Best Financial Tips & Updates

Filing bankruptcy can be intimidating and overwhelming. Debt overload can take a toll on the strongest of us. It is nightmarish to say the least. It is a harrowing affair. However, if you know something about laws pertaining to bankruptcy, it can make your job easier. You need to have a basic understanding of the process.

Substantial bankruptcy information can calm your frayed nerves. It can help you make informed decisions. It is important to understand the type of bankruptcy you are filing for. For instance, Chapter 13 bankruptcy helps you reorganize your debts and settle them with your existing income. You are entitled to a new repayment plan as far as Chapter 13 is concerned. You can repay your debts over a period of years and the amount you need to pay is also reduced dramatically. This chapter mainly involves restructuring debts. Debtors can pay off creditors using the income they have. One of the highlights of this Chapter is the full discharge option.

If you are a resident of Florida and are facing bankruptcy, you need to familiarize yourself of Florida bankruptcy laws. As a permanent resident of Florida, you can file bankruptcy in the court. However, it should be filed in the in the district of residence. There are three bankruptcy courts in Florida- Florida northern bankruptcy court, Florida southern bankruptcy court and Florida middle bankruptcy court. These courts cover all the counties in Florida. The new FL bankruptcy law calls for extra work for attorneys and debtors. There are new forms and you need to follow new court rules. As per the new law, the Florida exemption law applies to you only if you have been a resident of FL for 2 years. As far as Colorado bankruptcy laws are concerned, you can file for bankruptcy under Chapter 7 or Chapter 13.

Given the new bankruptcy laws, filing bankruptcy has become more difficult than ever. It is not really easy to find an appropriate lawyer. And if you do find one, you will have to shell out more money. This service has become more expensive than ever. This is mainly because the laws have been revised, so the process has become more time consuming. The more time your lawyer spends on the case, the more expensive his service. A majority of changes have been as far as Chapter 7 bankruptcy goes. There are some changes pertaining to Chapter 13 as well. Under this Chapter, the individual declaring bankruptcy will have to change his standard of living. In other words, his living expenses would be decided by the IRS.

Filing bankruptcy does not mean the end of the world. It is a stressful period; however, if you have access to right information, it can become easier for you. Bankruptcy laws are complex to say the least. You need to read up on relevant bankruptcy laws and update yourself before you go ahead with it.

Can you get sued for debt? That’s one question that is often asked and answered wrongly. Just because most credit card companies do everything that they can before a legal battle for non-payment of debt, it doesn’t mean that they won’t sue. What credit companies do is turn over the bad accounts to a collection agency, who will then try their best to pressure the debtor for payment, and if all steps fail, the legal battle begins. Nobody wants to be in that position.

To avoid being sued and to avoid costly legal battles over credit card debt, one can make settlements before things get out of hand. You can negotiate with the collection agency on how to go about paying what you owe. Most of the time, they are even willing to help you out and would even find some options for you for payment.

For example, they can help you find ways to be able to get a low interest rate on your next card to help you pay the accumulated fees. But if you did negotiate with them, make sure that you follow through with the deal that you had made.

Low interest rate is beneficial for its users because they will not get burdened with the high interest that somehow is part of the reason why one would be in such a mess. By paying lower rates, most debtors will be able to pay it off little by little and in the end the CC company, the collection agency and the debtor would benefit.

So before you get into the whole mess of legal battles over carried over debt, start asking your bank if you can avail of low interest CCd to help you in paying your credit card owed fees. Can you get sued for debt? Yes. But you can avoid this hassle by following the tips outlined above.

What sorts of things do online or Internet Think Tanks often discuss? Well, they discuss many of the serious issues of our time. If you go onto websites like the Rand Think Tank, Hudson Group, Pew Research, and others you’ll find a literal laundry list of challenges they are working on, and you’ll see they publish papers, do research, and offer suggestions too. Not long ago, I was discussing all this with an acquaintance who lived out there in California.

Obviously, California has a serious economic issues, and some challenges with its debt, and on the verge of becoming yet, another Greek tragedy. I asked him what he thought needed to be fixed out in California. He stated; “California as a whole seems very progressive and I think we are world leaders in a lot of humanitarian, scientific & environmental areas.” But he admitted they needed help with some of their environmental challenges and energy issues, which they are working on of course.

