If on the other hand, you have no health insurance, you should by all means check to see if you're eligible for your state's health insurance, such as Medicaid. Most state Medicaid plans cover weight loss surgery without any anticipated denials as long as it's proven that the surgery is medically necessary. The problem with state health insurance is that in order to qualify, your income must be extremely low. Unfortunately, if you're working even part time, then you most likely don't qualify for Medicaid. If you check your local Yellow Pages, you will be able to locate and contact any special insurance plans created specifically for those wishing to undergo surgery to lose weight.
If you have fairly good credit, obtaining a loan from your bank or credit union is always an option. Your payments may or may not be lower than if you receive financing through the bariatric center where you're having your procedure done. There are also numerous types of finance companies that specialize in providing loans for all types of medical procedures, including some specifically for weight loss surgery. These types of finance companies usually require good credit, so if yours is less-than-perfect than you may be better off choosing another option.
If you've made the decision to rid yourself of your excess weight by opting for surgery, don't worry about not being able to pay the costs that you're responsible for. Whether your insurance agrees to pay all, some, or nothing at all, if you're determined to get weight loss surgery, there are ways to finance your surgery. If your situation is dire, and you need the surgery to help reverse life threatening conditions, there are charities available that may donate money toward your surgery. Your bariatric surgeon can refer you to such organizations.
If you are very obese and your excess weight is minimizing your quality of life, yet you have exhausted all of your financing options, you should be aware that there are alternatives to weight loss surgery. By choosing a healthy, safe alternative, you'll not only be minimizing your chances of experiencing the life threatening complications of surgery, but you'll also save a great deal of money as well. There are wonderful, successful programs, such as Medifast, a medically supervised weight loss program, Weight Watchers, Nutri-System, and many others that cost substantially less than surgery, but work just as well.
In what has been an uncivil discourse to date, Republic Services continues to tell Waste Management that its bids are unwelcome and the company is not for sale. Republic Services has refused to engage in ongoing talks with its insistent suitor. Waste Management has said it will evaluate its options in light of the most recent rejection. Does this mean an even higher bid? Waste Management seems determined to hold on to its number one position, but how much more can they offer? At some point, there is a number that Republic services must consider out of fiduciary duty to its shareholders. Some industry analysts have said $40/ share would be a fair valuation while others say that is too high a price and would negatively impact the buyer's financial status. Remember that Republic was trading for a low of under $28/ share as recently as July 11th. With news of the $37 offer, Republic briefly traded over $35 last week, but retreated as it became clear that its management would not accept the revised offer.
Anti-trust Issues?
A combination between Waste Management and Republic Services would dwarf the nearest remaining competitors, and position the giant well for future power plays. Such a deal would likely arouse the interest of the Justice Department's anti-monopoly watchdogs as well. So it isn't entirely clear that even if Waste Management could put together a deal acceptable to Republic Services that it would be allowed to go through anyway. Even without Justice Department approval, however, such a deal would have the effect of preventing or substantially delaying any merger between Allied Waste and Republic Services. The latest offer from Waste Management offer included a provision for a $250 million payment to Republic if the acquisition were to be blocked by the Justice Department.
1. What lifestyle do you want to provide to your spouse and dependents when you die? Review their needs in detail, taking a look at things like:
• What standard of living do you want to provide? Will your spouse and children live in the same house?
• Will the family have to make different child-care arrangements?
• How many and what kinds of automobiles will be needed?
• If your spouse works, will he/she decide to stay home with the children?
• If your spouse stays at home, will he/she return to the work force?
• Do you want to pay for your children's college educations?
• What other financial help do you want to provide to your children?
• Do you want to pay off a mortgage or other debt with insurance proceeds?
• What are your spouse's retirement plans? Is he/she counting on you for retirement income?
• Do you need to consider the support of elderly parents or other relatives?
2. How much will that lifestyle cost? Come up with an estimate of how much this lifestyle will cost. Include all of your current expenses that would remain the same as well as any new expenses you have identified, such as for child care. Remember to factor in hidden costs, such as providing for health insurance that was paid for by your employer. For large debts, such as a mortgage, determine if it makes sense to pay the loan off in full or to continue making monthly payments.
3. How much life insurance do you need? First, consider what other income sources your spouse and/or dependents will have. This could include your spouse's earnings, retirement plans, Social Security benefits, savings, and investments. Life insurance proceeds will be needed to provide the difference.
Your life insurance needs will change over time, so you should periodically go through this analysis.
