Tax Law Changes to Watch Out For

Tax time always comes around to fast so to prepare yourself for this years tax return your first stop probably should be to check out the new tax laws. Some of the things such as new tax brackets, 401k and related contributions limits go up, and standard deductions have gone up among many other things so before you do your tax check out this site to see if you fit into any of the changes.
2005 Tax Law Changes

# Tax News

Mutual Funds For The Long Term?

In a column on yahoo finance wealthy investor, author and entrepreneur Robert Kiyosaki explains his thoughts on long term investing in mutual funds. He says continual mutual fund fees usually eat up a lot of the profits which doesn't make them a good long term investment option and as most funds do not have to disclose the fees they charge can make them an even worse proposition. He says that he occasionally buys them himself but never for a long time and recommends index funds for those who want to make this type of investment.

Why Mutual Funds Are Lousy Long-Term Investments
"This past Christmas, I was at a party, and a man who's about 10 years older than I am asked me what mutual funds I invested in. My reply was "None. I rarely invest in mutual funds because of the lack of transparency. I don't know their fees. And I know there are hidden expenses they don't need to disclose to investors". Yahoo Finance

# Stock Market News

Warren Buffett gives to Bill Gates

The second richest man in the world plans to give a large portion of his many billions to the richest man in the world. The famous investor Warren Buffett has announced that he will be giving a substantial amount of his estimated $44 billion to the Bill and Melinda Gates Foundation.

Buffett will give about $30 billion to the Gates Foundation, making it the largest charitable donation ever to be made. The foundation currently gives about $1.5 billion away each year, which will now be matched with another $1.5 billion each year by Warren Buffett.

The world's biggest philanthropic foundation just got a whole lot bigger
Andrew Carnegie gave away $7.2 billion, measured in today's dollars. John D. Rockefeller and his eponymous son gave away a combined $12.6 billion. Mr. Buffett's donation to the Gates Foundation of 10 million shares in his investment company, Berkshire Hathaway Inc., is worth $30.7 billion at today's share price and may be worth substantially more by the time all the stock is handed over. But the scale of Mr. Buffett's philanthropy is matched by its good sense. Rather than insisting that his name be engraved on libraries and concert halls built with his money, Mr. Buffett has chosen to give through fellow billionaires who have already figured out how to use philanthropic money effectively. Like the master investor that he is, Mr. Buffett has identified star managers and taken a stake in their enterprise." Washington Post

# Philanthropy News, Warren Buffett, Bill Gates

Money Making for Young People

For something different this story focuses on young people and the things they can do to make a bit of money for themselves. There are some good idea's there for someone young and with some determination to do something for themselves. Doing a bit of work during their free time can go a long way to giving young people an edge when they finally do start looking for a job, so it might be worth a look into for some idea's.

9 Idea's for Teen Businesses
"Do you like to be outside or on the computer? Do you like to make things or fix things? Would you rather hang out with animals or kids than anyone else? To help you get a feel for the world of possibilities awaiting you, we've selected nine business ideas that should suit any teen who has a desire to start a business". Entrepreneur

# Entrepreneurial News

Making Money with Stocks

Looking for some advice on how to make money from stocks? Over at the Motley Fool there's an article by James Early, influenced by the investing techniques of Warren Buffett and Peter Lynch.
Here's his top ten tips for choosing the right blue chip stocks to add to your portfolio..

1. Find strong -- but not majority -- management ownership.
2. Look for management that's been with the business a long time.
3. Seek businesses with dominating, unapproachable brands.
4. Find companies whose returns on capital exceed their costs of capital.
5. Hunt for stocks with prominent negative catalysts that the market may be focusing excessively on.
6. Favor companies with the potential to go global -- it leaves more room for growth.
7. Identify businesses pursuing less-contested markets or niches.
8. Find companies unafraid to return money to shareholders -- it says a lot about the character of management.
9. Don't automatically shy away from new management that has proved itself in related situations -- management change can be a great turnaround catalyst.
10. Buy companies whose businesses and industries you know really, really well.

Read the rest of the article over at Motley Fool.

