Reduced Mortgage or Increased Retirement Savings?

An article from Money Manager in Australia Has come up with an interesting idea of converting your mortgage to an interest only loan to reduce repayments and then pouring as much money as possible into your retirement fund. The idea is that by the time you reach retirement age you will still have a mortgage but you will also have enough money in your Super or 401k fund to pay off your home in one lump sum and be better off financially than you would if you just payed off your home loan. This strategy is better for people of at least 40-50 years old as their are drawbacks and people in this age bracket are getting closer to retirement.

Super Versus Mortgage
"We've had it drummed into us for years by financial advisers - the best investment strategy is to pay off all non-tax-deductible debt as fast as possible. For most of us, that means the home loan.

Pouring all your spare cash into paying off the mortgage reduces the total interest bill and gives a risk-free effective after-tax return equivalent to the home loan interest rate (presently about 7.5 per cent). Plus, when you sell the family home, any capital gain is tax-free.

Now, however, the picture is a little murkier. The Federal budgets proposed changes to superannuation, announced in May, will allow anyone who has reached the age of 60 to withdraw super without paying tax on it. Reasonable benefit limits will be abolished and everyone can contribute a maximum deductible $50,000 a year to super."
Money Manager

# Retirement Planning

Infrastructure Investing Boom

Australian companies involved in infrastructure such as building, hire equipment, laying roads and other essential services are making experts sit up and take notice as many of the quiet achievers are starting to shine. Stocks in these types of companies may have been seen as dull in the past but an infrastructure boom is helping their share price go through the roof.
The story also lists some companies to keep an eye on due to strong growth since their IPO.

Forget diamonds, sewerage may just be your best friend
"Want to get a piece of Australia's secret boom? Forget mining companies for a minute and look to your water supplier and toll road operator.

Diamonds might be a girl's best friend, but where would she be without sewerage companies, fire stations and hospitals? These companies, so long seen as quiet, boring and unsexy, are today part of a huge Australian infrastructure boom where earnings and share prices have shot up.

Last year infrastructure stocks jolted experts awake when the industrials sector rose 11 per cent. Companies such as Worley Parsons and Alinta have leapt 182 per cent and 25 per cent respectively."
Money manager

# Stock Market News

World's Most Expensive Cars

Forbes has put together an impressive list of mega-dollar cars from around the world and come up with the top ten most expensive cars in the world. The Bugatti Veyron (pictured to the left) hold the number one position with a price of $1,192,057 USD.

I would of expected a Ferarri or two to be on the list of world super cars, but they just arn't as exclusive as these little beauties (or ugly monsters, depending on where your taste lies).

Here's the list of super cars for the super rich..

1. Bugatti Veyron 16.4
   Country of Origin: France
   Price: €1,000,000 ($1,192,057)
2. Pagani Zonda Roadster F C12S 7.3, Clubsport version
   Country of Origin: Italy
   Price: $667,321 (global)
3. SSC Ultimate Aero
   Country of Origin: U.S. (Most expensive American car)
   Price: $654,500 (U.S.)
4. Leblanc Mirabeau
   Country of Origin: Switzerland
   Price: €543,000 ($645,084, global)
5. Saleen S7 Twin Turbo
   Country of Origin: U.S.
   Price: €535,000 in Europe ($637,723) Price in U.S.: $555,000
6. Koenigsegg CCR
   Country of Origin: Sweden
   Price: €458,000 in all regions except U.S. ($545,568) Price in U.S.: $540,000
7. Mercedes-Benz SLR McLaren
   Country of Origin: Germany
   Price: $452,750 (U.S.)
8. Maybach 62
   Country of Origin: Germany
   Price: €376,200 ($448,153, Europe) Price in U.S.: $385,250
9. Porsche Carrera GT
   Country of Origin: Germany
   Price: $440,000 (U.S.)
10. Maybach 57 S
    Country of Origin: Germany
    Price: €362,000 in Europe ($430,355)Price in U.S.: $367,000

# Wealth News, Rich Lists

Donald Trump University

A Boston Globe columnist, Alex Beam recently wrote a less than flattering report on the Donald Trump University. Trump U is the online education portal that has been branded in the Donald way, with the Trump logo, and lots of gold everywhere. They offer paid courses and merchandise online.
Here's what Beam says about his experiences..

