Exchange-traded funds (ETFs) are closed-end investments purchased on an Exchange. They are passively managed funds which mirror the performance of specific indices by tracking the performance of the individual stocks that comprise each index. The major advantages of ETFs are (1) low cost structure, (2) tax efficiency and (3) ability to be traded throughout the day. Yet, an even greater advantage is the ability to buy and sell options on many ETFs, which offers investors the flexibility to execute more sophisticated trading strategies that transcend simple ownership of the ETFs.??

Investors, who expect a market rally in an underlying index, buy call options on a corresponding ETF, and acquire the right to buy shares of the ETF at a specific strike price. Call holders are not forced to exercise the options, but if they do, the call writers are obligated to sell shares at the strike price. If the option is not exercised due to the index moving in the opposite direction than the buyer?s expectations, the call holder loses only the premium paid to enter the contract, while the call writer of the option contract gains the premium either way.??

Example

We assume that today an investor instructs a broker to buy on December a call option contract on Coca Cola Co. (KO) with a strike price of $51.70. The broker relays these instructions to a trader at the Chicago Board Options Exchange (CBOE). This trader then finds another trader, who wants to sell on December a call contract on Coca Cola Co. (KO) with a strike price of $51.70, and the strike price for an option to buy one share is assumed to be agreed at $5.20. One stock option contract is a contract to buy or sell 100 shares, according to the law in the United States. Therefore, the investor must arrange for $520 to be remitted to the exchange through the broker. The exchange then arranges for this amount to be passed on to the party on the other side of the transaction.?

In above example the investor has obtained at a cost of $520 the right to bur 100 Coca Cola Co. (KO) shares for $51.70 each. The party on the other side of the transaction has received $520 and has agreed to sell 100 Coca Cola Co. (KO) shares for $51.70 per share if the investor chooses to exercise the option. If the price of Coca Cola Co. (KO) does not rise above $51.70 before December, the option is not exercised and the investor loses $520. Instead, if the Coca Cola Co. (KO) share price rises to $80 and the option is exercised, the investor buys 100 shares at $51.70 per share when they actually worth $80 per share, thus realizing a gain of $2,830 ($8,000 ? 5,170).?

By and large, ETFs are profitable if an investor has a long-term horizon because the more the ETF is held, the lower are the costs incurred for the investors since it is not traded on a constant basis. In general, when buying ETFs, investors should set a clear investment horizon and be aware of the cost involved.

When a bank forecloses, they take ownership of the property, usually in order to resell it in hopes of earning back some of their money. Foreclosures happen because the owner couldn’t make the mortgage payments and had to forfeit the property. Bad for the home owner, good for you, since you can often get bank-owned foreclosure real estate for a song.

Often, what happens when someone can’t make their payments is that the property reverts to the mortgage company, usually a bank, after a failed foreclosure auction. Most foreclosure auctions never receive even one bid, for one reason or another. This means that they end up going to the bank who really has very little use for properties and are usually very interested in getting rid of them as fast as possible. These foreclosed properties are referred to as REOs or Real Estate Owned.

If you aren’t experienced in negotiating with banks, you’ll want someone to be the go-between and make sure things run smoothly. This usually means hiring a buyer’s agent who has experience in aiding bank-owned foreclosure sales. You are not usually the one responsible for paying the agent, take a look at the contract first and you’ll likely find that the seller (the bank) is the one to pay any commissions.

Negotiating the price on bank-owned foreclosure real estate will generally depend on how long the property has been on the market. Banks are not likely to budge much from the asking price is a property has just been put on the market, but once it has been there for a time without offers, they will be more willing to reduce the price in order to sell quickly. It can actually be to your benefit to wait until a property has been on the market for a month or more so you can get a lower price.

Make sure you have a lawyer take a look at any contract that the bank draws up, since this is probably not going to be in your favor. If you don’t understand the legalese, you will definitely want some help translating it. Remember, you don’t have to sign anything until you are satisfied with the deal you are getting.

