What can you do about blemishes on your credit report!

You be surprised how ignorant people are about the importance of their credit report. No, they do not teach personal finance in public school. To banks, loan companies, and retailers, it is important that you as a consumer do not know your rights when it comes to your credit. If you did, you the consumer will not “shop until you drop” using your credit card. You might manage your credit meaning that you may not buy things on impulse at the store.

A woman approached me recently, telling me that she could not buy anything on credit. She has not used her credit for the past 10 years because she could not pay off her bills. Instead, she did not buy anything on credit knowing that her debt would fall off her credit report in 10 years. But she did not know that now she has no credit history, meaning that she has to start creating credit all over again. That means that she cannot buy a car, home, and in many places rent a place to stay.

I talk to other people who walk around saying that they know their credit is bad. But they don’t want to look into how to fix it to make it better. They sometimes decide not to use credit for years thinking that they are getting away with something. Then one day when they go to rent or buy a place to stay or get a car, they find out that they can’t do it without a co-signer.

You be surprised how many people come to me wanting me to co-sign for a loan. I tell them quickly to go see their banker because I am not a bank. You would also be surprised how many people think that they have a right to my money and get upset when they do not get it. My initials is DLW, not ATM!

One business man who I knew in passing called me up wanting me to give him a loan for $10,000. He also went on to tell me that he owes his brother 10s of thousands of dollars already and can’t pay him back. So I was wondering if he thought that I am just retarded, stupid, or just crazy. Why would I want to lend (knowing that it will end up being a gift) him money?

http://lifehacker.com/how-can-i-remove-blemishes-from-my-credit-report-1401854733

Click on the above. It is an article telling you how to fix your credit. No, you can’t make a phone call and expect it to be fixed in one day. But for the people who want to increase their credit score, here is a strategy to do just that.

How you can make money by saving money!

I am going to tell you how to make money by watching your spending. Years ago, I could not figure out why my phone bill kept going up. So I went over my bill item by item. I found out that I was paying for some things that I did not want, did not order, and did not need. It took me two months to get that stuff off my bill. From then on, I examine my bills every month.  I do not order things that have a hidden bill attached. This short video will tell you all about it.

You may be among the one in four Americans who fell victim to deceptive charges in the past year. Financial Expert Farnoosh Torabi explains ways to avoid these unwanted charges.

http://finance.yahoo.com/video/playlist/financially-fit/finfit-top-6-deceptive-bill-230000320.html

Do you know that some bugs can destroy your home? Some can make you sick. Yet some can make you itch and break out all over your body including your face? Here is a short video that explains all about it.

Unwanted creepy-crawly house guests aren’t just pests. They can cost thousands of dollars in damage and even spread illness. Financial Expert Farnoosh Torabi gives pointers on how to prevent five of the biggest pests to your home.

http://finance.yahoo.com/video/playlist/financially-fit/finfit-5-biggest-pest-threats-170000997.html

 I learned in “Purchasing Policies and Procedures” class in college that you can save up to half the price of an item by reselling the item when you are done with it. For example, you can buy a car for $20,000 then in 6 to 10 years resell the car for $6,000 to $10,000. You can use that money to purchase something else. You can do the same with washers and driers, baby clothing, and electronics. Here is a short video that explains how to make money in this manner.

 Financial Expert Farnoosh Torabi gives five simple ways to save more than $1,500 in a year.

http://finance.yahoo.com/video/playlist/financially-fit/save-1-500-100000406.html

What Do You Know About Bond Investing?

Stephanie Ann Williams Tulloch who had a bond portfolio from birth. She went to community college then to a four year college financed by her bond investments. Her first A1 new car was financed by bond investments at high school graduation. Her and her husband made a down payment on their first home using the remainder of her bond investments. The bad news, she went on to get her MBA, that was financed by her income from working. But she did open an IRA and she is investing in non-investment grade bonds for her retirement 35 years from now.    

One of my readers told me that I only talk about bond in my blog but talk very little about other investments. I replied, “Why do you think my blog is called BOND INVESTMENTS.”

I think it is time to take a test to see what you know about Individual bond investing.  I notice some readers are still confused when it comes to this subject, so I want to help diminish the confusion.

