วันจันทร์ที่ 25 สิงหาคม พ.ศ. 2551

Controversial Wealth Audit Reveals Over 90 Percent of Us Could End Up Working Forever...Are You One

Results from a new tool developed by UK based
firm, Lean Marketing, confirm a worrying trend.

When it comes to making money,
most of us simply don't have a clue.

The Wealth Audit asks 10 simple questions
to help you ascertain your financial position
and provides instant tips for improving things.

Since launching the tool on 29th July
the response has been tremendous.

Out of a total score of 100 the average
is just 46.9 which suggests people still
need to do quite a lot to be truly free.

The Survey Suggests:

* Almost 90% of Respondents Will Be In Trouble
When It Comes To Retirement If They Don't
Dramatically Change Their Earning, Spending
& Saving Habits.

* 85.6% of Responses By Women Over 40
Indicate That Debt & Lack of Investments
Make Them A Slave To Their Job Or Business

* Women Seem To Be More Interested In Sorting
Out The Problem Than Men However, With 61.5%
Of People Taking The Test Being Female

* Of the People Completing The Survey Almost All
Are In A Position Where Without Earnings
From Their Job They'd Lose Everything They Own

After almost a decade running her own business
Lean Marketing boss, Debbie Jenkins has been searching
for the key to being able to spend her own time as she wishes.

Debbie says, "I'm convinced it boils down to sorting
out your money and so I developed this simple
tool called The Wealth Audit to help people
understand where they are now and where
they're heading with more clarity."

"The test isn't about how much you earn,
but how well you use your money to provide
an income. Freedom comes when you can live
the life you want and pay your way
even if you decided not to work."

The Wealth Audit, while bringing the problem
to light only supports what's already happening.

10 Million people in the UK aren't
saving enough money for their retirement.

In fact 80% of these 10 million aren't
saving anything at all!

There's a pensions crisis looming and the
advice we get from experts is mixed and
often confusing.

So the only constant we can be sure of is that
if we don't take care of our own wealth now
our future isn't going to be too bright.

The Wealth Audit is a Free tool and
nobody gets to see the answers but you.
See how you compare at http://www.wealthaudit.com

"Dangerous" Debbie Jenkins is a marketer, author and
stand-up comedian who helps the owners of small expert
businesses get more success by doing and spending less.
http://www.debbiejenkins.com


[tags]Debbie Jenkins, Wealth Audit, finance, Free, tool,pensions,[/tags]

Concepts of Retirement Planning

Retirement planning is becoming more important than ever before beause of several powerful societal forces. People are living longer after retirement, with fewer defined benefit pension plans, the trend toward multiple job and even career changes, and rising health care costs. Added together this all makes planning for retirement more critical now than ever before.

Regardless of your age, where you work or your life situation, you should start planning for your retirement as soon as you can, immediately if possible. Retirement planning can be argueably more critical than saving for a childs college tuititon. They can borrow for college, you can't borrow for retirement expenses. By beginning to plan now, you can take steps toward the retirement income you want and possibly need.

Retirement planning involves identifying what you want and what you need. Then developing a plan to achieve them, acting on this plan, reviewing and revising your plan as the retirement years approach.

Ask yourself these questions:

1. When do I intend to retire?

2. When I retire, will I start a new part-time career?

3. How long after I retire do I think my money will need to last?

4. How much money will it take to support my household?

5. What do envision my lifestyle during retirement to be like? Days spent golfing, traveling the world? Staying home and puttering?

6. Where will I live when I retire?

When you know where you're going, it's time to figure out how to get there. Through retirement planning, you'll answer questions like this:

1. What do I need to do to take care of my health care needs during retirement years?

2. How much money do I need to save to meet my goals?

3. How should I invest my money to maximize my retirement savings?

4. In what way will my assets, liabilities, expenses and savings change during retirement?

The sooner you start to save and plan for your retirement years, the more prepared you will be. The power of compounding means that with early planning a small investment each year could potentially create a portfolio large enough to meet your retirement needs.

Roger Sorensen

America's Financial Guide can be found at ==>http://www.Slave2Work.com Subscribe to Money Basics via http://www.slave2work.com/ezine.html

Slave2Work.com - Are you ready for financial freedom?


