by Brian Aboy
I've got good news for you. If you've been struggling to get the results from your trading that you expected, then you've probably dismissed the most important thing, and it's such a common mistake that struggling traders make and the pros don't: treating your trading as a business you own, not simply something you do.
If it's so simple, then What does that actually mean?
Let's take a closer look and see.
While most people know the difference between a hobby and a business, most who aren't profiting from trading fail to see that they are approaching their trading in the same way they would a hobby, instead of a business.
Hobbies are activities where a person has an interest and they enjoy the activity itself. It's fun, exciting, enjoyable, and occupying. A hobby is part-time, do-it- yourself and a learn-as-you-go activity.
Unfortunately this is good description of trading for many people, except that they don't recognize it as a hobby. For most traders, trading is an activity that they simply pour money into, not make a profit from, and it stays in the expense column of their financial report.
A business is an activity where the underlying purpose and everything involved is to make money and show a profit.
There are certain requirements for anyone to go into business, as a business owner.
First of all, you have to have a decent head on your shoulders. Not just anyone can trade, it takes money.
How did you come by the money to trade? You had to be smarter than average.
Perhaps you're a high level manager, maybe a business owner, or successful professional. Regardless, the markets are not where the average or below average person can be. If you can't show up with several thousand dollars, you simply can't trade.
Just by being able to play the game, you've shown that you can amass a respectable sum of money, which takes being smarter than average.
Secondly, a business owner has to have reasonably developed management skills for managing the day-to-day operations, the money inflows and expenses, the exposure to risk.
In trading, risk management is at the core of the business. Not only making sure that every trade is properly balanced with regards to the risk involved on any given trade to the potential reward, but the exposure to risk of the account as a whole is critical.
Too many traders put too many eggs in too few baskets, and with the uncertainty of the markets, it is imperative that the trader fully understand and manage risk so that the business will survive any downturns and keep the doors open next month and next year.
Thirdly, the smart business owner understands the necessity of a team, a solid support staff.
Any business that is a one-man show is destined to limited success at best. Quite often, the story doesn't have a happy ending. The number of hats that the owner has to wear involves too many, non-income producing tasks and time is not spent where it should be.
The most critical person to have on your team in a business is an experienced mentor and counsel. Any successful venture starts with a solid knowledge of the industry and the markets that are served. The inner-workings of that business and what mistakes to avoid, plus a deep understanding of what the real profit centers are, and the true potential liabilities, the risks involved, must be understood going into the business.
That is what a good broker can do for traders: provide the expertise and experience to tell the difference, and guide the trader to real opportunities, while safeguarding against dangerous situations and decisions that can ultimately ruin the profitability of the business.
Lastly, and most importantantly, traders need to recognize that they are people, and all that goes with that. They're not computers where a new body of knowledge can just be loaded from a CD. It takes time to absorb information and develop skills.
Humans also have feelings. While knowledge is power, it is so often over-ridden by emotions that unless one develops a level of emotional control, the emotions that come into play when trading will cause a variety of poor decisions that cause substantial losses.
Success in trading first comes from recognizing that trading is a business. It is an activity where ignorance, inexperience and emotions are the biggest liabilities and the greatest risks.
By first locating a good broker for guidance and mentoring, then constantly devoting time to personal and professional development, especially practicing and developing particular skills, a person will give themselves the best odds of achieving the end-goal of having a profitable trading business.
source: articleworld.net
Thursday, 16 July 2009
You Can Avoid Bankruptcy
by Jill Black
Your debts are piled up to an extent that you can't see past them. Your view into your financial future is blocked by your unpromising present. You're feeling hopeless and helpless. Well, don't despair. There is hope and there is help.
If you are considering bankruptcy, then your debts have not had the attention they needed. It could be due to many factors - e.g., medical emergency, divorce. Regardless, you need to look at this as an opportunity to get your financial life in order.
You will need to address several specifics in order to get a grasp on your debt and forego bankruptcy. Complete the checklist and subsequent activity below to get started:
* Do a budget. If you don't already have one set up, you need to do one now. Make note of all your expenses and income from the 1st to the 31st of the month. Put it all in one place, whether you put it in Excel, Microsoft Money, Quicken or some other software. Make sure you keep expenses separate from income. Note the amount you have left over.
* Obtain a copy of your credit report. All three major credit reporting agencies are required to provide a free copy of your credit report to you every year.
* Note any discrepancies. Notify the credit reporting agencies of any incorrect information, including any inquiries to your credit report that you did not approve.
* Identify all accounts that are late. Organize them from the accounts that show the most months not paid to the least months not paid.
* Settle your debts with your creditors. This will be your strategy. Your final frontier will be to settle your debts to affordable payments every month. What is left over from your budget? You will divide this out to pay on each of your outstanding accounts with your creditors.
* Calculate what it will take to offer a settlement of 30% for each of your past due accounts.
