Most boneheaded financial moves of 2008

We hardly know where to begin this year -- what with the rogue traders, megalomaniac CEOs, billion-dollar losses and utter financial meltdown -- but in the end, we think these 7 offenses, and their many practitioners, are the worst of the bunch.
By Catherine Holahan, MSN Money

This is part one of a year-end wrap-up package. To read Part 2, on the year's best moves, click here.

This year, many of the brightest minds in business made some truly boneheaded moves. Some may blame the messes they caused on bad luck. Some may blame it on fear. But investors should definitely blame some of it on greed. We do.

In fact, we blame billions of dollars in losses on greed, pride, sloth, gluttony and the rest of the seven deadly sins, to remind all that great wealth and power exist side by side with human frailties familiar to us all.

Here is MSN Money's staff-generated list of the biggest financial blunders of the year, together with our best shot at explaining how people could make mistakes this huge.

Tell us: Your pick for 2008's dumbest money moves
Greed
Jerome Kerviel, Société Générale's (SCGLF, news, msgs) rogue trader.

Kerviel, a former options trader at France's second-largest bank, is this year's poster boy for risk tolerance run amok. It didn't appear to bother Kerviel when risky positions collapsed. He doubled down, then doubled down again. Société Générale alleges the 31-year-old manipulated its systems to place as much as €50 billion (about $63 billion at today's exchange rate) on market bets, many of which went bad in the end.

In January, the bank blamed a nearly €5 billion loss on Kerviel. They said he had mocked up fraudulent hedges to conceal the all-or-nothing nature of the risk he had taken on, in essence treating bank funds like his own personal blackjack stash. Kerviel maintains the bank knew what he was doing and didn't care as long as he made money. Way to be greedy, Kerviel.

Also afflicted: mortgage-backed securities traders.

But let's not let the bank off the hook. Or Wall Street. Kerviel's alleged actions are emblematic of a trading culture that turned some of the world's biggest financial institutions into casinos. Obsession with quarterly profits encouraged too much risk taking, too much leverage and too little careful research and planning for the long term. The attitude on Wall Street seemed to be that as long as you're making money this quarter, the potential for disaster doesn't matter. Not to worry about those pesky cyclical real-estate downturns.

Pride
Jerry Yang, the departing CEO of Yahoo (YHOO, news, msgs).

Any observer who read the details on the negotiations between Jerry Yang and Microsoft (MSFT, news, msgs)CEO Steve Ballmer could see that something other than Yahoo's long-term earnings potential was behind Yang's dogged refusal to accept Microsoft's $33-per-share acquisition offer.

The problem was Yang's ego. Yang wanted to keep Yahoo -- the company he built from nothing with partner David Filo -- independent, so he could be the boss. His attitude seems to have changed after Yahoo's stock went into a nose dive last summer.

Now, Microsoft and Yahoo may be negotiating again for Yahoo's search business, according to London's Sunday Times. (Microsoft, the publisher of MSN Money, declined to comment on the news.)

You can bet that the offer on the table -- if there is one -- won't come close to what Microsoft was once willing to pay. Yahoo's stock was trading at less than $12 per share last time we checked, and its market capitalization was under $16 billion. When Microsoft made its initial offer in February, Yahoo was trading around $20 per share and had a market cap of $25.6 billion.

Also afflicted: Rick Wagoner, the CEO of General Motors (GM, news, msgs); Alan Mulally, the CEO of Ford Motor (F, news, msgs); and Robert Nardelli, the CEO of Chrysler.

Is coach really that bad? Why would the CEOs of America's three faltering auto manufacturers, on the eve of asking Congress to approve billions in taxpayer-supplied aid, in the midst of a recession, each fly a private jet to Washington to meet with lawmakers?

Talk about unapologetic pride. But they ain't too proud to beg. Now it seems they have learned their lesson. After Congress rejected initial appeals for aid, the CEOs returned to D.C. in a style more fitting for folks arguing to save American auto manufacturing. Mulally, Nardelli and Wagoner drove hybrid vehicles to Capitol Hill. Their entourages also traveled eco-friendly in ethanol-powered hybrids.

And while we're at it, CNBC's Jim Cramer belongs in this category for July comments about the financial press, whom he derided as uninformed for warning of financial disaster due to subprime-mortgage-backed securities and default insurance supplied by institutions such as American International Group (AIG, news, msgs). Three months later, he was telling his audience to pull out of the market altogether after the breadth of the subprime-fueled crisis had become clear.

"It is really important for journalists to look like they are in the room with the big boys, so you talk about CDOs (collateralized debt obligations), you talk about subprime -- it's a fascination with trying to prove that you know as much as the hedge fund managers," Cramer said in July. "Fortunately, I was a hedge fund manager . . . and so I know that the lack of importance it (bad paper) has versus U.S. Treasurys."

