Nowadays, it is considered to be a complete misconception that there is a requirement of a financial management software if a business is owned or if there are multiple sources of income to be tracked on. This is because anyone earning money and spending them is bound to benefit from having free personal finance management software to depend on for their personal accounting needs.
The notion of whatever is considered free is most likely below par, is regarded to be another misconception. This is because in the case of free personal finance management software, open-source or freeware solutions exist which are usually web-based, that work as competently and instinctively like the other financial management software. Here, one needs to think how to choose and which one to choose for application to the requirements. It is important to seek top tips from most of the IT experts, who elucidate that it pays to read every software reviews every time, including those performing financial management tasks. These tips in the form of reviews frequently appear on the desktops and IT magazines, as well as on technological websites.
The functionalities and features of this software also have to be compared. If it is required to choose between a complex suite of financial management software and the vital one mechanizing the most common processes, the best option is to choose the basic one, especially if one is going for using the software for tracking speculation assortment. But in every case, a software will be required that is able to support such types of compound connections. Comparisons are also required for planning budget-making modules of the obtainable software, along-with their capacity of tracking tax-related monetary issues.
Doing billing, payroll and invoicing would be added advantages for the free personal finance management software. With the free personal finance management software, one can access financial health score. The software also detects financial position according to the information provided, and discloses the financial position of the individual. The free personal finance management software is programmed to provide scores in the financial areas and also provides necessary advice for amendments. The free personal finance management software provides relevant advices for all personal finances that are considered to be exceptional and matter-of-fact.
For more info: http://www. debteye.com
Article Source: http://www.articlesbase.com/debt-consolidation-articles/free-personal-finance-management-software-being-thrived-on-4613600.html
Saturday, April 16, 2011
You Are About to Fire Your Financial Advisor!
The number one fear of the public used to be public speaking but that fear has been replaced. The new fear has become out living ones money in retirement. This fear was more realized after 2008, when the old strategy of buy and hold and diversification was thrown out the window when people saw their portfolios drop by thirty to fifty percent in just a few months. For example if you had saved up five hundred thousand dollars you could of seen your portfolio drop to three hundred and twenty-five thousand or worse two hundred and fifty thousand in less than one year. The problem is that most people still have their money in the same types of investments that lost them all of their money just a few years ago. Most people think the financial storm has passed but that's just not true. Have you seen oil prices lately or been to the grocery store to buy a gallon of milk or ice cream. Food prices have shot up thirty to sixty percent depending on the department. One of the reasons stated that Egypt was in such turmoil was the drastic rise in food prices that seemed to happen overnight along with high unemployment. If you do any research on why food prices shot up drastically in the Middle East you will find that the cause of high food prices leads back to the mortgage collapse in two thousand eight. The Band Aid solution was for the Federal Reserve which is not a government institution. Decided to just print more money and more money, then to give all of that money for free to the banks calling it a bail out, now the banks were strong on paper again and their stock prices shot up. The CEO's of these large banks were now able to take a large bonus for the great job they had done at making money for their financial institutions. Then banks decided not to loan out this money like they were supposed to, all they did was buy T Bills that were again printed by the Federal Reserve for a profit. So the Federal Reserve gives the biggest banks in the world free money and then creates notes Federal Reserve notes for them to buy at a profit to the banks. Then again the banks post a profit on Wall Street and their stock prices soar. Bank of America for example made more money in fees then they made in loans in two thousand nine, these fees were fees like overdraft protection, credit card charges. Not lending money.
So why should you care about banks making money out of nothing and food riots in other countries or why it started in the first place. Well the first reason is you have to look at the price of oil and how that affects your gas price, and you also have to notice your grocery bill has been steadily increasing over the last year. Most people don't take notice until things have gotten so bad there is not much you can do about it, but today you can do something about it. We can vote the right people into office that will stop the madness of big government bail outs, and the devaluing of our dollar by running the printing presses none stop. If we don't vote with common sense, meaning that you vote for those who believe that government will not solve our problems and it must be drastically smaller than we can solve this problem, but if we don't there is not much anyone can do to stop the financial suicide that is coming in just a few short years if not sooner to America.
