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Bill of Sale

Bill of Sale

 
A bill of sale is a document that a purchaser receives from a seller signifying an item being sold, its value and the transfer of title from one owner to another.  A bill of sale can be absolute or conditional, depending on the prior agreement of the grantor and grantee.  The bill of sale is generally a legal document that transfers the rights of ownership or use and both parties are expected to abide by the conditions of the agreement.  Bill of sales is typically used in the car purchases.
 
 
What is an absolute bill of sale?
 
 
An absolute bill of sale transfers rights of use and ownership to another party.  The grantor party does not retain a security interest in the transfer of the item.
 
 
What is a conditional bill of sale?
 
 
Under a conditional bill of sale, the grantor party maintains the right of seizure against the grantee if certain conditions stipulated in the bill of sale are not met.  A conditional bill of sale can be used in “title loans” that put a creditor’s item, such as the title to a car, up as collateral for a loan.  These loans are generally high interest and the debtor risks losing possession of the car if payments on the loan cannot be made.  Until the debtor fails to repay the loan, the conditional bill of sale remains in effect, with the debtor enjoying the use of the property (the car) but handing the potential for the car to be repossessed to the creditor.
 
 
What items are bills of sale used for?
 
 
Bills of sale can be used for significant, moveable pieces of property such as cars, furniture and jewelry.  A bill of sale form can be customized based on the nature of the sale and a lawyer can help generate a legally binding bill of sale.
 
 
What is featured on a typical bill of sale form?
 
 
A proper bill of sale form will start with the names and addresses of the two parties involved and signify which among is the seller and purchaser.  The bill of sale form will then state the location of the sale and location of the property and confirm that the item is being sold.
The next part of the bill of sale form is the most important part and signifies the amount that is being paid for the properly and when the item will be delivered.  There will also be a provision for the transfer of funds to cover the transfer of property.  Especially in bills of sale involving motor vehicles, there will be detailed information about the make, model, color and style of the property as well as identification numbers, if applicable.
 
 
The bill of sale will end with guarantees from the seller that the vehicle or other property is free from other claims from creditors and that the seller has the legal right to sell the property.  The seller disavows claims any further damages of losses associated with the property.
 

Teapot Dome Scandal

Teapot Dome Scandal

A Look at the Teapot Dome Scandal


The Teapot Dome Scandal of the 1920’s was a bribery incident due to the influence of oil money during the Warren G. Harding Administration. During this time, Harding proved himself to be a poor president. He was unable to properly manage the Federal government and often delegated work and authority to his cabinet officials. Many of these officials were dishonest, creating many problems.
In the beginning of the 1900’s the United States Navy switched from coal to oil as their primary source of fuel. In order to ensure that they would have enough, President Taft designated many oil producing areas as Naval Oil Reserves.
The Teapot Dome Scandal began with the Warren Administration. Warren G. Harding was a U.S. Senator from Ohio who was elected into the Presidential office in 1920. Early in his administration, before the Teapot Dome Scandal, the Secretary of the Navy requested that some of the responsibility for the Navy’s reserve oil be transferred to the Department of the Interior. This included the Teapot Dome field in Wyoming, which the Teapot Dome Scandal was named after, and other land in California.
At the time of the early events of the Teapot Dome Scandal, Albert B. Fall was the Secretary of the Interior. In 1921, he rented these naval oil reserves to two private oil companies, the Pan American Petroleum Company and the Mammoth Oil Company in exchange for gifts and loans, the sum of which added up to approximately $404,000.
The events of the Teapot Dome Scandal were not discovered and publicly announced till On April 14, 1922, the Wall Street Journal released a report stating that there had been an arrangement between Secretary Fall and a private oil company. The report claimed that the land had been leased out without any competitive bidding. 
The next date, the Senate opened up an investigation of the Teapot Dome Scandal. The Senate expected the investigation to be most likely futile, so the committee’s Republican Leadership allowed Democrat Thomas Walsh, the Montana Democratic Senator, chair the panel. The panel eventually discovered the Secretary’s shady agreement   because of one piece of evidence that Secretary Fall had not covered up.
In 1927, the Supreme Court invalidated the oil leases that have been illegally obtained through Secretary Fall the reserves were returned to the U.S. Navy. In 1929, Albert Fall was found guilty of bribery and fined $100,000. He also became the first Presidential cabinet member to be given a prison sentence for his actions while in office. He received a sentence of one year in prison.
The Teapot Dome Scandal as well as other cases quickly tested the reach of the Senate’s investigative powers. In 1927, the Supreme Court ruled on the landmark case, McGrain v. Daugherty, and found that Congress had the right to compel a witness to testify before the committees of Congress.

