Category Archives: Personal Finance

Fannie Mae to Surrender $59.4 Billion to US Treasury

A remarkable news hit today’s headline in almost all local and national dailies of the United States of America. It said that Fannie Mae, the owner of the largest company dealing in Mortgage finance, will pay the US treasury a sum of $59.4 billion. This payment would be a tax payment against a massive income during the first three month of this financial year.

Mortgage Giants Crisis

This is indeed a massive sum that has been paid to the treasury of any country across the globe this year. Describing the fabulous success this year, Fannie Mae told that her company has been making profits right through the last five straight quarters. Remembering her experiences during the last few years, Mae told newsmen that her company was seized by the government in 2008 and since then she had worked hard to achieve this rare honour.  Not only that she also told the newsmen this evening that her company had never looked back after 2008 and it has been achieving milestones one after another.

Describing the company’s fast growth rate, Timothy Mayopoulos said that the company works on a strong principal and that evaluates every case on its own way. The experts of the company are extremely experienced and that is the key to success for the entire company. She said that the company would continue working on its own standards that has paid them richly over the last few years. She promised to pay the taxes with any hesitation. She also reported the newsmen that all companies of Mae are at a rise as per the market standards today.

 

3 keys to management success

Much has been written about management tips and techniques over the decades, but the truth is that there’s no real secret as such to uncover – you simply have to apply a bit of common sense and transparency to how you operate. Read on for what I think are the three main things to consider if you want to see success as a manager.

management success1) Good communication

Communication skills are crucial when it comes to management, from the emails you send out to clients to the day-to-day interaction you have with the people you work with. This means not only keeping the relevant parties up to date with what you’re doing, but also making sure your colleagues and partners know how to get in touch with you, wherever you are during the working day.

I’ve had to manage quite a few remote workers during my time as a manager, as well as interact with contacts located around the country, and have found that it’s a two-way street when it comes to keeping in touch with people you manage who don’t work in the same building as you. While it’s reasonable to expect to be kept in the loop about everything you’re involved with, you should also make it as easy as possible for this to happen.

So, I’ve done everything from set up a public contacts list so that everyone on my team can clearly see how to contact other remote workers via various means, to making regular use of audio conferencing services to set up group meetings. Try not to rely on email communication alone; I’ve found the quickest way to get things sorted is by speaking to people directly!

2) Block out distractions

It’s easy to get distracted by countless emails and requests from colleagues when it comes to doing your day-to-day work. As a manager, you probably feel like it’s your duty to deal with everything straight away, regardless of what you might be working on yourself. However, it’s vital that you learn how to tune out these distractions when needed so you can get your own projects done.

One thing I’ve found useful is blocking out a few hours a week just for my own work by going to a nearby cafe or a quiet room in the office, turning off my emails/instant messenger/phone and simply doing what needs to be done. At first, I spent half of the time worrying about all the emails piling up in my inbox! But, you eventually realise that you save much time and energy by allocating your working hours in this way, leaving you in a better position to deal with all those emails and requests when your own tasks are done.

3) Be respectful

One thing I’ve learnt from working under others is that being a manager doesn’t mean you’re entitled to adopt an aggressive attitude and simply order people around without listening to them. Treating the workers around you with respect is the best way to cultivate trust, motivate your staff, make sure things get done to a high standard and ultimately expand your business.

A good business is founded and grows on the ideas and hard work of many people, not just one, so always be prepared to take on board the suggestions of others and admit when you’re in the wrong! Set a good example in this regard and this ethos should spread throughout your own team – and eventually the company.

Americans Overconfident with Retirement Plans

They may not be planning luxury vacations yet but the well to do of America are confident that their retirement plans will support their lifestyle in their late 60s. This has been revealed by a survey conducted by Charles Schwab, the 40-year old financial firm known for recommending smart investments to the individual investor.

retirementThe survey reveals that while 84% of people have a retirement plan in place, 80% are confident their plans will work.

An interesting revelation is that 39% people do not intend working even part-time after their retirement. Is this a sign of confidence or over confidence.

