The best savings account

The best savings account

Savings accounts are the best idea for putting away a set amount of money each week or month depending on your circumstances. You would be surprised at how quickly this money can add up if you are contributing a set amount from your paycheck every payday.
When shopping around for the best savings account, find one that pays a good interest rate and has a minimal amount for opening the account. A lot of banks only require a dollar to open an account while others may want you to deposit anywhere from 5 dollars to 50.

The convenience of having money automatically withdrawn from your paycheck and placed in your savings account is great for some. However others may not put a set amount in each payday and may want to choose how much they deposit into their savings account.

The best type of savings account will pay a comparable interest rate, be easily accessible to your home or work, will not charge a fee for withdrawals from your account, has on-line availability, and does not require a large deposit to open. If you have a bank account and access it online you should be able to transfer money to and from your savings account. You should try not to transfer from it unless it is an emergency because this defeats the purpose of having the savings account in the first place.

Some types of savings accounts are geared towards the holiday season. This allows you to save money for Christmas. If you start it early enough in the year by the time Christmas rolls around you can have a nice amount for your holiday shopping.

Another type of savings account featured by some banks link your debit card with your savings account. Every time you make a purchase using your debit card the amount is rounded up to the next dollar and the extra is deposited into your savings account. Some of these banks will even match the amount deposited by a certain percentage.

Savings accounts are great ways to start your children out learning how to be responsible when it comes to money. Open a savings account and let them deposit birthday money or Christmas money for themselves. All the change that gets thrown in a jar every day can become a savings account deposit for them. They will love to go to the bank and deposit their own money and in the process you are teaching them the importance of saving.

Another advantage to a savings account is establishing credit. If you borrow money from your bank using the money in your savings to secure the loan, when you pay the loan back you will have established credit with your bank. This can make it easier to get an unsecured loan should you need it.

It is important to have a savings account and add to it regularly. For that unexpected expense that crops up, having the money to cover without having to borrow the money is great. With everything today being based on credit-worthiness, establishing a good relationship with your bank or credit union can make a big difference when it comes to buying a home or a car.

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Who Else Wants Access To Real Private Banking Solutions?

As a middle aged, middle class, married, business owner, father of 3 (one in college.argh) freedom seeker, I have sought for many years to establish the knowledge, the relationships, and the resources needed to make a lifestyle of financial privacy and freedom available to me and my family. One of the most frustrating and problematic areas to resolve successfully has been that of how to establish a private banking relationship, for someone of moderate means, in todays world of intrusive financial surveillance. Many have found that without doing something shady or under the table or downright illegal, and having to constantly be looking over your shoulder to see who is looking, having a workable private banking solution is, in real life, unattainable.

But I have found something that simply works…

If the above statement does not suitably impress you, perhaps you are not fully aware of what it takes to accomplish this in this day and time. Just because I said it is simple, do not underestimate the value of this gem. If you think its easy to find something that actually works…you have not tried…end of story. The Continental Trust and Credit Union has been the long sought answer to the banking relationships I required.

But before I give you a brief review of its qualities and benefits, let me stress that I am not talking about just going out and opening an offshore bank account. In my opinion, this is not a valid and workable relationship. First, unless you intend on having assets of less than $10,000 USD (I am talking about US citizens here) you are required to report this account; and secondly, anything with your name attached to it in the banking system is discoverable. Just having an account in a supposedly sovereign jurisdiction that will keep your information private is not good enough in todays financial landscape. Suffice it to look at the large number of high rollers who tried to hide a good portion of their assets this way and got in a good deal of trouble. This is not the way to do it; its not what I want, and I will presume its not what you want. Hiding things and privacy are very different arrangements, and you want to be involved in the latter.legitimate, legal, secure, workable financial privacy!

With that being saidlets take a look at this treasure I have found

The Continental Trust And Credit Union is a private savings and loan association domiciled in Stockholm, Sweden and registered in accordance with the Economic Associations Act (1987:667). The activities are regulated by the Swedish Banking Act (2004:297). As a legally designated ‘Ekonomik Foerening’ (EF) it is essentially a Savings and Loan association. Under the law that regulates Continental Trust, provided that it does not solicit to the public and keeps its membership ’small’ by legal definition, an EF is exempt from the standard banking regulatory regime and the only reporting required is an annual tax return filed on net profits.

