Saturday, July 26, 2008

Assets: Keep Yours From Disappearing Due to Escheatment

Ignore your assets and they could disappear.

So you've put some money away. And you're just letting it sit there and grow. Or maybe you've stashed away some valuables in a safe deposit box. If you haven't touched either in three to five years, you may never touch them again. It's all because of state laws - called escheatment or unclaimed property laws - that require banks and brokerages to turn over unclaimed property, including un-cashed payroll checks, stock, bank deposits and more, to the State. Property is classified as "unclaimed" when a Customer doesn't contact the bank where his/her money is held over an extended period of time and there has been no activity.

The State government is then supposed to identify and contact the rightful owners, and reunite them with their property; however, each State has a "who's who" list of people who "couldn't be found" and whose property has been seized

Here's what you can do to avoid this:
Login to any online account at least once a year
For each bank account, make a balance inquiry, small deposit or withdrawal at least once a year
Cash or deposit checks when you get them
Use gift cards, traveler's checks and gift certificates promptly
Visit your safe deposit box at least once a year
Notify any holder of funds of an address change or a new name
Make a list of all your account information including retirement plans, insurance policies, trust payments, and brokerage or other accounts, and give a copy to a trusted family member or friend

You can search the National Association of Unclaimed Property Administrators to see if your State is holding any money which belongs to you at www.unclaimed.org.

A special thank you to ING Direct for this report.  www.ingdirect.com

Thursday, July 24, 2008

Economy: Is It Really Recovering? Can We Believe What We Hear From Wall Street?

Important Warning Inside ...
by Larry Edelson

Imagine the following: The price of oil falls back to $107 ... gas prices drop to say, $3.50 a gallon or lower ... and food prices decline 10% or even 20%.

Simultaneously, the real estate market stabilizes. Foreclosures peak ... new and existing home sales pick up ... and consumers start spending again, opening up their wallets and purses.

What do you think the social mood and economic environment will look like if all that were to happen?

Naturally, the pundits on Wall Street will jump for joy, forecasting Dow 15,000 or higher and an end to the bull markets in gold and other natural resources.

In Washington, politicians will be talking about how our economy is the strongest in the world. Ditto for the Presidential contenders on the campaign trail.

And naturally, the Federal Reserve will claim victory over the worst financial crisis to ever hit the U.S.

Would Wall Street or Washington be right to make such claims?

Well, they can say whatever they want.

But that doesn't mean you should listen to them or that they're right. Let me tell you right now — under the scenario I laid out above, any signs or claims that our economy is recovering or that the boom in natural resources is over will be dead wrong.

Don't misunderstand me, I am not a pessimist.

To the contrary, I consider myself an optimist. I believe in mankind's ability to overcome any obstacle. That's especially true here in the great U.S. of A., where we have one of the world's most resilient, innovative, and hardest-working cultures on the planet.

So why am I warning you?

Because I think a pause in all the recent market trends is about to happen — right here and now — and I don't want you to be fooled by it, or the talk that will surround it.

If you are, you will likely make some of the worst investment decisions of your life.

Up first, since this market is already taking a reprieve ...

Oil: Has It Peaked For Good?

Not on your life. While I do expect a major correction that could bring oil down to the $107 level, no way, no how, have we seen the end to the bull market in energy.

First, from a purely technical point of view, a sharp but short-term pullback in the price of oil is warranted. Indeed, I warned you about it a few weeks ago.

Let's not forget that oil has rocketed ...

688% higher from its low of $18.65 at the end of 2002

152% since the beginning of 2007

So the correction you are witnessing now is perfectly normal and healthy for the oil bull. And it will merely be a setup for the next leg higher.

After all, what is the most basic definition of a bull market? One where prices make "higher highs" AND "higher lows."

The "higher low" component is exactly what oil is doing now — making a higher low, albeit over $100 a barrel!

Second, while official stats show a 3% decline in U.S. oil demand in the last six months, there is no sign of demand destruction in India or China.

Hard to believe, right?

But here are the facts ...

China imported 11% more crude oil in the first half of 2008 than a year earlier. In May alone, China's crude oil imports leapt by 25% to their second-highest ever.

Moreover, its oil consumption is estimated to jump 63% in 2020 as compared to 2006.

Demand for oil in India grew by 4.7% in the first half of this year. Demand for diesel climbed by as much as 25%.

And that's just those two countries!

Meanwhile, on the supply-side of oil ...

Canada's oil production peaked in 1974, Egypt's in 1993, Syria's in 1995, Ecuador's in 1999, Yemen's in 2001 and Mexico's in 2004.

Oil production is past its peak in 33 of the world's 48 largest oil-producing countries.

Even in Saudi Arabia, oil reserves are past their peak. The world's largest oil producer is finding it has to increasingly pump large amounts of water into its biggest oil field, Ghawar, to extract the remaining fuel out of it. A fuel which is of far lesser quality, no less.
Third, any uptick in the economy, even if it's temporary, will just be more bullish for oil.

Let's say the price of oil pulls back and finds a new base at around $107.

How high do you think oil will soar when there's an uptick in the U.S. and global economies (even if temporary)? Remember, its base will be almost 10 times higher than it was when the bull market began!

