Thursday, November 1, 2012

The Important Role Of Brokers

Brokers are professionals who play an important role in mediating between a lender and a borrower. Brokers collect personal information about the client for the lender including employment and medical history. They also provide the clients' financial and credit information to the lender.

There are many different types of brokers. Below are the more sought-after brokers:

Mortgage broker: mortgage brokers guide customers through the process of selecting a suitable mortgage package with competitive package offers. They also offer financial advice on mortgage and property. Their job is to find a mortgage package that meets the borrower's needs, and to help the client process and complete their mortgage application form. In the United States, mortgage brokers negotiate over 80% of home loans issued. Banks go through brokers to effectively outsource the job of finding and qualifying borrowers.

Real estate broker: real estate brokers finds buyers for those wanting to sell real estate and finds sellers for those wanting to buy real estate. Real estate brokers help sellers market their property and sell it for the highest possible price; they also help buyers purchase property for the best possible price. Once the broker successfully finds a buyer, the real estate broker receives a commission for his or her service. In the U.S. a 6% commission is usually the case for residential real estate and is usually paid by the seller. This is generally split 50/50 between the listing agent and the selling agent.

Forex broker: forex brokers are firms or individuals, who assist individuals or firms to trade in the foreign exchange market. Forex brokers make money from pip or "spread." A spread is the minimum price increase in currency. For instance, in Euro/US Dollar, a shift from 0.9007 to 0.9008 is one spread. In US Dollar/Japanese Yen, a shift from 127.40 to 127.41 is one spread.

Stockbroker: a stockbroker is a person or company who buys and sells stocks on behalf of another person or company, and tries to match up buyers and sellers. Many people seek the advice of and pay for the services of a stockbroker to help them in making informed decisions about their finances with the knowledgeable and interactive guidance of a licensed stockbroker.

Insurance broker: insurance brokers source contracts of insurance on behalf of their customers. An insurance broker will help you to choose the best to fit your needs.

An investor looking for an investment avenue will benefit greatly from using a broker, as brokers tend to be more up-to-date with trends and happenings in the market. Also as per law the broker has a fiduciary duty to advise the customer in the customer's best interest.


The Human Side: Debt Stress

In all the technical discussion you hear about credit card debt, the best ways to manage it and pay it off and all the rest, one thing goes largely ignored. Credit card debt is extremely stressful, and can have a very negative effect on your life, if you let it. It’s as bad as an addiction, always hanging over you, bringing you down, making it hard to life your life the way you want to. In this article, we’ll take a look at how you can recognise debt stress, and what you can do about it.

The Symptoms of Debt Stress.

There are an awful lot of symptoms that can be caused by stress. Some of the most common ones are: headaches, not being able to sleep, feeling depressed and irritable, and being forgetful and unable to concentrate on what you’re doing. If you’re not sure whether your symptoms are related to stress or something else, you should go and see a doctor.

Who Gets It?

Almost everyone who has debts is stressed about them. Debt is blamed for millions of days off work every year, and is one of the leading causes of suicide – it seems like most times you read about someone who has committed suicide, their name is followed by “who owed [a very large amount] in debts”. Students and graduates are especially vulnerable, as debt is growing amongst them faster than in any other group.

The average adult owes many thousands in debts – and since that’s the average, it means that many people must owe much more. Never forget that you’re not alone, and there’s always someone worse off than you.

How to Deal With It.

Stress caused by debts is often considered to be embarrassing, or shameful. People with lots of debts don’t want to talk about it, even with their family, for fear of upsetting people or looking like a failure. It is very important, though, that you do talk about your problems, as keeping it all inside yourself will make you much, much more stressed. It is especially important that you talk to your partner – they are the number one person who can support you.

The best thing to do then is to find two people: one who can advise you, and one who can be a counsellor. That means a professional who knows what they’re doing in financial matters, as well as a psychologist or psychiatrist, or some other kind of counsellor. Don’t let stigmas put you off – this is about your health.

