The rope is too short

There is a story of a man sold loops of rope in the marketplace. He would tie two ends of rope together and sell them. Unfortunately he wanted to increase profits so he cut all of his ropes in half. So he had twice as many ropes! But instead of making he lost money because he couldn’t make ends meet. That’s a funny story, but it’s surprising to hear how many people can’t make ends meet anymore. Inflation is on the rise, so the cost of living is going up. Wages seem to be frozen in time and the available money to put away for the future is quickly disappearing since expenses are on the rise. Since our income is no longer keeping up with our expenses, what options do we have? It’s a difficult choice to make, and many people are avoiding a credit card to help them budget, but it’s becoming harder and harder to avoid! We live in a world that expects us to use credit cards and as the Internet gives us many purchasing opportunities, we often only have the credit card as an option! But when credit card bills begin to mount, what choices do you have to help you take care of those bills? After all, credit card interest rate is one of the highest around! People find that they can pay half again as much as their original purchase simply in interest if they do not pay it off right away. When considered as part of your overall financial portfolio, a UK credit card consolidation loan is an excellent option. This is because it pulls together your payments and lowers your interest rate to a rate that is easier to swallow! And, instead of getting a half dozen credit card bills through the month, you’ll be able to get one bill with a fixed amount owing, and that will really help you budget accurately. So now the next step is: what kind of loan to get? There are two kinds of loans: Secured and unsecured loans. Secured loans let you use assets you have as a guarantee against the loan while unsecured loans simply use your credit rating to help you. Secured loans may be the better choice because they allow you to get more money at a better interest rate and for a longer period of time because you are providing a guarantee to the lending institution that if you are unable to make the payments, there is another form of payment they can get through the seizure of your assets. So if you find that credit card bills have gotten out of hand, you should consider getting a UK credit card consolidation loan. Your payments will be lower, your interest will be lower, and the fixed amount each month will help you budget accordingly.

Backgammon rules learn how to play backgammon

: The board game backgammon is one of the most ancient games known to man. It is believed that early variations of the game were played in Ancient Egypt, Mesopotamia and Ancient Rome. Since then, the game has evolved, changed several names and spread to different parts of the world. It is currently a popular pastime all over the US, East Asia, Europe, and the Middle East. In order to play backgammon all you need is a partner, two dice and a special backgammon board with checkers. The backgammon board is divided into two sides with each one is the mirror reflection of the other. Each side contains 12 triangles called points numbered from 1 to 24. Points 1 to 6: Home Board or Inner Board
Points 7 to 12: Outer Board 7 point: Bar Point 13 point: Mid Point At the starting position of the game, each player has 2 checkers on the 24 point, 3 checkers on the 8 point and 5 on the 13 and 6 point. Each player moves from his home board through the outer board towards the opponent home board. The object of backgammon, then, is to move your checkers towards your opponent home board and remove them off the board before your opponent moves his checkers towards your home board. The speed of the progress of each move is determined by the outcome of the dice roll. The backgammon play begins with both players tossing one die. The player whose outcome is the highest, makes the first move using both his and his opponents number. If the outcome of the dice toss is even, the players toss the dice again until an uneven outcome appears. From now on, each player tosses both dice on his turn. After each toss of dice, you should move your checkers forward the number of steps appears on both dice. You can move either one checker the number of steps summed up by both die or move two checkers. To make it clearer: if the outcome of the dice roll is 5 and 4, you can either move one checker 9 steps forward or move one checker 5 steps forward and then move the other piece 4 steps forward If the dice rolls a double, which means an even number on both dice, you can move double the number appears on the dice. For example, if you roll double 2, you can move 2 points four times. In that case, you can either move one checker 8 steps forward; move two checkers a total of 4 steps; move two checkers a total of 2 steps each plus a total of 4 steps; move one checker a total of 6 steps plus 2 steps; or move four checkers 2 steps. You can move a checker to a point where there is another one of your checkers or no more than one checker of your opponent, called blot. When you hit a blot, it is moved to the middle of the board to the part divided between the home board and the outer boards, called the bar. The checkers placed on the bar are kept out of play until the bar can be entered by a dice roll in the opponent’s home boards. For example, if you roll 2, you can enter a checker to the 23 point and enter the opponents home board and re enter the bar checkers into the game. You cannot move the other checkers unless your entire bar checkers are at your opponents home board. By the time your checkers are in your home board, you must remove the checkers from the board, to bear off, using a roll of dice. For example, if you roll 1, you can bear off one checker from the 1 point; if you roll 2, you can move a checker form the 2 point, and so on. If your opponent has not borne off any checkers while you have borne off 15 checkers, you win the gammon. If your opponent has not borne off any checkers and still some of his checkers are placed on the bar, while you have borne off 15 checkers, then you win the backgammon.