* Call each creditor and make the offer. It is important to include in the offer that the creditor will delete all negative notations to your account and indicate that it is being paid on time for the duration it takes to pay off the debt ... as long as you are making your payments on time.
* Don't be discouraged if your creditors balk at your first offer. In a week or two you'll receive a letter from the creditors you called with either an acceptance or counter offer. Don't budge from the 30%, unless it becomes apparent over several weeks' time that they will not accept it. The more time that lapses since your last payment on the account, the more your creditor will work with you.
* Keep copies of all communication with your creditor. If a phone conversation, make note of the date/time of call, representative's name, content of discussion and anything they agreed to do.
* Don't pay anything until you receive it in writing ... and signed! Your exchanges with your creditors have paid off and you've come to an agreement. You receive the agreement in the mail. Is it signed by the creditor AND does it indicate that this is the final settlement amount of your debt AND does it state that the creditor will delete all negative notations to your credit once you start paying on the settled debt amount? If not, send it back for corrections. Don't sign anything until it contains all agreed upon discussion and the creditor has signed on the dotted line.
* You've signed the agreements, now what? Do not pay your payments out of your own bank. Do not let your creditor know where you bank or where you work. Get a money order from another institution other than your own bank to pay your monthly payments. You can buy USPS money orders for $1.05. That way if you ever become delinquent on your payments, no creditor can garnish your checking account or your paycheck.
* Pay your payments on time all the time. If you stick to this rule, you'll be successful in staying out of bankruptcy. Eventually, you will even become debt free in the process as long as you don't apply for any more credit.
Jill works with Inside Realty a firm working in the Houston real estate market. Their site is focused on provided information on the Houston real estate for interested buyers and sellers. It also provide statisics on surrounding markets like the Humble real estate and Pasadena real estate markets.
Article Source: http://EzineArticles.com/?expert=Jill_Black
Your debts are piled up to an extent that you can't see past them. Your view into your financial future is blocked by your unpromising present. You're feeling hopeless and helpless. Well, don't despair. There is hope and there is help.
If you are considering bankruptcy, then your debts have not had the attention they needed. It could be due to many factors - e.g., medical emergency, divorce. Regardless, you need to look at this as an opportunity to get your financial life in order.
You will need to address several specifics in order to get a grasp on your debt and forego bankruptcy. Complete the checklist and subsequent activity below to get started:
* Do a budget. If you don't already have one set up, you need to do one now. Make note of all your expenses and income from the 1st to the 31st of the month. Put it all in one place, whether you put it in Excel, Microsoft Money, Quicken or some other software. Make sure you keep expenses separate from income. Note the amount you have left over.
* Obtain a copy of your credit report. All three major credit reporting agencies are required to provide a free copy of your credit report to you every year.
* Note any discrepancies. Notify the credit reporting agencies of any incorrect information, including any inquiries to your credit report that you did not approve.
* Identify all accounts that are late. Organize them from the accounts that show the most months not paid to the least months not paid.
* Settle your debts with your creditors. This will be your strategy. Your final frontier will be to settle your debts to affordable payments every month. What is left over from your budget? You will divide this out to pay on each of your outstanding accounts with your creditors.
* Calculate what it will take to offer a settlement of 30% for each of your past due accounts.
* Call each creditor and make the offer. It is important to include in the offer that the creditor will delete all negative notations to your account and indicate that it is being paid on time for the duration it takes to pay off the debt ... as long as you are making your payments on time.
* Don't be discouraged if your creditors balk at your first offer. In a week or two you'll receive a letter from the creditors you called with either an acceptance or counter offer. Don't budge from the 30%, unless it becomes apparent over several weeks' time that they will not accept it. The more time that lapses since your last payment on the account, the more your creditor will work with you.
* Keep copies of all communication with your creditor. If a phone conversation, make note of the date/time of call, representative's name, content of discussion and anything they agreed to do.
* Don't pay anything until you receive it in writing ... and signed! Your exchanges with your creditors have paid off and you've come to an agreement. You receive the agreement in the mail. Is it signed by the creditor AND does it indicate that this is the final settlement amount of your debt AND does it state that the creditor will delete all negative notations to your credit once you start paying on the settled debt amount? If not, send it back for corrections. Don't sign anything until it contains all agreed upon discussion and the creditor has signed on the dotted line.
* You've signed the agreements, now what? Do not pay your payments out of your own bank. Do not let your creditor know where you bank or where you work. Get a money order from another institution other than your own bank to pay your monthly payments. You can buy USPS money orders for $1.05. That way if you ever become delinquent on your payments, no creditor can garnish your checking account or your paycheck.
* Pay your payments on time all the time. If you stick to this rule, you'll be successful in staying out of bankruptcy. Eventually, you will even become debt free in the process as long as you don't apply for any more credit.
Jill works with Inside Realty a firm working in the Houston real estate market. Their site is focused on provided information on the Houston real estate for interested buyers and sellers. It also provide statisics on surrounding markets like the Humble real estate and Pasadena real estate markets.