]]>Combining assets with consistently high correlations to each other does little to reduce risk. The greatest combination benefit to a portfolio seems to be achieved by combining assets with consistently low correlations, which results in consistently reduced risk.
When selecting investments for your portfolio, consider the diversification aspects for your overall portfolio. While correlations change over time, general observations include:
• Stocks tend to have a low positive correlation with corporate and government bonds.
• Short-term bonds tend to have a low correlation with long-term bonds.
• Stock markets around the world are all positively correlated to some degree. In general, European stock markets are more closely correlated to each other and the U.S. than to markets in Japan or Asia. Correlations between developed countries tend to be higher than correlations between developed and emerging countries.
• Real estate tends to have a low correlation with stocks and bonds.
Past performance does not indicate future results.
]]>In the lawsuit, the firm Brodsky & Smith alleges that the Wachovia made “materially misrepresentations” that led to inflated stock prices. The suit is being brought on behalf of stockholders who purchased Wachovia’s stock at these alleged inflated levels between May 8th, 2006 and April 11th, 2008. While the class has not been certified at this point, Wachovia has vowed to fight the suit vigorously and has increased their reserves for legal expenses by half a million dollars.
That, though, seems the least of Wachovia’s worries at the moment. Federal and state securities investigators are pressing Wachovia on its municipal bond bid practices. You’ll recall that on July 17th, regulators raided the company’s headquarters after the company failed to fully comply with states’ subpoenas regarding auction-rate securities, according to the regulators. The municipalities and states that purchased these securities were left holding the bag after the market for them collapsed earlier this year. Wachovia says they are in “active discussions” to settle the matter.
Going forward, the company expects losses from the mortgage portfolio it acquired in 2006 as part of its acquisition of Golden West to reach as high as 12%. The purchase of Golden West carried a $25 billion price tag back in 2006 before the mortgage and housing mess began spiraling out of control. Wachovia appears to have the resources to weather the storm and there is no sign of imminent collapse.
For instance, the maximum Social Security benefit in 2008 for workers retiring at full retirement age is $2,185 monthly. While that might not seem like that much money, consider how much you would need to accumulate to generate that monthly income. A 66-year-old male would have to pay approximately $377,000 for an annuity that would pay $2,165 monthly for life with annual inflation adjustments, while a 66-year-old woman would pay approximately $421,000 (Source: Vanguard, 2008).
While only 21% of the work force is currently covered by a defined-benefit plan, it is a valuable benefit if you are covered by one. Defined-benefit plans typically don't adjust your benefits for inflation, but they will pay a benefit for your life or the joint lives of you and your spouse, depending on the option you choose.
But despite the value of Social Security and defined-benefit plans, you will probably be responsible for the majority of your retirement income, whether you obtain that income from 401(k) plans, individual retirement accounts (IRAs), or taxable investments. Before retiring, you will want to ensure that you have sufficient savings to support yourself for 20, 30, or even 40 years, depending on your age when you retire.
Deciding how much you need to accumulate by retirement age is difficult, since so many of the variables that go into that calculation are uncertain. To come up with an estimate, you need to make assumptions about your life expectancy, how much income you will need during retirement, how much you will receive from other retirement sources, when you will retire, your long-term rate of return on investments, future inflation, and future income tax rates. If your estimates are inaccurate, you could end up with little in the way of income in the later years of your life.
Because of all the uncertainty, it is typically recommended that you only withdraw modest amounts from your retirement savings, especially in the early years of your retirement. A common rule of thumb is to withdraw no more than 4% annually from your retirement funds. So if you want to withdraw $75,000 annually from your retirement assets, you'll need to accumulate $1,875,000 by retirement age.
But that 4% figure is based on the value of your investments when you are ready to make the withdrawal and is not a static number based on your savings when you retire. During periods of market volatility, your asset balances can fluctuate significantly, causing major changes in the recommended withdrawal amounts. Market fluctuations are especially dangerous during the early years of your retirement, when it can be difficult to make up for market declines while you are withdrawing money from those reduced balances. If you are not able to overcome market declines, you could be forced to drastically change your retirement plans.
How can you ensure that your retirement savings will last a lifetime? Consider these points:
• Annuitize a portion of your retirement assets. This will provide you with a definite monthly income for the rest of your life. Annuities can be purchased with or without inflation protection. Since an annuity is paid for the rest of your life, it protects you from outliving your savings and from the risk that lower-than-expected investment returns will reduce your portfolio. Typically, the benefits will end once you (and your spouse if you elect joint benefits) die, although some annuities will pay a lump sum or periodic benefit to beneficiaries. Thus, it is important to understand that if you (and your spouse if you elect joint benefits) die at a relatively young age, your benefits may not equal the purchase price of the annuity. While you probably do not want to use all of your retirement assets to purchase an annuity, you may want to use enough to purchase an annuity that will cover your regular monthly expenses.