Figure Out How to Save Money

Figure Out How to Save Money

Figuring out How to Save Money


No matter what financial situation a person is in, it is always a good idea to try to save money. However, it is often difficult to figure out how to save money. Whether it is saving money for a retirement fund, or just trying to keep a few extra dollars, having extra money and being a careful spender is important in order to obtain financial success. 
Here are some helpful tips to help you figure out how to save money.

How to Save Money on Transportation
• New cars
o Choose a model that has a low purchase price and a low depreciation, insurance, gas, maintenance, and financing cost. New car guides can often provide this information.
o After choosing a model, go comparison shopping with several dealers both over the phone and online.
• Used cars
o Use a car guide, such as a “bluebook” to help compare the average retail price of the car with what the seller is asking.
o Have a mechanic check the car to find any potentially expensive problems.
• Car leases
o When leasing a car, consider the price, trade-in allowance, monthly payments, down payments, and any other fees that will be involved.
• Airline fares
o Look at internet travel sites and airline sites online to find special deals.
o Compare major carriers and low-cost carriers.

How to Save Money on Insurance
• Car Insurance
o Make sure a new policy is already in effect before cancelling an old one.
o Purchase insurance from a licensed, low price insurance. Call at least four of these agencies to find the best deal.
• Life Insurance
o Buy a term life insurance policy for just the protection without investments and savings services.
o When buying a universal life, whole life, or other case value policy, anticipate holding the plan for at least 15 years. Cancelling these plans early on can double the life insurance cost
• Homeowner/Renter Insurance
How to Save Money on Banking/Credit


• Debit Cards and Checking Accounts
o Use a free checking account that does not have a minimum balance requirement.
o Some banks provide lower checking costs through either direct depot or ATM use only.
• Credit Cards
o Send payments 7-10 days in advance to avoid late fees and increases in interest rates.
o If the entire bill cannot be paid off, switch the balance to a credit card with a lower APR.
• Savings Product
o Use a bank that is insured by the Federal government.
o Compare fees and rates of different banks and financial institutions.
o Consider U.S. Savings Bonds or Certificates of Deposit to earn the highest return.
How to Save Money on Housing Needs


• Buying a Home
o Try negotiating a lower sale price through a buyer broker working for you and not the seller.
o Have a home inspected before purchasing it.
• Renting a Home
o Find buildings and inquire about the availability.
o Do not sign a lease until you are sure you can be responsible for the monthly payments as agreed upon.
• Home Improvement
o Look at established licensed contracted who give fixed-price bids for jobs.
o Do not sign contracts that require a full payment before finishing the work.
How to Save Money at the Store


• Food
o Shop at lower-priced food stores. Smaller convenience store are more likely to have higher prices.
o Compare the unit price of similar products and choose those with the lower one.
o Take advantages of sale items.
o Buy basic ingredients instead of pre-packaged or ready-made food items.
• Prescriptions
o Use generic equivalents of drugs when possible.
o Call a pharmacy in advance to ask for a price of a medicine.
• Clothing stores
o Check online for any coupons or promotions the store may have.
How to Save Money for Retirement
• Keep putting away money regularly and stick to a plan.
• Understand your retirement needs.
• Put money towards an employer’s retirement savings plan
• Do not touch retirement savings.
• Learn about an employer’s pension plan.