Article Source: http://EzineArticles.com/?expert=Jill_Black
Canadian Government Grants for Young Entrepreneurs
by CLINT JHONSON
The government of Canada is promoting youth entrepreneurship by providing support for young business owners. Specifically, you can avail of Canadian government grants in the form of loans, start-up support and business mentoring. All you have to do is to seek the right institution that has a grant program for young entrepreneurs. You should find out if your proposed or existing business enterprise can qualify for the grant or financing. If you are qualified, then you can start participating in the program in order to get the needed business support and financing.
If you are 18 to 34 years old, have a novel business idea and plan, and passionate about starting your own company, then you can try to avail Canadian government grants from Canadian Youth Business Foundation. The CYBF is a federal organization and a charity group which was established for the benefit of young entrepreneurs like you. It offers business mentoring services and will provide a coach that will help you develop a sound business strategy. Most importantly, this Canadian federal organization provides business financing in the form of loans of up to $15,000 for start up needs.
However, do not mistake that you can easily acquire Canadian government grants through simple loans application. You can not play game with the system especially if you are getting a grant from the Canadian Youth Business Foundation. There are processes and procedures that you need to fulfill in order to qualify for the grant. Specifically, the CYBF has a four step participation process that you have to undergo. This is to ensure that you will succeed in your venture and also ensure repayment of the business loan. Although, the grants process is not simple, it would be very worthwhile because your enterprise will surely benefit from it. The system will ensure that the loan will not be wasted and will ensure also that everyone who participates in the program can achieve success.
Before you can avail of financing or Canadian government grants from CYBF, you need to participate in its pre-launch coaching program. This coaching program is free and the in-residence Entrepreneur of the Foundation will provide guidance for you on how to create a solid business plan and how to set a business and financing strategy. This is a mandatory step to ensure your business preparedness. Aside from this, you will have access to several business resources and tools provided by the CYBF. By participating in the program, you can now apply for business loans of up to $15,000 for start up. An additional fund of $15,000 can also be acquired through the facilities of Business Development Bank of Canada. And if you become a long time member of CYBF, you can avail of $10,000 expansion grant.
To ensure that the financial grant will be put to productive use, the government of Canada through the Canadian Youth Business Foundation offers business mentoring for your existing enterprise. You will have a dedicated mentor for two years because this is the critical phase of every start up. The mentoring service is part of the entire strategy to ensure the success of young Canadian entrepreneurs like you.
source: amazines.com
The government of Canada is promoting youth entrepreneurship by providing support for young business owners. Specifically, you can avail of Canadian government grants in the form of loans, start-up support and business mentoring. All you have to do is to seek the right institution that has a grant program for young entrepreneurs. You should find out if your proposed or existing business enterprise can qualify for the grant or financing. If you are qualified, then you can start participating in the program in order to get the needed business support and financing.
If you are 18 to 34 years old, have a novel business idea and plan, and passionate about starting your own company, then you can try to avail Canadian government grants from Canadian Youth Business Foundation. The CYBF is a federal organization and a charity group which was established for the benefit of young entrepreneurs like you. It offers business mentoring services and will provide a coach that will help you develop a sound business strategy. Most importantly, this Canadian federal organization provides business financing in the form of loans of up to $15,000 for start up needs.
However, do not mistake that you can easily acquire Canadian government grants through simple loans application. You can not play game with the system especially if you are getting a grant from the Canadian Youth Business Foundation. There are processes and procedures that you need to fulfill in order to qualify for the grant. Specifically, the CYBF has a four step participation process that you have to undergo. This is to ensure that you will succeed in your venture and also ensure repayment of the business loan. Although, the grants process is not simple, it would be very worthwhile because your enterprise will surely benefit from it. The system will ensure that the loan will not be wasted and will ensure also that everyone who participates in the program can achieve success.
Before you can avail of financing or Canadian government grants from CYBF, you need to participate in its pre-launch coaching program. This coaching program is free and the in-residence Entrepreneur of the Foundation will provide guidance for you on how to create a solid business plan and how to set a business and financing strategy. This is a mandatory step to ensure your business preparedness. Aside from this, you will have access to several business resources and tools provided by the CYBF. By participating in the program, you can now apply for business loans of up to $15,000 for start up. An additional fund of $15,000 can also be acquired through the facilities of Business Development Bank of Canada. And if you become a long time member of CYBF, you can avail of $10,000 expansion grant.
To ensure that the financial grant will be put to productive use, the government of Canada through the Canadian Youth Business Foundation offers business mentoring for your existing enterprise. You will have a dedicated mentor for two years because this is the critical phase of every start up. The mentoring service is part of the entire strategy to ensure the success of young Canadian entrepreneurs like you.
source: amazines.com
The Commercial Production of Ethanol from Corn
By sandra case
This second article by Absolute Futures will explain the commercial production of ethanol. Ethanol is a product of fermentation. Fermentation is a sequence of reactions which release energy from organic molecules in the absence of oxygen. In this application of fermentation, energy is obtained when sugar is changed to ethanol and carbon dioxide.