In many regards I’d agree that California is on the leading edge of clean technologies, just look at Bloom Power for instance, and so many other things we do, for instance out near Palm Desert, CA with all the wind turbines and wind farms in the desert there. But can California really claim its position on the progressive tech and science arena? Well, as you know, the Europeans claim to be more on the leading edge, for instance their super collider, Danish wind power, Scotland’s ocean wave energy, Germany and solar, the EUs end-of-life auto recycling programs (ELV).

And the Japanese are really into environmental issues with their ultra clean water, Earthquake prediction technologies, robotics, and hybrid automobiles. Also in South East Asia, Singapore is an ultraclean city, in the Middle East the UAE hosts several carbon-neutral cities. The Canadians will claim what my friends claims they have out in California. Still, I agree with him, and do not necessarily wish CA to copy what they’ve done in all those other places, but these other nations have some smart things to consider, borrow, better, or adapt.

My aquaintence also suggests; “We must figure out how to support our population without degrading the environment.” Indeed, there is always more work to do, but would you agree that we’ve done pretty well in CA considering, and better than most other states too? Then there are over population to consider states my acquaintance; “Globally, overpopulation is a definite problem, along with
deforestation and acidification of the oceans, and loss of clean freshwater.”

Yes, this is very true and the ocean issues are huge, and the consequences quite frankly – scary! Freshwater supplies are stretched thin in many places, bad planning, failure to implement, and one study I recently read stated we as a species are 100 trillion dollars behind in freshwater infrastructure on the planet to serve the current human Earth population?> Ouch.

Indeed, I guess this shows exactly why we need to use our brains to solve the challenges of mankind. Our Think Tank is not a social-liberal progressive, left-leaning, politically correct Think Tank, but I am sure there are many such groups my acquaintance might join.

Refinancing your current interest only loan is a good way for some people to get out from under their debt and begin to decrease the amount paid out each month. When the current interest is lower than the amount that you currently pay on your loans, refinancing helps to get a handle on your bills and begin to reduce your overall debt. Money that is saved each month with refinancing can be used to pay off more bills or to invest in opportunities that will bring more money into your budget. Refinancing your loans also changes an adjustable mortgage into a fixed mortgage, which will keep you budget on an even keel. This practice has been used by many people in recent years to get out of debt.

The refinancing a loan that is interest only is one of the best options for consumers with debt. Those who are dealing with an adjustable rate loan may wish to refinance with a fixed rate mortgage before the loan adjusts. It is a risky financial move to take another adjustable rate mortgage to gain more time for paying back the principle. However, this plan can lead to a bigger problem if the economy is in a continued decline.

Refinancing with an interest only loan is the right choice for someone who is expecting an increase in income or a large amount of money in the future. Some people choose an interest only loan when they plan to sell their home within a few years when the interest only portion of the loan is paid. In these situations, an interest only refinanced loan is a good financial decision. This is also a good financial tool for those who have an income that is based on bonuses or is not a steady weekly or monthly salary. To make the most of an interest only loan, the savings can be used to make improvements on the home to increase its value.

Before jumping into an interest only loan, there are a few things that should be considered. The length of time that the homeowner plans to live in the home and the amount of equity that has built up in the home are two factors to consider before an interest only refinance loan. Also, the closing costs and paying points should also be considered carefully before making the decision to refinance.

Those considering a refinance with an interest only loan should check with several lenders first before making the final decision. There is also a wealth of information available online for those seeking an interest only loan.

Getting the right business insurance makes a big difference in the success of any company. Whether you are shopping for Chicago workers compensation coverage or business income insurance, you need to know what limits would protect your business and what these different types of insurance have to offer. Too many companies don’t purchase enough business insurance, which puts them in a very tough spot when it comes to getting the compensation that they need in the event of a loss. When workers are injured on the job, workers compensation coverage is what protects them, but it also protects the company from lawsuits and other legal actions taken against them.

