Recently I read an article in Business week about hackers targeting small business bank accounts and stealing thousands of dollars from their online accounts. As per stats, Cybercriminals steal $1 billion a year from commercial accounts at banks, which often hold companies responsible for losses. It has become big concern for both banks and businesses. […]
Archive for the ‘Finance’ Category
Onlinefraud – Business Bank Accounts are not covered…
October 21st, 2011 
Vijaianand 
Posted in Banks, Cyberfraud, Finance, Identity Theft 
Tags: Banks, business accounts, cyberfraud, onlinefraud 
No Comments »Optimistic Outlook on US Economy from TRP Chairman & Why US Bonds are way to go?
September 7th, 2011 Vijaianand A week ago I received an email update from TRP(TRowePrice) Chairman on the current market condition since lots going on these days. We all witnessed the wild roller coaster of the stock market last month after debt crisis in Europe, dead lock condition in the house on rising debt limits, slower economic growth and unexpected employement report.
Even this week, the market is still shows lots of sign on further downward dip with no great news on the jobs growth and expectation from President to come out with magic plan to solve the issue. While we hear lot of negative news and feel pessimistic about the future market condition, TRP chairman’s optimistic outlook with lots of evidence for slower future growth does give little bit of hope for investors to keep on moving in chartered path instead of trying to find short term profits. Here is the snapshot of his message,
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The economy continues to face a number of headwinds amid struggling consumers, a mediocre housing market, and profound fiscal challenges at the federal, state, and local levels.
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Although the current environment is not without risk, it is different than the massively overleveraged environment that existed in 2008. Banks have recapitalized, Wall Street and consumers have reduced their debt, the housing market has stabilized, and corporate balance sheets are lastly improved.
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As a result, we believe that a “growth recession,” characterized by low economic growth and persistent unemployment, is more likely than an outright return to negative growth, or a so-called double-dip recession.
Although investors are understandably concerned about the markets and the economy, we believe that current fundamentals do not warrant some of the extreme risk aversion, and we expect markets will return to normal conditions in the next 12 to 24 months. To read the full message, Click here. Why US Bonds are way to go?
With the above message on the back drop, Investors like you and me don’t have lot of options to put your money without shacky outlook for short term. Stocks, Funds and ETF’s depends on securities which are going to be bumpy ride for sometime. If you are long term investor, go ahead and continue your path on investing in securities and diversifying your portfolio regularly since market will come back eventually. But if you want to invest for short term to achieve your short term goals, only few options are available like High yield CD’s and I series Bonds and REIT’s.
Check out this article from one of my favorite financial writer and CFP, Kevin McKinley who talks about basics of financial planning to help out ordinary individual. In this article, he goes over why Bonds are good for anyone not just for Grandpa’s and Grandma’s. With the current uncertainity in the financial market, Bonds are still valid investment path with decent return and at sametime it helps to reduce or eliminate taxes. He also shares how EE saving bonds which are still available can be used as savings for kids education.
May be it was coincedence, I also came across a blog post from mymoneyblog.com which also talks about Bonds outperforming stock market in the last decade. See the below chart posted at savings-bond-advisor.com, it shows how I Series Bonds actually beat the Stock market over the last10 year period since 1999. I was surprised but it’s true fact. Even though Stock market performed well in certain periods, I-series bonds stayed the course to yield a steady return for the overall period.
In conclusion, taking the above things into perspective, investors should always plan and invest properly by diversfying in the right assets to stay positive and make few bucks more than the inflation so you can reach your long term goals. So just look out for opportunities to invest in value stocks and don’t forget to diversify in Bonds, REIT’s as well.
Stay Positive and Stay float to weather this rough economic conditions!!!
Paying off debt is good for us and economy, Why?
July 12th, 2011 Vijaianand The financial and Subprime crisis surely bought lot of grief to our economy dragging us to an historical recession and trying to get back up but not able to find the light at the end of the tunnel. It surely caused lot of mess starting from millions of unemployment to state government to companies disappearing to state government shut downs and list goes on and on.
Obviously we have gone through many issues and lot of bad things happened over the past few years. But the crisis surely done some good things as well. As they say, look at the brighter side of the bad thing happened. The brighter side is many americans have come out of debt inthe past few years and improved their credit. It has brought back the saving habit among Americans. The financial mess does create panic among American public and helped American them to get of their financial mess by paying off of their debt and start to think about future in a better way.
As per the Business week article published this week(07/07/2011), the average U.S. credit score—a predictor of the likelihood lenders will be paid back—rose to 696 in May, the highest in at least four years, according to credit reporting bureau Equifax. Delinquencies on consumer loans have dropped 30 percent in two years, according to Federal Reserve data.
Improving credit quality gives households the ability to spend more. A rebound in spending would help the economy to bounce back. U.S. consumers have reduced debt by more than $1 trillion in the 10 quarters ended in March, according to the Federal Reserve Bank of New York. Households spent 16.4 percent of their earnings on debt payments in the first quarter, including lease and rental payments, homeowners’ insurance, and property taxes. That’s down from 18.9 percent in the third quarter of 2007, before the recession started.
While household obligations are at a 17-year low because of increased savings and lower interest rates, household debt still comes to 115 percent of income, compared with a 75 percent average from 1970 to 2000 as per Morgan Stanley executive.
Our current saving rate is still well below the saving rate of 1960’s and 70’s and way below than other countries like Japan, India where the bank system supports itself through the consumers saving deposit. But atleast now consumers are realizing the fact that debt is not going to help them and help the economy and consumers should spend less and save more.
How can they Pay off and improve their credit ?
Obviously it is not easy, gets even tough during this bad economic condition but there are always ways you can implement by tightening your belt and not stretching beyond the limit. Few simple steps you can follow to help you and your credit and the economy as well,
1. Try to be on time with your Auto, Mortgage or Credit card payments
2. Pay off every dollar you owe to any organization and aviod collection
3. Pay off high interest credit cards first and work your way down.
4. Get help from government credit counselors to consolidate debt
5. Clean up the credit report by checking them regularing
6. Don’t spend more than your Income
7. Try to save atleast 10% of your Income, Pay yourself first
8. Plan for future expenses and save for them
9. Avoid frequent visit to Restaurants and fast foods
These simple steps always will help you to be on track with your financial obligations and also make you to save money for your future.
Just Payoff debt and Save up!!