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Eight Mistake Investor Make

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Investing in the stock market is always a gamble and it doesn’t hurt to have a little luck on your side. But the difference between a successful investor and an unsuccessful one can be as simple as doing a few things right and avoiding certain mistakes. Steer clear of these eight common missteps and you can greatly improve your chances of achieving your investing goals, whether you’re a novice or semi-pro:

Not starting early enough. Yes, better late than never. But with investing, the earlier the better. As many of us in the industry like to say, “It’s not about timing the market, it’s about time in the market.” The longer your money is invested, the more opportunity there will be for your growth to compound and your ups to far outweigh your downs. If you invest $10,000 for 40 years, assuming an average rate of return of 8% and no additional contributions, you’ll have approximately $200,000 more than if you’d invested for 20 years.
Not saving enough. Unless you have lottery-winning kind of luck, you most likely will not be able to rely on stock or fund picking alone to succeed. Not only should you start investing as early as possible, you should also contribute as much as possible to your investments. If you have $10,000 invested and add $500 per month versus $250 per month for 40 years, assuming that 8% return, you will have close to $1 million more saved! The harsh reality is that most of us need to be investing 10-20 percent of our annual income in order to reach our long-term savings goals.
Being overly aggressive. The stock market is hot right now, hitting new all-time highs in the past few weeks and prompting investors to pour money in. The same was true in 2007 and 1999. But what followed the year after those years was frightening and, in many cases, devastating. Taking advantage of a market rally is great, but be prepared for the inevitable downturn too. A varied and more balanced portfolio that includes less risky investments too can help protect you when stocks head south. Keep in mind that even mutual funds, which are inherently diversified to an extent, can be heavily concentrated in certain asset classes and therefore too aggressive for your risk tolerance. So make sure you know what you have and are comfortable with the risk potential.

Chasing performance. There is a good reason why the financial services industry constantly preaches: “Past performance is no guarantee of future results.” Still, many people select investments solely based on recent returns. The danger is that if you invest in a hot fund or stock, you may jump in just in time for the freeze. Did you know that emerging market stocks was the top performing asset class in 1999 and 2007 and the worst performing class in 2000 and 2008? By having investments in a variety of asset classes you will better be able to share in the growth when certain classes do well while avoiding serious losses when some don’t.

Timing the market. Remember I said that it’s about time in the market, not timing the market. Studies have shown that, for most of us, trying to jump in and jump out of investments at the “right” time leads to more bad results than good. Also, the costs of frequent trading can significantly reduce returns, especially in taxable accounts. Assuming your investments are diversified and reasonably priced, you should hold onto them as long as possible and avoid knee-jerk reactions. Additionally, you will almost always be better off investing sooner than later.

Overpaying in fees. Many mutual funds have a one-time sales charge of up to 5.75% (a.k.a. “load”) and an annual expense ratio of 1.5 to 2+ percent if they are actively-managed, not to mention a potential “wrap fee” of 1 to 2 percent you might be paying a professional to manage your portfolio for you. While a few percentage points may not seem like a lot to pay at first, over the long run it can take a serious toll on your growth. Check out the SEC’s mutual fund cost calculator to see for yourself. And recent studies have shown that the majority of actively-managed, higher cost funds do not outperform their respective indexes. Bottom line: Managing your own portfolio and choosing no-load, passively managed index funds or exchange-traded funds whenever possible will help minimize cost and maximize your savings.

Underestimating inflation and taxes. Over time, everything gets more expensive. That is inflation -- one of the few certainties in life, along with death and taxes -- and it has averaged 3 percent over the past century. A million dollars may seem like a lot now, but in 30 years it will be worth much less thanks to inflation. At the current rate of inflation, you’ll need to save more than $2 million dollars to have then what feels like $1 million today. Combine that reality with income and capital gains taxes, and you will probably need to save a whole lot more for retirement than you might think. You should also maximize savings in tax-deferred and tax-advantaged accounts like 401(k)s, IRAs, and Roth IRAs, in which you can delay or avoid paying taxes on growth and future withdrawals.

Not rebalancing. Different asset classes grow at different rates and some grow much faster than others over a given time frame. For example, if you started out this year with a balanced portfolio of half stocks and half bonds, the surge in stocks over the past few months has likely caused you to have a larger percentage of your portfolio in stocks and a smaller percentage in bonds if you haven’t rebalanced yet. Depending on your risk tolerance, your portfolio might be too out of whack and uncomfortably aggressive. By rebalancing at least once a year, you can sell positions that have gotten too large and reinvest the proceeds in other positions that might help reduce risk (or increase it in some cases) and capitalize on opportunities in your portfolio. An easy way to help ensure appropriate rebalancing is to invest in target-date or “lifecycle” funds that rebalance automatically based on time horizon. Just keep in mind that these are actively-managed funds and typically more expensive than index funds or ETFs. Also, just because a fund’s target date might align with your savings goal time frame, it doesn’t necessarily mean that it aligns with your risk tolerance. So make sure to pick one with an asset allocation that you are comfortable with.

Bottom Line: save as much as you can as soon as you can, avoid high fees and taxes, diversify your investments, rebalance periodically and stay invested as long as possible. Follow these rules and your success as an investor will be much more of a sure thing.

Ten reason You're not rich yet

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As a financial advisor, I have spent many years helping other people overcome financial stumbling blocks so they can become rich. Ironically, the one person I have had the most trouble helping is myself.

Being “rich” can mean different things to different people, but I believe it means having the financial freedom to achieve your goals and live the life you want. I am great at giving advice; I am not always so great at taking my own advice (know anyone like that?). So, when it came to helping my clients understand why they weren’t rich yet, the easy part was explaining the culprits, because I was all too familiar with most of them.