When buying business insurance, Chicago businesses need to know that they do have options. There are more than 1,100 property and casualty insurance companies in the state of Illinois. Hundreds of those are located in and around Chicago. Additionally, more than half of them sell business and commercial insurance in addition to personal lines. Some even specialize in only selling business insurance, offering a very specific focus for business customers. Illinois employs over 16,000 insurance agents, which is more than enough options for a business to find an agent that they can work with and enjoy.

Business insurance, Chicago agents and businesses in the city all come together into a neat little package to work together on business insurance matters. However, a company cannot rely on the insurance agent to take care of everything for them. In order to deal with elements like loss, workers compensation claims, and business income insurance, a business has to be educated on these various policies and types of coverage so that they can understand what they have, how to use it, and what it can do for their business.

When it comes to business insurance, Chicago companies can rely on hundreds of different companies to find what they need. However, not every company is created equally or going to provide the personalized focus that people need. With a population of nearly 10 million in the Chicago metro area, the city has plenty of opportunities for businesses to be successful. It doesn’t matter which of the 215 neighborhoods your business operates in or how many people you employ. You still need to find an insurance agent that you can count on to get the workers compensation and business income insurance that you need. Of course, a business should also take the initiative to learn about these types of insurance for themselves so that they can be a more informed company, offering a better chance at success.

Unsecured debts are the gifts of recession, it has been seen that almost each and every individual is suffering from the burden or stress of unsecured debts in United States. People are getting laid off from their jobs or earning fewer amounts of wages. These all conditions are quite enough to make the individual think that he is no more able to clear his dues.

Many legitimate ways are present in the markets that help out the individuals in reducing their unsecured debt by 50%. These ways are known as debt consolidation and debt settlement. Although method of bankruptcy is also there but it is advisable by the financial experts to avoid this method as much as an individual can, since many conspiracies are associated with the method of bankruptcy. That is why people are avoiding this method now.

Debt consolidation is recommended for those individuals who are suffering from the debts of more than two to three unsecured loans. In this method the accumulated balances of all loans come under one loan. This is an easy way for paying back the amount because now the individuals have to pay the monthly installments of only one loan instead of paying many loans. Banks and financial institution also reduces the rate of interest as well for the convenience of the individuals.

Then the second method is debt settlement, process of debt settlement is done by the legal and authentic debt settlement companies. These companies have got financial experts who help out the individuals in eliminating the amount of their unsecured debts, basically these experts do the negotiations with the lenders and the result of these negotiations is that individuals are able to get 50% elimination in their amount easily.

The aim behind the inventions of these legitimate ways is to bring down the rate of bankruptcies. As bankruptcy is nothing except total loss for the banks and fiscal institutions as well as for the individuals. Over the past few years the ratio of bankruptcy has been remarkably increased, that is why the financial institutions come forward with such inventions and legitimate ways to help out the individuals in reducing their unsecured debts.

Now the time has arrived that is only for the credit card holders, not for the credit card companies. No doubt the business of plastic cards has polished a lot in the past couple of years, as they issue cards on large scale to gigantic number of masses, but now this is the time when the individual has the right to inquire for the elimination of debts aggressively.

Negotiations are considered to be the best solution for all the problems. So it is advisable for the person who is suffering from the credit card debts that he should go for debt negotiations in order to get reduction in his amount. One thing that one should keep in his mind is to never try to negotiate on his on. As the individual is a lay man, he does not have the proper knowledge about the legal terms and conditions of negotiations. It is recommended to always hire debt negotiations or debt settlement companies in this regard.

Debt settlement companies basically perform the services of debt settlement. Debt settlement companies have got efficient skilled and trained financial experts who will help out the individuals in the whole process of negotiations. These experts are basically playing the role of middle man between both the lender and the borrower. These experts do negotiation on the behalf of the borrower. The aim of these negotiations is to make the lender realize about the bad financial situation from which the borrower is going through. If the lenders are not willing for the terms of negotiations then these experts use the threat of bankruptcy over the lenders. Since these middle men are so professionally trained that they easily know what card they should throw to make the lenders willing according to their wishes. Banks and other financial institutions are as scared of the term bankruptcy as this is a total loss for them, so in order to avoid bankruptcy they accept the offer of negotiations. With the help of such negotiations borrowers are able to get 60% elimination in the amount that they actually have to pay to the lenders.