See, $150 oil doesn't seem so incredible when we're talking about support at $100 or $107. Even $200 doesn't seem so ridiculous, does it? It's amazing how used to higher prices we all get!

So, is the long-term bull market in oil and energy over? As I said previously, not a chance! I think the above facts and thoughts put it all into perspective.

Bottom line for oil: Keep your eyes peeled for my updates, especially in Real Wealth Report. I intend on using this pullback to position my subscribers for some mind-boggling profits on the next leg up.

Next ...

Has the Boom Ended for Other Natural Resources?

My answer: Also, no way! Like oil, many commodities were overdue for a sharp price pullback. They've soared for months on end without a decent retracement and shakeout. So, any pullback is unequivocally normal.

That applies to gold ... silver ... copper ... platinum ... and base metals like zinc, nickel, and aluminum. Plus, coal ... agricultural commodities ... and more.

But I repeat: It's nothing but a normal correction in a very strong long-term bull market. A process whereby "higher lows" are made, in a stair-stepping climb to much higher prices in the months and years ahead.

Indeed, you can see it in the chart of the CRB index, a basket of 19 of the most widely traded and used commodities on the planet.

Notice that awesome uptrend. Notice how even a 20% correction wouldn't change the long-term picture of the CRB index one iota.

What's more, the fundamentals continue to support the long-term bull market. I won't go into details here because you already know from my writings how three billion souls in India and China are driving this bull market in natural resources. Their demand, pitted against limited supplies in many natural resources, is the primary driver behind the bull market.

I will merely add that no matter how bearish any pullbacks may appear on the surface, always look below the surface and keep in mind the long term, which includes ...

The Worst Behind-the-Scenes
Inflationary Spiral Ever To Be Seen
In this Country

I estimate we're only about halfway through the inflation process that the U.S. is being put through by the powers-that-be in Washington, namely the Federal Reserve.

Already, in just the last two years, $4.3 trillion in fiat money has been created. But by the time the mortgage and credit crisis passes, hundreds of banks will have failed and I calculate the Fed will have to pump at least another $2 trillion into the economy.

Under our fractional reserve banking system, where every $1 of new money created by the Fed creates as many as $10 through relending, that means more than $60 trillion in fiat money could ultimately flood the economy.

Even if it gets back to a factor of half that, or 5 to 1, we're talking as much $30 trillion in fiat money working its way through the economy.

Inflationary? You bet it is.

A systemic devaluation of the dollar? Absolutely. It effectively slices the purchasing power of your current dollars in half, or worse, by increasing the existing supply of money by almost 200%.

In plain English, that means if it takes you $50,000 to break even today, a few years from now it could take you double that, or $100,000 — perhaps even more.

That's why — without question — you need inflation hedges ...

... and why, no matter what, I don't want you to be fooled by any short-term price declines in those hedges.

Now ...

What about the Dow?

As I pointed out in my January 17 and March 18 issues of Money and Markets, and again recently, the Dow is headed much lower.

Look at the updated version of my previous charts, and you'll see what I mean.

Important note: Once the Dow closes below the 11,000 critical support level on the charts, I expect to see it plunge to at least 9,200.

But if you're thinking of riding that out, think again: The ongoing devaluation of the dollar will make the decline much worse, and you stand to lose as much as another 50% of the purchasing power of your money.

That's another critical reason for you to keep your inflation hedges and buy even more on dips.

Best wishes,

Larry

P.S. To find out more about how the Dow is going to lose another 50% of its value ... how you can avoid being caught off guard ... and profit as well, please see the latest issue of my Real Wealth Report.

For just $99, you can get an annual subscription that includes 12 monthly issues, all my special reports, and loads of profit opportunities.


This investment news is brought to you by Money and Markets. Money and Markets is a free daily investment newsletter from Martin D. Weiss and Weiss Research analysts offering the latest investing news and financial insights for the stock market, including tips and advice on investing in gold, energy and oil. Dr. Weiss is a leader in the fields of investing, interest rates, financial safety and economic forecasting. To view archives or subscribe, visit http://www.moneyandmarkets.com.


Monday, July 14, 2008

Improving Your Credit Score

Beef Up Your Credit Score

Sunday, July 13, 2008

Spend Less and Make More

I was just talking to my sister about why people can't lose weight.  We disagreed.  I think the only real reason people are fat is because they eat too much and/or exercise too little.  Bottom line.  So eat less or exercise more.  To speed up the process do both.  I am not saying that a few people actually do not have a medical reason, sure a few do.  And the real psychological reason people eat too much is varied: comfort, love, loneliness, control, etc.

Now my question is why are so many of us struggling with money?  I think there are the same psychology going on here.  And to fix money woes is very similar to fixing weight problems.  Spend less or make more.  To fix your money problems faster do both!

Nobody likes to hear spend less.  They are fearful of losing their standard of living.  Rightly so.  I am not saying eat top ramon every meal, never buy new clothes, never eat out.  But I know all of us can cut some spending.  Do you really need to go to Starbucks everyday?  Eat out so often?  Buy the supersize?  A little savings here and there can really add up.  And big savings will add up even faster.  