Frugal Living

Frugal Living

Helpful Tips for Frugal Living


Frugal living may sometimes seem like a pain, but getting into the habit of saving money can add up quickly. The saved money can be invested, help pay off debt, or just be saved. To start off a new life of frugal living, here are some helpful hints to get into the swing of it.
Frugal Living and Transportation
• Buy a used car instead of new.
• Just use one car.
• Buy a used car with a low price, low depreciation, and low expenses.
• Carpool or take public transportation.
• Try to walk or bike when possible.
• Consider train travel instead of air travel.
• Shop around when renting a car.
• Find cheaper accommodations when traveling.
• Find positions that will allow you to telecommute.
Frugal Living and Houses
• Buy a smaller home and live within your means.
• Rent instead of owning a home if the cost of buying is too much. Money can be saved while renting which can be invested later.
• Find good contractors who provide fixed-price bids for house repairs.
• Make sure to understand all fees and payment involved in a home before agreeing to them.

Frugal Living and Food
• Purchase sale items at the store.
• Buy basic ingredients rather than ready-made or pre-packaged items.
• Compare unit prices of similar products.
• Eat out less. Packing lunch and snacks is a good alternative.
• Join a food co-op.
• If eating out, look for discounts or specials in advance.
• Eat sweets or drink alcohol in moderation.
• Instead of drinking juices, teas, or sodas, drink water instead.
• Cook food ahead.
• Eat less meat.
Frugal Living and Clothes


• Try to have a more minimalist wardrobe with pieces that go match well.
• Avoid being in situations where window browsing can happen.
• Stop impulse shopping.
• Only purchase bargain clothing, and only do it when it is necessary.
• Look for any online coupons or promotions that may be available.
Frugal Living and Entertainment
• Get rid of cable.
• Use a library card and borrow books and movies.
• Look up free entertainment, for example, days of free admission to a museum.
• Use coupon sites to take advantage of special deals for various activities.

Other Tips for Frugal Living
• Cut off a cell phone line.
• Save energy and gas to have lower monthly bills.
• Learn to trim or cut your own hair.
• Wash clothes less frequently and let them air dry.
• Make an attempt to stay healthy as a preventative measure.
• Purchase generic prescriptions whenever possible.

Compound Interest

Compound Interest

What Is Compound Interest?


Simply put, compound interest is the interest that is earned on interest. When interest is put on a principal, it adds to the total sum of the principal. The next time interest is put on the value, it is including the principal as well as the previously earned interest, which becomes compound interest.  This is different from simple interest, where the interest is cannot compound since it is not included in the principal.
A compound interest rate relies not only on the rate percentage, but also the frequency of compounding. When calculated, it can give the yearly rate of compound interest, also known as the annual percentage rate or effective interest rate. Not only does compound interest applies to certain savings, such as the balance in a bank account, but it can also be used on a loan.
In legal contracts involving compound interest, the compounding frequency must be disclosed. The rate can be annually, semiannually, quarterly, monthly, or even daily. The periodic rate is one way to look at the effect of compound interest.
This is the interest that is charged for the period and then divided by the principal. As mentioned, the effective annual rate is another effective way to look at the rate of compound interest in order to see the total accumulated interest of a year divided by the principal value.
Effective annual rates are a more useful way to measure and compare compound interests because they help normalize the different uses of compound interest rates and allow for easy comparison
In order to calculate compound interest, a simple equation can be used. The total amount accumulated is equal to the 1 + the percentage of the annual rate of interest, all raised to the power of the amount of years in question and then multiplied by the principal.
An easy way to estimate compound interest is through the Rule of 72.
Dividing the number 72 by the interest rate of return is a quick way to determine roughly how much time is required to double the amount of the investment. For example, if the expected rate of return is 8%, in 72 divided by 8, or 9 years the investment’s value will be doubled.
Many government agencies, such as the United States Securities & Exchange Commission also provide compound interest calculators online to easily calculate the interest that will be earned over a given time. All that is required is the principal amount, interest rate, compound frequency, and the number of years.

