Gold 25-05-2011

Read more...

Silver 25-05-2011

Read more...

Wealth Is What You Save, Not What You Spend

Source:http://financiallyfit.yahoo.com/finance/article-112550-9317-5-what-millionaires-have-in-common
Want to be a millionaire? Don't overspend and use debt wisely.

We all may not be millionaires but there are plenty of financial and life-planning secrets we can learn from the well-heeled.

Most people know that wealth in the U.S. is in the hands of a small percentage of the total population. And, today, most of those folks with a net worth of $1 million or more have earned it themselves.

They're mostly entrepreneurs who create everything from high-speed networks to garbage haulers. They dig ditches and build houses and grow corn and make jewelry. They deal stamps or coins or artwork and control pests and cut lawns. They also cure people and give them new teeth. Others will defend their neighbors or even feed them.

And they're not big spenders. In fact, most of those with big bucks live well under their means -- think about Warren Buffett still living in that modest Omaha home -- and they put their money instead toward investments that help them stockpile more wealth.

"Wealth is what you accumulate, not what you spend," according to Thomas Stanley and William Danko, the authors of the seminal tome on America's wealthy "The Millionaire Next Door," first published in 1996.

"It is seldom luck or inheritance or advanced degrees or even intelligence that enables people to amass fortunes," the authors wrote. "Wealth is more often the result of a lifestyle of hard work, perseverance, planning, and, most of all, self discipline."

Wealth is defined in many ways, though it's generally determined as the value of everything you own minus debts. But there's a difference between marketable assets -- things you own that could be liquidated rather quickly, like stocks, bonds, real estate -- and possessions like cars, clothing and household items that you use regularly and aren't likely to sell.

Income alone does not make one rich. It helps, of course, to build wealth, but the financially independent look to their salaries as a means to an end, which is that pile of cash.

"The wealthy don't spend their wealth on discretionary purchases," said Pam Danziger, founder of Unity Marketing, a consumer market-research firm specializing in luxury goods and experiences. "They get rich by maximizing the value of their investments."

That doesn't mean they don't pay big bucks for pretty shoes or outfits, but that most choose those items carefully and shop for value and quality. "They truly evaluate the purchase as an investment, not an expense," Danziger said.

What they do though is diversify those investments, which gives them more flexibility to ride out difficult times. "The wealthiest clients have very, very diversified portfolios that go way beyond just stocks and bonds into hedge funds, currencies, commodities and emerging markets," said Leslie Lassiter, managing director of the JPMorgan Private Wealth Management.

"There are many, many mutual funds out there that will allow you to get exposure to those types of asset classes," Lassiter said.

Among the biggest differences between those flush with cash and those wishing they were is in how they pay for things. Millionaires tend to use cash for most of their purchases, including cars, homes and boats.

For the average wage earner, of course, that's not always an option but it still holds this lesson: Don't look to debt to fund your lifestyle.

Most wealthy people use debt for investment purposes and are careful not to over-leverage themselves. "A prudent use of debt is an appropriate thing for anyone," Lassiter said.

They also plan very well and spend a lot of time at it. Many are compulsive savers and investors who often say the journey to riches was far more fun than the reaching the goal.

And they're patient, willing to invest in the long term and wait it out. "They stick with their investments and are more likely to have a financial plan," said Sanjiv Mirchandani, president of National Financial, a subsidiary of Fidelity Investments.

Many take the long-term approach to investing because they're working at being financial independent. When they retire, for example, many will know exactly how much they need to live on, to give away and to leave as a legacy.

"The best ones really understand how much liquidity they need to cover their expenses and make sure they have that much cash on hand," Lassiter said. "That's something the average person should do as well."

At the same time, she said most are very careful about leveraging debt. "The wealthy tend to balance between the two," she said.

Recommendations for accumulating wealth:

Live below your means: People with high incomes who spend all that money are not rich; they're just stupid.

Plan: That means plan for today, tomorrow and 30 years after retirement. Take time doing it too and spend time monitoring it every day. Use budgets and stick to them.

Diversify: As Lassiter said, look for mutual funds that allow you exposure to asset classes that aren't related to each other.

Reduce use of credit and turn to cash: It's easier, of course, for a prosperous person to pay for a house in cash than it might be for most folks, but credit-card debt for luxury purchases or extravagant vacations will never pave a road to riches.

Have access to cash: While the rich keep much of their wealth invested, they can get cash when they need it. "Have some kind of line of credit available, like a HELOC (home-equity line of credit) that you never use," Lassiter said. "It's a safety valve." She suggests a year's worth of cash to cover expenses; Danziger thinks three years worth is a better bet.

Spread cash around: When the wealthy pulled money out of the equities markets two and three years ago, they opened a bevy of bank accounts, all guaranteed up to $250,000 of deposits by the Federal Deposit Insurance Corp.

Bring your children into the mix, and remember the importance of estate planning: The affluent can go to great lengths to teach their children about money and how to manage it -- something every family should do. Though talking about money with children consistently ranks as one of the most dreaded conversations, it's important that your heirs know where all the bank accounts and safe-deposit boxes are -- even that their names are on them, too -- who the attorney is, where the will and trusts are filed.

Read more...

8 Steps to Get Your Financial Life in Order

Source:http://financiallyfit.yahoo.com/finance/article-112321-8882-5-8-steps-to-get-your-financial-life-in-order
Do you have "frugal fatigue?" You're not alone. Pinching pennies becomes exhausting, year after year. You dream of breaking free and buying everything in sight.

But tiresome as budgets are, consumers haven't quit them yet. You threw some money around in December, when credit card use bumped up for the first time since the 2008 financial collapse. Then remorse set in. Consumers slashed their credit-card spending in January by 6.4 percent at an annualized rate, the Federal Reserve reported this week.