Getting cash now for your structured settlement

If you’ve agreed to accept a structured settlement, it’s likely that you felt a sense of relief that your financial uncertainties were being resolved, and that you’d have the funds necessary to pay your bills, support your family and go on with your life. When you agreed to the terms of the settlement, hopefully with the help of a financial advisor, you accepted a series of financial payments that made sense for you at that time. Perhaps you’d suffered personal injury in an auto or other accident, you were awarded damages in a product liability case, or you were the victim of medical malpractice or were even the plaintiff in a wrongful death suit. You agreed to a periodic (usually monthly) payment, maybe in the form of a lifetime income stream, that seemed to be the answer to paying your ongoing living expenses and perhaps your medical costs. You made the best decisions you could at the time, with the information you had – based upon how life was then, and what you expected for the future. But life seldom works out as we expect. Maybe you’re on the road to recovery from the accident or other event for which you received the settlement, and want to move and buy a house, get married, go to school, or buy a business. Maybe medical bills or high interest debt is an undue burden on you that you need to resolve now. Or, if your family has grown, and your children no longer need for you to provide for their education or other expenses, you may want to spend more of the money you have coming to you now, instead of later. What can you do to match your finances – specifically your structured settlement – with the life you now have or want to have? You should always consult an attorney or a financial advisor, but here’s a basic overview of your rights and options in assigning your structured settlement: Settlements are funded by single premium annuities, issued by insurance companies. Instead of paying you a lump sum amount, the party found responsible for injury or damages to you has paid a one-time lump sum to an insurance company, which has, in turn, invested it. The insurance company has projected the interest rate or securities dividends they will receive on the lump sum, and based upon the length of time and number of payments you chose or were offered for the structured settlement, they calculated the periodic payment amount you’re now receiving. So who owns what? The insurance company owns the annuity, and you, as the beneficiary, are entitled to an income stream, or the series of periodic payments. Because you don’t own the underlying asset, the annuity, you therefore can’t sell the annuity contract to another party to receive your money. However, under federal and state law you can, with court approval, sell all or a portion of the payments you are entitled to receive in the future. In doing so, you can receive a lump sum cash payout now. What are your options? As an annuitant, or the beneficiary of the structured settlement annuity, you are, in most instances, able to assign to a third party the payments you are entitled to receive in the future. Some Structured Settlement Agreements state that payments cannot be assigned, and your legal counsel will advise you of options and alternatives if yours is written with such a clause. Fortunately, state laws and recent case law have rendered contracts written with such provisions unenforceable, although other regulations may apply. How can you determine today’s lump sum value of your structured settlement payments? This depends, in part, upon the amount of each payment and when it is due. The payment amount and schedule will be outlined in your Structured Settlement Agreement. It is also affected by the financial strength of the issuer of your annuity, because the better the financial position of the issuer, the more likely it is that the purchaser of your cash stream will be paid. The current financial climate, as well as interest rates will also affect your cash-out amount. Your financing company will explain these calculations and assumptions to you. What steps do you need to take? - First, you really need to take a hard look at whether receiving your funds now will truly be best for you and your family. This is a big financial step, not to be taken lightly. That said, your circumstances may have changed sufficiently so that a lump sum or partial payment in the form of a lump sum makes sense, and is better for your family’s current and future lifestyle and financial stability. - Next, contact a reliable financing company that purchases structured settlement income streams. They can guide you through the process and help you consider alternatives, such as the sale of a portion of your structured settlement income stream, if this best meets your needs. - The financing company will assist you by hiring an attorney experienced in structured settlement assignments. The attorney will explain to the court your desire to change your settlement, and any changes in your life that have caused you to make this decision. Because the attorney will be petitioning for judicial approval, he will need to understand your current finances, obligations and desires. - Having all your documentation and agreements, and furnishing them promptly to your advisors and potential funding sources is key to receiving a cash payout in the shortest possible time. Because court approval is required, the time from the initiation of the request to the final approval is typically 45-90 days. So, just as with other large financial decisions, such as obtaining a mortgage or refinancing, it’s in your best interest to begin the process with a little time to spare, before you feel a time crunch. You deserve an equitable deal, as quickly as is possible, not just the deal you can make in the very least amount of time. - What can you expect now? Once you have chosen a finance company and attorney, the courts will put you on the docket and hear your petition for receiving your funds in a lump sum. They’ll want details of the future payments due you, the proposed amount of the lump sum distribution, and any costs you will incur as a result of restructuring your settlement. Their basis for granting you an approval is satisfying themselves that the assignment of your payments to another party and receipt of current cash will be in your best interest and in the best interests of any dependents you may have. - Once you’ve agreed upon a lump sum amount with your finance company, and obtained court approval, you’ll receive a wire transfer or a cashier’s check for your lump sum amount. You’ll now have the cash you need – right when you need it most.