Another thing to watch out for is the escrow service that the bank uses. Banks often arrange a bulk rate with an escrow service, but you could very well end up paying the difference. Check the fees that you’ll be charged before you pay. They could be steeper than you like and it’s a good idea to know that ahead of time so you can check out your options.

Buying bank-owned foreclosure real estate can be a very good investment, but it does require some knowledge of the system. Until you have a sale or two under your belt, you will want to have a buyer’s agent to make the entire process easier and snag free. Once you’ve actually completed a bank-owned property purchase, you may just find that you are addicted and want to continue to buy properties like this to flip!

Ten Features Of The Payment Stream Financial Program

This program has several consumer oriented features created to qualify more prospective customers and thereby generate enhanced sales capabilities for our clients.

1. No credit checks are necessary in order to qualify the consumer.
2. No formal contracts are required, provided the consumer has authorized payments on their credit card.
3. The receivables will be purchased after the product has been shipped and typically after the 30-day money back guarantee has expired. The intent is that the returned accounts be eliminated prior to the consumer receivables being sold.
4. There is no interest charged to our client?s customers.
5. There is no recourse to our clients.
6. This program works well with credit card payments.
7. This program is great for infomercials.
8. This program works well for our clients who have high mark-ups.
9. The funding source absorbs the credit card fees.
10. The program is based on an automatic debit.

The Payment Stream Financial Program: ?? An Example

Let us say, for example, that you offer a five payment credit card transaction, and receive the initial payment with the first order. You then receive the second payment thirty days later. You may then sell the receivable immediately after having received the second payment and the funding source would purchase the remaining three payments.
However, if you only charge shipping and handling up front and receive the initial payment thirty days later, then the funding source would purchase the remaining four payments.

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If ever there was an argument for the advertising ban on Hedge Funds to be lifted it is this one. Over three years a brazen group of New York scam artists raised about $30 million from unsuspecting investors by posing as principals of a successful hedge fund and then fled with the loot.

Investments from $5,000 to $500,000 were obtained from college professors and educated professionals. It took the group a little more than three years, from early 2003 September 2006 to raise the $30 million.

A grand jury empaneled by Michael J. Garcia, the U.S. Attorney in Manhattan, is said to have handed up a sealed indictment in the case, according to a lawyer hired by 10 of the victims, who said that the FBI was investigating the matter.

The criminals are clearly to blame here, however, this is a problem that, in our opinion, is caused in part, by the regulators themselves.

There is a scam out there that is based on “Prime Bank Guarantees” or “Medium Term Notes” that has taken billions from investors with promises of astronomical returns. The SEC web site says:

“Lured by the promise of astronomical profits and the chance to be part of an exclusive, international investing program, investors are once again falling prey to bogus “prime bank” scams. These fraudulent schemes involve the purported issuance, trading, or use of so-called “prime” bank, “prime” European bank or “prime” world bank financial instruments, or other “high yield investment programs” (“HYIP”s). The fraud artists who promote these schemes often use the word “prime” ? or a synonymous phrase, such as “top fifty world banks” ? to cloak their programs with an air of legitimacy.”

The thing that allows the bogus ‘brokers’ and ‘investment managers’ of this fraud to operate is that they have created a veil of secrecy over the whole operation. The SEC says:

“Promoters claim that transactions must be kept strictly confidential by all parties, making client references unavailable. They may characterize the transactions as the best-kept secret in the banking industry, and assert that, if asked, bank and regulatory officials would deny knowledge of such instruments. Investors may be asked to sign nondisclosure agreements.”

This ‘secrecy’ is what perpetuates the fraud. Simply put, the peddlers of this scheme will tell you that when you do your research that you will find everyone denying the existence of the scheme. They will say that those not in the industry don’t know about it because there would be outrage that rich people could make so much money and those in the industry will deny it because they either aren’t high enough up or are trying to keep it a total secret. They will also tell you that a minimum investment of $10mn is the norm, but they have split up that $10mn to allow their investors in.