So what happens if you do everything you can but the government does not shrink in size the money printers keep printing more and more money, how are you supposed to protect yourself? The answer is different than most people think, its insurance, used as an investment vehicle. This is not your grandparents insurance though this is equity index universal life insurance that has averaged over eight percent the last four years. The worst four years of the stock market in history. The whole time the money was tax free, that's the equivalent of getting a twelve to fourteen percent return in the market. Some years you can get as much as a thirteen percent return, still all tax free, and you can fund these accounts with as much money as you want, no matter how much money you make. You never have to take any money out if you never want to, unlike other accounts in which the government requires you to start taking money out at seventy and a half. Plus the money comes out completely tax- free; this is the most important part because you do not know what taxes will be in the future. I predict taxes will be higher. What do you think?
So the question is, do you trust your fellow citizens to vote in people who will make the government smaller year in and year out? Do you trust the Federal Reserve to stop printing money? Do you trust the Government to keep your taxes in the future the same or lower? If you answered no to any of these questions then you need the strategy I just talked about equity index universal life insurance. Your money is one hundred percent protected to never lose another penny, and grow tax free at an amazing high rate of return. For example whole life insurance vs. equity index universal life insurance, which both have their purposes? Whole life is more for one hundred percent guaranteed rate of return. These returns are around three to five percent per year every year. Equity Index Universal Life Insurance returns are seven percent on average, but are not guaranteed like Whole Life policies. You can never lose any of your money in either policies but there different policies for different people and where they are in their life. You should always talk to your financial advisor to make sure any one of these policies are right for you but if they have never heard of them or state they are a waste of time then you should get a second opinion. Your kids will thank you in your golden years.
Article Source: http://EzineArticles.com/6023468
So why should you care about banks making money out of nothing and food riots in other countries or why it started in the first place. Well the first reason is you have to look at the price of oil and how that affects your gas price, and you also have to notice your grocery bill has been steadily increasing over the last year. Most people don't take notice until things have gotten so bad there is not much you can do about it, but today you can do something about it. We can vote the right people into office that will stop the madness of big government bail outs, and the devaluing of our dollar by running the printing presses none stop. If we don't vote with common sense, meaning that you vote for those who believe that government will not solve our problems and it must be drastically smaller than we can solve this problem, but if we don't there is not much anyone can do to stop the financial suicide that is coming in just a few short years if not sooner to America.
So what happens if you do everything you can but the government does not shrink in size the money printers keep printing more and more money, how are you supposed to protect yourself? The answer is different than most people think, its insurance, used as an investment vehicle. This is not your grandparents insurance though this is equity index universal life insurance that has averaged over eight percent the last four years. The worst four years of the stock market in history. The whole time the money was tax free, that's the equivalent of getting a twelve to fourteen percent return in the market. Some years you can get as much as a thirteen percent return, still all tax free, and you can fund these accounts with as much money as you want, no matter how much money you make. You never have to take any money out if you never want to, unlike other accounts in which the government requires you to start taking money out at seventy and a half. Plus the money comes out completely tax- free; this is the most important part because you do not know what taxes will be in the future. I predict taxes will be higher. What do you think?
So the question is, do you trust your fellow citizens to vote in people who will make the government smaller year in and year out? Do you trust the Federal Reserve to stop printing money? Do you trust the Government to keep your taxes in the future the same or lower? If you answered no to any of these questions then you need the strategy I just talked about equity index universal life insurance. Your money is one hundred percent protected to never lose another penny, and grow tax free at an amazing high rate of return. For example whole life insurance vs. equity index universal life insurance, which both have their purposes? Whole life is more for one hundred percent guaranteed rate of return. These returns are around three to five percent per year every year. Equity Index Universal Life Insurance returns are seven percent on average, but are not guaranteed like Whole Life policies. You can never lose any of your money in either policies but there different policies for different people and where they are in their life. You should always talk to your financial advisor to make sure any one of these policies are right for you but if they have never heard of them or state they are a waste of time then you should get a second opinion. Your kids will thank you in your golden years.
