Term Vs. Variable Life Insurance

Term and variable life insurance are two different types of life insurance policies that provide different benefits to consumers. Term life insurance policies provide a death benefit for a certain number of years, while variable life insurance policies provide benefits for the life of the policy holder.

Term Life Insurance

• Term life insurance is one of the most common types of life insurance available in the market. This type of insurance is often the least expensive option available because it does not accumulate in cash value -- you are simply giving the insurance company a certain amount of premium money, and you get a death benefit in return. The benefit of this type of policy is that you can get a large death benefit for a relatively small amount of money.

Variable Life Insurance

• Variable life insurance is a type of permanent coverage that is similar to whole life insurance. Variable life insurance also provides you with a death benefit. With this type of coverage, a portion of your money goes into an investment account. You can choose several different types of investments to put your money into. For example, you may choose to put your money into a certain mutual fund. This can increase your cash value and your death benefit.

Premiums

• One of the differences between these two types of insurance is the way that your premiums are handled. With term life insurance, you will typically have a specific premium amount that must be paid; you could pay this every month or every six months. With variable life insurance, your premium can fluctuate depending on how well your investments do. If you do not feel like making a premium payment, you could use some of the investment returns to pay for it.

Investment

• With these two types of policies, you can handle your investments differently. Some investors like to purchase a term life insurance policy and invest the difference between the prices of the policies. This way, you have complete control over what you do with the money and there are no restrictions. With a variable life insurance policy, you have to choose from the options that are available from the insurance company. You also cannot access the money without taking out a policy loan or surrendering the policy.

Forced Investing

• Some people prefer to get a variable life insurance policy because it influences them to invest. While the idea of buying variable insurance and investing the difference may be sound, many people do not actually put it into place. They end up using the money for something else. With a term policy, part of your premium goes to investing. You will have a bigger premium payment to pay, but you know that you are investing every time you make it.

Tbond Vs. Stock Market

Deciding whether to invest in stocks or Treasury-backed bonds (T-Bonds) really comes down to your mentality. The basic question is how much you are willing to risk losing. Stocks and T-bonds both have advantages and disadvantages. Knowing these and weighing the pros and cons is important in coming up with an educated decision concerning your investment future.

Features

• Stocks are pieces of a firm. You profit when the value of the firm goes up, or at the least the price of the stock goes up. T-Bonds are loans made to the federal government at a guaranteed return payment. These two types of investment form markets where their value is bought and sold by traders and investors eager to make money.

Benefits (Bonds)

• Bonds that are backed by the Department of the Treasury are some of the world's safest investments. Their primary benefit is that the federal government, in theory, can never go out of business and seems to have a nearly infinite debt-carrying capacity. Therefore, investing in Treasury bonds is a way to make a small amount of money on a "sure thing." At the same time, Treasury securities have an immediate dissemination of price, meaning that you can track the value of the bond at any time without confusion. Most T-bonds are "uncallable," meaning that the government cannot recall these bonds as they see fit, as can happen with private sector bonds.

Benefits (Stock)

• The stock market is a way to make a great deal of money fairly quickly. But with this possible reward comes great risk. Owning stock is an important part of your investment portfolio because you can gain both by capital gain -- the increase in the value of the stock -- and the possibility of dividends, or payments that are mostly used to keep investors loyal.

Problems (Bonds)

• Bonds are always low yielding when backed by the Treasury, since the safety of the investment will not yield high rates. If interest rates go up, then the value of the bond goes down because you are guaranteed a payment. For that payment to stay the same, the value of the bond, from which the payment is figured, must fluctuate with the prime rate.

Problems (Stocks)

• The stock market is well known for its volatility. Sometimes, prices go up and down at a rapid rate without any obvious reason, frustrating the novice or intermediate investor. If you are interested in dividends, most firms are not required to pay them, and would rather plow the profit back into the company. While stocks are a potential source of wealth, they are rarely a source of income.

Rent Controlled Apartment Definition

Rent control is a government regulation of how rents are set and changed for rental property. It is most often associated with residential units and often includes other related controls such as those affecting evictions. A Swedish study on rent control notes that as of 2003, as much as 40 to 50 percent of the world's urban population lived in rent-controlled housing. In the United States, the authority to control rent rests with the states; however, specific rent controls are implemented at the local level.

History

• During World War II President Franklin D. Roosevelt signed the Emergency Price Control Act into law to prevent the effects of wartime inflation from harming the economy. Rents were included in these controls. The act expired in 1947 but material and labor shortages during the war had resulted in a housing shortage as soldiers returned from abroad. As a result, Congress passed the Housing and Rent Act in the same year. Only housing units built after that year were exempt from the controls. A subsequent amendment to the act authorized states to continue, modify or eliminate the controls at the state level in 1950. New York City was the among the first locations to actively incorporate and modify the regulations to suit its needs.