That fits with what the National Foundation for Credit Counseling is seeing on the ground. In a recent NFCC survey, two-thirds of consumers said that they're sick of having to question every dollar they spend, but have no choice. Incomes are virtually flat, employers aren't calling the long-term jobless back to work, and the cost of critical purchases such as health insurance and gasoline are leaping up. Only 5 percent of the people questioned said that they couldn't stand to keep living under fiscal restraint, and intended to spend more. About 8 percent said they didn't need to be particularly frugal. They hadn't cut spending and were doing fine.

The rest -- about 20 percent of the consumers -- overcame their frugality stress in the old fashioned way: they changed their lifestyles so they could live comfortably within the incomes they had. They found this new life so positive that they said they'd never go back, reports Gail Cunningham, a spokesperson for NFCC.

If you're sure that your financial troubles are temporary, it pays to pinch the pennies until the dollars start rolling back in. But the story is different if you see little hope of raising your income by enough to make your current expenses each to cover. Emotionally, making big changes is hard to do. But the faster you reinvent your life, the more money you'll have in your pocket and the sooner you'll be able to save again.

Your two largest expenses are probably your home and your consumer debt (plus health insurance, if you're not on a company plan). Your first step is to quit adding to debt -- put your credit cards on deep freeze and pay bills with cash or a debit card. Then follow these steps:

1. If you live in an apartment, check comparable rents in your neighborhood.

They've dropped in many parts of the country. If you find that you're paying more than the market requires, show your landlord proof and ask for a rent reduction. If the answer is no, move.

2. If you own a home and it's salable, sell.

Put any net gain into savings and investments, and find an apartment to rent. You'll be saving the high cost of maintaining a house, as well as tax and insurance bills.

Don't hold onto a house because you think you "need" the mortgage interest deduction. Financially, you're far better off without it. As an example, say that you're paying $1,000 in interest, in the 25 percent tax bracket. The taxpayers cover $250, leaving $750 as your net cost. Now imagine that you have no mortgage and $1,000 in income. You'll pay $250 in taxes, leaving you with $750 in your checking account. Losing the mortgage gives you more money to spend.

3. Restructure your credit card debt.

Move some of it to a new card with a zero-rate promotional offer. Don't use that card for purchases right away. Instead, concentrate on repaying this debt within the promotional period. You might also move debt from a high-rate card to one that's charging a lower rate.

4. Start a debt-repayment avalanche.

Get the latest bill for each of your credit cards, to see which one is charging you the highest rate (some cards have two rates, one higher than the other). Pay the minimum on the lower-rate cards and put all the rest of the money toward knocking off the high-rate debt. When that card is clean, move on to the next one.

Some people prefer to start by repaying the card with the smallest debt, even if its interest rate is low, for the pure pleasure of eliminating an annoying bill. Do whatever works. But you'll get the most bang for the buck by tackling the high-rate card first.

5. If you have savings, put all but a token amount against credit card debt.

Keep only $500 or $1,000 for unforeseen expenses. Consumers often don't realize the enormous return on investment they get from cleaning up their credit cards. For example, say that you're paying interest at a rate of 18 percent. Every payment you make against that debt gives you a guaranteed 18 percent return on your money. If you're paying a penalty interest rate of 24 percent, every payment equals a 24 percent investment gain. Where else could you get a yield like that, and totally safe?

6. If you have money in a 401(k) retirement plan and your job is safe, consider borrowing against it.

In theory, I consider these plans inviolable -- never to be touched. In practice, it makes sense to use them if they can help you rightsize your life. The transaction will look like this:

You'll borrow from the plan at 1 to 3 percentage points over the bank prime rate, which is currently 3.25 percent. So the loan might cost you 5.25 percent. You'll repay credit card debt at 18.25 percent, for a 13 percent gain. Typically, you'll have to repay the 401(k) loan over five years, with the payments deducted from your paycheck automatically. The interest you pay goes right back into your account, so you're paying t to yourself.

There are two financial downsides. First, you're repaying the loan with after-tax dollars. When you eventually take money out of the 401(k), those dollars are taxed again. But you're probably still ahead, thanks to the savings on your credit card bills. Second, you'll lose any appreciation that would have accrued to the money you borrowed. You can minimize this risk, however, by arranging to borrow against only the bond portion of your plan, leaving the stock portion exposed to any gains.

If you leave your job, and part of the loan is still outstanding, you'll have to repay it right away, in full. If you can't, the remaining loan will be treated as a withdrawal. You'll own income taxes on the money and a 10 percent penalty if you're younger than 59 1/2. So this loan is for someone who is pretty sure that his or her job is safe.

7. If you're one of the lucky 78 percent of homeowners who have equity, you could -- potentially -- pay off your credit card debt with a new home equity loan.

But the argument isn't as compelling as it is for loans against 401(k)s. Ideally, you're aiming for a paid-up home when you retire. That will cut your cost of living, give you access to a reverse mortgage for extra cash, and provide money needed for long-term care. A home equity loan might make that impossible.

8. If you don't have health insurance, any major illness could put you into bankruptcy.

Try for a high-deductible policy, or see if you (or your kids) qualify for Medicaid or the children's program, Schip. If insurance companies won't take you because of a medical condition, try for a place in the high-risk pools set up by the new health reform act. We're a long way from equal access to medical care, let alone care at an affordable price. But if you cut other expenses, you just might be able to afford good health.

Read more...

5 Ways to Retire Before Age 40

Source:http://finance.yahoo.com/focus-retirement/article/110197/5-ways-to-retire-before-age-40?mod=fidelity-startingout&cat=fidelity_2010_starting_out
Voluntary early retirement before the age of forty is not typical. Leaving work behind as early as possible to focus on other aspects of life is a popular goal, but most people will not achieve it.

In order to retire in your forties and still have the funds you need to finance all that you'd like to do, you need to create the right environment to foster extraordinary results with your money. Don't count on winning the lottery or selling the company you built in your basement to Google.