Debt settlement is the best way for the elimination of debts, so say no to bankruptcy and opt for the debt settlement.

I have a friend in a highly specialized part of the import/export business. He started the business out of his house 20 years ago and the company did seven-figure profits for most of the last decade. My friend received valuations for the business in the mid eight-figure range around 2007 and prepared for a sale. As he went to market with the business, our economy began to unravel. My friend soon found his potential buyers pushing back from the table, their appetite for acquisition diminished by their reduction in capital, most likely from the tightening of the easy credit that fueled much business expansion over the last 20 years. As this happened, his business fundamentals deteriorated as well. His business has fallen off by well over 50% with little sign of any rapid change. With the reduction in business activity and lack of credit available, the numbers of buyers have receded and the value of the business is roughly 10% of its value just three years ago.

Despite all that has happened, he is still in a good position. He has significant positive equity, a low cost of business and the drive to rebuild his business to its pre recession valuation. How is he doing this? In a recent conversation, we talked through his strategies for moving forward. I took away from that conversation four priorities that can be applied to any business in order to thrive in today’s business climate.

First, my friend has very pointedly stated that he is not looking back and trying to figure out how the value of his business dropped by 90%. Instead, he has a firm focus on planning the future of his business, as he knows that the playing field has changed and will not likely return to its old ways. Getting back to the basics of the business plan may seem like an obvious thing to do, but this can be difficult to do. It requires an honest look at the good and the bad. Also, for the vast majority of businesses, the playing field has changed. Therefore, much of the strategic plan will likely change based upon the conditions of the market and your abilities to deliver on certain goods and services. The takeaway from this is to plan. In doing so, spend a small fraction of your time looking back on errors. Spend more time thinking about the changes that occurring in your industry, what your unique capabilities are (competitive advantage), and how you can find a profitable niche in your market.

Second, my friend is rethinking his customer and vendor relationships. Instead of approaching these entities with the traditional thinking that has governed such relationships, he is approaching both vendors and customers looking for opportunities to form partnerships. When he refers to these partnerships, he understands that they may take on a variety of forms. That said, what he looks for is to build relationships with any of these businesses where their management are willing to invest themselves in the long-term success of the relationship. This could be a vendor committing to deliver goods within a shorter timeframe to reduce your time required to take your product to market and the funds you have tied up in inventory. With your customers, it could mean developing a long-term agreement where you become more clearly aligned with their operating plans and better able to forecast the ups and downs of their business fluctuations. Regardless, think about strategies that will allow you to become more closely aligned with customers and vendors in ways that can strengthen your business.

Third, he is simplifying his personal affairs. I think we have all learned over the last 18 months that we can do with less. We need to reduce our distractions to improve our focus. When we do so, we are able to focus on those aspects of our business and personal lives that are most critical. With fewer distractions, we have less anxiety and a greater acceptance what needs to get done to get back to where we need to be.

Lastly, my friend has recommitted himself to running a lean but scalable enterprise. Success has a tendency to soften most of us. We lose our edge and come to expect certain comforts within our businesses. Whether you outsource some of your business functions or not, figure out a way to do with less but make sure that your cuts do not inhibit your ability to expand when your growth finally comes.

We have been challenged like other small businesses in the last year working through economic issues. Remember, what does not kill you makes you stronger. Make it your absolute priority to rebound in a solid fashion.

Is your investment professional a broker or a fiduciary?

The answer may surprise you.

As a successful anesthesiologist, you often juggle multiple priorities. Consulting with patients and spending several hours a day in the operating room can make it difficult to focus on your finances. If you’re like many busy medical professionals, you may currently be working with an investment advisor or considering hiring one in the future.Working with an experienced advisor has many benefits, including increased peace of mind about your finances so you can focus your full attention on what matters most-the health, safety and well-being of your patients. However, not all financial advisors are fiduciaries, so it’s important to conduct some basic due diligence before hiring an investment professional.