# Stock Market Investing

Famous Business Quotes

I've always found inspiration in the words of successful people, so here's a few business quotes..

• My biggest motivation? Just to keep challenging myself. I see life almost like one long University education that I never had.. every day I'm learning something new.
  Richard Branson
• You are neither right nor wrong because the crowd disagrees with you. You are right because your data and reasoning are right.
  Warren Buffett
• Microsoft has had clear competitors in the past. It’s a good thing we have museums to document that.
  Bill Gates
• Education is the foundation of success. Just as scholastic skills are vitally important, so are financial skills and communication skills.
  Robert Kiyosaki
• Deals are my art form. Other people paint beautifully on canvas or write wonderful poetry. I like making deals, preferably big deals. That's how I get my kicks.
  Donald Trump

# Famous Business Leaders

Value Investing Article

A new article has been added by Steve Selengut of Sanco Services, about Value Investing. He talks about buying value stocks and what to look for. Five tips he suggests include..

1. An Standard & Poor Rating of B+ or Better.
2. A History of Profitability.
3. A History of Regular Dividend Payments.
4. A Reasonable Price Range.
5. A NYSE Listed Security.

Read the rest of the value investing article here.

# Investing Value Updates

5 Retirement Truths

People sometimes think that their retirement will be the same as their parents but the truth is a lot has changed since they retired and today lifestyles are expensive and we live longer! Most people don't get pension plans anymore, and social security payments are very low considering the cost of living these days. So it's all up to your savings as to how well you will live in your retirement years, These 5 truths about your retirement might help you realize the importance of your own correctly invested savings rather than planning to rely on pension plans or social security.

5 Retirement Must-Knows
"In an effort to kick-start your retirement plans, we'll take a cue from the animal kingdom's "fight or flight" mentality and scare you into action: If you don't do something right now to assure your retirement, you'll end up living in an alley fighting the stray cats for your dinner". The Motley Fool

# Retirement Planning

Should You Save For College or Retirement

Many parents want to send their kids to ivy league schools to give them the best education but many parents and their kids regret spending so much money when it comes to the parents retiring. Parents sometimes need help from their kids during retirement because their retirement savings were spent on children's education.
So the question is how do you save for your retirement and for your kids education at the same time? Or maybe do you put your retirement first or your kids education?
Some advice and insight into these questions is offered in this article.

Balancing Kids College and Retirement Saving
"It'’s the double-whammy of parenthood. You need almost $700,000 saved up if you want to retire today on a modest yearly income of $40,000. Meanwhile, the nation'’s most exclusive colleges cost more than $30,000 a year and you don'’t want to deprive your kids of the opportunity to attend.

Little wonder then that the two most frequently asked questions of financial planners are:

• Which goal is more important?
  
• How can I possibly save for both?

Somehow, parents of today with already grown children managed to accomplish this dual feat for the most part. You'’ve probably compared yourself to them and thought, “How come I can'’t do it too?” It'’s hard enough to accomplish one goal, much less two.

The real answers may make you feel better to know that you'’re not doing something fundamentally wrong that your parents did right. (It also gives you ammunition if they criticize you about your money management.) " MSN Money

# Retirement Planning

Threats to Retirement

This write up about retirement and some of the possible threats to your nest egg has some insight into what you could expect and what to plan for as you get older. Some of the problems people in the 50+ age group can encounter include job loss and ill health which can cost you big time with your retirement savings.

The Hidden Threats to Your Nest Egg
"You've heard the bad news about retirement: traditional pensions are disappearing and Social Security is headed for trouble. But some of the biggest threats to your golden years aren't the ones getting the headlines.

Setbacks like job loss and serious medical conditions are startlingly common in later life, a recent Boston College study has found, and the results can be devastating for those nearing retirement".
MSN Money

# Retirement Planning

Top Paid CEOs

Forbes recently released their review of the top paid CEOs from the leading 500 American companies.
Heading the list at number one is the Chief Executive Officer of Capital One Financial, Richard D Fairbank with a salary of about $249.42 million.