Those who leave the workforce before age forty compose a small percentage of the working population, just as Olympic-level swimmers are a small percentage of everyone who competes in the sport. To achieve in the Olympic Games you need to take several extreme actions. To retire early, you will have to do the same. These tips may help you generate enough money to retire before age forty.

Ignore what other people think. You'll need the right mindset. As you make choices that could lead you to extreme early retirement, you may face resistance from family and friends. The decisions you will need to make are often directly opposed with others' expectations. Find like-minded individuals whose advice and encouragement will help move you in the right direction.



Save as much as possible as soon as possible. This is the first of your unpopular decisions. You will need to sacrifice your spending at the beginning of your career in order to have a better chance of living the way you want when you want, with financial freedom, for a longer amount of time. To you, frugality should be elevated to an art form. Your friends may call you cheap, but you won't care because you are focused on your goal without distraction.

Earn as much as possible as quickly as possible. With more income, you can keep more money in high-yield savings accounts and investments. Those funds will be ready for your early retirement. While it's the amount you save that matters, you can significantly extend those savings by earning more. Work more hours or take an additional job or two. Olympic athletes train and practice constantly and this is the same intensity you need to achieve an early retirement.

Avoid fees while investing. While this concept is one part of saving as much as possible, it deserves its own mention. Most investments underperform index funds and you'll pay higher fees for those lackluster results. While some investments do beat the market, you won't know which investments will skyrocket until it's too late. Invest in index funds and make sure you have a sensible mix of asset classes that present a good chance of protecting you from down markets when you need the money you've invested.

Consider a new definition of retirement. You may still want to work in retirement to earn additional money, particularly if you can do work you enjoy. Consider a part-time job or even a full-time job with a non-profit organization aligned with your interests and values. Leaving the corporate world to work for an organization you care about can be exhilarating and you will enjoy the work. Extreme early retirement is an achievement most people will not accomplish, even if you put forth a good effort. Leaving the workforce behind before the age of forty is an extraordinary accomplishment and it requires dedication, intensity, and a willingness to live differently.

Luke Landes writes for Consumerism Commentary, where he encourages discussions about money and consumer issues. Consumerism Commentary regularly tracks and reviews the best online savings accounts and other financial products and other financial products.

Read more...

Does 'good' debt really exist?

Source:http://www.creditcards.com/credit-card-news/does-good-debt-still-exist-1264.php?aid=52aae854
Does "good" debt exist anymore? Financial experts differ, but many say that in today's economy, it's time to reconsider how we look at some common types of debt.

Traditional thinking separates debt into "good" and "bad." Mortgages and student loans have been considered good debt because they have fairly low interest rates and hold the promise of a substantial long-term payoff. Auto loans and credit card debt usually rate a bad debt label.
Does 'good' debt still exist?

But with unemployment hovering around 9 percent, housing prices falling nationwide and the average cost for a four-year private education soaring to an average of just more than $37,000 a year, according to the College Board, does good debt really exist anymore?

Noted personal finance author David Bach says no. The recession, he says, taught us that "all debt is bad if you can't pay it off."
"With many Americans today, almost 30 to 50 percent of their paycheck is going just to interest payments," says Bach, whose latest book is "Debt Free For Life." "Often it's more than that. There's been a real awakening that debt is bad."

Others say good debt still exists, that buying a house is still a sound investment over the long haul, and borrowing for a college education is a good risk -- if you keep borrowing down and study for a profession that can pay it off.

Here are some ways the debate shakes out:
Cars and credit cards
In terms of bad debt, financial experts agree that a large amount of auto loan debt is hard to justify. If you have to have a car to get a job, then get a cheap car, but borrow as little as possible. Borrowing money at high interest to pay for a depreciating asset just doesn't make financial sense, they say. But there is more debate on credit card debt.

Jordan Goodman, author of "Master Your Debt," warns against it. "If you're paying 18 or 25 or 29 percent, it's hard to imagine what you'd invest in that would pay you more than 29 percent reliably," he says. "And, of course, it's not (tax) deductible."

But Lita Epstein, author of "The Complete Idiot's Guide to Improving Your Credit Score," says credit card debt isn't all bad if it helps you establish a solid credit history that will help you with big purchases later: "Generally, you get your best credit score when you use 10 to 20 percent of your credit limit," she says. "That shows any creditor who's considering you that you know how to manage your credit wisely, you know how to pay your bills on time and you're not going to get yourself in over your head."

Robert Pagliarini, president of Pacifica Wealth Advisors in Los Angeles, says credit card debt is good if it will make you money. Period. He gave an example of buying a piano on credit so that you may give piano lessons.

"Why wait four years to save up and buy the piano, when you can buy it on credit now and make some money? This is what businesses do. They borrow money ... so they can invest it into research, into assets so they can make more money. That's what individuals need to do."


Student loans: Good debt or bad debt?
Student loans are good debt, even as costs escalate, if you can expect to make a salary when you graduate that will allow you to pay off the debt within a few years, says Carol Roth, business strategist and author of "The Entrepreneur Equation." In today's economy, that may mean only taking on the debt only if you are entering a high-paying field or finding a less expensive college that will make the math work, she says.

You also have to consider that a college education pays off in other ways, she says. "There's a value to having an education, to learn and to be a well-rounded person but only you can assign what that value is, based on your own circumstances."

Personal finance columnist and author Liz Weston says there's a rough dividing line between good student loan debt and bad: "Don't borrow more than you can make in the first year of your career," she says.

Pagliarini says student loans are still a good bet financially, even in a time of high unemployment.

"The research shows that the more education you get, the more you're going to make long term," he says.