Regardless of our upbringing, education, profession or lifestyle, most of us are not where we want to be financially and our reasons are probably more similar than different. The good news is that it is never too late to become rich if you, like me, are ready to own up to the reasons you’re not and do something about it.

Want to know why you aren’t rich yet? Keep reading.

1. You spend money like you’re already rich.

Sure, it feels good to buy expensive things, whether it’s a luxury car, designer clothes, a big house in the burbs, or a tropical vacation. Even if you don’t necessarily buy pricey items, if you consistently buy stuff you really don’t need, it still adds up fast ($300 trip to Target for toothpaste? AHEM). But the shopping high only lasts until the guilt and regret set in or the credit card bill arrives. Most of us are guilty of living beyond our means and using credit cards more than we should. The problem is that as long as we continue to spend more than we have, we can’t start building wealth. Chronic overspending and high-interest, revolving credit card debt are your worst enemies when it comes to financial success. Spend like you’re poor and you are much more likely to become rich.

2. You don’t have a plan.

Without clearly defined short, mid and long-term goals, becoming rich will just seem like an unattainable fantasy. And that turns into your go-to excuse for why you shouldn’t bother saving or stop overspending. As we say in the financial industry: those who fail to plan, plan to fail. Creating a financial plan may seem overwhelming or intimidating, but it doesn’t have to be. Whether you do-it-yourself or decide to work with a financial professional, the process simply starts with prioritizing your goals and writing them down. Put that list where you can see it on a regular basis. Visual reminders go a long way in helping us stay on track.

3. You don’t have an emergency fund.

I know, you’ve heard it a hundred times: you need to have at least six months of income saved in an emergency fund. And yes, it’s much easier said than done. However, I’ve seen too many people (including myself) get hit with a major unplanned expense, whether it’s a car or home repair or a medical bill, or an unexpected job loss, accident or illness that’s led to a drastic reduction in income. When these things happen--and they do, more often than you might think--not having a financial safety cushion can make the situation much, much worse. If you’re forced to rely on credit cards, you’ll end up sinking deeper into debt instead of, yes, saving to become rich.

4. You started late.

With every year or month that goes by without saving, your chances of becoming rich decrease. Time and compounding interest are your two best friends when it comes to growing money, so wasting them really hurts. Just like exercising, the hardest part of saving is starting. Even if you’re in debt, making little money or have a lot of expenses, you can still always save something -- even if it is a small amount. The sooner you get yourself into the habit of saving -- regardless of how much -- the easier it will be for you to continue and eventually increase those savings. I like to think of saving as a muscle you have to work out and build with practice. Even if you start saving late, you can still become rich if you’re committed enough. But you need to start. Now.

5. You’d rather complain than commit.

“Life is too expensive.” “I’ll never get out of debt.” “I don’t make enough money.” “Investing is too risky.” I’ve probably heard every excuse for why someone isn’t saving, investing or planning in general, and I’ll admit I’ve used a few of them myself from time to time. It’s easier to be lazy and let bad habits fester than to commit to --and follow through on -- changing them. It’s no wonder obesity and debt are epidemics in our country, and that millions of Americans have had to push off retirement. As long as the complaining, excuses and finger-pointing persist, so too will not becoming rich. Instead, take responsibility for your bad habits and focus on what you can do to change them. Then do it.

6. You live for today in spite of tomorrow.

I get it. It is really hard to think about retirement and other distant fantasies when we have needs and plenty of wants now. The bills have to get paid, the family must be fed, momma needs a vacation -- and a new wardrobe to go along with it. The problem is that impulsive and overly-indulgent behavior commonly lead to credit card debt, spending money you might have otherwise saved and, yes, not becoming rich. Do yourself a favor: Ditch the “buy now, worry later” mindset and instead, adopt a “save now, get rich later” mindset.

7. You’re a one-trick investor.

You might be lucky enough to become rich by betting all your money on one type of investment. Just like you might be lucky enough to win the lottery. But that’s not a strategy for getting rich (at least, not one I’d ever recommend).

One of the worst financial mistakes you can make is putting all your money eggs in one basket. Doing so puts you at too much risk, whether it is being too conservative or too aggressive. Sure, the stock market is on a run and real estate is on an upswing again, but are you prepared for when the tides turn? Because they will. And if you are invested in all fixed-income securities like CDs, bonds and annuities and think you’re safe, inflation should make you think again. Your investment portfolio needs to include a good mix of investments with varied levels of risk and return potential and liquidity (so you can get your money when you need it).

8. You don’t automate.

Here’s the secret to saving: Automation. Saving is seamless when it’s automatic. Unfortunately, we are not born to be savers. We are impulsive and greedy by nature. Being responsible requires much more discipline. However, automation forces us to be responsible without too much effort. And all it requires is setting up regular transfers from a paycheck or bank account to a savings or investment account. Without it, we are much more likely to spend money we could be saving. Even if it is a seemingly small amount that you automate, those steady investments can make a big difference over time. Automate whatever you can whenever you can; just be careful to avoid overdrafting your account and try to increase your savings amount periodically.

9. You have no sense of urgency.

You might think you don’t need to worry about getting out of debt or saving because someone, or something else will save you. Maybe it’s a pay raise, a new job, an inheritance, a rich spouse, or the lottery you’re counting on. Whatever “it” is, you use it as an excuse to put off taking steps on your own to become rich. The problem is that very little in life is certain. Who knows what will actually happen, or not happen, so why not focus on what you can control now? Save now and save yourself -- just in case something, or someone, else won’t.

