made the announcement.

“PaydayLoansOnline.net is pleased to launch its new 100% online service for finding fast cash loans. With the holidays approaching, many people need to pull in extra shifts at work to cover their outgoings and still can’t make the month despite their best efforts. Missing precious hours of work to visit storefront payday lenders means lost earnings and oftentimes, wasted journeys where they are not approved.”

The spokesperson continued, “The beauty of our online payday loans finding service is that we are partnered with lenders who operate 24 hours a day online, making it a very convenient option that can be used from all computers. In addition to this, the lenders are all specialists in the bad credit sector, making them more likely to approve loans regardless of an individual’s perceived financial difficulty.”

The service is comprised of some notable components. Namely, that the credit scores of applicants are never revealed throughout the application and matching process, as neither PaydayLoansOnline nor its network of affiliated lenders use or report to credit reference agencies.

The online application form takes less than 2 minutes to complete and is confidential. It is possible for an applicant to receive instant approval online or continue searching without commitment until finding the best loan that suits them.

To apply, click on:  http://www.paydayloansonline.net

Contact:
Sam Malka
admin@paydayloansonline.net
7863199951

Web Site: http://www.paydayloansonline.net

Online Loans for Consumers with Low Credit Scores

English: Online Loans Today, All Loans in One ...

Online Loans Today, All Loans in One Place (Photo credit: Wikipedia)

LoansForPoorCredit.net announces the launch of its new 3-in-1 approach for capturing the best options and deals for personal loans for bad credit.

For a high number of American consumers who are classed as having bad credit, many are led to believe that it is hard to secure loans with low credit scores or missed past payments. While this was previously the case, many loan companies now specifically cater towards these consumers who are underserved by banks. LoansForPoorCredit is partnered with many such lenders and can provide the crucial introductory link between these companies and consumers in need of their loan products.

LoansForPoorCredit is a free search, comparison and application platform that brings together the best of the online loans for bad credit world, on one convenient site. Its service is available for free and can lead to cash being paid into an applicant’s bank account within one hour in the fastest case scenario.

A spokesperson for LoansForPoorCredit made the announcement.

“LoansForPoorCredit has launched its time-efficient, easy to use 3-in-1 service for finding, comparing and applying for poor credit personal loans online. The service is accessible 24 hours a day from any computer and allows individuals to get a really good picture of what loan products can be made available to them, from many different companies.”

On the topic of choice, the spokesperson added, “The adverse credit loan market is thriving with many great deals. There is a lot more choice out there than people realize. A bad credit loan can and should be competitive, at good rates and fast. We can help individuals find the best loans for them and give consumers the chance to make their own minds up, without commitment, before deciding to accept a loan.”

The online application takes 90 second to complete and provides enough information for loan companies to potentially approve loans of varying amounts. As LoansForPoorCredit is an online operation, there are no paper forms to complete, no faxes to send and, most notably, no credit scoring to withstand. All information provided in the form is confidential and secure.

Learn more: http://www.loansforpoorcredit.net/frequently-ask-questions
Apply at: https://www.loansforpoorcredit.net/apply-now

Contact:
Sam Milo
786-3199951
ilogicltd@gmail.com

Web Site: http://www.loansforpoorcredit.net

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