Bitcoin could be manipulated and that’s OK
(Yahoo) The price of a Bitcoin is soaring today, extending a rally that started just one day after rumors of the Mt. Gox collapse emerged on February 24th. Based on the Coindesk.com Bitcoin Price Index (BPI), the pretend currency of choice has risen more than 50% in just the last week.
Buyers and sellers don’t have to label their motivations for making a move in Bitcoin. Priced in dollars Bitcoin had dropped 60% since December and was retesting old lows. Buying the Mt. Gox panic made sense for a trade assuming you could trust your exchange.
There’s also another slightly more murky possibility. Bitcoin could be openly manipulated by investors with a lot to gain and very little to lose.
As so helpfully illustrated by Mt. Gox Bitcoin trading is unregulated and relatively anonymous. Coindesk data shows $8.5 billion worth of Bitcoin in circulation currently and despite the huge pop there have been fewer than 86,000 transactions over the last 24 hours. Logically those trades were between a relatively few number of players as the market is dominated by relatively few “investors.” That’s $60 million worth of coins traded in one day… Read More
Diehard renters just say no to buyings
(Reuters) – With a wife and a 10-year-old daughter, Matthew Amster-Burton appears to be one of the likelier people to buy a house, but the Seattle food writer says he has no interest in doing so.
“It does feel weird sometimes, because it’s supposed to be the grown-up thing to do,” says Amster-Burton, 38. ” … But it’s really not my goal, and it does seem like I’m swimming against the tide sometimes.”
Amster-Burton is part of a population of diehard renters that is growing as the rate of U.S. homeownership drops. There was a net loss of 162,000 owners between 2011 and 2012, according to the 2013 “State of the Nation’s Housing” report from Harvard University’s Joint Center for Housing Studies…Read More
Analysis: High-priced index funds? The worst deal for investors
(Reuters) – When Vanguard founder Jack Bogle created the first index fund in 1974, the idea was to offer investors a cheap way to buy the performance of a broad market. That idea has caught on, especially recently: In 2013, everyone from 401(k) providers to mom and pop embraced index funds, sending almost $2 into them for every $1 they invested in actively managed funds, according to Morningstar.
But a handful of the firms riding that indexing wave actually turn Bogle’s dream upside down: With fees that can run over $2.00 per $100 invested, they are more expensive even than most actively managed funds, and are among the worst deals widely available to fund investors, according to an analysis of data from Lipper. Yet, they continue to attract new investors even as they significantly underperform the booming stock market…Read More
Common Credit Score Myths
Having solid credit is a great financial asset: A good score makes it more possible to buy a home and to negotiate a favorable mortgage agreement. It can also help you obtain a favorable car loan. Or it means that you’ll be viewed as a more acceptable tenant, or even a more desirable employee. And of course, it affects your ability to be approved for any new credit cards.
It helps to be aware of myths, or common misconceptions that surround the area of personal credit:
Many credit card holders mistakenly believe that once they pay off a delinquent debt, the missed payment will immediately be removed from their credit report. The truth is: Only time will clear a damaging mark. It takes up to seven years for a missed payment to disappear from your report, and up to 10 years for a Chapter 7 bankruptcy to be erased….Read More
Twitter IPO Sets Billionaires In Flight
Twitter’s rocketing IPO takes two of its founders on a ride into billionaire territory and a wave of millionaires along for the journey. Shares opened at $45.10 and quickly shot past $50. Read More
Do You Need To Hire A Financial Advisor
Last week, Brightscope CEO Mike Alfred wrote a post on Forbes.com defending financial advisors from emerging online investment firms such as Wealthfront, Betterment and FutureAdvisor. While I respect Mike greatly for BrightScope’s work in lobbying for open government data and transparency, in my opinion his “people-are-always-going-to-want-a-human” argument misses the point.
How to save for retirement
The easiest way to save for retirement is to take the decision out of your hands. If your company has a 401(k) program, enroll in automatic deductions so that money goes from your paycheck to your account without you lifting a finger. If you have an IRA, set up an automatic transfer from your checking account to your IRA – or at least from your checking account to a savings account, and set a reminder to manually transfer from your savings account to your IRA.
In terms of priorities, it’s best to allocate your money in this order:
– Invest in your company’s 401(k) up to the limit of its matching program, if it offers one
– Contribute the maximum ($5,500, or $6,500 if you’re over 50) to your IRA
– Contribute the maximum ($17,500, or $23,000 if you’re over 50) to your company’s 401(k)
100% Financing Program with Mortgage 100®
-Minimize upfront mortgage expenses.
-Keep your overall investment approach on track.
-Increase your potential tax deductions.
Minimize up-front mortgage expenses
-Reduce or even eliminate your down payment.
-Eliminate Private Mortgage Insurance (PMI).
-Choose a “0” points mortgage closing option to reduce your total out-of-pocket mortgage closing costs.
-There are no additional fees or higher rates to use 100% financing.
Keep your investment strategy on track
-Remain fully invested by holding eligible assets in a Merrill Lynch pledge account, and continue to buy, sell or trade in that pledge account within Merrill Lynch Home Loans guidelines.
-Continue to have the opportunity to earn dividends, interest and capital appreciation.
-This means that you can potentially enhance your net worth.
Enjoy potential tax benefits
-Defer any capital gains taxes that might be incurred from liquidating securities for a cash down payment. (Please consult your tax advisor.)
-Potentially increase the amount of your tax deductible mortgage.
Should Pinoys Use Reverse Mortgage Option?
With a reverse mortgage you can turn the value of your home into cash without having to sell the property, move out of it, or repay a loan every month. Before entering into a reverse mortgage agreement educate yourself, consult with trusted advisors and understand the pros and cons. Read More
How to Build Corporate Credit
There are several reasons why you might want to build corporate credit, but the major one is corporate credit allows you to get loans and other forms of funding without having to use your personal credit. When corporation owners use their personal credit to secure funding or equipment, the lines between personal liability and business liability blur. This means that if the business can’t make the payments, the individual must still find a way to pay the debt, or it may negatively affect his or her credit report and score. With this in mind, here are a few ways you can build corporate credit. Read More