A Financial Mogul’s Dream – The Private Jet

Did you know that the best time to buy a private jet is right now? If those earphones and supplies you’ve been buying from your favorite aviation supplies sources aren’t being put to use, you’re in luck.  The jet market is down and planes are relatively cheap in comparison as to what they used to be. There are a couple of things that you should acknowledge before you make the decision to purchase a private jet – the first is that you probably shouldn’t invest in it by yourself. The Aircraft companies can help to coordinate the purchase for you and then keep it flying for you afterwards. The other thing to remember is that you don’t necessarily have to own one and there are easy ways that can be used to charter planes for any of your trips. There is also a fractional ownership where you will own a small portion of the jet but be paying for the amount of flight hours in which you must fulfill every year.

Cost Vs. Benefit

A private plane is going to cost millions and the aviation experts suggest that you have between 350 to 400 hours of flying per year at least. You should also take the hidden costs into consideration such as gas, pilots, fuel and the catering. Management companies will take care of these for you if you’re willing to pay them between $100,000 and $200,000 per year. This will depend on the size of the jet and the usage.

There are also repair and maintenance costs that can be unpredictable at times. You could lose a significant amount of money by purchasing your plane and selling it low. You should always clear it with the PR if you are a corporate executive. This applies to you especially with a company that has been bailed out by Washington. Using or buying a private jet can also mean some public relations being in trouble.

Calculate your Personal Needs

A private jet will come in three different sizes. You can purchase a small one, medium one or large one. You can also get one that is used or new; since the economy is down that means that there are far more used planes in the market and if you want to order a brand new one that could take anywhere between 1-2 years. Even purchasing a used jet means that the federal aviation would require a jet to comply with regulations and hundreds of thousands of dollars or repair hours.

A new plane would come with a 5 year warranty although you would still have to pay for inspections. There are many other expenses which are covered under the warranty plan. You would also have to pay an hourly fee in case any parts fall through as well as for the engine program. These programs are extremely expensive and the overhauls that are required later on in time.

A consultant can help you with your search. The management company is the people who will be in charge of keeping you happy in the long run. It is in their interest that your search is finding the perfect plane.

March 12, 2013Permalink Leave a comment

Understanding Small Business Financing

If you think you cannot obtain a small business loan due to the current economic climate, then you should get rid of that mindset because thanks to Small Business Administrations and other types of loans that are available from companies like Five Point Capital, you do not have to prepare to close your business. Research is essential in seeking small business loans and this is something that some small business owners do not do enough.  Here is what the Small Business Administration has to say about successfully applying for business loans. The first step is a good business plan or proposal.

The Loan Proposal

In the business loan proposal you need to state your name and address, the name and address of the business, the amount of money you need and how you plan to repay the loan once your business turns a profit. The executive summary is the next part of the proposal and it states how you will use the loan to fund your business or cover business expenses. You also want to include why you should get the loan and any credentials you have that make you an effective business owner. Talk about your future plans to expand the business within the next few years and how you plan to market it to potential customers. Include your financial statements in the proposal and any co-business partners who will join you in the business.

What If I Have Bad Credit?

The first step in obtaining a small business loan with bad credit is to get a copy of your credit score and report. Pay down the debts you can afford to pay and fix any errors on the credit report by sending copies of receipts that prove you paid off certain debts on the credit report. If possible, seek out a friend or relative that has excellent credit and inquire about having him co-sign on the business loan. You can also apply for a small business credit card in order to establish good credit. If these methods are not enough, you should save up enough money for a large down payment since those with bad credit often do this when receiving a loan.

How Minorities Can Get Business Loans

Check out the Minority Business Development Association’s website because this is sponsored by the federal government for the purpose of getting business loans as a minority. This website lists state and different cities’ resources for minorities to obtain loans and you will also find articles on getting funds. You should research state and local nonprofit organizations that offer business loans to minorities.

Business Loans for the Disabled

The Patriot Express Loan is sponsored by the Small Business Administration and it primarily assists disabled veterans in obtaining business loans. Disabled veterans can get up to $150,000 in loans and the funds can be used to buy a building, equipment and other items associated with operating a business. In Illinois, aspiring business owners may qualify for the Minority, Women Disabled Participation Loan Program. Disabled business owners have to own at least 51% of the business and have less than 500 employees.