The Top 10 Paid CEOs include
Richard D Fairbank - Capital One Financial - $249.42 million
Terry S Semel - Yahoo - $230.55 million
Henry R Silverman - $139.96 million
Bruce Karatz - KB Home - $135.53 million
Richard S Fuld Jr - Lehman Bros Holdings - $122.67 million
Ray R Irani - Occidental Petroleum - $80.73 million
Lawrence J Ellison - Oracle - $75.33 million
John W Thompson - Symantec - $71.84
Edwin M Crawford - Caremark Rx - $69.66
Angelo R Mozilo - Countrywide Financial - $68.95

What the Boss Makes
"When calculating a chief executive’s total pay, Forbes measures the following for the company's latest fiscal year: salary and bonuses; other compensation, such as vested restricted stock grants, long-term incentive payouts and perks; and stock gains, the value realized from exercising stock options. Because the value of unexercised options is unpredictable, we do not consider them in our tabulation of total compensation."
Read more about business leaders compensation at Forbes.

# Business Leaders

Student Loan Refinancing Confusion

The 1st of July signals a rise in interest rates for college student loans which means more or higher repayments for students. The rate hike of nearly 2 percent has made lenders offer students many refinancing options to lock in lower interest rates and even cashable checks if they meet certain criteria which has resulted in much confusion as to what the best deals are.
Many options sound good but 1 late payment can mean the deal is forfeited. So with the 1st of July fast approaching many students are struggling to work out what will suit them best.

Students Face Flood of Refinancing Offers
"With interest rates on student loans set to rise July 1, lenders are inundating people paying down college debt with a confusing array of aggressive pitches to refinance. Under federal rules, borrowers who consolidate their student loans by the deadline can refinance to lock in current interest rates before they are slated to move much higher. But they face a welter of choices, including numerous incentives from institutions and private lending companies".
Post-Gazette

# Mortgages & Loans

Google Finance Struggle

With the recent release of Google Finance, there have been reports that it has been struggling to compete with already established finance portals like Yahoo Finance. Although users have praised the simple interface of Google Finance, they have not yet offered compelling enough financial tools or resources to make users change to Google.
Google Finance Struggles for Users
"Currently, Yahoo Finance is the most popular personal finance Web site in the U.S., according to research from Hitwise, The Yahoo Finance portal had a 34.9 percent share of the market, as of the week ending June 10, 2006. The next most popular personal finance Web site was MSN MoneyCentral with a 13.67 percent share followed by CNN Money with a 4.50 percent share.
By comparison, Google Finance ranked number 38 for the week ending June 10, capturing only 0.28 percent of all visits to major financial sites. Hitwise measured 988 sites altogether for the June 10 report." TP Tech News

# Google News, Financial News

Bill Gates Stepping Down from Microsoft

The richest man in the world announced this week that he will giving up his daily responsibilities at Microsoft in two years time. After thirty years at the giant software company Bill Gates will be stepping down to work full time at the Bill and Melinda Gates Foundation.
Gates' decision may be right for company
"A day after the Microsoft founder announced plans for a two-year transition from his day-to-day duties, the company's shares closed up 3 cents, at $22.10. It wasn't a ringing Wall Street endorsement, by any means, but it also wasn't the negative reaction that might have accompanied a departure plan from someone who so deeply personifies the company.
"I think Bill is doing a good thing for the company," said Mark Anderson, the Friday Harbor-based publisher of the Strategic News Service technology and communications newsletter." SeattlePi

# Bill Gates News, Major Companies, Stock Market News

Warren Buffett Lunch Auction

If you've got a spare $300,000 sitting around and nothing to spend it on then you might have a chance to buy a lunch for you and 7 of your friends with Warren Buffett. As an annual thing Warren Buffett auctions off lunch with himself to help The Glide Foundation, which offers programs for the poor, hungry and homeless.
It started out as live auctions but has now moved to auction website eBay and has fetched more than $350,000, the auction starts on June 22nd and bidding starts at an incredible $25,000 so get in quick!