How's the hedge fund business lately, Cramer?

Sloth

Angelo Mozilo, the former CEO of Countrywide Financial, now owned by Bank of America (BAC, news, msgs).

Mozilo is one of the most recognizable faces in the subprime-lending fiasco -- a glib, smug, fast-talking salesman to the bitter end, even as his company went up in flames around him.

Countrywide issued billions in loans to subprime borrowers whose ability to repay was in doubt, then packaged up the loans as securities and sold them off to banks, hedge funds and other large investors who would later wonder what was in the packages.

As CEO, Mozilo should have made it his business to know. That's where sloth comes in. Mozilo and all the others doling out subprime mortgages should have taken the time to ensure better risk management. But that's work.

Also afflicted: Joe Cassano, the president of American International Group's financial-products division, and plenty of other high-ranking Wall Street executives.

Here's the thing about getting paid millions of dollars to manage money: You're supposed to know what you're doing. You can't blame the credit-ratings companies for your bad bets. AAA-rated or not, you made the bet. It's your job to know the finer points of what you bet on.
The same goes for selling insurance protection. You'd better have a pretty complete and accurate risk profile on whatever you're insuring, whether it's an ocean liner or a bond. Clearly, Cassano and a lot of other executives who supervised trading in credit default swaps and mortgage-backed securities were not doing their homework.

Gluttony

Aubrey K. McClendon, the CEO of Chesapeake Energy (CHK, news, msgs).

A CEO's willingness to invest in his own company's stock is admirable. But CEOs need to stay aligned with the interests of stockholders. When you use margin to leverage your investment to the point where you have to liquidate shares in your own company during a vicious downturn, that's a case of biting off far more than you can chew. McClendon did exactly that, and he likely has a terrible stomachache as a result.

Also afflicted: all the speculators in corn futures and the hedge fund managers who believed Goldman Sachs (GS, news, msgs) analysts' assertions that oil would hit $200 a barrel this year.

This is a vast country with a well-established taste for gas-guzzling automobiles, but even Americans couldn't stomach $200-a-barrel oil in a recession. We're not that gluttonous. But a lot of traders in oil futures were. In hopes of pocketing huge profits, they foolishly bet that we wouldn't change our consumption habits.

Now they are getting their just deserts. The same goes for the speculators in corn who helped drive the price to all-time highs with bets that ethanol would become the fuel of the future -- this year. Now that corn has dropped 50% from its highs, their profits are history.

Envy

J. Terrence Lanni, the former chairman and CEO of MGM Mirage (MGM, news, msgs).
So maybe Lanni always wanted an MBA. Presumably, he was envious of those who had them. We're not sure why, as his ascendance to the top spot at MGM Mirage would seem to indicate some real ability.

Anyway, rather than go back to business school, Lanni just put an MBA on his résumé. He resigned in November after The Wall Street Journal reported he had never received that master of business administration degree from the University of Southern California, as claimed.
Lanni has since been quoted explaining that his decision to resign was based on his desire to be closer to his family in California.

Lust

"Mortgage sluts," the mortgage wholesalers who traded sex for loan applications.

While destroying trillions in financial value, the subprime-lending bubble was apparently turning soccer moms and manicurists into near prostitutes. In a Nov. 13 article, BusinessWeek finance and banking department editor Mara Der Hovanesian exposed the sex-for-mortgages scandal behind some subprime loans.

According to the article, female mortgage wholesalers had sex with mortgage brokers in exchange for loan applications, which the women then bundled and sold as securities to investment houses.

Said one mortgage wholesaler quoted in the story, "Women who had sex for loans were known very quickly."

Wrath

Henry Paulson, Treasury secretary.

Paulson is not an angry man. But it seems he felt he had to punish somebody for the mortgage market meltdown, and Lehman Bros. (LEHMQ, news, msgs)happened to be first in line.

What Paulson hadn't realized was that this bit of retribution would plunge the world into downward spiral of doubt about the reliability of all credit instruments. If Lehman could go under, whom could we trust? Speaking of wrath, Paulson's flip-flop on bailout policy (he rode to the rescue of Bear Stearns creditors, then turned his back on those holding Lehman paper) made him a focus of fury among investors who got burned. In Paulson's defense, the mortgage market mess could not have occurred without the concerted efforts of hundreds of Wall Street traders and executives focusing single-mindedly on lining their own pockets. A mess that big cannot be blamed on the mistakes of one man.

Also afflicted: fiscal conservatives.

Another day, another multibillion-dollar bailout funded by you, the taxpayer.