Brokers vs. Fiduciaries

An advisor who understands your personal goals and has your best interests in mind can help enhance your wealth, manage risk in your portfolio and create a comprehensive wealth management plan for you and your family. There are several different types of advisors working in the marketplace today, so finding the right one for your needs requires knowing what questions to ask before hiring somebody. The most common types of investment professionals working with individual investors today are stock brokers and independent Registered Investment Advisors (RIAs). The primary distinction is that a stock broker’s fiduciary obligation is to his or her employer, while an RIA’s fiduciary obligation is to you as a client. A recent survey commissioned by TD Ameritrade1 found that many investors don’t know the difference between a stock broker and an RIA. The survey reported that:

• 54% of investors believed both stockbrokers and RIAs have a responsibility to act in their best interest.
• 74% of investors were not aware that only RIAs have a fiduciary responsibility to the investors they serve.
• 79% said they would rather work with an RIA once they found out that an RIA provided greater investor protection than stockbrokers.

Four Key Questions To help you interview potential advisors or evaluate the merits of an existing advisory relationship, I recommend asking the following four questions when talking with advisors. A reputable advisor will feel comfortable answering any of these questions and should welcome your interest in becoming a more informed investor.

1. Who is your employer? Any financial advisor working for a broker-dealer is technically a stock broker. Some of the nation’s largest broker dealers include Merrill Lynch, UBS, Citigroup, Solomon Smith Barney, Morgan Stanley and Wachovia.While there are a number of reputable investment professionals working for these firms, keep in mind that all stock brokers have a primary responsibility to their employers, not their clients. They are required by law to act in the best interest of their firm at all times. In contrast, any advisor working as an RIA has a clear and direct fiduciary obligation to his or her clients. An RIA must act in your best interest at all times or risk losing his or her registration with the U.S. Securities and Exchange Commission (SEC.). If you’re a “do-it-yourself” type of investor-conducting your own research and monitoring your own accounts-working with a full-service or discount stock broker may make sense for your situation. If you’re looking for comprehensive investment guidance and advice, working with an RIA may be a better choice. An RIA is qualified to help you create an investment policy statement, make investment decisions for both your personal and business accounts and monitor your portfolio on an ongoing basis. In addition, an RIA is required to act in a fiduciary capacity at all times.

2. How are you paid? Stock brokers may be paid on a commission basis, a fee basis or both. Critics of the brokerage industry believe that selling commission-based products can sometimes lead to conflicts of interest between stock brokers and their clients. In contrast, RIAs typically work on a fee-only basis, which means they accept no commissions, ensuring greater transparency in their compensation structure to their clients.Working with an RIA can make it easier to understand exactly what you’re being charged by an advisor, measured in a specific dollar amount.

3. What type of clients do you usually work with? The type of clients an advisor is currently working with will give you a good feeling for his or her skill set. Be sure to ask about an advisor’s average client account size, their typical client profile in terms of family, geography, wealth planning needs, and whether their clients tend to have earned or inherited wealth. In addition, consider asking any prospective advisor for the names of three current clients who would be willing to speak with you about their experiences in working with that advisor.

4. What other services do you offer beyond investment management? A stock broker may provide investment services only, or access to broader range of financial planning services through a subsidiary of his or her employer. Keep in mind that stock brokers are not required to act as a fiduciary for any services they provide. An RIA will typically provide a comprehensive suite of financial planning services, including investments, insurance, estate planning, credit and lending services and retirement advice. An RIA is required to act as a fiduciary for all services they provide.

Getting Started- Remember the key to establishing a successful advisory relationship with an investment professional is to be an informed investor at all times by asking a lot of questions. Be sure you have a clear understanding of who your advisor works for, how your advisor is paid and whether or not an advisor has a fiduciary obligation to you, as a client. If you’re looking to hire a qualified investment professional, you may want to consider interviewing two or three different candidates before making a decision. Friends, family members or colleagues may be able to provide you with an introduction to an investment professional they know and trust. You may also want to ask your other trusted advisors, such as your attorney or accountant, for a referral. In addition, be sure to conduct your own thorough due diligence to make sure you are completely comfortable with an advisor before beginning any new advisory relationship.