Income Deposit Securities - Income and Growth

Investors everywhere seek opportunities that can provide stable income while increasing the value of their initial investment. Traditionally, these investors turn to stocks that pay dividends. Income Deposit Securities are designed to more directly meet these goals. Read on to learn about three such investments you should consider now.

A money manager's job is to help investors adjust their portfolios to changing market conditions. In uncertain times like these, I believe it is important to use investments that pay healthy dividends. I'm not talking about the dividends you see in the big well-known companies found in the Standard & Poors 500. Most of those companies pay a paltry 2-3% in dividends.

Nor am I impressed by the dividends you can get from mutual funds. The size of most mutual funds means that they have to search for dividends among the large, well-established companies. As a result, the dividends they pay don't cut it either.

But there is another dividend option that is far better, found in an Income Deposit Security (IDS). The Income Deposit Security was developed in coordination with the American Stock Exchange. It is a combination of a corporate bond and a common stock. That means it can provide the interest certainty associated with a corporate bond, but also the potential for long-term growth found in a common stock.

A lot of people don't understand the two-part nature of an Income Deposit Security so when they try to analyze it as an investment it doesn't appear as attractive. It's only by breaking it down into its components that the true valuations can be found.

One IDS that continues to work well in my client's accounts is B&G Foods (BGF). This company makes condiments and spreadable preserves. It makes pickles, peppers and hot sauces under the Red Devil, B&G and Trappey labels. B&G Foods produces the staples that people continue to buy regardless of how fast the economy is growing. That makes it very defensive.

It also is a company that generates a steady, consistent cash-flow. It pays a dividend of around 7.5%. That's very attractive compared to the interest paid on many corporate bonds. That's considerably higher than the measly dividends paid by the companies in the S&P 500.

There's more to B&G Foods than a healthy dividend. It's generated excellent growth as well. According to Morningstar (www.morningstar.com), an investment in B&G Foods grew 52.3% in 2006 and is already up over 20% this year. Not bad for a defensive, dividend-oriented company!

Another example of an IDS that you might consider is Coinmach Service Corp (DRY). This isn't a company you will hear about from the analysts at the big firms. You can't even find out much about it from Morningstar. That's OK; I know that there is a lot of money to be made for my clients in solid businesses such as Coinmach Service Corp—and it's my job to find them.

Coinmach Service Corporation is the leading owner and operator of laundromats across the nation. It's another boring, defensive company whose revenues aren't dependent on a surging economy. In fact, the slower the economy the better this company will do because more people will rent apartments as opposed to buying homes.

It pays a healthy dividend, too. Currently, the dividend is around 7.5%. Overall it was up over 25% in 2006 and has already increased in my clients' portfolios by 13% so far in 2007.

A third IDS that you should consider for your portfolio is Centerplate (CVP). I've mentioned this darling in my column before—hopefully you purchased it then. Centerplate runs the concession stands in most major stadiums and ballparks. They're the ones selling those expensive hotdogs!

Centerplate has a yield of almost 9% right now. And it produced a return of over 60% in 2006. It is down 5% this year because of an attack by some short-sellers. If your investment time-frame is only 30 days then move on. But is you are looking for a solid, growing company that pays an attractive dividend, consider Centerplate.

Income Deposit Securities are an investment that can help your portfolio. But you can't just pull one up in Morningstar and get an accurate picture of their worth. With a little digging, though, you may uncover a real gem.

Nationally-syndicated financial columnist and Certified Financial Planner® Jeffrey Voudrie provides personal, in-depth money management services and advice to select private clients throughout the USA. He'll answer your financial question – FREE at www.guardingyourwealth.com

Social Insecurity

I am not a licensed financial planner or broker of any kind, just a concerned individual that wants financial security and to share some thoughts about that with you.
My uncle recently retired from his job after 30 years working for the same company. My parents are already either semi retired or fully retired. And here I am, a thirtysomething, member of the once lauded "Generation X", contemplating my retirement options that are coming in the future.