10. You’re easily influenced.

Maybe you live with a chronic overspender or a typical day out with your girlfriends involves shopping. Or maybe it’s your inner “Real Housewife” that you sometimes can’t control. We all have negative influences in our lives that threaten our chances of becoming rich. The superficial, materialistic, sensational culture in which we live is probably the biggest one.

The suffocating swirl of media that goes along with it makes it ten times worse. The trick is not giving in to temptation. How? Some of it is making conscious choices to avoid putting yourself in vulnerable positions. But most of it is having the willpower to keep the goal of becoming rich in the front of your mind, especially when you are tempted to sabotage yourself.

How to Start a Business After College

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The job search after graduation can get frustrating. In a market where 44% of college graduates are unemployed or underemployed (according to a June report from the Federal Reserve Bank of New York), finding any work can be hard, let alone that perfect job you dreamed of as you were handed your diploma.

This has led some recent graduates to leave the job search entirely, and create not only their own job, but their own company, too. Perhaps inspired by Mark Zuckerburg’s billion-dollar dorm room project, the millennial startup revolution is happening, and for some, the payoff is great. For others, the entrepreneurial road leads to disappointment. But before you set out to be your own boss, you have to know what you’re getting yourself into, so here are some things you need to consider if you’re thinking about forging your own path.

1. Think before you act.

The absolute first thing you should do is weigh your options, and take a good look at your motivations and working style. Assess your commitment, your passion, your desires and your means. If you have a mountain of student debt and little capital, perhaps the safer option is more stable employment until you have sufficient funding.

You also need to look at your motivation and drive. If you’re starting a business just to get rich, or so you don’t have to answer to a boss, you might want to rethink your plan. But if you have an idea that you’re passionate about, willing to work night and day to make it a reality, then maybe it’s time you give yourself a chance.

2. Prepare yourself for hard work.

If you have that passion and drive, be sure that you’re readying yourself for some of the hardest, loneliest work of your career. Not only will you be working some of the longest days you ever have, but it’s all self-motivated and solitary. You also have to be willing to do every last detail to make your business work, from brainstorming to advertising to handling finances to taking out the trash. And all that work sees payoffs late—the startup world is one of delayed gratification, if any at all. You need to always believe strongly in your vision and work every minute to make it a reality.

3. Youth is innovation.

That being said, if you can handle the hard work and you have the passion for your idea, being young provides great advantages in starting a business. You haven’t been jaded by the corporate world, and you’re not yet trading in a nice weekly paycheck for uncertainty.

Young, fresh perspectives are also integral to innovation. Discovering how things work with new eyes enables you to see how systems can improve. Young people tend to have more creativity and energy in their pursuits, so use this to your advantage when you’re trying to reinvent the way things work. Plus, the added benefits of having few commitments (no mortgage or children) make young people the ideal demographic to throw their time and energy into making a new business work.

4. Take control of your freedom.

While it’s hard work, a huge perk to starting a business is the freedom that comes along with it. Yes, you’ll be working most hours of the day (and even night) but you can choose when, where, and how you get things done. Executive decisions are yours alone, but so is the satisfaction and pride of doing things your way. You have to be decisive when you call the shots, so start-up personalities should have a bit of dynamism in their bloodstream.

5. Be your own strongest advocate.

No one is going to want to see your business succeed more than you. You have to be your chief advocate, and in the entrepreneurial world, networking is everything. Spreading the word and advertising what you’re doing is the only way to gain traction. If you have a great idea and are working hard to make it happen, people will want to know what you’re doing, so don’t be afraid to speak up.

6. Be aware of the risks.

According to Carol Roth, a Chicago-based business strategist, nine out of every ten new businesses fail in the first five years. Though this doesn’t bode well for new startups, without risk, there’s no reward. Keep in mind that if you want a sure thing, it may be best to start your business part-time, and keep your day job (for now). But don’t be timid — even if your business doesn’t take off like you wanted it to, many employers find down the road that startup personalities have important skills they want on their team, too.

7. Gather resources.

Because starting a business right after graduation is so risky, you should hedge your bets and arm yourself with as many resources as possible. If you have student loans, look into the Small Business Administration’s Student Start Up Plan for Income Based Repayment, or for nonprofits, look into the Public Service Loan Forgiveness program. The Youth Entrepreneurship Council is a great network and resource to better prepare you for the journey ahead, and don’t hesitate to seek out mentors, investors and advisors (maybe even offering equity in your company in exchange for their assistance).

There’s no rulebook for your business (yet), so you get to draw the business model. It’s high risk, but can definitely turn out to be high reward.

How to Increase Your Income?

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Bateeilee blogs will share how to increase Your Income,Lower Your Taxes and Help Your Favorite Charity Given the fact that most seniors are interested in a secure income, reducing risk and lowering taxes, here is a planning technique to consider if you are trying to increase your income.

Maybe you have a CD that is coming up for renewal and you discover the rate is going to be lower. You could have some stocks or mutual funds that were invested for growth and are thinking about selling some off and re-investing in something that would pay you an income. The only reason you haven't sold them is that you don't want to pay the capital gain.

I would suggest including a charitable gift annuity in your list of options.

A charitable gift annuity is a combination of a gift to charity and an annuity. For older people, annuity rates may be 8%, 9% or even higher. Since part of the annuity payment is a tax free return of principal, the gift annuity may provide you with a substantial income. The combination of partially tax free income and the initial charitable deduction makes this planning device attractive.

While this arrangement has its own unique benefits, the rate of return is less than if you had bought a commercial immediate annuity. Therefore, your decision to use a gift annuity should include a desire to eventually leave money to a qualified charitable organization that you have an interest in, such as a church, school, hospital, etc.