Geography

• According to the National Multi Housing Council, rent control is pre-empted by state law in 35 states; another 11 states can but do not have any rent control. California and New Jersey each have many cities with rent control regulation; the District of Columbia, Maryland and New York have at least one city with rent control. New York City's law are the oldest.

Variations

• Every rent control ordinance is different. Some apply to housing built before a certain date. Some include vacancy decontrol, which means that when a unit is vacated the rent charged for the unit to the next tenant can come up to market rate. Many rent control ordinances that include vacancy decontrol prohibit eviction without just cause, such as nonpayment of rent. This is because landlords could otherwise evict tenants who had low rents in order to raise the unit rent after the vacancy.

Advantages

• Rent control helps maintain housing affordability to those tenants who have lived in rent-controlled apartments for a long time and for all rent-controlled units in cities without vacancy decontrol. Without rent control, seniors on fixed income and low-wage earners might not be able to reside in cities where they grew up or where they work.

Disadvantages

• Because rent control applies to units and buildings instead of people, the benefits accrue unevenly. A wealthy entrepreneur who happens to maintain an apartment in the city in addition to owning a mansion in the suburbs might benefit from rent control and thereby prevent a middle-income or low-income person from living in the city if the housing market is tight and vacancy decontrol makes available units unaffordable. In cities where new housing is not exempt from rent control, the regulation might discourage new housing construction, thus limiting housing supply and putting upward market pressures on the rents for decontrolled units.

Penny Stock Strategy

Penny stocks can be very risky, according to the Securities and Exchange Commission. The risk is so great that the law requires brokers to provide clients with a form outlining these risks. Investors must sign and return that form before they can place their first penny stock trade. Despite the warning, penny stock trading continues to attract investor interest. Speculating in microcap stocks can be profitable, with proper research and risk management.

The Risk in Penny Stocks

• The SEC has found the biggest risk factors in trading microcap stocks are due to low trading volume and lack of reliable information. The lack of liquidity causes a number of problems. It can be difficult getting out of a position once your in it. Accurate pricing can be problematic when quotes aren't available. Low trading volumes can cause larger bid/ask spreads. Since many microcap companies don't file financial reports with the SEC, reliable information is scarce. That makes it easier for fraudsters to spread false rumors.

Invest in the Company Not the Stock

• Standard metrics cannot be applied to these companies. Many are new and without any proven track record. Some have no assets, operations or cash flow. Typically, these companies have products or services that are still in development. Since liquidity is usually limited, traditional technical analysis provides little insight. It's better to view an investment in these companies as latter stage venture capital. That requires intimate understanding and familiarity with the people behind the company, their products and industry.

How to Research Microcap Stocks

• First hand knowledge of a company and its principals is very advantageous. Still, it would be prudent to stick to those penny stocks that have publicly available information. Though not every company is required to file reports with the SEC, many choose to do so voluntarily. The SEC's EDGAR system (where these reports are stored) is accessible for free on the their website. Also, check with your state securities regulator, reference books, commercial databases and the secretary of the state where the company is incorporated. This amount of research is necessary due to the pervasiveness of fraud that exists in this environment.

Pump and Dump - The Most Common Scam

• This scam occurs when company insiders or paid promoters illegitimately create a buying frenzy in a thinly traded stock. They post tips on Internet forums claiming to have inside information about an impending move. Some use telemarketers to call investors directly with a high-pressure sales pitch. More recently, telemarketers will intentionally dial a wrong number, pretending they're leaving a stock tip on their friend's voice mail. The resulting buying frenzy causes a sharp, but fleeting, run-up in price. The fraudsters then dump their stocks on the market and the price plummets. These insiders profit handsomely, while the rest suffer.

This is Speculating and Not Investing

• You are not investing in a proven company. You are speculating that an unproven one can become successful. Manage your risk accordingly, and be prepared to lose your entire investment.

Stock Market Trading Advice

Stock market trading advice has two sides: theoretical and practical. The theoretical pertains to the trading method and can be learned beforehand. The practical pertains to the trading itself and must be constantly applied to new market situations.

Trading Method

• There are several profitable trading methods that have been well described and documented over the years. You can learn the basics from a book or an online trading school. Some methods are based on blending fundamental and technical analysis; others use different technical methods and indicators. No method is failproof or works 100 percent of the time, and each has inherent risks. The key is to know a method well and apply it consistently.