This isn't to say that I have funds I can retire on now; I'm merely trying to anticipate what is to come for me and those of my generation regarding retirement. I believe most of you in the know are aware that our Social Security system is in trouble (how much trouble depends on which political party you ask). The reports I've seen basically have Social Security petering out of funds a few years after I turn 65. Great.

Fortunately, I've been saving for retirement on my own beyond Social Security and plan to continue doing so. I sincerely hope you have some kind of retirement savings of your own if you are still in the workforce. The options today are plentiful, and usually you don't need a huge amount to get started.
If you work at a job that offers a 401k plan, that is a great way to get going with retirement savings. The basic idea of a 401k is you choose to deposit a set percent of your paycheck into an account that consists of various mutual funds. A lot of 401k plans offered by companies include a match, which means that your employer also contributes an additional amount of money to your 401k fund. This match is based on a percentage of the amount of money you contribute yourself to the 401k. This is pretty much like your employer giving you a regular raise, or bonus. 401k plans will increase in monetary value just like mutual funds can increase, so your 401k will start to grow exponentially over time even if your employer isn't matching your contributions. Another advantage of the 401k plan is the contributions you make are not taxed until you withdraw them at retirement.

Even if you don't have a 401k plan available, you can try other options, like IRA accounts. There are a variety of IRA plans available, all of which have different advantages and drawbacks. IRA's usually have a required minimum amount to open one, so you may need to sock some money away in a savings account first before you can go this route. The general principle of the IRA is similar to the 401k, a collection of various funds (like mutual funds) that you can save money into until you retire.

The basic principal behind any kind of saving, retirement or otherwise, is discipline. If you're not saving now, you will need to train yourself to handle not having x amount of money a month. Figure out what you can save, and once you have gotten into a regular monthly habit of saving you will be on your way. I like the automatic deposit function that many investment plans offer. This makes it easier to save, since you don't need to think about writing out a check or making a manual deposit.

Once you are regularly saving, you can adjust and probably should from time to time. If you get a raise or another job that pays more money, start saving more into your retirement fund. This will only help you down the road. I suggest you keep an eye on the amount of money you have saved for retirement over time. Don't just forget it until you're ready to retire - the more you check your money along the way, the more chances you have to make sure your funds will be sufficient in your retirement.

I suggest strongly you speak with a financial advisor of some sort if you are considering starting a retirement fund or if you may want to make some changes to your existing retirement fund. I regularly consult with my financial planner and make periodic changes to savings I have for retirement.

The retirement system currently in place will likely have changed considerably by the time my generation has come to retirement age. Here's for hoping we can all find our way to financial security when that day comes for us.

Business Cash Advance - Convenient Way to Meet Your Financial Demand

If you run a small business, very often you will find yourself in need of a business cash advance for various financial crises. Your business cash flow may be disrupted for various reasons. Payment of dues, purchase of new equipment or starting new business venture might account for some of the reasons. Business cash advance is a very handy tool for every small businessman. If your small business meets certain criteria, then one can apply for business cash advance.

How business cash advance works?

Business cash advance is more or less a payday loan. It differs from a regular payday loan where individuals will have to prove their employment and salary. But here business cash advance is useful when a person is lacking perfect credit or doesn't have the ability to get funds by other means.

The only requirement for getting a business cash advance is that your business should accept Visa or Mater Card as payment because business cash advance is not a loan. Instead it is a cash advance, which is paid back when you process the Visa or Master Card payments. The lender should get your merchant account receipt before they lend you cash advance.

Advantages of business cash advance

Getting a business cash advance is not too difficult. You are not even required to produce a collateral to the lender. No fees and no fixed term to repay the loan are required as in case of normal business loans. The biggest advantage of having a business cash advance is that you do not have to personally repay the advance to the lender. It gets paid back automatically when you process a Visa or Master Card payment. In this way, you get your business finance on time and also repay your advance within the stipulated period.

How to apply

Nowadays business cash advance providers provide their services online. There are many lenders in USA, UK, Canada who provide this service online. Their websites provide all the information, terms and conditions required for the loan application process. One should study and understand their terms before applying for a cash advance. The processing time is rapid too. If you apply online today, you are sure to get a feedback in the next day or so.