P.S. Not that there's a gun to your head or anything, but if you don't sign up for this, we're probably looking at an outcome south of the Great Depression. If you're a fiscal conservative listening to that message, you've got a right to be enraged. But so far as we know, anger remains mostly a counterproductive behavior, and priority No. 1 has to be fixing this mess.

Source: MSN

Earn Profits And Future Financial Security

By Amit Malhotra

Money rules the world, they say - many of us accept this hard-core fact and try to make money in several ways. However, investment is the most accepted means of saving money. What if you get a chance to save as well as make profits from your small investment -- sounds cool. Yes, stock trading provides you the option of saving as well as moneymaking option in the best possible way. The other advantages associated with such trading method are that you can manage your funds online.

Online trading today has opened a new vista for investors. This Internet based trading is cool and safe. Though it is a computer-based system, you do not require computer knowledge at all.
Many new investors however, ask this common question whether they need computer knowledge or not. The trading Websites are so intuitively designed that you can understand each and every thing in just few minutes. Moreover, the video instructions available on the site make things much easier for first time visitor.

Stock trading companies play a very crucial role in the whole trading procedure. That's why industries involved in trading are doing their best so as to compete with others in the market.
New features like advanced trading tools and security systems are being added on the website. More and more features are being offered by companies just to attract new investors. In this competitive marketplace, investors are getting impeccable services at a very minimal commission rate.

In addition to various services, these websites also offers valuable stock content such as articles, blogs, newsletters, etc. Stock quotes with charts are displayed in an efficient manner. And, with advanced trading tools, traders can easily analyze the market for successful trading. What investors need is an online account. Open an account today and start trading now.

Stock market is the only platform where one can make money in a very short period of time.
But, to avoid subtle risks associated with the share market, one needs to be more cautious.
Those investors who are steadily reaping the benefits from trading are aware of the risks the market poses. And, it is their knowledge and the comprehensive market analysis that help them in taking the right decision at the right time.

You can also be a successful investor provided you learn about the market. Since, learning is a continuous process, you should learn always. Learn how to analyze the data and charts, get familiar with the changing market moods and move forward. However, online financial experts are also there to help you. Discuss with them and plan intelligently.

Investment today is very important for every class of people. It not only helps save your hard earned money, you also feel secured financially in future as well. If you are financially sound, you are mentally sound as well. So, invest now and live happily all through your life. Trading however, provides dual benefits: a secured future financial security and profits. So, what are you waiting for - open an account online on the best trading company websites and start trading from today.

Open an account with SogotradeIf you are new to Sogotrade:Online stock trading investment

Article Source: http://EzineArticles.com/?expert=Amit_Malhotra

A Good Financial Advisor

By Keith Dennis

A lot has been written on this topic over the years. This is probably the most difficult and the most important step in your financial future. The reason that finding a good advisor is so difficult is the corporate world produces very professional looking and talking salespeople.

Most of the Financial Advisors or Brokers/Investments Reps that I know are nothing more than well polished salespeople. Their product is investments. They can make any investment look right for portfolio and give you reason after reason to buy it. They will even print reports and professional looking literature to convince you that these investments are a "good deal" and you shouldn't pass it up.

Some investments are a good deal and could be taken advantage of but only if they truly fit your needs and your families needs. So how do you really choose a good financial advisor and what does he or she look like? What do they do that really makes them better than the rest?

The first thing that they will do is get to know you and your situation before they invest your money. Clients sometimes feel like this is small talk and wants to get the main point quickly. The main point is you! Our part as a Financial Advisor is to get to know you so that we can make the best recommendations possible for your situation. We work together as a team. That way, every investment is made according to your goals and not according to the new "hot" thing.

How do you know that this is what's happening? Your advisor will provide you with a written plan. They will refer to it when talking about new investment opportunities. You should know well beforehand what the next investment should be. Your plan will show you and your advisor.

The next way that you can tell that you have a good advisor is how they get paid. I am a firm believer in a fee-based arrangement. In a commission based arrangement, the broker gets paid up front for picking an investment and selling it to you. Ever feel like your broker is just trying to get paid? The amount that you pay the broker has nothing to do with how good the investment is. There are times as well when the broker gets paid when you sell the investment too. That amount is not based on how well the investment performed. This arrangement usually ends up being more like a salesman-customer relationship.

The better way is to have a fee-based arrangement. You deposit money with an advisor and you are charged an asset fee. These are usually taken out monthly and based on an annual percentage. Then the advisor invests according to your needs and goals. What that means is that if your advisor performs well and chooses good investments for you, they get paid more. If they do poorly then they get paid less. The investments then are chosen based on how well they fit into your plan for investing. Finally, a client doesn't have to worry about the commission problem anymore. This arrangement aligns the client and the advisor on the same team, working together to achieve the clients financial goals.