• Withdraw conservative amounts from your retirement assets. If you limit your withdrawals to 3% or 4% of your balance, the assets should last for decades. At least annually, reassess your retirement assets and make sure that your withdrawals are reasonable based on your current balances. Market fluctuations can cause your asset allocation to get out of line, so you should rebalance at least annually. Even during retirement, you should allocate your assets among a variety of investment types, ensuring that your allocation is appropriate for your specific situation.
• Maximize other sources of income. While Social Security benefits and defined-benefit plan benefits will likely only provide moderate income, don't totally discount these income sources. Delay Social Security benefits as long as possible, until age 70, to maximize the benefits you will receive. These benefits are also adjusted annually for inflation. While defined-benefit plans are becoming increasingly rare, make sure you apply for benefits if you are covered.
• Look for other ways to remove risk from your retirement investments. There are a variety of portfolio strategies that can help cushion the impact of market fluctuations. If your portfolio is properly diversified, downturns in one asset class can be offset to at least some extent by the performance of other assets in your portfolio.
• Reach retirement with minimal expenses. Cut back on your living expenses before retirement, and try to enter retirement with as few debts as possible. Mortgage and consumer debt payments consume a significant portion of most people's income. Pay off those debts by retirement, and you can significantly reduce your cost of living. This can have a two-fold impact on your retirement. First, it frees up money to set aside for retirement. Second, you get used to a lower standard of living, which should also reduce the cost of your retirement lifestyle.
• Work as long as possible. While there is something very alluring about totally retiring from the work force, the reality is that a long retirement is very costly. Working a few more years can go a long way in helping fund your retirement. Those years are typically your highest earning years, so hopefully you will save significant sums during that period. Also, every year you work is one year you don't have to support yourself with your retirement savings. Once you are ready to retire, try to work at least part-time during the early years of your retirement. That doesn't mean you have to stay at your current job. You can find a totally different job or start a business. Even modest earnings can help significantly with retirement expenses.
]]>The company predicted that 2008 would be the peak of the crisis and that conditions would likely improve starting next year. In the meantime, Fannie Mae has taken steps to preserve their working capital. One of the most visible of those steps for investors is the slashing of the common stock dividend from a previous 35 cents per share to a paltry 5 cents per share. This move reduced the stock’s yield to about 2% annually, compared to the previous double digit yield.
As a result of the announcement, Fannie Mae was trading down more than 17% in early trading on Friday morning. Just minutes after the opening bell, Fannie Mae had plummeted to $8.30 per share, but recovered to $9.00 within the market’s first hour. Indeed, with another bad quarter expected ahead, investors apparently see more downside for the stock in the near term. If Fannie Mae sees recovery more than six months away, it is difficult to see a reason to hold onto the stock, especially in the absence of a meaningful dividend.
Just two days earlier, Freddie Mac (NYSE: FRE) reported a loss of $821 million due to foreclosures and delinquent loans. Freddie Mac and Fannie Mae together account for nearly $1 of every $2 of outstanding mortgage debt in the United States.
• Don’t chase performance. Investors often move out of sectors that are not performing well, investing that money in investments that are currently high performers. But the market is cyclical, and often those high performers are poised to underperform, while the sectors just sold are ready to outperform. Rather than trying to guess which sector is going to outperform, make sure your portfolio is broadly diversified across a range of investment sectors.
• Avoid strategies designed to “get rich quick” in the stock market. The stock market is a place for investment, not speculation. When your expectations are too high, you have a tendency to chase after high-risk investments. Your goal should be to earn reasonable returns over the long term, investing in high-quality stocks.
• Don’t avoid selling a stock because you have a loss. When selling a stock with a loss, an investor has to admit that he/she made a mistake, which is psychologically difficult to do. When evaluating your stock investments, objectively review the prospects of each one, making decisions to hold or sell on that basis rather than on whether the stock has a gain or loss.
• Make sure an investment will add diversification benefits to your portfolio. Diversification helps reduce the volatility in your portfolio, since various investments will respond differently to economic events and market factors. Yet it’s common for investors to keep adding investments that are similar in nature. This does not add much in the way of diversification, while making the portfolio more difficult to monitor.
