If you’ve searched financial websites you’ve probably noticed a lot of them tout the services of professionals who specialize in “wealth management”. I don’t know about you but at the moment I’m not particularly concerned with ”wealth management”. I’m more concerned about “poverty management”. At some point I’d like to be concerned with “middle income” management. I need
financial help from a different type of professional or hero, thus the creation of “Money Man”.
Money Man is designed to bring a blue collar approach to money management, or perhaps more accurately, financial survival. He will help various families through issues faced by people trying to get by in these tough economic times. One minefield families have to face on occasion is buying a car. In the initial installment of Money Man, Money Man will come to the rescue of a family that is car shopping.
This can be a traumatic experience as the family will face such budgetary enemies as “The Closer”, “The Finance Guy” and “The Switcher”. Hopefully you’ll enjoy Money Man as he helps the Walton family. As the Waltons’ will discover the pressure exerted at a car dealership can be nearly that exerted at “Time Share Mountain”.
Friday, February 24, 2012
The Downsides to Physically Investing in Precious Metals
The recent spikes in gold prices, and prognostications of doom for the global economy, have many investors considering the benefits of turning to precious metals as an investment. Throughout human history, precious metals (notably gold and silver) have been used for exchange, and they are thought to be of objective and tangible value.
In a world where fiat currencies change in value without much reference to “backing” or the “market,” there are those that believe that true value can be found in precious metals. While there are ways to invest in precious metals through stocks and funds, there has been an interest recently in physical metals.
The most obvious way to invest in gold, silver, platinum and other precious metals is to actually get your hands on the metals. Gold and silver, especially, can be bought in coin form, in order to make it easy to transport and store. You can hoard coins, and hope they rise in value. It is also possible to buy bars, wafers and other forms of physical metals.
You can also invest in what are called “certificate” metals. Instead of receiving the physical metal physically, it is stored somewhere else for you, and you are issued a certificate that indicates how much of the metal you own. In some cases, you are merely told how much of the metal you own, while in others you actually receive a listing of the serial numbers corresponding to the bars that are considered yours. It is also possible to use GoldMoney and Bullion Vault to invest in electronic gold and other metals.
Realize, too, that there are metals ETFs that are considered “ownership” in physical metals. However, many die-hard physical metals investors are a little uncomfortable with this concept.
The upside to physically investing in metals is that you actually have something tangible — that you can touch — to show for your investment. And, if you believe that our current monetary system is on the verge of collapse, you will have the advantage in owning something that many believe possesses intrinsic value. Even if the system doesn’t completely collapse, physical metals can act as a hedge against future inflation, and increase in value.
Realize, though, that there are downsides to investing in physical metals. As you weigh the pros and the cons of investing in precious metals, consider these drawbacks:
Costs: Whenever you purchase physical metals, whether you buy coins, or invest via certificate, you pay a premium. You will pay more than the market value for the metal. Additionally, if you don’t store it yourself, on site, you will need to pay for storage. Certificate metals usually come with regular storage fees, and you will have to pay for transport if you have it delivered to your location.Theft: There is always the possibility of theft when you have precious metals. You run the risk if you store it on site, at your home, and you also run the risk of having the storage facility robbed. If you store your precious metals in a safety deposit box at the bank, make sure that the bank has insurance specifically meant to cover such thefts; FDIC/CDIC insurance won’t do the trick.Accessibility: If you store your precious metals at your home, then accessibility isn’t a problem. However, if you have certificate gold stored at EverBank or some other facility, you might not be able to easily access your stash. If an economic and civil apocalypse actually happens, getting access to your physical metals might be difficult. Even if you just decide you want your metals transported to you, you will still have to wait for shipment.Liquidity: Precious metals might not be immediately liquid. In many cases, precious metals aren’t recognized as legal tender (the state of Utah in the U.S. is an exception, and not all coins are recognized). So you have to sell them for legal tender, or come to a barter arrangement, if you decide you need to convert your physical precious metals into actual, recognize money.Taxes: Most precious metals in physical form are taxed as collectibles. In the U.S., this means that you pay a 28% tax rate on capital gains. So, if your precious metal increases in value, and you sell it, you don’t get special tax treatment like you would with long-term capital gains — no matter how long you had the metal in your possession. (The exception to this rule is jewelry, which isn’t taxed at all, since it is considered heirloom.)