He notes the national unemployment rate is an average and doesn't fully illustrate the difference in unemployment among different education levels. "When you look at the people with bachelor's degrees and above, that number just about drops in half." In fact, Bureau of Labor Statistics numbers for February 2011 show unemployment rates for people with a high school diploma and no college to be 9.5 percent; it's 4.3 percent for people with bachelor's degrees and above.

Goodman says he agrees that on average people with college educations make more than people without. But the risk for making that choice has gotten too high, he says.

"People are taking on huge debt and, in the case of student loans, they're not forgivable even in bankruptcy. The two debts you can't get rid of are taxes and student loans."

That debt burden is exactly what concerns Thomas Alexander, Finance Department chair at Northwood University in Midland, Mich. He says paying for a college education with student loans is no longer a good risk unless you're entering high-paying fields, such as medicine, engineering or accounting.

"If someone is getting a degree in sociology or history -- the chances of landing anything that would give them a high return is pretty small," he says.

He says college is not for everyone and the better payoff may be skipping college and going into a trade.

"If you take a student who does not go to college and becomes a plumber or electrician -- those guys are going to make more money than 75 percent of the college graduates, but we've made the feeling in this country that that is beneath them."

Mortgages vs. renting
Goodman says taking on a mortgage is not a way to build wealth as it has been in the past.


"Home prices are falling -- probably will continue to fall -- and 25 percent of the population is underwater (the house is worth less than the amount of the loan). Home deductions [for interest] are overrated. You get a deduction at your tax bracket, so if your tax bracket is 25 percent, you're still paying 75 cents on the dollar. If you're not being bailed out by home-price appreciation, this may not be a good deal."

Roth says it's all about the math. She gives an example of buying a $275,000 home purchased with 25 percent down and taking out a 30-year mortgage at 4.5 percent. It will cost you $68,750 today to buy that home (that's the 25 percent down), and you will pay out more than $376,000 over 30 years. Even if the home doesn't appreciate in value, you will have an asset worth $275,000 at the end of 30 years. Rent at $1,500 a month over 30 years would be $540,000 and that would be without inevitable rent increases. There would also be no asset at the end.

That makes the beginnings of a case for why a mortgage is a good idea over the long haul, she says. "But you also have to ask yourself some questions," she says, "such as what are you doing with the difference in money you spend on the mortgage (only $1,045 vs. $1,500 in rent)? That money may also be able to be invested. Do you have property taxes? That creates more costs. Do you have assessments? How much is maintenance on your home? Is homeowner's insurance more than renter's insurance?"

Answering those questions will help you make up your own mind about what qualifies as good debt.

Regardless of where financial experts stand on what's good debt and bad debt, all agree working to pay it off as quickly as possible is a good idea.

"One thing that never backfires is paying down your debt," Bach says. "It is the safest, simplest investment you can make."

Read more...

7 Lasting Money Lessons From Mom

Source:http://www.foxbusiness.com/personal-finance/2011/05/05/7-lasting-money-lessons-mom/
Mom taught you to tie your shoes, say"please" and "thank you," and never pick up hitchhikers. What else did she do? She acted as your first teacher of personal finance. Here are the most-lasting lessons people learned from their mothers about the right and wrong way to use money and credit.

1. Money Equals Effort: Waste Neither.

"My mom gave me the single best piece of financial advice I ever received," says Corona, Calif.-based motivational speaker Barry Mahar. "She said, 'Before you buy anything, think of how long and how hard you'd have to work to earn that much money.' It's amazing how many things I've thought I needed turned out to be a lot less necessary when stacked up against the hours of work it would take to own them."

2. Don't Wait to Save.

Blogger Emmie Scott from Richmond, Va.,cites her mother's instruction in socking cash away as pivotal to her positive net worth. "She helped me open a savings account when I was about 8 years old, so I could start getting in the habit of putting money aside."


At 23, Scott has two high-interest savings accounts, maxed out her 401(k) and will soon open a Roth IRA. "I'm so grateful to her for taking the time to set me on a smart financial path and get me interested in what happens to my money." Today she features financial tips --based on her mom's counsel and her own research -- for young adults on her blog, Are Toe Rings Professional Attire?

3. The Sky's the Limit.

Atlanta-based financial planner KarenLee became a self-made millionaire by the age of 37 and credits her wealth toher mom, a high school economics teacher.

Besides teaching Lee to invest her savings, shop from the clearance rack and cook inexpensive food, she instilled the unerring belief that economic aspirations are not just limitless, but achievable. "She told me and my sister that we could do anything in life and to become independent financially. No glass ceilings here!"

4. A Good Budget Keeps You Out of Debt.

The woman is the accountant in many homes, and so are often coaches of the craft. Such is the case for Michelle Morton, an organizing consultant living in Raleigh, N.C. Not only did her mother teach her how to create a budget, but she uses the very same plan tothis day.

"I wanted to learn how to save and payoff some debt when I was in my early 20s and didn't know how to do it all, so she sat down with me and showed me how to budget," says Morton, who notes that the lesson also included essential banking skills. "She taught me how to balance my checkbook to the penny!"

5. You're Never Too Young to Spend Smartly.

Sarah Finch, a Chicago corporate trainer, cites the early education she got from her mom (Lynn Finch, author of the family finance book,"No-Cash Allowance") for her own financial aptitude and resilience. "She began teaching me money lessons when I was 5," says Finch. "I was given responsibility for real expenses as I grew older -- school supplies,lunches, clothes, etc."

Finch believes that the skills her mom gave her have been instrumental in keeping her out of financial trouble, even in down times or unexpected unemployment. "I will be using this same approach with my 3-year-old daughter as she grows up as well," says Finch.

6. Stop Whining -- Get to Work!

Self-reliance is paramount. That's what Andi Wrenn, a financial counselor from Boston, says she gleaned from her mom. Though they were poor, her mother neither complained nor went on government assistance, even though she probably qualified. "She showed us by example thatif you didn't have enough income to pay the bills, you go out and do something about it," says Wrenn. She soon began earning, too, taking on babysitting jobs and newspaper routes. As a high school student, Wrenn pitched in for household bills.