Current Stock Picks

• It takes time, effort and dedication to master a trading method and apply it consistently. Not everyone has the time or the inclination to do this. Those who want a shortcut can utilize numerous online services, such as stock-picking sites that supply current tradeable stock picks in real time; daily and weekly stock trading newsletters; or discretionary accounts that automatically mirror trades by a successful trader of your choosing. You can also get an experienced stock trader to mentor you. All you need to do is understand the basics and feel comfortable with the method.

Money Management

• Regardless of the method, a stock trader must practice sound money management to protect his capital. Cash is the lifeblood of trading. If you lose your capital, nothing else matters, because you won't be able to trade. Sound money management must therefore include risk management and loss-cutting rules. There are numerous books on the subject, but the actual system must be developed and tailored to your specific situation.

Emotion Control

• In the end, it's not the stock that makes you money --- it's what you do with it. Traders who can control their emotions make better trading decisions. A whole new science has emerged around human behavior in the market: behavioral finance. There are psychologists who provide counseling to traders on how to control their emotions, and multiple techniques that you can learn and apply yourself, but in the end you must find what works for you and practice it.

Word of Caution

• Stock trading has wide appeal as a shortcut to riches and financial independence. Many people enter this field lightly, convinced that they can beat the game with a little effort. In reality, however, they're up against the sharpest minds on Wall Street, whose job it is to take their money legally and painlessly. Most wannabe day-traders wash out of the market within five years, only to be replaced by new waves of hopefuls. As a result, providing services to unsuccessful traders has emerged as a lucrative business: A whole army of psychologists, trading coaches, online instructors and stock gurus peddle their services to novice traders. Some of their services may be useful, but remember that they're in the business of selling a service, not making you successful.

How to Walk Away From Your Apartment Lease

Walking away from your apartment lease before the end of your agreement has serious consequences. Landlords depend on the income from your monthly rent, and terminating a lease early impacts their bottom dollar. For this reason, you can expect your landlord to take legal action in order to recover the lost income. But, if you can't remain in your lease due to reasons beyond your control, consider ways to walk away and possibly avoid legal repercussions.

• 1

  Ask for a little leeway. The rental history you have with your landlord can influence his decision to give you leeway and let you out of the lease without penalty. Provide a valid reason for walking away such as loss of employment, moving to another state or your plans to purchase a home.

• 2

  Check your rental agreement to see if you have just cause for breaking the lease. Landlords are to provide a safe, habitual environment and failure to do so is breach of contract. Ask your landlord to terminate the lease without penalty if there are signs of mold, insect problems or faulty appliances.

• 3

  Beseech the landlord to advertise for new tenants for your place. Replacing lost income by finding a new tenant may persuade a landlord to allow you to walk away from your apartment. Give ample notice and stay in the apartment until someone else takes over the lease.

• 4

  Use your wallet to persuade the landlord. Fulfill your end of the agreement by paying off the remaining lease balance in lieu of early termination. Put everything in writing as proof of the agreement between you and the landlord. Make a copy of the check written to pay off the lease balance.

Easy Fundraising Ideas for an Adoption

• Adopting a child can be a very rewarding experience, but at the same time it also may be very expensive. If you need to come up with the money for an adoption, use fundraisers. There are different types of ideas that you could pursue, depending on your interest and what your immediate community will respond to.

Sale

• One of the simplest and most effective ways to raise money for an adoption is to have a garage or yard sale. Talk to your family and friends and ask them if they have anything that they can donate to the sale. Go door-to-door in your neighborhood and ask if there is anything that they do not need that you can sell. Then advertise the sale in your local paper and put up signs. Sell your merchandise and use the money for your adoption fund.

Online Fundraiser

• There are several online sites that you can use to raise money for your cause. FundsnetServices.com provides a list of fund-raising sites (see the Resources section). Set up an account where people can send money and determine a specific goal that is visible to all of your contacts. Then as someone donates money to the cause, it is subtracted from the goal. This method works because it allows everyone to work toward a common goal and contribute when they can.

Car Wash

• Have a car wash. Ask for a minimum amount of money or for donations. You may be surprised at the amount of money that some people will give you for this cause. An advantage is that it is inexpensive to set up and you can wash many cars over the course of a day.

Raffle

• Use a raffle to raise money for your adoption. For this process, you will need something of value donated by a sponsor. You could use anything from concert tickets to a quilt. As long as your item is desirable, this strategy can work. Sell tickets to the raffle for a small amount, such as one dollar each. Once you've sold your target amount of tickets, have a neutral party pick one out of the bunch and notify the winner.

What Is the Difference Between a Diversified and Non-Diversified Mutual Fund?

