Developing An Investment Style That Works For You

Through the years I have noticed great similarities between an individual’s investment style and their personality. I have seen how one’s level of aggressiveness in investments often seems to mirror their occupation or the events they commonly face in their day to day to lives. This can either work for or against the client, given market conditions, but it is important that every investor makes sure their investment style is rational for their current financial situation.

I recently was a guest on a radio show where we were discussing money management for NFL players. It is a shocking fact that over 70% of all NFL players declare bankruptcy within 3 years of leaving the league (Source: USA Today, Yahoo, Sports Illustrated). Why does this happen? I believe many NFL players translate their feelings of invincibility and aggressiveness from the football field to their investment portfolio. Either they believe that their skills will be in demand for many years and choose not to invest, or they tend to invest in very high risk ventures such as restaurants, night clubs, or movies. They often learn the hard way that aggressiveness on the gridiron is often not rewarded the same way in the investment world. On the other side of the coin, I have seen many accountants miss great bull market runs due to being overly conservative. While their fundamentally sound companies may survive a financial storm better, their lack of any growth investments often causes them to miss market upswings.

Working with someone that can balance your portfolio and investment style is key. If you are a “worrywart” who is uncomfortable with any growth investments, you should find other ways to increase your returns (such as writing covered calls against the stable dividend stocks in your portfolio). If you crave action in your portfolio, finding ways to temper your aggressiveness are key to avoiding a financial disaster during a market downswing(such as value real estate investments that generate passive income). Ultimately, the person most responsible for your investment success is you. Being able to step back and take an objective view of your portfolio is critical. Your portfolio should be diverse and able to survive the uncertain hills and valley that lie ahead in the investment world. And although most brokers suggest you limit your risks which is defintely great advice, some exposure in the OTC and penny stock world can definitely be much profitable in the short-term than the regular large-cap stocks in the market.

The key to overall success is to try a little bit of everything in the investment world; see which ones you are most comfortable with; then keep narrowing down your list until you are happy with your risk/reward ratio.

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Facts About High Risk Life Insurance

When it comes to insurance, it may be the case that you have to apply for high risk life insurance. This type of policy is only available to people who have a known serious medical condition, a hazardous occupation or potentially dangerous hobbies. If any of these situations apply to you, then you may find it extremely difficult to get standard life insurance from many insurers.

When you apply for insurance the companies will ask you a range of questions to determine whether you are eligible to be covered by them. If you are a high risk to them then it is unlikely that they will agree to give you a policy. And because you are deemed to be a higher risk, the cost of term life insurance cover will be more for you. You may not consider yourself to be a high risk, particularly if what you do is only a hobby, but it will concern the underwriters enough to refuse the cover.

For example, you may enjoy rock climbing at the weekends. This may not seem high risk but there is more of a chance of you dying than if we were sitting at home watching television. This is all taken into account by the insurance companies. If you are in the army or have a debilitating health condition for instance, then you are classed as high risk too.

There are several specialized insurers that will provide high risk life insurance for people in these situations. It is likely that you will have to pay a higher premium than say, the cost of term life insurance premiums. It may also be the case that the death benefit paid out is lower than that of other types. Essentially, this is the only option open to you if you are to have any life insurance at all.

One of the best ways to find the cheapest high risk life insurance is to use a specialist broker. This way you can send in one medical report and fill in one form. The information is then passed to all of the insurers who provide high risk life insurance. They then provide quotations on how much premium they will ask for.

The non-standard rates that they offer can be lower than you might expect. This is due to the fact that they are a streamlined and specialized, and so can afford to be cost efficient for you. You may also benefit from finding out about impaired risk insurance which can be cheaper than high risk insurance.

Many of these insurers also use up-to-date methods of calculating the risk. Whereas many companies use old mortality tables, some employ the “clinical medical underwriting” philosophy. This basically means that they appreciate that there are advances in medicine and new lifestyle choices which mean people with illnesses are able to live longer.

You will find these specialized insurance brokers and companies who deal with high risk life insurance available online. It is possible to get a quote for the cost of term life insurance with a strong risk element quite quickly. If you are in this situation then you do not need to struggle to source the right insurance for you all on your own.

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Hope For Homeowners Plan – Revamped Bad Credit Home Finance

A bad credit home finance loan could be the ideal way out from problems regarding possible foreclosure. It has been made less strenuous and much better by the government.