"It was so valuable to me to learn to be responsible for myself. By the time I left to attend college, I was prepared financially to enter the world as an adult," says Wrenn.

7. There is a cut-off point.

And what happens when cash is plentiful? According to Judy Woodward Bates, the Birmingham, Ala., founder ofBargainomics.com, a smart mom stops the gravy train. It's how she learned real independence.

"My parents spoiled me," admits Bates."But when I married at the age of 17, she and my dad refused to pay for my college and told me and my husband, Larry, that we were on our own." While Bates feels confident that her mom would have helped out in a crisis, "she let me know that the free ride was over and that, regardless of how young I was, I was an official adult and responsible for my own spending habits at that point."

If you're free from debt, your bank account is brimming, and you can overcome financial adversity with aplomb, you may have mom to thank. Be sure to do so -- it's good manners, after all.

Read more...

Who can challenge my WILL

Source:http://malaysiapersonalfinance.blogspot.com/2009/06/who-can-challenge-my-will-and-what-i.html
Writting a Will conceptually makes a person to think about how to allocate his wealth. It is also commonly thought that a Will can speed up the process of handling down the estates faster. Malpf actually teaches that Will is NOT the ONLY, NOR the Best solution in this regard. However, writting a Will is still one of the Easiest ways on this regard due to vast availability of market service providers and the direct implication of Will. ie. you don't need to take a class to learn what a Will is for.

Also because it is easy to understand, many people may have some miss-conceptions on it too. Some may think once you have a Will, your estates are Guaranteed to be distributed in the way you planned for. At least that is what the estate planners market talk about. But in real life after you are dead, your 'plan' can still be challenged! Below shares a couple of common scenarios when a Will can be challenged with high success rate;

1. If your family members have reasons to believe that you didn't have a clear mind (sound mind) or were forced (pressure or duress) into making a Will, they can appeal to disqualify your Will. Family members include those who are beneficiary and those who are not. So if you are setting up a Will in a hospital, it is best you get your doctor to be one of the Witness who can later certify your sanity at the time the Will is made.

2. If you didn't allocate anything to your dependents especially spouse, single daugher, retard or ill child to take care of their daily living needs, your Will can be challenged. If you intend NOT to give ANYTHING, specify clearly your reasons in your Will. The reasons will be used by the judge to determine if the challenges will be accepted as a court case. There is NO simple full proof Reasons for this arrangement, you may need to prepare proof and get a proper lawyer to draft using sensitive terms but the challengers can still find better lawyers to find loop holes in your reasoning. If you can have an apparent reason, that is good. Else just allocate Simple Living Needs to them. Challenging un-adequote is harder than leaving nothing to them.

Other than challenging your Will, one can also raise a dispute by claiming your Will is NOT the latest Will. Since each New Will Voids all Old Wills, authentication checks will be performed upon the so called 'New' Will.

A will written by under age 18 automatically invalid the Will.

If the witness did not actually see the Will being signed, invalid! (attestation clause)

Challenges will NOT void your Will automatically. When someone raises an issue on your Will, the judge will need to consider it. So your Will may still get executed eventually anyway but it is almost certain that the process will be delay.


My left over for my Legacy ...

Read more...

Write your own WILL for free

Source:http://malaysiapersonalfinance.blogspot.com/2009/06/write-your-own-will-for-free.html
You can write your own will. All you need is 2 witnesses. It will be as legitimate as any 'standard Wills' created by professionals. But if you think your will may be challenged, you should consult a real lawyer whose focus is on wills business, preferably also your 'real' friend.

Witnesses DO NOT need to see the content. Just get them to sign their parts, seal the envelop in front of them and thanks them.

Safe keep your will and only share with those need-to-know bases. Usually the Executor and/or the Beneficiary. Whoever they are, they are the ones who know . . . when you die.

There are many more tips and tricks but the relevancy really depends on your own specific situation. Consult wills experts to skip all the convoluted knowledge and convenient yourself. That is what the RM100-RM300 you pay for.


LAST WILL AND TESTAMENT

of

____________________________________

(Full Names and Surname)

____________________________________

( NRIC / Police Number / Army ID )

____________________________________

____________________________________

(Address)

1. Declaration

I hereby declare that this is my last will and testament and that I hereby revoke, cancel and annul all wills and codicils previously made by me either jointly or severally. I declare that I am of legal age to make this will and of sound mind and that this last will and testament expresses my wishes without undue influence or duress.

2. Family Details

I am married to _____________________________ hereinafter referred to as my spouse.

I have the following children:

Name: ______________________ Date of Birth _________

Name: ______________________ Date of Birth _________

Name: ______________________ Date of Birth _________

3. Appointment of Executors

3.1. I hereby nominate, constitute and appoint _________________________ as Executor or if this Executor is unable or unwilling to serve then I appoint _______________________ as alternate Executor.

3.2. I hereby give and grant the Executor all powers and authority as are required or allowed in law, and especially that of assumption.

3.3. I hereby direct that my Executors shall not be required to furnish security and shall serve without any bond.

3.4. Pending the distribution of my estate my Executors shall have authority to carry on any business, venture or partnership in which I may have any interest at the time of my death.

3.5. My Executors shall have full and absolute power in his/her discretion to sell all or any assets of my estate, whether by public auction or private sale and shall be entitled to let any property in my estate on such terms and conditions as may be acceptable to my beneficiaries.

3.6. My Executors shall have authority to borrow money for any purpose connected with the liquidation and administration of my estate and to that end may encumber any of the assets of my estate.

4. Guardian

4.1. Failing the survival of my spouse as natural guardian I appoint _____________________ or failing him / her I appoint ______________________ to be the legal Guardian of my minor children named:

__________________________

__________________________

__________________________

until such time as they attain the age of _____________ years.