Gift annuities are easy to set up. You simply transfer property to the charity and the charity promises to pay a given amount monthly, quarterly, semi-annually or annually to you for as long as you live. Alternatively, you could elect to have the payments paid to you and another person for as long as you both live. Or you could elect to have the payments made to you for the rest of your life and then to the second person for the rest of their life. But the maximum number of people per gift annuity is two.

Gift annuity rates are set by the American Council on Gift Annuities. Charities don't have to use these rates, but most do. So you don't have to out shopping for the best rate. Make your choice based on the charity that you would like to support.

There are two tax issues that you should take into consideration when comparing a gift annuity to your other alternatives.

The first is that if you fund the gift annuity with cash, part of the payment you receive is taxed (as ordinary income) and part of it is not taxed as it is treated as a return of principal. If you fund it with appreciated property, and are the recipient of the income, part will be taxed as capital gain, part as ordinary income and part could be treated as a return of principal and not taxed. However, if you live past your life expectancy, all later annuity payments will be ordinary income.

The second tax issue is that when you give the charity your asset in exchange for a life income, you get a large income tax deduction. For most people, this income tax deduction is so big it cannot be taken in one year. So there are provisions to spread the deduction out over the year of your donation and five more. Your accountant can tell you if this will eliminate income taxes for the next 6 years or not. Chances are good that it will.

Please note that I am only giving general guidelines about taxation. Before you set up a gift annuity, you should sit down with your tax advisor to determine the exact tax ramifications for your situation.

There are a number of charitable gift annuity options and applications. This brief overview has given you some of the basics. If this seems like it may fit, contact the charitable organization of your choice and get a proposal. Then sit down with your accountant and financial planner and have them help you compare a gift annuity with your other options. well how to Selecting Right Stuff Income Investing

What Is Forex Trading

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So what is is Forex trading you may ask? Forex is the exchange you can buy and sell currencies. For example, you might buy British pounds (by exchanging them to the dollars you had), then, after pounds / dollar ratio goes up, you sell pounds and buy dollars again. At the end of this operation you are going to have more dollars, then you had at the beginning.

The Forex market has much higher liquidity, then the stock market, as much more money is being exchanged. Forex is spread between banks all over the planet and as a result it means 24 hour trading.

Unlike stocks, Forex trades are performed with high leverage, usually it is 100. It means that by investing $1000 you can control $100,000, and increase potential profits accordingly. Some brokers provide also so called mini-Forex, where the size of minimum deposit equals $100. It makes possible for individuals to enter this market easily.

The name convention. In Forex, the name of a "symbol" is composed of two parts - one for first currency, and another for the second currency. For example, the symbol usdjpy stands for US dollars (usd) to Japanese yen (jpy).

As with stocks, you can apply tools of the technical analysis to Forex charts. Trader's indexes can be optimized for Forex "symbols", allowing you to find winning strategy.

Example Forex transaction

Assume you have a trading account of $25,000 and you are trading with a 1% margin requirement. The current quote for EUR/USD is 1.3225/28 and you place a market order to buy 1 lot of 100,000 Euros at 1.3228, expecting the euro to rise against the dollar. At the same time you place a stop-loss order at 1.3178 representing a maximum loss of 2% of your account equity if the trade goes against you, 50 pips below your order price, and a limit order at 1.3378, 150 pips above your order price. For this trade, you are risking 50 pips to gain 150 pips, giving you a risk/reward ratio of 1 part risk to 3 parts reward. This means that you only need to be right one third of the time to remain profitable.

The notional value of this trade is $132,280 (100,000 * 1.3228). Your required margin deposit is 1% of the total, which is equal to $1322.80 ($132,280 * 0.01).

As you expected, the Euro strengthens against the dollar and your limit order is reached at 1.3378. The position is closed. Your total profit for this trade is $1500, each pip being worth $10.

Getting credit you deserve?

Posted by Unknown

Have you ever wondered why so many businesses fail within 1-2 years... or even after 5 years in business?

To many business owners, this question is scarier than finding a burglar standing over your bed at night. So, here's some common sense advice that can save your business, regardless of how long you've been in business.

First of all, building a solid business credit rating is possible regardless of your personal credit scores. Obtaining the right types of corporate credit is vital to: the protection of your personal assets, the risks associated with personal lawsuits affecting your business, and your business' ability to weather economic changes that seem to occur overnight.

All business owners must make it a weekly priority toward developing relationships with the right types of lending institutions. You usually want to start your application process with out-of-state, national (or international) lenders... not your local or regional banking institutions; because these larger lenders typically won't require a personal guarantee or your social security number.

However, there are many steps you'll need to take before you start applying for any type of business credit. Ultimately, it's in your best interest to find a competent professional that can help you navigate through the murky underworld of building a strong corporate credit rating... giving you a head start on your competition & also letting you focus on running your business' day-to-day activities.

An excellent business credit score can help your company's image, overnight. You need to be able to answer some very basic questions, before you apply for any business credit.

Is your business strauctured as a sole proprietorship, C-corporation, S-Corporation, Limited-Liability Corporation (LLC), Partnership, or Trust?
How long has your business been recognized by your State & Local government?
Has this company ever had any derogatory information provided to the most popular business credit reporting agencies, Dun & Bradstreet or Experian?
Does your company have the proper permits, licenses and registrations necessary to conduct business in your jurisdiction?
Does your business have a physical address?
Does your business have a landline telephone number that's recognized by directory assistance?
Are your incoming telephone calls professionally answered in your business name, or is it answered as if incoming calls are personal conversations?
Does your business have a business checking account?
Does your business have an Employer Identification Number (also known as an EIN)?

