10 Steps To Retire A Millionaire

Source:http://www.investopedia.com/articles/retirement/08/retire-millionaire-million-dollars.asp
Having a million-dollar portfolio is a retirement dream for many people. Making that dream come true requires some serious effort. While success is never a sure thing, the 10 steps outlined below will go a long way toward helping you achieve your objective.

In Pictures: 10 Retirement-Wrecking Moves

1. Set the Goal
Nobody plans to fail, but plenty of people fail to plan. It's a cliché, but it's true. "Plan" is the leading self-help advice from athletes, business moguls and everyday people who have achieved extraordinary goals. (Read Plan To Retire Rich for additional insight into how to develop a course of action to achieve your goals.)

2. Start Saving
If you don't save, you'll never reach your goal. As obvious as this might seems, far too many people never even start to save. If your employer offers a 401(k) plan, enrolling in the plan is a great way to put your savings on autopilot. Simply sign up for the plan and contributions will be automatically taken out of your paycheck, increasing your savings and decreasing your immediate tax liability.

If your employer offers to match your contributions up to a certain percentage, be sure to contribute enough to get the full match. It's like getting a guaranteed return on your investment. Finding the cash to stash may be a challenge, particularly when you're young, but don't let that stop you from pursuing future riches. (Read Invest On A Shoestring Budget for some additional tips on how to get started.)

3. Get Aggressive
Studies have shown that the majority of the returns generated by an investment are dictated by the asset-allocation decision. If you are looking to grow your wealth over time, fixed-income investments aren't likely to get the job done, and inflation can take a big chunk out of your savings.

Investing in equities entails more risk, but is also statistically likely to lead to greater returns. For many of us, it's a risk we have to take if want to see our wealth grow. Asset-allocation strategies can help you learn how to make picking the right mix of securities the core of your investing strategy. (Achieving Optimal Asset Allocation can help you minimize risk while maximizing return. Asset Allocation: One Decision To Rule Them All explains how to treat all your investments as a single portfolio to maximize returns.)

4. Prepare for Rainy Days
Part of long-term planning involves accepting the idea that setbacks will occur. If you are not prepared, these setbacks can put a stop to your savings efforts. While you can't avoid all of the bumps in the road, you can prepare in advance to mitigate the damage they can do. (Read Build Yourself An Emergency Fund to help structure your finances to avoid financial disaster.)

5. Save More
Your income should rise as time passes. You'll get raises, you'll change jobs, and maybe you'll get married and become a two-income family. Every time more cash comes in to your pocket, you should increase the amount that you save. The key to reaching your goal as quickly as possible is to save as much as you can. (Read why it might not be better for one spouse in a two-income family to leave work in Consider The Outcomes When Cutting An Income.)

6.Watch Your Spending
Vacations, car, kids and all of life's other expenses take a big chunk out of your paycheck. To maximize your savings, you need to minimize your spending. Buying a home you can afford and living a lifestyle that is below your means and not funded by credit cards are all necessities if you want to boost your savings. (The Beauty Of Budgeting can help you figure out how to make it to the end of the month before you run out of money.)

7. Monitor Your Portfolio
There's no need to obsess over every movement of the Dow. Instead, check your portfolio once a year. Rebalance your asset allocation to keep on track with your plan. (Read Rebalance Your Portfolio To Stay On Track to learn more.)

In Pictures: How To Make Your First $1 Million

8. Max Out Your Options
Take advantage of every savings opportunity that comes your way. Make the maximum contribution to tax-deferred savings plans and then open up a taxable account too. Don't let any chance to save get away. (Read Not All Retirement Accounts Should Be Tax-Deferred to learn the advantages of a taxable account.)

9. Catch-Up Contributions
When you reach age50, you are eligible to increase contributions to tax-deferred savings plans. Take advantage of this opportunity! (For more ways to save money and increase your nest egg for the fast-approaching golden years, read Retirement Savings Tips For 55- To 64-Year-Olds.)

10. Have Patience
"Get-rich-quick" schemes are usually just that - schemes. The power of compounding takes time, so invest early, invest often and accept that the road to riches is often long and slow. With that in mind, the sooner you get started, the better your odds of achieving your goals. (Read For IRAs, Time Is Money for a discussion of the value of compounding.)

The Reality Of Retirement
Retirement might seem far away, but it when it arrives nobody ever complains about having too much money. Some people even question whether a million dollars is enough. (To find out why this magic number has lost some of its luster as a retirement savings target and to temper your expectations regarding the lifestyle you will be able to afford during retirement, read Can You Retire On $1 Million?)

That said, with lots of planning and discipline, you can reach your retirement goals and live a comfortable life after work.

Read Managing Your Income During Retirement to find out how to make your hard-earned savings last as long as you need them to.

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How Much To Save To Become A Millionaire

Source:http://www.investopedia.com/articles/05/032105.asp
"You have to buy real estate!" Now how many times do you hear that during a real-estate bubble? If you take this advice, it may be wise to ask yourself if you have too much money tied up in your home and not enough in savings. With all the talk of a diminishing social security system, the need to save more for retirement seems inevitable. So, let’s look at some of the options for building that million you need to retire in style.

Where Are Our Savings?
If you have a great deal invested in your house, remember, listed homes and other property can take anywhere from two weeks to more than a year to sell. Ask any agent who sold homes back in the 1980s, when prime interest rates were averaging over 11%! Still, property seems to be priority. In 2004, the household savings rate averaged a meager 0.8% of disposable income (the rate was 7% over the three previous decades). This 0.8% is the lowest level since the Great Depression (Business Week Online, "Our Hidden Savings", January 2005). Is this because Americans are putting too much of their savings into their homes or are we just bad at saving money?

So exactly how much should you save annually for your retirement? Although there is no correct answer here, most financial planners will tell you that you should be saving around 15-20% of your annual gross income. This figure may sound unattainable for many, but suppose your employer matches contributions of up to 6% of your salary - now you need to save only 9%!

Sizing up the Options
Let's look at how some retirement savings vehicles can help you reach your goals:

401(k), 403(b) and Other Employer-Sponsored Retirement Plans
These are perhaps the best savings vehicle for most of the working population. You need to take advantage of your company plan if one is available. Not only do the earnings in the account grow tax-deferred, but a simple contribution of 6% can help reduce your tax bill if hte contributions are made on a pre-tax basis, as pre-tax contributions are excluded from your gross income for income tax purposes.

Traditional and Roth IRAs
Individual retirement accounts are available to those individuals with qualified compensation. Traditional and Roth IRAs are funded with after-tax dollars. However, if your income level qualifies, you can receive a tax deduction for contributions to your traditional IRA. The major difference between the two IRAs is that earnings in the Traditional IRA grow tax-deferred, while those in the Roth IRA grow tax-free. (For a more detailed comparison, see Roth Or Traditional IRA...Which Is The Better Choice?)

Simplified Employee Pension (SEP)and SIMPLE IRAs
The SIMPLE IRA is a tax-favored retirement plan that certain small employers (including self-employed individuals) can set up for the benefit of themselves and their employees.

SEP IRAs are plans that can be established by the self-employed or those who have a few employees in a small business. The SEP lets you make contributions to an IRA on behalf of yourself and your employees. The SEP and SIMPLE IRAs are popular because they are simple to set up, require little paperwork and allow investment earnings to grow tax-deferred.

Taxable Brokerage Accounts
These allow you to invest additional funds after you have maximized all of your retirement account options. Brokerage (cash) accounts can serve also as good savings vehicles for a particular goal such as a home or yacht. Be aware, you’ll need to pay taxes on the income generated in these accounts in the year that it is paid. (For further reading on how finding a broker, see Brokers and Online Trading.)

Getting Disciplined
So you know about some of the powerful savings tools, but you may be wondering where you get the extra cash to invest. Well, there can be a number of places - it first starts with your budget. Match up your monthly income with your expenses for the month. Can you cut back on your dining out? Do you really need that manicure once a week? Can you save money on your current insurance? Try shopping around for other carriers for better rates. Do you really need permanent life insurance (whole or universal life) when you could be saving hundreds with term insurance? (see Buying Life Insurance: Term versus Permanent)

After you’ve skimmed down the budget, there are three keys to making your million dollars. First, as we already mentioned, you must take advantage of any type of employer match program. If you have a 401(k) plan at work and the employer matches up to 6% of your pay, you should contribute at least 6% of your pretax income to the plan. Second, set your accounts up on automatic investment plan, so each month income goes to forced savings. And lastly, invest in the best savings plans first and weed out the bad.

Reaching $1,000,000 with Ease
To take full advantage of your retirement savings vehicles, try to contribute the maximum limit. In 2009, you can contribute up to $16,500 to a 401(k) plan ($22,000 if you are age 50 or older by the end of the year); you can also contribute $5,000 to a Traditional or Roth IRA of your choice ($6,000 if you are age 50 or older by the end of the year). Keep in mind that the eligibility to contribute to a Roth IRA has some income limitations.

Let's take a look at how an average person, let's call him Joe, can reach this million-dollar goal by the time he retires at age 67 (27 years from now). Joe (single, age 40) has an annual gross income of $50,000, and his employer has a 401(k) plan and matches contributions up to 5% of Joe’s salary. Joe is also committed to saving $4,000 a year in a Roth IRA. We'll assume his investments have a 10% return.