This secrecy is the perfect cover, and I speak from personal experience, 15 years ago as an investment pup, to my eternal shame, I got caught in a the same scam.

So we have an ‘investment’ that is supposed to be super secret, has a minimum investment and is not advertised anywhere. Do elements of this ring any bells?

Simply put, the regulators are perpetuating the ‘secrecy’ of hedge funds by not allowing advertisement of the funds. Their rules about only being able to invest a certain amount of money did not protect the people in this case who invested $5000, did it? Something tells me the scammers did not check to see what the net worth of the investors was either.

How would advertising funds have helped? As with everything, the fact that advertising is allowed generates an awareness of a particular industry. How many of you knew how to play poker before the online casinos plastered the web with advertising? My limit was ‘Snap’, now I am a stone cold poker shark.

By the very nature of advertising and, therefore, informative web sites, brochures etc etc, this kind of fraud would be more difficult to perpetrate because the veil of secrecy would be lifted for all to see.

Of course, there will always be criminal elements who will attempt to subvert whatever rules are out there but the regulators throughout the world don’t need to make it easy by perpetuating a secrecy myth that can be exploited by the criminal element.

Real Estate Foresight, Education, Tools & Support Lead to Success

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This real estate investing article is thoroughly designed to re-introduce you to the post- bubble real estate investing world of today. Most of your old books, manuals, courses and education materials on real estate investing are severely deficient in addressing the new methods of real estate investing today; the principles haven?t changed but the methods and opportunities sure have.

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Today?s real estate investor uses technology, networking, mastermind alliances, asset protection measures, automated prospecting, buying and selling systems as basic tools to greatly increase efficiency and productivity. One rule however hasn?t changed: ?Buy Low, Sell Higher?

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Gone are the days when you buy one month and flip the next for fast profit. Today you?ll find bulk R.E.O?s, short-sales, wholesaling, leasing with options to buy, owner financing, loan modifications, deeds in lieu of foreclosure, tax lien investors and so forth. Look for more and more auctions and automated short selling systems designed to expedite the process of liquidating excess property inventories at rock bottom prices.

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Private money is king. Hard money lenders and people with liquid cash or dry powder as it?s called are in positions buying properties in some cases at 11 cents on the dollar! It?s already happening; bulk REO packages selling 50, 100, 500 or a 1000 or more distressed, repossessed homes at a time are selling to institutional buyers and wealthy privately connected buyers every day. Homes that on average originally sold to unqualified buyers for $85,000 now routinely sell for $6,500 when bought in bulk at 50 or more. That?s 50 x $6.500 or $325,000, not the heyday price of $4,250.000.

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Today?s investor is a lead generating machine, one who sifts through volumes of properties and parcels out leads in all directions depending on the method best suited to dealing with the property in question. The words ?A real estate investor gets paid when they solve a problem? have never been more true than today.

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Beginning real estate investors: Beware, the sharks are in the water and there is blood in the streets; bottom feeders are quietly buying the cream puffs in these deals and re-parceling out the dogs to the unwary. Take time to learn and understand before you begin buying. Learn from people who know and are willing to tell you how to approach these markets. Millions are being made but not by the uneducated and unconnected.

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Today is the day that you?ll understand whether or not you?ll use real estate as another road to wealth. Here is where I introduce you to a well traveled and mapped out highway to predictable prosperity, it?s time tested and been proven to work, let?s see if you can simply follow the map which will guide you to this new stream of income.

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I?ll be your opportunity guide, the person who directs you into the fast-lane while you methodically leave that old 9 to 5 behind. All success begins with a plan; real estate is just a tool you use in planning an overall approach to living a well balanced and satisfying life. Once you find your sweet spot in real estate you?ll be one step closer to succeeding with near perfect performance in an enjoyable and prosperous endeavor.

