Realm of Wealth

Economical Way to Lose Weigh

2011-02-22T06:47:00.000-08:00

Nowadays, people are slowly aware of the importance and benefits of keeping a body fit. Women choose to lose weight, so that they have better body shape that can indirectly attract attention of men, while many others lose weight to have a healthy living.

If there is a need for you to lose weight, you could opt for a smarter and more economical way, the HCG diet. It only cost about 69USD in comparison to those who go for injection or slimming programs that might requires you to dig deep. The effect of HCG treatment is as good as those who go for injection. There will not be any fear of pain as well.

If you are not sure about the effectiveness of HCG, here are some basic facts that you should know. HCG is a natural hormone or protein substance that helps burn off unneeded excess fat. It also alter your diet and preference of food in a healthy manner.

For those of you who are afraid of side effects, the HCG drops are homeopathic, so they are safe and have virtually no side effects. If you are in need of a weight loss method and exercise and strict diet doesn't seem to work for you, the smartest and economical way to do so would probably be going for the HCG diet.

How the Middle Class Became the Underclass

2011-02-16T05:15:00.000-08:00

As I was browsing through some Financial articles, I came across this one .... How the Middle Class Became the Underclass. I am sharing the article because I feel that the article really fits the blog theme, in which we are talking on the Realm of Wealth. The article simply reflects the truth of the rich will get richer.

Below is the full content of the article which you can also get it from Yahoo Finance.

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Are you better off than your parents?

Probably not if you're in the middle class.

Incomes for 90% of Americans have been stuck in neutral, and it's not just because of the Great Recession. Middle-class incomes have been stagnant for at least a generation, while the wealthiest tier has surged ahead at lighting speed.

In 1988, the income of an average American taxpayer was $33,400, adjusted for inflation. Fast forward 20 years, and not much had changed: The average income was still just $33,000 in 2008, according to IRS data.

Meanwhile, the richest 1% of Americans -- those making $380,000 or more -- have seen their incomes grow 33% over the last 20 years, leaving average Americans in the dust. Experts point to some of the usual suspects -- like technology and globalization -- to explain the widening gap between the haves and have-nots.

But there's more to the story.

A real drag on the middle class

One major pull on the working man was the decline of unions and other labor protections, said Bill Rodgers, a former chief economist for the Labor Department, now a professor at Rutgers University.

Because of deals struck through collective bargaining, union workers have traditionally earned 15% to 20% more than their non-union counterparts, Rodgers said.

But union membership has declined rapidly over the past 30 years. In 1983, union workers made up about 20% of the workforce. In 2010, they represented less than 12%.

"The erosion of collective bargaining is a key factor to explain why low-wage workers and middle income workers have seen their wages not stay up with inflation," Rodgers said.

Without collective bargaining pushing up wages, especially for blue-collar work -- average incomes have stagnated.

International competition is another factor. While globalization has lifted millions out of poverty in developing nations, it hasn't exactly been a win for middle class workers in the U.S.

Factory workers have seen many of their jobs shipped to other countries where labor is cheaper, putting more downward pressure on American wages.

"As we became more connected to China, that poses the question of whether our wages are being set in Beijing," Rodgers said.

Finding it harder to compete with cheaper manufacturing costs abroad, the U.S. has emerged as primarily a services-producing economy. That trend has created a cultural shift in the job skills American employers are looking for.

Whereas 50 years earlier, there were plenty of blue collar opportunities for workers who had only high school diploma, now employers seek "soft skills" that are typically honed in college, Rodgers said.

A boon for the rich

While average folks were losing ground in the economy, the wealthiest were capitalizing on some of those same factors, and driving an even bigger wedge between themselves and the rest of America.

For example, though globalization has been a drag on labor, it's been a major win for corporations who've used new global channels to reduce costs and boost profits. In addition, new markets around the world have created even greater demand for their products.

"With a global economy, people who have extraordinary skills... whether they be in financial services, technology, entertainment or media, have a bigger place to play and be rewarded from," said Alan Johnson, a Wall Street compensation consultant.

As a result, the disparity between the wages for college educated workers versus high school grads has widened significantly since the 1980s.

In 1980, workers with a high school diploma earned about 71% of what college-educated workers made. In 2010, that number fell to 55%.

Another driver of the rich: The stock market.

The S&P 500 has gained more than 1,300% since 1970. While that's helped the American economy grow, the benefits have been disproportionately reaped by the wealthy.

And public policy of the past few decades has only encouraged the trend.

The 1980s was a period of anti-regulation, presided over by President Reagan, who loosened rules governing banks and thrifts.

A major game changer came during the Clinton era, when barriers between commercial and investment banks, enacted during the post-Depression era, were removed.

In 2000, President Bush also weakened the government's oversight of complex securities, allowing financial innovations to take off, creating unprecedented amounts of wealth both for the overall economy, and for those directly involved in the financial sector.

Tax cuts enacted during the Bush administration and extended under Obama were also a major windfall for the nation's richest.

And as then-Federal Reserve chairman Alan Greenspan brought interest rates down to new lows during the decade, the housing market experienced explosive growth.

"We were all drinking the Kool-aid, Greenspan was tending bar, Bernanke and the academic establishment were supplying the liquor," Deutsche Bank managing director Ajay Kapur wrote in a research report in 2009.

But the story didn't end well. Eventually, it all came crashing down, resulting in the worst economic slump since the Great Depression.

With the unemployment rate still excessively high and the real estate market showing few signs of rebounding, the American middle class is still reeling from the effects of the Great Recession.

Meanwhile, as corporate profits come roaring back and the stock market charges ahead, the wealthiest people continue to eclipse their middle-class counterparts.

"I think it's a terrible dilemma, because what we're obviously heading toward is some kind of class warfare," Johnson said.

Knife Sets For Home

2011-02-11T21:53:00.000-08:00

Starting a family means a whole lot of commitment. One of the major commitment is the house. To have a comfortable life, one should have a comfortable home, equipped with everything that a house will need to have ranging from bed to kitchen appliances. A lot of new couple neglect knife sets, but having complete knife sets mean that the couple can prepare dish and cook at home.

Using Payday Loan To Solve Temporary Credit Crunch Situation

2011-02-10T05:26:00.000-08:00

Most of us at one point of time or another might suffer from credit crunch due to a lot of unforeseen circumstances such as accidents, house broken in and many more. This is not to say that we never have a proper budget to cover when bad things happen, it is just that sometimes bad things happen so drastically until we might stumble upon credit crunch.

Of course, a good way to avoid temporarily credit crunch is to save up to six or even a year of salary, but what if we run into credit crunch situation when just started to work? How are we going to have six months of salary in our savings? Not possible.

During the credit crunch situation, first of all, it is best to get financial help from family and friends, who can provide financial assistance without charging interest. By doing this, we can repay the debt to them in the following month when we have our first paycheck.

However, sometimes, the financial situation is so bad that even with the financial assistance from family and friends, it is still to be resolved and because we just started to work, it is not likely we can get any personal loan or credit cards from any banks due to low credit score.

This is where payday loans might come in handy as one can get payday loans almost instantly and without requirement of any proper documentations and credit score, but do take note payday loans interest are quite high - which is why after we get our first paycheck, the money should go to the payday loan first.

Waterproof Radio

2010-12-10T18:43:00.000-08:00

Some of us rely on radio to sleep our baby, but sometimes it is hard to put the radio around the toddler because he or she will mess around or play with water which will spoil the radio. To avoid the mess, we need to get waterproof radio which can help eliminate the worry of putting the radio next to our baby and then come back only to realized it is broken.

Netfirms Promotion Code

2010-11-26T04:41:00.001-08:00

ipage coupon

Affordable 1TB Hard Disk

2010-11-24T04:51:00.000-08:00

Nowadays hard disk are getting cheaper by the day that is why if you want to build your own desktop, it is better to get at least 1tb hard drive. This is because with medias coming in the HD form, this will takes up a big chunk the the hard disk drive

How The Concept of Insurance Comes About?

2010-11-22T03:25:00.000-08:00

Most of the people has at least Buy Life Insurance to protect themselves and to provide coverage to their family members. The basis of insurance is "guarantee against loss" and the concept first started way back in Babylonian times.