A mutual fund, by definition, is a diversified portfolio of investments managed with a common investment objective. According to the Investment Company Institute, the primary trade group representing the mutual fund industry in the United States, there are 7,961 mutual funds which manage more than $11 trillion dollars. There are many layers and definitions of the word diversification when it comes to mutual funds.

Diversification vs. Non-Diversification

• The reason for diversifying investments is to spread the risk across numerous investments without requiring a large amount of money. For someone to buy every stock that makes the Standard & Poor's 500 Index, for example, it would take a large amount of money since there are 500 stocks in the index. It is easier to buy a mutual fund that does this for you with as little as $3,000. You have lowered your risk by having a small piece of all 500 stocks in the index. There are numerous funds available to mimic every index in the market.

Diversification by Asset Class

• The first layer of diversification is by asset class; in other words, what types of investments are in the fund. The basic asset classes are stocks, bonds, commodities and cash. All investments can be broken down into one of these categories. Each of these categories can be further divided into even smaller sub-groups. The more the sub-groups you break down to, the less diversification you get in the fund.

Diversification by Sub-Asset Class

• Each of the above asset classes can be further broken down into sub-classes. For stocks, you can have large company, mid-sized company, small company, micro-sized company, global funds (includes U.S. companies), international funds (doesn't include U.S. companies), utility funds, European funds, Asia-Pacific funds, emerging markets funds or China funds (among other country specific funds). The more specific the sub-asset class, the less diversified the fund.

Diversification by Sector

• There is also something called a Sector Fund that allows you to invest in one single part of the economy, such as Precious Metals, Real Estate, Energy or Technology. If you make the investment at a time when a particular sector gets hot, such as precious metals in 2007, it can prove to be highly profitable. These are not non-diversified, because these funds can have hundreds of investments from a particular sector. They would be considered less diversified than a general mutual fund.

Combination Funds Diversify For You

• There are also funds that take the guess work out of how to diversify among different asset classes. These are called asset allocation funds. They are managed usually to a specific formula or mix of investments, often in a combination of mutual funds. They include most investment types discussed so far, even some of the sector funds. Investors usually get a choice from lower risk conservative (which has a higher allocation in bonds), moderate, growth and (higher risk) aggressive growth, which has a higher allocation to stocks. These are usually good funds to start with if you have never invested previously.

Be Careful Not to Over-diversify

• It may sound contradictory, but it is possible to over diversify. When an investor has multiple funds, it is important to pay attention to the top holdings for each. If there is too much similarity, you are not accomplishing the goal of diversification. Look to other sectors or company size diversification to give yourself a more effective mix of funds. Most of the information you need to know about different funds can be found on either the Morningstar or Lipper websites. In addition to objective information on funds, you can also order literature from fund companies in order to make an investment.

Steps to Foreclosure in California

California lenders favor the nonjudicial foreclosure procedure. Nonjudicial foreclosure is permitted because, in part, California is a "title theory" state. This means that the lender keeps equitable title to the land until the loan is paid off. When a borrower defaults on a mortgage, the lender can initiate foreclosure action to sell the property and recoup what is owed from those proceeds.

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  Notify the borrower that she is in default of payment. According to All Foreclosure, the first missed payment is a technical default. Most lenders do not begin formal foreclosure proceedings until the third missed payment.

• 2

  File a notice of default with the county recorder in the county where the property is located. This document lists the amount owed. A copy of this notice must be mailed to the borrower. Within the next 60 days, the borrower may pay the amount due to stave off the foreclosure.

• 3

  Record the notice of trustee sale. This document sets an auction date, lists the time and place of the auction and lists the name and address of the lender. A copy of this notice must be mailed to the borrower. The auction date must be at least 20 days after this notice is filed with the county recorder.

• 4

  Sell the property to the highest bidder. After 20 days has passed, the lender can auction the property. The auction must occur during regular business hours at the place listed in the notice.

What Are the Functions of Fixed-Rate Bonds?

Fixed-rate bonds are the most common form of long-term debt financing. Fixed-rate bonds offer benefits to both investors and issuers because the uncertainty of variable-rate financing is eliminated. Fixed-rate bonds give a known stream of income to investors, while stabilizing costs for the issuer. Fixed-rate financing is usually reserved for long-term financing and not for short-term debt issues. Fixed-rate financing consists of semi-annual principal and interest payments, or just interest and a single 'balloon' debt repayment.

Fixed-Rate Financing Controls Costs

• Variable-rate financing is not reasonable for long-term financing. Interest rates directly affect the feasibility of many long-term projects. The use of variable-rate financing makes it impossible to know how to charge for rent, or to price in the cost of factory or manufacturing space, because interest rates are a major component of an institution's cost structure. Bond financing are debt instruments with maturities between 10 and 30 or more years.