[tags]retirement planning,financial planning,wealth building,retirement tips,retirement finances[/tags]

Christians and Money

Money: perhaps no other topic causes so much misunderstanding for Christians. One reason for this is many people mistakenly think of Jesus as condemning all wealth, including its pursuit.

Without a doubt, while riches can steal one’s heart from God like nothing else, Jesus was never against money or material possessions per se. He enjoyed eating and drinking to the point that some criticized Him as “a glutton and a winebibber” (Matthew 11:19). And in the story of the rich young man, Christ did not condemn this individual for his possessions, which apparently had not deterred him from being pious and keeping God’s commandments (Matthew 19:16-30).

Jesus’ overall attitude toward wealth involved a straightforward principle: when people trust money rather than God and when they fail to give back to God, they miss the mark. From Jesus’ perspective, money itself is not evil. Instead, as the Apostle Paul warned, “…the love of money is a root of all kinds of evil, for which some have strayed from the faith in their greediness, and pierced themselves through with many sorrows” (I Timothy 6:10). Jesus never claimed that rich people do not enter into the Kingdom of God. Instead, He warned that men who trust in money - who believe money, not God, will save them – are potentially jeopardizing their eternal salvation (Mark 10:24-25).

As well, the Gospels contain various reports of wealthy Christians who were good stewards of their material blessings. Joseph of Arimathea was wealthy enough to provide an excellent tomb in which to bury Jesus’ body (Matthew 27:57ญ60). Zacchaeus, the rich tax collector, was saved with all of his family in spite of his wealth (Luke 19:1ญ10). And the Pharisee Nicodemus, one of the chiefs and leaders of the people of Israel, was able to bring expensive aromatic oils to anoint Jesus’ body (John 19:39).

One of the best Biblical passages for understanding Jesus’ views on money is the story of Lazarus and the rich man (Luke 16:19ญ31). As the story goes, a beggar named Lazarus fed on the crumbs that fell from a rich man’s table. When the beggar died, he was carried by angels to heaven. When the rich man died, he ended up in hell and was tormented by its flames. Here the rich man was reminded that, in life, he had enjoyed goods and comfort, while Lazarus had not.

So why did the rich man in the story find himself in hell? There is no indication that this individual was evil, cruel, godless, or irreverent; he was simply rich. The moral of the story, then, is that many wealthy people are condemned, not because of their money, but because of their obsession with money. In Jesus’ own words: “Children, how hard it is for those who trust in riches to enter into the kingdom of God! It is easier for a camel to go through the eye of a needle than for a rich man to enter the kingdom of God” (Mark 10:24-25). Excessive satiety, overabundance, ease, and self-reliance are dangerous for any person. But these are not the actual problem. It is out of the heart of humanity that evil comes (Matthew 15:19). Money and other externals are not evil; it is a person’s attitude toward these things that makes the difference.

The rich man’s mistake was not showing compassion to Lazarus. He lived only to satisfy his own physical appetites, and he enjoyed earthly goods without measure or consideration of others. On the other hand, Lazarus’ virtue was not his physical destitution. He received a heavenly reward because of his repentant attitude and spiritual wealth (Luke 16:29-31). The Apostle Paul put it this way: “Do not be deceived, God is not mocked; for whatever a man sows, that will he also reap. For he who sows to his flesh will of the flesh reap corruption, but he who sows to the Spirit will of the Spirit reap everlasting life” (Galatians 6:7ญ8). Thus, the rich man in this parable was punished for his lack of repentance and disinterest in spiritual matters. He trusted in his own wealth, as in an idol, and did not leave room in his life for God or for helping others.

Jesus’ attitude toward earthly riches is based on the principle of stewardship, or the joyful giving back to God from what He first gave. This principle is beautifully illustrated in Mark’s recounting of the poor widow (Mark 12:41-44). Jesus observed a poor widow donating “two mites” (i.e., the least valuable coinage of the day) into the Temple treasury. He then explained, “… this poor widow has put in more than all those who have given to the treasury” (Mark 12:43). The point here is that it is not the amount one gives that matters to God, but the attitude of the giver and the degree of personal sacrifice.