Way back the Babylonian times which is around 2100 B.C., the Code of Hammurabi was the first basic insurance policy. This policy was paid by the traders in the form of a loan to guarantee the safe arrival of their goods by caravan. Of course, caravans faced the same kind of perils our transportation industry faces today – like robbery, bad weather and breakdowns.

As history progressed, the needs for insurance increased. The Phoenicians and the Greeks wanted the same type of insurance with their seaborne commerce. The Romans were the first to have burial insurance – people joined burial clubs which paid funeral expenses to surviving family members. In medieval times, the guilds protected their members from loss by fire and shipwreck, paid ransoms to pirates, and provided respectable burials as well as support in times of sickness and poverty.

Of course, you can do some of your research and realize that the progress of insurance has always been the same...the need for a guarantee for protection.

Today, insurance has become very organize. If you are studying Actuarial science, you will have a lot of headache with figures...something that don't happen in the past where Life Insurance No Exam required for understanding.

For those of you in the United States of America, 1-800-939-0710 is a toll free number where clients that are looking for Term Life Insurance in United States can get a free insurance quote.

Forbes 400: The Richest People in America - Part 2

2010-10-18T05:51:00.000-07:00

This post continues from Forbes 400: The Richest People in America

3. Larry Ellison
Net Worth: $27 billion
Source: Oracle
Residence: Woodside, Calif.
Age: 66

The Oracle chief brazenly chastised Hewlett-Packard for ousting its former head Mark Hurd over his relationship with a marketing contractor. Then he turned around and hired Hurd weeks later to replace Oracle's co-president, Charles Phillips, who resigned at the same time. HP sued Hurd, prompting Ellison to say that HP was making it "virtually impossible" for the 2 companies to do business together. (The two parties recently settled). Oracle, which has acquired 66 companies over the years, figured out a way to turn a profit on its latest big buy, Sun Microsystems, in 2010. One of the highest-paid executives in the country, Ellison has gotten $960 million in compensation in the past 5 fiscal years, mostly from the exercise of stock options; he recently cut his salary to $1. Ellison's fortune is almost entirely tied up in Oracle; he also owns a $580 million stake in Web business-software outfit Netsuite and is one of the largest private land owners in celebrity haven Malibu, Calif. Ellison has 2 houses in the Bay Area: Japanese-style compound in Silicon Valley and bay-view mansion in San Francisco. An avid yachtsman, Ellison spent a decade and over $100 million on his quest for the America's Cup, which he finally won in February. He beat his Swiss rival Ernesto Bertarelli, thanks in part to a trimaran with a rigid main sail longer than a Boeing 747's wingspan. Now he's deciding where to take the next Cup, said to favor backyard, in San Francisco. He intends to give 95% of wealth to charity.

4. Christy Walton & Family
Net Worth: $24 billion
Source: Wal-Mart
Residence: Jackson, Wy.
Age: 55

The widow of John Walton inherited her wealth after the former Green Beret and Vietnam war medic died in an airplane accident near his home in Wyoming 2005. She got an extra bump in her fortune because of her late husband's early investment in First Solar; shares up more than 400% since 2006 initial public offering. But bulk still comes from her shares in Wal-Mart, the retailer founded by her father-in-law Sam Walton and his brother James in 1962. Today Wal-Mart has sales of $405 billion, and employs more than 2.0 million people. The philanthropist supports museums, education and organic gardening.

5. Charles Koch (tie)
Net Worth: $21.5 billion
Source: manufacturing, energy
Residence: Wichita, Kan.
Age: 74

Since inheriting control of the refining business of his dad, Frederick, in 1967, Charles Koch has expanded the Wichita conglomerate more than 100-fold to $100 billion in revenues; it is now the second-largest private company in the U.S. behind Cargill. Biggest deal to date: The $21 billion purchase of building-products maker Georgia Pacific right before the housing market crashed. Charles and brother David bought out sibs Frederick and William for $790 million in 1983. Each year Charles and David reinvest 90% of profits in the business, with enough left to pour hundreds of millions of dollars into their pet charities and causes, a mix of libertarian think tanks and New York City arts institutions. Most recently they angered California Governor Arnold Schwarzenegger by giving $1 million to help efforts to overturn the state's climate change regulations.

5. David Koch (tie)
Net Worth: $21.5 billion
Source: manufacturing, energy
Residence: New York, N.Y.
Age: 70

More gregarious than his brother Charles, David Koch may have made his shrewdest decision in 1983 when he kept his stock in Koch Industries instead of selling out like his brothers William and Frederick, who got about $790 million for their stakes. Since then the company has expanded rapidly and now is worth more than $50 billion; it has interests in pipelines, refineries, Lycra, Dixie Cups. David, who was the Libertarian Party's candidate for vice president in 1980, restricts his political activities now mostly to supporting conservative think tanks and activist organizations. Most recently he and Charles angered California Governor Arnold Schwarzenegger by giving $1 million to help efforts to overturn the state's climate change regulations. From his home base in New York City he runs Koch's chemical technology group. He and his wife, Julia, are also active on the charity circuit and have given or pledged $600 million, mostly to cancer research and the arts since 2000; he sits on 26 nonprofit boards.

7. Jim Walton
Net Worth: $20.1 billion
Source: Wal-Mart
Residence: Bentonville, Ark.
Age: 62

Jim is currently chairman and chief executive of family's Arvest Bank; also chairs local newspaper company Community Publishers. Sam Walton's youngest son has served on Wal-Mart's board of directors since brother John's death in 2005. While Wal-Mart's shares are nearly flat over the past year, the 3 children of the founder collected $1.2 billion in dividends. A former clerk, Sam Walton (d.1992) founded Bentonville store with brother James 1962; today Wal-Mart has sales of $405 billion, employs more than 2.1 million people.

Forbes 400: The Richest People in America

2010-09-23T06:59:00.000-07:00

So, do you know who are the richest people in the United States of America? Well, the top two people in the America seems to remain in their position. They are Bill Gates and Warren Buffett. Both of them are still on top despite being generous.

Read below for full story that I get from the Forbes 400: The Richest People in America from Yahoo Finance. Since the article is too long, I'll share it in this blog by separating the articles into few parts.

It has been a year of reclamation for America's richest. The total worth of the Forbes 400 was up 8% to $1.37 trillion, well out-earning the 1% rise in the S&P over the same period of time. More than half (217) are richer than they were a year ago.

The headline number tells a partial story. Just over one-third of the 400 failed to add to their fortunes or lost ground. Still far above us is the record of $1.57 trillion in total net worth set in 2008.

But the very top of the list gained, as good friends Bill Gates and Warren Buffett were up $4 billion and $5 billion, respectively. They, too, are short of their personal highs. Gates, who in March lost his title of world's richest person to Mexico's Carlos Slim, is still America's richest person — for the 17th year in a row.

Las Vegas gaming tycoon Sheldon Adelson was the kid, or "comeback adolescent," as he calls himself. "I'm too old to be a kid," he told Forbes. The largest shareholder of Las Vegas Sands (NYSE: LVS - News) is the year's biggest dollar gainer. His casino's shares are up 1,500% since their 2009 low. Adelson is now the 13th richest American, worth $14.7 billion, up $5.7 billion from last year — though nowhere close to his $28 billion net worth in 2007, when he ranked third among Americans.

The biggest gainer in percentage terms is Mark Zuckerberg, who more than tripled his fortune to $6.9 billion. The more conservative private valuation of Facebook is now around $23 billion; illiquid shares in the secondary markets point to an even richer valuation. Two of his cofounders are in the ranks for the first time: Eduardo Saverin and Dustin Moskovitz, both classmates of Zuckerberg's at Harvard. Moskovitz, who is eight days younger than Zuckerberg, now has bragging rights as the world's youngest billionaire. The Facebook cofounders are among 16 newcomers on this year's list. Other notables include Dean Metropoulos, whose private equity firm recently bought Pabst Brewing; Terrence Pegula, who sold his Pennsylvania mining outfit to Royal Dutch Shell (Nasdaq: RDSA - News) for $4.7 billion in May; and Elaine Wynn, whose divorce from casino magnate Steve Wynn was finalized in January.

The price of admission to the 400 is back up to the $1 billion mark. Last year it was $950 million, the first time since 2005 it had fallen below 10 figures. The most notable of the 18 returnees is Ford Motor (NYSE: F - News) scion William Ford Sr., who made the cut after a four-year absence as the automobile company's stock hit five-year highs.