4.2. I direct that my nominated Guardian shall not be required to furnish security for acting in that capacity.

5. Beneficiary

I bequeath the whole of my estate, property and effects, whether movable or immovable, wheresoever situated and of whatsoever nature to my spouse ________________________.

6. Alternate Beneficiaries

6.1. Should my spouse not survive me by thirty (30) days I direct that the whole of my estate, property and effects, whether movable or immovable, wheresoever situated and of whatsoever nature be divided amongst my children named in 2. above in equal shares.

6.2. Should my said spouse and I and my children all die simultaneously or within thirty (30) days of each other as a result of the same accident or calamity, then and in that event, I direct that the whole of my estate, property and effects, whether movable or immovable, wheresoever situated and of whatsoever nature shall devolve as follows:

__________________________________________________________

__________________________________________________________

__________________________________________________________

7. Special Requests

I direct that on my death my remains shall be cremated and all cremation expenses shall be paid out of my estate.

OR

I direct that on my death my remains shall be buried at _______________________ and all funeral expenses shall be paid out of my estate.

8. General

8.1. Words signifying one gender shall include the others and words signifying the singular shall include the plural and vice versa where appropriate.

8.2. Should any provision of this will be judged by an appropriate court of law as invalid it shall not affect any of the remaining provisions whatsoever.

IN WITNESS WHEREOF I hereby set my hand on this _________________ day of _________________20_____ at _______________________________________ in the presence of the undersigned witnesses.

SIGNED: _______________________________

WITNESSES

As witnesses we declare that we are of sound mind and of legal age to witness a will and that to the best of our knowledge ____________________ is of legal age to make a will, appears to be of sound mind and signed this will willingly and free of undue influence or duress. We declare that he / she signed this will in our presence as we signed as witnesses in the presence of each other, all being present at the same time. Under penalty of perjury we declare these statements to be true and correct on this ________________ day of _________________ 20 __ at ________________________________.

Witness 1.

Name: ______________________

Address: ________________________________________

Signature: ________________________

Witness 2.

Name:______________________

Address: ________________________________________

Signature: ________________________

Read more...

Overspending: 4 Lies That Lead to Debt Problems

Understanding financial concepts like credit and budgets is critical to long-term success with money. But equally important, it seems, is recognizing (and controlling) the impulses that lead you to buy things you don't need.

People with debt problems tend to share a common costly trait: they have unrealistic expectations for how material things will make their life better. That is the chief finding of a new study, Materialism, Transformation Expectations, and Spending: Implications for Credit Use by Marsha Richins and Myron Watkins, marketing professors at the University of Missouri.

The authors found that people who wind up deep in debt often got there because they expected "unreasonable degrees of change in their lives from their purchases." The authors also concluded "these beliefs are fallacious for the most part, but nonetheless can be powerful motivators for people to spend."

Studies like this complicate what has become a global quest to raise personal financial literacy through programs in schools and communities and at work. We need to do more than simply lay out the nuts and bolts of saving and investing. We also must examine the psychology of why we buy all the stuff we buy. It's not a bad idea to ponder your own behavior in this regard.

The study identifies four types of unrealistic expectations common to overspenders. These expectations are much less evident in folks who do not have debt problems. Here, then, are four lies that people tell themselves when buying things they don't need:

• It'll make me a better person: Many overspenders believe a purchase will literally change them into a better person. One woman in the study was certain that cosmetic dental surgery would improve her looks and quickly render her more confident and successful.

• People will like me more: Overspenders may believe that a purchase will make it easier for them to connect with others. One woman in the study wanted to buy a house so that she could entertain and be more social, and thus find more friends.

• I'll be more fun: Some believe that a purchase will make them more fun and fulfilled. A man in the study wanted a mountain bike because then, he figured, he'd become more adventuresome and interesting.

• It'll make me more effective: The typical overspender believes that a purchase will make them better at a certain pursuit. Several in the study said that a new car would make them more independent and self-reliant.

See the pattern? Heavy users of credit have a greater tendency to believe that the product makes the person. Which, of course, is backwards. A cyclist may need a new bike; a new bike does not make a cyclist. You can't buy personal transformation in a store.

Sure, whiter teeth may give you a confidence boost and a new house might make you more social — for a while. But it won't last if that's not who you really are. It's far more likely that the guy with the new bike will never take it out of his garage than turn it into a passion.

You know people like that, right? They have tons of unused stuff in the attic, and they may still be paying for much of it. The more you believe that happiness is for sale the more likely you are to end up with debts you cannot repay.

Source:http://finance.yahoo.com/banking-budgeting/article/112643/lies-lead-debt-problems?mod=bb-budgeting

Read more...

Gold 24-04-2011

Source:http://www.publicgold.com.my

Read more...

Silver 24-04-2011

Source:http://www.publicgold.com.my

Read more...

Your Hidden Fuel

Source:http://www.anthonyfernando.com/2011/04/21/your-hidden-fuel/
by anthony on April 21, 2011

Many people think of dissatisfaction as a negative emotion that should be suppressed or denied, but in actual fact dissatisfaction is one of the most important ingredients for success.

Time For Change

What most people don’t realize is that dissatisfaction is a powerful form of fuel that has been the driving force behind many of the world’s greatest achievements.

You see, in order to be dissatisfied, you must want something.

And if you can identify what it is that you want and then stoke the fuel of your dissatisfaction, at some point it will ignite and propel you to take action.

Here’s an example that illustrates how this works in the real world.

Yani was a concierge in a large city hotel. He always did his best to help hotel guests and tried to maintain a positive attitude, however, deep down Yani was dissatisfied with his job and career prospects.

Whenever Yani became aware of his dissatisfaction, he tried to suppress it. He told himself not to have a negative attitude and to just accept his lot in life.