In conclusion, Jesus taught financial responsibility. In no uncertain terms, Christians are expected to be effective managers of their every blessing from God. Jesus warned all to guard against greed and to acknowledge that true life is judged not by our material possessions, but by our love for God and His children.

George D. Zgourides, M.D., Psy.D is a physician, clinical psychologist, and healthcare chaplain. He and his wife Christie are the authors of several books dealing with various health-related and self-help topics.


[tags]Christians, Christianity, spirituality, religion, money, wealth, finances, material possessions[/tags]

Child Millionaires

How would you like to make sure your kids will be millionaires when they retire?

A couple of years ago the UK Government introduced Stakeholder Pensions as a low cost retirement savings scheme for any one in the country. These were aimed at people with no job or no company scheme. The take up wasn’t great but the schemes remain.

One advantage of the Stakeholder Pension scheme is that anyone can open one and there is no age restriction. This means you can open one for your children.

The extra advantage is that any money that is put into the pension gets a tax rebate from the government.

This means that if you put ฃ78 in the pension scheme, the pension company can claim back another ฃ22 from the Inland Revenue because it’s assumed that tax was originally paid on the money invested. Over a year this would mean an extra 12 lots of ฃ22 making a top up of ฃ264 from the Government. You even get this if you are not a tax payer.

In any one year you can contribute up to ฃ3,600 (including the rebate from the Inland Revenue) so unless you’re a higher rate tax payer that would be ฃ2,808 a year (or ฃ234 a month) with the Inland Revenue topping up the additional ฃ792.

Now if you started putting this much into your son or daughter’s pension from birth until their 18th birthday, this is what it could turn into. If we use a growth rate of 8% (which is low compared to the long term historic rates of shares and property) then at 18 the pension fund would be worth ฃ144,684. If that fund was just left to grow at 8% with no more money being put in, it would grow to ฃ2,764,815 at age 55 and a staggering ฃ6,136,895 at age 65.

If you put in ฃ85 a month from birth to 18 then your son or daughter would have over ฃ1 million in their pension fund at age 55 and even if you only put in just over ฃ38 a month for those first 18 years the fund would grow to ฃ1,000,000 by the time they reached 65.

It may not be much but it’s a start.

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[tags]Financial, money, millionaire, finance, pension, stakeholder, retire[/tags]

Cash, Check, or Plastic What's Best for You

Which form of payment you should use for a purchase depends at least as much on your level of discipline as on your level of income—and don’t forget about security.

Use cash for small purchases, when you’re in a hurry, and if you won’t mind not having a record of the purchase in a bank or credit card statement. You have to feel comfortable carrying cash, too. Many people won’t for safety reasons—flashing a wad of bills in a store could make you a target in the parking lot. On the other hand, many people concerned about identity theft or those recovering from a bankruptcy choose to use cash exclusively.

Use a check if you need a record of the purchase for tax or business purposes, if you don’t want to carry around a bunch of cash, or if you don’t have a credit card because you don’t qualify for one. Of course, you’ll need to write a check to pay bills by mail, and they can come in handy if your grocery store will let you write a check for more than your purchase in order to get cash without going to the bank or ATM.

Use plastic only if you know yourself well enough to not let the balance build up. It’s convenient and fast to use a credit card, especially if you shop by phone, but you need to keep track of what you’re charging so it doesn’t get out of hand. It’s best to pay the full balance every month, for two important reasons: first, in order to build a good credit history (which is invaluable for the remainder of your natural life), and, second, so you’re not financing a lifestyle that you can’t really afford. If you’re concerned about security when shopping online, check to see if your credit card issuer offers virtual credit card numbers—these are card numbers generated at the time you’re ready to make an online purchase and are good only for that transaction. If anyone gets hold of that number, it won’t be valid for any other purchases.

So, take stock of your habits, your level of discipline, and how you feel about identity theft and online security, and you’ll be able to make the best choice for you.