According to the survey, people seem to have overestimated their plans. While the current average annual income is USD 115,000, the average retirement plan aims at getting $66,000 per year. This clearly goes on to show that there is a gap in understanding what life after retirement requires.

One wonders if these people have kept in mind the number of years they would need a good plan for. The Schwab survey mentions that people intend to retire at 67 and expect to live another 20-21 years.

The survey has been conducted on a sample size of a little over 1800 investors over nine markets. The ages of the people surveyed vary between 25 and 80. It will be interesting to see if young America’s plans differ from the old America. For now, we know that people don’t seem to be as prepared as they should be.

Things to look for in a contract car hire offer for your business

Mileage, contract length, cost, manufacturer, model – all these are things you’ll need to consider when you sign up for a car leasing deal. If you are struggling to filter out the best contract hire offers, read on for a few tips on what to look for.

Affordable payments

Cost is, naturally, at the forefront of most people’s minds when they start looking for contract hire offers. The amount you have to pay for your vehicle each month will be affected by the length of the lease, the type of car you choose and the annual mileage limit you put in place.

From a business point of view, it is important to work out how much you can afford to spend on company cars each month. Don’t forget to factor in any tax you may have to pay.

Business car tax can be deducted against taxable corporate profits. If the cars you lease have CO2 emissions of less than 160 g/km, then the entire cost of the contract can be offset against this. Should the vehicle have a carbon dioxide output above this level, 85 per cent of it is deductable.

Deposit

As you might expect, you’ll need to put down a deposit on any car you lease. This will vary depending on the underlying value of the vehicle and the mileage specified in your contract. The fewer miles you drive each year, the cheaper your deposit will be, as a general rule.

Extras

Some car leasing companies will offer extras with their contract hire deals. This can be everything from an annual service for the vehicle to a comprehensive warranty on repairs. Paying for these costs as part of your monthly payment will mean that you are less likely to be faced with any unexpected expenses to repair a vehicle being used by one of your employees.

Another thing to look out for in a car lease is breakdown cover. Of course, it is not difficult to arrange your own roadside assistance policy, but should you have multiple autos in your business, it can become a time-consuming process you could do without.

Road tax is a further payment that can be rolled into the leasing deal, again, saving you time and effort when it comes to ensuring all of your employees’ vehicles are ready to go and legal.

Having all these things in one monthly payment will make it much easier to know exactly what your outgoings are on transport costs – and save you having to do all the legwork to find the best breakdown, recovery and maintenance deals.

Low CO2 emissions vehicles

This isn’t so much something to look for in the lease deal itself but in the vehicle you hire. There are tax breaks available on models that have low CO2 emissions, both for companies and employees.

As previously mentioned, businesses can deduct 100 per cent of the cost of a lease deal on models that have low carbon dioxide output, while the tax levied on workers is calculated based on the value of the vehicle and its emissions. Lower emissions therefore mean your staff will pay less tax.

If you lease cars for your business, do you have any advice about what to look out for when choosing a contract hire deal? Are there any vehicles or manufacturers you’d particularly recommend?

5 tips to help you manage and cut out debts

Having the sword of ‘debt’ hanging around your neck is never a pretty feeling and if you are not really one of those ‘tough ones’ who can deal with financial tight spots, then you will most likely have plenty of sleepless nights as well.

But there is an effective and efficient way of managing debt, reducing it over time and ensuring that eventually you are away from fiscal risks and complete anarchy. Here are 5 tips that will help you get an idea of what path to recovery needs to be.

Of course, it is far difficult taking the path than just knowing it, so be prepared to put in effort.