Communication is the final way that you can tell if your advisor is good. This is especially evident when the market takes a downturn. Are they communicating with you? Are they following the plan set up to whether the downturns? Are they doing anything at all to help you recover your losses?

Finding a good advisor is a difficult thing to do. When searching, ask if the advisor that you are talking with does each of these things. Ask about their plans and how they prepare them. Ask for details on how they get paid. Ask them what they do and what kind of strategies they have in place in case the market does slow or have a downturn in the future. Above all, don't settle. Keep looking until you find exactly what you are looking for.

Keith Dennis
Come to http://www.tulsaretirementplans.com to sign up for our free newsletter. We are located in Tulsa, OK and serve individual investors and business owners. We also have investment classes held locally. Check our website for details.

Article Source: http://EzineArticles.com/?expert=Keith_Dennis

Earn Financial Freedom

By Jerrie Jackson

I'm not an expert on anything really, but I do know the aggravation of working for someone other than yourself.

In the past 17 years I have worked for someone else and frankly, I'm sick of asking for days off and being denied, criticizing the job I'm doing and asking for permission to use the restroom.w
Although, there are benefits to working for an employer. They have to worry about quarterly taxes, unemployment, 401k, time sheets, payroll, insurance and social security. However, I'd take on those worries over being at anothers beck and call 5 days a week. I'd take it over the guilt trip you're given when your child is sick and you call into work. I'd take it over being berated in front of a customer or a co-worker. I'll gladly take it over the option to work for someone else for the next 30 plus years.

Working from home allows you freedom, flexibility, less stress and comfort. I like to lounge in jammies all day, so working for myself is great fun and very comfortable. I like being able to work ten hours or two. People are always looking for something better than what they have. They are looking to give their children more than they had growing up. CEO's are looking to walk away from a life of stress and ulcers. Real Estate agents are looking to work for more than 'ify' commissions. Everyone has a dream and we should be allowed to find it.

We've covered pros and cons and I'm sure there are more reasons that are personal to you. But the important thing in this life is to be happy and to have time to do things you enjoy. Take your family on vacation when you want, where you ant. No more asking permission, not having the money to pay for it and knowing that after all the fun is had you'll go back to the cubicle for pennies on the hour. Take charge of your future, help yourself while helping others. That's the most beneficial thing you'll ever do...help others better their life. I believe that financial freedom leads to healthier people and not just monetarily, but physically. I feel the worst some days when there is just nothing to look forward to other than trudging off to work at a job I sorta like, working for people I tolerate. Decide which life you want.

I'm ready to make the money I need to earn financial freedom, become an independent person and most importantly, help others reach those same goals. We all deserve to live a life we want instead of a life you have to.

I look forward to hearing from you.

Jerrie Jacksonhttp://www.thewealthofsuccess.com/?t=article021308

Learn more about me at: http://www.geocities.com/jerrie.jackson/index.html

Article Source: http://EzineArticles.com/?expert=Jerrie_Jackson

The best financial advice ever

Prince Charming isn't coming. Live like a college student. Never co-sign a loan. Money experts like David Bach and readers like you share the best nuggets of wisdom they have ever received.

By Liz Pulliam Weston

If you're doing well financially, chances are you had help.

Someone, somewhere along the way passed along a nugget of financial wisdom that you took to heart. Maybe you absorbed the messages over time from some role model, such as a parent or grandparent. Or perhaps you just heard the right thing at the right time from a friend, an adviser or even a total stranger.

If you're not doing well financially, maybe you're finally ready to hear some advice that could make all the difference.

With that in mind, I asked experts and readers alike to share the best financial advice they ever received. The results were varied and enlightening.

Advice on saving

"No matter how much or how little you make, always save a little bit."

This is a variation of "Pay yourself first" that Your Money poster "kesslergk" heard from a grandfather. It's a reminder that whatever money comes into your life, you can (and should) be setting aside some of it.

If you don't think you can, read "Too broke to save? Never."

"Save hard for the first 10 years of your married life."

This is the advice Your Money poster "Talk2Me2"received from her mother (although to apply it to more people, I might amend it to, "Save hard for the first 10 years of your adult life" or "Keep living like a broke college student for as long as you can").

"Saving hard means having to make a lot of the right choices," Talk2Me2 wrote. "We researched every purchase, learned how to do lots of things ourselves (car repair, hair cutting, sewing, cooking, home maintenance, etc.) and we could not only save money but we also used these skills to make money. When you are young, doing with less isn't a struggle because you aren't used to the luxuries yet. We also had more time to bargain shop.