Thirty-four people fell from the ranks, a number of whom just barely missed the cut. At least two saw their fortunes unravel. Tamir Sapir, a former taxi driver who built a real estate fortune, owes at least $340 million for nonpayment of loans, his creditors say. He may be suffering from deteriorating mental condition. Hedge fund chief Raj Rajaratnam faces insider trading charges.

Nine of the drop-offs fell off the list permanently. John Kluge passed away this summer. He was America's richest man from 1989 to 1991, before losing the title to Bill Gates. Yankees owner George Steinbrenner died in July just after his 80th birthday.

Our estimates of public fortunes are a snapshot of wealth on Aug. 25, 2010, the date we locked in net worths and rankings. We have not included dispersed fortunes (as in those of the Du Ponts) when individual net worths are below our minimum. But we do include wealth belonging to a member's immediate relatives if the wealth can ultimately be traced to one living individual; in that case, "& family" indicates that the number shown includes money belonging to more than one person.

1. Bill Gates
Net Worth: $54 billion
Source: Microsoft
Residence: Medina, Wash.
Age: 54

The software king is not the world's richest man but that's because he is the most generous person on the planet: To date he has cut checks totaling $28 billion. (Even so, Gates is still America's richest person, topping The Forbes 400 for the 17th straight year.) Most of his donations have passed through his Bill & Melinda Gates Foundation, which now has a $33 billion endowment, including contributions from his buddy and bridge partner Warren Buffett. The foundation has given money for the prevention of 5 million deaths from AIDS, malaria and tuberculosis; now it's undertaking the eradication of polio. It is also fighting hunger by helping 400,000 farmers in Asia and Africa with rice varieties that resist cold, flooding and drought, and by giving 100,000 farmers on those two continents access to small-scale and cheap irrigation systems. As the foundation accelerates, Microsoft is stuck in neutral. Gates' stake in the company he cofounded is now worth $16 billion; its stock is flat over the last year, despite the release of a new Windows operating system and heavy investments in online advertising and games. Gates regularly sells shares in the software giant, pouring proceeds into investment outfit Cascade, which accounts for 70% of his wealth. Other investments include trash-collector Republic Services, investment firm Gamco, AutoNation and an inflation-hedging fund.

2. Warren Buffett
Net Worth: $45 billion
Source: Berkshire Hathaway
Residence: Omaha, Neb.
Age: 80

Along with bridge partner Bill Gates, the Oracle of Omaha is coaxing America's richest to pledge half their fortunes to charity. "You keep making the list, I'll keep milking it." Buffett plans to give away 99% of his wealth to the Bill & Melinda Gates Foundation and the Buffett children, and it all has to be spent 10 years after he's gone. "Too often a vast collection of possessions ends up possessing its owner. The asset I most value, aside from health, is interesting, diverse and long-standing friends." Buffett's Berkshire Hathaway continues its capital stewardship excellence, beating the S&P by 15 percentage points over the past 12 months. Secret to success: emotional stability. "When you come to a conclusion, you have to really not care what other people say." Buffett faked breathing problems when he was 12 so he could move back to Omaha from Washington, D.C., where his father was a freshman congressman. He had read every book about investing in stocks in the Omaha Public Library by the time he was 12. He met value investor Benjamin Graham at Columbia; bought textile firm Berkshire Hathaway 1965, and transformed it into massive holding company: food, insurance, utilities, industrials. Buffett acquired railroad giant Burlington Northern Santa Fe for $26 billion in 2009.

Couponus Roll

2010-09-11T08:03:00.000-07:00

Added coupons in the blogroll for PPP

Buying Handheld TV

2010-08-22T06:28:00.000-07:00

With everything going mobile, one might be tempted to get a handheld TV as well especially among the movie lovers. While others might be curious that why he or she should be getting a handheld TV instead of more advanced portable media players like Ipod, well, you pay what you get. Handheld TV is made for TV lovers who plan to install the TV in their cars, or bring their TV set around to watch their favourite TV series and portable media players like Ipod requires one to download the media files from website instead.

Are You a Wealth Accumulator?

2010-08-05T07:49:00.000-07:00

There is this book called The Millionaire Next Door by Thomas J. Stanley and William D. Danko regarding the process of every one to accumulate great wealth. Don't get me wrong, this book is not giving the tips on how to get rich in 5 minutes, but rather the slow and steady process of successfully accumulating wealth.

According to the book, there is a formula to calculate or benchmark whether a person has successfully accumulate wealth according to their age and income and it summarizes into the following:-

Multiply your age by your gross annual income from all sources except inheritances. Divide this by ten. This, less any inherited wealth is what your net worth (excluding home equity) should be.

There are few classification of wealth accumulator and is as follow:-

A prodigious accumulator of wealth (called a PAW throughout the book) has a net worth twice as high as this formula.
An under accumulator of wealth (UAW) has a net worth under half of this.
An average accumulator of wealth (AAW) who has the net worth between half the formula and twice the formula.

The formula actually quite make sense because a doctor might be making a whole lot more money than a janitor, yet because the doctor spend excessively, he or she is actually a UAW while the janitor might be AAW or UAW because of his or her habit of accumulating wealth. Age also comes into play in determining whether a person is a wealth accumulator or not because the older you get, you will eventually have higher net worth.

Let's look at the following scenario:-
A and B is earning 50K and 100K respectively and both of them are of same age at 30 years old.

According to the formula,
A = 50, 000 x 30 / 10 = 150, 000
B = 100, 000 x 30 / 10 = 300, 000

Both A and B are AAW if both of them have 150K and 300K in net worth respectively. But should A has net worth the same as an AAW B which is 300K, then A is a PAW. On the other hand, should B manage to accumulate net worth as an AAW A which is 150K, then he or she is UAW.

Commodity Watch

2010-06-06T07:12:00.000-07:00

Oil, Gas, and Gold Prices by Cannon Tradinggreat free widgetsWidgetbox

Information on Light, Sweet Crude Oil Futures Trading

Crude oil began futures trading on the NYMEX in 1983 and is the most heavily traded commodity.
Trading unit: Crude Oil Futures trade in units of 1,000 U.S. barrels (42,000 gallons). Options: One NYMEX Division light, sweet crude oil futures contract
.

Trading Months: Crude Oil Futures trade 30 consecutive months plus long-dated futures initially listed 36, 48, 60, 72, and 84 months prior to delivery. Additionally, trading can be executed at an average differential to the previous day’s settlement prices for periods of two to 30 consecutive months in a single transaction. These calendar strips are executed during open outcry trading hours. Options: 12 consecutive months, plus three long-dated options at 18, 24, and 36 months out on a June/December cycle.

Price Quotation
Crude Oil Futures are quoted in dollars and cents per barrel.

Minimum Price Fluctuation: $0.01 (1¢) per barrel ($10 per contract).

Maximum Daily Price Fluctuation
Futures: Initial limits of $3.00 per barrel are in place in all but the first two months and rise to $6.00 per barrel if the previous day's settlement price in any back month is at the $3.00 limit. In the event of a $7.50 per barrel move in either of the first two contract months, limits on all months become $7.50 per barrel from the limit in place in the direction of the move following a one-hour trading halt.

Options: No price limits.

Last Trading Day
Crude Oil Futures: Trading terminates at the close of business on the third business day prior to the 25th calendar day of the month preceding the delivery month. If the 25th calendar day of the month is a non-business day, trading shall cease on the third business day prior to the last business day preceding the 25th calendar day.
Options: Trading ends three business days before the underlying futures contract.

Delivery
F.O.B. seller's facility, Cushing, Oklahoma, at any pipeline or storage facility with pipeline access to TEPPCO, Cushing storage, or Equilon Pipeline Co., by in-tank transfer, in-line transfer, book-out, or inter-facility transfer (pumpover).

Delivery Period
All deliveries are rateable over the course of the month and must be initiated on or after the first calendar day and completed by the last calendar day of the delivery month.

Alternate Delivery Procedure (ADP)
An Alternate Delivery Procedure is available to buyers and sellers who have been matched by the Exchange subsequent to the termination of trading in the spot month contract. If buyer and seller agree to consummate delivery under terms different from those prescribed in the contract specifications, they may proceed on that basis after submitting a notice of their intention to the Exchange.

