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3 Characteristics Of Wealthy People

Financial Comments Off

Apr 142013

Learning and developing the characteristics of wealthy people is a great way to start fostering your own financial independence and success. Most people who amass an abundance of cash and resources, do so because they have the right personality traits and lifestyle habits. Their ability to remain steadfast in their pursuit of goals and to save what they possess, allows them to enjoy richer, fuller and more stable lives. Following are 3 characteristics of wealthy people that anyone can pursue.

Wealthy People Are Optimists

Of the different characteristics that wealthy people possess, contentment is likely the most important. Although many people believe that money brings happiness, in reality, the opposite is actually true. If you can maintain an upbeat state of mind, you will start becoming more aggressive and proactive in your wealth-building endeavors. Those who are perpetually depressed and downtrodden are often too beaten down to even try.

Able To Avoid Impulse Buys

The typical consumerism mentality does not apply to those who are rich. This is because they do not have as many emotional associations with spending. Buying new products is not directly associated with their happiness and thus, they can commit to purchases from a very realistic and balanced mindset.

Conversely, people who are constantly searching for happiness in things are more prone to buying items that they really don’t need or won’t use. For this and other reasons, in order to start generating real wealth and hanging onto it, you will first have to learn how to define the source of your happiness differently. If you can achieve a positive mindset and feelings of contentment without spending, it will be much easier to invest and save.

Perseverance

Wealthy people get where they are because they are willing and able to persevere. In spite of the unfortunate and all too common belief that rich people have it easier, negative developments and events are inevitable for every living being. The ability to rise above these things and to make changes wherever possible, is how people are able to take their proverbial lemons and turn them into lemonade.

The good news is that these three characteristics are achievable. People make changes in their lives when they first change their attitude. When you are on your way to be financially stable, acquire changes in your attitude and be among those who are successful with their finances. Having the right characteristics mean having the right tools to become wealthy.

The writer, Sam Daniels, loves to blog about credits, loans and finance. For fast loans ,visit his site.

Don’t Let Your Funds “B. Madoff” With

Financial, Investing Comments Off

Mar 242013

Any well-diversified investment portfolio should include common stock. Many investors are wary of the prospect of market volatility and require the services of a professional stockbroker to manage their holdings. Honest stockbrokers can recommend and execute trades to grow a client’s portfolio, making themselves a valuable aspect of the client’s investment strategy. An unethical stockbroker can cause substantial harm to the client and his or her net worth.

Stockbrokers and Fraud

Stockbrokers with few scruples may drift into outright fraud. Stockbrokers are employed to analyze market activity using sophisticated trading algorithms tempered with their own experience. The sound judgment and advice offered by stockbrokers is why their clients employ their services instead of investing with a discount brokerage firm and managing their own accounts. As a result, investors tend to trust the advice offered by their stockbrokers.

In rare cases, this advice can be self-serving. Unethical stockbrokers can act against their clients’ interests in a few ways. Since stockbrokers are paid on commission for the trades that they execute, they may recommend what amounts to an excessive trading volume. This conduct, called “churning,” involves recommending and executing large numbers of trades in a short period of time in order to accrue additional broker fees. This conduct is illegal. Not every investment strategy will involve long-term holdings and timing trades to expected market activity is critical,

Stockbrokers can also facilitate a “pump and dump” scheme. In this situation, a stockbroker advises his or her clients to invest in a stock in which he or she has an interest. This causes a rise in the market price of the stock, resulting in a bubble. The broker or a favored third party cashes out, netting a profit. Since the recommendations were not based upon any sound fundamentals, the bubble eventually collapses.

Identifying Stockbroker Fraud
Trading volume is rarely consistent over the long term. Volume will fluctuate with the client’s acceptable level of risk. A stockbroker for a risk-averse may make rare adjustments to blue-chip holdings and otherwise execute few trades. If the client is willing to accept a higher level of risk, the stockbroker may aggressively pursue markets that are more volatile. This can manifest as increased trading volume, which does not necessarily mean that the stockbroker is acting outside the client’s interests.