However, one night after dealing with a particularly rude and arrogant guest, Yani knew he had to face facts – he was dissatisfied and it was time to do something about it.

He analyzed his dissatisfaction and after a considerable amount of thought, Yani realized that what he really wanted was to pursue his interest in computers and technology, but he had no idea how to go about making such a major life change.

He knew he could not just quit because he had bills to pay, but over time Yani’s dissatisfaction continued to grow and like fuel to a fire, it increased his desire to make a change.

When Yani came across an advertisement in a newspaper for adult night classes in computer programming, the fuel of his dissatisfaction ignited and propelled him into action. He rearranged his hotel shifts and immediately enrolled in the course.

Two years later, Yani walked through the lobby of the hotel with a laptop bag across his shoulder. The computer consulting company he now worked for was holding a conference in the hotel function centre.

The hotel hadn’t changed, but Yani had. Fueled by his dissatisfaction, he had taken action and had succeeded in changing his circumstances and the direction of his life.

“Dissatisfaction is man’s driving force.”
- W. Clement Stone

So the next time you feel dissatisfied about something in your life, instead of dismissing or denying your dissatisfaction, recognize it for what it truly is – a hidden fuel that can spur you on to achievement and success.

Remember that if you are dissatisfied, then you must want something. Spend the time to clarify what it is that you want, and utilize your dissatisfaction to propel yourself into action and make your dreams a reality.

Until next time,

Dare to Dream!
Anthony

Read more...

Silver Projected To Hit $90 Before The End of 2011 - GoldCoinBlogger

Elizabeth Kraus

While Paul Ryan’s proposal will do nothing to reduce health care cost but do the opposite, where individuals will have to carry a heavier burden, is not a “path to prosperity”, as the Ryan plan was titled. To summon up the words of the dean of progressive social policy, FDR who was asked his opinion of the platform of the American liberty League in 1935, which like the Ryan’s cabal, aimed to dismantle the New Deal under the guise of preserving individual rights and free enterprise, he told reporters, “say you shall love God and then forget your neighbor. For people who want to keep themselves free from starvation, keep a roof over their heads, lead decent lives, have proper educational standards, those are the concerns of the government.” Those are still the concerns of the government today, and to say we can’t afford them is an affront to the working people who built America today.But where ideals today lead us? Already a substantial percentage of the American people are feeling quite stressed, and they know, we are heading for some really difficult economic times– all the while looking to the government for personal bail outs. However, while this economy has millions of Americans feeling depressed, it is not the appropriate response, nor will it solve anything. Rather, once we understand just how bad our economic problems are, we should feel empowered, because then, we can start focusing on real solutions. And somebody really needs to start focusing on solutions because panic is starting to abound as already many top corporate insiders are selling off stock like there is no tomorrow. The biggest bond fund in the world, PIMCO, has been getting rid of all of their U.S. Treasuries. When Wall Street big shots starts freaking out you know that the hour is late. And, it certainly doesn’t help that the Middle East is in a state of chaos and that the Japanese economy is falling apart as a result of the recent disasters. So, in these uncertain times is where critics of investing in gold and silver really drive home … to own gold or silver to really save you, you might ask, is it really worth it? According to the Regal Assets analyst PIMCO is just another addition to the many who have been ditching U.S. Treasuries. “China has been unloading billions of dollars in U.S. Treasuries and will continue to unload as the dollar depletes in value” Regal Assets stated this morning in an interview.

In this economy, a lot of people have questions about silver and gold. As investors are turning to real “global currencies” such as gold, silver and oil, the answer suggests that paper currencies are not only becoming worthless, but rampant inflation is on the horizon, that says to analysts, gold and silver is the only safe haven…predicting that silver prices will reach as high as $100 in 2011 and $250 by 2015.

So, if one asks, is it worth it? Why is China buying like crazy! China’s silver consumption already accounts for 70% of the global total of industrial use, and its middle class isn’t even close to reaching its spending potential. But, China’s impact on the market isn’t the only thing catching the attention of silver analysts. As the global economy expands its size and reach… as technology advances… and as more ways to buy silver become available… as silver supplies have dwindled… more factors began affecting the price of silver more exclusively – for better or worse, which makes silver quickly gaining serious value in many highly profitable industries. Although it’s a less active and lower-volume market than gold, which means that purchases, even by individual investors, can make an impact on prices, 100 silvers buyers purchasing the same amount of metal as 100 gold buyers will have a bigger impact on the market. Think how much prices can spike when millions of Chinese investors flood the market with bids to purchase silver. Now, combine that with the global return of industrial silver demand.

Martin Hutchinson of Money Morning believes both silver and gold will continue climbing into 2011 and beyond. If enough investor momentum gains – and if China’s push for individual silver investment intensifies – he believes silver could peak past $100 in 2011. But that’s just the beginning. Silver could top out at $250 oz. in the next five years, as global mine production crawls in the face of increasing consumer and industrial demand. That’s an increase of more than 1,150% over current prices. Bear in mind that silver prices have been moving as fast if not faster than gold. So those who want to invest in silver better pull the trigger soon, or be prepared to watch from the sidelines as silver’s price explodes upward.

Matt Turner at Mitsubishi said this week, “one ounce of silver briefly rose above 40 of today’s US dollars per ounce in 1864, when the American Civil War neared its climax. In nominal dollars, the Hunt brothers’ multi-billion-dollar corner only saw it more highly priced on 5 trading days in January 1980. And while US investors waiting to buy silver are also still waiting for it to record a new intra-day high, it’s already broken new ground against the British pound and for most of the Eurozone, too.”