Adding some physical metals to your portfolio might not be a bad thing. It adds diversity and a measure of security to your holdings. However, you do need to carefully weigh the pros and cons associated with investing in physical metals.
The Downsides to Physically Investing in Precious Metals, 5.0 out of 5 based on 2 ratings Tagged as: gold, physical gold, platinum, precious metals, silver, taxes
In a world where fiat currencies change in value without much reference to “backing” or the “market,” there are those that believe that true value can be found in precious metals. While there are ways to invest in precious metals through stocks and funds, there has been an interest recently in physical metals.
The most obvious way to invest in gold, silver, platinum and other precious metals is to actually get your hands on the metals. Gold and silver, especially, can be bought in coin form, in order to make it easy to transport and store. You can hoard coins, and hope they rise in value. It is also possible to buy bars, wafers and other forms of physical metals.
You can also invest in what are called “certificate” metals. Instead of receiving the physical metal physically, it is stored somewhere else for you, and you are issued a certificate that indicates how much of the metal you own. In some cases, you are merely told how much of the metal you own, while in others you actually receive a listing of the serial numbers corresponding to the bars that are considered yours. It is also possible to use GoldMoney and Bullion Vault to invest in electronic gold and other metals.
Realize, too, that there are metals ETFs that are considered “ownership” in physical metals. However, many die-hard physical metals investors are a little uncomfortable with this concept.
The upside to physically investing in metals is that you actually have something tangible — that you can touch — to show for your investment. And, if you believe that our current monetary system is on the verge of collapse, you will have the advantage in owning something that many believe possesses intrinsic value. Even if the system doesn’t completely collapse, physical metals can act as a hedge against future inflation, and increase in value.
Realize, though, that there are downsides to investing in physical metals. As you weigh the pros and the cons of investing in precious metals, consider these drawbacks:
Costs: Whenever you purchase physical metals, whether you buy coins, or invest via certificate, you pay a premium. You will pay more than the market value for the metal. Additionally, if you don’t store it yourself, on site, you will need to pay for storage. Certificate metals usually come with regular storage fees, and you will have to pay for transport if you have it delivered to your location.Theft: There is always the possibility of theft when you have precious metals. You run the risk if you store it on site, at your home, and you also run the risk of having the storage facility robbed. If you store your precious metals in a safety deposit box at the bank, make sure that the bank has insurance specifically meant to cover such thefts; FDIC/CDIC insurance won’t do the trick.Accessibility: If you store your precious metals at your home, then accessibility isn’t a problem. However, if you have certificate gold stored at EverBank or some other facility, you might not be able to easily access your stash. If an economic and civil apocalypse actually happens, getting access to your physical metals might be difficult. Even if you just decide you want your metals transported to you, you will still have to wait for shipment.Liquidity: Precious metals might not be immediately liquid. In many cases, precious metals aren’t recognized as legal tender (the state of Utah in the U.S. is an exception, and not all coins are recognized). So you have to sell them for legal tender, or come to a barter arrangement, if you decide you need to convert your physical precious metals into actual, recognize money.Taxes: Most precious metals in physical form are taxed as collectibles. In the U.S., this means that you pay a 28% tax rate on capital gains. So, if your precious metal increases in value, and you sell it, you don’t get special tax treatment like you would with long-term capital gains — no matter how long you had the metal in your possession. (The exception to this rule is jewelry, which isn’t taxed at all, since it is considered heirloom.)
Adding some physical metals to your portfolio might not be a bad thing. It adds diversity and a measure of security to your holdings. However, you do need to carefully weigh the pros and cons associated with investing in physical metals.
The Downsides to Physically Investing in Precious Metals, 5.0 out of 5 based on 2 ratings Tagged as: gold, physical gold, platinum, precious metals, silver, taxes
Thursday, February 23, 2012
Is Modular Construction Better?
With the current state of the economy, everyone is looking for innovative ways to maximize savings wherever they can. Real estate developers, analysts and investors are no different. They see the value in maximizing return on investment without sacrificing quality.
The modular construction boom is coming to the forefront of the Western Canadian real estate investment market. Companies like Rose Country Income Fund have adopted the state-of-the-art methods used in modular construction to improve build quality, produce larger and more profitable developments, and best of all – save time and money.