Changing corn to ethanol by fermentation takes many steps. Starch in corn must be broken down into simple sugars before fermentation can occur. In earlier times, this was done by chewing the corn. This allowed the salivary enzymes to naturally break down the start. Today, this is achieved by cooking the corn and adding the enzymes alpha amylase and gluco amylase.
Once a simple sugar is obtained, yeast is added. Yeast is a single-celled fungi which feeds on the sugar and causes the fermentation. As the fungi feeds on the sugar, it produces alcohol (ethanol) and carbon dioxide. In fermentation, the ethanol retains much of the energy that was originally in the sugar, and explains why ethanol is an excellent fuel.
Most ethanol production in the United States is made in 50 production facilities in 20 different states. Most of these plants are located in the Midwest.
Changing the starch in kernels of corn to sugar and changing sugar to ethanol is a complex process and requires a mix of technologies that include microbiology, chemistry and engineering.
Ethanol is produced from corn by using one of two standard processes: wet-milling or dry-milling. Dry-milling plants cost less to build and produce higher yields of ethanol, but the value of co-products is less. Most of the ethanol plants in the U.S. utilize a dry-milling process. The wet-milling operation is more elaborate because the grain must be separated into its components.
After fermentation, the ethanol is removed from the mix of ethanol, water, yeast, and residue. It is then purified through distillation. The distilling process takes advantage of the low boiling point (78C.) of ethanol. When the temperature of the mix is increased slightly higher than the boiling point, the ethanol evaporates. It is then captured as a gas vapor and condensed back to a liquid. Other chemicals are added and molecular sieves are used to purify the ethanol.
Advances in technology are being made to further reduce the large amounts of energy needed for distillation. These advances help to reduce the costs and make producing ethanol much more economical.
This article has been written by Sandra Case, who is Vice President
Commodity Research for Absolute Futures Commodity Brokerage.
For further information regarding this article or information on other
commodities or trading of the commodity markets please contact
Sandra Case 800-935-6494. http://www.absolute-futures.com
source: amazines.com
This second article by Absolute Futures will explain the commercial production of ethanol. Ethanol is a product of fermentation. Fermentation is a sequence of reactions which release energy from organic molecules in the absence of oxygen. In this application of fermentation, energy is obtained when sugar is changed to ethanol and carbon dioxide.
Changing corn to ethanol by fermentation takes many steps. Starch in corn must be broken down into simple sugars before fermentation can occur. In earlier times, this was done by chewing the corn. This allowed the salivary enzymes to naturally break down the start. Today, this is achieved by cooking the corn and adding the enzymes alpha amylase and gluco amylase.
Once a simple sugar is obtained, yeast is added. Yeast is a single-celled fungi which feeds on the sugar and causes the fermentation. As the fungi feeds on the sugar, it produces alcohol (ethanol) and carbon dioxide. In fermentation, the ethanol retains much of the energy that was originally in the sugar, and explains why ethanol is an excellent fuel.
Most ethanol production in the United States is made in 50 production facilities in 20 different states. Most of these plants are located in the Midwest.
Changing the starch in kernels of corn to sugar and changing sugar to ethanol is a complex process and requires a mix of technologies that include microbiology, chemistry and engineering.
Ethanol is produced from corn by using one of two standard processes: wet-milling or dry-milling. Dry-milling plants cost less to build and produce higher yields of ethanol, but the value of co-products is less. Most of the ethanol plants in the U.S. utilize a dry-milling process. The wet-milling operation is more elaborate because the grain must be separated into its components.
After fermentation, the ethanol is removed from the mix of ethanol, water, yeast, and residue. It is then purified through distillation. The distilling process takes advantage of the low boiling point (78C.) of ethanol. When the temperature of the mix is increased slightly higher than the boiling point, the ethanol evaporates. It is then captured as a gas vapor and condensed back to a liquid. Other chemicals are added and molecular sieves are used to purify the ethanol.
Advances in technology are being made to further reduce the large amounts of energy needed for distillation. These advances help to reduce the costs and make producing ethanol much more economical.
This article has been written by Sandra Case, who is Vice President
Commodity Research for Absolute Futures Commodity Brokerage.
For further information regarding this article or information on other
commodities or trading of the commodity markets please contact
Sandra Case 800-935-6494. http://www.absolute-futures.com
source: amazines.com
Internet Banking : A Big Bang in banking industry
by ADDI VARDHAMAN
Online banking in recent times has become a strong aspect of the whole banking process. A virtual face of actual direct banking, Internet banking has certainly found many buyers and that is not all it has also allowed the banking fraternity to add a whole new dimension to it.