Exchange of Futures for, or in Connection with, Physicals (EFP)
The commercial buyer or seller may exchange a futures position for a physical position of equal quantity by submitting a notice to the Exchange. EFPs may be used to either initiate or liquidate a futures position.

Deliverable Grades
Specific domestic crudes with 0.42% sulfur by weight or less, not less than 37° API gravity nor more than 42° API gravity. The following domestic crude streams are deliverable: West Texas Intermediate, Low Sweet Mix, New Mexican Sweet, North Texas Sweet, Oklahoma Sweet, South Texas Sweet.

Specific foreign crudes of not less than 34° API nor more than 42° API. The following foreign streams are deliverable: U.K. Brent and Forties, and Norwegian Oseberg Blend, for which the seller shall receive a 30¢-per-barrel discount below the final settlement price; Nigerian Bonny Light and Colombian Cusiana are delivered at 15¢ premiums; and Nigerian Qua Iboe is delivered at a 5¢ premium.

Inspection
Inspection shall be conducted in accordance with pipeline practices. A buyer or seller may appoint an inspector to inspect the quality of oil delivered. However, the buyer or seller who requests the inspection will bear its costs and will notify the other party of the transaction that the inspection will occur.

Position Limits
Any one month/all months: 20,000 net futures, but not to exceed 1,000 in the last three days of trading in the spot month.

Margin Requirements
Margins are required for open futures or short options positions. The margin requirement for an options purchaser will never exceed the premium.

Trading Symbol
Futures: CL
Options: LO

Are You Saving Enough Money?

2010-05-22T06:42:00.000-07:00

The poll on "How much do you save from your salary?" concluded in the beginning of the year, however I forgot to blog something on the result. This is because I tends to forget this blog when I blog as it usually get the least attention from me.

The result from the poll "How much do you save from your salary?" really surprised me. Before this, I was having discussion on a forum regarding how much money that some people are saving from their salary and there are just too many forum-ers are replying that they save close to none of their monthly salary and their savings are just from the EPF deduction. It looks like forum-ers are savings close to 0%, while my blog readers are saving more than 20%, though I am not sure whether the 20% is included in the EPF deduction or not.

However, even if include the EPF deduction, it means that there are about 50% blog readers who are savings according to the rule of thumb, which is 10%, while only 10% who are saving less than the rule of thumb.

According to the rule of thumb, it is best to save 10% from your income and to save up to 6 months of expenses (if possible salary) before going venturing to any investment. This is because we will not know what is going to happen next. We might be retrenched and out of jobs for quite some time, but six months of savings should be sufficient to cover all the expenses after retrenched and while we are looking for a new job.

As for myself, I do follow part of the rule of thumb recommended by the professional financial adviser but not all. However, I will make sure that I set my budget and monthly spending guidelines so that I will always allocate up to 9% from my monthly income as my savings. When it comes to bonus month, I will try to save up most of the bonus income. So, it comes to about 10% annually.

More savings not necessarily translate to better retirement life, but not having any savings will definitely leads to a difficult retirement life.

So, are you saving enough money?

Mai Hime Mezame

2010-05-01T23:23:00.000-07:00

My "Hime" Mezame song

2010-05-01T23:16:00.000-07:00

Setting A Home Office at Lower Cost

2010-04-30T08:47:00.000-07:00

If you are planning to setup a home office, getting network storage would be a good idea for everyone to share files and folders. Why do we buy network storage instead of upgrading the server? Network storage can increase the network storage capacity without additional cost of buying another server, which would cost about 5 to 10 times more. A home office with low-end server and network storage will be more than sufficient to keep the business operating.

Carlos Slim is the world's richest

2010-03-11T05:48:00.000-08:00

NEW YORK (Reuters) - Mexican tycoon Carlos Slim is the world's richest person, knocking Microsoft founder Bill Gates into second spot, as the wealth of the world's billionaires grew by 50 percent over the last year, Forbes magazine said on Wednesday.
Mexican tycoon Carlos Slim speaks during the Reuters Latin America Summit in Mexico City in this March 22, 2007 file photo. (REUTERS/Andrew Winning/Files)

It is only the second time since 1995 that Gates has lost the crown, the magazine said, estimating Slim's net worth at $53.5 billion, compared to Gates's $53 billion fortune, while investor Warren Buffett came in at No. 3 with $47 billion.

The trio regained $41.5 billion of the $68 billion they had lost the previous year, Forbes said.

The number of billionaires around the world has nearly recovered in 2010 after dropping by a third last year during the global financial crisis. There are now 1,011 billionaires, compared with 793 last year and 1,125 in 2008.

The net wealth of those billionaires grew to $3.6 trillion from $2.4 trillion last year, but is still down from 2008's $4.4 trillion, according to the 24th annual Forbes list, which took a snapshot of wealth on Feb. 12 to compile its ranking.

The average billionaire is now worth $3.5 billion, up $500 million from last year. And the number of women on the list rose to 89 from 72 last year.

"The global economy is recovering and it's reflected in what you see in the list this year," Steve Forbes, chief executive of Forbes, told a news conference. "Financial markets have also made an even more impressive comeback from the lows of just about a year ago, particularly in emerging markets."

"Asia is leading the comeback," Forbes said.

The number of billionaires in the Asia-Pacific region grew by 80 percent to 234 and their net worth almost doubled to $729 billion, which the Forbes ranking attributed to the area's "swelling stock markets and several large public offerings during the past year."

Two Indians round out the top five richest people in the world -- Mukesh Ambani, with a petrochemicals, oil and gas fortune of $29 billion, and steel magnate Lakshmi Mittal, who is valued at $28.7 billion.

The biggest gainer on the list was Brazilian mining magnate Eike Batista, 53, with $27 billion, up from $7.5 billion. He made his riches through the initial public offerings of several companies. He is planning to take his shipbuilding and oil services firm OSX public next week in an expected $5.6 billion offering, which would be Brazil's second biggest ever IPO.

UNITED STATES, EUROPE LAGGING

Of the 97 billionaires making their debut on the Forbes list, 62 are from Asia, while for the first time China is now home to the most billionaires outside of the United States.

"The United States still dominates, but the United States is lagging," Forbes said. "It is not doing as well as the rest of the world in coming back."

"The global boom that we experienced from the early 80s ... which was temporarily derailed in 2007, now looks like it is beginning to get back on track. But Asia and a handful of others are surging, relatively the United States and Western Europe are lagging."

The top homes to billionaires are New York with 60 and Moscow with 50, followed by London with 32.

There are 55 countries represented on the Forbes list with billionaires from Pakistan -- clothing exporter Mian Muhammad Mansha -- and Finland -- manufacturing mogul Antti Herlin -- making an appearance for the first time, while Turkey, Russia and India regained billionaire numbers lost last year.

There were 164 billionaires returning to the list in 2010, including Facebook founder Mark Zuckerberg, who is also the world's youngest with a $4 billion fortune at the age of 25.

The second-youngest self-made billionaire is Japan's Yoshikazu Tanaka, 33, who made $1.4 billion from social networking firm Gree. The oldest is 99-year-old Walter Haefner from Switzerland who has $3.3 billion.

The sixth-richest man is Oracle Corp Chief Executive Larry Ellison with $28 billion. At No. 7 is the richest man in Europe, Bernard Arnault, CEO of luxury goods group LVMH, who has a fortune of $27.5 billion.

"The bling is back," said Forbes Senior Editor Luisa Kroll of Arnault's wealth.

Rounding out the top 10 is Spanish clothing retailer Inditex founder Amancio Ortega with $25 billion and German supermarket king Karl Albrecht, who is valued at $23.5 billion.

While Gates's and Buffett's fortunes far exceed most others in the top 10, Forbes Senior Editor Matthew Miller said their fortunes would be far greater if they hadn't given away a lot of their money.

"They would be far richer today if it wasn't for their tremendous philanthropy," he said. "Buffett would be worth at least $55 billion ... and Gates' net worth would exceed $80 billion had it not been for his philanthropy."

The Forbes ranking of the world's billionaires can be seen www.forbes.com/billionaires.

(Additional reporting by Elzio Barreto; Editing by Mark Egan and Eric Walsh)

Copyright © 2008 Reuters

Happy Lunar New Year

2010-02-14T05:18:00.000-08:00

Wishing everyone a Happy and Prosperous Lunar New Year.