However, an unusually high volume of trades involving modest returns or even losses should alarm the investor. In these circumstances, the stockbroker may be churning, resulting in any gains for the investor disappearing in brokerage fees. If an investor is comfortable with a moderate or high level of risk and a moderate or high level of volume, he or she should discuss that with the broker before agreeing to such a trading strategy. If the broker begins executing seemingly random trades with little justification, the investor may be a victim of illegal churning.

Identifying a pump and dump scheme can be difficult as well. Small companies may issue stock that can be traded over-the-counter with a service called OTC Link, which is owned by OTC Markets Group, Inc. These small companies often do not provide financial reports to the Securities and Exchange Commission and are listed on the so-called “pink sheets” due to an inability to meet the listing requirements on a large national exchange. Their share prices are usually very low; many are called “penny stocks” for this reason.

The lack of reporting means that little information is available about some of these companies. Furthermore, the relatively small trading volume makes them extremely susceptible to market volatility, resulting in high profits for someone operating a pump and dump scheme. If a stockbroker recommends a company not listed on a major exchange like the New York Stock Exchange, the client should thoroughly research the company and ask the stockbroker for as much information about the issuer as possible.

Penny stocks are also an area of debate in some financial circles. Many small companies produce legitimate income and present real growth opportunities to investors; however, the volatile and unregulated nature of the market makes them risky investments. If the broker aggressively pushes for large investments in a stock not listed on a major exchange, insists upon immediate action, dissuades the client from alternative investments, and has little information available about the issuer, the client should avoid executing the trade, as the broker may be acting outside the client’s interests.

Reporting Stockbroker Fraud

If a victim feels that he or she was the victim of unlawful conduct by a stockbroker, he or she should contact the Securities and Exchange Commission (SEC). Among other things, the SEC regulates stockbrokers. The SEC has recovered over $2.6 billion in fines and penalties for investors through its enforcement actions and it has the power to bar stockbrokers from working in the financial sector, thus ensuring that a malicious stockbroker will not continue to defraud other investors. The SEC may also suspend trading of particular stock due to violations of securities laws.

Contacting an attorney is also prudent if one believes that he or she is the victim of fraud. Fraudulent misrepresentation is a tort involving the misrepresentation of a material fact in order to induce a detrimental reliance by the victim. If an expert misrepresents an opinion to a layperson, such as with a stockbroker extolling the virtues of a company in which he or she has an interest, his or her conduct may qualify as fraudulent. Injured parties should not count on government agencies bringing enforcement actions against white-collar criminals to compensate them for their injuries; settlements are more common than prison terms and massive fines. An experienced attorney can provide victimized investors with sound, practical advice on moving forward with a civil action.
Kelly Dennie is an investor and freelance writer. Page Perry LLC,stock broker fraud attorneys litigates against those brokers who breach their duties which violate legal rights. A broker is obligated to recommend those stocks that are practically believed to be suitable for a given investor with the investor’s investment objectives in mind. The agent must know and include in their investment strategy for the client the client’s level of risk tolerance, monetary condition and needs, tax status, other investments held, and all other pertinent information. Then, agent must act within legal bounds on behalf of the client.
Photo credit: http://www.flickr.com/photos/truthout/5946047509/

5 Rights You Have When Working with Debt Collectors

Debt, Financial, Jobs, Legal Comments Off

Nov 122012

Many of us have been in collections at some point in our lives. Jobs cuts, decreased hours, or unexpected bills are enough to put many people behind. And according to the Huffington Post, around 30 million Americans are currently dealing with debt collections.

When it comes to dealing with debt collectors, it is important to know what is acceptable and what is not. The Fair Debt Collections Practices Act was put into place to protect you from abusive debt collectors and provide rights to guard you against dishonest acts. There are some rights that are not written that should be provided to everyone.

Right to Privacy

If a debt collector has ever called your job and advised they were calling about a bill or informed somebody at your home that you were past due on an account, they have violated your rights.

You have the right to privacy when it comes to your debt. Debt collectors cannot release information regarding your debt to neighbors, family members, or coworkers. In fact, they are prohibited from speaking to anybody but you or your attorney, unless you have given them permission otherwise.