How to avoid ruining retirement

Copyright 2006 Emma Snow Wealth seems to be everyone's dream; the ability to relax a little more, to not stress so much about finances and to enjoy the "good life." So often it is believed that wealth is only attainable by those with large incomes. Those with smaller incomes may not put anything aside, assuming such small savings won't make enough of a difference in the long run. In my experience in the financial services industry, there were several times when I would help an elementary school teacher or janitor with their sizeable 403(b) account. Obviously for them, small savings over time made a big difference. In the same category are those who have large incomes and assume they always will. They constantly spend to the top of their income level and set little or nothing aside for the future. Yes, I also remember helping doctors or attorneys take loans out of their 401(k) accounts. I found that it wasn't so much what you made but everyday decisions that determined long-term success. When I once asked a janitor of an elementary school how he had accumulated his 1.7 million dollar 403(b) he said, "I just started putting money into it when I first came to work here, a little bit each paycheck." Now, 40 years later as he approached retirement with a steady pension and a large 403(b) account he was financially wealthy. Avoiding financial mistakes is the key for anyone to retire well. This article lists some of those mistakes and ways to steer clear of them. Waiting Until You're 55 Not starting to save soon enough is number one on our list. Beginning early to save for retirement can make a huge difference in the long run. To illustrate this, let's assume we have two people saving for retirement, we'll give them simple names that correspond with the age they started saving, Mr. 25 and Mr. 45. Mr. 25 puts $3,000 into an IRA each year until he retires at age 65. Assuming he gets an 8% growth rate on average, he amasses $839,343 or almost a million dollars by age 65. If Mr. 45 were to put the same amount aside but start at age 45 instead of 25, he would only have $148,269 saved, definitely not enough to start retirement with. For Mr. 45 to end up with the same amount as Mr. 25 he would have to save almost $17,000 per year until age 65. $17,000 per year for 20 years equals $340,000 cash out of pocket, whereas $3,000 per year for 40 years is only $120,000. Mr. 25 only had to save about one third the amount Mr. 45 did all because he started early. Letting compounding do the work for you allows you more money for other things you want. 1% Is Enough, Right? Putting aside too small a percentage of income is another mistake people make. It may be difficult when just starting out and times are lean, but you will thank yourself in the long run if you make this a priority. Going back to Mr. 25 again from above, if he would have only put away $1,000 each year, his ending balance would have only been $279,781 in 40 years, again assuming the 8% growth rate. We know how much $3,000 per year would have saved him, but what about $6,000 per year? He would have $1,678,686. Doubling his savings doubles his end result. I'm a Millionaire! Not realizing just how much needs to be saved in order to retire is our next mistake. While the 1.6 million in the above example may seem like a lot of money, it won't pay the bills in 40 years. Assuming prices go up by 3% each year, 1.6 million will only have the buying power of a half a million dollars in 40 years when Mr. 25 wants to retire. Assuming Mr. 25 lives to the ripe old age of 90, a 1.6 million dollar account will give him about $2,300 dollars of income each month in real terms. This assumes that he earns 6% on his money after he retires. Does it seem odd that our 1.6 million dollars is now only worth $2,300 dollars per month? Inflation is the culprit. In actuality Mr. 25 will be getting about $9,800 dollars out of his account each month in retirement, but because prices for everything will be so much higher in 40 years it will only be able to buy the same amount that $2,300 dollars buys today. This is what "real terms" means. Mr. 25 will have to determine if $2,300 per month will be enough to live off of in retirement. Most likely it will not be enough unless he really likes ramen noodles. Do I Get a Checkbook with my 401(k)? Using Retirement Accounts as income before retirement is becoming a mistake that more and more people are making. This is especially true for those who have employers contribute to their retirement accounts. While it is tempting to assume this is just extra money you can spend, it has terrible long-term effects. Taking as little as $5,000 out of your retirement account at age 30, is like taking out $35,000 in 35 years. If it would have been allowed to stay in the account and grow over 35 years, it would have accumulated to almost $35,000. The other problem is that you will most likely have to pay taxes and a 10% penalty on the money because it is being taken out before age 59 1/2. Now to get $5,000 after the taxes and penalty, you have to take out over $8,000, which would equal over $55,000 lost in 35 years. I'm Sure my Basket Can Hold All of This Not diversifying or putting all your eggs in one basket is another financial blunder. I was a retirement specialist working with 401(k) and 403(b) account owners when the market crashed in 1999 and 2000. How vividly I remember talking with people in their fifties and sixties who in February of 2000 (right before the NASDAQ started falling) wanted to put their entire retirement account into technology. I discussed with them the advantages of diversification especially in such a volatile market. Some listened, but most didn't. The comment I remember the most is, "I don't have enough money to retire so I need it to grow really fast." The result was buying in at an all time high and then either jumping out along the way down or riding the market to the bottom. Those who stayed in for even a year lost more than half of their retirement in a technology fund. Compare that to those who were diversified across several markets, domestic and international, and several types of investments, equity, fixed-income and short-term. Someone in their fifties, planning on retiring in 10 years would be diversifying if they had about 60% in stocks and the rest in bonds and money markets. This type of portfolio still lost money during that volatile time, but not nearly as much as a technology fund did. Those with a diversified portfolio lost about 5-15% in that same time period that the technology sector lost 50-65%. Trying to earn money for retirement by putting all your eggs in one basket, especially when you are close to retirement, is almost as risky as using the slot machines in Las Vegas. If you are behind in your savings, your best bet is to start contributing the maximum allowed and push back retirement for a few more years. Won't Uncle Sam Take Care of Me? Relying solely on Social Security will leave you with little income in retirement. In a message to the public issued by the Social Security and Medicare Board of Trustees in 2005 they stated, "We do not believe the currently projected long run growth rates of Social Security and Medicare are sustainable under current financing." They went on to say that without major changes to Social Security, it will begin to fall short in 2017 and will only be able to fund 74% of benefits by 2041. The suggested solution is to either increase taxes 15% or decrease benefits 13%, neither of which are good for retirement. To continue to live the same lifestyle that you are accustomed to, saving for retirement is essential. Another Trip to the Doctor? Not preparing for healthcare in retirement is something that we have recently had to think about. There is a good possibility of Medicare not being able to meet our needs in the future or we may need our own health insurance to carry us until Medicare kicks in. Being prepared to pay for premiums or medical expenses in retirement is becoming a necessity. A 2004 study found that an average retiree spent 22% of their income on healthcare costs. For someone on a $50,000 a year retirement income, this equates to $11,000 per year. Take that over a 25 year retirement and you are up to $275,000 for healthcare costs alone. Long-term care such as nursing homes or in home assistance is another cost that should be prepared for. With less and less employers covering healthcare in retirement, this is another area that is often overlooked when planning for the future. Avoiding these financial mistakes will determine your quality of life in retirement. The next step is to get started. There are many brokerage firms that will educate you about your options at no cost. They can help you open a retirement account or determine if you are contributing enough to your current retirement account. The can also help you decide on what types of investments are appropriate given your age, timeframe and risk tolerance. The most important thing to remember is that it is never too late to start saving and even a little money set aside makes a big difference in the long run.