Joe takes full advantage of the employer match and defers 5%, or $2,500, of his salary each year. His employer will then contribute $2,500 each year as per the matching agreement. (Assume Joe’s salary remains the same until retirement) Here's the breakdown of his savings over the 27 years.

401(k)	Roth IRA
Annual contributions of $5,000	Annual contributions of $4,000
Compounded at 10% for 27 years	Compounded at 10% for 27 years
Equals $605,500	Equals $484,400

Grand Total of $1,089,900. Welcome to the Millionaire Club! If Joe had started his plan at different ages, here's what his results would look like:

Starting Age	Annual Investment	Annual Return	Value at age 67
25	$9,000	10%	$4,838,732
30	$9,000	10%	$2,970,355
35	$9,000	10%	$1,810,239
40	$9,000	10%	$1,089,900
45	$9,000	10%	$642,624
50	$9,000	10%	$364,902
55	$9,000	10%	$192,458

At younger ages, you still have the time to be a little more risky with your investment selections and seek out investments that have the potential to get you that 10% return or more. If you're looking at certificates of deposit and money-market investments think again - you need to consider other investments such as equities to achieve returns that can outpace inflation. (see Guide to Stock Picking Strategies.)


The chart above also demonstrates the value of compounding interest, one of the most valuable tools to accumulate significant wealth - the key is to start while you’re young and stay disciplined. (see Delay in Saving Raises Payments Later On.) Stick to your plan! The ride may be slow and boring at times, but you’ll be pleased with the long-term results.

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5 Billionaires Who Live Below Their Means

Source:http://financialedge.investopedia.com/financial-edge/0410/5-Billionaires-Who-Live-Below-Their-Means.aspx?partner=yahoofin
At least once in your life - maybe even once a week or once a day for that matter - you have fantasized about coming into a lot of money. What would you do if you were worth millions or even billions? Believe it or not there are millionaires and billionaires among us who masquerade as relatively normal, run-of-the-mill people. Take a peek at some of the most frugal wealthy people in the world.

Warren Buffett
Millions of people read Buffett's books and follow his firm, Berkshire Hathaway's, every move. But the real secret to Buffett's personal fortune may be his penchant for frugality. Buffett, who is worth an estimated $47 billion, eschews opulent homes and luxury items. He still lives in a modest home in Omaha, Nebraska which he purchased for just $31,500 more than 50 years ago. Although he's dined in the best restaurants around the globe, given the choice he would opt for a good burger and fries accompanied by a cold cherry Coke. When asked why he doesn't own a yacht he responded "Most toys are just a pain in the neck." (Find out how he went from selling soft drinks to buying up companies and making billions of dollars. Read Warren Buffett: The Road To Riches.)

Carlos Slim
While most of the world is very familiar with Bill Gates, the name Carlos Slim rarely rings a bell. But it's a name worth knowing. Slim, who is a native of Mexico, was just named the world's richest billionaire – that's right, richer than the uber-famous Microsoft founder. Slim is worth more than $53 billion and while he could afford the world's most extravagant luxuries he rarely indulges. He, like Buffett, doesn't own a yacht or plane and he has lived in the same home for over 40 years.

Ingvar Kamprad
The founder of the Swedish furniture phenomenon Ikea struck success with affordable, assemble-it-yourself furniture. For Kamprad, figuring out how to save money isn't just for his customers, it's a high personal value. He's been quoted as saying "Ikea people do not drive flashy cars or stay at luxury hotels." That goes for the founder as well. He flies coach for business and when he needs to get around town locally he either takes the bus or will head out in his 15-year-old Volvo 240 GL.

Chuck Feeney
Growing up in the wake of The Depression as an Irish-American probably has something to do with Feeney's frugality. With a personal motto of "I set out to work hard, not get rich," the co-founder of Duty Free Shoppers has quietly become a billionaire but even more secretively given almost all of it away through his foundation, Atlantic Philanthropies. In addition to giving more than $600 million to his alma mater Cornell University, he has given billions to schools, research departments and hospitals.

Loath to spend if he doesn't have to, Feeney beats both Buffett and Kamprad in the donation category, giving out less grants than only Ford and the Bill and Melinda Gates Foundations. A frequent user of public transportation, Mr. Feeney flies economy class, buys clothes from retail stores, and does not wast money on an extensive shoes closet, stating "you can only wear one pair of shoes at a time". He raised his children in the same way; making them work the same normal summer jobs as most teens.

Frederik Meijer
If you live in the Midwest chances are good that you shop at Meijer's chain of grocery stores. Meijer is worth more than $5 billion and nearly half of that was amassed when everyone else was watching their net worth drop in 2009. Like Buffett he buys reasonably-priced cars and drives them until they die, and like Kamprad he chooses affordable motels when on travel for work. Also, like Chuck Feeney, rather than carelessly spending his wealth Mr. Meijer is focused on the good that it can provide to the community. (For more on the benefits of charity, read It Is Better To Give AND Receive.)

The Bottom Line
The dirty little secret of some of the world's wealthiest people is that they rarely act like it. Instead of over-the-top spending, they're busy figuring out how to save and invest to have that much more in the future. It's a habit you might want to consider in order to build up your own little storehouse of cash

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The Millionaire's Retirement Plan

Source:Yahoo Finance
If you're just entering the workforce, retirement probably seems like a lifetime away. A million dollars by retirement? That's someone else's dream, right? It doesn't have to be. Here is the millionaire's retirement plan. For these calculations, assume an average annual return of 8%, adjusted for inflation at 3% - a reasonable estimate of average market returns.

Age 25: A Good Beginning

You're 25 and landed that first job on your career ladder - congratulations! Before you start living to your new paycheck's standards, budget your retirement savings. If you have a 401(k) plan that matches your contributions, use it! These matching dollars are like a guaranteed return on investment. If you don't have a matching 401(k), look for a mutual fund through an investment firm with low fees; many now offer target funds, which allocate your investment risk with your targeted retirement year in mind - great for a beginning investor.

Choose a Roth IRA if you can; you don't get to deduct your contributions from your taxes, but you'll enjoy tax-free withdrawals at 65. Plan to start by saving about $200 a month to reach your millionaire goal; increasing this monthly amount by $10 annually as you get a raise or promotion will only speed up your saving.

Age 35: Rolling Along

By now you have saved about $45,000 and you've grown in your career with a bigger paycheck, but often, family commitments like children and a mortgage will seem more pressing than saving for your golden years. Don't make the mistake of slowing down your retirement savings. By now, you should ramp up your contributions to about $400 a month - remember that a matching 401(k) will help you in attaining this amount.

If you have kids and worry about saving for their college, look at it this way: the best way to help them in the future is by ensuring you're financially sound in retirement. Make saving for retirement a priority.

Age 45: Holding Steady

You're mid-career, and things are looking good in your retirement portfolio. Your savings have grown to about $160,000 - not bad, but it still isn't quite time to slow down. Increase your retirement contributions to about $450 a month or more, and you'll be rolling your way to millionaire status by 65.

Age 55: Close to the Finish Line

By age 55, your retirement portfolio should be at $400,000 or so. You can start to see the finish line, but begin to wonder about risk. If you've been investing in a target fund, your portfolio has been adjusting its allocation for you; otherwise, look at adjusting some of your investments to reflect a lower risk tolerance. And remember: your income at, say, age 70 won't be withdrawn for another 15 years - plenty of time to ride out market fluctuations.

At age 55, expect to really ramp up your retirement contributions, to roughly $600 a month, and more if you can manage it. The more you save, the sooner you can leave the nine-to-five behind.

Age 65: Prudent Asset Management

You're at the finish line: a millionaire at 65! Since you have no way to add to your savings now that you're out of the workplace, prudent asset management is vital. Keep a close eye on your portfolio so you can make your nest egg last. Protect yourself against inflation as well as market risk, and you'll be enjoying your golden years without financial worries.

The Bottom Line

With steady savings and smart financial habits, you can retire a millionaire - maybe even before you're 65.

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10% Dividen Bank Persatuan untuk 2009

Dividen Bank Persatuan untuk 2009-10%

sumber:http://www.bicarajutawan.com/forum/thread674-63.html#post515482

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What I Wish I Had Taught My Daughter About Money

Source:www.moneycrashers.com
My oldest daughter had many milestones this year. She got her drivers license, got her first car, got her first job and turned 18 just this week. Besides being a festive day full of the usual celebrations, we went to get her first bank account. Out of all the huge life-changing events she went through this year, I think the bank account had to be the one that gave me the most pause. I was tormented by the thought that she may be destined for the same financial crisis I put myself through when starting out. Of course, back then I had no clue about how to handle my money or to be a good steward of it. I was guilty of countless transgressions against my financial health. By the time I was 25, I was a complete financial disaster, with no apparent means by which to dig myself out.


My daughter wouldn’t remember those days as she was very young, but as a single mom of two young children in financial ruin, I know it directly affected the lifestyle in which she was raised. Because of my ineptness and indebtedness, I found everything from feeding them to putting gas in the car a miraculous feat. Eventually things got better and I was able to learn how to put money in its place and do the right thing with it. So I have to feel good that I have set some proper examples of money management skills for my daughter to learn from.