What this means is that this type of an organization is basically not required to report anything regarding its membership or financial transactions…ever! This is as good as it gets! Now this does not mean you can get away with criminal activity, because if you give governments or courts a legitimate reason to come after you, they can eventually get just about any information they want…but as far as financial privacy, this is off the grid. This is a legitimate type of organization classified by the World Bank as a Non-Bank Financial Institution and recognized as having an important role in a balanced and diversified financial sector. In other words, its not some shady deal that you have to worry about being under the table. All of its officers have had background checks, the books are audited annually by a major, well recognized auditing firm.

Thats the legal stuff…now as far as its usability and benefits…here are the major points:

Full internet access to accounts and built in secure message system
Internet security system twice as good as most major banks (Regarding security; Account data is held not only in secure and stable Linux servers with all the appropriate firewalls, but is then maintained on powerfully encrypted hard drives which are not on the same server as the web page but are instead, held and maintained very privately and secure half a world away. The domicile, banking, secure servers, web servers and administration are all conducted and compartmentalized from different parts of the world making Continental Trust one of the most secure operations of its kind in existence today.)
So designed that even if the webserver were hacked, no information could be accessed
Transfer accts. for general in/out activity by wire transfer or by transfer to linked private International Secured Mastercard Program (no spending limits except for the balance stored)
Credit card, not debit card; much more useful in situations such as car rental etc. Funds accessed by:
merchant purchases
ATM withdrawals
Wire transfer
Bankers draft
Savings Accounts with 9% yearly earnings
CDs yielding from 1%-2.5% monthly (thats rightmonthly; excellent passive investment)
Minimum initial deposit is 2500 euro.
Loans against capital or real estate

My experiences with CTCU have been excellent. The communications with the staff have been prompt and professional. The treatment I receive is as a person, not a number. The one small problem I once experienced was when opening a trading acct. The trading institution would not initially accept the wire transfer because it was sent from another institution than what was named on the account. This is actually how this kind of organization works, its clearing of funds is through a separate bank. The problem was easily resolved by the staff sending the proper documentation showing that the CTCU account was in fact the initiator of the wire transfer. Problem solved!

The other thing you need to know is that access to the Credit Union is by private membership only…you must be a member of the private business group Venture Resources Group. There are other benefits as well to becoming part of Venture Resources Group as they are experienced professionals in the international arena, but I will not go into that here.

The last thing I will point out, is that CTCU is still fairly young and its deposits and ability to do other things in the financial world is comparatively smallbut growing.

So there you have it as best as I can put it. More detailed information is available from the Venture Resources Group and guest login codes to access all the information on the Continental Trust And Credit Union website are available upon request.

I sincerely hope that this article and the information it contains are of great benefit to you and can give you a sense of financial confidence that here, finally, is a solution to what you may have been looking for… as it did for me.

Important Note: A pre-requisite to having this kind of financial privacy is to establish working relationships with properly formed and maintained international entities. For the purposes of this article, I have assumed that you understand this, and have access to this kind of knowledge and relations. If you do not, then allow me to refer you to Venture Resources Group where I know you can get reliable and reasonably priced access to them.

US Banks Are In Trouble! Don’t let their mistakes

US Banks Are In Trouble! Don’t let their mistakes affect your financial situation!

Banks serve a tremendous purpose in this world.

They take in individuals deposits and pool them together to lend them to businesses or individuals who need the capital for a business opportunity they have. This business opportunity could be a company that wants to expand or an individual who wants to buy a home.

The more that people save, the more money that is in the banking system and this increased money leads to more loans and more economic growth. This growth is natural and healthy because people’s savings represent capital they could use in the future for more purchases. Thus, when a business borrows more money and invests that capital to be able to manufacture more goods it is a smart decision because people already have more money saved to spend on these goods.

This becomes a healthy circular formula that is summarized as such: “higher savings” leads to “more loans to businesses” which leads to “more business investment” which leads to “great consumer choices” and of course more jobs are created along the way which further fuels the economy forward.