Article Source: http://EzineArticles.com/6023468
Bad Credit Loans - Financial Crunches Can be Managed Well
Buying for the better bad credit loans? Then you merely know that it can be huge time consuming and irritating. But there are number of lenders who provide monetary for individual's with poor credit if you know where to search from. Firstly, you should analyze that poor credit interest rates are mostly higher than for someone with a great credit ratio.
This does not mean that you can't buy and compare specific rates and terms to avail the best credit loan. It's always essential to do your detailed research before you accept due to it could save you a good deal of funds. There are a number of places to support you with your search so you will end - up with the best credit loans which are accessible.
Not many banks are open to monetary for individual's with poor credit but some are. This is particularly true that if you have an accepted accounts with the bank now and also have been a consistent customer. A poor credit bank loan is the better place to start with as you are before – hand doing business with them as well. That usually gives you a better leverage along with their loan agents as they might feel because you are existing as a customer that you might have the capability to repay the loan better.
A famous alternative to a unsecured bad credit loans or going to a lending institution for a loan that is a bad credit bank loan through the mode of Online. Such poor credit funds lenders provide you loan schemes from the satisfaction of your computer. Number of online poor credit funds lenders provide financing for individual's with poor credit or any type of other credit. Some of such Online lenders have much more competitive interest rates along with the terms and conditions because of a low over – head. So, easily avail them and solve your financial troubles with ease.
http://www.articlesbase.com/loans-articles/bad-credit-loans-financial-crunches-can-be-managed-well-4613694.html
This does not mean that you can't buy and compare specific rates and terms to avail the best credit loan. It's always essential to do your detailed research before you accept due to it could save you a good deal of funds. There are a number of places to support you with your search so you will end - up with the best credit loans which are accessible.
Not many banks are open to monetary for individual's with poor credit but some are. This is particularly true that if you have an accepted accounts with the bank now and also have been a consistent customer. A poor credit bank loan is the better place to start with as you are before – hand doing business with them as well. That usually gives you a better leverage along with their loan agents as they might feel because you are existing as a customer that you might have the capability to repay the loan better.
A famous alternative to a unsecured bad credit loans or going to a lending institution for a loan that is a bad credit bank loan through the mode of Online. Such poor credit funds lenders provide you loan schemes from the satisfaction of your computer. Number of online poor credit funds lenders provide financing for individual's with poor credit or any type of other credit. Some of such Online lenders have much more competitive interest rates along with the terms and conditions because of a low over – head. So, easily avail them and solve your financial troubles with ease.
http://www.articlesbase.com/loans-articles/bad-credit-loans-financial-crunches-can-be-managed-well-4613694.html
Tuesday, March 29, 2011
Mezzanine Financing - A Powerful Financing Vehicle for Growth : By Chris Dobbin
Mezzanine financing ("Mezz") is a little known strategy available for privately held businesses and publicly traded companies that allows a strong performing company to increase its financial leverage in certain transactions. Generally speaking, mezz financing offers the features of both debt (regular interest and principal payments) and equity (options or warrants). Mezz debt will rank behind senior debt but ahead of equity holders in terms of security.
Mezzanine financing is available for companies with strong cash flows. Although there are some limited exceptions in Canada, the majority of mezzanine lenders require historical cash flows to be at a minimum of $2M when looking at historical performance over a three year term.