But there are still things I wish I would have shared with her about money before now. Things I know if she takes to heart and starts applying them immediately will set her up for a lifetime of financial wellness. For me, this one falls right in there with emotional and physical wellness as being areas I have always been committed to nurturing in my children. These are the things she may already know, but areas of financial wellness I want to make sure she understands:

* It’s not about whether you have a lot of money or a little, it is about living within your financial means.
* Treat your money as you want it to treat you—be good to it and take care of it and it will reciprocate. Treat it badly and it will do the same.
* Never buy something you don’t have the means of paying for right now. This applies to various areas from lump-sum purchases to purchases for which you need to finance heavily.
* No matter how much you make, put away a percentage of it for an emergency.
* Always be aware of where you money is going.
* Always meet your financial obligations no matter how tough it might be.
* Forget those trendy shoes, put it in savings!
* When you have a spending urge, take a look at your savings account balance instead. That is a huge rush in and of itself.
* Develop a budget and financial plan no matter what your income.
* Treat yourself within reason every once in awhile. Depriving yourself is not healthy.
* Give even when it hurts. It might hurt a little, but it will also feel great. Don’t go beyond your means though.

These are just a few of the areas I have outlined to go over with my daughter this weekend. She is a sweet, open-minded and smart young lady so I am confident she will absorb my advice and be appreciative of this heap of hard-earned advice.

What do you share with your teens about money? What are some areas you are concerned with? I would love to hear from you.

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10 Essentials for Successful Retirements

Source:Yahoo Finance
Day after day brings new headlines of problems and pitfalls for retirees. We save too little and can't afford to stop working. We make poor investment decisions and don't know how to get the most out of our shrunken nest eggs. Social Security benefits may be cut. Medicare benefits also face trims. The national ship of state is going down the tubes in so many ways, and no one will be handing out life preservers to older citizens as the ship sinks.

Maybe these are all true and worrisome trends. Nonetheless, people will retire, and many of them will enjoy terrific lives in their later years. They will join millions of other Americans who have managed to do the same. What are their secrets? Here, culled from research studies and retirement experts, are 10 essentials for successful retirements.

1) Planning. Successful retirements rarely happen by accident. They require planning, and it should begin well before retirement begins. Younger people do not need to have any detailed plan for their later years. Heck, many probably don't know what they'll be doing next year. But they should set up tax-favored retirement investments, contribute enough to trigger the top employer match, and place their money in stable and safe investments. Older people should begin in their 50s to ask questions about the adequacy of their retirement funds. They also should attack some of the big retirement issues -- where do they want to live, how do they want to spend their time, and the like. At whatever age retirement becomes financially viable or physically necessary, they should have a more detailed plan and ways to achieve it.

2) Budgeting. Most people overestimate their retirement income and underestimate their retirement expenses. Well before the regular paychecks stop, many successful retirees will have taken a hard-nosed look at their retirement income and expense needs. Expense budgeting is crucial. Once the income and expense sides of your personal ledger have been completed, you can see if there's a gap that needs to be closed. Most likely, it will be closed by trimming expenses. Many experts say it's a good idea to look at your locked-in sources of retirement income --Social Security and traditional pensions -- and match this amount to your fixed expenses -- mortgage, utilities, insurance, fixed debt payments, operating expenses for your car, and basic household costs for food and other necessities. Then, look at the likely income stream from your investments and use those funds for discretionary spending on vacations, restaurants, and the like. This way, if returns on your investments don't fare as well as you thought, you won't have to eat into your investment accounts to pay expenses. When markets recover, you can resume your spending.

3) Homework. Retirement is many things but a life of leisure usually must be preceded by a lot of homework. This is particularly true when it comes to healthcare costs. The average 65 year old couple will spend $250,000 on health care during the rest of the their lives -- the single largest unknown expense for most people. Medicare was complicated enough before health reform was enacted. Anyone planning to retire in the next several years should spend time understanding how the new law might affect them. Other areas that can benefit from some study: how healthy is the economy of the area you're thinking of choosing for your retirement home; what are the state and local tax rates in that area; what are state estate taxes like; do you have a good approach to spending down your assets in retirement, and, what is the best strategy for you about when to begin claiming Social Security benefits.

[See 15 Tasks to Become Retirement Ready.]

4) Realism. None of the planning, budgeting, and homework you do will provide the basis for a successful retirement unless you're realistic in your assessments and assumptions. Most people, for example, actually retire several years before they earlier said they would. Likewise, they say they will continue to work well past their 65th birthday. They don't. You need to be honest with yourself.

5) Balance. The key to a lot of good things in life is a sense of balance. Successful retirements involve a good balance between expectations and reality. This doesn't mean sacrificing your dreams. It does mean road-testing your dreams to see what it would take to make them possible.

6) Health. No surprise here. Good health is the "knock on wood" wish of every retiree. What's different today than a generation ago is the widespread recognition that good health is no accident but the probable result of good diet and exercise habits. These habits need to start now, not when you're 70 years old, although it's never too late to begin. It's been proven that strenuous exercise, with heavy weights and sweat-inducing cardiovascular workouts, can help even people in their 80s and 90s. Investing in good health is as important as socking money away in retirement accounts.

7) Family and Friends. As people look forward to their later years, the priorities that loom largest tend to be people, not possessions or unshared travel experiences. As with your health, good relations with friends and family members need to be developed and nurtured over time. If there are people you know you want to spend time with when you're retired, figure out what you need to do today to enhance the odds you will have the strong bonds you desire in the future. Having honest conversations with children is crucial, especially when it comes to issues surrounding grandchildren. Maybe you want to live close to grandchildren and see them a lot. Do your kids feel the same way? Do they expect you to be constantly on call to be free babysitters? How would you feel about that? Do you expect your kids to be constantly on call to help you out with household chores and errands? Make sure you're all on the same page before taking important actions you might later regret.

8) Socialization. Loneliness is a killer for older people. This is especially true for men, who are seen in surveys to have harder times than women making friends, and tend not to ask for help or reach out to loved ones. If you don't have a rich circle of family and friends, and aren't likely to build one before retirement, perhaps a senior community makes sense. Even if you don't need help due to physical ailments, you might need the structured social support services that a retirement community can offer. Don't be in denial on this one. Looking through scrapbooks of old family pictures gets, well, old after a while.

9) Legacy. People who are happy in retirement frequently have taken care of major life decisions rather than leaving them to some future date. Uncertainty is stressful, and stress should not be a sought-after condition at any stage in life and especially not in retirement. Questions about passing on wealth and possessions should be decided when you're healthy, and should be discussed with family members and other loved ones. Maybe your daughter doesn't really want your wedding china. That doesn't mean she's a bad person. Maybe you think leaving college money for grandchildren is a great idea. But you should discuss it with your kids. If you trust your children, perhaps they should control these funds. Where do you want to be buried when you die, or do you even want to be buried? If you're married, do you and your spouse agree on these matters? These are discussions you should have.

10) Acceptance. With due apologies for being presumptuous, let me suggest that we all have made many, many mistakes by the time we retire. Often, the people we'd view as the most successful are the hardest on themselves as they approach and enter retirement. Maybe it's workplace failures. Or personal relationships. Often, it's the quality of parenting. Whatever it may be, carrying this baggage around with you during retirement is a heavy, heavy burden. It's nearly impossible to win the blame game. If you play the comparison game, you can always find someone who did things better than you. You may need professional help with this, but forgiving yourself for being human can be a liberating act as you approach retirement and your later years.

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Dividen 13% untuk ahli Koperasi ATM

Source:http://utusan.com.my/utusan/info.asp?y=2010&dt=0628&pub=Utusan_Malaysia&sec=Muka_Hadapan&pg=mh_04.htm

SUNGAI BULOH 27 Jun - Koperasi Angkatan Tentera Malaysia Bhd. (Koperasi Tentera) mengumumkan pembayaran dividen 13 peratus tahun ini kepada lebih 140,000 ahli membabitkan jumlah saham sebanyak RM700 juta.

Panglima Angkatan Tentera, Jeneral Tan Sri Azizan Ariffin berkata, jumlah itu membuktikan koperasi tersebut berjaya mengekalkan prestasi pembayaran dividen melebihi paras 12 peratus sejak 1996.

"Koperasi telah berjaya menghasilkan prestasi kewangan yang sangat baik dan konsisten serta mampu memberi pulangan dividen berterusan sebanyak 12 peratus atau lebih sejak 13 tahun lalu," katanya.

Beliau berucap merasmikan mesyuarat agung Koperasi Tentera Ke-45 di Perbadanan Hal Ehwal Bekas Angkatan Tentera (Perhebat) di sini hari ini.

Hadir sama Panglima Tentera Darat, Jeneral Datuk Zulkifeli Mohd. Zin; Panglima Tentera Laut, Tan Sri Abdul Aziz Jaafar dan Panglima Tentera Udara, Jeneral Datuk Seri Rodzali Daud.

Turut hadir Pengerusi Eksekutif Suruhanjaya Koperasi Malaysia (SKM), Datuk Mangsor Saad.

Mengulas lanjut, Azizan berkata, pencapaian koperasi itu amat membanggakan walaupun keadaan ekonomi negara tidak menentu sejak kebelakangan ini.

