What You Need To Know About Commodities Trading

What You Need To Know About Commodities Trading
If you're looking to get into commodities trading, you
should first understand what it means. Commodities are
products that are bought, sold and usually not processed.
Some examples of commodities are financial investments and
agricultural products. Foreign currencies are also in that
group.

A lot of products that used to trade locally have now
expanded into the global market. Thanks to technology,
more money can be made by the global expansion. Many
countries, including the United States, have become one big
melting pot for global trading.

When commodities first evolved, not a lot of people were
using them. When people found out that it was better to
take a risk on this as opposed to stocks and bonds, more
people jumped on board. Now anyone can get involved in
commodities trading.

When you're involved in a commodity transaction, it is set
up through futures contracts. Futures contracts are
purchased and/or sold on the date specified for the future.
A price is put in place and the transaction is completed
at a later time.

There are also contracts called spot contracts. These are
contracts that are used for transferred commodities. They
get shifted when a contract is created then instead of a
future date. This type of contract can be used for a
future contract after a specific time period. The type of
commodities investing can vary.

When you invest in commodities, you don't have to endure a
lot of risks. That's why people like to invest in them.
When you get an increase in commodities, it can offset any
losses you may have. The risks in commodities are minimal
because you're investing in different things. When you
have contracts for later dates, you don't encounter a lot
of risks.

There is not a problem when you're watching how your
commodities work out. Even when stocks and other stuff
aren't going so good, you can at least count on your
commodities to hang tough. Unlike stocks, you can tell how
well commodities are going to do. You should never compare
stocks and bond with commodities because they are two
different entities. Plus, stocks and bonds are more
volatile because of their uncertainty in the daily market.

If you're not familiar with investing in commodities, you
should find someone who is knowledgeable in it. Commodity
trading advisors can assist you on what to do in the
market. They will also let you know when it's time to get
rid of that commodity.

When choosing an advisor, look at what you what to
accomplish. After you've done that, find someone who would
be able to help you with your goals. You don't necessarily
have to go to a brick and mortar facility. Since people
are so busy these days, it might be better if you contact
them by phone or e-mail first. Then you can set up a time
to meet, if necessary.

You can do other things besides trading in commodities.
You can also make investments using a diverse package of
funds.

With commodities, you are less likely to lose money than
you would if you were strictly investing in stocks and
bonds. That's why it's important to diversify your money
if you're planning on creating a nice financial portfolio.

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For More Information Invest In Commodities
http://www.investcommoditiesonline.com
Gary Giardina

Pre-foreclosures: The Goldmine of the Next Decade

Pre-foreclosures: The Goldmine of the Next Decade
Foreclosure is a process in which a piece of real estate
becomes the property of a lending institution due to the
legal owner's inability to make scheduled payments on the
mortgage or deed of trust.

Typically, the lender files a notice of default after a
homeowner fails to make his or her mortgage payments for
several months. If the loan is not reinstated, the lender
moves to foreclose. As a result, the lender becomes the
new legal owner of the property and has the right to resell
the property and recover any outstanding loan balances in
addition to foreclosure expenses.

The foreclosure process consists of three stages:
pre-foreclosure, which begins the redemption period;
foreclosure, which is when the home is sold at a public
auction; and post-foreclosure, which is when the property
reverts back to the lender if it fails to sell at the
public auction. Although each stage offers bargain-buying
opportunities, the pre-foreclosure stage is considered by
many real estate investors to be the most promising time to
purchase during the foreclosure process.

Investing in pre-foreclosures means you will be acquiring
property any time before the scheduled public auction. As
the investor, you will be buying the property directly from
the owner. The earlier you contact a homeowner in
pre-foreclosure, the more time you will have to make a
connection, structure a deal and purchase the property.

There is a common misconception that real estate investors
purchasing homes from owners facing foreclosure are taking
advantage of the homeowner's misfortune. This is simply not
true. A Notice of Default is filed only when a borrower
(property owner) has broken the terms agreed upon with
lender at the inception of the loan in default. This breech
gives the lender every right to protect its financial
interests. Therefore, an experienced real estate investor
becomes the problem solver by finding a win-win solution
that will help the homeowner get out of default.

Property owners facing foreclosure are typically scared or
in denial. Many of them hope some miracle will happen that
will make their ordeal simply go away. Doing nothing will
certainly ensure a homeowner's foreclosure, loss of home,
loss of equity and credit rating damage for an entire
decade.