"Mom's advice certainly paid off. We still save money even when we don't try to because we are in the habit of trying to do things ourselves, doing without if we can't find it at the right price, researching, waiting to buy, etc. We made a game out of getting what we want for less money."

Advice on spending

"Know the difference between needs and wants."

Several posters also mentioned different versions of this advice, which is key to controlling your spending. When you can't distinguish between real needs and mere wants, you're constantly talking yourself into spending too much.

Poster "ARCHIEtheDRAGON" recalls his mother asking, "What do you need that for?"
whenever he bought anything as a kid. Annoying? Maybe. But "now I hear her voice in my head whenever I am spending money. It keeps me from buying a lot of crap that I don't need."

"JennysMom" illustrated it this way: "You need food. You want prime rib. That example is perfect for the want vs. need debate in my head!"

Poster "Clara Bear" said she heard similar advice from her grandmother.

"Whenever I would complain about not having the newest coolest clothes or whatever when I was younger, my grandmother would always say, 'We have everything we need and most of what we want, too.' That would make me realize that even though we weren't the richest family in town, we really did have plenty. I still think about that today when I'm lusting over some ridiculously expensive item at the mall. It makes me remember that I have a place to live, plenty to eat and a great family as well as much of the stuff I want. I (usually) put the item back on the shelf and walk away satisfied with what I already have."

"Think of the true cost."

Anything you want to buy involves a number of costs. The price tag is just the start.
"I see something that would look great on my table," poster "Mamasita99" wrote. "I have to give up the cash for it that won't be able to work for me somewhere else. Then I have to think of all the time and energy I'll waste cleaning this item, keeping it out of my kids' hands, and packing it up and hauling it somewhere else when we move in a year. Most of the time, the true cost of the item is too high for me."

"Buy quality."

Sally Herigstad knows what it's like living on a tight budget. Before she became a certified public accountant and author, she was a stay-at-home mom who at one point fended off calls from collection agencies (an experience she recounts in her book, "Help! I Can't Pay My Bills: Surviving a Financial Crisis."

As Herigstad and her husband rebuilt their finances, though, she remembered her mother's advice to buy quality when it counts.

"My mom can stretch a dollar farther than anyone I know, but that doesn't mean she doesn't buy nice things. Mom taught us to buy high-quality things at stores that stand behind what they sell. That way, if anything wore out or quit working before its time, she knew she could take it back -- and she often did. You actually save money by buying things of higher quality that last than by getting cheap stuff you have to throw away in no time."

"If your outgo exceeds your income, your upkeep will be your downfall."

Poster "skywind" wrote that his grandfather often quoted this saying. It's another way of saying, "Live within your means," or, more elaborately, "Be careful of adding new expenses to the ones you've already got."

• Video: Budget your way to smarter spending

"So I'm always asking myself, am I putting out more than I'm taking in?" skywind wrote. "If I am, I know I need to turn that around, because it is unsustainable."

Advice on debt

"Don't pay interest on anything that loses value."

A bunch of posters cited variations on this theme of avoiding credit card debt and borrowing only to buy property or other assets that will appreciate.

Poster "dancinmama" was told by her parents "Never pay interest on anything but real estate." In 27 years, she and her husband have taken the advice to heart.

"We have never had a car loan or paid a penny of interest on credit cards. We have saved our money and invested our money. I have been a (stay-at-home mom) since 1986 so most of this time we did it on one income, under 6 figures, on the central coast of California (cost of living was not cheap). Our net worth is now in excess of $2 million."

Poster "Honey Bucket" and her fiancé are just starting out, but they're already living a variation on this advice, which is "save today for what you want tomorrow."

"We've both been saving for retirement, wedding and housing. The difference it will make is that we will be able to pay for things instead of borrowing or having (credit card) debt. Our lives together will be financially secure because of this!!!!"

"Don't co-sign a loan."

Co-signing puts your good credit in the hands of someone else -- who could trash it with a single late payment.

Poster "bookladyfdl" said her parents refused to co-sign a car loan for her after she graduated college, and today she's grateful.

"They lovingly explained that their credit report would show this loan, which could affect any loans they might need. They also explained to me that their rule of thumb was not to co-sign for any amounts they could not personally loan. If you can't afford to give it, you can't afford to pay the loan back, should you have to do so.

"This credo saved me early in my marriage. Without my knowledge, my husband agreed that we would co-sign on a loan his brother was taking out. The papers came and I discovered that we were co-signing on a large loan at 32% interest, and that the reason he was being forced to take it out was that his brother had defaulted on a credit card and this was the last step before court. . . . Out of love for his brother, my husband wanted to help out. However, I relied upon my parents' advice, put my foot down and refused to let either of us sign on the loan. Less than five years down the road, BIL and his new wife have a terrible financial situation, raiding 401(k) funds for car repairs, etc.