Internet Banking is also called Online Banking. It has become an extension of PC Banking. Internet Banking can be explained as delivery system by which people can conduct banking activities for various purposes. It offers services like transferring funds between different banks, paying bills, viewing checking and savings account balances online and any time, paying mortgages, and purchasing financial instruments and making deposits online. Online banking (or Internet banking) allow customers to conduct financial transactions online in a secured manner on the bank's website set up by the bank itself as its extension.
Internet Banking has various advantages which consumers enjoy while conducting their banking activities online. The major advantages are as follow :-
Transaction speed is very fast, even faster than ATMs One can manage and access all your bank accounts from one place which is a very efficient way to do things Online banking being available 24/7 is very convenient to common people as direct banking branches close before 8 pm Online banking makes banking services accessible anywhere in the world It is very effective as many other additional services like portfolio management
It is also very advantageous for the banks as the banks can gain access to new markets and also can keep up with more sophisticated clientèle. A larger consumer base can be acquired and managed with ease. The major banking firms which are conducting online banking operations are SBI Internet banking which is the biggest bank in the country and axis bank Internet banking which has also established an Online Banking infrastructure.
But online banking can be tricky in certain ways as well and has its fair share of disadvantages both for the consumer and the banker. SBI Internet banking has many safety precautions for this. But still Online banking does have some disadvantages which are as follow :-
1) It is a bit of a pain in the beginning as many forms and proofs have to be submitted with the bank before a working online account can be acquired 2)Banking authorities in India have still not properly settled in this niche and still there is some room for improvement to make Internet banking more consumer friendly 3)The website has to be constantly updated and efforts are to be put in to make it user friendly but with each change in the website the consumer has to re-learn how to perform the same functions again and sometimes the consumer can get ticked off and close his/her account. Axis Bank Internet banking always make it a point to inform or rather educate its customer before employing any significant changes 4)There is a very diminished banker to consumer interaction which increases the distance and thus such banking can be termed impersonal and insensitive 5)Online banking is difficult to trust and mistakes can be very easily committed online such clicking on the wrong link or twice or something else
Online Banking has its own share of dangers as there are frauds and mirror sites which very regularly steal your bank account details and wipe out your balance. One should always take precautions when banking online. Personal information should always be kept private and a well guarded secret. One should know his/her rights as a consumer. And also conform the procedures and steps to take when you have been wronged such as wrongful deductions etc. Also one should learn how to go about legally in case if a bank starts cheating on you or refuses to look into your complaints. Be alert and regularly check your account details and stay in touch with the bank officials as well to know of any new charges or schemes. Remember, it is your money and you are the one responsible for it.
source: amazines.com
Online banking in recent times has become a strong aspect of the whole banking process. A virtual face of actual direct banking, Internet banking has certainly found many buyers and that is not all it has also allowed the banking fraternity to add a whole new dimension to it.
Internet Banking is also called Online Banking. It has become an extension of PC Banking. Internet Banking can be explained as delivery system by which people can conduct banking activities for various purposes. It offers services like transferring funds between different banks, paying bills, viewing checking and savings account balances online and any time, paying mortgages, and purchasing financial instruments and making deposits online. Online banking (or Internet banking) allow customers to conduct financial transactions online in a secured manner on the bank's website set up by the bank itself as its extension.
Internet Banking has various advantages which consumers enjoy while conducting their banking activities online. The major advantages are as follow :-
Transaction speed is very fast, even faster than ATMs One can manage and access all your bank accounts from one place which is a very efficient way to do things Online banking being available 24/7 is very convenient to common people as direct banking branches close before 8 pm Online banking makes banking services accessible anywhere in the world It is very effective as many other additional services like portfolio management
It is also very advantageous for the banks as the banks can gain access to new markets and also can keep up with more sophisticated clientèle. A larger consumer base can be acquired and managed with ease. The major banking firms which are conducting online banking operations are SBI Internet banking which is the biggest bank in the country and axis bank Internet banking which has also established an Online Banking infrastructure.
But online banking can be tricky in certain ways as well and has its fair share of disadvantages both for the consumer and the banker. SBI Internet banking has many safety precautions for this. But still Online banking does have some disadvantages which are as follow :-
1) It is a bit of a pain in the beginning as many forms and proofs have to be submitted with the bank before a working online account can be acquired 2)Banking authorities in India have still not properly settled in this niche and still there is some room for improvement to make Internet banking more consumer friendly 3)The website has to be constantly updated and efforts are to be put in to make it user friendly but with each change in the website the consumer has to re-learn how to perform the same functions again and sometimes the consumer can get ticked off and close his/her account. Axis Bank Internet banking always make it a point to inform or rather educate its customer before employing any significant changes 4)There is a very diminished banker to consumer interaction which increases the distance and thus such banking can be termed impersonal and insensitive 5)Online banking is difficult to trust and mistakes can be very easily committed online such clicking on the wrong link or twice or something else
Online Banking has its own share of dangers as there are frauds and mirror sites which very regularly steal your bank account details and wipe out your balance. One should always take precautions when banking online. Personal information should always be kept private and a well guarded secret. One should know his/her rights as a consumer. And also conform the procedures and steps to take when you have been wronged such as wrongful deductions etc. Also one should learn how to go about legally in case if a bank starts cheating on you or refuses to look into your complaints. Be alert and regularly check your account details and stay in touch with the bank officials as well to know of any new charges or schemes. Remember, it is your money and you are the one responsible for it.
source: amazines.com
Bankruptcy - Always a Bad Thing?