For those who don't know, Lunar New Year is more commonly known as Chinese New Year.

Use your imagination

2010-01-23T10:39:00.000-08:00

Sometimes it is probably easy to be talking about making more wealth and money. And we have people doing analytical studies on the economy. Investors and other financial consultant have been good in doing their job. Providing statistical data and analysis so as to see the potential growth of a company.

However, my question today here is that all it takes to be making a difference. To be way ahead is not just about being hardworking and getting the right facts, datas and knowledge. No doubt all these are important but what so many modern people lack of today is simply this, IMAGINATION. We were so caught up with our hectic schedules that we leave no room for iMAge. For an image of what the future would hold, of what the NEXT HiT would be.

Look at all these great men, Thomas Edison, Albert Einstein, Isaac Newton, Leonardo Da Vinci, Aristotle, Galileo Galilei, Warren Buffet, Bill Gates, Tony Fernandes (Airasia boss), Steve Jobs, Sergey Brin and Larry Page as well as many others. All these people have been able to capture an IMAGE, an IMAGINATION of what would be their hit. Of what that specialty would be and they succeed in it.

I decided to continue with my Idle Page blog, simply because I felt the need to be writing down thoughts, image and emotions that hit me everyday so that as I reflect on these, I might be able to dream a DREAM as well.

I talked about FINDING VOICES by the end of year 2009 in seeker and each day I found that challenge even more thrilling and crazy but yet I sensed that this is where the FUTURE holds...
So, here is my first post in 2010...use your IMAGINATION: Imagine Wealth, Imagine Future, Imagine HOPE, Imagine because in it is your STRONGEST WEAPON and SUCCESS STORY is only a step away from that.

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2010-01-01T07:08:00.000-08:00

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Bill Gates vs Steve Jobs

2009-11-23T18:54:00.000-08:00

BILL GATES VS STEVE JOBS

It is an ironic when we mentioned these names. While both of name are famous for the "Information Revolution", these are also the two names that hardly see eye to eye to one another.

One of them are seen as the devil who is only interested in making money out of the manipulation of technology. Bill Gates is the villain to many of the techno geek and given the failed product of Vista, it is hard to deny that. However, let us not forget Bill Gates is also the man who give us Windows 3.11, Windows 95, Windows XP, and of course now Windows 7. But for most people, Bill Gates is one man who only interested in money, money, money!!

On the other hand, Steve Jobs gained the reputation more like a saint in this industry. Whenever people talk about Steve Jobs, people will talk about his passion for art, design and even perfection. While no one could deny the effort Jobs put on Apple's product, is it really true that Gates is the villain while Jobs is the saint? This almost saintly reputation is magnified given that there are some cult like Apple fanatics out there.

However, I find it difficult to accept this perception given the fact that while this same Gates who is acquiring billions of wealth in the universe, it is also this same Gates that is giving away his fortune with the same gusto that he is earning it. This is the man who has been throwing billions of dollars to help solve global health issues. Not only that, Bill Gates is the kind of person who would speak up for what he believes in....
He has also spoken out on major policy issues, for example, by opposing proposals to cut back the inheritance tax.
He also speaks up in support for the organizations and institutions that he believes in.

What about Steve Jobs? Ranking as the 194th richest person in the world, his name is not even on the list of gifts of 1 million or more compiled by Indiana University's Center on Philanthropy.
Jobs' wife is also absent from these philanthropic lists, although she has made dozens of political donations totaling tens of thousands of dollars to the Democrats, according to the Open Secrets database. Of course, the two of them might put as anonymous in their donations given their preferred secret lifestyle. However, as a man who has so much influence on not only the working class but the generation of youth, Steve Jobs should at least speak up for some good causes but as far as anyone could remember, Jobs only talks about Apple and "What's NEXT" for it. He might be awarded the CEO of the decade by FORTUNE but he definitely isn't part of any change for the greater good.

Of course, it is hard to say who is the villain and who is the saint, but let us remember: Great wealth alone doesn't make a great man.
Gates might have acquired billions of dollars but one thing he know he must do, is to contribute to the community and that probably is the one reason that I will put Bill Gates as the better man than Steve Jobs.

Forget about the failure of Windows Mobile, forget about the ugly interface of Windows in comparison to Apple...all those are important but if the realm of wealth is not shared among our community, what good does it bring? Let us ponder about this the next time we thought of accusing Bill Gates as a selfish cutthroat capitalist.

What does the 1Malaysia 2010 Budget has in store for you? - Part 2

2009-11-07T04:51:00.000-08:00

This post is continue from where I left last week on What does the 1Malaysia 2010 Budget has in store for you - Part 1.

The last post on 2010 Malaysia Budget is regarding on how the government will implement the fuel subsidy which in my opinion, will not be able to reduce the burden of the poor, which was the actual purpose of the subsidy.

This time, I will discuss the other "goodies" in 2010 Malaysia Budget like the following:-

The maximum income tax rate for individuals to be reduced to 26% from assessment year 2010. Personal relief increased to RM9,000.
Personal relief for EPF and life insurance schemes to be increased to RM7,000.
Taxpayers will get tax relief on broadband subscription fee of up to RM500 from 2010 to 2012.
To promote prudent spending, a service charge of RM50 a year to be imposed on each principal credit card and charge card; and RM25 a year on each supplementary card, effective from Jan 1, 2010.

The personal relief will be increased to RM9,000 where almost everyone will be benefited from this. This is actually a RM1,000 or 12.5% increase from the previous RM8,000. The maximum income tax rate for individuals will be reduced to 26%. Only those with getting salary Rm10,000 above monthly will be in this tax bracket, so most people will not be able to enjoy this "goodie".

I do agree that relief for EPF and life insurance scheme to be increase, in this case, a RM1,000 increase. So, a relief for this portion is always welcome, but RM1,000 increase is still not much, our government can still do better than this.

Government introducing the broadband relief of RM500, translate to about RM40 per month, where one cannot even subscribe to the cheapest TMNet Streamyx Combo Package of 384/128 which cost RM60 per month. This mean that to entitle to this "goodie" everyone must top up additional RM20 per month.

Finally, the credit card tax of RM50 per card. This one I found most ridiculous of all. How can taxing on each credit card will promote prudent spending? IF it is for prudent spending, why not tax only for after the 2nd or 3rd credit/charge cards? Those with problem managing finance previously and fill with debt will have extra burden.

Besides that, with this tax, some of us will eventually cut all the credit/charge cards since most of the time, these cards serve as emergency usage only. Without credit, how the citizen will spend or dare to spend? Even if we were to spend using cash, it will be limited to monthly salary. Credit cards have the easy payment facility for one to purchase expensive stuff like furniture, electronic devices, appliances and many more paying certain installment for a duration of time. With this easy payment, one will not have to uplift his or her current FD to pay for the expensive stuff especially for certain event like moving to new house.

Another point to ponder, with crime like snatch theft and robbery happening daily, who dare to go outdoor with full of cash? If this is limited, who will spend? Without spending, how the government going to stimulate the country's economy?

The 2010 Malaysia Budget consists of "goodies" which looks like the government is planning to reduce the burden of the people, but at the same time taxing the people more. It is like one step forward, two step backward. How can taxing for credit card promoting prudent spending? Why the people have to be tax just to promote prudent spending, while government official buying laptop at a price at least 10 times more expensive? Why not the government promote prudent spending by cutting the budget required for each project instead of taxing the people, their boss?

If the 2010 Malaysia Budget theme is to realized, government and the people should work together in prospering the nation. Remember the theme is 1Malaysia, Together We Prosper. 1Malaysia means everyone of us working together prospering together.

What does the 1Malaysia 2010 Budget has in store for you? - Part 1

2009-10-27T06:45:00.000-07:00

The Malaysia Prime Minister Datuk Seri Najib Tun Razak has tabled the 2010 Budget last Friday evening with the theme "1Malaysia, Together We Prosper" totalling about RM191.5B. The summary of the 2010 1Malaysia Budget is here. So, what does it really have in store for most us?

From the summary of the 2010 Malaysia Budget, it looks like there are few points for us, me at least.

To ensure that fuel subsidies only benefit targeted groups, Govt will implement a fuel subsidy management system in early 2010, which will utilise the MyKad.