Fixed-Rate Bonds Allow for the Refunding of Debt

• Fixed-rate bonds allow owners to refinance existing structures that are in full use when interest rates are low, providing additional savings. A building or business started during a period of high interest rates can permanently reduce and control costs through fixed-rate financing. Should rates fall further, management can reduce costs by refinancing the project with lower cost bonds.

Fixed Interest Rates Provide Stability to Investors

• Investors prefer fixed-rate bonds because they want to lock in a competitive yield for a predetermined number of years. Investors prefer to make long-term commitments at fixed rates so they will have steady cash flow. Variable-rate financing means that the rate of interest could be higher or lower at the next reset date, and thus cannot be used for maintaining a stable dividend to investors.

Fixed-Rate Bonds Allow Better Debt Management

• If a company has fixed-rate bonds to pay debt and the company wishes to expand, it can do so by raising more debt financing. This is called junior financing and is payable only after previous fixed-rate debt is serviced. Companies also have the opportunity, if the credit is sound, to swap their debt into other currencies where they may be able to reduce interest expense further. Adding or swapping debt is very difficult if the existing debt is variable and short term in nature.

Fixed-Rate Bonds Attract More Institutional Funding

• Fixed-rate bonds are the preferred choice of investment for large institutions. Pension funds, mutual funds, both life and casualty insurance companies prefer the known cash flow of fixed-rate bonds. With the need to invest billions of dollars every day to offset long-term claims and dividend policies these companies actively seek to invest at a fixed rate they can lock in for years. Variable-rate maturities are used for short-term bills and notes that provide liquidity rather than income to investors.

How to Terminate a Vehicle Lease Early

Leasing a car and then deciding you no longer want the vehicle puts you in an awkward position. Leasing a car involves signing a contract, wherein you agree to pay a certain amount on a car for a specific term. Dealerships and finance companies expect you to keep the car until the lease ends. But what if you need to get rid of the car sooner? Fortunately, provisions are available to help you terminate a vehicle lease early -- without risking your credit rating.

• 1

  Deliver the car to the dealership, and pay any financial obligations. Bring the car back to the original dealership in good condition, and agree to pay off your lease balance to terminate the agreement. If you exceeded the allotted yearly mileage, be prepared to pay additional mileage fees.

• 2

  Lease another car, and roll over the balance. Dealerships will terminate a lease agreement early if you decide to lease or purchase another car. Any balance remaining on the old lease rolls over into the new lease or loan. This method increases the price of the new vehicle.

• 3

  Advertise for someone to assume your lease. Place ads in the paper, and look for someone to take over your car lease and assume full responsibility for the car. Talk with your finance company first to get permission and to discuss the requirements. The person interested in your car may have to qualify with the finance company.

• 4

  End the lease, and deal with the credit consequences. Paying off a lease or transferring the lease isn't always doable. If you've exhausted all options, bring the car to the dealership and walk away. This is breach of contract, and you can anticipate a reduced credit rating.

How Much Equity Do You Need for a Reverse Mortgage?

A reverse mortgage is a type of loan that you can gain access to once you reach age 62. Many retirees use this tool to provide income during their retirement years. To get a reverse mortgage, you have to have a certain amount of equity in your home.

Function

• The purpose of the reverse mortgage is to allow senior citizens to borrow against the equity in their homes without having to make any payments. Instead of making payments to a lender, the retiree actually receives payments from the lender. The mortgage does not have to be repaid until the house is sold or the homeowners pass away. This is one way many senior citizens help supplement Social Security income and retirement benefits.

Equity Requirements

• Several types of reverse mortgages are available. For most reverse mortgages, you have to have at least 40 percent equity in your home to qualify. You will only be able to borrow a certain amount of money depending on the loan-to-value-ratio requirements of the lender you are working with. If you have a small loan balance or own the property free and clear, you will have a better chance of getting approved.

Credit

• One of the benefits of this type of mortgage is that it does not depend on your credit history. Since you will not be making any payments to the lender once you get your money, the lender does not care if you have a poor credit history. This makes it significantly different from any other type of mortgage loan. Lenders also do not take into consideration how much money you make from retirement benefits.

Mortgage Balance

• While you could potentially qualify for a mortgage as long as you have 40 percent equity, you have to be able to pay off your mortgage balance with the funds from the mortgage. The government backs these loans and it requires that you pay off your mortgage with the funds from the loan before using the money for anything else. This allows you to get out of making a monthly payment and improve your financial situation.

Counseling

• To qualify for a reverse mortgage, you have to go through an informational session with a qualified mortgage counselor. The government mandates that you sit down with a counselor so that she can help you see what your options are before getting involved with a reverse mortgage. While the process of getting a reverse mortgage can be beneficial, it also can deplete the equity in your home. The counseling session will ensure that you understand exactly what you are doing.