The next thing to do is to have a good think about how you got that debt to begin with. See if you can find old credit card statements. What did you spend the money on? You need to sit down, work out a budget, cut unnecessary expenses and try to free up as much money as you can to pay back debts. Even if it’ll be a long time before you get everything paid off, knowing that your debt is gradually going downwards can be an excellent cure for debt stress.

Wednesday, October 31, 2012

A Brain Teaser Called Sudoku Puzzles

Sudoku Puzzles

sudoku puzzles are brain teasers that have also been called wordless crossword puzzles. Sudoku Puzzles are often solved through lateral thinking and have been making a large impact all across the world.

Also known as Number Place, Sudoku puzzles are actually logic-based placement puzzles. The object of the game is to enter a numerical digit from 1 through 9 in each cell that is found on a 9 x 9 grid which is sundivided into 3 x 3 subgrids or regions. Several digits are often given in some cells. These are referred as givens. Ideally, at the end of the game, every row, column, and region must contain only one instance of each numeral from 1 through 9. Patience and logic are two qualities needed in order to complete the game.

Number puzzles very much similar to the Sudoku Puzzles have already been in existence and have found publication in many newspapers for over a century now. For instance, Le Siecle, a daily newspaper based in France, featured, as early as 1892, a 9x9 grid with 3x3 sub-squares, but used only double-digit numbers instead of the current 1-9. Another French newspaper, La France, created a puzzle in 1895 that utilized the numbers 1-9 but had no 3x3 sub-squares, but the solution does carry 1-9 in each of the 3 x 3 areas where the sub-squares would be. These puzzles were regular features in several other newspapers, including L'Echo de Paris for about a decade, but it unfortunately disappeared with the advent of the first world war.

Howard Garns, a 74-year-old retired architect and freelance puzzle constructor, was considered the designer of the modern Sudoku Puzzles. His design was first published in 1979 in New York by Dell, through its magazine Dell Pencil Puzzles and Word Games under the heading Number Place. Garns' creation was most likely inspired by the Latin square invention of Leonhard Euler, with a few modifications, basically, with the addition of a regional restriction and the presentation of the game as a puzzle, providing a partially-complete grid and requiring the solver to fill in the empty cells.

Sudoku Puzzles

sudoku puzzles were then taken to Japan by the puzzle publishing company Nikoli. It introduced the game in its paper Monthly Nikoli sometime in April 1984. Nikoli president Maki Kaji gave it the name Sudoku, a name that the company holds trademark rights over; other Japanese publications which featured the puzzle have to settle for alternative names.

In 1989, Sudoku Puzzles entered the video games arena when it was published as DigitHunt on the Commodore 64. It was introduced by Loadstar/Softdisk Publishing. Since then, other computerized versions of the Sudoku Puzzles have been developed. For instance, Yoshimitsu Kanai made several computerized puzzle generator of the game under the name Single Number for the Apple Macintosh in 1995 both in English and in Japanese language; for the Palm (PDA) in 1996; and for Mac OS X in 2005.



Tuesday, October 30, 2012

Secure vs Unsecured Loans

Essentially, there are two types of loans: secured loans and unsecured loans. Secured loans are loans in which you pledge some sort of collateral. The bank may repossess the collateral if you do not repay the loan according to the terms you agreed to when you took out the loan.

Unsecured loans are not backed by any collateral. You borrow money on the strength of your good credit and ability to repay alone.

Revolving vs. Installment Loans

Revolving and installment describe the amount of time you have to pay back a loan. With a revolving loan, you have access to a continuous source of credit, up to your credit limit. You repay only the amount of the credit you use, plus interest on the unpaid amount. You may re-borrow the principal you've repaid. So the loan could remain "open" for years.

With an installment loan, you pay an agreed amount, which includes principal and interest, every month. Each payment reduces the balance of the loan until it is paid off. There is a fixed ending date, known as the term of the loan.

Fixed vs. Adjustable Interest Rate Loans

Fixed interest is just that. You and the bank agree to a certain interest rate and it remains constant throughout the term of the loan. Fixed interest rates give you the stability of always knowing what your payment will be, so you can budget accordingly.