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Currently you?ll find that the world is on sale and everything is negotiable, your ability to find, negotiate, structure, manage and market real property is the key to cashing substantial checks along the way. As with any trip it pays to plan and prepare properly by first knowing and understanding the rules of the road while easily avoiding the obstacles and roadblocks along the way.

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If you?re currently employed then keep that position until your real estate profits overtake your monthly take home pay by twice your current salary, then bank six months worth of wages before you contemplate leaving that old 9 to 5 in favor of fulltime investing. You may even choose to use real estate investing as a secondary income stream while you keep the regular J.O.B. (Just Over Broke). It is suggested that you have seven independent streams of income in order to truly be insulated against unforeseen circumstances that lead to chapter 11.

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Rule number one is ?Keep your overhead low? Your new offices will be considered your car, your home and local public places, these are all fine venues to carry out general duties and are considered ordinarily acceptable work spaces for the mobile investor in today?s real estate game.

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Remember this phrase ?There are Riches in Niche?s?? and there are a great many specialties to choose from in real estate, you should strive to become a specialist in 2 or 3 areas of expertise but not so many that you fail to master the fundamentals of each niche. You don?t want to be a one trick pony but you don?t want to be the proverbial jack of all trades and master of none either.

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You have no doubt heard that all successful people are most often masters of time management; it will serve you well to learn from the best right from the start while you refrain from constantly searching for new mentors to teach within the same subject areas. Limit the amount of differing advice that you get from competing resources so that you can maintain your focus on one proven step by step approach that has already been proven to work by following an existing blueprint, there is no need to recreate the wheel, use existing systems to leverage and compound your success and progress.

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Start by finding a guide, someone who has already researched, found and verified qualified resources that are proven success models, from here you can begin building your team. T.E.A.M. = Together Everyone Achieves More. There is no such thing as competition; you should consider it co-opitition or co-operating competition. There is plenty of opportunity for everyone, don?t let a scarcity mentality spoil your journey.

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There is an old saying in real estate and it states ? You get paid when you solve a problem? seek to be a problem solver and a solution provider throughout your networks and areas of operation and you?ll find greater opportunities to be of service throughout the your day.

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Here are a few of the choices you have to provide service in real estate: bird-dogging, foreclosure investing, creative finance, seller financing, owner financing, no money down,? private funding, notes & mortgages, commercial, residential, raw land, judgments, liens, flipping, wholesaling, sub2, auctions, probate, lease purchase, options, tax strategies and a great deal more.

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The key is goal setting and we?ll make it easy, starting out with just 30 minutes a day to read one chapter of real estate educational materials to help you fully prepare within 90 days to begin doing profitable deals while saving you time, money and frustration.

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Believe it or not, it only takes a short while to understand the principles, cement the concepts, instill the fundamentals and begin to build your network while designing your plans and preparing to implement your strategy using precise tactics to own your specific niche in real estate.

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The entire blueprint can be found at www.BeARealEstateHeavyWeight.com? and it is guaranteed to work when you do.

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Before we can answer the question ?should you invest in individual bonds or bond mutual

funds?, we have to first understand the purpose of owning bonds in your portfolio. Novice

investors use bonds as an income generator, relying on yields to supplement living expenses

during retirement. Institutional investors and competent advisors, on the other hand, view

bonds as a tool to reduce portfolio volatility. Total return, not just bond yield, is what counts. If the purpose of holding bonds is to control portfolio risk, then owning bond funds, not individual bonds, is the appropriate choice.

Individual bond shares are not cheap. A single corporate bond can cost you $10,000 or more.

So, if a retiree with a million dollars decides to allocate 40% of his portfolio to bonds

($400,000), he would likely have to purchase at least forty different issues to achieve a

somewhat diversified bond portfolio. The higher costs associated with acquiring individual

bond issues may prevent many investors from sufficiently diversifying among different issues.

In contrast, an initial investment in a bond fund might cost only $1,000 to $3,000 depending on

if you purchase it in a retirement account or not. As a bond fund holder you can own stakes in

dozens, perhaps hundreds, of bonds with one purchase. Let?s take for example the Vanguard

Short Term Bond Index (VBISX). If you own an IRA, you can hold 642 distinct bond positions

with a $1,000 investment in the fund?a far cry from the 40 issues we purchased in the

previous example.