Menurutnya, bagi mengekalkan keutuhan ekonomi sesebuah koperasi, setiap ahlinya perlu bekerjasama dan membuat keputusan bernas untuk memastikan ia terus maju.

Sehubungan itu, beliau menyeru seluruh kepimpinan koperasi itu supaya terus berusaha mengekalkan keupayaan pembayaran dividen kepada ahlinya melebihi 12 peratus.

Beliau percaya sasaran itu dapat dicapai melalui usaha gigih seluruh kepimpinan koperasi itu.

"Penglibatan dan sokongan daripada setiap ahli akan mampu menjamin kejayaan bukan sahaja dalam lingkungan koperasi malah dalam ekonomi global," katanya.

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Paying Down the Mortgage or Investing for the Long Term? What Shall We Do?

Source:http://www.thesimpledollar.com/
As I mentioned a bit last week, we’re currently debt free except for our mortgage and a student loan with such low interest that it would be financially reckless to pay it back early. The CD in which we were keeping the money to pay for our Prius matured (it was earning a higher percentage return in a CD than we could get on a car loan, so cracking the CD early and paying a penalty just to pay cash seemed like a poor move), so we paid off the full balance of that loan and own both of our vehicles now free and clear (we paid cash for our 2004 Pilot a few months ago).

Right now, we’re sitting at a decision point. Should we start prepaying significant amounts on our mortgage or should we invest that money elsewhere? I think we’ve come to a decision, but I also thought walking through our decision-making process.

Our home mortgage sits at about 5.5%. We are looking into refinancing it at 4.75%, but we haven’t yet fully run the numbers to determine if it would actually save us any money or not because of the cost of the refinancing and because of our intent to pay it off quite early. We’re already making payments that amount to about 50% more than what we owe each month.

Our question currently is simple: should we raise those overpayments to 100% or more or should we be investing that extra money into stocks or something else?

If we increased our payments to 100% of what we currently owe each month, we would pay off our mortgage in about seven years. If we exceeded that amount, we would be paying for even fewer years than that.

We view money put into the mortgage as being an investment with a guaranteed return of 5.5%, because that’s the amount of annual interest we’ll save by knocking off some principal. If we pay $1,000 early, it’ll save us $55 in interest this year and about $57 in interest next year and so on.

On the other hand, we could invest that extra mortgage payment each month into something else. We could put it into a savings account that would earn us 1.5% or 2% or so, but it would be very liquid.

We could also invest it in the stock market. It would be very liquid there and it would also have the potential to greatly beat the 5.5% we’re making on our home loan.

Of course, “potential to greatly beat” reveals the hard truth. Stock market investing, particularly in the short term, implies quite a bit of risk. 2008 was incredibly painful, for example, as were 2000 and 2001.

The truth is that stocks only pay off as an investment over a long timeframe unless you’re banking on some luck.

So, what’s our timeframe here? Our plan after our mortgage is paid off is to buy a piece of land in the country and build a house on it (and likely a small barn as well).

If we put the money into our home, we would be completely debt free in five years, buying land a year or two after that, and building a year or two after that. Let’s figure five to ten years is our time frame.

Is that “long term” in terms of the stock market? Sadly, it’s not. As Warren Buffett so eloquently put it, “Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.” The simple fact is that over a period of time less than ten years, the stock market is notoriously volatile.

This becomes even more true when you consider that we won’t be investing all of it now and just waiting. Instead, we’d be investing small amounts regularly over the next several years. Large chunks of our investment would be in stocks for only a year or two.

That’s not the kind of fragile foundation we want for our next home. We’d far rather own our current house free and clear. It’s in a good location, rurally placed with great access to the Des Moines metro area, and similar houses have held their value or even gone up over the last several years. We feel, based on the evidence, that we’ll get out of it at least as much as we put into it when we sell it.

Thus, our extra money is going into our mortgage for the time being. I altered our automatic monthly mortgage payment to be 125% more than our normal monthly payment and may yet alter it again (I want to watch our monthly cash flow for a while). This leads us to paying off our house in just a few years and pushing us right towards the country home we’ve dreamed of.

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The Number One Obstacle to Retirement

Source:Yahoo Finance
At first it would seem that the biggest obstacle to retirement is not having enough money. Most people simply don't have enough in the bank to retire comfortably. While that is certainly a big part of the equation, it's just the tip of the iceberg. Why don't many people have enough money to retire? They didn't save enough, of course. But why didn't they save enough? And that brings us to what is, for many, the biggest obstacle to retirement--debt. And the problem isn't just any debt. The problem is non-mortgage debt.

Non-mortgage debt creates a triple-whammy when it comes to retirement. First, during your working years you have less to save toward retirement because you must make payments on your debt. Second, unlike a mortgage payment that goes toward a home that over the long term goes up in value, consumer debt usually goes to pay for things that have no lasting monetary value. And third, in retirement you need more income because, in addition to your regular monthly expenses, you must keep making payments on the non-mortgage debt you've racked up. As a result, many save less during their working years and need more during retirement.

[Click here to check savings products and rates in your area.]

In a recent study commissioned by Scottrade, for 63 percent of Americans, debt was an impediment to retirement savings in 2009. And 61 percent of Americans expect debt to limit retirement savings in 2010. While there are no easy answers to the problem of debt and retirement, here are some basic strategies that may help you save more and climb out of debt as you work toward your golden years.

1. Stop Borrowing. No matter how much consumer debt you have, the absolute most important step is to stop going into more debt. You cannot climb out of the hole until you stop digging.

2. Save First. While some advocate ridding yourself of all non-mortgage debt before saving for retirement, this strategy can backfire. Not unlike dieting, you may find the discipline to stay out of debt elusive. So like eating your vegetables first, make saving for retirement a priority today. Even if you save just a few dollars a month, the money will grow and you'll begin developing good investing habits. Saving first is particularly important if your employer offers a company match for 401(k) contributions.

3. Scale Down Your Budget. To borrow from dieting again, one of the biggest mistakes we make when trying to lose weight is to go extreme. We count every calorie and significantly restrict the foods we eat. Such extreme strategies rarely work in dieting or money. So rather than counting every penny you spend and denying yourself every indulgence, pick the one or two categories of spending that really cause you to overspend. This may include eating out, buying clothes, or, if you're like me, spending on gadgets. For just these categories, set a reasonable budget and stick to it. You'll find the approach much easier to follow than budgeting every dime you spend, and you'll be more likely to stick with it.

4. Plan for the Unexpected. We often go into debt to handle emergency expenses. While we can't guarantee we'll have enough money to handle every situation, saving up an emergency fund in a high interest online savings account reduces the likelihood that an unexpected expense will send us into more debt.

5. Plan for the Expected. As important as planning for an emergency is, we also should be planning for large, anticipated purchases. Whether it's buying your next car, taking a yearly vacation, or paying for a wedding, these big expenses can sink you deep into debt if you are not careful. So rather than letting these big expenses creep up on you, start saving long before you'll need the money.

Saving for retirement isn't easy. If it were, we'd all have enough to retire comfortably. But we can greatly improve our chances of having enough money in retirement if we keep our debt under control.

DR is the founder of the popular personal finance blog, the Dough Roller, and author of 99 Painless Ways to Save Money.
Copyrighted, U.S.News & World Report, L.P. All rights reserved.

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Hidden Jewels in Roadside Bungalow

Source:http://investkk.com/hidden-jewels-roadside-bungalow/
This articles is contributed by my very good friend Mr MS. He is running his own company with the hobby of accumulating land titles. With the main principles of “live below your means” he is selfmade multi millionaires with alot of highly potential land portfolio. Looking at his age and total accumulated portfolio, I strongly believe he is “more than enough” for himself. Let us learn from the best!!

General infor and History on Bungalow

The word Bungalow originated from a Hindi word baṅglā & Urdu banglā, literally, ‘house’ in the Bengal style that which is a one-storied house with a low-pitched roof; also a house having one and a half stories and usually a front porch. But in our context in KK it meant a single or double storied detached house with a big compound in the urban area like Likas or suburban area such as Penampang. The lifestyle of living in a bungalow probably introduced by our colonial master, the British during the colonial era which is evidenced in Singapore, W. Malaysia and Borneo. In around 10 to 15 years ago a nice brand new bungalow in KK would cost only around RM 500k to Rm600k depending it locality, land size and finishing. Matured and established areas such as Likas and Tanjung Aru would have cost more, especially if the land tenure is 999 years. Today a nice bungalow unit would fetch more than a million RM. Alamesra is selling their new units at minimum RM 1.8 millions. Just yesterday someone advertised a Kingfisher bungalow less than 8000 sft for RM1.7 millions and another at Jalan sang kancil with 5500 sft asking for RM 1.72 millions. Therefore you are looking at not less than Rm 200 per sft!

Residence

Take a drive at jalan Teluk Likas, kampong Likas,Taman Likas Jaya, Fung Yi Ting, Signal Hill, Kingfisher, Shangri-la height, Tanjung Aru and The Bayan, you would be able to see what sort of lifestyle these people are living in. These are residence that owned by the ‘Who’s Who’ in town such consulate, politicians, their cronies and the rich. Land size would be between 8000 sft to 15000 sft or more, that big enough to have an occasional BBQ or poolside party. You would normally see a big garden, a courtyard, Swimming pool, big parking space that can accommodate not less than 5 cars. This is the lifestyle that a bungalow owner would like to enjoy.