By Melissa M Gordon
The very word "bankrupt" has the potential to bring silence to a room like very few others in the English language. In a world where we are all, to a greater or lesser extent, touched by materialism if not directly materialistic ourselves, the spectre of bankruptcy is one that can make even some of the most feckless among us sit up and take notice of what is going on. Whatever our own individual and personal views on the subject may be, there is a stigma connected with the concept and the reality of bankruptcy that makes many people stop short of actually going to the extent where they declare themselves, or allow themselves to be declared, bankrupt.
There is, however, a reasoned and growing school of thought that is of the opinion that bankruptcy is not nearly as bad as the reputation suggests. Much though we may fear the response of others when we are in danger of going bankrupt, and much though it limits our financial freedom compared with a position of solvency, bankruptcy today is seen by a wider group of people than ever as being something that can clear the boards for a future in which we will avoid the financial risks that went wrong before and took us into a situation where we had to consider bankruptcy in the first place. To clarify, nobody wants to go bankrupt if they are in a position of relative strength. From a position of weakness, however, it can be the surest way back to a positive future.
One thing that bankruptcy allows the debtor is the chance to make some payment towards their debts, at a level agreed by the bankruptcy hearing - in America this will be held in the state court - at a certain percentage level of total debt. As a commitment, this demonstrates that the individual has acknowledged responsibility for their debt and a willingness to pay it off. For the creditor, although this may not be the ultimate result they would have coveted, it at least allows them to realize some part of the money owed, which would not be forthcoming if the debtor simply decided to avoid all collection activity - a common practice among bad debtors.
Most of all, bankruptcy will prevent the debtor taking out any more credit for a non-specific period. Although there are certain timeframes quoted for how long this period may be, the fact is that different credit agencies act on different data. This credit-free period forces the individual to concentrate on getting their affairs in order and, should they apply for credit in the future, it will hopefully be in more manageable amounts and with a more responsible attitude. Bankruptcy is not a desirable situation, but as far as an individual is concerned it can act as a wake-up call and a positive reminder of how they need to conduct their future finances. In this respect, it is certainly not always a bad thing for someone to go bankrupt - although it is better to simply conduct financial affairs correctly to start with.
Disclaimer: This article is for informational and entertainment purposes only, and should not be construed as legal advice on any subject matter.
LegalBuffet.com is a complete online resource that compares the legal services offered by various online companies. Find the best company for your needs when you're ready to file bankruptcy at http://legalbuffet.com/bankruptcy-services/.
Article Source: http://EzineArticles.com/?expert=Melissa_M_Gordon
The very word "bankrupt" has the potential to bring silence to a room like very few others in the English language. In a world where we are all, to a greater or lesser extent, touched by materialism if not directly materialistic ourselves, the spectre of bankruptcy is one that can make even some of the most feckless among us sit up and take notice of what is going on. Whatever our own individual and personal views on the subject may be, there is a stigma connected with the concept and the reality of bankruptcy that makes many people stop short of actually going to the extent where they declare themselves, or allow themselves to be declared, bankrupt.
There is, however, a reasoned and growing school of thought that is of the opinion that bankruptcy is not nearly as bad as the reputation suggests. Much though we may fear the response of others when we are in danger of going bankrupt, and much though it limits our financial freedom compared with a position of solvency, bankruptcy today is seen by a wider group of people than ever as being something that can clear the boards for a future in which we will avoid the financial risks that went wrong before and took us into a situation where we had to consider bankruptcy in the first place. To clarify, nobody wants to go bankrupt if they are in a position of relative strength. From a position of weakness, however, it can be the surest way back to a positive future.
One thing that bankruptcy allows the debtor is the chance to make some payment towards their debts, at a level agreed by the bankruptcy hearing - in America this will be held in the state court - at a certain percentage level of total debt. As a commitment, this demonstrates that the individual has acknowledged responsibility for their debt and a willingness to pay it off. For the creditor, although this may not be the ultimate result they would have coveted, it at least allows them to realize some part of the money owed, which would not be forthcoming if the debtor simply decided to avoid all collection activity - a common practice among bad debtors.
Most of all, bankruptcy will prevent the debtor taking out any more credit for a non-specific period. Although there are certain timeframes quoted for how long this period may be, the fact is that different credit agencies act on different data. This credit-free period forces the individual to concentrate on getting their affairs in order and, should they apply for credit in the future, it will hopefully be in more manageable amounts and with a more responsible attitude. Bankruptcy is not a desirable situation, but as far as an individual is concerned it can act as a wake-up call and a positive reminder of how they need to conduct their future finances. In this respect, it is certainly not always a bad thing for someone to go bankrupt - although it is better to simply conduct financial affairs correctly to start with.