How to Exchange Rupees for Dollars

The official currency of India is the Indian rupee, which is known as INR. One rupee can be divided into 100 paise. When you have 100,000 rupees, that amount is referred to as a lakh rupee, and 10 million rupees is referred to as a crore rupee. Regardless of how many rupees you currently have, if you are returning to the United States, or visiting from India, you will need some U.S. dollars, or USD, for buying things in cash.

• 1

  Check the rupees-to-dollars exchange rate with an online currency converter, such as X-Rates or Coin Mill. Enter the amount of rupees you have to get an estimate of how many dollars you will get in return. Online exchange rate calculators do not take into account the fee you will be charged when you exchange the currency, so you will likely end up with slightly fewer dollars.

• 2

  Ask to exchange your rupees at your local bank branch. Typically this can be done at the teller desk.

• 3

  Use one of the currency-exchange counters or kiosks in an airport or hotel if you are traveling. Some travel agencies, such as the American Express travel agencies, also offer currency exchange. Additionally, some shopping malls have currency-exchange counters.

About Stock Market Slang Terms

Stock trading is loaded with slang. These words and phrases derive from insiders who, when seeing a practice or phenomenon over and over, label it colorfully. If you are taking a serious approach to the markets, then understanding these words and phrases is essential so you do not get lost.

Features

• The basic structure of Wall Street slang concerns repetitive phenomena or practices; in other words, traditions that have shown themselves either in the behavior of traders or in the market itself. For example, the "Dead Cat Bounce" refers to the phenomenon in which a radically falling market shows a slight but rapid increase in value near the end of the fall.

Function

• These words and phrases are designed to, first, separate trading insiders from novices, and second, to encapsulate complex practices and phenomena into a short, pithy word or phrase. For example, the noun "nut" refers to the expenses that a broker pays for a specific trade. "Castles in the Sky" refers to radically overpriced stock whose price has no relation to the firm's true value.

Benefits

• The real benefit of slang is to ease communication. Insiders can recognize each other through the quick, mutual recognition of these terms and outsiders can rapidly be spotted. For example, someone who is behind the "learning curve" is one who is not initiated into the complex workings of the market. Someone not savvy to the market might engage in "Random Walks," or a general practice of choosing stock investments based solely on feelings or even shooting darts at a list of major firms; basically, random stock picking. There is some precedent that this method is just as good as professional research.

Effects

• These slang terms, if used consistently, can reduce the stock market to a few words and phrases for concepts that otherwise would take a long time to explain. For example, "bottom fishing" is a verb that refers to a practice of buying up stock that is undervalued due to overtrading or a falling market. "Chasing Returns" refers to the practice of taking great risks on the feeling that one can gain great returns. Some words, though a minority, refer to outside forces. For the Federal Reserve to be "dovish" means that it will reduce rates. For it to be "hawkish" means it is ready to increase rates.

Significance

• Though it sounds like slang to the outsider, the fact is that these terms, widely accepted, actually refer to the professional vocabulary of professional traders and those wanting to become professional. Terms like "crunching" do not just mean a stock is falling but that it is falling at an alarming rate. Therefore, there is a sense of urgency and even panic to the term that "the stock is falling a lot" might not capture.

How to Pay Ordinary Income Taxes on an Annuity

Annuities are purchased to pay an income stream either now or at a future point in time. When the annuity starts paying regular payments, it is referred to as an ordinary annuity. Any growth in the annuity is tax-deferred, but distributions are added to income. Not all distributions may be taxable, depending on whether the annuity was funded as a retirement savings account, such as an IRA or 403b plan, where contributions are tax-deducted. Paying the taxes on the distributions requires knowing how much is taxable and how much isn't.

• 1

  Obtain Form 1099-R for the payments received throughout the year on the annuity. This form is sent by the annuity administrator in January to both you and the Internal Revenue Service.

• 2

  Read through the form. Box 1 gives you the gross distribution amount. Box 2a gives you the taxable amount. If part of your distribution reflects after-tax contributions, the gross distribution will be higher than the taxable amount. If they are equal, then all contributions were pretax dollars and therefore taxable.

• 3

  Record the gross distribution from Box 1 on Line 16a, Form 1040. Record the taxable portion from Box 2a on Line 16b, Form 1040, adding the amount to gross income.

• 4

  Locate Box 4 of Form 1099-R to see if any taxes were withheld by the annuity administrator when sending you the distributions. You may have elected to have a net amount sent less federal taxes, reducing each payment, but paying the taxes along the way.