Warren Buffett to Auction Another Lunch on eBay
" Billionaire Warren Buffett will auction another lunch on eBay Inc.'s Web site in late June to benefit a San Francisco non-profit, in what has become an annual tradition that last year raised $351,100 from an anonymous bidder". Reuters

# Warren Buffett News, Internet Company News,

Scoble Blogger Leaves Microsoft

Microsoft blogger Robert Scoble is leaving Microsoft for a silicon valley startup company. Scoble started Microsoft off in the world of blogging and is known for his blog posts about the in's and out's of the Software giant. Scoble openly criticised Microsoft when needed even though he was an employee with his insights helping the blog rank 22nd in the world. Scoble Also refuted rumors that he was forced out of Microsoft.

Microsoft Loses Blogging Legend Scoble
"Scoble spearheaded the blogging initiative at Microsoft. He is seen as the world's first corporate blogger, a rank-and-file employee providing the outside world with an inside view of a company which has not been sugar-coated by the PR department". Vnunet.com

# Investing News Blog, Major Company News

Stock Market and Good Finance News

In an attempt to explain why the stockmarket often goes down when good economic news is released, a Motley Fool writer points to Ben Bernanke and interest rates. The article is worth a read for those interested in a simple explanation of the ups and downs of the seemingly irrational financial markets..
Explaining Stock Market Gyrations
"When positive economic news is released, such as lower unemployment figures, rising wages, or growing national productivity, the specter of possible inflation comes out to haunt the market. Economies growing too quickly can spur inflation, with too much currency in the marketplace leading to the weakening of the dollar and rising prices.
To stem inflation, the Fed notches up interest rates to decrease the amount of borrowing and slow down the economy. Rising interest rates renders bonds more attractive, because they offer fixed incomes. Investors pull money back from stocks, which are hit doubly with the threat of shrinking corporate earnings and with the attractiveness of growing bond yields." MSNBC

# Stock Market News, Finance News

Donald Trump Monopoly Board Game

After the success of his reality TV program the Apprentice, Donald J Trump is working with the makers of the successful Monopoly board game makers (Hasboro) to produce a new television series.
Donald Trump said "I've always thought Monopoly was an amazing game and there's a lot of interest in it".
Details of the new television series have not been released, but it will focus on real estate, with the Donald playing a role in the deal. He may or may not be hosting the program as he already has one hit show to host.

# Donald Trump News

BofA Subsidizes Hybrid Cars

The Bank of America has started a plan to eventually offer all of it's 175,000 employee's a $3000 rebate when they purchase a new hybrid gas-electric car adding incentive for employee's to purchase these low emissions vehicles. This rebate coupled with tax incentives could give buyers over $6000 to put towards a new hybrid car making these cars much more affordable.

A few other much smaller companies are also offering rebates of up to $5000 and one even a huge $10,000 bonus for employee's so lets hope this sort of thing will happen more in an effort to reduce America's dependence on oil and reduce pollution.

BofA to Offer Hybrid Car Rebates
"Bank of America Corp. plans to roll out a pilot hybrid vehicle purchase plan for employees today that could eventually make it the nation's largest corporate sponsor of the fuel-friendly cars and sport utility vehicles".
latimes.com

# Socially responsible Investing, World News

Fuel Prices Affecting Business

Fuel prices are now not only having an effect on how much we drive our cars but also on what products we buy. Rising fuel prices are having an effect on not only the cost of goods but also on delivery charges. Some businesses are now cutting back on the amount of deliveries they make and charging more for each delivery, and while this cuts costs it makes customers wait longer and sometimes businesses loss customers. With Oil prices continuing to rise don't expect to get your delivered goods to soon.

Rising Gas Prices Drag on Deliveries
"Fast delivery and same-day service, two favorite ways for small businesses to build relationships with customers, are becoming casualties of higher gas prices.