Costs

While individual bonds do not incur the ongoing management and operating expenses of bond

funds, they do have associated expenses including brokerage commissions/fees and bid-ask spreads) that all investors should consider. Furthermore, retail investors (as most of us are)get less favorable pricing (commissions AND bid/ask spreads) than institutional investors. The

costs of trading individual bonds are very hard to accurately pin down and commissions are

never fully disclosed. If ever there was an area for institutional traders to make obscene profits

in the markets, it?s the bond market.

When you purchase a bond fund, you know what the cost will be: a transaction fee and the expense ratio. There are a handful of low priced bond funds available, including the Vanguard

Bond index we discussed above whose annual expense is only 0.20%.

Safety

Many investors are under the impression that owning bonds is a risk-less transaction. That is a myth that results in a false sense of security. The fact is that bonds, whether corporate or treasury respond to daily changes in interest rates as well as credit conditions. Individual bond investors might take comfort in knowing that at the end of the maturity period, their principal will be returned. However, throughout the maturity period, their principal will fluctuate. As interest rates rise, bond principal will go down (since the bonds become less attractive to new investors). If the owner of the individual bond feels compelled to sell their position before the maturity date, they may likely take a loss during a period of rising interest rates.

Bond funds are much more liquid. Granted, bond funds do not have a fixed maturity (meaning

principal nor income is guaranteed). But, fund managers are constantly buying and selling

bonds within the portfolio in order to maximize interest income and capital gains.

Additionally, if you only own forty bond issues in your portfolio, having one or two of them

default can put a serious damper in your day. In contrast, because a bond fund holds

hundreds of bond issues, if a handful of them default the impact might be nonexistent.

The Benefits of Indexing

By now I hope I?ve convinced you that bond funds are more attractive than individual bond

issues. But, what type of bond fund should you buy?

There is a strong argument in favor of owning bond index funds instead of actively managed

bond funds. In general, bond index funds offer you broad bond market exposure for a fraction

of the cost of an active fund. All other things equal lower expense ratios result in higher returns for you. Furthermore, with actively managed funds, investors assume an additional level of risk: manager risk.

In conclusion, there are distinct benefits to owning bond funds in lieu of individual bonds.

Despite their ongoing expense, bond funds provide a better alternative in terms of diversification, liquidity, and the availability of reinvesting dividends. A low cost low cost bond index fund will help you achieve the portfolio risk control you need. Remember, just as with equity investments, the more broadly you diversify, the better results you will attain.

Distressed debt, including real estate mortgages, are now attractive to many smart investors.

For example, John Paulson, who runs the $36 billion hedge fund firm Paulson & Co, is looking to buy distressed mortgages and distressed debt, despite being bearish on the overall economy, Bloomberg reported. Paulson wrote in a 2009 outlook to investors that he is interested in investing in debt restructurings, bankruptcies, strategic mergers and financial recoveries. Paulson’s opinion is entitled to great weight as he made billions betting the subprime market would crash and was one of the few to get it right.

Economic Outlook Favors Distressed Debt

Distressed investments are good values during bad business times and bad periods in the credit cycle where there is a bad economy, a bear market in stocks and increasing defaults. As we can easily see, distressed assets are now in favor. Conventional knowledge rightly suggests that in a period of economic contraction, debt, rather than equity, is a good investment strategy.

Risks of Distressed Debt

Distressed debt requires considerable expertise. Such debt is subject to serious legal issues, including possible bankruptcy proceedings, that require experience and expertise to successfully navigate.