Adjustable or variable rate interest fluctuates. Usually it is pegged to the Prime Rate - the interest the U.S. Treasury charges to its best borrowers. When the Prime Rate is high, such as during a period of inflation, you pay more. When the Prime Rate is low, such as when the government is trying to stimulate the economy during a recession, you save on interest. If you need to borrow during a period of high interest, your payments will drop once the Prime Rate drops.

Types Of Loans

Auto Loans: A secured loan in which the collateral is the vehicle you purchase.

Credit Cards: An unsecured loan which allows you a line of credit against which you may borrow by presenting a plastic card to the merchant from whom you are purchasing the item. You may make more than one purchase, up to your credit limit.

Personal Loans: Secured or unsecured loans made for a fixed purpose.

Mortgages: A secured loan in which the collateral is the real estate you buy.

Home Equity Loan: A secured loan for a fixed amount in which the collateral is your home. In some cases, the interest on this loan may be tax deductible. See your accountant.

Home Equity Credit Line: A secured, revolving line of credit in which the collateral is your home. In some cases, the interest on this loan or a portion of it may be tax deductible. Consult a tax professional or your accountant.

Home Improvement Loan: A secured loan for a lump sum fixed amount in which the collateral is your home. The money may only be spent on home improvements. The interest on this loan may be tax deductible. Consult a tax professional or your accountant. (In some areas of the country, a home improvement loan "secured by the equity in your home" may not be available. In these areas, an unsecured home improvement loan would be available.)

Student Loan (Stafford Loan) A loan for college expenses underwritten by the U.S. Government. The loan is granted to the student. Payment is deferred while the student is still in school.

Personal Line of Credit: Unsecured loans allowing you access to funds up to a fixed credit limit.


LCD Versus Plasma

A new television is high on everyone's wish list. Who wouldn't love a brand new fifty-inch flat screen TV hanging on their living room wall? The makers of televisions are taking advantage of ever-changing technology by creating scientific marvels that can produce clear pictures and lifelike colors in just a few inches of depth. But all of this technology means that buying a TV is harder than ever. These days, the battle between LCD and plasma is on, and choosing sides can be hard. Which one should you purchase?

Why buy a plasma TV?

Plasma TV's have a wide viewing angle. This means that the person sitting to the side of the television can enjoy the same picture quality as the person sitting in front of the television.  With an LCD, the picture quality diminishes if viewed from an angle. If you plan on mounting your TV high on a wall or above a fireplace, a plasma is your best bet, since the picture will remain clear when viewed from the ground. Plasma TV's are known for having high contrast and deep black levels. This is most evident in nighttime scenes in movies and shows; the colors appear lifelike and every detail shows, even in dark scenes. Plasma TV's are also less expensive than LCD's. When the price per inch is compared, plasma TV's are a budget's best friend.

Why buy an LCD?

If you are looking to reduce your monthly electricity bills, you will want to purchase an LCD TV. The savings are minimal - often just a few dollars a month - but will add up over the lifetime of the television. And since an LCD TV uses less electricity, it is the greener option. You might also want to purchase an LCD if someone in your family is an avid video gamer. Video games often feature static images, like the score box or the countdown timer, that do not move. With a plasma TV, these static images can burn into the screen; this burn-in is not a problem with an LCD. You also need to consider the level of light in the room. LCD's are well suited to bright rooms. The screen is less reflective than a plasma, and as such will not show the reflections of windows or lights. Also, LCD's have a brighter picture; under the harsh glow of daylight or lamplight, viewers will still see a clear and bright picture on the screen.

Life Insurance Facts

Life insurance guarantees payment of a given amount to the insured person’s beneficiaries when the policy owner dies.  While many people, especially younger people, don’t necessarily want to take the time to think about something as abstract as dying, this form of insurance is particularly important for parents or other persons with dependents.