Cost of Living Index

Cost of Living Index

Changing Prices: Cost of Living Index


A cost of living index is a hypothetical price index that compares and measures the relative cost of living in regions or different times. The useful purpose of a cost of living index is its ability to measure the differences in the price of services and goods. It also allows for other items being substituted as prices vary.
There are a variety of methods that have been created in order to approximate a cost of living index, which includes different methods that allow substitution between items as relative prices change.
A cost of living index can affect many different things, including pension benefits, employee contracts, and government entitlements like Social Security. Often, the cost of living can cause adjustments to salaries annually based on geographic location.
Sometimes there are also yearly escalation clauses found in employment contracts can include future or retroactive percentage increases in salary which is not based on a cost of living index. These negotiated increases in salary are informally called cost of living increases or cost of living adjustments due to their similarity to other increases related to externally-determined indexes.
In the United States, there is the Consumer Price Index, which is derived from the idea of the cost of living index. The difference between the two is that the cost of living index measures changes in amounts that consumers spend over time on things such as clothing or food, but having a complete cost of living index could go further beyond this aspect and also describe changes such as environmental or governmental factors that have an effect on the well-being of a consumer.
The Consumer Price Index is a statistical estimate made based off the prices of a section or sample of a given item whose costs are periodically collected. Further divisions of sub-indexes and sub-sub-indexes are then generated for different categories as well as sub-categories of services and goods, being grouped to create the overall Consumer Price Index with weight adjustments reflecting their portion in the total of the expenditures by consumers.
It is one of many price cost of living indexes created by various national statistical agencies. The yearly change in percentage in the Consumer Price Index is used as an indication of inflation. It can be used to adjust for the effect of inflation in the actual value of salaries, pensions, wages, monetary magnitudes and price regulation in order to see changes in the actual values.
In most countries, the Consumer Price Index, as well as the USA National Income & Product Accounts and the population census, is one of the most carefully observed national economic statistics.

SEC Seeking to Halt Scheme that Raises Investor Funds under the Guise of the JOBS Act

SEC Seeking to Halt Scheme that Raises Investor Funds under the Guise of the JOBS Act

 

The United States Securities and Exchange Commission announced fraud charges against a Washington State-based company and its owner for defrauding investors with claims to raise billions of investment capital under the JOBS Act and invest it exclusively with domestic companies.

The SEC alleged that Daniel Peterson and his business USA Real Estate Fund 1 guaranteed investors that they could procure considerable returns from an upcoming offering in a product backed by prominent financial companies. Peterson told investors that the 2012 JOBS Act would allow him to raise billions by advertising the offering to the American public, and produce significant profits for early investors. Mr. Peterson took advantage of his investors’ sense of patriotism by promising to invest the funds of the offering in exclusively American companies, and help assist the state of Washington in their economic recovery.

The SEC alleges that Peterson utilized investor money for personal expenses, and is continuing to solicit investors in his scheme.

“We have brought these charges to stop Peterson’s illegal activity before his fraudulent plan picks up more momentum,” said Michael Dicke, the Associate Director in the SEC’s San Francisco Office. “The American JOBS Act is intended to aid small businesses with their capital raising efforts, not to legalize fraud or provide unscrupulous entrepreneurs with the right to make fraudulent claims to dupe investors.”

According to the complaint filed in a Washington federal court, Peterson sold common stock in his fund from November 2010 to June of 2012 to more than 20 investors in Washington and five other states. Through e-newsletters and e-mails, Peterson claimed that he was preparing to raise billions in a subsequent offering of “preferred” securities, which he claimed would yield 10-year returns of up to 1,300 percent. Peterson then claimed that two prominent financial firms had partnered with him to bring this offering to the marketplace and that the firms had conducted proper due diligence on his fund and were in the process of structuring pricing models and sales agreements.