Well, most of us are aware that the rate of US savings was actually negative last year, meaning we spent more than we made. This is down from saving 7.5% of our salaries only 30 years ago. So we see that this current economic boom has not been built upon by people’s savings.

On the other hand, economies also grow when interest rates are set artificially low as they were set in the US. These low rates spurred the real estate bubble to new, incredible prices never before seen in the US and the world. And the amazing thing is that there is no economic justification for these high home prices outside of the herd mentality thinking that prices will keep going up.

Well, we have passed that point and are now seeing decreasing prices and increasing inventories of homes available for sale.

The problem with banks is that they get caught up in the herd mentality as well, increasing the amount of money they lend for people to buy homes. And not only that, they are doing so in a riskier and riskier fashion using adjustable rate mortgages.

Currently, US commercial banks face incredible risks because over 60% of their total earning assets are mortgage-related!!! Let me repeat that, over 60% of US commercial bank’s assets are mortgage related – a postwar record high.

As a result of the above risks faced by banks any problems happening in the real estate market would have strong negative ramifications for the US banking system. As an example, the Japanese banking system was crippled after the boom of the 1980’s when they concentrated much of their capital in real estate. Japan spent the following 14 years in an economic doldrum and is now just beginning to see the light of day.

Now that interest rates are going up, and will continue going up, people who used adjustable mortgages are feeling the pinch of increasing monthly mortgage payments. As a result, foreclosure rates are up 38% over last year and bank’s bottom lines are feeling this pinch.

Billionaire Warren Buffet recently said that he has been studying recent bank balance sheets and is very concerned about the growing number of defaults on their books.

The point is that even though banks aren’t prepared and well diversified it means that you should be even more so! How to prepare yourself is discussed in detail in the recently issued eReport entitled “Recession – How To Survive and Thrive”.

Where Did My Paycheck Go?

The typical scenario is that you get your paycheck. After you recover from the shock at how little is left after taxes, you proceed to divvy it up among all your outstanding bills, intending to put whatever is left over into your savings.

But there never seems to be anything left over and your savings dont grow.

A better plan would be to pay yourself first. Dont let the money get into your hands.
You might find that you actually begin to grow your savings much quicker this way.

If you work for an employer with a 401K plan, the first thing you should do is to fund it to the max. If you cant afford that, at least put enough in to get the full matching contribution form your employer.

This investment is made before taxes. Your investment is larger and with the employers contribution grows quickly.

Next have a brokerage or mutual fund company debit your banking account monthly. This money should first go into an IRA if you have five years or more to go to retirement, make it a Roth IRA.

Next have a few dollars more be debited to go into a no-load, low cost mutual fund. The younger you are, the more aggressive your choice of fund can be.

After that is done, then figure out how to pay your bills and living expenses. If money is tight, cut back on your living expenses and use the extra money to pay down your debt.

Start with the lowest balance first. Once that debt is paid, take the amount of money you were paying on that debt and add it to the payment on the next lowest balance debt. Continue doing this and you can be totally debt free within 5 to 7 years.

Another version of this method is paying the highest interest rate debt first. The principal is the same, you just see more progress with the first method, although it could be more costly based on how your debt is distributed.

(If you dont believe me, get the premier version of Microsoft Money or Quicken and use the Debt Reduction module. You will be shocked at how much money you will save and how fast you can eliminate debt this way.)

The idea is to scrimp at the expense of your current lifestyle, while leaving your savings to grow and you debt to shrink.

I know many of the people reading this will scream that this is an impossible plan.
But it is quite doable with a little will power and the ability to delay gratification for a while.

The problem is that if you dont do this, your future might turn out to be very bleak.

So Where Is There Fast Money To Be Made?

Fast money is the name of the game in this fast paced society that thrives on instant gratification. If you have to work hard for something and then dont get it right away either, well that is just lame. So gone are the days of having the same job for 30 years and slowly building your fortune in strong solid secure types of growth funds. Hello world series of poker, good buy bond investment and working slowly up the corporate ladder. Hello .com companies and goodbye factory and labor industries.

So is there something wrong with fast money? Not necessarily but you must be careful. Things that come fast tend to leave just as fast. Take a look at the .com fiasco of the late 1990s that was merely a flash in the pan. Sure, there were guys that made fortunes, but they were in the right place at the right time and they either moved on (which is what you have to do most of the time) or found something that they could do that much better than others for longer or that they could protect from competition in legal and complicated ways. The moral of the story is that you have to thrive on a feast or famine type of income.