Some small companies that until recently sent their vans or trucks on several runs a day have been forced to cut back, sometimes to just one. Their customers, meanwhile, have to wait longer, or if they're in a rush, take their business elsewhere".
Yahoo News

# Energy & Oil News

Donald Trump Moving On

Donald J Trump is giving some advice on moving on in his latest post on his blog at the Trump University website. I'm not sure where the Donald gets the time in his busy schedule, but he often comes up with an article or idea that is worth reading once or twice.
Donald Trump talks about how we should objectively analyze our situation and make changes if things are not working out as you hoped. It's not about giving up, but being realistic and following the path of success, rather than the path of frustration or failure that many follow.
There Are Times When You Should Move On
"There was a guy who was a very successful businessman, but his first passion in life was the piano. He was very dedicated and disciplined, and achieved a certain virtuosity, but he finally realized he would never be one of the greats. In other words, he knew he would never be a Horowitz or a Gould, and he had very high standards for himself. So he quit the piano and applied himself to business and he became enormously successful. He just knew that he should move on, and he did. He remained a musician in his private life and maintained a healthy balance for himself with his interests. He said if he had remained a pianist, he would have been frustrated and it would have warped his sensibilities. He did a lot of thinking before he made his move, but he knew it was the right decision." Donald Trump Blog

# Donald Trump News

Australia Racks Up Half a Trillion in Dept

Austalia's private sector (mostly banks) has increased it's foreign dept by another 70 billion since last year taking Australia's total dept to over $500 billion. This amount of dept puts Australia up with some of the most heavily indebted nations such as Turkey, Nigeria and Chile.

Australia Owes Half Trillion
"By the end of March, the debt had reached $493 billion, with borrowing by banks responsible for almost all of the $70 billion increase over the past year. Rising borrowings have since pushed foreign debt past $500 billion.

Foreign exchange markets and credit rating agencies were unruffled by the figures yesterday, but economists warned that the level of debt was making the economy more vulnerable".
News.com.au

# Finance News

Add Commodities to Your Portfolio

Two finance professors have researched the last 44 years of commodities futures prices and have found that they have averaged almost 1% a month since 1959 with average total returns each year at 11%. These figures consistently outperform stock returns but many people are unwilling to dabble into commodities and especially commodities futures saying that it is to much of a gamble. This story explains some history and figures for commodities and might change some peoples thinking, a diverse portfolio is the way to go and commodities have their place.

Precious Commodities
"Even if you have missed the run-up in copper, oil and gold so far, you ought to think about adding hard assets to your portfolio. Futures give you a kind of diversification you can't get from stocks and bonds".
Forbes Money & Investing

# Stock Market News

Bank of China IPO Debut

The debut of the world's largest IPO in six years went as well as some hoped, rising by almost 15%. The Bank of China ignored the bears of Hong Kong to make an impressive debut.
Bank of China soars in $13 billion IPO
"About one in seven people in Hong Kong - 954,000 people - participated in the city's biggest initial public offering, managed by Goldman Sachs, UBS and Bank of China International. Most investors' holdings are modest because of the scramble for shares, so few were "stagging" them by selling for a swift profit yesterday.
Hanging on to Chinese banking stocks has proved worthwhile. Shares in the country's third-biggest bank, China Construction Bank, are now worth 44 per cent more than their listing price in Hong Kong last October, in a $12.3 billion IPO." The Australian

# Stock Market News

Bush Nominates New Treasury Secretary

US President George Bush has nominated Henry M Paulson Jr. who is chief executive officer of a well known financial firm called "Goldman Sachs" to be the next Treasury Secretary. After 3 years John Snow has resigned as Treasury Secretary in yet another shake up of the white house staff. Other recent white house staff changes include Joshua Bolten becoming the new chief of staff, followed by President Bush forcing out CIA chief Porter Goss, then next to go was political adviser Karl Rove and the press secretary Scott McClellan was replaced by Tony Snow.

All of these staff changes are an effort to revive Bush's presidency and popularity after facing his lowest approval ratings since he took office. Mr Paulson seems to be well qualified for the job has received praise and approval from many.

Goldman CEO Replaces John Snow
"Treasury Secretary John Snow resigned Tuesday and U.S. President George Bush nominated Goldman Sachs chief executive officer Henry M. Paulson Jr. as his replacement — another chapter in the shake-up to revive Bush's troubled presidency.

"He has a lifetime of business experience. He has intimate knowledge of financial markets and an ability to explain economic issues in clear terms," President Bush said of Mr. Paulson in a Rose Garden announcement".
The globe and mail

# Political News