Ways to Supplement Your Business Loans

Just because you received a few business loans does not mean that you cannot benefit from other sources of funding to supplement them. If you have substantial funds in your savings account, use part of the savings to fund the business. Also seek donations as gifts from friends and relatives instead of other gifts during the holidays.

December 14, 2012Permalink Leave a comment

Improve Your Personal Finances With These Helpful Hints

Improve Your Personal Finances With These Helpful Hints

Being able to save a few bucks after spending on basic things like food, clothing, utilities and other essentials can give a reassuring feeling. Most people have a tendency to spend beyond their means. If you take some practical tips to heart, you can pay out bills & debts reduce money-related worries & stress. Here are some tried-and-proven techniques to improve your personal finances, pave the path to financial independence, and get more fun and satisfaction out of life.

TIp #1: Stop purchasing. Summon the courage and determination to stop spending. Coupon deals and store deals may keep luring budget-conscious people, but note that these promotional offers only entice you to shell out money.

If you stop spending on things like buying more home decors, snacks, accessories, plus other non-essentials, you will be amazed at the huge savings you can accumulate in a span of three to six months.

Resisting the urge to spend on non-essentials may seem like a drastic measure, but once you discipline yourself to try it, you can have greater spending power for stuff that you really need.

Tip #2: Auto-save. One of the effective techniques to save money is to devise ways for your personal funds to build up automatically. If making a firm resolve to deposit a certain percentage of your earnings every payday just does not work, speak with your employer or product/service providers who can help you auto-save.

Imagine that you do not have money in the first place, and you must get by with an amount that is just sufficient for basic needs. It may take a considerable amount of will power not to touch a huge chunk of your earnings. However, you can make arrangements with your employer, your bank, or insurance firm so that every month, a certain sum will automatically go to your account.

Tip #3: Switch to less expensive providers.  Can you switch to a lower cost  or prepaid cellphone plan?  What about saving a few hundred dollars per year by looking at lower online car insurance quotes for the drivers in your family?  Chances are, you can save money almost everywhere in your normal “cost of living” expenses.

Tip #4:  Use cash rather than credit. It is a surefire way to save money. If you use cash, you avoid the tendency to splurge or overspend on things you do not really need. Using cash at hand for purchasing items trains you to spend within your means.

Credit cards may offer convenience, like when you need big-ticket items and the credit card offers a zero-installment program.  Note, however, that all the minimal installment payments on your credit card can add up to a huge sum which you have to pay every month. When you opt to pay the minimum payment on your credit card, financing fees and interest rates on the balance add up as well. Pay your bills on time to avoid late payment fees

Tip #5: When you really need to spend, try to get more for less. People end up spending more when they keep buying branded items, or extra stuff they like but already have. Do a thorough assessment and figure out how to get what you really need – for less. To improve your personal finances, discipline yourself not to keep buying pricey designer stuff, and try making the switch to generic brands that are just as good, when grocery shopping.

November 30, 2012Permalink Leave a comment

Own Your Industry By Modeling The Traits Of Successful Business People

Tired of feeling jaded and unsuccessful? Have you always dreamed of getting away from your financial difficulties? Have you always dreamed of enjoying the fruits of your labor? If you answer yes to all these questions, you have to stop thinking like a poor person and instead adopt the characteristics of the rich and successful just like Andrew Carnegie, the so-called Captain of the Steel Industry or Sugar Baron Pepe Fanjul. Theirs are examples of mindset and discipline that made them legends in their industries. If you want to go from rags to riches, get a hold of the characteristics and beliefs of the rich.

Successful people set goals for themselves and do their best to fulfil it. When you’re doing something that you’re good at, the financial gains will pour in as you continue to improve in your craft. In business or in other endeavors, if you work professionally and faithfully the gains will come in fast. If you keep on thinking like an average employee, you won’t reach the peak of your potential.