The relentless pursuit of Trump University
You also receive a subscription to "Inside the Trump Tower," a newsletter chock full of windy little essays. I especially enjoyed the moronic outing, "The End of the MBA is Nigh!" by business guru and self-promoter extraordinaire Tom Peters . It's a quick piece of nothing fluff that never mentions the author's own MBA from Stanford University.
All over the website.. because that's all Trump University is, a website (www.trumpuniversity.com) -- chairman Trump rattles on about the value of extramural "education" like Trump U. To recycle the slur often directed at President Bush, Trump is a man who was born on third base who later made much of hitting a home run; his father was a successful New York real estate magnate and Donald has a graduate degree from the Wharton School. Boston Globe

And this little segment from an article at Forbes is funny..
"Neither Eli Yale nor John Harvard published any books, so Trump already has better credentials than the men behind the two most famous names in education. Or maybe Harvard and Yale are second and third. The biggest name in education is now the man with the biggest name. Unless, and until, Oprah starts a university, Trump is it." Forbes

# Donald Trump News

Defer or Take the Tax Hit

Some people like to defer paying taxes until their good and ready but this column explains how pay tax now can save paying a higher tax rate down the track. Tax rates could increase in the future making you pay more than you want to so read some of the tips and inform yourself!

Knowing When to Take a Tax Hit
"Conventional wisdom holds that it's better to defer taxes as long as possible, but that's not always true. Sometimes you want to pay some taxes now, to avoid paying more later.
Doing that involves a careful calculus: Will your tax rates be higher in the future than they are now? Will paying now save you money later? What about the other uses you could put the money to now?"
Yahoo Finance

# Tax News

Don't Retire Early

The Motley Fool has an article about of all things not retiring early which probably goes against most people's dreams of early retirement but i think they have made some good points which many might not think about. Reasons range from health insurance, holding off social security payments, and even the possibility of not liking retirement which sounds odd but does happen. So have a read and maybe extend retirement by a few years.

Don't Retire Early
"Quick -- if you won the lottery, what would you do?

Many people's first answer would be: "I'd quit my job!" That's the American dream, isn't it? You toil away, doing good work and climbing the ladder of success before retiring early to a life of leisure. What's not to like about that?

Well, believe it or not, there is a bit you might not like about that scenario. A recent issue of Consumer Reports' Money Advisor offered a bunch of reasons why you might not want to retire early -- and, sadly, they make good sense." Motley Fool.com

# Retirement Planning

The Future of Hybrid Cars

One of the worlds largest car makers and leader in the hybrid car market Toyota Motor Corp has released plans to make hybrid vehicles that can have it's batteries recharge by a standard power outlet found in the home. Toyota says the cars will be powered by batteries for as long as possible before the fuel engine takes over reducing fuel consumption to very low levels.
It will be interesting to see whether this idea works or whether ethanol fuel powered cars will become the next big thing.

Toyota Plans Hybrid That Runs on Batteries
"Toyota sees a future in plugging in vehicles instead of simply pulling in for gas. Already a leader in the hybrid market with its Prius sedan, Toyota Motor Corp. plans to develop a hybrid vehicle that will run locally on batteries charged by a typical 120-volt outlet before switching over to a gasoline engine for longer hauls."
Yahoo News

# World News, Major Company News, Energy and Oil News

Windows Vista Update

Microsoft's latest windows operating system called Vista is due out soon and with another beta having been released for testing, hopefully many problems will have been ironed out. With Microsoft hoping to have the OS shipped on PC's in January 07 lets hope it hasn't been rushed and will be relatively bug free. I cant wait to see the next generation of windows and hope it improves on windows XP.