Commercial

Having said that, there’s also the other side of stories for the bungalows along the main highway or main road. These units may not be so conducive as residence because of the noise and dust pollution but jolly good for commercial purposes. Bungalow units such those along Jalan Penampang, Jalan Tuaran, Jalan Lintas are superb as showrooms, offices, hardware shop and etc. Whereas those along the airport road are good for Bed and Breakfast, Motel, Show Rooms, offices (for professional services such as Architect, lawyer, valuer, Engineering etc) and vacation home (such as those in Tangjung aru area).

Why ?

It is common that bungalow units are fetching not less than Rm 1.5 millions nowadays. If you find one that priced less than Rm1.5 millions in strategic location either for commercial or residence, you better put a down to it quickly because you have found a jewel!! A very obvious reason why bungalow is going up in price is because of scarcity of land in the city. Imagine 10 to 15 years ago living in a condo is almost unheard of. At that time the peak and Radiant Height was just being build. Now condo lifestyle is common. And therefore bungalow units are the most sort after landed property. As it has title by itself, bungalow maybe developed into commercial uses such as multilevel parking, hotel, condo, showrooms and etc. Therefore it’s a big plus over other form of landed properties.

Future

I see bungalow along Jalan Tuaran, Jalan Penampang and Putatan hold immense opportunity for commercial purposes and in Tanjung Aru or the drive towards airport for both recreation, hotel and commercial use. Whoever owns one. You have found a Jewel!!



Happy Investing.

You cannot Grow Land..CK Wong & MY DAD

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Mesyuarat Agong Koperasi Tentera

Source:http://www.katmb.com.my/infoterkini/NotisAGM45.asp
NOTIS MESYUARAT AGUNG TAHUNAN YANG KE 45

01hb Jun 2010 - DENGAN INI DIMAKLUMKAN bahawa Mesyuarat Agung Tahunan Yang Ke 45 Koperasi Angkatan Tentera Malaysia Berhad akan diadakan pada hari Ahad, 27 Jun 2010, jam 7.00 pagi di Dewan Besar PERHEBAT, Kem Sg. Buloh, 47000 Selangor.

AGENDA

1. Mendaftar dan memilih anggota Lembaga baru mengikut peruntukan Undang-Undang Kecil.
2. Membentang dan meluluskan Minit Mesyuarat Agung Tahunan Ke 44 yang telah diadakan pada 28 Jun 2009.
3. Membentang dan meluluskan Penyata Kewangan Beraudit bersama Pembahagian Keuntungan bagi tahun berakhir 31 Disember 2009 serta dengan Laporan Lembaga Koperasi, Laporan Jawatankuasa Audit Dalaman, Laporan Juruaudit Luar dan Pandangan Suruhanjaya Koperasi Malaysia berserta dividen tunai 13% atas yuran dan syer sepertimana dicadangkan oleh Lembaga dalam laporan mereka.
4. Menimbang dan meluluskan saraan bagi tahun 2011 kepada anggota-anggota Lembaga Pengarah syarikat-syarikat subsidiari yang juga anggota-anggota Lembaga Koperasi menurut Seksyen 46 (2) Akta Koperasi 1993.
5. Meluluskan Bajet bagi tahun 2011 termasuk perbelanjaan anggota-anggota Lembaga Koperasi dan Jawatankuasa Audit Dalaman (JAD).
6. Mengumumkan keputusan pemilihan anggota-anggota Lembaga baru.
7. Menimbang dan meluluskan tambahan dan pindaan kepada Undang-Undang Kecil dan Aturan-Aturan Koperasi.
8. Melantik Juruaudit Luar.
9. Menetapkan had maksima keterhutangan Koperasi sebanyak RM1.5 bilion bagi tahun 2011 dengan kadar keuntungan bank tidak melebihi kadar pasaran semasa.
10. Menimbang dan meluluskan skop dan had pelaburan baru Koperasi bagi tahun 2011.
11. Melantik satu jawatankuasa yang terdiri daripada enam orang anggota dan empat orang anggota Lembaga Koperasi untuk menentusahkan draf Minit Mesyuarat Agung Tahunan.
12. Mendengar, menimbang atau memutuskan apa-apa urusan lain Koperasi ini yang baginya suatu notis tidak kurang daripada tujuh hari telah diberikan.

26 Mei 2010
Dengan Perintah Lembaga
LT KOL MOHD RASHID BIN ABDUL RAZAK
KAT KMN AMK ANS PPT PJM PNBB (Somalia) mpat psc MBA (Victoria) MSc (Nottingham) MA (UKM) Dip Elect Eng (UTM)
Setiausaha Wisma Koperasi Tentera
No.1, Jalan 2/65C
Off Jalan Pahang Barat
53000 Kuala Lumpur


NOTA

1. Kelayakan Menghadiri Mesyuarat Agung - Menurut fasal 13 dan 16 Undang-Undang Kecil Koperasi Tentera yang dibuat berdasarkan kepada Seksyen 50 (a) dan Seksyen 28 Akta Koperasi 1993, anggota yang telah menjelaskan fee masuk dan yuran bulanan pertama yang bernilai sekurang-kurangnya Dua Puluh Ringgit (RM20.00) serta Satu Ratus Ringgit syer (RM100.00) pada atau sebelum 26 Mei 2010 boleh melaksanakan segala hak, kewajipan dan liabiliti sebagai seorang anggota semasa Mesyuarat Agung Tahunan Ke 45 pada 27 Jun 2010.
2. Anggota Mohon Berhenti - Anggota yang telah mendapat kelulusan berhenti daripada keanggotaan Koperasi pada atau sebelum 26 Mei 2010 adalah tidak layak mengundi dan tiada hak dan tanggungjawab seperti di bawah fasal 16, Undang-Undang Kecil.
3. Pendaftaran dan Pengundian - Pendaftaran dan pengundian bagi memilih Anggota Lembaga akan bermula pada jam 7.00 pagi dan tamat jam 11.30 pagi atau pada suatu masa yang ditetapkan.
4. BAT C 10/MyKad - Anggota dikehendaki membawa BAT C 10/MyKad semasa pendaftaran dan pengundian.
5. Pakaian Menghadiri Mesyuarat Agung - Anggota Tentera yang hadir pada Mesyuarat Agung Koperasi Tentera diwajibkan memakai pakaian kerja/No: 3.
6. Perlantikan Jawatankuasa Audit Dalaman - Menurut peruntukan Seksyen 42A, Akta Koperasi 1993 (Akta 502), pemilihan tidak akan dilakukan di Mesyuarat Agung sebaliknya perlantikan dibuat oleh Lembaga selepas Mesyuarat Agung.

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Dividen Koperasi Felda 14%

Source:http://www.bharian.com.my/bharian/articles/FELDAsamanSuaraKeadilan/Article

......“FELDA juga memiliki 340,126 hektar ladang yang menghasilkan keuntungan bersih RM1.1 bilion setahun selama enam tahun berturut-turut. FELDA mempunyai pelaburan di luar negara seperti Indonesia, Afrika Selatan, China, Turki, Amerika Syarikat, Kanada, Pakistan, Australia, Thailand, dan Arab Saudi,” katanya.

“Kedudukan kewangan FELDA sangat kukuh berdasarkan nisbah kewangan dan aset bersihnya sekarang berjumlah RM12.2 bilion,” katanya yang turut memaklumkan Koperasi Permodalan Felda (KPF) memberikan dividen dan bonus kepada pemegang sahamnya sebanyak 14 peratus bagi 2009.

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8 Critical Steps Every Family Should Be Taking to Prepare for the Next Financial Crisis

Source:http://frugaldad.com/
It remains to be seen whether or not the worst has passed, or if we are merely enjoying the relative calm during the eye of the latest financial storm. I personally believe we are in for more tough times in the near term.

A variety of stimulus programs have conspired to create an “artificial demand” that has produced seemingly positive results. However, I believe it only served to delay the inevitable. In fact, I’ll go a step further. I believe it made the inevitable even worse. Would the economy have been worse without the stimulus? Probably. Would we have survived and saved a couple trillion dollars in new debt? Probably. But who knows. I’m not an economist, and I certainly don’t play one on TV.

In the Frugal household we are hunkering down, financially. The 2008 recession caught us off guard. We were still in debt, had little savings, and were just beginning to deal with what would become a year-long medical and financial crisis with my mom, who suffered an aneurysm and subsequent stroke at 53 years young. She passed away in September of 2009. Fortunately, we were able to ride the storm out, but I made it a goal to be better prepared next time. And next time may be closer than any of us think.

What if I’m wrong? Well, I hope I am. You can say I told you so. But even if I am wrong about another economic downturn in the next year, at least your family will have improved its finances between now and then.
#1 Get Your Financial Documents in Order

The time to organize financial documents is before a crisis hits. Buy a file cabinet to store things like financial statements, and a fire-proof box to store more important documents, such as life insurance policy statements, deeds and titles, etc.