Companies should consider using mezz financing when traditional senior debt has been maximized but there are additional leverage opportunities available as a result of strong cash flows prior to raising dilutive equity. Mezz financing is generally used for acquisitions (including leveraged buyouts), expansion, recapitalizations, and management buyouts and is prevalent in both operating company situations as well as certain real estate development scenarios.
While Mezzanine financing can be structured in any number of different ways, the common elements of mezzanine financing are as follows:
1. Cash interest - Regular interest paid on a periodic basis similar to paying term debt;
2. PIK (Payment in Kind) Interest - A stated amount of periodic interest that is actually added to the principal amount of a loan which is usually paid back as a bullet payment at the end of the term.
3. Ownership - The lender will receive an option or warrant to convert to equity. Generally, in private company situations, the equity is repurchased by the owner(s) over time.
Since the target total annualized return for mezzanine lenders ranges from 18-21%, it should be noted that mezzanine lenders usually work with the primary bank in structuring their deals to ensure that the cash interest portion charged on the financing is not prohibitive to the business, thus allowing greater flexibility in the overall capital structure. It should also be pointed out that it is possible to achieve an 85%-90% loan to cost ratio with mezzanine financing. In addition, mezzanine financing is usually treated as equity by senior lenders for purposes of financial covenants.
In today's lending environment, it is common to see senior term debt issued at 3.5 times EBITDA (Earnings Before Interest Tax Depreciation and Amortization) with mezzanine debt adding another 1 times EBITDA for total financing of 4.5 turns of EBITDA. As an example, it is conceivable that a strong cash flow company with $2M of cash flow (EBITDA) could borrow $7M of senior debt and another $2M of mezzanine debt for $9M of total financing. Given the strong emphasis placed on cash flow, lenders are very meticulous in their due diligence process.
In the United States, there are hundreds of lenders directly involved mezzanine financing. In Canada, the number of credible lenders is much smaller. The organizations involved in mezzanine financing include private investors, insurance companies, mutual funds, pension funds, certain government crown corporations, and chartered banks.
Business owners should consider the advantages of mezzanine financing prior to raising equity in the private or public markets.
Chris Dobbin, CA is the President of Precipice Capital, a Halifax based investment bank and exempt market dealer specializing in corporate finance for privately held and publicly-traded businesses throughout Canada.
Article Source: http://EzineArticles.com/?expert=Chris_Dobbin
Article Source: http://EzineArticles.com/6086094
Mezzanine financing is available for companies with strong cash flows. Although there are some limited exceptions in Canada, the majority of mezzanine lenders require historical cash flows to be at a minimum of $2M when looking at historical performance over a three year term.
Companies should consider using mezz financing when traditional senior debt has been maximized but there are additional leverage opportunities available as a result of strong cash flows prior to raising dilutive equity. Mezz financing is generally used for acquisitions (including leveraged buyouts), expansion, recapitalizations, and management buyouts and is prevalent in both operating company situations as well as certain real estate development scenarios.
While Mezzanine financing can be structured in any number of different ways, the common elements of mezzanine financing are as follows:
1. Cash interest - Regular interest paid on a periodic basis similar to paying term debt;
2. PIK (Payment in Kind) Interest - A stated amount of periodic interest that is actually added to the principal amount of a loan which is usually paid back as a bullet payment at the end of the term.
3. Ownership - The lender will receive an option or warrant to convert to equity. Generally, in private company situations, the equity is repurchased by the owner(s) over time.
Since the target total annualized return for mezzanine lenders ranges from 18-21%, it should be noted that mezzanine lenders usually work with the primary bank in structuring their deals to ensure that the cash interest portion charged on the financing is not prohibitive to the business, thus allowing greater flexibility in the overall capital structure. It should also be pointed out that it is possible to achieve an 85%-90% loan to cost ratio with mezzanine financing. In addition, mezzanine financing is usually treated as equity by senior lenders for purposes of financial covenants.