Another problem with fast money is that you can only save up so much of it at once. Most savings funds have a maximum contribution, and you can only write off so many things then you have to bite the big one and pay lots of taxes for this money that you got all at once. If you spread that money out over years of income (which often times you end up having to do for your own personal budget) than you wouldnt pay nearly as much in taxes and you could put away a relatively larger percentage of your income away for retirement.

Now there are methods of making fast money that certainly arent worth the cost. I am talking mainly about robbing banks, selling drugs, and other wrong-side-of-the-law types of things. There are also many things that arent necessarily illegal but would be a major compromise of you ethics like selling filthy magazines or being involved personally in the entertainment industry.

All that to say that fast money isnt automatically bad but you should think twice before you jump in head first imagining that life is going to be all roses and marshmallows. Either you have to be lucky or better at something than everybody else in the world and able to keep it from being imitated. Otherwise fast money is money that is fleeting and regreattable.

Top 10 Ways to Cut Spending

Do you run out of money before you run out of month? Do you wonder where your money goes each month? Do you struggle to find money to invest for retirement, emergencies and other financial goals? Here are 10 tips to cut your spending and stretch your dollar to the max:

1. Consider dropping your home telephone line. Your cell phone is probably all you really need, and most likely it has free long distance. You could save $30 or more per month by dropping your land line.

2. Cut back on trips to Starbucks or other premium coffee shops. Often called the latte factor, spending several dollars per day on luxuries like premium coffee can really add up. For example, if you spend $4 for a cappuccino five times a week for 50 weeks out of the year (youre on vacation the other two weeks), you would spend $1,000 in a year. Try treating your trip to Starbucks as a treat instead of a habit. Youll save money and probably lose weight too!

3. Pay your mortgage payment bi-weekly instead of monthly. Youll pay less interest and pay off your mortgage faster.

4. Carry cash instead of credit cards. Psychologically its harder to spend cash than it is to use the credit card. Youll spend less and save on interest charges.

5. Use the envelope system for groceries, dining out, entertainment, and other discretionary spending categories. This will help you track how much you spend in these categories as well as prioritizing your spending.

6. Raise the deductible on your homeowners and auto insurance policies. Its not wise to file claims for small losses anyway (insurance companies love to raise rates after you file a claim), so a higher deductible will save you money now and in the future.

7. Buy regular gas instead of premium. Most cars dont need premium gasoline. Also, take public transportation if its available in your area. Take advantage of park and ride and carpooling options.

8. Plan your purchases to avoid impulse buying. Take a list with you to the grocery store and stick with it. Studies show that impulse buying can add $10-50 to your grocery bill ouch!

9. Go to the library instead of the bookstore. If youre an avid reader, give yourself a book budget for books that you will want to keep, and go to the library for everything else.

10. Take a vacation at home. Check out all the local sites and happenings. Youll rediscover your hometown and save on travel and hotel costs.

These are just a handful of ways you can cut spending and stretch your dollars, but if you follow these tips youll discover you have more money at the end of each month to apply to other financial goals, such as saving for college, retirement or just for a rainy day.

Where Can You Find Sources Of Funds For Your Business?

Where Can You Find Sources Of Funds For Your Business?

If you need help to fund your business, there are some things you need to do first, that can make your business more attractive to investors. The followings are an easy way to improve your business image and make it become good-looking in investors eyes.

The most important thing, you should always talk to a qualified business attorney. There are a lot of laws pertaining to how equity capital can be raised from the public, and the laws change often. You need someone who understands not only these laws, but also how to make sure that any business contracts are written to protect you and your business, especially the fine print.

1. Using your savings or credit cards. This is the most common way for entrepreneurs to raise needed business capital. Before choosing this method however, talk with your financial advisor. You want to look at the long-term consequences of using your savings, life insurance or credit cards, especially in the event that your business venture fails, or does not bring in the projected return on investment (ROI). If you do end up financing your project using credit cards, make sure that you shop around first, and find the card that will offer you the best rate and gives you the most “bang” for your buck.