New Build of Windows Vista Released
"Microsoft continues to make changes to Windows Vista as the OS creeps along until its scheduled release later this year. The company today released an interim build of the OS that improves its overall performance and makes specific tweaks recommended by beta testers."
PCWorld

# Major Company News

Hooters Chairman Dies at 69

Robert Brooks was found dead in his home on the weekend. It is still unsure how the chairman of the Hooters chain of stores died, but an autopsy will be conducted this coming week. Brooks was 69 years old.

The Hooters restaurant began back in 1983 and quickly spread across the country and globally, to it's current position of more than 400 stores. Hooters became famous or infamous for the scantily clad waitresses that left little to the imagination.

# Business Leaders

Warren Buffett Interview

Enjoy listening to one of the richest investors in the world? Over at Google Video there's a Warren Buffett interview to watch and listen to. The Buffett interview is with Charlie Rose from the PBS channel in America.
Warren Buffett talks candidly about his life, his investing style, and his very generous gift to the Bill and Melinda Gates Foundation recently.

"When I buy a business I'm usually buying the manager with it. Because I don't know how to run the business. When somebody comes along and says they want to sell their business, I have to look them in the eye, and I have to decide whether they love the money or they love the business. It's Ok to love the money for some, but they have to love the business, they have to have a passion for it." Warren Buffett quote from the Interview

# Warren Buffett News, Warren Buffett Biography

Famous Donald Trump Quotes

Here's some great business quotes by Donald Trump. If you want to hear Trump talk, but don't live in New York, remember you can knock yourself out with the talking Donald Trump doll!

• You can't know it all. No matter how smart you are, no matter how comprehensive your education, no matter how wide ranging your experience, there is simply no way to acquire all the wisdom you need to make your business thrive.
  Donald Trump Quote
• Every day, you'll have opportunities to take chances and to work outside your safety net. Sure, it's a lot easier to stay in your comfort zone.. in my case, business suits and real estate.. but sometimes you have to take risks. When the risks pay off, that's when you reap the biggest rewards.
  Donald Trump Quote
• When employees and employers, even coworkers, have a commitment to one another, everyone benefits. I have people who have been in business with me for decades. I reward their loyalty to the organization and to me. I know that they'll always be dedicated to what we're trying to accomplish.
  Donald Trump Quotes
• When I started out in business, I spent a great deal of time researching every detail that might be pertinent to the deal I was interested in making. I still do the same today. People often comment on how quickly I operate, but the reason I can move quickly is that I’ve done the background work first, which no one usually sees. I prepare myself thoroughly, and then when it is time to move ahead, I am ready to sprint.
  Donald Trump Quote
• I don't make deals for the money. I've got enough, much more than I'll ever need. I do it to do it.
  Donald Trump Quotes

# Business Quotes, Donald Trump News, Donald Trump Bio

Record Oil Prices

With Geopolitical developments making the oil markets jittery, oil has hit a high of $78 a barrel. Among the many challenges for cheaper oil is the worsening Israel and Lebanon fighting. Speculators are fearing that the conflict could spread to other countries in the troubled Middle East region.

Oil prices hit $78 a barrel
"US crude went up to $78.40 a barrel during trading on Friday before settling up 33 cents at $77.03. Crude oil on the New York Mercantile Exchange rose $2.94 - or 4% - during the week. London Brent rose 58 cents to $77.27 a barrel, after jumping to a record of $78.03 a barrel earlier in the day." Aljazeera

# Oil News, World News

Donald Trump Doll

For those that just can't get enough of the New York real estate mogul and star of the Apprentice television program, you can now buy a talking Donald Trump Doll from NBC.

If you squeeze the Donald's stomach he will tell you that you're fired or one of seventeen different sayings from mr Trump.

Here's what NBC says about the Donald doll..
Now, the Donald Trump 12" talking doll can be yours! Fully articulated Donald Trump 12" talking doll features a custom-made suit befitting the approximately 1/6-scale amazing likeness of "The Donald"

And more importantly, there's a warning for those thinking of purchasing a talking Donald Trump doll..
Warning: CHOKING HAZARD – Small Parts. Not for Children Under 3 years of age.