Traps for the Unwary in Buying Distressed Mortgages

There are also several traps for the unwary in buying distressed mortgages. First, the buyer of a distressed mortgage may want to bring a foreclosure proceeding to take over the house. This inevitably will cost time and money. Depending on the local courts, and the willingness of the homeowner to contest the foreclosure, such proceedings can take as much as a year. During this time, there may be no income on the mortgage while taxes and insurance costs have to be paid. Legal issues, such as the inability to find the mortgage note in mortgages that have been sold into pools, may stall foreclosures. Some mortgage pools were improperly assembled and documented, making foreclosure difficult.

Further, during the foreclosure proceedings, a disgruntled homeowner may actually damage the home to spite the lender. In our market, we have reports of even homeowners of very expensive homes vandalizing homes by doing such things as painting “Screw First National Bank” on the walls and punching holes in them. At the least, the homeowner’s efforts at maintenance and repair will be minimal or nonexistent. The worst-case scenario is when the home is vacant, leaving it open to decay and vandalism. This scenario can give you nightmares.

Adding to the nightmare is the fact that in many communities, the zoning and building code game is designed to help the local established contractors keep market share. In some communities, if the property is deemed to have a need of 40% or more of repair, the property needs to be rebuilt up to current building code standards, in effect allowing you no more than a physical shell that would require almost new construction. Thus, the lender or distressed debt owner has to act as though the property consists of only a piece of land.

Some communities with impact fees may require the lender to pay an impact fee. Many older properties had not paid a fee and the local communities are looking for revenue. They may demand an impact fee be paid before allowing this “substantial rehab” to occur.

Also, many communities have six-month grandfather clauses that provide that if they can show that a non-conforming use has ceased to operate for six months, the community can deny a certificate of occupancy and demand the property be rebuilt up to current standards.

Bulk REO

We see many people chasing bulk REO properties where a bank is selling a pool of single-family homes they have foreclosed on. We believe that banks will tend to sell the worst properties they own in these pools, especially those that may have EPA problems, zoning problems, repair problems, impact fee problems or other problems. The buyer has a limited time to review these properties and may not be aware of the problems he is buying. While real estate is a business where knowledge of the local market is essential, some bulk REO pools contain properties that are spread out over dozens of states, making local market knowledge impossible and management of the property a daunting task.

Better than Distressed Debt

We believe that there is a better strategy than buying distressed real estate debt. Looking at buying the entire distressed home, not just the mortgage, can cause you to see the superiority of this strategy.

This method of buying distressed homes — advertising widely for distressed sellers, offering low prices, selling the homes you buy using lease options at full retail price, giving the buyers time to repair their credit so they can get a mortgage.

We can buy single-family homes at deep discounts that are comparable to the discounts offered by buying distressed mortgages. These large discounts are possible for a number of reasons. In this real estate market, home sellers face a huge imbalance in supply and demand. Home sellers listing their homes could wait as much as a year to sell, during which time the outlook for prices is a decline. Further, with the decline in the availability of mortgage credit, few buyers can get mortgages. Where we are, local lenders are not much interested in making new mortgage loans. Further, the seller has to compete with real estate that is being dumped on the market in foreclosures proceedings and in sales of real estate owned by the mortgage lenders.

When a distressed seller enters this market, the distressed seller needs cash and he needs it fast. Few if any buyers are out there for him. To more his home fast, he needs to sell at a very low price. This is how one can buy the entire home at prices equivalent to the prices being paid for only the debt on the home.

A smart investor who buys the entire home, the equity and the loan, has total control and all of the upside potential, whereas the poor distressed debt buyer has to hang on while the property is in the hands of the owner. The distressed homebuyer has all the equity and can improve the property easily and immediately re-sell or lease it.

Summary

In sum, in terms of return on investment, obtaining an asset that has to be foreclosed at 30% of its face value and praying that the asset is salvageable and serviceable at the end of the perfection/foreclosure cycle may not be cheap enough if the cost of bringing it back up to habitable status is 70% of the value. We believe that the more you study the matter, the more buying distressed homes offers better returns with less risk.

Millions of Americans buy mutual funds by simply choosing them as an investment option in their 401k plan.? How do people go about investing in mutual funds outside of their retirement plan at work?