The cause? Gold investors have long tried to explain how metals are “telling us” something. “First warning” of the looming financial crisis, said Marc Faber in his Gloom, Boom & Doom Report of September ’07, was when “the price of gold more than doubled in nominal terms and against the Dow Jones Industrial Average [because of] ultra-expansionary US monetary policies with artificially low interest rates.” In which case, and with global interest rates further below zero today after inflation than at any time since 1980, what in the hell is silver telling us now?
“TIPS pay a lower rate of interest than regular Treasuries,” explained Bloomberg News when the yield offered by 5-year Treasury Inflation Protected Securities briefly dipped below zero (and $20 silver broke a 28-year high) back in March 2008. [That’s] because their principal rises in tandem with a version of the consumer price index which includes food and energy prices. Rising demand for TIPS [which pushes up prices and so pushes down the nominal yield] indicates investors expect the inflation adjustment to make up the difference.”

What great expectations TIPS buyers must have of Uncle Sam’s “inflation adjustment” today! They’re buying 5-year index-linked bonds with a nominal yield of minus 0.6%, anticipating a full 2.8% per year fillip from Washington when compared with the annual yield now offered by conventional 5-year bonds. And what greater hopes still must the new rush of silver investment hold…rejecting TIPS in favor of metal, and breaking silver’s tight connection with both gold prices and TIPS yields. The point that broke silver higher – was right when Fed chairman Bernanke vowed to begin QE2 in summer last year. That a fast-growing nugget of the world’s private wealth is fearful of the result is clear. That silver looks a turbo-charged play is clearer still.

There’s no bull market like a silver bull market, in short – just ask the Hunt brothers ahead of their bankruptcy, eight years after their corner blew up with the big inflation-fueled 1970s’ bull market. Double-digit Fed interest rates popped the bubble back then (plus a good dose of anti-speculative action by regulators and the exchanges, otherwise known as “saving the system” of course. It was sparked in turn by the Hunt brothers’ own naked greed, otherwise known to them as “inflation protection”). The most recent time silver got hot, however, it took oil at $150 and then the Lehman Brothers’ collapse to do to GDP growth and commodity prices what central bankers wouldn’t dare. Because raising interest rates to double digits to kill a “speculative frenzy” wasn’t politically possible. Silver’s and gold’s Bull Run on inflation. Which is worth bearing in mind whether you’re quitting, holding, ignoring or looking to buy gold or silver today. Did anyone imagine gold at $1492.40 or silver at $42.40? Well there you are!

Source: http://goldcoinblogger.com/silver-projected-to-hit-90-before-the-end-of-2011/#more-2955

Read more...

S&P forecasts gold prices will remain high in ‘next year or so' - Mineweb

Standard & Poor's expects gold prices to remain high in the next year because of economic challenges in Europe, increasing global inflation and potential economic fallout from the Japanese earthquake.

Author: Dorothy Kosich

RENO, NV -

In an industry economic and ratings outlook released Tuesday, Standard & Poor's forecast that most U.S. and Canadian metals and mining companies will improve their operating performance in the first half of this year, "reflecting a rise in average prices and strengthened end-market demand."

S&P Primary Credit Analyst Marie Shmaruk and Senior Economist Beth Ann Bovino also noted that prices of the yellow metal--in response to global political uncertainties and fears of inflation--have remained high, averaging nearly $1,400 per ounce, year to date. "We expect gold prices to remain high in the next year or so because of economic challenges in Europe, increasing global inflation, and a potential economic fallout resulting from the earthquake in Japan," they forecast.

Meanwhile, the analysts observed that 60 U.S. and Canadian metals and mining sector companies have positive or stable rating outlooks.

"In our view, these companies would be able to withstand a period of weaker-than-expected market conditions, similar to what occurred at the end of 2010, without significant credit deterioration, and a resumption of slow steady growth could potentially result in higher ratings for some companies," they said.

"For those with negative ratings outlooks or on CreditWatch with negative implications, we're generally concerned about whether market conditions will be strong enough to support the ratings."

Since S&P published its last industry outlook in January, one company, James River Coal, has been upgraded by the analysts while no mining and metals company has been downgraded.

Shmaruk and Bovino observed that the global demand for metallurgical coal is strong, while the steam coal business still has not recovered to pre-recession levels. "However, most metallurgical coal operations are enjoying high pricing and a strong export market."

"Still, the regulatory costs of the EPA's clean air and water rules and increased scrutiny of underground mining in the U.S. remain key risks," they cautioned.

Meanwhile accelerating coal mining merger and acquisition activity has affected overall credit quality, and the analysts expect consolidation to continue because of cost pressures and the need for companies to diversify and expand their operations.

Favorable base metals prices continue

In their analysis, Shmaruk and Bovino noted, "Copper prices are robust, averaging more than $4.30 per pound thus far in 2011 compared with $3.40 for all of 2010."

"With strong demand from China and slowly improving demand outside of China, along with relatively constrained supply, we expect prices to stay high enough to support producers' current ratings."

Meanwhile, the analysts also observed that aluminum prices are continuing to strengthen with prices above $1.15 per pound compared with an average of 99-cents per pound for all of 2010.

"However, still-high London Metal Exchange (LME) inventories could spur declining prices, especially if substantial supply comes to market," they said. "We believe most of the LME inventories are backing financial transactions and are not readily available."

The analysts suggested overall liquidity for most metals and mining companies remains adequate.

"Most metals and mining companies have sufficient liquidity to withstand the volatility inherent in these businesses. Over the next year or so, if the economy continues to improve as we expect it will, most companies are likely to use some of this liquidity to fund increases in working capital to accommodate higher business volumes, prices and costs."

"Many companies are also expanding their capital programs, restarting projects deferred during the recession, and investing to improve their costs structures," S&P noted. "We expect that most industry participants should generate sufficient cash flow to fund most of their capital spending and still have borrowing capability to accommodate working-capital growth."

Source: http://www.mineweb.com/mineweb/view/mineweb/en/page67?oid=125017&sn=Detail&pid=102055

Read more...