• Check your portfolio’s performance periodically. While everyone likes to think their portfolio is beating the market averages, many investors simply don’t know for sure. So thoroughly analyze your portfolio’s performance periodically.
• No one knows where the market is headed. No one has shown a consistent ability to predict where the market is headed in the future. So don’t pay attention to either gloomy or optimistic predictions. Instead, approach investing with a formal plan so you can make informed decisions with confidence.
]]>General Motors had earlier offered buyouts and early retirement to its workers and reported that approximately 19,000 workers had accepted the deal by the deadline of July 1st. Most of those employees have already left the payroll. With the new losses, General Motors stated that they may be offering a new round of buyouts for hourly workers in the coming months. As the overall economy continues to struggle, though, jobless claims are on the rise. Workers may do well to consider hanging on to the jobs they’ve got as long as they can.
Pain at the Pump Equals Pain for Car Dealers
While month to month results may vary going forward, we would expect auto sales to remain in decline for the rest of this year and substantially all of 2009. For the time being, the automakers are at the mercy of the broader US economy. Automakers are desperately trying to lower their inventories of SUVs and gas-guzzling trucks as these vehicles look to be the hardest hit by soaring gasoline prices. Once again fuel economy is a key concern for American consumers when searching for a new car.
General Motors’ North American sales the most recent quarter were off by 20% or about $10 billion. Outside of North America, however, General Motors sales showed an increase of $1.7 billion.
General Motors Stock Outlook
In addition to this news, remember that GM announced the suspension of its dividend on July 15th in order to preserve liquidity and increase available cash. As long as fewer Americans are taking a ride in a new General Motors car, the stock looks to continue its own ride downhill. Coming off 52 week highs of over $44/ share, General Motors traded under $10/ share on Monday.
Chevron also reported in their August 1st press release that their refining operations were hurt by the high cost of crude as the price of gasoline did not keep pace with the rising cost of oil. As a result Chevron reported a loss of $734 million in its refining operations.
]]> Declines in Chevron Oil ProductionDue to the fact that each Magic Jack unit comes pre-programmed with a telephone number, you won’t be able to transfer your current phone number, but most people who invest in this product feel that this is a small inconvenience and that the product is totally worth this minor inconvenience. This is especially true considering the offer Magic Jack is currently offering. With this special, when you purchase a Magic Jack device, you get your first year of service absolutely free. You also get a 30-day money-back guarantee if you aren’t satisfied with your service.
Many Magic Jack users love their new phone service, because not only is it the most economical telephone service available, but it also has great portability. The device easily unplugs and goes wherever you and your computer go. It doesn’t matter is you go to a hotel and want to avoid extra room charges for using their phone, or traveling out of the country and want to contact family and friends back in the U.S. for free, Magic Jack can help you achieve these goals for no additional cost.
Anyone can afford $19.95/year, and paying this amount for quality, dependable home telephone service is practically like receiving your phone service free. Most Voip telephone providers charge that amount or more each month, and landline telephone providers usually charge triple that amount each month. So if you want to save hundreds of dollars or more a year, forget Vonage or your local telephone provider and take advantage of the convenience, ease and low cost of Magic Jack.
Aside from a lower price for a mobile home, there are also other advantages to owning a mobile home instead of a traditional home. If for some reason you ever chose to move to a different area but didn’t want to leave your home, you could always take the home with you. You could hire a service that specializes in moving relocating mobile homes and take the home wherever you wish to move, as long as you have an appropriate lot to place the home on.
If on the other hand you don’t plan to move for a while, and whenever you do you will move to a new home, there are ways to set your mobile home up on a on a permanent foundation on a private lot to make it look similar to a traditional non-mobile home. Visitors are often unable to distinguish mobile homes set up in such a way from regular houses. Some mobile homeowners choose to build onto their mobile homes and add extra rooms for extra storage and space.
If you would like to own your own home someday soon yet don’t have the money to pay a hefty monthly mortgage payment, why not consider a brand new, luxury mobile home? If you do decide to purchase a mobile home but choose to totally eliminate a monthly payment, you could still purchase one with cash, which would give you even more of a substantial savings. Given the right deal, you could pay less for a nice used mobile home, including renovations and updates, than you would for a down payment on a traditional home.