In today's lending environment, it is common to see senior term debt issued at 3.5 times EBITDA (Earnings Before Interest Tax Depreciation and Amortization) with mezzanine debt adding another 1 times EBITDA for total financing of 4.5 turns of EBITDA. As an example, it is conceivable that a strong cash flow company with $2M of cash flow (EBITDA) could borrow $7M of senior debt and another $2M of mezzanine debt for $9M of total financing. Given the strong emphasis placed on cash flow, lenders are very meticulous in their due diligence process.
In the United States, there are hundreds of lenders directly involved mezzanine financing. In Canada, the number of credible lenders is much smaller. The organizations involved in mezzanine financing include private investors, insurance companies, mutual funds, pension funds, certain government crown corporations, and chartered banks.
Business owners should consider the advantages of mezzanine financing prior to raising equity in the private or public markets.
Chris Dobbin, CA is the President of Precipice Capital, a Halifax based investment bank and exempt market dealer specializing in corporate finance for privately held and publicly-traded businesses throughout Canada.
Article Source: http://EzineArticles.com/?expert=Chris_Dobbin
Article Source: http://EzineArticles.com/6086094
Behavioral Finance and Your Investments Article: By Steven Pomeranz
Ever wonder why markets make sudden moves from one extreme to the other, or why markets may decline in the face of good news and rise on bad? Seems crazy, right?
Well, many times stock market movements are based on more than new information such as earnings reports or corporate downgrades... markets are quite often moved by investor sentiment. Psychological factors affect not only the average investor, but also professional money managers who tend to be driven by greed, euphoria and fear!
Behavioral Finance
Believe it or not, there is a legitimate field of study which seeks to quantify the impact of emotions, psychology and behavior on investing and financial decisions - it's called Behavioral Finance.
Behavioral Finance teaches us that just as the stock market operates in up and down cycles, markets also operate on their own "cycle of market emotions". Interestingly these two cycles tend to move in tandem.
For example, when the market is at its peak, most investors are in a state of emotional euphoria. Then as the market trends downward toward a bottom, investors' emotions become darker and more fearful, shifting from slight anxiety to despondency or depression.
This is the shift which can have the greatest impact on your decisions and investment results.
A Little Fun....
Take a short quiz to gauge your investor temperament.
A wager is offered where you must pick one of the following choices:
Wager (Investment) A: Gives you a 50% chance of gaining $1,000, and a 50% chance of gaining $0.
Or
Wager (Investment ) B: Gives you a 100% chance of gaining $500.
Which do you chose?
If you chose B then you are like most investors who are careful to avoid losses and concentrate on gains.
If you chose A, you are concentrating on the chance of winning $1,000.
Interestingly, both bets are statistically the same. Wager A has the same statistical outcome as wager B because the average gain is the same. And yet the overwhelming majority chooses Wager B.
Behavioral Finance refers to this as Loss Aversion which refers to people's tendency to strongly prefer avoiding losses to acquiring gains. Some studies even suggest that this aversion is twice as powerful as the desire for gains.
Avoiding loss by refusing to sell an investment when it starts to deteriorate can cause permanent destruction of your wealth. Understanding loss aversion as a personal trait can be the difference between investment success and failure.
Key Takeaways-What to do.
Loss Aversion is one of many behaviors to keep in mind when you make investing decisions-here is the summary:
* Emotional and psychological factors impact our decisions.
* People will base decisions on perceived losses more than perceived gains. (That's what our quiz also showed us.)
* Losses have more of an emotional impact than equivalent gains. This reinforces the earlier point that individuals are more loss-averse than gain-driven.
* Investment decisions are usually based on beliefs and feelings and not on facts. So even though you may do a lot of analysis on a stock, ultimately, it's perhaps your emotions that influence how and when you pull the trigger. Unfortunately investing needs to be strictly non-emotional so the impact on your results can be quite devastating.
Things to Remember
So based on all of the above... when investing:
* Remove as much emotion as possible and stick to your game plan.