  1. The first and most important step to recovery is avoiding new debts. Once you are caught up in the debt cycle, it is very easy to take a new debt for higher interest and clear out an old one. But this will only lead to a disastrous dead-end cycle. So keep away from getting into any new debt situations.
  2. Learning to live frugally is something that comes naturally to a few of us. But most others suffer from not being able to control their habit of excessive spending. If you are in a debt already, it most likely is because you did not plan smart earlier. Avoid making the same mistake again.
  3. Manage your credit cards properly by cancelling those ones out which have zero balance and negotiate with credit card companies when it comes to obtaining lower interest rates for paying back your dues. Explain them your situation and you will most likely be offered an easy monthly installment program which suits your current situation.
  4. Hire some professional help as there are plenty of companies and online firms which will offer consolidation and negotiate low interest rates and reduced outstanding balance with creditors and help you learn more about debt solutions. Take the expert advice if you are not able to manage the situation on your own.
  5. Apart from reducing your unwarranted expenditure, the obvious big step is to try and increase your income. That might mean taking up a second job and putting in more hours. But stick to the program you or an expert chalked out to reduce your debt and put in some hard hours and you will reap rich benefits indeed.

Have any other tips? You should leave us a comment in the field below.

Care Home sector on the up as occupancy rates raise despite economic crunch

Europe has been facing tough economic times for a while and UK has been no exception either.

The last couple of years have specially seen ‘cash crunch’ in Britain and while the current administration has touted the London 2012 Games as the small impetus needed, it seems to have done scant little for overall economic well-being of the country. And many business sectors have felt the adverse impact of these hard times, with aviation and tourism taking the biggest hits.

But it seems that the care home sector has actually rebounded in the tough times and occupancy rates are now on the up.

The nursing home sector has seen a high occupancy rate of 87.8 percent in 2011, which is a lot more than the past five years in the UK and occupancy rates have also been up in rest of Europe as well.

The margin rates in the UK care homes were also up from 30.1 percent in the previous year to 30.5 percent in 2011 and while that is only a small increase, it still is a positive trend that is predicted to continue through 2012 as well.

The fact that the market share of the nursing home has amplified is in itself a heartening trend for those observing UK’s healthcare sector. The country’s social care sector has come under particular criticism in the past few years and the government has also proposed important reforms that are all set to come into effect in the coming years.

It is despite this general air of negativity and the downward economic turn that the healthcare sector has registered growth and that might also have something to do with the number of elderly who are desperate for proper care and medical attention. Something that everyone involved must take notice of.

Energy companies to inform consumers of the cheapest tariff starting this autumn

The case of energy companies and consumers is indeed curious in Britain. The idea of privatization and hence inviting competition that will ensure that consumers get best possible services at most reasonable prices seems to have been twisted and turned to ensure that a few big companies make ample profits.

There is no doubt that companies cannot control global energy prices and hence the volatility shows a direct impact on both gas and electricity prices. But surely energy companies can offer consumers the best deal possible! Well, in case of the big six energy suppliers in Britain, even that requires government intervention and a ‘landmark deal’.

Gas and electricity are part of basic amenities and the responsibility of providing it at best possible price falls on the government to a large extent. Yet, only now has British government come out with a ‘deal’ with the big six energy providers of the country which states that they will inform consumers of the best possible tariff that will help them save as much as £100 each year.

A current survey says that 7 out of 10 British households pay more than they need to in the form of energy bills, not because they consume more but simply because they are on the wrong plan!

With over 120 different tariffs out in the market, one can understand the nightmare of the consumer (for example, what are the  business energy savings a company can make if they choose a different plan, or provider) and while the latest deal made by the government is welcome, it raises a lot more questions than answers.

For something as basic as energy needs, should the government not have more control over something as simple as giving the best tariff plan to consumers a long time ago? What is Ofgem, the ‘industry regulator’ doing other than rolling out surveys and market reviews? How feasible is a ‘one tariff plan’ really with variation in pricing only depending on the energy supplier?

Putting aside the ‘morality’ of the current structure, it would be hard to blame Brits if they feel that all this does little to help them in terms of both household and energy savings.

Spain Will Ask Help from Europe

 

BRUSSELS – Saturday, Spain became the fourth country to ask for help from the beginning of the debt crisis in Europe.
The country will order financial assistance to its partners in the eurozone, but not until you have a clear idea of ​​the amount of capital that banks need from private audits will be completed in a few weeks, told Reuters on Saturday three sources of the European Union (EU).

Spain said during a teleconference with the finance ministers of 17 countries in the euro area would aid its banks, but could not specify the amount until Oliver Wyman and Roland Berger (two independent consultants) present its assessment of capital requirements by 21 June.

