First of all I am going to tell you that I am a stock trading dummy and proud of it.  I have made millions of dollars trading stocks and I am blessed with the inability to understand the technical analysis of markets. You should be happy that you are a stock market dummy because this fact may help you in making real money in the stock market. Some of the smartest people I know are in the stock trading business and many are stock brokers and financial advisors.  I am going to let you in on a dirty little secret.  Of all the forces in the economy that have caused people to lose money in the stock market, none have been greater than the advice of financial experts and brokers.  There does in fact seem to exist an inverse relationship between intelligence and effective stock trading…

Over the past few months a lot of people have you received a letter in the mail addressed from the National Debt Relief Program. This letter appears to be from a government agency and seems to be legit when you first look at it. On further examination, consumers discovered that it is not from a national agency but from a debt settlement company – GHS Solutions. The verbiage of the letter will include claims that the government has come out with a new program to help those with rising credit card debt. It will also include promises of cutting the payments by 50% especially for those whose credit card debt exceeds $10K. If you haven’t figured it out by now, this is a scam. GHS Solutions, a debt settlement company out of Florida sends out these direct mailings to huge lists obtained through several…

Property Selling Basics: What is a Short Sale? According to the National Association of REALTORS (NAR) website a short sale is “a sales transaction in which the seller’s mortgage lender agrees to accept a payoff of less than the balance due on the loan.” (1) This happens when the seller is unable to satisfy the amount owed on the home because of dropping home value. Once the transaction is complete the lender agrees to forgive the rest of the debt not paid by the transaction. Short sales, when handled correctly and with professional assistance can offer advantages for all parties involved. First, the seller is able to avoid having a foreclosure on their credit. These types of transactions affect credit but not to the extent that full foreclosure can. Second, the buyer generally gets a home for a better price than it…

The Extended Homebuyer Tax Credit Makes the Buyers Market Even Stronger Everyone is talking about the number one reason buying a home makes sense this year: the first time homebuyer tax credit! But the tax credit extension signed into law in early November offers even more incentive to buyers. Now, not only first time homebuyers benefit, but also any individuals or families looking to purchase a primary residence can participate. According to IRS.gov, “Under the new law, an eligible taxpayer must buy, or enter into a binding contract to buy, a principal residence on or before April 30, 2010 and close on the home by June 30, 2010. For qualifying purchases in 2010, taxpayers have the option of claiming the credit on either their 2009 or 2010 return.” First time homebuyers continue to receive an $8,000 tax credit, while homeowners planning to purchase a “replacement principal residence” can claim…

Contrary to popular hype, getting started for retirement late is not a crisis – as long as the right plan of action is put in place. One increasingly popular source of retirement income is the reverse mortgage. Although we typically think of a 401(k) or an IRA when we think of saving for retirement, a reverse mortgage allows you to access the equity you have already built in your home as a source of income. This makes a reverse mortgage an option if you are looking to save for retirement or pay for a home improvement, health care expenses, or to support the transition to a long-term care facility. How Does a Reverse Mortgage Work? A reverse mortgage basically operates in the same way a traditional “forward” mortgage is negotiated with a lender. However, instead of paying a monthly payment to the lender, you…

Many of us have noticed some changes with our credit cards lately. In an effort to protect consumers, the credit card industry has been forced to make some changes. We saw how credit card cash advances and advance tax refunds brought money problems to many households. Fortunately, some of the changes coming with the CARD Act will help consumers avoid problems that can lead to serious and long term financial trouble. On the other hand, creditors are finding new and creative ways to remain profitable. Overdraft fees At one time or another, most of us have been unfortunate enough to have mismanaged our checking accounts and been charged an overdraft fee. The Credit CARD Act is severely limiting banks’ abilities to charge these fees. As of July 2010, consumers will have to opt in to be able to overdraft using their debit cards. Balance transfers…

Before we discuss deal terms, let’s discuss when you should ask potential investors about “deal terms”. This applies to Hedge Funds, as well as private equity firms and venture capital firms. I always recommend that my clients prepare a separate Executive Summary to save them time screening potential investors and to protect some of their confidential information. You can weed out funding sources who will waste your time by first sending them your Company’s Executive Summary instead of your full Business Plan. The time you spend working on raising capital and meeting with potential investors is valuable. Use it wisely and try to find your best candidates for funding quickly. Concentrate your efforts on them. Remember, venture capital firms usually focus their funding efforts on start-up companies and private equity firms usually focus their efforts on existing companies. Some very successful Hedge Funds…