RP Wang Investment

Two financial terms that are often times confused with one another are residual income investments and passive income investments. The different between these two terms is fairly easy to explain. First passive income is generated without any effort, or very little effort, from the investor. On the other hand, residual income is generated from the efforts initially invested by the investor.

Real estate investing can produce both residual income and passive income. If you want to make residual income investments in real estate then you can buy a property and then sell it with owner financing. This means that instead of making the buyer get financing through a bank you will agree to carry the contract and they will then submit to you monthly principal and interest payments. These payments are considered residual income. On the other hand, if you want to generate passive income from real estate investments then you can invest in trust deeds. Trust deeds are basically private mortgage loans. This investment activity is passive because you don’t have to actively participate in the management of the account to make money.

If you are interested in a business opportunity to make residual income then you can look at entering into a sales company that offers residual income on the sales made by the people that you sign up under you. For example many door-to-door sales companies pay their sales team a commission on what they make as well as a smaller commission on the amount of sales generated by all of the people who were signed up by the salesperson. Passive income can also be generated from business opportunities. However, for tax purposes the passive income cannot be derived from the active participation in a business, nor can it be derived from interest, capital gains, or dividends.

By: Sarah Freeland

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Whether you are shopping for a new credit card or wondering about the one that you may already have, knowing how to calculate the finance charge applied to that card is important. First, however, it is equally important to know what finance charges really are.

A credit card finance charge is the amount of money that you pay to the credit card company in order to use their credit. This is not the same as the purchase amount balance. The purchase amount balance is the dollar amount of the purchases that you made using the card. If you pay off the purchase amount balance within the stated amount of time that the company allows, you will have no finance charges applied to the amount. It is when you carry over your balance that finance charges are triggered and added to your account.

Finance charges are calculated using the amount of your outstanding balance and APR. The APR is the Annual Percentage Rate and all credit cards use them to figure finance charges. It is important for consumers to understand that the ARP can vary from one company to the next, and it can even vary within the same company. It is for this reason that consumers should always look for the companies with the lowest APR’s. This will save you money in the long run.

There are several ways that credit card companies can calculate the finance charges that they apply to consumer credit. Many people do not realize it but the method that is used can make a difference in the amount of money that you will have to pay. Here are some of the methods that credit card companies use to figure finance charges on your outstanding balance:

They can calculate using one billing cycle or two billing cycles.

They can use the adjusted balance, previous balance, or the average daily balance.

They can exclude or include new purchases in the balance.

You will normally find that you have a lower finance charge when the company uses what is known as one-cycle billing and uses the average daily balance method which excludes new purchases. Much of this, however, depends on the balance and the time of the month that you make purchases and payments.

The next lower finance charge method is the adjusted balance, followed by the previous balance method. You can see which method the company is using by reading the bill that you receive. This information is usually contained on the back side.

It is also important that you understand that some companies will have a minimum finance charge system. When a credit card company uses this system you will be charged that set amount even if your calculated finance charge is less than that amount.

Of particular importance to some credit card holders are the cash advance programs that come with some cards. Consumers should be very careful when using credit cards for cash advances. Many companies that offer cash advances treat those advances differently than they do purchases. Before you use your credit card for a cash advance, make sure you look for the details of how you will be charged for that advance.

You will certainly want to know what the APR is for cash advances. Keep in mind that this may be significantly higher than the APR that is used for purchases. You should also investigate the fees that may be applied to the transaction. Fees are in addition to the finance charge that you will have to pay.

Lastly, find out how your payments will be credited. Some companies will apply your payments to your purchases first and then to any advances in cash that you have taken.

Use your credit card wisely and keep track of your finance charges and you will enjoy your credit more fully and avoid some of the pitfalls that many consumers experience.

By: Peter Kenny

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For many people, taking the plunge into investing can be a daunting experience. They may have little investment knowledge or limited funds. Joining or starting an investment club is a great way to learn about investing in stock or real estate. Investment clubs enable members to pool their money for joint investment so you don’t need to have massive capital to start investing.

Finding an online investment club

There are many online investment clubs available. To start with, choose an investment club that fits your investing style and interests. Do you want to invest in stock or real estate? If you are a male (or female), do you prefer to join an all-men (or all-women) or mixed investment club?

Finding a good fit is important for an online investment club. Keep in mind what your main objective is for joining a club. If you are new to investing and need support and knowledge, be sure to choose a club that offers lots of hand-holding for its members.

Another important feature of an online investment club is the forum or discussion board. It allows members to communicate with each other since they don’t meet face to face. They can ask and answer questions. Newbies can learn a lot from others who are more knowledgeable and experienced. People from all over the world can join an online investment club. Distance is not a problem as the internet has made it possible for them to stay connected.

Choose a long established online investment club that is in line with your approach to investing. You should contact the club directly if you have any questions. Enquire about its past and current investment performance.

Finding an offline (or local) investment club

For people who have time to socialize, they may prefer to join a local investment club. These clubs are similar to online clubs except that members meet locally, typically once a month, to discuss and evaluate what stocks to invest.