"If we'd have co-signed, I know we'd have been forced to pay off that loan to preserve our own credit. Not only would we not have been able to afford it, but it would have put an irreparable rift in family relations. Mom and Dad taught me that sometimes you have to take care of yourself and secure your future, even if it means friends or family members may have a more difficult time."

Advice on building wealth

"If you need more money, then go out and make more money."

There are limits to how far you can scrimp and save. Often the fastest way out of debt and into wealth is generating more income.

Poster "Avalon_2" learned this from parents whose educations stopped by the sixth grade.

"Neither (was) afraid of hard work and we never lacked for anything as I was growing up," Avalon_2 wrote. "They taught me that as long as there is health, anything else can be worked for. To them the word 'retirement' didn't exist. You work until you can't work anymore.

"I've worked 2 and 3 jobs at a time and often while going to school. To this day, I have a hard time not doing more than one thing at a time."

"You pay in advance for capacity."

Dr. Lois Frankel, a career coach and author of the New York Times best seller "Nice Girls Don't Get the Corner Office," heard this bit of advice from a small-business adviser at the University of Southern California.

"As the owner of what was at the time a small business . . . this meant I had to invest more than just hard work in the business to make it grow. I was trying to keep my overhead down and was doing everything myself and driving myself crazy. So when I could least afford it, I invested in hiring an assistant. (The adviser) was right -- this freed me up to do more marketing and sales calls which in turn led to landing more contracts. I've never forgotten this piece of advice and each time I've followed it it's resulted in another growth period for my company, Corporate Coaching International."

(Frankel is also the author of "Nice Girls Don't Get Rich" and the soon-to-be-released "See Jane Lead.")

"Own your own business -- including the building it's in."

David Bach learned this lesson as a money manager for Morgan Stanley before becoming the author of the New York Times best sellers "Start Late, Finish Rich" and "The Automatic Millionaire."

"My wealthiest clients were clients who owned their own business. The most important financial decision they made (that really made them rich) was they bought the building their business was in. In almost every case the building was ultimately worth more than the business at the end of their career.

"Today I own the building (commercial condo) that my company FinishRich Media is in. My building has appreciated more in two years than I earned on my first four bestselling books in royalties."

"Don't gamble more than you can afford to lose."

My colleague, MSN investment writer Jim Jubak, explains:

"When I was a kid, our big extended family would gather on Christmas Eve for a big dinner of fish and my grandmother's pierogi, followed by drinking, followed by singing off-key with my Uncle Eddie, followed by more drinking. The evening always ended with the oldest kid, yours truly, settled around a card table battling three adults in a game of 25-cents a hand pinochle. I almost always came out a big winner -- $4 or so -- mainly because by that time in the evening I was the only one who could accurately count the pips on the cards. One year, having puzzled it over in my head, I asked my Aunt Millie the logical question: Why do you play cards with me every year when you know you're going to lose? Swirling her vodka in her glass, she said to me: Because I never gamble more than I can afford to lose. And then she pinched my cheek.

"Hated the pinch. Appreciated the advice.

"Wall Street has developed lots of way more sophisticated methods for controlling risk. But I think my Aunt's has one very real virtue -- it keeps you focused on the real aim of the game, which isn't making money for its own sake, but to have enough of the stuff to get you where you want to go. It's helped me get over losses in bear markets and in individual stocks. And reminded me that I can occasionally take a flier, as long as the game in itself is fun and I'm not gambling more than I can afford to lose."

"Prince Charming isn't coming."

Barbara Stanny came from a wealthy family (her father was the "R" of the H&R Block tax preparation chain) and never learned much about handling money. After her first husband lost a good portion of her fortune and left her with a tax bill of more than $1 million, Stanny asked her dad to lend her the money to pay the IRS. He said no.

"That was the best thing he could've done," Stanny said. Though he never said these exact words, the message was loud and clear: 'Prince Charming isn't coming. To truly achieve financial security, your only protection is you.' That moment was the turning point for me. I not only got smart enough to manage my own money (in less time than I ever imagined possible), but I've written three books empowering women to do the same."

"Prince Charmings leave, Prince Charmings die, Prince Charmings aren't always such great money managers," said Stanny, whose books include "Prince Charming Isn't Coming," to be re-released May 2007, "Secrets of Six-Figure Women" and "Overcoming Underearning."

"Your job is to participate in financial decisions from a place of knowledge, not fear, ignorance or habit."