Action Item: Spend Saturday morning getting organized. Shred all but the last two monthly statements from banks, brokerages and credit cards (unless you need them for tax purposes). Start a “2010 Taxes” file to collect receipts and tax documents for this year. Work up a document with account numbers, rough balances, contact information and save both a digital copy and hard copy in your fire-proof box. Be sure your will and advanced directive for health care is up to date.
#2 Reduce Your Monthly Bills

Who wouldn’t like to save money every month? In many cases the only thing stopping us is ourselves. We get complacent. We don’t like change. But in some cases, you must endure changes to save money in the long run.

Take a look at your recurring monthly expenses and find ways to slash costs. Shop for cheaper car insurance. Ask your cable provider if they offer a basic package. Using just a fraction of your cell phone minutes? Move to a cheaper plan, or consider going pre-paid. Ask your credit card company for a lower interest rate. Even if you strike out at all of these, it doesn’t hurt to ask, and you could easily find ways to shave $50-$100 a month off your regular expenses.

Action Item: OK, so you spent Saturday morning getting organized. Spend Saturday afternoon shopping for better deals. If you find customer service departments closed for the weekend, make a note and call back Monday morning.
#3 Save Three Months of “Living Expenses”

This is essentially a bare-minimum household emergency fund. It won’t last long in a real crisis, but if you have debt, you need to get on with the next step, so avoid saving more than a few months.

Action item: Open a savings account at a top online bank and save three months worth of housing payments, plus enough for food and lights. That’s it.
#4 Get Out of Debt

With a small household emergency fund in place, turn your attention to getting out of debt. Household debt adds considerable risk to a family’s finances. It puts you so close to the edge, financially, that it doesn’t take much to push you over the cliff. Distance yourself from the edge by getting radical in your approach to paying off debt.

Action Item: Pay off 100% of your household debt, beginning with credit cards and any other unsecured debt. Sell stuff, donate plasma, get two part-time jobs – get radical and get out now! Your family’s financial future depends on it. More on how to get out of debt.
#5 Pile Up a One-Year Household Safety Net in Cash

Now that you are debt free, return your focus to emergency savings, but continue to work on items 5-9 concurrently, allocating a bit of your income to each step. How much? Do what you are comfortable with, but make reaching milestone a priority.

Over the years, I’ve waffled a bit on how much should be in a fully-funded emergency fund. Experts recommend 3-6 months of expenses. Some personal finance bloggers recommend establishing an emergency fund based on the number of dependents, or the number of people working in the household. Both are good ideas.

However, from this point forward, I’ve decided to offer the following advice to keep things simple: save one year of basic household expenses as an ultimate family safety net. Considering the recent recession (and the chance of a double-dip recession around the corner), the old advice of 3-6 months being sufficient to cover a period of unemployment or serious illness is, frankly, a joke.

Action Item: Save one year of basic household expenses in a highly-liquid emergency fund. Note, this should only cover basic household expenses. Luxuries such as cable, Netflix, XM radio, and gym memberships should not be included. Things like mortgage payments, food, the power bill, and transportation costs should be included.
#6 Build a Second Income

I can think of no greater hedge against unemployment than developing a second income stream. Even if your second income is a fraction of your full-time income, it may be enough to keep your house current and food on the table in a financial crisis. Part time gigs are a fine way to boost cash flow in the near term (a great way to get out of debt, for example), but I encourage you to look for opportunities to cultivate self employment income. Mow yards in your neighborhood. Learn to build fences and decks on the weekends. Start a blog or chase down freelance writing opportunities. Get creative.

Action Item: Start a side hustle at nights and on the weekends.
#7 Keep a Modest Stockpile of Food and Household Goods

I have known some people to fill entire rooms with stockpiles of food, and load up basements and storage buildings or garages with paper products and cleaning supplies. I have known others who have no more than tomorrow night’s dinner scattered about bare refrigerators and pantries. Like everything else, you have to find a balance that works for you.

We don’t like to shop, and have found that the more often we are in the store the more money we spend. So, we try to keep a small stockpile of food at home and only restock a couple times a month. In a real crisis, we could probably go a month or two without having to leave the house for food. Of course, we’d sure miss fresh fruits and vegetables, so we try to grow a few of those on our own using square foot gardening methods in our backyard.

Action Item: Clear a few shelves and stock with non-perishable (or long shelf-life) foods like rice, beans, canned vegetables, plus a small surplus of paper and cleaning supplies, toiletries, etc. Keep your freezer well-stocked with a variety of meats purchased on sale.
#8 Pay Off Your Mortgage Early

For us, the ultimate in financial freedom begins with having a paid-for home. Imagine not making payments to anyone for living space (well, except the local tax commissioner). No monthly mortgage or rent payments buys two very important things: You can build wealth much faster without house payments, and you can survive on much less income without a mortgage.

Action Item: Get busy paying off your mortgage early. Contact your mortgage company and ask about making biweekly payments. If they offer a biweekly plan, but charge a fee, pass and simply send in one extra payment a year (the math is virtually the same). If you are in relatively good shape, financially, have plenty of emergency cash saved, and are saving for retirement and kid’s college, consider throwing extra savings at the mortgage each month. Contact your mortgage provider and ask for instructions on making extra principal payments.

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Are You an Active Saver?

Source:http://kclau.com/wealth-management/active-saver/
All of us are consumers but not all of us are active savers. An active saver can be defined as follows:

* You have the habit of saving money since very young
* You were taught the value of money by your parents
* You diligently save some money each and every month
* You read about financial news, for example from the web

A survey released in 2009 by HSBC Direct indicates that 22 percent of online Americans are active savers. The rest are categorized as everyone else. According to Kevin Martin, the executive vice president of personal financial services at HSBC, anyone can learn to be an active saver. It is easy if you learn early but with proper discipline, you can begin anytime.

In another survey conducted by the National Foundation for Credit Counseling reported the following about Americans:

* 1 in 3 adults have no savings
* For those aged between 18 and 34 years old, about 50 percent have no savings at all
* 1 in 3 American adults do not save part of their income for retirement
* 57 percent do not keep a budget

Survey on Malaysians

It would be interesting to know how we Malaysians would fair in a similar survey like the one above. Well, in a 2008 survey done by Citi’s Financial Quotient (Fin-Q) comprising of 500 online interviews on 40 set questions, the results were less than favorable.

* Only 2 in 5 Malaysians put aside money as savings
* Only about 28% Malaysians have a monthly budget
* 1 in 5 has savings that would last only 4 weeks in the event of a job loss
* The average savings Malaysians have in reserve is about 11 weeks

It all boils down to how financially literate you are. Most Americans rate themselves low where 2 in 5 choose to rate themselves a C, D or F when it comes to personal finance. How would you rate yourself?

Personally, I would give myself a “B” in financial literacy as I don’t claim to know everything there is to know about personal finance but enough to achieve financial security at this point. I also choose to be an active saver which is something that is absolutely necessary if I want to achieve all my financial goals. Do you choose to be categorized as an active saver or not?

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Learning to Say “No” to Your Kids

Source:moneyning.com
I remember them so vividly - a gorgeous pair of pink Nike running shoes. I wanted them so badly! They were my ticket to coolness, to being like the other girls. But my parents, working their way up from middle class into upper middle class, had different priorities. They said “no” to the brand name shoes and got me a cheap imitation instead.
Kids Are Expensive

It’s a well known fact that kids are expensive. Just type “cost of raising a child” into the Google search box and you will find that if you are a dual-parent family with a high income that lives in a city or a suburb along one of the U.S. coasts, you will spend about $250,000 per child from the day they are born and until they reach the age of 18. That’s before you pay, or help them pay, for college!
Discretionary Spending on Kids

It’s interesting that the various calculators are taking into account the household’s income and whether it is a single parent or a dual parent family. It means that whatever you spend on raising your child is in large part discretionary and depends on your abilities and on your circumstances. So we all try to give them their basic needs, but whether it will be $100,000 per child or $250,000 per child depends on where you live and on how much you can afford. The more you can afford, the more you will spend. I am also guessing that the more people around you spend, the more you will spend.
Raising Kids In A Materialistic Society

We live in a wealthy suburb of San Francisco. People here have a lot of money. They spend a lot on themselves and on their kids. Kids here walk around wearing designer clothes and bragging about their latest vacation. Many of them own iPods and cellphones. When we told our kids that we won’t be doing anything special for spring break this year, they were crushed. “But all our friends are going somewhere!” They protested. One of the first questions kids here ask each other on a first play date: “Is this a rental house or is it yours?” Seriously. Kids as young as 6 want to know if their friends’ parents can afford buying a house in the very expensive Bay Area.

It’s tough to raise kids in such a materialistic environment. The Silicon Valley is materialistic after all – sure, people come here to innovate and to live where exciting new things happen (Google, Facebook and others are practically our next-door neighbors) but what really drives it all is ambition. People come here to make money – tons of money – the kind of money that would enable them to live an extremely lavish lifestyle. Some of them actually make it happen, which continues to feed the frenzy. It’s like a never-ending, modern-day Gold Rush.

But it’s not just the Silicon Valley. America places a huge emphasis on entrepreneurship, on hard work, on the freedom to innovate and build and create and market your product. With relatively low taxes and (at least until now) minimal government involvement, The United States has always been a heaven for innovators, inventors and savvy businesspeople, and this has been part of its strength and amazing growth. But money is not, cannot be the only value, and this is something that grownups and children alike must realize.
Limits are Important

It’s very difficult to say “no” to your child when they ask you for something that they don’t really need, but want. This is especially true if you, as a child, were denied a lot of what you wanted because it was important for your parents to save or because your parents didn’t have enough money to indulge you. But saying “no” is very important. Children need not cost us more than they already do, and we shouldn’t indulge them to the point of corrupting them.