With no interest rates, and no security deposits, business cash advance nowadays is the most convenient way to get cash when your business really needs it.

The Personal Financial Budget is the Door to Financial Freedom

Personal financial well being has as its core concept a personal financial budget. This type of financial budget is information made up of your income and expenses and the more accurate this information the easier it will be for you to meet your monetary goals and realize your dreams.

People who are good at personal finance management know how to spend within their income, plan for the future, and solve their financial problems as they arise. People who live pay-check to pay-check usually have poor financial habits that include spending more then they earn, have no future financial plan, and continually fall farther behind with each monetary emergency that crops up.

The question you need to ask yourself is which one are you and which one do you want to be?

If you want to be the person with the secure financial future then you need to take charge of your money with a cash flow plan. The way to do that is with a budget which for many people is something that doesn't come naturally. Making a budget is much like anything else; it takes a little time to get the hang of it. The main thing to remember when starting your first budget is that for the first few months it will basically be a way to get organized and start getting an idea of where your money goes every month.

Creating a personal budget will take some time out of a couple of days a week, but it is not necessary to spend hours a day doing it. The best place to start is with a pad of paper and a pencil or pen. You can also find simple budget spreadsheets for free on the internet if you want something a little more organized. Just simply list income on one side of the sheet and expenses on the other and see where you stand. Do you have a positive cash flow or a negative cash flow? By regularly monitoring and evaluating your cash flow you can begin to see patterns and spending habits that may need to be adjusted. The big surprise for many people is finding out just how they are actually spending money and where it is going.

With a budget in place you can quickly identify those areas where you are spending to much money and those areas that maybe you need to redirect money to, such as credit card debt, car loans, or even retirement savings. A solid cash flow plan can also help break the cycle of debt that the people of this country, the United States, are struggling with.

If you are struggling with money and are unsure of where your's is going then the first step you need to take is the creation of your own personal financial budget. Only by tracking your money at what is it doing can you take back control of financial future for you and your loved ones.

Get Control of Your Personal Finance With a Budget

It is fairly common knowledge that money matters can be simplified and controlled with a budget. One of the keys to personal finance management is creating and using a household budget. It is not a really hard task, but one that many people avoid. The reason is that it can often be hard to avoid overspending and having a budget really puts spending problems out there.

A budget is basically a list of expenses and income. It should include all expenses, even the seemingly little expenses like a morning coffee purchase. The budget can be made out weekly or monthly, whatever way is best for the household. For someone who gets paid once a week, a weekly budget may be best. For someone who gets paid once a month, a monthly budget would work nicely. Although, it is really a matter of personal choice as to how the budget is made out.

The income section of a budget is usually fairly simple. Most people can easily track their income. Some people choose to list their income after taxes, while others list the income before taxes and include taxes as a expense. That is strictly a matter of choice.

The expenses section is where most people have trouble. It can be hard to see our spending habits in black and white. It is really important, though, to be honest and list everything. You may find it is helpful to keep a spending log for a week. Your spending log is where you will write down every purchase you make. This can be a good way of tracking all the little expenses you incur throughout a week.

Your expenses section of your budget should also include utilities and housing expenses. If you have a car payment, include here as well. You need to include money spent on gasoline, bathroom items, food and any other thing you spend money on. You do not have to include large, one time purchases, though, as they are not a routine part of your expenses.

Once you have your income and expenses listed you need to add each up. The total of your expenses should not exceed the total of your income. If it does then you need to cut back on your expenses. You may have to stop some spending or try to find creative ways of reducing your spending.

The whole idea of a budget is to ensure that you are not spending more then you are earning. Your budget is a blueprint for how you should be spending your money. Once you have your budget made out and it is balanced you need to stick to it. Only spend as much as you have allotted in your expenses and you should find your personal finance situation becomes much easier to deal with.

College Student Credit Cards - Friend or Foe?