All of Peterson’s claims were false; he never created an investment product, the stated returns were made up, and he has never had any affiliation with any Wall Street firm to underwrite his purported offering.

The SEC claims that Peterson used investor funds to pay his rent, entertainment, food, vacations and luxury vehicles. Peterson also is alleged of using investor funds on clothing, luggage, and expenses at a Las Vegas casino. 

Broke Doctors: Wait, What?

Broke Doctors: Wait, What?

 

 
As a considerable number of doctors struggle to keep their practices afloat, some are buckling under finance woes and pushed into bankruptcy. 
 
A bankruptcy filing among those in the medical field is a trend that has accelerated in recent years industry experts say, with potentially crippling consequences for patients and doctors. Some doctors are still able to keep their practices open post bankruptcy, but for others, the filing represents a career-ending event. 
 
Chapter 11 bankruptcy filings by medical professionals have spiked recently as noted by Bobby Guy, the co-chair of the American Bankruptcy Institute’s health care committee, who is responsible for tacking bankruptcy trends tied to distressed companies. Guy claims there were at least eight filings in the past couple of weeks, which he remarked as “highly unusual.”
 
Just five years ago, Florida-based bankruptcy attorney David Langley did not have a single medical professional as a client; however, since then he has handled at least six bankruptcy filings involving doctors. Two current clients—an OB/GYN and an orthopedic surgeon—also are in the midst of filing for bankruptcy. 
 
None of Mr. Langley’s clients were facing malpractice suits that forced them into dire financial situations; in fact, all regarded as top-notch doctors.
 
The struggling economy has taken a toll on doctors’ revenue as consumers cut back on elective procedures and office visits. Doctors also point to the shrinking insurance reimbursements, the rising costs of malpractice insurance and fluctuating regulations as impediments to maintain a steady practice. 
 
Primary care professionals are also facing similar challenges. Langley remembers one client, a solo doctor whose patients lacked insurance and were mostly on Medicare. As the economy weakened in the wake of the recession, fewer of this doctor’s patients could afford to make visits. As a result, cash payments and reimbursements plummeted. To come up with cash to keep the practice afloat, the doctor was forced to take a second job at a local hospital. The extra income; however did little as the doctor’s debt ballooned. 
 
Two years ago, state tax officials showed up at the doctor’s office to shut the clinic down. The doctor called Langley and was able to file an emergency bankruptcy suit online while the officials were pacing in the waiting room. The doctor gave the officials the bankruptcy case number, and they exited without closing the clinic. 
 
A similar medical professional was on the brink of bankruptcy in 2011; by 2010, she lost almost half of her patients causing her annual revenue to drop nearly 30 percent. This doctor hired Guy and was fortunate enough to restructure her debt and keep her business going. 
 
Every day since the filing has been a struggle, however. “Every time payroll comes around, I wonder if we will be able to keep this up,” she said. “I try not to think too much about it because it paralyzes me with fear.”
 