1.            A corporate bond is an IOU that means that the corporation borrowed money from the lender. T or F


2.       ABC 7% of July 2, 2057 bond usually means that ABC Corporation will pay the bondholder 7% of the principal of the bond with a final payment of principal and interest on July 2, 2057. T or F  


3.      ABC Bond Fund and ABC 7% of July 2, 2057 have the same interest payments, ratings, risk, and maturity dates. T or F


4.      A Bond Fund matures at a future date? T or F


5.      Common Stock in ABC Corporation may or may not give a dividend. T or F


6.      A Corporate Bond can be bought and sold more easily if it was marketed on a Bond Exchange. T or F


7.      If ABC Corporation went out of business, the stockholder would have a better chance of getting any money after liquidation of the company than the bondholder. T of  F


8.      Corporate bonds are guaranteed by the state or the US government. T or F   


9.       ABC 7% of July 2, 2057 (issued at $1,000 each) if bought at $600 and paying interest every January 2 and July 2 would pay the bondholder an appreciation of $400 profit at maturity. T or F


10.  ABC 7% of July 2, 2057 (issued at $1,000 each) according to the indenture will pay bondholders $35 on January 2 and $35 on July 2 of each year until and including July 2, 2057. T or F  

These are the things that you must know if you are going to be a corporate bond investor. You can make good money in bond investing if you know the fundamentals.  I have been making no less than one percent a month since the year 2008. I have more than tripled my money in my IRA in that time investing primarily in corporate non-investment grade bonds. 

Damine, Daniel, and Stephanie on vacation in Pittsburgh, Pa. Because of bond investments, she learned enough in college to bypass US red tape, go to Jamaica and bring back a husband. Plus she started a business making a 6 figure salaries.  Daniel is now 8 years old and runs in the USATF national arena. He is already known around the world for his track and field experience. He also has investments directed at his college career in 10 years. The bad part, they will not give me any money. 

This is what an aggressive bond investment program can do for you and your family. If you look at this as me bragging then you will never learn anything from what I tell you. If you look at this as a model for what you can do with financing your life then you will be better off. All it takes is the will to do it. You make your plan and work your plan!

Here are your answers: 1)T; 2) T; 3) F; 4) F; 5) T; 6) T; 7) F; 8) F; 9) T; 10) T 

If you got zero or one wrong, you should be investing in bonds because you know what you are doing.

If you got two or three wrong, you may be a bit confused about the fundamentals but can overcome this by reading back issues of my blogs on this subject.  

If you got more than three wrong, you need to read up on the subject by reading back issues of my blog. At this point, any broker, banker, or insurance salesman can rip you off due to lack of investment education.

 

 

Planning Your Life Finances

In 1980, I had my BS and AAS degrees, my house, and new car. It was time to pay off my debt. Nearly all of us have some kind of debt, whether it’s a mortgage, student loans, medical bills, credit cards, or even a loan to our father-in-law we still need to pay back. Let’s look at freedom from debt and think about how we can get out of debt faster – or at least make sure we’re managing the debt we have most effectively:

• Some mortgages are definitely subject to being renegotiated. If you feel that your mortgage payments are unreasonable, your financial situation has changed, your rate is higher than current market interest rates, or other factors have made your mortgage too burdensome, look into refinancing your home mortgage.

• Whether undergraduates or PhD candidates, the one thing many students have in common is the student loan debt they’re accumulating. And like credit card debt, the traditional advice has been to pay off the highest interest loans first, especially if they’re variable interest rates that can rise or fall. One course is to consolidate private loans, but do so only if you have an excellent credit score, since many consolidation loans carry variable interest rates.

• Credit card debt, since it is usually the highest rate and nondeductible, is traditionally the debt financial advisors suggest tackling first, and with good reason. High interest rates and finance charges can keep you from putting money away toward retirement, a home, buying the car of your dreams, your children’s education or countless other significant expenses that may have to wait until you get “out from under.” Look at your credit card debt honestly and see if you can find more effective ways to manage it, whether it’s asking your card issuer for a lower rate, trying to get a better balance transfer rate, or credit consolidation.

Explore your options for more freedom from debt in these areas and you might be surprised at how relieved you’ll feel. You will also be surprise that you will have more money to do other things with.

Did you receive America’s wakeup call?

Most people cannot see danger unless it is right in front of them. The Roman Empire never lost a war. If that is the case then why did the Roman Empire dissolve into several different nations?  It was said about Great Britain only 100 years ago that the sun never sets on the British Empire. By 1945, it was disintegrating.  The USSR had one of the best military machines in the world. Their empire ran from the Baltic nations in Europe to the Pacific, taking up all of Northern Asia and part of Eastern Europe. That empire imploded only 45 years after defeating the best land forces Europe ever produced.  All three of these empires collapsed from within. The common denominator was its debt and its ability to raise taxes to pay its debt. Most empires sooner or later have this problem and the United States is next.