Irs auditing

Everyone hopes that they will never have to endure an audit from the Internal Revenue Service (IRS). On the downside, there is a good chance that sometime in your life you will be audited. However, there are a few things you can do to make the process a little easier. It is all about preparation and organizing. 1: Keep all of your receipts to hold proof of all the deducted expenses and purchases you have claimed. 2: Keep all of your checks based on the order in which they were paid. In the memo, ensure that you include something clear that will not be confusing to the auditor. 3: Do not deduct capital items as repairs. Auditors may want you to provide proof that checks containing large amounts are for repairs and not capital purchases. Some say it is better to write several smaller checks than one large check. 4: File and keep all of your forms. This includes W-2 forms, K-1’s, 1099’s, and other types of informational returns. 5: Use terminology that is proper in all of your accounting entries. Ensure that everything is descriptive and accurate. Short phrases such as “labor” and “gift” should be avoided. 6: If possible, write checks for specific items rather than one large bill. Try to avoid lumping purchases into one purchase. 7: Write checks for all of your charitable contributions. Cash donations should be avoided and auditors do not smile on such a thing. 8: When buying capital items, such as machinery, make sure you place them in your capital purchases as well as on your depreciation schedule. Avoid listing them as repairs. All items that have a useable life of over one year are considered a capital item. 9: Make sure you have an organized filing system. This will help you get through the audit if you can find the things that are asked for more quickly. 10: Try to keep a journal on all transactions that may be hard for the auditor to understand throughout the year. It is hard to remember why you made specific purchases one or two years after the matter. 11: When being audited, only give the auditor what they ask for and never more. Auditors are trained to dig as deep into your business as they see fit. If you give them more than they ask for, they may find other small things that may bring up other issues that they may not have been thinking of enquiring about.