Timeshare Owner: You poor Fool!

Resort on Cocoa Beach, my timeshare in the 1990s

In the med-1990s, I got caught up in the timeshare movement. I went to Cocoa Beach near “I Dream of Genie” Park in Florida and bought a timeshare. I just knew that I was going to use it every year. Cocoa Beach is next to Cape Kennedy, my favorite place.  My wife’s parents lived about 100 mile up the coast. I was near Orlando and Miami.

Well things did not work out as I planned. I divorced my wife two years later. The space shuttle program was ending and not too many launches were happening. People at the cape were being laid off and the economy went into the toilet. The worst thing was that condo fees tripled in three years.  I had to get out of the situation.  Things went from bad to worst. I found a realtor that wanted to sell the property for me. But I had to pay him up front. Once I did, I never heard from him again and I still had the property. I ended up giving the property away. I never considered buying a timeshare again.

Here are 4 tips that “Independent Financial Portal” has on selling your timeshare for you poor fools!    

If you are trying to figure out how to sell a timeshare fast, there are a number of ways that you could approach the task. Timeshares are regularly sold on the secondary market, and there are a number of buyers that are always interested. Here are a few different strategies that you can use to sell a timeshare fast.

Hire a Broker

One of the best ways to unload your timeshare quickly is to hire a timeshare broker. There are many companies out there that specialize in selling timeshares on the secondary market. This broker will take a commission from the sale just as a regular real estate agent would. She will list the property on her website and could potentially use a number of other marketing techniques in order to increase exposure to your property. She will locate a buyer and facilitate the entire process of selling your timeshare. This is one of the easiest methods of selling a timeshare, and it is also generally one of the fastest ways.

Lower the Price

The timeshare market is very competitive. There are a large number of timeshares on the market and a limited number of buyers to work with. If you want to get the attention of the buyers in the market, you need to make them a compelling offer. Do not price your timeshare high because it will usually scare off potential buyers. You need to start the price of the timeshare out low so that you will create interest. If the selling price is too high, do not count on anyone making an offer. Someone may feel as if he is insulting you with a low offer even if you might actually take much less. 

Talk to Your Timeshare Company

If you purchased a timeshare in a popular travel destination, you might be able to get some help from the company that sold your timeshare to you. Some timeshare resorts are completely sold out and have a waiting list of interested buyers. If you happen to own a timeshare in one of these properties, you might be able to sell it back to the company that sold it to you so that they can resell it to someone else. With this arrangement, you will not be able to sell it for full price, but you will be able to get something back out of it.

List It Yourself

If you do not want to hire a broker and pay someone a commission, you could potentially list the property yourself. There are many websites out there that allow people to list timeshares for a specific flat fee. You can put the property up on the website along with pictures of your unit and the resort. This is a very simple process, and it can be a good way to gain closure for your property. Many timeshares are sold in this manner, and if you price it correctly, it should move quickly. 

Financing a New Car with Bad Credit

Picture of a New Jaguar

I have been buying new cars since 1970. I have been buying used cars since 1968. The first new car that I bought was when I had no credit at all. I just got out of high school. I had the money for the down payment but I needed a cosigner to get the car. I was lucky to have a father with good credit that was able to cosign for me.  Since I knew something at the time about finances and credit, I made sure that I made all my payments on time so that I could build strong credit for future years. I am now 62 years old and will probably buy a new car in the next year. If I need credit to buy a car, I do not have to worry about if or not I can get it. My worry is at what interest rate I will be charged.

Most people do not have the small problems that I have with credit that centers around how cheaply I can borrow the money for how long. Most people have the problem of whether or not they can get the credit to buy the car. This is why I have reprinted an article from the Financial Web talking about how to buy a car with bad credit.        

Whether you have poor credit or absolutely no credit, there are several ways to finance a good, new vehicle. You don't have to be stuck driving a broken down, undependable heap; you can get financed for a car that you'll be proud to drive, even if you have little or no money for a down payment. For instance, credit unions can be quite lenient on new car loan. Join a local credit union, and after you've been a member for a few months apply for a loan. But candidly explain any credit problems that you may have. Credit unions typically tend to be more interested in your current financial situation than your past credit history. Both credit unions and banks will usually require a down payment of about twenty- to twenty-five percent of the price of the car you'll be buying. If you can afford such a down payment and the monthly payments, you'll probably be able to finance a new car through the credit union, even though your credit file may be somewhat suspect.

However, if you're refused credit by the credit union and banks as well, then try to arrange financing through a car dealership, preferably a larger one in your area. Finance companies work with virtually every car dealership, but the larger dealers generally have greater financing leverage and more options. What's more, the major car manufacturers operate their own finance companies to help their dealers sell more cars. A dealer who can offer instant financing through the manufacturer can often win a sale without the customer leaving the showroom. Many different financing arrangements are available, so even customers with damaged credit are good prospects for auto dealer financing.

Additionally, larger dealers create huge profits for their affiliated finance companies, so they oftentimes can command preferential treatment, including credit approval on borderline or questionable loans. The bottom line is that if the car you select matches what you can afford, there's probably a program available that will get you financed.