When dealing with an owner in pre-foreclosure, talk to them
as soon as possible. It is vital to explain the following
three benefits of avoiding foreclosure:

1. Protects their credit

By working with an investor, homeowners may be able to
avoid foreclosure and begin rebuilding credit. Even if a
homeowner endures the process of losing his or her home,
the repercussions of a foreclosure on a credit report are
far reaching. A poor credit rating affects everything from
buying a car to renting a home. With certain businesses,
credit is even a factor in employment. Investors often help
homeowners protect credit.

2. Make a profit

While it is true that real estate investors purchase at a
discount, a homeowner facing default may still be able to
recover some of their equity and walk away with profit.

3. Get a fresh start

Stopping the foreclosure allows homeowners to breathe a
sigh of relief. As the pain and pressure of the foreclosure
lifts, they find it easier to move on and begin rebuilding
their life.

Buying in the pre-foreclosure stage can be the most
lucrative slice of a real estate investor's business. Once
rapport and trust have been established, a professional
real estate investor can determine whether the sale of a
property would truly benefit everybody involved.

There are various ways to profit while helping people find
viable solutions for their defaults. The following three
are most common:

1. Purchase at a discount

Real estate investors are not likely to make a profit by
purchasing at full market value. As an investor, it is
essential to inform potential sellers that you earn your
living from your profits. Therefore, you must buy for less
than retail price while taking into account acquisition,
sales and holding costs and any necessary repairs. A
discount of twenty to thirty percent of full market value
is common practice among real estate investors.

2. Buy property "subject to" the existing loan

There are widely spread rumors that it is illegal to
purchase property that involves taking over an existing
mortgage. This is completely false. While assumable loans
are practically extinct, it is perfectly legal to purchase
property subject to an existing loan. It is important to be
aware of the "due on sale" clause stating the existing
lender can call the loan due upon the transfer of title. In
other words, the lender has the right to demand full
payment of the outstanding loan balance at the time of
transfer. In practice, lenders would rather receive their
monthly payments than call the loan. Purchasing property
subject to the existing financing means a smaller
out-of-pocket investment for the real estate investor.

3. Create instant equity utilizing a Short Sale

Structuring a Short Sale can prove profitable when dealing
with a homeowner facing foreclosure whose property is
equity deficient. In this market, troubled lenders would
rather discount their mortgages than increase their already
mounting inventory of foreclosed properties. The type of
discount you create will largely depend on the quality of
your Short Sale package combined with the quality of your
negotiating skills.

Real estate investors prevent a large number of
foreclosures every year across the country. There are many
ways for investors to make a profit while helping people
move on with their lives.

Undoubtedly, the money is there to be made.
Pre-foreclosures are a fabulous way to make it.

----------------------------------------------------
Brenda Coté is a Real Estate Investor, Real Estate
and Mortgage Broker, Mentor, and Wealth Coach. At
Transforming Lives, Creating Wealth, Brenda employs a
"whole person" approach to support female Real Estate
Investors succeed in business and life. To download
Brenda's FREE audio workshop, "The Seven Elements of a
Wealth-Creation Mindset" please go to:
http://www.TransformingLivesCreatingWealth.com

Military Money Tips to Retire Young

Military Money Tips to Retire Young
Many in the military are aware that they need to start
saving for their future; however many people serving our
Country have no idea where to start or how much they will
need. With uncertain economic times it is now more
important than ever you start investing young

Retirement is long way military personnel under the age of
30; however this is a critical time to start your financial
plan in order to retire young. And the sooner young
members in the military invest the easier it will be for
them to retire young. The simple lessons below will have
you on the road financial security and, equally important,
will allow you to fully enjoy life now. You can become
financially secure in the military while you're young with
some simple steps. The tips below will put you on the path
to an early military retirement.

1) Invest - Get that military paycheck working for you
immediately. The sooner you begin to invest the sooner you
can plan to retire young. By investing young you are able
to harness the power of compounding interest which is a
great ally in achieving your objective of an early
retirement.

'Compounding interest' is earning money from the profits of
your investments. So you're making money off money you did
not have to work for. This offers young military members a
tremendous advantage. In fact, investing as little as $100
per month starting at age 18 could make you a young
millionaire well before you reach retirement age. Plus it
will give you the ability to do the things you like to do
while keeping on track to retire young.

2) Consistent investment plan - Investing on a consistent
basis will allow you to generate long-term gains over time.
For most in the military this consist investing over time
may allow you to retire young. Start to follow a
consistent investment plan now; then as your investment
knowledge grows you can add other forms of high-return
investments.

An ideal investment for young military personnel ready to
retire young is low-cost broad market index investments.
Warren Buffet states, "A very low-cost index is going to
beat a majority of the amateur-managed money or
professionally-managed money." This is one of the easiest
investments you can make. An added bonus is that it takes
only minimal knowledge and about 60 minutes to start
getting your money working for you.