Kathryn Marion is the President of Education for
RealityTM, a company dedicated to helping young
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[tags]personal finance, credit, spending, budgeting, identity theft, paying, discipline, cash, checks[/tags]

Calculating Business Moat

First of all, what is the definition of a business moat? A moat is something that hinders competitors to 'attack' a company's castle. In other words, it is a blockage that deters competitors from imitating a firm's business products. Obviously, investors need to invest in companies with a very wide moat. That way, a wide-moat company can have pricing power, as well as higher profits.

Surely, companies with recognizable brand name will have a moat of some kind, compared to generic brand. If customers are willing to pay a premium for your product, then your business do have a moat. That being said, how do we determine a company's moat for valuation purpose?

There is no definite ways of doing this. But, you can do a simple pricing research for the company in question. For example, if consumers are willing to pay $ 0.10 more for each bottle of Coke over the competition, this is then the result of Coke's business moat. Multiplying the number of bottles sold each year, will gives you the additional revenue due to the firm's business moat. As a matter of fact, this price difference goes straight to the firm's net income.

A lot of people like short-cut. So, perhaps you will like this short-cut way of evaluating business moat. Here is the way I see it. Companies with business moat will have an above average net profit margin. Recall that business moat will give a firm additional profit for each unit sold. This will result in a higher net profit margin. By definition, net profit margin is the percentage of profit with respect to net sales.

Let us look at applicable examples of a business moat. Almost everyone agrees that Wal-Mart Stores Inc. (WMT) has some kind of business moat. It is the biggest retailer in the world with sales totaling $ 250 Billion in a given year. Without further ado, let us find out what Walmart's net profit margin for year 2005. For 2005, Walmart reported total sales of $ 314.8 Billion. Net profit came in at $ 11.230 Billion. Therefore, Walmart has a net profit margin of 3.57%. Is this good? According to retailers.com, average large retail stores has a profit margin of 2% in 2000. From here, we can conclude that Walmart business moat contributes an additional 1.57% of sales or $ 4.94 Billion. Being able to convince your customers to pay $ 4.94 Billion more is no small feat. That, on itself, tells you about the scale of Walmart's business moat. It is no wonder that many Mom and Pop's stores has become victims of Walmart's success.

Please note that business moat do not always involve company's brand. A few other attributes that can produce moat are: patent, location, efficient inventory management and size.

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[tags]Finance, Stock, Investing, Annual Report[/tags]

Building Wealth Through Teamwork

There are several steps you can take to increase your chances of financial success. However, one you should really consider is building your financial success through teamwork.

Generally speaking, it’s very difficult to do everything yourself and be an expert on all topics. If you agree, then the notion of building wealth and making money through teamwork makes perfect sense. In fact, the notion of building a team can be applied several different ways.


  • Couples / Partners - A husband and wife, life partners, or even business partners working off the same financial plan can really accomplish more in a shorter period of time than an individual.
  • Trusted Advisors – Chances are, you are already surrounded by these experts but do not leverage their knowledge to accelerate your financial success. Examples of trusted advisors could be your lawyers, financial advisors, realtors, etc.
    • Mentors – Finding someone who has significant experience in your area can really help you get ahead. Why learn everything the hard way when you can have your own personal coach to help you get ahead faster?

  • Networking – This is one of my personal favorites and an area I wish I had developed sooner. It is also an area I personally have to work harder at since I am more introverted by nature.
  • Friends and Family – While this can be a rich source of experience and advice, I would tap into this area carefully. Not all of your family or friends will necessarily understand or support your financial goals. Also, your friends and family members may not necessarily have the right experience in the areas you are pursuing. If this does not apply to you, even better!
  • Your “Staff” – Have you ever seen a CEO of a Fortune 500 company run the entire show? In your personal life, your staff could be a gardener, the drycleaner, a housecleaner, a nanny or babysitter, automated bill payments, your CPA during tax season, etc. If you have help in the right areas, you can free up to work on achieving your financial plan.

A team can help you work smarter instead of having to work harder. In fact, once you have your team in place, you’ll see the difference almost immediately.

To your wealth and success!

Brion Lau is the Co-Founder of Financial Fitness Pro. The company is dedicated to promoting personal financial education and wealth accumulation.


[tags]wealth, finance, money, investing[/tags]