To make more money find your cash machine.  (see cash machine in blog archive)

Add more value.  The only way people make more money is by adding more value.  Why are NBA players paid so much?  How hard can it be to go and play a game of hoops?  Their pay is based on the perceived value the fans feel.  The more value they add to the game the higher their pay.  Think of ways to add more value to your job. 

Saturday, July 12, 2008

Short Lessons

Short lessons from Larry Winget:

Do what you know is the right thing to do. And don't kid yourself; you always know the right thing to do. The right thing to do is rarely the easy thing to do.

Everything costs more than you originally thought it would.

Everything takes longer than you originally thought it would.

The more successful you become, the fewer friends you will have.

Stress comes from knowing what is right and doing what is wrong.

Implement now, perfect later.

If you aren't willing to put your money where your mouth is, you don't really believe in what you are doing.

There is no such thing as giving 110 percent. A hundred percent is all there is-you can't give more that all there is; that's why it's called all there is.

People will pay little attention to what you have to say.  Most won't even believe what you have to say.  They will, however, pay attention to see if you believe what you have to say.

Look at the numbers, look at the facts, and then trust your gut.

Knowledge is not power;  the implementation of knowledge is power.

It is impossible to grow without risk.

Don't worry too much about making the right decision.  Just make the decision, and then make the decision right.

What you resist persists.

Everything has a price, including both success and failure.  Choose either one and be prepared to pay the price.

Do the right thing.  No matter what.  Even when it is the unpopular thing.  Even when it is the expensive thing.  Even when it's embarrassing.  And if you have to ask if it's the right thing...it isn't.  You never have to ask whether it's the right thing.  You always know.  So do it!

Tuesday, July 8, 2008

Get Energized

I just found out about a sale from the Tony Robbins company. They have these really great vitamins and other health items. Now some are 50% off! Not bad. Why you might wonder is this in my financial freedom blog? It is very simple. How can you achieve your goals if you are not healthy and full of energy? How often do you put things off because you are just too tired? I know I do that a lot. I believe that all aspects of our lives are connected. How can I be truly happy if I don't feel good? Everyone needs balance in their lives.


Shape up for Summer Sale 468x50

Sunday, July 6, 2008

Find Your Cash Machine

One of the speakers I really enjoyed listening to at Wealth Mastery was Loral Langemeier. She had a no nonsense approach to finances. Her first steps are where are you right now in your finances and where do you want to be. How much passive income will you need to have total financial freedom? I know that I don't really know what that amount is so I am guessing and stating $100,000 a year. Broken down that is $8,333 a month or $2,083 a week or $416 a day. I can't even imagine the $100,000 but $416 a day I can imagine. No, not that I have any idea of how I would do that, but it is a number that is easier for me to believe.

Now that I have a goal, I need to make my cash machine. What is a way I can go out and make money outside of my job within 1 to 2 months? This was very hard for me. She said to do what you know. Take skills you already have and use them, not necessarily the dream job you want or the dream business you would like to open. That can come later, for now you just find a way to use the job skills you have now as a part time business. This is easier if you are lets say a teacher. You could tutor on the side, or even better open a tutoring business where you are the manager and you hire other teachers to tutor. She makes it sound so easy. Well, I have no idea how to take my job and turn it into a part time business. It is not as cut and dried as being a teacher. So I have decided to use not my job skills, but my job experiences. I am going to start a website geared to my industry. And since I work in the entertainment industry, maybe I can attract the general public as well. Seems like everyone likes to read about Hollywood.

I actually have a free coaching session that Loral gave me with one of her millionaire coaches and will see if the coach agrees that this should be my cash machine. I will blog about it after the meeting!

Friday, July 4, 2008

Create a Vision Board

Ok, I will admit that I read the Secret. Actually to be honest I read it a few times and listened to it on my ipod a few more. I was really trying to absorb it into my subconscious. But I have to say I don't think it was clear on some things. I do not believe I can cut out a picture of a car and I will magically get it. I wish it were that easy! What I do believe is: what I focus on and work towards, I can accomplish. So I think a vision board is a great tool to help me stay focused. To actually visualize what it is I want. To this end I am creating a vision board with pictures that represent my goals. I want to actually make at least two of them. I want a smaller version I can keep in my binder so I can look at it while I am keeping track of my progress towards my goals. I would like to put a larger one up in my room by the new printout of my goals. This way I can read my goals and see them right before I go to sleep. Nothing like giving the subconscious a reminder of what to focus on while I sleep! Remember, your subconscious mind is 30,000 times stronger than your conscious mind. It has the real power! So why not put that power to work towards goals your conscious mind knows you want?

Thursday, July 3, 2008

To Succeed in Life

"To laugh often and much;
to win the respect of intelligent people
and the affection of children;
to earn the appreciation of honest critics
and endure the betrayal of false friends;
to appreciate beauty;
to find the best in others;
to leave the world a bit better,
whether by a healthy child, a garden patch
or a redeemed social condition;
to know even one life has breathed easier
because you have lived.
This is to have succeeded."

-Ralph Waldo Emerson