Just because your country has nuclear weapons does not mean that you are economically powerful. The USSR had nuclear weapons and they disintegrated. Nuclear weapons are good for threatening other nations but a nation cannot use them. If you destroy another nation with these weapons then who is going to pay for the war? You killed the people and you contaminated the land. So you can’t use them and expect the victims to pay your country for the cost of the war and give your country free labor, land, and goods. Plus the fall out for these weapons will fall over your country and kill your own people, contaminate your land, and cost your country more money in cleanup cost.  

   
What does this mean to you? This means nothing if you have your head in the sand. If you believe that the United States economy is still growing and that your best days are ahead of you then no matter what I say here, you will disagree with. But if you see the writing on the wall, you must start to prepare yourself and your family for what is just ahead of you.   

http://www.usdebtclock.org/ 

How much debt do you think we are in?

At the end of the twentieth century, the United States had a $5 Trillion surplus. The problem, to keep your standard of living, your empire must continue to grow. The United States started on the East Coast of the United States in 1776. It bought the rights to take over part of the land west of the Mississippi. It fought the Mexicans and took over the western part of North America. It bought the right to take over Alaska from Russia. The US went to war against Spain and won the right to control the Caribbean and the Pacific. The Kingdom of Hawaii was the next target.  Then we had WW I and WW II. WW II gave us the opportunity to move into and control Europe and Japan.  At this point, 1945 to 1965, the United States was the riches nation on Earth. It came out of the war twice as rich as what it was at the beginning of WW II.

But that was not good enough. In order for the United States and its empire to continue to increase its standard of living for its people, the nation must continue to expand its control. This is why the United States moved into the Eastern Asian nations in the med and late twentieth century. This is why they moved into the oil rich Arab countries in the twenty first century.  The United States must control natural resources including the world’s oil supply in order to keep the wheels of industry turning.  This is why the United States invaded Iraq and Afghanistan.  But maintaining an emperor that must grow in order to maintain itself can’t be done. One day, that empire will run out of money just like the empires before it.  Here is why the United States had a $5 Trillion surplus 12 years ago that has now turned into a $16 Trillion debt.

If you are old enough, you notice that the standard of living of people in 1968 was better than the standard of living of people in 2008. Have you noticed recently from the way congress is acting that the strategy of spending and giving citizens a tax cut is not working? In 2013, individual taxes will go up regardless of the tax cut congress gave people. Congress is having problems funding disaster recovery projects in this country. Roads, bridges, sewer/water systems, and infrastructure in America are falling down. That is because we have no money but the government still wants to act like we do.  Just because you can borrow money does not mean you can pay for something. One day, the money you borrow will have to be paid back. 

Rome did the same type of business transactions just before people destroyed the place because their needs were not being met. Shortly after that, Rome no longer existed. The provinces governed themselves. You know them as Britain, France, Spain, and Italy to name just a few.

http://www.usdebtclock.org/world-debt-clock.html 

See what countries have higher personal public debt then see what they are saying in the news about these countries. It is not good news. 

This is why I tell you that you must change your way of thinking when dealing with finances. If you do not, you will depend on the government for your medical benefits, living expenses, and food supply.

Open a self directed IRA and buy individual high yield bonds. Save at least 10% of your income for retirement. If you have property, plant your own food. Find ways to cut back on expenses. You do not need the latest junk that you see on TV.

One day and one day soon, the government will not be able to deliver. How congress treated the Northeastern United States the week of New Year should be your wake up call.  

I Saw the Crisis Coming!

2009 Map of Poverty in the United States

After my oldest daughter finished her BS Degree Studies, married and got established, she noticed that the world around her was falling apart. She asked me how did this happen and why is she doing so well when everyone else is doing so poorly. I told her that I planned for the hard times while everyone else lived in denial.

In the 1960s, my older brother William J. Williams III went to Juniata College in Central Pennsylvania. One weekend when he came home, I read one of his books that showed how the United States was wasting its money from 1950 to 1965. The wealth of the nation was leaving this country. This wasting of money could not be sustained. This fact along with the fact that oil production in the United States peaked in 1970, was my first clue that many affluent Americans and their families will be counted among America’s poor in the future.

I had a radio program on WAMO in Pittsburgh Pa. in the 1970s and early 1980s. I also had a cable TV show on Cable TV in Monroeville, Pa. In these programs I talked about the coming economic disaster and how to invest to smooth over the waters as we pass through them. Some people actually paid attention while others called me names like “money lover”, "Mr. Money", or "miser".