For my husband and I, the most pressing issues are teaching our kids the value of money, and teaching them to give back. We accomplish this by giving them a monthly allowance as well as several ways to earn money by doing extra work around the house. When they have a special request, we ask that they split the price of the product with us. This is extremely important, because in many cases, when they know that some of the money would come from their own pockets, they decide that they don’t really need that item after all.

In addition, this arrangement teaches kids the value of money and of budgeting. If they have managed to save $100 and the item they want costs $150, they would need to shell out $75 (their part) which puts things in context and helps them see how expensive things are.

We also help our kids pick a charity that they contribute to once a year, and teach them about choosing a financially responsible charity.

Learning to say “no” to your kids is not easy, but it is necessary. I feel that my husband and I have found a way to do so without depriving them of the things they want. At the same time, we managed to teach them important lessons such as the value of money and of hard work, the value of saving towards a goal, and the value of giving back to the community.

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Elon Musk, PayPal Pioneer, Is Paper-Rich, Cash-Poor

Source:Yahoo Finance
On Tuesday June 22, 2010, 12:45 am EDT

The funny thing about Elon Musk is that he does sort of remind you of Tony Stark. Minus the Iron Man suit.

Like the fictional Mr. Stark, Mr. Musk seems like the kind of guy every Silicon Valley hopeful wants to be. For starters, he’s a rocket scientist. No, really: he helped design the Falcon 9 booster used by NASA. He also helped create Solar City, a leader in solar power. And he helped dream up the Tesla, the electric car that made electric cars sexy. No wonder the film director Jon Favreau modeled his über-capitalist superhero on Mr. Musk.

There is just one small problem: Mr. Musk says he is broke.

Come again? Mr. Musk is a member of the PayPal Mafia — those serial entrepreneurs who, for a time, looked like the Brat Pack of the Valley. He made a fortune as a co-founder of PayPal, the e-commerce payments system. Not so long ago, he had more than $200 million in cash. Not bad for 38.

Now Mr. Musk, who is in the middle of a divorce, says his account is empty. Actually, less than empty. He says he invested his last cent in his businesses and is living off loans from his wealthy friends. He subsists, according to court filings, on $200,000 a month and still flies his private jet.

“About four months ago, I ran out of cash,” Mr. Musk acknowledged in a divorce court filing that was widely circulated among the West Coast digital elite.

It was quite a revelation, one that laid bare an uncomfortable truth in the world of venture capital: high-tech entrepreneurs who look rich are often relatively cash-poor, at least next to their glittering images. Mark Zuckerberg may be a billionaire when, or if, Facebook goes public. Larry Ellison, the founder of Oracle, lives like a king. But most of his wealth is tied up in Oracle stock. Mr. Ellison lives in part off loans.

People like Mr. Musk may have redefined what it means to be rich, particularly young and rich. But somehow, many of these seemingly successful people live on the financial edge, waiting, hoping for the next deal to unlock their next fortune.

Mr. Musk’s financial situation is coming to light because he is in the middle of a messy divorce. He ran off with an actress, Talulah Riley — paging Mr. Stark — and his wife, the fantasy novelist Justine Musk, wants the house, alimony, child support and $6 million cash. She also wants a cut of Tesla Motors and a piece of Mr. Musk’s stock in his rocket company, SpaceX.

“Is that what I deserve?” Mrs. Musk wrote on her blog in a post titled “Golddigging.” “I don’t know. Who exactly deserves that kind of wealth? But based on our life and history together, is that reasonable? I think so.”

Mr. Musk told me in an interview that he put his last $35 million into Tesla, which only two years ago was on the edge of bankruptcy. That depleted virtually all his “cash reserves.”

“That was my choice,” he insisted.

Faced with what he characterized as “liquidity issues,” he said: “I could have either done a rushed private stock sale or borrowed money from friends.” He chose to hang onto his stake — a decision that is likely to make him a very wealthy man. In two weeks, Tesla is scheduled to hold an initial public offering of stock that is expected to value the company at about $1.4 billion. Mr. Musk may be broke, but, as he said to me with a laugh, “My assets are huge.”

The revelations about Mr. Musk’s personal financial problems stunned many in the industry. Wall Street spent years courting him. The Energy Department had given Tesla — which has sold its $100,000 electric sports cars to the likes of Larry Page, the Google co-founder, and George Clooney — $465 million in low-interest loans.

The whispering among Mr. Musk’s detractors began almost immediately. If Mr. Musk cannot keep himself solvent, how can he be trusted to run a billion-dollar enterprise? And what about Tesla’s financing, which had long been based on his largess?

In case you are wondering, neither Mr. Musk nor his wife says he is claiming poverty because of the divorce. She characterizes him as a billionaire, “albeit with cash/liquidity issues,” which, she says, “ I would work with him to work around.”

Mr. Musk’s personal fortune is not just a matter of pride. A business is hanging in the balance. Tesla’s loan from the Energy Department requires Mr. Musk to hold at least 65 percent of Tesla. If he cashed out early, that loan would technically go into default.

Tesla, for its part, has tried to quiet the talk of Mr. Musk’s troubles. In an amendment to its I.P.O. filing, the company said: “We do not believe that Mr. Musk’s personal financial situation has any impact on us.”

Tesla went on to say that his divorce — and his postnuptial agreement (he and his wife agreed to a divorce arrangement after they were married that she is contesting) should have no impact on the company. “We also do not believe that Mr. Musk would have to liquidate a significant percentage of his holdings in order to satisfy any settlement reached in connection with such proceedings,” the company said.

An earlier filing might have been a telltale sign about the financial problems to come: Tesla disclosed that it had begun reimbursing Mr. Musk for his use of his private plane, justifying the cost by saying, “By paying only the variable expenses of Mr. Musk’s private airplane, consistent with the reimbursement policy in place, we will recognize a cost saving as compared to the customary practice for an initial public offering road show.” Before this, Mr. Musk paid for the plane himself.

It is quite a comedown — probably only temporary — for Mr. Musk, a South African native who made his first fortune in 1999, when he sold Zip2, a dot-com publishing business he had started with his brother, for more than $300 million. (The New York Times Company was a licensee of Zip2.) From there he went on to X.com, an online payment service that grew into PayPal. PayPal soon got scooped up by eBay for $1.5 billion. Mr. Musk walked away with about $200 million after selling his stock.

In 2002, he started Space Exploration Technologies, or SpaceX, with the none-too-grand visions of making a business out of flying people into outer space. The company also has a contract with NASA worth at least $1.6 billion to take over many of the duties of the space shuttle program, which is being phased out. Just two weeks ago, SpaceX completed a successful launch of its Falcon 9 rocket at Cape Canaveral. The company had its third year of profitability in 2009.

Mr. Musk declined to comment on the public offering for Tesla — the company is in a quiet period — but if it goes as planned, he will cash out about $21 million and still own more than 65 percent of Tesla. He can use the money, if only to pay the bill for his divorce and reimburse his friends.

“It is pretty aggravating,” he told me, referring to the rumors floating around about him. Hey, even Tony Stark has bad days.

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5 Ways to Encourage Your Savings Habit

Source:moneyning.com
Like so many things in life, setting money aside as savings is a habit that needs to be developed. If you want to see your nest egg grow, you need to do what you can to encourage a savings habit. Setting money aside needs to become a way of life, instead of some sort of burden. If you are having trouble getting into the habit of saving, you should try these 5 ways to keep you motivated:
1. Set Achievable Savings Goals


One of the biggest issues is that you may not have a goal. You just have an idea that you need to save money, but there is no true purpose for your money. It’s hard to stay motivated when you have no clear idea of what the money is for. So it is much easier just to spend it.

Instead of pointlessly saving, create achievable savings goals that give purpose to your money. Whether you want to save $5,000 in the next six months for a vacation, or whether you want to save up five months of expenses by the end of the year for your emergency fund, having a realistic goal gives you something to work toward — and progress you can see.
2. Reward Yourself for Reaching Small Milestones

Depending on the length of your goal, you can reward yourself at certain milestones. This helps you track your progress, and also helps keep you motivated to continue saving. These rewards should be fun things that you might not normally do, but that are still small and within reason. It might be a day off (if you can take a personal day at work), a picnic in the park, dinner at a nicer restaurant than usual, or some other enjoyable activity. Just don’t blow all your savings while enjoying your small reward.
3. Automate Your Savings

One of the easiest ways to get into the habit of saving is to set up some automatic method of moving your money around. Whether you have money from your paycheck automatically deposited into a savings account (including a retirement account), or whether you do an automatic transfer each month, automatically having your savings moved around can help you adjust your lifestyle to what you end up as “take home” pay. Soon you won’t miss the money, but it will still grow and work for you.
4. Don’t Sweat the Small Stuff

Always denying yourself the small treats you enjoy, and focusing on penny pinching, can bring you to hate saving. While you can cut back on some of those small expenses that eventually add up, you might actually feel better about saving if you focus on cutting back on the big expenses. Forgoing the big TV is an one time thing that can save you $700 to $2,000. And you can still get good entertainment on your current TV, or use the Internet. You will probably find that you will get over the TV pretty quickly and move on. However, constantly telling yourself that you can’t get that delicious $2 bagel you love can start to create resentful feelings toward saving. It’s a daily litany of denial that can start to make saving a chore.
5. Look for High Yield Accounts

One of the most depressing things about savings is how slowly the money grows. You can increase your satisfaction with savings by looking for high yield accounts. While yields are still generally low, you can still do better than the less than 1% offered by a traditional savings account. You can also look for alternative products like money market accounts and funds, high-yield CDs and bonds. However, be aware that some of these options may not be FDIC-insured, and come with greater risk.