This advice isn't just for women, by the way. Anyone who's expecting a lottery ticket, stock picker or other outside force to bail them out is guilty of the Prince Charming syndrome. It's time to quit dreaming and start taking charge.

Liz Pulliam Weston's new book, "Easy Money: How to Simplify Your Finances and Get What You Want Out of Life," is now available. Columns by Weston, the Web's most-read personal-finance writer and winner of the 2007 Clarion Award for online journalism, appear every Monday and Thursday, exclusively on MSN Money. She also answers reader questions on the Your Money message board.

Source: MSN

Achieve Financial Freedom - Buy One More House

By Alexandra Taylor, M.d.

If you were able to achieve financial freedom now, wouldn't that ensure a more comfortable lifestyle in your future years? I submit that the key to your future wealth may be to buy one more house now.

It is said that there are more millionaires because of real estate than any other investment. After many years of home ownership, people often discover that their house has greatly appreciated in value, and is worth many times what they originally paid. Although real estate markets are cyclical and there will always be ups and downs, the general trend in the long run is generally up. Imagine how much better off many of our elderly would be today, if they had made the effort to buy one more house?

Right now, in most areas of the country, real estate prices are dropping and may continue to do so for some time. After years of record-breaking appreciation, resulting in some of the hottest markets in history, we are now experiencing a normal market correction. In addition, a large number of sub prime lenders have recently gone out of business because they took too much risk, and now people are not as easily able to get zero-down loans as before. Thus, there are fewer qualified buyers who have a down payment who can qualify for a mortgage. These changes have resulted in more houses for sale, and fewer buyers who want them. It follows then, that sellers who would like to sell, but who have not had many offers are probably getting impatient, especially if their homes have been on the market for many months. The good news for buyers is this: the longer a property is on the market, the more likely it can be bought at a lower price using creative strategies.

Now is the ideal time to invest in real estate because buyers have never been more motivated! More "For Sale" signs have switched to "For Rent" signs than ever before. Desperate sellers are settling for rental income rather than paying for a vacant home with no buyer in sight. Now, many sellers are willing to consider alternatives to the typical sales transaction.

Today, both buyers and sellers are seeking real WIN-WIN property solutions that will benefit all parties involved. Here are some examples:

Taking a property Subject To
its existing financing. In this case the seller deeds the home to the buyer who simply takes over the mortgage payments without assuming the loan. Taking this one step further, a property taken "subject to" can then be rented out to a tenant, and the rent collected will pay the monthly mortgage payment that the seller took over.

Lease Option allows the seller to have immediate rental income now, and the tenant-buyer has the option to buy it later. For an investor who is leasing in this way, he can sub-lease the house to another tenant-buyer for a higher rent than he is paying, and make a positive monthly cash flow now, and profit from the sale later as well.

Seller Financing allows the buyer to pay the seller his money in monthly installments instead of paying the bank. This allows the buyer to avoid having to qualify for a loan.

These strategies, and others, can allow buyers to purchase properties without necessarily using their own money or credit. In today's market, an investor can buy one more house at a good price from a motivated seller, and achieve financial freedom via real WIN-WIN property solutions.

Talking to someone who does what I do could help you acquire a second, income-producing, appreciating property, and ensure that in the future you will have a more comfortable lifestyle!

Alexandra Taylor, M.D. is a real estate investor who was an OB/GYN doctor for nearly 20 years. Having transitioned from health-related problems to property problems, it is her passion to provide real WIN-WIN property solutions that benefit all parties. She assists new investors to achieve financial freedom and have a more comfortable lifestyle buy showing them how to buy one more house and more! For those who wish to sell or those who wish to buy, Dr. Taylor offers free confidential telephone consultations.

www.BraveHeartWomenAds.com/doctoralex

How You Can Learn About Financial Education

By Rauf Mohamed Yusope

When I first started the journey of learning about financial education, the terms in financial education was totally like a foreign language to me. I had heard some of those words before but what does it really mean. Those moments were poignant moments where I realized that I need a lot more to learn in this area of study. Through this journey, I have grown as a learner and raring to learn more in financial education.

My financial education begins with the understanding of personal financial statement. One of the first terms that I had learn in financial statement is Assets and Liabilities. These are significant terms one must learn and understand to accumulate wealth.

Assets in simple terms are sources that produce and increase your income. For example, owning a part time home based business, franchise, your own company and various investment sources that produce and increase your income are assets. Owning a rental property that produces a positive cash flow income can be considered an asset. Liabilities in simple terms are sources that create output and reduce your income. Loans, bad debts and expenditures that create output to your income generated are liabilities. Owning a property that produces negative cash flow can be considered a liability too.