The basic structure of most life insurance policies is relatively straight-forward: the policy owner pays a premium every month; upon the owner’s death, the insurer issues payment for the policy amount to the spouse, children, or other beneficiary(-ies) named in the policy.  In practice, as with most forms of insurance, specific policies can be much more complicated than this fairly simple model.

For example, the life insurance policy might have riders, or additional clauses, that pay off in the event of a terminal or critical illness or a permanent disability due to physical or mental causes.  Also, there are different varieties of policies, including term life insurance, whole life coverage, universal coverage, and limited-pay policies.  Understanding the difference between the different types of coverage and picking the appropriate one for your situation can be difficult, and professional advice may be necessary to ensure the correct policy is in place.

Term Life Insurance covers the insured for a certain number of years, after which the coverage typically expires.  Because the policy does not build any cash value, and because it is typically based on a low likelihood of death for the covered person, term insurance premiums are usually relatively low.  However, the length of the term, the amount of coverage (and whether it stays constant or decreases over time), and the premium amount (again, fixed or adjustable over time), will all affect the premium amount.  The lower premium is a primary advantage of term life insurance; a drawback is that, at the end of the term, the still-living insured receives no benefit from the coverage.

Whole Life Insurance is permanent life insurance, which means the policy holder can withdraw money paid in or borrow against the cash value.  Whole life has the advantage of a fixed annual premium and guaranteed death benefits.  Premiums are much higher than term life policies at first, but over the life of the policy the two policy types roughly even out in terms of total cost.  While whole life insurance does build value over time, it may not be as strong as other savings options in terms of the rate of returns.  Also, dividends are not guaranteed with whole life. 

Universal life insurance is similar to whole life, but it offers more flexibility in premiums and may offer stronger returns over time.  It also has a cash account and accrues interest. 

The variety of policies available is intimidating enough to many people.  With dozens of optional riders available, and variations even within individual rider classes, competent professional help is definitely recommended when selecting life insurance.  It should be noted that the life insurance policies offered by many employers, while an attractive benefit, are typically not adequate to meet the needs of the insured’s family in the event of an untimely death.  The total amount of life insurance carried should be enough to pay off any mortgages, car payments, credit card debt, and any other major outstanding debt, leaving the survivors in a solid financial situation.


Low Rate Car Insurance


Everyone likes to save money! That fact is not a secret to anyone. When trying to save money on car insurance, a question that should be considered is, “What will be the cost to me for “saving” money?” This question is meant to help people realize that there is a difference between “price” and “cost”. While Company “A” may offer slightly lower or even much lower premiums than Company “B”, Company “B” may offer some services that you prefer, i.e. a local agent, 24 hour service, online service etc. These services may be worth the extra price to some people, and not for others. Thus, it is shown that services received may out-weigh the price paid.

Another factor to take into consideration is the quality of service you receive from an insurance company. While all auto insurance companies want you to believe that they are as good, or even better than the next company; that is simply not true. There are drastic differences in overall service, claim handling, and personality of individual companies. One company may offer exceptional claim’s service, but perhaps it is very difficult to actually get in touch with the company’s claim’s department; while another company may have terrible claim’s service, but their claim department is easy to reach.

One must ask themselves, “Is it worth paying lower premiums to receive a lower quality of service, or am I willing to pay a bit more to ensure that my service is exceptional?” Don’t misunderstand. Just because a company offers lower premiums, does not necessarily mean that company’s level of service will be lacking. Great service can come at any price.

The most important item to remember while searching for lower premiums is to do your homework. Talk to your family, friends, and co-workers. Ask them where they are insured, and if they are pleased with their insurance company. Remember, not all insurance companies are created equally, for instance, a company that runs completely over the phone or internet will have different costs than a company that employs fulltime agents. That is because the cost of doing business is different for each of those companies. This brings the question again, “What services do I value in my insurance company? Do I want the package Company “A” offers or that of Company “B”?”

Low rate car insurance is in the eye of the beholder. Simply put, different services are worth different amounts to different people. So find the company with the services you desire and let the games begin.