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There are at least three popular ways average people buy mutual funds, each with its advantages and disadvantages.? Where to invest depends to a large extent on how involved you are willing to get in the process.? Some people want to learn how to invest, and others want to rely on someone else to handle their investments.

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Let?s look at three popular ways to buy mutual funds, starting with how to invest if you want to rely on someone else.

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If you want to buy mutual funds with a minimum of time and effort on your part, contact an investment professional.? Even though these folks usually call and solicit you, you can call them.? Look in the phone book under financial planners, stock brokers, or investment services.? Some life insurance agents sell mutual funds as well.? Perhaps your local bank or credit union has a representative on board who sells mutual funds.

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The advantage of this approach is that someone helps you make financial decisions, and deals with the details, including the paper work.? The disadvantage is that you will pay sales charges (loads) and/or other fees that you can otherwise avoid.? Rather than choosing a professional at random, I suggest you ask investors you know who they deal with, and how they feel about them.? Needless to say, some professionals in the investing business are better than others at their job.?

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A second popular way to buy mutual funds is the ?supermarket? approach.? For example, by opening a brokerage account with a major discount broker, you should have access to hundreds of funds to buy.? To get started, go to your computer and search for ?discount brokers?.? Once you have an account with money in it, to buy mutual funds you just click to buy.

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The advantage here is the wide selection of funds available from several different fund families.? You should be able to buy funds without sales charges, but there will be transaction fees, which are often quite reasonable.? On the other hand, this is basically a self-serve supermarket.? If you want advice on how to invest or where to invest your money, service is limited.

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The third approach is to go with a no-load fund family like Vanguard, Fidelity, or T. Rowe Price.? Search ?no-load funds? on your computer to find a list of them.? These investor-friendly investment companies have toll-free numbers you can call for assistance in opening up a mutual fund account.

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There are numerous advantages to this third approach to investing in mutual funds.? You deal directly with the mutual fund company, there are no middlemen.? You can talk to their representatives toll-free and ask questions without sales pressure.? They are used to talking to average folks who are not rich, and who don?t speak the language of Wall Street.

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The major no-load fund families offer a broad variety of mutual funds that have no sales charges, and often have some of the lowest yearly expenses in the industry.? This makes their no-load funds a low-cost way to buy and hold mutual funds.? Plus, these mutual fund companies offer investor assistance and services that are free of extra charges and fees.

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When you invest with a no-load fund family, you can buy or sell mutual funds on your computer or toll-free on the telephone without paying any sales charges or transaction fees.?

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The disadvantage here is that you make your own investment decisions.? You decide how to invest and where to invest your money in the various mutual funds they offer.? Plus, you may be required to fill out your own forms, like the application required to open an account.

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You can save thousands by buying no-load funds directly from a no-load fund company.? This is the best way to go IF you are up to speed on how to invest and investment basics.? If you are still clueless, there are plenty of articles available to help you learn about investing and mutual funds.

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?Negotiate with Plano REOs

In the real estate arena Real Estate Owned (REO) are when a bank or mortgage company has gone through the foreclosure process, no one bought it at the foreclosure action and the bank became the owner of that property.? Now the bank must sell that property.? If the listing is relatively new on the market, it is most likely that the bank will not come down much, if any, from its asking price. You will have greater negotiating power if you go after homes that have been on the market for more than 30 days. Follow these tips:

• Most lenders and banks are moving away from paying typical buyer closing cost. Many fees such as transfer taxes, county and state fees, are due by the buyer and not the bank. Generally, banks do not pay for pest report, repairs or warranties.
• Banks negotiate bulk discounts with escrow and title companies. If you decide to use the bank’s title or escrow company, review the fees that those companies will be charge you. Usually, fees not paid by the bank but by the buyer will be higher because title and escrow often make up those discounts by charging buyers more.
• Many banks will not sign a counter offer until all terms are mutually agreed upon between the parties verbally.
• Generally the banks will allow Board of Realtor contracts to be used but special addenda provided by them must be attached to the standard purchase contract. Read it thoroughly and ask a real estate attorney for advice if you do not understand it.?
• If the bank won’t budge on your offer and you receive a rejection, wait 30 days and then resubmit your original offer, with the original date crossed off and your new date inserted.
• You might wait 10 days, or more, for a response to your offer from the bank. You must be patient as you are usually dealing with a conglomerate, not a regular seller.
• The bank may ask for you to submit a loan application so it can prequalify you; however, you are not obligated to obtain your loan from that bank.
• If you cannot close by the predetermined closing date, the bank may charge you a penalty for each day you pass that date. Make sure you have a pre-approval letter from your own mortgage company before you submit an offer.

There are drawbacks to buying an REO or Plano Foreclosure, like waiting for a long time to get a response from the bank.? Many of these homes are dirty and in disrepair. ??You will be asked to buy the home “as is.”? You can make your offer subject to a home inspection.? Although the bank will not do any repairs you will have the right to back out if the home inspection reveals some serious defects. ??The best way to protect you while navigating through the Plano Real Estate market is to retain the services of a professional Plano Realtor.

Investing in mutual funds is a relatively safe way of growing your net worth, but such investments are not entirely free of risks. Before you pick on any particular mutual fund for investment you should watch out for a few things.

Performance

The first thing you should look for is whether the mutual fund you are planning to invest in is outperforming or under-performing with respect to the market. Good and safe mutual funds are those that consistently outperform the market. Changes in the net asset values (NAVs) of such mutual funds are consistently one step ahead of the market. For example, if the index that measures market movements goes up, the NAV of most good and safe mutual funds will also move up at least as much as the market or even more than the market. On the other hand, when the market moves southwards, the NAV of most good and safe mutual funds will move down but such depreciation will be less than or at the most equal to the market’s downward movement. Unsafe or risky mutual funds are those where the opposite occurs – when the market moves up, the NAV of risky or unsafe mutual funds may move up less than the market and may even move down despite a bull run in the market. Such under-performing mutual funds should always be eschewed when taking an investment decision.

Churn and earn

The next thing to watch out for is whether the mutual fund is undergoing too much “churn and earn”. This means you have to check whether too many transactions by the mutual fund are resulting in higher fees or costs to the investor. In this context, the worst offenders are those mutual funds that have a lot of spurious churn. Every time a mutual fund buys or sells stocks, the broker or brokers it employs make a neat pile from the commissions. So, these brokers try to encourage a lot of churn or buying and selling of stocks by giving a kickback to the mutual fund manager. Although direct bribery is illegal, payment of soft money through a sponsored trip to Hawaii or letting the mutual fund manager have a swanky Wall Street office for $1 a month is not. The only loser in all this spurious churn is the investor, especially in cases where the small print says that the investor will have to pay the brokers’ fees as well.

Lack of clarity

Mutual Funds that have prospectus, annual reports or statements of additional information written in such a way that they are difficult to understand should also be avoided. The lack of clarity in their documents is almost a sure sign of lack of honesty in their dealings or a lack of competency in managing funds – both of which are strong reasons for avoiding them for investment purposes.

Risky and unsafe mutual funds are also characterised by having too many restrictions on how and when investors can sell or redeem their mutual fund shares. Mutual funds that have too long lock-in periods or those which slap a hefty exit load at the time of redemption should be eyed with suspicion and are likely to prove to be unsafe and risky.

Beware of scams

Finally, there are mutual funds that are outright scams. There have been reports of fund mangers selling stocks at prices other than what has been reported to the investor. For example, the fund manager may have sold stock at prices that prevailed before closing of the day’s trade although the investor is told that the transaction took place at closing prices which were lower. The manager then pockets the difference and with most such transactions involving large volumes, even a fractional price difference can lead to substantial gains for the manger. Again the only loser in all this is the investor who gets short-changed by the mutual fund operator!