# Donald Trump News

New Ethanol Fuel Technology

Producers of ethanol fuel have come up with a way to produce ethanol much cheaper and on a much larger scale than is possible from current methods using corn. The new ethanol fuel is called Cellulosic ethanol and can be made using virtually any organic matter including waste products, sewage sludge, any plant material and even coal.

This is set to become the next big thing although it's doubtful whether it could totally replace fossil fuels. There could be some good investment opportunities in the coming years with this type of renewable fuel and considering Goldman Sachs the world's largest investment bank, invested $27 million into Iogen, a Canadian-based biotech specializing in ethanol made from cellulose, this is an area to keep an eye on.

Super ethanol is on its way
"Cellulosic ethanol, the biofuel that differs from corn-based ethanol in that it can be made from pretty much any organic matter, has made an impression among people who matter.

Alan Greenspan, the revered former chairman of the Federal Reserve with a big distaste for irrational exuberance, recently sang its praises before a Congressional hearing on energy security. Greenspan said cellulosic ethanol is the only alternative energy source that could be produced in enough volume to make a dent in gas usage." CNNMoney

# Ethanol News

Google Ever Expanding

Google is expanding once again, this time moving to Ann Arbor, Michigan to build a research facility. This new project could provide up to 1200 new jobs for the state of Michigan and will be very welcomed i'm sure. Making the location decision a bit easier was state offered tax credits of over 38 million over 20 years and also being close to the university of Michigan where Larry Page lived and attended University and still has involvement.

Google to Open Michigan Research Centre
"Web search leader Google Inc plans to build an office and research center in Ann Arbor, Michigan, that will hire up to 1,000 employees over the next five years, the company said on Tuesday.

Google will use the new facility as a sales and operations hub for its AdWords program, the company's main advertising unit. Mountain View, California-based Google is also hiring in Ann Arbor for its library digitization project, which has been hindered by court challenges over copyrights."
Reuters Business

# Google News

Google is a Word

Merriam-Webster has officially made the word google a verb, bringing it out of the realms of tech slang. Other new words added included supersize, biodiesel, agritourism, mouse potato, ringtone and spyware.
Here's the definition on Merriam-Webster online..

Main Entry: goo·gle
Pronunciation: 'gü-g&l
Function: transitive verb
Inflected Form(s): goo·gled; goo·gling /-g(&-) li[ng]/
Usage: often capitalized
Etymology: Google, trademark for a search engine: to use the Google search engine to obtain information about (as a person) on the World Wide Web

'Google' becomes an official verb
"A noun turns into a verb very often. Google is a unique case. Because it has achieved so much prominence in the world of search, people have been using the word google as a generic verb now. Our main aim is to respond to the use of the language that we see. We consider ourselves very respectful of trademark. That (google as a lowercase verb) is really a lexicographical judgment based on the evidence that was analysed," said Thomas Pitoniak, the associate editor and composition manager for Merriam-Webster. ZDNet UK

# Google News

Kerkorian and GM

Major investor in GM and billionaire businessman Kirk Kerkorian hopes to bring French car maker Renault and Japanese car maker Nissan on board. The General Motors board will look into a deal where Renault and Nissan would buy about 20% of GM, and share production facilities.

Investor steers GM awry
"Kerkorian's plan has helped drive up GM's stock price in the short term, although it is still slightly below the price he paid for it. But it makes very little sense as a long-term fix. GM's biggest problems are in domestic markets, not overseas. The company's labor costs make it hard to compete. And it produces too many vehicles that are uninspiring or consume too much gas, or both. Ghosn's talents aside, allying with French and Japanese companies wouldn't solve those problems." USA Today

In a letter to the editor at the Detroit Free Press, a reader said this about the Kekorian and GM deal..
"He is for "Numero Uno".. Kirk Kerkorian. As long as he benefits financially, he couldn't care less about anyone else. He seems to be foisting this alliance as the only way for GM to survive. Not! GM can and will survive without capitulating to his riches-for-Kerkorian scheme." Detroit Free Press