I'm not sure how the government going to implement this, but if government is to implement this, why not give the allocated budget for fuel subsidy to everyone fair and square. If they plan to allocate RM1B for the fuel subsidy, might as well, divide the RM1B to the number of citizens in Malaysia so that everyone is getting the same amount fair and square.

By implementing the fuel subsidy using MyKad, the poor will be badly affected. With this implementation, public transportation fees might increase, the same goes to food price and many other things will have increase in the price as businessmen will take the opportunity to increase the price according to the un-subsidized fuel price. So, what the poor in Malaysia can do? They are not getting anything from the subsidy since most of them will not be driving or at least not enjoying the benefit of subsidy. Why can't our government implement something similar to Brunei?

Giving the subsidy money to the people is always better, because the poor can enjoy the subsidy. The money can be use to ease their burden, but our Government choose to use subsidy program, thus helping the rich to pay less for fuel, while at the same time increasing the inflation rate in Malaysia. Is this "1Malaysia, Together We Prosper"?

More like another rich man budget to me. What is your comment on the fuel subsidy?

There are other "goodies" from the 2010 Malaysia Budget for poor citizen like me which I will discuss it in my next post. Below are the other "goodies" which the Malaysia PM has in store for the "rakyat".

The maximum income tax rate for individuals to be reduced to 26% from assessment year 2010. Personal relief increased to RM9,000.
Personal relief for EPF and life insurance schemes to be increased to RM7,000.
Taxpayers will get tax relief on broadband subscription fee of up to RM500 from 2010 to 2012.
To promote prudent spending, a service charge of RM50 a year to be imposed on each principal credit card and charge card; and RM25 a year on each supplementary card, effective from Jan 1, 2010.

Turmoil in the financial world is finally settling albeit slowly

2009-10-20T00:34:00.000-07:00

Is the financial world finally recuperating? Although there are statistics and incidents in shreds and patches that indicate that the financial world is settling down but a particular change has to last for a considerable time period before it establishes itself as a trend. What gave rise to the turmoil in the financial markets? The factors that are responsible for creating upheavals in the economy didn’t impact the economy in one day; it started seeping into the economy few years ago. Since the economy wasn’t strong enough to withstand the turmoil, it gave in. However, the economy was seemingly healthy. But this wasn’t the true picture.

It started with subprime lending activities that assumed an uncontrollable proportion due to manipulation and irregularities. Mortgage brokers and lenders had scrupulously inflated income levels and manipulated appraisals. They approved mortgage loans of borrowers that were not eligible to get a mortgage.

As more and more borrowers started defaulting on their mortgages, the number of foreclosures increased and so did bankruptcies. There was a credit crunch and consumers received a bolt from the blue with the turn of the economy. The recession affected consumer spending, investor sentiment etc.

As credit crunch assumed a horrendous proportion, it became difficult for consumers to make ends meet. Business houses closed down or declared bankruptcy. Employers went on a cost cutting spree and nothing seemed to be working well for the economy. Credit card issuers altered their payment policies and reduced credit limits. But the same was not communicated to the consumers. So, the credit cardholders started defaulting on their credit card payments too. All this added to the increase in delinquencies (mortgage as well as credit cards).

The financial world as a whole was affected. The financial stalemate that started in United States sent ripples to all the major economies of the world. It affected all the sectors of the economy since it affected all the macroeconomic indicators drastically.

However, the economy is slowly looking up and according to experts, it will take another year or 2 for the economy to recover if not completely at least partially.

Power of Compounding Gain

2009-09-28T07:04:00.000-07:00

Recently when I discussed setting a financial goal with some friends, and one of them talking about reaching personal net worth more than six times from our current annual income in another four years. Well, at first I thought reaching that kind of personal net worth is quite impossible, but after doing some calculation I believe reaching personal net worth of six times our annual income is possible, at least reaching closer to that amount.

First, we must realize that it is not possible to save 100% of your annual income. We have expenses, loan and many more which will takes up huge percentage of the annual income, unless of course, we have very low amount of expenses and loan. Even then, we cannot deny that we are not going to save 100% of our annual income, else how are we going to survive in this world where everything needs money?

Back to the real issue, how I suddenly come to the conclusion that the financial goal is achievable, at least for me, but at one condition, which is I have to invest 20% of the annual income and reinvest the 20% profit that most likely I can get from my current investment. That is the compounding gain that I'm going to get (if everything goes according to the plan).

Let's have the example of a person A, earning 10K per year, reinvesting 20% of his profit and investing 20% of his annual income. If we assume that A never has increment through out his/her employment, so every year he will top up 2K to his investment capital and reinvest 20% gain for the previous year. It will takes him 10 years to get his/her portfolio to be six times the annual income. Let's look at the table below:-

Capital	20% of salary	20% profit	End year capital	Year
2,000.00	2,000.00	400.00	4,400.00	1
4,400.00	2,000.00	880.00	7,280.00	2
7,280.00	2,000.00	1,456.00	10,736.00	3
10,736.00	2,000.00	2,147.20	14,883.20	4
14,883.20	2,000.00	2,976.64	19,859.84	5
19,859.84	2,000.00	3,971.97	25,831.81	6
25,831.81	2,000.00	5,166.36	32,998.17	7
32,998.17	2,000.00	6,599.63	41,597.80	8
41,597.80	2,000.00	8,319.56	51,917.36	9
51,917.36	2,000.00	10,383.47	64,300.84	10

While the amount seems nothing, but if we look at the profit, it is increasing yearly. So, if A continue to invest diligently, eventually he/she can become millionaire in just 25 years down the road.

309,480.00	2,000.00	61,896.00	373,376.00	19
373,376.00	2,000.00	74,675.20	450,051.20	20
450,051.20	2,000.00	90,010.24	542,061.44	21
542,061.44	2,000.00	108,412.29	652,473.73	22
652,473.73	2,000.00	130,494.75	784,968.47	23
784,968.47	2,000.00	156,993.69	943,962.17	24
943,962.17	2,000.00	188,792.43	1,134,754.60	25

Imagine, if you are start to work at the age of 21 (no increment through out your employment), by the age of 46, you are a millionaire. So, for those earning low salary, fret not. If you can invest diligently and invest wise, eventually becoming a millionaire is no problem - you still have 9 years before retirement age (55).

The concept is simple, but how many of us will be able to achieve that by investing wisely? That will be another topic, which we can discuss.

Managing Debt - Part 2

2009-09-08T07:44:00.000-07:00

In previous post of Managing Debt , I talk about some brief overview of good debt and bad debt. This post suddenly come across my mind when my brother feel so "unhappy" cannot use future money to buy his train ticket for the Hari Raya holiday. When the transactions failed to be done with the credit cards, my mom ask him to go to the station and buy direct with cash. Then he frowned and say, "Sigh, cannot use future money."

Debt or some would say future money can hedge the inflation or make the money work for us provided we have the discipline in repaying the debt. One of the example, is the credit card - my brother buying train ticket scenario. He has the money in which he can either use for buying train ticket or just top up that amount of money to buy a stocks, which he is confident will be giving him about 7%-10% gain. Thus without using the credit card, he cannot buy that stocks (which can be good or bad, but then that is another story). But with the credit card, he can at least hedge inflation for about 2 month, at least a month. This is because usually a credit card statement will have statement date whereby all the transaction for a month will be included and there is another date call payment date whereby the transaction for the month due before the date.

If you make any purchase right after the statement date, your transaction will be reflected in the next statement plus the payment date which will be about another 13 days, you will have 43 days of credit. 43 days is about 1.5 months inflation hedged. Imagine having 10 BIG transactions done like that. Your money value definitely not shrink as fast as others would.

Next up on managing debt, we will be talking about using easy payment, another tools which I think we can leverage it to hedge the inflation as well. Hedging inflation is almost the same like surviving in this "inflation" world

Financial Planning and Management

2009-08-22T05:54:00.000-07:00

For the past few weeks, I was not able to up blog more in this blog, mainly is the slow Internet connectivity that I'm facing in my house in Kulim, because I was using Celcom 3G, which sucks, although there are many complain about Maxis 3G. When I go back home town, I was too lazy to blog as I have always stressed on Work Life Effectiveness, which means that although I earn a living by working as Engineer, but I want to dedicate the time to myself and family as well during the weekends.