A family living out of their car in America. The husband cannot find work.

Thirty years later, many of the people who made fun of me found that their children are homeless, very poor, and have no source of income. The people that made fun of me have little retirement money.

Below is the introductions to a three part series on why we are in one of the largest and most in depth depressions in the Post World War II period. The program also give evidence that the world is moving toward economic collapse. It does not matter if you live in the richest country or the poorest country, the hammer of economic collapse will be upon you.

Women living in the streets with no home or food in America.

http://www.youtube.com/watch?v=su_DZWxC3lU

Addicted to Money: Part 1.

This report is the program for anyone who wants to know how the financial crisis came about, what it means for us now, and what we can do to create a sustainable economy. This three‐part series is a survival guide for the New Economy, presented with wit, charm, and incisive appeal by David McWilliams, a young economist who talks just as candidly to the most influential and powerful players in the global economy as he does to ordinary people.

http://www.youtube.com/watch?v=FYEX-PEYtQ0

Addicted to Money: Part 2.

David McWilliams reveals how Australia and many other nations have become one‐trick economies, vulnerable to the inevitable sudden shocks that are a by‐product of a fragile, globalized economy. In Australia's case, they have become totally dependent on Chinese resource demand, putting their future in the hands of a ("Communist") party‐state dictatorship with a very big check book says McWilliams. China in turn has marched itself up an economic cul‐de‐sac, becoming overwhelmingly dependent on demand for its exports and in the process accumulating masses of potentially volatile US dollars.

http://www.youtube.com/watch?v=zLW-xJZwnsg

Addicted to Money: Part 3.

In the final episode of Addicted to Money, David McWilliams argues that the convulsions of the financial crisis are small compared to the imminent threats ahead. We are facing severe shortages of the key resources that fuel the global economy. What makes our civilization possible: oil, water, and food. Ultimately, these are all energy issues, and until the energy dilemma is seriously addressed here, there can be little optimism for sustainable long term growth. We have reached "The Great Disruption", the moment where our old economic model can no longer be sustained.

When I was born, Earth only had 6 billion people. Today Earth has over 8 Billion people. Food production around the world must keep pace with the world population growth. Any disruption in food production could cause a serious spike in food prices. These disruptions can take the form of weather related disasters such as floods, hurricanes, and droughts. If you have noticed, we had such problems in 2011. In my local area restaurants, food prices have gone up an average of 36.53% in 2012. Keep in mind with all this water around the planet, only 10% of it is drinkable. If society does not manage this water, the people and animals on this planet could be in serious trouble.

This all means that you and your family better start thinking "outside the box" and planning for the future to sustain you and your family. That means that you can no longer afford to buy and do things to please the masses. If you do, you or your family may end up like the people above.

“back-to-school” Shopping for the Frugal Parents

Heather Larson of Bankrate.com wrote an article, “6 tips for frugal back-to-school savings.” She said, “Parents will spend more than $600 to get one child ready for school this year, according to the National Retail Federation's annual survey.”

Laura Rowley, finance columnist at Yahoo, says some parents can do it for half that by sticking to a back-to-school savings strategy and being proactive with sales and wardrobe recycling.
Bankrate.com asked professionals from around the country to weigh in on how best to achieve back-to-school savings this buying season. This is what they said.

1. First before you buy, take inventory

Choose a day before you begin to shop and go through your kid's clothes to see what you can salvage from last year, says Nina Restieri, founder of momAgenda.com and an organizational expert in Greenwich, Conn.

First, prepare an inventory sheet by dividing a sheet of paper into four columns with the child's name, the article of clothing, the quantity you have and how many you need to buy.

Then, remove everything from your child's (children’s) closet and drawers; have them try on each piece of clothing and whatever fits goes on your inventory sheet.

Restieri suggests having trash bags handy for items that need to be discarded and for clothing you can donate to charity (other relatives) or sell in a yard sell (online sites). That way, you're cleaning out closets while creating some real back-to-school savings.

"With school supplies, lunch boxes and backpacks, I suggest starting fresh each year," says Restieri. "For us, the backpacks and lunch boxes in our house barely last one school year."
And remember, school supplies usually change each year according to the grade and teacher preferences.

2. Set a school budget and stick to it

Consider which items are non-negotiable like the class list of required supplies, says Kim Danger, frugal author and creator of mommysavers.com. Clothing, shoes, lunch boxes and backpacks allow for greater flexibility.