One thing that you need to remember when you’re renting out properties is to ask for a reasonable security deposit, which is often referred to as a damage deposit. This deposit protects you in case there is some type of damage once your renter’s move out. If there is any damage, you can simply subtract the amount of the damage from the deposit and refund the remaining amount. Asking an unusually high amount for a security deposit can really hurt your chances of renting out the properties. Most people agree that a deposit equivalent to a month’s rent is reasonable, but anything more, such as separate cleaning fees, can cause perspective tenants to search elsewhere. With the economy in its current undesirable state, many people simply can’t come up with a hefty security deposit in addition to the first month’s rent. One thing that you could do to increase your chances of renting out the properties regardless of the amount of the deposit is to allow the tenants to pay the deposit in increments.
If you’re having trouble renting out a property and you have adequate advertising, as well as plenty of responses, there may be some things that you need to check. If the unit is extremely outdated, doesn’t have any amenities, or is in disrepair, you should definitely make some improvements before you can expect to rent it out. Even small and inexpensive changes can make a big difference, such as removing old, unsightly wallpaper and applying a fresh coat of paint, or removing old stain-covered carpet. Remember: if you wouldn’t live in one of your rentals because of its unattractive conditions, you can’t expect others to, either.
If merely having a sign in front of the units that you have for rent and/or placing an ad in your local newspaper hasn’t helped to bring enough potential tenants, one way that will definitely bring many interested individuals is to post your listings on Craigslist. Just about everyone knows how popular Craiglist is, and the fact that it’s free to place as many ads as you like is certainly a plus. By going this route, you’re bound to get numerous responses, maybe more than you can handle, actually.
By having a rigid approval process, you could possibly enable you to locate some decent, responsible tenants to rent your properties. On the other hand, such a process may cause you to have a difficult time renting them out. Not everyone has great credit, but just because perspective tenants may have less-than-perfect credit doesn’t mean that they aren’t responsible or won’t pay their rent on-time each month. Instead of checking credit, one thing that can be just as helpful in helping you locate the best possible tenants is to perform background, rental history, and job reference checks. These checks will still help prevent you from renting to people who have had trouble paying their rent in the past, but without the necessity to delve into interested candidates’ past credit background.
There is no reason to have your rental properties sitting empty for months when you could be making a regular monthly income from each one you own. Empty units increase the likelihood of vandalism, and they also cost you more money if you are still paying a mortgage on the houses or apartments. This is why ensuring that each and every unit is occupied at all times should be your main concern. It’s not difficult to locate responsible renters, and you don’t even have to spend a great deal of money on advertising. As long as you have the level of determination and energy necessary to seek the appropriate tenants for your rentals, it’s very unlikely that any of your units will remain unoccupied for very long.
One obvious reason why people choose VOIP instead of a regular landline phone is because of the massive saving that is often involved. Consumers can save hundreds of dollars a year while enjoying free features, including voicemail. If you frequently use many of the popular phone features yet hate paying the high cost for landline service, internet phone service may actually be a good idea for you. Voice mail alone can cost as much as $10 a month with many landline phone providers, so this is evidently a great way to “have your cake and eat it too.”
Surprisingly, many providers of Voip service haven’t been providing the best customer service and technical support. Either customer service isn’t available when consumers require assistance, or the assistance provided is substandard. Whatever the case is, Voip users haven’t been too impressed with many of the internet phone providers. Of course some customers have been satisfied with their phone provider’s customer service, but if a majority of customers are receiving poor service, it isn’t a good thing for the consumer or the company.
Many VOIP users have complained of poor sound quality, whether they’re experiencing trouble with static on the line, difficulty hearing the person they’re speaking with, or the other party is unable to hear the Voip subscriber. This can be very frustrating, as well as a total waste of money. In this case, it’s not worth it to pay a lower phone bill if you can’t rely on the service that you’re paying for. There are some of the more well-known companies like Vonage, for instance, that may be somewhat more reliable, but Voip service is notorious for problems, unfortunately. Perhaps with constant improvements Voip service will soon become as reliable as landline service, but it hasn’t yet reached that point.
If you have been lucky enough to choose a Voip company that provides superior service, including technical support, and you don’t have many problems, if any at all, then Voip service may very well be worth it for you. Paying approximately $20/month for unlimited calls anywhere in the United States, the ability to use free phone features, as well as voice mail, is a great deal less than paying approximately $75 a month for the same with a landline. If you can save $55 a month, then you have obviously made an excellent choice. On the other hand, if your phone service is of poor quality, whether it’s the phone service itself or customer service, then you may be better off opting for an unlimited mobile phone plan or either basic phone service with minimal features, in order to keep your bill low each month.
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