2. Venture Capital and Angel Investors. Before even looking for venture capital, look at your company from an outsider’s point of view. Ask yourself these questions: Does your company have a solid track record? (Most venture capitalists don’t invest in start up companies). Does your company have the potential of becoming very large in the next five to seven years? (People don’t invest in your company out of the goodness of their hearts. They’re looking for a return on their investment — the larger the better.) Does your company own a good percentage of its market, or does it stand to gain a large percentage in the next 12 to 18 months? (Contrary to popular belief, your company doesn’t have to be involved in high tech to attract venture capital). If you can answer yes to the above questions, your next step is to find a venture capital firm whose ideals and goals are in line with yours. Your next step should be to look at your “circle of influence” and see if you know someone who can give you a personal introduction to someone at the venture capital firm. (People invest in people, not just companies.)

3. Taking your company public. Although security laws in the U.S. have made it easier for companies to go public, and offer stock as a way to raise needed funds, this is still probably the most risky choice. It is usually not a recommended option for very new or very small companies. Because of the number of legal issues involved, consulting with a knowledgeable attorney beforehand is vital. There is also a lot of stress involved in running a public company, and a considerable loss of autonomy and control. Before making this choice, be absolutely sure that this is the wisest course of action for your business.

4. Potential or Current Employees. Surprisingly, one of the most common ways (especially for new companies) to raise equity capital, is by inviting your potential or current employees the opportunity to become investors. With this method, not only do you get a really committed workforce, but many equity employees are also willing to accept a below-market wage in the beginning (especially if you do the same). There are other benefits, but this choice is not without its pitfalls as well. Again, before going this route, talk to your business attorney, and put policies into place that plan for potential problems. For example, what do you do if an employee’s work becomes substandard? Or an employee quits and goes into competition with you after learning all of the company secrets? Putting a risk management plan into place and considering all contingencies is your best bet for this option.

5. Getting money from relatives. Yes, it can seem like begging, and it’s a difficult thing to have to swallow your pride. Surprisingly, in a recent survey, almost 30% of entrepreneurs said that they raised all or part of the capital they needed through family members. If this is your choice, make sure that you have your attorney draw up a regular business contract. When approaching family members, talk to them about their investment the same way you would any other outside investor. Tell them about how much money they can make, not about how much you need their help. And make sure that you keep to your end of the agreement.

It is mot crucial which source you decide to use. What important is that you spend time on planning and following the advice of your personal. With this strategy, you will increase the probability of raising the money you need and making the relationship between you and your investors a profitable one.

What You Should Know First, Before Buying Annuities

Americans hear a lot about the shaky outlook for Social Security. In the future, the federal program likely will play a smaller overall role in Americans’ retirement plans.

One way to fill in the gaps of a savings portfolio is to put money in annuities. With an annuity, you pay a premium in exchange for guaranteed income payments at regular intervals. It is most often used for retirement purposes.

The basic types of annuities are equity indexed, fixed rate and variable. The major advantage of annuities is that they all guarantee benefits such as tax-free growth, the ability to pass money directly to heirs or charities and an income stream for life.

Over the past few years, equity-indexed annuities have gained a great deal of popularity. They offer interest or benefits that are linked to an external equity reference – a stock index like the S&P 500, for example. But you get a guaranteed minimum return in exchange for a limited maximum return; that is, you get less upside, but also less downside, to your stock-market investing. Your principal is never at risk.

Fixed-rate annuities, on the other hand, guarantee an interest rate and a declared minimum. They have traditionally been the most popular annuities.

Variable annuities provide more options. They enable you to invest in stock, bonds, mutual funds and money-market instruments.

Reputable financial companies, like TrueYield Financial, want to make sure investors are comfortable when purchasing annuities. Here are some tips for the potential investor.

* Be sure the firm you work with is not limited to offering just one company’s annuities. There are many options available, so work with an agent that can get the one that best fits your needs.

* Understand what you are buying. Talk to your financial adviser or agent about which annuity may be right for your retirement portfolio. Fully understand the annuity contract you are considering.

* Define your goals. Annuities can be used to accomplish a number of financial goals. For example, they can supplement your monthly income or provide emergency funds. Decide which purpose your annuity will serve.