3) Diversification - Diversification lowers risk. If you
have all your money invested in the stock market, and the
market crashes, you could potentially lose a lot of money.
Now if you had a portion of your money invested in stocks,
some in real estate, some in businesses and some in other
alternative investments - if any one of the markets
corrects itself, you wouldn't get hit as hard since you're
diversified.

4) Tax benefit vehicles - By using investment vehicles that
give you tax benefits you'll be on the road to retire
young. A Roth IRA or other form of retirement account can
be a key investment vehicle that will allow you to reduce
taxes. Many people don't realize about 40% of your income
goes to pay taxes. So by choosing an investment vehicle
like an IRA may help to keep more money in your pocket.

To retire young from the military, start to follow a
simple, consistent investment plan at a young age. Being
diversified and using investment vehicles that provide tax
benefits will help to supercharge your returns. Get
started now because you'll be able to afford the things you
want now and in the future.

----------------------------------------------------
Give yourself the freedom that you deserve by learning the
simple military money lessons that will help you afford
what you want now and allow you to retire young. Visit
Vince Shorb's, 'Financially Free By 30' site now at
http://www.FreeBy30.com for free video lessons.

The Federal Reserve and mortgage rates, not what you think!

The Federal Reserve and mortgage rates, not what you think!
Over the last month you have seen the news about the
Federal reserve cutting the interest rates. Every time this
happens I get hundreds of calls, from old clients of mine,
wondering what the rates are at? What they don't understand
is that the news media is getting this completely wrong.
Many people and news experts have a misunderstanding about
the change in the federal funds rate and how it affects
mortgage rates. Not understanding this can cost you a lot
of money on a 30 year mortgage. You need to have an
understanding that the Federal Reserve does not determine
mortgage rates.

Let me explain how mortgage rates are determined.
Basically, when you take out a mortgage, the bank or
mortgage company is making you a loan at a given interest
rate. Sometimes the firm that makes the loan holds onto it,
like a local bank. But more often than not, the lender or
mortgage company sells that loan to an institution that
packages it with other mortgages into what's known as a
mortgage-backed security and then sells that security to
investors. That investor, whether it's a mutual fund or a
large institutional investor, earns a return by collecting
the principal and interest payments that you and all the
other mortgage borrowers make. To get those investors to
buy the mortgage-backed securities, they must pay a
competitive interest rate compared to investments like a
treasury bond. The average loan lasts for about ten years
so an investor compares the mortgage-backed security to a
10-year Treasury note. Of course we are not as good a risk
as the government so rates on mortgages are going to run
about 1.7% higher than the 10-year treasuries. Now this
investment is competitive in the market and people will
invest in it.

The next factor that can really affect rates is inflation.
Lets say you are going to invest into one of these
securities and planned to hold onto it for ten years.
Inflation in the next ten years could dilute the actual
value of payments received from these securities. As a
general example you are at 6% on your security but
inflation is growing at 3%, your "real" interest rate
return is only 3%. Therefore if inflation is expected to go
up so will interest rates. The other side of the coin is if
inflation is expected to go down then rates should follow
suite.

These are the two main factors in determining mortgage
rates but other factors are involved. Too many factors to
be explained in such a small article. The bottom line
people want to know when are rates going to drop so I can
refinance? "Unfortunately, there's no tool for predicting
the future path of rates. Doing so would require that you
be able to take into account the myriad factors that
determine rates -- the health of the economy, the outlook
for inflation, the flow of investors' money between stocks,
bonds, mortgage-backed securities and other investments --
and translate all those factors into an accurate prediction
for rates." said expert Walter Updegrave, Money Magazine. I
agree, the only thing you can do is stay on top of your
broker or bank and lock that rate when you feel comfortable
with it. Always get the rate lock in writing in case of a
discrepancy.

----------------------------------------------------
David Forer is a financial veteran of 15 years. To tap into
his knowledge about credit repair, debt management, and
budgeting go to his blog at
http://www.creditrepairdoneeasy.com or
http://www.squidoo.com/milwaukeemortgage to receive a free
ten page report.

Reverse Averse! Red Flags on Reverse Mortgages

Reverse Averse! Red Flags on Reverse Mortgages
A reverse mortgage is a loan that converts home equity into
tax-free cash for home owners 62 years of age and older.
Much has been touted in the media and by lenders about the
benefits of reverse mortgages, now here are some of the red
flags. Discuss these points with family members and any
lender you consider working with. Recognize the red flags
and avoid common reverse mortgage problems.