Before you select your car, ask the salesman or credit manager about the down payment and interest rate you'll be paying (they'll both be dependent upon your credit rating). The finance company will give the dealership's credit manager their minimum terms, but some dealers may charge a higher interest rate and pocket the difference, especially if they suspect that you've got few other options. Nevertheless, negotiate everything – vehicle price, interest rate, and down payment. If you attempted to obtain financing through a credit union or bank, you'll have some basis for comparison, even if you were rejected. Needless to say, with poor credit you won't get the most advantageous financing, but you may find the car that meets your needs on terms that you can afford. And after you've built a history of on-time payments (usually twelve- to eighteen months), you'll probably be able to refinance into a better rate.

If you can't obtain financing through the dealership, you might consider a cosigner that will pledge his or her good credit for your loan. Lenders will overlook your poor credit record when you have a cosigner whose credit is strong. But make absolutely certain to be faithful to your obligation, because if you default you'll put at risk the cosigner's credit, and possibly your relationship with the person that trusted you with his or her good name.

http://www.finweb.com/loans/financing-a-new-car-with-bad-credit.html#axzz2bxfi7ZNL

The Independence Financial Portal – Financing a New Car with Bad Credit

The Williams Plan for the Young Investor

The Trading Desk of a Financial Firm

In 1976, I developed what I called the Williams Plan. That plan took advantage of dividend paying stocks. Many people invested in portfolios designed to take advantage of dividend, often combining solid companies that pay a slightly above average dividend with some more risky, higher paying stocks in order to “juice” the overall yield. Most of these stocks are utility companies.

The problem with that strategy was made clear on May 22^nd, when Bernanke first started talking about tapering. Dividend payers, especially those with high yields, got crushed when the prospect of a higher interest rate environment emerged. Master Limited Partnerships (MLPs) such as Mark West Energy (MWE) brought home this point. MWE and other MLPs don’t pay interest as such. They distribute nearly all profit to shareholders meaning that they have a high payout ratio. The high on the MWE chart was achieved on May 22^nd and the stock dropped around 15% in the following month before recovering a little in the last few weeks. Other high yielding stocks followed the same pattern.

Chimera Investment (CIM) is a mortgage REIT. This stock also dropped around 15% in the month following Bernanke’s announcement. Once again, it has since bounced back in the direction of recovery.

Daniel and David will be ready to use their investments in 10 to 15 years. The objective, money for books, transportation, eating expenses, and lodging at a trade school, college, or university. 

If you did add these or similar high yielding stocks to your portfolio in order to bump up overall yield, you should consider using this bounce back to sell them. But if you are using the Sharebuilders Plan to reinvest dividends and invest more cash over a 10 year or more period, then I think you should stay with your program.

 The initial move down was on the possibility of something. When that something actually happens, and most believe it will, the drop is likely to be repeated. Add to this the possibility that the dividend paid could be cut. It is hard to escape the feeling that, for now at least, high yielding instruments such as mortgage REITs and MLPs are in interest rate risk trouble.

The higher quality dividend payers that you own, however, should be held on to. These are companies with moderate or low payout ratios (85% or below). In a stock market correction, high quality dividend paying stocks are likely to outperform most categories. Many have a history of growing their dividend over time. I agree; not only does this give an indication of a solid, growing company; it also protects the percentage yield against inflation.

Stocks such as Exxon Mobil (XOM), General Electric (GE) and Procter and Gamble (PG) may not be exciting, but yields of 2.69%, 3.1%, and 3.0% percent respectively are decent given the safety of the company. They should hold their own in rising inflation and interest rates.  XOM also has a dividend growth rate of 13%, according to VectorVest. GE and PG are good investments with 8% and 12% respectively. Even after inflation, this results in increased income each year.

Arch Coal Inc 7% of 06/15/2019

Arch Coal Inc. is a corporate bond that matures on June 15, 2019. It is rated B3 by Moody’s and B- by Standard and Poor’s. The CUSIP number is 039380AE0. The recent bond price was $937.00. The bond gives $70 for a 1,000 bond. That is a yield of 7.47%. The bond has about 5 years and ¾ to maturity. At this price that is about $402.50 plus $63.00 appreciation or $465.50 for a $937.00 investment.
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U.S.-based Arch Coal is one of the world's largest coal producers and marketers, with 141 million tons of coal sold in 2012. The core business is supplying cleaner-burning, low-sulfur thermal and metallurgical coal to power generators and steel manufacturers on five continents.
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Arch is the most diversified American coal company with mining complexes across every major U.S. coal supply basin. In total, they represent 15% of America’s coal supply from their mining complexes in Wyoming, Utah, Colorado, Illinois, West Virginia, Kentucky, Virginia and Maryland.
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They control a vast domestic reserve base of more than 5 billion tons.

Arch Coal holds the most diversified position among U.S. coal producers, allowing them to serve customers from every major coal supply region.

Arch Coal stock is traded on the New York Stock Exchange under the ticker symbol ACI.