If your answer to the first question was a sole proprietorship, partnership or trust; I urge you to re-establish your company as a corporation or LLC. I'm not going to provide you with legal advice, but many CPAs and attorneys highly recommend LLCs (Limited Liability Corporations) as a way of protecting your personal assets & estate... in the event of any lawsuits being filed against your company. As a sole proprietor, your personal assets are at direct risk of seizure or forfeiture when faced with most types of legal action. Additionally, most lending institutions will not require you to provide any personal guarantee when applying for credit in the name of an LLC.

A corporation can still face difficulties applying for business credit, if its been in business less than 2 years or if its had previous credit problems reported against it... although its not impossible to overcome. Here are some common fixes. You can purchase a "shelf" or "aged" corporation that's been recognized by your State government for longer than 2 years. You can attempt to repair your business credit rating by writing dispute letters to Experian or Dun & Bradstreet, which isn't always possible. A few corporate credit experts will sell you "shelf" or "aged" corporations, some of which already have strong credit ratings established in each entity's name... saving you alot of hassles.

I cannot stress this enough... you MUST have a physical address (not a PO Box) if you want to establish a solid business credit rating. The same thing is said for telephone numbers & the way incoming phone calls are handled. You don't have to act as if your company is a Fortune 500 company. You just need to put yourself in the lender's shoes for a moment & ask yourself, "Would I lend money to a company that I can't find a physical address for?" or "Would I lend money to a company that answers their mobile phone with your favorite musician's answer tone & is answered in a non-professional manner?". I hope your answer was a resounding "NO!". If not, can I borrow $1,000,000? You can always find me wherever my mobile phone is at the moment. (Get my point?) And, don't forget to get the proper paperwork to go into business & keep these documents current.

Moving on, business checking accounts are a must. Again, this proves stability to your potential lenders. Here are some possible solutions, if you've had checking accounts closed in the past. Pay off the outstanding balance (if any) that's being reported by the bank, or open a checking account at a bank or credit union that doesn't use the ChexSystems credit reporting system. Most credit unions don't use ChexSystems, and you can always find a list of banking institutions in your area that don't use ChexSystems... by simply doing a search on Google, Yahoo or MSN.

Corporate credit ratings are tracked using your business name, business address and employer identification number (EIN). It takes less than five (5) minutes to apply for an EIN at http://irs.gov which is the IRS' website.

Next, you'll want to obtain a D-U-N-S number from Dun & Bradstreet, the largest business credit reporting agency. You can apply for this without any fees at http://dnb.com which is the Dun & Bradstreet website, and you'll usually receive this number within thirty (30) days. Do not apply for this number until you've prepared your self thoroughly, because any information you give to them... goes into your credit file... permanently.

After you've obtained your D-U-N-S number, you're probably ready to start establishing some vendor credit. Vendor credit is where many business owners start establishing business credit ratings. Simply go to http://staples.com, http://officemax.com or http://officedepot.com to get started. Then, you'll also need to fax your business telephone bill & the credit application to them... on your business letterhead (which you can create using your favorite word processing software). They usually don't require any personal guarantees (if you've followed the outline above), and you'll usually receive a starting credit line of $750.

Be sure to always pay your invoices before the grace periods begin. This is critical, especially on unsecured credit cards. Dun & Bradstreet issues what's known as a Paydex score (your corporate credit score), and a score of 80 is very good... with 100 being the highest score you can achieve. Your Paydex score is issued once you've established a known vendor/credit relationship with at least five (5) creditors... and it reflects negatively on your credit score if you pay a bill after you've entered in the grace period & even worse if you pay after the due date.

Again, there are shortcuts that will help you get much more than $750 alot faster. I've seen hundreds of people start with vendor credit equaling $25,000-$50,000 and open credit lines of $50,000 up to $1,000,000... in as little as 45-90 days... by using a corporate credit expert's knowledge of the application process & "shelf" corporations. In fact, the best corporate credit experts will usually already have "shelf" corporations for sale... with pre-established credit ratings & lines of credit.

In summary, I've given you most of the tools & information you need to obtain corporate credit lines. Are you going to let a "cash crunch" put you out of business? Are you going to try to establish a business credit rating yourself & build your credit slowly? Or, will you utilize the services of a knowledgeable corporate credit expert to establish your credit rating & secure large credit lines... overnight? The choice is yours.

Optimization Marketing 101 for Blogs!

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Truth be told, most blogs aren't really optimized for marketing effectiveness. Even more so, some blogs are absolute marketing machines, but they at the same time fail to fully capitalize on that fact by not being really optimized marketing-wise.

Blogs may be Web 2.0, but bloggers should not ignore some of the good old internet direct marketing tactics that have been working for marketers online almost for a decade or more.

Here are the absolute 101 basics you really shouldn't ignore ...

1. DON'T FORGET E-MAIL DELIVERY

Bloggers are often abandoning or completely ignoring e-mail as a tool to deliver their content to their readers. As an RSS evangelist I certainly believe in using RSS to get your content to the world, but only as a supplement to e-mail delivery.

While RSS provides us with many unique benefits, it is yet to reach mainstream adoption. Until it does, marketers and publishers should not even consider abandoning e-mail delivery, or risk ignoring most of their potential readership.

If you're still wondering why you need e-mail, consider the potential you might be wasting without it. Someone visits your blog, likes the content and would like to be notified as new content of interest becomes available, and he does not know what RSS is or even care.

If you fail to capture his e-mail address and consent at that exact moment, he might never again return to your site, either because he forgets about it or because dozens of other sites capture his interest even before the next day.

2. E-ZINE PUBLISHING IS STILL A MUST

Publishing a blog is not a replacement for an e-zine. If nothing else, publish a weekly or monthly e-zine of your top blog posts, available in a single easy-to-consume format.
Some simply do not have the time to watch your blog regularly and others will only want to receive a quick summary to get only your best and most crucial content. Publishing an e-mail e-zine will do that for you, giving you the opportunity to communicate with the widest possible long-term audience for your blog.