When I come to think of it, most of us will be sweating throughout our lifetime earning barely enough to support whole family. I actually think, is it possible that we can be out of our working life as early as possible - especially for those from the average income family background? The answer is yes and no.

No is because we lack of discipline and financial planning and management. Without discipline, most of us will just spend as it is. In fact, without discipline, most of us will hardly have any savings in our oldtime, because we do not save enough money and the money would either be spent on our children colleges.

Yes is because we have good financial planning and discipline to ensure that we follow the financial plan that we planned it out earlier. With discipline, we will be able to save enough for our old times, while having sufficient for our children colleges. We will be discussing how to retire early in the near future......

Obama rejects 2nd stimulus: Give recovery time

2009-07-13T05:52:00.000-07:00

WASHINGTON – President Barack Obama said Saturday the $787 billion stimulus program must be given a chance to work before consideration is given to a second such jolt for the still-ailing economy.

Obama acknowledged in his weekly radio and Internet address that people are getting nervous about continuing high joblessness — the unemployment rate hit 9.5 percent in June — but said reversing payroll losses takes time. He asked Americans to be as patient as possible.

Republicans have labeled the $787 billion stimulus a failure. Both Obama and Vice President Joe Biden have argued that the bulk of the money from the stimulus program is still being disbursed and that it already has saved many jobs.

Obama criticized Republicans for opposing the stimulus but offering few alternatives to the worst recession since the Great Depression. And he rejected talk of a second stimulus, an idea that has been discussed by Democrats and even famed investor Warren Buffett.

"We must let it work the way it's supposed to, with the understanding that in any recession, unemployment tends to recover more slowly than other measures of economic activity," Obama, who is visiting Ghana on Saturday, said in his recorded message.

The stimulus included $288 billion in tax cuts, dramatic increases in Medicaid spending, about $48 billion in highway and bridge construction and billions more to boost energy efficiency, shore up state budgets and improve schools.

The plan "was not designed to work in four months," Obama said. "It was designed to work over two years."

Since Obama signed the stimulus into law, the economy has lost more than 2 million jobs and the unemployment rate has climbed higher than the White House predicted it would have ever reached without the stimulus.

Some companies say stimulus money helped avoid layoffs. Independent government auditors found that stimulus aid to states helped keep teachers off unemployment lines. But overall job numbers continue to suffer.

Republicans have seized on this opportunity to criticize the president, but they have struggled to find their collective voice. At a news conference Friday, Republican lawmakers criticized the White House for spending so much, while simultaneously saying the administration wasn't spending it fast enough.

With the Obama administration now pushing for a costly overhaul of the nation's health care system, Republicans are casting Democrats as liberals on a shopping spree. In the GOP's weekly address Saturday, Virginia Rep. Eric Cantor, the House Republican whip, accused the Democratic-controlled Congress of reckless spending and careless borrowing.

Though the Republican stimulus proposal this January had its own deficit-pushing price tag of $478 billion, Cantor and Republicans are trying to make their case against Obama as one of fiscal restraint.

"For the stimulus alone, Washington borrowed nearly $10,000 from every American household," Cantor said. "Let me ask you: Do you feel $10,000 richer today?"

In his speech, Obama twice referred to "cleaning up the wreckage" of a recession that began on President George W. Bush's watch. But with Obama's poll numbers slipping on economic issues, Republicans want to lay the economy at the president's feet.

"This is now President Obama's economy," Cantor said.

Source: Yahoo!

I was reading this news this morning and it really amazed me that President Barack Obama make such decision. The first day President Obama in the office, he was already pushing for the $787 billion stimulus which is now deemed failure by the Republican. The way he rejected the second stimulus plan means that President Obama does not back down to pressure by the Repuclicans.

I do agree that we should give some time for the economy to recover. We should all realize that though the US government has already throw out $787 billion, it will take about few years for economy to recover. We are still seeing jobless rate continue to increase, at slower pace, but that does not mean that the economy has yet to recovery, neither it means the economy is starting to recover. We are just off the worst, but there are more to come.

Many has been saying that China or Asia will lead us out of the wood, but it is very unlikely for this round because the global economy is too dependent on the United States. China or Asia as a whole only can cushion this meltdown, but to lead us out of recession, is very unlikely, but I could be wrong too.

At the same time while we are waiting for the outcome of the $787 billion stimulus plan in few months time, President Obama should gather all the economy experts to work on the second stimulus plan. This is not to say that a second stimulus plan is a must, but if the first stimulus plan did not have the expected outcome, the second one can be deployed as soon as possible without delaying.

I do hope that the US government will not have to deployed a second stimulus plan, because any implementation of the second stimulus plan will bring the States deeper into debt. What is your take towards the second stimulus plan? Do you agree in President Obama by rejecting or a second stimulus plan is a must? Let's discuss......

Are We Bear or Are we Bull?

2009-07-06T06:03:00.000-07:00

The recent three months rally has resulted in 30% increase of most of the stocks and the bourses around the world. This three months rally has also prompted many people on whether we are still in recession mode or we are out of the woods.

Based on the volume for the past few months, I can say that most of the retailers have started playing with stocks and the three months rally is like a very energetic bull that just keep on going up without pausing.

But when we really read at all the news, we can see that jobless rate in the US and European countries continue to spike, whereas Malaysia are seeing double digit contraction in her export data. So, with all the bad news, why are we seeing the market going up for three months without pause?

The recent rally was actually drive by the commodity. Look at the crude oil price chart? It has been going from USD40 to close to USD72 in just three months. Other commodity prices are also increasing bit by bit. This commodity rally is fueled by China, who plans to absorb commodity at low price.

As we can see, again, most of us were caught off guard as we were waiting for the market to crash, but before market can crash, a catalyst stir up the market, and then retailers beginning to buy stocks at 10% higher, then 20% higher and now trapped again at the peak. Again, my philosophy to buy on and off when the price is right and not wanting to see stocks at the rock bottom works out and most of the stocks I got are gaining about 20%-40%, even when we are starting to see market to plunge.

Question now again is are we bear or are we bull? If we thought that the market recovers, the market will react the other way while the same goes to if we think that the market are still bearish, we might suddenly see a spike and then we have to continue chasing the stocks, and then suddenly find ourselves trapped at the peak.

So, if it is possible, always buy within your means, which means buying the stocks with your cash. I will continue to reload my investment on and off on strong fundamentals stocks so that if the market really recovers, then I can harvest my fruit, while if the market drops, I can be confident that the stocks will not be shaken. Fundamentals can rarely goes wrong.

So, are we bear of are we bull? You make the call.

Payday Loan: Some Important Features

2009-06-26T00:28:00.000-07:00

A payday loan is known by different names, for instance, cash advance loan, deferred deposit loan, payroll advance loan, paycheck advance, payday advance and so on. A payday loans is a particular form of loan that is offered for a small time period to deal with your urgent spending requirements. These loans are typically due for repayment at the time when you receive your next paycheck. A payday loan can help you if you experience difficulties related to unforeseen expenditures or bills prior to receiving your next paycheck.

In simple terms, a payday loan is secured by your future paycheck. These loans have garnered significant popularity over the past few years. Against lending you the money till your next payday, the lender would ask for a fee.

The majority of storefront locations necessitate you to offer them with a physical check that would act as guarantee for the payday loan. If you qualify for such a loan, the loan amount would be electronically deposited into your savings or checking account. You can get the loan on the same day or the following day and it depends on your lender and your place of residence. You can obtain from $100 to $1,500 in the form of a payday loan and you don’t need to fax any documents.

Prerequisites for a Payday Loan

Becoming eligible for a payday loan is not so difficult. You only have to fulfill the following criteria:

You are presently employed (or have a regular source of income)
You earn $1,000 every month as a minimum
You are 18 or over, an American citizen and have a checking or savings account in your name
You are not working for the military
Check bounces, bankruptcy, charge offs and other credit difficulties can’t hinder you in getting a payday loan.