A Timely Option

There is no doubt that today is the most appropriate time to explore options regarding bad credit home finance. Many homeowners and consumers are currently facing the stress and anxiety from a pending house foreclosure. This is not surprising because the recent recession has left thousands of people with financial troubles up to this day. If you are among those people who are having difficulty in repaying home loans and who have incurred poor credit scores due to inevitable instances, there is hope.

Bad credit home finance loans have been available across the market for some time now. The products were logically developed, designed, and created to give assistance to borrowers who are finding it hard to repay mortgages and who are at the same time suffering from poor credit status. However, through the years, loan applicants have been complaining about how difficult it is to apply for and qualify for the loans.

Hope For Bad Credit Mortgage Borrowers

The US government has launched a federal mortgage program that is aimed at improving how such loans are provided to needy borrowers. The program is called ‘Hope for Homeowners Plan’ because it literally provides hope for home loan borrowers who are finding it harder these days to repay existing mortgages. The program is in line with the government’s initiative to help save homes.

The scheme is typically aimed at assisting homeowners who now owe lenders more than the actual valuation of their homes. It is also for borrowers who now find it very difficult to pay monthly amortizations due to financial distress. There is no doubt that the program is veiled with all the best and most humanitarian intentions. Through it, home loan borrowers could now avoid getting into defaults or foreclosures even if they are suffering from poor credit standing.

Available options

The special bad credit home finance program provides poor credit home loan borrowers access to a list of imperative options. First, the scheme could help any borrower to secure interest rates that are significantly lower compared to the standard loan rates in the market. It could be surprising how several bad credit home refinance loans take interest rates that are comparably lower than those of the original mortgage.

The refinance program could also help borrowers erase portions of their existing debts. This is to be fair to borrowers who have been diligent in paying amortizations until the onset of the recent financial recession. Lastly, the bad credit home finance program is designed to help borrowers attain loan reduction, and in some cases, loan forgiveness. On top of these all, the loan could also serve as an opportunity to clean up or improve the borrower’s poor credit scores.

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SBA Small Business Loans – Know How They Work

SBA small business loans are offered to start-up businesses by the Small Business Administration or the SBA, in order to provide them financial assistance. The SBA is a United States government agency offering loans to small business owners who do not have the eligibility to avail loans from conventional lending sources. These loans are designed with the sole aim of supporting the establishment and growth of small enterprises to boost the financial condition of the nation. However, it is important to understand how the SBA works in order to benefit from the various loan programs offered by them.

  • The Small Business Administration does not provide loans directly to the borrowers. Instead, they work in partnership with various private-sector lenders, community development organizations and micro-lending institutions to provide these loans. In the lending process, they serve the purpose of setting the terms and conditions and regulating the loans.
  • Small businesses are more in need of loans than the established ones. The simple reason for this being the fact that they are starting a new journey and lack adequate money to make investments. Hence, it would be extremely difficult for them to secure loans at high interest rates. The SBA, unlike banks and other conventional lending sources provides loans to business owners at lower interest rates, making it easier for them to repay the loans.
  • Unlike the banks, the SBA does not check your credit records before providing the loans. This means, you can avail these loans even with poor credit records that include bankruptcy, arrears, insolvency, IVA and more.
  • In order to secure SBA loans, you would need to present important documents to both the SBA and the bank providing the loan. Apart from the necessary documents, you would also need to present at the bank all the SBA requirements such as the SBA loan application, a personal financial statement, a good business plan, 3 years of business financial statements, 3 years of federal business tax returns, information about all owners and detailed information on how the business would benefit from the loan. These are only a few of the documents that might be required by the bank and the SBA. You might need to present other paperwork as well.
  • You can conveniently obtain these loans even if you do not possess properties that can be kept as collateral. SBA provides you assistance in this case by acting as your guarantor. The SBA guarantee also provides the banks the assurance that the loan would be repaid on time.
  • Obtaining SBA small business loans is a quick process. They are almost like ready-made cash that can be secured as soon as you apply for them.
  • These loans are categorized into various types such as the SBA 7(a), SBA 504 and SBA Express and Patriot loans in order to meet the requirements of different businesses. However, it must be kept in mind that all the banks do not offer the same SBA loan programs. The programs might differ and so the loan requirements based on the individual terms and policies of the banks.

Thus, the SBA small business loans can help anyone having a lucrative business idea and the courage to start their own business.

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