Source: CNN
 

Diversified Investments

Diversified Investments



Why should I diversify my investments?
Every investor should diversify their investments to manage risk.  This means investing in various assets across markets as well as different assets within the market and reducing the amount of investment in one asset to invest in another.
How does diversifying differ from hedging?
Hedging and diversifying are both risk management strategies in investing portfolios but have significant differences.  For one, hedging allows profitable investments to be leveraged against negative assets thus having the profitable assets compensate for losses on riskier investments.  Having insurance would be one example of hedging against a possible risk.  Diversifying is different in that the amount in an investment is reduced to purchase another investment, thus spreading risks through multiple investments.
For instance, in diversifying:
You own 50,000 shares of Stock A valued at $1 per share, for a total value of $50,000.
To diversify, you sell 20,000 shares of Stock A and use the $20,000 proceeds to buy shares in Stock B and C.  Stock B is valued at $2 a share and you buy 5,000 shares.  Stock C is valued at $.50 and you buy 20,000 shares.
You now have a diversified portfolio that manages risk by splitting the investments into three assets that will gain and lose value independent of each other.  Hedging compensates for risk through the sale of stocks from competitors or other relatively risk-free investments.
 How do I diversify?
The simplest way to diversify is to buy other stocks strategically.  You will generally want to avoid stocks in an industry similar to the primary investment as losses generally spread through an industry as a result of news affecting the entire industry.  It is unlikely that all stocks in a diversified portfolio will fall but one single stock or stocks invested heavily in a specific industry possess significant risk for the typical investor.  It will sometimes be best to see the aid of a financial advisor if there are familiar with stocks that they can invest in to diversify their portfolio.  The financial advisor will also be able to determine “risk parity,” which is the comparative risk of all assets in the portfolio and suggest ways to improve parity to the benefit of the client.
How will a diversified portfolio fare in poor market conditions?
Many studies have proven conclusively that most portfolios with multiple, diverse assets faced a lower standard deviation in annual returns, reflecting the relative stability diversity provides.  The more stocks in a diversified portfolio, the lesser the impact of the stock, negative or positive, on the overall portfolio.  Diversification of assets is almost certainly one of the best ways to manage risks outside of hedging, which will usually require the time and expertise of a financial advisor.
All investing carries risk and one should only invest when they understand these risks and have knowledge on their investment.  If the prospective investor cannot identify company or industry then there is no hope that the investor will be able to make an informed and ration investing decision.

Forex Signals

Forex Signals

Many Forex traders rely of Forex signals services to alert them on changes or possible changes to “pips” that represent potential profit and loss opportunities.  This sort of micro analysis of the Forex market that benefits day traders is generally provides by third parties that use a combination of statistical and mathematic projections as well as professional expertise to send warnings and notifications, usually through SMS to traders that subscriber to the service.
How to evaluate a good Forex signals provider
As is the case with all investment services, be skeptical of claims made by the service and promises of guaranteed profits.  You also need to be skeptical of claims that promise to increase your investments by a significant percentage with only a relatively minor initial investment.  These numbers generally do not reflect the average investor’s experience.
You will need to study the methodology by which the signals are determined to understand if the Forex signals are right for you.  The best Forex signals use a clearly defined and logical projection model as well as the input of professionals in Forex trading.  Predicting the market with any level of accuracy is difficult, if not impossible.  A good Forex signals provider will acknowledge this and provide you with the opportunity to review their recent track record in evaluating the market.  Good Forex signals providers will explicitly warn you about the risks of investing and will promise to be nothing more than a helpful guide rather than the holy grail of Forex day trading.
What factors are usually taken into consideration with Forex signals?
Lucky for the investor, there are only a few major currencies in the Forex market.  This means that the typical trader will only need to focus on developments in the US, Canada, Eurozone, Great Britain, Australia, Switzerland and Japan.  Any other currencies are risker and less common investments that require special attention.  Political and economic trends are as important when determining Forex signals as mathematical projections important.  As such, national bank movements such as cutting interest rates will have a measurable impact on the pips of a currency and the Forex signals need to reflect this.  The investor of course, must also be aware of such important news and rumors and cannot rely on Forex signals alone when engaging in day trading.
What services to Forex signal organizations provide?
When investing alone, the individual Forex day trader must determine where and when to exit and enter a currency market.  This is of course a daunting task and here is no right answer.  Many Forex signals providers will determine appropriate entrance and exit parameters and recommend that the day trader follow them.  This is of course to the discretion of the trader to follow this advice.  Many traders will find the best way to take advantage of Forex signals is when programming those recommendations into an automatic Forex trading program.  Therefore, they will be able to take full advantage of the Forex signal and act quickly before the opportunity evaporates.
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