“They want the help, but only say how much money is in a few days,” said one source.

A bailout of faltering banks in Spain could reach up to 100,000 million (125,000 million) once it is requested by Madrid.

It is unclear whether the figures are defined Rescue on Saturday, but the International Monetary Fund (IMF) gave a clear guide to what you think is needed to say that in a scenario of “stress”, several Spanish banks need additional capital 40.000 million. However, the agency advised to collect more than that.

“Going forward will be critical to clearly communicate the strategy to provide a deterrent credible to the scarcity of capital, a brake as experience shows, it is better to overestimate than underestimate,” Ceyla Pazarbasioglu, assistant director of the Monetary Department and Capital Fund, said in a statement .

Eurozone leaders want to strengthen the position of Spain before the Greek elections of June 17, which could bring the country Hellene a block output and unleash a wave of contagion.

Members of the Government in Spain have said that in practice, the parameters of the audits of the IMF and private firms are the same, implying that Spain could make your request for assistance based on figures from the bottom instead of waiting to another report.

Meanwhile, the president of the Bundesbank, Jens Weidman said that Spain should use available tools, such as the European Financial Stability Fund (EFSF), if they feel overwhelmed by their financial needs.

Although all indications are that Spain will join Greece, Ireland and Portugal to receive a European bailout, officials say that the aid would focus only on its banking sector, without taking the Spanish state of credit markets.

That would be crucial to avoid overloading the bailout funds from the euro area, which would struggle to cover the costs of the Spanish debt over the next three years, plus possible additional assistance to Portugal and Ireland.

Any political conditions on aid would not be excessive, would be related to banks and probably adding to the austerity measures and structural economic reforms that the Government of Rajoy has already started, sources said the EU and Germany.

Loan, not bailout: Spain

The Spanish government admitted his intention to seek foreign funding to capitalize the banks.

At a press conference at the headquarters of the Ministry of Economy of Spain, the portfolio holder, Luis de Guindos, said it’s not a bailout but a loan.

The official noted that the amount will be sufficient to meet the needs and added a “significant cushion” in addition there will be no macroeconomic conditions, since the measure is limited to the financial sector.

They argued that the loan application to the EU to the Spanish banks will only conditions for financial institutions, so it is excluded country’s economic policy.

In Guindos, downplayed the Spanish prime minister, Mariano Rajoy, has not appeared to explain the application of EU aid to Spanish banks.

Rajoy said that was not brought “by a very simple question, I am the member of the Eurogroup and the Prime Minister”.

In the press conference, the Spanish minister said that this is a loan on highly concessional terms, better than the market, and that “will not leave the slightest loophole for doubt.”

He said that the injection is made through the Rescue Fund Management Banking (FROB), which will interface and divert government entities need.

Ministers confirm agreement

The 17 finance ministers from the eurozone reported that Spain will “soon” formal request for assistance to its members and will receive up to 100,000 million (125,000 million) once the application is processed.

After a conference of more than two hours, the ministers said in a statement that financial assistance would be provided by some of the two mechanisms rescue the block, the EFSF or MEDE, and would be designed to recapitalize banks Spain going through more trouble.

German recognition

German Finance Minister, Wolfgang Schaeuble, recognized Spain for its decision to seek help from their partners.

Madrid said he was “big steps” to control their economic and financial problems and was on the right track.

“It has launched structural reforms. Spain, and this is what they are saying all international institutions, is on the right track,” he said.

Schaeuble believes Spain can control its banking problems.

10 Basic Rules for a Healthy Portfolio

Make a budget, respect your savings, make payments before you buy other items, avoid claims, and allocate fixed amounts for living expenses. All people have special rules to manage their money. In many cases, these habits help to maintain healthy finances. But, it is not always the most appropriate strategies.

For example, some people say no to any credit, however, financing sometimes has its advantage.

To make better use of savings and credit mechanisms, here are some effective strategies to maximize the reach of your money.

1. Set a savings goal: Have a clear goal like buying a car, house or your retirement can help enhance and respect your stash.