Bottom line: Setting aside money for the future is important, but you need to find ways to keep yourself motivated. Do any of these things work for you? What keeps you motivated to save?

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New York Woman Shifts to Green, Saves More Than $10,000

Source:http://shine.yahoo.com/event/green/new-york-woman-shifts-to-green-saves-more-than-10-000-1723567/
Our latest One in a Million member is Nancy, an Episcopal priest and practicing psychologist who lives in central New York state. The One in a Million campaign encourages people to shift $1,000 of their household budget to greener products and services. I was amazed to learn that Nancy shifted so much she actually saved more than $10,000 without feeling deprived. Here's her story.

What inspired you to make so many "green" changes in your life? My doctoral studies were in MindBody medicine and holistic healing...which led directly to my first change: become a vegetarian(1991)—which reversed bone loss. In the intervening years I continued to study, teach courses, and give lectures and workshops on holistic healing and spirituality. My studies and workshop presentations expanded in 2005 after I learned about the known health risks associated with land fills at a meeting of the local chapter for the League of Women Voters. The local land fill had expanded despite opposition and was (and is again) asking to expand.

Troubled by the evidence, I began reading about recycling, which led me to studies about plastics, cleaning agents, bath and body care, cosmetics, and, surprisingly, food safety and how they affected human health and the environment. The readily available evidence was, and remains, shocking and deeply distressing. I believe that all of us need to be more conscious of the factors which affect our health and over which we can chose to have control, with our voices, pocket book, and votes. As a person living with a life-long disability I felt that, based on this new learning, I had a responsibility to act on it by making conscious choices about my life and health as I move toward retirement and continued aging!

That led to my second change: I became a vegan, eating only organic foods at home, and have reaped more health benefits than I imagined possible. No more antibiotics and hormones I didn’t chose, need or want; no more insecticides and pesticides bred into Genetically Engineered foods—as far as I can determine and choose; reading labels to avoid corn derivatives and high fructose.

All of this learning, alongside continued growth and new learning in my spirituality and prayer life, led me to my third change: a decision to become conscious and present to the world and nature around me, as well as to family, friends, and neighbors. All of life breathes the same air, is exposed to the same water, and shares the consequences of toxins in the land fill. The very least I could do was to avoid adding toxic, disposable, meaningless stuff or organic garbage, leading to my fourth change: changing my patterns of consumption, understanding the what and why of every purchase. Suddenly you see the stuff that clutters home, office, car and life. Stuff that wastes financial resources and generally obscures the meaning or purpose of one’s life. De-cluttering is a lesson in letting go and led to my fifth change, saving money as my shopping habits changed.

Are your choices for you alone or for a household? I live alone but children and grandchildren visit often. They know the routine -- I have posted a list of what items go in the paper basket, the compost pail, the small garbage basket, the shredder and the recycling can (in kitchen). The cleaning woman, handy man, and lawn person know what goes where in garage containers each week.

What was harder than you thought? Eating out with NO dairy products. My experience has been that the majority of restaurants, chefs, and cooks in small cities are not well-informed or prepared to serve vegetarians and vegans.

What was easier? The absolute easiest thing was simply adding each new change as I came to it and then living into it. I have a savings account for my ‘annual savings,’ which I use for life-giving organic foods, addressing needs (recreation, retreat, play) instead of wants, and enjoying a healthier and more purposeful life!

What's next? These changes are part of a spiritual journey that I hope will continue to evolve and deepen. I hope my example or words will save at least one person and one child from the toxic effects known to exist in our environment, water, food, and products we consume or purchase in blind faith. My greatest hope is that in the near future, Americans will take to the streets and demand accountability of corporations and government agencies for safe food and water, and non-toxic, renewable and sustainable products. If we dream GREEN, we will become GREEN!

Nancy's Green practices explained with savings:

Switch to natural cleaning agents - saving $800-900/yr. By natural, I mean: vinegar, baking soda, lemons, castile or natural soaps, peroxide, salt.NO BLEACH.

Create zero waste - saving $180/yr. The zero-waste effort led to canceling my trash service. In addition to a monthly fee, they charged per bag beyond 2 bags, which can happen if your put leaves and grass clippings out. All organics, wet garbage, yard waste, and shredded paper, compostable picnic table ware (rare) go into compost. I have two piles so one is in use while second matures and gets used up. I use the simple layer method which Cornell advocates. I take my recycling to the municipal solid waste transfer station every 3 months. I also take one (1) $3.50 large plastic bag with non recyclable, non compostable garbage once a year.

Water faucet

Water faucet
Drink and carry tap water - saving $500+ annually. I don’t want plastic toxins leaching every minute into my water. Plus, I want to eliminate CO2 emissions and costs of plastic bottles and transporting water world wide, often at the expense of poor people with little or no access to their own water supplies.In addition to saving money, I am expressing my personal values and beliefs in the face of big corporations that bottle and sell for profit water at the expense of poor people whose right to it has been stolen. (Here are some reusable bottle options.)

Buy $.99 reusable grocery bags, eliminating real costs of using and disposing of plastic bags - savings $100/yr. These bags are also often used for giving small gifts rather than purchasing gift bags or wrapping paper, tape, ribbon, bows.

Limit gift giving - saving $500. My gift giving is generally limited to a small gift to open and a donation for relief of poverty in some way (e.g. mosquito nets; poultry to raise, feed, sustain income for a family; building a school in Sudan; and now, for Haiti.) There's no over-spending for “just one more gift.” No environmental costs.

Drive fuel-efficient car less - saving an average of $100-$150/month, or $1200 - $1800/yr. As often as possible, I plan errands, appointments, and work travel so I can drive in a circle and save extra trips to buy food. There are always the unexpected trips but planning cuts down on fuel costs. If I need something at the home improvement store/mall I wait, if possible, until I have a list of everything I need from stores in that area (12 miles away). This has cut shopping trips to the mall area to 4 or less per year. I generally work from a home office which also cuts fuel consumption.

Buy no fragrances: no perfume, scented candles, or air-freshners - saving $500+ annually. I open windows or doors; use all natural cosmetics, limited to foundation & rouge (see Cosmetics Database). Bath and body products are w/o fragrance and generally cost less. The health benefits are related to avoiding carcinogens, nano particles, phthalates, and asthma-causing ingredients.

Avoid plastic wrap -- saving $150 annually. I use brown wax paper in microwave (limited use) and re-useable plastic bowl covers or lids for food storage in glass kitchen ware. I never purchase plastic food containers.

Minimize paper -- saving $300. I use compostable picnic ware for those few times I am unable to use washable ware. I read newspapers online. When purchasing subscriptions to journals or placing catalog orders I request my contact info not be rented or sold. I am registered on the Mail Preferencing services and have a note on my credit records. This effort dramatically reduces junk mail and the amount of recycling I need to do. All loose paper goes through my shredder and is added to compost pile. Magazines and journals are generally saved or shared.

Use compact light bulbs & other efficient appliances - saving $200/yr. CFLs, which last 708 years and use less electricity, power all light fixtures. I replaced my old refrigerator 4 years ago and purchased an energy-saving dishwasher recently. I turn off my computer when away from my desk for more than two (2) hours and overnight. I turn off and unplug all electronics not in use, including the flat screen TV. I only turn on lights in rooms being occupied by a person and have attractive night lights in rooms which we may need to visit briefly after dark. My TV use is limited to evening news and occasionally a PBS special.

Buy used, refurbished goods - saving $2,000/yr, plus gas, energy and time to shop. My purchases, beyond health and house maintenance, are generally confined to gently used, repurposed, or refurbished items.

Grow own food -- saving $450-$500 on food, garden chemicals. I have two “square foot garden” boxes in which I grow organic produce every year, and share with a daughter and family. I figure I save $700.00, of which I use $350.00 for a CSA share for fruits, potatoes, and other or, unusual, vegetables I don’t grow.

Conserve water -- saving $100/yr. I installed two free rain barrels, offered by our county storm water management for attending a course on storm water. The rain barrels collect roof water run off, which I use to water front and back, including vegetable, gardens. I have a small home but collected enough water to keep both barrels full all but a few days last summer, watering daily.

Installed gravel driveway -- saving $4,000. My paved driveway was torn up to install a dry ditch four years ago (for run off from a side hill). Hard surfaces cause storm water flooding and permit toxins to reach water supplies. Without hard surfaces, ground water is filtered by soil before it reaches water supplies. Consequently I choose not to repave the drive and instead have crushed stone. (I live in a traditional, residential neighborhood.)

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