* Do your research and due diligence, and understand the upsides and risks.
* If your investment is solid, do not deviate from it just to follow the masses or to time the market. Hang tight, ride out the storms, and you will come out better-off in the end. (Remember how Buffet sat out the dot-com boom despite a lot of heavy criticism, but came out a hero.)
Fundamentals impact market moves, but so does investor behavior. So avoid making investment mistakes, and allow professional advisors to manage your investments or guide you through the process.
If you want to know more about your risk tolerance and investor sentiment, contact us at 1-866-Money-01.
Source: http://ezinearticles.com/?Behavioral-Finance-and-Your-Investments&id=6110501
Well, many times stock market movements are based on more than new information such as earnings reports or corporate downgrades... markets are quite often moved by investor sentiment. Psychological factors affect not only the average investor, but also professional money managers who tend to be driven by greed, euphoria and fear!
Behavioral Finance
Believe it or not, there is a legitimate field of study which seeks to quantify the impact of emotions, psychology and behavior on investing and financial decisions - it's called Behavioral Finance.
Behavioral Finance teaches us that just as the stock market operates in up and down cycles, markets also operate on their own "cycle of market emotions". Interestingly these two cycles tend to move in tandem.
For example, when the market is at its peak, most investors are in a state of emotional euphoria. Then as the market trends downward toward a bottom, investors' emotions become darker and more fearful, shifting from slight anxiety to despondency or depression.
This is the shift which can have the greatest impact on your decisions and investment results.
A Little Fun....
Take a short quiz to gauge your investor temperament.
A wager is offered where you must pick one of the following choices:
Wager (Investment) A: Gives you a 50% chance of gaining $1,000, and a 50% chance of gaining $0.
Or
Wager (Investment ) B: Gives you a 100% chance of gaining $500.
Which do you chose?
If you chose B then you are like most investors who are careful to avoid losses and concentrate on gains.
If you chose A, you are concentrating on the chance of winning $1,000.
Interestingly, both bets are statistically the same. Wager A has the same statistical outcome as wager B because the average gain is the same. And yet the overwhelming majority chooses Wager B.
Behavioral Finance refers to this as Loss Aversion which refers to people's tendency to strongly prefer avoiding losses to acquiring gains. Some studies even suggest that this aversion is twice as powerful as the desire for gains.
Avoiding loss by refusing to sell an investment when it starts to deteriorate can cause permanent destruction of your wealth. Understanding loss aversion as a personal trait can be the difference between investment success and failure.
Key Takeaways-What to do.
Loss Aversion is one of many behaviors to keep in mind when you make investing decisions-here is the summary:
* Emotional and psychological factors impact our decisions.
* People will base decisions on perceived losses more than perceived gains. (That's what our quiz also showed us.)
* Losses have more of an emotional impact than equivalent gains. This reinforces the earlier point that individuals are more loss-averse than gain-driven.
* Investment decisions are usually based on beliefs and feelings and not on facts. So even though you may do a lot of analysis on a stock, ultimately, it's perhaps your emotions that influence how and when you pull the trigger. Unfortunately investing needs to be strictly non-emotional so the impact on your results can be quite devastating.
Things to Remember
So based on all of the above... when investing:
* Remove as much emotion as possible and stick to your game plan.
* Do your research and due diligence, and understand the upsides and risks.
* If your investment is solid, do not deviate from it just to follow the masses or to time the market. Hang tight, ride out the storms, and you will come out better-off in the end. (Remember how Buffet sat out the dot-com boom despite a lot of heavy criticism, but came out a hero.)
Fundamentals impact market moves, but so does investor behavior. So avoid making investment mistakes, and allow professional advisors to manage your investments or guide you through the process.
If you want to know more about your risk tolerance and investor sentiment, contact us at 1-866-Money-01.
Source: http://ezinearticles.com/?Behavioral-Finance-and-Your-Investments&id=6110501
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