Finance Tips from Blogtip.net

Thought this was a really good article….

Over the past three years, my firm has done considerable research on the opinions held, and the strategies employed, by financial advisors. Our research covers a full range of RIAs and CFP® professionals. Most recently, to understand the effects of this watershed recession on financial advisors, I had my staff conduct a comprehensive survey during and following the NAPFA Practice Management and Technology Management Conference in Las Vegas in late October, 2008. Survey Backdrop Just as I was preparing to walk onstage at the St. Regis in Aspen, CO on Sept. 15, 2008 to present the practice management keynote address for CapWest Securities’ annual Sales and Compliance Conference, the attendees were rocked by giants falling. Every newspaper provided to the attendees by the luxurious resort boldly announced that Lehman, Merrill Lynch, and AIG, three of the biggest names in the financial world, were crashing. While I had been expecting such events for over a year, the stunned looks on the faces and the befuddled comments whispered among the crowd were reminiscent of the Day of Infamy, December 7, 1941, when the Japanese bombed Pearl Harbor. Disaster had befallen us, and the offices of America’s financial planners were right on battleship row at the center of the action. It matters little whether this is the result of markets innocently gone wrong, massive political, corporate and bureaucratic bungling, or a nefarious conspiracy by financial titans to centralize the entire world’s banking power in their hands. Financial bombshells are continuing to fall, doing injury to our clients, our peers, and even to some of us personally. Against this backdrop, I wanted to discover what effect our current crisis is having on financial advisors. What are they doing in the face of battle? How does this compare to the classic strategies they should be employing? Have the current tumultuous market conditions confirmed the validity of classic strategies, or have they turned conventional wisdom on its head? Importantly, how many planners are using today’s highly visible investor dissatisfaction as their marketing opportunity of the decade? How are their clients reacting to current market gyrations? What would have happened if more investors had searched out skilled financial advisors? This was a completely anonymous survey done so that there would be no way to trace any answers to any particular industry professional to make sure that the answers were as candid as possible. Summary survey results are provided and analyzed below. Q1. What effects have the recent tumultuous market conditions had on you? Analysis: A full 71 percent of the advisors surveyed say they are working twice as hard as they used to do because of the current market scene, and of those, at least half are feeling strained by it. These advisors are reaching out to their clientele because they want to stabilize them and to keep them from doing anything rash. Some of those surveyed were personally very affected by the emotional turmoil expressed by their clients and the pressures accompanying investment losses. A much smaller percentage had their attention on their own reduced revenue. A minority claimed that the situation had no effect. Q2. How have your clients reacted to recent market gyrations? Analysis: Advisors reported nearly a 50/50 split of clients panicking vs. those who aren’t. It is questionable if this is due to differences in how different advisors are handling their clients, but it appears that many advisors have bolstered their image with clients as a result of how they have handled the crisis. In almost every case, it is clear that advisors realize that it is important to be visible and to show they are there to help. Most advisors said they carried out a rigorous client-services campaign as the market was falling, but many advisors admitted that they were less than skilled in dealing with it. Q3. How have these adverse market conditions affected your firm? Analysis: The strain of the chaos is showing up as inefficiencies in the day-to-day activities of some firms. Generally, advisors saw this as a time to put the brakes on expansion. A small number of advisors gravitated toward increased marketing to dig themselves out and continue to expand their firms. Q4. What decisions have you made about your financial planning practice as a result of recent events? Analysis: Of all the questions, this got the most varied answers, with different financial planners focusing on very different areas, or no area at all. As evidence of their overall conservative tone, more than half see no cause for decisions of any kind and are not noticeably shaken—but they are watchful and cautious. Smaller numbers (fairly evenly divided) have reaffirmed their purpose, resolved to increase service and efficiency, are embarking on marketing plans, or are pulling back to ride out the rough times ahead. There is no consensus on the best way to proceed. Q5. Do you see any opportunities for yourself from the current problems in the markets and their effects on financial planners? a. If so, what? b. If not, why not? Analysis: To a high degree, NAPFA members reported that they feel like this is their time, and they need to get the word out that they are the “go to” guys and gals. However, their actions were passive—except for a couple of firms that are looking at what has occurred as a really big opportunity. For some advisors, additional business is simply showing up, apparently without much effort on anyone’s part. It looks like some firms would like to be more aggressive, but they are too conservative to venture out. A small percentage of respondents saw no opportunities. Q6. What do you feel could be done to improve your income now? Analysis: More than half of those surveyed agree that marketing actions are needed to bolster their income, even those firms that feel they are too encumbered to take steps in that direction. Some have the viewpoint that nothing could or should be done, and it is just a matter of time until things sort out. A smaller number feel their best option is to bolster profits by improving internal operations or expanding services to existing clientele. Q7. If more investors had consulted CFP® professionals, would it have affected what happened in the markets? a. If so, how? b. If not, why not? Analysis: About a third of the advisors interviewed felt that getting more people into the hands of professionals with proper training (for the sake of our question, we used the phrase CFP® professionals as the example) would have had an effect on what happened in the markets. Two-thirds did not. Of the two-thirds who did not, more than half named poor regulation or institutional investors as the responsible parties. A smaller percentage of advisors felt it was just the way the market is. A very small group said that the key is having the right people working with individual investors. Summary Analysis. The majority of respondents to the survey view themselves as proactive. But, from an exterior perspective, they are just reacting to what happens in the market and with their clients, rather than exerting control where they could. The advisors who are the most in control of their practices—both in operations and especially in communications and marketing—are doing the best. More and more advisors see the need right now to strengthen their practices in order to stay competitive. Unfortunately for the majority of firms, their marketing is woefully inadequate to take advantage of the opportunities presented by our current crisis. These firms have the technical foundation, but they are not taking the actions needed to move themselves onto center stage. This does not match the passion they obviously feel about their profession, nor does it create the additional demand from investors that these firms are seeking. In a period of stress, clients are increasingly likely to change investment advisors. About 50 percent of the time, clients leave because they are upset with the planner’s handling of them, and about 50 percent of the time they leave due to what they consider is unacceptable investment performance. While very few markets have been kind to investors, we hope it is helpful to know what your peers are experiencing. It is likely to also be helpful to get some expert advice on how to weather the storm. Practice management and marketing strategies are “sciences” -specific actions will produce specific results. When approached this way Marketing, Productivity and Time Management, Long-term Strategies with Real Time Planning and Efficient Utilization of Personnel—all can be directed to the benefit of advisors who are willing to take advantage of the current economy and move their firms toward more “Face Time,” more qualified prospects and growth despite everything.