There is much debate surrounding college student credit cards. Some swear up and down that they're a disaster waiting to happen while others vehemently object and insist they are a must-have financial tool for college students. Which side is right?

When deciding whether college student credit cards are good or bad, you need to weigh the facts. These three truths will help you come to your own conclusion.

1. Aggressive Marketing

College student credit cards have gotten a bad rap when it comes to their marketing tactics -- and some would say that it's for good reason. You can't hit a single college campus without coming across at least one application for college student credit cards.

That being said, while the applications are definitely readily available (to put it lightly), no one is forcing college students to sign the application. It's the responsibility of a parent to instruct their children on wise financial decisions.

The credit card companies are marketing their product -- that's what they do. Parents need to do their part and make sure that they instruct their children in the ways of the credit world.

2. They've Got to Grow Up Sometime

Everyone has to grow up sooner or later and college student credit cards can provide some priceless lessons in the world of adult finance. For the first time, college students can be responsible for their own spending and their own monthly bills.

Yes, college student credit cards can provide the potential for disaster (but so can a number of situations that students encounter in college). Just because student credit cards have the potential to be misused, it doesn't mean that they will be. Have some faith in today's college students!

3. Paving the Way

Once a college student graduates, they're going to need some things (a place to live and a car to name a few) and they're going to need credit to get the things they need. If they don't start building their credit history in college, when are they supposed to do it?

If a college student wants to be completely prepared when they graduate, they're going to need to work on building a solid credit history while they're in school. College student credit cards can be the means to that end.

If you know a college student (or are a college student) who has been debating about whether college student credit cards are good or bad, consider the above three facts and remember, it's not college student credit cards themselves that are good are bad -- it is who is using them and how they are being used that make the difference.

Simple Steps To Cut Down Monthly Utility Expenses And Have Some Excess Cash At The End Of The Month

The Possible Demise of E-gold, Online Payment Processor

Throughout my two years of using the e-gold online payment processor, I have come to realize that many illicit online businesses were favoring e-gold. They consist of bogus investment opportunities known as H.Y.I.P (High yield investment) scams & also dubious marketing schemes disguised as advertising opportunities called Auto/Manual Surfs. Should e-gold be gone, then such scandalous businesses are going to look for another online payment processor which also offer low identity verification requirements. Therein is the weakness of e-gold. Year after year, e-gold had still lacked decent account ownership verification. Anybody could open unlimited e-gold accounts without the need to provide any proof of identity. It was the very fact that made it a favorite payment processor for criminal activity including money laundering & possibly terrorism too.

I have also come to believe that the hype of an e-gold account getting "hacked" was possibly designed by criminals to instill fear in new & honest e-gold account owners. The fear ensured that beginner & honest e-gold account owners felt uncomfortable when storing significant amounts of funds in their e-gold accounts. The discomfort felt by e-gold users may have indefinitely influenced them to believe that their money was safer in the hands of mistakenly capable individuals whom operated "ponzi" schemes, promising wealth & building false trust in their customers. I myself had experienced the situation as a client of the now defunct 12dailypro auto-surf program in 2005. There were many more similar programs like it & they all utilized e-gold as a payment processor. Rumor had it that e-gold was also investigated by the F.B.I. (Federal Bureau of Investigation) that same year.

Now the U.S. Justice Department had Digital Currency Business E-Gold indicted for money laundering and illegal money transmitting after two & a half years of investigation by the U.S. Secret Service Orlando Field Office in collaboration with the I.R.S. (Internal Revenue Service), the FBI and other state/local law enforcement. The recent "crackdown" of e-gold's illicit activities by the U.S. departments is a possible sign that a monopoly of another online payment processor is now in motion. The authorities had wounded a twisted industry including its favored e-gold payment processor & most likely see to it that the target industry bleeds itself dry into a grave. Who knows, maybe the online child porn industry & another suspicious online payment processor is going to be the next target of the U.S. authorities. I doubt the situation is going to affect the online porn industry as it is not exactly a small income earner as compared to the online High Yield Investment Industry (H.Y.I.P) or the Auto/Manual surf industry.