3. E-MAIL AND RSS SUBSCRIPTIONS

Providing e-mail (e-zine) and RSS subscriptions is important to the success of any blog. But neither of these will do you much good if your visitors don't actually see them and if you don't give them enough incentive to subscribe.

Foremost, display your e-mail e-zine and RSS subscriptions information at the top of your blog, instead of somewhere far down where no one will see them.

And second, use enticing copy to get visitors to subscribe. Briefly explain the benefits of subscribing, what kind of content they can expect to receive, and also do not forget about your privacy disclaimer, calming potential subscribers that you will never abuse their personal information.

4. EXPLAIN RSS

Most internet users still do not know what RSS is or how to use it, and consequently the RSS buttons on your blog mean absolutely nothing to them.

To overcome this problem, create a special RSS presentation page and link to it next to the RSS subscribe button. On that page explain:

What RSS is
How the visitor will benefit from using RSS
Where they can get a free RSS aggregator (recommend one yourself!)
How they can install it (provide step-by-step instructions)
How they can subscribe to your RSS feeds
Why they should subscribe to your own RSS feeds
Then, on this same page, include the links to all of your RSS feeds.

5. TOP CONTENT

If you update your blog frequently, your less recent top content keeps being pushed down and down, where most of your blog readers will never bother to look for it.

Overcome this frequent blog problem by creating a list of your top posts, clearly displayed and available from each of your pages. Depending on the topic you cover, you might want to place these headlines as close to the top of your blog as possible, in order to quickly entice your new visitors to start reading the best of what you have to offer and then use this content to convert them to loyal readers and subscribers.

6. THE HEADLINE

The site or blog headline will tell your visitors what to expect from reading your blog and will answer their key question: "What's in it for me?"

Make sure that your blog headlines gives this reason and the story inviting enough for your readers to keep reading.

7. LEAD YOUR VISITORS TO YOUR MDA

MDA is the Most Desired Action you want your visitors to take on your site, ranging from a subscription to your e-zine to requesting more information about your services or ordering your product / getting more information about it.

Your blog will be of great help in this area, but only if you actually lead your visitors to this action. Putting this information in your menu simply is not enough.

Experiment putting some copy for your MDA directly below each blog post (on your permanent blog post archives pages) and also prominently in your left- or right-hand columns.

If you're providing multiple services or products, promote each of them next to the appropriate posts, based on post topics.

And yes, this is more important than having dozens of Google AdSense ads on your blog ... if you want to use your blog as part of your marketing mix.

8. LOOK DIFFERENT

Blogs are usually not heavily designed and most of them look exactly the same. While light design is one of the positive sides of blogs, you should invest some effort in making your blog stand-out visually.

Don't cram it with design, but still make sure it's different than every other blog in the market.

9. USE YOUR OWN DOMAIN

Having a subdomain.typepad.com type sub-domain might be the easiest choice, but don't forget that your domain name is your permanent online address and part of your online brand.

Consequently, invest a couple of dollars to get your own domain name, to enforce your brand, as well as making it easier for your readers to access your blog.

10. DON'T FORGET YOUR KEYWORDS

What keywords do you want your content and blog to be found under in the search engines?
Don't forget to implement these keywords in the titles and body content of your blog posts.

I'm not saying you should write your posts to please the search engines, but at least keep them in mind and use them when possible, without taking anything away from the actual content.

11. INTERACT WITH YOUR READERS

If you're blogging for business, don't forget about business oriented reader interaction.

Mainly, solicit questions from your readers, pertaining to your field of expertise, and then respond to them via your blog.

Post interesting client case studies. When you get a review, post it or link to it. And so on...

12. BLOG SPECIFIC PROMOTIONAL TACTICS 101

a. Intensively market your RSS feeds
b. Ping the search engines and directories after you update your blog, using a free service such as http://www.pingomatic.com

13. DON'T FORGET ABOUT THE CONTENT

And of course, none of the above won't make any difference at all if you don't provide high-quality, interesting and frequent content.

These 13 points are of course only the most basic stuff, but enough to help you get on the marketing optimization train.

Investing In The Stock Market!

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Had you invested in real estate (or property as it is known in the UK) over the past 30 years or so you would have done very well.However, prices have now reached such a level that it may not be such a good investment especially in the short-term. Over the long-term,prices are sure to appreciate once again. Outside of bricks and mortar, the stock market still provides the skilled individual with one of the best opportunities at capital appreciation.

With the globalization of markets now having been accomplished enabling an individual to trade in almost any market across the globe from anywhere, we will concentrate on the American market which is still the biggest and most liquid market. Having decided to concentrate on the American market, you now must decide on what sort of companies offer the best opportunities for making a profit.Small technology or biotechnology companies can sometimes offer spectacular gains in the short-term. However, your chance of picking them out of the bunch in advance of the significant move in their share price, unless you are equipped with insider knowledge, is pretty slim. Therefore concentrating on large established companies is a much safer route to profits.Concentrating on the constituent members of the S&P 500 index provides the investor with ample scope for investment in established companies. I will therefore solely turn my attention to the latter to provide the necessary fodder.

When viewing companies in an index such as the S&P 500, you have got to be aware of the different sectors within it. In order to reduce your risk, it is inadvisable to invest in more than one company in any one sector at a given time. Picking on a sector that is currently advancing, or about to advance, and then looking for the most eligible company within that sector likely to profit from the favorable tide can be very rewarding. The company chosen needn't be the market leader in that particular sector. If Xxon Mobil, for instance, dominates the Oil and Gas sector, a second or third line company in that sector such as Occidental Petroleum may give you a much better opportunity to profit from rising oil prices for example.