The meetings incorporate educational talks on various investing subjects. You have the opportunity to hear investment experts speak and share their experience – not from someone with textbook knowledge only.

Local investment clubs are often advertised in the local newspaper classified ads. You may also find them through postings on bulletin boards. Your local bank may also have information about investment clubs. Another good way to find a local investment club is through word of mouth. Ask your co-workers or friends. Chances are they may know someone who is a member of an investment club and can make a recommendation to you.

By: Alvin Toh

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Wondering how to invest in shares and stocks? Jim Cramer’s Mad Money picks can be a good way to begin.

This article will focus on what Jim Cramer has to say about stocks and shares. But before moving on, let me tell you who Jim Cramer is and what he does.

James J. Cramer had been a former hedge fund manager. He started as a stockbroker but later his success in the field led him to fund his own hedge fund (Cramer & Co.) in 1987. Presently he is the host of a show called ‘Mad Money with Jim Cramer’ on CNBC, which features Cramer’s rapid-fire opinion on stocks.

Cramer’s picks are usually very effective and are followed by many people. But before going by his advice, it is recommended that you do your research on how effectual his picks are. Remember, although Cramer’s picks are generically meant for long-term opportunities, they may get over sold in short-term as many of his viewers decide to purchase stocks at the same time. These are the times when buying stocks can be a very bad option. Even though Cramer may be right on a long-term basis, following his picks may prove to be disastrous if considered for a short term.

Did you know that Jim Cramer doesn’t buy or sell a stock within 5 days after he has mentioned it on his show? He believes, for long-term investments these 5 days are very important to study the market. In this period of time he gets a near clear picture of the market behavior and how well it performs after mentioning it on the show. Say for example, if Cramer’s stocks go up dramatically after he mentions it on the show, every time it tends to fall back, new buyers come and get the stock back up. Even though Cramer’s stocks are for long-term profits but under such situations, they are just as profitable if not more in short term.

However, If Cramer’s stocks go up and fall right back with few or no new buyers, it simply means that the stock is not yet ready to be in the market. Under such a situation, anyone who buys the stocks will soon sell them at low and non-profitable prices. When all this fuss ends up in a chaos, you know it’s time to bank on your long-term stock investment/ purchase.

In order to earn profits in stocks it is always advisable to act tactfully. Remember it’s your money we are talking about, so never think twice to take your time to analyze the performance of stocks before you put in your money.

Stocks discussed at the in-depth sessions of Jim Cramer’s ‘Mad Money’ television program are no doubt very helpful but relying on them blindly is not a wise thing to do. Cramer’s stocks are likely to earn you profits but a little balance between Cramer’s picks and your common sense will take you a long way in choosing the winning plan for yourself.

By: Gilbert Stockton

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The role of the regulatory bodies in the UK Financial dealings is very important. We cannot neglect their role in UK Finance. There are many regulatory bodies for UK Finance and Auditing. Some of them are mentioned here.

A non-governmental independent organization called the Financial Services Authority (FSA) is available in the UK. This UK Finance company is funded by the financial services industry. The policies, plans, and rules of the UK Finance company are transparent and open. It is funded by the companies that it regulates. The website of this organization has information for consumers on their rights and regulation. It also gives information on the financial products available. The financial services industry in the UK is regulated by FSA. They have enforcement powers and investigative powers. They have the power to regulate deposit taking, Insurance investments, and Mortgage lending and general insurance advice.

Financial Ombudsman Service is another organization the helps the customers to solve any UK Finance disputes with the financial firms in UK. Complaints about Banking services, credits cards, endowment policies, health and private medical insurance, mortgages, motor insurance, and National Savings & Investments can be done with the assistance of Financial Ombudsman Service. They also help you on complaints about savings plan and accounts, stocks and shares, and travel insurance. For more details on the types of coverage that is done by them you can visit their website. Before you approach them for resolving the issues it is better you complaint to the concerned organization first. If the problem is not solved by the organization then you can approach the Financial Ombudsman Service for assistance.

The public trust office is another regulatory body related to UK Finance that helps people to control their money and property. The audit commission is another independent regulatory body that is responsible for monitoring whether the public money is spent economically and efficiently. Effective spending is monitored in government services, housing and health services. Fire and rescue services and criminal justice services are also monitored for spending of the UK Finance. The audit commission works closely with the Deputy Prime Minister’s office, Department of Health and the National Assembly for Wales. They aim is to achieve excellence in their work. They support local democracy and public accountability. You can reach this office in Millbank tower, Millbank, London. Visit their website for the latest news and events.

Bona Vacantia is an organization that is responsible for administering the estates of person who die without any heirs. The assets of companies and trusts that have failed are also collected by the Bona Vacantia. They also provide assistance to companies and estates. This division does these works with cost effective casework. This work is done within the legislative and legal constraints. They work in business like manner. The dealing is mostly open and informative all through the case.

The National Audit Office is another regulatory body that monitors the public spending on behalf of the Parliament. This office is lead by the Comptroller and Auditor General. The taxpayer is saved by their work.

By: Jeff Lakie

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