The history of modular, also known as pre-fabricated homes, dates back to the early 1900’s. The concept was simple — pre-construct a home or building in a factory, then ship it to the development site to have it assembled in a shorter period of time. The industry exploded in the late 1940’s with the end of World War II. Soldiers returning home to their families were all looking to buy a home. Demand skyrocketed as traditional construction methods could not keep up.
Over the last decade, the modular construction industry has become highly sophisticated and the quality of the product has increased drastically to a level on par with or better than traditional construction methods. Pre-fabricated construction methods are now used for commercial buildings, multi-family residences, hotels, motels, and even luxury homes due to the cost savings, quality control and fully customizable options.
The following is an assessment on the values and benefits of modular construction versus traditional building methods. Let’s explore some of the key advantages that help maximize return on investment for our investors:
Shorter Build Times – pre-fabricated buildings can be erected in 50-60% less time than traditional on-site construction, leading to cost and time savings, in addition to earlier returns on investment. For example, a modular built condominium can be ready for occupancy in as little as 45 days from the date the site prep and foundation is complete.Superior Quality – factory-based quality control standards are the highest in the industry, providing higher quality products versus traditional construction methods. All angles and lengths are exact making finishing less time consuming.Economies of Scale – repetition or multiple orders of prefabricated units leads to considerable cost savings on multi-family and commercial development projects, thus increasing ROI.Reduced Site Labour Requirement – the erection and finishing of a modular building requires less time and workers than traditional construction, producing added cost and time savings. This can be a significant benefit when building in a tight labor market where competition for skilled labor is at a premium.“Green” Construction – highly efficient factory production produces significantly less waste and is better for the environment.Safer Construction – modular construction sites have proven to be significantly safer than traditional on-site building especially in inclement weather conditions.
All of the benefits add up to one thing – a superior investment opportunity. Every analyst and investor wants to maximize their return on investment, and with modular construction we need not sacrifice quality to produce a significantly higher return.
The modular construction boom is coming to the forefront of the Western Canadian real estate investment market. Companies like Rose Country Income Fund have adopted the state-of-the-art methods used in modular construction to improve build quality, produce larger and more profitable developments, and best of all – save time and money.
The history of modular, also known as pre-fabricated homes, dates back to the early 1900’s. The concept was simple — pre-construct a home or building in a factory, then ship it to the development site to have it assembled in a shorter period of time. The industry exploded in the late 1940’s with the end of World War II. Soldiers returning home to their families were all looking to buy a home. Demand skyrocketed as traditional construction methods could not keep up.
Over the last decade, the modular construction industry has become highly sophisticated and the quality of the product has increased drastically to a level on par with or better than traditional construction methods. Pre-fabricated construction methods are now used for commercial buildings, multi-family residences, hotels, motels, and even luxury homes due to the cost savings, quality control and fully customizable options.
The following is an assessment on the values and benefits of modular construction versus traditional building methods. Let’s explore some of the key advantages that help maximize return on investment for our investors:
Shorter Build Times – pre-fabricated buildings can be erected in 50-60% less time than traditional on-site construction, leading to cost and time savings, in addition to earlier returns on investment. For example, a modular built condominium can be ready for occupancy in as little as 45 days from the date the site prep and foundation is complete.Superior Quality – factory-based quality control standards are the highest in the industry, providing higher quality products versus traditional construction methods. All angles and lengths are exact making finishing less time consuming.Economies of Scale – repetition or multiple orders of prefabricated units leads to considerable cost savings on multi-family and commercial development projects, thus increasing ROI.Reduced Site Labour Requirement – the erection and finishing of a modular building requires less time and workers than traditional construction, producing added cost and time savings. This can be a significant benefit when building in a tight labor market where competition for skilled labor is at a premium.“Green” Construction – highly efficient factory production produces significantly less waste and is better for the environment.Safer Construction – modular construction sites have proven to be significantly safer than traditional on-site building especially in inclement weather conditions.
All of the benefits add up to one thing – a superior investment opportunity. Every analyst and investor wants to maximize their return on investment, and with modular construction we need not sacrifice quality to produce a significantly higher return.