Ideally you are looking for an established company in a sector that is advancing, or likely to advance, that is paying increasing dividends from rising profits, and with a p/e ratio ( that is payment/earnings) less onerous than its peers.P/e ratios are only relevant when comparing companies within the same sector. Another approach to picking a company whose share price is likely to advance is to pick a large company with good prospects when it is temporarily out of favor with the market. Both AIG Group and Pfizer have been in the doghouse over the last couple of years enabling astute investors to profit from their short-term unpopularity.With the latter strategy timing is of crucial importance.

If you segregate, say, $20,000 as starting capital for investment purposes from other funds required to live from month to month, the best place to initially put it is into a high-interest bank account until such time as you are ready to invest. This account should pay 4% or better interest per year.You would then limit your investment in any one share to 15% of the total, or $3,000 including dealing expenses per investment. It is inadvisable,especially in jittery markets, to have more than 70% of the total invested at any one time.The market has moods and when everything looks black on the horizon good shares will fall back with the mediocre and bad ones giving you a chance to buy a good share at cheap prices for recovery.

If you do your own research, it is best to use and execution- only broker who are cheaper than those offering investment advice. Pick a large broker with many years service in the market. If you want a broker offering investment advice, go for one who has a proven record of offering impartial advice in the market as recommended by a friend or acquaintance.

Islamic banking!

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Even though a draft framework for non-interest banking was issued in March 2009 by the Central Bank of Nigeria (CBN), its position on Islamic banking did not become much of an issue until a few months ago when the final guidelines were released.

According to the acting director of banking supervision at the CBN, D.A. Eke, "The objective of the framework is to provide minimum standards for the operation of non-interest banking in Nigeria while serving as an exposure for comments, suggestions and/or inputs by stakeholders."

The suggestions and/or inputs from stakeholders never came. More than two years after, the CBN released the final guidelines which cover only non-interest banking according to Islamic commercial law and jurisprudence ‑ and all hell was let loose.

The furore was such that the regulator could not ignore even though a few weeks before the CBN governor, Lamido Sanusi, had said the complainants were in the minority.

Doing a volte-face, Mr Sanusi said he has instructed that the guidelines be re-written and re-issued after examining all of the criticisms that have trailed the initial guidelines, as it was capable of being misinterpreted to mean that Islamic banking is the only type of non-interest banking that is allowed.

"It was never our intention to restrict non-interest banking to Islamic banking but we understand why it would be viewed that way," Mr Sanusi said.

Revised guidelines

In the revised guidelines, the CBN recognised two types of non-interest banking: non-interest financial products and services based on principles of Islamic commercial jurisprudence, as well as financial products and services based on any other established rules and principles. The regulator added that in line with its objective of promoting financial inclusion in Nigeria, it will issue guidelines pertinent to other types of banking to individuals and groups wishing to practice non-interest banking based on established rules and principles other than Islamic.

The Central Bank said it was introducing Islamic banking in order to open up the financial space to those who were locked out. "Financial inclusion is a major challenge. Almost 50 percent of adult Nigerians do not have access to capital. What is keeping them out? Many things. But to the extent that non-interest banks can address some of the reasons for their staying out, we should encourage them," said CBN deputy governor (financial systems stability), Kingsley Moghalu, while assuring Nigerians on the genuine intentions of introducing the variant of non-interest banking.

At a seminar organised by Apostles in the Market Place (AiMP), a group of Christian professionals, in Lagos last week, Mr Moghalu said the CBN was open to receive applications from other firms that wish to operate other variants of non-interest banking. "I like to very clearly reassure Nigerians that non-interest banking is part of our plans to increase the inclusion into the financial system of those who have stayed out of the banking system for various reasons. I like to assure Nigerians very clearly that there is no agenda. It is simply finance; it is not about religion." Participants agreed that while there was a need to redefine the function of capital, it was equally necessary to ensure that such redefinition is not seen to favour one religion over another.

Capacity and the lack of it

One of the speakers, Brett Johnson, founder of Institute for Innovation, Integration and Impact, said the impact of the global financial crisis has necessitated a re-purposing of capital in order to correct some of the negative fallout of the crisis. Tracing the history of profit-and-loss sharing banking to faith-based financing starting in Biblical times, he said the concept of exorbitant interest payments was responsible for the current global economic glut.

He said that while Nigeria is excited to join other countries in Islamic financing, it may not offer an automatic solution unless the regulator steps up its regulatory prowess. He alluded to capacity as a constraint in Nigeria, adding that, "Islamic banking has not necessarily produced great returns." Referring to a report last June by the New York-based World Street Journal, he said the regulators must do a thorough job before approving any application for non-interest banking, or Islamic banking for that matter. According to the report, Sharia-compliant banking products have been a flop in Britain. Quoting Junaid Bhatti, part of the team that set up Islamic Bank of Britain (IBB), the first Sharia-compliant bank approved by the Financial Services Authority, he said the sector has been a big disappointment.

"As we now approach the sixth anniversary of IBB's launch, I'm sad to finally have to admit that Islamic finance in the UK has been a huge flop," he said. "IBB may still be limping on as probably the last bastion of the cause, but it's difficult to imagine it holding out for much longer," Bhatti said.

Back in Nigeria, given the place of regulatory failure in the financial crisis two years ago, it may be too soon to jump into another game. This is particularly so as just a few competent hands currently exist in the field. According to Hajara Adeola, the chief executive officer of Lotus Capital, an ethical investment firm specialising in Sharia-compliant asset management, capacity crunch is crucial, "even at the Sharia advisory board level. At the operator level, training can take care of it. It will take time, so I don't think any institution should rush into this business."