* Ask your agent if you have a “free look” period to review your annuity contract and make sure you have made the right decision.

* Investigate whether or not a bonus annuity is right for you. Bonus annuities credit premium bonuses to allow a retirement saver to make up for stock market loss or to provide an immediate boost to the account value.

Tips On Buying a House after Bankruptcy

Nowadays, people file for bankruptcy for a number of reasons. Some unexpected medical bills, the loss of a job or perhaps overwhelming debt can be some of the reasons for one to file for bankruptcy. One may then start thinking if it is possible to buy a home after bankruptcy. And the answer is in the affirmative. There are many mortgage companies and online lenders out there who offer home loans for even those who have bankruptcy on their credit report.

You will then have to rebuild your credit once your bankruptcy is discharged. You can do this by opening a credit card account to which you will have to make regular payments. Another alternative is to save for a considerable down payment as the larger the cash reserve is, the better the rates you will get! Check on your credit report to make sure that all accounts linked with your bankruptcy are closed.

Make sure that the payment history information is right too as the difference in one late payment can greatly increase your interest rates by a percent or more. Once you improve your credit score through the repayment of the home loan, you can easily take out an equity loan on the home to consolidate any other debt you have since your bankruptcy or to use the extra cash on some business venture.

Before you actually start looking for the right house loan, it is better to look at your budget. Decide how much you can afford as a loan, how much you can make as a down payment, and the monthly payments you can make. With this information, you can decide how much loan to apply for, and the type of financing to opt for.

However, if you intend to live in that house for more than seven years, it is better to find a fixed rate mortgage as it saves money; in the long term. To get an idea of the type of loan to get, you could use a mortgage calculator for estimations.

Once you have an idea of the type of loan you need, you should start investigating the various financing companies. Lenders have little to lose when approving home loans after bankruptcy as the lender feels confident when your home serves as collateral for the loan. There are some lenders who need a certain amount of time to pass before approving for the loan. However, there are also lenders out there who will approve your loan even a day after the bankruptcy has been discharged.

Request free quotes and then investigate their rates. To get these quotes, you need only to furnish basic information, with no need of showing your credit card. This way your credit score is not affected. Once you get all the quotes, compare the APR for the real cost of the loan. It is no point just looking at the interest rates, as they are rather misleading.

Ask if there are any; fees related to the loan as if you plan in refinancing your home, you may have to pay thousands as fees. However, these fees can be negotiated.

Signs That You’re Not Using Your Credit Cards Properly

It is a fact that many people fail to use their credit cards properly. Only when they have gained a credit card balance which is difficult to pay off do they begin seeking help. While it is possible to pay off your balance and get out of debt, it is much easier to look for the warning signals which indicate that your spending is getting out of control.

If you find that you are only able to make the minimum payments each month, this is a sign that you’ve allowed your balance to become so high that it will be difficult to pay off. If any of your credit cards have been maxed out, this is another sign that you need to get your spending limits under control immediately. If you are charging more money on your card than you bring in from your job, this is a bad sign as well. If you are using the money from one credit card to pay off another, this is another bad sign.

If you find that you’re in denial, and don’t want to talk about how much you owe, it is time to seriously look at your financial lifestyle to see what is wrong. People who are having problems with their credit cards may have to resort to using their retirement savings or other funds in order to get out of debt. People who are seriously in debt will begin using their credit cards in order to buy necessities such as food or gasoline.

If the examples above describe you or someone you know, this is a sign that you are in financial trouble. By this time, it is usually very difficult to pay off your credit cards in a reasonable time period. If you feel that there is nothing you can do, it may be best to begin looking at debt consolidation or even bankruptcy. Before you do either, you should first consult a lawyer or credit counseling service to find out which option is best. The first thing you will want to do is stop using your credit cards.

Adding more money to the balance won’t make things easier. While you may not be in a situation which is this serious, if you find that you are buying things on impulse, this is a sign that you shoud stop. If you can’t afford to pay for something in cash, this is a sign that you should avoid using your credit card to pay for it. If you really want it, it may be best to save money. If you feel that saving money for the product will take a long time, you should realize that it will take a long time to pay off your credit card as well.