Copyright© 2009 Creative Business Strategies, Inc. All Rights Reserved.

Thought this was a really good article….

Bankruptcy and bad credit can make you think your ability to get a car loan will be an impossible task. But it does not have to be. Also, any new loans including a car loan will help you to build and reestablish your credit and credit history.

Most finance companies will not deal with you if you are in the middle of bankruptcy, but they will when it is finalized as you can then legally take on debt and reestablish yourself. Bad credit should not mean no credit. You can still get a good car loan and even a reasonable or good rate and payment. Here are some excellent tips and pointers to help you get the best car loan and terms possible regardless of your credit history.

First, get a copy of your credit report.

This is a crucial step as your credit report may and probably will contain some erroneous and derogatory information. It is a known fact that over 90 percent of credit reports contain some sort of error or incorrect information. This can range from wrong contact or loan info to derogatory debt info that should be removed as it is older than 7 years.

The rule is that most derogatory credit and debt reporting can only stay on your credit report for 7 years (a bankruptcy is 10 years). Many collection companies and other creditors abuse this law by relisting bad credit with different loan numbers and such. This is actually illegal and a violation of the Fair Debt Reporting Act. If you find any fraudulent reporting like this hire an attorney and sue the violating company.

Basically, anything that does not belong on your credit file can be investigated by inquiring with the credit bureaus (Trans Union, Equifax and Experian). When an inquiry is opened, they must contact the original creditor and receive proof that the debt is valid. If they do not receive proof within 30 days the disputed information must be removed. The credit bureau in question will then send you a free, corrected credit file. Note, this dispute process is not to be abused for knowingly valid debts.

