Here is a basic checklist to see if it will be to your advantage to invest in bonds.

Yes, if you have at least $100,000 to invest. It takes bonds from at least 10 issuers to create a diversified portfolio. However, to get decent pricing, you’ll need to buy them in blocks of 10 or more. Since bonds are typically issued in $1,000 increments, that means you’ll need at least $100,000 just for the fixed-income portion of your portfolio. Anything less and you’re better off sticking with a fund.
Continue reading Should I invest in bonds?

Budgeting is a critical process which forces you to look at what you’re spending, where you’re spending it, and thus be able to make informed decision on where changes can be made to meet your financial goals. Using software to track your finances and assets, you will get the added benefit of being able to tie it into budget planning. Continue reading Budget Tips

Value added tax (VAT), or goods and services tax (GST) is a consumption tax levied on value added. In contrast to sales tax, VAT is neutral with respect to the number of passages that there are between the producer and the final consumer; where sales tax is levied on total value at each stage, the result is a cascade (downstream taxes levied on upstream taxes). A VAT is an indirect tax, in that the tax is collected from someone who does not bear the entire cost of the tax.
Continue reading Value Added Tax (VAT) – What it means to us

Build America Bonds are part of the federal stimulus plan and provide a 35% rebate on interest costs to issuers or a tax credit to investors, at the issuer’s discretion. What this means is, because of the 35% federal government return, it turns into a lower borrowing rate despite of the fact that it draws a higher taxable financing cost to the issuer.

While a BAB could draw a higher taxable financing cost to the issuer than a tax-exempt bond, the 35% federal government giveback turns it into a lower borrowing rate.

Continue reading What are Build America Bonds (BAB)?

Overcome the Six Obstacles
Knowing how to manage risk is one of the prerequisites of financial literacy. Once you’ve fulfilled all the prerequisites and become fully literate, does financial freedom follow? Not necessarily. Certain personal obstacles can prevent even the most financially literate from developing abundant wealth. Continue reading Six Traits to avoid in order to become a better investor

Build America Bonds are part of the federal stimulus plan and provide a 35% rebate on interest costs to issuers or a tax credit to investors, at the issuer’s discretion. What this means is, because of the 35% federal government return, it turns into a lower borrowing rate despite of the fact that it draws a higher taxable financing cost to the issuer.

While a BAB could draw a higher taxable financing cost to the issuer than a tax-exempt bond, the 35% federal government giveback turns it into a lower borrowing rate.

When issued in large amounts and structured differently than the typical municipal bond, these securities could attract nontraditional muni investors, such as pension funds and foreign governments. BAB bonds are giving investors the opportunity to diversify risk into an asset class which historically is very stable.

Bonds to fund municipal projects normally are sold in the tax-exempt arena. With the advent of the Build America Bonds, or BABs, the $2.7 trillion market for tax-free debt is expected to see less volume in the months ahead. That has boosted this market also, with prices of the highly rated, long-term muni bonds advancing almost 0.3 percentage point.

New Jersey Resources(NJR) is an energy-services company that provides retail and wholesale energy services to customers in New Jersey and other states from the Gulf Coast to New England and Canada.

The numbers: Fiscal second-quarter revenue declined 20% to $938 million as net income and earnings per share surged 183% to $36 million and 83 cents, respectively. The debt-to-equity ratio remained low at 0.63, but a quick ratio of 0.43 indicates a weak cash position. Margins improved significantly, with the operating margin climbing 443 basis points to 6.2% and the net margin jumping 272 basis points to 3.8%.

The stock: New Jersey Resources has fallen 6% in 2009, in line with the performance of the Dow Jones Industrial Average. The stock trades at a price-to-earnings ratio of 13 and offers an attractive 3.4% dividend yield.

1. Better mix of investments. Try to raise that bond stake for safety, and boost foreign-equity exposure for growth.

2. Simplify. Reduce holdings to 10 funds and roll over old 401(k)s from prior jobs into a Roth IRA to make portfolio easier to manage.

3. Invest in index funds. Sell actively managed funds in their taxable account, harvest tax losses, and move to low-cost exchange-traded funds.

If you have a mortgage and you would like to refinance it, here is a list of simple tips to help you go through the refinance process. Continue reading Mortgage Refinance Tips

There are many misconceptions in investing; whether in stocks or bonds or in building an investment portfolio in general. Carl Richards at Behavior Gap has an interesting article in getrichslowly.org

Continue reading Basics in investing