• 5

  Record taxes already paid reported in Box 4 on Line 61, Form 1040.

• 6

  Complete you tax return with all applicable income and deductions. Sign it and submit it to the IRS.

How to Make a Grid Chart

A uniformly spaced plane like a grid chart makes studying and observing a selection of data much easier. With a clean chart and meticulous plotting on a grid chart, the user can easily see trends over time or among different sets. Grid charts work for a number of other purposes as well, such as a mailing list that features a neatly organized list of names and addresses. You can either make a paper grid chart yourself or use data entry or spreadsheet software to customize a digital grid chart.

Make a Grid Chart on Paper

• 1

  Draw a large, thin "L" on the lines on a sheet of graph paper, using a ruler as a straightedge to keep your lines even. Use most of the page but leave a margin to note the sets for the X- and Y-axes of your chart.

• 2

  Write the values for your X- and Y-axes in the margins of the paper. For example, if you were charting how much money you spent over the course of a year, beneath the horizontal line indicating your X-axis, you would write "Months" or "Time." To the left of your (vertical) Y-axis, you would write "Money Spent."

• 3

  Draw marks at regular intervals on each axis to indicate the progression of each value. Label each of these with a value or other set. To continue the above example, you could make marks every five intervals on the graph paper for both axes. The vertical marks could represent dollars in $100 increments, while the horizontal axis could be marked by months of the year.

Make a Grid Chart in Microsoft Excel

• 1

  Open Microsoft Excel and select "New Spreadsheet" when prompted. A default template spreadsheet will appear in the Excel window.

• 2

  Click the "Format" menu in the upper toolbar. You can customize your grid chart by clicking "Cells." This option opens a menu which enables you to adjust the number of cells in each row and column.

• 3

  Click "Column" or "Row" in the "Format" menu to edit the particular size of each row and column. The column width can vary between 0 and 255 units, while the row height can be set between 0 and 409 units.

• 4

  Enter your data into each row and column. Excel will automatically maintain the straight lines of your grid chart. If you find that the boxes are too small for your data, return to Step 2 and readjust the row or column size.

How to Lower Mortgage Interest

Negotiating a lower mortgage interest rate saves you money on the home loan throughout the life of the mortgage term. Acquiring a better rate increases your spending power and you may qualify for a more expensive home. Interest is essentially compensation or a fee paid to mortgage lenders; low interest rates result in lower monthly payments. For this reason, buyers like yourself are often willing to do anything to secure the best rate possible.

• 1

  Check your credit rating before looking for a mortgage. Visit MyFico.com and request a copy of your credit score. Good ratings justify better mortgage loan rates. Raise your score to 680 or higher by paying bills on time and paying off unsecured debts.

• 2

  Put down a higher down payment to negotiate a lower interest rate. Down payments carry weight when applying for a mortgage. Mortgage loans require at least a 5 percent down payment, but higher payments may persuade a lender to reduce the rate on the mortgage. Dip into your cash savings, retirement fund or use money from the sale of a property as down payment for your new home.

• 3

  Pay points and lock in your rate. Pay for an interest rate reduction by paying discount points to your lender. Each discount point costs about one percent of the mortgage balance and drops the rate on the home loan by 0.25 percent. Talk to you lender about locking the loan rate for a period to avoid rate fluctuations.

• 4

  Take your time when looking for a home loan and compare loan rates with different lenders to get the lowest mortgage rate. Use a local broker to research lenders, or check out online websites such as LendingTree.com.

How to Stop a Foreclosure in California and Not Be Bankrupt

Bankruptcy prevents foreclosure for some homeowners in California, but will destroy a credit score by remaining on the report for at least seven years. There are several alternate routes you can take to stop foreclosure and save your home without ruining your credit. In California, the average foreclosure process takes four months. To prevent foreclosure, you will need to act immediately. At the first sign of a struggle to meet your monthly mortgage payment, seek assistance.

• 1

  Call your lender. Your lender will be able to offer you affordable solutions to your mortgage dilemma. California lenders realize that in a sluggish housing market, it is more beneficial to allow you to remain in your home and continue paying the loan than to foreclosure. Discuss refinancing the loan at a lower interest rate to lower your monthly payment. The Making Home Affordable program offers refinancing and loan modifications. If your California lender participates in the Home Affordable Foreclosure Alternative program, you may be eligible to receive money for selling the home in a short sale or giving back ownership with a deed-in-lieu of foreclosure. Even though your credit score may be affected, the impact will not be as severe as bankruptcy.

• 2

  Apply for assistance through a California foreclosure prevention program. The Keep Your Home program is implemented by the California Housing Finance Agency. Since California is one of the states hit the hardest in the foreclosure crisis, additional money is awarded by the federal government to fight foreclosure. The program provides services such as counseling and financial assistance to homeowners in need.