Wednesday, February 22, 2012
Dollar Matters: Family Matters
When it comes to finances, family can add a number of wrinkles to the situation. As you contemplate what’s next for your family, here are some great posts from around the PF blogosphere:
Here on Financial Highway, Myscha shares some great ideas related to family getaways. You don’t have to spend a lot to enjoy family time. My favorite activity is to go camping.
Over at Fiscally Sound, there is a guest post about cosigning for your child. Even though you may want to help, you still need to be careful. Can you trust your child to behave responsibly?
Melissa at Bible Money Matters takes a look at when you need to cut the cord. When should you stop covering your child’s expenses and require that he or she take on more responsibility?
The “sandwich generation” is taking care of kids and of their aging parents. Benjamin at the Quizzle blog takes a look at how you can cope with the financial stress that can come with your care of aging parents.
Teacherman dives into the Old Age Supplement debate over at Sustainable Personal Finance. A great read regarding the OAS program.
As your family expands, you need to ask yourself whether you should buy a bigger house. Free From Broke shares some insights into the process, and how to decide what to do.
Here on Financial Highway, Myscha shares some great ideas related to family getaways. You don’t have to spend a lot to enjoy family time. My favorite activity is to go camping.
Over at Fiscally Sound, there is a guest post about cosigning for your child. Even though you may want to help, you still need to be careful. Can you trust your child to behave responsibly?
Melissa at Bible Money Matters takes a look at when you need to cut the cord. When should you stop covering your child’s expenses and require that he or she take on more responsibility?
The “sandwich generation” is taking care of kids and of their aging parents. Benjamin at the Quizzle blog takes a look at how you can cope with the financial stress that can come with your care of aging parents.
Teacherman dives into the Old Age Supplement debate over at Sustainable Personal Finance. A great read regarding the OAS program.
As your family expands, you need to ask yourself whether you should buy a bigger house. Free From Broke shares some insights into the process, and how to decide what to do.
Saturday, February 18, 2012
5 gasoline saving tips
With gasoline prices rise further, many passengers are more difficult to justify spending their hard earned money on high fuel costs and other needs, including food and energy. With this background, there are five simple steps you can take to help stretch your dollar a little further when it comes to fuel your car.
Carpool. If you have a child who had to go to school, consider the task of sharing the journey with other mothers who live nearby. This is especially useful if you can alternate days. Maybe you'll encourage the children on Monday and Wednesday, while another woman to fill the remainder of the day. It saves gas money, but also the way to school the kids have fun, because they go with friends. The same thing happened to the passengers on their way to work, who can share the responsibility and cost of travel between them.
Buying a car less. If you have an SUV or other large vehicle, gas mileage per gallon will be less if you have a smaller car. In general, most funds typically use more gasoline. If you want to save on fuel costs by buying a smaller car, is a good start.
Buying a hybrid car. This car is fairly new to the market, and still quite expensive, but many believe that the benefits outweigh the higher costs when their economies. Hybrid cars are generally better gas mileage per gallon, and this leads to big savings for its owners.
Turn off the engine. If you're stuck in traffic, which moves one inch per minute, and then just put the car in park and turned off the car. In traffic jams, just use more gas and do not bring anything really. Instead of spending, trying to get money without running out of the car in the parking lot or on the road to rescue. If you need to go to the store and will go for a minute, take the time to turn on the ignition. Besides saving gasoline, make sure that your car is stolen and turned off the engine take the keys with your business. Many will be surprised how many buyers actually leave their cars running while in the store.
Walk. If you live near a store, walk, and not behind the wheel. This saves not only the price of petrol in the car, but also in the common, everyday wear and tear that your vehicle will be on the trip. No more walking is good exercise and is usually safe for most people. So why not leave a few pesky pounds in the winter and save money on gasoline in the process.
These methods are the five most popular ways that will help you to save extra money where fuel is concerned. Some of the most obvious way is to reduce the price of gasoline inventories. If you earn $ 10 or $ 15 cost of gasoline every few days, you get a good price for one day and a very high price per gallon for the next trip. However, if you fill your car tank, while the low price, you will surely get the best deal. Not only that, but you can also end up saving you time at the gas station, when all the other customers in the queue to fill up before prices higher still.
Subscribe to:
Posts (Atom)