Affect of Credit History on Insurance Premiums

2009-06-26T00:21:00.000-07:00

CREDIT HISTORY
When companies do a credit check on you, they are given not only a score number but also details of your credit history. If you have missed payments on your credit cards then it would show up on your credit report. If you have defaulted on a loan payment, your credit history will show this.
If you have missed making payments, you are not considered responsible enough when it comes to handling money. In other words you are a higher risk than your neighbor with a great credit score.
Having a higher credit score is considered by insurance underwriters a sign of stability and responsibility. Obviously the higher the risk your insurance company considers you to be, the higher the insurance premium.
While some may be of the opinion that using credit scores to determine insurance premiums may discriminate against those who are in the lower economic group because they tend to usually get themselves in financial trouble and probably have a lower credit score.
However, others may argue that regardless of your financial status you can still live within your means, pay your bills in time and maintain a good credit score and reap the benefits that come to those with good acceptable credit scores.
A importance of a good credit score in today's world cannot be underestimated. Having a good credit history will save you money not only on your car loans and home mortgage but also on your insurance premiums.

While some may be of the opinion that using credit scores to determine insurance premiums may discriminate against those who are in the lower economic group because they tend to usually get themselves in financial trouble and probably have a lower credit score.
However, others may argue that regardless of your financial status you can still live within your means, pay your bills in time and maintain a good credit score and reap the benefits that come to those with good acceptable credit scores.
A importance of a good credit score in today's world cannot be underestimated. Having a good credit history will save you money not only on your car loans and home mortgage but also on your insurance premiums.

Debt to Income Ratio: guide to show your borrowing capacity

2009-05-26T02:20:00.000-07:00

Upto what extent you can drown into debt in a month, and come out smoothly by repaying, is best shown by your debt to income ratio. This ratio of debt and income is the key method to determine the availability of cash from you monthly income for repayment of your loans….or, in other words, it expresses your true borrowing capability. That’s why creditors consider debt to income ratio a very effective tool to figure out your monthly payment, and your true financial situation. This ratio clearly calculates the total amount of loan an individual can take.

There are 3 categories of debt to income ratio:
Front End and Back End Ratio
Your creditors tend to analyse your debt to income ratio with two numbers 33/38. 38 is the back end ratio. It is the long term debt ratio. And front end ratio is 33, which is the ratio of housing expenses.

Housing Expense Ratio
The payments of an individual’s housing normally means each and every payment you need to make in your day to day life. That includes all of your monthly payment. It includes costs like- principal, interest, taxes, and insurance. The ratio of housing expense is meant for measurement of an indivudual,s income’s percentage which would cover all his housing payments. A limit would be normally set by your creditors on where your debt to income ratio is wanted by them.
For example, sometimes the creditors set a rule that they want your housing expenses should not exceed 28% of your gross monthly income, and like that.

Long Term Debt Ratio
Long Term Debt ratio is used to calculate the specific percentage of an individual’s monthly earning that is available for making repayment of total debt. The calculation of Long Term Debt ratio includes your housing expenses (PITI), auto loans, credit card loans and some other debts.
Here also, the limit seting trend exists like that of your Housing Expense Ratio. The creditors sets a limit to your long term debt ratio. It is also referred as Back End ratio.

Managing Debt - Part 1

2009-05-25T06:52:00.000-07:00

How do you deal with debt? How do you pay the monthly credit card charges, minimum amount or full amount? What is the best way to reduce debt?

Before we go into reducing debt, we have to understand what are debts. Debt means we are using future money now, in one way, we are killing inflation, if properly utilize this tool, but without proper planning, the interest alone will be enough to kill us before we manage to hedge the inflation. Thus, to fully utilize debt as a tool for us to increase our net worth and in another way, making money for us, one must have very strong discipline in the debt repayment.

There are some debt which actually favors us, while some will get us deeper in the world of debt. Good debts are like property loan whereby the property will have value in the long run and credit card although it can be damaging, if not used properly. Bad debts are like getting personal loan or charge credit cards just to buy electronic gadgets to show off.

Guess, I'll stop at the introduction of the debts. Moving forward, and from time to time, I will continue to blog more on this issue as Financial Management is also about managing debt.

To be wealthy, one must first develop the right habits...

2009-05-21T19:42:00.000-07:00

I wonder how many of the bloggers who drop by here are fans of Stephen R. Covey. Anyway I guess it's important for us to set our perspective right, all the more if we want to wealthy.

One must first develop the right habits. What habits one may ask? The effective habits, I believe as suggested by Stephen R. Covey. Probably if we look at the lives of those successful people such as Bill Gates, Warren Buffet, Michael Dell and many others, there are a few things we may find it to be similar, is that all of them have an effective habits and hardwork.

I'll probably just simplify it as Stephen did in his book, 7th Habits of Highly Effective People, although I don't agree with him in coming with the 8th Habit book. After all, how is it possible to keep developing new habits without getting rid of some of the old ones.

Therefore, I shall start by mentioning the need in PRIVATE VICTORIES, but I might not start with Proactive. Because I believe it's not about Proactive, but before Proactive, there must be a deconstruction of old habits. Just like if you want to renovate your house, you'll have to take down those beautiful decorations before making them even more beautiful.

The HABITS....the right habits:
1. Deconstruction of Old Habits, lead to Proactive.
2. Think for the future ahead.
3. Priority must be set right.

These are the habits important for PRIVATE VICTORIES.

And there is another that we call: PUBLIC VICTORIES, and remember, the right habits must be develop during the PRIVATE VICTORIES, and only then the effective habits can reflects the results on public.

The next 4 habits for PUBLIC VICTORIES:
1. Winning mentality habit
2. Put others first...then others will put you first.
3. Teamwork.

And of course last but not least, the most important habit is to continue to practice all these right habits, until they become effective in your life.

Living With Student Loan

2009-04-27T07:41:00.000-07:00

Nowadays, most fresh graduates will be burden with debts, even the moment they stepped in the varsity world. I'm quite positive that those not coming from a well to do family will need to get student loan or education loan. Students from Malaysia can apply for this student loan or education loan from a government body, PTPTN.

When I graduated three years ago, I directly have to start my payment for the education loan. The terms and conditions of the loan is to start the payment 6 months after I graduated. This applies to all the university students getting student loan from this PTPTN - which means that we have to get a job within 6 months after graduated. Well, for those getting jobs within the first six months after graduation, how many of them are actually paying back their student loan? I believe majority of them are not paying or just paid maybe once or twice the installment. Not that I want to criticize or condemn anyone, but I do believe we need to pay back this student loan that allowed us to get tertiary education. Without this repayment from us, how is PTPTN going to give student loans to others? Anyway, back to the real topic, living with student loan - if one delay his or her payment, the interest will accumulate, then one will starts to blame the government for charging high interest. I was wondering, is 3% from the remaning amount is high? For me, it is an ok amount, which is why we need to start paying as soon as possible and pay as high as we can afford so that the interest will be lowered drastically.

Financial management and discipline has a lot to do with not repaying this loan. If one does not have discipline or good financial management, he or she will always face with shortage of money, thus not repaying loans because there is no extra cash left with him or her at the end of the month. One can start by setting aside some amount of money for student loan repayment. By doing this, at the end of the month one will still have the money for loan repayment. Our income are fixed, thus we need to spend less than the income in order to have extra money for our student loan repayment.

Rule #1
Income - Loan Installment = Expenses + Savings

The above rule always apply to all of the working class. Or better still

Rule #2
Income - Loan Installment - Savings = Expenses

Ever wonder what is the different between the two rules? According to maths formula, both are the same, but from financial management stand point, the two rules are different. Rule #1 means setting aside loan installment and one will get expenses + savings portion, so this mean one does not necessary have savings. Rule #2 meaning setting aside loan installment and savings after income, then spend the remaining one. Thus with rule #2, one will be able to pay off loans as well as having savings.

In conclusion, we need to have very good financial management so that we can start paying off our student loan as soon as possible so that PTPTN can continue to provide student loan for those needy.

Realm of Wealth

2009-04-07T06:30:00.000-07:00

Money......what is the value of money for us? Some of us believe that money is everything while the others think otherwise. We use money to but stuff - food, clothes, transportation etc. Money seems to be a very important element in our life that everyone sweating day and night just to meet the daily needs.

We are living in a world where money seems to be everything - which is quite obvious why I name this blog Realm of Wealth. I was thinking whether to name the blog Realm of Money or Realm of Wealth, but decided on the latter one. The main reason I choose wealth over money is because wealth is made up of an abundance of valuable material possessions or resources, while money is just money. I want to blog more on money related stuff, while at the same time not only money, so wealth is more suitable. This blog will have information based on my perception, which can be right or wrong, but to voice out is the process of learning, which will happen all the time.