# Major Companies, Famous Investors

Small Investments For The Future

This article by Al Jacobs suggests how a single person with a modest amount of saving ability can get a safe return on their money over the long term. He suggests some investment options that could turn into a resonable amount of money over 30 years with compounding interest. His idea's are worth a read and with a small amount of money your future could a bit brighter

How to Invest When Your Money Supply is Short
"A recent request from a newsletter subscriber was short and to the point: “Would you please give us some suggestions on how to invest when you don’t have much money?” This sounded like a challenge I’d enjoy tackling. But as I wrestled with it, I realized the question involved far too many variables. Among them: How old is the individual? How little money is available to invest? What assets are currently held? I sensed that nothing less than a massive treatise could do justice to the subject."
Onthemoneytrail.com

# Retirement Planning News

Oil Prices Rise Again

American oil prices reached a new high of $75.40 a barrel on Wednesday before easing back to $75.19, which is an increase of $1.26 taking the price to 26% higher than it was a year ago. Fuel prices are expected to reach $3 a gallon over the coming weeks, while the demand for fuel continues to increase defying speculation that demand would drop off following high prices, once again proving America's love and dependence on oil.

Oil Prices Climb to Record Above $75
"Recent snags in oil-shipping and refining along the Gulf Coast have raised traders' concerns about motor-fuel supplies at a time when demand continues to rise despite soaring prices. The start of a new fiscal quarter also has brought more speculative money into the market, brokers said."
ABC News

# Oil and Energy News

Google Checkout

In a long line of products Google have released their latest called Google Checkout which promises one place to buy from stores all over the web. The new product has started with a listing of about 100 online stores but that is sure to rapidly grow as commonly happens when Google is involved.
Once signed in you can search for products to buy and Google Checkout will find the stores that sell it, and then you can buy from any store listed with Checkout all from the one place. Google also adds that they will not release email addresses and also have a safe shopping fraud protection system. Happy shopping!

Checking Out Google Checkout
"Google's new online purchasing service, dubbed Google Checkout, opens up a "whole new world" of targeting capabilities and search capacity for the online search giant, according to RBC analyst Jordan Rohan in a report Thursday."
Forbes
# Google News

Bill Gates Quotes

Here's some famous quotes by the richest man in the world, Bill Gates. He is one of the smartest and/or luckiest guys around, so his views on business, finance, and life are well worth taking a look at..

• The most meaningful way to differentiate your company from your competition, the best way to put distance between you and the crowd, is to do an outstanding job with information.
  Bill Gates
• Whether it's Google or Apple or free software, we've got some fantastic competitors and it keeps us on our toes.
  Bill Gates
• Your most unhappy customers are your greatest source of learning.
  Bill Gates
• Only a few businesses will succeed by having the lowest price, so most will need a strategy that includes customer service.
  Bill Gates
• The first rule of any technology used in a business is that automation applied to an efficient operation will magnify the efficiency. The second is that automation applied to an inefficient operation will magnify the inefficiency.
  Bill Gates
• To get a big company moving fast, especially on a many-headed opportunity like the Internet, you have to have hundreds of people participating and coming up with ideas.
  Bill Gates
• The Internet will help achieve "friction free capitalism" by putting buyer and seller in direct contact and providing more information to both about each other.
  Bill Gates

To find out more about the Microsoft billionaire, see our Bill Gates biography or Bill Gates news from our blog.

Warren Buffett Lunch

Warren Buffett's annual lunch for charity has almost doubled in value this year. In 2005 an anonymous bidder paid an impressive $350,000 to dine with the billionaire stock market investor. This year the 45 year old Californian investor Yongping Duan has won the auction on Ebay for $620,100.
That's one expensive steakhouse meal!

Chance to Dine With Buffett Sells for $620,100 in EBay Bidding
Duan gets to bring seven friends to a New York steakhouse to query Buffett, the world's second-richest man, about his business strategy and investment philosophy. The 75-year-old chairman and chief executive officer of Omaha, Nebraska-based Berkshire Hathaway Inc. transformed a failing textile manufacturer into a $142 billion holding company by acquiring out-of-favor securities and businesses in dozens of industries. Bloomberg

# Warren Buffett News