2. Analyze and identify what expenses you can eliminate or reduce.

3. Use your individual account to save.

4. Review your current situation before applying for a loan. Do a test and limit your budget to the amount you would have after the payment and see if you can cope.

5. Use only the credit you can comfortably afford and remember that credit cards are not additional income.

6. Pay more than the minimum on your card and do it before the deadline so you can save many interests.

7. Before choosing a long-term credit, make sure you know the terms and fees, and make sure you have explored several options in the market.

8. Do not wait to be old to think about your retirement. Make a marginal amount of $300 or $500 from your salary. That way, you can see the difference between a sad and a very comfortable retirement.

9. When establishing a life insurance,consider an option that fits what your beneficiaries need.

10. Don’t spend more than what you earn.

 

Facebook’s Weapon to Get to NASDAQ

Current Status 

Facebook, the social network created by Mark Zuckerberg, is betting that its IPO prospectus will occur in the second half of May. The company explained that after the first quarter of 2012, these are the most representative data:

  • 901 million active users each month.
  • 3.200 million comments and “likes” are made every day.
  • 300 million photos are uploaded to the social network every day.
  • 125.000 million “friends” are on the platform.
  • 488 million active users each month via phone.

The company explained that their markets have higher growth rates in Brazil, India and the U.S.

Purchase Instagram

Facebook bought Instagram for millions of cash and stock. Instagram is an application to edit and share photos.

“This is an important step for Facebook because it is the first time we buy a product and a company with many users. We have no plans to do more of these acquisitions,” said Zuckerberg at the time, in the company’s official blog.

IBM Patent

The company acquired 750 patents of International Business Machines Corp. (IBM), in an effort to increase its intellectual property portfolio following a lawsuit filed by Yahoo for an undisclosed sum by the company.

Microsoft Patents

Facebook bought 650 Microsoft patents, for $550 million in cash.

These licenses had been recorded in the first instance by AOL, who sold part of its portfolio of IP at Microsoft last April 9, and for which the company founded by Bill Gates, would have paid 1.000 million dollars in cash.

“The agreement today with Microsoft represents an important acquisition for us. It is a significant step in creating a portfolio of IP to protect Facebook and its long-term interests,” said Ted Ullyot, legal representative of the company created by Mark Zuckerberg in 2004.

 

How do I know if I get utilities?

MEXICO CITY – After ending the payment of taxes by businesses and individuals, workers must receive a variable amount as profits. These are a constitutional right of workers to participate in the profits obtained by the companies in which they work, and noted by the Tax Administration Service.

All employees who have worked more than 60 days of the fiscal year are subject to payment of utilities other than directors, administrators, managers, partners or shareholders.

It considers that the professionals, technicians, domestic workers or other employees hired for a fee without a subordinate employment relationship are not subject to receive profits.

The payment obligation is generated from 1 April to 30 May in the case of legal entities (companies), and from 1 May to 29 June in the case of individuals, if you work for a small or medium businesses that operate with this tax figure.

Employers are required to pay in a period not exceeding 60 days from the date the return was filed with the Secretary of the Treasury and Public Credit. For the recovery of profits has a term of one year from the day after the incurring of obligation.

The amounts depend on the financial performance of companies, half of the profit is calculated according to the days worked and the other half according to the salary received. Temporary disability employment injury, pre and postnatal periods, weekly rest, vacation, holidays and leave with pay are considered as days worked.

What patterns are NOT required to turn a profit?

1. The start-ups during the first year of operation, if also engaged in developing a new product, are exempted for the first two years of operation.

In this regard note that the merging of companies, transfer or changed of your name or business name, are not considered start-ups.

2. The extractive industry companies newly created during the scan.

3. The private welfare institutions recognized by the laws that have no profit.

3. The IMSS and decentralized public institutions for cultural, welfare or charity.

4. Companies whose annual income declared to tax on income does not exceed 300,000 pesos.

Who would go if I did not receive profits?

The Office for the Protection of Labor can give you advice, conciliation and, where appropriate, representation before the Board of Conciliation and Arbitration. Likewise, it can perform an inspection. These entities have federal and local offices, so check before you go if it is the seat where you belong.