A metaphor that I can use to describe assets and liabilities is the factors involved in determining the growth of a tree. A tree needs sunlight, air and water to grow. With right amount, it will grow and bloom with green leaves. Similarly, assets need income generating sources such as business and real estate investments for the assets to grow and resulting in the individual owning assets to become richer. A growing tree with healthy green leaves looks more appealing. An individual with rich in assets tends to look more confident and happy.

With lack of sunlight, air and water, the tree will not grow much and the individuals with more liabilities will become poorer and poorer. Individuals with more liabilities tend to be unhappy and less confident when they realized that liabilities are mounting.

One way such problems can be eliminated is through financial education, such as understanding a financial statement and playing educational board games such as cashflow 101 and applying the lessons learn in real life. One has to realize that the financial education is continual and the individual must be persistent and consistent in making the effort to increase the assets column than the liabilities column in the financial statement. I heard before that if one has money, invest wisely. If one has time, invest in your education.

With this concept of focusing the increase in assets column, one has great potential to become richer. With dedication to self develop such as reading self development books, networking and learning from others, playing financial educational board games and applying it in real life by starting small like home business, one can slowly develop into better learner in financial education area. If one love learning, the individual will most certainly enjoy and grow well as a person through this learning experience.

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Md Abd Rauf Bin Md Yusope is an Internet Marketer in Home Business and Personal Development.

Secured Loans - End The Financial Crunch

By Erika Anaya

Going in for a secured loan is the best financial option for homeowners. The loan is secured by mortgaging your home. If a repayment of this loan is not made, you stand to lose your home.
Secured loans are simple to manage and have a lower interest rate than other types of loans like unsecured loans or credit cards. Through a secured consolidation loan, you can club all your debts together and also make consolidated payments.

Secured loans are popular because they can be availed of by people with a bad credit rating or those whose income cannot be verified. Even those subsisting on a pension can avail of this loan.
Secured loans are available through a large number of lenders in the U.K. Interest rates, the time period for repayment and other terms and conditions differ from lender to lender.

Therefore, the best secured loans should be selected only after a careful perusal of all the various loans on offer in the market. It is especially imperative to know the Annual Percentage Rate (APR). It should be ideally not too high, because if it is high or if it increases after you take the loan, you could end up repaying more than you had envisaged for.

If you want fast secured loans, a viable option is to approach an online lender. There are substantial advantages in doing this. The first is that their rates are lower as their overhead costs are lower than a bank or an independent organization. Also, you may not have to do much market research. Many online lenders use the information you upload for getting a loan to make the market comparisons and give you the option of best secured loans. All you need to do is consider the options carefully, take print outs and decide on the suitable loan.

About The Author: For more information about secured loan and secured homeowner loans please visit:http://www.longdogfinance.co.uk/

Yahoo Stock Quotes - How To Utilize Yahoo For Your Financial And Investing Needs

By Josh Neumann

Yahoo Stock Quotes are one of the most sought after financial amenities on the internet today. The Yahoo business and finance section has done well bringing important financial decisions, quotes, statements and market performance to the people.

Yahoo Stock Quotes does not only help you find out about stocks that are going to do well but also helps you connect with people through Blogs where you can share your ideas, thoughts about the market, economy etc.

Yahoo Quotes can be confirmed by going through the basic and technical charts of the indexes and individual company’s stocks. Normally, technical charts and its interpretation software causes a lot of money but yahoo provides it for free.

All the technical charts from ADX, DMA, MACD, RSI, Stochastic to Fibonacci every possible way data can be depicted is provided by yahoo. Somebody who is familiar with the charts can easily interpret it and capture the market movement.

There is a way to use Yahoo Stock Quotes. One must be familiar with different connotations. Such as a symbol is represented by “S”, l: is last value or current price, o: for opening value, g: low value, w: for 52 week range, h: high value and v: for volume.

There are many other symbols you need to know about before accessing yahoo stock quotes. One can find the tutorials on the yahoo site. Yahoo stock data is refreshed every 15-20 minutes so it is almost dynamic.

Yahoo Quotes can be trusted and are mostly from a reliable source and to verify the same it provides you with all the charting options. You can build a list or portfolio with yahoo.

You can also build Yahoo Stock Quotes ticker with some help from the website installing different components. The ticker grabs the stock quotes and shows a detailed data on stocks.
Therefore, utilize Yahoo Stock Quotes to make your investing decisions. They are fast, reliable, and will give you all the info you need. When it comes to investing, you absolutely can’t get your investment advice from just anywhere; Yahoo is the reliable and trusted source you should use.

To learn to invest money and for other investing advice, try checking out http://www.online-investing-tips.com This is a popular investment site that gives money investment advice to help you achieve financial freedom.