Past spending is a good starting point to this year's back-to-school savings. Look at last year's credit card statements and check registers to get an idea of what you spent on back-to-school shopping last season. I think that is a clue to you keeping records of spending for next year’s budget.

"By seeing what you spent in the past, you can challenge yourself to find better bargains this year," says Danger. "The exact budget will vary from family to family. You just need to spend within your means."

A good way to make sure you stay within your budget is to use the envelope system and put the cash you've allotted for each child into separate envelopes. Danger says cash easy to understand. Even younger kids get it that once the cash is gone, no more money can be spent.

Danger suggests using this opportunity to teach older kids how to budget by giving them a set clothing allowance so they can benefit from their own back-to-school savings.

3. Make a list of your children’s needs

Rowley recommends using your clothing inventory as a start to back-to-school savings by creating a shopping list from it of what you need to buy.

"For clothing, focus on five to seven well-made, easy-care basic items and change the look by mixing in a few less expensive pieces," she says.

A wardrobe for a girl might include two pairs of jeans, a pair of khakis or black pants, two shirts, a sweater, and a skirt or a dress in a basic color. Mix in low-cost, colorful T-shirts, tank tops to wear under the shirts, scarves, tights, and belts, Rowley says.

"Kids usually don't outgrow the accessories," she says. "Also, look for summer pieces -- maybe a short-sleeved dress that can stretch into next season by adding leggings and a sweater."

Use your list as a checklist while shopping. You don't want to wander into a department store without a back-to-school saving strategy and watch your child fall in love with a $60 T-shirt, Rowley says.

4. Communism or Buy in quantities may be the answer

"Buying in bulk can be a fantastic money move and a time-saving godsend," says Kristen Hagopian, author of "Brilliant Frugal Living."

Certain school supplies get burned through at a ridiculous rate over the course of the school year, says Hagopian. Depending on your child's age and class description, he will use lots of pens, pencils, paper, notebooks, printer paper, computer disks, markers and paints. While the additional outlay of cash now might not seem like back-to-school savings, you'll have cheaper supplies on hand for several months if you buy in quantity.

"No more rushed dashes to the store for another pack of paper. You'll save money on gas and you'll save the hassle," says Hagopian.

Buying in quantities at your local warehouse store and sharing the bounty plus the cost with friends also helps the budget. Pasta, meat, ready-made foods, desserts and produce can be found in large quantities at Costco and Sam's Club, and can easily be distributed to a group of friends who can share the cost of school lunches, Hagopian says.

5. Tap the Web

Use comparison-shopping engines to find the best bargains online, suggests Michael Rowland, Internet marketing manager at Solid Cactus, a company in Shavertown, Pa., that helps small businesses sell online.

"Online retailers are going to be aggressive in their efforts to win your business. So one of the best ways a savvy shopper can capitalize on the best deals is to use (comparison-shopping engines)," says Rowland.

Each engine is different -- from the products they show to how they sort the products. Some are better for apparel while others have the best buy in electronics. Rowland says to get the best use of a shopping site, be specific in your search.

"Make your buying decision based on price, rating and shipping costs," says Rowland. "Always look for free shipping."

Rowland suggests starting with these sites: Pricegrabber.com, Shopping.com, Nextag.com, Google.com and Amazon.com.

If you follow the brands you use and the stores you regularly shop on Facebook and Twitter, you'll also attain back-to-school savings. Sign up for mailing lists for these brands and stores, and you'll often get instant savings of coupons, Rowland says.

6. Host a clothing swap or belong to a co-op

Another way to achieve back-to-school savings is by holding a party to exchange kids' clothing. Decide who to invite based on the ages, sizes and gender of their children, says Leah Ingram, author of "Suddenly Frugal" and the blog suddenlyfrugal.com.

If you have six friends who have children who are similar in age, you can hold a small party. But, you may want to expand it to 12 or 15 guests.

Ingram recommends leaving the children at home. That way, saving on back-to-school items can be a fun, social time for adults. "Even if 60 percent of what you take home doesn't fit, you're still getting the clothes for free," says Ingram.

Remind your guests that the clothing needs to be clean, stain-free and with no rips or tears. Ask yourself, "Is this something I'd buy at a resale store." Ingram suggests you set a minimum number of items that each guest must bring with them, like 10.

"It's like currency. You bring in 10 pieces of clothing and you should be able to leave with 10 different items," Ingram says.