Disclaimer: This article is for informational and entertainment purposes only, and should not be construed as legal advice on any subject matter.
LegalBuffet.com is a complete online resource that compares the legal services offered by various online companies. Find the best company for your needs when you're ready to file bankruptcy at http://legalbuffet.com/bankruptcy-services/.
Article Source: http://EzineArticles.com/?expert=Melissa_M_Gordon
Ten Tax Planning Ideas for Small Businesses
by alan olsen
If you are a small business owner looking for cost cutting ideas here are ten tax planning ideas that may result in substantial tax savings. The following article highlights planning areas often missed by business owners. You should consult a qualified tax advisor to determine if any of these areas are appropriate for you and your business.
S Corporation: Set up an S Corporation to avoid self-employment tax on profits. If you conduct business as a sole proprietor, a partnership, or a limited liability company the first 94.200 of 2006 profits are subject to a self-employment tax rate of 15.3%. The profits in excess of 94,200 are subject to a Medicare tax rate of 2.9%. These self-employment tax rates are in addition to paying income tax on the profits. An S Corporation is not subject to self-employment tax on the profits earned.
Bad Debt Expense: A reserve for bad debts is not deductible, but you can write off accounts receivable in the year in which they become uncollectible. Be sure to take advantage of writing off all those uncollected accounts at year end.
If you used a collection agency, you can deduct a portion of the debt that will go to the collection agency as a fee (around 25%). You can write off that amount at the time you turn over the receivable to the agency.
Medical Expense: For 2006, eligible self-employed individuals can deduct from gross income 100% of the amounts paid for health insurance coverage. The deduction is limited to net earned income from the business, less the deduction for 50% of the self-employment tax. Also, you cannot take the deduction for any month you were qualified to participate in an employer sponsored health plan.
If you conduct business as a corporation, set up a corporate medical reimbursement plan. Medical costs are generally personal expenses deductible only to the extent that they exceed 7.5% of your Adjusted Gross Income (AGI). However, medical reimbursement plans set up by C Corporations let you deduct all the medical costs you incur for yourself, your spouse, and dependents. These plans must cover all eligible employees.
Equipment Expense: For 2006, Section 179 of the Tax Code lets companies deduct up to 108,000 of new equipment, subject to certain limits. Passenger vehicles are excluded from the expensing election. A passenger vehicle is defined as having a loaded gross vehicle weight of less than 6,000 pounds.
The tax code also allows an accelerated method to depreciate the remaining value of that equipment its faster than the straight-line method of depreciation.
Home Office Expense: Write off home-office expenses. You can take this deduction even if you use the space for administrative purposes, as long as there is no where else you can work. When you use one room in your six room home as an office, you can deduct one-sixth of your costs for utilities, security, homeowners insurance, etc. as well as all costs for the room such as carpeting. Although you can also claim the depreciation on your home used for home office, you should consult a qualified tax advisor prior to doing so to understand the impact it will have on the exclusion of gain when you sell your residence.
Travel Expense: Deduct business trips by putting your spouse on the payroll. When spouses are on the payroll, even at low salaries, cost of business trips that include the spouse can be fully deducted. You should also be aware that putting your spouse on the payroll in 2006 will also double the amount of Social Security tax owed up to the first 94,200 of income.
Hiring Children in the Family Business: Put your children on the company payroll. When you employ your children in the business, for 2006 you can pay them up to 5,150 in salary free from Federal tax. The kiddie tax doesnt apply to wages, so children under age 14 get this tax break, too. Have your children put 4,000 into a Roth IRA, where it will compound tax-free over time. When the money is left in the account until they turn 59 ½, they will never have to pay out any tax or penalties on that money or its earnings.
If your business is not incorporated, and the children are under age 18, neither you, as employer, nor your children will owe Social Security or Medicare tax on their wages.
Retirement Planning: Put more money away in your company retirement plan for yourself than for your employees. Business owners who are more than 20 years older that other company employees can set up a defined-benefit pension plan instead of a defined-contribution plan. Because they are funding a specific benefit (not putting away a percentage of salary) and have fewer years to do so, owners can contribute more to the plan for themselves than their employees.
Claiming Business Losses: Make the most of business losses. If your company has a net operating loss in 2006, it can be carried back two years or carried forward up to 20 years to offset future profits. To get a refund, file an application on Form 1139. Most refunds are sent out by the IRS within two months.
Education: Set up a company tuition-reimbursement plan to pay a childs school cost. Businesses can set up plans that pay up to 5,250 in tuition per employee annually. Business owners children must work for the company, be older than age 21, own no company stock and cannot be claimed as a dependent on the owners tax returns.