Protection Regarding Communications

You can avoid being contacted at your job. If you have notified a debt collector you are not allowed to be contacted at your place of employment they can no longer contact you there. To avoid phone calls completely, notify the debt collector in writing.

Mail sent by a debt collector cannot give the impression they are from a federal or state agency. It also cannot be sent by postcard, allowing others to see your personal information.

Freedom from Harassment and Abuse

Having your phone ring continuously can be annoying, especially when the call comes from the same person repeatedly. What’s worse is speaking to a debt collector who is abusive and threatening. The FDCPA was created to protect you from mistreatment at the hands of debt collectors.

Any intent to annoy or harass you by telephone is strictly prohibited. Accusations of harassment are taken very seriously; debt collectors are required to keep detailed records as to when, where, and at what time you were contacted in the event they are accused of harassment.

Right to the Truth

There are many ploys that corrupt debt collectors will use to coerce you into making a payment. They may tell you the amount of your debt has increased but are willing to accept a lesser amount. They sometimes try to threaten you with legal actions they have no intention of taking.

You are entitled to accurate information. You cannot be mislead as to the legal status of any debt or told your violation of any law that is not true. The actual amount owed must be disclosed. Any deceptive act take in an attempt to collect your debt is forbidden.

Right to be Treated Fairly

Unfortunately, there are no laws that require debt collectors to be civil; however, there are some rights that should be provided to you because you are human being. Regardless of your income or paying habits, you should be treated fairly and equally. You should have the right to work with somebody who is willing to work with you.

I have spent years working in the collections industry and can tell you that the most effective debt collectors are the ones that treat people with respect and know how to compromise. If the person that you’re dealing with is not willing to work with you, call back and get somebody else.

Explore Your Rights

The Consumer Financial Protection Bureau recently announced they will begin to regulate debt collectors more closely; however, many of the regulations are similar to those provided in the Fair Debt Collection Practices Act. You will see more oversight into their action, though.

Being in collections is bad enough without having to deal with unreasonable and abusive debt collectors. Credit Repair firm Lexington Law says that knowing your rights from the beginning can empower you to stand up for yourself and avoid being pressured to make quick decisions regarding your finances.

The information provided only includes pieces of the FDCPA. If you do feel that your rights have been violated contact your state’s Attorney General to file a complaint.

This article was written by author and blogger Chase Sagum. Chase covers Financial and Economic topics from a political perspective around the web.

Would I Need an Underwriting Agency?

Financial, Insurance, Planing Comments Off

Nov 122012

Underwriters are those who assess the risk factor of insurance policies so that payment amounts can be set accurately, and at the same time they accept liability for any losses incurred by the insurers. Insurance companies need underwriters, individuals don’t. The term ‘underwriting’ comes historically from when businesses would promise to cover costs incurred from a possible shipwreck in exchange for a non-returnable premium before sailing. They would quite literally sign underneath the captain on the document, hence the term under-writer.

Personal Policy Underwriting

In terms of a personal insurance policy an underwriter is employed to evaluate the risk factor of each individual policy. For these the insurance company itself will probably retain liability for any losses incurred, which is why they need a great underwriting team to make sure there aren’t many losses. The underwriters in this case will be responsible for gathering all the information needed from the client to ensure they quote an accurate premium price for the level of cover.

For example, if Mr Smith takes out a life insurance policy for £10,000 his premiums will vary depending on how likely he is to cash that policy in. In terms of life insurance the underwriters will need extensive medical details including family history, environmental factors and more. They will also look at lifestyle issues, area lived in, amount of travel and all sorts of other factors to basically determine how likely it is that Mr Smith will stay alive throughout the lifespan of his policy.

Business Underwriting

When a corporation needs to raise cash it will generally float shares on the stock exchange, but before it does this it needs some insurance. The corporation therefore approaches a bank and asks them to underwrite the shares. By underwriting in this case the banks are agreeing to buy up any number of shares floated on the market but not sold, usually at a price agreed prior to floatation. In this case, although a similar level of risk assessment will be performed by the bank before agreement as in the above example, they are in effect buying into the business just as if they bought the shares in their own right. In this case the underwriters are assessing the chances of the share prices going down (or up) to determine if they are paying a fair price for them.