By correcting the data in your credit report you can only improve your credit rating. You are also entitled to add a small entry to explain any valid derogatory entry. For instance if it was caused by a unexpected illness, automotive accident by an un-insured motorist or something that was not your fault. Creditors may take this info into account and give you a better rate or terms or extend credit where they normally would not.

Make friends with the special finance manager at your local car dealership that handles bad credit.

This can only help as many times a loan is made or determined on the finance managers personal opinions. They can put in a good word for you or a personal favor or recommendation. Especially if they are at a large dealership and they do a lot of loans. They may be able to throw it in with a package of loans and get you approved or get you a better rate. Do not discount this, I have personally seen this happen.

The special finance manager will also determine how much money you can put down and what payments you can afford. If you are friends with them you will most likely get a much better deal, car and payments.

Look online before you sign the dotted line.

There are numerous online finance companies and websites that may give you better terms and or rate, but you will never know if you do not check. Just look up the keywords bad credit car loan on Google or Yahoo and you will find plenty of them. Find a few and see what kinds of offers or terms you will get. Do not be surprised if you are approved, but for a newer car. Many finance companies will not do loans on cars older than 5 or 7 years or with prices below $5,000.

Buy here pay here.

If you wish to buy a car older than the range most companies will finance, under $5,000, or your credit will not let you buy at a normal dealership (very rare), then there is one last resort the BHPH (Buy Here Pay Here dealer). These car dealers finance the car themselves and will usually expect weekly payments. Do not expect your car loan with them to be reported on your credit report so it will probably not help your credit. If you miss a payment, they will tow off or repo your car.

Then you will have to pay extra repo fees and all payments to get you up to date to get the vehicle back. BHPH is kind of like legalized loan sharking, but for some it is an acceptable or only alternative to riding the bus or walking. Expect high interest rates (whatever the state maximum is) and weekly payments of between $50 and $100 with a sizeable down payment (usually around $2,000 or so depending on the year and price of the car being loaned).

Now, once you have a car loan, do not mess up and miss or make late payments. Your goal is to correct the mistakes of your past and build good credit. If you keep making on time payments and continue to build your credit, with 1 to 2 years you will improve your credit and may even be able to do things like purchase a house or condo and qualify for better rates and terms.

Check out this video~!

Congress says that with no way to actually pay back our debts, faking a coup to eliminate financial obligations is the best plan for the US economy.

Question from a Reader Answers in Comments

I have to give a presentation to a group of small business owners with no accounting or financial knowledge. How do i go about this with these questions in mind?

I found this over @ Amazon thought you would find it interesting

Product Description
This is Part One of a 2-½ hour 2-DVD set featuring William Mansfield, a former real estate appraiser who has been lecturing on Real Estate Appraisal and Buying Bank-Owned Foreclosures for the past 20 years.

The main purpose of this 2-DVD set is to provide viewers with the basic principles involved in purchasing properties that have already been foreclosed on and are now owned by the bank (R.E.O.s – Real Estate Owned by the lender).

Most import… More >>

BUYING FORECLOSURES – Part 1

Retail Stocks: Retail stocks mixed; bid rumors center on Saks
Retail stocks move into positive territory after a Conference Board report shows that consumer confidence climbed in August.

Read more on Market Watch

Check out this video~!

www.reputationdefender.iwow.us As featured The Wall Street Journal, Forbes, CNN, ABC News (20 NBC News, CBS News Fox Business, Fox News, BusinessWeek, Wired, The Washington Post, The New York Times, The Associated Press, Reuters, Yahoo.com, PC World, Laptop Magazine, Spiegel Online, and many more.

Question from a Reader Answers in Comments

I am a recent grad with an associate degree in Business Administration/Management. I want to gain experience in finance-ultimately finding a job as a financial/research analyst for a firm. Keeping in mind I only have an associate degree right now, what type of job opportunities are out there for someone with my interests that would allow me to gain experience in the field?