Alan Olsen is the managing partner at Greenstein Rogoff Olsen & Co., a top Bay Area CPA firm. He focuses on developing innovative strategies for business enterprises and individuals. A specialist in income tax planning, he frequently lectures and writes articles on tax issues for professional organizations and community groups. His website is ranked among the top in the nation for accounting firms, featuring tax tools and business leadership articles: http://www.groco.com
source: articleworld.net
If you are a small business owner looking for cost cutting ideas here are ten tax planning ideas that may result in substantial tax savings. The following article highlights planning areas often missed by business owners. You should consult a qualified tax advisor to determine if any of these areas are appropriate for you and your business.
S Corporation: Set up an S Corporation to avoid self-employment tax on profits. If you conduct business as a sole proprietor, a partnership, or a limited liability company the first 94.200 of 2006 profits are subject to a self-employment tax rate of 15.3%. The profits in excess of 94,200 are subject to a Medicare tax rate of 2.9%. These self-employment tax rates are in addition to paying income tax on the profits. An S Corporation is not subject to self-employment tax on the profits earned.
Bad Debt Expense: A reserve for bad debts is not deductible, but you can write off accounts receivable in the year in which they become uncollectible. Be sure to take advantage of writing off all those uncollected accounts at year end.
If you used a collection agency, you can deduct a portion of the debt that will go to the collection agency as a fee (around 25%). You can write off that amount at the time you turn over the receivable to the agency.
Medical Expense: For 2006, eligible self-employed individuals can deduct from gross income 100% of the amounts paid for health insurance coverage. The deduction is limited to net earned income from the business, less the deduction for 50% of the self-employment tax. Also, you cannot take the deduction for any month you were qualified to participate in an employer sponsored health plan.
If you conduct business as a corporation, set up a corporate medical reimbursement plan. Medical costs are generally personal expenses deductible only to the extent that they exceed 7.5% of your Adjusted Gross Income (AGI). However, medical reimbursement plans set up by C Corporations let you deduct all the medical costs you incur for yourself, your spouse, and dependents. These plans must cover all eligible employees.
Equipment Expense: For 2006, Section 179 of the Tax Code lets companies deduct up to 108,000 of new equipment, subject to certain limits. Passenger vehicles are excluded from the expensing election. A passenger vehicle is defined as having a loaded gross vehicle weight of less than 6,000 pounds.
The tax code also allows an accelerated method to depreciate the remaining value of that equipment its faster than the straight-line method of depreciation.
Home Office Expense: Write off home-office expenses. You can take this deduction even if you use the space for administrative purposes, as long as there is no where else you can work. When you use one room in your six room home as an office, you can deduct one-sixth of your costs for utilities, security, homeowners insurance, etc. as well as all costs for the room such as carpeting. Although you can also claim the depreciation on your home used for home office, you should consult a qualified tax advisor prior to doing so to understand the impact it will have on the exclusion of gain when you sell your residence.
Travel Expense: Deduct business trips by putting your spouse on the payroll. When spouses are on the payroll, even at low salaries, cost of business trips that include the spouse can be fully deducted. You should also be aware that putting your spouse on the payroll in 2006 will also double the amount of Social Security tax owed up to the first 94,200 of income.
Hiring Children in the Family Business: Put your children on the company payroll. When you employ your children in the business, for 2006 you can pay them up to 5,150 in salary free from Federal tax. The kiddie tax doesnt apply to wages, so children under age 14 get this tax break, too. Have your children put 4,000 into a Roth IRA, where it will compound tax-free over time. When the money is left in the account until they turn 59 ½, they will never have to pay out any tax or penalties on that money or its earnings.
If your business is not incorporated, and the children are under age 18, neither you, as employer, nor your children will owe Social Security or Medicare tax on their wages.
Retirement Planning: Put more money away in your company retirement plan for yourself than for your employees. Business owners who are more than 20 years older that other company employees can set up a defined-benefit pension plan instead of a defined-contribution plan. Because they are funding a specific benefit (not putting away a percentage of salary) and have fewer years to do so, owners can contribute more to the plan for themselves than their employees.
Claiming Business Losses: Make the most of business losses. If your company has a net operating loss in 2006, it can be carried back two years or carried forward up to 20 years to offset future profits. To get a refund, file an application on Form 1139. Most refunds are sent out by the IRS within two months.
Education: Set up a company tuition-reimbursement plan to pay a childs school cost. Businesses can set up plans that pay up to 5,250 in tuition per employee annually. Business owners children must work for the company, be older than age 21, own no company stock and cannot be claimed as a dependent on the owners tax returns.
Alan Olsen is the managing partner at Greenstein Rogoff Olsen & Co., a top Bay Area CPA firm. He focuses on developing innovative strategies for business enterprises and individuals. A specialist in income tax planning, he frequently lectures and writes articles on tax issues for professional organizations and community groups. His website is ranked among the top in the nation for accounting firms, featuring tax tools and business leadership articles: http://www.groco.com
source: articleworld.net
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