Another characteristic of the rich and successful is that they know that they can earn money as well as keep it. If you are a one day millionaire, you need to change the way you live. Successful people know how to invest and save. This is where they get their purchasing power. If you know how to maintain your finances in tip-top shape, you won’t find your pockets burned. Save if you must while you’re on your way to success. You’ll thank yourself later.

Speaking of keeping your finances in tip-top shape, you must also be able to think of yourself as a person who is confident about keeping his or her money. With this mindset, the money that you earn as well as spend will always go into account. Once you’ve got everything noted down, you’ll see areas for improvement until you become an expert in your own riches. It’s time to forget about childish ways regarding money. Be mature when it comes to your earnings. Think of the goals you have for yourself or for your family. If possible, try to minimize using credit and instead use cash. This way, you’ll be able to feel the effects of every cent spent. In the process, you’ll feel more responsible. Though this is hard, it is always helpful.

If you want to be a success, you can surely become one. All it takes is having belief in yourself that you can rise above your failures and be free from your financial problems. If you work hard and do your best in whatever you are doing, you’ll reap the rewards of your hard work. But while you are at it, think yourself rich and successful. Work harder and do better every day. This way, you’ll keep improving and growing as you are becoming more and more successful. You may adapt these habits and believe in yourself. In time, you will become the person you’ve always wanted to be.

November 30, 2012Permalink Leave a comment

Six Social Security Changes You Must Be Ready For In 2013

Six Social Security Changes You Must Be Ready For In 2013

According to the Social Security Administration, the entrance of a new year will also bring new changes in Social Security program. So if you are a beneficiary of the said program, you should be looking forward to:

1.  Getting higher monthly checks. Based on the measurement of the Consumer Price Index for Urban Wage Earners and Clerical Workers to reflect economic inflation and to adjust the cost of living, there will be a 1.7 percent increase in the Social Security payment for next year. Therefore, an additional $21 is to be expected from a typical Social Security check. Moreover, couples whose average payment is $2,014 will become $2,048 in 2013. This is noticeably lesser than the 3.6 increase received by the Social Security program’s recipients this year. It should be noted though that 2010 and 2011 saw zero adjustment in cost of living while the year 1980 had a 14.3 percent amendment.

2.  Paying more than your previous fee. The temporary payroll tax cut will expire in the last month of 2012.  Because of this, 6.2 percent of you income will now go to the Social Security system instead of the 4.2 percent you used to pay in 2012.

3.  Having to pay more if your yearly income is higher than the current Social Security tax cap. As of 2012, the maximum amount of earnings subject to the Social Security tax (also known as Social Security tax cap) is $110,100. However, it is expected to be raised to $113,700 in 2013. Roughly 10 million people will be affected by this increase in the Social Security tax cap.

4.  Having your increased earnings limited. When you have reached your full retirement age, you can simultaneously earn any amount while collecting your benefits without any penalty. Your payment will also be regulated so that you can get any benefits that may have been withheld before. But if you are a beneficiary of Social Security and is younger than 66 (for those born between 1943 and 1954), your earnings will equal to $15,120 in 2013. After that, an amount of $1 for every $2 you are supposed to earn will be provisionally suspended. For those who will turn 66 in 2013, their earnings will be limited to $40,080. After that, an amount of $1 for every $3 they are supposed to earn will be provisionally suspended. In a nut shell, those who simultaneously work and collect benefits are expected to get $480 more from their Social Security earnings before a part of their payment could be withheld.

5.  Seeing an increase in your Maximum possible benefits. Those who start getting their benefits at their full retirement age will have their maximum possible benefit increased. It will grow from $2,513 in 2012 to $ 2,533 per month in 2013.

6.  Saying goodbye to paper checks. Starting March 01, 2013, the U.S. Treasury will no longer mail paper checks to Social Security recipients. Thus, you can choose to receive your payments through direct bank deposits, credit union accounts, or your Direct Express Debit MasterCard. Those who prefer none from any of the stated options will receive their payments through a pre-paid debit card. This electronic payment has been required to new Social Security beneficiaries since 2011.

 

October 7, 2012Permalink Leave a comment