Mr Moghalu said the Central Bank was aware of the problem of capacity which is why it has stepped it up in-house in order to match the demand of the market. "This is a new thing in Nigeria. We have thought of capacity and have equipped our regulatory officers. We have sent them on a lot of training. So we are addressing the issue of capacity in the industry."

Wraping up business at Year End

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If you're a small independent business owner it could serve you well to take a birds eye view of your entire money making process for your business.

1. Looking at this year's activity and make sure you've identified your most profitable customer - profile the characteristics that help you identify similar customers in the marketplace so that you develop your message specifically to target the customers with the characteristics you've identified as those of your most profitable customer.

In my promotional products business I want relational customers vs. transactional customers. All of my marketing and sales efforts are designed to attract the client that is looking for a trustworthy, reliable promotional products distributor with great ideas. The customer that wants a cheap transaction with no loyalty on either side of the table is probably not my customer and I'm not offended when they don't want to buy from me. As I've been doing business over the last 15 years I've identified the transactional customer as a time waster for me. I end up doing a lot of research and servicing of an account with very little profit.

2. Establish or fine tune the marketing message to the prospect you've identified with your profile as most likely to be your most profitable customer. Look at everything you are doing, saying and printing about and for your business - Is your message clearly spoken to the target customer?

3. Identify the most effective activity to reach your prospects and schedule that activity so that it happens consistently. If you bring customers in by running ads in your local newspaper then schedule them for the entire year. You get a better rate if you contract for a years worth of advertising.

If the activity that brings you business is your weekly email newsletter then sit down and plan your editorial calendar for the year and begin to write the articles now. You can always edit or add to them before you send them out for those written far in advance. By using autoresponders you can schedule the email newsletter well in advance.

If the activity that builds your customer base is face to face selling then you need to be sure that you are calling on customers to schedule appointments. You should identify how many prospects you need to call to get appointments, and how many appointments you need to create sales for your product.

4. Understand your sales cycle. Whether or not you are running ads, sending email or scheduling appointments you need to understand what happens and how long it takes to finally close the sale. The rule of thumb is "the more costly the investment the longer the sales cycle." No matter what you sales cycle is you need to plan your most productive activity to steadily continue to draw in new prospects while you're finalizing sales for other customers.

I have a few small business owners who ask if they should take the time to do this kind of review of their business plan every year. YES, in fact, do a mini version of this every week to be sure that you're on track and making money consistently. Your income will be consistent if you've

Identified your customer
Established your most effective message
Identified the most productive activity
Understand your sales cycle

Take the time to do this review before the end of this year and give yourself the gift of more business next year.

Learn From Your Business Mistakes

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We all make mistakes in business. The important issue is that we learn from them and apply the lessons in both our online and off-line business activities. One of my most costly mistakes happened about twelve years ago in the off-line business world. However, the lessons I learnt are just as applicable online as they are off-line.

Having established a small mail order business part-time, I decided to expand the business using direct mail techniques. I had read all the books and attended a course and it seemed like the best approach to achieve my goals. After approaching various mailing list providers, I decided I had found the perfect list to reach my target market.

Pricing was obtained from the list owner and he was happy to provide me with small quantities of names initially so that I could test his list. These tests were successful enough for me to decide to undertake two large mail campaigns one after the other. I was very confident that I would be receiving countless orders and soon leaving my full-time job.

Disaster struck with the first mailing and the second mailing was too far progressed to stop. The initial sign was a significant increase in the dead letter rate. Then the quantity of orders was less than half what I expected. The second mailing had similar results. I was significantly out of pocket and I had to stay in my full-time job to repay the debts I had created.

Shortly thereafter, I began to read reports that the list owner was being investigated for fraud and other criminal charges. All in all, a sorry state of affairs.

The key lessons I learnt from this experience were:

Always check the integrity of who you are doing business with - especially if you have not had previous dealings with them.
Never assume that limited test results will be duplicated in larger scale tests.
Never over-commit to promotional activity - it is better to grow slower than to lose your hard earned money.
The stated size and quality of a mailing list should be regarded with caution.
Ensure you have sufficient profit margin in your product to be able to survive should your response be very poor - especially in direct marketing activities.

Today, the lessons I learnt are applied to my online business activities in the following ways.
Solo mailings to lists of newsletter subscribers are done with caution. Some list owners will inflate their subscriber numbers to encourage advertisers to use their services. The first thing I do is subscribe to the newsletter to see the quality of content and what others are advertising via solo ads.

Then I run a classified ad in the newsletter to test the responsiveness of the subscribers. This also gives me an indication of whether the stated size of the list is true or not. I have had better response from a list of 20,000 than what I received from a list of over 200,000. Many factors can influence such a result.

While you should receive a far better response from solo ads than classified ads, it still pays to test wherever you can. If a classified ad in the newsletter did not result in responses, I would not advertise using the solo ads. However, I might test a few different classified ads to see if the initial results were correct before moving on to other possibilities.

It is worthwhile to "do the numbers" before spending on advertising. While many marketing experts talk about the 'lifetime value of a customer' concept, those whose business activities centre on promoting the products of affiliate programs should regard this with caution. Instead, determine how many must be sold so that the commission you receive will cover the cost of your advertising.

The higher the percentage response to your offer you need to cover your advertising cost, the greater the chance you will make a loss. Do not rely on industry statistics or averages to make your decisions. Keep careful records of your activities so you know what works, what is to be avoided and what to expect from future promotional activities.

Finally, exercise caution when considering safe-lists and any type of email address lists that can be purchased. My experience is that there are NO truly safe-lists available other than having your own opt-in list. Any form of bulk email to people who have not agreed to receive your message will damage your business reputation and your prospects of making a decent living on the Internet.