Red Flag #1. Complicated paperwork may have unforeseen
consequences. If you don't understand the document, you
won't understand the consequences. Take the time to get
proper guidance, second opinions, and a review of
appropriate alternatives.

Red Flag #2. High cost of a reverse mortgage may outweigh
the benefits of alternatives. As in any loan, there are
going to be associated fees and costs. These should be
clearly spelled out up front. Utilize your accountant,
lawyer, trusted financial advisor to review any loan
application before signing it.

Red Flag #3. Uncertain benefits. The strange thing about
reverse mortgages is that you cannot calculate the true
cost of this loan because it depends on how long you are
going to live. But, if you want to pass anything to your
heirs, it's worth considering the alternatives. There is no
way to predict the home appreciation and future interest
rates so consider the reverse mortgage carefully. Yes,
payments come to you tax free but the debt on that asset is
going up. This may be fine as long as you live and as long
as you live there. Again, just know your options.

Red Flag #4. Tight-lipped lenders. Lenders who don't fully
disclose fees and terms are a big problem. As we've just
seen in the sub-prime lending mess, many consumers didn't
understand what they were getting into. Some sleaze-ball
lenders have gone so far as to work themselves into the
deal to gain a large percentage of the property's
appreciation. Ask your lender if they are attempting to
gain any percentage of the appreciation as part of their
profit.

Red Flag #5. Forcing borrowers to buy additional financial
products such as variable annuities. In this case,
consumers can lose their principle and the earning
potential of that money. If there is a reason to combine
products, double check and then double check the terms.

Red Flag #6. Numerous front end and back-end fees can be
exorbitant. Artificially inflated fees raise the cost to
the borrower and deflate consumer benefits fast. Of course
the definition of exorbitant is up for debate but that is a
reason to educate yourself, get multiple loan proposals,
and obtain professional and objective advice before signing
any loan document.

Red Flag #7. Reverse mortgage counselors imply that they
are there to protect the interest of the seniors applying
for the loan. This may be legitimate but if they present
themselves as a counselor yet, have an affiliation with the
lender; there is an inherent conflict of interest.
Unfortunately the government still allows this practice.
Your tax advisor doesn't work for the IRS does he? Well
then your reverse mortgage counselor should not work for
the lender he is trying to protect you from.

Red Flag #8. Borrowers should not pay a referral fee for an
agent just for the privilege of introducing you to a
lender. That fee has been as much as 10% of the loan amount
in some cases. Don't pay referral fees or finder's fees for
reverse mortgages just find a new agent or broker.

Red Flag #9. You don't know your lender. Laws and recourse
vary from state to state. It's a good idea to know your
lender. Get referrals from family and friends and ask for
references from the agent you are talking with.

Red Flag #10. HUD might be a DUD. You cannot assume that
because Uncle Sam is guaranteeing some aspect of a reverse
mortgage that it is safe or good for your situation. HUD
does provide some helpful and free info on its website but
it is very limited. When the agent tells you this loan is
backed by the U.S. Government, don't be overly impressed.

Red Flag #11. Information is withheld. When Total Annual
Loan Costs (TALC) rates are not disclosed, be careful. When
information is withheld and real costs and fees are not
fully explained up front, there's trouble on the horizon.

Red Flag #12. When a borrower's decision-making capacity is
in question- everyone involved should slow down, double
check, and get additional assistance. Ethical lenders or
agents will offer resources to seniors who clearly don't
understand the consequences of reverse mortgages. Families
should work together to keep tabs on senior family member's
financial needs and lend a helping hand and a second set of
eyeballs to major financial decisions such as reverse
mortgages.

Red Flag #13. Alternatives to reverse mortgages are not
known. There are several safe and secure alternatives that
should be considered.

The bottom line to reverse mortgages is this. There are
reverse mortgage alternatives beyond lines of credit or
selling your home. Get the facts, recognize the red flags
and take the time to do your homework.

Elder abuse is a major concern for financial products with
seniors and the best way to fight it is to punish unethical
lenders and teach consumers the facts and the alternatives.
Families need to keep closer tabs on senior members and do
the homework when it comes to reverse mortgages.

----------------------------------------------------
A safe alternative to reverse mortgages is the Prentiss
Group's U. R. the Bank program at
http://www.GuaranteeMyMoney.com . It can provide fixed
rates of return of 7, 8, 9 % interest or more by utilizing
home equity to provide monthly income. Call 888-777-3805
for more info. Steve Dahl is a freelance writer in
Carlsbad, California. He can be reached through the website.