• 3

  Seek legal aid. Pro bono attorneys in California volunteer their services to help homeowners stop foreclosure without having to file bankruptcy. An attorney can offer legal advise and representation. Assistance is typically available to low and moderate income homeowners. The attorney can also review your mortgage documents to determine if you are a victim of lender fraud. Law Help California is a site that helps locate legal aid service providers near you. You can also refer to HUD for local legal aid contact information.

How to Retrieve Old Telephone Bills From Qwest

Qwest is a telephone company that also provides Internet service and works with other companies to provide cable connections. If you need to retrieve your old telephone bills from Qwest, there is a procedure you can use. It depends on your local Qwest company, and how long it stores bills. Depending on the company, you can often get bills up to five or 10 years old.

• 1

  Contact Qwest at the local phone number found on your telephone bill. It is important to call the local number, not the national one, because each local Qwest company has different regulations, and those companies are where you will find the old bills.

• 2

  Speak to customer service and explain your reasons for needing old telephone bills. Remember that depending on your location and the local company's regulations, it can be easier to get the bills from one local company than from another. Some companies may give you the bills simply because you want them, while other companies require you to provide information about who you are and proof that you were the person paying the bills before they will release them to you. Availability of the records also depends on how long your particular company keeps copies of its bills.

• 3

  Contact a lawyer if you believe that the local Qwest company does have access to the bills but will not provide you with them. Sometimes local companies will claim they no longer have bills, just to avoid the hassle of digging through old bills. Other companies may have the bills but be be hesitant to hand them over to you because they don't believe the bills are yours, such as if there is another name on the bill. In these cases, a lawyer can advise you on how to proceed.

• 4

  Contact a lawyer if you are attempting to get someone else's bills, such as a former partner or someone you suspect of a crime. A lawyer will advise you about your rights regarding someone else's information, depending on your case. If the lawyer deems that you have a legal right to obtain the bills, he can help you get a court order to obtain the bills. Without a valid reason, however, you probably cannot obtain someone else's old Qwest bills legally.

Forex Related Sites

• Forex-related sites can help you learn currency trading. John Foxx/Stockbyte/Getty Images

  Retail forex trading is a legitimate business that's accessible online. Numerous online sites exist that educate forex traders, and governmental sites list rules and regulations. Forex is a global business, so most of the online resources are independent of location. Country-specific regulations may be posed by certain governments to control offshore forex dealers and also to protect local investors.

Babypips.com

• Babypips.com is a comprehensive forex-resource site with several components. The most popular section, under the "School" tab, educates new traders. There are also blogs, forums and forex tools on the site. Babypips.com is the mother site of several more forex sites, namely Freshpips.com, Meetpips.com, Reviewpips.com and Askpips.com.

Earnforex.com

• Earnforex.com is an online information portal for forex. The most impressive resource at Earnforex.com is the list of forex brokers categorized according to features that traders often seek out. For example, forex brokers who support PayPal is categorized in a list. The tool acts as a small search engine specifically tailored for forex brokers.

MetaQuotes

• MetaQuotes Software Corp. (metaquotes.net/) is the official developer of the MetaTrader 4 (MT4) trading platform. MT4 is a widely used trading platform supported by most forex brokers. MT4 is popular because of automated trading capabilities and a vast range of built-in indicators used by technical traders. Automated trading robots used in MT4 platform are called Expert Advisors (EA). These pieces of software are written in MetaQuotes Language 4, a custom programming language used specifically for creating EAs.

MQL4.com

• MQL4.com is the official website of MetaQuotes Language 4. MQL5.com is also active and MQL5 is the latest version of MQL. MQL programming, EAs and indicators have become an industry of their own. There are professional MQL programmers who earn a living by coding only EAs and indicators.

U.S. Commodity Futures Trading Commission

• The U.S. Commodity Futures Trading Commission (CFTC.gov) is a U.S. regulating body for commodity futures trading, which includes forex trading. CFTC may regulate forex trading only within U.S. boundaries. A central body specifically tailored to maintain global forex trading regulations does not exist, except for the International Monetary Fund and the World Bank, who indirectly control forex trading on a global scale. CFTC is important for all forex traders--U.S. forex regulations impact the forex market and the U.S. dollar affects exchange rates.

National Futures Association

• The National Futures Association (NFA.org) is a U.S. based organization that controls forex regulations within the U.S. Regulations imposed by NFA have a market effect worldwide because the U.S. is a strong player in forex. The NFA is closely watched by similar bodies in other countries, who adjust and adopt their own regulations similarly.